Q2 2025 RenaissanceRe Holdings Ltd Earnings Call

July 24, 2025

Two years and all of these years I have never been more.

We're pleased as I am today, when I look at these reports and evaluate the state of our business.

At the most fundamental level, our objective is to grow tangible book value per share over the long term.

This quarter is an excellent example of our ability to do just that.

Even with the impact of the California, wildfires last quarter and substantial share repurchases, we have grown tangible book value per share by 10% year to date and over 20% over the past 12 months.

We also delivered a 24% operating return on equity this quarter.

These financial results demonstrate the strength of our income diversification and ability to absorb volatility.

They also demonstrate.

That we are well compensated for the risk we choose to take.

This manifest through a combination of underwriting income investment income and fee income.

Each of these drivers.

Are performing well and are positioned for long term success.

Darting with underwriting over the last several years, we have grown and diversified our underwriting portfolio substantially.

This has benefited our business in numerous ways.

As one of the largest P&C reinsurers in the World. We have built the company designed to solve any risk problem in any class of business for any client.

We augment this powerful platform with people and technology that are industry, leading and client focused.

This incentivize customers to come to US first because we can design better solutions for their biggest problems and backend with significant capacity.

This ability to do these things enables us to secure better than market terms.

A good example of this is the recent Florida renewal.

80% of the premium we wrote was that private terms.

Market rates.

While we have been doing this for years and property catastrophe.

Our increased scale.

Us.

To do sell more broadly across classes.

Obviously this makes a substantial difference in the quality of our underwriting portfolios and it bolsters our ability to continue to produce strong returns.

The second driver of profit we focus on is investments.

Given the nature of cat business as well as continuing macroeconomic uncertainty our investment approach remains relatively cautious.

That said over the last year, we have structured our investment portfolio to be strongly accretive in the current environment.

As you can see from our investment results year to date. This approach has been successful.

Ultimately our investment portfolio is designed to support our underwriting book at the same time, the growth and diversification in our underwriting.

It provides benefits to our investments.

Because we are writing a larger portfolio of long tail casualty and specialty lines. Our overall net reserve position has grown to $19 billion. This resulted in significant investment leverage against common equity position of $10 billion.

At today's yield this leverages highly valuable and generates consistent and significant net investment income, which we expect to persist.

Equally if not more important the growth in reserves has lengthened the duration of our liabilities. This gives us greater flexibility in the allocation and duration of assets. All of these factors benefit our shareholders in a higher for longer interest rate environment.

Of course, this investment approach in and of itself does not differentiate us from other diversified reinsurers.

But it is different for us and it should benefit you in a much bigger way than at any previous time in our history.

This is one of the key reasons were.

More profitable and less volatile than we were five years ago.

Our third driver of profit is the fee income we earned in our capital partners business.

Our integrated model allows us to deploy more than $10 billion of partner capital to benefit our customers. In addition to our own capital.

example of our ability to do just that

At the same time, our third party investors value the low beta returns generated from well underwritten and expertly sourced risk.

even with the impact of the California wildfires, last quarter,

For our shareholders the fees, we generate through this business are also highly accretive.

Just one quarter after the California wildfires fees have reset to normal levels and we have already recaptured management management fees deferred from last quarter.

And substantial. We share repurchases. We have grown tangible book value per share by 10% year to date and over 20% over the past 12 months.

We also delivered a 24% operating return on Equity this quarter.

The volatility in fee income generally averages out over several quarters, making it as stable and very profitable business for us that we have grown steadily over time.

These Financial results demonstrate the strength of our income diversification and ability to absorb volatility.

They also demonstrate.

That we are. Well, compensated for the risk. We choose to take

In fact since the beginning of 2023 Bcf totaled almost $700 million.

This manifests through a combination of underwriting income investment income and fee income.

This is more than double the amount we generated over the same period prior to 2023.

Each of these drivers profits are performing well and are positioned for long-term success.

I should note that we manage third party capital differently than others, typically an a rated balance sheets and which we co invest.

Starting with underwriting over the last several years. We have grown and diversified our underwriting portfolio substantially

By structuring our platform. This way, we can optimize utility to customers and profitability to investors.

This is benefited our business in numerous ways.

While we recognize this structure great certain modeling challenges for the investment community we.

As 1 of the largest PNC reinsurers in the world, we have built a company designed to solve any risk problem in any class of business, for any client.

We are continually working to enhance shareholder disclosures to provide a deeper understanding of the earnings power and competitive moat of our capital partners fee income business.

We augment this powerful platform with people and technology that are industry-leading and client focused.

Shifting now to a discussion of the mid year renewals and overall business environment.

This incentivizes customers to come to us first because we can design better solutions for their biggest problems and back it with significant capacity.

Looking forward.

We are positioned to continue.

To deliver shareholder value.

This ability to do these things, enables us to secure better than Market terms.

The underwriting market remains attractive with healthy returns across property catastrophe and specialty lines.

A good example of this is the recent Florida. Renewal,

David will discuss the mid year renewal in detail with you later on the call, but we successfully met all of our objectives.

80% of the premium we wrote was at private terms.

Above Market rates.

<unk> property catastrophe in the U S, while continuing to optimize our casualty and specialty portfolio.

While we have been doing this for years in property catastrophe, our increased scale allows us

to do. So more broadly across classes.

For property Cat, specifically, we constructed our largest net retained portfolio to date. It is also one of our most profitable on an expected basis.

Obviously, this makes a substantial difference in the quality of our underwriting portfolios and it bolsters our ability to continue to produce strong returns.

Both in terms of percentage return, but also in absolute dollars.

The second driver of profit we focus on is Investments.

With regard to casualty and specialty we have a strong portfolio most lines in this segment are performing well.

Given the nature of cat business, as well as continuing macroeconomic uncertainty, your investment approach remains relatively cautious.

Overall, our casualty and specialty book continues to provide strong returns.

That said over the last year, we have structured our Investment Portfolio to be strongly accretive in the current environment.

Primarily from investment income on the considerable bloat it generates.

As you can see from our investment results year to date, this approach has been successful.

As we have previously discussed we are keeping a close eye on casualty lines, including general liability, where we are we're holding reserve ratio as high as we monetary elevated Trent.

Ultimately, our Investment Portfolio is designed to support our underwriting book.

At the same time, the growth and diversification in our underlying book provides benefits to our investments.

So far we are encouraged by.

The rate and claims management improvements, we are seeing which we believe are keeping rates above this elevated trent.

At this point in the year, our portfolio is largely set as very little business renews in the second half. Consequently, we are already planning for next year and approach 2026 from a position of continuing rate adequacy, which provides us confidence that our strong returns for persist.

Because we are riding a larger portfolio of long tail cashy and Specialty lines. Our overall net Reserve position has grown to 19 billion dollars. This results in significant investment leverage against a common Equity position of 10 billion dollars.

at today's yields, this Leverage is highly valuable, and generates consistent and significant net investment income, which we expect to persist

This concludes my opening comments, Bob will now discuss our financial performance for the quarter, followed by David <unk>, who will provide an update on our segment performance. Thanks, Bob Thanks.

Equally, if not more important, the growth in reserves has lengthened. The duration of our liabilities, this gives us greater flexibility in the allocation and duration of assets.

Bob: Thanks, Kevin and good morning, everyone.

Bob: We delivered outstanding results this quarter with annualized return on equity of 34% and operating return on equity of 2012.

all of these factors benefit, our shareholders in a higher for longer interest rate environment,

of course, this investment approach in and of itself does not differentiate us from other Diversified reinsurers.

Bob: Operating income per share was $12 29.

Bob: Our second best result ever exceeded only by this quarter last year.

But it is different for us, and it should benefit you in a much bigger way than at any previous time in our history.

Bob: Performance was strong across each of our three drivers of profit with underwriting income of $602 million up 26% from last year.

This is 1 of the key reasons we are.

More profitable and less volatile than we were 5 years ago.

Bob: <unk> of $95 million, which fully recovered from losses last quarter and.

Our third driver of profit is the fee income. We earn in our Capital Partners business.

Bob: And retain net investment income of $286 million, which remains a consistent and significant contributor to our bottom line.

Our integrated model allows us to deploy more than 10 billion dollars of partner Capital to benefit our customers in addition to our own capital.

Bob: We are proud of our leading returns and have strong conviction in our ability to continue delivering at this level going forward.

At the same time, our third party investors value, the low beta returns generated from well underwritten and expertly sourced risk.

Bob: Therefore numbers to help illustrate this first 15 points.

Bob: Which is the aggregate contribution from net investment income and fees to our overall return on average common equity.

for a shareholders the piece we generate through this business are also highly accretive

Bob: We expect both of these drivers to remain stable over time, and therefore again each quarter with a consistently strong earnings space.

Just 1 quarter after the California wildfires fees have reset to normal levels and we have already recaptured, manage management fees to deferred from last quarter.

Bob: Second.

Bob: $600 million.

Bob: Which was our underwriting profit this quarter.

Bob: Underwriting leadership is the strategic core of our business and it typically brings significant upside to the 15 points of the stable base I just described.

Bob: Third one $5 billion.

Million dollars. This is more than double the amount we generated over the same period, prior to 2023.

Bob: The value of shares we have repurchased since the since we began buying back in April of 2024. This equates to 6 million shares or about 70% of what we issued in connection with the acquisition.

I should note that we managed third-party Capital differently than others typically, in rated balance sheets, in which we co-invest.

By structuring our platform. This way we can optimize utility to customers and profitability to investors.

Bob: This demonstrates the robust efficiency of our platform strength of our earnings and most importantly, our conviction in the value of our stock and our own sustainability going forward.

While we recognize this structure creates certain modeling challenges for the investment community.

Bob: And finally, 20%.

Bob: This is the amount we have grown our primary metric tangible book value per share plus change in accumulated dividends over the last year. This is particularly notable given both the significant volume of shares we have repurchased along with the impact we've absorbed from multiple large loss events, including Hurricanes, Helene and Milton and the caller.

We are continually working to enhance shareholder, disclosures to provide a deeper understanding of the earnings power and competitive mode of our Capital Partners being income business.

Shifting now to a discussion of the mid-year renewals and overall business environment.

Looking forward.

We are positioned to continue to deliver shareholder value.

Bob: Fournier wildfires year to date, we have grown this metric by 10, 4%.

The underwriting Market remains attractive with healthy returns, across property catastrophe and Specialty lines.

Bob: Now I'd like to turn to a more detailed discussion of our results starting with our first driver of profit underwriting.

David will discuss the midyear renewal and detail with you later on the call. But we successfully met all of our objectives.

Bob: We had an excellent quarter, we delivered an overall adjusted combined ratio of 73%.

Growing property catastrophe in the US while continuing to optimize our casualty and Specialty portfolio.

Bob: This reflected a low level of catastrophe losses and favorable development within both segments.

Bob: Across our underwriting portfolio overall gross premiums written were $3 4 billion flat to the comparable quarter and net premiums written were $2 7 billion also flat to last year. However.

For property cats specifically we constructed our largest net retained portfolio to date.

It is also 1 of our most profitable on an existed basis, both in terms of percentage return, but also an absolute dollars.

Bob: However, there was a greater movement at a class of business level as we continue to shape the portfolio specifically in property catastrophe. We grew gross premiums written by $98 million or.

With regard to casualty and Specialty, we have a strong portfolio most lines in this segment are performing well.

Bob: 8%.

Bob: This reflects a highly successful June one renewal, but we do premium in the U S by 13% across nationwide in Florida specific carriers.

overall, our casualty and Specialty book continues to provide strong returns P primarily from investment income on the considerable float is generates

Bob: And credit professional liability and specialty gross premiums were also up in class doubled compared to last year. Although this is primarily related to premium adjustments in Q2 of last year.

as we have previously discussed, we are keeping a close eye on casualty lines, including general liability, where we are holding Reserve ratios high, as we monitor elevated trend,

Bob: Another property gross premiums written were down by $119 million or 24%.

So far we are encouraged by the rate and claims management improvements we are seeing which we believe are keeping rates Above This elevated trend.

Bob: This reflects premium adjustments due to the rate decreases of around 10% to 15% in the E&S business.

Bob: As well as an adjustment to a large contract.

Bob: Similarly, general casualty was down $118 million, 19% about half of this relates to actions, we are taking to reduce general liability exposure.

Bob: So seeing double double digit rate increases in this class, which is partially offsetting the impact of this exposure reduction.

This concludes my opening comments Bob will now discuss our financial performance for the quarter followed by David who will provide an update on our segment performance. Thanks Bob.

Bob: As I mentioned previously we reported more than $600 million of underwriting income.

Bob: Thanks, Kevin and good morning everyone.

Bob: This came from the property segment, where we reported an adjusted combined ratio of 26% current accident year loss ratio of 30% and favorable development of 31 percentage points.

Bob: We delivered outstanding results of this quarter with annualized return on Equity of 34% and operating return on Equity of 24%.

Bob: Other property in particular had its strongest quarter, yet with an adjusted combined ratio of 43%. This was driven by solid current year results and a significant favorable development.

Bob: Operating income per share was 12.29 our second. Best result ever, exceeded only by this quarter last year.

Was strong across each of our 3 drivers of profit with underwriting income of 602 million.

Bob: 26% from last year.

Bob: Casualty and specialty underwriting performance was within our expectations. When adjusted combined ratio of 99, 5%. This included one six points from large specialty events in the quarter, primarily from the Air India strategy.

Bob: Fees of 95 million, which fully recovered from losses. Last quarter.

Bob: And retained net investment. Income of 286 million, which remained a consistent and significant contributor to our bottom line.

Bob: Third quarter of 2025, we expect the following metrics in our underwriting book.

We are proud of our leading returns and have strong conviction in our ability to continue delivering at this level going forward.

Bob: Within other property net premiums earned of about $360 million.

Bob: And in Attritional loss ratio in the mid fifties.

Bob: And within casualty and specialty net premiums earned of about $1 5 billion.

Bob: There are 4 numbers that help illustrate this first 15 points, which is the aggregate contribution from net investment income and fees to our overall return on average common equity.

Bob: And adjusted combined ratio in the high nineties.

Bob: Moving now to fee income and our capital partners business, where fees were $95 million for the quarter up 13% and remains a powerful driver of shareholder value.

Bob: we expect both of these drivers to remain stable over time and therefore, we begin each quarter with a consistently strong earnings based

Bob: $600 million which was our underwriting profit. This quarter.

Bob: This consisted of management fees of $57 million and performance fees of $39 million.

Bob: Underwriting leadership is the Strategic core of our business and it typically brings significant upside to the 15 points of the stable base. I just described

Bob: Given our strong underwriting results and significant favorable development. This quarter, we recaptured the majority of management fees that were deferred as a result of the California wildfires in the first quarter. This also resulted in earning performance fees earlier in the quarter than expected.

Bob: Third, 1.5 billion dollars.

Bob: In the third quarter, we expect fees should be about $80 million, which includes $50 million of management fees and $30 million in performance fees absent any large losses.

Bob: the value of shares we have repurchased since the since we began buying back in April of 2024, this equates to 6 million shares or about 70% of what we issued in connection with the validus acquisition,

Bob: This is a unique business that leverages, our existing infrastructure to generate persistent and substantial fees for our shareholders.

Bob: This demonstrates, the robust deficiency of our platform, the strength of our earnings, and most importantly, our conviction in the value of our stock and earning sustainability going forward.

Bob: And finally, 20%.

Bob: It's operational requires no shareholder capital.

Bob: Direct employees increases our value proposition to customers and adds roughly three points to our ROE annually.

Bob: We believe that this is an underappreciated aspect of our business given its high value generation and high marginal return.

Bob: Moving now to our third driver investments while retained net investment income was $286 million up slightly from the first quarter driven by growth in invested assets.

Bob: Given both the significant volume of shares. We have repurchased along with the impact, we have absorbed from multiple large loss events, including hurricanes, Helen and Milton and the California wildfires year to date. We have grown this metric by 10.4%.

Bob: As we discussed on our last call early in the quarter, we acted on market volatility, increasing our allocation to equities as well as high yield and investment grade credits.

Bob: Return to a more detailed discussion of our results. Starting with our first driver of profit underwriting, where we had an excellent quarter, we delivered an overall adjusted combined ratio of 73%

Bob: This reflected a low level of catastrophe losses and favorable development within both segments.

Bob: We reported $343 million of retained mark to market gains in the quarter, primarily driven by a rally in shorter term treasuries. In addition to tightening credit spreads and rising equity.

Bob: A substantial portion of which we access to investment related derivative strategies.

Bob: Across our underwriting portfolio. Overall growth premiums written with 3.4 billion flat to the comparable quarter and that premiums written were 2.7 billion dollars. Also flat to last year.

Bob: Our retained yield to maturity stayed relatively flat at 5%.

Bob: Duration was also flat at three years.

Bob: Looking forward, we expect retained net investment income to remain equally strong in the third quarter.

Bob: However, there was a greater movement at a class of business level, as we continue to shape the portfolio, specifically in property catastrophe, we grew gross premiums written by 98 million or 8%.

Bob: Our investment portfolio is intended to complement our underwriting portfolio as we have grown and diversified our business, where we have greater flexibility in duration and asset mix, while also increasing investment leverage.

This reflects our highly successful. June 1, renewal where we group premium in the US by 13% across Nationwide and Florida specific carriers.

Bob: These factors have allowed us to shape, the investment portfolio and involved and evolve the asset next to increasingly include classes such as private credit.

Bob: In Credit Professional liability and Specialty, gross premiums were also up in a class level compared to last year. Although, this primarily related to Premium Adjustments in Q2 of last year,

Bob: And public equity and higher yielding assets over time this should enable us to increase investment income.

Bob: Our investment portfolio remains well positioned so as the interest rate environment with over the cycle, we have the tools and flexibility to maintain our investment portfolio a strong contribution to our bottom line.

Bob: And other property. Gross premiums written were down by 119 million or 24%. This reflects Premium Adjustments due to the rate decreases of around 10 to 15% in the ens business.

Bob: As well as an adjustment to a large contract.

Bob: Moving now to expenses.

Bob: Our interest expense was somewhat elevated due to an overlap between some maturing debt in the quarter and the new issuances from Q1.

Bob: Our operating expense ratio was five 2% up about a point from the second quarter of last year. This is in line with our expectations and reflects our continued investment in the business after a period of significant growth.

Bob: Looking ahead, we expect our operating expense ratio to stay around 5% for the remainder of the year.

Bob: Now I'd like to share an update on capital management, we continued to return capital to shareholders. This quarter repurchasing one 6 million shares for $376 million at an average price of $242 per share.

Bob: And so far this quarter, we have repurchased 294000 shares for $70 million at an average price of $239 per share.

Bob: Year to date that brings total repurchases to three 3 million shares.

Bob: Our $808 million.

Bob: We remain in a substantial excess capital and robust liquidity position and have demonstrated our ability to generate consistent strong returns for our shareholders as we move through the hurricane season, we will continue to look for opportunities to deploy capital into the business, while repurchasing shares at attractive valuations.

Bob: And finishing now attacks and as a reminder, the new 15% Bermuda corporate income tax went into effect this year and our results. This quarter include a tax expense of $177 million.

Bob: The effective tax rate on our GAAP net income was 13% this quarter, although the effective tax rate on income attributable to Renaissance III shareholders is it two points higher than <unk>.

Bob: Difference relates to Noncontrolling interest, which is subject to a minimal amount of income tax.

Bob: Given the new tax environment. Our results this quarter are not directly comparable to last year on a like for like basis, our ability to generate an after tax 24% operating return on equity indicates that our earnings power is persistently strong.

Bob: And finally, we delivered excellent results this quarter across each of our three drivers of profit.

Bob: Deploying capital to grow our property cat class of business, while continuing to return significant capital through accretive share repurchases, we have conviction in our ability to continue to deliver superior returns throughout the year.

David: With that I'll now turn it over to David.

David: Thanks, Bob and good morning, everyone are.

David: Our second quarter underwriting performance was excellent we reported an adjusted combined ratio of 73% and significantly grew our U S property catastrophe portfolio at the mid year renewal outperforming the market with risk adjusted rates in our book down low single digits.

David: Our strong results this quarter are directly connected to our unique competitive advantages, including our integrated operating model deep risk expertise and customer centric approach.

David: <unk> underwriting system enables us to quickly deliver leak quotes and capacity in an integrated way across geographies and classes of business. This allows us to transact seamlessly with our clients across multiple lines.

David: In fact, the majority of our premium comes from clients, who buy products across property casualty and specialty.

David: Our approach is unique and differentiated and clients reward us with strong science and preferential terms. This.

Speaker Change: This benefits Renaissance III shareholders through an attractive combination of underwriting fee and investment income as Kevin and Bob just discussed.

Speaker Change: With respect to underwriting income our margins across the portfolio remained very attractive.

Speaker Change: Since the reinsurance step change in rates and terms and conditions in 2023, we've generally generated $3 billion in underwriting profit and industry, leading combined ratios.

Speaker Change: During this time period, we have reported consistent favorable development, averaging seven points.

Speaker Change: This has contributed to our underwriting profitability and is due to the strength of our previous underwriting decisions and our robust reserving process both of which are key strengths of our business. We manage risks from the time a binding of <unk> to the time claims settle ultimately supporting strong financial results across our underwriting portfolio.

Speaker Change: We believe that risk is appropriately distributed across the insurance value chain with reinsurers, largely providing balance sheet protection and being paid adequately for doing so.

Speaker Change: This is why we find the current underwriting market attractive and it is also why we expect its current terms and conditions to persist.

Speaker Change: <unk> is likely to fluctuate around current levels dependent on primarily on shifting supply and demand.

Speaker Change: But should remain attractive.

Speaker Change: In short the dynamics that have driven our strong results this quarter and since 2023 are still in effect.

Speaker Change: <unk> and generating sustainable superior returns in the future.

Bob: And so far this quarter, we have repurchased 294000 shares for $70 million at an average price of $239 per share.

Speaker Change: Now moving to a discussion of our underwriting actions in the quarter.

Speaker Change: This renewal highlighted Renaissance is underwriting culture at its best as we shaped our portfolio at scale.

Bob: Year to date that brings total repurchases to three 3 million shares for $808 million.

Speaker Change: And property casualty and specialty markets.

Speaker Change: Across the mid year renewals, we chose to grow property and catastrophe exposure and an attractive environment deploying leading capacity at rates and terms it outperformed the broader market.

Speaker Change: Maintain our exposure in other property.

Speaker Change: Our specialty portfolio and continue to reduce exposure in <unk>.

Speaker Change: Casualty lines, where we believe caution is warranted.

Speaker Change: Our highest marginal return business is currently U S property catastrophe, where we grew premiums by 13% in the quarter deploying capital in attractive expected returns.

Bob: And finishing now attacks and as a reminder, the new 15% Bermuda corporate income tax went into effect this year and our results. This quarter include a tax expense of $177 million.

Speaker Change: Whilst experiencing rate changes vary widely across clients and layers.

Bob: The effective tax rate on our GAAP net income was 13% this quarter.

Speaker Change: Loss impacted layers were flat to up 15.

Speaker Change: Although in California rate increases were much higher.

Although the effective tax rate on income attributable to Renaissance III shareholders as of two points higher the.

Speaker Change: Conversely loss free layers were down 5% to 15.

Bob: The difference relates to Noncontrolling interest, which is subject to a minimal amount of income tax.

Speaker Change: <unk>.

Speaker Change: Our ability to understand each program early and select the most profitable layers gave us a competitive edge.

Speaker Change: <unk>.

Speaker Change: As a result, we constructed a portfolio with great.

Speaker Change: Low single digits, which is a strong outcome given that we estimate the market was down around 10%.

Speaker Change: Yeah.

Speaker Change: Our key areas of growth were flat flat to up rates were flat to up where Florida, California and loss impacted nationwide carriers.

Bob: And finally, we delivered excellent results this quarter across each of our three drivers of profit.

Speaker Change: In Florida, we believe the pricing environment in terms and conditions and tort reform have helped stabilize the market.

Bob: Deploying capital to grow our property cat class of business, while continuing to return significant capital through accretive share repurchases. We have the conviction in our ability to continue to deliver superior returns throughout the year.

Speaker Change: In addition growth in demand created an opportunity for us to deploy significant capital private terms as buyers look to secure increased capacity is.

David: With that I'll now turn it over to David.

Speaker Change: As Kevin mentioned, we were up 80% of our Florida premium and private terms above the market with.

David: Thanks, Bob and good morning, everyone our.

Speaker Change: We had been underweight in Florida, but our positioning as a market leader enabled us to grow with rates roughly flat.

Speaker Change: We also grew in California, where most of those business had been impacted by the catastrophic wildfires last quarter.

David: Our strong results this quarter are directly connected to our unique competitive advantages, including our integrated operating model deep risk expertise and customer centric approach.

Speaker Change: Renaissance <unk> sciences provided us with a competitive advantage by rapidly updating our California wildfire models to reflect an updated view of risk.

Speaker Change: And so we provided lead market quotes and grew into an increasing rate environment, achieving premium rate increases of more than 50% on some loan loss impacted programs.

David: <unk> underwriting system enables us to quickly deliver lead quotes and capacity in an integrated way across geographies and classes of business.

David: Allows us to transact seamlessly with our clients across multiple lines.

Speaker Change: And finally, we also grew selectively with loss impacted nationwide carriers using.

David: In fact, the majority of our premium comes from clients, who buy products across property casualty and specialty.

Speaker Change: Using our risk selection capabilities to target growth in our customer relationships to secure bigger lines at rates up in the high single.

David: Our approach is unique and differentiated inclines reward us with strong signings and preferential terms.

Speaker Change: This benefits Renaissance III shareholders through an attractive combination of underwriting fee and investment income as Kevin and Bob just discussed.

Speaker Change: Single digits.

Speaker Change: Sure.

Speaker Change: Year to date, we have deployed $1 7 billion of new limit into property cat with.

Speaker Change: With $1 billion of this in the second quarter our.

Speaker Change: With respect to underwriting income our margins across the portfolio remained very attractive.

Speaker Change: Our property catastrophe book in the largest we have ever ridden and among the most profitable an unexpected absolute dollar basis.

Speaker Change: Since the reinsurance step change in rates and terms and conditions in 2023, we've generated $3 billion in underwriting profit and industry, leading combined ratios during.

Speaker Change: Before moving on to other classes of business. There are three points I would like to highlight about how we have shaped our risk going into this wind season.

Speaker Change: During this time period, we have reported consistent favorable development, averaging seven points.

Speaker Change: First due to our growth in property catastrophe at the mid year renewals risks.

Speaker Change: Risk is up on an absolute basis for U S perils.

Speaker Change: Although more heavily weighted towards the tail.

Speaker Change: <unk>.

Speaker Change: On a percentage of equity basis risk is also up.

Speaker Change: Generally in line or below the levels prior to the <unk> acquisition.

Speaker Change: Ultimately supporting strong financial results across our underwriting portfolio.

Speaker Change: And finally, we purchased additional ceded protection, including products, which provide increased resilience against multiple on current events such as second event covers and the issuance of a cat bond providing aggregate protection.

Speaker Change: This is why we find the current underwriting market attractive and it is also why we expect its current terms and conditions to persist.

Speaker Change: I will now briefly touch on themes, we've observed across other classes of business, which broadly aligned to what we had seen earlier in the year.

Speaker Change: Great is likely to fluctuate around current levels, depending on primarily on shifting supply and demand.

Speaker Change: Starting with with other property.

Speaker Change: But should remain attractive.

Speaker Change: We have been optimizing the mix of this book and are now seeing profit materialized following consecutive years of rate increases.

Speaker Change: In short the dynamics that have driven our strong results this quarter and since 2023 are still in effect and will support us in generating sustainable superior returns in the future.

Speaker Change: Beginning in late 2017 through mid 2024.

Speaker Change: We are pleased with the strong returns we have generated in both on our current and prior year basis.

Speaker Change: Now moving to a discussion of our underwriting actions in the quarter.

Speaker Change: This renewal highlighted Renaissance <unk> underwriting culture at its best as we shaped our portfolio at scale and property casualty and specialty markets.

Speaker Change: Going forward we are.

Speaker Change: Seeing increased competition and lower rates for E&S property business. We are monitoring this closely and will adjust our portfolio folio with respect to business that does not meet our hurdles.

Speaker Change: Across the midyear renewals, we chose to grow property catastrophe exposure and an attractive environment deploying leading capacity at rates and terms that outperformed the broader market.

Speaker Change: And casualty rates in U S General liability continued to increase at approximately 15%. This is ahead of us.

Speaker Change: Maintain our exposure in other property.

Speaker Change: But we remain cautious and will continue to take a conservative approach.

Speaker Change: Shape of our specialty portfolio and continue to reduce exposure and select casualty lines, where we believe caution is warranted.

Speaker Change: Casualty business is mostly quota share and due to the long tail.

Speaker Change: Management over a 10 year cycle during.

Speaker Change: Our highest marginal return business is currently U S property catastrophe, where we grew premiums by 13% in the quarter deploying capital in attractive expected returns.

Speaker Change: During the last year, we worked closely with our clients with a partnership lens enhancing our underwriting and claims information flow and structure and airlines to create the optimal portfolio for the next cycle.

Speaker Change: Loss experienced in rate changes varied widely across clients and layers loss impacted layers were flat to up 15.

Speaker Change: It is driven underwriting approach will result in additional improvements in the business over and above the rate and claims improvements made by our clients.

Speaker Change: Although in California rate increases were much higher.

Speaker Change: Conversely loss free layers were down 5% to 15%.

Speaker Change: Over the last year, we have scaled back where exposure was greatest in.

Speaker Change: And reduced our general liability exposure in the U S by approximately 30%, although significant rate increases have helped moderate the topline impact.

Speaker Change: Our ability to understand each program early and select the most profitable layers gave us a competitive advantage.

Speaker Change: As a result, we constructed a portfolio with rate down low single digits, which is a strong outcome given that we estimate the market was down around 10%.

Speaker Change: Moving to specialty our diversified book remains highly attractive and profitable.

Speaker Change: Some lines like aviation have seen increased loss activity and are responding with additional rate.

Speaker Change: Our key areas of growth were flat square up flat to up rates were flat, where Florida, California and loss impacted nationwide carriers.

Speaker Change: Others like energy and fiber have remained profitable despite recent loss events.

Speaker Change: In Florida, we believe the pricing environment terms and conditions and tort reform have helped stabilize the market.

Speaker Change: We have expert teams in each class and constantly evaluate our positions to optimize the portfolio based on risk and reward in the business.

Speaker Change: In addition growth in demand created an opportunity for us to deploy significant capital at private terms as buyers look to secure increased capacity.

Speaker Change: Finally in credit performance continues to be strong and we remain prudently positioned to navigate uncertainty in the current geopolitical environment.

Speaker Change: As Kevin mentioned, we were up 80% of our Florida premium at private terms above the market.

Speaker Change: The diversified risk profile and conservatively managed portfolios across the spectrum of mortgage trade credit and political risk surety and structured credit.

Speaker Change: We had been underweight in Florida, but our position as a market leader enabled us to grow with rates roughly flat.

Speaker Change: In closing vessels each programs pricing reflects a unique risk profile each reinsurers experience at the mid year renewal reflected the expertise and leadership that they brought to the market for companies like <unk> with parental access and deep client Trust, we were able to build a portfolio of highly accretive economics that positions us for continued strong growth.

Speaker Change: We also grew in California, where most business had been impacted by the catastrophic wildfires last quarter.

Speaker Change: Renaissance III risk sciences provided us with a competitive advantage by rapidly updating our California wildfire models to reflect an updated view of risk.

Speaker Change: So we provided lead market quotes and grew into an increasing rate environment, achieving premium rate increases of more than 50% on some loss impacted programs.

Ken: And with that I'll turn it back to Ken.

Ken: Thanks, David.

Speaker Change: And finally, we also grew selectively with loss impacted nationwide carriers, using our risk selection capabilities to target growth in our customer relationships to secure bigger lines at rates up in the high single digits.

Ken: Our business is exceptionally healthy all three drivers of profit output formed expectations and the current environment remains favorable.

Ken: We had a strong renewal and constructed our largest and one of our most profitable net retrans property cat portfolios.

Speaker Change: Year to date, we have deployed $1 7 billion of new limit into property cap with $1 billion of this in the second quarter our.

Ken: Our capital partners business has recovered to its full fee generating potential and continues to contribute substantial low volatility in earnings to our bottom line.

Speaker Change: Our property catastrophe book in the largest we have ever ridden and among the most profitable an unexpected absolute dollar basis.

Ken: Finally, the interest rate environment remains attractive and we took advantage of market weakness to increase our allocation to equities and high yield which should help increase returns and with that I'll open it up for questions.

Speaker Change: Before moving on to other classes of business. There are three points I would like to highlight about how we have shaped our risk going into this wind season.

Speaker Change: First due to our growth in property catastrophe at the mid year renewals risk is up on an absolute basis for U S perils, although more heavily weighted towards the tail.

Ken: At this time, if you would like to ask a question. Please press star one on your telephone keypad.

Speaker Change: Second on a percentage of equity basis risk is also up but generally in line or below the levels prior to the balanced acquisition.

Ken: If you wish to remove yourself from the queue you may do so by pressing star team.

Speaker Change: And finally, we purchased additional ceded protection, including products, which provide increased resilience against multiple large events such as second event covers and the issuance of a cat bond providing aggregate protection.

Ken: We remind you to please on mute your line when introduced and if possible pick up your handset for optimal sound quality.

Ken: In the interest of time, we ask that you. Please limit yourself to one question and one follow up.

Speaker Change: I will now briefly touch on themes, we've observed across other classes of business, which broadly aligned to what we have seen earlier in the year.

Ken: Okay.

Speaker Change: We will take our first question from Elyse Greenspan with Wells Fargo. Your line is open. Please go ahead.

Speaker Change: Starting with other property.

Speaker Change: We are in optimizing the mix of this book and are now seeing profit materialized following consecutive years of rate increases beginning in late 2017 through mid 2024.

Elyse Greenspan: Hi, Thanks. Good morning. My first question is on the reserve releases in the quarter I think it was around $132 million I'm focusing on.

Speaker Change: We are pleased with the strong returns we have generated both on our current and prior year basis.

Speaker Change: The property Cat piece and I know you guys called out from 'twenty, one 'twenty, two and 'twenty three.

Speaker Change: Going forward, we are seeing increased competition and lower rates for E&S property business. We are monitoring this closely and will adjust our portfolio with respect to business that does not meet our hurdles.

Speaker Change: Curious was one of those years like the bigger driver of the releases.

Speaker Change: And casualty rates in U S. General liability continued to increase at approximately 15%. This is ahead of us, but we remain cautious and will continue to take a conservative approach.

Speaker Change: And I guess the second part of that question is I'm just curious if the relief is stemming from Milton our Florida events that would just be.

Speaker Change: Just the reforms working in the state.

Speaker Change: Casualty business is mostly quota share and due to the long tail, we manage it over a 10 year cycle.

Bob: Hey, Elyse. Thanks This is Bob.

Bob: Comes from across all the accident periods on all of that into 2017, and we share some of those losses with our with our joint venture is about half of that $6.

Speaker Change: During the last year, we have worked closely with our clients with a partnership lens enhancing our underwriting and claims information flow and structure and airlines to create the optimal portfolio for the next cycle.

Speaker Change: This data driven underwriting approach will result in additional improvements in the business over and above the rate and claims improvements made by our clients.

Bob: Okay. Thanks.

Bob: And then.

Bob: I guess, just it seems like the renewables at the midyear on the property cat side played out well relative to your expectations I guess.

Speaker Change: Over the last year, we have scaled back where exposure with greatest and reduced our general liability exposure in the U S by approximately 30%, although significant rate increases have helped moderate the topline impact.

Bob: Kevin as you think forward I guess, obviously a lot depends what happens with this hurricane season, but how are you thinking about things.

Speaker Change: Moving to specialty our diversified book remains highly attractive and profitable some lines like aviation have seen increased loss activity and are responding with additional rate.

Bob: Going into 2026, both January one and then even with.

Bob: The Florida renewals heading into the midyear next year.

Bob: Great. Thanks.

Speaker Change: Others like energy and cyber have remained profitable despite recent loss events.

Bob: Yes, you are right. This year has gone exceptionally well and I think it's important to kind of.

Speaker Change: We have expert teams in each class and constantly evaluate our positions to optimize the portfolio based on risk and reward in the business.

Bob: Remind ourselves as to where we are as we're thinking about planning for 2026.

Speaker Change: Finally in credit performance continues to be strong and we remain prudently positioned to navigate uncertainty in the current geopolitical environment with a diversified risk profile and conservatively managed portfolios across the spectrum of mortgage trade credit and political risk surety and structured credit.

Bob: We've grown our portfolios, where we've chosen to grow and we've had good opportunities.

Bob: And we continue to execute our strategy well so as I look at it.

Bob: Where we are heading into 2026 really at this point as I mentioned in my comments not much business comes up between now and yearend. So one of the bigger variables will be what happens in wind season, but if you break wind season down.

Speaker Change: In closing just as each programs pricing reflects a unique risk profile each reinsurers experience at the mid year renewal reflected the expertise and leadership they brought to the market for companies like <unk> with preferential access and deep client Trust, we were able to build a portfolio with highly accretive economics that positions us for continued strong performance and with that I'll turn.

Bob: All they all wind season does exhibits and inactive year. It gives buyers pricing power and if its an active year. It gives reinsurers pricing power.

Ken: It back to Ken.

Bob: We've talked about before is since 2023, we think the market is reset and will trade around this new level and that is really what we've seen and we have proven that we can execute to produce better than market returns in that environment. So regardless of what happens between now and year end really what the way we're looking at it as we all can.

Ken: Thanks, David.

Ken: Our business is exceptionally healthy all three drivers of profit outperformed expectations and the current environment remains favorable.

Ken: We had a strong renewal and constructed our largest and one of our most profitable net retained property cat portfolios.

Ken: Our capital partners business has recovered to its full fee generating potential and continues to contribute substantial low volatility in earnings to our bottom line.

Bob: To execute our strategy, we believe we can.

Bob: We continue to preserve our margin.

Bob: We have no change in our ability to find opportunity to deploy capital we have a strong capital and liquidity position. So we believe we can continue to manage capital through share repurchases. So as we're really beginning to shift our focus from a writing our book for 2025 to planning for 2026 nothing has.

Ken: At this time, if you would like to ask a question. Please press star one on your telephone keypad.

Bob: <unk> growth our strategy between now and year end, we will have great conversations have price discovery, we will sharpen our tools and tactics, but I think at the end of the day 26 X is going to look a lot like 25 for us.

Ken: If you wish to remove yourself from the queue you may do so by pressing star team.

Ken: We remind you to please UN mute your line when introduced and if possible pick up your handset for optimal sound quality.

Ken: In the interest of time, we ask that you. Please limit yourself to one question and one follow up.

Bob: Thank you.

Bob: Sure.

Bob: Yes.

Speaker Change: We will take our next question from Josh Shanker with Bank of America. Please go ahead.

Okay.

Speaker Change: We will take our first question from Elyse Greenspan with Wells Fargo. Your line is open. Please go ahead.

Speaker Change: Yes. Thank you Sean will talk about management fees, a little bit I think it would be.

Elyse Greenspan: Hi, Thanks. Good morning. My first question is on the reserve releases in the quarter I think it was around $132 million I'm focusing on.

Speaker Change: Our last quarter call you were pretty sure that management fees would be a little weaker.

Speaker Change: And then they bounce back real fast what's changed in the past.

Speaker Change: On the property Cat piece and I know you guys called out from 'twenty, one 'twenty two and 'twenty three I'm. Just curious was one of those years like the bigger driver of the releases.

Speaker Change: A few months and also how does the Alphacat Omega Cat book.

Speaker Change: And then Bert winding down play into the numbers here.

Speaker Change: Yes, I'll just make a couple of comments I'll turn it over to Bobby.

Speaker Change: And I guess the second part of that question is I'm just curious if the releases to stem from Milton our Florida events that would just be reflective.

Speaker Change: No you're absolutely right I think we had a strong second quarter tends to be a light cat quarter that is not necessarily what's budgeted so we.

Speaker Change: The reforms working in the state.

Speaker Change: Had greater earnings of greater catch up on our fees because of that and then obviously favorable development benefited our third party capital.

Bob: Hey, Elyse. Thanks. This is Bob it comes from across all the accident periods. So all in all about 2017 and with.

Speaker Change: Vehicles as well so that pushed us.

Speaker Change: Sure some of those losses with our with our joint venture is about half of that $6.

Speaker Change: To recover some of the deferred fees more quickly.

Bob: Alphacat Omega Kyle we're not a big contributor, but I'll turn it over to Bob for more specifics.

Speaker Change: Okay. Thanks.

Speaker Change: And then.

Bob: Management's prepared comments, Josh the management team, we expected to deferral to be a little bit longer we got it all back and which is why the $56 million of what we're guiding you back to $50 million for the third quarter in my prepared comments for the management team and as Kevin pointed out.

Speaker Change: I guess, just it seems like the renewals at the midyear on the property cat side played out well relative to your expectations I guess.

Speaker Change: Kevin as you think forward I guess, obviously a lot depends what happens with this hurricane season, but how are you.

Bob: The favorable development in the property cat side accelerated.

Speaker Change: You're thinking about things.

Speaker Change: Going into 2026.

Bob: The ability to earn performance fees, but we're still guiding it to $30 million for the next quarter. So all in for Q3, and that's kind of what I refer to as the more stable area kind of sort of neutral.

Speaker Change: January one and then even.

Speaker Change: With the Florida renewals heading into the midyear next year.

Speaker Change: Great. Thanks.

Speaker Change: Yes, you are right. This year has gone exceptionally well and I think it's important to kind of.

Bob: So when I'm looking at the da Vinci income statement. It looks like premium broke was pretty healthy at da Vinci, where I'm going.

Speaker Change: We remind ourselves as to where we are as we're thinking about planning for 2026.

Speaker Change: Have you been able to convince alphacat investors to redeploy into your proprietary vehicles or defer.

Speaker Change: We've grown our portfolios, where we've chosen to grow and we've had good opportunities.

Speaker Change: And we continue to execute our strategy well so as I look at it.

Speaker Change: The difference between.

Bob: Yeah.

Bob: Firm wide property, and we see a da Vinci.

Speaker Change: Where we are heading into 2026 really at this point as I mentioned in my comments not much business comes up between now and year end. So one of the bigger variables will be what happens in wind season, but if you break wind season down.

Bob: Yes.

Bob: Okay.

Bob: Something is a vehicle that we purchased with.

Bob: Validus and we're managing down we have broad and strong investor interest in da Vinci. So there is the migration of investors is not part of the story, it's really the ability for us to execute into the market and continue to grow both ordinary and da Vinci.

Speaker Change: It all it all wind season does is if its an inactive year.

Speaker Change: <unk> buyers pricing power and if its an active year. It gives reinsurance pricing power, while we've talked about before is since 2023, we think the market is reset and will trade around this new level and that is really what we've seen and we've proven that we can execute to produce better than market returns in that environment. So we're.

Bob: And just bear with me.

Bob: Fact that da Vinci was there more opportunities to deploy capital into da Vinci or the more Apple in da Vinci. So the risk adjusted returns are the same.

Bob: The strong growth there it says to me that you've leaned into da Vinci in the quarter or maybe just had more capital.

Speaker Change: <unk> of what happens between now and year end really with the way. We're looking at it is we will continue to execute our strategy. We believe we can.

Bob: This is Bob just the way I look at it is that all of our property cat is going to our own account and da Vinci, we're not cultivating and the Africa space, that's kind of a multi risk strategy that doesn't fit our purpose of balance sheets.

Speaker Change: We continue to preserve our margin.

Speaker Change: We have no change in our ability to find opportunity to deploy capital.

Speaker Change: We have a strong capital and liquidity position. So we believe we can continue to manage capital through share repurchases. So as we're really beginning to shift our focus from riding our book for 2025 to planning for 2026, nothing has changed with our strategy between now and year end, we'll have great conversations have price discovery.

Bob: Just to remind everyone. The da Vinci is.

Bob: Not exactly but it behaves a bit like a quota share of runway limited there is no risk in da Vinci, that's not and renovate limited.

Bob: One of the benefits was some of the favorable development there was a little bit less ceded in da Vinci, then run very limited, but I would think of there's no shift in earnings and no shift in strategy between Renren da Vinci going forward, but in a given quarter there'll be a little bit of noise.

Speaker Change: We will sharpen our tools and tactics, but I think at the end of the day 26 is going to look a lot like 25 for us.

Speaker Change: Thank you.

Bob: Okay. Thank you.

Speaker Change: Sure.

Speaker Change: Yes.

Jimmy <unk>: We'll take our next question from Jimmy <unk> with Jpmorgan. Please go ahead.

Speaker Change: We'll take our next question from Josh Shanker with Bank of America. Please go ahead.

Jimmy: Hey, good morning.

Jimmy: I had a couple of questions first just on pricing, obviously prices have been coming down the last couple of years, but returns are still very attractive and.

Josh Shanker: Yes. Thank you just wanted to talk about management fees, a little bit I think.

Josh Shanker: Last quarter call you were pretty sure that management fees, it would be a little weaker.

Speaker Change: For you guys and for your peers as well so what gives you the confidence that rates won't continue to decline and we're not facing.

Josh Shanker: And then they bounce back real fast what's changed in the past.

Josh Shanker: A few months and also how does the Alphacat Omega Cat book.

Speaker Change: A soft reinsurance market.

Josh Shanker: And that bet winding down play into the numbers here.

Speaker Change: Yes.

Speaker Change: Kind of back to the comments, we've made on previous calls them a little bit earlier.

Bobby: Yes, I'll just make a couple comments I will turn it over to Bobby.

Speaker Change: Absolutely right there are price changes, but I think the real focus should be.

Bobby: No you're absolutely right I think we had a strong second quarter tends to be a light cat quarter that is not necessarily what's budgeted so we.

Speaker Change: Rate adequacy rates went up 50% in 2023 and over the last two quarters. We are talking about rate changes in the 10 ish percentage change obviously less for us because of our portfolio construction and access to business. So we believe that the market will continue to trade a bolt on terms and conditions and rates.

Bobby: Had greater earnings of greater catch up on our fees because of that and then obviously favorable development benefited our third party capital.

Bobby: Vehicles as well so that pushed us to recover some of the deferred fees more quickly.

Speaker Change: Alphacat Omega Kyle we're not a big <unk>.

Speaker Change: At the levels that were reset in 2023 as with any.

Speaker Change: Contributor, but I'll turn it over to Bob for more specifics.

Speaker Change: Financial market there'll be times, where buyers have a bit more to push on price and Theres times, where sellers have a bit more to push on price, but we don't see a downward trend to two rate inadequacy in.

Speaker Change: I mean as my prepared comments, Josh the management fee, we expect it to deferral to be a little bit longer we got it all back which is why the $56 million or guiding you back the $50 million for the third quarter in my prepared comments for the management team and as Kevin pointed out.

Speaker Change: In the near term, we continue to believe that rates will trade at highly adequate levels, whether they're up or down a little bit is something the market will decide as we move forward.

Speaker Change: Favorable development in the property cat side accelerated.

Speaker Change: <unk> ability to earn the performance fee, but we're still guiding it to $30 million for the next quarter. So 80, all in for Q3, and that's kind of what I refer to as the more stable area kind of sort of neutral.

Speaker Change: And then on buybacks it seems like you've been more active in the last few quarters.

Speaker Change: Then you had in the past I think the last three quarters combined you have taken out almost 10% of your shares so assuming a similar level of.

Speaker Change: So when I'm looking at the da Vinci, our income statement.

Speaker Change: Looks like premium growth was pretty healthy da Vinci, I guess, where I'm going.

Speaker Change: Profitability should we assume that buybacks continue at this space or is the current level inflated either to minimize the validus dilution done or make some other factors.

Speaker Change: Have you been able to convince alphacat investors to redeploy into your proprietary vehicles or why is there a difference between what we see.

Speaker Change: I think thanks for the question you are taking us back to fourth quarter, we consolidated some of the balance sheet freed up an enormous amount of trapped capital that would be account for a lot of the accelerated share repurchases that we did in Q4 Q1, we saw great opportunities. This quarter here this past quarter in Q2, the carryover into three so we've got an eight.

Speaker Change: At the firm wide level and property and what we see as da Vinci.

Speaker Change: Yes.

Speaker Change: Alphacat is.

Speaker Change: Not something as a vehicle that we purchased with.

Speaker Change: Validus and we're managing down we have.

Speaker Change: Broad and strong investor interest in da Vinci. So there is the migration of investors is not part of the story is really the ability for us to execute into the market and continue to grow both <unk> and da Vinci.

Speaker Change: $100 million mine.

Speaker Change: <unk> for the fact, we're going into the wind season, which may prevent which may provide opportunities in of itself. We are looking to deploy capital and return capital at attractive prices if it presents itself.

Speaker Change: And just bear with me.

Speaker Change: That da Vinci was there more opportunity to support both capital into da Vinci or the more capelin da Vinci. So the risk adjusted returns are the same.

Speaker Change: Thanks.

Speaker Change: Yes.

Speaker Change: We'll take our next question from Alex Scott with Barclays. Please go ahead.

Speaker Change: The strong growth there it says to me that you've leaned into da Vinci in the quarter or maybe you just had more capital.

Alex Scott: Hey, good morning.

Speaker Change: This is Bob just the way I look at it as debt.

Alex Scott: First one I had is on <unk>.

Alex Scott: Just following up on some of the prepared remarks around added.

Speaker Change: All of our property cat is going to our own account and da Vinci, we're not cultivating and the Africa space, that's kind of a multi risk strategy that doesn't.

Alex Scott: Outward reinsurance that you purchased and I think there is a cap on.

Speaker Change: Our purpose built balance sheets.

Alex Scott: Aggregate it was mentioned as well and just wanted to see if you could provide a little more detail around that and help us.

Speaker Change: Just to remind everyone. The da Vinci is.

Speaker Change: Not exactly this but it behaves a bit like a quota share of runway limited there is no risk in da Vinci Thats not an <unk> limited.

Just think through some of those things and accounting for what may or may not come from hurricane season.

Speaker Change: One of the benefits was some of the favorable development there was a little bit less ceded and da Vinci, then runway limited but I.

Alex Scott: Yes, Alex this is David I'll provide some additional comments so as we construct our Edwards portfolio, we have a lot of options with how we shape that portfolio with ceded reinsurance we buy reinsurance we purchased bonds. We also have the joint venture vehicles that share some of the risk with us.

Speaker Change: I would think of there's no shift in earnings and no shift in strategy between Renren da Vinci going forward, but in any given quarter there'll be a little bit of noise.

Speaker Change: Okay. Thank you.

Alex Scott: One thing that we did specifically from wind season last year wind season. This year was we continued to buy we bought additional ceded.

Speaker Change: We'll take our next question from Jimmy Buhler with Jpmorgan. Please go ahead.

Jimmy Buhler: Hey, good morning, I had a couple of questions first just on pricing, obviously prices have been coming down the last couple of years, but returns are still very attractive and.

Alex Scott: It is getting more efficient and specifically there were some seeded that was.

Alex Scott: Aside from our normal per currency.

Alex Scott: <unk> purchase of Cat bond, which was an accurate accurate in nature. We also have a cat bond, which is occurrence in nature. We have also some seeded reinsurance which is specifically second event to protect against accumulation of large events. Its alta in order to keep our net portfolio optimize the highest ROE, we can and protecting against scenarios.

Jimmy Buhler: For you guys and for your peers as well so what gives you the confidence that rates won't continue to decline and we're not facing.

Jimmy Buhler: A soft reinsurance market.

Jimmy Buhler: Yes.

Jimmy Buhler: Kind of back to the comments, we've made on previous calls them a little bit earlier is youre absolutely right. There are price changes, but I think the real focus should be rate adequacy rates went up 50% in 2023 and over the last two quarters. We are talking about rate changes in the 10 ish percentage change obviously less for us because of our portfolio.

Alex Scott: Where earnings could be impacted.

Alex Scott: Yeah.

Alex Scott: Got it okay. That's helpful.

Alex Scott: I just wanted to ask about the casualty business.

Alex Scott: You guys pulled back more than that.

Alex Scott: But I guess in some of the liability.

Jimmy Buhler: <unk> construction and access to business. So we believe that the market will continue to trade a bolt on terms and conditions and rates at the levels that were reset in 2023 as with any financial market there'll be times, where buyers have a bit more to push on price and Theres times, where sellers have a bit more to push on price.

Alex Scott: Is that something that changes your view at all in terms of reserve adequacy is there something you've already done a deeper review on this sort of.

Alex Scott: The action on the other side of it or is there new information.

Alex Scott: Are you still sort of implementing in the balance sheet.

Jimmy Buhler: But we don't see a downward trend to two rate inadequacy.

Alex Scott: I'll start and then I'll turn it over to Dave.

Alex Scott: Nothing has changed about.

Jimmy Buhler: In the near term.

Alex Scott: Reserves or anything about this this is more about how we want the structure of the portfolio as David mentioned.

Jimmy Buhler: Continue to believe that rates will trade at highly adequate levels, whether they're up or down a little bit is something the market will decide as we move forward.

Alex Scott: Five from a casualty perspective by every measure is a better year than 2004, but we want to see more persistence in that improvement and before we begin to reflect that.

Jimmy Buhler: And then on buybacks it seems like you've been more active in the last few quarters.

Jimmy Buhler: And then you had in the past I think the last three quarters combined you have taken out almost 10% of your shares so assuming a similar level.

Alex Scott: In.

Alex Scott: Our results just to make sure that.

Alex Scott: We are fully benefiting from the better claims management and the elevated.

Speaker Change: Profitability should we assume that buybacks continue at this space or is the current level inflated either to minimize the validus dilution or make some other factors.

Alex Scott: Compared to the trend.

Alex Scott: So when I think about our business much more.

Alex Scott: <unk>.

Alex Scott: The written portfolio and how it fit.

Speaker Change: I think thanks for the question you are taking us back to fourth quarter, we consolidated some of the balance sheet and we freed up an enormous amount of trapped capital that would be account for a lot of the accelerated share repurchases that we did in Q4 Q1, we saw great opportunities. This quarter here this past quarter in Q2, the carryover into three so we've got an 800.

Alex Scott: Its into the <unk>.

Alex Scott: Marginally benefits to the overall portfolio that we're writing than a reflection on the health of the legacy portfolio that was written.

Alex Scott: Jonathan.

Jonathan: Yes, I can address some of the portfolio movements that we've made with the casualty and specialty segment, we're always looking to optimize the portfolio. If you go back several years, we were overweight in credit and we grew general liability and professional liability into 2021 when rates were increasing.

Speaker Change: <unk> million dollars.

Speaker Change: Mindful of the fact, we're going into the wind season, which may prevent which may provide opportunities in of itself. We are looking to deploy capital and return capital at attractive prices if it presents itself.

Jonathan: Now we have more emphasis on the specialty book following the Validus acquisition.

Jonathan: The reductions in GL was really just part of that normal process and we've talked been talking about for about the last year and thats enough for all of our renewals to be touched once there's not one common renewal date, if that's what you're seeing there.

Speaker Change: Thanks.

Speaker Change: Yeah.

Speaker Change: We will take our next question from Alex Scott with Barclays. Please go ahead.

Alex Scott: Hey, good morning.

Speaker Change: Got it okay. Thank you.

Alex Scott: First one I had is on.

Jonathan: Sure.

Speaker Change: Just just following up on some of the prepared remarks around added.

Jonathan: Yes.

Speaker Change: We will take our next question from Wes Carmichael with Autonomous Research. Please go ahead.

Speaker Change: Outward reinsurance.

Speaker Change: And I think there is a cap on.

Wes Carmichael: Hey, Thank you good morning, Kevin in your prepared remarks, I think you talked about Florida renewal crediting rates and terms above the market I know you don't typically disclose P&L, but is there any color quantitatively you can.

Speaker Change: Aggregate, there was mentioned as well.

Speaker Change: I just wanted to see if you could provide a little more detail around that and help us.

Speaker Change: Just think through some of those things and accounting for what may or may not come from hurricane season.

Speaker Change: Share with us on how Youre, Florida cat exposures change since renewals.

Wes Carmichael: Yes.

Wes Carmichael: I think it's a combination of both but it's something that I've said and David said, we did grow into.

Speaker Change: Yes, Alex this is David I'll provide some additional comments so as we construct our <unk> portfolio, we have a lot of options with how we shape that portfolio with ceded reinsurance.

Wes Carmichael: The Florida renewal this year, we did it significantly above market term. So we feel really good about the economics.

Speaker Change: We buy reinsurance we purchased cat bonds. We also have the joint venture vehicles that share. Some other rest with US one thing that we did specifically from wind season last year wind season. This year was we continued to buy we bought additional ceded.

Wes Carmichael: If you break it down I think.

Wes Carmichael: Yes.

Speaker Change: It puts us from a market share perspective from southeast wind.

About where we were on a percentage of equity before to the levels. We were prior to the acquisition of Validus. So last year, a lot of our growth into Florida came not from expanding lines that we were on but making sure. We executed the validus lines. This year, we were able to bring about underweight market share for southeast wind back up to.

Speaker Change: It is getting more efficient and specifically there were some seeded that was.

Speaker Change: Sides of our normal per currency did we bought purchase of Cat bond, which was an accurate accurate in nature. We also have a cap on which is occurring in nature.

Speaker Change: Also some seeded reinsurance, which is specifically second events to protect against accumulation of large events. Its alta in order to keep our net portfolio optimized and the highest ROE, we can and protecting against scenarios where earnings could be impacted.

Speaker Change: Our market share.

Speaker Change: On a relative basis.

Speaker Change: Same percent of equity that we had prior to validus.

Speaker Change: Got you. Thanks, that's helpful.

Elyse Greenspan: And maybe as a follow up it's probably a little bit of a tough one to quantify but a question we get often during the investors and you mentioned the prop cat book the largest it's been but is there any level of industry losses here in one season that you think might recapitalize pricing in the prop cat market for January.

Speaker Change: Got it okay. That's helpful.

Speaker Change: I just wanted to ask about the casualty business.

Speaker Change: <unk>.

Speaker Change: You guys pulled back a little more than I would've guessed and some of the general liability.

Speaker Change: Is that something that changes your view at all in terms of reserve adequacy is there something you've already done a deeper review on and this sort of.

Speaker Change: I think it.

Speaker Change: Lets trace to where we are and so this year is already setting up from an aggregate basis to be a very substantial cat year.

Speaker Change: The action on the other side of it or is there new information.

Speaker Change: I think a lot of it happens a lot of the.

Speaker Change: Are you still sort of implementing in the balance sheet.

Speaker Change: The impact from an event really is specific to where the event. It will have a very different effect on nationwide accounts of it hits in Florida than if it hits in the northeast. So I think larger events are going to have bigger impacts.

Dave: Yes ill start and then I'll turn it over to Dave.

Speaker Change: Nothing has changed about.

Speaker Change: Reserves or anything about this this is more about how we want the structure of the portfolio as David mentioned 25 from a casualty perspective by every measure is a better year than 'twenty, four, but we want to see more persistence and that improvement before we begin to reflect that.

Speaker Change: In general the reinsurance market is attaching higher so I would say it also has to be a probably a larger event than what we would have had prior to 2023, but it's pretty hard to do.

Speaker Change: In.

Speaker Change: To put a fine point on it if you look back at Halloween.

Speaker Change: Our results just to make sure that.

Speaker Change: We are fully benefiting from better claims management and the elevated.

Speaker Change: Our Milton they had relatively.

Speaker Change: <unk>.

Speaker Change: Right compared to the trend so when I think about it this is much more about.

Speaker Change: The impact wasn't as profound as it would have been prior to 2023, so something above that level perhaps.

Speaker Change: The written <unk>.

Speaker Change: And how it fits into the.

Speaker Change: Thank you very helpful.

Speaker Change: And marginally benefits the overall portfolio that we're writing than a reflection on the health of the legacy portfolio that was written.

Speaker Change: We'll take our next question from Mike Zaremski with BMO.

Speaker Change: Yeah.

Speaker Change: If you add something yes, I can address some of the portfolio movements that we've made with the casualty and specialty segment, we're always looking to optimize the portfolio. If you go back several years, we were overweight credit and we grew general liability and professional liability into 2021 when rates were increasing.

Mike Zaremski: Hey, good morning.

Speaker Change: Yes.

Speaker Change: Question on the.

Speaker Change: You did a good job of kind of giving us data points on.

Speaker Change: And why you are.

Speaker Change: Mid year.

Speaker Change: Portfolio is constructed better than the market average.

And now we have more emphasis on the specialty book following the Validus acquisition. The reductions NGL was really just part of that normal process and we've talked been talking about for about the last year and thats enough for all of our renewals to be touched upon so there's not one common renewal date.

Speaker Change: Do you feel and you said it was due to scale and you kind of talked about 80% of the premium eroded private market terms at above market rates. So I'm just kind of curious is that durable I don't know if there is any like is this.

Speaker Change: What youre seeing there.

Speaker Change: Is it is there any historical precedents for this despite of adult I'd have to go back and kind of check all your midyear renewals versus the market I haven't done that.

Got it okay. Thank you.

Speaker Change: Sure.

Speaker Change: We'll take our next question from Wes Carmichael with Autonomous Research. Please go ahead.

Speaker Change: The fly.

Speaker Change: Im kind of curious if if you're in this.

Speaker Change: This new scale, you think has had some duration in terms of your pricing versus the marketplace.

Speaker Change: Hey, Thank you good morning, Kevin in your prepared remarks, I think you talked about Florida renewals and getting rates and terms above the market. I know you don't typically disclose P&L, but is there any color quantitatively you can share with us on how your Florida cat exposure has changed since renewals.

Speaker Change: Yes, I would say I'm enormously proud of the team's execution, 80% is a great number to achieve with private terms, we always have a high percentage of private terms within our portfolio I think there's two things that we tried to highlight one is this was exceptionally good and great execution and secondly, because we're.

Speaker Change: Yes.

Speaker Change: I think it's a combination of both something that I've said and David said, we did grow into.

Speaker Change: The Florida renewal this year, we did it significantly above market term. So we feel really good about the economics.

Speaker Change: Sure.

Speaker Change: So broadly integrated with the largest buyers are conversations began earlier and more broadly and the size of our capacity in the expert.

Speaker Change: If you break it down I think.

Speaker Change: It puts us from a market share perspective, <unk> southeast wind.

Speaker Change: About where we were on a percentage of equity before to the levels. We were prior to the acquisition of Validus.

Speaker Change: We bring allows us to have an increasing percentage of private terms in different areas of our business. So I would say its not something thats, new I would say, 80% is on the high end of our execution.

Speaker Change: So last year, a lot of our growth into Florida came not from expanding lines that we were on but making sure. We executed the validus lines. This year, we were able to bring out an underweight market share for southeast wind back up to our market share.

Speaker Change: I'm very proud of that but.

Speaker Change: Hard to quantify more specifically Dave.

Speaker Change: Yes, I would say it was a great renewal for us and a couple of reasons in my mind on that is really just our risk selection capabilities and our access to business and those two things I believe are sustainable and the market was not uniform. It was an underwriter's market you had to pick and choose risks.

Speaker Change: On a relative basis at the same percent of equity that we had prior to validus.

Speaker Change: Got you. Thanks, that's helpful.

Speaker Change: And maybe as a follow up it's probably a little bit of a tough one to quantify but a question we get off term investors and you mentioned the prop cat books. The largest it's been but is there any level of industry losses here in wind season that you think might recapitalize pricing in the prop cat market for January.

Speaker Change: Our underwriters know that business better than anyone and we think we have the best access there. So that was a differentiator not just in Florida, which allowed us to get to the 80% of the book on private terms and deliver flat rates, but also in understanding and being able to execute on the other key areas. There, we talked about California, and the key there was understanding the wildfire apparel.

Speaker Change: I think.

Speaker Change: Lets trace to where we are and so this year is already setting up from an aggregate basis to be a very substantial cat year.

Speaker Change: And being able to figure out how to execute into a post loss market quicker than anyone else and then the loss impacted nationwide's that was really about risk selection and then our ability to get those lines.

Speaker Change: A lot of it happens a lot of the.

Speaker Change: The impact from an event really is specific to where the event hit it will have a very different effect on nationwide accounts, if it hits in Florida than if it hits in the northeast.

Speaker Change: The team really did that that's what they do best in show leadership and delivered a great portfolio.

Speaker Change: So I think <unk>.

Speaker Change: Larger events are going to have bigger impacts in.

Speaker Change: Got it and my follow ups on <unk>.

Speaker Change: Florida performed.

Speaker Change: And Kevin you brought it up in your prepared remarks.

Speaker Change: Beneficial just curious.

Speaker Change: You don't have to if you have a prep.

Gerry: Gerry quantification of how beneficial is that maybe that's not something you want to share but curious.

Speaker Change: To put a fine point on it if you look back at Halloween.

Speaker Change: Our Milton they had relatively.

Gerry: Are the reforms meaningful in terms of the impact <unk>.

Speaker Change: The impact wasn't as profound as it would have been prior to 2023, so something above that level perhaps.

Gerry: <unk> will have on the on the loss ratio ultimately and if so are those.

Speaker Change: Thank you very helpful.

Gerry: That impact is already being competed away are they fully understood by the marketplace or is that something that still needs more time to play out.

Mike Zaremski: We will take our next question from Mike Zaremski with BMO.

Gerry: Yes, so it's a more meaningful impact for the.

Mike Zaremski: Hey, good morning.

Speaker Change: Yes.

Gerry: For the domestic carriers or for any carrier in Florida.

Speaker Change: Question on the.

Speaker Change: I think you did a good job of kind of giving us data points on.

Gerry: Because it affects all of their claims for us where our excess of loss on the cat side predominantly.

Speaker Change: And why you are.

Gerry: We are still an owner of.

Speaker Change: Mid year.

Speaker Change: Portfolio is constructed better than the market average.

Gerry: Tower Hill, and we've seen the benefit there. Your question about is it some of it being competed away we have seen some rate reductions in Florida, which I think are appropriate.

Speaker Change: Do you feel and you said it was due to scale and you kind of talked about 80% of the premium eroded private market terms above market rates. So I'm just kind of curious is that durable I don't know if there is any like is this.

Gerry: <unk>.

Gerry: We're still seeing strong profitability and strong health in the primary market. There. So from our standpoint, it's something that we reflect in our underwriting, but its a significantly lower effect than the benefit that the.

Speaker Change: Is it is there any historical precedents for this this wide of adult I'd have to go back and kind of check all your major renewals versus the market I haven't done that.

Gerry: Insurers are receiving within the market, but again there is price competition being introduced to manage that and put some of the benefit back to policyholders.

Speaker Change: Off the fly.

Speaker Change: Kind of curious if.

Speaker Change: This new scale, you think has had some duration in terms of your pricing versus the marketplace.

Gerry: Yes, I would just add to that that the.

Gerry: Dynamic where there is.

Gerry: Markets are depopulating in private markets are more competent taking on risks that definitely has something to do with the tort reform and the ability for the insurers to navigate that and that benefits us as well because when the private markets grow their exposure they have more reinsurance to buy and the growing demand was a factor that helped us and the opportunities in Q2.

Speaker Change: Sure.

Speaker Change: So broadly integrated with the largest buyers are conversations begin earlier and more broadly and the size of our capacity in the expert.

Gerry: Thank you.

We will take our next question from Meyer Shields with <unk>.

Speaker Change: Great. Thanks, so much.

Speaker Change: We bring allows us to have an increasing percentage of private terms in different areas of our business. So I would say, it's not something that's new I would say, 80% is on the high end of our execution.

Speaker Change: And you're correct, the Florida I'm trying to understand you talked about growth at flat rates and I was wondering if there's a way of breaking that down into increasing confidence in the reforms on the one hand or increasing demand from clients.

Speaker Change: We're very proud of that but.

Speaker Change: On the other hand in terms of which of those.

Dave: Hard to quantify more specifically Dave.

Speaker Change: Okay.

Speaker Change: Different components impacted your willingness to grow.

Dave: Yes, I would say it was a great renewal for us and a couple of reasons in my mind on that is really just our risk selection capabilities and our access to business and those two things I believe are sustainable in the market was not uniform. It was an underwriter's market you had to pick and choose risks.

Speaker Change: Yes, Hi, Mike This is David.

Mike Zaremski: I think so.

Mike Zaremski: With her tort reform one of the takeaways that helps the market and helps us execute into the market is really just the stability. It provides so we have been.

Dave: Our underwriters know that business better than anyone and we think we have the best access there. So that was a differentiator not just in Florida, which allowed us to get to the 80% of the book on private terms and deliver flat rates, but also in understanding and being able to execute on the other key areas. There that we talked about California, and the key there was understanding the wildfire apparel.

Mike Zaremski: A player in Florida for decades, but for many years, we were underweight artley because of the negative effects of the legal system now is in a much better spot in the profitability is a much better spot.

Mike Zaremski: This year, we had opportunities because business was less impacted and we also had growing demand like I mentioned with private markets taking on more we also had the benefit of the Florida Hurricane Cat fund moving up and its attachment. So the new demand was below that in those lower layers are layers that we target because of the high risk return so.

Dave: And being able to figure out how to execute into a post loss market quicker than anyone else and then the loss impacted nationwide's that was really about risk selection and then our ability to get those lines. So that the team really did that that's what they do best show leadership and delivered a great portfolio.

Mike Zaremski: As a whole enabled us to act quickly.

Mike Zaremski: When buyers are looking to secure new capacity, they often will be more interested in securing a private deal with a company like us so our ability to.

Dave: Got it and my follow ups on <unk>.

Dave: Florida performed.

Mike Zaremski: Copay capacity and buying that at our terms rather than wait for the market to come up with the clearing price really wasn't advantage in how we execute into those private deals in Q2.

Speaker Change: And Kevin you brought it up in your prepared remarks.

Dave: Beneficial just curious.

Speaker Change: You don't have to if you have a prep.

Speaker Change: Gerry quantification of how beneficial is that maybe thats not something you want to share but curious.

Mike Zaremski: That sounds really positive.

Speaker Change: Kevin I over interpreting things that you mentioned having.

Speaker Change: Are the reforms meaningful in terms of the impact.

Speaker Change: Alright, any class of business and I know in the past you've talked.

Speaker Change: <unk> will have on the on the loss ratio ultimately and if so are those pas.

Speaker Change: A lot of caution with regard to commercial auto should we interpret this as a change or am I trying too hard.

Speaker Change: Positive impacts already being competed away or are they fully understood by the marketplace or is that something that still needs more time to play out.

Speaker Change: It had a bit of poetic license there our appetite with regard to commercial auto Hasnt change are also not a large rider of workers' comp neither of those two things have changed.

Speaker Change: Yes, so it's a more meaningful impact for the for the domestic carriers or for any carrier in Florida.

Speaker Change: Okay, all right just a clarification.

Speaker Change: Because it affects all of their claims for us where our excess of loss on the cat side predominantly.

Speaker Change: And then this is I guess a question for Bob and I can take this offline. If that's helpful. But I think Kevin mentioned increased transparency is it a ton of work for us to get a an.

Speaker Change: We are still an owner of.

Speaker Change: Tower Hill, and we've seen the benefit there. Your question about is it some of it being competed away we have seen some rate reductions in Florida, which I think are appropriate.

Speaker Change: And income statement on a retained basis, rather than consolidated and then working.

Speaker Change: And.

Speaker Change: We're still seeing strong profitability and strong health in the primary market. There. So from our standpoint, it's something that we reflect in our underwriting but it is significantly lower effect than the benefit that the.

Speaker Change: That's a good question Meyer I mean, the challenge we have is the GAAP accounting rules and the amount of breaking it out we try and give you the breakout.

Speaker Change: Give you the breakout of the retained investment income, which is about 70% of the overall managed and that's pretty consistent with.

Speaker Change: Insurers are receiving within the market, but again there is price competition being introduced to manage that and put some of the benefit back to policyholders.

Speaker Change: We've given you some indications on the retained piece like on the favorable development I talked about that in property cat, that's about half of it stays with us.

Speaker Change: Yes, I would just add to that that the dynamic where there is.

Speaker Change: We don't really have a good disclosure we were looking we look at it internally and to get it externally would be an enormous amount of reconciliation that our legal department would probably.

Speaker Change: Public markets are depopulating in private markets are more competent taking on risk that definitely has something to do with the tort reform and the ability for the insurers to navigate that and that benefits us as well because when the private markets grow their exposure they have more reinsurance to buy and the growing demand was a factor that helped us and the opportunities in Q2.

Speaker Change: Put us through the grinder happy to talk to you offline.

Speaker Change: About it I know you talked to Keith a lot about it.

Speaker Change: And how we think about it we are giving you indications about half the property cat gets allocated over to da Vinci.

Speaker Change: Thank you.

Speaker Change: Top line, we've got the 15% sessions on Fontana, we talk about that but putting it all together is a.

Meyer Shields: We'll take our next question from Meyer Shields with K B W.

Meyer Shields: Great. Thanks, so much.

Onerous exercise just given the nature of how we're structured.

Meyer Shields: And you're correct, the Florida I'm trying to understand you talked about growth at flat rates and I was wondering if there's a way of breaking that down into increasing confidence in the reforms on the one hand or increasing demand from clients.

Speaker Change: But we're always seeking to understood.

Speaker Change: I'm sorry go ahead.

Speaker Change: So like I say, it was closing up and saying we're always trying to seek to give you more insight into it.

Meyer Shields: On the other hand in terms of which of those.

Speaker Change: And more information, how you can cut down to the core and get to down to the managed retain numbers.

Meyer Shields: Different.

Meyer Shields: <unk> impacted your willingness to grow.

Meyer Shields: Yes, Hi, Mike This is David.

Speaker Change: Yes, no I completely.

Speaker Change: I appreciate the color.

Mike Zaremski: I think so.

Speaker Change: Yes.

Speaker Change: With her tort reform one of the takeaways that helps the market and helps us execute into the market is really just a stability. It provides so we have been.

Speaker Change: We'll take our next question from Brian Meredith with UBS.

Brian Meredith: Yes, Thanks, Bob first one for you.

Speaker Change: The player in Florida for decades, but for many years, we were underweight, partly because of the negative effects of the legal system now is in a much better spot in the profitability is a much better spot. So this year, we had opportunities because business was loss impacted and we also had growing demand like I mentioned with private market is taking on more we also had the benefit of the Florida.

Speaker Change: This continues to be some discussion about Bermuda tax credits potentially coming through can you give us an update on kind of where that stands and what the potential benefit for you all maybe.

Speaker Change: Yeah, Thanks, Brian touched upon it in my prepared comments that nothing's changed okay. They havent come out with the with the with what they have is the tax reform Commission is working with the Ministry of finance to give them. Some recommendations that are still working on that and the premier.

Speaker Change: Hurricane Cat fund moving up and its attachment so the new demand was below that in those.

Speaker Change: Our layers that we target because of the high risk return so that as a whole enabled us to act quickly.

Speaker Change: Committed to give us an ability to give our perspective on it before it gets legislated, but what this does is the EPA as we call. It the economic tax adjustment gives us the ability to offset cash payments.

Speaker Change: When buyers are looking to secure new capacity, they often will be more interested in securing a private deal with a company like us so our ability to.

Speaker Change: Copay capacity and buying that at our terms rather than wait for the market to come up with the clearing price really wasn't advantage in how we execute into those private deals in Q2.

Speaker Change: On our taxes as opposed to effective rate relief. It doesn't change the effective tax I talked about that being 13% in my prepared comments, but the noncontrolling interest pay a very nominal amount of tax.

Speaker Change: That sounds really positive.

Speaker Change: That reduces the tax to run re shareholders is just slightly above 15%.

Speaker Change: Kevin I over interpreting things that you mentioned having.

Alright, any class of business and I know in the past you've talked.

Speaker Change: And then I guess, just a follow up and I was I was under the impression that maybe it could be an offset to G&A expenses.

Speaker Change: About a lot of caution with regard to commercial auto should we interpret this as a change or am I trying too hard.

Speaker Change: Yes.

No okay.

Speaker Change: It had a bit of poetic license our appetite with regard to commercial auto Hasnt change are also not a large rider of workers' comp neither of those two things have changed.

Speaker Change: It doesn't.

Speaker Change: It's a cash credit.

Speaker Change: Gotcha Alright helpful. Thanks, and then the second question I'm just curious.

Speaker Change: Big picture.

Speaker Change: Okay, all right just a clarification.

Speaker Change: We've definitely seen capital coming back into the reinsurance industry and property Cat I know a lot of it's been cat bond, but maybe you can kind of talk a little bit about how disciplined that capital is that youre seeing is it did any different than maybe prior soft cycles, we've seen.

Speaker Change: And then.

Speaker Change: I guess a question for Bob and I can take this offline. If that's helpful. But I think Kevin mentioned increased transparency is it a ton of work for us to get a an income statement on a retained basis rather than <unk>.

Speaker Change: Validated and then working that.

Speaker Change: Yes, I would say it's been disciplined.

Meyer Shields: That's a good question Meyer I mean, the challenge we have is the GAAP accounting rules and the amount of breaking it out we try and give you the breakout.

Speaker Change: Capital is always interested in always comes into it.

Speaker Change: I think formations of new companies.

Speaker Change: It continues to be limited.

Speaker Change: Cat bonds is.

Meyer Shields: We gave you the breakout of the retained investment income, which is about 70% of the overall managed and that's pretty consistent.

Speaker Change: An attractive area to people.

Speaker Change: Probably a little less attractive than it was a year ago, but that market remains disciplined and then our discussions with.

Meyer Shields: We've given you some indications on the retained piece like on the favorable development I talked about that in property cat I'd say about half of it stays with us, but we don't really have a good disclosure. We're looking we look at it internally and to get it externally would be an enormous amount of reconciliation that our legal department would probably put us through the grinder.

Speaker Change: Investors coming in a very return focused they have a good understanding of the market.

Speaker Change: So I don't see.

Speaker Change: Some of the issues that we've seen before with the influx of capital kind of wanting to be in the class regardless of return.

Speaker Change: Being part of the.

Meyer Shields: Happy to talk to you offline.

Speaker Change: The dialogue at this point.

Meyer Shields: I know you talked to Keith a lot about it.

Speaker Change: Great very helpful. Thank you.

Meyer Shields: And how we think about it we are giving you indications about half the property cat gets allocated over to da Vinci.

Speaker Change: Sure.

Speaker Change: And we will take our next question from Andrew Anderson with Jefferies.

On the top line we have.

Meyer Shields: Got the 15% sessions on Fontana, we talk about that but putting it altogether is.

Andrew Anderson: Hey, thanks.

Speaker Change: Recognizing you gave us an MTBE guide for other property, but if we look at it on a gross basis and just thinking about the second half of the year should we be thinking about this segment kind of following primary E&S rates.

Meyer Shields: <unk>.

Meyer Shields: Onerous exercise just given the nature of how we're structured.

Meyer Shields: But we always speak in detail I understood.

Speaker Change: I'm sorry go ahead.

Speaker Change: So like I say, it was closing up and saying we're always trying to seek to give you more insight into it.

Speaker Change: Hey, Andrew this is David.

Speaker Change: So I'll talk a little more about how we're thinking about the overall segment and whats in there and I guess first of all starting with the overall property segment. We have a lot of ways. We can deploy cat capacity in the last few years, we've been had a preference to deploy that cat capacity in that property cat excess of loss product.

Speaker Change: And more information, how you can cut down to the core and get to down to the managed retain numbers.

Speaker Change: Yes.

Speaker Change: I appreciate the color.

Speaker Change: Yes.

Speaker Change: But we also deploy cat capacity in the E&S space and that goes into the other property segment. We also progressed in quota share business in that segment, which is less cat exposed and isn't under as much rate pressure as what we're seeing in cat E&S and overall the whole sub segment on other property is performing well, which kind of leads to where we get the pressure looking forward where what monitor.

Speaker Change: We will take our next question from Brian Meredith with UBS.

Brian Meredith: Yes, Thanks, Bob first one for you.

Speaker Change: There's continued to be some discussion about Bermuda tax credits potentially coming through can you give us an update on kind of where that stands and what the potential benefit for you all maybe.

Thanks, Brian I touched upon it in my prepared comments that nothing has changed okay. They havent come out with the with the with what they have is the tax Reform Commission is working with the Ministry of finance to give them. Some recommendations that are still working on that and the premier.

Speaker Change: And that really closely we have a lot of tools to manage that first of all when we look at the business on a specific location basis rated on a location basis and have real time info on how it's trading as we are able to make adjustments as needed you already shifting more of our business towards middle market versus large account. We also have options on how we shape. The book receded. So we have a lot of.

Speaker Change: Committed to give us an ability to give our perspective on it before it gets legislated, but what this does is the Etfs, we called the economic tax adjustment gives us the ability to offset cash payments on our taxes as opposed to effective rate relief. It doesn't change the effective tax I talked about that.

Speaker Change: A ways to navigate.

Speaker Change: What's coming as is too soon to tell exactly where the market will be but we feel well placed to navigate it.

Thanks, and then just back on fee income if I look at kind of the acquisition ratio and cat. It was kind of up year over year, but it was quite a bit stronger than <unk> I would've thought we would be seeing some benefit from total fee income in that acquisition line as there may be a lag dar or perhaps profit commissions.

Speaker Change: <unk>, 13% in my prepared comments, but the noncontrolling interest pay a very nominal amount of tax so that reduces the tax to <unk> shareholders is just slightly above 15%.

Speaker Change: I guess, just a follow up and I was I was under the impression that maybe it could be an offset to G&A expenses.

Speaker Change: They are coming through in real time as we are.

Speaker Change: A lot of our fees that we get off of the joint ventures will come through the Noncontrolling interest actually a very small amount come through when you think about the performance fees management fees. So youll see that that comes through non controlling interest, which is what we try and show and some of the supplemental information.

Speaker Change: Yes.

Speaker Change: No okay.

Speaker Change: It doesn't.

Speaker Change: It's a cash credit.

Speaker Change: Gotcha Alright helpful. Thanks, and then the second question I'm just curious.

Speaker Change: Big picture.

Speaker Change: In our in our attachments.

Speaker Change: Thank you. Thank you.

Speaker Change: And we'll take our last question from David Mcmahon <unk> with Evercore.

David Mcmahon: Hey, Thanks, good morning.

Speaker Change: Yes, I would say it's been disciplined.

Speaker Change: Squeezing me in on.

Speaker Change: Just on the private transactions you guys were able to do in in <unk>.

Speaker Change: Capital is always interested in always comes into it.

Speaker Change: I think formations of new companies.

Speaker Change: Kat.

Speaker Change: It sounded like 80% was on the high end.

Speaker Change: <unk> continues to be limited.

Speaker Change: Cat bonds is.

Speaker Change: Wondering maybe if you could talk about how pricing wise on that 80% of private deals versus the other 20%.

Speaker Change: An attractive area to people.

Speaker Change: Probably a little less attractive than it was a year ago, but that market remains disciplined and then our discussions with.

David Mcmahon: Hey, David This is David.

Speaker Change: Investors coming in a very return focused they have a good understanding of the market.

Speaker Change: So.

Speaker Change: We're comfortable with the pricing was above market.

Speaker Change: So I don't see.

Speaker Change: It wasn't a one size fits all markets. So we don't have specific details on that.

Speaker Change: Some of the issues that we've seen before with the influx of capital kind of wanting to be in the class regardless of return really being part of the.

Speaker Change: But we were able to execute into Florida.

Speaker Change: Find up business early this is a large portion of our book to be on private terms and it really was the differentiator we believe in letting us grow into the market and land, Florida at about flat versus down there was rate pressure overall in the market on the last non loss impacted layers and the top players like we talked about so far.

Speaker Change: The dialogue at this point.

Speaker Change: Great very helpful. Thank you.

Speaker Change: Sure.

Speaker Change: And we will take our next question from Andrew Anderson with Jefferies.

Andrew Anderson: Hey, thanks.

Andrew Anderson: Recognizing you gave us an MTBE guide for other property, but if we look at it on a gross basis and just thinking about the second half of the year should we be thinking about the segment kind of following primary E&S rates.

Speaker Change: Overall, Florida book to be flat was a great result.

Speaker Change: Got it okay.

Speaker Change: And then maybe just following up quickly I think Alex had had tried and I'll I'll take another shot at it but just just on the general liability book or General Casualty book, where you mentioned you're cutting.

David: Hey, Andrew this is David.

Speaker Change: Exposure by 30% or you have cut exposure by 30% over the last year.

Speaker Change: Have you guys taken any reserve actions or how much in terms of reserve actions have you guys taken on that.

Speaker Change: Part of the book the back book now, where you may have gotten off off that risk.

Speaker Change: Yes, we think about reserving obviously, we start at the top of the House and then we break it into the segments within within the casualty and specialty segment. We talked about this last year. We have added some reserves from redundancy within certain specialty in certain casualty classes to the GL portfolio.

Speaker Change: But theres nothing that.

Speaker Change: As unusual with any book of business there are certain classes that are above <unk>.

Speaker Change: Producing.

Speaker Change: Results above trend to others that are below trend, but.

Speaker Change: On balance the portfolio of the casualty specialty book is in a very healthy state. So theres nothing really to report with regard to any changes within over the quarter.

Speaker Change: Ways to navigate what's coming so it's too soon to tell exactly where the market will be but we feel well placed to navigate it.

Speaker Change: Thanks, and then just back on fee income if I look at kind of the acquisition ratio and cat. It was kind of up year over year, but it was quite a bit stronger than <unk> I would've thought we would be seeing some benefit from total fee income in that acquisition line as there may be a lag dar or perhaps profit commissions.

Speaker Change: Great. Thank you.

Speaker Change: This does conclude today's question and answer session I will now turn the program back over to Kevin O'donnell for any additional or closing remarks.

Kevin O'donnell: Thank you everybody for joining today's call. We're proud of where the company is going into the second half of the year and we remain optimistic about 2026. So I look forward to speaking to you in a couple of months. Thank you.

Speaker Change: Now they should be they are coming through in real time as we.

Speaker Change: A lot of our fees that we get off of the joint ventures will come through the non controlling interest actually a very small amount come through when you think about the performance fees management fees. So youll see that that comes through non controlling interest, which is what we try and show and some of the supplemental information.

Kevin O'donnell: This concludes the Renaissance three second quarter 2025 earnings call and webcast.

Speaker Change: Please disconnect your line at this time and have a wonderful.

Speaker Change: In our in our attachments.

Speaker Change: Thank you. Thank you.

Speaker Change: And we will take our last question from David Mcmahon <unk> with Evercore.

Speaker Change: Hey, Thanks, good morning.

Speaker Change: Thanks for squeezing me in on.

Speaker Change: Just on the private transactions you guys were able to do in in <unk>.

Speaker Change: Kat.

Speaker Change: It sounded like 80% was on the high end.

Speaker Change: Wondering maybe if you could talk about how pricing wise on that 80% of private deals versus the other 20%.

Speaker Change: Hey, David This is David.

Speaker Change: So.

Speaker Change: We're comfortable with the pricing with above market.

Speaker Change: It wasn't a one size fits all markets. So we don't have specific details on that.

Speaker Change: But we were able to execute into Florida.

Speaker Change: Find up business early this is a large portion of our book to be on private terms and it really was the differentiator we believe in letting us grow into the market and.

Speaker Change: Land, Florida at about flat versus down there was rate pressure overall in the market on the last non loss impacted layers and the top players like we talked about so for our overall sort of book to be flat was a great result.

Speaker Change: Got it okay.

Speaker Change: And then maybe just following up quickly I think Alex had had tried and I'll take another shot at it but just just on the general liability book or General Casualty book, where you mentioned you're cutting.

Speaker Change: <unk> exposure by 30% or you have cut exposure by 30% over the last year.

Speaker Change: Have you guys taken any reserve actions or how much in terms of reserve actions have you guys taken on that.

Speaker Change: Part of the book the back book now, where you may have gotten off off that risk.

Speaker Change: But theres nothing that is unusual with in any book of business. There are certain classes that are above <unk>.

Speaker Change: Producing.

Speaker Change: Results above trend to others that are below trend, but.

Speaker Change: On balance the portfolio of the casualty specialty book is in a very healthy state. So theres nothing really to report with regard to any changes within over the quarter.

Speaker Change: Great. Thank you.

Speaker Change: This does conclude today's question and answer session I will now turn the program back over to Kevin O'donnell for any additional or closing remarks.

Speaker Change: This concludes the Radisson three second quarter 2025 earnings call and webcast.

Speaker Change: Please disconnect. Your line at this time and have a wonderful day.

Speaker Change: Hum.

Speaker Change: [music].

Speaker Change: I don't know.

Speaker Change: Hmm.

Q2 2025 RenaissanceRe Holdings Ltd Earnings Call

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