Core Viewpoint - Skyward Specialty Insurance (SKWD) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is primarily based on a company's changing earnings picture, with the Zacks Consensus Estimate tracking EPS estimates from sell-side analysts [2]. - The Zacks rating upgrade for Skyward reflects an improvement in its earnings outlook, which is expected to lead to increased buying pressure and a rise in stock price [4][6]. Impact of Earnings Estimates on Stock Prices - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [5]. - Institutional investors often rely on earnings estimates to determine the fair value of a company's shares, leading to significant stock price movements based on their buying or selling activities [5]. Recent Performance and Projections - Skyward is projected to earn $3.52 per share for the fiscal year ending December 2025, representing a year-over-year increase of 15% [9]. - Over the past three months, the Zacks Consensus Estimate for Skyward has increased by 3.3%, indicating a positive trend in earnings estimates [9]. Zacks Rating System Overview - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of Skyward to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [11].

Core Insights - Skyward Specialty Insurance Group has appointed Corey LaFlamme as President of Captives & Specialty Programs to enhance growth in a rapidly expanding segment of the specialty market [1][4] - Kirby Hill, previously instrumental in developing the Captives & Specialty Programs divisions, will now serve as Chairman, focusing on business development and strategic matters [2][4] - LaFlamme brings over 20 years of experience from The Hartford, where he was Head of Programs, known for building strong relationships and driving innovation [3][4] Company Overview - Skyward Specialty is a growing specialty insurance company offering commercial property and casualty products through eight underwriting divisions, including Captives, Construction & Energy Solutions, and Professional Lines [5] - The company's subsidiary insurance companies are rated A (Excellent) with a stable outlook by A.M. Best Company, indicating strong financial health [6]

[Part I - Financial Information](index=4&type=section&id=Part%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for Q1 2025 show total assets of $4.03 billion and net income of $42.1 million [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased to $4.03 billion, total liabilities rose to $3.18 billion, and stockholders' equity grew to $850.7 million Condensed Consolidated Balance Sheet Highlights (Unaudited) | ($ in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$4,030,633** | **$3,729,478** | | Total Investments | $1,993,390 | $1,870,820 | | Premiums receivable, net | $417,542 | $321,641 | | **Total Liabilities** | **$3,179,912** | **$2,935,479** | | Reserves for losses and LAE | $1,871,491 | $1,782,383 | | Unearned premiums | $708,347 | $637,185 | | **Total Stockholders' Equity** | **$850,721** | **$793,999** | [Condensed Consolidated Statements of Operations and Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Net income for Q1 2025 increased to $42.1 million, driven by a 27.1% rise in net earned premiums, with diluted EPS at $1.01 and comprehensive income at $54.1 million Q1 2025 vs Q1 2024 Performance (Unaudited) | ($ in thousands, except per share data) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net earned premiums | $300,366 | $236,342 | | Total revenues | $328,527 | $264,968 | | Income before income taxes | $51,435 | $46,977 | | **Net income** | **$42,058** | **$36,784** | | **Diluted earnings per share** | **$1.01** | **$0.90** | | Comprehensive income | $54,131 | $30,458 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was $96.8 million in Q1 2025, while investing activities used $100.8 million, resulting in a net decrease in cash of $4.0 million Cash Flow Summary (Unaudited) | ($ in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $96,760 | $94,265 | | Net cash used in investment activities | ($100,779) | ($69,866) | | Net cash (used in) provided by financing activities | $0 | ($9,466) | | **Net (decrease) increase in cash** | **($4,019)** | **$14,933** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, the $2.0 billion investment portfolio, single segment operations, $535.3 million in gross written premiums, and an 18.2% effective tax rate - The company's investment portfolio is primarily composed of fixed maturity securities, with available-for-sale securities valued at **$1.40 billion** and held-to-maturity at **$37.5 million** as of March 31, 2025[19](index=19&type=chunk)[10](index=10&type=chunk) - The company operates as a single reportable segment, offering a broad array of commercial property and casualty products, with the Chief Executive Officer identified as the Chief Operating Decision Maker (CODM)[55](index=55&type=chunk) Gross Written Premiums by Underwriting Division (Q1 2025 vs Q1 2024) | ($ in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Accident & Health | $63,169 | $40,901 | | Agriculture and Credit (Re)insurance | $87,847 | $43,321 | | Captives | $68,401 | $68,408 | | Construction & Energy Solutions | $75,571 | $74,222 | | Global Property | $46,686 | $57,312 | | **Total continuing business** | **$535,319** | **$458,655** | - The effective tax rate for Q1 2025 was **18.2%**, down from **21.7%** in Q1 2024, primarily due to a **3.9%** reduction from tax benefits related to stock-based compensation[61](index=61&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, noting 16.7% gross written premium growth to $535.3 million, a 90.5% combined ratio, $19.3 million net investment income, and a 12.3% debt-to-capitalization ratio [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Q1 2025 net income reached $42.1 million with gross written premiums growing 16.7% to $535.3 million, resulting in a combined ratio of 90.5% and annualized return on equity of 20.5% Key Performance Metrics (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Gross written premiums ($M) | $535.3 | $458.6 | | Net income ($M) | $42.1 | $36.8 | | Loss and LAE ratio | 62.4% | 60.9% | | Expense ratio | 28.1% | 28.7% | | **Combined ratio** | **90.5%** | **89.6%** | | Annualized return on equity | 20.5% | 21.7% | [Underwriting Results](index=31&type=section&id=Underwriting%20Results) Gross written premiums grew 16.7% driven by key divisions, while the loss ratio increased to 62.4% due to higher catastrophe losses, and the expense ratio improved to 28.1% - The increase in gross written premiums was driven by double-digit growth in the agriculture and credit (re)insurance, accident & health, and specialty programs divisions[91](index=91&type=chunk) - The loss ratio increased by **1.5 points** to **62.4%** due to higher catastrophe losses (**$6.5 million** in Q1 2025 vs **$1.0 million** in Q1 2024), while the non-catastrophe loss ratio improved due to a business mix shift[94](index=94&type=chunk) - The expense ratio improved by **0.6 points** to **28.1%** due to earnings leverage, which was partially offset by higher acquisition costs from the shift in business mix[95](index=95&type=chunk) [Investment Results and Portfolio](index=33&type=section&id=Investment%20Results%20and%20Portfolio) Net investment income increased to $19.3 million in Q1 2025, with the total investment portfolio growing to $2.11 billion, primarily in fixed income with an 'A+' rating Net Investment Income Components (Q1 2025 vs Q1 2024) | ($ in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Fixed income | $16,730 | $12,478 | | Short-term investments & cash | $4,041 | $5,088 | | Equities | $657 | $627 | | Alternative and strategic investments | ($2,097) | $104 | | **Net investment income** | **$19,331** | **$18,297** | - The fixed income portfolio's weighted average credit rating was **'A+'** as of March 31, 2025, with an average duration of **4.29 years**[101](index=101&type=chunk)[102](index=102&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) Operating activities provided $96.8 million in cash, with a total debt-to-capitalization ratio of 12.3% and a $50 million share repurchase program approved but not yet utilized - The ratio of total debt outstanding to total capitalization was **12.3%** at March 31, 2025, down from **13.1%** at December 31, 2024[119](index=119&type=chunk) - In October 2024, the Board approved a **$50.0 million** share repurchase program, but as of March 31, 2025, no shares had been repurchased under this plan[120](index=120&type=chunk) - The company's net retention on a written premium basis was **64.1%** for Q1 2025, compared to **62.6%** for the same period in 2024[123](index=123&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes in market risk from the information provided in the 2024 Form 10-K - There have been no material changes in market risk from the disclosures in the 2024 Form 10-K[127](index=127&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were ineffective due to a material weakness in ITGCs for user access, though remediation is underway and financial statements are fairly presented - A material weakness in internal control over financial reporting related to IT general controls (ITGCs) for user access still exists as of March 31, 2025[129](index=129&type=chunk) - Remediation activities are in process, including reviewing and enhancing access controls, strengthening procedures, and providing employee training[130](index=130&type=chunk) - Despite the material weakness, the CEO and CFO concluded that the financial statements included in the Form 10-Q fairly present the company's financial condition, results of operations, and cash flows[129](index=129&type=chunk) [Part II - Other Information](index=39&type=section&id=Part%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings not expected to materially affect its financial position - The company is involved in ordinary course legal proceedings but does not expect them to have a material adverse effect on its financial position[135](index=135&type=chunk) [Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) The company updated its cybersecurity risk factor due to a recent data incident, which is under investigation but currently deemed immaterial - The company updated its cybersecurity risk factor to disclose a recent data incident where attackers acquired certain company data[138](index=138&type=chunk) - The company is still investigating the incident but currently believes the breach is immaterial in nature[138](index=138&type=chunk) [Other Information](index=41&type=section&id=Item%205.%20Other%20Information) During the quarter, CEO Andrew Robinson modified his Rule 10b5-1 trading plan, and CFO Mark Haushill entered into a new Rule 10b5-1 trading plan for the sale of company common stock - CEO Andrew Robinson modified his Rule 10b5-1 trading plan on March 6, 2025, changing the start date of a sales tranche[144](index=144&type=chunk) - CFO Mark Haushill entered into a new Rule 10b5-1 trading plan on March 12, 2025, for the potential sale of up to **75,000 shares** between June 2025 and March 2026[145](index=145&type=chunk)[146](index=146&type=chunk)

Company Overview - Skyward Specialty Insurance (SKWD) currently holds a Momentum Style Score of B, indicating potential for strong performance in the momentum investing strategy [3][12] - The company has a Zacks Rank of 2 (Buy), which is associated with a strong track record of outperformance in the market [4][12] Price Performance - SKWD shares have increased by 12.62% over the past week, outperforming the Zacks Insurance - Property and Casualty industry, which rose by 3.18% during the same period [6] - Over the last month, SKWD's price change is 23.72%, significantly higher than the industry's 10.76% [6] - In the past quarter, SKWD shares have risen by 21.59%, and over the last year, they have increased by 57.87%, while the S&P 500 has moved -6.46% and 11.69%, respectively [7] Trading Volume - The average 20-day trading volume for SKWD is 406,812 shares, which serves as a useful indicator for assessing price movements [8] Earnings Estimates - In the last two months, 4 earnings estimates for SKWD have been revised upwards, while 1 estimate was revised downwards, leading to an increase in the consensus estimate from $3.45 to $3.50 [10] - For the next fiscal year, there have also been 4 upward revisions and 1 downward revision in earnings estimates [10]

Financial Data and Key Metrics Changes - The company reported net income of $42 million and adjusted operating income of $37.3 million, with adjusted operating income of 90¢ per diluted share, marking the best reported metrics in company history [5][8] - Gross written premiums grew by 17% for the quarter, while net written premiums increased by 20%, with a net retention rate of 64.1%, up from 62.6% the previous year [8][9] - The first quarter combined ratio was 90.5%, including 2.2 points of catastrophe losses, with a non-cat loss ratio of 60.2%, the best in company history [9][10] Business Line Data and Key Metrics Changes - The A and H division and global agriculture unit showed extraordinary growth, contributing significantly to overall growth, while transactional E and S, surety, and specialty programs also contributed positively [6][15] - The newly added agriculture and credit insurance and reinsurance division accounted for 16% of gross written premiums, expected to stabilize at 10% to 12% for the full year [9] - The expense ratio improved to 28.1%, with expectations to maintain a sub-30% target for the year [10][11] Market Data and Key Metrics Changes - The company experienced a decrease in global property premiums but maintained a strong account retention rate of over 95% [19] - Bid bond requests in the surety segment increased by 19% year-over-year, indicating robust demand despite a reduction in bonding activity for federal contractors [21] - Submission growth was strong, with a 59% increase in RFP submission count for the Accident and Health division year-over-year [72] Company Strategy and Development Direction - The company is focused on diversifying its portfolio and reallocating capital to underwriting units that offer the greatest returns, particularly in high-return areas less exposed to property and casualty cycles [6][15] - The strategy includes leveraging technology and talent, particularly in the use of AI and predictive analytics for risk selection and pricing [18] - The company aims to continue generating top quartile returns across market cycles, emphasizing the importance of underwriting discipline [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to grow earnings in agriculture and accident health divisions, highlighting unique solutions and strong demand [15][16] - The company is monitoring various economic factors, including tariffs and federal funding reductions, which may impact loss cost trends and overall market conditions [29][34] - Management remains optimistic about maintaining strong underwriting returns despite potential market softening, with a focus on durable business relationships [96][98] Other Important Information - The company reported a net investment income of $19.3 million for the quarter, with an embedded yield of 5.2% [11][12] - The effective tax rate for the quarter was 18.2%, expected to be between 21-22% for the full year [12][13] - The company is addressing a material weakness in IT controls, with new procedures being implemented [13] Q&A Session Summary Question: Growth opportunities in agriculture and credit insurance - Management highlighted the hiring of industry veteran James Tran to lead agriculture efforts, with a focus on a diversified global portfolio [25][26] Question: Loss cost trends and tariffs - Management indicated that the overall loss cost trend is estimated to be in the 5-6% range, with efforts to limit exposure to high inflation categories [30][31] Question: Seasonality of growth in crop and A&H - Management noted that the first quarter typically sees high growth due to significant renewals, with expectations for lower growth in the second quarter [42][44] Question: Favorable emergence in reserves - Management reported favorable emergence in accident years 2020 and after, particularly in MAT, property surety, and professional liability [47][48] Question: Government-related business size - Management indicated that government-related business accounts for approximately $20 million of the book, with a focus on federal contractors [73][74] Question: Submission growth and quality - Management confirmed strong submission growth, particularly in E and S, with a notable increase in RFP submissions for A&H [68][72] Question: Hiring climate and strategy - Management is evaluating hiring plans based on business performance, proceeding cautiously in uncertain market conditions [109][110]

Financial Data and Key Metrics Changes - The company reported a net income of $42 million and adjusted operating income of $37.3 million, with adjusted operating income of $0.90 per diluted share, marking the best performance in company history [4][6]. - Gross written premiums grew by 17% for the quarter, while net written premiums increased by 20%, with a net retention rate of 64.1%, up from 62.6% the previous year [6][7]. - The first quarter combined ratio was 90.5%, including 2.2 points of catastrophe losses, with a non-cat loss ratio of 60.2%, the best in company history [7][8]. Business Line Data and Key Metrics Changes - The Agriculture and Health division and the global agriculture unit showed extraordinary growth, contributing significantly to overall growth [5][13]. - The newly added agriculture and credit insurance and reinsurance division accounted for 16% of gross written premiums, expected to stabilize at 10% to 12% for the full year [7][11]. - Transactional E&S, surety, and specialty programs also contributed positively to growth, with double-digit growth reported in these areas [19][22]. Market Data and Key Metrics Changes - The company observed a decrease in global property premiums but maintained a strong account retention rate of over 95% [18][22]. - Bid bond requests increased by 19% year-over-year, indicating robust demand despite a reduction in bonding activity for federal contractors [20][22]. - The company noted a competitive environment with increasing submission activity, particularly in the E&S area, where submissions were materially above 20% [64][66]. Company Strategy and Development Direction - The company emphasizes a diversified portfolio and the ability to adapt quickly to market conditions, focusing on high-return areas less exposed to property and casualty cycles [13][14]. - The strategy includes leveraging technology and talent, particularly in the agriculture and health sectors, to drive growth and maintain competitive advantages [16][17]. - The company aims to continue generating top quartile returns across market cycles, supported by strong underwriting results and consistent earnings growth [23]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to grow earnings in the agriculture unit, citing favorable market conditions and unique solutions developed for clients [13][14]. - The company is monitoring various economic factors, including tariffs and federal funding reductions, which could impact loss cost trends and overall performance [30][34]. - Management remains cautious but optimistic about the future, expecting to deliver mid-teens growth despite economic uncertainties [45][46]. Other Important Information - The company reported a net investment income of $19.3 million, with an embedded yield of 5.2% as of March 31 [9][10]. - The effective tax rate for the quarter was 18.2%, lower than the previous year, with expectations for a full-year rate between 21-22% [10][11]. - The company is addressing material weaknesses in IT controls, with new procedures being implemented to ensure compliance [11]. Q&A Session Summary Question: Growth opportunities in agriculture and credit insurance - Management highlighted the hiring of industry veteran James Tran to lead the agriculture unit, which is active in multiple countries and has significant treaty opportunities lined up for Q3 [25][27]. Question: Loss cost trends and tariffs - Management indicated that the overall loss cost trend is estimated to be in the 5-6% range, with efforts to limit exposure to high inflation categories [30][31]. Question: Seasonality of growth in crop and A&H - Management noted that the first quarter typically shows high growth due to significant renewals, with expectations for lower growth in the second quarter [42][44]. Question: Favorable emergence in reserves - Management reported favorable emergence in accident years 2020 and after, particularly in MAT, property surety, and professional liability [46][47]. Question: Government-related business size - Management indicated that government-related business constitutes about $20 million of their book, with a focus on private and public-private contracts [69]. Question: Submission growth and quality - Management confirmed strong submission growth, particularly in E&S, with a notable increase in RFP submissions for A&H, indicating a compelling market proposition [68][66]. Question: Hiring climate and strategy - Management is evaluating hiring plans based on business performance, proceeding cautiously in uncertain market conditions [102][104].

Skyward Specialty Insurance (SKWD) reported $328.53 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 24%. EPS of $0.90 for the same period compares to $0.75 a year ago.The reported revenue represents a surprise of +5.51% over the Zacks Consensus Estimate of $311.37 million. With the consensus EPS estimate being $0.78, the EPS surprise was +15.38%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectat ...

Core Insights - Skyward Specialty Insurance (SKWD) reported quarterly earnings of $0.90 per share, exceeding the Zacks Consensus Estimate of $0.78 per share, and up from $0.75 per share a year ago [1][2] - The company achieved revenues of $328.53 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.51%, compared to $264.97 million in the same quarter last year [3] - Skyward has consistently outperformed consensus EPS estimates over the last four quarters, with a 15.38% earnings surprise this quarter [2][3] Earnings Performance - The earnings surprise of 15.38% this quarter follows a previous surprise of 3.90% when the company reported earnings of $0.80 per share against an expectation of $0.77 [2] - The company has surpassed consensus revenue estimates three times in the last four quarters [3] Stock Performance - Skyward shares have increased approximately 5.1% since the beginning of the year, contrasting with a decline of -5.3% in the S&P 500 [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.86 on revenues of $325.61 million, and for the current fiscal year, it is $3.42 on revenues of $1.32 billion [8] - The outlook for the industry, particularly the Insurance - Property and Casualty sector, is favorable, ranking in the top 15% of over 250 Zacks industries [9] Industry Context - American Financial Group (AFG), another company in the same industry, is expected to report quarterly earnings of $2.17 per share, reflecting a year-over-year decline of -21.4% [10] - AFG's anticipated revenues are projected to be $1.94 billion, which is a 2.9% increase from the previous year [11]

Exhibit 99.1 Skyward Specialty Insurance Group Reports First Quarter 2025 Results Houston, TX – May 1, 2025 – Skyward Specialty Insurance Group, Inc. (Nasdaq: SKWD) ("Skyward Specialty" or the "Company") today reported first quarter 2025 net income of $42.1 million, or $1.01 per diluted share, compared to $36.8 million, or $0.90 per diluted share, for the same 2024 period. Adjusted operating income for the first quarter of 2025 was $37.3 million, or $0.90 per diluted share, compared to $31.0 million, or $0. ...

Core Viewpoint - Skyward Specialty Insurance Group reported strong financial results for the first quarter of 2025, with significant increases in net income and adjusted operating income compared to the same period in 2024, highlighting the company's growth and diversified business strategy [1][2]. Financial Performance - Net income for Q1 2025 was $42.1 million, or $1.01 per diluted share, up from $36.8 million, or $0.90 per diluted share in Q1 2024, representing a 14.3% increase in net income [1][21]. - Adjusted operating income for Q1 2025 was $37.3 million, or $0.90 per diluted share, compared to $31.0 million, or $0.75 per diluted share in Q1 2024, marking a 20.2% increase [1][21]. Underwriting Results - Gross written premiums reached $535.3 million, a 16.7% increase from $458.6 million in Q1 2024 [3][28]. - Net written premiums were $343.3 million, up 19.6% from $287.1 million in the same period last year [3][28]. - The combined ratio for Q1 2025 was 90.5%, slightly higher than 89.6% in Q1 2024, with a 2.2% contribution from catastrophe losses [7][21]. Investment Performance - Net investment income increased to $19.3 million in Q1 2025 from $18.3 million in Q1 2024, driven by higher yields from the fixed income portfolio [9][10]. - Net unrealized gains on securities held were $5.5 million, down from $9.0 million in the previous year [9][10]. Equity and Book Value - Stockholders' equity rose to $850.7 million as of March 31, 2025, a 7.1% increase from $794.0 million at the end of 2024 [11][19]. - Book value per share increased by 6% to $21.06 compared to $19.79 at the end of 2024 [5][21]. Business Segments - The agriculture and credit (re)insurance division saw a significant growth of 102.8%, while the accident & health division grew by 54.4% [28]. - The global property division experienced a decline of 18.5% in gross written premiums [28]. Strategic Outlook - The company remains confident in its diversified business portfolio and strategic initiatives aimed at growth in less exposed areas of the property and casualty market [2][5].