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Hartford Financial Services (HIG)

Participants
Susan Spivak Investor Relations
Christopher Swift Chairman and CEO
Doug Elliot President
Beth Costello Chief Financial Officer
Elyse Greenspan Wells Fargo
Paul Newsome Sandler O'Neill
Brian Meredith UBS
Jimmy Bhullar JPMorgan
Ryan Tunis Autonomous Research
David Motemaden Evercore
Mike Zaremski Credit Suisse
Amit Kumar Buckingham Research
Gary Ransom Dowling & Partners
Yaron Kinar Goldman Sachs
Call transcript
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Operator

Good day, and welcome to the Hartford Financial Services Group Inc, Third Quarter Financial Results Conference Call and Webcast. All participants will be listen-only mode. [Operator Instructions] After today’s presentation there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference call over to Susan Spivak of Investor Relations. ma’am. yours is floor The

Susan Spivak

and Thank you us third you joining our yesterday and XXXX including earnings-related the XX-Q good for our morning on afternoon results today our on We thank all call the earnings. materials, for website. reported and posted and quarter webcast

are For Elliot, Costello, Beth President; speakers Chairman CEO Chris Officer. call the our of and and Chief Swift, today, The Doug Financial Hartford;

have will a period. we remarks, prepared their Following Q&A

Statements not Forward-Looking defined Chris of actual begins. future different. Just Private any not materially should actual in the could Today’s Litigation filings. those under performance also uncertainties that obligation We a description be few comments Securities assume to A can includes results the final XXXX. and before call be These consider guarantees and found as Reform our Act provided update do to could or Investors statements results forward-looking risks cause are information from and uncertainties of statements detailed SEC these differ risks statements. call. on this of

today includes non-GAAP the the reconciliations to release in measures are well supplement. commentary GAAP financial as Explanations measures. and measure filings, these in comparable of included news and as our financial SEC Our

for official may an that transcript of note this written will year. prior no form available Finally, one please without Hartford’s and or this be be The conference portion rebroadcast call reproduced The any of website Hartford��s in consent. webcast on Replays

will I call the to now turn over Chris.

Christopher Swift

joining with strong financial our Good business all us Hartford quarter thank excellent results morning today. and you had for across an lines.

continues solid $X.XX per prior year catastrophe investment over results. XXX diluted losses earnings or lower rose million quarter XX% Third share with to and to

core share AOCI environment. Book the ROE to performing earnings current in value up Our months market was The year-end. per well. X% businesses consolidated in XX.X% results excluding XX very impressive a diluted $XX.XX from was are

to delivering and key The strong consistent integration operating strategy quarter-to-quarter our continuing is in invest business efficiency. customer to execution by enhance in performance on experience our of our milestones demonstrated

I Dough and lines touch Beth include will on briefly cover over highlights but few up core Commercial third earnings million results a more year. the prior quarter in wanted to detail, of XXX XX% in items.

renewal with first to compared and half without of year. Solid acceleration Navigators and top-line pricing the rate growth the

more announced the of we customers. a into as acquisition year underwriting in an to the and than of our our When part expansion to ago, strategy distribution the our of a more needs Navigators of relationships player serve benefit wholesale risk global broaden was capabilities added product specialty important was channel

Navigators teams we months six have the is transaction. passed Nearly distribution from very closed have partners. to-date on-track reception and amongst with pleased collaboration the since the I'm positive The and progress

from certain within is the specialty returns. XX% million strong targeted lines development. benefiting up from the financial lines Personal market, benefiting to Our to product pricing catastrophe in book the favorable prior providing restore losses earnings in opportunity year tailwinds core global XX lower were

XX.X While up a combined was year prior for strong of personal the ratio slightly from underlying result. lines

business up new this in with XX% primary been returning business in quarter. to Our the focus has growth

Overall net there lines. in was and for both favorable were million casualty and various development reserve property XX development in unfavorable the favorable quarter,

reserve Overall, data, teams within and used identify I’m trends have quarter. estimates the which ability our emerging demonstrated each in estimates. claims update confident Our actuarial to our to last experienced is our

products. to higher of lower the earnings year commissions management up investment quarter partially technology, XXX of voluntary versus our benefits higher loss favorable XX% was increased increase and driven was This amortization million another delivered offset claims income in ratio, with core Group intangibles. by excellent net per by and related investments

come from improvement points, driven the The life in by continues trends. offset a incidence loss deterioration partially favorable loss total favorable by improved to results ratio. Our ratio in X.X the disability disability

Results also we an don’t accident XXXX. paid recovery consistent updates however, leave trend other related see refund New any to In in York year the the volatility. than product of benefited family claim assumptions and normal was experience from to or group recognition our quarter severity elevated life

fully insured ongoing were top-line, versus pricing year. as slightly of trends below running off prior slightly is the book. we On premiums just adjust targeted segments on historical Aetna Persistency the

is perspective. are very execution book on and pleased Importantly earned deal financial well the with very platform to the benefits. go of cases from premium pricing and assumptions our both Aetna continues Overall, business of we in-line of conversions the operational performance group with and

a comments is over under Doug, number property of interest have to new portfolio The to is challenges Net pressure and microenvironment. a the of in is Before overall wanted casualty documented. income industry a what that period in few low prolonged yields. been I call likely on investment effecting money rates the well make turn facing

keep related as weather as pressuring severe to of events well as wild up storms trends. CAT frequency with elevated, The rates other fires are catastrophic such

continues claim to on cost trends. Social inflation settlement put larger to related pressure loss

However, to pricing with appropriate provided phenomena, the realities. our social taking To outlook with one left our quarter models been in a experience monitoring is nine-months generally no consistent actions ensure for the trends underwriting first we in is inflation years surprises. with conclude major we through have the not the new these year, these reflect

working. and at and execution capital in financial distribution to results our and partners shareholders. strategy shareholder creation. demonstrate two confident for an to ability customers, our employees, is Hartford of stakeholders, consistent the our results successful produce is contributing transactions, all our exciting The strong I’m It integration management recent time value

Doug. the turn call Now, I to will over

Doug Elliot

was fueled the The Navigators strong. for acquisitions, and organic Chris Top-line results lines was everyone. X%. property solid underlying by Hartford’s you, growth and a while commercial growth were the quarter good casual and Thank morning

up quarter earlier in In personnel growth significantly the but lines, new is moderated business is from year. XXX,X third from

underlying We are as all execute returns Property the Casualty our businesses to each of across and pleased with continues effectively.

million quarter quarter XXXX. year Current less losses a below With were than the in year third ago. $XX a benign $XXX for quarter losses million, catastrophes, relatively CAT as total

aggregate commercial personnel and favorable reported and year line $XX workers drove severity million auto prior all this Casualty releases. business improving development of package quarter In favorable compensation, reserve trends across Property small

these releases strengthening some and offsetting was loss by large commercial Partially reserve activity. and general auto driven liability liability a

Chris commentary has these regarding trends. tort there during the mentioned, As a we amount unfavorable to been fair inflation quarter certainly already immune of and social has are not

However, primarily profiles. keep in up book lower with mind is made smaller limit our Hartford of customers

another development purchased layer In the cover addition, we the protection. Navigators of development wants adverse provides on

years, accordingly. adjustments in to same to response we and to At continue auto will book observed and time, have we loss also Over liability made these we necessary. trends. underwriting our general actively these pricing monitor the appropriate past actions few as commercial reserves the higher while have and We trends, take adjusted trends have

the shift results XX.X a deteriorating two tenths year segments. last from for but our lines now of me underlying and for The commercial business strong combined which excludes nonetheless. Let performance into point was a development prior catastrophes

the This by in Navigators’ non-CAT expected partially As book I'm favorable property the by offset increase encouraged the results. generated combined approximately quarter. the of ratio. environment point was on one pricing

remains compensation basis pricing current up X.X% prior written This second from up XX basis environment. pricing quarter points XX and the from pricing renewal workers sequentially year. somewhat standard points change lines positive and commercial was by depressed Our

the X.X% we and year. from up The taking pricing actions reflects the lines. market up XXX compensation core quarter across in basis prior was second workers the basis improvement strong rate quarter our excluding from points Middle are XXX points

Given trends industry to I lines, operating performance these trend in loss this compensation persist. and pricing non-workers expect

year performance units. excellent commercial an with losses lower Let's line ratio commercial continued driven was combined lower it now and is The versus business by take last a non-GAAP Small underwriting look at expenses. primarily XX.X. inside improvement our underlying property margin

compensation completion the in the renewal business of flat Written pricing prior the rollover Foremost was renewal to written transaction. and due rights premium to from year new decreases workers

workers for growth Excluding driven a Foremost compensation very quarter XX% strong new and business business. up premium the package by was

to new platform have from This continued With new release. and insurance the new launch than package just level, enhanced small ever. generation this our We of modular our expect taken a the easier capabilities next offering product business that leading Spectrum. call a supports we come it, growth more much industry buying policy we making to than is business

from or own. shopper retail Their small the can is to the their placed able time pricing buying running online the insurance coverage products way or their tailored view customize now see agent of receives consumer ability for total in recommendations real to much an Hartford same cart. their business a A the costs

XX we of year-end. As be states in XX are and today, by live will in

game additional optional long-term and in quotes selections. to This product adds in coverage about our increases our launch seeing this segment. excitement growth prospects only changing for already are We

losses by property which from the quarter underlying combined ratio of losses. have large in improved elevated the Notably, marine and driven the the middle XXXX in X.X non-cap moderated. lower primarily second In commercial, were points XX.X

year certain middle last addition premium up energy. in such impart and Written legacy as over was commercial. X% property premium written and as large due and construction large was Ex-Navigators national to XX% programs production the with Navigators strong well as accounts, in within verticals up businesses of

In We points and liability quarter. over far our auto including the are points ratio book achieving rate quarter of $XX.X the property the increases in up deteriorated with commercial, basis of behind. are Navigators XXX global X.X and increases a middle not across large rate combine result underlying primarily specialty sequentially the this

achieved the double-digit during Navigators reprising book. have increases rate since on with we Navigators acceleration acquisition, and both quarter this first and we the and In of the the U.S. Since been quarter international of quarter, rate significant aggressively business the the third year. re-underwriting portions

surety results we and U.S., strong in professional and the underwriting achieved lines. our In liability management

both business pleased U.S. channel wholesale new the with pricing We from also distribution are in our renewal and generation

to Market in years have our returns we syndicate actions international, Lloyd sub-par and plus In address London of two significant portfolio. taken

MGAs slips In the this and have aggressive number the book line to underperforming we portfolio. taking are certain the addition of actions, on and exited reduced binders, lines we significantly pricing across

in materially have overall and the also lines reduced limits ENO DNO, including deployed several casualty. We

off market to of as conditions where Our appropriate. global start they a taken team addressing favorable is as opportunities specialty active the advantage book are well in terrific

Integration to will levels. executing claim expertise contributor financial global of play premium an technology, a other performance important be efforts business. as return risk specialty We data product to to growth significant continue many areas, improving core returns science, including the functions across role design, sharing commercial’s profit and fully in target and expect this

earn experience. combine non-CAT both ratio XX from still auto The underlying reflected lower is driven earn improve due points the point our premium the but increased in personnel will improvement good overall XX.X pricing third deteriorated result. The of basis nearly lines, XX increases a the XXXX, and very loss of and ratio to quarter the loss impact homeowner to by ratio ratio while basis results of one homeowner points. Moving expense

new year. positive all traction. another growth up spend compared direct quarter ratios and was continue business to prior flow, business year, is auto, to New levers compared including improved In adjustments to production sales critical prior new gain product as XX% ARP marketing this close and our

Importantly, improving pleased the are this profile we trends. and with the encouraged by underlying growth of

written we growth. have though Despite ARP business work continued new was made progress of new more the in to strong growth, on profitability positive book, X%, and premium our improvement retention to direct is improve down needed business total return to

In while quarter is are responding strong our across market against plans to very our dynamics. and competitive summary class last businesses, executing effectively trends Property and Casualty this a we

disciplined is improve progress accounts and that taking actions clear to in-lines underwriting appropriate overall pricing need making driving are decisions. profitability. This and We

talent impact additions breadth the of future. days. progress are to that and and Meanwhile, I and extremely of in outlook depth key partners. we with on my underwriting you drive XX bullish the another our product on look The seeing businesses Navigators forward contributing our in our the we these all distribution the positive acquisition updating milestones remain already by is encouraged

now Beth. over the me turn call Let to

Beth Costello

Doug. portfolio, results you capital an going Hartford Funds provide and investment management. third I'm quarter Incorporate to Thank Today update the on cover for

partnership Our investment yields. strong well and to returns very perform portfolio generally with continues investment limited stable

from up the XX% the year. Net investment million was for million quarter or XX income prior XXX

was The annualized Excluding funds. higher investment Navigators year. valuation partnership or return the XXX XX.X% to than was due limited higher income in than the quarter X% million net prior underlying

XXX September Lower on income securities statement XXth unrealized million gains tax interest before through in credit the and and realized XX increased the and maturities at in from realized rates capital on after XXth. and tax X.X Unrealized fixed gains tighter tax before billion were XXth. gains to classified billion at equity spreads September up June net quarter X.X million

I likelihood wanted the XXXX of the the The credit and low rates, one sustained the impact flat interments we of rates. investment yield portfolio in increasing of manage very portfolio strong. interest to environment to performance lower the remains Net with quarter due in the totaled how given third touch million quarter on this portfolio

of portfolio. a have We investment broad capabilities diversified a well range and

for making manner. Our in to strategy quality not yields credit continue does will lower of purpose pursue we the lower up a and invest for diversified

equating For the was yield tax X.X% current million. to our quarter, XXX limited partnerships before excluding

rates close in the Taking excluding into points of using to reinvestment the forward XX by approximately by before projected portfolio consideration could income potential we rate reducing tax. curve, lower yield investment declined net XXXX quarterly limited partnerships basis see run XX the million

X% Turning offset of was up last earnings XXXX quarter by net one Daily year, X% to million from million Hartford but second sequentially. Core market average outflows. reflecting from partially performance Funds. were down XX AUM strong

of and of basis. third quarter eight losses outperformed three five Hartford Investment million very improved as from on performance one, of XXXX. remains year XX% XXth about core a peers XX by Corporate million Funds strong, September

The from equity income this compared one in quarter principal Talcott of in after retain was million to quarter million our XXXX. improvement of XX the driver interest tax third

the through to November shares X.X be we financial businesses strong million, able and capital we During to shares, flexibility, million capital XXX are with year-to-date invest continue have to we Xst, for our both quarter, return pleased and repurchase in to generation shareholders. repurchased

XXX issued year notes comprised quarter, X.X% million of redeem with the X.X%. average debt the we of coupon approximately million, third proceeds used of notes. year the to We X.X senior debt X.X% of billion and weighted senior billion X.XX During XXX XX XX

the in debt tax. of XX extinguishment loss resulted of on before redemption million The

senior plan which target. will continue XXX to maturing our in with notes put to We X.X% repay March million, our XXXX, in-line us leverage

X% cost A September comment of capital. in XX.X% XX, to diluted XX on items year-to-date was close. over few per equity up I value X% earnings Book and share our Core to ROE the well AOCI XXXX. $XX.XX excluding months was before of last other excess

have related for recoveries uncertain subrogation wild potential disclosure XXXX We about PG&E included the California XXXX in and incurred the losses on XX-Q fires. to

plan, to of is have bankruptcy we actual proposed recoveries upon of Given the subrogation settlement contingent is insurers we although not expect on recognized approvals approval XXX approximately we of to the PG&E uncertainties respect with which subject collect the and amount the the to would plan, claiming be bankruptcy growth submitted any to-date. Based all PG&E subrogation million, uncertainty. subrogation to recoveries terms

such have treaties. recoveries XXX Accordingly, reinsurance any we reinsurance recorded million. to of benefit under subrogation million reduce XXX would CAT The recoveries for income any would recoverable be of subrogation in access

active events. to already fourth an for catastrophe Turning quarter, has related been it quarter

cash Our million is budget for pre-tax. the fourth quarter in approximately XX

wind any million catastrophe current are California in from fires, the of Dallas wild approaching and losses the Tornados month October in we considering from of losses the area losses XX other events. Before including

businesses properties are risk. from at early have to While areas monitoring we California of still too it the make is the we and we closely wild ensured fires, the in may estimate an incur losses fires current

As complete reserves. annual will of a study environmental reminder, in the our fourth asbestos and quarter we

purchased that average reserves. loss did increases of Also, additional in million in available cover Navigators, for adverse coverage to available XXX development our we the net of we in business. XXXX, we to on have million quarter we these Under book third remaining reserves $XXX development of feed not the for coverage have so continue any

and results strong across our you strategy continuing The execution is generating summarize, look integration progress. update is to our on To to we the our lines. of Navigators of on-track forward business

Q&A now begin call Susan, the over we will I to session. so the turn can

Susan Spivak

Thank you, Beth.

repeat Operator, question. questions. for for a minutes instructions you XX about please the can have asking We

Operator

Yes.

answer Greenspan Wells Instructions] of go And Please will have We the come question and ahead. begin Elyse first [Operator the Fargo. from we will session now question

ElyseGreenspan

morning. Good

they of the you capital. the quarter. First know for do, you off My that this new stream helpful release line kind disclosure within was depreciate is press that question on first

year Just of just third are looking expecting following the at XX-Q end prepared guys it you majority of remarks, the seems your up the attributes you quarter tax on this some like disclosure. the of got as the

then wanted year for a could change next is get PNC in could dividends you in then of quarter give that tax the just there attributes the you just for expect well? the capital sub and sense I and repurchases a as upstream to fourth of So and any walk us and through XXXX also from the sense side you

BethCostello

Sure.

of thank press So first on all, the format. like you the you that for the glad comment new release. I’m

we of So from with what as the timing it beginning refund little expected relates I cash, to the tax at holding did bit benefit on-track we Yes, year. received would come than earlier of the overall, we say AMT anticipated. in the are a company we

We were anticipating year. that this

took all kind to million course repurchases share projected about our have authorization So target we of our we into this continue a for and be view as of then purchases total we of this dollar and in year year consideration, used into XXXX. would that share XXX remainder of the year billion the next over of of in

we to streams dividends XXXX. XXXX, reminder not as go in do anticipate As then it normal we as XXXX. did Again, into back we relates you going in but dividend any from PMC to net cadence our take a

to to about talked benefits, we we the business obviously benefits results been on the XXX group very of in actual strong. see range, typically sort past in it from As results our XXX group XXX depend will million dividends range have the in obviously XXX

those seen through have years. So, the increases we some dividends in

in come benefits when expect still XXX in XXXX, benefits tax And at have and do we probably XXX will so mutual remaining receive then then some million million. bit are XXXX And a tax through. look would that over isn't we to funds usually we that $XXX that little we

would million. XXX look XXXX under we we slightly be as to And just

then much previously. will of we in still I XXXX. I as just maturing XXX very said, my in with debt March prepared laid remind have paying do And in-line what you we remarks, again, out again, our anticipate So of million

ElyseGreenspan

my question keep going very then is kind on, a track trending, is you out. And to that if for that second guys helpful. earnings couple Thanks business of some projections highlighted of how we want Navigators years

So the you the earnings get sense just quarter way get at look of, a is for how kind how came best to us it set tracking. Navigators us in through trying you give sense can or to a margin stage clearly the specialty much know or just global of a sense is

ChristopherSwift

thank on far as have would of say related question. performance goals as our you the really commented the I are your what past Navigators Elyse, we for to financial unchanged.

I of think the we the different be it did might slope slightly might say be, slightly components different.

see lot and But still prior earnings a still time path earnings core in to to of would broadly in defined, to period being a year in intangibles what over specialty four there Obviously long-term, that amortization of of of but that $XXX million what the excited. five you we is Doug say would space near-term. rate the is I say the but taken

DougElliot

prior this year Just on action a very we is the quite fair year. liability across current to to ratios to tweaked either add that other prior relative pretty a loss few We quarter, but Navigators that in assumptions. actuarial the or quarter the quarter line, made adjustments than slightly in

ElyseGreenspan

getting book business? of you can the are us of And their you a give Okay. that sense just within rate

ChristopherSwift

think two a September they was the right mentioned I as closer of was pleased about the to October said are points we XXish, it quarter internationally together keeps optimistic, so are commentary XX, XX talking lot like on in an in that early to rate price. of U.S. and put quarter, October September. in Elyse, essentially when quite of book through run were getting you and July you double-digits was about we looks the Yes. XX, and my me XX there I top that the peak also accelerating

good So, very the hard we really is are with I and think change outcomes team off start to his progress, pleased a to I’m here. Vince working

ElyseGreenspan

I appreciate color. the Thank Okay. very much. you

Operator

of we Sandler Paul O'Neill. have Newsome Next

PaulNewsome

are a and other seems Thanks different have that you way commercial private think the frequency and have the same how the Good little in more you auto I bit the sort spike for a little What the at and bit you bit companies, questions. morning. of that. all frequency the of little you my the in was and physical have company both some severity so severity vary question, seen is it. of of you experiences same hoping to we what then call. passenger on by their and in and seen trend a second auto frequency And see kind could be trends damage of kind two Those question ask and behind about thing.

DougElliot

just personnel want me Paul, let clarify commercial and do me both you to…

PaulNewsome

Yes.

DougElliot

Okay.

personnel. start Let’s with

we and be for essentially to are see collision frequency our severity quarters within continue of But auto lines line lot personnel book, line. performance are we feel the been about pleased shape in trends the a We our in auto severity. by our trends good overall has expectations personnel mindful of of now good and several and progress

commercial, vehicle, In five much six bit a that commercial for our book. story smaller the book, working right transformed we been years, have now to of that have different small we sense and

essentially in We mono-line circumstances players but the space. not acceptance certain necessary small improvement there, commercial auto, more are commercial improvement on

fleets slightly sector, is commercial. again, essentially attached commercial a to middle, the market this is accounts, auto heavier middle specialty not In the small our this auto than

six have years. rate the We to last been over also seven chasing here

progress, have our line not performance We in made at acceptable relative the to operating all but today.

on combined little to make to of be bit we top progress mindful plus commercial X.X that which range auto I that rate, are into continue a QX very pleased over QX and points on that we six, XXXX. So, work continue we our needs anything. at in means was us to in look in rate and to to some maybe When Beth like will continue in mid will the think loss make single-digits to during plus appreciable that hard work our five Chris trends, ratio. to pricing that about up they adjustments, underwriting XX auto or

PaulNewsome

about from trend might folks other commercial severity you seeing different the business not it Do is the theory are why any and or we be recovered? particularly that whether have

ChristopherSwift

of offer commercial the had have primary I auto, pressure we that think some excess player book not the past, three significant I business so is years. layers the a are would space. to on over largely in do just the excess our four side ex-Nav

very are auto with that, especially them a working assumptions, and we are actuarial quite there. we closely sharing has trends book mindful our taking cetera of working Navigators bit right et

So the books do greater change book our in insight, have don't have auto But I rate Navigators I I substantial. don't because own. any is competitor insight into like other our

PaulNewsome

the you. for Congratulations quarter. Thank Okay.

ChristopherSwift

Thanks Paul.

Operator

have Meredith Brian UBS. we Next, of

BrianMeredith

I'm was the lines ratio be expense G&A a First, the just year-over-year to higher kind than commercial expected a rate is anything little declined In that respect with with XX% to G&A curious. growth segment, as seeing are what there bit expense around as unusual we of decent only there expense expenses than run growth the ratio?

ChristopherSwift

make Yes, question, a QX and that both that there in challenging. bit Brian some are compare and little QX happening things good

bad three me quarter, you actually more my quarterly expense from some basically some unpack let them fees credits. also Texas you ran and credits And So do like had In licenses and best get of we when a through kind XX.X. in to ratio debt laser it. that

sometimes to put have they into higher also on we I QX, and expense base. some specialty our that the company the upward comes out Navigators point had got book some ratios, timers expense as as a slightly In would one expense typical you pressure

of on and between we there years. the expense over bit little coming NAB couple certainly that So in inflation our is international, a work the of U.S. way through next from the the

have As we earn toward those about. targets we meet, way our talked we profit

XX.X the in to look more I at QX So the range. rate run

we I will as out. I think of look QX that kind where is be

BrianMeredith

and talked in little is environment, what limits of area thanks insulated that given the increasing question, more as you area, second from in then competition is business. the that any bit curious, inflation result Great, a I'm you inflation maybe going have cost the profile seen a loss small commercial social how my of environment. it in about a

ChristopherSwift

activities, there is always changing I In to it everyone there competitive many FinTech environment say EsnureTech competitive there is say rapidly piling response would in. across is businesses entrants, related more is of pressure, things or again I wouldn't is new where related a in our but

us you would heard I say talk and this about have before.

history capabilities, agent that deep advantage with of We a element of a of provide have of relationships to a XX an us. lot does data, here year lot a lot trusted

But tuned trends in to day, whatever to need we better top get as need what mindset every do emerging are on the go-to-market. one differentiate own really continue in ourselves our we continue the to of of to to do we

you and Doug anything. that So is our mindset if would add

DougElliot

Yes.

So, maybe and we just what a work I years. on our couple last of of comments comments then will about new the structure on couple

couple of of NexGen now. excited of very about we been a this So, design have launch spectrum, Brian for kind in the and years stage building

terrific on the Because to because a digital all profit new years challenge been if of to be focus and to the experiences the think in market need have line use on to I couple going that we in that they last very your we is current then laser to of much launch it launch way product are be go personalize. product And the adequacies these our rate get where is difficult our in product. spectrum our

in So loss see those of are of years, feel couple in the we as over pricing, with on area reserves spectrum these make on top we continue to trends of last we our our trends trends good think liability that about and mid sure sheet our still we that terms and has balance ledger. overtime about that pricing matching in recorded single-digits we been are the

progress So, the we very into and think I good half have exciting here, yes latter loss launch the trends effort into we XXXX our XXXX. been that on new focused now of

BrianMeredith

Thank Great. you.

Operator

JPMorgan. have of Bhullar we Next Jimmy

JimmyBhullar

commercial to are ability your first Doug advantage take to comp pressure. Hi, have and pricing the exposure got a a and actually prices good improving obviously especially of do market, your on couple under for you questions line. morning. I workers of How that big have given overall

DougElliot

continues into Yes, I in worker’s have the pricing to was again particularly improve point recognized continue that we Well, that headwinds and we non-workers profitability environment. suggested are optimistic as that small comp commercial. expect I would case we out to compensation certainly on a QX. our excellent is QX books the I those some

navigating mindful thoughtful and account-by-account So and about we small and being selection headwinds those and geography and the commercial. of state of in middle class are

tale matters worker’s competitive a is And where we that very improve our so, comp greatly yes it pricing is while hard working two to dynamic understand we are to core of us. a

JimmyBhullar

hope I at few have focus think like of revolving maybe more And the premium next will margins see and personnel point you improvement are then start quarters from on some seems to their in companies accelerating But premium. sort over that growth. and stabilizing more shifting line, it the an to you

competition Just to that in premium and it comment market? when expectation your get deposit you growth of is still can sort rationale on whether flat of

ChristopherSwift

Yes. other you that drivers, mean going a focus Jimmy, want is or are orientation. is and organize specific dynamic we but I give growth are been that just same is the right, mindset. a we there competitors But has to because not a guidance grow are of any a shifting comment lot there it on to marketplace overall both to

I you compared where that in is feasible. that business are discipline we well. by in my sense to remain as territories in new is responses opportunities is the appropriately business segment we got trick least make not got pricing many what said. environment just is for Doug getting your the team converting or new to So again at that that is judgment the states and But, you would your just as very It executing

DougElliot

it made I done successes. bit we out more progress retention are a I a then front, supplement, new new we we there to levels a agree, those And on still I do is work list. good to little think raise And see we more business front, can is very and absolutely, on little have carefully about adjusting the think you Chris and lay what thinking there. want the on we because of be focused business

JimmyBhullar

you. Okay. Thank

Operator

Research. Next have of we Tunis Ryan Autonomous

RyanTunis

you maybe reserved in the I’m about to we some the over it was maybe got the so over was this XXXX like decade the about of maybe past these XX, And auto, prior hear First have but talking to potentially about commercial just feel of had new like hardcore question development something to it on guess and you probably to XX, which are for that you to contemplated you on commercial trends a not XX. ahead extent Doug in your what been year, thoughts more maybe extent I like past is curious just this? thinking environment new competitors, I on seeing talking seems auto much

DougElliot

Ryan thanks.

I us start quarter do something on trend. just the to the onto because relative to want then Let think and come prior I are you in

made prior we losses quarter, our in an to book. this large in we seen had adjustment our national some account development So year on based

So and it is we largely last accounts national national in not accounts, something national say accounts, I almost changes that several would all years. it's of XX% the the had adjusted

book. national our excited really So

some of attention we years, correctly adjusting five years. specialty I six adjustment go we hard broader for back would six XX our actually five raised a or over had auto time XX auto. that the have that in vehicles to back caused stated transportation dynamic have If and we to you period, to on this say the working been book, auto commercial been

what been done our our on space agree pricing. So have in auto ongoing next process have an This for current you work the with and in I us. we would underwriting reserves, commercial if year looked and at has

we more leverage together. job best we with come going profitability the to in Navigators business and them we in quarter, are underwriting of tuning some book our at did book the as We the do forward we and can continue importantly, sharing to findings

RyanTunis

Chris, then favorable seems we benefit very for obviously maybe pricing there. some and well seeing guess how I hold are surprises the on trends off. a just to P&C analyst is Perfect And what

beneficial. group I’m view, cycle how in to - of I'm your pricing does you work kind next comp any workers seeing group over area So Have years? this that transition curious couple competition in the the as for seen benefits. a increasing

ChristopherSwift

are a say enough I performing that there think very one were Sure, would and data said my this in I couple timers quarter. I to we Ryan. in of we yes well commentary, say provided

more with was that I in-line X% at earnings quarter margin. So the and it an million look XXX roughly

views we here, long-term our above which clearly seven. But guided that have six to is still

keep a you two, based mind the we on in is made that are of and that have emerging have that thing to commitments just are lot the results today think are ago I years pricing three outperforming. just

rate So and because we guarantees, discipline in unlike three commitment. guarantees, very P&C, thoughtful we the year generally rate making that is make three year are those

on contributing both expectations current that the outperforming just and that are outperformance. incidences is we to recoveries So,

helps that you. hopefully So

RyanTunis

Thanks. does. It

Operator

have Evercore. we Next of Motemaden David

DavidMotemaden

Hi. Thanks, good morning.

bit a in for going just assuming to and seeking are market severity you get you loss on question on picks to changes of the sort GL also detail and just that reserves Doug, now? talk you Just and your about rate forward made what are guys what and the in more a wanted right

DougElliot

a question. multiple component that Yes was

would a other my let tweaks So tweaks liability we some businesses, liability, area, really product of small away through. across couple umbrellas, the to best working say across made couple me In I do years, in et general cetera. a series

Nothing but pocket, market Construction across business. any bit book. liability a book general one included of significant little largely specialty, of middle our our in

is the quarter for So we for basis tweaking that the in general liability. the did really

trends, range the loss loss broader In form think primarily lines basis our sense, two questions. you are and most single-digit we overall a for that is all in really I’m our trends your which GL that and when somewhere liability auto about combine thinking of lines about mid

now on trying of specialty top between bit they with in the lines single-digit or either talking our lines area. advancing specialty of So, top pricing our top on of on the is are a various and to our move be on small case But middle across of of specialty mid trends and - some may global about some of and access we book. slightly

with in into going I about of our pleased some specialty benefits we see beyond. in areas to like are So, double-digit had that share we the the substantial pricing XXXX I that and movement of are where pricing feel you, moves have working book we in really kind of

DavidMotemaden

Great. Thanks. down sales Chris And specifically year-over-year. top-line Got amount and decent a just for for the group on it. question a were business

wondering what next is for top-line be are few outlook over and you of more fully premium seeing specifically Aetna also earned are you would more years the sort growth competitively as integrated? what Just here

ChristopherSwift

trying rationality to of element explain our that, most I competitive is out I a Sure, exhibiting. environment David. still of is I it still that mean was there, competitors an but there see

where an balanced. but does more have something aggressive, might business account generally opportunity competitive where You new but two or someone

at delta XXXX. that say sort but really the Paid launched Family of when you So XXXX year-to-date, in really $XX compared million that between looking for numbers down, the we look year-to-date product does XXXX, would are year-over-year York to New adjust you Leave have you

down really you slightly to it flattish. So, can consider

we contributions I still in our staff side, are again sales $XX level jointly to sales think Edna's from which range that high at So from still a performing and business is referring million $XX million still that is medical some to selling.

feel performance. good the So about we overall sales

I just we since on So due lapses, in X% targeted down higher re-price comments, premiums book those actions, earned slightly are persistency primarily opening are to my your the lower as said basis, taking in to books. on Aetna a

of but modest group I top-line plan, look according and forward, benefits, in is supported our see lines So to in voluntary. growth ancillary ANH some still we as really for by everything anchored

DavidMotemaden

the for Thanks answers. Great.

Operator

have we Zaremski of Suisse. Next, Mike Credit

MikeZaremski

morning. the next it business is there I'm expect a accelerate your what are, there for sales terms seems you to direct great, big is in profitability also of from better you isolate for selling is commentary color curious, deal? then to would service. be the maybe is just - component a to it small and spectrum, potentially it easier maybe the anymore get I ultimately good to or self owners to wouldn't measure success mind businesses trying Hey gen on more just the like color changes major can

ChristopherSwift

Mike asking CSRs, Service around and would will thank brokers desktop a do yes, that you for Reps it. and with. we our start tool country agents by question of this essentially business the and is the Good I saying sit all sales Customer the on

think to customers more the would tool about, and better, make of what cetera. you tuned best It should et faster, tool are certain to optional what require, there class is SIC or customer insightful say inside be will a I types allow them All a choices, type very their good, that coverages coverages, the dynamics. help would

additional coverages the a best-in-class selling think with work tool I box of terrific for customer offers that CSR it customer to with purchase. out potential comes a with offer advice yes a So, is a will that either a or

basis the us. of is exciting innovation that So this for

go predict, carefully we It sales new and to expect And to our that years the some report hard new then yes secondly, in will will we over sales but we that and change overtime see on of lift. as do our expectations watch spectrum business couple our and is we is time. through that next

MikeZaremski

that Okay, helpful. is

loss taking notable like sounds quarter? trend. step much we there to the fair over into kind hasn't about - meaningful, a it of versus hasn't say there broader in back and that it Is commercial if been changes so pricing Lastly, gap, account it quarter-over-quarter is any changed comp if talk a cost last about and sense workers

ChristopherSwift

more question areas? area in or your is trend the loss And the pricing

MikeZaremski

little trend a moving pricing and moving both, of kind on bit is is seems it might It north be is like north.

similar So last net-net kind of quarter? to

ChristopherSwift

with parse by statement would aggregate lines, et in I think we primary agree specialty then apart Yes, it cetera. by would to by the and excess, spectrum your I have financial

as aggregate, pretty and in yes, lifting consistent the space our examined trends, middle, the in primary across QX. So see would comp we say we non-workers loss with have I pricing largely

where those time given in and inside in don’t are our there. in yes our the umbrella, material in a mindful And therefore are upward of some are trends think make But then areas a are of little book, lift social expecting way. catching uptick aggressive we our we pretty excess, of any been the lot careful we specialty sure pricing specialty bit a trends we and to our are maybe inflation has I little spending dynamic. Yes

So, with think pleased but on it progress I about have you both front, right.

MikeZaremski

much. you very Thank

Operator

Next Amit have Buckingham we Kumar of Research.

AmitKumar

rate quick going to on loss Two morning. follow ups versus trends. maybe Mike’s good And question back Thanks.

parts moving the guess all at I So small look blend and you if commercial.

the the book? your versus XXXX, trend more will trend rate does of loss metric that expand than into or running the not is expected sense harder head we we up function what As hence end is of a it loss

DougElliot

me start Chris can and go Amit So, Beth the and top. let over

We - what you about metrics XXXX you our access take for and see our and very is at look that are pleased I’m not in prepare commercial into to our across today if segments. combine

dealing profitable job I at and kind getting in think margins performance our terrific. that which across done segment, most we with nice loss is improving holding a both are have commercial rate trend, small of

mindful are meaningful areas. need commercial middle the make we more large And and change in that to we

XXXX. NAV book point at will number will as we be So, pretty coming and I number on top some that the of commentary, we feel from way in, mentioned and and I we positive, that a bit QX was upward good about at it in look there starting that through into as QX on our we because move of tide pressure earlier work all-in my will a little turning know

AmitKumar

Then Chris anyone add Okay. or on had to to that. something

ChristopherSwift

Doug think is always. I accurate Again, as

days, is it accounts states, it what add to more here all of whether products, makes perfect be when you tricks think think right everything Doug I so sense. sort granular the is up says these be I going

of know realistic My a I that to of to XX this book back specialty particular the is returns. dynamic years rate it expectation in points point targeted view of is sure. next couple you Because the don’t think get at least is that aggregate could be my for in for in environment going

to said, Navigators that taking a double-digit year multi-year going rates targeted that low where single-digit isn’t are to feeling is lot going of about And lines and cut a it journey good or specialty and just position primarily think to of require As in high same others I a particularly relates we get going in are multiple it year be to earnings I as returns. to approach. one to certain

AmitKumar

what fine Got or evolved, it. the said guess that XXXX. the you has in was the in XXish number middle question based The had call. somewhere not? still ballpark are on a we of have Are we only Chris on on Navigators one I the other is call tuned and sort for bit or last we

ChristopherSwift

But really views ranges I’m would in I And in anchor changing specific that still our the Yes. Obviously end said time. I out, I’m you put to details. are going think right not as at range. valid that not any give point we of now I the this low

AmitKumar

for the Thanks on And print. it. congrats Got answers. the

Operator

Next, Partners. we have Gary Ransom & of Dowling

GaryRansom

little bit and been a growth detect offering Can have does of a I'm the you see have out. to there and did a just on when of of own last competitors of you see Good specifically for to leapfrogging I sense follow-up do, star some while then morning, system. that little does spectrum get a of in trying is put lowering my bit you quote might duration. answered. a But your little whether want play most a volume actually their components new and with I you questions something it wondered policy and of going new how out, someone this bit else higher, other if the something, on has

ChristopherSwift

all carefully. those do We Yes, thanks Gary. statistics watch

So we yield. we able to volume quote are to watch able are watch

very quotes similar discussion I against or they the is successful put next total or So watch would say sure relative offering little buzz about the in with enhancements what spectrum bit competitors a is a rollout, what right generation there number quotes publicly marketplace, our to happening of or now. out normally we hits of and innovations I'm to

to - the I out is about optional that way script we watching are coverage my are mindful quoted even we the statistics of numbers, right, find the study easier optional But in purchases we things. think of now quotes. that. of right on right that and over expect expected will are see trajectory watching four or the quarters And we we we have to number be three so purchases we next an top I

GaryRansom

just something Is to it this out the or renewals new roll business? that will for all something is

ChristopherSwift

right Yes, new quoting we now. business are

will essentially As year, we but states the today. I states business I be in and next and couple new XX are mid-XX to by we of we deal last then with expect Gary year-end said, think

GaryRansom

much. Thank Okay. very you alright.

ChristopherSwift

you. Thank

Operator

come The next will have question Yaron Sachs. Goldman from with Kinar we

YaronKinar

commercial the making benefits. and to want I everybody. morning on on lines good development one in reserve another Hi with group going start

you think aspects So that our some both have prior just recent are and pricing and picks talk dynamic seen of below increasing prior comfortable more in in come years? of in is kind with about bit that the you with considering I the years most initial years how your the have an reserve a the we and for you development there that fact years. have in Can liability that commercial for aspects picks maybe you picks has auto offset achieved recent it initial general weaker recent

DougElliot

and years, Beth have me say pricing work Let top. past we the would then six the over both working and plus start can underwriting. I over been

adjusting been classes, offerings grouped accounts, with cetera. the marketplace, our have So monocline et in across other we

different multiple options So we that working. been have

with disclosing I picks months, we in that year general, think at over that the our at I picks have made have would line, we In reason our you and (Ph) trend if in six, to [XM] agree been last nice which our of we job XX look light prior supplement. on our adjustments seven is the that a do those you years

expected, side. the we So year that and obviously the we punch get didn't than on that has higher expected is been underwriting we disappointment last the

middle small of vehicle to down class discussion specialty I with vans separate some again. continue doubling market primarily area. And progress we of the now, or some whether with think I by heavier so this passenger light make and are talking are or commercial private we we would

success underwriting. And have addressed But the Beth. anything thereof on is is is harder. marketplace. overall need And that I book, levels why dive tried when like very than have we here, think the it do even to in the to our don’t we not also what we different new both just think that there is I are and we something on reserve our see

BethCostello

that very Doug. it well summarizes I think

YaronKinar

some recovery of version your the And expect then claims or the back vintages, I do into is experience for recent continue, group in baked that of on mean? Thanks. today you Okay. you that that seen the estimate you benefit side, expect have as kind

DougElliot

periodically what obviously I You statistic is this that would say views update know our and quarter. Yaron we we that did

that book on. reflects best on So, of our and views going essence we forward trends product price reserves that in

it is our best So, from here. thinking

centric somewhat and/or recoveries we always changes talked have Now, is incidence related. about in it, employment

don’t as our said the as accordingly. to it system we So I out just big have world as there reevaluate assumptions and our have a dynamic when would here long hold, shocks estimates into expect would have is but we any I change, we things to and change

YaronKinar

so Got thanks it. Thanks much. And sneaking in. for me

Operator

would time like now conference any closing Susan is remarks. call we Spivak over questions-and-answer today’s the session. for That back have to all I to turn the for

Susan Spivak

all call. time not appreciate joining the as reach please follow-up you. didn’t Please if you just your to We get we give as us and if to do question. well I’m on, within your hesitate question out me period, you so Thank available any have a

Operator

lines. may you this your is everyone. The thank you again all conference today’s concluded. disconnect time We now for attending you At presentation. Thank call