Peter Knudsen

Peter Knudsen asked about FactSet's outlook for pricing contributions on new business in fiscal 2026, considering past pressures and recent stabilization in pricing.

Answer

Helen Shan, CFO, affirmed FactSet's consistent pricing discipline, stating that the value provided to clients is appropriately priced. She noted that price realization has remained stable, within a 5% range, with no increased discounting. Q4 saw an uptick in new business, both in ASV and deal volume. The annual price increase was in line with expectations, and no different assumptions are included in the fiscal 2026 outlook.

Peter Knudsen from Evercore ISI requested a growth breakdown between residential and commercial earthquake lines and asked about the pricing assumptions in the updated outlook. He also questioned the drivers of the quarter's elevated accident year loss ratio, excluding catastrophes.

Answer

Chairman and CEO Mac Armstrong noted that while specific growth rates aren't disclosed, the larger residential quake book is growing healthily, and July results support the high single-digit outlook for the franchise. CFO Chris Uchida attributed the higher loss ratio to a mix shift, primarily the earlier-than-expected recognition of premium and losses from the Crop business, which does not alter the full-year outlook.

Peter Knudsen from Evercore ISI asked for a growth breakdown between residential and commercial earthquake lines, the pricing assumptions in the updated guidance, and the reason for the increase in the accident year loss ratio excluding catastrophes.

Answer

Mac Armstrong, Chairman, CEO & Founder, stated that while they don't break out the growth rates, the larger residential earthquake book is performing strongly, offsetting pressure in the commercial segment. Chris Uchida, CFO, clarified that the higher loss ratio was primarily mix-driven due to the earlier-than-expected recognition of crop insurance premiums and associated losses, which does not change the full-year outlook and may provide a tailwind later in the year.

Peter Knudsen asked for a growth breakdown between residential and commercial earthquake lines and inquired about the driver behind the sequential increase in the accident year loss ratio, excluding catastrophes.

Answer

Mac Armstrong, Chairman & CEO, explained that while they don't break out the specific growth rates, the residential earthquake book is larger and growing robustly. Chris Uchida, CFO, clarified that the higher loss ratio was primarily due to business mix, specifically the earlier-than-anticipated recognition of premium and associated losses from the crop insurance business, which does not change the full-year outlook.

Peter Knudsen asked for specific expectations for the 2025 ROE within the company's long-term target range and inquired about the industry loss assumption embedded in the Russia-Ukraine aviation reserves.

Answer

CEO Dan Burrows did not provide a specific 2025 ROE target but reiterated confidence in the long-term 13-15% goal, citing a positive pricing environment and strong underwriting track record. Chief Actuarial Officer Jonny Strickle explained that an industry loss for the aviation event is difficult to determine because cases have not gone to judgment and private settlements are not disclosed.