Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Sarah, you mentioned the group expense ratio would have been 27.8% instead of 28.8%. Is 27.8% a good number to expect going forward? A: I would say that 27.8% is a reasonable expectation, rounding up to 28%. We've never been super specific on that dollar amount, but that's the right area to think about.
Q: With the extended tail issues in other liability occurrence and product liability, what gives you confidence that these won't affect the 2023 or 2024 accident years? Is your pricing sufficient to account for that tail impact? A: The changes in assumptions were driven by severity and reported losses, leading us to increase loss development and trend assumptions by approximately 25% across major segments. Frequency was not the issue, and we see meaningful redundancy in the 2024 year. We have not taken credit for underwriting improvements yet, despite promising early indications.
Q: Can you provide a perspective on what you're assuming for casualty trend in your reserves and pricing? A: We have a high single-digit view of loss trend for 2024. We're finalizing our budget for 2025 and will refresh that view in a couple of months. Certain lines, particularly excess casualty, will be higher.
Q: Has the Specialty Admitted business been affected by recent developments, like the agreement with State National? A: We've had steady premium growth, with 9% growth in the fronting business in Q3 and 14% year-to-date. We continue to see solid growth from existing programs and have a pipeline of new opportunities. We remain cautious with security and unrated reinsurance.
Q: Is there any concern with Enstar's involvement in a merger affecting your agreement with them? A: No, it's not a concern. Our deal should close shortly, pending regulatory approval, with no specific contingencies related to Enstar's situation.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.