Core Financial Performance - Total revenue for 2025 increased by 16% compared to the previous year, reaching $365.3 million [1][5] - Core revenue, which excludes certain non-GAAP items, also grew by 16% to $317.9 million [1][5] - Adjusted EBITDA for 2025 rose by 14% to $113.6 million, with an adjusted EBITDA margin of 31% [1][6][35] Fourth Quarter Highlights - In Q4 2025, total revenues were $105.3 million, a 12% increase from Q4 2024 [5][6] - Core revenues for Q4 were $78.2 million, reflecting a 15% growth year-over-year [5][6] - Net income for Q4 was $20.8 million, down from $23.8 million in the prior year, resulting in a net income margin of 20% [6][8] Share Repurchase and Capital Management - The company repurchased $81.7 million of shares at an average price of $80.60 during the year [1] - The share repurchase authorization was expanded by $180 million, extending through May 1, 2027 [1][11] Strategic Developments - The company launched its Digital Agent 2.0 platform in Texas, enhancing its digital insurance buying experience [4] - AI technologies were deployed to improve service efficiency and client experience [4] Board of Directors Update - Louis Goldberg was elected to the Board of Directors, bringing over 28 years of experience in corporate governance [12][14] - Thomas McConnon will step down from the Board effective February 18, 2026 [17] 2026 Outlook - The company expects total revenues to grow organically between 10% and 19% and total written premiums to increase between 12% and 20% [15]

Financial Data and Key Metrics Changes - In 2025, the company achieved a core EPS growth of 8% and a core ROE expansion of 30 basis points, reaching a target of 18%+ by 2027 [7][15][24] - The company generated $6.4 billion in remittances and returned nearly $5.5 billion to shareholders, with a LICAT ratio of 136% and a leverage ratio of 23.9% [7][24][25] - A 10% increase in the quarterly common share dividend was announced, alongside a new NCIB program allowing the repurchase of up to 42 million shares [8][24] Business Line Data and Key Metrics Changes - New business CSM growth exceeded 20% in each insurance segment, contributing to double-digit growth in the CSM balance [5][15] - Global WAM reported net outflows of $9.5 billion, primarily due to large retirement plan redemptions, but still delivered strong margins and core earnings growth [6][15][16] - Core earnings in Asia increased by 24% year-over-year, driven by business growth and favorable impacts from previous basis changes [20][21] Market Data and Key Metrics Changes - APE sales in Asia decreased by 3%, with double-digit growth in Japan and Asia Other offset by lower sales in Hong Kong [19][20] - The U.S. segment saw a 9% increase in APE sales, with new business CSM growing by 34%, although core earnings decreased by 22% due to lower investment spreads [22][23] - Canadian APE sales and new business value increased by 2% and 4% respectively, reflecting strong growth in individual insurance and annuity sales [22] Company Strategy and Development Direction - The company introduced a refreshed enterprise strategy focused on growth and customer choice, with strategic investments made in various markets [9][10] - The company aims to become an AI-powered organization, investing in AI to enhance efficiency and customer experiences [12][14] - Strategic acquisitions, including Comvest Credit Partners and a joint venture in India, are part of the company's growth strategy [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic and geopolitical uncertainties due to the diversified nature of the business [5][6] - The company anticipates continued growth in core earnings and is optimistic about achieving its 2027 targets [15][24] - Management highlighted the importance of maintaining a balanced and diversified business model to mitigate risks [9][10] Other Important Information - The company became the first international life insurer to establish an office in the Dubai International Financial Centre [10] - A significant collaboration in Hong Kong aims to enhance healthcare solutions for customers [11] Q&A Session Summary Question: Clarification on Hong Kong sales and regulatory changes - Management noted that while there was a decline in sales due to regulatory changes, they expect brokers to adjust and sales to increase over time [28][30][31] Question: NBV margin increase in Hong Kong - The increase in NBV margin was attributed to a favorable mix, with a focus on higher-margin channels [34][36] Question: Impact of eMPF on GWAM earnings - Management confirmed that the eMPF transition has had a negative impact, but Comvest is expected to contribute positively to AUM and earnings [37][38] Question: U.S. division's unfavorable mortality experience - Management indicated that the recent unfavorable mortality experience is viewed as normal variability and not indicative of a long-term trend [42][46][48] Question: Legacy book dispositions and EPS neutrality - Management stated that current share price levels do not constrain their ability to pursue future transactions and maintain EPS neutrality [60][61]

Core Insights - eHealth's analysis indicates that Medicare Advantage beneficiaries who compared their 2025 coverage to 2026 plans could save an average of $1,676 annually in out-of-pocket costs [1] - A significant portion of Medicare Advantage enrollees, 48%, are unaware of the Open Enrollment Period, which allows them to switch plans [1] Group 1: Savings and Enrollment Trends - The average potential annual savings for beneficiaries who compared plans was $1,676, reflecting lower out-of-pocket costs for medical care and prescription drugs [1] - The average out-of-pocket maximum increased by 7%, from $5,749 for 2025 plans to $6,153 for 2026 options [1] - The average monthly premium for 2026 plans decreased to $4, down from $5 in 2025, with 88% of plans having a $0 monthly premium, up from 87% the previous year [1] Group 2: Consumer Behavior and Awareness - Beneficiaries supported by eHealth's AI-powered voice agent had a higher enrollment rate (24.8%) compared to those assisted by traditional screeners (22.3%) [1] - A survey revealed that 69% of Medicare beneficiaries seeking to lose weight in 2026 want to use GLP-1 drugs, while 19% are unaware that flu and COVID shots are covered at no cost by most health plans [1] - 22% of people do not know that annual physical and wellness checkups are covered at no cost by most health plans, and 34% are unaware that recommended preventive healthcare screenings are also covered at no cost [1]

Business Overview - The P&C insurance industry represents a ~$3.0 trillion Direct Written Premium (DWP) market, accounting for approximately 3% of global GDP[13, 16] - Tier 1 and 2 insurers, defined as those with DWP greater than $1 billion, represent over 85% of the total DWP, highlighting the importance of large customers[13] - Guidewire has 349 core customers, representing $1.041 billion in ARR and $775 billion in DWP as of FY25[28] Cloud Transition and Growth - Guidewire is transitioning to a cloud-based model, with a focus on intelligent insurance through AI and a portfolio of applications[25] - The company's cloud transformation has seen significant success, with InsuranceSuite Cloud customers expanding rapidly[36] - Total Cloud ARR and InsuranceSuite Cloud Customer ARR have experienced 6-year CAGRs of 50% and 52% respectively[115, 135] - Guidewire is targeting 17-18% ARR growth and 15-16% total revenue growth (excluding Services Revenue) CAGR from FY25 to FY28[140] - The company aims to achieve a subscription and support gross margin of ~80% and an operating margin of ~40% in the long term[141] New Products and Market Opportunity - New applications like PricingCenter and UnderwritingCenter are being introduced to drive faster speed to market and smarter risk selection[72, 75, 77] - Industry Intel, a set of predictive models, can improve loss ratios by ~50 bps for auto bodily injury and collision claims, and ~25 bps for workers' compensation claims[83] - The introduction of new products expands Guidewire's DWP monetization opportunity by +$4 billion for analytics and data products, and +$8 billion for UnderwritingCenter and PricingCenter[86] Financial Position - Guidewire has a strong balance sheet with $1.5 billion in cash and cash equivalents[145] - The company expects $360 million in cash flow from operations and ~$28 million in CAPEX and capitalized software development costs in FY26[145]

Core Insights - Navacord has integrated Cyberwrite's cyber risk quantification tool to enhance its brokers' capabilities in the cyber insurance sector [1][5] - The partnership aims to provide tools for assessing financial exposure to cyber threats and support decision-making for business leaders [1][2] Group 1: Technology and Tools - Cyberwrite's platform quantifies financial risks associated with cyberattacks and offers insights into risk mitigation strategies [2] - The technology improves risk profiles before the underwriting process, aiding in obtaining suitable insurance policies [2][4] - Navacord's brokers can generate tailored cyber risk reports for management-level executives, helping them understand their insurance needs [3][4] Group 2: Benefits and Applications - The reports assess the probability and potential financial impact of cyber incidents, refining clients' risk management practices [4] - Cyberwrite's AI-driven reports enable brokers to recommend adequate coverage based on each client's unique technological profile [3][5] - The platform provides real-time data analysis and delivers risk reports in multiple languages, operational in over 50 countries [4] Group 3: Strategic Alignment - Cyberwrite's CEO emphasized that the tailored risk reports help clients quantify exposures and obtain necessary policies, contrasting with generic benchmarking information [5] - Navacord's commitment to utilizing AI models for cyber risk quantification aligns with customer needs for real-time, tailored insights [5]