AMERISAFE (NasdaqGS:AMSF) Q4 2025 Earnings call February 26, 2026 10:30 AM ET Company ParticipantsJanelle Frost - President and CEOKathryn Shirley - EVP, Chief Administrative Officer and SecretaryVincent J. Gagliano - EVP and Chief Risk OfficerConference Call ParticipantsMark Hughes - Director and Equity Research AnalystMatt Carletti - Managing Director and Equity Research AnalystRobert Farnam - Equity Research AnalystOperatorGood day. Welcome to AMERISAFE's Fourth Quarter 2025 earnings call. Today's confer ...

Baleen: GWP increased 47% from the third quarter to more than $9.1 million in the fourth quarter. For the full year, Baleen generated over $21 million.Healthcare liability: GWP increased about 8% in the fourth quarter to $34 million and 14% for the full year to $116 million, driven by healthcare management liability and senior care. Sills noted the hospitals portfolio grew while the company reduced total limits deployed.Professional liability: GWP increased about 4% in the fourth quarter to $48 million and ...

Core Insights - Fairfax Financial Holdings Limited reported record net earnings of $4,772.4 million for the fiscal year 2025, translating to $213.78 per diluted share, a significant increase from $3,874.9 million ($160.56 per diluted share) in 2024, marking a year-over-year growth of 23.1% in net earnings [1][2][7] - The company achieved a consolidated combined ratio of 93.0%, indicating strong underwriting performance across its insurance and reinsurance segments, with a record underwriting profit of $1.8 billion [2][7] - Investment performance was robust, yielding net gains on investments of $3.2 billion, primarily driven by gains on common stocks and bonds, alongside record interest and dividend income of $2.6 billion [3][10] Financial Performance - Net premiums written in the property and casualty insurance and reinsurance operations rose by 3.9% to $26.6 billion, while gross premiums written increased by 2.3% to $33.6 billion, reflecting growth in new business and modest rate increases [2][7] - The adjusted operating income for property and casualty insurance and reinsurance operations slightly decreased by 2.8% to $4.6 billion, impacted by a reduced share of profit from associates [9] - The company’s float increased by 11.2% to $39.3 billion as of December 31, 2025, compared to $35.4 billion in 2024 [9] Investment and Shareholder Actions - During 2025, the company repurchased 1,006,535 subordinate voting shares for cancellation at a total cost of $1.6 billion, averaging $1,615 per share [3][14] - The total debt to total capital ratio, excluding non-insurance companies, rose to 26.2% from 24.8% in the previous year, primarily due to new unsecured senior notes issued [14] - The company redeemed all of its Series E, F, G, H, I, J, and M preferred shares, resulting in a gain of $187.1 million recognized in the consolidated statement of changes in equity [14] Segment Performance - The property and casualty insurance and reinsurance operations reported an underwriting profit of $1.8 billion, up from $1.79 billion in 2024, with a combined ratio improvement from 92.7% to 93.0% [7][9] - The life insurance and run-off operations experienced an operating loss of $213.7 million, worsening from a loss of $92.1 million in 2024, mainly due to higher adverse prior year reserve developments [9][14] - The non-insurance companies reported increased operating income of $397.4 million, up from $241.4 million in 2024, largely due to the consolidation of Peak Achievement and the acquisition of Sleep Country [14]

Core Insights - The Hanover Insurance Group reported a record net income of $198.5 million in Q4 2025, an 18.2% increase from $167.9 million in Q4 2024 [1] - For the full year 2025, net income reached $662.5 million, a significant 55.5% increase from $426 million in 2024 [3] Financial Performance - Operating income for Q4 2025 was $210.1 million, an 8% increase from $194.6 million in Q4 2024 [2] - The company generated net premiums written of $1.49 billion in Q4 2025, up 3% from $1.45 billion [2] - Net premiums earned totaled $1.56 billion in Q4 2025, marking a 3% increase from $1.51 billion [2] - For the full year, net premiums written increased 3.9% to $6.32 billion from $6.1 billion, while net premiums earned rose 4.2% to $6.16 billion from $5.91 billion [4] Combined Ratio and Loss Ratios - The combined ratio improved to 89% in Q4 2025 from 89.2%, supported by a lower expense ratio of 31.8% compared to 32.3% [3] - The current accident year loss and loss adjustment expense (LAE) ratio was 56.8% in Q4 2025, slightly down from 56.9% [3] - For the full year, the combined ratio improved to 91.6% from 94.8%, with a loss and LAE ratio of 60.5%, 3.0 points below the prior year [5] Investment Income - Net investment income rose 24.9% to $125.8 million in Q4 2025 and increased 22% to $454.4 million for the full year [3][5] Strategic Positioning - The company achieved a record annual operating return on equity of 20.1% and 23.1% in Q4 2025 [6] - The Hanover's market position in Personal Lines is strong, with approximately 89% of customers holding multiple policies, enhancing retention [6] - The company continues to see attractive opportunities in the small-to-middle-market account segment in Core Commercial [6] Shareholder Returns - The company raised its quarterly dividend by 5.6% to $0.95 per share, marking the 21st consecutive annual increase [7] - A total of $130 million in shares was repurchased over the year, reflecting a balanced, shareholder-focused capital management strategy [7]

Core Insights - RLI Insurance Company has reduced its catastrophe reinsurance limit by $150 million for 2026, indicating lower exposure and a soft market environment described as a "buyer's market" for property [1][2] - The company achieved a 15%–20% rate reduction on its catastrophe program and modest pricing relief on property working layers during the January renewals [2] - The competitive environment has led to a modest premium growth for RLI, with casualty rates down around 5% [3] Financial Performance - RLI reported underwriting income of $70.9 million for Q4 2025, with a combined ratio (CoR) of 82.6%, an improvement from $22.2 million and 94.4% in Q4 2024 [5] - For the full year, RLI posted underwriting income of $264.2 million and a CoR of 83.6%, compared to $210.7 million and 86.2% in 2024 [6] - The favorable results for both periods were supported by prior-year loss reserve development, contributing a net $87.4 million to underwriting income in 2025 and $84.1 million in 2024 [6] Strategic Approach - The company remains open to midterm market opportunities, reflecting a cautious yet flexible approach to risk management [3][5] - RLI emphasizes the importance of sustainable growth over rapid expansion, focusing on long-term decision-making [4] - The firm maintains a diversified specialty portfolio and a strong balance sheet, providing confidence in navigating market conditions [5]

Core Insights - The US property and casualty (P&C) insurance sector is projected to maintain strong underwriting profitability through 2026, despite challenges such as social inflation, slow economic growth, and increasing competition [1] Industry Outlook - Fitch Ratings has issued a 'neutral' sector outlook for 2026, following a strong performance in 2025, which was aided by a benign hurricane season and favorable reserve development [2] - The combined ratio is expected to rise to 96%-97% in 2026 from a projected 94% in 2025, indicating a return to more normalized conditions [2] Financial Performance - The adjusted industry return on surplus is anticipated to decrease from 10.1% in 2025 to 9.1% in 2026, with net investment income facing modest pressure as interest rates decline [3] - The net written premiums to policyholder surplus ratio is estimated at 0.8x for year-end 2025, indicating a stable capital position [10] Market Dynamics - Pricing in commercial lines is moderating to low single-digit percentage increases, while personal auto rates have slowed after 30 consecutive quarters of double-digit increases [5][6] - Renewal premium rates are still increasing in underperforming segments like commercial automobile and excess liability, while the property market is entering a softening phase [7] Claims and Legal Environment - Reserve adequacy remains a concern, particularly in longer tail casualty lines, due to large settlements and litigation abuse impacting claims severity [4] - The industry faces headwinds from increasing competition, geopolitical uncertainty, and a challenging legal environment, which may test pricing discipline and claims management [3] Reinsurance Market - Primary insurers are expected to benefit from softening reinsurance rates in 2026, although reinsurers are likely to maintain steady terms and conditions [8] M&A Activity - The excess capital and easing interest rates are projected to drive an increase in M&A activity in 2026, as insurers seek to diversify or exit underperforming lines [10]

Core Insights - Munich Re has set a financial target of €6.3 billion in IFRS net profit for 2026, indicating strong operational performance across all business segments [1] - The company's Ambition 2030 strategy aims for a total payout ratio exceeding 80% annually and a solvency ratio above 200% [1] - Insurance revenue is projected to reach €64 billion by 2026, with a return on investment expected to surpass 3.5% [1] Reinsurance Segment - Munich Re anticipates a net profit of €5.4 billion in the reinsurance sector for 2026 [2] - The combined ratio for property-casualty reinsurance is estimated at 80%, while Global Specialty Insurance aims for a combined ratio of 90% [2] - In life and health reinsurance, a technical result of €1.9 billion is expected for 2026 [2] ERGO Segment - Within the ERGO segment, a segment result of €900 million is forecasted for 2026 [3] - The expected combined ratios are 89% for both ERGO Germany and ERGO International [3] Recent Financial Performance - Munich Re reported a net result of €1.9 billion in Q3 2025, up from €907 million in the same quarter the previous year [3] - The technical result increased to €2.8 billion from €1.69 billion, while the operating result rose to €3.03 billion from €1.16 billion year-over-year [3] - For the first nine months of 2025, net profit was €5.1 billion, compared to €4.6 billion in the same period the previous year [3][4] Cumulative Contributions - The cumulative contribution from the reinsurance segment reached €4.3 billion for the first nine months of 2025, compared to €3.9 billion in the previous year [4]

Core Insights - HCI Group reported Q3 CY2025 revenue of $216.4 million, a 23.4% year-on-year increase, but fell short of Wall Street's expectations of $224.7 million, resulting in a 3.7% miss [5] - The company's GAAP earnings per share (EPS) were $4.90, significantly exceeding analyst estimates of $2.38 [5] - HCI Group's market capitalization stands at $2.53 billion [5] Revenue and Profit Performance - Revenue growth was attributed to operational leverage within the insurance business, a lower loss ratio, and disciplined expense management [2] - The loss ratio improved to 22%, down from an adjusted 25% in the previous year, benefiting from lower claims frequency and stable weather conditions [6] Operational Highlights - The company added 47,000 new policies from Citizens Property Insurance, representing $175 million in in-force premium, enhancing scale in core markets [6] - Exzeo, HCI's insurance technology platform, onboarded its first non-HCI-controlled carrier, diversifying revenue streams [6] - The Greenleaf Capital division achieved full occupancy at its Tampa campus and acquired a new property in Pinellas County, Florida, contributing to recurring rental income [6] Future Outlook - HCI Group's forward guidance is influenced by the completion of Exzeo's IPO, continued insurance portfolio expansion, and a strengthened balance sheet [3] - The Exzeo IPO raised $155 million, with HCI retaining a majority stake, expected to increase book value per share and provide capital for future growth initiatives [6]

Core Insights - Brennan Patrick Sean, the Executive Vice President and CFO of Selective Insurance Group, purchased 2,700 shares valued at approximately $205,700 on October 24, 2025, increasing his direct ownership to 17,948 shares, valued at around $1.39 million [1][2][3] Transaction Summary - The transaction involved 2,700 shares traded at a price of $76.17 per share, resulting in a total transaction value of approximately $205,700 [2] - Post-transaction, Sean's direct ownership represents about 0.03% of the outstanding shares [3] Historical Activity - Between October 3, 2024, and October 24, 2025, Sean completed four reportable transactions, all net purchases, accumulating an additional 5,700 shares, which is a 46.54% increase in direct holdings over that period [4] Market Context - The shares were purchased at approximately $76.17, which is about 0.7% above the market price of $75.61 as of October 28, 2025. The shares have seen a total return decline of 16.0% over the year ending October 28, 2025 [5] Company Overview - Selective Insurance Group reported a total revenue of $5.22 billion and a net income of $406.67 million for the trailing twelve months (TTM) [7] - The company has a dividend yield of 1.65% and experienced a 1-year price change of -15.95% as of October 24, 2025 [7] Business Operations - Selective Insurance Group provides property, casualty, and flood insurance products, along with investment management services, targeting commercial, personal, and excess & surplus lines [8][9] - The company generates revenue primarily from insurance premiums and investment income from its portfolio [8] Recent Performance - In the third quarter of 2025, Selective Insurance Group reported a 4% year-over-year increase in net premiums written, with an improvement in the combined ratio from 99.5% to 98.6% [10] - Management anticipates further improvement in the combined ratio, projecting a midpoint of 97.5% and a return on equity of approximately 14% for the full year [11] Dividend Growth - Selective Insurance has increased its quarterly dividend by 13% this year, with long-term investors seeing a 72% rise in quarterly payouts over the past five years [12]

Core Insights - The Hartford Insurance Group reported $5.11 billion in revenue for Q3 2025, a 9.5% year-over-year increase, with an EPS of $3.78 compared to $2.53 a year ago, exceeding both revenue and EPS estimates [1] - The company’s revenue surpassed the Zacks Consensus Estimate by 1.51%, while the EPS surprise was 20.77% [1] Financial Performance Metrics - Business Insurance Expense ratio was reported at 31.1%, slightly above the estimated 31% [4] - The Underlying combined ratio for Business Insurance was 89.4%, compared to the estimated 88.4% [4] - The Combined ratio for Business Insurance was 88.8%, better than the estimated 91.3% [4] - The Loss and loss adjustment expense ratio for Business Insurance was 57.3%, lower than the estimated 60.1% [4] - Earned Premium for Personal Insurance was $950 million, slightly above the estimate of $949.19 million, reflecting a 7.3% year-over-year increase [4] - Net investment income for Property and Casualty was $605 million, exceeding the estimate of $448.34 million, marking a 16.8% increase year-over-year [4] - Total revenues for Employee Benefits were $1.79 billion, slightly below the average estimate of $1.81 billion [4] - Net investment income for Employee Benefits was $136 million, above the estimated $127.91 million [4] - Premiums and other considerations for Employee Benefits were $1.66 billion, compared to the estimated $1.67 billion [4] - Fee income for Business Insurance was $11 million, slightly below the estimate of $11.13 million [4] - Earned premiums for Business Insurance were $3.54 billion, above the estimate of $3.52 billion [4] - Fee income for Personal Insurance was $8 million, in line with the estimate of $8.03 million, showing no year-over-year change [4] Stock Performance - The Hartford Insurance Group's shares have returned -6% over the past month, while the Zacks S&P 500 composite increased by 2.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]