Renaissancere Holdings Q4 2025 RenaissanceRe Holdings Ltd Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 RenaissanceRe Holdings Ltd Earnings Call
Operator today.
At this time I would like to welcome everyone to the Renaissance re fourth quarter and year end 2025 earnings conference call and webcast.
After their prepared remarks, we will open the call for your questions.
Instructions will be given at that time.
Lastly, if you should need operator assistance, Please press star zero.
Thank you.
I will now turn the call over to keep them Mchugh Senior Vice President of Finance and Investor Relations. Please go ahead.
Thank you Nikki good morning, and welcome to Renaissance Reis fourth quarter and year end 2025 earnings Conference call. Joining me today to discuss our results are Kevin O'donnell, President and Chief Executive Officer, Bob <unk>, Executive Vice President and Chief Financial Officer, and David Maura Executive.
Active vice President and group Chief underwriting officer to begin some housekeeping matters. Our discussion today will include forward looking statements, including new and updated expectations for our business and results of operations. It is important to note that actual results may differ materially from the expectations.
Today.
Additional information regarding the factors shaping these outcomes can be found in our SEC filings and in our earnings release during todays call. We will also present non-GAAP financial measures reconciliations to GAAP metrics and other information concerning non-GAAP measures may be found in our earnings release and financial supplement which are available.
<unk> on our website at <unk> Dot com and now I'd like to turn the call over to Kevin Kevin.
Thanks Keith.
Good morning, everyone and thank you for joining today's call.
The company, we have built is fundamentally different from what it was just a few years ago, we are larger and significantly more diversified geographically by line of business and by source of income with much larger contributions from investments and fees.
I'll begin with this context, because this time last year.
Few would have predicted the strong financial performance, we delivered in 2025 or.
Our industry faced multiple headwinds, including the California wildfires.
Softening reinsurance market and lower interest rates.
In the face of these headwinds our larger size and greater diversification allowed us to deliver strong financial results.
Bob will of course walk through the financials, but first I would like to highlight some of the most notable achievements.
And tangible book value per share plus accumulated dividends our primary metric grew by 30%.
This is the third year in a row, where we have grown this metric by over 25% as a result over the last three years.
We have more than doubled tangible book value per share.
Capital Management was also notable.
We repurchased $650 million of our shares during the fourth quarter.
Kevin O'Donnell: I begin with this context because this time last year, few would have predicted the strong financial performance we delivered in 2025. Our industry faced multiple headwinds, including the California wildfires, a softening reinsurance market, and lower interest rates. In the face of these headwinds, our larger size and greater diversification allowed us to deliver strong financial results. Bob will, of course, walk through the financials, but first, I would like to highlight some of the most notable achievements. Operating income was $1.9 billion. Operating ROE was 18%, and tangible book value per share plus accumulated dividends, our primary metric, grew by 30%. This is the third year in a row where we have grown this metric by over 25%. As a result, over the last 3 years, we have more than doubled tangible book value per share.
Kevin O'Donnell: I begin with this context because this time last year, few would have predicted the strong financial performance we delivered in 2025. Our industry faced multiple headwinds, including the California wildfires, a softening reinsurance market, and lower interest rates. In the face of these headwinds, our larger size and greater diversification allowed us to deliver strong financial results. Bob will, of course, walk through the financials, but first, I would like to highlight some of the most notable achievements. Operating income was $1.9 billion. Operating ROE was 18%, and tangible book value per share plus accumulated dividends, our primary metric, grew by 30%. This is the third year in a row where we have grown this metric by over 25%. As a result, over the last 3 years, we have more than doubled tangible book value per share.
13% of our shares over the course of 2025 and 17% of our shares since the first quarter of 2024, when we began repurchasing post validus.
I am pleased to report that we have now repurchased more shares than we issued in connection with the Validus acquisition.
Cumulative return on our shares since then a little over two years ago has been around 30%. This.
This demonstrates our ability to raise capital when we have an attractive opportunity will reward investors by returning capital as we realize its benefits.
In the face of these headwinds, our larger size and greater diversification allowed us to deliver strong financial results.
Bob will, of course, walk through the financials. But first, I would like to highlight some of the most notable achievements.
And execute transactions with minimal long term dilution.
Operating income was 1.9 billion dollars.
Bob will speak to in greater depth regarding our financial results, but overall I am proud of our performance.
Moving now to address strategic results in 2025.
Operating Roe was 18% and tangible book. Value per share plus accumulated, dividends our primary metric grew by 30%.
Strategically if 2024 was about retaining the validus portfolio and successfully integrating the company.
This is the third year in a row where we have grown this metric by over 25%. As a result over the last 3 years.
2025 was about maintaining our underwriting book and optimizing our larger and more dispersed operations.
We have more than doubled tangible book, value per share.
Kevin O'Donnell: Capital management was also notable. We repurchased $650 million of our shares during Q4, 13% of our shares over the course of 2025, and 17% of our shares since Q1 of 2024, when we began repurchasing post Validus. I am pleased to report that we have now repurchased more shares than we issued in connection with the Validus acquisition. The cumulative return on our shares since then, a little over two years ago, has been around 30%. This demonstrates our ability to raise capital when we have an attractive opportunity, reward investors by returning capital as we realize its benefits, and execute transactions with minimal long-term dilution. Bob will speak to you in greater depth regarding our financial results, but overall, I am proud of our performance. Moving now to address strategic results in 2025.
Kevin O'Donnell: Capital management was also notable. We repurchased $650 million of our shares during Q4, 13% of our shares over the course of 2025, and 17% of our shares since Q1 of 2024, when we began repurchasing post Validus. I am pleased to report that we have now repurchased more shares than we issued in connection with the Validus acquisition. The cumulative return on our shares since then, a little over two years ago, has been around 30%. This demonstrates our ability to raise capital when we have an attractive opportunity, reward investors by returning capital as we realize its benefits, and execute transactions with minimal long-term dilution. Bob will speak to you in greater depth regarding our financial results, but overall, I am proud of our performance. Moving now to address strategic results in 2025.
Capital Management was also notable.
We undertook a number of internal initiatives to improve efficiency and effectiveness and.
We repurchased 650 million of our shares during the fourth quarter.
And better manage our increased scale.
We are upgrading our underwriting system to be more customer centric and enhancing the architecture to be more efficiently.
13% of our shares. Over the course of 2025 and 17% of our shares since the first quarter of 2024 when we began repurchasing post validus,
Organized to benefit from the growing influence of artificial intelligence.
I am pleased to report that we have now repurchased more shares than we issued in connection with the Validus acquisition.
Moving now.
To some remarks on our casualty and specialty segment.
The cumulative return on our shares since then, a little over two years ago, has been around 30%.
<unk> underwriting profit on the portfolio have been almost $500 million over the last five years.
This demonstrates, our ability to raise capital and we have an attractive opportunity.
Without the impact of purchase accounting.
Reward investors by returning capital as we realized its benefits.
As we have discussed however earnings from this business emanate from three separate income streams.
And execute transactions with minimal long-term dilution.
Underwriting fees and investments.
Good to see the full benefit of casualty because fees are offset in our NCI and investments are not split.
Bob will speak to you in greater depth regarding our financial results. But overall, I am proud of our performance.
Kevin O'Donnell: Strategically, if 2024 was about retaining the Validus portfolio and successfully integrating the company, 2025 was about maintaining our underwriting book and optimizing our larger and more dispersed operations. We undertook a number of internal initiatives to improve efficiency and effectiveness and better manage our increased scale. We are upgrading our underwriting system to be more customer-centric and enhancing the architecture to be more efficiently organized to benefit from the growing influence of artificial intelligence. Moving now to some remarks on our Casualty and Specialty segment. Aggregate underwriting profits on the portfolio have been almost $500 million over the last 5 years, without the impact of purchase accounting. As we have discussed, however, earnings from this business emanate from three separate income streams: underwriting, fees, and investments.
Kevin O'Donnell: Strategically, if 2024 was about retaining the Validus portfolio and successfully integrating the company, 2025 was about maintaining our underwriting book and optimizing our larger and more dispersed operations. We undertook a number of internal initiatives to improve efficiency and effectiveness and better manage our increased scale. We are upgrading our underwriting system to be more customer-centric and enhancing the architecture to be more efficiently organized to benefit from the growing influence of artificial intelligence. Moving now to some remarks on our Casualty and Specialty segment. Aggregate underwriting profits on the portfolio have been almost $500 million over the last 5 years, without the impact of purchase accounting. As we have discussed, however, earnings from this business emanate from three separate income streams: underwriting, fees, and investments.
By segment.
moving now to address strategic results in 2025.
This year alone casualty specialty contributed about one third of our operating income across our three drivers of profit.
Strategically, if 2024 was about retaining the Validus portfolio and successfully integrating the company.
The goal of any line of business is to grow tangible book value per share over time.
And casualty there is a tradeoff between underwriting results and investment results typically when one is high the other is lower and vice versa over a 10 year cycle. This balance of profit shifts back and forth, but nevertheless contributes to growth in tangible book value per share currently.
2025 was about maintaining our underwriting book and optimizing our larger and more dispersed operations.
We undertook a number of internal initiatives to improve efficiency and effectiveness.
And better manager increased scale.
We are upgrading our underwriting system to be more customer-centric and enhancing the architecture to be more efficient.
Currently the.
The balance within specialty portfolio is heavily skewed toward investment returns.
Uh, organized to benefit from the growing influence of artificial intelligence.
As a result, the market is tolerated rising technical ratios this reduces underwriting margins available to compensate for inherent volatility.
Moving now.
To some remarks on our Casualty and Specialty segment.
My belief is that technical ratios will fall, but it is difficult to predict when for now we will continue to monitor this class closely and make appropriate adjustments.
Aggregate underwriting profits on the portfolio have been almost 500 million dollars over the last 5 years.
Without the impact of purchase accounting.
That said while margins are tight investment in fee income from casualty are currently a substantial driver of book value growth.
Kevin O'Donnell: It's harder to see the full benefit of casualty because fees are offset in our NCI, and investments are not split by segment. This year alone, casualty specialty contributed about 1/3 of our operating income across our three drivers of profit. The goal of any line of business is to grow tangible book value per share over time. In casualty, there's a trade-off between underwriting results and investment results. Typically, when one is high, the other is lower, and vice versa. Over a 10-year cycle, this balance of profit shifts back and forth, but nevertheless contributes to growth in tangible book value per share. Currently, the balance within the specialty portfolio is heavily skewed toward investment returns. As a result, the market has tolerated rising technical ratios. This reduces underwriting margins available to compensate for inherent volatility.
Kevin O'Donnell: It's harder to see the full benefit of casualty because fees are offset in our NCI, and investments are not split by segment. This year alone, casualty specialty contributed about 1/3 of our operating income across our three drivers of profit. The goal of any line of business is to grow tangible book value per share over time. In casualty, there's a trade-off between underwriting results and investment results. Typically, when one is high, the other is lower, and vice versa. Over a 10-year cycle, this balance of profit shifts back and forth, but nevertheless contributes to growth in tangible book value per share. Currently, the balance within the specialty portfolio is heavily skewed toward investment returns. As a result, the market has tolerated rising technical ratios. This reduces underwriting margins available to compensate for inherent volatility.
So we are now recognizing much underwriting profit today, which we think is the right approach in the current environment and are still making a strong overall return.
As we have discussed however earnings from this business emanate from 3, separate income streams, underwriting, fees, and Investments. It's hard to see the full benefit of casualty because fees are offset in our NCI, and Investments are not split by segment.
This year alone casualty specialty, contributed about 1/3 of our operating income across our 3 drivers or profits.
I want to briefly touch on the January one renewal and our outlook for 2026.
David will address this in more detail.
The goal of any line of business is to grow tangible book value per share over time.
Property cat rates for us were down low teen percentages.
In casualty, there's a trade-off between underwriting results and investment results.
We found some opportunities to grow which should keep top line premium in property cat.
<unk> only mid single digits.
Excluding the impact of reinstatement premiums.
Terms and conditions, mostly held solid including Retentions.
Typically, when one is high, the other is lower, and vice versa over a 10-year cycle. This balance of profit shifts back and forth, but nevertheless contributes to growth in tangible book value per share.
Currently.
As I previously mentioned, we are a larger and more diversified company.
The balance within the special pay portfolio is heavily skewed toward investment returns.
Two drivers of these changes occurred in 2023.
The step change in property cat and our acquisition of Validus. So I think a comparison of our present opportunity set to the pre 2002 pre 2023 period is constructive.
Kevin O'Donnell: My belief is that technical ratios will fall, but it's difficult to predict when. For now, we will continue to monitor this class closely and make appropriate adjustments. That said, while margins are tight, investment and fee income from casualty are currently a substantial driver of book value growth. So we are not recognizing much underwriting profit today, which we think is the right approach in the current environment, and are still making a strong overall return. I want to briefly touch on the 1 January renewal and our outlook for 2026. David will address this in more detail. Property cat rates for us were down low-teen percentages. We found some opportunities to grow, which should keep top-line premium and property cat down, down only mid-single digits, excluding the impact of reinstatement premiums. Terms and conditions mostly held solid, including retentions.
Kevin O'Donnell: My belief is that technical ratios will fall, but it's difficult to predict when. For now, we will continue to monitor this class closely and make appropriate adjustments. That said, while margins are tight, investment and fee income from casualty are currently a substantial driver of book value growth. So we are not recognizing much underwriting profit today, which we think is the right approach in the current environment, and are still making a strong overall return. I want to briefly touch on the 1 January renewal and our outlook for 2026. David will address this in more detail. Property cat rates for us were down low-teen percentages. We found some opportunities to grow, which should keep top-line premium and property cat down, down only mid-single digits, excluding the impact of reinstatement premiums. Terms and conditions mostly held solid, including retentions.
As a result, the market has tolerated Rising technical ratios. This reduces underwriting margins available to compensate for inherent volatility.
My belief is that technical ratios will fall, but is difficult to predict when
For now, we will continue to monitor this class closely and make appropriate adjustments.
To begin rates in property cat remain attractive and well above return levels realized in the years before 2023.
That said, while margins are tight, investment in fee income from casualty is currently a substantial driver of book value growth.
Equally important most of the structural changes made in 2023 are still in place.
As a result, our reinsurance portfolio in 2026 is still one of our best.
So we are not recognizing much under writing profit today, which we think is the right approach in the current environment and are still making a strong overall return.
Other favorable comparisons to 2022.
I want to briefly touch on the January 1 and our outlook for 2026.
Our underwriting portfolio was roughly one third larger.
David will address this in more detail.
Our retained net investment income has tripled.
Property cat rates for us were down low 10% ages.
And our fee income has more than doubled.
In aggregate when we look at our current state versus where we were before 2023 all points of comparison or favorable or.
Our increased scale and diversified sources of income.
Only mid-cycle digits, excluding the impact of reinstatement premiums.
We are more resilient to loss.
Terms and conditions mostly held solid, including retention.
Kevin O'Donnell: As I previously mentioned, we are a larger and more diversified company. Two drivers of these changes occurred in 2023: the step change in property cat and our acquisition of Validus. So I think a comparison of our present opportunity set to the pre-2023 period is constructive. To begin, rates in property cat remain attractive and well above return levels realized in the years before 2023. Equally important, most of the structural changes made in 2023 are still in place. As a result, our reinsurance portfolio in 2026 is still one of our best. A few other favorable comparisons to 2022.
Kevin O'Donnell: As I previously mentioned, we are a larger and more diversified company. Two drivers of these changes occurred in 2023: the step change in property cat and our acquisition of Validus. So I think a comparison of our present opportunity set to the pre-2023 period is constructive. To begin, rates in property cat remain attractive and well above return levels realized in the years before 2023. Equally important, most of the structural changes made in 2023 are still in place. As a result, our reinsurance portfolio in 2026 is still one of our best. A few other favorable comparisons to 2022.
This gives us great confidence in our reinsurance portfolio and our continued ability to deliver consistent superior returns to our shareholders.
As I previously mentioned, we are a larger and more diversified company.
2 drivers of these changes occurred in 2023.
I'd like to finish my comments with a discussion about how we plan to continue growing.
The step change in property cat and our acquisition of Alice.
Growing tangible book value per share this year at an attractive pace by employing a similar strategy to last year.
so, I think a comparison of our present opportunity set,
To the pre-2022, pre-2023 period is constructive.
This strategy was something I discussed last quarter and was composed of the following factors.
First to maintain or grow our property business second focus on preserving underwriting margin.
To begin rates and property cat remain attractive, and well, above return levels realized in the years before 2023.
Third prioritize casualty seasons, who focus on claims handle practicing over those who solely focus on rate.
Equally important, most of the structural changes made in 2023 are still in place.
As a result, our reinsurance portfolio in 2026 is still one of our best.
Fourth continue to grow fees in our capital partners business.
Kevin O'Donnell: Our underwriting portfolio is roughly 1/3 larger, our retained net investment income has tripled, and our fee income has more than doubled... In aggregate, when we look at our current state versus where we were before 2023, all points of comparison are favorable. Our increased scale and diversified sources of income mean we are more resilient to loss. This gives us great confidence in our reinsurance portfolio and our continued ability to deliver consistent, superior returns to our shareholders. I'd like to finish my comments with a discussion about how we plan to continue growing tangible book value per share this year at an attractive pace by employing a similar strategy to last year. This strategy was something I discussed last quarter and was composed of the following factors. First, to maintain or grow our property business. Second, focus on preserving underwriting margin.
Kevin O'Donnell: Our underwriting portfolio is roughly 1/3 larger, our retained net investment income has tripled, and our fee income has more than doubled... In aggregate, when we look at our current state versus where we were before 2023, all points of comparison are favorable. Our increased scale and diversified sources of income mean we are more resilient to loss. This gives us great confidence in our reinsurance portfolio and our continued ability to deliver consistent, superior returns to our shareholders. I'd like to finish my comments with a discussion about how we plan to continue growing tangible book value per share this year at an attractive pace by employing a similar strategy to last year. This strategy was something I discussed last quarter and was composed of the following factors. First, to maintain or grow our property business. Second, focus on preserving underwriting margin.
A few other favorable comparisons to 2022.
Fifth continue to grow invested assets and finally.
Our underwriting portfolio is roughly one-third larger.
Continue returning capital to our shareholders by repurchasing share repurchasing shares at attractive valuations.
Or retained in net investment. Income has tripled.
And our fee income has more than doubled.
I should add one more point to this list, which is continue to execute our gross to net strategy to arbitrage competitive cat bond market and retro markets.
in aggregate, when we look at our current state versus where we were before 2023, All Points of comparison are favorable,
Our increased scale and diversified sources of income mean we are more resilient to loss.
As you can see we have quite a few strategic levers to keep returns attractive.
This is the playbook, we successfully ran in 2025.
This gives us great confidence in our reinsurance portfolio and our continued ability to deliver consistent Superior returns to our shareholders.
And is the one we will run 2026.
I'd like to finish my comments with the discussion about how we plan to continue.
That concludes my initial comments I will turn it over to Bob to discuss our financial performance.
For the quarter and for the year before data provides a more detailed update renewal in our segments. Thank you.
Growing tangible book value per share this year at an attractive pace by employing a similar strategy to last year.
Thanks, Kevin and good morning, everyone. In 2025, we demonstrated the efficacy of our strategy and the persistence of our earnings profile delivering operating income of $1 9 billion, even with the $786 million net negative impact on margin.
This strategy was something I discussed last quarter and was composed of the following factors.
Kevin O'Donnell: Third, prioritize casualty cedents who focus on claims handling practices over those who solely focus on rate. Fourth, continue to grow fees in our capital partners business. Fifth, continue to grow invested assets. And finally, continue returning capital to our shareholders by repurchasing repurchasing shares at attractive valuations. I should add one more point to this list, which is continue to execute our gross-to-net strategy to arbitrage competitive cat bond markets and retro markets. As you can see, we have quite a few strategic levers to keep returns attractive. This is the playbook we successfully ran in 2025, and it is the one we will run in 2026. That concludes my initial comments. I'll turn it over to Bob to discuss our financial performance for the quarter and for the year before Dave provides a more detailed update on renewals in our segments. Thank you.
Kevin O'Donnell: Third, prioritize casualty cedents who focus on claims handling practices over those who solely focus on rate. Fourth, continue to grow fees in our capital partners business. Fifth, continue to grow invested assets. And finally, continue returning capital to our shareholders by repurchasing repurchasing shares at attractive valuations. I should add one more point to this list, which is continue to execute our gross-to-net strategy to arbitrage competitive cat bond markets and retro markets. As you can see, we have quite a few strategic levers to keep returns attractive. This is the playbook we successfully ran in 2025, and it is the one we will run in 2026. That concludes my initial comments. I'll turn it over to Bob to discuss our financial performance for the quarter and for the year before Dave provides a more detailed update on renewals in our segments. Thank you.
First to maintain or grow or property business. Second focus on preserving underwriting margin.
Third, prioritize casualty cedents who focus on claims handling and practicing over those who solely focus on rate.
My comments today will focus primarily on the drivers and sustainability of these annual results I also want to touch on some highlights from the fourth quarter, where we delivered operating earnings per share of $13 34.
Fourth continue to grow fees in our Capital Partners business.
Fifth continue to grow invested assets and finally,
And an operating return on equity of 22%.
Continue returning capital to our shareholders by repurchasing shares. Repurchasing shares at attractive valuations.
In the quarter all three drivers of profit produced strong results specifically.
Underwriting income.
With $669 million with a combined ratio of 71%.
I should add 1 more point to this list, which is continue to execute our gross, and next strategy to Arbitrage, competitive cat on market and retro markets.
Fee income was $102 million and retained investment income was $314 million.
Both fees and retained net investment income are among the highest we have ever reported and demonstrate that we have continued to optimize these drivers as our underwriting portfolio as well.
As you can see, we have quite a few strategic levers to keep returns attractive. This is the Playbook. We successfully ran in 2025 and is the 1 we will run 2026
That concludes my initial comments. I'll turn it over to Bob to discuss our financial performance.
Building on this there are four numbers I have consistently highlighted that demonstrate the strength of our earnings profile and our ability to absorb volatility.
Robert Qutub: Thanks, Kevin, and good morning, everyone. In 2025, we demonstrated the efficacy of our strategy and the persistence of our earnings profile, delivering operating income of $1.9 billion, even with a $786 million dollar net negative impact from large events. My comments today will focus primarily on the drivers and sustainability of these annual results. I also want to touch on some highlights from the Q4, where we delivered operating earnings per share of $13.34, and an operating return on equity of 22%. In the quarter, all three drivers of profit produced strong results. Specifically, underwriting income was $669 million, with a combined ratio of 71%. Fee income was $102 million, and retained investment income was $314 million.
Robert Qutub: Thanks, Kevin, and good morning, everyone. In 2025, we demonstrated the efficacy of our strategy and the persistence of our earnings profile, delivering operating income of $1.9 billion, even with a $786 million dollar net negative impact from large events. My comments today will focus primarily on the drivers and sustainability of these annual results. I also want to touch on some highlights from the Q4, where we delivered operating earnings per share of $13.34, and an operating return on equity of 22%. In the quarter, all three drivers of profit produced strong results. Specifically, underwriting income was $669 million, with a combined ratio of 71%. Fee income was $102 million, and retained investment income was $314 million.
Uh, for the quarter and for the year before, Dave provides a more detailed update renewal in our segments, thank you.
Thanks, Kevin, and good morning, everyone.
First <unk> 15 point, which is the annual aggregate contribution to our overall return on average common equity from our investment in fee income in 2025. This is consistent with 2024.
In 2025, we demonstrated the efficacy of our strategy and the Persistence of our earnings profile.
Delivering operating income of 1.9 billion dollars. Even with a 786 million net negative impact on large event.
And creates a stable base of earnings each quarter, which we then build upon.
The second number is $1 3 billion.
Which is the underwriting income we generated in 2025, including a $1 $1 billion underwriting loss from the California wildfires underwriting is the core of our business and provide significant upside to the earnings base from fees and investments.
My comments today will focus primarily on the drivers and sustainability of the annual results. I also want to touch on some highlights from the fourth quarter, where we delivered operating earnings per share of $13.34 and an operating return on equity of 22%.
In the quarter, all three drivers of profit produced strong results specifically.
The third numbers $1 6 billion.
Underwriting income.
Which is the amount of capital we returned to shareholders in 2025.
Was $669 million with a combined ratio of 71%.
Throughout the year, we purchased over six 4 million shares.
The average price of these share repurchases with near book value essentially returning all of our operating income with minimal dilution. We believe that our stock represents excellent value at current levels and expect share repurchases to continue in 2026 in line with our long history of being good stewards of our shareholders' capital.
Robert Qutub: Both fees and retained net investment income are among the highest we have ever reported and demonstrate that we have continued to optimize these drivers as our underwriting portfolio has grown. Building on this, there are four numbers I have consistently highlighted that demonstrate the strength of our earnings profile and our ability to absorb volatility. The first number is 15 points, which is the annual aggregate contribution to our overall return on average common equity from our investment and fee income in 2025. This is consistent with 2024 and creates a stable base of earnings each quarter, which we then build upon. The second number is $1.3 billion, which is the underwriting income we generated in 2025, including a $1.1 billion underwriting loss from the California wildfires.
Robert Qutub: Both fees and retained net investment income are among the highest we have ever reported and demonstrate that we have continued to optimize these drivers as our underwriting portfolio has grown. Building on this, there are four numbers I have consistently highlighted that demonstrate the strength of our earnings profile and our ability to absorb volatility. The first number is 15 points, which is the annual aggregate contribution to our overall return on average common equity from our investment and fee income in 2025. This is consistent with 2024 and creates a stable base of earnings each quarter, which we then build upon. The second number is $1.3 billion, which is the underwriting income we generated in 2025, including a $1.1 billion underwriting loss from the California wildfires.
The income was $102 million, and retained investment income was $314 million.
Both fees and retained net investment income are among the highest we have ever reported and demonstrate that we have continued to optimize these drivers as our underwriting portfolio has grown.
And finally, the fourth number is.
31%.
Building on this, there are four numbers I have consistently highlighted that demonstrate the strength of our earnings profile and our ability to absorb volatility.
Which is the amount we grew tangible book value per share plus change in accumulated dividends in 2025.
As Kevin highlighted we have more than doubled this metric over the last three years through a combination of strong retained earnings and disciplined capital management.
The first number is 15 points, which is the annual aggregate contribution to our overall return on average common equity from our investment and fee income in 2025. This is consistent with 2024.
Now I'd like to turn to a detailed view of our three drivers of profit starting with underwriting where we delivered excellent results with an adjusted combined ratio of 85% for the year.
And creates a stable base of earnings each quarter, which we then build upon.
The second number is 1.3 billion.
This performance is particularly strong given that we absorbed several large losses across both segments.
Robert Qutub: Underwriting is the core of our business and provides significant upside to the earnings base from fees and investments. The third number is $1.6 billion, which is the amount of capital we returned to shareholders in 2025. Throughout the year, we purchased over 6.4 million shares. The average price of these share repurchases was near book value, essentially returning all of our operating income with minimal dilution. We believe that our stock represents excellent value at current levels and expect share repurchases to continue in 2026, in line with our long history of being good stewards of our shareholders' capital. And finally, the fourth number is 31%, which is the amount we grew tangible book value per share, plus change in accumulated dividends in 2025.
Robert Qutub: Underwriting is the core of our business and provides significant upside to the earnings base from fees and investments. The third number is $1.6 billion, which is the amount of capital we returned to shareholders in 2025. Throughout the year, we purchased over 6.4 million shares. The average price of these share repurchases was near book value, essentially returning all of our operating income with minimal dilution. We believe that our stock represents excellent value at current levels and expect share repurchases to continue in 2026, in line with our long history of being good stewards of our shareholders' capital. And finally, the fourth number is 31%, which is the amount we grew tangible book value per share, plus change in accumulated dividends in 2025.
Which is the underwriting income we generated in 2025 including a 1.1 billion dollar underwriting loss from the California wildfires.
For property catastrophe, specifically, we reported a current accident year loss ratio of 64% for the year and then adjusted combined ratio of 60%.
Underwriting is the core of our business and provide significant upside to the earnings base from fees and Investments.
The third number is $1.6 billion.
Amount of capital we return to shareholders in 2025.
This current accident year loss ratio included 50 percentage points of losses from the California, wildfires and three percentage points of losses for Melissa a hurricane Melissa.
Throughout the year, we purchased over 6.4 million shares.
Property catastrophe also benefited from 24 percentage points of prior year favorable development, primarily from large events in 2022 through 2024 and changes to Attritional loss estimates.
The average price of these share repurchases was near book value, essentially returning all of our operating income with minimal dilution.
Note that in the fourth quarter and property catastrophe, we reduced our total estimate of net negative impact from the California wildfires by $42 million driven by lower case reserves reported by our seasons during the renewal process.
We believe that our stock represents excellent value at current levels and expect share repurchases to continue in 2026, in line with our long history of being good stewards of our shareholders' capital.
And finally, the fourth number is,
31%.
Robert Qutub: As Kevin highlighted, we have more than doubled this metric over the last three years through a combination of strong retained earnings and disciplined capital management. Now, I'd like to turn to a detailed view of our three drivers of profit, starting with underwriting, where we delivered excellent results with an adjusted combined ratio of 85% for the year. This performance is particularly strong, given that we absorbed several large losses across both segments. For property catastrophe specifically, we reported a current accident year loss ratio of 64% for the year and an adjusted combined ratio of 60%. This current accident year loss ratio included 50 percentage points of losses from the California wildfires and 3 percentage points of losses from Melissa, Hurricane Melissa.
Robert Qutub: As Kevin highlighted, we have more than doubled this metric over the last three years through a combination of strong retained earnings and disciplined capital management. Now, I'd like to turn to a detailed view of our three drivers of profit, starting with underwriting, where we delivered excellent results with an adjusted combined ratio of 85% for the year. This performance is particularly strong, given that we absorbed several large losses across both segments. For property catastrophe specifically, we reported a current accident year loss ratio of 64% for the year and an adjusted combined ratio of 60%. This current accident year loss ratio included 50 percentage points of losses from the California wildfires and 3 percentage points of losses from Melissa, Hurricane Melissa.
which is the amount we grew tangible book, value per share, plus change in accumulated, dividends in 2025
And other property, we delivered exceptional results in 2025 with a current accident year loss ratio of 62% and adjusted combined ratio of 60%. This is the lowest annual combined ratio. We have delivered since we started reporting the other property class of business.
As Kevin highlighted we have more than doubled this metric over the last 3 years through a combination of strong retained earnings and discipline Capital Management.
Now I'd like to turn to a detailed view of our three drivers of profits, starting with underwriting, where we delivered excellent results with an adjusted combined ratio of 85% for the year.
The other property current accident loss year ratio for the year included eight percentage points from the California, wildfires and two percentage points from Hurricane Melissa.
This performance is particularly strong given that we absorb large losses across both segments.
Other property had 33 points of favorable development from prior years, primarily related to Attritional losses.
For property catastrophe, specifically, we reported a current accident year loss ratio of 64% for the year, and an adjusted combined ratio of 60%.
In casualty and specialty we reported an adjusted combined ratio of 102% for the year. This includes four percentage points from large loss events in 2025.
Robert Qutub: Property catastrophe also benefited from 24 percentage points of prior year favorable development, primarily from large events in 2022 through 2024 and changes to attritional loss estimates. Note that in the Q4, in property catastrophe, we reduced our total estimate of net negative impact from the California wildfires by $42 million, driven by lower case reserves reported by our cedents during the renewal process. In other property, we delivered exceptional results in 2025, with a current accident year loss ratio of 62% and adjusted combined ratio of 60%. This is the lowest annual combined ratio we have delivered since we started reporting the other property class of business. The other property current accident loss year ratio for the year included 8 percentage points from the California wildfires and 2 percentage points from Hurricane Melissa....
Robert Qutub: Property catastrophe also benefited from 24 percentage points of prior year favorable development, primarily from large events in 2022 through 2024 and changes to attritional loss estimates. Note that in the Q4, in property catastrophe, we reduced our total estimate of net negative impact from the California wildfires by $42 million, driven by lower case reserves reported by our cedents during the renewal process. In other property, we delivered exceptional results in 2025, with a current accident year loss ratio of 62% and adjusted combined ratio of 60%. This is the lowest annual combined ratio we have delivered since we started reporting the other property class of business. The other property current accident loss year ratio for the year included 8 percentage points from the California wildfires and 2 percentage points from Hurricane Melissa....
This current action to your loss ratio included 50 percentage points of losses from the California wildfires and 3 percentage points of losses for Melissa—a hurricane, Melissa.
In the fourth quarter, specifically, we reported losses on two recent events.
<unk> aircraft crash in the Grasberg mine landslide in Indonesia.
Property catastrophe also benefited from 24 percentage points of prior year favorable development, primarily from large events in 2022 through 2024 and changes to attritional loss estimates.
These two events impacted our quarterly adjusted combined ratio by four percentage points pushing it to 102%.
Prior year development in casualty and specialty on a cash basis was slightly favorable for both here in the fourth quarter before the impact of 50 basis points of purchase accounting adjustments.
Note that in the fourth quarter in property catastrophe, we reduced our total estimate of net negative impact from the California wildfires by $422 million, driven by lower case reserves reported by our cedents during the renewal process.
Across our underwriting portfolio gross premiums written for the year were $11 7 billion.
And net premiums written were $9 9 billion.
Both roughly flat compared to 2024.
And property catastrophe, we leaned into opportunities in the U S and grew gross premiums written by 5% this year and by $17 million in the fourth quarter in both instances without the impact of reinstatement premiums.
In other property, we delivered exceptional results in 2025 with a current accident year loss, ratio of 62% and adjusted combined ratio of 60%, this is the lowest annual combined ratio. We have delivered since we started reporting the other property class of business.
Robert Qutub: Other Property had 33 points of favorable development from prior years, primarily related to attritional losses. In Casualty and Specialty, we reported an adjusted combined ratio of 102% for the year. This includes 4 percentage points from large loss events in 2025. In Q4, specifically, we reported losses on two recent events, the UPS aircraft crash, and the Grasberg mine landslide in Indonesia. These two events impacted our quarterly adjusted combined ratio by 4 percentage points, pushing it to 102%. Prior year development in Casualty and Specialty on a cash basis was slightly favorable for both the year and Q4, before the impact of 50 basis points of purchase accounting adjustments.
Robert Qutub: Other Property had 33 points of favorable development from prior years, primarily related to attritional losses. In Casualty and Specialty, we reported an adjusted combined ratio of 102% for the year. This includes 4 percentage points from large loss events in 2025. In Q4, specifically, we reported losses on two recent events, the UPS aircraft crash, and the Grasberg mine landslide in Indonesia. These two events impacted our quarterly adjusted combined ratio by 4 percentage points, pushing it to 102%. Prior year development in Casualty and Specialty on a cash basis was slightly favorable for both the year and Q4, before the impact of 50 basis points of purchase accounting adjustments.
The other property, current accident. Lost your ratio for the year included 8, percentage points from the California wildfires and 2 percentage points from Hurricane Melissa.
Gross premiums written in other property declined by 11% in the year.
Other Property had 33 points of favorable development from prior years, primarily related to attritional losses.
We have been holding exposure flat in this class, while managing a declining rate environment.
This book continues to produce strong results.
In casualty and specialty gross premiums written in 2005 were roughly flat compared to last year.
And Casualty and Specialty, we reported an adjusted combined ratio of 102% for the Year. This includes 4 percentage points from large loss events in 2025.
We found opportunities to grow our credit book, primarily through season mortgage deals that are offset.
In the fourth quarter, specifically, we reported losses on two recent events: the UPS aircraft crash and the Grasberg mine landslide in Indonesia.
Lines and casualty, where we have been optimizing the book and net negative premium adjustments and specialty largely from rate deceleration inside them.
These 2 events impacted our quarterly adjusted combined ratio by 4 percentage points, pushing it to 102%.
Looking ahead to the first quarter, we expect other property net premiums earned to be approximately $360 million in attritional loss ratio in the mid fifties.
Robert Qutub: Across our underwriting portfolio, gross premiums written for the year were $11.7 billion, and net premiums written were $9.9 billion, both roughly flat compared to 2024. In property catastrophe, we leaned into opportunities in the US and grew gross premiums written by 5% this year and by $17 million in Q4, in both instances, without the impact of reinstatement premiums. Gross premiums written in other property declined by 11% in the year. We have been holding exposure flat in this class while managing a declining rate environment. This book continues to produce strong results. In casualty and specialty, gross premiums written in 2025 were roughly flat compared to last year. We found opportunities to grow our credit book, primarily through seasoned mortgage deals.
Robert Qutub: Across our underwriting portfolio, gross premiums written for the year were $11.7 billion, and net premiums written were $9.9 billion, both roughly flat compared to 2024. In property catastrophe, we leaned into opportunities in the US and grew gross premiums written by 5% this year and by $17 million in Q4, in both instances, without the impact of reinstatement premiums. Gross premiums written in other property declined by 11% in the year. We have been holding exposure flat in this class while managing a declining rate environment. This book continues to produce strong results. In casualty and specialty, gross premiums written in 2025 were roughly flat compared to last year. We found opportunities to grow our credit book, primarily through seasoned mortgage deals.
Prior development in Casualty and Specialty on a cash basis was slightly favorable for both the year and the fourth quarter, before the impact of 50 basis points of purchase accounting adjustments.
In casualty and specialty net premiums earned of around $1 4 billion and adjusted combined ratio in the high nineties absent the impact of large losses.
Across our underwriting portfolio, gross premiums written for the year were $11.7 billion and net premiums written were $9.9 billion.
Both are roughly flat compared to 2024.
Moving now to our second driver of profit fee income in our capital partners business fees.
Fees were $329 million for the year up from 2024.
Within this management fees were $207 million and performance fees were $121 million.
In property catastrophe, we leaned into opportunities in the US and grew gross premiums written by 5% this year and by $17 million in the fourth quarter, in both instances without the impact of reinstatement premiums.
This performance is particularly impressive given that the California wildfires suppress fees in the first quarter. We fully recovered from this event in the first half of the year and performance fees have surpassed our expectations for the last three quarters due to strong underwriting results and favorable prior year development.
Gross premiums written in Other Property declined by 11% in the year.
We have been holding exposure flat in this class while managing a declining rate environment.
This book continues to produce strong results.
In Casualty and Specialty, gross premiums written in 2005 were roughly flat compared to last year.
Capital Partners produced excellent results throughout 2025 and continued strong engagement from our third party investors in <unk> should remain a key driver of our financial success.
Robert Qutub: This helped offset declines in casualty, where we have been optimizing the book and net negative premium adjustments in specialty, largely from rate deceleration in cyber. Looking ahead to Q1, we expect other property net premiums earned to be approximately $360 million and attritional loss ratio in the mid-50s. In casualty and specialty, net premiums earned of around $1.4 billion and an adjusted combined ratio in the high 90s, absent the impact of large losses. Moving now to our second driver of profit, fee income, and our capital partners business. Fees were $329 million for the year, up from 2024. Within this, management fees were $207 million, and performance fees were $121 million.
Robert Qutub: This helped offset declines in casualty, where we have been optimizing the book and net negative premium adjustments in specialty, largely from rate deceleration in cyber. Looking ahead to Q1, we expect other property net premiums earned to be approximately $360 million and attritional loss ratio in the mid-50s. In casualty and specialty, net premiums earned of around $1.4 billion and an adjusted combined ratio in the high 90s, absent the impact of large losses. Moving now to our second driver of profit, fee income, and our capital partners business. Fees were $329 million for the year, up from 2024. Within this, management fees were $207 million, and performance fees were $121 million.
Looking ahead to the first quarter, we expect management fees to be around $50 million and performance fees to return to around $30 million absent the impact of large catastrophe losses or favorable development.
We found opportunities to grow our credit book primarily through seasoned mortgage deals. This offset declines in casualty, where we have been optimizing the book and net negative premium adjustments. In specialty, largely from rate deceleration inside the—
Moving now to our third driver of profit investments, where our retained net investment income for the year was $1 2 billion up 4%.
looking ahead to the first quarter. We expect other property, net premiums earned to be approximately 360 million, and a traditional loss ratio in the mid-50s.
We increased retained net investment income every quarter, starting at $279 million in the first quarter and rising to $314 million in the fourth quarter.
And Casualty and Specialty, net premiums earned of around $1.4 billion, and adjusted combined ratio in the high 90s absent the impact of large losses.
Moving now to our second driver of profit, fee income, and our Capital Partners business.
This outcome is primarily the result of net growth in underlying assets as well as proactive actions to selectively add credit throughout the year. This included increasing exposure to investment grade credit agency mortgage backed securities and high yield.
These were 329 million for the year up from 2024.
Robert Qutub: This performance is particularly impressive, given that the California wildfires suppressed fees in Q1. We fully recovered from this event in the first half of the year, and performance fees have surpassed our expectations for the last three quarters due to strong underwriting results and favorable prior year development. Capital Partners produced excellent results throughout 2025 and continued strong engagement from our third-party investors, and fees should remain a key driver of our financial success. Looking ahead to the first quarter, we expect management fees to be around $50 million and performance fees to return to around $30 million, absent the impact of large catastrophe losses or favorable development. Moving now to our third driver of profit, investments, where our retained net investment income for the year was $1.2 billion, up 4%.
Robert Qutub: This performance is particularly impressive, given that the California wildfires suppressed fees in Q1. We fully recovered from this event in the first half of the year, and performance fees have surpassed our expectations for the last three quarters due to strong underwriting results and favorable prior year development. Capital Partners produced excellent results throughout 2025 and continued strong engagement from our third-party investors, and fees should remain a key driver of our financial success. Looking ahead to the first quarter, we expect management fees to be around $50 million and performance fees to return to around $30 million, absent the impact of large catastrophe losses or favorable development. Moving now to our third driver of profit, investments, where our retained net investment income for the year was $1.2 billion, up 4%.
Within this, management fees were $207 million and performance fees were $121 million.
Additionally, we have retained mark to market gains of $1 1 billion driven by gains from equities.
Interest rate movements in our fixed maturity portfolio and commodities mainly goal.
Fees in the first quarter; we fully recovered from this event in the first half of the year, and performances have surpassed our expectations for the last three quarters due to strong underwriting results and favorable prior year development.
As we have previously discussed we took a position in gold at the end of 'twenty, three which we added over the last two years as an inflationary and geopolitical hedge since we made the investment gold has doubled in price and led to over $400 million in retained mark to market gains this year.
Capital Partners produced excellent results throughout 2025 and continued strong engagement from our third party investors, and fees should remain a key driver of our financial success.
Our retained yield to maturity of four 8% reduced from five 3% in December of 2024 due to falling short term yields and our retained duration decreased from three four to three years. This was primarily related to our decision to reduce duration at the long end of the curve, while increasing exposure to security.
Looking ahead to the first quarter. We expect management fees to be around 50 million and performance fees, to return to around 30 million dollars absent. The impact of large catastrophe losses or favorable development,
Robert Qutub: We increased retained net investment income every quarter, starting at $279 million in Q1 and rising to $314 million in Q4. This outcome is primarily the result of net growth in underlying assets, as well as proactive actions to selectively add credit throughout the year. This included increasing exposure to investment-grade credit, agency mortgage-backed securities, and high yield. Additionally, we have retained mark-to-market gains of $1.1 billion, driven by gains from equities, interest rate movements in our fixed maturity portfolio, and commodities, mainly gold. As we have previously discussed, we took a position in gold at the end of 2023, which we added over the last two years as an inflationary and geopolitical hedge.
Robert Qutub: We increased retained net investment income every quarter, starting at $279 million in Q1 and rising to $314 million in Q4. This outcome is primarily the result of net growth in underlying assets, as well as proactive actions to selectively add credit throughout the year. This included increasing exposure to investment-grade credit, agency mortgage-backed securities, and high yield. Additionally, we have retained mark-to-market gains of $1.1 billion, driven by gains from equities, interest rate movements in our fixed maturity portfolio, and commodities, mainly gold. As we have previously discussed, we took a position in gold at the end of 2023, which we added over the last two years as an inflationary and geopolitical hedge.
Moving now to our third driver of profit, investments, where our retained net investment income for the year was $1.2 billion, up 4%.
With three to five year duration.
Looking ahead, we expect investment income to remain a persistent and meaningful contributor to our results and anticipate retained net investment income around similar levels in the first quarter.
We increased retained net investment income every quarter, starting at $279 million in the first quarter and rising to $314 million in the fourth quarter.
Now moving to some comments on tax <unk>.
2025 was the first year, we incurred a 15% corporate income tax in Bermuda.
This outcome is primarily the result of net growth and underlying assets, as well as proactive actions to selectively add credit throughout the year. This included increasing exposure to investment grade, credit agency, mortgage-backed securities, and high yield.
And we demonstrated our ability to continue producing excellent returns and a higher tax environment.
Additionally, we have retained mark-to-market gains of $1.1 billion, driven by gains from equities.
As a reminder, our overall effective tax rate on our GAAP net income is often lower than this 15%. This.
Interest rate movements in our fixed maturity portfolio and commodities, mainly gold.
This is related to Noncontrolling interest, which is subject to a minimal amount of income tax you will see this in the rate reconciliation our 10-K when it's filed.
Robert Qutub: Since we made the investment, gold has doubled in price and led to over $400 million in retained mark-to-market gains this year. Our retained yield to maturity of 4.8%, reduced from 5.3% in December 2024, due to falling short-term yields, and our retained duration decreased from 3.4 to 3 years. This was primarily related to our decision to reduce duration at the long end of the curve, while increasing exposure to securities with a 3- to 5-year duration. Looking ahead, we expect investment income to remain a persistent and meaningful contributor to our results and anticipate retained net investment income around similar levels in Q1. Now moving to some comments on tax.
Robert Qutub: Since we made the investment, gold has doubled in price and led to over $400 million in retained mark-to-market gains this year. Our retained yield to maturity of 4.8%, reduced from 5.3% in December 2024, due to falling short-term yields, and our retained duration decreased from 3.4 to 3 years. This was primarily related to our decision to reduce duration at the long end of the curve, while increasing exposure to securities with a 3- to 5-year duration. Looking ahead, we expect investment income to remain a persistent and meaningful contributor to our results and anticipate retained net investment income around similar levels in Q1. Now moving to some comments on tax.
In the fourth quarter, the Bermuda government introduced substance based tax credits designed to encourage investment in Bermuda.
As we have previously discussed, we took a position in gold at the end of 23 which we added over the last 2 years as an inflationary and geopolitical hedge. Since we made the investment. Gold has doubled in price and led to over 400 million dollars in retained Mark to market gains this year.
There are two main components of the credit compensation related and expense related the credits will be phased over time scaling from 50% of the benefit in 2025, increasing to 100% in 2027.
We have a significant presence on the island and the credit provide a positive tailwind to our results acting as an offset to certain operating and corporate expenses.
Our retain yield to maturity of 4.8% reduced from 5.3% in December of 2024 due to Falling short-term, yields and our retained duration decreased from 3.4 to 3 years, this was primarily related to our decision to reduce duration at the long end of the curve while increasing the exposure to Securities the 3 to 5 year duration.
Looking ahead. We expected investment income.
Due to the timing of the legislation we recognize all of the 2025 credits in the fourth quarter.
There were applied at the phasing right at 50% and you can see the benefit to our expense ratios specifically the credits reduced our annual operating expense ratio by about 60 basis points and our annual corporate expenses by about 15%.
To remain a persistent and meaningful contributor to our results and anticipate retained. Net investment income around similar levels in the first quarter.
Robert Qutub: 2025 was the first year we incurred a 15% corporate income tax in Bermuda, and we demonstrated our ability to continue producing excellent returns in a higher tax environment. As a reminder, our overall effective tax rate on our GAAP net income is often lower than this 15%. This is related to non-controlling interest, which is subject to a minimal amount of income tax. You'll see this in the rate reconciliation, our 10-K, when it's filed. In Q4, the Bermuda government introduced substance-based tax credits designed to encourage investment in Bermuda. There are two main components of the credit: compensation-related and expense-related. The credits will be phased in over time, scaling from 50% of the benefit in 2025, increasing to 100% in 2027.
Robert Qutub: 2025 was the first year we incurred a 15% corporate income tax in Bermuda, and we demonstrated our ability to continue producing excellent returns in a higher tax environment. As a reminder, our overall effective tax rate on our GAAP net income is often lower than this 15%. This is related to non-controlling interest, which is subject to a minimal amount of income tax. You'll see this in the rate reconciliation, our 10-K, when it's filed. In Q4, the Bermuda government introduced substance-based tax credits designed to encourage investment in Bermuda. There are two main components of the credit: compensation-related and expense-related. The credits will be phased in over time, scaling from 50% of the benefit in 2025, increasing to 100% in 2027.
Now, moving to some comments on tax.
2025 was the first year we incurred, a 15% corporate income tax in Bermuda.
Starting in 2026, we will recognize the credits on a quarterly basis at 75% of their value and then their full value in 2027.
And we demonstrated our ability to continue producing excellent returns in a higher tax environment.
As a reminder, our overall effective tax rate on our gaap. Net income is often lower than this 15%.
We also recognized about $70 million in cash benefit from our Bermuda deferred tax asset in 2025.
This is in addition to the tax credits I outlined above.
Next moving to expenses, where our operating expense ratio for the year was four 7% down slightly from last year.
This is related to non-controlling interest, which is subject to a minimal amount of income tax. You'll see this in the rate reconciliation in our 10-K. When it's filed in the fourth quarter, the Bermuda government introduced substance-based tax credits designed to encourage investment in Bermuda.
This reduction is largely driven by the substance based tax credits I, just discussed and partially offset by continued investment in our business and the year end bonus accruals.
Robert Qutub: We have a significant presence on the island, and the credits provide a positive tailwind to our results, acting as an offset to certain operating and corporate expenses. Due to the timing of the legislation, we recognize all the 2025 credits in Q4. They were applied at the phase-in rate of 50%, and you can see the benefit to our expense ratio. Specifically, the credits reduced our annual operating expense ratio by about 60 basis points and our annual corporate expenses by about 15%. Starting in 2026, we will recognize the credits on a quarterly basis at 75% of their value, and then their full value in 2027. We also recognized about $70 million in cash benefit from our Bermuda deferred tax asset in 2025. This is in addition to the tax credits I outlined above.
Robert Qutub: We have a significant presence on the island, and the credits provide a positive tailwind to our results, acting as an offset to certain operating and corporate expenses. Due to the timing of the legislation, we recognize all the 2025 credits in Q4. They were applied at the phase-in rate of 50%, and you can see the benefit to our expense ratio. Specifically, the credits reduced our annual operating expense ratio by about 60 basis points and our annual corporate expenses by about 15%. Starting in 2026, we will recognize the credits on a quarterly basis at 75% of their value, and then their full value in 2027. We also recognized about $70 million in cash benefit from our Bermuda deferred tax asset in 2025. This is in addition to the tax credits I outlined above.
There are two main components: the credit compensation-related and the expense-related. The credits will be phased over time, scaling from 50% of the benefit in 2025, increasing to 100% in 2027.
Looking ahead, we expect our operating expense ratio to average between five and five 5% as we continue to invest in the business.
In conclusion, we delivered strong results in the fourth quarter and throughout 2025, driven by meaningful contributions from all three drivers of profit and disciplined capital management.
We have a significant presence on the island and the credits provide a positive Tailwind to our results acting as an offset to certain operating and corporate expenses. Due to the timing of the legislation. We recognize all the 2025 credits in the fourth quarter.
As we look forward our three drivers are positioned to produce similarly strong results in 2026 for the benefit of our shareholders.
With that I'll turn the call over to David.
There were applied at the phase-in rate of 50%, and you can see the benefit to our expense ratios. Specifically, the credits reduced our annual operating expense ratio by about 60 basis points and our annual corporate expenses by about 15%.
Thanks, Bob and good morning, everyone.
As Kevin and Bob both explained we have maintain profitability throughout a wide range of market conditions because of the diversification across our three drivers of profit.
Starting in 2026, we will recognize the credits on a quarterly basis at 75% of their value, and then at their full value in 2027.
Strong underwriting underpins the stability of our earnings because each of our three drivers of profit are ultimately fueled by our portfolio and.
Robert Qutub: Next, moving to expenses, where our operating expense ratio for the year was 4.7%, down slightly from last year. This reduction is largely driven by the substance-based tax credits I just discussed, and partially offset by continued investment in our business and the year-end bonus accruals. Looking ahead, we expect our operating expense ratio to average between 5% and 5.5% as we continue to invest in the business. In conclusion, we delivered strong results in Q4 and throughout 2025, driven by meaningful contributions from all three drivers of profit and disciplined capital management. As we look forward, our three drivers are positioned to produce similarly strong results in 2026 for the benefit of our shareholders. And with that, I'll turn the call over to David.
Robert Qutub: Next, moving to expenses, where our operating expense ratio for the year was 4.7%, down slightly from last year. This reduction is largely driven by the substance-based tax credits I just discussed, and partially offset by continued investment in our business and the year-end bonus accruals. Looking ahead, we expect our operating expense ratio to average between 5% and 5.5% as we continue to invest in the business. In conclusion, we delivered strong results in Q4 and throughout 2025, driven by meaningful contributions from all three drivers of profit and disciplined capital management. As we look forward, our three drivers are positioned to produce similarly strong results in 2026 for the benefit of our shareholders. And with that, I'll turn the call over to David.
We also recognized about $70 million in cash benefit from our Bermuda deferred tax asset in 2025. This is in addition to the tax credits I outlined above.
I am proud of the underwriting portfolio as contribution to our financial results in 2025, and equally proud of our execution at the recent renewals, which will support sustainability of strong returns going forward.
Next moving to expenses where our operating expense ratio for the year was 4.7% down slightly from last year.
I will expand on both topics beginning with our 2025 performance and how superior underwriting supported strong results across each driver.
This reduction is largely driven by the substance-based tax credits I just discussed and is partially offset by continued investment in our business and the year-end bonus approvals.
Starting with underwriting income during 2025, reshaped our already attractive portfolio to make it even better growing property cap holding our profitable positions in other property specialty and credit and reducing in the casualty lines that were most exposed to high levels of claims inflation.
Looking ahead, we expect our operating expense ratio to average between 5 and 5.5 percent, as we continue to invest in the business.
As a result in 2025, our underwriting portfolio generated $1 $3 billion in income with.
In conclusion, we delivered strong results in the fourth quarter and throughout 2025, driven by meaningful contributions from all three drivers of profit and disciplined capital management.
With solid current year performance, despite several large property and specialty events.
As we look forward, our 3 drivers are positioned to produce similarly, strong results in 2026 for the benefit of our shareholders.
Prior year performance was highly favorable reflecting the strength of our historical underwriting decisions and a disciplined reserving approach.
I'll turn the call over to David.
David Marra: Thanks, Bob, and good morning, everyone. As Kevin and Bob both explained, we have maintained profitability throughout a wide range of market conditions because of the diversification across our three drivers of profit. Strong underwriting underpins the stability of our earnings, because each of our three drivers of profit are ultimately fueled by our portfolio. I'm proud of the underwriting portfolio's contribution to our financial results in 2025, and equally proud of our execution at the recent renewals, which will support sustainability of strong returns going forward. I will expand on both topics, beginning with our 2025 performance and how superior underwriting supported strong results across each driver. Starting with underwriting income, during 2025, we shaped our already attractive portfolio to make it even better.
David Marra: Thanks, Bob, and good morning, everyone. As Kevin and Bob both explained, we have maintained profitability throughout a wide range of market conditions because of the diversification across our three drivers of profit. Strong underwriting underpins the stability of our earnings, because each of our three drivers of profit are ultimately fueled by our portfolio. I'm proud of the underwriting portfolio's contribution to our financial results in 2025, and equally proud of our execution at the recent renewals, which will support sustainability of strong returns going forward. I will expand on both topics, beginning with our 2025 performance and how superior underwriting supported strong results across each driver. Starting with underwriting income, during 2025, we shaped our already attractive portfolio to make it even better.
Thanks Bob and good morning everyone.
With respect to fee income, we deployed efficient partner capital in both property and casualty and specialty this enabled us to trade broadly across programs with large capacity.
It's Kevin and Bob both explained, we have maintained profitability throughout a wide range of market conditions because of the diversification across our 3 drivers and profit.
While also resulting in $329 million of fee income for the year.
Strong underwriting. Underpins the stability of our earnings because each of our 3 drivers of profit are ultimately fueled by our portfolio.
With respect to investment income our underwriting portfolio has generated a $22 billion diversified pool of reserves.
These reserves are a primary source of float, which gives us meaningful investment leverage and result in substantial sustainable net investment income for our shareholders.
I'm proud of the underwriting portfolio's contribution to our financial results in 2025 and equally proud of our execution at the recent renewals, which will support sustainability, of strong returns going forward.
Both segments contributed significantly to our overall return on equity through these three drivers of profit property contributed primarily to underwriting and fee income.
I'll expand on both topics, beginning with our 2025 performance and how superior underwriting supported strong results across each driver.
David Marra: Growing property CAT, holding our profitable positions in other property, specialty, and credit, and reducing in the casualty lines that were most exposed to high levels of claims inflation. As a result, in 2025, our underwriting portfolio generated $1.3 billion in income, with solid current year performance, despite several large property and specialty events. Prior year performance was highly favorable, reflecting the strength of our historical underwriting decisions and a disciplined reserving approach. With respect to fee income, we deployed efficient partner capital in both property and casualty and specialty. This enabled us to trade broadly across programs with large capacity, while also resulting in $329 million of fee income for the year. With respect to investment income, our underwriting portfolio has generated a $22 billion diversified pool of reserves.
David Marra: Growing property CAT, holding our profitable positions in other property, specialty, and credit, and reducing in the casualty lines that were most exposed to high levels of claims inflation. As a result, in 2025, our underwriting portfolio generated $1.3 billion in income, with solid current year performance, despite several large property and specialty events. Prior year performance was highly favorable, reflecting the strength of our historical underwriting decisions and a disciplined reserving approach. With respect to fee income, we deployed efficient partner capital in both property and casualty and specialty. This enabled us to trade broadly across programs with large capacity, while also resulting in $329 million of fee income for the year. With respect to investment income, our underwriting portfolio has generated a $22 billion diversified pool of reserves.
Casualty and specialty contributed primarily to investments in fee income.
This was by design.
And as our results demonstrate it was a highly profitable way to construct our portfolio in this market.
Starting with underwriting income during 2025, we shaped our already attractive portfolio to make it even better. Growing property cap holding our profitable positions in other property specialty and credit and reducing in the casualty lines that were most exposed to high levels of claims inflation.
Moving on to the January one 2026 renewal.
As an underwriting team we have two primary goals at Trimble.
As a result in 2025 our underwriting portfolio generated 1.3 billion dollars in income.
First deliver our market leading value proposition to clients and brokers. This ensures a sustainable pipeline of renewable business.
With solid current year performance, despite several large property and Specialty events.
First call status and favorable signings, which are resilient to competition.
Prior-year performance was highly favorable, reflecting the strength of our historical underwriting decisions and a disciplined reserving approach.
Second construct the optimal underwriting portfolio across business segments to feed each of our drivers of profit and generate capital efficient risk adjusted returns in any given year and over the cycle I believe we achieved both objectives at January one.
With respect to the income, we deployed efficient partner capital in both Property and Casualty and Specialty. This enabled us to trade broadly across programs with large capacity.
While also resulting in $329 million of fee income for the year.
Competition follows favorable reinsurance results and we saw increased supply of reinsurance capacity with pressure on rates and margins. We were starting from a strong position, however, and remain confident in rate adequacy across the portfolio.
David Marra: These reserves are our primary source of float, which gives us meaningful investment leverage and results in substantial, sustainable net investment income for our shareholders. Both segments contributed significantly to our overall return on equity through these three drivers of profit. Property contributed primarily to underwriting and fee income, and Casualty and Specialty contributed primarily to investment and fee income. This was by design, and as our results demonstrate, it was a highly profitable way to construct our portfolio in this market. Moving on to the 1 January 2026 renewal. As an underwriting team, we have two primary goals at each renewal. First, deliver our market-leading value proposition to clients and brokers. This ensures a sustainable pipeline of renewable business, first call status, and favorable signings, which are resilient to competition.
David Marra: These reserves are our primary source of float, which gives us meaningful investment leverage and results in substantial, sustainable net investment income for our shareholders. Both segments contributed significantly to our overall return on equity through these three drivers of profit. Property contributed primarily to underwriting and fee income, and Casualty and Specialty contributed primarily to investment and fee income. This was by design, and as our results demonstrate, it was a highly profitable way to construct our portfolio in this market. Moving on to the 1 January 2026 renewal. As an underwriting team, we have two primary goals at each renewal. First, deliver our market-leading value proposition to clients and brokers. This ensures a sustainable pipeline of renewable business, first call status, and favorable signings, which are resilient to competition.
As I mentioned last quarter. This is not a market where all risks are equally attractive or equally accessible.
With respect to investment income. Our underwriting portfolio has generated a 22 billion Diversified pool of reserves. These reserves are primary source of float, which gives us meaningful investment, leverage and results in substantial sustainable. Net investment income for our shareholders.
We succeeded in building a differentiated portfolio by deploying our underwriting expertise to select the most attractive risks and our broad client relationships to achieve the most attractive signings.
Both segments contributed significantly to our overall return on equity through these three drivers of profit: property, treated primarily to underwriting and fee income.
And Casualty and Specialty contributed primarily to investment and fee income?
We took a deal by deal and client by client approach trading our participation on programs holistically across lines and geographies.
This was by Design, and as our results demonstrate, it was a highly profitable way to construct our portfolio in this market.
This resulted in us securing our desired lines when many others were signed down due to competition.
Moving on to the January 1, 2026, renewal.
As an underwriting team, we have two primary goals at each renewal.
It also facilitated targeted reductions in some cases.
Without impacting the lines, we wanted to maintain.
I'll now walk through our actions at the January one renewal in more detail by segment starting with property.
First deliver, our Market leading value proposition to clients and Brokers. This ensures a sustainable pipeline of renewable business.
David Marra: Second, construct the optimal underwriting portfolio across business segments to feed each of our drivers of profit and generate capital-efficient, risk-adjusted returns in any given year and over the cycle. I believe we achieved both objectives at 1 January. Competition follows favorable reinsurance results, and we saw increased supply of reinsurance capacity with pressure on rates and margins. We were starting from a strong position, however, and remain confident in rate adequacy across the portfolio. As I mentioned last quarter, this is not a market where all risks are equally attractive or equally accessible. We succeeded in building a differentiated portfolio by deploying our underwriting expertise to select the most attractive risks and our broad client relationships to achieve the most attractive signings. We took a deal-by-deal and client-by-client approach, trading our participation on programs holistically across lines and geographies.
David Marra: Second, construct the optimal underwriting portfolio across business segments to feed each of our drivers of profit and generate capital-efficient, risk-adjusted returns in any given year and over the cycle. I believe we achieved both objectives at 1 January. Competition follows favorable reinsurance results, and we saw increased supply of reinsurance capacity with pressure on rates and margins. We were starting from a strong position, however, and remain confident in rate adequacy across the portfolio. As I mentioned last quarter, this is not a market where all risks are equally attractive or equally accessible. We succeeded in building a differentiated portfolio by deploying our underwriting expertise to select the most attractive risks and our broad client relationships to achieve the most attractive signings. We took a deal-by-deal and client-by-client approach, trading our participation on programs holistically across lines and geographies.
Our goal in property catastrophe was to maintain our existing portfolio and deploy additional capacity into attractive opportunities.
First call status and favorable signings, which are resilient to competition.
Second.
Reinsurance supply was up following several years of strong results.
This additional supply resulted in increased pressure globally with rates down on average in the low teens for our portfolio.
Construct the optimal underwriting portfolio across business segments to feed each of our drivers of profit and generate capital-efficient, risk-adjusted returns in any given year, and over the cycle,
I believe we achieved both objectives as of January 1st.
Retentions in terms and conditions remain consistent with recent strong levels.
We successfully renewed our existing lines and deployed new limit selectively across our owned and managed the balance sheets.
Petition follows, favorable reinsurance results. And we saw increased supply of reinsurance capacity, with pressure on rates and margins. We were starting from a strong position, however, and remain confident in great adequacy of the portfolio.
Overall, we expect to see a reduction in gross premiums written in Q1 due to rate decreases which will be partially offset by growth from new demand.
As I mentioned last quarter, this is not a market where all risks are equally attractive or equally accessible.
Model margin of the property catastrophe book remains well above the cost of capital and as we described last quarter. There are several mitigating to the effect of rate decreases on our net retained business.
We succeeded in building. A differentiated portfolio, by deploying our underwriting, expertise to select the most attractive risks and our broad client relationships to achieve the most attractive signings.
David Marra: This resulted in us securing our desired lines when many others were signed down due to competition. It also facilitated targeted reductions in some cases, without impacting the lines we wanted to maintain. I'll now walk through our actions at the 1 January renewal in more detail by segment, starting with property. Our goal in property catastrophe was to maintain our existing portfolio and deploy additional capacity into attractive opportunities. Reinsurance supply was up following several years of strong results. This additional supply resulted in increased rate of pressure globally, with rates down on average in the low teens for our portfolio. Retentions in terms and conditions remain consistent with recent strong levels. We successfully renewed our existing line and deployed new limits selectively across our owned and managed balance sheets.
David Marra: This resulted in us securing our desired lines when many others were signed down due to competition. It also facilitated targeted reductions in some cases, without impacting the lines we wanted to maintain. I'll now walk through our actions at the 1 January renewal in more detail by segment, starting with property. Our goal in property catastrophe was to maintain our existing portfolio and deploy additional capacity into attractive opportunities. Reinsurance supply was up following several years of strong results. This additional supply resulted in increased rate of pressure globally, with rates down on average in the low teens for our portfolio. Retentions in terms and conditions remain consistent with recent strong levels. We successfully renewed our existing line and deployed new limits selectively across our owned and managed balance sheets.
First we shape our portfolio was ceded reinsurance, which improves our net result ceded rates were down high teens across our portfolio.
We took a deal by deal and client by client approached trading our participation on programs holistically across lines and geographies.
This resulted in a securing, our desired lines, when many others were signed down due to competition.
In addition, we renewed a series of our Mona Lisa Cat bond at a larger size with spread tightening by more than 50% on a risk adjusted basis.
It also facilitates, a targeted, reductions in some cases.
Without impacting the lines. We wanted to maintain.
And finally, we share a significant part of our portfolio with capital partner vehicles, which produces fee income, which is less sensitive to rate movements.
I'll now walk through our actions at the January 1 and more detail by segments, starting with property.
This strategy has resulted in an average underwriting margin of over 50% over the last three years and we remain confident in our ability to continue producing strong returns on our property Cat book.
Our goal in property, catastrophe was to maintain our existing portfolio and deploy additional capacity into attractive opportunities.
Reinsurance Supply was up following several years of strong results.
And other property our goal was to optimize the book to reduce peak exposure and maintain attractive margins.
This additional supply resulted in increased rate pressure globally, with rates down on average in the low teens for our portfolio.
Pretensions in terms and conditions remain consistent with recent strong levels.
Going several years of profitable results and favorable claims trends, we are experiencing great pressure.
David Marra: Overall, we expect to see a reduction in gross premiums written in Q1 due to rate decreases, which will be partially offset by growth from new demand. Model margin in the property catastrophe book remains well above the cost of capital, and as we described last quarter, there are several mitigants to the effect of rate decreases on our net retained business. First, we shape our portfolio with ceded reinsurance, which improves our net result. Ceded rates were down high teens across our portfolio.... In addition, we renewed a series of our Mona Lisa cat bonds at a larger size, with spread tightening by more than 50% on a risk-adjusted basis. And finally, we share a significant part of our portfolio with capital partner vehicles, which produces fee income, which is less sensitive to rate movement.
David Marra: Overall, we expect to see a reduction in gross premiums written in Q1 due to rate decreases, which will be partially offset by growth from new demand. Model margin in the property catastrophe book remains well above the cost of capital, and as we described last quarter, there are several mitigants to the effect of rate decreases on our net retained business. First, we shape our portfolio with ceded reinsurance, which improves our net result. Ceded rates were down high teens across our portfolio.... In addition, we renewed a series of our Mona Lisa cat bonds at a larger size, with spread tightening by more than 50% on a risk-adjusted basis. And finally, we share a significant part of our portfolio with capital partner vehicles, which produces fee income, which is less sensitive to rate movement.
We successfully renewed our existing lines and deployed, new limits selectively across our own and manage balance sheets.
And conditions, such as deductibles and policy supplements remains strong.
At the January 1st renewals, we maintained our positions across other property, but reduced exposure in areas with the most rate pressure and managed net profitability through improved ceded purchases.
Overall, we expect to see a reduction in growth premiums written in Q1 due to rate decreases.
Which will be partially offset by growth from new demand.
Model margin and the property catastrophe book remains well above the cost of capital.
Shifting now to our casualty and specialty book.
In casualty, we aimed to fine tune our positions to continue to manage exposure to areas. Most at risk of continued loss inflation.
And as we described last quarter, there are several mitigants to the effect of rate decreases on our net retained business.
First, we shape our portfolio with seated reinsurance, which improves our net result.
After reducing exposure significantly in 2025, our approach at the January one renewal was lighter Todd we turned back on programs, where we saw below average results, while continuing to benefit from rate increases across the book.
Seated rates were down High Teens across our portfolio.
In addition, we renewed a series of our Mona Lisa cap bonds at a larger size with spread tightening, by more than 50% on a risk-adjusted basis.
Over the last 18 months clients have been keeping up with trend in general liability by increasing your voice.
Many clients are further differentiating ourselves through investments in claims handling.
David Marra: This strategy has resulted in an average underwriting margin of over 50% over the last three years, and we remain confident in our ability to continue producing strong returns on our property cat book. In other property, our goal was to optimize the book to reduce peak exposure and maintain attractive margins. Following several years of profitable results and favorable claims trends, we are experiencing rate pressure. Terms and conditions, such as deductibles and policy supplements, remain strong. At the 1 January renewal, we maintained our positions across other property, but reduced exposure in areas with the most rate pressure and managed net profitability through improved ceded purchases. Shifting now to our casualty and specialty book. In casualty, we aimed to fine-tune our positions to continue to manage exposure to areas most at risk of continued loss inflation.
David Marra: This strategy has resulted in an average underwriting margin of over 50% over the last three years, and we remain confident in our ability to continue producing strong returns on our property cat book. In other property, our goal was to optimize the book to reduce peak exposure and maintain attractive margins. Following several years of profitable results and favorable claims trends, we are experiencing rate pressure. Terms and conditions, such as deductibles and policy supplements, remain strong. At the 1 January renewal, we maintained our positions across other property, but reduced exposure in areas with the most rate pressure and managed net profitability through improved ceded purchases. Shifting now to our casualty and specialty book. In casualty, we aimed to fine-tune our positions to continue to manage exposure to areas most at risk of continued loss inflation.
We share a significant part of our portfolio with Capital Partner Vehicles, which produces fee income, Which is less sensitive to rate movement.
These improvements will take time to be reflected in our results, but we like the progress that's being made.
We measure the success of our casualty business over a 10 year period and believe we have made the right underwriting decisions for this point in the cycle.
This strategy has resulted in an average underwriting margin of over 50% over the last three years, and we remain confident in our ability to continue producing strong returns in our property cat book.
Maintaining our casualty positions and the best panels gives us options to benefit from improved underwriting margins as the market strengthens while still allowing us to earn a strong return from the float in the interim.
In other property, our goal was to optimize the book to reduce Peak exposure in Maine, train, and attractive margins.
Following several years of profitable results in favorable claims we are experiencing great pressure.
For every dollar of casualty business, we write we benefit from more than 20 of investment income. This is the best way to construct our portfolio in this market and makes our casualty portfolio highly accretive to book value over both the short and long term.
Terms and conditions, such as deductibles and policy sublimits, remain strong.
At the January 1st renewal, we maintained our positions across other property, but reduced exposure in areas with the most rate pressure and managed net profitability through improved seated purchases.
And finally in specialty and credit our goal was to hold our positions in profitable lines and shifts the balance towards the highest margin classes.
Shifting now to our casualty and Specialty book.
In specialty we have a strong leadership position across lines and were successful in achieving positive differential terms on several placements our ability to trade with clients across classes of property casualty and specialty enabled us to successfully maintain lines. Despite competition and we increased diversification by geography and line of business.
David Marra: After reducing exposure significantly in 2025, our approach at the January 1 renewal was lighter touch. We trimmed back on programs where we saw below-average results while continuing to benefit from rate increases across the book. Over the last 18 months, clients have been keeping up with trend in general liability by increasing our base. Many clients are further differentiating themselves through investments in claims handling. These improvements will take time to be reflected in results, but we like the progress that is being made. We measure the success of our casualty business over a 10-year period and believe we have made the right underwriting decisions for this point in the cycle. Maintaining our casualty positions on the best panels gives us options to benefit from improved underwriting margins as the market strengthens, while still allowing us to earn a strong return from the float in the interim.
David Marra: After reducing exposure significantly in 2025, our approach at the January 1 renewal was lighter touch. We trimmed back on programs where we saw below-average results while continuing to benefit from rate increases across the book. Over the last 18 months, clients have been keeping up with trend in general liability by increasing our base. Many clients are further differentiating themselves through investments in claims handling. These improvements will take time to be reflected in results, but we like the progress that is being made. We measure the success of our casualty business over a 10-year period and believe we have made the right underwriting decisions for this point in the cycle. Maintaining our casualty positions on the best panels gives us options to benefit from improved underwriting margins as the market strengthens, while still allowing us to earn a strong return from the float in the interim.
In casualty, we aimed to finetune our positions to continue to manage exposure to areas most at risk of continued loss inflation.
After reducing exposure significantly in 2025, our approach at January 1 was lighter touch.
We trimmed back on programs where we saw below average results while continuing to benefit from rate increases across the book.
And credit at this renewal we maintained our share is unprofitable business and selectively grew into opportunities across the portfolio.
Over the last 18 months, clients have been keeping up with Trend and general liability by increasing your rates.
We expect profitability to remain strong.
Many clients are further differentiating themselves through investments in claims handling.
We purchased a significant amount of ceded reinsurance in the casualty and specialty business and found attractive opportunities at one one to increase our protection.
These improvements will take time to be reflected in results, but we'd like the progress that is being made.
Putting this altogether gross premiums in our casualty and specialty portfolio are likely to be down in 2026 compared to 2025 net premiums will be down more than gross given increased ceded purchases.
To measure the success of our casualty business over a 10-year period, we believe we have made the right underwriting decisions for this point in the cycle.
Underwriting margins remain tightened the segment, we continue to expect an adjusted combined ratio in the high nineties as I described earlier. However, we are confident that we have effectively tradeoffs between underwriting margin and investment income driving healthy returns for shareholders.
David Marra: For every dollar of casualty business we write, we benefit from more than 20 cents of investment income. This is the best way to construct our portfolio in this market and makes our casualty portfolio highly accretive to book value over both the short and long term. And finally, in specialty and credit, our goal was to hold our positions in profitable lines and shift the balance towards the highest margin classes. In specialty, we have a strong leadership position across lines, and we're successful in achieving positive differential terms on several placements. Our ability to trade with clients across classes of property, casualty, and specialty enabled us to successfully maintain lines despite competition, and we increased diversification by geography and line of business. In credit, at this renewal, we maintained our shares on profitable business and selectively grew into opportunities across the portfolio. We expect profitability to remain strong.
David Marra: For every dollar of casualty business we write, we benefit from more than 20 cents of investment income. This is the best way to construct our portfolio in this market and makes our casualty portfolio highly accretive to book value over both the short and long term. And finally, in specialty and credit, our goal was to hold our positions in profitable lines and shift the balance towards the highest margin classes. In specialty, we have a strong leadership position across lines, and we're successful in achieving positive differential terms on several placements. Our ability to trade with clients across classes of property, casualty, and specialty enabled us to successfully maintain lines despite competition, and we increased diversification by geography and line of business. In credit, at this renewal, we maintained our shares on profitable business and selectively grew into opportunities across the portfolio. We expect profitability to remain strong.
Maintaining our casualty positions on the best panels gives us options to benefit from improved underwriting margins as the market strengthens, while still allowing us to earn a strong return from the float in the interim.
For every dollar of casualty business, we write we benefit from more than 20 cents of investment income. This is the best way to construct our portfolio in this market and makes our casualty portfolio. Highly accretive to book value over both the short and long term.
In closing.
We enter 2026 with deep client relationships and an underwriting portfolio built to optimize that support our three drivers of profit all of which position us to continue delivering superior shareholder returns this year and over the long term and with that I'll turn it back to Kevin.
And finally, in specialty and credit. Our goal was to hold our positions in profitable lines and shift the balance towards the highest margin classes.
Thanks, David.
To close our prepared comments.
Our performance in 2025 gives me great confidence in the future.
In specialty, we have a strong leadership position across lines and we're successful in achieving positive. Differential, terms in several placements. Our ability to trade with clients across classes of property, casualty and Specialty, and enable this to successfully maintain lines despite competition
We anticipate that each of our three drivers of profit will remain robust sources of income in 2026.
And we increase diversification by geography and line of business.
More importantly, we have the strongest team in the industry and I Couldnt imagine a company better positioned to succeed in any and all market environments.
In credit at this. Renewal, we maintained our shares on profitable business, and selectively grew into opportunities across the portfolio.
David Marra: We purchased a significant amount of ceded reinsurance in the Casualty and Specialty business and found attractive opportunities at 1:1 to increase our protection. Putting this all together, gross premiums in our Casualty and Specialty portfolio are likely to be down in 2026 compared to 2025. Net premiums will be down more than gross, given increased ceded purchasing. Underwriting margins remain tight in the segment. We continue to expect an adjusted combined ratio in the high 90s. As I described earlier, however, we are confident we have effectively balanced trade-offs between underwriting margin and investment income, driving healthy returns for shareholders. In closing, we enter 2026 with deep client relationships and an underwriting portfolio built to optimally support our three drivers of profit, all of which position us to continue delivering superior shareholder returns this year and over the long term.
David Marra: We purchased a significant amount of ceded reinsurance in the Casualty and Specialty business and found attractive opportunities at 1:1 to increase our protection. Putting this all together, gross premiums in our Casualty and Specialty portfolio are likely to be down in 2026 compared to 2025. Net premiums will be down more than gross, given increased ceded purchasing. Underwriting margins remain tight in the segment. We continue to expect an adjusted combined ratio in the high 90s. As I described earlier, however, we are confident we have effectively balanced trade-offs between underwriting margin and investment income, driving healthy returns for shareholders. In closing, we enter 2026 with deep client relationships and an underwriting portfolio built to optimally support our three drivers of profit, all of which position us to continue delivering superior shareholder returns this year and over the long term.
We expect profitability to remain strong.
As a result, we expect to continue to deliver outstanding shareholder value over the course of the year, thanks, and with that I'll turn it back to you to take the questions.
We purchased a significant amount of seated reinsurance in the casualty and Specialty business and found attractive opportunities at 11 to increase our protection.
Thank you.
This time, if you would like to ask a question. Please press star one on your telephone keypad.
Putting this all together, gross premiums in our casualty and specialty portfolio are likely to be down in 2026 compared to 2025. Net premiums will be down even more, given increased ceded purchasing.
If you wish to remove yourself from the queue you may do so by pressing star two.
We remind you to please on mute your line when introduced and if possible pick up your handset for optimal sound quality.
Underwriting margins remain tight in the segment. We continue to expect and adjusted combined ratio in the high 90s as I described earlier. However, we are confident, we have effectively balanced the trade-offs between underwriting margin and investment income driving healthy returns for shareholders.
In closing.
In the interest of time, we ask that you. Please limit yourself to one question and one follow up.
We will now take our first question from Elyse Greenspan with Wells Fargo. Please go ahead. Your line is open.
David Marra: With that, I'll turn it back to Kevin.
David Marra: With that, I'll turn it back to Kevin.
Kevin O'Donnell: Thanks, David. To close our prepared comments, our performance in 2025 gives me great confidence in the future. We anticipate that each of our three drivers of profit will remain robust sources of income in 2026. More importantly, we have the strongest team in the industry, and I couldn't imagine a company better positioned to succeed in any and all market environments. As a result, we expect to continue to deliver outstanding shareholder value over the course of the year. Thanks, and with that, I'll turn it back to you to take the questions.
Kevin O'Donnell: Thanks, David. To close our prepared comments, our performance in 2025 gives me great confidence in the future. We anticipate that each of our three drivers of profit will remain robust sources of income in 2026. More importantly, we have the strongest team in the industry, and I couldn't imagine a company better positioned to succeed in any and all market environments. As a result, we expect to continue to deliver outstanding shareholder value over the course of the year. Thanks, and with that, I'll turn it back to you to take the questions.
We enter 2026 with deep client relationships and an underwriting portfolio built to optimally support our three drivers of profit, all of which position us to continue delivering superior shareholder returns this year and over the long term. And with that, I'll turn it back to Kevin.
Thanks David.
Hi, Thanks. Good morning, My first question is on property cat.
Uh, to close our prepared comments.
Our performance in 2025 gives me great confidence in the future.
If I said that you expected.
I think premiums to be down mid single digits right.
We anticipate that each of our 3 drivers are profit will remain robust sources of income in 2026.
Due to some changes right that is obviously better than the price decline you saw I just wanted to confirm is that that's a view for all of 2006 and then if that is the case I guess what are you assuming within that guide happens for pricing during the other renewable seasons of the year.
More importantly, we have the strongest team in the industry and I couldn't imagine a company better position to succeed in any and all Market environments.
Operator: Thank you. At this time, if you would like to ask a question, please press star one on your telephone keypad. If you wish to remove yourself from the queue, you may do so by pressing star two. We remind you to please unmute your line when introduced, and if possible, pick up your handset for optimal sound quality. In the interest of time, we ask that you please limit yourself to one question and one follow-up. We will now take our first question from Elyse Greenspan with Wells Fargo. Please go ahead. Your line is open.
Operator: Thank you. At this time, if you would like to ask a question, please press star one on your telephone keypad. If you wish to remove yourself from the queue, you may do so by pressing star two. We remind you to please unmute your line when introduced, and if possible, pick up your handset for optimal sound quality. In the interest of time, we ask that you please limit yourself to one question and one follow-up. We will now take our first question from Elyse Greenspan with Wells Fargo. Please go ahead. Your line is open.
As a result, we expect to continue to deliver outstanding shareholder value of the course of the year. Thanks. And with that, I'll turn it back to you to take the questions.
Thanks Elyse.
Thank you.
Yes that is our expectation for the year.
at this time, if you would like to ask a question,
If you look at the.
Please press star 1 on your telephone keypad.
Supply demand dynamics at one one we expect them to persist.
We anticipate that there'll be continued.
if you wish to remove your cell phone from the queue, you may do so, by pressing star 2,
Ray reductions going into the mid year renewals.
That said, if we look at it I think theres a lot of focus on rate change.
to we remind you to, please unmute your line when introduced and if possible pick up your handset for optimal sound quality,
If we look at rate adequacy its.
It's a bit of a different story there is very strong rate adequacy in the midyear renewals a lot of those are U S focused and many were affected by the wildfires. So we go into that renewal at the same.
In the interest of time, we ask that you please limit yourself to one question and one follow-up.
Elyse Greenspan: Hi, thanks. Good morning. My first question is on property cat. You guys said that you expected, I think premiums to be down mid-single digits, right? Because, you know, due to some changes, right, that's obviously better than the price decline you saw. I just want to confirm, is that- that's a view for all of 2026? And then if that is the case, I guess, what are you assuming within that guide happens for pricing during the other renewal seasons of the year?
Elyse Greenspan: Hi, thanks. Good morning. My first question is on property cat. You guys said that you expected, I think premiums to be down mid-single digits, right? Because, you know, due to some changes, right, that's obviously better than the price decline you saw. I just want to confirm, is that- that's a view for all of 2026? And then if that is the case, I guess, what are you assuming within that guide happens for pricing during the other renewal seasons of the year?
We will now take our first question from Elyse Greenspan. When ready, Spargo, please go ahead. Your line is open.
Risk adjusted reduction so if topline reductions are a little less I think they are waiting environment or a little bit more excuse me.
The robustness of the rate adequacy should serve to produce results similar to what we got at one one.
Thanks, and then I guess.
My second question I guess is just I guess the numbers.
A question for Bob.
You guided to an expense ratio I think in the range of five to five and a half Brian I think it was four 7% and 25 is that <unk>.
Ice decline. You saw I just want to confirm is that that's a view for all of 26 and then if that is the case, I guess, what are you assuming within that guide happens? Um, for pricing during the other renewal seasons of the year?
Kevin O'Donnell: Yeah, thanks, Elyse. Yeah, that, that is our expectation for the year. If you look at the supply-demand dynamics at 1/1, we expect them to persist, so we anticipate that there'll be continued rate reductions going into the mid-year renewals. That said, if we look at - I think there's a lot of focus on rate change. If we look at rate adequacy, it's a bit of a different story. There's very strong rate adequacy in the mid-year renewals. A lot of those are US-focused and many were affected by the wildfires. So we go into that renewal at the same risk-adjusted reduction.
Kevin O'Donnell: Yeah, thanks, Elyse. Yeah, that, that is our expectation for the year. If you look at the supply-demand dynamics at 1/1, we expect them to persist, so we anticipate that there'll be continued rate reductions going into the mid-year renewals. That said, if we look at - I think there's a lot of focus on rate change. If we look at rate adequacy, it's a bit of a different story. There's very strong rate adequacy in the mid-year renewals. A lot of those are US-focused and many were affected by the wildfires. So we go into that renewal at the same risk-adjusted reduction.So if top-line reductions are a little less, I think the rating environment or a little bit more, excuse me, the robustness of the rate adequacy should serve to produce results similar to what we got at Q1.
Uh, thanks Elise. Um,
<unk> the benefit.
The Bermuda tax credits, which I know.
Go up right.
The 75% and 26, because I know you said your investments in the business or is it the floor after that I just want to make sure I'm understanding the numbers correctly.
Yeah, that is our expectation for the year. Um, if you look at the supply-demand dynamics at Q1, we expect them to persist, so we anticipate that there'll be continued rate reductions going into the midyear renewals.
um,
That would be after that.
That would be after giving effect all things that we understand in 2026 that we'll be investing in and other dynamics, but again I'll point out it's still an incredibly low expense ratio.
But then what are I guess is it just like talent in underwriting I guess what are the things.
Thank you guys are investing in that I guess that is taking that taking that ratio up a little bit even with.
Kevin O'Donnell: So if top-line reductions are a little less, I think the rating environment or a little bit more, excuse me, the robustness of the rate adequacy should serve to produce results similar to what we got at Q1.
Even with the tax credit benefit.
Sure that's a good question.
Validus, we brought them on board in 2024, and as we talked about the integration of it each year, we layer on another 11% to $12 billion of premium each year brings more operational complexity and we continue to invest in that we have the scale. We've gone through a lot of work internally to be able to process that but that takes people as we get to scale.
that said, if we look at, I think there's a lot of focus on rate change. Uh, if we look at rate adequacy, uh, it's a bit of a different story. There's very strong rate adequacy in the media, renewals a lot of those are us focused and many were affected by the wildfires. So we go into that. Renewal at the same uh risk adjusted reduction. So if Topline reductions are a little less, I think they're rating environment, they're a little bit more. Excuse me, the, the robustness of the rate adequacy should serve to produce results similar to what we got at 111.
Elyse Greenspan: Thanks. And then I guess, my second question, I guess, is, just, I guess, a numbers, number question for Bob. You guided to an expense ratio, I think, in the range of 5 to 5.5, right? I think it was 4.7 and 25. Is that, including the benefit, of the Bermuda tax credits, which I know, you know, go, go up, right? You'll see, you know, the, the 75% in, in 2060, 'cause I know you said your investment's in the business, or is it before or after? I just wanna make sure I'm understanding the numbers correctly.
Elyse Greenspan: Thanks. And then I guess, my second question, I guess, is, just, I guess, a numbers, number question for Bob. You guided to an expense ratio, I think, in the range of 5 to 5.5, right? I think it was 4.7 and 25. Is that, including the benefit, of the Bermuda tax credits, which I know, you know, go, go up, right? You'll see, you know, the, the 75% in, in 2060, 'cause I know you said your investment's in the business, or is it before or after? I just wanna make sure I'm understanding the numbers correctly.
But again, we are managing that as efficiently as we can.
It comes in through new systems, better efficiency on technology, but we will continue to manage that I gave you a range.
Be at the low end of that range.
Thank you.
Thank you.
Our next question comes from Josh Shanker with Bank of America. Please go ahead. Your line is open.
Robert Qutub: That would be after. Yeah, that would be after giving effect to all things that we understand in 2026, that we'll be investing in and other dynamics. But again, I'll point out, it's still an incredibly low expense ratio.
Robert Qutub: That would be after. Yeah, that would be after giving effect to all things that we understand in 2026, that we'll be investing in and other dynamics. But again, I'll point out, it's still an incredibly low expense ratio.
Thanks and then, I guess, um, my second question I guess is, um, just I guess a number is uh, number of question for Bob. Um, you got it to an expense ratio. I think, in the range of 5 to 5 and a half, right? I think it was 47 and 25 is that, um, including the benefit, um, of the BTO tax credits, which I know. Um, you know, go go up, right. You'll see, you know, the, the 75% in in 26 because I know you said your investments in the business or is it before or after it. I just want to make sure I'm understanding the numbers correctly.
Yes, I'm going to ask two questions, but I'll start with the odd ball so interesting, let's talk about gold.
Can you talk about how that appears on your balance sheet, whether the $400 million gains in the book value.
Elyse Greenspan: But then what are, I guess, the things? Is it just, like, talent and underwriting? I guess, what are the things that you guys are investing in that, I guess, that is taking them up - taking that ratio up a little bit, even with, you know, even with the tax credit benefit?
Elyse Greenspan: But then what are, I guess, the things? Is it just, like, talent and underwriting? I guess, what are the things that you guys are investing in that, I guess, that is taking them up - taking that ratio up a little bit, even with, you know, even with the tax credit benefit?
That would be after, yeah, that would be after, giving effect to all the things that we understand in 2026 that we'll be investing in, and other dynamics. But again, I'll point out, it's still an incredibly low expense ratio.
To let's just say the political situation on planet Earth doesn't change do you care, whether goal is $5000, an ounce or $10000 amounts are going to hold it until political circumstances change.
Robert Qutub: Sure, that's a good question. You know, we bought Validus, we brought them on board in 2024, and as we talked about the integration of it. Each year, we layer on another $11 to 12 billion of premium. Each year brings more operational complexity, and we continue to invest in that. We have the scale. We've gone through a lot of work internally to be able to process that, but that takes people as we get to scale. But again, we are managing that as efficiently as we can. It comes in through new systems, better efficiency on technology, but we'll continue to manage that. I gave you a range, you know, we'll probably be at the low end of that range.
Robert Qutub: Sure, that's a good question. You know, we bought Validus, we brought them on board in 2024, and as we talked about the integration of it. Each year, we layer on another $11 to 12 billion of premium. Each year brings more operational complexity, and we continue to invest in that. We have the scale. We've gone through a lot of work internally to be able to process that, but that takes people as we get to scale. But again, we are managing that as efficiently as we can. It comes in through new systems, better efficiency on technology, but we'll continue to manage that. I gave you a range, you know, we'll probably be at the low end of that range.
But then, what are— I guess, um, is it just like talent and underwriting? I guess, what are the things, um, that you guys are investing in that, I guess, that is taking them up—taking that ratio up a little bit, even with, um, you know, even with the tax credit benefit?
Let me I'll take the second part of your question first and Bob can answer that.
The accounting question.
We.
We've looked at we've put the gold position on in 'twenty.
<unk> 24.
23, sorry in 'twenty three as we looked at the world.
Different risks emerging and we think about the enterprise risk that we have to manage and we thought it was a good hedge against the underwriting portfolio and a good hedge against.
Sure, that's a good question. You know, we've bought Validus, we brought them on board in 2024 and have talked about the integration of it. Each year, we layer on another $11 to $12 billion of premium. Each year brings more operational complexity, and we continue to invest in that. We have the scale. We've gone through a lot of work internally to be able to process that, but that takes people as we get to scale. But again, we are managing that as efficiently as we can.
So the interest rate risk in the investment portfolio.
Uh it comes in through new systems, better efficiency on technology but we'll continue to manage that. I give you a range, you know, we'll probably be at the low end of that range.
Elyse Greenspan: Thank you.
Elyse Greenspan: Thank you.
It continues to serve as a hedge in the portfolio.
Thank you.
Operator: Thank you. Our next question comes from Josh Shanker with Bank of America. Please go ahead, your line is open.
Operator: Thank you. Our next question comes from Josh Shanker with Bank of America. Please go ahead, your line is open.
Thank you.
So whether it's at $4000 or $5000, it's something that we're constantly looking at them, but we don't have a price target to say that it's an investment and we're exiting at this point, we continue to monitor actively against the enterprise risks for managing.
Our next question comes from Josh chancre with Bank of America, please go ahead. Your line is open.
Joshua Shanker: Yeah, I'm going to ask two questions, and I'm going to start with the oddball because it's so interesting. Let's talk about gold. Can you talk about how that appears on your balance sheet, whether the $400 million gain is in the book value? And, two, let's just say the political situation on planet Earth doesn't change. Do you care whether gold is $5,000 an ounce or $10,000 an ounce? You're going to hold it until political circumstances change?
Joshua Shanker: Yeah, I'm going to ask two questions, and I'm going to start with the oddball because it's so interesting. Let's talk about gold. Can you talk about how that appears on your balance sheet, whether the $400 million gain is in the book value? And, two, let's just say the political situation on planet Earth doesn't change. Do you care whether gold is $5,000 an ounce or $10,000 an ounce? You're going to hold it until political circumstances change?
Yeah, I'm gonna ask 2 questions, I'm sorry with the oddballs. It's so interesting. Let's talk about gold.
Josh on the second question. This represents because these are futures contracts as the unrealized gain on the mark to market.
We have a modest margin up against or is it really drove a lot of capital.
Okay, and then on the question of capital.
There's a lot of companies give us <unk> things around re does not it's part of the secret sauce.
Kevin O'Donnell: Let me, I'll take the second part of your question first, and Bob can answer the, the, accounting question. We looked at... We put the gold position on in 2024, twenty-three, sorry, in 2023, as we looked at the world and saw, you know, different risks emerging, and we think about the enterprise risk that we have to manage, and we thought it was a good hedge against the underwriting portfolio and a good hedge against, some of the interest rate risk in the investment portfolio. It continues to serve as a hedge in the portfolio, so whether it's at $4,000 or $5,000, it's something that we're constantly looking at, and but we don't have a price target to say that it's an investment, and we're exiting at this point.
Kevin O'Donnell: Let me, I'll take the second part of your question first, and Bob can answer the, the, accounting question. We looked at... We put the gold position on in 2024, twenty-three, sorry, in 2023, as we looked at the world and saw, you know, different risks emerging, and we think about the enterprise risk that we have to manage, and we thought it was a good hedge against the underwriting portfolio and a good hedge against, some of the interest rate risk in the investment portfolio. It continues to serve as a hedge in the portfolio, so whether it's at $4,000 or $5,000, it's something that we're constantly looking at, and but we don't have a price target to say that it's an investment, and we're exiting at this point. We continue to monitor it actively against the enterprise risk we're managing.
Uh, can you talk about how that appears on your balance sheet, whether the $400 million gain is in the book value? And, uh, two, let's just say the political situation on planet Earth doesn't change. Do you care whether gold is an ounce or $10,000 an ounce? You're going to hold it until political circumstances change.
Can you talk about in any way that we can make how much more aggregate you want to put to.
To work in property risk in 2026.
Let me, I'll take a second part of your question first. And Bob can answer the the accounting question. Um, we we
Or whether it's going to be similar to your 2025 and the money you make basically can be returned to shareholders.
looked at, you know, we put the gold position on in
Yes.
We normally talk more about this at the next call.
But our plan as we put together their pro forma for where we're going to structure the business on a net basis I would say, we'll probably hold.
In 2024, 232, as we looked at the world and saw, you know, um, different risks emerging. And we think about the enterprise risk that we have to manage, and we thought it was a good hedge against the underwriting portfolio and a good hedge against, um, some of the interest rate risk in the investment portfolio.
Risk relatively flat.
Hurricane Southeast Hurricane, which is still a dominant.
Dominant peak.
That could change if we see more opportunities are.
Kevin O'Donnell: We continue to monitor it actively against the enterprise risk we're managing.
Better than expected.
Pricing going into the summer renewals, but at this point I would say our risk will be on a net basis relatively stable.
Robert Qutub: Josh, on the second question, this represents, because these are futures contracts, it's the unrealized gain on the mark to market. We have a modest margin up against them. It doesn't really draw a lot of capital.
Robert Qutub: Josh, on the second question, this represents, because these are futures contracts, it's the unrealized gain on the mark to market. We have a modest margin up against them. It doesn't really draw a lot of capital.
Uh, it continues to serve as a hedge in the portfolio. Uh, so whether it's at 4000 or 5000, it's something that we're constantly looking at and but we don't have a price Target to say that it's an investment and we're exiting at this point, we continue to monitor it actively against the Enterprise risk for managing
As far as our plan at this point, but that could change.
Josh on the second question is represents because these are Futures contracts. It's the unrealized gain on the mark to Market.
Perfect answers. Thank you.
Joshua Shanker: Okay, and then on the question of capital, you know, there's a lot of companies give us PMLs and things, and RenaissanceRe is not a part of the secret sauce. But can you talk about, in any way that we can make, how much more aggregate you want to put to work in property risk in 2026, or whether it's going to be a similar year to 2025, and the money you make basically can be returned to shareholders?
Joshua Shanker: Okay, and then on the question of capital, you know, there's a lot of companies give us PMLs and things, and RenaissanceRe is not a part of the secret sauce. But can you talk about, in any way that we can make, how much more aggregate you want to put to work in property risk in 2026, or whether it's going to be a similar year to 2025, and the money you make basically can be returned to shareholders?
Thank you.
And we have a modest margin up against it and it doesn't really draw a lot of capital.
Our next question comes from <unk> <unk> with Mizuho. Please go ahead. Your line is open.
Okay, and then on the um, question of capital.
Thank you good morning.
Just wanted to go back to the property cat market.
Given the declines that we saw in rates.
One one renewals and if there is some expectation further declines in 400 161.
How are you thinking of expected returns on rate adequacy and that book in 2026.
Kevin O'Donnell: Yeah, we normally talk more about this at the next call, but our plan as we put together the pro forma for where we're going to structure the business, on a net basis, I would say we'll probably hold risk relatively flat for the hurricane, southeast hurricane, which is still our dominant peak. That could change if we see more opportunities or, you know, better than expected pricing going into the summer renewals. But at this point, I would say our risk will be, on a net basis, relatively stable, as far as our plan at this point, but that could change.
Kevin O'Donnell: Yeah, we normally talk more about this at the next call, but our plan as we put together the pro forma for where we're going to structure the business, on a net basis, I would say we'll probably hold risk relatively flat for the hurricane, southeast hurricane, which is still our dominant peak. That could change if we see more opportunities or, you know, better than expected pricing going into the summer renewals. But at this point, I would say our risk will be, on a net basis, relatively stable, as far as our plan at this point, but that could change.
Similar year 2025 and the money you make basically, can be returned to shareholders.
Yeah. Um,
And then how are you looking to deploy capacity into that market.
What areas would be more or less interesting compared to 25.
Yes, Hi, this is David I can take that one I think.
First of all we said we did see pressure, but we were starting from a very good spot. So rate adequacy is still strong I can break that down a little bit more for you and the low teens that we saw in the overall cat book that is a bit separate the U S. Cat book that renews in Q1 at one one it's about a third of the U S. Cat book that was down about 10%, whereas.
International and global portfolio was down about 15%. So part of what we're faced with is not all risks are the same both of those risks are attractive in their own ways.
Joshua Shanker: Perfect answers. Thank you.
Joshua Shanker: Perfect answers. Thank you.
we normally talk more about this at the next call, um, but our plan as we put together the ProForm for where we're going to structure the business on a net basis. I would say will probably hold, uh, risk relatively flat for the hurricane uh, Southeast hurricane, which is still our our, our dominant Peak uh, that could change if we see more opportunities or, um, you know, better than expected, uh, pricing going into the the summer renewals. But this point, I would say our risk will be on a net basis is relatively stable uh, as far as our planet at this point, but that could change.
Perfect answers. Thank you.
Operator: Thank you.
Operator: Thank you.
Thank you. Thank you.
Joshua Shanker: Thank you.
Kevin O'Donnell: Thank you.
Operator: Our next question comes from Yaron Kinar with Mizuho. Please go ahead, your line is open.
Operator: Our next question comes from Yaron Kinar with Mizuho. Please go ahead, your line is open.
But bringing level is still high we also see really strong terms and conditions consistent with the last three years. So it's not as much about how will we react to rate decreases we have.
Yaron Kinar: Thank you. Good morning. Just want to go back to the property cat market. You know, given the declines that we saw in rates and 1/1 renewals, I think there's some expectation of further declines in 4/1, 6/1. How are you thinking of expected returns and rate adequacy in that book in 2026? And how are you looking to deploy capacity into that market? What areas would be more or less interesting compared to 2025?
Yaron Kinar: Thank you. Good morning. Just want to go back to the property cat market. You know, given the declines that we saw in rates and 1/1 renewals, I think there's some expectation of further declines in 4/1, 6/1. How are you thinking of expected returns and rate adequacy in that book in 2026? And how are you looking to deploy capacity into that market? What areas would be more or less interesting compared to 2025?
Our next question comes from Yaron Kenard with MISUA. Please go ahead, your line is open.
Thank you. Uh, good.
just want to go back to the
Strong level of adequacy access to all of the business in a lot of options to construct the portfolio. We do see growing demand on the U S side. There was some at one one and we expect more in Q2, so that will present opportunities, but our approach is to select the best opportunities make sure we get the best signings and construct an attractive portfolio.
Okay.
And then my second question.
On recent calls we've heard brokers talk a lot about the large opportunity for data centers.
Given the decline so that we saw in rates and uh, 1. 1 1 is I think there's some expectation of further declines in, uh, 4161. Um, how are you thinking of expected returns and rate adequacy in that book in 2026? Um and and how are you looking to deploy capacity into that market? Uh what what areas would be more or less interesting compared to 25.
David Marra: Yeah. Hi, this is David. I can take that one. I think, you know, first of all, like we said, we did see pressure, but we were starting from a very good spot, so rate adequacy is still strong. I can break that down a little bit more for you, and the low teens that we saw in the overall cat book, that is a bit separate. The US cat book that renews in Q1 at 1/1 is about 1/3 of the US cat book. That was down about 10%, whereas the international and global's portfolio was down about 15%. So part of what we're faced with is not all risks are the same. You know, both of those risks are attractive in their own ways. But rate rating level is still high.
David Marra: Yeah. Hi, this is David. I can take that one. I think, you know, first of all, like we said, we did see pressure, but we were starting from a very good spot, so rate adequacy is still strong. I can break that down a little bit more for you, and the low teens that we saw in the overall cat book, that is a bit separate. The US cat book that renews in Q1 at 1/1 is about 1/3 of the US cat book. That was down about 10%, whereas the international and global's portfolio was down about 15%. So part of what we're faced with is not all risks are the same. You know, both of those risks are attractive in their own ways. But rate rating level is still high.
In the insurance market and I would imagine that while a lot of that.
Would fall into the reinsurance market.
The underwriters and an attempt to be prudent with looking at manage their exposures.
I guess I'd be curious to hear how you as a reinsurer.
Most of the traditional balance sheet and <unk> JV business, how you think about that opportunity and how you would go about managing that risk.
Yeah, hi. This is David. I can, uh, take that one. I think, you know, first of all, like we said, we did see pressure, but we were starting from a very good spot. So, right, adequacy is still strong. I can break that down a little bit more for you. And the low teens that we saw in the overall cap book, that is a bit separate. The US cap book that renews in Q1 at 11 is about a third of the US cap book. That was down about 10%.
Yeah, David again, I'll continue to take that so first of all the data centers are something that we currently reinsure you whats under new opportunity is the fact that there are more mega projects, which do require.
David Marra: We also see really strong terms and conditions consistent with the last three years. So it's not as much about how will we react to rate decreases. We have a strong level of adequacy, access to all the business, and we have a lot of options to construct the portfolio. We do see growing demand on the US side, that we saw on 1/1, and we expect more in Q2, so that will present opportunities. But our approach is to select the best opportunities, make sure we get the best signings, and construct an attractive portfolio.
David Marra: We also see really strong terms and conditions consistent with the last three years. So it's not as much about how will we react to rate decreases. We have a strong level of adequacy, access to all the business, and we have a lot of options to construct the portfolio. We do see growing demand on the US side, that we saw on 1/1, and we expect more in Q2, so that will present opportunities. But our approach is to select the best opportunities, make sure we get the best signings, and construct an attractive portfolio.
Reinsurance capacity at third party capacity. So it is early stages of a positive opportunity and we're working with our clients and brokers to understand the risk as well as we can in how we deploy capacity. Our focus first is to get the underwriting and pricing right and get the terms and conditions and coverage and also get the aggregation right. So we're well along the path there and we.
Whereas, the international and Global portfolio was down about 15%. So, so part of what we're faced with is not, not all risks are the same, you know, both of those risks are attractive in their own ways. Um, but, but rating level is still high. We also see really strong terms and conditions consistent with the last 3 years. So it's not as much about, um, how we react to rate decreases, we have a strong level of adequacy access to all the business. We need a lot of options to construct the portfolio. You know, we do see growing Demand on the US side, there was Summit 1 1 and we expect more in Q2 so that will present opportunities. But our approach is to select the best opportunities. Make sure we get the best signings and construct an attractive portfolio.
Yaron Kinar: Okay. And then my second question, you know, on recent calls, we've heard brokers talk a lot about the large opportunity for data centers in the insurance market. And I'd imagine that while a lot of that would fall into the reinsurance market, you know, as underwriters in an attempt to be prudent would look to manage their exposures. I guess I'd be curious to hear how you as a reinsurer that has both a traditional balance sheet and a large JV business how you think about that opportunity and how you'd go about managing that risk?
Yaron Kinar: Okay. And then my second question, you know, on recent calls, we've heard brokers talk a lot about the large opportunity for data centers in the insurance market. And I'd imagine that while a lot of that would fall into the reinsurance market, you know, as underwriters in an attempt to be prudent would look to manage their exposures. I guess I'd be curious to hear how you as a reinsurer that has both a traditional balance sheet and a large JV business how you think about that opportunity and how you'd go about managing that risk?
It will continue to be an opportunity as it grows.
The market.
Thank you.
Yeah.
Thank you.
We will move next with Meyer Shields with K B W. Please go ahead your line is open.
Thanks, so much so I'm inferring from the high 90 as expected combined ratio in casualty and specialty that youre not.
Okay. Um, and then my my second question. Um, you know, on on recent calls, we've heard Brokers, uh, talked a lot about the large opportunity for, uh, data centers, um, in the insurance market. And, and I'd imagine that while a lot of that, um, would would fall into the reinsurance market. Um, you know, as Underwriters, uh, in an attempt to be prudent would look to
Anticipating much of a change in reserve.
Philosophy for casualty lines and I'm wondering if you look at the older accident years that are close to.
Being settled it was hoping you could talk about how reserves for those accident years have played out where conservative reserving is just less relevant.
Manage their exposures. Um, I, I, I, I, I guess I'd be curious to hear how you, as a reinsurer that has both a traditional balance sheet and a large, uh, JV business. Uh, how you think about that opportunity and how you'd go about managing that risk?
David Marra: Yeah, this is David again. I'll continue to take that. So first of all, data centers are something that we currently reinsure. What's the new opportunity is the fact that there are more mega projects, which do require reinsurance capacity or third-party capacity. So it is early stages of a positive opportunity, and we're working with our clients and brokers to understand the risk as well as we can and how we deploy capacity. Our focus first is to get the underwriting and pricing right, and get, you know, the terms and conditions and coverage, and also get the aggregation right. So we're well along the path there, and we think it'll continue to be an opportunity as it grows, as a market.
David Marra: Yeah, this is David again. I'll continue to take that. So first of all, data centers are something that we currently reinsure. What's the new opportunity is the fact that there are more mega projects, which do require reinsurance capacity or third-party capacity. So it is early stages of a positive opportunity, and we're working with our clients and brokers to understand the risk as well as we can and how we deploy capacity. Our focus first is to get the underwriting and pricing right, and get, you know, the terms and conditions and coverage, and also get the aggregation right. So we're well along the path there, and we think it'll continue to be an opportunity as it grows, as a market.
Yes, I think.
Overall, I think we're trying to be as transparent as we can on kind of the casualty specialty segment and specifically GL. The book the casualty specialty looks great. We've had favorable development last year, but the overall reserve pool for casualty specialty I think of it as you know.
Old story of a duck, it's relatively stable on top but theres a lot of pieces moving around down below moving by year and it's moving by line of business.
Yeah, as David again, I'll continue to take that. So first of all data centers are something that we currently reinsure. What's the new opportunity is the fact that there are more Mega projects, which do require reinsurance capacity or third party capacity. So it is early stages of a positive opportunity. And we're working with our clients and Brokers to understand the risk, as well as we can, and how we deploy capacity our Focus first is to get the underwriting and pricing, right? And get, you know, the terms and conditions and coverage and also get the aggregation, right? So we're well, along the path there. Um, and we think it'll continue to be an opportunity as it grows. Um,
Yaron Kinar: Thank you.
Yaron Kinar: Thank you.
And we continue to be.
thank you.
Extremely cautious in thinking about how to reflect in particular NGL the increased <unk>.
Operator: Thank you. We will move next with Meyer Shields with KBW. Please go ahead. Your line is open.
Operator: Thank you. We will move next with Meyer Shields with KBW. Please go ahead. Your line is open.
Thank you.
Pricing thats coming through where our pricing actuaries are putting it through on the pricing, but from a reserving perspective, we're being cautious and continuing to now.
Meyer Shields: Thanks so much. So I'm inferring from the high 90s expected combined ratio in Casualty and Specialty, that you're not anticipating much of a change in reserve philosophy for casualty lines. I'm wondering, if you look at the older accident years that are close to being settled, I was hoping you could talk about how reserves for those accident years have played out, where conservative reserving is just less relevant.
Meyer Shields: Thanks so much. So I'm inferring from the high 90s expected combined ratio in Casualty and Specialty, that you're not anticipating much of a change in reserve philosophy for casualty lines. I'm wondering, if you look at the older accident years that are close to being settled, I was hoping you could talk about how reserves for those accident years have played out, where conservative reserving is just less relevant.
To reflect that at this point.
<unk>.
We will move next with mayor Shields with KBW. Please go ahead, your line is open. Um, thanks so much so um, inferring from the high 90s expected combined ratio in casualty and Specialty that you're not
So from the overall portfolio.
Um, anticipating much of a change in reserve.
It is behaving well.
With regard to the years.
Most of the years that are older seem to be settled settling down.
Uh, philosophy for casualty lines, and I'm wondering if you look at the older, the years that are close to—
And much of those older years still have the protections with regard to the to the.
Being settled is helping you to talk about how reserves for those accident years have played out, where conservative reserving is just less relevant.
Kevin O'Donnell: Yeah, I think, you know, overall, I think we're trying to be as transparent as we can on, you know, kind of the casualty specialty segment and, specifically GL. The book, the casualty specialty looks great. We've had favorable development last year, but, you know, the overall reserve pool for casualty specialty, I think of it as, you know, the old story of a duck. It's relatively stable on top, but there's a lot of pieces moving around down below. It's moving by year, and it's moving by line of business. And we continue to be extremely cautious in thinking about how to reflect, and particularly in GL, the increased pricing that's coming through, where pricing actuaries are putting it through on the pricing.
Kevin O'Donnell: Yeah, I think, you know, overall, I think we're trying to be as transparent as we can on, you know, kind of the casualty specialty segment and, specifically GL. The book, the casualty specialty looks great. We've had favorable development last year, but, you know, the overall reserve pool for casualty specialty, I think of it as, you know, the old story of a duck. It's relatively stable on top, but there's a lot of pieces moving around down below. It's moving by year, and it's moving by line of business. And we continue to be extremely cautious in thinking about how to reflect, and particularly in GL, the increased pricing that's coming through, where pricing actuaries are putting it through on the pricing.
With protections that were part of the acquisitions of both Validus and.
Platinum so there are less relevant for us than they are for some others.
Okay.
Okay that makes perfect sense.
Slightly different direction, one of the I guess chatter points for the one one renewals was the increased inclusion of riot in civil commotion coverage I was hoping you could talk about whether your exposure to that specific risk is materially different than in 2025.
A lot of pieces moving around down below. It's moving by year, and it's moving by line of business. Um,
Yes, Hi, Mara this is David there is no no real change in our exposure there.
It's apparel, which was cut.
Kevin O'Donnell: But from a reserving perspective, we're being cautious and continuing to not reflect that at this point. The, you know, so from the overall portfolio, it's behaving well. With regard to the years, the... Most of the years that are older seem to be settled, settling down. And much of those older years still have the protections with regard to the, to the, the protections that were part of the acquisitions of both Validus and Platinum. So they're less relevant for us than they are for some others.
Kevin O'Donnell: But from a reserving perspective, we're being cautious and continuing to not reflect that at this point. The, you know, so from the overall portfolio, it's behaving well. With regard to the years, the... Most of the years that are older seem to be settled, settling down. And much of those older years still have the protections with regard to the, to the, the protections that were part of the acquisitions of both Validus and Platinum. So they're less relevant for us than they are for some others.
Covered in a very specific way with tight terms and conditions. So while the risk is in there at the levels. We attach at the Retentions keeps us insulated from a lot of Attritional loss and there's really no change into 2026.
And we continue to be, uh, extremely cautious in thinking about how to reflect, particularly in GLD, increased, uh, pricing that's coming through. We're pricing—actuaries are putting it through on the pricing—but from a reserving perspective, we're being cautious and continuing to, uh, not reflect that at this point. The, um,
Alright fantastic. Thank you so much.
Thank you.
We will move next with Mike Zaremski with BMO. Please go ahead your line.
You know? So, so from from the overall portfolio behaving, it's behaving. Well, um, with regard to the years, the most of the years that are older seem to be settled settling down,
Thanks.
Bob back to the.
The tax credits and all of the tax legislation.
um, and much of those older years, still have the protections with regard to the, to the, um,
I think clear about 2006, the expense ratio net of credits I guess, we will just have to see how the.
The protections that were part of the Acquisitions of both validus and platinum, so they're less relevant for us than they are for some others.
Meyer Shields: Okay, that makes perfect sense. If I can go in a slightly different direction. One of the, I guess, chatter points for the 1-1 renewals was the increased inclusion of riot and civil commotion coverage. I was hoping you could talk about whether your exposure to that specific risk is materially different than in 2025.
Meyer Shields: Okay, that makes perfect sense. If I can go in a slightly different direction. One of the, I guess, chatter points for the 1-1 renewals was the increased inclusion of riot and civil commotion coverage. I was hoping you could talk about whether your exposure to that specific risk is materially different than in 2025.
Tax credits go up in 2007, so I guess, we will have to decide if we want to also kind of re spend some of that.
Credits as an investment.
Unless you want to comment and the DTA is is there a clarity on.
On on how thats going to play out or taking a write down I know it was a benefit this quarter. Thanks.
David Marra: Yeah, hi, Meyer, this is David. There's no real change in our exposure there. It's apparel which is covered in a very specific way with tight terms and conditions. So while the risk is in there at the levels we attach at, you know, the retentions keep us insulated from a lot of attritional loss, and there's really no change into 2026.
David Marra: Yeah, hi, Meyer, this is David. There's no real change in our exposure there. It's apparel which is covered in a very specific way with tight terms and conditions. So while the risk is in there at the levels we attach at, you know, the retentions keep us insulated from a lot of attritional loss, and there's really no change into 2026.
Okay, that makes perfect sense. Um, and if I go in a slightly different direction, one of the, I guess, chatter points for the 1.1 renewals was the increased inclusion of riot and civil commotion coverage, and I was hoping you could talk about whether your exposure to that specific risk is materially different than in 2025.
That's a good question I'll tackle them both on the DTA I'll start with that one thats a legislative legislation hereby Bermuda. So it's a matter of law.
We use it this year to defer our tax liability and we fully intend to use it in 2026 to defer the liability the only way that changes is just the law changes and I don't control that havent been any conversation about it. So we're still moving forward on it with.
Meyer Shields: All right. Fantastic. Thank you so much.
Meyer Shields: All right. Fantastic. Thank you so much.
Hi my name is. This is David? Um there's no no real change in our exposure there. It's apparel which uh was is a covered in a very um specific way with tight terms and conditions. So while the risk is in there at the levels we attach at you know there are tensions, keep us insulated from a lot of attritional loss and there's really no change in the 2026.
All right. Fantastic, thank you so much.
Operator: Thank you. We will move next with Mike Zaremski with BMO. Please go ahead. Your line is open.
Operator: Thank you. We will move next with Mike Zaremski with BMO. Please go ahead. Your line is open.
Thank you.
With respect to the.
The credit kind of led in my prepared comments that it was 60 basis points on the annualized operating expense. It goes up to 75% next quarter. So it means it goes up to around 90, all things constant as my economics teacher used to say and then it goes to the full impact in 2027, we don't intend to spend that specifically is a part that comes in on the back of our spend.
We will move next with Mike Sensky with BMO. Please go ahead. Your line is open.
Michael Zaremski: Hey, thanks. Bob, back to the tax credits and all the tax legislation. I think clear about 2026 the expense ratio net of the credits. I guess we'll just have to see how the tax credits go up in 2027. So I guess we'll have to decide if we want to also kind of respend some of the credits as an investment, unless you want to comment. And the DTA, is there clarity on how that's going to play out or, you know, write down? I know it was a benefit this quarter. Thanks.
Michael Zaremski: Hey, thanks. Bob, back to the tax credits and all the tax legislation. I think clear about 2026 the expense ratio net of the credits. I guess we'll just have to see how the tax credits go up in 2027. So I guess we'll have to decide if we want to also kind of respend some of the credits as an investment, unless you want to comment. And the DTA, is there clarity on how that's going to play out or, you know, write down? I know it was a benefit this quarter. Thanks.
It does reduce our net spend but I stick by way of what I was talking about with the lease was the we're investing in our infrastructure technology to be able to operate at scale.
Hey, thanks. Um, Bob, um, back to, um, the tax credits and all the, uh, tax legislation. Um, I think clearer about 26, uh, the expense ratio net of the credits. I guess we'll just have to see how—
Okay great.
Maybe pivoting back to the <unk>.
Casualty specialty segment.
the tax credits go up in 27 so I guess we'll have to decide if we want to also kind of resend some of the that uh the credits as an investment um uh unless you want to comment and uh the DTA is, is there Clarity on
Specifically on casualty I know, you've given us some good commentary so far but.
Kevin O'Donnell: That's a good question. I'll, I'll tackle them both. On the DTA, I'll start with that one. That's a legislated- a legislation here by Bermuda, so it's a matter of law. We used it this year to defer our tax liability, and we fully intend to use it in 2026 to defer the liability. The only way that changes is if the law changes, and I don't control that. Haven't been any conversation about it, so we're still moving forward on it. With respect to the credit, I kind of led in my prepared comments that it was 60 basis points on the annualized operating expense. It goes up to 75% next quarter, so it means it goes up to around 90, all things constant, as my economics teacher used to say.
Kevin O'Donnell: That's a good question. I'll, I'll tackle them both. On the DTA, I'll start with that one. That's a legislated- a legislation here by Bermuda, so it's a matter of law. We used it this year to defer our tax liability, and we fully intend to use it in 2026 to defer the liability. The only way that changes is if the law changes, and I don't control that. Haven't been any conversation about it, so we're still moving forward on it.
On how that's going to play out, or is there going to be a write-down? I know it was a benefit this quarter. Thanks.
If we let's say if we use the marsh price engaged excess casualty rates.
Which Bermuda writes a lot of youre seeing pricing kind of accelerated up into the close to 20% range. I know Randy is taking you guys have taken a lot of positive reserving actions.
Putting conservatism, but.
Kevin O'Donnell: With respect to the credit, I kind of led in my prepared comments that it was 60 basis points on the annualized operating expense. It goes up to 75% next quarter, so it means it goes up to around 90, all things constant, as my economics teacher used to say and then it goes to the full impact in 2027. We don't intend to spend that specifically. As a part that comes in on the back of our spend, it does reduce our net spend, but I stick by what, what I was talking about with Elyse was the, you know, we're investing in our infrastructure technology to be able to operate at scale.
Curious is there something brewing for the industry that.
And causing rates to accelerate so much in excess casualty.
Hey, this is David.
You are right to point out that the excess casualty the high layers that are written by the Bermuda insurance market some of which are our clients. Although we service global casualty portfolio that is accelerating more than the lower layers and that's just.
Robert Qutub: ... and then it goes to the full impact in 2027. We don't intend to spend that specifically. As a part that comes in on the back of our spend, it does reduce our net spend, but I stick by what, what I was talking about with Elyse was the, you know, we're investing in our infrastructure technology to be able to operate at scale.
The effect of what the market has been doing for the last 18 months or so where casualty rates for all excess casualty has accelerated as a response to accelerating loss trend at the higher layers.
That was a good question. I'll I'll tackle them both the DTA. I'll start with that 1. That's a legislative legislation here by Bermuda. So it's a matter of law. We use it this year to defer our tax liability and we fully intend to use it in 2026 to defer the liability. The only way that changes is just the Law changes and I don't control that I haven't been any conversation about it. So we're still moving forward on it, with respect to the um the credit I kind of LED in my prepared comments that it was 60 basis points on the annualized. Operating expense. It goes up to 75% next quarter. So it means it goes up to around 90. All things constant as my economics teacher used to say, and then it goes to the full impact of 2027. We don't intend to spend that specifically, as a part that comes in, on the back of our spend, it does reduce our net spend. But I stick by, what, what I was talking about with the lease was the, you know, we're investing in our infrastructure technology to be able to operate at scale.
Michael Zaremski: Okay, great. And maybe pivoting back to the casualty specialty segment and specifically on casualty. I know you've, you've given us some good commentary so far, but if we, you know, let's say if we use the Marsh pricing gauge, you know, excess casualty rates, which Bermuda writes a lot of, you're seeing pricing kind of accelerate up into the close to 20% range. I know Ren is taking—you, you guys have taken a lot of, you know, positive reserving actions to put in conservatism. But curious, is there something brewing for the industry that is causing rates to accelerate so much in excess casualty? Thanks.
Michael Zaremski: Okay, great. And maybe pivoting back to the casualty specialty segment and specifically on casualty. I know you've, you've given us some good commentary so far, but if we, you know, let's say if we use the Marsh pricing gauge, you know, excess casualty rates, which Bermuda writes a lot of, you're seeing pricing kind of accelerate up into the close to 20% range. I know Ren is taking—you, you guys have taken a lot of, you know, positive reserving actions to put in conservatism. But curious, is there something brewing for the industry that is causing rates to accelerate so much in excess casualty? Thanks.
Okay, great. And, um,
The market is taking more rate than at the lower in the mid layers.
maybe pivoting back to the
But that's what's going on there theres nothing unique about those layers. What we're seeing overall is it's not just the rate acceleration, but it's also the investment in the claims handling that helps all open claims not just the new underwriting years, so really encouraged by the signs, but it's going to take time for that to come through the numbers.
Thanks.
Casualty specialty segments and I, um, specifically on casualty and I, you, you giving us some good commentary so far. But, um, um, if we, you know, let's say if we use, uh, the marsh pricing gauge, you know, excess casualty rates, um, which is for me to write a lot of, um, you're seeing pricing kind of accelerate up into the close to 20% range. Uh, I know Ren has taking you, you've got to take a lot of
Thank you.
Our next question comes from Ryan Tunis with Cantor Fitzgerald. Please go ahead. Your line is open.
Hey, Thanks, good afternoon.
First question.
Just looking at the trajectory and fee income in particular management fee income.
David Marra: Hey, this is David. So, you're right to point out that the excess casualty, the high layers that are written by the Bermuda insurance market, some of which are our clients, although we service the whole casualty portfolio, that is accelerating more than the lower layers. And, that's just the effect of what the market's been doing for the last eighteen months or so, where casualty rates for all excess casualty has accelerated as a response to accelerating loss trend. At the higher layers, it's the market is taking more rate than at the lower and the mid layers. But that's what's going on there. There's nothing unique about those layers. What we're seeing overall is it's not just the rate acceleration, but it's also the investment in the claims handling.
David Marra: Hey, this is David. So, you're right to point out that the excess casualty, the high layers that are written by the Bermuda insurance market, some of which are our clients, although we service the whole casualty portfolio, that is accelerating more than the lower layers. And, that's just the effect of what the market's been doing for the last eighteen months or so, where casualty rates for all excess casualty has accelerated as a response to accelerating loss trend. At the higher layers, it's the market is taking more rate than at the lower and the mid layers. But that's what's going on there. There's nothing unique about those layers. What we're seeing overall is it's not just the rate acceleration, but it's also the investment in the claims handling.
You know, positive reserving actions to to, to put in conservatism. But uh, Curious Is There Something Brewing for the industry that, um, is causing rates to accelerate so much and in excess casualty, thanks.
I would think that that would move with.
The growth in the partner capital, but.
That was down in 2025, and it sounds like Bobs guidance was.
So that'd be kind of be flat in 2006 can you just kind of walk us through.
I guess why were not seeing growth on that line.
Brian specifically my guidance was for the first quarter and it was at 59 this quarter based on what we have right yes.
So that was down from the fourth quarter.
It's around this and there was some a lot of noise in 2025, but the guidance. What I was trying to give you was $50 million in the first quarter and you're right. If we grow the assets significantly the fees will follow performance fees are different measure based on the volatility that can happen in the earning stream in each of the JV.
David Marra: You know, that helps all open claims, not just the new underwriting years. So we're really encouraged by the signs, but it's going to take time for that to, you know, come through the numbers.
David Marra: You know, that helps all open claims, not just the new underwriting years. So we're really encouraged by the signs, but it's going to take time for that to, you know, come through the numbers.
Unique about those layers. What we're seeing overall is it's not just the rate acceleration, but it's also the investment in the claims handling, you know? That helps all open claims, not just the new underwriting years. So, really encouraged by the signs, but it's going to take time for that to, you know, come through the numbers.
Michael Zaremski: Thanks.
Michael Zaremski: Thanks.
If it is helpful.
Thanks.
Joint ventures are all.
Operator: Thank you. Our next question comes from Ryan Tunis with Cantor Fitzgerald. Please go ahead. Your line is open.
Operator: Thank you. Our next question comes from Ryan Tunis with Cantor Fitzgerald. Please go ahead. Your line is open.
Thank you.
None of them are smaller going into 'twenty, six and where they werent and 25, and we haven't changed the fee structure on our.
Ryan Tunis: Hey, thanks. Good afternoon. First question, just looking at the trajectory of fee income, in particular management fee income, I like, I would think that that would move with, you know, the growth in the partner capital, but, you know, that was down in 2025, and it sounded like Bob's guidance was for that to kind of be flat in 2026. Could you just kind of walk us through, I guess, why we're not seeing growth on that line?
Ryan Tunis: Hey, thanks. Good afternoon. First question, just looking at the trajectory of fee income, in particular management fee income, I like, I would think that that would move with, you know, the growth in the partner capital, but, you know, that was down in 2025, and it sounded like Bob's guidance was for that to kind of be flat in 2026. Could you just kind of walk us through, I guess, why we're not seeing growth on that line?
Our next question comes from Ryan Tunis with Counterfeit Gerald. Please go ahead, your line is open.
On any of the.
Any of the vehicles that we're managing so just as a starting point there'll be ups and downs as new capital comes on board.
Okay, thanks, good afternoon. Um, first question
Just looking at the trajectory of fee income, in particular management fee income.
Changes in the existing capital, but it's relatively stable from last year with this year.
Uh, I—like, I would think that that would move with, um,
Hopefully.
And a follow up probably for David and Bob.
So any other property side.
Curious.
You know, the growth in the partner capital, but, you know, that was down in 2025, and it sounded like Bob's guidance was that to kind of be flat in '26. Could you just kind of walk us through?
One one what youre seeing from a demand perspective, clearly a lot of students.
Uh, I guess that's why we're not seeing growth on that line.
Robert Qutub: Ryan, specifically, my guidance was Q1, and it was at $50 million-
Robert Qutub: Ryan, specifically, my guidance was Q1, and it was at $50 million-
Really strong accident years in 'twenty four 'twenty five.
Ryan Tunis: First quarter.
Ryan Tunis: First quarter.
Robert Qutub: based on what we have.
Robert Qutub: based on what we have.
Ryan Tunis: Right.
Ryan Tunis: Right.
Robert Qutub: Yeah. So I wouldn't-
Robert Qutub: Yeah. So I wouldn't-
Yes.
Uh, Brian specifically, my guidance was the first quarter and it was at 50 million based on what we thought, right? Yeah.
Ryan Tunis: But that's down from the Q4 ending.
Ryan Tunis: But that's down from the Q4 ending.
Are you seeing them buy down or what are the trends there and then I guess separately.
Robert Qutub: It's around the same. There was some... A lot of noise in 2025, but the guidance what I was trying to give you was it's $50 million in Q1. And you're right, if, if we grow the assets significantly, the fees will follow. Performance fees are a different measure based on the volatility that can happen in the earning stream in, in each of the JVs.
Robert Qutub: It's around the same. There was some... A lot of noise in 2025, but the guidance what I was trying to give you was it's $50 million in Q1. And you're right, if, if we grow the assets significantly, the fees will follow. Performance fees are a different measure based on the volatility that can happen in the earning stream in, in each of the JVs.
So, what—what? That's down from the fourth quarter.
Given the competitive environment in property I was a little bit surprised that the other property.
Our margin guidance is still for mid fifties.
I guess just walk me through your confidence in that.
Kevin O'Donnell: If it's helpful, the joint ventures are all none of them are smaller going into 2026 than where they were in 2025, and we haven't changed the fee structure on our on any of the vehicles that we're managing. So, you know, just as a starting point, there'll be ups and downs as new capital comes on board or there'll be changes in the existing capital, but it's relatively stable from last year to this year.
Kevin O'Donnell: If it's helpful, the joint ventures are all none of them are smaller going into 2026 than where they were in 2025, and we haven't changed the fee structure on our on any of the vehicles that we're managing. So, you know, just as a starting point, there'll be ups and downs as new capital comes on board or there'll be changes in the existing capital, but it's relatively stable from last year to this year.
Hey, Ryan This is David I'll start with your question on retention in terms of conditions. So it terms and conditions across other property and cat remains strong and a big piece of that is retention. So the other property cat exposed.
It's around the same. There was some—a lot of noise in 2025—but the numbers that I was trying to give you was, it's $50 million in the first quarter, and you're right. If we grow the asset significantly, the fees will follow. Performance fees are a different measure, based on the volatility that can happen in the earnings streams in each of the JVs.
If it's helpful, the joint ventures are all—um.
Bill our structures are risks have had a step change after 2022 those remain at strong levels. If there's competition on price and we're able to move around that portfolio to make sure that we're getting the best return on the rest of that we put out of a really comfortable with the way the terms and conditions have held strong there. So on the cap side also client selected <unk>.
None of them are smaller going into '26 than where they were in '25. And we haven't changed the fee structure on our, um,
Ryan Tunis: Hopeful. And a follow-up, probably for David and Bob. But, I saw on the other property side, curious, you know, at 1:1, you know, what you're seeing from a demand perspective. Clearly, a lot of cedants had, have had really strong accident years in 2024 and 2025. Are you seeing them buy down or, you know, what are the trends there? And then I guess separately, just given the, competitive environment in property, I was a little bit surprised that the other property, the margin guidance is still for mid-50s. I guess, just walk me through, your confidence in that.
Ryan Tunis: Hopeful. And a follow-up, probably for David and Bob. But, I saw on the other property side, curious, you know, at 1:1, you know, what you're seeing from a demand perspective. Clearly, a lot of cedants had, have had really strong accident years in 2024 and 2025. Are you seeing them buy down or, you know, what are the trends there? And then I guess separately, just given the, competitive environment in property, I was a little bit surprised that the other property, the margin guidance is still for mid-50s. I guess, just walk me through, your confidence in that.
On any of the, uh, on any of the vehicles that we're managing. So, you know, just as a starting point, there will be ups and downs as new capital comes on board or if there are changes in the existing capital, but it's relatively stable from last year to this year.
Generally not to buy down the retentions as they save money on their cat towers.
They didn't spend it on.
hopeful um going to follow up, probably for David and Bob but um I was on the other property side
Cover below.
Brian on the mid Fifty's that was our guidance for the other property book and that's kind of a mix issue that you have between the attritional versus the cat exposed non cat exposed.
Serious. Uh, you know, at 1:11, you know what you're seeing for the demand perspective. Clearly, a lot of students had have had really strong anxiety years in 24/25,
um,
So we view that as a strong current accident your loss ratio is a little elevated this year, obviously because of the events that came through but that's what we're hearing is the mid fifties.
are you seeing them by down or you know at what are the trends there and then I guess separately
Given the, uh, competitive environment in property, I was a little bit surprised that the other property, uh,
Thank you.
The margin guidance is still in the mid-50s.
Thank you.
I guess, just walk me through, uh, your confidence in that.
David Marra: Hey, Ryan, this is David. I'll start with your question on retentions in terms of conditions. So the terms and conditions across other property and cat remain strong, and a big piece of that is retention. So the other property, cat exposed, structures or risks, have had a step change after 2022. Those remain at strong levels. There's competition on price, and we're able to move around that portfolio to make sure that we're getting the best return on the risk that we put out. But we're really comfortable with the way the terms and conditions have held strong there. And on the cat side, also, clients elected generally not to buy down their retentions as they saved money on their cat towers. They didn't spend it on cover below.
David Marra: Hey, Ryan, this is David. I'll start with your question on retentions in terms of conditions. So the terms and conditions across other property and cat remain strong, and a big piece of that is retention. So the other property, cat exposed, structures or risks, have had a step change after 2022. Those remain at strong levels. There's competition on price, and we're able to move around that portfolio to make sure that we're getting the best return on the risk that we put out. But we're really comfortable with the way the terms and conditions have held strong there. And on the cat side, also, clients elected generally not to buy down their retentions as they saved money on their cat towers. They didn't spend it on cover below.
We'll move next to Matthew <unk> with Citi. Please go ahead. Your line is open.
Hi.
Good morning afternoon.
I guess just a couple one Kevin following up on your comment on casually with technical ratios eventually decreasing I'm curious if you think that will have.
More to do with.
A change in loss trend.
Turning now to be better than you think or rates going up.
Yes, I think.
Right now our pricing actuaries are reflecting the benefit of the price change so.
Hey Ryan, this is David. I'll start with your question on retentions in terms of conditions. So your terms and conditions across other property and Cat remains strong, and at a big piece of that is retention. So the other property cat exposed, uh, uh, structures or risks have had a step change after 2022. Those remain strong levels, you know, there's competition on price and we're able to move around that portfolio to make sure that we're getting the best return on the risk that that we, we put out, but we're really comfortable with the way the terms and conditions have held strong there on the cap. Side also clients elected, generally not to buy down their attentions as they save money on their cat towers. They uh they didn't spend it on.
If all works out well I would hope our reserving will.
Cover below.
Ratio has trended to the pricing ratios. So I would say, it's more a reflection of the benefit of price, having persistence and us increasing our confidence in that I would love to say that I see.
Robert Qutub: Ryan, on the mid-50s, that was our guidance for the other property book, and that's kind of a mixed issue that you have between the attritional versus the cat-exposed, non-cat-exposed. But we view that as a strong current accident year loss ratio. It's a little elevated this year, obviously, because of the events that came through, but that's what we're steering is the mid-50s.
Robert Qutub: Ryan, on the mid-50s, that was our guidance for the other property book, and that's kind of a mixed issue that you have between the attritional versus the cat-exposed, non-cat-exposed. But we view that as a strong current accident year loss ratio. It's a little elevated this year, obviously, because of the events that came through, but that's what we're steering is the mid-50s.
Ryan, on the mid-50s—that was our guidance for the other property book, and that's kind of a mix issue that you have between the nutritional versus the cat-exposed, non-cat-exposed.
The trend decreasing over time.
We will certainly monitor that any change in trend where will reflect over time, whether it's going up or going down, but I would say more likely price.
We do that as a strong current accent to your loss ratios—a little elevated this year because of the events that came through—but that's what we're seeing, is the mid-50s.
Ryan Tunis: Thank you.
Ryan Tunis: Thank you.
Thank you.
Operator: Thank you. We'll move next with Matthew Heimerman with Citi. Please go ahead. Your line is open.
Operator: Thank you. We'll move next with Matthew Heimermann with Citi. Please go ahead. Your line is open.
Thank you.
Thank you for that.
Was just curious I mean happy to.
Matthew Heimerman: Good morning slash afternoon. I guess just a couple... One, Kevin, following up on your comment on casualty with technical ratios eventually decreasing, I'm curious if you think that will have more to do with a change in loss trend turning out to be better than you think or rates going up?
We're almost next with Matthew Heimerman with Citi. Please go ahead, your line is open.
Listen if there are more details you want to share on some of the investments youre, making are around the platform and an end.
Matthew Heimermann: Good morning slash afternoon. I guess just a couple... One, Kevin, following up on your comment on casualty with technical ratios eventually decreasing, I'm curious if you think that will have more to do with a change in loss trend turning out to be better than you think or rates going up?
uh,
good morning, Miss afternoon. Um,
Embedding that in an underwriting systems.
I also I'm curious whether or not.
Talent.
The limitations in terms of the speed or with.
With G can execute your.
I guess just a couple. One, Kevin, following up on your comment on casualty with technical ratios eventually decreasing. I'm curious if you think that will have more to do with a change in loss trend turning out to be better than you think, or rates going up.
Kevin O'Donnell: Yeah, I think right now, our pricing actuaries are reflecting the benefit of the price change. So if all works out well, I would hope our reserving ratios trend to the pricing ratios. So I would say it's more of a reflection of the benefit of price having persistence and us increasing our confidence in that. I would love to say that I see the trend decreasing over time. I think we'll certainly monitor that. Any change in trend, we will reflect over time, whether it's going up or going down, but I would say more likely price.
Kevin O'Donnell: Yeah, I think right now, our pricing actuaries are reflecting the benefit of the price change. So if all works out well, I would hope our reserving ratios trend to the pricing ratios. So I would say it's more of a reflection of the benefit of price having persistence and us increasing our confidence in that. I would love to say that I see the trend decreasing over time. I think we'll certainly monitor that. Any change in trend, we will reflect over time, whether it's going up or going down, but I would say more likely price.
Technology roadmap.
yeah, I think, um,
Yes.
So with regard to our thinking about how to manage our risk. This isn't the first time, we've used the capital markets to think about hedging risk.
In our underwriting portfolio and our investment portfolio obviously.
Right now, our pricing actuaries are reflecting the the benefit of the price change. So if all works out well, I would hope our reserving will um,
With regard to talent, we have a global platform.
Our investment team is split between New York Bermuda.
In Dublin.
So we've got kind of good coverage there good access to talent and new almost all of the.
Ratios trend to the pricing ratios. So I would say it's more of a reflection of the benefit of price having persistence and us increasing our confidence in that. I would love to say that I see.
The.
Groups that we have within the company are split across multiple platforms. So I don't see any constraint with our ability to access talent and with the technology that we have for collaboration we can easily link teams in any location. So we have access to the best talent I believe anywhere in the world.
Matthew Heimerman: Thank you for that. And I guess I was curious. I mean, happy to listen, if there are more details you want to share on some of the investments you're making around the platform and embedding that in underwriting systems. But I also am curious whether or not, from a talent perspective, being in Bermuda, there's any limitations in terms of the speed or with which you can execute your technology roadmap?
Matthew Heimermann: Thank you for that. And I guess I was curious. I mean, happy to listen, if there are more details you want to share on some of the investments you're making around the platform and embedding that in underwriting systems. But I also am curious whether or not, from a talent perspective, being in Bermuda, there's any limitations in terms of the speed or with which you can execute your technology roadmap?
Uh, over time, whether it's going up or going down, but I would say more likely price.
okay, thank you for that, and I guess,
And just any color on the types of.
Add ons that you're or enhancements, we're making to the underwriting side and I wasn't sure. If you cannot run specifically in core although sorry on their platforms.
Yes, we are.
Enhancing our Rems program, which is.
Kevin O'Donnell: Yeah, so with regard to, you know, our thinking about how to manage our risk, this isn't the first time we've used the capital markets to think about hedging risk in our underwriting portfolio or in our investment portfolio, obviously. With regard to talent, we have a global platform. You know, our investment team is split between New York, Bermuda, and Dublin. So we've got, you know, kind of good coverage there, good access to talent. And almost all of the groups that we have within the company are split across multiple platforms. So I don't see any constraint with our ability to access talent. And with the technology that we have for collaboration, we can easily link teams in any location, so we have access to the best talent, I believe, anywhere in the world.
Kevin O'Donnell: Yeah, so with regard to, you know, our thinking about how to manage our risk, this isn't the first time we've used the capital markets to think about hedging risk in our underwriting portfolio or in our investment portfolio, obviously. With regard to talent, we have a global platform. You know, our investment team is split between New York, Bermuda, and Dublin. So we've got, you know, kind of good coverage there, good access to talent. And almost all of the groups that we have within the company are split across multiple platforms. So I don't see any constraint with our ability to access talent. And with the technology that we have for collaboration, we can easily link teams in any location, so we have access to the best talent, I believe, anywhere in the world.
To listen, uh, if there are more details, you want to share on some of the Investments, you're making around the platform and and and uh embedding that and and underwriting systems. But I, but I also am curious, whether or not from a talent perspective being in Bermuda, there's any limitations in terms of the speed or with what you can execute your your technology roadmap
<unk> underwriting platform.
Sure.
A year year and a half into the actual technology rebuild.
That really is a shift.
And a couple of kind of material ways as we've diversified.
We want to make sure that our system is not as much of a deal system, but more of a client system. So it's easier for us to look at profitability per client and understand how to engage with the client to best bring our capacity to their problems and then secondly.
Yeah. Um, so with regard to, you know, our thinking about how to manage your risk, this isn't the first time we've used the capital markets to think about hedging risk, uh, in our underwriting portfolio or in our investment portfolio. Obviously, uh, with regard to talent, we're—we have a global platform.
Um, you know, our investment team is split between New York, Bermuda, uh, and Dublin.
Updating our architecture so that as.
AI becomes.
More meaningful in either.
Automation or augmentation of our processes, we will have the infrastructure to plug it in more seamlessly than what we currently have so we think these investments put us in a very strong.
Matthew Heimerman: Yeah. And just any call out on the types of add-ons that you're or enhancements you're making to the underwriting side? I wasn't sure if you meant REMS specifically or other-
Matthew Heimermann: Yeah. And just any call out on the types of add-ons that you're or enhancements you're making to the underwriting side? I wasn't sure if you meant REMS specifically or other platforms.
Uh, so we've got, you know, kind of good coverage there, good access to talent, and almost all of the, uh, the, the, uh, groups that we have within the company are split across multiple platforms. So I don't see any constraint with our ability to assess talent, and with the technology that we have for collaboration, we can easily link teams in any location. So we have access to the best talent, I believe, anywhere in the world.
Competitive position to continue to adopt the best technology.
Kevin O'Donnell: Oh, sorry. Yeah.
As it becomes proven.
Matthew Heimerman: -o-other platforms.
Appreciate it thanks.
Kevin O'Donnell: Yeah, we are enhancing our REMS program, which is the underwriting platform. We're probably a year and a half into the actual technology rebuild, and that really is a shift in a couple kind of material ways. You know, as we've diversified, we want to make sure that our system is not as much of a deal system, but more of a client system, so it's easier for us to look at profitability per client and understand how to engage with a client to best bring our capacity to their problems. And then secondly, we're updating our architecture so that as AI becomes more meaningful in either automation or augmentation of our processes, we will have the infrastructure to plug it in much seamlessly than what we currently have.
Kevin O'Donnell: Yeah, we are enhancing our REMS program, which is the underwriting platform. We're probably a year and a half into the actual technology rebuild, and that really is a shift in a couple kind of material ways. You know, as we've diversified, we want to make sure that our system is not as much of a deal system, but more of a client system, so it's easier for us to look at profitability per client and understand how to engage with a client to best bring our capacity to their problems. And then secondly, we're updating our architecture so that as AI becomes more meaningful in either automation or augmentation of our processes, we will have the infrastructure to plug it in much seamlessly than what we currently have.
Thank you.
Yeah. And and just any call out on the types of add-ons that you're or enhancements, you're making to the underwriting. So and I wasn't sure if you met REM specifically or other other platforms. Yeah, we we are um
Our next question comes from Dan and Chris <unk> with Wolfe Research. Please go ahead. Your line is open.
Enhancing our Our Brands program, which is the underwriting platform. Uh, we're
Hi, I was hoping if you could talk about how ceding commissions in your casualty Buck trended during January one renewals.
Yes, absolutely so ceding commissions and casualty, we're pretty flat overall most of the improvements that are coming in the market or on the insurance side with insurance rates going up and insurers investing in claims handling to better be able to fight the plaintiff's bar, but the transfer to reinsurance in our reinsurance supply demand was pretty.
<unk> the best accounts might have gotten the tick up the worst accounts got a tick down, but that's pretty much the case across casualty and professional lines.
Probably a year, a year and a half into the actual technology rebuild. And that really is a shift, um, you know, in a couple kind of material ways. You know, as we've diversified, we want to make sure that our system is not as much of a deal system but more of a client system. So it's easier for us to look at profitability for a client and understand how to engage with a client to best bring our capacity to their problems. And then secondly, we're updating our architecture so that as AI becomes, um,
Got it and then within the casualty and specialty segment you guys have been growing a lot within like the credit lines. So I was wondering what kind of impact you.
That would have on like the.
Kevin O'Donnell: So we think these investments put us in a very strong, competitive position to continue to adopt the best technology, as it becomes proven.
Kevin O'Donnell: So we think these investments put us in a very strong, competitive position to continue to adopt the best technology, as it becomes proven.
Underlying losses, and maybe the expense ratio going forward.
But yes, we did see some good opportunities in credit credits one of the three main pillars of the book, we have casualty specialty and credit.
Matthew Heimerman: Appreciate it. Thanks.
Matthew Heimermann: Appreciate it. Thanks.
More meaningful in either automation or augmentation of our processes. We will have the infrastructure to plug it in much more seamlessly than what we currently have. So we think these investments put us in a very strong competitive position to continue to adopt the best technology as it becomes proven.
Appreciate it. Thanks.
With casualty being split into the general liability and professional liability.
Operator: Thank you. Our next question comes from Dean Criscitiello with Wolfe Research. Please go ahead. Your line is open.
Operator: Thank you. Our next question comes from Dean Criscitiello with Wolfe Research. Please go ahead. Your line is open.
Thank you.
Credit has been a really profitable class the pillars of the credit book are the mortgage business and the standard credit and political risk and then some structured credit business all of those are performing well and what we found in the last quarter in the last year was we found opportunities in the structured credit business and in the mortgage business or both of those are high profit.
Our next question comes from Danny Chrissy, Tallow with wolf research, please go ahead. Your line is open.
Dean Criscitiello: Hi, I was hoping if you could talk about how ceding commissions in your casualty book trended during January 1 renewals?
Dean Criscitiello: Hi, I was hoping if you could talk about how ceding commissions in your casualty book trended during January 1 renewals?
Hi. I was hoping if you could talk about how ceding commissions in your casualty book trended during the January 1 renewal.
David Marra: Yeah, absolutely. So ceding commissions in casualty were pretty flat overall. You know, most of the improvements that are coming in the market are on the insurance side, with insurance rate going up and insurers investing in claims handling to better be able to fight the plaintiffs' bar. But the transfer to reinsurance and the reinsurance supply-demand was pretty stable. The best accounts might have gotten a tick up, the worst accounts got a tick down, but that's pretty much the case across casualty and professional lines.
David Marra: Yeah, absolutely. So ceding commissions in casualty were pretty flat overall. You know, most of the improvements that are coming in the market are on the insurance side, with insurance rate going up and insurers investing in claims handling to better be able to fight the plaintiffs' bar. But the transfer to reinsurance and the reinsurance supply-demand was pretty stable. The best accounts might have gotten a tick up, the worst accounts got a tick down, but that's pretty much the case across casualty and professional lines.
Absolutely. Um,
Margin and.
Good opportunities for us to add to the portfolio.
Okay.
Yes.
Thank you.
We will move next week, Peter Goodson with Evercore. Please go ahead. Your line is open.
So seating commissions in casualty were pretty flat overall. You know, most of the improvements that are coming in the market are on the insurance side, with insurance rates going up and insurers investing in claims handling to better be able to fight the plaintiffs' bar, but the transferred, or reinsurance, and the reinsurance supply-demand was pretty stable. The best accounts might have gotten a tick up, the worst accounts got a tick down, but that's pretty much the case across casualty and professional lines.
Dean Criscitiello: Got it. And then within the Casualty and Specialty segment, you guys have been growing a lot within, like, the credit line. So I was wondering what kind of impact that would have on, like, the, you know, underlying losses and maybe the expense ratio going forward?
Dean Criscitiello: Got it. And then within the Casualty and Specialty segment, you guys have been growing a lot within, like, the credit line. So I was wondering what kind of impact that would have on, like, the, you know, underlying losses and maybe the expense ratio going forward?
Hey, Thanks for squeezing me in.
In the prepared remarks, you noted prioritizing casualty seasons, who focus on claims handling practices.
I think going back to 2020 for you you had made a couple of comments around making a larger FERC torque more closely with casualty seasons to sort of ramp up information flow of renewals.
Got it. And then within the casualty and Specialty segment, you guys have been growing a lot within, like, the credit line. So I was wondering what kind of impact you, uh, that would have on like the, you know, underlying losses and maybe the expense ratio going forward.
David Marra: Yes, we did see some good opportunities in credit. You know, credit's one of the three main pillars of the book. We have casualty, specialty, and credit, with casualty being split into the general liability and professional liability. Credit has been a really profitable class. The pillars of the credit book are the mortgage business and the standard credit bond and political risk, and then some structured credit business. All of those are performing well. What we found in the last quarter, in the last year, was we found opportunities in the structured credit business and in the mortgage business. Both of those are high profit margin and good opportunities for us to add to the portfolio.
David Marra: Yes, we did see some good opportunities in credit. You know, credit's one of the three main pillars of the book. We have casualty, specialty, and credit, with casualty being split into the general liability and professional liability. Credit has been a really profitable class. The pillars of the credit book are the mortgage business and the standard credit bond and political risk, and then some structured credit business. All of those are performing well. What we found in the last quarter, in the last year, was we found opportunities in the structured credit business and in the mortgage business. Both of those are high profit margin and good opportunities for us to add to the portfolio.
So now at 126 can you maybe talk a little bit about how this renewal period was different and how it has evolved in that regard if at all would you say there is a material difference in what's being collected now versus 123 before you guys were calling that out for example.
Yes, it's been good.
Yes, we did see some good opportunities in credit, you know, credits. Uh, one of the three main pillars of the book we have are casualty, specialty, and credit. Um, with casualty being split into the general liability and professional liability. Credit has been a really profitable class. The pillars of the credit book are the mortgage business, the standard credit bond and political risk, and then some structured credit business. All of those are performing well. We will
Two strong renewals since we started that and we're working collaboratively with clients.
We get materially better information than we got previously and Thats information is not only geared towards understanding claims trends, but also geared towards how do we then understand their overall business approach and has led a lot into claims conversations so where we can then use that in our underwriting to make sure. We're picking the best risks and avoiding those that are worse.
We found in the last quarter, in the last year, we found opportunities in the structured credit business and in the mortgage business. Both of those are high profit margin and, um, good opportunities for us to add to the portfolio.
Operator: Thank you. We will move next with Peter Kadutsan with Evercore. Please go ahead. Your line is open.
Operator: Thank you. We will move next with Peter Knudsen with Evercore. Please go ahead. Your line is open.
Thank you.
It's been a very positive process and collaboratively with our clients one of the things on the overall on the claims side as there is.
Peter Kadutsan: Hey, thanks for squeezing me in. In the prepared remarks, you noted prioritizing casualty cedents who focus on claims handling practices. I think going back to 2024, you had made a couple of comments around making a larger effort to work more closely with casualty cedents, to sort of ramp up information flow at renewals. So now at 1 January 2026, can you maybe talk a little bit about how this renewal period was different and how it's evolved in that regard, if at all? You know, would you say there's a material difference in what's being collected now versus, you know, 1 January 2023 before you guys were calling that out, for example?
Peter Knudsen: Hey, thanks for squeezing me in. In the prepared remarks, you noted prioritizing casualty cedents who focus on claims handling practices. I think going back to 2024, you had made a couple of comments around making a larger effort to work more closely with casualty cedents, to sort of ramp up information flow at renewals. So now at 1 January 2026, can you maybe talk a little bit about how this renewal period was different and how it's evolved in that regard, if at all? You know, would you say there's a material difference in what's being collected now versus, you know, 1 January 2023 before you guys were calling that out, for example?
We will move next with Peter Kaden with Evercore. Please go ahead. Your line is open.
Trend is not the plaintiff's bar has not let up and how they are approaching that trying to get big settlements, but the insurance carriers have gotten much more proactive in from the top down Theres a lot of awareness.
How they can invest how they can use data how they can collaborate across the tower and so it's not always the qualitative things we get from that process, but it is those qualitative things, which we're confident we will have a strong impact overtime.
Okay, great. Thanks, so much for that and then just a quick one for me on.
Casualty favorable ex the P. GAAP adjustment I know it was minor but I was just wondering if.
Prepared remarks. You noted prioritizing casualty Seasons Who focus on claims handling practices. Um, I think going back to 20124. You, you had made a couple of comments around making a larger effort to work more closely with casualty students, um, to sort of ramp up information flow at renewals. Um, so now at 11:26, can you maybe talk a little bit about how this renewal period, uh, was different and how it's evolved in that regard. If at all, you know, would you say there's a material difference in what's being collected Now versus you know, 1 123 before you guys were calling that out for example.
Kevin O'Donnell: ... Yes, it's been two strong renewals since we started that, and we're working collaboratively with clients. There is. We get materially better information than we got previously, and that's information is not only geared towards understanding claims trends, but also geared towards how do we then understand their overall business approach, and has led a lot into claims conversations to where we can then use that in our underwriting to make sure we're picking the best risks and avoiding those that are worse. It's been a very positive process and collaborative with the clients. One of the things that we've noticed overall on the claims side is, you know, the trend is not the plaintiff's bar has not let up in how they're approaching trying to get big settlements.
Kevin O'Donnell: Yes, it's been two strong renewals since we started that, and we're working collaboratively with clients. There is. We get materially better information than we got previously, and that's information is not only geared towards understanding claims trends, but also geared towards how do we then understand their overall business approach, and has led a lot into claims conversations to where we can then use that in our underwriting to make sure we're picking the best risks and avoiding those that are worse. It's been a very positive process and collaborative with the clients. One of the things that we've noticed overall on the claims side is, you know, the trend is not the plaintiff's bar has not let up in how they're approaching trying to get big settlements.
Maybe I missed it I'm, sorry, but if you could talk about the drivers of the puts and takes on that.
On the casualty I talked about the favorable.
This favorable development on a cash basis.
The purchase accounting layers in around somewhere around $8 million on top of it so that kind of pushes it around that's what I was trying to point out that we have been favorable at the top of the house for that segment.
This year.
Yeah.
Thank you.
We will move next to Rob Cox with Goldman Sachs. Please go ahead.
Okay.
Hey, Thanks, I just wanted to follow up on the artificial.
Kevin O'Donnell: But the insurance carriers have gotten much more proactive, and from the top down, there's a lot of awareness of how they can invest, how they can use data, how they can collaborate across the tower. And, so it, it's not always the quantitative things we get from that process, but it's those qualitative things which we're confident will have a strong impact over time.
Kevin O'Donnell: But the insurance carriers have gotten much more proactive, and from the top down, there's a lot of awareness of how they can invest, how they can use data, how they can collaborate across the tower. And, so it, it's not always the quantitative things we get from that process, but it's those qualitative things which we're confident will have a strong impact over time.
Artificial intelligence technology discussion from earlier.
I think a lot of the programs that we hear in insurance.
Is it automation efficiency component that often results in lower employee costs.
Yes, it's been, you know, 2 strong renewals since we started that and we've been working collaboratively with clients, uh, there we get materially better information than we got previously and that's information is not only geared towards understanding claims Trends but also geared towards, how do we then understand their overall business approach and is led a lot into claims conversations so where we can then use that in our underwriting to make sure we're picking the best risks in avoiding those that are worse. Um, it's been a very positive process and collaborative with the clients 1 of the things on the that we've noticed. Overall, in the claim side is, you know, there, there's um, uh, trend is not, uh, the plaintiff bar has not let up and how they're approaching trying to get big settlements, but the insurance, carriers have gotten much more proactive. And from the top down, there's a lot of awareness of how they can invest, how they can use data, how they can collaborate across the tower. And uh, so
And the reinsurance businesses tend to have lower employee costs and non compensation operating costs relative to other insurance businesses. So I'm just hoping for some color on how that dynamic informs your plans to use AI and how we should be thinking about potential benefits.
So, it's not always the quantitative things we get from that process, but it's those qualitative things, which we're confident will have a strong impact over time.
Peter Kadutsan: Okay, great. Thanks so much for that. And then just a quick one for me on the casualty favorable ex the PCAP adjustment. I know it was minor, but I was just wondering if and maybe I missed it. I'm sorry, but if you could talk about the drivers, the puts and takes on that.
Peter Knudsen: Okay, great. Thanks so much for that. And then just a quick one for me on the casualty favorable ex the PCAP adjustment. I know it was minor, but I was just wondering if and maybe I missed it. I'm sorry, but if you could talk about the drivers, the puts and takes on that.
Robert Qutub: On the casualty, I talked about the favorable, the favorable development on a cash basis. The purchase accounting layers in around somewhere around $8 million on top of it, so that kind of pushes it around. That's what I was trying to point out, that we have been favorable at the top of the house for that segment, this year.
Robert Qutub: On the casualty, I talked about the favorable, the favorable development on a cash basis. The purchase accounting layers in around somewhere around $8 million on top of it, so that kind of pushes it around. That's what I was trying to point out, that we have been favorable at the top of the house for that segment, this year.
Okay, great, thanks so much for that. And then just a quick 1 for me on the, um, casualty favorable X, the peak app adjustment. I know it was, it was minor, but it was just wondering if, um, and maybe I missed it, I'm sorry. But if you could talk about the drivers of the puts and takes on that,
Yes.
Your observation is consistent with ours.
I'd say from the top of the house many companies are looking at.
Trying to measure ROI and the way to measure that is with automation and efficiency and then I think a lot of improvements certainly what we're seeing and how we're thinking about our processes and our and our analysis augmentation coming from the bottom up.
On the Casual, I talked about the favorable, the favorable development, on the cash basis. Uh, the purchase accounting layers in around, somewhere around $8 million on top of it. So that kind of pushes it around. That's what I was trying to point out, that we have been favorable at the top of the house for that segment, uh, this year.
Operator: Thank you. We will move next with Robert Cox with Goldman Sachs. Please go ahead.
Operator: Thank you. We will move next with Robert Cox with Goldman Sachs. Please go ahead.
Thank you.
So our focus really is becoming a stronger better.
We will move next with Rob Cox, with Goldman Sachs. Please go ahead.
Robert Cox: Hey, thanks. I just wanted to follow up on the artificial, or artificial intelligence technology discussion from earlier. You know, I think a lot of the programs that we hear in insurance, you know, there's an automation efficiency component that often results in lower employee costs, and the reinsurance businesses tend to have lower employee costs and non-compensation operating costs relative to other insurance businesses. So I'm just hoping for some color on how that dynamic informs your plans to use AI, and how we should be thinking about potential benefits.
Robert Cox: Hey, thanks. I just wanted to follow up on the artificial, or artificial intelligence technology discussion from earlier. You know, I think a lot of the programs that we hear in insurance, you know, there's an automation efficiency component that often results in lower employee costs, and the reinsurance businesses tend to have lower employee costs and non-compensation operating costs relative to other insurance businesses. So I'm just hoping for some color on how that dynamic informs your plans to use AI, and how we should be thinking about potential benefits.
Underwriter.
Hey, thanks.
If we become.
And those two co mingle at a point, where if we look at one example.
We have some work that we've done with AI and some of our investment analysis, where we're taking but I'll make the numbers up 10 hours of analysis and doing it in one while that allows for better.
The judgment to be applied to stronger data.
One could argue that yes, we've increased efficiency, but it really is to augment our.
I just wanted to follow up on the artificial, uh, or artificial intelligence technology discussion from earlier. Um, you know, I think a lot of the programs that we hear in insurance, uh, you know, there's an automation efficiency component that often results in lower employee costs, and the reinsurance businesses tend to have lower employee costs and non-compensation operating costs relative to other insurance businesses.
Decision, making process. So I would say I don't anticipate that AI is going to materially improve us as a company through efficiency and automation as much as it will over time through augmentation of our judgment.
Kevin O'Donnell: Yeah, I think it's your observation is consistent with ours. You know, I'd say from the top of the house, many companies are looking at, you know, trying to measure ROI. The way to measure that is with automation and efficiency. Then I think a lot of the improvements, certainly what we're seeing in how we're thinking about our processes and our, and our analysis, augmentation coming from the bottom up. So our focus really is becoming a stronger, better underwriter. And those two co-mingle at a point where if we, like in one example, we have some work that we've done with AI in some of our investment analysis, where we're taking what I'll make the numbers up, 10 hours of analysis and doing it in 1.
Kevin O'Donnell: Yeah, I think it's your observation is consistent with ours. You know, I'd say from the top of the house, many companies are looking at, you know, trying to measure ROI. The way to measure that is with automation and efficiency. Then I think a lot of the improvements, certainly what we're seeing in how we're thinking about our processes and our, and our analysis, augmentation coming from the bottom up. So our focus really is becoming a stronger, better underwriter. And those two co-mingle at a point where if we, like in one example, we have some work that we've done with AI in some of our investment analysis, where we're taking what I'll make the numbers up, 10 hours of analysis and doing it in 1.
So, I'm just hoping for some color on how that dynamic informs your plans to use AI, and how we should be thinking about potential benefits.
Yeah, I—I think it's a
Your observation is consistent with ours. Um,
Okay, that's very helpful.
And I just wanted to follow up on property cat pricing.
You guys laid out the supply demand dynamic that's out there right now.
I'm curious if we model forward sort of a normal year of weather catastrophe losses in 2026.
How would you expect property cap pricing to change next year and one one renewals in 2027 and I realize that.
Pretty far out there, but curious your thoughts.
Yes.
Markets tend to move in curves. So it's going one direction I think our planning will be the direction will continue but it's way too early for us to think about building our 2007 pro forma our portfolios have been constructed with our best judgment and reflect where we think we will be on October one so sort of the heater when Susan.
Kevin O'Donnell: Well, that allows for better judgment to be applied to stronger data. So one could argue that, yeah, we've increased efficiency, but it really is to augment our decision-making process. So I would say I don't anticipate that AI is going to materially improve us as a company through efficiency and automation, as much as it will over time, through augmentation of our judgment.
Kevin O'Donnell: Well, that allows for better judgment to be applied to stronger data. So one could argue that, yeah, we've increased efficiency, but it really is to augment our decision-making process. So I would say I don't anticipate that AI is going to materially improve us as a company through efficiency and automation, as much as it will over time, through augmentation of our judgment.
you know, I'd say from the top of the house, many companies are looking at, you know, trying to measure Roi the way to measure that is with, um, Automation and efficiency. And then I think a lot of the improvements certainly of what we're seeing in, how we're thinking about our processes and our, and our analysis, augmentation coming from the bottom up, uh, so our Focus really is becoming a stronger better, uh, underwriter. Um, if we become and and those 2 co-mingle at a point where, if we, like in 1 example with, we have some work that we've done with AI in some of our investment analysis, where we're taking what I, I'll make the numbers up 10 hours of analysis and doing it in 1. Well that allows for better.
Where it goes from there I think there's a lot of things that can shift.
Interest rates can change geopolitical situations can change materially and then certainly losses.
It can change so.
Judgment to be applied to stronger data. So one could argue that, yeah, we've increased efficiency, but it really is to augment our decision-making process. So I would say I don't anticipate that AI is going to materially improve us as a company through efficiency and automation as much as it will over time through augmentation of our judgment.
Robert Cox: Okay, that's very helpful. And I just wanted to follow up on property cat pricing. You know, you guys laid out the supply/demand dynamic that's out there right now. I'm curious if we model forward sort of a normal year of weather catastrophe losses in 2026, you know, how would you expect property cat pricing to change, you know, next year in 1/1 renewals in 2027? I realize that's, you know, pretty far out there, but curious your thoughts.
Robert Cox: Okay, that's very helpful. And I just wanted to follow up on property cat pricing. You know, you guys laid out the supply/demand dynamic that's out there right now. I'm curious if we model forward sort of a normal year of weather catastrophe losses in 2026, you know, how would you expect property cat pricing to change, you know, next year in 1/1 renewals in 2027? I realize that's, you know, pretty far out there, but curious your thoughts.
Think of it as an curve. So it's gonna direction I generally think it will continue but it's not something that we have a strong view on at this point.
Okay, that's very helpful.
Thank you.
Thank you.
I will now turn the floor back over to Kevin O'donnell for any additional or closing remarks.
So we're proud of the performance we achieved in 'twenty, five and eagerly working to build the best portfolio and maximize returns in 2026 I want to thank you for your attention and your questions today.
Uh, and I just wanted to follow up on property cap pricing. Um, you know, you guys laid out the supply demand Dynamic that's out there right now, I'm curious if we model forward, sort of a normal year of weather catastrophe losses in 2026
Kevin O'Donnell: Yeah, I would. You know, markets tend to move in curves, so if it's going one direction, I think our planning will be that the direction will continue, but it's way too early for us to think about building our 2027 pro forma. You know, our portfolios have been constructed with our best judgment and reflect where we'll think we'll be on October 1, so sort of the heat of winter season. Where it goes from there, I think there's a lot of things that can shift. You know, interest rates can change, geopolitical situations can change materially, and then certainly losses can change. So, you know, think of it as in curve, so it's going a direction. I generally think it'll continue, but it's not something that we have a strong view on at this point.
Kevin O'Donnell: Yeah, I would. You know, markets tend to move in curves, so if it's going one direction, I think our planning will be that the direction will continue, but it's way too early for us to think about building our 2027 pro forma. You know, our portfolios have been constructed with our best judgment and reflect where we'll think we'll be on October 1, so sort of the heat of winter season. Where it goes from there, I think there's a lot of things that can shift. You know, interest rates can change, geopolitical situations can change materially, and then certainly losses can change. So, you know, think of it as in curve, so it's going a direction. I generally think it'll continue, but it's not something that we have a strong view on at this point.
I realized that, you know, pretty far out there, but curious your thoughts.
Thank you. This concludes Brennan century fourth quarter end.
Year end 2025 earnings call and webcast. Please disconnect your line at this time.
Yeah, I would—you know, markets tend to move in curves. So if it's going in one direction, I think our planning will be that the direction will continue, but it's way too early for us to think about building our 2027 pro forma. You know, our portfolios have been constructed with our best judgment and reflect where we think we'll be on October 1st—so, sort of the heat of wind season. Um,
Where it goes from there, I think there's a lot of things that can shift.
Robert Cox: Thank you.
Robert Cox: Thank you.
You know interest rates can change, geopolitical situations can change materially and then certainly losses. Um uh can change. So I you know, think of it as in curved. So it's going in a direction. I generally think it'll continue but it's not something that we have a strong view on at this point.
Thank you.
Operator: Thank you. I will now turn the floor back over to Kevin O'Donnell for any additional or closing remarks.
Operator: Thank you. I will now turn the floor back over to Kevin O'Donnell for any additional or closing remarks.
Thank you.
Kevin O'Donnell: So we're proud of the performance we achieved in 2025 and eagerly working to build the best portfolio and maximize returns in 2026. I want to thank you for your attention and your questions today.
Kevin O'Donnell: So we're proud of the performance we achieved in 2025 and eagerly working to build the best portfolio and maximize returns in 2026. I want to thank you for your attention and your questions today.
I will now turn the floor back over to Kevin O'Donnell for any additional or closing remarks.
Operator: Thank you. This concludes the RenaissanceRe fourth quarter and full and year-end 2025 earnings call and webcast. Please disconnect your line at this time and have a wonderful day.
Operator: Thank you. This concludes the RenaissanceRe fourth quarter and full and year-end 2025 earnings call and webcast. Please disconnect your line at this time and have a wonderful day.
No, we're proud of the performance we achieved in '25, and are eagerly working to build the best portfolio and maximize returns in 2026. I want to thank you for your attention and your questions today.
Thank you. This concludes the RenaissanceRe fourth quarter and full year-end 2025 earnings call and webcast. Please disconnect your line at this time, and have a wonderful day.
