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CEO Dan Burrows explained that a significant 'capital event' would be needed to shift the broader property market, unlike in the past where smaller events had wider effects. Regarding political risk, he noted a post-COVID uptick in deal activity and a strong pipeline of both new and repeat customers for these bespoke products, which have historically been very profitable for the firm.

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CEO Dan Burrows stated that while there are 'clustering effects' in Aviation losses, Fidelis is taking a measured approach, focusing on higher-margin business and not writing policies that don't meet its return hurdles. On the Property versus Reinsurance question, he explained that while Property direct was previously more attractive, the Reinsurance market has since improved, and now both sides offer attractive margins. He also highlighted that the retrocession market is very favorable for buying protection.

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CEO Dan Burrows stated it was too early to detail potential subrogation but noted it would be expected in such an event. CFO Allan Decleir clarified that investment returns were consistent with Q3, but the sequential income dip was due to relatively flat investable assets quarter-over-quarter, with no unusual cash needs.

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CEO Dan Burrows explained that while D&F margins were previously superior, significant improvements in reinsurance pricing, attachment points, and terms have made it more attractive, allowing for growth with only a moderate increase in exposure. Chief Actuarial Officer Jonathan Strickle added that the Euclid partnership fits well within the Bespoke portfolio and is expected to meet or exceed the high bar set for returns on similar business.

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Chairman & CEO Peter Zaffino clarified that the reserve reapportionment is a 'zero-sum game' of allocating a pre-existing uncertainty provision, not a reflection of new adverse development. He stated this prudent process will continue through 2025. On the second point, Mr. Zaffino and Don Bailey, EVP & CEO of North America Commercial Insurance, confirmed that social inflation is driving a 'flight to quality,' where clients seek long-term partners with deep casualty expertise and financial strength, benefiting AIG.

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Peter Zaffino, Chairman and CEO, responded that AIG is proactively managing tariff uncertainty by reviewing inflation factors and building additional risk margins into potentially impacted lines, as was done with the international portfolio in Q1. Regarding expenses, he clarified that while Q1 shouldn't be perfectly straight-lined, the expense level achieved is a good indicator for the full year as the company has accelerated its 'lean parent' initiatives.

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Chairman and CEO Peter Zaffino explained that AIG's generative AI strategy, supported by partners like Palantir and Anthropic, is focused on driving top-line growth by accelerating the ingestion of qualified data to underwriters for better and faster decision-making. Regarding the high net worth business, Zaffino noted the combined ratio is already improving and expects accelerated profitability in 2025, driven by a balanced growth strategy, improved ceding commissions, and a new 30% quota share with strong partners.

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CFO Sabra Purtill detailed the reserve movements, noting favorable development in shorter-tail lines was partially offset by adverse development in specific older U.K. and Europe casualty books and a large U.S. excess casualty settlement from years covered by the ADC. Chairman and CEO Peter Zaffino added that AIG's reinsurance strategy will remain consistent, as the company values its low attachment points and aggregate protection to manage volatility.

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Co-CEO Carl Lindner III noted that while the public D&O market remains competitive, he sees signs of stabilization, with overall D&O rates flat in Q2. CFO Brian Hertzman clarified that the earlier crop reporting shifted about $40 million in net written premium into Q2 from Q3 but does not materially impact quarterly profit recognition, as crop profits are booked later in the year.

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Co-CEO Carl Lindner explained that forecasting Property and Transportation premiums is difficult due to the lumpy nature of large account renewals, but reiterated his focus on improving margins in commercial auto, which may involve non-renewing business. CFO Brian Hertzman noted that in Specialty Casualty, modest adverse development in social inflation-exposed lines outweighed the favorable development from workers' comp. Carl Lindner added that the segment's results were also impacted by the reclassification of the internal reinsurance facility, which consolidated adverse development from excess liability business into the group.

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CFO Brian Hertzman explained that the impact of increased severity is being factored into loss picks for recent accident years, which prevents the loss pick from being lower than it otherwise would be. Co-CEO Carl Lindner stated that the overall commercial auto business is achieving a small underwriting profit, driven by strong rate increases (20% in Q4) and active management of its book, and that its performance is believed to be significantly better than competitors'.

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CFO Brian Hertzman clarified that significant adverse development was not from the Transportation segment's commercial auto, but a small amount came from Casualty program business. Co-CEO Carl Lindner explained that the company learns from every event and can adjust pricing and exposure limits. Co-CEO Craig Lindner stated that the portfolio's intentionally short duration positions it well to benefit from higher rates, with current reinvestment yields exceeding 5.5%.

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Founder, President, CEO & Director Stephen Sills explained that the excess capacity seems restricted to the financial institutions segment for now. Regarding social inflation, he noted it is more pronounced in the casualty business, where claims that once settled for $2-3 million can now exceed $10 million. He added that a contributing factor is the tendency for carriers with smaller layers to pay their limits and exit claims, increasing the burden on the rest of the insurance tower.

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CFO Brad Mulcahey explained that the Q1 ULAE impact is seasonal because bonuses for the internal claims team are paid in Q1 and allocated to the loss ratio, creating a temporary transfer from the expense ratio. CEO Stephen Sills noted an upward trend in claims but believes Bowhead's underwriting and pricing will outpace it. He added that the company is taking a "wait-and-see" approach to legislative changes, like those in Georgia, before changing its competitive posture.

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CFO Brad Mulcahey explained that the Q4 loss ratio movement is a recurring annual pattern due to their year-end actuarial review, making the full-year figure a more meaningful metric. He attributed the change to portfolio mix and adjustments to current accident year loss picks. CEO Stephen Sills added that while skilled excess and primary casualty underwriters are hard to find, Bowhead is actively hiring for that segment, its new environmental business, and the more scalable, tech-driven Baylin division.

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Chris Uchida, CFO, and Jon Christianson, President, explained the earlier crop premium recognition was a timing shift of a few days driven by agent excitement post-acquisition, which doesn't alter the full-year outlook. Uchida noted they adhere to initial loss picks, with any seasonal favorability not being recognized before Q4. Mac Armstrong, Chairman, CEO & Founder, stated that the current inflation guard is considered adequate but is actively monitored.

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Chairman and CEO Mac Armstrong stated Palomar will 'keep a toe in the water' with its Commercial All Risk program, ready to re-enter if returns improve. Executive T. Uchida clarified that Advanced AgProtection costs will be booked as operating expenses, impacting Q2. They both explained the reserve releases were from recent accident years in shorter-tail lines where conservative loss picks had not been adjusted despite rate increases.

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President Jon Christianson specified the crop exposure is focused on corn and soybeans in the Upper Midwest and central U.S., with no East or West Coast exposure. He clarified the reinsurance reduction is a lower quota share to the private market, not the government. CEO Mac Armstrong confirmed the inflation guard is an underwriting rule that can be modified quickly, as was done previously when it was raised from 5% to 10%.

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Mac Armstrong, Chairman and CEO, stated they are not seeing rising rates for smaller commercial earthquake risks, citing budgetary constraints on those clients in California. Chris Uchida, executive, explained that while the attritional loss ratio was strong, it benefited from some losses being categorized as catastrophes and that the ratio is expected to gradually increase in 2025 with the changing business mix. Mac Armstrong added that they feel good about casualty reinsurance prospects for 2025, seeing ample capacity for niche lines and no pressure on ceding commissions, aided by Palomar's stature as a significant reinsurance buyer.

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CEO Timothy Turner stated he does not see a similar softening risk in casualty, citing persistent loss cost trends, social inflation, and continued business flow into the E&S channel. Miles Wuller, CEO of Underwriting Managers, responded that while the company is always active in M&A, its property MGA portfolio is largely complete, and it is just as likely to attract new capital partners seeking quality management as it is to acquire another property MGA.

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CFO Janice Hamilton clarified that the G&A ratio was impacted by the timing of certain benefits and professional services, while the improved compensation ratio was significantly driven by the margin profile of the US Assure acquisition earning in. CEO Tim Turner addressed the channel question, stating that the delegated authority business is 'well received' by the vast majority of carrier partners, as most E&S carriers have their own dedicated delegated authority departments, making Ryan Specialty's model an aligned and strengthening partnership.

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CFO Janice Hamilton stated they use the forward curve for fiduciary investment income forecasts. CEO Tim Turner explained the above-average investment is a proactive strategy to invest in efficiency, data, and AI to maintain a competitive edge, enabled by the financial flexibility from the ACCELERATE 2025 program, rather than being driven by a specific external event.

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An executive confirmed that transportation is one of the most challenging parts of the casualty market, leading to a significant migration of business that the company is well-prepared to handle. CFO Janice Hamilton clarified that the shift in expense ratio improvement was due to the timing of savings from the Accelerate 2025 program, not business mix. She also confirmed that business mix does not impact fiduciary investment income.

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CEO Andrew Robinson stated that surety performance remains exceptionally strong with no adverse loss trends, and he expects federal funding to rebound in the second half of the year. CFO Mark Haushill clarified that there were no changes to commercial auto loss picks; his comments on severity were about emergence versus indications, and the company remains booked conservatively. Favorable emergence in other lines more than offset pockets of severity.

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CEO Andrew Robinson explained that with U.S. business comprising only about 40% of the global agriculture portfolio, diversification and conservative reserving mitigate risks like those from tariffs. On expenses, CFO Mark Haushill initially called the Q1 acquisition ratio a 'pretty good proxy,' but Robinson added a more conservative outlook, expecting the ratio to 'tick up' in coming quarters due to business mix, though partially offset by improvements in other operating expenses.

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CEO Andrew Robinson stated there has been no significant change in Surety competition, describing Skyward's business as 'world-class' and noting that inflation is a net positive for the line. For A&H, he explained that because it is a stop-loss product, the key risk is not general medical inflation but the prevalence of high-cost 'designer drugs' and genetic treatments that can create large claims, a factor they build into their product design.

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Mark Kociancic, Executive VP & Group CFO, confirmed the premise, stating there is significant embedded margin in the reinsurance division and that such releases could become a consistent driver of margin as reserves season. Jim Williamson, President & CEO, addressed the tariff question by stating that any impact on premium is not a concern given their small market share and large growth opportunity. He added that they have not yet seen any tariff-related impact on U.S. loss costs.

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CEO Jim Williamson explained that Everest now reviews its loss trend assumptions with increased frequency (quarterly) to respond quickly to inflation, a discipline enhanced during prior inflationary periods. He added that robust risk margins provide a buffer. For renewals, he expects most new demand will be at the top end of programs, as pricing for lower layers remains a deterrent for many cedents.

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President and CEO Jim Williamson stated that the prudence from recent reserve actions will continue and that the rapid shift in business mix provides a positive tailwind. CFO Mark Kociancic noted the 2024 attritional loss ratio of 68.3% is the starting point, with favorable mix and rates offsetting the drag from runoff business. Williamson added that the company continues to invest prudently, though the expense ratio remains elevated due to these investments and remediation's impact on earned premium.

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Executive James Williamson confirmed they are driving rate well in excess of trend, citing Q3 figures in the mid-teens to low-20s for key casualty lines, enforced by a 'one renewal' remediation standard. Executive Mark Kociancic stated that the capital position remains strong, they are confident in their 2025 earnings engine, and he foresees normal capital management options, including being active in the market in 2025.

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CFO & Treasurer François Morin confirmed the adjusted acquisition ratio is a good starting point, with potential for further improvement in 2026 from underwriting actions. CEO Nicolas Papadopoulo affirmed that the Midcorp book did experience a low catastrophe quarter, which was a positive development.

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Executive Nicolas Alain Papadopoulo explained that success with large distributors is about strategic alignment and demonstrating value to gain access to the most desirable risks. He stated that managing adverse selection is a core underwriting skill, requiring deep insight into why a cedent is buying reinsurance. He views cedents retaining more of a well-performing book as a natural, legitimate part of the market cycle.

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Executive Nicolas Alain Papadopoulo said the main reinsurance change was successfully transitioning the large MidCorp program to an Arch-managed framework. Both he and executive François Morin clarified that they do not expect a significant change to the segment's ex-cat loss ratio post-integration, as MidCorp's cat exposure is more in secondary perils, which are part of the attritional loss base.

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CEO Nicolas Alain Papadopoulo explained that while different, cycle management in the middle market is attractive due to more muted cycles and stickier client relationships not solely based on price. Regarding casualty reinsurance, he anticipates downward pressure on ceding commissions due to past loss trends, but noted the final outcome will be heavily influenced by the ample supply of capital in the market.

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President & CEO Vincent Tizzio indicated that loss trends in the professional lines portfolio are in the low single digits, emphasizing that this excludes public D&O, which is now a very small part of the book. CFO Peter Vogt confirmed that the pricing in public D&O may be bottoming out but did not contribute to recent growth. Mr. Vogt also affirmed that the current cash level is considered a normal run-rate for the organization, following elevated levels in prior quarters used to fund the LPT transaction.

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CEO Vince Tizzio clarified that the growth in the credit and political risk line was primarily driven by the surety business, which is distinct from structured credit offerings. CFO Pete Vogt explained that the competitive U.K. motor market pressure seen at the 1/1 renewals will likely impact the full year, as most of that business renews early and a recovery is not anticipated in 2025.

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President, CEO & Director J. Powell Brown and EVP, CFO & Treasurer R. Andrew Watts responded that while the two-thirds exposure and one-third rate split generally holds, rate becomes a more significant factor in volatile markets. They emphasized that one quarter does not make a trend and they do not manage to a specific numerical 'red light,' instead focusing on strong year-to-date results and long-term profitable growth.

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Executive R. Watts confirmed that if there is minimal flood claim revenue in Q4, the Programs segment's organic growth would be near zero. Executive J. Powell Brown stated that, generally, standard market carriers are not re-entering the cat property space to compete directly on price with the E&S market for new business. Regarding international clients, Brown and Watts noted that while there are more questions about growth overseas, the economic backdrop in their key European markets remains good with no material change in outlook.

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J. Powell Brown, an executive, explained that the $15 million represents approximately six months of revenue that was recognized in the quarter due to onboarding timing. He stated this revenue will be recognized more evenly in 2025 and does not impact full-year margins, only the timing of recognition between quarters.

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CEO Greg Case stated that social inflation is a significant concern for clients of all sizes, and Aon has taken a public stance against it. On talent, he emphasized that Aon's strategy is to make all colleagues better, not just move people around. This is achieved by providing them with superior tools and analytics, like Broker Copilot and property analyzers, which enables them to deliver better client solutions and makes Aon an attractive destination for talent.

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CEO Greg Case confirmed that social inflation is a major concern for clients of all sizes, prompting Aon to publicly oppose related market trends. On talent, Case emphasized that Aon's strategy is to make its people better by providing proprietary tools like its seven analyzers and Broker Copilot. He stated this focus on enabling colleagues to deliver superior client outcomes is the core of Aon's talent strategy and differentiates it from competitors.

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CEO Gregory Case attributed the Wealth Solutions performance to strong new business and retention driven by macro trends like retirement readiness, wealth transfer, and significant pension risk transfer activity. Regarding the reinsurance deal, Mr. Case stressed it was a 'very unique and very substantial' situation, not indicative of a new trend, though it reflects Aon's philosophy of creating high value for clients. CFO Edmund Reese added that Aon's diversified model allows it to absorb such timing impacts.

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EVP & Group Chief Underwriting Officer David Marra attributed Florida growth to a combination of market stability from tort reform, growing demand from private markets, and new opportunities created by the Florida Hurricane Cat Fund's higher attachment point. President & CEO Kevin O'Donnell clarified his 'any class' remark was poetic license and their cautious stance on commercial auto is unchanged. EVP & CFO Robert Qutub explained that providing a fully retained income statement is onerous due to GAAP rules, but they aim to provide key retained metrics.

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EVP & Group Chief Underwriting Officer David Marra stated that a recent loss is highly relevant in renewal negotiations, often strengthening relationships with long-term clients. He highlighted the company's ability to quickly update its proprietary models post-event. CEO Kevin O'Donnell added that they do not view a past loss as a predictor of a future one, but rather use the experience to validate the accuracy of client data and their own risk assessment models.

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CEO Kevin O'Donnell specified that the reserve strengthening focus is on the 2019-2022 accident years, as the earlier soft market years were a smaller part of their book and had transactional protections. EVP, Group Chief Underwriting Officer David Marra explained that few loss-impacted accounts renewed at January 1, so there was little rate differentiation. He added that aggregate covers are written selectively at remote attachment points where they meet return hurdles.

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CFO Robert Qutub explained that the reported prior-year development was distorted by about $10-11 million in purchase accounting adjustments. CEO Kevin O'Donnell added that the portfolio is healthy, having grown in better years and largely avoiding commercial auto. Regarding strategy, Group Chief Underwriting Officer David Marra stated that the market primarily trades on a quota share basis, which aligns interests, and that they can also adjust ceding commissions. O'Donnell noted that quota share is currently preferable given rising loss severity trends.

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Chairman & CEO Evan Greenberg explained that for large accounts, the trend has been to tighten terms and increase client retentions, shifting more risk back to them to counter social inflation. For international growth, he described it as multi-dimensional, driven by market share gains, the emergence of new insurance buyers and industries in developing economies, and the introduction of sophisticated products like cyber and environmental liability.

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Chairman & CEO Evan Greenberg explained that for large accounts, the trend has been to tighten terms and increase client retentions, shifting more risk back to them to counter social inflation. He described international growth as multi-dimensional, stemming from a combination of market share gains, capturing new buyers as economies develop, and introducing sophisticated products like cyber and environmental liability that local competitors lack.

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Chairman and CEO Evan G. Greenberg clarified that while the aggregate long-tail loss cost trend is up modestly, the trend for property lines is down slightly. He stated that the company's loss picks are set conservatively and already contemplate potential tariff impacts. On agriculture, he noted that key crop prices are currently stable relative to when policies were priced and that the company actively uses hedging tools to manage volatility.

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Chairman and CEO Evan G. Greenberg stated there were no changes to the company's reinsurance purchasing. He dismissed the minor increase in administrative expenses as insignificant 'noise' and quarterly variability, not indicative of a trend.

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Chairman and CEO Evan G. Greenberg stated that the components of pricing do not have different implications for loss ratios, as they all earn in the same way. He dismissed the second question about a slowing exposure component, stating it would not have a direct impact on underwriting profitability as they see it.

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President & CEO W. Robert Berkley, Jr. noted no consequential increase in demand for higher limits from smaller clients, who are balancing need versus affordability. He views the California action not as a perfect proxy for the U.S. but as an indicator that markets require a response when rates are suppressed for too long.

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President & CEO W. Robert Berkley, Jr. noted that smaller commercial clients are not significantly increasing their demand for higher limits, often constrained by affordability. He views the California workers' comp action as necessary but not a direct proxy for the rest of the country, though it highlights the negative consequences of prolonged rate suppression.

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Executive W. Berkley affirmed that the tools and teams are different, explaining that the company's decentralized structure means each business, including the higher-hazard comp units, has its own specialized focus and expertise. Regarding Mitsui Sumitomo, he stated that the company is open to partnership opportunities that make business sense but that it remains to be seen how things will develop over time.

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W. Robert Berkley, Jr. (Executive) clarified that the steeper trend for bodily injury claims is not new but has been apparent for some time. He stated that the company has been responding to shifting legal environments for years, so these actions are already well-entrenched in their reserving and underwriting. Richard Baio (CFO) added that the business mix change had a minimal 0.1% impact on the expense ratio, with the main driver of acquisition cost changes being shifts in reinsurance structure (e.g., quota share vs. XOL).

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COO Jen Klobnak and CFO Todd Bryant explained the surety combined ratio was impacted by lower favorable reserve development compared to Q1 and higher expenses from a new reinsurance layer and ongoing technology investments. President and CEO Craig Kliethermes addressed tort reform, stating it is too early to see loss benefits in Georgia and Louisiana but that it improves underwriter confidence. He noted anecdotal benefits are being seen in Florida, and the industry continues to push for third-party litigation financing disclosure.

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COO Jenni Klobnak clarified that transportation non-renewals are a combination of both scenarios: RLI actively non-renews some accounts, while others leave after receiving necessary rate increases. CFO Todd Bryant explained that current reserving factors in all data, including recent adverse development in the 2023 accident year, reflecting RLI's disciplined approach to address challenging trends promptly rather than assuming future favorable development.

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CFO Todd Bryant provided the cat loss breakdown ($1.5M in Casualty, the rest in Property). President and CEO Craig Kliethermes clarified that for the Prime reinsurance treaty, RLI books a more conservative loss ratio than Prime itself. COO Jen Klobnak stated that 2025 property profitability depends on actual cat events and that the impact from potential earthquake premium refunds would not be material, as RLI's exposure is commercial, not residential.

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CFO Todd Bryant confirmed the increase in the current accident year loss ratio for Casualty was a prudent measure, reflecting second-half increases in the loss booking ratio for wheel-based exposures. COO Jen Klobnak addressed commercial auto severity, stating that while they see some severity, they mitigate it through internal loss control, disciplined risk selection, and pushing for adequate rates. President and CEO Craig Kliethermes added that RLI's culture encourages underwriters to demand claims reserves are set appropriately and quickly to inform pricing.

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President & CEO John Doyle responded that while the company advises clients on the rising risks, they are not seeing a significant increase in demand for excess liability coverage as businesses remain focused on cost control in the current environment. Regarding Latin America, he attributed the quarterly slowdown to idiosyncratic issues rather than a broader macro trend, stating that the company remains bullish on its prospects in the region.

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President & CEO John Doyle responded that despite the challenging liability environment, the company is not seeing a significant increase in demand for additional coverage, as clients are focused on cost control. He attributed the quarterly slowdown in Latin America to specific 'idiosyncratic issues' rather than broader macro trends, stating the company remains bullish on the region's long-term prospects.

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President and CEO John Doyle explained that while Guy Carpenter is paid on commission, outcomes are negotiated, making the revenue model somewhat 'fee-like,' though pricing pressure does have an impact. CFO Mark McGivney stated that FX was not a material factor for margins in the quarter. Doyle added that the primary margin headwind came from recent M&A activity, particularly the McGriff acquisition.

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CEO John Doyle stated that while management capacity is always a consideration, the company is more likely to continue its 'string of pearls' M&A strategy but retains the ability to do a larger deal if it makes sense. He explained the difficult Q1 comp is not due to non-recurring revenue from the prior year but a combination of headwinds from FX, tax, McGriff's seasonality, and fiduciary income.

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Michael Klein, President of Personal Insurance, stated that analysis of new and retained business profiles shows no evidence of adverse selection. Chairman and CEO Alan Schnitzer suggested the bigger trend in commercial lines is a shrinking amplitude of the pricing cycle and rational price dispersion by line, rather than an accelerated softening.

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Michael Klein, President of Personal Insurance, stated they see no signs of adverse selection in their new or retained business profiles. Chairman and CEO Alan Schnitzer suggested that the long-term pricing cycle amplitude is shrinking and that current pricing is rational and segmented by line of business, not indicative of a rapid, broad softening.

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Alan Schnitzer, Chairman and CEO, stated it was too early to discern a clear response from insureds to the uncertain economy. Michael Klein, President of Personal Insurance, explained that the company can react to loss cost changes quickly. He also confirmed that Travelers has already been shifting new monoline auto policies to a 6-month basis, which is gradually increasing their proportion in the portfolio.

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CEO Steve Spray stated he could not confirm seeing a similar trend in their own personal auto physical damage frequency data. Regarding Cincinnati Re, Spray noted they have pared back on property exposure, with the book being roughly 42% casualty, 33% property, and 25% specialty. CFO Mike Sewell added that the Q1 earned premium mix was consistent with the full-year 2024 breakout, indicating no significant shift in focus during the quarter.

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J. Gallagher, an executive, confirmed that cross-pollination between the reinsurance, retail, and wholesale teams is a 'big factor' and is working as they had 'dreamed.' He also explained that large account revenue is likely less sensitive to market cycles because it is primarily fee-based, which protects revenue from declining premiums in a softening market.

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CEO J. Gallagher and CFO Douglas Howell explained that higher claim frequency directly benefits Gallagher Bassett's revenue, as they are paid per claim, but severity does not. They added that increased claim complexity allows them to demonstrate more value to clients. On M&A, Mr. Gallagher stated that their tuck-in multiples remain well below 'treetop levels' and suggested the AssuredPartners deal sent a 'signal' to the market, implying disciplined valuation.

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CEO Christopher Swift stated that actions to address the macro environment are targeted, primarily in commercial auto and commercial property lines. Executive Adin Tooker addressed the Small Commercial question, expressing optimism that the pricing environment (ex-workers' comp) will hold up well, as industry-wide combined ratios still need improvement, supporting The Hartford's ability to continue growing market share.

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CEO Christopher Swift said there was nothing new to call out on the expense ratio beyond the previously discussed restart of national advertising, and he expects it to normalize over time. He confirmed that the company is on track to achieve its $300 million E&S binding goal, with executive Adin Tooker adding that momentum is also strong in the broader wholesale space.

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CEO John J. Marchioni confirmed that Selective is seeing the same favorable claim frequency trend in both its commercial and personal auto physical damage lines. Regarding the surety book, he explained that it is a relatively small portfolio of about $49 million, focused on the small and lower-end of the mid-market, which mitigates its exposure to large-scale macroeconomic pressures and that pricing would be adjusted as needed.

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CEO John J. Marchioni confirmed they are seeing the same favorable frequency trend in both personal and commercial auto physical damage. He clarified that the surety book is relatively small at about 1% of premium and focuses on the small to lower-mid market, which limits its exposure to broad macroeconomic pressures on large construction projects.

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John J. Marchioni, Chairman, President & CEO, clarified that non-cat property losses are defined independently from catastrophe events (which are PCS-designated), so the two are not mechanically linked. He confirmed that employee incentive compensation is based on the all-in combined ratio, meaning high cat losses directly reduce payouts. Anthony David Harnett, SVP & Chief Accounting Officer, added that this variability was a key driver of the quarter's improved expense ratio.

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CEO John J. Marchioni clarified that non-cat property losses are defined independently from catastrophe losses and a high cat quarter does not inherently lower non-cat results. SVP & Chief Accounting Officer Tony Harnett added that auto physical damage and fire are the largest non-cat components. Marchioni also explained that employee incentive compensation is based on the all-in combined ratio, so high cat losses put downward pressure on payouts, which was reflected in the improved expense ratio.

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CEO Frank D’Orazio stated that Q4 submission growth was a strong 9%, and he anticipates growth will accelerate in 2025 now that the company's strategic review is complete. He noted competition is stable and primarily in the property market. Regarding loss picks, D'Orazio explained that while the 2025 loss trend view is slightly higher due to excess and general casualty, the overall portfolio loss trend remains in the high single-digits, which the company believes will be more than offset by positive rate achievement.

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CEO Frank D'Orazio clarified that current accident year loss picks already incorporate higher severity trends and benefit from years of underwriting improvements and compounded rate increases. He stated that pricing remains robust, with E&S renewal rates up 8.6%, and noted an acceleration in excess casualty rates to over 20%, suggesting industry-wide reserve issues will continue to support pricing discipline.

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EVP and CFO Ryan Greenier explained that the supplemental segment's results reflect favorable morbidity trends, leading to reserve releases, but long-term benefit ratio targets remain higher. President and CEO Marita Zuraitis affirmed that demand remains strong, citing record Q4 sales. On auto frequency, executive Mark Desrochers noted that while frequency was down, some of this is attributed to lighter weather. He stated that pricing plans assume a return to more normal low-to-mid-single-digit loss trends to avoid overreacting to short-term changes.

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