Q1 2024 Travelers Companies Inc Earnings Call

April 17, 2024

Unknown Executive: Good morning, ladies and gentlemen. Welcome to the first quarterly results teleconference for travelers. We ask that you hold all questions until the completion of the formal remarks, at which time you will be given instructions for the question and answer session. As a reminder, this conference is being recorded on April 17, 2024. At this time, I would like to turn the conference over to Ms. Abbe Goldstein, Senior Vice President of Investor Relations. Ms. Goldstein, you may begin.

Good morning, ladies and gentlemen, welcome to the first quarter results teleconference for travelers, we ask that you hold all questions until the completion of formal remarks at which time, you'll be given instructions for the question and answer session.

As a reminder, this conference is being recorded on April 17 2024.

At this time I would like to turn the conference over and as Abbe Goldstein Senior Vice President of Investor Relations with Golf Feeney you may begin.

Abbe F. Goldstein: Thank you good morning, and welcome to travelers discussion of our first quarter 'twenty 'twenty four results we were.

Abbe Goldstein: Thank you. Good morning, and welcome to Travelers' discussion of our Q1 2024 results. We released our press release, financial supplement, and webcast presentation earlier this morning. All of these materials can be found on our website at travelers.com under the Investor section. Speaking today will be Alan Schnitzer, Chairman and CEO, Dan Fry, Chief Financial Officer, and our three segment presidents, Greg Toczydlowski of Business Insurance, Jeff Klenk of Bond and Specialty Insurance, and Michael Klein of Personal Insurance. They will discuss the financial results of our business and the current market environment. They will refer to the webcast presentation as they go through prepared remarks, and then we will take your questions. Before I turn the call over to Alan, I'd like to draw your attention to the explanatory note included at the end of the webcast presentation. Our presentation today includes forward-looking statements.

Abbe F. Goldstein: Good morning and welcome to Travelers' discussion of our first quarter 2024 results. We released our press release, financial supplement, and webcast presentation earlier this morning. All of these materials can be found on our website at Travelers.com under the Investors section.

Abbe F. Goldstein: Released our press release financial supplement and webcast presentation earlier. This morning, all of these materials can be found on our website at travelers dot com under the investors section.

Abbe F. Goldstein: Speaking today will be Alan Schnitzer, Chairman and CEO, Dan Frey, Chief Financial Officer, and our three segment presidents, Greg Toslowski of Business Insurance, Jeff Klenk of Bond and Specialty Insurance, and Michael Klein of Personal Insurance. They will discuss the financial results of our business and the current market environment. They will refer to the webcast presentation as they go through their prepared remarks, and then we will take your questions. Before I turn the call over to Alan, I'd like to draw your attention to the explanatory note included at the end of the webcast presentation.

Abbe F. Goldstein: Speaking today will be Alan Schnitzer, Chairman and CEO, Dan Fry, Chief Financial Officer, and our three segment Presidents, Greg Tis Lasky of business insurance claim.

Plank of bond and specialty insurance and Michael Klein of personal insurance, they will discuss the financial results of our business and the current market environment. They will refer to the webcast presentation as they go through prepared remarks, and then we will take your questions.

Daniel Stephen Frey: Before I turn the call over to Alan I'd like to draw your attention to the explanatory note included at the end of the webcast presentation. Our presentation. Today includes forward looking statements. The company cautions investors that any forward looking statement involves risks and uncertainties and is not a guarantee of future performance actual results may differ materially.

Abbe F. Goldstein: Our presentation today includes forward-looking statements. The company cautions investors that any forward-looking statement involves risks and uncertainties and is not a guarantee of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements due to a variety of factors. These factors are described under forward-looking statements in our earnings press release and in our most recent 10-Q and 10-K filed with the SEC. We do not undertake any obligation to update forward-looking statements.

Abbe Goldstein: The company cautions investors that any forward-looking statement involves risks and uncertainties and is not a guarantee of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements due to a variety of factors. These factors are described under forward-looking statements in our earnings press release and in our most recent 10-Q and 10-K filed with the SEC. We do not undertake any obligation to update forward-looking statements. Also, in our remarks or responses to questions, we may mention some non-GAAP financial measures. Reconciliations are included in our recent earnings press release, financial supplement, and other materials available in the Investors section on our website. Now I'd like to turn the call over to Alan Schnitzer.

The company cautions investors that any forward-looking statement involves risks and uncertainties and is not a guarantee of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements due to a variety of factors. These factors are described under forward-looking statements in our earnings press release and in our most recent 10-Q and 10-K filed with the SEC. We do not undertake any obligation to update forward-looking statements. Also, in our remarks or responses to questions, we may mention some non-GAAP financial measures. Reconciliations are included in our recent earnings press release, financial supplement, and other materials available in the Investors section on our website. Now I'd like to turn the call over to Alan Schnitzer.

Alan David Schnitzer: From those expressed or implied in the forward looking statements due to a variety of factors. These factors are described under forward looking statements in our earnings press release and in our most recent 10-Q and 10-K filed with the SEC, we do not undertake any obligation to update forward looking statements.

Abbe F. Goldstein: Also, in our remarks or responses to questions, we may mention some non-GAAP financial measures. Reconciliations are included in our recent earnings press release, financial supplement, and other materials available in the investor section on our website.

In our remarks or responses to questions. We may mention some non-GAAP financial measures. Reconciliations are included in our recent earnings press release financial supplement and other materials available in the investors section on our website and now I'd like to turn the call over to Alan Schnitzer.

Alan David Schnitzer: Thank you, Abbe. Good morning, everyone, and thank you for joining us today.

Alan Schnitzer: Thank you, Abby. Good morning, everyone, and thank you for joining us today. We are very pleased to report excellent top- and bottom-line results for the quarter. Core income was $1.1 billion or $4.69 per diluted share, generating core return on equity of 15.4%. After-tax core income increased by $126 million, despite a $211 million one-time tax benefit in the prior year quarter. On a pre-tax basis, this year's core income was $413 million, or 45% higher year over year. Strong core income was driven by record net earned premiums of $10.1 billion, up 14% compared to the prior year period, and an excellent combined ratio of 93.9%.

Alan David Schnitzer: Thank you Abby good morning, everyone and thank you for joining us today.

Alan David Schnitzer: We are very pleased to report excellent top and bottom line results for the quarter. Core income was $1.1 billion, or $4.69 per diluted share, generating core return on equity of 15.4%. After-tax core income increased by $126 million, despite a $211 million one-time tax benefit in the prior year quarter. On a pre-tax basis, this year's core income was $413 million, or 45% higher year-over-year. Strong core income was driven by record net earned premiums of $10.1 billion, up 14% compared to the prior year period, and an excellent combined ratio of 93.9%. The combined ratio improved 1.5 points, notwithstanding elevated catastrophe activity, primarily in the Central and Eastern regions of the United States.

Alan David Schnitzer: Very pleased to report excellent top and bottom line results for the quarter.

Alan David Schnitzer: Core income was $1 $1 billion or $4.69 per diluted share generating core return on equity of 15, 4%.

Alan David Schnitzer: After tax core income increased by $126 million, despite the $211 million, one time tax benefit in the prior year quarter.

Alan David Schnitzer: On a pretax basis. This years core income was 413, million% to 45% higher year over year.

Alan David Schnitzer: Strong core income was driven by record net earned premiums of $10 $1 billion up 14% compared to the prior year period.

Alan David Schnitzer: And an excellent combined ratio of 93, 9%.

Alan Schnitzer: The combined ratio improved one and a half points, notwithstanding elevated catastrophe activity, primarily in the central and eastern regions of the United States. The underlying combined ratio improved 2.9 points to an outstanding 87.7%, driven by strong underlying results in each of our three segments. Looking at the two commercial segments together, the aggregate BI/BSI underlying combined ratio was an excellent 88.8% for the quarter. The underlying combined ratio in personal insurance was 86.1%, a 6.8 improvement over the prior year. Turning to investments, our high-quality investment portfolio continued to perform well, generating after-tax net investment income of $698 million for the quarter, driven by strong and reliable returns from our growing fixed income portfolio and higher returns from our non-fixed income portfolio.

The combined ratio improved one and a half points, notwithstanding elevated catastrophe activity, primarily in the central and eastern regions of the United States. The underlying combined ratio improved 2.9 points to an outstanding 87.7%, driven by strong underlying results in each of our three segments. Looking at the two commercial segments together, the aggregate BI/BSI underlying combined ratio was an excellent 88.8% for the quarter. The underlying combined ratio in personal insurance was 86.1%, a 6.8 improvement over the prior year. Turning to investments, our high-quality investment portfolio continued to perform well, generating after-tax net investment income of $698 million for the quarter, driven by strong and reliable returns from our growing fixed income portfolio and higher returns from our non-fixed income portfolio.

Alan David Schnitzer: The combined ratio improved one and a half points notwithstanding elevated catastrophe activity, primarily in the central and eastern regions of the United States.

Alan David Schnitzer: The underlying combined ratio improved 2.9 points to an outstanding 87.7%, driven by strong underlying results in each of our three segments. Looking at the two commercial segments together, the aggregate BI-BSI underlying combined ratio was an excellent 88.8% for the quarter. The underlying combined ratio in personal insurance was 86.1%.

The underlying combined ratio improved two nine points to an outstanding 87, 7% driven.

Alan David Schnitzer: Driven by strong underlying results in each of our three segments.

Alan David Schnitzer: Looking at the two commercial segments together.

Alan David Schnitzer: Aggregate B I B S. I underlying combined ratio was an excellent 88, 8% for the quarter.

Alan David Schnitzer: The underlying combined ratio in personal insurance was 86, 1%.

Alan David Schnitzer: A 6.8 point improvement over the prior year. Turning to investments, our high-quality investment portfolio continued to perform well, generating after-tax net investment income of $698 million for the quarter. SEP> Driven by strong and reliable returns from our growing fixed income portfolio and higher returns from our non-fixed income portfolio, our underwriting and investment results, together with our strong balance sheet, enabled us to grow adjusted book value per share. After returning $620 million of excess capital to shareholders, due dividends and share repurchases, and Making Important Investments in Our Business.

Alan David Schnitzer: Six eight point improvement over the prior year.

Alan David Schnitzer: Turning to investments our high quality investment portfolio continued to perform well generating after tax net investment income of $698 million for the quarter.

Alan David Schnitzer: Even by strong and reliable returns from our growing fixed income portfolio and higher returns from our non fixed income portfolio.

Alan David Schnitzer: Our underwriting and investment results together with our strong balance sheet enabled us to grow adjusted book value per share after returning $620 million of excess capital to shareholders through dividends and share repurchases.

Alan Schnitzer: Our underwriting and investment results, together with our strong balance sheet, enabled us to grow adjusted book value per share after returning $620 million of excess capital to shareholders through dividends and share repurchases, and making important investments in our business as we notched another quarter of successful execution on a number of important strategic initiatives. In recognition of our strong financial position and confidence in the outlook for our business, I'm pleased to share that our board of directors declared a 5% increase in our quarterly cash dividend to $1.05 per share, marking 20 consecutive years of dividend increases with a compounding annual growth rate of 8% over that period. Turning to the top line, we grew net written premiums by 8% to $10.2 billion in the quarter.

Our underwriting and investment results, together with our strong balance sheet, enabled us to grow adjusted book value per share after returning $620 million of excess capital to shareholders through dividends and share repurchases, and making important investments in our business as we notched another quarter of successful execution on a number of important strategic initiatives. In recognition of our strong financial position and confidence in the outlook for our business, I'm pleased to share that our board of directors declared a 5% increase in our quarterly cash dividend to $1.05 per share, marking 20 consecutive years of dividend increases with a compounding annual growth rate of 8% over that period. Turning to the top line, we grew net written premiums by 8% to $10.2 billion in the quarter.

Alan David Schnitzer: And making important investments in our business.

Alan David Schnitzer: Next, we notched another quarter of successful execution on a number of important strategic initiatives. In recognition of our strong financial position and confidence in the outlook for our business, I'm pleased to share that our Board of Directors declared a 5% increase in our quarterly cash dividend to $1.05 per share, marking 20 consecutive years of dividend increases with a compound annual growth rate of 8% over that period.

Alan David Schnitzer: As we notched another quarter of successful execution on a number of important strategic initiatives.

Alan David Schnitzer: In recognition of our strong financial position and confidence in the outlook for our business I am pleased to share that our board of directors declared a 5% increase in our quarterly cash dividend to $1.05 per share.

Alan David Schnitzer: Marking 20 consecutive years of dividend increases with a compound annual growth rate of 8% over that period.

Alan David Schnitzer: Turning to the top line, we grew net written premiums by 8% to $10.2 billion in the quarter. All three segments and excellent execution by our colleagues in the field contributed to our top line success. In business insurance, we grew net written premiums by 9% to $5.6 billion. Renewal premium change remained very strong at 10.6%, while retention remained high.

Alan David Schnitzer: Turning to the topline we grew net written premiums by 8% to $10 $2 billion in the quarter.

Alan Schnitzer: All three segments and excellent execution by our colleagues in the field contributed to our top-line success. In Business Insurance, we grew net written premiums by 9% to $5.6 billion. Renewal premium change remained very strong at 10.6%, while retention remained high. The combination of strong pricing and retention reflects deliberate execution on our part and a marketplace that continues to be generally disciplined in the face of persistent headwinds. The segment generated a very strong $691 million of new business in the quarter, a reflection of the fact that our customers and distribution partners value the products and services that we offer and the experiences that we provide. In Bond and Specialty Insurance, we grew net written premiums by 6% to $943 million.

All three segments and excellent execution by our colleagues in the field contributed to our top-line success. In Business Insurance, we grew net written premiums by 9% to $5.6 billion. Renewal premium change remained very strong at 10.6%, while retention remained high. The combination of strong pricing and retention reflects deliberate execution on our part and a marketplace that continues to be generally disciplined in the face of persistent headwinds. The segment generated a very strong $691 million of new business in the quarter, a reflection of the fact that our customers and distribution partners value the products and services that we offer and the experiences that we provide. In Bond and Specialty Insurance, we grew net written premiums by 6% to $943 million.

All three segments and excellent execution by our colleagues in the field contributed to our top line success.

Alan David Schnitzer: In business insurance, we grew net written premiums by 9% to $5 $6 billion.

Alan David Schnitzer: Renewal premium change remained very strong at 10, 6% while retention remained high.

Alan David Schnitzer: The combination of strong pricing and retention reflects deliberate execution on our part and a marketplace that continues to be generally disciplined in the face of persistent headwinds. The segment generated a very strong $691 million of new business in the quarter. This is a reflection of the fact that our customers and distribution partners value the products and services that we offer and the experiences that we provide. In bond and specialty insurance, we grew net written premiums by 6% to $943 million.

The combination of strong pricing and retention reflects deliberate execution on our part and a marketplace that continues to be generally discipline in the face of persistent headwinds.

Alan David Schnitzer: The segment generated a very strong $691 million of new business in the quarter.

Alan David Schnitzer: A reflection of the fact that our customers and distribution partners value the products and services that we offer and the experiences that we provide.

Alan David Schnitzer: In bond and specialty insurance, we grew net written premiums by 6% to $943 million.

Alan David Schnitzer: That was driven by strong retention of 90% and record new business in our high quality management liability business, along with excellent production in our market-leading surety business, where net written premiums are up 15%. Given the attractive returns, we are very pleased with the strong production results in both of our commercial business sectors. In personal insurance, strong pricing drove 9% growth in net written premium. The real premium change was 16.6% in our auto business and 13.4% in home.

Alan Schnitzer: That was driven by strong retention of 90% and record new business in our high-quality management liability business, along with excellent production in our market-leading surety business, where net written premiums were up 15%. Given the attractive returns, we are very pleased with the strong production results in both of our commercial business segments. In personal insurance, continued strong pricing drove 9% growth in net written premiums. Renewal premium change was 16.6% in our auto business and 13.4% in home. You'll hear more shortly from Greg, Jeff, and Michael about our segment results. Before I turn the call over to Dan, I'll share that more than 100 of my Travelers colleagues and I just returned from our Travelers Leadership Conference, TLC, as we call it.

That was driven by strong retention of 90% and record new business in our high-quality management liability business, along with excellent production in our market-leading surety business, where net written premiums were up 15%. Given the attractive returns, we are very pleased with the strong production results in both of our commercial business segments. In personal insurance, continued strong pricing drove 9% growth in net written premiums. Renewal premium change was 16.6% in our auto business and 13.4% in home. You'll hear more shortly from Greg, Jeff, and Michael about our segment results. Before I turn the call over to Dan, I'll share that more than 100 of my Travelers colleagues and I just returned from our Travelers Leadership Conference, TLC, as we call it.

Alan David Schnitzer: That was driven by strong retention of 90% and record new business in our high quality management liability business.

Alan David Schnitzer: Along with excellent production and our market, leading surety business, where net written premiums were up 15%.

Alan David Schnitzer: Given the attractive returns we are very pleased with the strong production results in both of our commercial business segments.

Alan David Schnitzer: In personal insurance continued strong pricing drove 9% growth in net written premiums.

Alan David Schnitzer: No premium change was 16, 6% in our auto business and 13, 4% in home.

Alan David Schnitzer: You'll hear more shortly from Greg, Jeff, and Michael about our segment results. Before I turn the call over to Dan, I'll share that more than 100 of my Travelers colleagues and I just returned from our Travelers Leadership Conference, or TLC, as we call it.

Speaker Change: You'll hear more shortly from Greg, Jeff and Michael about our segment results.

Speaker Change: Before I turn the call over to Dan I'll share that more than 100 of my travelers colleagues and I just returned from our travelers leadership conference.

Speaker Change: You'll see as we call it.

Alan David Schnitzer: It's a multi-day event that we host every year for the principals and senior leaders of our most significant distribution partners. Most of our guests have been coming for years, some for decades. We're also pleased every year to host a number of first-timers. The represented firms are industry leaders and collectively account for more than half of our premium volume. We all returned home with the continued confidence that our relationships with these business partners and their firms are as strong as ever.

Alan Schnitzer: It's a multi-day event that we host every year for the principals and senior leaders of our most significant distribution partners. Most of our guests have been coming for years, some for decades. We're also pleased every year to host a number of first-timers. The represented firms are industry leaders and collectively account for more than half of our premium volume. We all returned home with the continued confidence that our relationships with these business partners and their firms are as strong as ever. We've confirmed that they remain very supportive of the strategic initiatives that we have underway, and we took away valuable feedback on how we can accomplish even more together. The independent agent and broker channel remains a robust and growing part of our industry. At Travelers, we proudly partner with more than 15,000 agent broker firms across their 35,000 locations.

It's a multi-day event that we host every year for the principals and senior leaders of our most significant distribution partners. Most of our guests have been coming for years, some for decades. We're also pleased every year to host a number of first-timers. The represented firms are industry leaders and collectively account for more than half of our premium volume. We all returned home with the continued confidence that our relationships with these business partners and their firms are as strong as ever. We've confirmed that they remain very supportive of the strategic initiatives that we have underway, and we took away valuable feedback on how we can accomplish even more together. The independent agent and broker channel remains a robust and growing part of our industry. At Travelers, we proudly partner with more than 15,000 agent broker firms across their 35,000 locations.

Speaker Change: It's a multi day event that we host every year for the principals and senior leaders of our most significant distribution partners.

Speaker Change: Most of our guests had been coming for years some for decades.

Daniel Stephen Frey: So pleased every year to host a number of first timers.

Daniel Stephen Frey: It represented firms are industry leaders and collectively account for more than half of our premium volume.

Daniel Stephen Frey: We all returned home with the continued confidence that our relationships with these business partners and their firms are strong as ever.

Alan David Schnitzer: We've confirmed that they remain very supportive of the strategic initiatives that we have underway, and we took away valuable feedback on how we can accomplish even more together. The Independent Agent and Broker Channel remains a robust and growing part of our industry. At Travelers, we proudly partner with more than 15,000 agent-broker firms across their 35,000 locations.

Daniel Stephen Frey: We've confirmed that they remain very supportive of the strategic initiatives that we have underway and we took away valuable feedback on how we can accomplish even more together.

Daniel Stephen Frey: Independent agent and broker channel remains a robust and growing part of our industry.

Daniel Stephen Frey: A travelers we proudly partnered with more than 15000 agent broker firms across their 35000 locations.

Alan David Schnitzer: We're a top three market for the majority of these firms. That's a critical advantage because distributors place a disproportionate amount of their business with their top few carriers. We don't take these relationships for granted.

Alan Schnitzer: We're a top-three market for the majority of these firms. That's a critical advantage because distributors place a disproportionate amount of their business with their top few carriers. We don't take these relationships for granted. As we've shared before, the vision for our innovation agenda includes optimizing our value proposition as an indispensable partner to our agents and brokers. We continue to make significant investments to ensure that we realize that vision by offering best-in-class products, services, and experiences. Case in point, in our Bond and Specialty business, we recently conducted a blind survey of agents and brokers, ours and others, to determine how we ranked on the 10 attributes they identified as most likely to impact their placement decisions. Among our key competitors, we ranked first or tied for first in each of the 10 categories.

We're a top-three market for the majority of these firms. That's a critical advantage because distributors place a disproportionate amount of their business with their top few carriers. We don't take these relationships for granted. As we've shared before, the vision for our innovation agenda includes optimizing our value proposition as an indispensable partner to our agents and brokers. We continue to make significant investments to ensure that we realize that vision by offering best-in-class products, services, and experiences. Case in point, in our Bond and Specialty business, we recently conducted a blind survey of agents and brokers, ours and others, to determine how we ranked on the 10 attributes they identified as most likely to impact their placement decisions. Among our key competitors, we ranked first or tied for first in each of the 10 categories.

Daniel Stephen Frey: Top three market for the majority of these firms.

Daniel Stephen Frey: That's a critical advantage because distributors place a disproportionate amount of their business with their top few carriers.

Speaker Change: We don't take these relationships for granted.

Alan David Schnitzer: As we've shared before, the vision for our innovation agenda includes optimizing our value proposition as an indispensable partner to our agents and brokers. We continue to make significant investments to ensure that we realize that vision by offering best-in-class products, services, and experiences. Case in point, in our bond and specialty business, we recently conducted a blind survey of agents and brokers, ours and others, to determine how we ranked on the 10 attributes they identified as most likely to impact their placement decision.

Speaker Change: As we've shared before the vision for innovation agenda includes optimizing our value proposition as an ended the indispensable partner to our agents and brokers.

Speaker Change: We continue to make significant investments to ensure that we realize that vision by offering best in class products services and experiences.

Case in point in our bond and specialty business. We recently conducted a blind survey of agents and brokers ours and others to determine how we ranked on the 10th attributes they identified as most likely to impact their placement decisions.

Alan David Schnitzer: Among our key competitors, we ranked first or tied for first in each of the 10 categories. We hear over and over again that Travelers' deep specialization across a wide range of modernized, simplified, and tailored products, along with a broad and consistent appetite, are major differentiators for us in the market.

Speaker Change: Among our key competitors, we ranked first or tied for first in each of the 10 categories.

Speaker Change: We hear over and over again that travelers deep specialization across a wide range of modernized simplified and tailored products.

Alan Schnitzer: We hear over and over again that Travelers' deep specialization across a wide range of modernized, simplified, and tailored products, along with a broad and consistent appetite, are major differentiators for us in the market. For example, in business insurance, we offer a wide variety of coverages and product solutions, admitted and E&S, across industries representing more than 85% of domestic GDP. Everything from a BOP product for a local florist, to a package solution for a main street middle market account, to loss-sensitive workers' compensation for a large national account. Across our three business segments, our distribution partners generally don't need to go to multiple carriers to satisfy a customer's insurance needs. And the more lines per account we write, the higher the lifetime value of the customer.

We hear over and over again that Travelers' deep specialization across a wide range of modernized, simplified, and tailored products, along with a broad and consistent appetite, are major differentiators for us in the market. For example, in business insurance, we offer a wide variety of coverages and product solutions, admitted and E&S, across industries representing more than 85% of domestic GDP. Everything from a BOP product for a local florist, to a package solution for a main street middle market account, to loss-sensitive workers' compensation for a large national account. Across our three business segments, our distribution partners generally don't need to go to multiple carriers to satisfy a customer's insurance needs. And the more lines per account we write, the higher the lifetime value of the customer.

Speaker Change: Along with a broadened consistent appetite are major differentiators for us in the market.

Speaker Change: For example in business insurance, we offer a wide variety of coverages and product solutions.

Alan David Schnitzer: For example, in business insurance, we offer a wide variety of coverages and product solutions, admitted and ENS across industries representing more than 85% of domestic GDP. Everything from a bought product for a local florist to a package solution for a main street middle market account to law-sensitive workers compensation for a large national account. Across our three business segments, our distribution partners generally don't need to go to multiple carriers to satisfy customers' insurance needs.

Speaker Change: Admitted Andean S across industries, representing more than 85% of domestic GDP.

Speaker Change: Everything from our BOP product for local florist to a package solution for main street middle market account.

The loss sensitive workers' compensation for a large national account.

Speaker Change: Across our three business segments, our distribution partners generally don't need to go to multiple carriers to satisfy customers' insurance needs.

Alan David Schnitzer: And the more lines per account we write, the higher the lifetime value of the customer. The primary focus of ours has been digitizing the value chain, in part to create value and provide great experiences for agents and brokers, and in part to create efficiencies for them and for us. I'll share a few examples.

Speaker Change: And the more lines per account, we write are higher the lifetime value of the customer.

Speaker Change: The primary focus of ours has been digitizing the value chain.

Alan Schnitzer: A primary focus of ours has been digitizing the value chain, in part to create value and provide great experiences for our agents and brokers, and in part to create efficiencies for them and for us. Share a few examples. In business insurance, we believe we were the first to offer agents and brokers a comprehensive portfolio loss data exchange, which allows us to digitally transfer to a small, commercial or middle-market distributor, loss information on their entire book with us. This capability enables our distribution partners to efficiently develop important insights into their books of business and supports their marketing efforts. In our middle market business, we believe we were the first carrier to offer multi-line digital submission capabilities.

A primary focus of ours has been digitizing the value chain, in part to create value and provide great experiences for our agents and brokers, and in part to create efficiencies for them and for us. Share a few examples. In business insurance, we believe we were the first to offer agents and brokers a comprehensive portfolio loss data exchange, which allows us to digitally transfer to a small, commercial or middle-market distributor, loss information on their entire book with us. This capability enables our distribution partners to efficiently develop important insights into their books of business and supports their marketing efforts. In our middle market business, we believe we were the first carrier to offer multi-line digital submission capabilities.

In part to create value and provide great experiences for agents and brokers.

Speaker Change: And in part to create efficiencies for them and for us share a few examples.

Speaker Change: In business insurance, we believe we were the first to offer agents and brokers are comprehensive portfolio lost data exchange.

Alan David Schnitzer: In business insurance, we believe we were the first to offer agents and brokers a comprehensive portfolio loss data exchange, which allows us to digitally transfer to a small commercial or middle market distributor loss information on their entire book with us. This capability enables our distribution Partners to efficiently develop important insights into their books of business and supports their marketing efforts. In our middle market business, we believe we were the first carrier to offer multiline digital submission capability. In our small commercial business, agents can transact with us through APIs or through our new quote issue platform Travis, which has reduced quoting time by 25% for our leading bot product.

Speaker Change: Which allows us to digitally transfer to a small commercial or middle market distributor, Washington for me on their entire book with Us.

This capability enables our distribution partners to efficiently develop important insights into their books of business and supports their marketing efforts.

Speaker Change: In our middle market business. We believe we were the first carrier to offer multiline digital submission capabilities.

Speaker Change: Yeah.

Alan Schnitzer: In our small commercial business, agents can transact with us through APIs or through our new quote and issue platform, Travis, which has reduced quoting time by 25% for our leading BOP product. Across business insurance, nearly all of our largest distributors are currently leveraging one or more of our digital capabilities. In personal insurance, earlier this year, we added our proprietary aerial imagery viewer to our agent portal. This advanced capability integrates a high-resolution, over time photo series of a home into agents' quoting workflow. This gives our partners a bird's-eye view, helping them to better understand a customer's or prospect's insurance needs and how they may have evolved. We bring our franchise value directly to agents and brokers through distribution, underwriting, sales, and claim professionals in more than 80 local offices.

In our small commercial business, agents can transact with us through APIs or through our new quote and issue platform, Travis, which has reduced quoting time by 25% for our leading BOP product. Across business insurance, nearly all of our largest distributors are currently leveraging one or more of our digital capabilities. In personal insurance, earlier this year, we added our proprietary aerial imagery viewer to our agent portal. This advanced capability integrates a high-resolution, over time photo series of a home into agents' quoting workflow. This gives our partners a bird's-eye view, helping them to better understand a customer's or prospect's insurance needs and how they may have evolved. We bring our franchise value directly to agents and brokers through distribution, underwriting, sales, and claim professionals in more than 80 local offices.

Speaker Change: In our small commercial business agents can transact with us through a P eyes or through our new quote and issue platform Travis.

Speaker Change: As was reduced quoting time by 25% for leading BOP product.

Alan David Schnitzer: Across business insurance, nearly all of our largest distributors are currently leveraging one or more of our digital capabilities. In personal insurance, earlier this year, we added our proprietary aerial image reviewer to our agent portal. This advanced capability integrates a high-resolution, over-time photo series of a home into the AgentsQuoting workflow.

Speaker Change: Cross business insurance nearly all of our largest distributors are currently leveraging one or more of our digital capabilities.

Speaker Change: In personal insurance earlier this year, we added our proprietary aerial imagery viewer to our agent portal.

Speaker Change: This advanced capability integrates a high resolution overtime photo series of a home into agents quoting workflow.

Alan David Schnitzer: This gives our partners a bird's eye view, helping them to better understand a customer's or prospect's insurance needs and how they may have evolved. We bring our franchise value directly to agents and brokers through distribution, underwriting, sales, and claim professionals in more than 80 local offices. Through our expansive and empowered field organization, we foster deep relationships with our partners and are well positioned to deliver the strength and expertise of travelers at the local level. We're also investing in our distribution partners' workforce by providing education and training programs to their up-and-coming producers. Our flagship Travelers Agency Leadership Program and Agency Producer School provide in-person training to invited participants.

Speaker Change: This gives our partners a bird's eye view, helping them to better understand our customers or prospects insurance needs and how they may have evolved.

Speaker Change: We bring our franchise value directly to agents and brokers through distribution underwriting sales and claim professionals and more than 80 local offices.

Speaker Change: Through our expansive and empowered field organization, we foster deep relationships with our partners and are well positioned to deliver the strength and expertise of travelers at the local level.

Alan Schnitzer: Through our expansive and empowered field organization, we foster deep relationships with our partners and are well-positioned to deliver the strength and expertise of Travelers at the local level. We're also investing in our distribution partners' workforces by providing education and training programs to their up-and-coming producers. Our flagship Travelers Agency Leadership Program and Agency Producer School provide in-person training to invited participants. We also offer larger virtual programs that have trained thousands of producers, including more than three thousand just last year. We remain deeply committed to our vision of being the undeniable choice for the customer and an indispensable partner to our agents and brokers. Our pole position with leading distributors is a significant competitive advantage and one that's hard to replicate.

Through our expansive and empowered field organization, we foster deep relationships with our partners and are well-positioned to deliver the strength and expertise of Travelers at the local level. We're also investing in our distribution partners' workforces by providing education and training programs to their up-and-coming producers. Our flagship Travelers Agency Leadership Program and Agency Producer School provide in-person training to invited participants. We also offer larger virtual programs that have trained thousands of producers, including more than three thousand just last year. We remain deeply committed to our vision of being the undeniable choice for the customer and an indispensable partner to our agents and brokers. Our pole position with leading distributors is a significant competitive advantage and one that's hard to replicate.

Speaker Change: We're also investing in our distribution partners workforces by providing education and training programs to their up and coming producers.

Speaker Change: Our flagship travelers agency leadership program and agency producer school provide in person training to invited participants.

Alan David Schnitzer: We also offer larger, larger virtual programs that have trained thousands of producers, including more than 3,000 just last year. We remain deeply committed to our vision of being the undeniable choice for the customer and an indispensable partner to our agents and brokers. Our pole position with leading distributors is a significant competitive advantage and one that's hard to replicate.

We also offer larger larger virtual programs that are trained thousands of producers.

Speaker Change: Adding more than 3000, just last year.

Speaker Change: We remain deeply committed to our vision of being the undeniable choice for the customer and an indispensable partner to our agents and brokers.

Speaker Change: Our pole position with leading distributors as a significant competitive advantage and one that is hard to replicate.

Alan David Schnitzer: To sum it up, the year is off to a terrific start with strong profitability and production in all three sectors, as well as higher investment income. In short, we're firing on all cylinders. We also continue to invest in important strategic initiatives. We have demonstrated success in executing our innovation strategy, which has contributed to superior returns with industry-low volatility, growth in our premium base, and higher adjusted book value per share. With this momentum and the best talent in the industry, we remain well positioned for success this year and beyond. And with that, I'm pleased to turn the call over to Dan. Thank you, Alan.

Speaker Change: To sum it up the year is off to a terrific start with strong profitability and production in all three segments, but it was higher investment income.

Alan Schnitzer: To sum it up, the year is off to a terrific start, with strong profitability and production in all three segments, as well as higher investment income. In short, we're firing on all cylinders. We also continue to invest in important strategic initiatives. We have demonstrated success in executing our innovation strategy, which has contributed to superior returns with industry-low volatility, growth in our premium base, and higher adjusted book value per share. With this momentum and the best talent in the industry, we remain well-positioned for success this year and beyond. With that, I'm pleased to turn the call over to Dan.

To sum it up, the year is off to a terrific start, with strong profitability and production in all three segments, as well as higher investment income. In short, we're firing on all cylinders. We also continue to invest in important strategic initiatives. We have demonstrated success in executing our innovation strategy, which has contributed to superior returns with industry-low volatility, growth in our premium base, and higher adjusted book value per share. With this momentum and the best talent in the industry, we remain well-positioned for success this year and beyond. With that, I'm pleased to turn the call over to Dan.

Speaker Change: In short we're firing on all cylinders.

Speaker Change: We also continued to invest in important strategic initiatives.

Speaker Change: We have demonstrated success in executing our innovation strategy, which has contributed to superior returns with industry low volatility growth in our premium base and higher adjusted book value per share.

With this momentum and the best talent in the industry, we remain well positioned for success this year and beyond.

Speaker Change: With that I'm pleased to turn the call over to Dan.

Daniel Stephen Frey: Thank you Alan.

Dan Frey: Thank you, Alan. Core income for Q1 increased by 13% to $1.1 billion, and core return on equity was 15.4%. The growth in core income was driven by higher net investment income, and despite the one-time tax benefit in the prior year that Alan mentioned, higher underlying underwriting income, partially offset by a higher level of catastrophe losses. Our pre-tax underlying underwriting gain of $1.2 billion was up 50% from the prior year quarter, reflecting higher levels of earned premium and an underlying combined ratio that improved by 2.9 points to 87.7%. The underlying combined ratio was among our best ever and featured continued strong results in both Business Insurance, and Bond and Specialty, complemented by a strong result in Personal Insurance, reflecting another quarter of significant improvement.

Daniel Stephen Frey: Core income for the first quarter increased by 13% to $1.1 billion, and core return on equity was 15.4%. The growth in core income was driven by higher net investment income and despite the one-time tax benefit in the prior year that Alan mentioned. Higher Underlying Underwriting Income, partially offset by a higher level of catastrophe losses. Our pre-tax underlying underwriting gain of $1.2 billion was up 50% from the prior year quarter, reflecting higher levels of earned premium and an underlying combined ratio that improved by 2.9 points to 87.7%.

Daniel Stephen Frey: Core income for the first quarter increased by 13% to $1 $1 billion and core return on equity was 15, 4%.

Daniel Stephen Frey: The growth in core income was driven by higher net investment income and despite the onetime tax benefit in the prior year that Alan mentioned.

Daniel Stephen Frey: Higher underlying underwriting income.

Daniel Stephen Frey: Actually offset by a higher level of catastrophe losses.

Our pretax underlying underwriting gain of $1 $2 billion was up 50% from the prior year quarter, reflecting higher levels of earned premium and an underlying combined ratio improved by two nine points to 87, 7%.

The underlying combined ratio was among our best ever featured continued strong results in both business insurance and bond and specialty.

Daniel Stephen Frey: The underlying combined ratio was among our best ever, featuring continued strong results in both business insurance and bond and specialty, complemented by a strong result in personal insurance. Reflecting another quarter of significant improvement, we were pleased with the first quarter expense ratio of 28.7%, which was flat year over year despite the impact of Corvus, for which we had a full quarter of expenses but very little earned premium as there was no unearned premium carried in from the closing of the transaction on January 2nd. For the full year, we remain comfortable with an expense ratio expectation of 28 to 28.5%.

Daniel Stephen Frey: Complemented by a strong result in personal insurance, reflecting another quarter of significant improvement.

Daniel Stephen Frey: We were pleased with the first quarter expense ratio of 28, 7%.

Dan Frey: We were pleased with the Q1 expense ratio of 28.7%, which was flat year over year, despite the impact of Corvus, for which we had a full quarter of expenses but very little earned premium, as there was no unearned premium carried in from the closing of the transaction on 2 January 2024. For the full year, we remain comfortable with an expense ratio expectation of 28% to 28.5%. We reported net favorable prior year reserve development of $91 million pre-tax in the Q1. There was no net prior year reserve change in business insurance, as favorable development in workers' comp of nearly $100 million was largely offset by modest increases for liability coverages in recent accident years, along with modest charges in our runoff book.

We were pleased with the Q1 expense ratio of 28.7%, which was flat year over year, despite the impact of Corvus, for which we had a full quarter of expenses but very little earned premium, as there was no unearned premium carried in from the closing of the transaction on 2 January 2024. For the full year, we remain comfortable with an expense ratio expectation of 28% to 28.5%. We reported net favorable prior year reserve development of $91 million pre-tax in the Q1. There was no net prior year reserve change in business insurance, as favorable development in workers' comp of nearly $100 million was largely offset by modest increases for liability coverages in recent accident years, along with modest charges in our runoff book.

Daniel Stephen Frey: Which was flat year over year, despite the impact of Corvus for which we had a full quarter of expenses, but very little earned premium as there was no unearned premium carried in from the closing of the transaction on January 2nd.

Daniel Stephen Frey: For the full year, we remain comfortable with an expense ratio expectation of 28% to 28, 5%.

Daniel Stephen Frey: We reported net favorable prior year reserve development of $91 million pre tax in the first quarter.

Daniel Stephen Frey: We reported a net favorable prior year reserve development of $91 million pre-tax in the first quarter. There was no net prior year reserve change in business insurance, as favorable development and workers' comp of nearly $100 million was largely offset by modest increases for liability coverages in recent accident years, along with modest charges in our runoff book, and Bond & Specialty, a net favorable PYD of $24 million pre-tax was driven by better than expected results across multiple lines. Personal insurance recorded a net favorable PYD of $67 million pre-tax, with improvements in both auto and home.

Daniel Stephen Frey: There was no net prior year reserve change in business insurance as favorable development in workers comp of nearly $100 million was largely offset by modest increases for liability coverages in recent accident years, along with modest charges in our run off book.

Dan Frey: In Bond and Specialty, net favorable PYD of $24 million pre-tax was driven by better-than-expected results across multiple lines. Personal Insurance recorded net favorable PYD of $67 million pre-tax, with improvements in both auto and home. After-tax net investment income increased 25% from the prior year quarter to $698 million. Fixed income NII was higher than in the prior year quarter and in line with our expectations, benefiting from both higher levels, higher yields, and a higher level of invested assets. Returns in our non-fixed income portfolio were also up from last year's quarter.

In Bond and Specialty, net favorable PYD of $24 million pre-tax was driven by better-than-expected results across multiple lines. Personal Insurance recorded net favorable PYD of $67 million pre-tax, with improvements in both auto and home. After-tax net investment income increased 25% from the prior year quarter to $698 million. Fixed income NII was higher than in the prior year quarter and in line with our expectations, benefiting from both higher levels, higher yields, and a higher level of invested assets. Returns in our non-fixed income portfolio were also up from last year's quarter.

In bond and specialty net favorable <unk> of $24 million pre tax was driven by better than expected results across multiple lines.

Daniel Stephen Frey: Personal insurance reported net favorable <unk> of $67 million pre tax with improvements in both auto and home.

Daniel Stephen Frey: After tax net investment income increased 25% from the prior year quarter to $698 million.

Daniel Stephen Frey: After tax net investment income increased 25% from the prior year quarter to $698 million. Fixed income NII was higher than in the prior year quarter and in line with our expectations, benefiting from both higher levels, higher yields, and a higher level of invested assets. The returns in our non-fixed income portfolio were also up from last year's quarter. Our updated outlook for fixed-income NII, including earnings from short-term securities, is $640 million after tax in the second quarter, growing to approximately $665 million in the third quarter, and then to around $690 million in the fourth quarter.

Daniel Stephen Frey: Fixed income NII was higher than in the prior year quarter and in line with our expectations benefiting from both higher levels higher yields and a higher level of invested assets.

Daniel Stephen Frey: Returns in our non fixed income portfolio were also up from last year's quarter.

Dan Frey: Our updated outlook for fixed income NII, including earnings from short-term securities, is $640 million after tax in Q2, growing to approximately $665 million in Q3, and then to around $690 million in Q4. Regarding income taxes in Q1, recall that last year's quarter included a one-time tax benefit of $211 million related to the repeal of Internal Revenue Code Section 847, and that's the main reason you see a higher effective tax rate in this year's quarter. Turning to capital management. Operating cash flows for the quarter of $1.5 billion were again very strong, and we ended the quarter with holding company liquidity of approximately $1.6 billion.

Our updated outlook for fixed income NII, including earnings from short-term securities, is $640 million after tax in Q2, growing to approximately $665 million in Q3, and then to around $690 million in Q4. Regarding income taxes in Q1, recall that last year's quarter included a one-time tax benefit of $211 million related to the repeal of Internal Revenue Code Section 847, and that's the main reason you see a higher effective tax rate in this year's quarter. Turning to capital management. Operating cash flows for the quarter of $1.5 billion were again very strong, and we ended the quarter with holding company liquidity of approximately $1.6 billion.

Daniel Stephen Frey: Our updated outlook for fixed income NII, including earnings from short term securities.

Daniel Stephen Frey: Is $640 million after tax in the second quarter.

Daniel Stephen Frey: Growing to approximately $665 million in the third quarter and.

Daniel Stephen Frey: And then to around $690 million in the fourth quarter.

Daniel Stephen Frey: Regarding income taxes in the first quarter recall that last year's quarter included a onetime tax benefit of $211 million related to the repeal of internal revenue code section 847.

Daniel Stephen Frey: Regarding income taxes in the first quarter, recall that last year's quarter included a one-time tax benefit of $211 million related to the repeal of Internal Revenue Code Section 847. And that's the main reason you see a higher effective tax rate in this year's quarter.

Daniel Stephen Frey: And that's the main reason you see a higher effective tax rate in this year's quarter.

Daniel Stephen Frey: Turning to capital management, operating cash flows for the quarter of $1.5 billion were again very strong, and we ended the quarter with holding company liquidity of approximately $1.6 billion. As interest rates increased during the quarter, our net unrealized investment loss increased from $3.1 billion after tax at year-end to $3.7 billion after tax on March 31st. However, the changes in unrealized investment gains and losses do not impact how we manage our investment portfolio.

Daniel Stephen Frey: Turning to capital management operating cash flows for the quarter of $1 $5 billion were again very strong.

Daniel Stephen Frey: We ended the quarter with holding company liquidity of approximately $1 6 billion.

Daniel Stephen Frey: As interest rates increased during the quarter, our net unrealized investment loss increased from $3 1 billion hours after tax at year end to $3 7 billion after tax at March 31.

Dan Frey: As interest rates increased during the quarter, our net unrealized investment loss increased from $3.1 billion after tax at year-end to $3.7 billion after tax at 31 March. Remember, the changes in unrealized investment gains and losses do not impact how we manage our investment portfolio. We generally hold fixed income investments to maturity. The quality of our fixed income portfolio remains very high, and changes in unrealized gains and losses have little or no impact on our cash flows, statutory surplus, or regulatory capital requirements. Adjusted book value per share, which excludes unrealized investment gains and losses, was $125.53 at quarter end, up 2% from year-end and up 8% from a year ago. Share repurchases this quarter included $250 million of open market repurchases.

As interest rates increased during the quarter, our net unrealized investment loss increased from $3.1 billion after tax at year-end to $3.7 billion after tax at 31 March. Remember, the changes in unrealized investment gains and losses do not impact how we manage our investment portfolio. We generally hold fixed income investments to maturity. The quality of our fixed income portfolio remains very high, and changes in unrealized gains and losses have little or no impact on our cash flows, statutory surplus, or regulatory capital requirements. Adjusted book value per share, which excludes unrealized investment gains and losses, was $125.53 at quarter end, up 2% from year-end and up 8% from a year ago. Share repurchases this quarter included $250 million of open market repurchases.

Daniel Stephen Frey: Remember the changes in unrealized investment gains and losses do not impact how we manage our investment portfolio with.

Daniel Stephen Frey: We generally hold fixed income investments to maturity. The quality of our fixed income portfolio remains very high, and changes in unrealized gains and losses have little or no impact on our cash flows, statutory surplus, or regulatory capital requirements.

Daniel Stephen Frey: We generally hold fixed income investments to maturity.

Daniel Stephen Frey: Quality of our fixed income portfolio remains very high and changes in unrealized gains and losses have little or no impact on our cash flows statutory surplus or regulatory capital requirements.

Daniel Stephen Frey: Adjusted book value per share, which excludes unrealized investment gains and losses was $125 53 at quarter end up 2% from year end and up 8% from a year ago.

Daniel Stephen Frey: Adjusted book value per share, which excludes unrealized investment gains and losses, was $125.53 at quarter end, up 2% from year end and up 8% from a year ago. Share repurchases this quarter included $250 million of open market repurchases. We had an additional $138 million of buybacks in connection with employee share-based compensation. We have approximately $5.8 billion remaining under prior board authorizations for share repurchases. Dividends were $232 million in the quarter.

Daniel Stephen Frey: Share repurchases this quarter included $250 million of open market repurchases.

Dan Frey: We had an additional $138 million of buybacks in connection with employee share-based compensation plans. We have approximately $5.8 billion remaining under prior board authorizations for share repurchases. Dividends were $232 million in the quarter, and as Alan mentioned earlier, our board authorized a 5% increase in the quarterly dividend to $1.05 per share. In summary, the quarter's strong results once again demonstrate the significant earnings power of our ability to grow premiums across our well-diversified book of business while maintaining very attractive margins, along with steadily increasing net investment income from our growing fixed income portfolio. With that, I'll turn the call over to Greg for a discussion of business insurance.

We had an additional $138 million of buybacks in connection with employee share-based compensation plans. We have approximately $5.8 billion remaining under prior board authorizations for share repurchases. Dividends were $232 million in the quarter, and as Alan mentioned earlier, our board authorized a 5% increase in the quarterly dividend to $1.05 per share. In summary, the quarter's strong results once again demonstrate the significant earnings power of our ability to grow premiums across our well-diversified book of business while maintaining very attractive margins, along with steadily increasing net investment income from our growing fixed income portfolio. With that, I'll turn the call over to Greg for a discussion of business insurance.

Daniel Stephen Frey: We had an additional $138 million of buybacks in connection with employee share based compensation plans.

Daniel Stephen Frey: We have approximately $5 8 billion remaining under prior board authorizations for share repurchases.

Dividends were $232 million in the quarter and as Alan mentioned earlier, our board authorized a 5% increase in the quarterly dividend to $1 <unk> per share.

Daniel Stephen Frey: And, as Alan mentioned earlier, our board authorized a 5% increase in the quarterly dividend to $1.05 per share. In summary... The quarter's strong results once again demonstrate the significant earnings power of our ability to grow premiums across our well-diversified book of business while maintaining very attractive margins, along with steadily increasing net investment income from our growing fixed income portfolio. And with that, I'm going to call over to Greg for a discussion of business insurance.

Daniel Stephen Frey: In summary, our core.

Daniel Stephen Frey: <unk> strong results once again demonstrate the significant earnings power of our ability to grow premiums across our well diversified book of business, while maintaining very attractive margins.

Daniel Stephen Frey: Along with steadily increasing net investment income from our growing into the fixed income portfolio.

Daniel Stephen Frey: With that ill turn the call over to Greg for a discussion of business insurance.

Yes.

Greg: Thanks, Dan.

Gregory Cheshire Toczydlowski: As you know, business insurance continues to deliver exceptional results with a strong first quarter of 2024 in terms of both the top and bottom lines. Segment income of $764 million was up from the first quarter of 2023, driven by higher net investment income and higher pre-tax underlying underwriting income. We're once again particularly pleased with the quarter's exceptionally strong underlying combined ratio of 89.2%, among our best ever. Net written premiums increased 9% to an all-time quarterly high of $5.6 billion.

Greg Toczydlowski: ... Thanks, Dan. Business Insurance continues to deliver exceptional results, with a strong Q1 2024 in terms of both the top and bottom lines. Segment income of $764 million was up from Q1 2023, driven by higher net investment income and higher pre-tax underlying underwriting income. We're once again particularly pleased with the quarter's exceptionally strong underlying combined ratio of 89.2%, among our best ever. Net written premiums increased 9% to an all-time quarterly high of $5.6 billion. Renewal premium change was once again historically high at 10.6%, with renewal rate change of 7%, driving most of the strong pricing. Retention remained excellent at 86%, and new business of $691 million was an all-time first quarter high.

Greg: This insurance continues to deliver exceptional results with a strong first quarter of 2024 in terms of both the top and bottom lines.

Greg: Segment income of $764 million was up from the first quarter of 2023, driven by higher net investment income and higher pre tax underlying underwriting income.

Greg: We're once again, particularly pleased with the quarter's exceptionally strong underlying combined ratio of 89, 2% among our best ever.

Greg: Net written premiums increased 9% to an all time quarterly high of $5 $6 billion.

Greg: Renewal premium change was once again historically high at 10, 6% with renewal rate change of 7% driving most of the strong pricing.

Gregory Cheshire Toczydlowski: Renewal premium change was once again historically high at 10.6%, with renewal rate change of 7%, driving most of the strong prices. Retention remained excellent at 86%, and new business of $691 million was an all-time first quarter high. Let me give you a little more texture on the continued strong pricing environment. Renewal rate change remained high, coming in at 7% or higher for the fourth quarter in a row. It was also up almost two and a half points from the first quarter of 2023.

Greg: Retention remained excellent at 86% and new business of $691 million was an all time first quarter high.

Greg Toczydlowski: Let me give you a little more texture on the continued strong pricing environment. Renewal rate change remained high, coming in at 7% or higher for the Q4 in a row. It was also up almost two and a half points from the Q1 of 2023. In our select and core middle market businesses, renewal rate remained consistent with the Q4. Renewal rate change in our national property book was strong and in the double digits, but down a couple points sequentially. That's an appropriate result, threading the needle between healthy returns in the business and continued weather volatility. From a line perspective, umbrella, property, and auto led the way, all with renewal rate change in or very close to double digits. Renewal rate change was higher compared to the preceding and prior year quarters in GL, umbrella, auto, and CMP.

Let me give you a little more texture on the continued strong pricing environment. Renewal rate change remained high, coming in at 7% or higher for the Q4 in a row. It was also up almost two and a half points from the Q1 of 2023. In our select and core middle market businesses, renewal rate remained consistent with the Q4. Renewal rate change in our national property book was strong and in the double digits, but down a couple points sequentially. That's an appropriate result, threading the needle between healthy returns in the business and continued weather volatility. From a line perspective, umbrella, property, and auto led the way, all with renewal rate change in or very close to double digits. Renewal rate change was higher compared to the preceding and prior year quarters in GL, umbrella, auto, and CMP.

Let me give you a little more texture on the continued strong pricing environment.

Greg: Renewal rate change remained high coming in at 7% or higher for the fourth quarter in a row.

It was also up almost two and a half points from the first quarter of 2023.

Gregory Cheshire Toczydlowski: In our select and core middle market businesses, renewal rate change in our national property book was strong and in the double digits, but down a couple points sequentially. That's an appropriate result threading the needle between healthy returns in the business and continued weather volatility. From a line perspective, Umbrella, Property, and Auto led the way, all with renewal rate changes and are very close to double digits.

Greg: And our select in core middle market businesses.

Greg: <unk> rate remained consistent with the fourth quarter.

Greg: Renewal rate change and our National property book was strong in the double digits, but down a couple points sequentially.

Greg: That's an appropriate result, threading the needle between healthy returns in the business and continued weather volatility.

Greg: From a line perspective umbrella property and auto led the way all with renewal rate change in or very close to double digits.

Gregory Cheshire Toczydlowski: Renewal rate change was higher compared to the preceding and prior year quarters in GL, Umbrella, Auto, and CMP. In workers' comp, renewal rate change was about half a point more than negative than the preceding and prior year quarter. With continued healthy exposure, renewal premium change in comp continues to be positive in the low single digits, again, an appropriate result given the strong results in the line.

Greg: Renewal rate change was higher compared to the preceding and prior year quarters in GL umbrella auto and CMP.

Greg Toczydlowski: In workers' comp, renewal rate change was about half a point more negative than the preceding in prior year quarters. With continued healthy exposure, renewal premium change in comp continues to be positive in the low single digits. Again, an appropriate result given the strong results in the line. Retention remained healthy across the board. We're pleased with our production results, the exceptional granular execution by our field organization, and the resulting growth in top line and attractive margins. As for the individual businesses, in select, renewal premium change remains strong at 10.4%, with renewal rate change of 4%, consistent with the fourth quarter and up more than 2 points from Q1 2023.

In workers' comp, renewal rate change was about half a point more negative than the preceding in prior year quarters. With continued healthy exposure, renewal premium change in comp continues to be positive in the low single digits. Again, an appropriate result given the strong results in the line. Retention remained healthy across the board. We're pleased with our production results, the exceptional granular execution by our field organization, and the resulting growth in top line and attractive margins. As for the individual businesses, in select, renewal premium change remains strong at 10.4%, with renewal rate change of 4%, consistent with the fourth quarter and up more than 2 points from Q1 2023.

Greg: And workers' comp renewal rate change was about half a point more than negative than the preceding and prior year quarters.

With continued healthy exposure renewal premium change in comp continues to be positive in the low single digits.

Greg: Again, an appropriate result, given the strong results in the line.

Greg: Retention remained healthy across the board.

Gregory Cheshire Toczydlowski: Retention remains healthy across the board. We're pleased with our production results, the exceptional granular execution by our field organization, and the resulting growth in top line and attractive margin. As for the individual businesses, in select, renewal premium change remains strong at 10.4% with a renewal rate change of 4%, consistent with the fourth quarter and up more than two points from the first quarter of 2023. Retention also remains strong at 84%, while new business increased 22% from the prior year quarter to $156 million.

Greg: We're pleased with our production results the exceptional granular execution by our field organization, and the resulting growth in topline and attractive margins.

Greg: As for the individual businesses in select renewal premium change remains strong at 10, 4% with renewal rate change of 4%.

<unk> with the fourth quarter and up more than two points from the first quarter of 2023.

Greg Toczydlowski: Retention also remains strong at 84%, while new business increased 22% from the prior year quarter to $156 million, driven by the continued success of our BOP 2.0 product. We're also encouraged with the impact we're seeing from Travis, our new front-end rate quote and issue interface platform that Alan mentioned. In middle market, renewal premium change was 10%, with renewal rate change of 7%, consistent with the strong fourth quarter result and up close to 3 points from the prior year quarter. Retention remains strong at 87%. To sum up, business insurance had a great start to the year. We continue to grow our profitable book while investing in capabilities to enhance our position as the undeniable choice for the customer and an indispensable partner for our agents and brokers.

Retention also remains strong at 84%, while new business increased 22% from the prior year quarter to $156 million, driven by the continued success of our BOP 2.0 product. We're also encouraged with the impact we're seeing from Travis, our new front-end rate quote and issue interface platform that Alan mentioned. In middle market, renewal premium change was 10%, with renewal rate change of 7%, consistent with the strong fourth quarter result and up close to 3 points from the prior year quarter. Retention remains strong at 87%. To sum up, business insurance had a great start to the year. We continue to grow our profitable book while investing in capabilities to enhance our position as the undeniable choice for the customer and an indispensable partner for our agents and brokers.

Greg: Retention also remained strong at 84%, while new business increased 22% from the prior year quarter to $156 million.

Gregory Cheshire Toczydlowski: We're driven by the continued success of our BOP 2.0 product, but we're also encouraged by the impact we're seeing from Travis, our new front-end rate, quote, and issue interface platform that Alan mentioned. In the middle market, the renewal premium change was 10%, with a renewal rate change of 7%, consistent with the strong fourth quarter result and up close to three points from the prior year quarter. Your attention remains strong at 87%. To sum up, business insurance had a great start to the year.

Greg: Driven by the continued success of our BOP to point old product.

Greg: We're also encouraged with the impact we're seeing from Travis our new front end rate quote and issue interface platform that Alan mentioned.

Greg: In middle market renewal premium change was 10% with renewal rate change of 7% consistent with the strong fourth quarter result, and up close to three points from the prior year quarter.

Retention remains strong at 87%.

To sum up business insurance had a great start to the year, we continue to grow our profitable book, while investing in capabilities to enhance our position as the undeniable choice for the customer and an indispensable partner for our agents and brokers.

Gregory Cheshire Toczydlowski: We continue to grow our profitable book while investing in capabilities to enhance our position as the undeniable choice for the customer and an indispensable partner for our agents and brokers. With that, I'll turn the call over to Jeff.

Greg Toczydlowski: With that, I'll turn the call over to Jeff.

With that, I'll turn the call over to Jeff.

Greg: With that I'll turn the call over to Jeff.

Jeff Klenk: Thanks, Greg. Bond & Specialty started the year with another quarter of strong returns and our 29th consecutive quarter of profitable net written premium growth. Segment income was $195 million, driven by strong earned premiums and a combined ratio of 84.5%. Underneath the combined ratio, the underlying loss ratio improved 2.7 points to an excellent 46.4%. As Dan mentioned, the expense ratio was elevated compared to recent periods, primarily due to the Corvus acquisition. We expect that to continue to be the case for the next several quarters as we integrate and earn in Corvus' business. Turning to the top line, we grew net written premiums by 6% in the quarter. In our high-quality domestic management liability business, we again delivered excellent retention of 90%, with slightly higher sequential renewal premium change.

Jeff: Thanks, Greg.

Jeffrey Peter Klenk: Fondant Specialty started the year with another quarter of strong returns and our 29th consecutive quarter of profitable net written premium growth. Segment income was $195 million, driven by strong earned premiums and a combined ratio of 84.5%. Underneath the combined ratio, the underlying loss ratio improved 2.7 points to an excellent 46.4%. As Dan mentioned, the expense ratio was elevated compared to recent periods, primarily due to the Corvus acquisition. We expect that to continue to be the case for the next several quarters as we integrate and earn profits from Corvus' business.

Jeff: In specialty started the year with another quarter of strong returns and are 29th consecutive quarter of profitable net written premium growth.

Jeff: Segment income was $195 million driven by strong earned premiums and a combined ratio of 84, 5%.

Jeff: Underneath the combined ratio the underlying loss ratio improved two seven points to an excellent 46, 4%.

Jeff: As Dan mentioned the expense ratio was elevated compared to recent periods, primarily due to the cordis acquisition.

Jeff: We expect that to continue to be the case for the next several quarters as we integrate and earning core versus business.

Jeffrey Peter Klenk: Turning to the top line, we grew net written premiums by 6% in the quarter. In our high quality domestic management liability business, we again delivered excellent retention of 90%, with a slightly higher sequential renewal premium change. We grew new business by 34% from the prior year quarter to a record $91 million, driven by Corvus production. As a reminder, we are in the midst of transitioning Corvus's $200 million profitable book of business onto Travelers paper, which will continue to be reflected in our new business production in the coming quarter.

Jeff: Turning to the top line, we grew net written premiums by 6% in the quarter.

Jeff: And our high quality domestic management liability business, we again delivered excellent retention of 90% was.

Jeff: With slightly higher sequential renewal premium change.

Jeff Klenk: We grew new business by 34% from the prior year quarter to a record $91 million, driven by Corvus production. As a reminder, we are in the midst of transitioning Corvus' $200 million profitable book of business onto Travelers' paper, which will continue to be reflected in our new business production in the coming quarters. Net written premiums in our market-leading surety business grew a terrific 15%, reflecting continued strong demand for our surety bonds. So we're pleased to have once again delivered strong top and bottom line results this quarter, and now I'll turn the call over to Michael.

We grew new business by 34% from the prior year quarter to a record $91 million, driven by Corvus production. As a reminder, we are in the midst of transitioning Corvus' $200 million profitable book of business onto Travelers' paper, which will continue to be reflected in our new business production in the coming quarters. Net written premiums in our market-leading surety business grew a terrific 15%, reflecting continued strong demand for our surety bonds. So we're pleased to have once again delivered strong top and bottom line results this quarter, and now I'll turn the call over to Michael.

Jeff: We grew new business by 34% from the prior year quarter to a record $91 million driven by quarters production.

Jeff: As a reminder, we are in the midst of transitioning corvus is $200 million profitable book of business onto travelers paper, which will continue to be reflected in our new business production in the coming quarters.

Jeff: Net written premiums in our market, leading surety business grew a terrific, 15%, reflecting continued strong demand for our surety bonds.

Jeffrey Peter Klenk: Net written premiums in our market-leading surety business grew a terrific 15%, reflecting continued strong demand for our surety. So we're pleased to have once again delivered strong top and bottom line results this quarter. Now, I'll turn the call over to Mike.

Jeff: So we're pleased to have once again delivered strong top and bottom line results this quarter and now I will turn the call over to Michael.

Michael: Thanks, Jeff and good morning, everyone.

Michael Frederick Klein: Thanks, Jeff. Good morning, everyone. I'm pleased to report personal insurance generated first quarter segment income of $220 million in a combined ratio of 96.9%, both of which are significantly improved relative to the prior year quarter. The underlying combined ratio of 86.1% reflects a 6.8 point improvement compared to the prior year quarter, driven by higher earned pricing in both automobile and homeowners and other. Net written premiums grew 9% as a result of continued price increases in both auto and home.

Greg Toczydlowski: Thanks, Jeff. Good morning, everyone. I'm pleased to report Personal Insurance generated Q1 segment income of $220 million and a combined ratio of 96.9%, both of which are significantly improved relative to the prior year quarter.

Michael: I am pleased to report personal insurance generated first quarter segment income of $220 million and a combined ratio of 96, 9% both of which are significantly improved relative to the prior year quarter.

Michael Klein: ...The underlying combined ratio of 86.1% reflects a 6.8-point improvement compared to the prior year quarter, driven by higher earned pricing in both automobile and homeowners, and other. Net written premiums grew 9% as a result of continued price increases in both auto and home. In automobile, the first quarter combined ratio of 94.6% improved 10 points compared to the prior year, primarily reflecting a lower underlying combined ratio, as well as favorable prior year development. The underlying combined ratio of 94.9% improved 8.5 points compared to the prior year, driven by the benefit of higher earned pricing. At the same time, vehicle severity trends moderated, and the quarter also included a modest frequency benefit from the mild winter.

Michael: The underlying combined ratio of 86, 1% reflects a $6 eight point improvement compared to the prior year quarter, driven by higher earned pricing in both automobile in homeowners and other.

Michael: Net written premiums grew 9% as a result of continued price increases in both auto and home.

Michael: And automobile first quarter combined ratio of 94, 6% improved 10 points compared to the prior year, primarily reflecting a lower underlying combined ratio as well as favorable prior year development.

Michael Frederick Klein: In Automobile, the first quarter combined ratio of 94.6% improved 10 points compared to the prior year, primarily reflecting a lower underlying combined ratio, as well as favorable prior year development. The underlying combined ratio of 94.9% improved 8.5 points compared to the prior year, driven by the benefit of higher earned pricing. At the same time, vehicle severity trends moderated, and the quarter also included a modest frequency benefit from the mild winter. As a brief reminder, the first quarter underlying combined ratio is typically our seasonally lowest in Ottawa. We are very pleased with the trajectory of auto profitability. In homeowners and other, the first quarter combined ratio of 99.1% was impacted by higher catastrophe losses.

Michael: The underlying combined ratio of 94, 9% improved eight five points compared to the prior year driven by the benefit of higher earned pricing.

Michael: At the same time vehicle severity trends moderated and.

Michael: In the quarter also included a modest frequency benefit from the mild winter.

Michael: As a brief reminder, the first quarter underlying combined ratio is typically our seasonally lowest in auto.

Michael Klein: As a brief reminder, the Q1 underlying combined ratio is typically our seasonally lowest in auto. We are very pleased with the trajectory of auto profitability. In homeowners and other, the Q1 combined ratio of 99.1% was impacted by higher catastrophe losses, reflecting an active cat quarter with 19 PCS designated events for the industry, more than 50% higher than the long-term average. The underlying combined ratio of 77.6% improved five points, primarily driven by the impact of earned pricing. Turning to production, our results demonstrate continued disciplined execution of rate and non-rate measures to balance profitability and growth. In domestic automobile, retention of 82% remained strong, and renewal premium change of 16.6% was consistent with our expectations. Given the improving profitability of our book, we continue to expect renewal premium change to moderate throughout 2024.

As a brief reminder, the Q1 underlying combined ratio is typically our seasonally lowest in auto. We are very pleased with the trajectory of auto profitability. In homeowners and other, the Q1 combined ratio of 99.1% was impacted by higher catastrophe losses, reflecting an active cat quarter with 19 PCS designated events for the industry, more than 50% higher than the long-term average. The underlying combined ratio of 77.6% improved five points, primarily driven by the impact of earned pricing. Turning to production, our results demonstrate continued disciplined execution of rate and non-rate measures to balance profitability and growth. In domestic automobile, retention of 82% remained strong, and renewal premium change of 16.6% was consistent with our expectations. Given the improving profitability of our book, we continue to expect renewal premium change to moderate throughout 2024.

Michael: We are very pleased with the trajectory of auto profitability.

Michael: In homeowners and other the first quarter combined ratio of 99, 1% was impacted by higher catastrophe losses.

Michael Frederick Klein: Reflecting an active quarter with 19 PCS designated events for the industry, more than 50% higher than the long-term average, the underlying combined ratio of 77.6% improved 5 points, primarily driven by the impact of earned pricing. Turning to production, our results demonstrate continued disciplined execution of rate and non-rate measures to balance profitability and growth. In domestic automobile, retention of 82% remained strong, and renewal premium change of 16.6% was consistent with our expectations.

Michael: <unk>, an active cat quarter with 19 Pcs designated events for the industry more than 50% higher than the long term average.

Michael: The underlying combined ratio of 77, 6% improved five points, primarily driven by the impact of earned pricing.

Michael: Turning to production our results demonstrate continued disciplined execution of rate and non rate measures to balance profitability and growth.

Michael: And domestic automobile retention of 82% remains strong and renewal premium change of 16, 6% was consistent with our expectations.

Michael Frederick Klein: Given the improving profitability of our book, we continue to expect renewal premium changes to moderate throughout 2024. New business premium was consistent with the prior year quarter. Underneath this headline number, new business volumes grew in states where we have achieved written rate adequacy. In homeowners, and other, retention of 84% remained strong and was consistent with recent quarters. Renewal premium change of 13.4% reflected higher renewal rate changes and was consistent with our expectations as we have largely closed the gap in insurance to value.

Michael: Given the improving profitability of our book, we continue to expect renewal premium change to moderate throughout 2024.

Michael: New business premium was consistent with the prior year quarter.

Michael Klein: New business premium was consistent with the prior year quarter. Underneath this headline number, new business volumes grew in states where we have achieved written rate adequacy. In homeowners and other, retention of 84% remained strong and was consistent with recent quarters. Renewal premium change of 13.4% reflected higher renewal rate change and was consistent with our expectations as we have largely closed the gap in insurance to value. We expect renewal premium change to remain at these levels throughout 2024 as we continue to seek rate in response to elevated loss costs. The declines in homeowners' new business and policies in force reflect our ongoing efforts to thoughtfully deploy capacity as we continue to manage rate adequacy, catastrophe risk, and regulatory risk.

New business premium was consistent with the prior year quarter. Underneath this headline number, new business volumes grew in states where we have achieved written rate adequacy. In homeowners and other, retention of 84% remained strong and was consistent with recent quarters. Renewal premium change of 13.4% reflected higher renewal rate change and was consistent with our expectations as we have largely closed the gap in insurance to value. We expect renewal premium change to remain at these levels throughout 2024 as we continue to seek rate in response to elevated loss costs. The declines in homeowners' new business and policies in force reflect our ongoing efforts to thoughtfully deploy capacity as we continue to manage rate adequacy, catastrophe risk, and regulatory risk.

Michael: Underneath this headline number new business volumes grew in states, where we have achieved written rate adequacy.

Michael: In homeowners and other retention of 84% remains strong and was consistent with recent quarters.

Michael: Renewal premium change of 13, 4% reflected higher renewal rate change and was consistent with our expectations as we have largely closed the gap in insurance to value.

Michael Frederick Klein: We expect renewal premium change to remain at these levels throughout 2024, as we continue to seek rates in response to elevated loss costs. The declines in homeowners' new business and policies in force reflect our ongoing efforts to thoughtfully deploy capacity as we continue to manage rate adequacy, catastrophe risk, and regulatory risk.

Michael: We expect renewal premium change to remain at these levels throughout 2024, as we continue to seek rate in response to elevated loss costs.

Michael: The declines in homeowners new business and policies in force reflect our ongoing efforts to thoughtfully deploy capacity as we continue to manage rate adequacy catastrophe risk and regulatory risk.

Michael Frederick Klein: The personal insurance team has made notable progress on improving the underlying fundamentals of our business, while sustaining investments in key capabilities for the future. We're moving closer to our goal of delivering target returns. Auto profitability continues to improve. We have reached written rate adequacy in all but a few states and are continuing to temper non-rate actions accordingly.

Michael: Personal insurance team has made notable progress on improving the underlying fundamentals of our business, while sustaining investments in key capabilities for the future.

Michael Klein: Personal Insurance team has made notable progress on improving the underlying fundamentals of our business while sustaining investments in key capabilities for the future. We're moving closer to our goal of delivering target returns. Auto profitability continues to improve. We have reached written rate adequacy in all but a few states and are continuing to temper non-rate actions accordingly. For homeowners, we remain focused on managing growth while improving profitability. At the same time, we're delivering key strategic capabilities. In February, we completed two noteworthy product launches, Quantum Boat 2.0 in the US and Optima Home in Canada. Quantum Boat 2.0 delivers a better agent and customer experience with improved segmentation and strengthens our position as a provider of total account solutions, building on the success of Quantum Auto 2.0 and Quantum Home 2.0.

Personal Insurance team has made notable progress on improving the underlying fundamentals of our business while sustaining investments in key capabilities for the future. We're moving closer to our goal of delivering target returns. Auto profitability continues to improve. We have reached written rate adequacy in all but a few states and are continuing to temper non-rate actions accordingly. For homeowners, we remain focused on managing growth while improving profitability. At the same time, we're delivering key strategic capabilities. In February, we completed two noteworthy product launches, Quantum Boat 2.0 in the US and Optima Home in Canada. Quantum Boat 2.0 delivers a better agent and customer experience with improved segmentation and strengthens our position as a provider of total account solutions, building on the success of Quantum Auto 2.0 and Quantum Home 2.0.

Michael: We're moving closer to our goal of delivering target returns.

Michael: Auto profitability continues to improve.

Michael: We have reached written rate adequacy in all but a few states and are continuing to temporary non rate actions accordingly.

Michael: For homeowners, we remain focused on managing growth, while improving improving profitability.

Michael Frederick Klein: For homeowners, we remain focused on managing growth while improving profitability. At the same time, we're delivering key strategic capabilities. In February, we completed two noteworthy product launches, Quantum Boat 2.0 in the U.S. and Optima Home in Canada. Quantum Boat 2.0 delivers a better agent and customer experience with improved segmentation and strengthens our position as a provider of total account solutions, building on the success of Quantum Auto 2.0 and Quantum Home 2.0

Michael: At the same time, we are delivering key strategic capabilities and.

In February we completed two noteworthy product launches on a boat to <unk> in the U S and Optima home in Canada.

Michael: Quantum boat 2.0 delivers a better agent and customer experience with improved segmentation and strengthens our position as a provider of total account solutions building on the success of quantum auto two <unk> and quantum home two <unk>.

Michael Klein: Optima Home is an extension of our market-leading Quantum Home 2.0 property product, enabling us to deliver a more robust total account solution in the Canadian market. Both product launches mark further progress on our journey to modernize our products and platforms, making us an even more compelling choice for customers and distributors. To sum it up, I'm very pleased with the positive start to the year in Personal Insurance and grateful to our team. Now I'll turn the call back over to Abby.

Optima Home is an extension of our market-leading Quantum Home 2.0 property product, enabling us to deliver a more robust total account solution in the Canadian market. Both product launches mark further progress on our journey to modernize our products and platforms, making us an even more compelling choice for customers and distributors. To sum it up, I'm very pleased with the positive start to the year in Personal Insurance and grateful to our team. Now I'll turn the call back over to Abby.

Michael: Optima home as an extension of our market, leading quantum home two point old property product, enabling us to deliver a more robust total account solution in the Canadian market.

Michael: Both product launches Mark further progress on our journey to modernize our products and platforms, making us an even more compelling choice for customers and distributors.

Michael Frederick Klein: Optima Home is an extension of our market-leading Quantum Home 2.0 property product, enabling us to deliver a more robust total account solution in the Canadian market. Both product launches mark further progress on our journey to modernize our products and platforms, making us an even more compelling choice for customers and distributors. To sum it up, I'm very pleased with a positive start to the year in personal insurance and grateful to our team. Now, I'll turn the call back over to Abbe.

Michael: To sum it up I'm very pleased with the positive start to the year in personal insurance and grateful to our team.

Michael: Now I'll turn the call back over to Avi.

Abbe Goldstein: Thank you. We're ready to open up for questions.

Avi: Thank you and we are ready to open up for questions.

Operator: Thank you. If you would like to ask a question, simply press star one on your telephone keypad. If you would like to withdraw your question, press star one again. Please ensure that your phone is not on mute when asking your question. Your first question comes from the line of David Motemaden of Evercore ISI. Your line is open.

Avi: Thank you if you would like to ask a question simply press star one on your telephone keypad.

Avi: We'd like to withdraw your question Press Star one again.

Avi: Please ensure that your phone is not on mute when asking your question.

Abbe F. Goldstein: Thank you. We're ready to open up for questions.

Unknown Executive: Thank you. If you would like to ask a question, simply press star 1 on your telephone keypad. If you would like to withdraw your question, press star 1 again. Please ensure that your phone is not on mute when asking your question. Your first question comes from the line of David Motemaden of Evercore. Your line is open.

Avi: Our first question comes from the line of David Barden of Evercore. Your line is open.

David Barden: Hi, Thanks, good morning.

David Motemaden: Hi, thanks. Good morning. I had a question just on the more recent accident year reserve increases in business insurance and some of those liability lines, that Dan was highlighting. I'm wondering, is there any more detail you can provide here with regards to specific accident years? It sounded like GL. And, you know, also, I don't think you guys are alone in seeing some adverse on these years, which, but I think everyone had thought that these were better priced years relative to 2019 and prior. So could you just talk about what exactly is the disconnect here and why there is some adverse coming on those years?

David Barden: I had a question just on the more recent accident year reserve increases in business insurance and some of those liability lines that.

David Kenneth Motemaden: Hi, thanks. Good morning.

David Barden: Dan was highlighting I'm wondering is there any more detail you can provide here with regards to specific accident years it sounded like GL.

David Kenneth Motemaden: I had a question just on the more recent accident year reserve increases in business insurance and some of those liability lines that Dan was highlighting. I'm wondering, is there any more detail you can provide here with regard to specific accident years? It sounded like GL and also, I don't think you guys are alone in seeing some negative on these years, but I think everyone had thought that these were better priced years relative to 19 and prior. So could you just talk about what exactly is the disconnect here and why there's some negative coming on those years? Hey David, it's Dan.

David Barden: And also I don't think you guys are alone in seeing some adverse on these years.

David Barden: But I think everyone thought that these were better priced years relative to 19 and prior so could you just talk about what exactly is the disconnect here and why there are some adverse coming on those years.

David Barden: Hey, David It's Dan sure so I'll take that.

Michael Klein: Hey, David, it's Dan. Sure. So I'll take that. So yeah, by more recent accident years, you know, we're not talking about 15 through 19, we're talking about years more recent than that. I guess, the thing I'll reiterate from my comments is we're talking about some pretty small movements here. So we had some adverse in those recent accident year liability lines. We also had some modest charges in the runoff book. I think what we're doing here, David, is trying to be reactive to all the information we're seeing, those recent accident years in the liability lines, which tend to take longer to develop and be on the books for a while are more leveraged to IBNR. We're just trying to get some more IBNR into those lines, to recognize that uncertainty.

By more recent accident years, we're not talking about 15 through 19, we're talking about here is more recent than that.

Daniel Stephen Frey: Hey David, it's Dan. Sure, so I'll take that. So yeah, by more recent than accident years, you know, we're not talking about 15 through 19. We're talking about years more recent than that. I guess the thing I'll reiterate from my comments is that we're talking about some pretty small movements here. So we had some adverse in those recent accident year liability lines. We also had some modest charges in the runoff book. I think what we're doing here, David, is trying to... be reactive to all the information we're seeing those recent accident years in the liability lines, which tend to take longer to develop and are beyond the books for a while are more leveraged to IBNR.

Daniel Stephen Frey: The thing I'll reiterate from my comments is we're talking about some pretty small movements here.

Daniel Stephen Frey: So we had some adverse in those recent accident year liability lines. We also has had some modest charges and the run off book.

Daniel Stephen Frey: I think what we're doing here David is trying to.

Daniel Stephen Frey: Be reactive to all of the information we're seeing those recent accident years in the liability lines, which tend to take longer to develop and.

Daniel Stephen Frey: Beyond the books for a while are more leveraged to IBM or we're just trying to get some more <unk> into those lines too.

Daniel Stephen Frey: To recognize that uncertainty Dave.

Alan Schnitzer: David, it's Alan. The other thing I'd add is this. There's not any significant new developments here. These are generally the same trends we've been talking about for a long time, a little more of the same. And again, to reiterate Dan's comment, when you look at the, you know, the, the overall reserves we have for these lines, these are, these are very small adjustments.

Daniel Stephen Frey: David is on the other thing I'd add is that there's not any significant new developments here. These are generally the same trends we've been talking about for a long time, a little more of the same and again to reiterate Dan's comment when you look at the.

Daniel Stephen Frey: Overall reserves, we have for these lines. These are these are very small adjustments.

Daniel Stephen Frey: We're just trying to get some more IBNR into those lines to recognize that I'm sorry. David, the other thing I'd add is that there are not any significant new developments here. These are generally the same trends we've been talking about for a long time, a little more of the same. And again, to reiterate Dan's comment, when you look at the overall reserves we have for these lines, these are very small adjustments.

Got it okay. That's helpful.

David Motemaden: Got it. Okay, that's helpful. And then, maybe just switching gears to the personal auto business. Michael, I think you had mentioned that there was maybe some benefit just from mild frequency, given a warmer than typical Q1. Is there any way you could size that, just to help us think about the sustainability of the improvement in the auto business?

Daniel Stephen Frey: And then maybe just switching gears to the personal auto business.

Michael I think you had mentioned that there was maybe some benefit just from mild frequency given the warmer than typical first quarter is there any way you could size that just to help us think about the sustainability of the improvement in the auto business.

David Kenneth Motemaden: Got it. Okay, that's helpful.

David Kenneth Motemaden: And then maybe just switching gears to the personal auto business. Michael, I think you had mentioned that there was maybe some benefit just from mild frequency given a warmer than typical first quarter. Is there any way you could size that just to help us think about the sustainability of the improvement in the auto business? Yeah, sure, David. I think mild frequency

Michael: Yes, sure David I think the mild frequency impact on the underlying combined ratio was a little less than a point.

Michael Klein: Yeah, sure, David. I think the mild frequency impact on the underlying combined ratio was a little less than a point.

Michael: Okay.

Speaker Change: Great. Thank you.

David Motemaden: Great. Thank you.

Speaker Change: Your next question comes from the line of Gregory Peters with Raymond James Your line is open.

Operator: Your next question comes from the line of Gregory Peters with Raymond James. Your line is open.

Michael Frederick Klein: Yeah, sure, David. I think the mild frequency impact on the underlying combined ratio was a little less than a point.

Gregory Peters: Good morning, everyone. So, for the first question, I'll focus on the business insurance segment. In the comments and in the stats, I think there's 7% or higher renewal rate change for four consecutive quarters, and retention seems to be holding up, maybe slipping a little bit. Maybe you could step back and give us some context about, or texture, I think, is the word you used, about the competitive environment. Curious, you know, given all the rate change that's coming through, why we haven't seen more aggressive actions on behalf of some of the competitors yet, or maybe it's, they're still reconciling previous year's results as well? I don't know. Just, some color there would be helpful.

Gregory Cheshire Toczydlowski: Good morning, everyone. So for the first question I'll focus on the business insurance segment.

Gregory Cheshire Toczydlowski: Your next question comes from the line of Gregory Peters with Raymond James. Your line is open.

Gregory Cheshire Toczydlowski: In the comments in the stats I think there is 7% or higher renewal rate change for four consecutive quarters of new.

Alan David Schnitzer: Good morning, everyone. So for the first question, I'll focus on the business insurance segment. In the comments and in the stats, I think there's been 7% or higher renewal rate change for four consecutive quarters, and retention seems to be holding up, maybe slipping a little bit. Maybe you could step back and give us some context about or texture, I think is the word you used, about the competitive environment. Curious, you know, given all the rate changes that's coming through, why haven't we seen more aggressive actions on behalf of some of the competitors yet? Or maybe it's that they're still reconciling previous year's results as well. I don't know. There would be just some color there. Good morning, Greg. It's Alan.

Gregory Cheshire Toczydlowski: And retention seems to be holding up may be slipping a little bit maybe you could step back and give us some context about our texture. I think is the word you used about the competitive environment curious.

Gregory Cheshire Toczydlowski: Given all the rate changes coming through why we haven't seen more aggressive actions on behalf of some of the competitors yet or maybe it's there are still reconciling previous year's results as well I don't know just some color there would be helpful.

Alan Schnitzer: Hey, good morning, Greg, it's Alan. I'm starting, then turn it over to Greg. Hard for us to comment for competitors, but, you know, we do think that in the pricing we've been able to achieve with these retentions, you know, you do see a reflection of the competitive environment. And I'd say that, you know, everybody is... Well, what we would speculate is that everybody's reacting to the same things that we're reacting to. I mean, there's, you know, returns in a much better place after, you know, years of pricing and improvements in terms and conditions. But there are some headwinds and some uncertainty out there, and it's, you know, all the things we've talked about.

Gregory Cheshire Toczydlowski: Hey, good morning, Greg It's Alan I'll.

Alan David Schnitzer: Starting to turn over to Greg.

Alan David Schnitzer: Hard for us to comment for competitors, but but we do think that in the pricing we've been able to achieve these retentions.

Speaker Change: You do see that a reflection of the competitive environment.

Alan David Schnitzer: Hey, good morning. Greg, it's Alan. I'll start and then turn it over to Greg.

Alan David Schnitzer: And I'd say that everybody is.

Greg: Well, what we would speculate is that everybody is reacting to the same things that we're reacting to I mean, there's.

Alan David Schnitzer: It's hard for us to comment on competitors, but we do think that in the pricing we've been able to achieve with these retentions, you do see a reflection of the competitive environment. And I'd say that, you know, everybody is. Well, what we would speculate is that everybody's reacting to the same things that we're reacting to. I mean, there are returns in a much better place after, you know, years of pricing and improvements in terms of conditions.

Greg: Turns into a much better place after years of of pricing and improvements in terms and conditions.

Greg: But there are some headwinds and some uncertainty out there and it's all the things we've talked about there is social inflation economic inflation in a tight labor market weather.

Alan Schnitzer: There's social inflation, economic inflation, a tight labor market, weather, geopolitics, I think, puts a certain lens over the way we all see the world. And so I suspect what you have is a marketplace that's reacting to an overall level of risk and uncertainty.

There's social inflation, economic inflation, a tight labor market, weather, geopolitics, I think, puts a certain lens over the way we all see the world. And so I suspect what you have is a marketplace that's reacting to an overall level of risk and uncertainty.

Greg: Geopolitics I think puts a certain.

Greg: Lens over the way, we all see the world and and so I suspect. What you have is is a marketplace. That's reacting to an overall level of risk and uncertainty.

Greg: Okay.

Alan David Schnitzer: But there are some headwinds and some uncertainty out there. And it's, you know, all the things we've talked about. There's social inflation, economic inflation, a tight labor market, weather. Geopolitics, I think, puts a certain lens over the way we all see the world. And so I suspect what you have is a marketplace that's reacting to an overall level of risk and uncertainty.

Gregory Peters: Okay. I guess, I'll pivot then. You know, if we look at the proxy statement, I know ROE target's a very important metric for y'all. I think the target was 12.8% for 2023, up from 11.6% from 2022. Can you talk about how you're looking at the ROE targets for the company for twenty-four, please?

Speaker Change: I guess I'll pivot then.

Speaker Change: You know what if you look at the proxy statement I know ROE targets, a very important metric for you all.

Speaker Change: I think the target was 12, 8% for 'twenty three.

Speaker Change: Up from 11 six from 22 can you talk about how youre looking at the ROE targets for the company for for for 24. Please.

Alan David Schnitzer: Okay, I guess I'll pivot then. You know, if you look at the proxy statement, I know ROE targets are a very important metric for y'all. I think the target was 12.8% for 23, up from 11.6% from 22. Can you talk about how you're looking at the ROE targets for the company for 24, please? Yeah, I don't think we're going to share that target.

Speaker Change: Yes, I don't think we're going to share that target it gets competitively sensitive and close to pricing, but I will say, we we think about that in terms of the overall outlook for our business, we think about the rate at which the interest rate environment is earning into the fixed income portfolio, which turns over on a lag basis.

Alan Schnitzer: Yeah, I don't think we're going to share that target. It gets, you know, competitively sensitive and close to pricing. But, but I will say we, you know, we think about that, in terms of the overall outlook for our business. We think about the rate at which the interest rate environment is earning into the fixed income portfolio, which turns over on a lag basis. And, and we think about really what we want to achieve as a, as a margin over both the ten-year Treasury and our cost of equity. So that's, those are the things we, we think about as we put the plan together. Dan, anything else I'm missing there?

Speaker Change: And we think about really what we want to achieve as a as a margin over both the 10 year Treasury and our cost of equity. So that's one of the things we think about it as we put the plan together.

Speaker Change: And Dan anything else I'm missing now that you've got it all.

Alan David Schnitzer: Yeah, I don't think we're going to share that target. It gets, you know, competitively sensitive and close to pricing. But I will say we think about that, in terms of the overall outlook for business, we think about the rate at which the interest rate environment is earning into the fixed income portfolio, which turns over on a lag basis. And we think about really what we want to achieve as a margin over both the 10-year treasury and our cost of equity. So those are the things we think about as we put the plan together. Do you see anything else I'm missing there? No, you have got it all.

Michael Klein: No, you got it all.

Yes.

Gregory Peters: Got it. Thanks.

Daniel Stephen Frey: Got it thanks.

Alan Schnitzer: Thank you.

Speaker Change: Thank you.

Operator: Your next question comes from the line of Elise Greenspan with Wells Fargo. Your line is open.

Speaker Change: Your next question comes from the line of Elyse Greenspan with Wells Fargo. Your line is open.

Elyse Beth Greenspan: Hi, Thanks.

Elyse Greenspan: Hi, thanks. My first question is on personal auto. I think you guys said that, you know, Q1 is seasonally the lowest combined ratio quarter, but you still have a good amount of rate earning in, in the book. So shouldn't that obscure some of the seasonality, or would you expect, you know, Q1 to be better from a combined ratio perspective on the underlying side relative to the other three quarters of the year, even knowing you have rate to earn in?

Elyse Beth Greenspan: My first question.

Speaker Change: Is.

Elyse Beth Greenspan: On personal auto.

Elyse Beth Greenspan: Thank you guys said that Q1 is seasonally the lowest combined ratio quarter, but you still have a good amount of rate, earning in and the Buck so shouldnt that obscure some of the seasonality or would you expect.

Elyse Beth Greenspan: Q1 to be better.

Elyse Beth Greenspan: Your next question comes from the line of Elyse Greenspan with Wells Fargo. Your line is open.

Elyse Beth Greenspan: Combined ratio perspective on the underlying side relative to the other three quarters of the year, even knowing you'll have to earn it.

Michael Frederick Klein: Hi, thanks. My first question is about personal auto. I think you guys said that, you know, Q1 is seasonally the lowest combined ratio quarter, but you still have a good amount of rate earnings in the book. So shouldn't that obscure some of the seasonality, or would you expect, you know, Q1 to be better from a combined ratio perspective on the underlying side relative to the other three quarters of the year, even knowing you have rate earnings to earn?

Elyse Beth Greenspan: Sure Elyse, it's Michael So so just taking a step back and talking about auto the seasonality comment as a long term average comment typically Q1 is roughly three points lower than the overall combined ratio for the year.

Michael Klein: Sure, Elise, it's Michael. So, so just taking a step back and talking about auto, the seasonality comment is a long-term average comment. Typically, Q1 is roughly three points lower than the overall combined ratio for the year. But that's, again, a long-term average and largely an all else equal environment. So that three points doesn't adjust for earned effective pricing, potentially having impact in the back half of the year, and so you have to make an adjustment for that, no question. But again, I would just take a step back and maybe put a little more color around my response to David as well, right? So the mild winter weather benefit, we would view as, you know, sort of a one-off in the quarter, that we wouldn't expect to continue.

Michael: But thats again, a long term average and largely and all else equal environment. So that three points doesn't adjust for earned effective pricing potentially having an impact in the back half of the year and so you have to make an adjustment for that no question.

Michael Frederick Klein: Sure, Elyse, it's Michael. So just taking a step back and talking about cars, the seasonality comment is a long-term average comment. Typically, Q1 is roughly three points lower than the overall combined ratio for the year. But that's, again, a long-term average and largely an all-else equal environment. So that three points doesn't adjust for earned effective pricing potentially having an impact in the back half of the year. And so you have to make an adjustment for that, no question. But again, I would just take a step back and maybe put a little more color around my response to David as well, right?

Michael:

But again I would I would just take a step back and maybe put a little more color around my response, David as well right. So the the mild winter weather benefit we would view as sort of a one off.

In the quarter that we wouldn't expect to continue.

Michael Klein: We don't see any reason to assume, adjusted for that, that seasonality is any different today than it was historically. And at the end of the day, you know, to the premise of your question, the earned effective pricing is far and away the biggest driver of the improvement in the quarter, and there's more of that to come going forward.

We don't see any reason to assume, adjusted for that, that seasonality is any different today than it was historically. And at the end of the day, you know, to the premise of your question, the earned effective pricing is far and away the biggest driver of the improvement in the quarter, and there's more of that to come going forward.

Michael: We don't see any reason to assume adjusted for that that seasonality is any different today than it was historically.

Michael Frederick Klein: So the mild winter weather benefit we would view as, you know, sort of a one-off in the quarter that we wouldn't expect to continue. We don't see any reason to assume that it would have been adjusted for that. That seasonality is any different today than it was historically. And at the end of the day, you know, to the premise of your question, earned effective pricing is far and away the biggest driver of the improvement in the quarter. And, And there's more of that to come going forward.

Michael: And at the end of the day to your to the premise of your question there aren't effective pricing is far and away the biggest driver of the improvement.

Michael: In the quarter and there's more of that to come going forward.

Michael: Yes.

Elyse Greenspan: ... Thanks. And then my second question, I wanted to go back, to the liability, reserve increase in the quarter. Can you give us a sense, you know, if there were some additions? I know the numbers are modest, like you guys said, on accident year 2023. And then, you know, given the additions you see here, are you adjusting, your longer trend, long-term loss trend assumption, for the liability lines following this?

Speaker Change: Thanks, and then my second question I wanted to go back to the.

Liability reserve increase in the quarter.

Speaker Change: Can you give us a sense.

Speaker Change: If there were some additions I know the numbers are modest like you guys said.

Elyse Beth Greenspan: And then my second question, I wanted to go back to the liability reserve increase in the quarter. Can you give us a sense, you know, if there were some additions, I know the numbers are modest, like you guys said, for accident year 2023. And then, you know, given the additions you see here, are you adjusting your longer trend, long-term loss trend assumption for the liability lines?

On accident year 2023, and then given the additions you see here are you adjusting.

Speaker Change: Your longer trend long term loss trend assumption for the liability lines. Following this.

Dan Frey: So Elise, it's Dan. I'll start with the PYD piece and avoid the temptation of splitting what is a small number to begin with into its individual accident years. So we're not going to do that. I do think if you look at the results in Business Insurance, you know, we talked about the fact that you saw some improvement in the underlying combined ratio, including in the underlying loss ratio. You have the benefit of pricing and a couple of other things like mix, which we talked about last quarter.

Speaker Change: So elyse, it's Dan I'll start with the with the <unk> and avoid the temptation of splitting what is a small number to begin with intuit's individual accident years. So we're not going to do that.

Daniel Stephen Frey: So, Elyse, it's Dan. I'll start with the PYD piece and avoid the temptation of splitting what is a small number to begin with into its individual accident years. So we're not going to do that. But I do think if you look at the results in business insurance, you know, we talked about the fact that you saw some improvement in the underlying combined ratio, including in the underlying loss ratio. You have the benefit of pricing, and a couple of other things like mix, which we talked about last quarter.

Speaker Change:

Daniel Stephen Frey: I do think if you look at the the results in business insurance you know we've talked about the fact that you saw.

Daniel Stephen Frey: Saw some improvement in the underlying combined ratio, including in the underlying loss ratio.

You have the benefit of pricing.

Daniel Stephen Frey: And a couple of other things like mix, which we talked about last quarter the.

Daniel Stephen Frey: At the same time, like in any quarter, you've got some puts and takes, and one of those puts and takes in this quarter is booking a little bit more IBNR in the current accident year to reflect some of the uncertainty that we're seeing. Not big numbers, but we are reacting.

Dan Frey: At the same time, like in any quarter, you've got some puts and takes, and one of those puts and takes in this quarter is booking a little bit more IBNR in the current accident year to reflect some of the uncertainty that we're seeing. Not big numbers, but we are reacting to it.

At the same time, like in any quarter, you've got some puts and takes, and one of those puts and takes in this quarter is booking a little bit more IBNR in the current accident year to reflect some of the uncertainty that we're seeing. Not big numbers, but we are reacting to it.

Daniel Stephen Frey: The same time like in any quarter, you've got some some puts and takes in one of those puts and takes in this quarter.

Is is booking a little bit more <unk> in the current accident year to reflect some of the uncertainty that we're seeing.

Daniel Stephen Frey: Not big numbers, but but we are reacting to it.

Speaker Change: Thank you.

Elyse Greenspan: Thank you.

Speaker Change: Your next question comes from the line of Brian Meredith with UBS. Your line is open.

Brian Robert Meredith: Your next question comes from the line of Brian Meredith with UBS. Your line is open.

Operator: Your next question comes from the line of Brian Meredith with UBS. Your line is open.

Michael Frederick Klein: Yeah, thanks. First one from Michael. Michael, I'm just curious, you know, one of your competitors in the personal auto space is showing some pretty strong growth in policies and forth, really kind of capitalizing on the market. I'm just curious, are you in a position at this point to kind of go after and get some growth given how your results have improved so much?

Brian Meredith: Yeah, thanks. First one for Michael. Michael, I'm just curious, you know, one of your competitors in the personal auto space is showing some pretty strong growth in policies in Q4, really kind of capitalizing on the market. I'm just curious, are you in a position at this point to kind of go after and get some growth, given how your results have improved so much?

Brian Robert Meredith: I think some first one from Michael Michael I'm, just curious you know one of your competitors in the personal auto space is showing some pretty strong growth in policies in force really kind of capitalizing the market I'm. Just curious are you in a position at this point to kind of go after and get some growth given how how are your results have improved so much.

Michael Frederick Klein: Sure, Brian. Thanks for the question. Certainly, you know, again, underneath the results in the quarter, if you look at it on a state by state basis, the states where we have achieved written adequacy, we did achieve new business premium growth. And consistent with our comments last quarter, what I would say to you is we're executing a very granular state by state, geography by geography strategy as we look to temper some of the non-rate actions that we had in place in auto. And if you take a step back, you know, if you look at it over the last couple of years, we have had a small increase in policies enforcing auto over the last couple of All the while, premiums are up 30 plus percent.

Michael: Sure Brian Thanks for the question certainly.

Michael Klein: Sure, Brian. Thanks for the question. Certainly, you know, again, underneath the results in the quarter, if you look at it on a state-by-state basis, the states where we have achieved written adequacy, we did achieve new business premium growth. Consistent with our comments last quarter, what I would say to you is we're executing a very granular state-by-state, geography-by-geography strategy as we look to temper some of the non-rate actions that we had in place in auto. If you take a step back, you know, if you look at it over the last couple of years, we have a small increase in policies in force in auto over the last couple of years or so. We got a small decrease in property, all the while premiums are up 30-plus%. So we feel pretty good about the starting point.

Again underneath the results in the quarter. If you look at it on a state by state basis. The states, where we have achieved written adequacy, we did achieve new business premium growth.

Michael: And consistent with our comments last quarter.

What I would say to you is we're executing a very granular state by state geography by geography strategy as we look to temper some of the non rate actions that we had in place in auto.

Michael: And if you take a step back you know if you look at it over the last couple of years.

Michael: A small increase in policies enforced in auto over the last couple of years or so we've got a small decrease in property.

Michael: All the while premiums are up 30 plus percent. So so we feel pretty good about about the starting point and.

Michael Frederick Klein: So we feel pretty good about the starting point. And, you know, directly to your question, our focus in auto is on profitably growing auto on a go forward basis. Our focus on home remains on improving profitability. And so that's why we talk about sort of balancing profitability and growth across the whole portfolio.

Michael Klein: You know, directly to your question, our focus in auto is on profitably growing auto on a go-forward basis. Our focus on home remains on improving profitability, and so that's why we talk about sort of balancing profitability and growth across the whole portfolio.

You know, directly to your question, our focus in auto is on profitably growing auto on a go-forward basis. Our focus on home remains on improving profitability, and so that's why we talk about sort of balancing profitability and growth across the whole portfolio.

Michael: Directly to your question our focus in auto is on profitably growing auto on a go forward basis.

Michael: Our focus on home remains on improving profitability and so thats why we talk about sort of balancing profitability and growth across the whole portfolio.

Brian Meredith: Makes sense. Thanks. And then a follow-up on the business insurance. Alan, Greg, I wonder if you could kind of dissect kind of the competitive landscape, kind of large, middle, small. Are any of them kind of incrementally more competitive? It feels like small, middle seems to be a little more stable right now than maybe the large, from what we're hearing in the marketplace.

Speaker Change: Makes sense. Thanks, and then my follow up on the on the business insurance.

Brian Robert Meredith: Thanks. And then I will follow-up on the business insurance.

Alan David Schnitzer: Alan and Greg, I wonder if you could kind of dissect the competitive landscape, kind of large, middle, small. Are any of them kind of incrementally more competitive? It feels like the small-middle seems to be a little more stable right now than maybe the large from what we're hearing in the marketplace.

Speaker Change: Allen, Greg I Wonder if you could kind of dissect kind of the competitive landscape and a large middle small.

Speaker Change: Are any of them kind of incrementally more competitive it feels like small middle seems to be a little more stable right now than maybe the larger from what we're hearing in the marketplace.

Yes.

Brian Robert Meredith: Yeah, Brian, let me just comment. I'll turn to Greg.

Dan Frey: Yeah. Brian, let me just comment, and I'll turn it to Greg. I think all of these markets are always competitive all the time, and that's sort of the way, the way we think about it. So, I'm not sure. I mean, you know, as Greg shared in his prepared remarks, you know, to the extent that you're thinking about, about, you know, renewal premium change as a proxy for competition, and I don't think it is, by the way, that did come down a couple of points, but again, still among our highest rate achieved in any line at, you know, double digits and a reflection of, of, you know, terrific returns in the line. So I don't think there's been any sea change in, or any significant shift, you know, among those businesses.

Speaker Change: Finally, let me just comment I will turn it Greg I think all of these markets are always competitive all the time and that's sort of the way the way we think about it.

Alan David Schnitzer: I think all of these markets are always competitive all the time. And that's sort of the way we think about it. So I'm not sure. I mean, yes, as Greg shared in his prepared remarks, you know, to the extent that you're thinking about whether the renewal price change is a proxy for competition. And I don't think it is, by the way.

Speaker Change: So I am not sure I mean, yes, as Greg shared in his prepared remarks to the extent that youre thinking about about.

Speaker Change: Renewal price change as a proxy for competition and I don't think it is by the way.

Speaker Change: That did come down a couple of points, but again still among our highest rate achieved in any line.

Alan David Schnitzer: Um, that did come down a couple of points, but again, still among our highest rate achieved in any line and, you know, double digits and a reflection of, you know, terrific returns in the line. So I don't think there's been any sea change in or any significant shift among those businesses. I'd said competitive business that we have. I don't know, Greg, what?

Speaker Change: Double digits and a reflection of.

Speaker Change: Terrific returns in the line so I.

Speaker Change: I don't think theres been any sea change in or any significant shift among those businesses I'd say competitive business that we have either Greg.

Dan Frey: I'd say competitive business that we have. I don't know, Greg, what-

I'd say competitive business that we have. I don't know, Greg, what-

Greg Toczydlowski: Yeah. Yeah, maybe I'll touch on new business since Alan just hit on rate. And you can see on the new business, we had a real strong quarter in small commercial, up 22%. So that we are seeing a little more dislocation in that market than we are in middle market. But the combination of our new segmented products, BOP 2.0, and our new commercial automobile product, we feel terrific about, you know, our position there and where we're writing that new business and at what returns we're going to achieve there. Middle market still had, you know, the delta wasn't as big on new business, but we had a record result on the first quarter of the prior year, so really strong new business levels.

Speaker Change: Maybe I'll touch on new business since Alan just hit on rate and you can see on the new business, we had a real strong quarter in small commercial up 22%. So that we are seeing a little more dislocation in that market than we are in middle market with the combination of our new segmented products, Bob <unk> and our new <unk>.

Gregory Cheshire Toczydlowski: Yeah, maybe I'll touch on new business since Alan just hit on rate. And, um, you can see on new business, we had a real strong quarter in small commercial, up 22%. So we are seeing a little more dislocation in that market than we are in the middle market. But the combination of our new segmented products, BOP 2.0, and our new commercial automobile product, we feel terrific about, you know, our position there and where we're writing that new business and at what returns we're going to achieve there.

Speaker Change: <unk> automobile product, we feel terrific about our position, there and where we're writing that new business and at what returns we're going to achieve their middle market still had the delta wasn't as big.

On new business, but we had a record result in the first quarter of the prior year, So really strong new business levels.

Greg Toczydlowski: And not as much dislocation, Brian, in the middle market, but really feeling good about-

And not as much dislocation, Brian, in the middle market, but really feeling good about-

Speaker Change: Not as much dislocation, Brian in the middle market, well really feeling good about the combination of where the returns are and our field teams stand really active on the new business front.

Brian Meredith: Yeah

Greg Toczydlowski: ... the combination of where the returns are and our field team staying really active on the new business front.

Gregory Cheshire Toczydlowski: Um, the middle market still had, you know, the Delta wasn't as big on new business, but we had a record result in the first quarter of the prior year, so really strong new business levels. So not as much dislocation, Brian, in the middle market, but really feeling good about the combination of where the returns are and our field team staying really active on the new business front.

Brian Meredith: Sure. Thank you.

Speaker Change: Sure. Thank you.

Your next question comes from the line of Ryan Tunis with Autonomous Research. Your line is open.

Operator: Your next question comes from the line of Ryan Tunis with Autonomous Research. Your line is open.

Yeah.

Ryan Tunis: Hey, thanks. Good morning. I just had a couple, I guess, on exposure acting as rate. So yeah, exposure acting as rate's clearly been a tailwind, in particular for margins. It's been flagged, you know, for the past couple of years, especially in the workers' comp line. But this is the first quarter in a long time I think I've seen that workers' comp NPW shrink year over year. So curious, sort of, you know, what dynamic might be going on there?

Okay.

Ryan Tunis: Thanks, Good morning, I, just had a couple I guess on exposure acting as rate.

Ryan Tunis: So, yes exposure acting as rates clearly been.

Ryan Tunis: Your next question comes from the line of Ryan Tunis with Autonomous Research. Your line is open.

Ryan Tunis: Payroll lending in particular for margins and flagged for the past couple of years, especially in the workers' comp line.

Ryan Tunis: Hey, thanks. Good morning.

Well. This is the first quarter in a long time, I think I've seen that workers comp MPW shrink year over year.

Ryan Tunis: I just had a couple on exposure acting as a rate. Um, so yeah, exposure activeness rates clearly have been a pale wind, in particular for margins. It's been flagged, you know, for the past couple years, especially in the workers comp line. But this is the first quarter in a long time, and I think I've seen workers' comp, NPW, shrink year over year. So curious sort of, you know, what dynamic might be going on there? Yeah.

Speaker Change: So curious sort of what dynamic might be going on there.

Speaker Change: Yes. Good morning, Ryan how are you doing this is Greg yeah exposure continues to be strong down somewhat as you look at the business is not a surprise to us as the fed has been very active in curtailing.

Greg Toczydlowski: Yeah. Good morning, Ryan. How you doing? This is Greg. Yeah, exposure, you know, continues to be strong, down somewhat as you look at the businesses. Not a surprise to us, as the Fed has been very active in curtailing inflation. So, definitely we're seeing some of that-

Greg: Inflation, so definitely we're seeing some of that in workers' comp, but the primary driver of the down in comp as you know, we we do still have rate reductions as I shared in my prepared comments relative to the other products.

Greg Toczydlowski: ... in workers' comp, but the primary driver of the down in comp is, you know, we do still have rate reductions, as I shared in my prepared comments, relative to the other products. And as we're an account solution, you know, we're gonna remain very active and disciplined with our underwriting. And as we invoke both of those dynamics in the business, that's what drove the overall net written premium change in the comp line.

... in workers' comp, but the primary driver of the down in comp is, you know, we do still have rate reductions, as I shared in my prepared comments, relative to the other products. And as we're an account solution, you know, we're gonna remain very active and disciplined with our underwriting. And as we invoke both of those dynamics in the business, that's what drove the overall net written premium change in the comp line.

Gregory Cheshire Toczydlowski: Yeah, good morning, Ryan. How are you doing? This is Greg.

Gregory Cheshire Toczydlowski: Yeah, exposure, you know, continues to be strong, down somewhat, as you look at the business. It's not a surprise to us, as the Fed has been very active in curtailing inflation. So definitely, we're seeing some of that in workers comp, but the primary driver of the decline in comp is, you know, we do still have rate reductions, as I shared in my prepared comments relative to the other products. And as we're in account solution, you know, we're going to remain very active and disciplined with our underwriting. And as we invoke both of those dynamics in the business, that's what drove the overall net written premium change in the comp line.

Greg: And as we are an account solution yeah, we're going to remain very active and disciplined with our underwriting and as we invoked both of those dynamics in the business. That's what drove the overall net written premium change in the comp line.

Speaker Change: Got it.

Ryan Tunis: Got it. And I guess if I look at the overall, like, exposure is still positive across the book, so, clearly, something else is picking that up. On the property side, are you guys still getting positive exposure adjustments from, like, insured value adjustments, or is that really just kind of a 2023 catch-up thing that's already happened?

Speaker Change: I guess, if I look at the overall exposure is still positive across the book.

Speaker Change: Clearly something else is.

Picking that up on the property side are you guys still getting.

Speaker Change: Positive exposure adjustments from <unk>.

Speaker Change: Insured value adjustments or was that really just kind of a 2023 cash flow payments already happened.

Gregory Cheshire Toczydlowski: And I guess if I look at the overall exposure still positive across the book, so clearly something else is picking that up on the property side. Are you guys still getting positive exposure adjustments from, like, insured value adjustments? Or is that really just kind of a 2023 type of thing that's already happening?

Greg Toczydlowski: Yeah, as you can imagine, it's somewhat linear with inflation, Ryan. So 2023, we had some record results of trying to keep up with the replacement costs and building materials. So it's down somewhat from 2023, but still up overall.

Speaker Change: Yes, as you can imagine it's somewhat linear with inflation Ryan. So 23, we had some record results of trying to keep up with the replacement cost and building materials. So it's down somewhat from 'twenty, three but still up overall.

Speaker Change: Hey, Ryan as a macro comment if you look at that exposure, it's easy to get very focused on recent periods, but if you look at that number over time, it's a it's a pretty healthy number that I think is consistent with what is today a pretty healthy economy.

Alan Schnitzer: Hey, Ryan, as a macro comment, if you look at that exposure, you know, it's easy to get very focused on recent periods, but if you look at that number over time, it's a pretty healthy number that I think is consistent with what is today a pretty healthy economy.

Gregory Cheshire Toczydlowski: Yeah, as you can imagine, it's somewhat linear with inflation, Ryan. So, at 23, we had some record results of trying to keep up with replacement costs and building materials. So it's down somewhat from 23, but still up overall. Ryan is a macrocom

Ryan Tunis: Thank you.

Ryan Tunis: Okay.

Ryan Tunis: Your next question comes from the line of Meyer Shields with <unk>. Your line is open.

Operator: Your next question comes from the line of Meyer Shields with KBW. Your line is open.

Alan David Schnitzer: Ryan, as a macro comment, if you look at that exposure, it's easy to get very focused on recent periods, but if you look at that number over time, it's a pretty healthy number that I think is consistent with what is today a pretty healthy economy.

Meyer Shields: Great, thanks. If I can stick with property for a second. Last year, when we tracked renewal pricing changes, it sort of peaked in Q2 and Q3, and I'm wondering whether there's a seasonal element to that, or we should just sort of follow that curve to anticipate smaller rate increases because of the reduced indicated need over the course of 2024.

Meyer Shields: Great. Thanks, if I can stick with property or affected last year, when we track renewal pricing changes it sort of peaked in the second and third quarter and I'm wondering whether there's a seasonal element to that or we should just sort of follow that curve to anticipate smaller rate increases because of the reduced.

Meyer Shields: Your next question comes from the line of Meyer Shields with KBW. Your line is open.

Meyer Shields: Great, thanks. If I can stick with property for a second. Last year, when we tracked renewal pricing changes, it sort of peaked in the second and third quarters, and I'm wondering whether there's a seasonal element to that, or we should just sort of follow that curve to anticipate smaller rate increases because of the reduced indicated need over the course of 2024.

Meyer Shields: Takeda need over the course of 2024.

Greg Toczydlowski: Meyer, yeah, there really isn't a seasonal element of pricing overall. You know, our field underwriters are gonna look at the exposure at hand and, you know, the renewal book will change over time as we write incremental new business. And so overall, it's dependent on the exposures that come up for that particular quarter. That's more of the dynamic than any seasonality.

Yes, there really isn't a seasonal element of pricing overall, you know our field underwriters are going to look at the exposure at hand in the renewable book will change over time, as we write incremental new business and so overall, it's dependent on the exposures that come up for that particular quarter, that's more of a.

Gregory Cheshire Toczydlowski: Mark, yeah, there really isn't a seasonal element in pricing overall, you know, our field underwriters are going to look at the exposure at hand, and the renewal book will change over time as we write incremental new business. And so overall, it's dependent on the exposures that come up for that particular quarter. That's more of a dynamic than any seasonality.

Meyer Shields: Dynamic than any seasonality.

Dan Frey: Yeah, Meyer, it's Dan. I'll just add it, in case your question is not just seasonality of pure price change, but within the property line, there's some seasonality of its mix on a written premium basis. And to your point, and you can see it in the financial supplement, you know, the second and third quarters tend to be relatively higher levels of commercial property compared to what comes up in Q1 and Q4.

Meyer Shields: Yes mayor, it's Dan I'll just add in case. Your question is not just seasonality of pure price change, but within the property line. There is some seasonality of it's mix on a written premium basis and to your point and you can see it in the financial supplement the second and third quarters tend to be relatively higher.

Daniel Stephen Frey: Yeah, Mayor, it's Dan. I'll just add it in case your question is not just seasonality of pure price change, but within the property line, there's some seasonality of its mix on a written premium basis. And to your point, and you can see it in the financial supplement, you know, the second and third quarters tend to be relatively higher levels of commercial property compared to what comes up in Q1 and Q4.

Meyer Shields: Levels of commercial property compared to what comes up in Q1 and Q4.

Meyer Shields: Okay.

Meyer Shields: Okay, that's very helpful. Thank you. If I can switch gears, I wanted to talk a little bit about workers' compensation reserve releases, because based on the statutory numbers, there were, like, $900 million of releases in 2023, and I think you said less than $100 million this quarter. So that's slowing down. I was hoping you could maybe break that down, either by accident year or the difference between actual claim emergence versus indications.

Meyer Shields: Okay. That's very helpful. Thank you if I can switch gears I wanted to talk a little bit about workers' compensation reserve releases.

Meyer Shields: On the cash.

Meyer Shields: Statutory numbers are like $900 million of releases in 2023, and I think you said less than 100. This quarter. So thats slowing down I was hoping you could maybe break that down either by accident year or.

Meyer Shields: Okay, that's very helpful. Thank you.

Meyer Shields: If I can switch gears, I wanted to talk a little bit about workers' compensation reserve releases, because based on the statutory numbers, there were like 900 million releases in 2023, and I think you said less than 100 this quarter. So that's slowing down. I was hoping you could maybe break that down either by accident year or the difference between actual claim emergence versus indication.

Meyer Shields: Or the difference between actual claim emergence verses indications.

Speaker Change: Yeah, Meredith stands so again I'm going to resist the temptation to do it by accident year, its multiple accident years in comp.

Dan Frey: Yeah, Meyer, it's Dan. So again, I'm gonna resist the temptation to do it by accident year. It's multiple accident years in comp, as it normally is. We're really just going through the same robust and disciplined review process every quarter in comp and in every line. We'll go through the latest data. We'll look at how it might have varied from what our actuarial models would have expected, then we'll do our best to determine the reasons why the actual varied from expected and book the necessary adjustments accordingly, and the number's just sort of gonna be what it's gonna be. And if you think about this quarter versus last quarter or this quarter versus next quarter in any particular line, prior reserve development might be more, might be less. We'll wait and see what the data tells us.

Speaker Change: As it normally is.

Speaker Change: We're really just going through the same.

Speaker Change: Robust and disciplined review process every quarter and comp and in every line will go through the latest data, we'll look at how it might have varied from what our actuarial models would've expected then we'll do our best to determine the reasons why the actual varied from expected and booked the necessary adjustments accordingly, and the numbers just sort of going to.

Daniel Stephen Frey: Yeah, Mayor, it stands. So again, I'm going to resist the temptation to do it by accident here. It's multiple accident years in comp, just like it normally is. We're really just going through the same robust and disciplined review process every quarter and comp and in every line. We'll go through the latest data, we'll look at how it might have varied from what our actuarial models would have expected, and we'll do our best to determine the reasons why the actuals varied from expected and book the necessary adjustments accordingly.

Speaker Change: What it's going to be in.

Speaker Change: If you think about this quarter versus last quarter or this quarter versus next quarter or in any particular line.

Speaker Change: Prior year reserve development might be more might be less we'll wait and see what the data tells us.

Dan Frey: But it's more of the same in terms of thematically, what's coming through. We have continued to make assumptions around what long-term severity is gonna be. We've had severe assumptions around what frequency is gonna be. The net of those things has been some more good news in the first part of this year.

But it's more of the same in terms of thematically, what's coming through. We have continued to make assumptions around what long-term severity is gonna be. We've had severe assumptions around what frequency is gonna be. The net of those things has been some more good news in the first part of this year.

Speaker Change: But it's more of the same in terms of somatic Lee what's what's coming through we have continued to make assumptions around what the long term.

Speaker Change: Severity is going to be <unk>.

Daniel Stephen Frey: And the number is just sort of going to be what it's going to be. If you think about this quarter versus last quarter or this quarter versus next quarter in any particular line, Prior Reserve Development might be more, might be less; we'll, we'll wait and see what the data tells us. But it's more of the same in terms of thematically what's coming through. We have continued to make assumptions around what the long-term severity is going to be, and we have assumptions around what the frequency is going to be. The net of those things has been some more good news in the first part of this year.

Speaker Change: Assumptions around what frequency is going to be the net of those things is there's been some more good news in the first part of this year.

Alan Schnitzer: Meyer, I'll also add that as we, you know, one part of our consideration process as we go through this is to make sure that we're, you know, appropriately reflecting our thoughts about uncertainty. So that's, you know, just something to keep in mind.

Speaker Change: I'll also add that as we you know one part of our consideration processes. We go through this is to make sure that we're appropriately reflecting our thoughts about uncertainty. So that's just something to keep in mind.

Speaker Change: Okay. That's very helpful. Thank you so much.

Meyer Shields: Okay, that's very helpful. Thank you so much.

Speaker Change: Your next question comes from the line of Mike Zaremski of BMO. Your line is open.

Operator: Your next question comes from the line of Mike Zarembski of BMO. Your line is open.

Michael David Zaremski: Hey, Greg good morning.

Greg Toczydlowski: Hey, great, good morning. On the maybe question on the business insurance segment, you know, when we, when we look at the underlying combined ratio, it's you know, it's shown a nice trend of you know, I guess, improvement versus you know, prior years. And that's kind of despite you all kind of topping off IBNR and kind of adding to reserves on recent vintages. And so just curious about about that dynamic. You know, how is it that your view of kind of the underlying has stayed excellent, kind of and not kind of drifted a bit higher as you've taken some just small actions?

Michael Zaremski: Hey, great, good morning. On the maybe question on the business insurance segment, you know, when we, when we look at the underlying combined ratio, it's you know, it's shown a nice trend of you know, I guess, improvement versus you know, prior years. And that's kind of despite you all kind of topping off IBNR and kind of adding to reserves on recent vintages. And so just curious about about that dynamic. You know, how is it that your view of kind of the underlying has stayed excellent, kind of and not kind of drifted a bit higher as you've taken some just small actions?

Michael David Zaremski: On the maybe question on the business insurance segment.

Daniel Stephen Frey: Merrill, I'll also add that as we consider this, one part of our consideration process as we go through this is to make sure that we're, you know, appropriately reflecting our thoughts about uncertainty. So that's, you know, something to keep in mind.

Michael David Zaremski: Now when we.

Michael David Zaremski: When we look at the.

Michael David Zaremski: Underlying combined ratio.

Michael David Zaremski: It's shown up.

A nice trend.

Michael David Zaremski: I guess improvement versus.

Meyer Shields: Okay, so it's very helpful.

Michael David Zaremski: Prior years, and that's kind of despite.

Michael David Zaremski: Your next question comes from the line of Mike Zaremski of BMO. Your line is open.

Michael David Zaremski: You all kind of topping off.

Michael David Zaremski: <unk> and kind of adding to reserves on recent vintages and so just curious about that.

Michael David Zaremski: Hey, great morning.

Alan David Schnitzer: On the maybe question on the business insurance segment, you know, when we look at the underlying combined ratio, it's shown a nice trend of, I guess, improvement versus prior years, and that's kind of despite you all kind of topping off IV&R and kind of adding to reserves on recent vintages. And so just curious about that dynamic; how is it that your view of the kind of the underlying has stayed excellent, kind of, and not kind of drifted a bit higher as you've taken some just small actions? Is it, you know, is it, and, you know, is it just... Pricing power has been, you know, you think just much higher than the lost cost trend or any color that would be helpful.

Michael David Zaremski: That dynamic.

Michael David Zaremski: Or was it that your view of kind of the underlying has stayed excellent kind of.

Michael David Zaremski: And not kind of drifted a bit higher as you've taken some just small.

Actions as it is.

Greg Toczydlowski: Is it, you know, is it just pricing power has been, you know, you think just much higher than loss cost trend? Or just any color you can add would be helpful.

Is it, you know, is it just pricing power has been, you know, you think just much higher than loss cost trend? Or just any color you can add would be helpful.

Jeff: This is Jeff.

Jeff: Pricing power has been you know you think just much higher than loss cost trend or any color that would be helpful.

Alan Schnitzer: Let me, let me start, and I'll turn it over to you, Dan. So, we understand that sometimes the investment community can get very focused on a couple of metrics as you think about what drives it, but that's really not the way it comes together. It comes together through all the things that impact margins. And so, you know, if you look at the excellent result this quarter, earned pricing was a significant benefit, favorable mix was a little bit of a benefit. And then there were some small items going the other way that partially offset, you know, some of that benefit. As Dan mentioned, you know, we booked a little bit more IBNR as a reflection of uncertainty, you know, a little bit of non-cat weather, a little bit of discrete large loss activity.

Jeff: Let me start and I'll turn over to you Dan So.

Daniel Stephen Frey: We understand that sometimes the investment community can get very focused on a couple of metrics as you think about what drives it but but that.

Daniel Stephen Frey: It's really not the way it comes together it comes together through all the things that that impact margins and so if you look at there.

Daniel Stephen Frey: Let me start and I'll turn it over to you, Dan. We understand that sometimes the investment community can get very focused on a couple of metrics as you think about what drives it, but that's really not the way it comes together. It comes together through all the things that impact margins. So if you look at the excellent result this quarter, earned pricing was a significant benefit, favorable mix was a little bit of a benefit, and then there were some small items going the other way that partially offset some of that benefit.

Daniel Stephen Frey: Excellent result, this quarter earned pricing was a significant benefit favorable mix was a little bit of a benefit and then there was some small items going the other way that partially offset some some of that benefit as Dan mentioned, we booked a little bit more IBM is a reflection of uncertainty.

Daniel Stephen Frey: Yeah, a little bit of non cat weather, a little bit of discrete large loss activity, none of those things significant and.

Alan Schnitzer: None of those things significant, and, you know, as you can tell from the fact that it, you know, is an excellent and improving number. But, you know, every quarter, there are just a bunch of factors that add up and puts and takes.

None of those things significant, and, you know, as you can tell from the fact that it, you know, is an excellent and improving number. But, you know, every quarter, there are just a bunch of factors that add up and puts and takes.

Daniel Stephen Frey: As Dan mentioned, we booked a little bit more IBNR as a reflection of uncertainty, a little bit of non-cat weather, a little bit of discrete large loss activity, none of those things significant. And as you can tell from the fact that it was an excellent and improving number, but every quarter there are just a bunch of factors that add up and put and takes. Yeah, that's right.

Daniel Stephen Frey: As you can tell from the fact that it is an excellent and improving number but every quarter. There's there are just a bunch of factors that that add up and puts and takes.

Dan Frey: Yeah, that's right. And I think the only thing I'd add to that, and I'd sort of confirm your premise in the question, Mike, is it's really a very strong pricing environment. If you go back and look at BI commentary over the last year or two, it's one of the reasons we've been so pleased to see retention remain as strong as it has, 'cause we love the profile of the book. And we're happy to be retaining it, happy to get pricing on top of it, and that's improving margins. And then in any quarter, you know, it's gonna be impacted by some of the things that Alan just mentioned.

Speaker Change: Yes, that's right and I think the only thing I'd add to that and I'd sort of confirm your premise and the question. Mike is it's really a very strong pricing environment and if you go back and look at VA commentary over the last year or two that's one of the reasons. We've been so pleased to see retention remain as strong as it has because we love the profile.

Michael David Zaremski: And I think the only thing I'd add to that, and I sort of confirm your premise in the question, Mike, is that it's really a very strong pricing environment. If you go back and look at VI commentary over the last year or two, it's one of the reasons we've been so pleased to see retention remain as strong as it has, because we love the profile of the book, and we're trying to... So we're happy to be retaining them, happy to get pricing on top of it. And that's improving margins. And then in any quarter, you know, it's going to be impacted by some of the things that Alan just mentioned.

Speaker Change: <unk> of the book.

Speaker Change: And we're trying to.

So we're happy to be retaining it happy to get pricing pricing on top of it and thats improving margins and then in any quarter, it's going to be impacted by some of the things that Alan just mentioned.

Speaker Change: Okay.

Michael Zaremski: Okay. That's helpful. My last follow-up is on maybe more on homeowners, personal lines. You know, given the, you know, what seems like continued trend of higher catastrophe losses, any changes you're seeing in the industry or that Travelers trying to implement on terms and conditions, such as roof replacement or, are there any trends there we should be thinking about? Thanks.

Speaker Change: That's helpful. My last follow up is on.

Speaker Change: Maybe more on homeowners personal lines.

Speaker Change: Given the.

Speaker Change: But it seems like continued trend of a higher.

Michael Frederick Klein: Okay, that's helpful. My last follow-up is maybe more on homeowners' personal lines. You know, given the, you know, what seems like a continued trend of higher capacity losses, any changes you're seeing in the industry or the travelers trying to implement on terms and conditions, such as roof replacement? Are there any trends there we should be thinking about? Thanks.

Speaker Change: Catastrophe.

Speaker Change: <unk> any changes youre seeing in the industry or the travelers trying to implement on on terms and conditions.

Speaker Change: Such as roof replacement or are there any trends there we should be think about thanks.

Speaker Change: Thanks.

Speaker Change: Sure Mike its Michael absolutely I think if you.

Michael Klein: Sure, Mike, it's Michael. Absolutely. I think if you, you know, if you dig underneath our comments around non-rate actions, there's a variety of things that we're executing on, and many of which we're seeing across the industry. And examples include, first of all, eligibility, right? Based on an evaluation of the exposure, also eligibility on age of roof, underwriting restrictions around things like roof condition and tree overhang. Our primary approach on sort of risk sharing, if you will, is really to focus on AOP and wind/hail/tornado deductibles. We've implemented higher wind/hail/tornado deductibles in virtually every severe convective storm-exposed state across the country. I think the last count we're up to, I think, 21 states where we've increased deductibles to help to deal with the exposure.

Sure, Mike, it's Michael. Absolutely. I think if you, you know, if you dig underneath our comments around non-rate actions, there's a variety of things that we're executing on, and many of which we're seeing across the industry. And examples include, first of all, eligibility, right? Based on an evaluation of the exposure, also eligibility on age of roof, underwriting restrictions around things like roof condition and tree overhang. Our primary approach on sort of risk sharing, if you will, is really to focus on AOP and wind/hail/tornado deductibles. We've implemented higher wind/hail/tornado deductibles in virtually every severe convective storm-exposed state across the country. I think the last count we're up to, I think, 21 states where we've increased deductibles to help to deal with the exposure.

Michael: Can you dig underneath our comments around non rate actions there is a variety of things.

Michael: That we're executing on.

Michael Frederick Klein: Sure, Mike, it's Michael. Absolutely. I think if you, you know, if you dig underneath our comments around non-rate actions, there's a variety of things that we're executing on, and many of which we're seeing across the industry. And examples include, first of all, eligibility, right, based on an evaluation of the exposure, as well as eligibility on the age of the roof, and underwriting restrictions around things like roof condition and tree overhang. Our primary approach to this sort of risk sharing, if you will, is really to focus on AOP and wind hail tornado deductibles.

Michael: And many of which we're seeing across the industry and examples include.

First of all eligibility right based on an evaluation of the exposure.

Michael: Also eligibility on age of roof.

Michael: Underwriting restrictions around things like roof condition and tree overhang.

Michael: Our primary approach on on sort of risk sharing if you will is really to focus on.

Michael: And wind Hail tornado deductibles are we've implemented higher when inhaled tornado deductibles in virtually every.

Michael Frederick Klein: We've implemented higher wind hail tornado deductibles in virtually every severe convective storm-exposed state across the country. I think the last count was up to, I think, 21 states where we've increased the deductible to help to deal with the exposure. And then, you know, managing distribution and managing appetite to manage aggregation of exposure, you know, within a local or state by state geography. So really, those are some examples of the variety of actions taken from a non-rights perspective, which is really what we're referring to when we talk about managing growth and improving profitability and property. Your next question comes from the line of Michael Phillips with Oppenheimer.

Michael: Severe convective storm exposed to state across the country I think the last count we're up to I think 21 states, where we've increased.

Michael: Deductible to help to deal with the exposure.

Michael Klein: And then, you know, managing distribution and managing appetite to manage aggregation of exposure, you know, within a local or a state-by-state geography. So really, those are some examples of the variety of actions we're taking from a non-rate perspective, which is really what we're referring to when we talk about managing growth and improving profitability and property.

And then, you know, managing distribution and managing appetite to manage aggregation of exposure, you know, within a local or a state-by-state geography. So really, those are some examples of the variety of actions we're taking from a non-rate perspective, which is really what we're referring to when we talk about managing growth and improving profitability and property.

Michael: And then.

Michael: Managing distribution and managing appetite to manage aggregation of exposure within a local or a state by state geography. So really those thats. Those are some examples of the a variety of actions were taken from our non rate perspective, which is really what we're referring to when we talk about managing growth and improving profitability in <unk>.

Michael: Operator.

Thanks.

Michael Zaremski: Thanks.

Thanks.

Michael: Your next question comes from the line of Michael Phillips with Oppenheimer. Your line is open.

Operator: Your next question comes from the line of Michael Phillips with Oppenheimer. Your line is open.

Thanks, Good morning, everybody.

Michael Phillips: Thanks. Good morning, everybody. Totally different turn here. Florida homeowners market, obviously a market you've not been a big player in. I'm wondering if any of the reforms that have been taking place in the past couple of years have given you pause to maybe revisit that?

Michael Phillips: Totally different turn here, Florida homeowners market.

Michael Wayne Phillips: Your next question comes from the line of Michael Phillips with Oppenheimer. Your line is open.

Michael Phillips: Obviously, the market has not been a big player and I'm wondering if any of the reforms that have been taken place in the past couple of years of giving pause to maybe revisit that.

Michael Frederick Klein: Sure, great, great question. And certainly something that we spend time evaluating. What I would say is, certainly reforms in Florida, and some of the depopulation of citizens in Florida are certainly things that make Florida look better than it has in the past, but it is still a highly-exposed geography. It is still a place where we think the risk reward is not in balance. And one of the things, frankly, in Florida that remains a significant concern is the potential assigned risk obligation in the event of a significant catastrophe.

Michael Phillips: Sure Great Great question, and certainly something that we.

Michael Klein: Sure. Great, great question, and certainly something that we spend time evaluating. What I would say is, certainly reforms in Florida, some of the depopulation of citizens in Florida, are certainly things that make Florida look better than it has in the past. But it is still a highly cat-exposed geography. It is still a place where we think the risk-reward is not in balance. And one of the things, frankly, in Florida that remains a significant concern is the potential assigned risk obligation in the event of a significant catastrophe. And so, I think Alan's referred to this in the past. We see, you know, signs of improvement in the state, but it's gonna take more than what we've seen.

Speaker Change: Spend time.

Speaker Change: <unk>, what I would say is.

Speaker Change: Certainly reforms in Florida, some of the depopulation of citizens in Florida are certainly things that make Florida.

Speaker Change: Look better than it has in the past, but it is still a highly cat exposed geography.

Speaker Change: It is still a place where we think.

Speaker Change: The risk reward is not in balance and one of the things frankly in Florida that remains a significant concern.

Speaker Change: As the potential assigned risk obligation in the event of a significant catastrophe.

Michael Frederick Klein: And so, and I think Alan has referred to this in the past, we see, you know, signs of improvement in the state, but it is going to take more than what we have seen. And one of the things that it causes you to think about is whether or not you can compete in Florida on an admitted basis versus an excess and surplus lines basis. So those are all some of the considerations in Florida.

And so and I think alan's referred to this in the past we see.

Speaker Change: Signs of improvement in the state, but it's going to take more than what we've seen and one of the things that it causes you to think about is whether or not you can compete in Florida on admitted basis versus an excess and surplus lines basis. So those are all some of the considerations around Florida.

Michael Klein: One of the things that it causes you to think about is whether or not you can compete in Florida on an admitted basis versus an excess and surplus lines basis. Those are all some of the considerations around Florida. The upshot for us is, while we do see those signs of improvement, we haven't seen enough change to cause us to change our perspective on wanting to, you know, reopen for new business and property in Florida.

One of the things that it causes you to think about is whether or not you can compete in Florida on an admitted basis versus an excess and surplus lines basis. Those are all some of the considerations around Florida. The upshot for us is, while we do see those signs of improvement, we haven't seen enough change to cause us to change our perspective on wanting to, you know, reopen for new business and property in Florida.

Michael Frederick Klein: The upshot for us is while we do see those signs of improvement, we haven't seen enough change to cause us to change our perspective on wanting to, you know, reopen for new business and property in Florida. Yeah, the TOR reforms that they enacted were an excellent start. We certainly would like other states to follow suit.

Speaker Change: The upshot for US is while we do see those signs of improvement we haven't seen enough change to.

Speaker Change: To cause us to change our perspective on wanting to.

Speaker Change: Reopened for new business and property in Florida.

Alan Schnitzer: Yeah, the tort reforms that they enacted, we think were an excellent start. We'd certainly love other states to follow suit because we think regulatory reform is important, as it relates to affordability, not just of insurance, but of homeownership and autos. But there are some other structural things in the state that just make it difficult at the moment. We'll continue to reevaluate it.

Our reforms they enacted we think were an excellent start.

Speaker Change: Certainly love other states to follow suit because we think regulatory reform is important as it relates to affordability notches of insurance, but of homeownership in and in autos.

Alan David Schnitzer: Yeah, the TOR reforms that they enacted were an excellent start. We'd certainly love other states to follow suit because we think regulatory reform is important as it relates to affordability, not just of insurance but of home ownership and autos. But there are some other structural things in the state that just make it difficult at the moment. We'll continue to reevaluate it.

Speaker Change: But there are some other structural things in the state that are just make it difficult at the moment will continue to reevaluate it.

Speaker Change: Okay, great. Thank you guys for this particular second question personal auto are you seeing any signs there of kind of just higher attorney involvement and personal auto that give you pause for concern.

Michael Phillips: Okay, great. Thank you, guys. That's perfect color. Second question, personal auto. Are you seeing any signs there of kind of just higher attorney involvement in personal auto that give you pause for concern?

Michael Frederick Klein: Sure, Michael. I would say that, you know, in Q1, it's, you know, first of all, bodily injury is where most attorney involvement occurs. And in Q1, it's the longest tail element of the exposure we see in personal insurance. So concluding anything based on what we saw in the quarter from a bodily injury standpoint is a challenge. But the same, you know, sort of social inflation, litigation, and abuse challenges that Greg has talked about a lot in business insurance, we're not immune to in personal insurance.

Michael Klein: Sure, Michael. I would say that, you know, in Q1, it's you know. First of all, bodily injury is where most attorney involvement occurs. And in Q1, it's the longest tail element of the exposure we see in personal insurance, so concluding anything based on what we saw in the quarter from a bodily injury standpoint is a challenge. But the same, you know, sort of social inflation, litigation abuse challenges that Greg has talked about a lot in business insurance, we're not immune from in personal insurance. We have seen over a longer period of time, increased attorney involvement impact bodily injury. But all that said, if we look at bodily injury results in the quarter, bodily injury loss trends were pretty consistent with what we expected.

Speaker Change: Sure Michael.

Speaker Change: I would say that in Q1, it's first of all bodily injury is where most of attorney involvement occurs.

Speaker Change: And in Q1, it's it's the longest tail element of the exposure, we see in personal insurance, so concluding anything based on what we saw in the quarter from bodily injury standpoint is is a challenge.

But at the same.

Speaker Change: Sort of social inflation litigation abuse challenges that Greg has talked about a lot in business insurance, we're not immune from in personal insurance, we have seen over a longer period of time increased attorney involvement impact bodily injury.

Michael Frederick Klein: We have seen over a longer period of time increased attorney involvement impact bodily injury. But all that said, if we look at bodily injury results in the quarter, the bodily injury loss trends were pretty consistent with what we expected. Okay, thank you very much. Your next question comes from the line of

Speaker Change: But all that said if we look at bodily injury results in the quarter bodily injury loss trends were pretty consistent with what we expected.

Michael Phillips: Okay, thank you very much.

Speaker Change: Okay. Thank you very much.

Speaker Change: Your next question comes from the line of Michael Ward with Citi. Your line is open.

Operator: Your next question comes from the line of Michael Ward with Citi. Your line is open.

Michael Augustus Ward: Your next question comes from the line of Michael Ward with Citi. Your line is open. Thanks. Good morning.

Thanks, Good morning.

Michael Ward: Thanks. Good morning. I was just curious, the growth in commercial auto accelerated pretty meaningfully. Was that mostly price, or how should we think about the pricing environment in that line?

Michael Augustus Ward: Um, I was just curious whether the growth in commercial auto sales accelerated pretty meaningfully. Was that mostly price? Or what should we think?

Michael Augustus Ward: I was just curious the growth in commercial auto are accelerated pretty meaningfully.

Michael Augustus Ward: Was that mostly price or how should we think about that.

The pricing environment in that line.

Michael Augustus Ward: Good morning, Michael.

Greg Toczydlowski: Good morning, Michael. Yeah, it was. The most of the growth that happened from a net written premium change was due to RPC. One thing I would point out, and I referenced a little bit earlier, we do have our new automobile product that we've rolled out across all business insurance in our Express Select underwriting route model, and also in our transactional middle market business, our TCAP product. So we feel, you know, terrific about that latest segmentation, and that should ultimately improve the return profiles on that business overall. But the biggest change was RPC.

Gregory Cheshire Toczydlowski: Good morning, Michael. Yeah, it was. Most of the growth that happened from a net written premium change was due to RPC. One thing I would point out, and I referenced a little bit earlier, we do have our new automobile product that we've rolled out across all business insurance in our express select underwriting route model and also in our transactional middle market business, our TCAP product. So we feel terrific about that latest segmentation, and that should ultimately improve the return profiles on that business overall. But the biggest change was RPC.

Michael Augustus Ward: Yes.

Michael: It was the most of the growth that happened from a net written premium change was due to RPC, one thing I would point out and I referenced a little bit earlier, we do have our new automobile product that we've rolled out across all business insurance in our express select underwriting model and also in our transactional.

Michael: Market business, our T cap products. So we feel terrific about that latest segmentation and that should ultimately improve the return profiles on that business overall book, but the biggest change was RPC.

Daniel Stephen Frey: Hey, Michael, it's Dan. I guess I'll say if you just look at the comment being that, you know, comp was approaching 100 million, the segment was zero, some of it was run off, you could get to an implication of sort of a box around how much the GL must have been. And for whatever it's worth, and I'm not sure how much it's worth, that would tell you that the first quarter number was probably less than some of the magnitude that we saw last year. But again, we'll do a full evaluation again next quarter, and the number will be more or less favorable or unfavorable depending on what the data tells us.

Michael: Okay.

Michael Ward: Great. Great, thank you. And, maybe just, maybe just back to GL. You noted the charges were relatively modest. I guess, just compared to last year's charges, are they similar, less, or any, any other color around that? Thanks.

Speaker Change: Great great. Thank you.

Speaker Change: And.

Michael: Maybe just maybe just back to GL.

Michael: You noted the charges were relatively modest I guess, just compared to last year's charges are they similar last sorry, I mean any other color around that thanks.

Michael: Yeah.

Daniel Stephen Frey: Hey, Michael it's Dan.

Michael Klein: Hey, Michael, it's Dan. I guess I'll say if you just look at the comment being that, you know, comp was approaching 100 million, this segment was zero, some of it was runoff. You could get to an implication of sort of a box around how much the GL must have been. And for whatever it's worth, and I'm not sure how much it's worth, that would tell you that the Q1 number was probably less than some of the magnitude that we saw in last year. But again, we'll do, we'll do a full evaluation again next quarter, and the number will be more or less favorable or unfavorable, depending on what the data tells us.

Daniel Stephen Frey: I guess I'll say, if you just look at the the comment being that comp was approaching $100 million. This segment was zero. Some of it was run off you could get to an implication of sort of a box around how much the GL must have been.

And for whatever its worth and I'm not sure how much it's worth that would tell you that the first quarter number was probably less than some of the magnitude that we saw in last year, but again, we will do we will do a full evaluation again next quarter and the number will be more or less favorable or unfavorable depending on what the data tells us.

Robert Cox: Your next question comes from the line of Robert Cox with Goldman Sachs. Your line is open.

Daniel Stephen Frey: Okay.

Speaker Change: Thank you.

Michael Ward: Thank you.

Speaker Change: Your next question comes from the line of Robert Cox with Goldman Sachs. Your line is open.

Operator: Your next question comes from the line of Robert Cox with Goldman Sachs. Your line is open.

Robert Cox: Hey, thanks. So we saw some data potentially indicating a slowdown in premium growth in the E&S market, and I know Travelers has about $2.5 billion in E&S, and you guys have indicated that margins there are quite attractive. Just curious if you saw any changes in competitive dynamics in ENS or pricing.

Hey, thanks.

Robert Cox: So we saw some data potentially indicating a slowdown in premium growth in the E&S market and I know travelers has about $2 5 billion in E&S and you guys have indicated that margins there are quite attractive.

Robert Cox: Just curious if you saw any changes in competitive dynamics in E&S or pricing.

Gregory Cheshire Toczydlowski: Robert, this is Greg. Yeah, as we've shared with you, underneath that 2.5 billion, we have quite a bit of diverse businesses that drive that, and we didn't really see any material slowdown in the segments that we compete in.

Greg Toczydlowski: Hi, Robert, this is Greg. Yeah, as we've shared with you, underneath that $2.5 billion, we have quite a bit of diverse businesses that drive that, and we didn't really see any material slowdown in the segments that we compete in.

Greg: Robert This is Greg.

Greg: Shared with the underneath that $2 5 billion, we have quite a bit of diverse businesses that drive that and we didn't really see any material slowdown in the segments that we compete in.

Jeffrey Peter Klenk: Okay, got it. And maybe secondly, I'm curious as I think you've started to go through some of the re-underwriting of the Corvus book, you know, if you've learned anything material and if there are any major takeaways. Yeah.

Greg: Okay.

Robert Cox: Okay, got it. And maybe secondly, I'm curious, as I think you've started to go through some of the reunderwriting of the Corvus book, you know, if you've learned anything material and if there's any major takeaways.

Speaker Change: Okay got it.

Speaker Change: And maybe secondly.

Greg: Im curious as I think you've started to go through some of the re underwriting of the Corvus book, if you've learned anything material and if theres any major takeaways.

Jeffrey Peter Klenk: Yeah, thanks, Robert. It's Jeff.

Greg: Yes, Thanks, Robert It's Jeff you know, where we're three five months now into our integration, we're feeling really good about bringing and leveraging the capabilities of both organizations.

Michael Klein: Yeah. Thanks, Robert. It's Jeff. You know, we're three and a half months now into our integration. We're feeling really good about bringing and leveraging the capabilities of both organizations. I would tell you that we feel really good about the quality of the profitability of the Corvus book of business. It's consistent, and we're taking some of those capabilities. We've already completed the scans using their proprietary technology to the existing Travelers book of business. Really comfortable with what we're seeing. Thanks for the question.

Jeffrey Peter Klenk: You know, we're three and a half months now into our integration, and we're feeling really good about bringing together and leveraging the capabilities of both organizations. I would tell you that we feel really good about the quality and profitability of the Corvus Book of Business. It's consistent, and we're taking advantage of some of those capabilities. We've already completed the scans using their proprietary technology to the existing Travelers Book of Business, and we're really comfortable with what we're seeing. Thanks for the call.

Jeff: I would tell you that we feel really good about the quality of the profitability of the quarters book of business is consistent and we're taking some of those capabilities. We've already completed the scans using their proprietary technology to the existing travelers book of business really comfortable with what we're seeing thanks for the question.

Speaker Change: Thank you.

Robert Cox: Thank you.

Unknown Executive: I think we have time for one more question. It will... Sorry.

Speaker Change: We have time for one more question.

Operator: We have time for one more question. It will be from Paul Newsome of Piper Sandler. Your line is open. Paul Newsome, your line is open.

Speaker Change: <unk>.

Sorry.

Jon Paul Newsome: It will be from Paul Newsome of Piper Sandler. Your line is open. Paul Newsome, your line is open.

Speaker Change: It will be from Paul Newsome of Piper Sandler Your line is open.

Jon Paul Newsome: Hi, good morning, and thanks for squeezing me in. Maybe just a couple of quick personalized questions. Is it fair to say that the renewal premium change for both auto and home, given what you've already filed and the fact that you're getting closer to, or you've gotten most states to adequacy, that we should see that decelerate fairly meaningfully in the next couple of quarters? And just any thoughts about that so that we aren't...

Yeah.

Speaker Change: Paul Newsome your line is open.

Jon Paul Newsome: Hi, Good morning, Thanks for squeezing me in.

Michael Phillips: Hi, good morning, and thanks for squeezing me in. Maybe just a couple of quick personal lines questions. Is it fair to say that the renewal premium change for both auto and home, given what you've already filed and the fact that you're getting closer to or you've gotten most states to adequacy, that we should see that decelerate fairly meaningfully in the next couple of quarters? And just any thoughts about that so that we aren't surprised.

Jon Paul Newsome: Maybe just a couple of quick personal lines questions.

Jon Paul Newsome: Is it fair to say that the renewal premium change for both auto and home.

Jon Paul Newsome: Given what you've already filed and the fact that youre getting to closer to most states to adequacy.

Jon Paul Newsome: So we should see that decelerate fairly meaningful.

Jon Paul Newsome: Next couple of quarters, and just any thoughts about that.

Michael Frederick Klein: Sure, Paul, it's Michael. So I would separate auto and home. So for auto, you'll see RPC moderate as we go throughout the year, but I wouldn't suggest it's going to be a sharp decline. You know, one of the things that I think is important to think about as you think about RPC over time for us is... We write mostly 12-month policies in auto. And so while someone who writes a lot of six-month policies is going to see RPC accelerate quickly on the front end, they're going to actually see it decelerate more quickly on the back end.

Jon Paul Newsome: Clients.

Michael Klein: Sure, Paul, it's Michael. So I would, I would separate auto and home. So for auto, you'll see RPC moderate as we go throughout the year. I wouldn't suggest it's going to be a sharp decline. You know, one of the things that I think is important to think about as you think about RPC over time for us is we write mostly twelve-month policies in auto. And so while someone who writes a lot of six-month policies is going to see RPC accelerate quickly on the front end, they're going to actually see it decelerate more quickly on the back end. Ours is going to be a more gradual increase and then a more gradual decrease, because we file a rate in May 2023; we're still renewing policies at that same higher rate in April 2024.

Jon Paul Newsome: Sure Paul It's Michael So I would I would separate auto and home so for auto Youll see RPC moderate as we go throughout the year I wouldn't suggest it's going to be a sharp decline.

Michael: One of the things that I think is important to think about as you think about RPC over time for us as well.

Michael: We write mostly 12 month policies in auto.

Michael: And so while someone who writes a lot of six month policies are going to see RPC accelerate quickly on the front end, they're going to actually see it decelerate more quickly on the backend.

Michael Frederick Klein: Ours is going to be a more gradual increase and then a more gradual decrease because we set a rate in May of 2023, and we're still renewing policies at that same higher rate in April of 2024. So just a little bit of context for why I say, you know, it's going to be more of a gradual process of acceleration and Auto-RPM. In property RPC, we don't anticipate a deceleration; we're going to continue to drive rates into the property portfolio in response to increased loss costs, and I would expect RPC to remain relatively consistent through the balance of 2024 in property.

Michael: Ours is going to be a more gradual increase and then a more gradual decrease because we file a rate in may of 2023, we're still reviewing policies at that same higher rate in April of 2024. So.

Michael Klein: So, just a little bit of context for why I say, you know, it's going to be more of a gradual deceleration in auto RPC. In property RPC, we don't anticipate a deceleration. We're going to continue to drive rate into the property portfolio in response to increased loss costs, and I would expect RPC to remain relatively consistent through the balance of 2024 in property.

So, just a little bit of context for why I say, you know, it's going to be more of a gradual deceleration in auto RPC. In property RPC, we don't anticipate a deceleration. We're going to continue to drive rate into the property portfolio in response to increased loss costs, and I would expect RPC to remain relatively consistent through the balance of 2024 in property.

Michael: Just a little bit of context for why I say, it's going to be more of a gradual deceleration in auto RPC in property RPC RPC, we don't anticipate a deceleration we're going to continue to drive rate into the property portfolio in response to increased loss costs.

Michael: And I would expect RPC to remain relatively consistent through the balance of 2024 and property.

Jon Paul Newsome: I did notice that the renewal parade in HOME did come down quite a bit, at least sequentially. Is that just sort of an anomaly, or is it something that...

Paul Newsome: ... I did notice that the renewal rate in home did come down quite a bit, at least sequentially. Is that just sort of an anomaly or is it something to note?

Michael: I did notice that the renewal.

Michael: In home did come down quite a bit sequentially is that just sort of an anomaly or is it.

Michael: Something to note.

Michael Frederick Klein: Sure Paul, so the RPC drop from Q4 to Q1 in property is what we were referring to last year when we talked about the fact that we've made a lot of progress on insurance to value in homes. So when you think about the renewal premium change in personal lines property, it's really driven by two primary things. One is the rate, and then the other is increasing the coverage limit on the dwelling. And in 2022 and 2023, we made dramatic increases in property coverage aid limits in-home.

Michael Klein: Sure, Paul. So, the RPC drop from Q4 to Q1 in property is what we were referring to last year when we talked about the fact that we'd made a lot of progress on insurance to value in home. So when you think about renewal premium change in Personal Insurance property, it's really driven by two primary things. One is rate, and then the other is increase in the coverage limit on the dwelling. And in 2022 and 2023, we made dramatic increases in property Coverage A limits in home. That drove a decent amount of the property RPC.

Speaker Change: Sure Paul So the RPC drop from Q4 to Q1 in property is what we were referring to last year. When we talked about the fact that we've made a lot of progress on insurance to value in home.

Jon Paul Newsome: So when you think about renewal premium change in personal lines property, it's really driven by two primary things one is rate and then the other is increasing the coverage limit on the dwelling.

Jon Paul Newsome: And in 2022 and 2023, we made dramatic increases in property coverage limits in home that drove a decent amount of the property RPC.

Michael Frederick Klein: That drove a decent amount of the property RPC. In my prepared remarks, that's why I mentioned that when you look at that 13.4%, it actually reflects an improvement in rates from last quarter to this quarter. And the drop is really because we've essentially caught up on insurance to value and property. So that's why I say, you're not going to see, you know, a further incremental change in RPC due to that coverage and limit dynamic because that's just going to stay the same. And now what you're looking at is mostly our outlook for the rate of property prices in 2024, which again is to keep it pretty consistent.

Michael Klein: In my prepared remarks, that's why I mentioned that when you look at that 13.4%, it actually reflects improvement in rate from last quarter to this quarter, and the drop is really because we've essentially caught up on insurance to value and property. So that's why I say you're not gonna see, you know, a further incremental change in RPC due to that Coverage A limit dynamic, because that's just gonna stay the same. And now what you're looking at is mostly our outlook for rate in property for 2024, which again, is to keep it pretty consistent.

Jon Paul Newsome: In my prepared remarks, that's why I mentioned that when you look at that 13, 4%.

In my prepared remarks, that's why I mentioned that when you look at that 13.4%, it actually reflects improvement in rate from last quarter to this quarter, and the drop is really because we've essentially caught up on insurance to value and property. So that's why I say you're not gonna see, you know, a further incremental change in RPC due to that Coverage A limit dynamic, because that's just gonna stay the same. And now what you're looking at is mostly our outlook for rate in property for 2024, which again, is to keep it pretty consistent.

Jon Paul Newsome: It actually reflects improvement in rate.

Jon Paul Newsome: Last quarter to this quarter and the drop is really because we've essentially caught up on insurance to value in property. So that's why I say youre not going to see.

Jon Paul Newsome: I'll further incremental change in RPC due to that coverage a limit dynamic because that's just going to stay the same and now what you are looking at is is mostly our outlook for rate and property for 2024, which again is to keep it pretty consistent.

Jon Paul Newsome: Thank you. Your help is always much appreciated.

Speaker Change: Thank you that helps all is much appreciated.

Paul Newsome: Thank you. That helps always. Much appreciated.

Abbe F. Goldstein: Thank you. I will turn the call over to Ms. Goldstein for her closing remarks.

Abbe F. Goldstein: Thank you I will turn the call to Ms Goldstein for closing remarks.

Operator: Thank you. I will turn the call to Ms. Goldstein for closing remarks.

Abbe F. Goldstein: Thank you all very much again for joining us this morning, and, as usual, if there's any follow-up, please feel free to reach out directly to Investor Relations. Have a great day.

Abbe Goldstein: Thank you all very much again for joining us this morning. As usual, if there's any follow-up, please feel free to reach out directly to Investor Relations. Have a great day.

Abbe F. Goldstein: Thank you all very much again for joining us this morning, and as usual if theres any follow up please feel free to reach out directly to Investor relations have a great day.

Unknown Executive: This concludes today's conference call. We thank you for joining us. You may now disconnect your lines.

Speaker Change: This concludes today's conference call. We thank you for joining you may now disconnect your lines.

Operator: This concludes today's conference call. We thank you for joining. You may now disconnect your lines.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Yes.

Q1 2024 Travelers Companies Inc Earnings Call

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