Total Revenue

3.5% increase (from $3,547.4 million in Q1 2025 to $3,670.8 million in Q2 2025 " " " )

Total Revenue grew modestly in Q2 2025 due to the continued strength of core insurance performance—particularly sustained earned premium growth from previous quarters—and a recovery in net investment gains that built on improvements seen in Q1 2025. This was complemented by organic enhancements in insurance service fees and non-insurance revenues that had begun rising in prior periods.

Earned Premiums

Dominant contribution; $2,728.8 million in Q2 2025

Earned Premiums remain the primary revenue driver, echoing the prior period’s improvements where increases in gross premiums written were supported by higher renewal rates and improved retention levels. Previous period gains, such as the 10% growth in gross premiums and a 9% increase in earned premiums reported in Q1 2025, continue to underpin the consistency seen in Q2 2025. " " "

Reinsurance & Monoline Excess

Essentially flat ($369.4 million in Q2 2025 versus $370 million previously " )

The Reinsurance & Monoline Excess segment maintained its contribution with nearly identical revenue figures, reflecting the sustained benefits from prior period growth—where an 8.2% increase driven by gains in property and excess workers’ compensation had been noted—although modest headwinds in casualty persist. This steady performance continues the trend established in earlier periods. " "

Net Investment Gains/Losses

Increased from $16.4 million in Q1 2025 to $30.973 million in Q2 2025 " " "

Net Investment Gains saw a significant recovery in Q2 2025, largely due to improved unrealized gains on equity securities and a much smaller change in the allowance for expected credit losses compared to Q1 2025. This improvement builds on the volatile results observed in earlier periods where net investment performance was subject to factors like realized losses and foreign exchange effects, leading to a sharper rebound in Q2.

Insurance Service Fees

Increased from $29 million in Q1 2025 to $32.757 million in Q2 2025 " "

Insurance Service Fees experienced further organic growth in Q2 2025, expanding on the upward trend observed after the division’s recovery from a prior sale. The continued improvement reflects enhanced operational capabilities and a more robust service offering that began its positive trajectory in previous periods.

Non-Insurance Businesses

Nearly unchanged (from $129 million in Q1 2025 to $128.839 million in Q2 2025 " " )

Non-Insurance Businesses remained stable as the gains from aviation-related and textile segments, which offset declines in promotional merchandise observed in earlier periods, continued to deliver consistent revenue. This stability builds on Q1 2025 dynamics, where balanced segment contributions helped maintain overall diversification in revenue streams.

Growth Environment

Q2 2025

no prior guidance

Adjusted growth expectations to 8–12% (previously stated as 10–15%) "

no prior guidance

Return on Equity (ROE)

Q2 2025

no prior guidance

Confidence in generating high teens to low twenties returns on equity "

no prior guidance

Pricing and Margins

Q2 2025

no prior guidance

Rate increases positioning well for present and future with potential for further margin improvement "

no prior guidance

Workers' Compensation

Q2 2025

no prior guidance

8.7% rate increase effective September 1 approved "

no prior guidance

Effective Tax Rate

FY 2025

23% plus or minus "

no current guidance

no current guidance

Expense Ratio

FY 2025

Comfortably below 30% " "

no current guidance

no current guidance

Investment Fund Income

FY 2025

Lower end of quarterly range of $10M to $20M "

no current guidance

no current guidance

Underwriting & Pricing Discipline

Previously discussed consistently across Q1 " " " , Q4 " and Q3 " " " " with a focus on rate adequacy, disciplined underwriting choices, and selective pricing in both casualty and property lines.

Q2 2025 emphasized strong underwriting performance, a disciplined pricing approach across product lines, and noted competitive market challenges. " " " "

Consistent focus; the company continues its disciplined approach while subtly highlighting increased market competition.

Capital Management

Addressed in Q4 " " and Q3 " with discussion on balancing growth with risk‐adjusted returns and returning capital via dividends and repurchases; not mentioned in Q1.

Q2 2025 detailed robust capital management with significant dividends, growth in book value, and a deliberate choice to forego share buybacks. " "

Increased clarity; while omitted in Q1, current commentary reinforces strong capital surplus and deliberate shareholder returns.

Growth Outlook

Q1 " " " " " " " and Q4 " " " as well as Q3 " " " highlighted robust growth targets (often in double digits), record premium achievements, and optimism in multiple segments.

Q2 2025 revised the outlook downward from earlier estimates (from 10–15% to 8–12%) due to challenges in the property pricing environment. "

Downward revision; caution has increased due to market challenges, tempering earlier aggressive growth targets.

Reinsurance and Risk Management

Previously, Q1 " " " " " " , Q4 " " " and Q3 " " " detailed a disciplined approach, selective treaty renewals, and flexibility in reinsurance purchasing, with strong performance in casualty and property segments.

Q2 2025 reiterated a cautious stance with emphasis on competitive property reinsurance, concerns in casualty reinsurance discipline, and active portfolio positioning. " " " " "

Steady but slightly more cautious; consistent discipline remains with heightened awareness of market competitiveness in reinsurance.

Macro Headwinds & Tariff Uncertainty

Q1 discussed significant volatility and tariff concerns impacting shorter-tail lines. " " " Q4 and Q3 did not mention tariffs.

Q2 2025 revisited macro headwinds, emphasizing risks such as labor market pressures, deficits, and explicit concerns about tariff timing and implications. " " "

New emphasis and heightened concern; while not discussed in Q3/Q4, recent periods have reintroduced macro uncertainties and tariff issues.

Business Mix Diversification

Discussed in Q1 " " " , Q4 " " " " " and Q3 " " " as a key factor impacting underlying loss ratios and expense ratios across diverse product lines and geographic markets.

Q2 2025 mentioned decoupling of product lines as a strength that allows the company to navigate different cycles effectively. " "

Consistently emphasized; the diversified business mix continues to be viewed as a strategic advantage.

Social Inflation and Bodily Injury Claims

Q1 " , Q4 " " " and Q3 " " " " extensively discussed social inflation driving inflated jury awards and its impact on casualty lines, especially in physical injury claims.

Q2 2025 noted social inflation as a significant factor influencing full casualty lines, with mention of plaintiff attorney behavior; bodily injury claims were not separately detailed. " " "

Persistent challenge; social inflation remains a major concern with consistent focus, though nuances in bodily injury commentary vary slightly.

International Operations

Q1 briefly mentioned the potential for global partnerships via Mitsui Sumitomo " , and Q4 detailed international markets (Asia, Latin America, U.K., Europe) as high-margin regions " ; Q3 did not offer specifics.

Q2 2025 did not provide specific information on international operations. "

Lower emphasis; international operations have received less focus in the current period compared to previous detailed discussions.

Reserve Adequacy Concerns

Q1 " " " , Q4 " " " and Q3 " provided detailed reviews of reserve movements with generally reassuring commentary despite minor fluctuations.

Q2 2025 noted that there was nothing particularly noteworthy, with only minor movements observed. "

Stable and reassuring; the tone remains confident about reserves, with granular reviews confirming adequacy.

Expense Ratio Pressure

Q1 " " " , Q4 " " " and Q3 " " " reported stable, low expense ratios (around 27–28.5%) with modest improvements and minor pressures offset by growth and investment in technology.

Q2 2025 reported a flat overall expense ratio at 28.5%, supported by record premium growth. "

Consistent management; the expense ratio remains tightly controlled with effective operational discipline across periods.

Exposure to Catastrophic Losses

Q1 " " " , Q4 " " " and Q3 " " " " described varying levels of catastrophic losses from events like California wildfires and hurricanes, always noting measured exposure relative to business growth.

Q2 2025 reported $99 million in catastrophic losses with an unchanged impact on the combined ratio, noting growth in the property book as a factor. "

Slight increase yet well-managed; while dollar losses have grown modestly, the impact on ratios remains contained.

Specialized Underwriting Focus

Q1 " " , Q4 " " " " and Q3 " " " stressed specialized underwriting focusing on high-hazard, niche risks and selective growth opportunities, with tailored approaches across lines.

Q2 2025 reaffirmed specialized underwriting with emphasis on decoupling of product cycles, selective property engagement, and targeting higher hazard opportunities. " " " " " "

Ongoing strategic focus; the commitment to specialized underwriting remains robust, with continued focus on high-quality, high-margin risks.

Excess and Surplus (E&S) Market Opportunities

Q1 " , Q4 " " " " and Q3 " " " highlighted robust flow and growth opportunities in E&S, especially around liability lines and non-admitted markets.

Q2 2025 did not explicitly mention E&S market opportunities.

Reduced emphasis in current period; while previously a strong focus, E&S wasn’t explicitly cited in Q2 suggesting a possible temporary shift in focus.

Sustainability of Loss Ratio Improvements

Q1 " , Q4 " and Q3 " " expressed cautious optimism supported by increased rate achievements and disciplined underwriting, while acknowledging uncertainties for longer-tail lines.

Q2 2025 maintained cautious optimism with confidence that improvements can continue, but noted the need for ongoing vigilance. "

Consistently cautious optimism; the outlook remains positive yet measured across all periods.