Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Are you still assuming a 6% catastrophe load in the combined ratio guidance, and what is the expected expense ratio target? A: Yes, we are assuming a roughly 6% catastrophe load for next year, as 2024 was exceptionally light for catastrophes. We expect a decrease in our expense ratio to approximately 28% due to a substantial increase in earned premium. (Respondent: Unidentified_1)
Q: How is the business growth going according to plan, and how are quotes and binds performing? A: It's hard to say if growth is going according to plan due to unprecedented circumstances. However, we are proud of maintaining service and underwriting standards. We have a high conversion rate from companies exiting the market, indicating competitive pricing. (Respondent: Unidentified_1)
Q: Can you discuss the impact of the third company withdrawing from the market and the size of the premium opportunity? A: The company, AMG, a Berkshire Hathaway entity, is withdrawing from the homeowners market nationally. They grew rapidly in New York, and we are confident in our pricing to capture this opportunity. (Respondent: Unidentified_1)
Q: What are the primary differences between the Select product and the legacy book? A: The Select product is a by-peril rated product using Kingstone and industry data for pricing, with insurance score used in pricing and underwriting. It shows better frequency results compared to the legacy product. (Respondent: Unidentified_1)
Q: How are you addressing the potential dilution from the share sale to pay down debt? A: We aim to balance quota share, stock issuance, and dividends to pay down debt quickly and maximize earnings. However, we cannot provide an exact number of shares to be sold at this time. (Respondent: Unidentified_1)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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