Q2 2025 RLI Corp Earnings Call
Good morning and welcome to the rli Corp second quarter earnings teleconference after Management's prepared. Remarks, we will open the conference up for questions and answers.
Before we get started, let me remind everyone that through the course of the teleconference, our online management may make comments that reflect their intentions beliefs and expectations for the future.
As always, these forward-looking statements are subject to certain factors and uncertainties which could cause actual results to differ materially. Please refer to the risk, factors to described in the company's various SEC filings, including in the annual report on form, 10K as supplemented informs 10 Q. All of which should be reviewed carefully. The company has filed a Form 8K with the Securities and Exchange Commission that contains the press release announcing fourth quarter results.
During the call. Our Ally management May refer to operating earnings and earnings per share from operations, which are non-gaap measures of financial results.
Our allies operating earnings and earnings per share from operations, consist of net earnings after the elimination of, after tax realized gains or losses, and after tax unrealized gains or losses on Equity securities.
Our realized management believes these measures are useful. Engaging core, operating performance across reporting periods, that may not be comparable to other companies definitions of operating earnings,
The form aid kit, contains a Reconciliation between operating earnings and net earnings.
The form AK and press release are available at the company's website at www.rli.com.
Speaker Change: I will now turn the conference over to Raley's. Chief investment officer and Treasurer Mr. Aaron defend Dolla. Please go ahead.
Speaker Change: Good morning. All we hope everyone's having a great summer, we appreciate you joining us to review, rli's results for the second quarter and first half of 2025.
We have the usual participation for today's call.
Speaker Change: Correctly, Thurman, president and CEO.
Jen Clark Chief Operating Officer and Todd Bryant Chief Financial Officer.
Speaker Change: In typical form, our agenda will begin with, Craig offering some overall remarks.
Speaker Change: Todd will outline the financial results and Jen will present color on market conditions, and our product portfolio.
Speaker Change: We will then have the operator open the line for questions, and Craig will close with some final thoughts. Craig
Speaker Change: Well, thank you Aaron and good morning everyone. We appreciate your participation on today's call and look forward to addressing your questions after Todd and Jen walked through our results.
Speaker Change: We are pleased with our second quarter results, which include an 84 and a half combined ratio and underwriting profitability across all segments.
Speaker Change: Our Top Line growth was flat reflecting significant softening in the commercial property Market, we continue to see healthy underline growth across most of our Diversified Niche product portfolio.
Speaker Change: Year-to date book. Value for share has grown 16% inclusive of dividends on an 82, combined ratio and double digit growth in net investment income.
Speaker Change: At Roi.
We take a long-term view with a focus on discipline, continuous, Improvement and sustainability.
Speaker Change: We concentrate on what we can control and adjust our strategy as market conditions evolve.
Speaker Change: For example, in Wheels based exposures, where legal system abuse is prevalent, we're taking significant rate and being more selective.
Speaker Change: In property, we're choosing not to compete with the risk. Reward profile doesn't make sense.
Speaker Change: Strong companies are willing to address challenges head-on pulling back where needed and leading into the products where the risk return is in balance.
Speaker Change: That's how we operate and how we are incentivized prioritizing profitability and long-term value creation over short-term results.
Speaker Change: Despite some select challenges, we still see attractive opportunities to disease across most of our portfolio.
Speaker Change: Our success is not measured by being the largest market, but by consistently delivering strong profitable results, to our shareholders and serving our customers with expertise and Care through all Market Cycles.
Speaker Change: That is what we will continue to focus on as we have for the last 60 years.
Speaker Change: With that, I will turn it over to Todd. We'll provide some detail on our financial results. Scott, good morning everyone.
Scott: Yesterday, we reported second quarter operating earnings of 84 cents per share.
Scott: Supported by solid underwriting performance and a 16% increase in investment income.
Scott: As a reminder per share data, reflects the 2 for 1 stock split, that was due to shareholders at the end of 2024 and distributed in January.
Scott: Underwriting income benefited from continued growth and earned premium.
Scott: For bolstered by favorable development on prior years Reserves.
Scott: Across all 3, segments.
Scott: Our total combined ratio was 84.5 up from 81.5 last year, reflecting reflecting modest increases in the underlying loss and expense ratios. Though, both remain in line with expectations.
Scott: Overall Top Line was flat between periods, our casually ensuring segments posted growth.
Scott: While property declined reflective in of increased competition and rate. Pressure on catastrophe exposed business.
On a gap basis. Second quarter net earnings total $1.34 per share versus 89 cents in Q2 202024.
Scott: This comparison was heavily influenced by the relative price performance of equity Securities between periods.
Scott: At 44 million of unrealized equity, gains this quarter outpaced, the 4 million of unrealized gains for the same period last year.
During the segment performance property experienced a 10% decline in Gross premiums which was influenced by rate decreases in ens property.
However, on marine and Hawaii homeowners products. Continue to deliver growth.
Scott: Jim will provide additional detail on sub-segment market conditions shortly.
Contributing the properties, bottom line was 10 million unfavorable prior years development.
Scott: Including 5 million in reductions related to Hurricane Helen.
Scott: Were losses continued to Trend below initial estimates.
Scott: Storm losses and catastrophe events in the quarter till 12 and a half million dollars which was marginally below last year.
Scott: While the loss ratio improved slightly the expense ratio increased 3 points, driven by changes in our reinsurance and higher acquisition related expenses.
All in property, continued, its strong performance, posting a 62 combined ratio in the quarter.
Scott: in casualties gross premiums Advanced 7% and we posted a 96.5 combined ratio for Q2
Scott: the segment benefited from 15 and 1.5 million of favorable prior years. Reserved development.
Scott: Partially offset by a higher, underlying loss ratio, and a 1, and a half mil, 1 and a half, and 1, and a half million. And Q2 catastrophe, losses related to certain package policies.
Scott: Prior Year's Reserve benefits were realized across multiple products with notable contributions from general, liability excess liability and personal umbrella.
Scott: We continue to closely monitor Wheels, based exposures an area, we've discussed previously at length.
Scott: Reserve actions taken in the fourth quarter of 2024 appear to be sufficient and we continue to approach more challenged coverages with rate increases and underwriting actions to address the current loss environment.
Scott: Shitties gross. Premium was up 7% over last year with all sub-segments experiencing growth.
Scott: The combination for the quarter was 87.9 and underwriting income benefited from 2.3 million of favorable Reserve development.
The expense ratio Rose reflecting higher, acquisition costs and increase investments in technology and people.
Scott: Turning to Investments operating cash flow for Q2 total 175 million up to 33 million from last year, providing a solid foundation for continued portfolio activity.
Scott: April's Market volatility offered an opportunity to attractively add to our Equity allocation while the balance of the quarter was again focused on high-quality fixed income or treasuries and corporate bonds governed, most of the effort to add income.
Scott: average purchase yields were 4.7% in the quarter which is 70 basis points above our book, yield
Scott: on a total return basis.
Scott: The Market's welcome recovery in May and June resulted in a positive 2.9% return for the quarter. Tapping, an excellent first half of the year.
Scott: Beyond our traditional invested assets. Our investy earnings total 2.5 million in the quarter.
Scott: Incorporating comprehensive earnings of 1.55 cents per share and adjusting for dividends book, value per share, increased 16% from year in. 2024, all in, we are pleased with our second quarter and first half performance. And with that, I'll turn the call over to Jen. Jen. Thank you, Todd.
Jen: 2 of our 3 segments. Experienced Sally growth in the corner. For the 7% increase in previous both casually and true.
Jen: This was offset by anticipated headwinds for ens property, where market conditions, remain challenging.
Jen: Topline goals that are online.
Jen: Our product leaders who are closest to the business. To determine when is the right time to grow to take advantage of attractive market conditions. And when it is time to shrink, because terms and conditions reduce the likelihood of producing an underwriting process.
Jen: We do not have a targeted mix of business between property security and Casualty again, the mix that we produce is based on the relative opportunities in each of those segments and has fluctuated materially over Market Cycles.
Jen: And the most recent hard Market, we grew our EMS property groups to take advantage of the attractive market conditions, until it became a large part of our product portfolio as it was producing considerable returns.
Jen: Now, at positions, softened our underwriter, their emphasizing selection and discipline.
Jen: In total the property segments premium declined by 10% in the quarter influenced by wind rate, which were down 13% compared to last year.
Jen: Competition has increased from mgas and admitted carriers were abundant capacity, has been less disciplined on rate and more importantly, sharing the conditions.
Jen: Entering the hurricane season. Our exposure is down 10% from year end while race on business, we can write are still above our Benchmark, pricing and include acceptable, terms and conditions.
Jen: The earthquake Market is also challenging as more small businesses in California, decide to self-insure this peril.
Submissions are down 7% while rates are down 9% in the quarter.
Our broker is no we are a stable Market providing excellent service. We will pay what we owe when claims arrived. We are well, positioned to support our insurers, should there be events that hit our Shores, this year. And we continue to resolve claims from prior events in a timely and dependable manner.
Jen: Our other products offers within the property segments, continue to find profitable growth opportunities.
Jen: Marine premium was up 2% in the quarter driven by Inlet learning. While competition has increased in the ocean cargo space.
Jen: Hawaii homeowners premium is up 35% this quarter. As we continue to roll over business from markets that withdrew or retracted after the Maui wildfires.
Jen: Our team's dedication to service is helping us win new business and we achieve a 16% rate increase in the quarter.
Jen: Loss activity, for these products has been as expected and they contributed nicely to our bottom line.
Jen: The Surety statement premiums through 7% in the corner led by our Commercial Insurance Evoque.
We renewed our reinsurance treaty effective April 1st and purchase more limits. So we can offer additional support as our accounts bonding needs grow.
Jen: Our contracts are in a premium moderated in the quarter after strong growth of the last few years.
Jen: We are continuously reviewing credit quality and supporting contractors to build projects that are appropriately signed for their capabilities.
Jen: Several new bonding requirements, continuous marketing, efforts, and easy to use digital tools for helping us win business in the sense.
Jen: We're looking for more growth in the high performing segment and our focus on enhancing our capabilities for our producers and principles.
Jen: We are also improving processes for our undergrads to make more time to focus on underwriting and servicing our customers.
Jen: casually premium also grew by 7% in the quarter personal umbrella, led the way with 24% growth including a 9% rate increase
Jen: We have an approved rate filing with effective date starting July 1st, that will positively impact the second half of this year.
Jen: New business policy counts in certain venues have flows as we have increased required underlying limits and work with our producers, to diversify our business geographically.
Jen: Yeah, continuously learning from our data and refining our approach to the market.
Jen: Our enf casualty division which writes primary and excess liability coverage, generate a, strong growth and under a prophet in the quarter.
Jen: The top line was up 13% as we stay in front of our producers and ask for business, resulting in an increase in submissions of over 20%.
Jen: Although we're seeing opportunities for growth throughout the country, we are competing against both standard and non-admitted markets, for our leveraging, their Auto offering to win the liability business.
Jen: We are a bit more cautious on auto coverages as this exposure requires, specialized undering to be successful.
Jen: Our primary and excess teams collaborate to offer our producers to comprehensive service oriented Solutions.
Jen: Speaking of Auto exposure rates in our transportation division, what 12% in an environment that remains highly competitive
Jen: We have had a handful of accounts cancel and move, midterms for Less freedom, and have lost accounts that renewed due to competition.
Jen: We manage the business with the bottom line in mind and have leaned in to helping our insurers, improve their safety. Practices through our in-house experience, loss control team, we believe our focus on safety is a differentiating and attracts betterment.
Jen: Severity in the Auto industry. We use both rate increases and risk selection to Target a profitable bottom line.
Jen: For all auto coverages across our portfolio. We achieve 14% rate increases in the second quarter.
Jen: We are sharing information across business units related to application questions underwriting guidelines and claim experience. So our Underwriters can learn from each other.
Jen: We are being more selective on offering Auto liability coverage, in our packaged products.
Jen: Overall, we had a great underlying result in the second quarter. We stuck to our business model of making decisions with our bottom line, and long-term success in mind.
Jen: We're looking for Underwriters who have a similar mindset and are always open to growing a new classes. So if we if we find the right Talent
Jen: for this upcoming property market conditions, create headwinds for our top lines, we have planted seeds throughout our portfolio that will grow over time under the right conditions.
We value these coverages or found adjacencies that help our producers solve our customers needs.
Jen: We have a strong community that works together to support our customers and each other.
We see opportunities to practically grow in areas of our portfolio, where it makes sense, as we navigate more volatile market conditions,
Jen: And now, I'll turn the call over to the moderator to open it up for questions.
Jen: Thank you, question and answer session will begin at this time. If you are using a speaker-phone, please pick up the handset while pressing any numbers. Should you have a question? Please. Press star 1 on your telephone keypad. Now, if you wish to withdraw your question, please press star 2.
The questions will be taken in the order that they are received.
Speaker Change: And our first question today comes from Gregory Peters at Raymond. James, Gregory your line is open, please go ahead.
Gregory Peters: Great. Good morning everyone. Um, I want to go back to the comments on. Um, you talked about higher acquisition costs in property. Uh, maybe you can just broaden that out. Just give us some color on what's going on. On the acquisition costs front, both in, uh, in in property and in casualty, uh, as in pressure in the casualty side, considering our rates are or is that declining just give us a sense of uh how things are moving. Their
Speaker Change: I'll I'll start a little bit Greg. I think gentle have some additional flavor there.
Speaker Change: There is, there is some pressure, uh, on the commission side. I would say in terms of in property and security, uh, from that standpoint, you are seeing a little bit of a mix shift as well. That's probably more noticeable on the, on the shity side, or right, and less energy. Um, and that came with a fairly low acquisition expense ratio.
I think also on on shy, we talked about it the Jen mentioned it as well in her openers, the investments in the technology, the digital experience, um the you know, customer relationship management, we've invested heavily in there. So you're seeing some in terms of people in terms of Technology, uh, and in terms, you know, some pressure on the, on the commission side as well and both of those segments. And then more generally, if you look at our across all segments, our book value growth in the quarter was was pretty high and some of those retirement and incentive plans, have that the growth and growth value as a component. So that broadly would would cross over all segments from Jim, there's additional flavor there. Yeah, the only thing I would add is we, we did, uh, I'll say buy a little more reinsurance.
Jim: Uh, in terms of filling out a little bit, our Co participation and our cap treaty as well. As the additional limit, we bought insurance, and so that on a net basis that makes our expenses move a little bit more fast.
Um, you know, there's a obviously, well, there's a lot of discussion in the marketplace about, um, the softening of, uh, pricing in certain lines and obviously casualties seems to be holding up. Well, um, maybe you could, um, give us some perspective on on, where the pricing pressure is coming. Is it more in the, the wholesale brokerage channel is
Jim: More the retail Channel. Just give us some perspective on how pricing is shaking out by distribution Channel.
That's an interesting question. I would say, I I'm not sure if we can point to a distribution Channel, we we think about it more in our segments or in the products.
Sometimes it's hard for us to relate rate change, uh, especially if you're trying to compare to other carriers because, you know, that depends on the coverage. We provide, you know, we tailor our coverage, for example, and our enf caching group to where we offer probably Slimmer coverage. We actually charged maybe a little bit less because we're offering less coverage and when you look at our rate change
Jim: Uh, it's a bit unremarkable because we're starting from a position where we tend to make an underlying profit other carriers. Over the last couple years, have disclosed, you know, adverse Development and Construction, uh, liability coverages. And so they're probably needing to get more rate in that space. So we look at it from the standpoint of rate adequacy, uh, we balance, you know, the pressure to give back some rate with kind of the risk selection components. So they are walk away rates. So we have and most of our lines of business that the actuaries help, you know, describe to the underwriters. So that we understand where we're at from a profitability standpoint. And, and where is that loaded to where the market is, at that point? So that's kind of a
Speaker Change: An environment uh, description of what we're dealing with, um, that must be a follow-up question.
Speaker Change: I I I guess just related to that, I'm I'm just trying to get the sense, you know with rates going down in certain lines.
Speaker Change: You know, there's always the profit sharing component and contingent commission component. And I'm just wondering how that settles out, you know, with the downward rate pressure coming in a certain lines of business
Speaker Change: Yeah, if you look at our portfolio we don't have many lines that actually have great decreases going on. At least we have a very small book of work off that that covers our Architects and engineers and So that obviously has weight pressure over the last few years. Uh, in our dno portfolio, our rate for this quarter uh, was actually minus 2%. So it's coming back towards flat and so the only other
Speaker Change: piece of the portfolio to speak of in terms of rate decreases would be the, the ens property components, which I've already spoken of
Speaker Change: Thanks for the answers.
Speaker Change: The next question comes from Matt klett from citizens Maps. Your line is open. Please go ahead.
Speaker Change: Hey, good morning. Um, it's apologies for following up with another kind of softball marshmallow. Uh, you know, Market condition question. Um, I think we got the color on property. I was hoping gender Craig, you could maybe dig in a little more on casualty and then specifically as you look at, let's say some of the Bigger Pockets there, so, you know, transportation and general casualty and things like that. Um, you know what, for lack of a better question. And what any do you think you're in? Like, what, how do you do? Lost, cost Trends. You foresee kind of the need for continued, sizable rate. And a lot of the
Those lines to kind of keep up with lost cost Trend or maybe even get back to an acceptable returns in certain areas. Um or or do you feel maybe we're a little closer like you know a little closer maybe like properties gotten to where, you know you could see the the peak in sight
Speaker Change: So so Matt, I'll start maybe on the transportation front. I think you asked about lost cost Trends. I mean, we still see fairly significant, uh, double digit uh, inflation on on, uh, commercial vehicles.
Speaker Change: uh, you know, we're in the trucking space, the public auto space, the well I'd say bus space more than uh,
Speaker Change: taxes or anything like that. But um, and then some specialty commercial all that stuff. I can tell you our Underwriters are assuming uh double digits lost cost inflation.
Speaker Change: Uh, so that's why I mean, I think Jen reported a I don't remember 12 or 13 or 14% rate increases for the quarter but uh, we continue. That's really the underage are driven by getting those increases. Now we are running into still running into competition there and I know that for previous question was about mga's. I think a little bit we're still seeing a lot of MGA competition on the on the transportation front, the commercial Auto Front, which is shocking. Given you know we think that's like the ground zero for some of this legal system. Abuse
Uh but you know, sometimes people have to feel the pain before they uh learn a lesson. So uh our owners are willing to walk away from the business if they're not getting the increase, they need. Um they're also trying to provide loss control services to keep the the uh the cost down for them. And then I say at the end of the day, some of it's about selection, right? And we think we got some of the best under writers in the business that are narrow and deep and I give them space, they know which accounts they can still. Maybe only get a moderate rate, increase on but still be able to be profitable. Uh whereas there are some maybe 30 40% rate increases to be profitable and in most cases we're probably not going to be the 1 that writes that account.
Speaker Change: and uh,
The biggest pressures on those largest accounts other companies or mgas are looking for premium. And so any accounts that's north of a million dollars in premium is really targeted. Uh and uh and and we have lost a few of those and so our book has shrunk a bit but it's really made up of more smaller uh accounts than as opposed to some of those bigger accounts that we used to have. So there has been a shift of this in our mix, but having said that again, our undergrads are focused on
Rate and risk selection. Uh and both of those are making impact to to make sure that we're staying ahead of Trends in the industry.
Speaker Change: Great. That's very helpful. Thank you. Appreciate it.
Shields: The next question comes from my Shields from KBW. Your line is now away from me. Please go ahead.
Speaker Change: Uh, great thanks and good morning. Um, I think it might have been Janet touched a little bit on mix shift within shorty and I was hoping you could take a little bit deeper, I'm just trying to understand the change in the air loss ratio. You're asking your combined ratio compared to the first 4 because it does look like it was from the expense side.
Speaker Change: So, I'll tell you last year, uh, I think it was in the first quarter, we did.
Speaker Change: Recognize a large Sherry commercial Sherry law since the that affected, the loss ratio, as well as the re we have some reinstatement premium, which would have effectively expense ratio in that first quarter. When you compare 6 months to 6 months as doesn't stand out quite as much, but I think charity in terms of the loss ratio and expense ratio, um, you know, part of it is this additional uh, reinsurance layer that we purchased as of April 1st. And so there's a little more cost with that top layer of reinsurance.
Speaker Change: Um, in terms of the mix, you know, contracts already had grown quite a bit. These last couple of years, both from, uh, our own investment in people and marketing and providing good service but also inflation. You know that um that kind of ran at a higher level, the last few years,
Speaker Change: Um, but commercial has capped up to some extent to. Uh, We've also invested in people in that space and worked, uh, closely with our, um, producers to make sure that we're getting, uh, to see business. Uh, we also have a, a nice portfolio of transactional business, where at least ramped up some of the capabilities available to our producers so they can transact that business online very easily. Uh, so the combination of all those things that are saying has grown our portfolio. Um, I don't actually think the mix was in there has changed that much, uh, with the exception of retracting, a bit from the old oil and gas components, uh, and really shifting more towards, uh, solar farm implementations and things of that nature that, uh, come at a different.
Cost structure.
Speaker Change: Yeah, the the other we did. Yeah, I'm sorry. The other thing on the last slide is is we did have quite a bit.
Speaker Change: Uh, larger favorable development, in the first quarter on Sherry. And in the second quarter, both were favorable. But first quarter was, was up quite a bit. You you see that in the loss ratio? The, the extended ratio, I think, Jen, noted, several things there. Um, it's not significantly different. Um, if I look at the, you know, the commission side premium tax, uh and the other policy acquisition and what it was in the first quarter a bit higher. But those Investments, you know, continue on that technology side I need to do in business is very important. Uh, and then, and investing in in new relationships. I think that was was mentioned so those, those things
Are all things that we're continuing to invest in and and willing to trade a bit that that higher expense ratio for that that very low loss ratio.
Speaker Change: Okay. That that is very helpful. I appreciate that. Um, second question we've had, I guess a couple of states with some torque reform go through and I'm wondering whether at this point, I know it's early that's why I'm asking the question. Is it possible to see any benefits from that in terms of actual loss emergence?
Short reform. Would you be willing? Uh, we help people are patient because I think it's, it's already resulting in reduced rates, certainly in property in Florida, uh, some of its being driven by that and then, uh, also some on caching. It's also, you know, it's a, it's taking a little pressure off, uh, the rate need. So, um, you know, we'd like more states to do it. I don't know that you're going to see it. I don't know, there's a lot of push around third-party litigation financing at least to get more disclosure, uh, across, uh, many different states. I don't know if where we are in regards to that being passed, but we think that's pretty important for the industry. So at least we know what we're dealing with who's on the other side of the table when we're trying to negotiate. Whether it's actually an injured party or it's some Sovereign wealth fund that's investing in our tour system. Uh, which obviously we don't think is a good thing uh for the industry, just drives costs up over the long term and the consumer ends up paying for that. So, not a good thing.
Speaker Change: So um, genuine join in. There is anything good? Okay.
but the apci is very active in trying to
Speaker Change: Trying to Lobby on behalf of the insurance industry, and do good for the long term for the consumer's cost to the consumer.
Speaker Change: Understood, thank you so much.
Speaker Change: As a reminder that star 1 to ask a question today. And the next question comes from Andrew Anderson from Jeffries. Your line is now open. Please go ahead.
Andrew Anderson: Hey, good morning. Uh, I think you've previously talked about construction touching about a third of your business. Could you maybe just um, talk about what you're seeing in that market, as it seems to be maybe slowing but it was a shy premium is still pretty good. And as is the the casualty side. So just maybe some color on what you're seeing in construction and how that may impact. Um the segments
Okay, so it seemed like probably last quarter. There was a bit of a pause as various legislative, uh, priorities were taking place at the federal level. There's kind of Applause of, you know, with, I'm sitting here but I would say in the second quarter of things have calmed down a bit. Uh and so you know, in our construction book, we participate in a lot of different ways, we have units that are focused on public construction. That's more of a shy Division and then we also have units focused on private construction. That's more of our ens and our package. Um, we've got you those in focus on General Contractors, the people who focus on subcontractors, some people focus on, uh, the Contractors Equipment or Builder's risk. So, we look at it from a lot of different angles. Um,
Andrew Anderson: And I would say generally speaking. Uh, the industry appears to be pretty healthy in most regions. I think part of it is that the construction industry is healthy and that's part of our success is that we have emphasized in all of our businesses to physically get out and meet with our producers on a regular basis and continue to ask for business. So that has uh impacted our submissions. And most of our lines of business are submissions and that space are up double digits. Uh, and so you need to take a look at it in order to write it and that's been a very, very positive trend for us. So we're not seeing anything, um, to uh, you know, like like create any caution around the growth of that industry. We think it's pretty healthy at this point, then
Speaker Change: Thanks and then just within casualty, I think if we take the 1 and a half million of of cat loss, it kind of gets to a a flat xcat XP yd loss ratio quarter over a quarter. Um, I guess 1 is that a good way of thinking about it for maybe the balance of of the year because it seems that rate is maybe slowing and I would imagine you're still holding it pretty high. Uh, conservative loss Trend assumption.
Yeah, we have, I think if you look Andrew, we have tended to, to be cautious on on, on how we book reserves. I don't think that, that is something I would expect to change. I think it's been mentioned that where, we, we're getting great, uh, what we believe in excess of of lost Trend, uh, but we're going to continue.
Speaker Change: Continue to be cautious there. Uh particularly on the, on the wheels based exposure that that'll continue.
Speaker Change: Okay, thank you.
Speaker Change: Nice about the questions at this time. So as a final call that staff followed by 1,
Speaker Change: there are no further questions. I will now turn the conference over to Mr. Craig-lee, for some closing remarks
Speaker Change: Well, thank you all for your interest in our company and for your questions. Today that are Ali. We have a strong healthy balance sheet with very Diversified product and investment portfolios.
Speaker Change: This offers security to our customers.
Speaker Change: Opportunity to our product managers and consistent profitability to our shareholders.
Speaker Change: We do things differently here and intentionally. So
Speaker Change: we will continue to make decisions that are in the long-term best interest of our customers and our shareholders that allow us agility to respond and challenging and opportunistic markets.
Being different is what we are known for and being different has delivered again to all our key stakeholders.
Thank you to all our employees for their hard work. Delivering the difference that works. Thank you and we'll talk to you next quarter.
Ladies and gentlemen, if you wish to access the Replay for this call, you may do so on the rli home page at www.org.com. This concludes our conference for today. Thank you for participating and have a nice day. All parties, May now disconnect