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    Michael Zaremski • BMO Capital Markets

    Michael Zaremski's questions to Horace Mann Educators Corp (HMN) leadership

    Michael Zaremski's questions to Horace Mann Educators Corp (HMN) leadership • Q2 2025

    Question

    Michael Zaremski of BMO Capital Markets asked about the Property & Casualty segment's long-term catastrophe load outlook, the drivers for policy growth in auto, and for a quantification of the investment portfolio's new money yield.

    Answer

    CEO Marita Zuraitis and CFO Ryan Greenier explained that despite favorable Q2 results, the full-year catastrophe loss guidance of $90 million remains prudent due to historical third-quarter volatility. They noted underwriting actions are performing as expected. On growth, Zuraitis and EVP & COO Stephen McAnena highlighted that policy-in-force is stabilizing and expected to grow, driven by moderating rate actions, strong retention, and increased new business from lead generation and distribution expansion. Greenier specified the quarter's new money yield for the core fixed maturity portfolio was 5.79%.

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    Michael Zaremski's questions to Hamilton Insurance Group Ltd (HG) leadership

    Michael Zaremski's questions to Hamilton Insurance Group Ltd (HG) leadership • Q2 2025

    Question

    Dan, on behalf of Michael Zaremski from BMO Capital Markets, asked about the growth drivers and MGA competition for the Hamilton Select business. He also inquired about the outlook for Bermuda casualty growth following the AM Best upgrade, the sustainability of the recent share repurchase pace, and the drivers of the total company underwriting expense ratio.

    Answer

    CEO Pina Albo explained that Hamilton Select's strong growth is driven by a healthy flow of business in attractive lines like excess casualty and small business, with all underwriting done in-house, not through MGAs. She noted the company is ahead of its casualty growth target from the rating upgrade but expects more moderate growth ahead. CFO Craig Howie stated that the share repurchase pace is opportunistic, dependent on the stock's valuation, and will be managed diligently during wind season. He attributed the expense ratio changes to business mix and profit commissions, while highlighting continued improvement in the other underwriting expense ratio.

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    Michael Zaremski's questions to Hamilton Insurance Group Ltd (HG) leadership • Q1 2025

    Question

    Michael Zaremski from BMO Capital Markets inquired about the loss trend assumptions in the casualty line of business, the drivers for the higher-than-expected underlying loss ratio, and the quantification of reinstatement premiums. He also asked follow-up questions about the short window for share buybacks and the frequency of performance updates from the Two Sigma Hamilton Fund.

    Answer

    CEO Giuseppina Albo highlighted the positive market response to the A.M. Best upgrade, noting attractive, double-digit pricing in casualty that keeps pace with trends. She emphasized a highly selective client approach. CFO Craig Howie explained that the attritional loss ratio was in line with expectations, influenced by a business mix shift towards casualty and pro rata business. He advised using the full-year 2024 loss ratio as a guide, quantified net reinstatement premiums at $17 million, explained the short buyback window was a timing issue that will be resolved, and confirmed Two Sigma returns are provided monthly.

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    Michael Zaremski's questions to Hamilton Insurance Group Ltd (HG) leadership • Q1 2025

    Question

    Michael Zaremski of BMO Capital Markets inquired about the casualty line of business, specifically the loss trend assumptions being applied by Hamilton and its cedents in light of social inflation. He also asked for clarification on the higher-than-expected underlying attritional loss ratio, the amount of reinstatement premiums, the reason for the short share buyback window, and the frequency of receiving Two Sigma investment return data.

    Answer

    CEO Pina Albo stated that market conditions for casualty are attractive, with pricing in the low to mid-teens keeping pace with trends. She emphasized Hamilton's selective approach, focusing on clients with strong underwriting cultures and significant net retention, a strategy enabled by the recent A.M. Best upgrade which contributed $40 million in new premium in Q1. CFO Craig Howie addressed the loss ratio, explaining it was in line with expectations due to a business mix shift towards casualty and pro rata business, and advised using the full-year 2024 ratio as a guide. He quantified net reinstatement premiums at $17 million, explained the short buyback window was due to a post-IPO board meeting schedule that will be accelerated going forward, and confirmed Two Sigma returns are received monthly.

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    Michael Zaremski's questions to Hamilton Insurance Group Ltd (HG) leadership • Q3 2024

    Question

    Michael Zaremski from BMO Capital Markets asked for more detail on where increased competition from the London market is being felt beyond cyber and whether reinsurers like Hamilton could push for lower ceding commissions on casualty business.

    Answer

    Pina Albo, Group CEO, identified increased competition in London for cyber, D&O, and large global property placements, but noted property rates remain adequate. Regarding casualty reinsurance, she affirmed that concerns over social inflation will support attractive insurance pricing and put downward pressure on ceding commissions. She also stated that Hamilton is 'playing offense' and selectively growing its casualty reinsurance book, capitalizing on opportunities as peers pull back.

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    Michael Zaremski's questions to American International Group Inc (AIG) leadership

    Michael Zaremski's questions to American International Group Inc (AIG) leadership • Q2 2025

    Question

    Michael Zaremski of BMO Capital Markets asked about the expected cadence of expense ratio improvement and the dynamics of the E&S marketplace, particularly the high submission growth at Lexington.

    Answer

    Chairman & CEO Peter Zaffino and EVP & CFO Keith Walsh explained that the expense ratio improvement is not linear and that the 'noise' from parent cost pushdowns, which impacted H1, will dissipate in H2. They highlighted that underlying operating leverage is positive. Regarding the E&S market, Mr. Zaffino stated that contrary to some expectations, AIG is not seeing business flow back to retail from E&S. He attributed the strong Lexington submission growth to the evolving role of wholesale brokers and sees continued growth opportunities by improving bind ratios.

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    Michael Zaremski's questions to American International Group Inc (AIG) leadership • Q1 2025

    Question

    Michael Zaremski asked for insights into AIG's Gen AI transformation, questioning the cost of entry, data readiness process, and AIG's competitive position. He also followed up on North America commercial pricing, asking if AIG is seeing property-driven pricing declines similar to competitors.

    Answer

    Peter Zaffino, Chairman and CEO, explained that AIG's AI adoption is built on a multi-year foundation of process digitization and data quality improvements, and is now moving from pilots to live implementation. He, along with executives Donald Bailey and Jon Hancock, addressed pricing, stating that while property faces headwinds, AIG's technical pricing remains strong, casualty rates are robust, and the company's flight to quality and reinsurance strategy provide advantages over broad market trends.

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    Michael Zaremski's questions to American International Group Inc (AIG) leadership • Q4 2024

    Question

    Michael Zaremski of BMO questioned the General Insurance expense ratio, which has been running higher than expected, and asked for more specific guidance on its future trajectory. He also followed up on the casualty market, asking if AIG is seeing an acceleration in pricing and if it's an area where the company is looking to be more offensive.

    Answer

    Chairman and CEO Peter Zaffino clarified that the expense ratio reflects a strategic shift to a leaner parent company, with business segments absorbing nearly $200 million in expenses previously held in "other operations." He expects ratios to improve through 2025. On casualty, Zaffino confirmed AIG sees significant opportunities, citing a strong rate environment with double-digit increases in areas like retail excess casualty that are outpacing loss cost trends. He affirmed AIG's intent to be an "industry leader" in the space while remaining cautious.

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    Michael Zaremski's questions to American Financial Group Inc (AFG) leadership

    Michael Zaremski's questions to American Financial Group Inc (AFG) leadership • Q2 2025

    Question

    Michael Zaremski of BMO Capital Markets inquired about the growth drivers for the lender-placed business, the status of remediation actions in social inflation-exposed lines, and how year-to-date reserve releases compare to original guidance.

    Answer

    Co-CEO Carl Lindner III explained that growth in the lender-placed business is driven by market disruption and a strategic shift to replacement cost values. He also confirmed that non-renewals in certain housing and daycare accounts are nearly complete. CFO Brian Hertzman added that the current level of reserve releases, though lower year-over-year, aligns with the expectations embedded in the company's initial full-year guidance.

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    Michael Zaremski's questions to American Financial Group Inc (AFG) leadership • Q1 2025

    Question

    Michael Zaremski inquired about the drivers behind the changes in the expense ratio, the composition of the quarter's catastrophe losses, and the company's long-term perspective on balancing premium growth with profitability in the current market cycle.

    Answer

    CFO Brian Hertzman attributed the higher expense ratio to a business mix shift towards financial institutions and planned investments in IT and data analytics. He also confirmed that California wildfire losses were at the low end of the expected range with minimal other cat events. Co-CEO Carl Lindner added that the moderated premium growth reflects a disciplined long-term strategy, citing competitive pressures, headwinds in workers' comp, and the strategic non-renewal of underperforming accounts in social inflation-exposed lines.

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    Michael Zaremski's questions to American Financial Group Inc (AFG) leadership • Q3 2024

    Question

    Michael Zaremski inquired about American Financial Group's approach to IBNR reserves amid rising social inflation, the outlook for its alternative investment portfolio, and the competitive pricing environment in its Property & Casualty segments.

    Answer

    CFO Brian Hertzman explained that reserving is a nuanced, business-by-business process, making a simple IBNR comparison difficult, but confirmed they react quickly to new loss information. Co-CEO Craig Lindner expressed long-term optimism for the multifamily portfolio, expecting new supply to be absorbed by late 2025, and noted a recent uptick in buyer interest. Co-CEO Carl Lindner confirmed a strong pricing environment, highlighting a 12% rate increase in commercial auto liability and double-digit increases in other social inflation-exposed lines.

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    Michael Zaremski's questions to Hagerty Inc (HGTY) leadership

    Michael Zaremski's questions to Hagerty Inc (HGTY) leadership • Q2 2025

    Question

    Michael Zaremski of BMO Capital Markets inquired about trends in premium per vehicle amid market softness and asked about specific initiatives designed to increase the number of vehicles per policy.

    Answer

    CEO McKeel Hagerty acknowledged that while vehicle valuations are 'soft to flat,' they remain stable. CFO Patrick McClymont added that average premium is in line with expectations and competition in their niche is normal. Hagerty then highlighted the launch of the 'Enthusiast Plus' program as the key initiative to expand the addressable market and say 'yes' more often to newer enthusiast vehicles, which is expected to carry higher average premiums and potentially increase vehicles per policy over time.

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    Michael Zaremski's questions to Ryan Specialty Holdings Inc (RYAN) leadership

    Michael Zaremski's questions to Ryan Specialty Holdings Inc (RYAN) leadership • Q2 2025

    Question

    Michael Zaremski of BMO Capital Markets asked about the long-term outlook for property organic growth, questioning if the baseline for future years should be lowered due to current declines. He also inquired about the M&A pipeline and the company's capacity for deals given its current leverage.

    Answer

    CEO Timothy Turner expressed optimism that the property rate decline is a short-term challenge, given underlying loss trends, though CFO Janice Hamilton clarified this optimism is not reflected in current guidance. On M&A, Hamilton noted that despite leverage at 3.5x, the company has ample capacity for deals. Founder & Executive Chairman Patrick Ryan confirmed the M&A pipeline remains robust with both tuck-in and large opportunities, viewing it as a key driver of future organic growth.

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    Michael Zaremski's questions to Ryan Specialty Holdings Inc (RYAN) leadership • Q4 2024

    Question

    Michael Zaremski asked about potential seasonality in the 2025 organic growth outlook and sought clarification on whether the planned investments are more people-focused or technology-focused.

    Answer

    CFO Janice Hamilton confirmed that seasonality would be consistent with past years, noting Q2 would be a tough property comp. Executive Patrick Ryan elaborated on the tough Q4 2023 comp but reiterated long-term bullishness on property. CEO Tim Turner explained that investments are a mix, but efficiency gains from new technology and systems will primarily impact compensation expenses over time, helping them reach the 35% margin target.

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    Michael Zaremski's questions to Ryan Specialty Holdings Inc (RYAN) leadership • Q3 2024

    Question

    Michael Zaremski sought to quantify the contribution of panel consolidation to organic growth. He also asked if the company was seeing a real-time stabilization in property pricing despite some conflicting market data, and whether any new seasonality should be considered for Q4 given the portfolio's evolution.

    Answer

    An executive explained that while panel consolidation is difficult to measure precisely, it is a significant part of new business wins and represents a major future opportunity. They confirmed seeing evidence of property market stabilization in recent weeks, with pricing moving into a 'minus 5% to plus 5%' range. Finally, the executive stated there has been no material change to the company's historical seasonality, with Q4 remaining the largest quarter for revenue.

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    Michael Zaremski's questions to Skyward Specialty Insurance Group Inc (SKWD) leadership

    Michael Zaremski's questions to Skyward Specialty Insurance Group Inc (SKWD) leadership • Q2 2025

    Question

    Michael Zaremski from BMO Capital Markets asked for more details on the alignment and structure of Skyward's relationships with MGAs in which it holds an ownership stake. He also sought clarification on pricing commentary that excluded global property and inquired about headcount growth expectations.

    Answer

    CEO Andrew Robinson described the MGA relationships as deeply strategic and not transactional, highlighting a 20% stake in a key partner that comprises a significant portion of the division's premium. He confirmed that excluding global property from pricing metrics was new, noting that global property net rates were down high-single-digits. Robinson also pointed to improved operating leverage and productivity gains from technology and AI, which influences their headcount strategy.

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    Michael Zaremski's questions to Skyward Specialty Insurance Group Inc (SKWD) leadership • Q3 2024

    Question

    Michael Zaremski asked for the size of the Agriculture book and its exposure to the U.S. crop season, and also inquired about any notable reserve movements during the quarter.

    Answer

    CEO Andrew Robinson noted the Agriculture book was about $30 million last year and is now considerably larger, with U.S. multi-peril crop being a smaller portion of the global book. He confirmed it's a good crop year but stated Skyward has not yet adjusted its conservative loss picks. Both he and CFO Mark Haushill confirmed it was a 'very quiet quarter' for reserves with no notable puts or adds.

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    Michael Zaremski's questions to Allstate Corp (ALL) leadership

    Michael Zaremski's questions to Allstate Corp (ALL) leadership • Q2 2025

    Question

    Michael Zaremski of BMO Capital Markets questioned the future scale of the direct-to-consumer channel and whether its growth would necessitate a significant increase in advertising spend. He also asked if Allstate's strong homeowners growth is due to a favorable competitive environment where others are playing catch-up.

    Answer

    Tom Wilson, Chairman, President & CEO, stated the direct channel will grow as large as customer demand dictates and clarified that marketing spend, which was up in the first half, supports all channels. On homeowners, Mr. Wilson asserted that Allstate is 'really, really good' at the business and expects its competitive advantage to persist. Mario Rizzo, President of Property-Liability, added that despite increased competition, Allstate's superior capabilities, new products, and high bundling rates will continue to drive effective growth.

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    Michael Zaremski's questions to Allstate Corp (ALL) leadership • Q4 2024

    Question

    Michael Zaremski sought details on future plans to lower the expense ratio beyond current achievements and asked if the recent California wildfires would cause Allstate to further retrench from the state.

    Answer

    Executive Jesse Merten confirmed plans to further reduce expenses through digitization, leveraging new technology, and lowering distribution costs, stating they are about 60% of the way through the initiative. CEO Thomas Wilson addressed the California question, clarifying that Allstate has had no growth aspirations in California homeowners insurance since 2007 and has been actively reducing its exposure for over a decade. He does not anticipate this long-standing strategy will change.

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    Michael Zaremski's questions to Everest Group Ltd (EG) leadership

    Michael Zaremski's questions to Everest Group Ltd (EG) leadership • Q2 2025

    Question

    Michael Zaremski of BMO Capital Markets followed up on the insurance expense ratio, asking about the casualty book's growth outlook after the 'one renewal' strategy concludes. He also asked if the recent charge for the Russia/Ukraine aviation court decision is now fully resolved.

    Answer

    Jim Williamson, President & CEO, stated that the casualty remediation will finish in Q3, after which they are 'open for business' for well-priced accounts, though the focus remains on profitability over top-line growth. Regarding the aviation loss, Williamson confirmed that, barring unexpected legal shifts, the issue is 'done and dusted' as they took a conservative approach to the provision once legal clarity was available. He clarified it was unrelated to prior casualty reserving actions.

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    Michael Zaremski's questions to Everest Group Ltd (EG) leadership • Q1 2025

    Question

    Michael Zaremski sought clarification on the cadence of reserve reviews versus loss trend assumption updates and asked if share repurchases were funded by Federal Home Loan Bank (FHLB) borrowings.

    Answer

    CEO Jim Williamson clarified that deep-dive reserve studies are annual, while loss trend assumptions are reviewed more frequently (quarterly). CFO Mark Kociancic stated that FHLB borrowings are a separate spread trade for investment income and are not used to fund share buybacks, which are paid for out of excess capital.

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    Michael Zaremski's questions to Everest Group Ltd (EG) leadership • Q4 2024

    Question

    On behalf of Michael Zaremski of BMO, an analyst asked for quantification of the loss ratio difference between non-renewed and retained business in both the insurance and reinsurance casualty books.

    Answer

    CFO Mark Kociancic noted that for insurance, the exited 'Other' segment had a triple-digit loss ratio, with other non-renewed business varying but some in the 100-120% range. President and CEO Jim Williamson explained that for reinsurance, the performance gap was less severe as the book was higher quality to begin with; exits were driven by more nuanced underwriting concerns like a cedent's ability to keep up with loss trends, rather than major performance deltas.

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    Michael Zaremski's questions to Everest Group Ltd (EG) leadership • Q4 2024

    Question

    Michael Zaremski of BMO Capital Markets inquired about the impact of the accident year 2024 reserve strengthening on the go-forward core loss ratio and whether the expense ratio would be elevated due to significant non-renewals in the casualty business.

    Answer

    Executive James Williamson stated the starting point for the insurance combined ratio is around 100, with the company intending to sustain casualty loss picks at current levels until underwriting actions are proven. He noted that growth in short-tail and international business will provide a tailwind. Executive Mark Kociancic confirmed a 'stickier' expense ratio is expected in 2025 due to premium reductions in U.S. casualty, but noted the go-forward book's composition will improve as remediated business runs off.

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    Michael Zaremski's questions to Arch Capital Group Ltd (ACGL) leadership

    Michael Zaremski's questions to Arch Capital Group Ltd (ACGL) leadership • Q2 2025

    Question

    Michael Zaremski asked about the expected ROEs in property catastrophe reinsurance, particularly in Florida, the strategy for growing in the SME marketplace, and the outlook for the mortgage insurance business.

    Answer

    CEO Nicolas Papadopoulo stated that property cat ROEs remain very attractive, with pricing firm in lower layers despite competition on higher layers. He and CFO & Treasurer François Morin clarified the SME strategy is focused on the mid-market via the recent acquisition, not small business. Morin added that the mortgage insurance outlook is stable, as the portfolio was constructed to be resilient in the current housing environment.

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    Michael Zaremski's questions to Arch Capital Group Ltd (ACGL) leadership • Q1 2025

    Question

    Michael Zaremski inquired about Arch's catastrophe load guidance given the increased deployment of capacity into catastrophe lines and asked for more detail on the competitive pressures within the London specialty market.

    Answer

    CFO François Morin stated that the full-year cat load guidance of 7-8 points should remain relatively stable. Executive Nicolas Alain Papadopoulo added that the Florida outlook is flattish but presents growth opportunities. Regarding London, he explained that competition has increased due to competitors' expanding appetite in lines like terror and marine, and less business flowing in from local international markets.

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    Michael Zaremski's questions to Arch Capital Group Ltd (ACGL) leadership • Q4 2024

    Question

    Michael Zaremski of BMO Capital Markets asked about the drivers for the increased catastrophe load guidance, the current casualty and general liability environment, and the potential for changes to the Bermuda Deferred Tax Asset (DTA).

    Answer

    Executive François Morin explained that the higher 7-8% cat load is driven by the MidCorp acquisition's property-heavy book, not just recent wildfire losses. He affirmed comfort with casualty reserves, noting that while initial loss picks are being prudently increased due to uncertainty, it is not a reaction to adverse development. Regarding the DTA, Morin noted that while OECD guidance might limit future realization, Arch is currently following unchanged Bermuda law.

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    Michael Zaremski's questions to Arch Capital Group Ltd (ACGL) leadership • Q3 2024

    Question

    Michael Zaremski from BMO Capital Markets questioned the company's loss assumptions for Hurricanes Helene and Milton, the reasons for the recent CEO transition, and whether any strategic shifts are forthcoming under new leadership.

    Answer

    Executive François Morin provided an industry loss estimate of $12-14 billion for Helene and around $30 billion for Milton, with Arch's share expected to be proportional. CEO Nicolas Alain Papadopoulo stated the CEO change was a personal decision by his predecessor and not performance-related. He assured investors that the strategy remains unchanged, emphasizing a "business as usual" approach.

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    Michael Zaremski's questions to Cincinnati Financial Corp (CINF) leadership

    Michael Zaremski's questions to Cincinnati Financial Corp (CINF) leadership • Q2 2025

    Question

    Michael Zaremski of BMO Capital Markets inquired about the sustainability of the low expense ratio, the drivers behind higher loss picks in workers' comp and commercial auto, and the competitive dynamics in the property market, particularly for SME business.

    Answer

    EVP & CFO Michael Sewell explained the expense ratio benefited from premium growth outpacing expenses and stated the ongoing goal is to get below 30%. President & CEO Stephen Spray attributed the workers' comp pick to prudence and cited social inflation for commercial auto pressures. He also noted that while the large-account property market is competitive, Cincinnati's risk-by-risk underwriting approach insulates its core SME business from broad market softening.

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    Michael Zaremski's questions to Cincinnati Financial Corp (CINF) leadership • Q1 2025

    Question

    Mike Zaremski of BMO Capital Markets asked about the company's ability to react to tariff-driven inflation given its 3-year commercial policies, its reinsurance strategy following significant Q1 catastrophe losses, and the growth outlook for Personal Lines. He also followed up on a large loss in 'other personal lines'.

    Answer

    CEO Steve Spray explained that 75% of commercial lines premiums are adjusted annually and that even 3-year policies have annual exposure adjustments, allowing for responsiveness. He stated there are no current plans to purchase additional reinsurance as the existing program was reinstated. On Personal Lines, he noted growth faces tougher year-over-year comparisons but remains strong, though the company is more conservative in California post-wildfires. He also clarified a large inland marine (watercraft) claim drove the 'other personal lines' loss ratio.

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    Michael Zaremski's questions to Cincinnati Financial Corp (CINF) leadership • Q4 2024

    Question

    Speaking for Michael Zaremski of BMO Capital Markets, an analyst asked about the loss cost inflation trends in commercial casualty, whether trends were a reaction to contractor industry exposure, and about the potential to adjust the pick for workers' compensation given recent reserve releases.

    Answer

    President and CEO Steve Spray stated that on a prospective basis, pricing is exceeding loss costs in all major lines except workers' compensation. He noted that social inflation is seen more in umbrella and commercial auto rather than their specific construction book. Regarding workers' comp, Mr. Spray acknowledged the favorable results but said any change to their actuarial view is under discussion with no new updates.

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    Michael Zaremski's questions to Cincinnati Financial Corp (CINF) leadership • Q3 2024

    Question

    Michael Zaremski asked if the company is 'playing offense' in commercial casualty by conservatively booking higher loss picks. He also questioned the rationale for the large equity portfolio sell-down and the drivers of growth acceleration in the Excess and Surplus (E&S) lines segment.

    Answer

    President and CEO Steve Spray confirmed the company is 'definitely playing offense' across all segments, enabled by its strong capital position and sophisticated pricing. Regarding the portfolio, Spray stated no change in philosophy, and CIO Steve Soloria added it was opportunistic portfolio management. On E&S growth, Spray noted they are 'just scratching the surface' by expanding expertise, products, and agency relationships.

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    Michael Zaremski's questions to Hartford Insurance Group Inc (HIG) leadership

    Michael Zaremski's questions to Hartford Insurance Group Inc (HIG) leadership • Q2 2025

    Question

    Michael Zaremski of BMO Capital Markets asked about the investment portfolio, specifically why the annualized yield ex-LPs has remained flat despite a much higher reinvestment yield. He also inquired about policy retention trends and targets in Small Business and Middle Market.

    Answer

    Chairman & CEO Christopher Swift confirmed no change in investment philosophy. CFO Beth Costello clarified that the overall yield has been pressured by lower yields on variable rate securities. On retention, President A. Morris Tooker stated that current levels in the mid-80s for Small Business are on plan, and the incrementally lower retention in Middle Market is also as expected.

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    Michael Zaremski's questions to Hartford Insurance Group Inc (HIG) leadership • Q1 2025

    Question

    Michael Zaremski of BMO Capital Markets asked about the outlook for pricing in social inflation-exposed casualty lines and the drivers behind the strong growth and market share gains in the E&S business.

    Answer

    CEO Christopher Swift reiterated that social inflation remains a persistent problem. Executive Adin Tooker added that GL and excess lines pricing remains strong and in excess of trend. Regarding E&S, Tooker explained their strategy involves applying successful small business technology to the wholesale market and strategically expanding relationships. In Global Specialty, growth is driven by building out non-construction lines on the back of strong existing wholesale partnerships.

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    Michael Zaremski's questions to Hartford Insurance Group Inc (HIG) leadership • Q3 2024

    Question

    Michael Zaremski of BMO Capital Markets sought more detail on general liability trends, asking if they were concentrated in specific areas like account size. He also asked whether the disciplined commercial pricing environment is being driven more by loss trends than by the benefit of higher investment income.

    Answer

    CEO Christopher Swift and executive Adin Tooker clarified that increased attorney representation is a broad issue not concentrated by account size. On pricing, Swift stated the environment is "principally driven by loss trends," not investment income, as the company focuses on maintaining its strong underwriting margins. Tooker added that navigating the difficult environment requires sophisticated tools and disciplined underwriting choices.

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    Michael Zaremski's questions to Brown & Brown Inc (BRO) leadership

    Michael Zaremski's questions to Brown & Brown Inc (BRO) leadership • Q2 2025

    Question

    Michael Zaremski of BMO Capital Markets questioned the rapid pace of organic growth deceleration, asking if it was more than a classic market softening, and inquired about the long-term margin outlook in a lower-growth environment.

    Answer

    President, CEO & Director J. Powell Brown described the market behavior as a 'classic cycle,' noting the speed of the property rate decline was the surprising element, not the decline itself. EVP, CFO & Treasurer R. Andrew Watts added that there is no change to long-term margin guidance, as the company's diversified model and potential for higher contingent commissions provide a buffer.

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    Michael Zaremski's questions to Brown & Brown Inc (BRO) leadership • Q1 2025

    Question

    Michael Zaremski inquired about the potential headwind from declining cat property pricing on the Programs segment's organic growth for the remainder of the year and whether rising employee benefits costs contributed to Q1 retail organic growth.

    Answer

    Executive R. Watts clarified that the Programs segment's growth moderation is not solely due to cat property rates, citing leveling growth in the lender-placed business and captives as contributing factors. He also warned that Q4 Programs organic growth could be near zero due to a tough comparison with prior-year hurricane claims revenue. Executive J. Powell Brown added that the company was pleased with retail's organic growth, which was in line with expectations, and that the employee benefits business has varied revenue recognition models affecting timing.

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    Michael Zaremski's questions to Brown & Brown Inc (BRO) leadership • Q3 2024

    Question

    Michael Zaremski asked about the structural or secular drivers behind the Programs segment's exceptional growth and also inquired about pricing trends in the casualty insurance market.

    Answer

    J. Powell Brown, an executive, attributed the Programs segment's success to the large and growing nature of the program space and the company's position as the largest delegated underwriting authority. On casualty, he noted seeing continued pricing discipline and upward rate pressure across primary, excess, admitted, and non-admitted lines, which he expects to continue.

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    Michael Zaremski's questions to Renaissancere Holdings Ltd (RNR) leadership

    Michael Zaremski's questions to Renaissancere Holdings Ltd (RNR) leadership • Q2 2025

    Question

    Michael Zaremski of BMO Capital Markets probed the durability of RenaissanceRe's ability to achieve better-than-market pricing, citing the 80% of Florida premium written on private terms, and asked about the market impact of Florida's tort reform.

    Answer

    President & CEO Kevin O'Donnell and EVP & Group Chief Underwriting Officer David Marra described their ability to secure private terms as a sustainable advantage stemming from scale, risk selection, and deep client relationships, while noting 80% is on the high end of execution. On tort reform, O'Donnell stated the benefits are more significant for primary carriers and that some of the benefit is already being competed away through rate reductions.

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    Michael Zaremski's questions to Renaissancere Holdings Ltd (RNR) leadership • Q1 2025

    Question

    Michael Zaremski asked for views on the Florida property market, specifically whether recent legislative reforms are positively impacting the loss curve, and inquired about the appropriate go-forward tax rate to model for the company.

    Answer

    EVP & Group Chief Underwriting Officer David Marra confirmed the Florida reforms have had a positive impact, but noted it's still early to see the full effect, leading to a cautiously optimistic view. CEO Kevin O'Donnell added the benefits are currently more visible in attritional losses. CFO Bob Qutub advised that modeling a tax rate 'just above 15%' is appropriate to account for income from higher-tax jurisdictions outside of Bermuda.

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    Michael Zaremski's questions to Renaissancere Holdings Ltd (RNR) leadership • Q4 2024

    Question

    Michael Zaremski found it counterintuitive that the company was raising its prospective loss pick for casualty if underlying trends are improving, and asked about the strong prior-year development in property, questioning if the company's reserving has become more conservative.

    Answer

    CEO Kevin O'Donnell explained that raising the current year loss pick reflects a prudent "buffer of concern" for market uncertainty, which could reverse into favorable development if positive trends persist. CFO Bob Qutub stated that the property development reflects the natural refinement of estimates over time. O'Donnell added that their reserving process hasn't changed, but the $50 billion wildfire loss estimate has higher-than-usual variability due to the recency of the event.

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    Michael Zaremski's questions to Renaissancere Holdings Ltd (RNR) leadership • Q3 2024

    Question

    Michael Zaremski asked if the mid-to-upper 90s combined ratio guidance for Casualty & Specialty contemplates improvements in ceding commissions and continued material rate increases. He also sought to confirm if the reason for not taking a prior-year reserve charge is that RenRe's book is more conservatively reserved, providing a cushion against higher trends.

    Answer

    An executive confirmed the guidance for 2025 includes assumptions for additional loss trend and rate increases, and if rates accelerate further, it would be positive. CFO Robert Qutub affirmed the conservative reserving posture, explaining that during the 2020-2021 hard market, the company did not reduce its loss picks as much as rate improvements might have suggested, creating a buffer. He also cited their slow-to-recognize-good-news development curves as a key part of their process.

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    Michael Zaremski's questions to Goosehead Insurance Inc (GSHD) leadership

    Michael Zaremski's questions to Goosehead Insurance Inc (GSHD) leadership • Q2 2025

    Question

    Michael Zaremski from BMO Capital Markets asked for clarification on the drivers of the current dynamic between revenue and premium growth, whether new partnerships are included in guidance, and for an update on the commission rate outlook.

    Answer

    CFO Mark Jones Jr. and President & CEO Mark Miller stated the dynamic is driven by an intentional shift to lower-premium states and leveling premium growth rates. They confirmed new partnerships like Baird and Warner are not yet baked into guidance. The outlook on commission rates is more optimistic than the prior quarter, with admitted carriers re-entering markets and the auto insurance market described as 'wide open'.

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    Michael Zaremski's questions to Goosehead Insurance Inc (GSHD) leadership • Q1 2025

    Question

    Michael Zaremski asked about the drivers of the Core Revenue to premium ratio, productivity trends for new franchises, potential seasonality impacts on Q1 premium growth, and the rationale for highlighting the liquidity of franchise agencies.

    Answer

    CFO Mark Jones Jr. attributed the revenue/premium ratio to the mix of corporate versus franchise business. He noted new franchise productivity remains strong and that Q1 premium growth was affected by fewer business days. He and CEO Mark Miller explained that franchise liquidity and consolidation are signs of a maturing, healthy system where stronger agencies acquire smaller ones, rather than a sign of failure.

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    Michael Zaremski's questions to Goosehead Insurance Inc (GSHD) leadership • Q4 2024

    Question

    Michael Zaremski asked for clarity on the corporate agent growth outlook, the reason for the wide revenue guidance range, the materiality of new mortgage servicer partnerships, and any potential Q1 impact from California wildfires.

    Answer

    CEO Mark Miller noted corporate hiring slowed slightly to manage absorptive capacity but remains a focus. CFO Mark Jones Jr. attributed the guidance range to the uncertain timing of client retention recovery versus slowing price increases. He described the mortgage servicer channel as not yet 'massively material' but growing in importance. He also confirmed the California wildfires would not materially impact Q1 results.

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    Michael Zaremski's questions to Goosehead Insurance Inc (GSHD) leadership • Q3 2024

    Question

    Michael Zaremski asked about the wide full-year revenue guidance range, the drivers of the implied revenue-to-premium ratio improvement in Q4, and the sustainability of recent corporate agent growth.

    Answer

    CFO Mark Jones Jr. attributed the wide guidance to volatility in product availability and, crucially, contingent commissions, which have a binary impact and are not finalized until late in the year. He noted these contingents also drive the revenue-to-premium ratio. CEO Mark Miller and CFO Mark Jones Jr. confirmed that the strong corporate agent hiring is a result of a scaled-up recruiting engine and is expected to be repeatable, limited mainly by the capacity to manage and train new hires.

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    Michael Zaremski's questions to Chubb Ltd (CB) leadership

    Michael Zaremski's questions to Chubb Ltd (CB) leadership • Q2 2025

    Question

    Michael Zaremski from BMO Capital Markets asked to quantify the impact of litigation finance on commercial loss trends and sought an outlook for the large account property market given recent price declines.

    Answer

    Chairman & CEO Evan Greenberg stated that quantifying litigation finance's impact is difficult, but they can measure the effect of state-specific liability laws. On large account property, he described it as a capital-driven trading business that is currently on the edge of underpricing. He believes economics will eventually force a correction in response to losses, but the timing is uncertain.

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    Michael Zaremski's questions to Chubb Ltd (CB) leadership • Q2 2025

    Question

    Michael Zaremski from BMO Capital Markets asked to quantify the portion of commercial loss trend from social inflation and sought a prospective view on the large account property market's pricing cycle.

    Answer

    Chairman & CEO Evan Greenberg responded that while it's difficult to isolate the impact of litigation finance, they can measure the economic effects of state-specific liability laws. On large account property, he described it as a capital-driven trading market, stating that while economics will eventually force a correction in response to losses, the timing is uncertain and depends on catastrophe activity.

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    Michael Zaremski's questions to Chubb Ltd (CB) leadership • Q1 2025

    Question

    Michael Zaremski questioned the outlook for double-digit EPS growth, seeking clarity on Chubb's view of catastrophe inflation. He also asked for commentary on North America commercial lines, specifically regarding social inflation and the quarter's strong reserve releases.

    Answer

    Chairman and CEO Evan G. Greenberg explained that while he cannot predict inflation or FX, the company continuously updates its view of catastrophe risk by peril and is not focused on quarter-to-quarter volatility. Regarding reserve releases, he noted that the quarter involved a review of a smaller cohort of portfolios and cautioned investors against focusing too narrowly on North America, emphasizing the significant contribution of Chubb's global operations.

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    Michael Zaremski's questions to Chubb Ltd (CB) leadership • Q4 2024

    Question

    Michael Zaremski followed up on the secular changes in the U.S. middle market, asking if Chubb's advantages reduce the need for M&A, and also inquired about the recent increase in equities in the investment portfolio.

    Answer

    Chairman and CEO Evan G. Greenberg reiterated that the company's focus in the small and middle market is organic growth, with any inorganic moves being purely opportunistic. CFO Peter Enns clarified the increase in equities was a GAAP reclassification of ~$5 billion of investment-grade corporates into a fund for efficiency, not a change in underlying investment strategy.

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    Michael Zaremski's questions to W R Berkley Corp (WRB) leadership

    Michael Zaremski's questions to W R Berkley Corp (WRB) leadership • Q2 2025

    Question

    Michael Zaremski from BMO Capital Markets asked for updates on the Mitsui stake, the potential impact of medical inflation, and the reasoning behind the change in the definition of operating earnings.

    Answer

    President & CEO W. Robert Berkley, Jr. stated he had no new information on the Mitsui stake and confirmed the company has performed sensitivity analysis on potential medical inflation impacts. EVP & CFO Richard Baio explained the operating earnings definition was changed to reduce volatility from foreign currency fluctuations, aligning with how analysts typically model the company.

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    Michael Zaremski's questions to W R Berkley Corp (WRB) leadership • Q2 2025

    Question

    Michael Zaremski of BMO Capital Markets asked for an update on the Mitsui stake, the potential impact of medical inflation, and the rationale for redefining operating earnings.

    Answer

    President & CEO W. Robert Berkley, Jr. stated he had no new information on the Mitsui stake and noted the company has performed sensitivity analysis on medical inflation risks. EVP & CFO Richard Baio explained the operating earnings definition was changed to exclude volatile foreign currency gains and losses for a more straightforward view of performance.

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    Michael Zaremski's questions to W R Berkley Corp (WRB) leadership • Q1 22025

    Question

    Michael Zaremski asked for the company's view on workers' compensation profitability in a potential recession, the current pricing adequacy in other liability occurrence, and if the potential impact of tariffs on commercial property could be quantified.

    Answer

    Executive W. Berkley acknowledged that while wage inflation has been a tailwind for workers' comp, it can cut both ways against medical cost inflation, and noted growth is focused on specialty comp. On other liability, he said the company has kept up with trends but will wait to see if market discipline creates opportunities. He reiterated that it is premature to quantify the tariff impact, as the situation remains a moving target, but confirmed it would drive up loss costs if implemented as advertised.

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    Michael Zaremski's questions to W R Berkley Corp (WRB) leadership • Q4 2024

    Question

    Michael Zaremski of BMO Capital Markets asked for an update on the outlook for workers' compensation, given its strong profitability and reserve releases. He also questioned if the faster growth in E&S is positively impacting the company's overall combined ratio and whether the company is seeing any pricing deceleration in the E&S casualty market.

    Answer

    W. Robert Berkley, Jr. (Executive) candidly admitted to misassessing the persistence of negative frequency trends and the benefit of wage inflation in workers' comp but remains concerned about long-term medical cost trends. He confirmed the company is growing in specialized comp. He expressed confidence that all growth areas should positively impact the combined ratio but cautioned against getting ahead on recognizing margin improvement due to the long-tail nature of the business. He stated he does not see pricing momentum eroding in E&S casualty, though property is a different story.

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    Michael Zaremski's questions to W R Berkley Corp (WRB) leadership • Q3 2024

    Question

    Michael Zaremski from BMO Capital Markets asked for a definition of the company's non-admitted market business, specifically if it includes Lloyd's, and questioned the potential to be more aggressive in social inflation-exposed lines like excess casualty.

    Answer

    Executive W. Berkley confirmed that a meaningful percentage of their non-admitted business is written through Lloyd's and is largely U.S.-centric and focused on smaller accounts. He affirmed there is significant opportunity for more rate in the excess and umbrella space and that the company is executing on it, while reiterating that their focus remains primarily on smaller accounts rather than the large account business often highlighted in market indices.

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    Michael Zaremski's questions to Marsh & McLennan Companies Inc (MMC) leadership

    Michael Zaremski's questions to Marsh & McLennan Companies Inc (MMC) leadership • Q2 2025

    Question

    Michael Zaremski from BMO Capital Markets inquired about the primary drivers for organic growth in the Risk and Insurance Services (RIS) segment, asking if nominal GDP is the main factor. He also asked about the company's confidence in managing profit margins amidst current uncertainties.

    Answer

    President & CEO John Doyle agreed that nominal GDP is a key factor for RIS growth but noted current headwinds from slowing U.S. economic activity, deferred projects, and declining P&C pricing. He affirmed the company's confidence in managing profitability, citing extensive scenario planning and reiterating the outlook for an 18th consecutive year of margin expansion.

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    Michael Zaremski's questions to Marsh & McLennan Companies Inc (MMC) leadership • Q2 2025

    Question

    Michael Zaremski of BMO Capital Markets inquired whether nominal GDP is the primary driver for the Risk & Insurance Services (RIS) segment's organic growth, more so than pricing. He also asked if management remains confident in its ability to manage profit margins despite macro uncertainties.

    Answer

    President & CEO John Doyle agreed with the characterization of RIS growth drivers, noting that a defensive posture from US businesses, along with declining P&C pricing and lower fiduciary income, are current headwinds. He affirmed confidence in managing the business for margin expansion, stating that the company's performance is tracking with expectations and that they consistently scenario-plan for various economic conditions.

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    Michael Zaremski's questions to Marsh & McLennan Companies Inc (MMC) leadership • Q1 2025

    Question

    Michael Zaremski inquired about Marsh McLennan's expense management playbook amid macro uncertainty and asked for an outlook on global property insurance rates, which have been decelerating.

    Answer

    President and CEO John Doyle confirmed the company models downside scenarios and has levers to pull, such as reducing discretionary spending and slowing hiring, without damaging long-term growth. On pricing, Doyle, along with Marsh CEO Martin South and Guy Carpenter CEO Dean Klisura, noted that softer property rates were expected and provide client relief. South detailed the index decline, while Klisura described a competitive reinsurance market with ample capacity, leading to rate decreases for non-loss impacted property cat programs.

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    Michael Zaremski's questions to Marsh & McLennan Companies Inc (MMC) leadership • Q4 2024

    Question

    Michael Zaremski revisited the 'mid-single-digit' growth guidance, pressing for reasons behind the subtle change from 'or greater' and suggesting the softening large account pricing index might be a factor. He also asked about the drivers behind the flat year-over-year capital deployment guidance of $4.5 billion for 2025.

    Answer

    CEO John Doyle reiterated not to over-read the guidance change, identifying fiduciary income as the primary headwind, not P&C pricing, which has a more limited impact. CFO Mark McGivney explained that deploying $4.5 billion in 2025 is a strong outlook, representing a normal year of capital allocation after a record $12 billion deployment in 2024, demonstrating the company's financial flexibility and strong cash generation.

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    Michael Zaremski's questions to Marsh & McLennan Companies Inc (MMC) leadership • Q3 2024

    Question

    Michael Zaremski questioned how the Marsh pricing index, which turned negative, is impacting Marsh's organic growth. He also sought more detail on the U.S. excess casualty market, where rates increased approximately 20%.

    Answer

    President and CEO John Doyle explained that the link between the pricing index and revenue is not direct, as client buying habits also play a role, and noted the index is skewed toward large accounts. On casualty, Martin South, CEO of Marsh, confirmed the 21% rate increase in the excess book and stated that while they are not seeing capacity dislocations, there has been a significant movement of business to the E&S market, where Marsh is a major participant.

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    Michael Zaremski's questions to Fidelis Insurance Holdings Ltd (FIHL) leadership

    Michael Zaremski's questions to Fidelis Insurance Holdings Ltd (FIHL) leadership • Q1 2025

    Question

    Michael Zaremski asked for clarification on what 'recoveries' meant in the context of the California wildfire losses, questioned if strong 'construction' growth referred to U.S. property, and inquired about the scale of 'loss impacted accounts' expected to see rate increases.

    Answer

    CFO Allan Decleir clarified that 'recoveries' referred to outwards reinsurance, not subrogation. CEO Dan Burrows specified that the 'construction' growth was in the Marine line (e.g., military vessels, cruise ships), not U.S. property construction. Regarding loss-impacted accounts, Burrows noted that appropriate adjustments are being made for covers affected by recent events but did not quantify the scale as midyear renewals are ongoing.

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    Michael Zaremski's questions to Fidelis Insurance Holdings Ltd (FIHL) leadership • Q4 2024

    Question

    Michael Zaremski asked for commentary on the competitive environment, particularly in property lines, and how pricing is determined in the bespoke segment given its growth.

    Answer

    CEO Dan Burrows highlighted that Fidelis's lead market position allows it to achieve differentiated rates and terms, citing a 111% RPI for the full year. Chief Actuarial Officer Jonny Strickle added that bespoke pricing is evaluated on a deal-by-deal basis against profitability hurdles, with pricing supported by the value proposition of providing capital relief or facilitating transactions for clients.

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    Michael Zaremski's questions to Fidelis Insurance Holdings Ltd (FIHL) leadership • Q3 2024

    Question

    Michael Zaremski requested more color on the private share repurchase from ADIA's subsidiary, Platinum Ivy, and asked if any repurchases were made on the open market. He also asked if the slowdown in Aviation GPW was related to the Russia-Ukraine conflict.

    Answer

    CFO Allan Decleir described the repurchase from Platinum Ivy as a mutually beneficial and accretive transaction, confirming that some open market purchases also occurred. Chief Actuarial Officer Jonathan Strickle clarified that the aviation slowdown was due to general market dynamics where anticipated rate increases did not materialize, not the Russia-Ukraine conflict.

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    Michael Zaremski's questions to Arthur J. Gallagher & Co. (AJG) leadership

    Michael Zaremski's questions to Arthur J. Gallagher & Co. (AJG) leadership • Q1 2025

    Question

    Michael Zaremski sought clarification on a 1-point timing benefit in Brokerage organic growth and asked about the widening gap between overall organic growth and the Renewal Premium Change (RPC) metric, also inquiring about the AssuredPartners data request timeline.

    Answer

    CFO Douglas Howell clarified that a $26 million item from the prior year was a non-operational accounting gross-up and is separate from the current timing benefit. J. Gallagher, an executive, explained the gap between organic growth and RPC is due to the company's evolution, including more large-account, fee-based business and improved sales tools. He added that the data request for the AssuredPartners deal is extensive for both parties.

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    Michael Zaremski's questions to Arthur J. Gallagher & Co. (AJG) leadership • Q4 2024

    Question

    Michael Zaremski of BMO Capital Markets inquired about the expected cadence of organic growth in 2025 for the Brokerage segment, particularly regarding Q1 seasonality and the impact of reinsurance pricing. He also asked about the potential to optimize fiduciary investment income following the AssuredPartners acquisition and the timeline for realizing those gains.

    Answer

    CFO Douglas Howell explained that while reinsurance pricing has changed, clients are purchasing more coverage, maintaining total spend. He noted that Q1 typically sees stronger reinsurance-driven organic growth, though this is partly offset by health and welfare renewals. Regarding fiduciary income, Mr. Howell confirmed that AssuredPartners presents a significant optimization opportunity, similar to Gallagher's own past consolidation efforts, and estimated the process would be completed within 18 months.

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    Michael Zaremski's questions to Arthur J. Gallagher & Co. (AJG) leadership • Q3 2024

    Question

    Michael Zaremski asked about the drivers of the sequential organic growth uplift in the Brokerage segment, the spike in fiduciary investment income, the outlook for casualty pricing, and the revenue contribution from the lumpy life insurance business.

    Answer

    CFO Douglas Howell explained that about one point of the Q4 organic growth uplift is from life insurance sales catching up, with underlying business trends stable around 7.5%. He attributed investment income fluctuations to the premium funding business. Executive J. Gallagher and CFO Douglas Howell both noted continued pricing strength in casualty lines like Umbrella. Howell specified the lumpy life insurance business is approximately a $125 million operation.

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    Michael Zaremski's questions to Mediaalpha Inc (MAX) leadership

    Michael Zaremski's questions to Mediaalpha Inc (MAX) leadership • Q1 2025

    Question

    Michael Zaremski of BMO Capital Markets asked about the drivers for the declining contribution margin, the mix of clicks versus other lead types, the conservatism in Q2 guidance after a strong Q1 beat, and the potential timeline for resolving the FTC inquiry.

    Answer

    Executive Patrick Thompson explained the company focuses on 'take rate' (contribution as a % of transaction value), which is decreasing due to the growing mix of P&C business and natural rate compression with larger partners. Executive Steven Yi attributed the Q1 beat to carrier conservatism fading faster than expected. Regarding the FTC matter, management stated they could not comment on the timeline but would provide updates when a resolution is reached.

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    Michael Zaremski's questions to Selective Insurance Group Inc (SIGI) leadership

    Michael Zaremski's questions to Selective Insurance Group Inc (SIGI) leadership • Q1 2025

    Question

    Michael Zaremski questioned the pronounced seasonality in the Q1 underlying combined ratio, the conservative loss pick for workers' compensation, the potential impact of tariffs on commercial property, and reserve development in commercial lines.

    Answer

    CEO John J. Marchioni explained that the Q1 seasonality is normal and driven by non-cat property losses, accounting for about 1 point of the variance from full-year guidance. He justified the workers' comp loss pick by citing negative earned rates and flat frequency assumptions against medical severity inflation. Marchioni assessed the impact of potential tariffs as manageable due to mitigants like labor costs and domestic material sourcing. He also confirmed no notable prior year reserve development in commercial lines for the quarter.

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    Michael Zaremski's questions to Selective Insurance Group Inc (SIGI) leadership • Q1 2025

    Question

    Mike Zaremski of BMO Capital Markets questioned the pronounced seasonality in Q1 results, the conservative loss pick for Workers' Compensation, and the potential impact of tariffs on commercial property loss costs.

    Answer

    CEO John J. Marchioni explained that Q1 seasonality is driven by non-cat property and is in line with historical patterns. He justified the Workers' Comp loss pick by citing negative rate pressure, flat frequency assumptions, and medical severity inflation. Regarding tariffs, he stated the impact is manageable due to mitigants like the labor vs. material cost split and domestic sourcing, estimating a low single-digit overall impact.

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    Michael Zaremski's questions to Selective Insurance Group Inc (SIGI) leadership • Q3 2024

    Question

    Michael Zaremski inquired if the new CFO, Patrick Brennan, influenced the recent commercial auto reserve actions. He also asked if the strong underlying loss ratio in Standard Commercial Lines should be normalized for lower non-cat property losses, and if flood claim handling fees would continue into Q4.

    Answer

    John J. Marchioni, Chairman, President & CEO, affirmed that Selective's reserving process is a long-standing, collaborative effort and was not fundamentally changed by the new CFO's arrival. Both Marchioni and Anthony David Harnett, SVP & Chief Accounting Officer, agreed that while pricing helped the underlying ratio, non-cat property losses were volatile and averaging them over time is prudent. They also stated that the bulk of the flood claim fees were contained within Q3.

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    Michael Zaremski's questions to Selective Insurance Group Inc (SIGI) leadership • Q3 2024

    Question

    Michael Zaremski inquired about the influence of new CFO Patrick Brennan on the recent commercial auto reserve actions. He also asked about the sustainability of the strong Standard Commercial Lines underlying loss ratio and whether flood claim handling fees would continue into Q4.

    Answer

    CEO John J. Marchioni affirmed that while new CFO Patrick Brennan's experience is valuable, the reserve process is a long-standing, collaborative effort and the recent actions were consistent with this established process. Both Marchioni and SVP & Chief Accounting Officer Tony Harnett advised against run-rating the quarter's strong non-cat property results, expecting a return to more normal levels. They also indicated the bulk of Hurricane Helene-related flood fees were recognized in Q3.

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    Michael Zaremski's questions to Selective Insurance Group Inc (SIGI) leadership • Q2 2024

    Question

    Michael Zaremski of BMO Capital Markets asked for context on the 9% general liability (GL) loss trend assumption relative to history, questioned if the recent reserve charge was a comprehensive "kitchen sink" event, and sought to understand why commercial auto reserves did not require similar strengthening. He also asked about the rationale for sequential quarterly reserve additions and inquired about the catastrophe loss trend assumption.

    Answer

    John J. Marchioni, Chairman, President & CEO, explained the 9% GL trend is severity-driven and applied to a higher starting point based on recent experience. He differentiated commercial auto by noting it was impacted by severity trends earlier, has a shorter tail, and has benefited from stronger pricing for a much longer period. He described the reserve actions as a prudent response to adverse emergence over two consecutive quarters. Regarding catastrophes, he stated their assumption has already increased to 5.5% and that recent pressure has been more pronounced in personal lines.

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    Michael Zaremski's questions to Travelers Companies Inc (TRV) leadership

    Michael Zaremski's questions to Travelers Companies Inc (TRV) leadership • Q1 2025

    Question

    Michael Zaremski of BMO Capital Markets asked about the drivers of accelerating price increases in home insurance and whether the trend was company-specific or industry-wide. He also inquired about the current state of social inflation.

    Answer

    Michael Klein, President of Personal Insurance, explained the pricing acceleration was driven by increasing insured limits to match rising replacement costs, a broad industry trend, on top of continued rate increases. Alan Schnitzer, Chairman and CEO, commented on social inflation, stating it is 'alive and well' and impacting the industry, but the levels observed are consistent with the company's expectations.

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    Michael Zaremski's questions to Travelers Companies Inc (TRV) leadership • Q4 2024

    Question

    Michael Zaremski questioned the drivers behind the commercial lines reserve releases and inquired about current pricing trends in the workers' compensation line.

    Answer

    CFO Dan Frey attributed the favorable development primarily to better-than-expected results in workers' compensation, while cautioning that prior year development (PYD) is not a run-rate item. Chairman and CEO Alan Schnitzer described workers' comp pricing as 'largely stable,' with slightly negative pure renewal rates offset by positive exposure changes.

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    Michael Zaremski's questions to Travelers Companies Inc (TRV) leadership • Q3 2024

    Question

    Michael Zaremski asked if any one-time items benefited the Business Insurance underlying loss ratio and inquired about the extent of changes to terms and conditions, such as deductibles, in Personal Lines.

    Answer

    CFO Dan Frey confirmed the Business Insurance result was a 'pretty clean' quarter with no significant one-time items. Michael Klein, President of Personal Insurance, affirmed that Travelers is actively making meaningful changes to property terms, including using percentage-based deductibles in catastrophe-exposed areas.

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    Michael Zaremski's questions to Aon PLC (AON) leadership

    Michael Zaremski's questions to Aon PLC (AON) leadership • Q4 2024

    Question

    Speaking on behalf of Michael Zaremski, an analyst asked if the tax rate guidance includes OECD Pillar 2 impacts and questioned the key puts and takes for the double-digit free cash flow growth forecast in 2025.

    Answer

    CFO Edmund Reese confirmed the 19.5%-20.5% tax rate guidance contemplates all currently known policy changes, including Pillar 2. For free cash flow, Reese cited operating income growth, working capital improvements, a ~$300M contribution from NFP, and lower one-time costs as key drivers. CEO Gregory Case reiterated the commitment to double-digit FCF growth from 2023 to 2026.

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    Michael Zaremski's questions to Aon PLC (AON) leadership • Q3 2024

    Question

    Michael Zaremski sought to understand the components of organic growth acceleration and asked about the progress and future updates regarding revenue synergies from the NFP acquisition.

    Answer

    CFO Edmund Reese clarified that organic growth continues to be driven primarily by strong net new business, consistent with historical trends, rather than market impact. Regarding NFP, Reese and President Eric Andersen expressed high confidence in meeting synergy targets, noting they are tracking ahead on EPS accretion. Andersen provided examples of cross-selling Aon's analytical tools to NFP clients, while CEO Gregory Case highlighted that the 'independent and connected' model is also attracting new M&A targets and talent.

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