Core Viewpoint - AM Best has assigned Long-Term Issue Credit Ratings of "a†(Excellent)" to The Progressive Corporation's senior unsecured notes, indicating a stable outlook for the company's financial health and creditworthiness [1] Group 1: Credit Ratings - The Long-Term IRs assigned are for $500 million, 4.60% senior unsecured notes due in 2031 [1] - Additionally, $1 billion, 5.15% senior unsecured notes due in 2036 have also received the same rating [1] - The ratings take into account the profiles of Progressive's insurance subsidiaries [1]

Core Viewpoint - AM Best has revised the outlooks to positive for members of Plymouth Rock Assurance Group, affirming their Financial Strength Rating (FSR) of A- (Excellent) and Long-Term Issuer Credit Rating (Long-Term ICR) of "a-" (Excellent) [1] Group 1: Plymouth Rock Assurance Group (PRAG) - The ratings reflect PRAG's very strong balance sheet strength and adequate operating performance, alongside a limited business profile and appropriate enterprise risk management (ERM) [1] - The positive outlook revision is attributed to PRAG's solid market presence in the northeastern U.S., particularly in Massachusetts, and its effective distribution strategy and strong brand recognition [1] - PRAG's market share in Massachusetts has grown to over 8% due to profitable business growth, while it is also expanding into New York, Connecticut, and Pennsylvania [1] Group 2: Plymouth Rock Home Assurance Group (PRHAG) - PRHAG's ratings also reflect very strong balance sheet strength, adequate operating performance, and appropriate ERM, with stable outlooks due to strong risk-adjusted capitalization [1] - Despite recent volatility, PRHAG's operating performance is supported by average combined ratios slightly below industry peers, although it faces challenges from adverse loss reserving trends and high equity leverage [1] - PRHAG benefits from its relationship with PRAG, which provides operational support and strategic integration [1]

Core Viewpoint - Acciona Energia is implementing significant financial measures, including cutting dividends and reducing investments, to protect its credit ratings while aiming to generate approximately 2 billion euros from asset sales [1]. Financial Measures - The company plans to reduce its dividend by 93% for 2025 to 0.03 euros per share [1]. - It aims to generate around 2 billion euros from asset sales within the year [1]. - Investments are projected to decrease to approximately 900 million euros this year, down from 1.4 billion euros in the previous two years and 2.2 billion euros in 2023 [1]. - Net debt is expected to decline below 3 billion euros from the current 4.16 billion euros [1]. Strategic Focus - Strengthening the balance sheet and maintaining investment-grade ratings have become strategic priorities for Acciona Energia [1]. - The company has shifted its focus from significant investments to reducing capital spending and divesting renewable assets [1]. - Long-term improvements in returns from renewable energy are anticipated through the renegotiation of power purchase agreements [1].

Core Viewpoint - AM Best has upgraded the credit ratings for RLI Corp. and its subsidiaries, reflecting strong financial performance and balance sheet strength [1] Group 1: Credit Ratings Upgrade - AM Best upgraded the Financial Strength Rating (FSR) to A++ (Superior) from A+ (Superior) for RLI Group members [1] - The Long-Term Issuer Credit Ratings (Long-Term ICR) were upgraded to "aa+" (Superior) from "aa" (Superior) for RLI Group members and to "a+" (Excellent) from "a" (Excellent) for RLI Corp. [1] - The outlook for these ratings has been revised to stable from positive [1] Group 2: Financial Strength and Performance - RLI's balance sheet strength is assessed as strongest, supported by effective capital management strategies and strong underwriting controls [1] - RLI's policyholder surplus reached $1.9 billion as of Q3 2025, indicating robust internal capital generation [1] - The company's liquidity ratios outperform industry benchmarks, despite elevated common stock leverage and significant earthquake exposure [1] Group 3: Risk Management and Underwriting - RLI's risk-adjusted capitalization is expected to remain at the strongest level, benefiting from management's niche specialty market expertise [1] - Consistency in underwriting results is driven by rigorous pricing discipline and diversification, along with solid investment returns [1] - The stable outlook reflects expectations of continued strong underwriting and operating profitability [1]

Core Viewpoint - AM Best has revised the outlook for Federated Underwriting Company from stable to positive and affirmed its Financial Strength Rating of A- (Excellent) and Long-Term Issuer Credit Rating of "a-" (Excellent) [1] Group 1: Ratings and Outlook - The outlook for Federated Underwriting Company has been changed to positive from stable [1] - The Financial Strength Rating of A- (Excellent) has been affirmed by AM Best [1] - The Long-Term Issuer Credit Rating of "a-" (Excellent) has also been affirmed [1] Group 2: Company Assessment - Federated's balance sheet strength is assessed as very strong by AM Best [1] - The company has adequate operating performance and a limited business profile [1] - Appropriate enterprise risk management practices are in place at Federated [1]

Financial Data and Key Metrics Changes - The company reported a strong income growth of 12%, with total income reaching GBP 16.4 billion, exceeding guidance of around GBP 16.3 billion [4] - Earnings per share grew 27% to GBP 0.68, while dividends per share increased 51% to GBP 0.325 [3] - The cost-income ratio improved to 48.6%, down 4.8 percentage points from the previous year [11] - The Common Equity Tier 1 (CET1) ratio stood at 14%, reflecting a 40 basis points increase from the prior year [17] Business Line Data and Key Metrics Changes - Customer loans increased by 5.6% to GBP 392.7 billion, driven by growth in mortgages and unsecured lending [6] - Customer deposits rose 2.4% to GBP 442 billion, with retail banking deposits increasing by GBP 7.8 billion or 4% [8] - Assets under management (AUM) grew nearly 20% to GBP 58.5 billion, with net flows of GBP 4.6 billion up 44% [8] Market Data and Key Metrics Changes - The company maintained a strong position in the UK market, being the largest bank for business, with growth across various sectors including social housing and project finance [6] - The average Liquidity Coverage Ratio (LCR) was 147%, indicating a comfortable surplus over minimum requirements [15] Company Strategy and Development Direction - The company aims to achieve disciplined growth with a focus on key customer segments and enhancing customer engagement [34] - Plans include leveraging simplification and investing in AI to drive growth and improve productivity [34] - The target for 2028 includes growing customer assets and liabilities at an annual rate greater than 4% and reducing the cost-income ratio to below 45% [35] Management's Comments on Operating Environment and Future Outlook - Management expects moderate growth in the macro environment for 2026, with a terminal bank rate projected at 3.25% [11] - The company anticipates a loan impairment rate below 25 basis points for 2026, reflecting a normalization in impairments [75] - There are no significant signs of stress across the business, and management remains confident in the performance of the loan book [13] Other Important Information - The company successfully completed its 2025 funding plan with GBP 7.1 billion in benchmark issuance [16] - Credit ratings improved, with Fitch upgrading the rating of NatWest Group PLC to A plus and S&P raising the rating to A-minus [32] Q&A Session Summary Question: How do you think about risk appetite and quantum of RWAs that can be optimized? - Management highlighted the execution of SRT transactions leading to significant RWA optimization and sees potential for further transactions in 2026 and 2027 [37][38] Question: How do you set the leverage buffer target in relation to the capital target or the RWA framework? - Management indicated that risk weights are expected to be the binding constraint moving forward, rather than leverage [51] Question: What is driving the impairment change guidance to 25 basis points? - Management explained that the guidance reflects a normalization in impairments and growth in the loan book, particularly in unsecured lending [74]

Core Viewpoint - Agree Realty (ADC) has significant capacity for growth but is currently not utilizing it fully, raising questions about management's strategy and market conditions. Financial Metrics - Pro forma net debt-to-recurring EBITDA stands at 3.5x, which includes unsettled forward equity offerings; excluding these, the figure is 5.1x, still within investment-grade net lease REIT standards [2] - AFFO payout ratio is approximately 70%, indicating that ADC retains more internal capital compared to peers with payout ratios in the mid-70s to low-80s [3][4] Earnings Performance - AFFO per share for Q3 2025 was $1.10, reflecting a year-over-year increase of 7.2%; full-year 2025 guidance has been raised to $4.31–$4.33, suggesting a growth of 4.4% at the midpoint [4] - ADC deployed $1.55 billion in 2025, but the 2026 investment guidance is lower at $1.25–$1.50 billion, indicating a potential pullback in investment activity [6][7] Credit Ratings - Fitch assigned ADC an A- issuer rating with a stable outlook, citing superior tenant credit quality and sector-leading access to capital; Moody's rates it Baa1, and S&P Global Ratings upgraded it to BBB+ [5][6] Tenant Quality - Approximately 66.8% of ADC's annualized base rent comes from investment-grade tenants, with a potential shift in this percentage serving as an indicator of underwriting philosophy [11] Future Indicators - Key signals to watch for changes in management behavior include 2026 AFFO guidance relative to consensus, ex-forward leverage compression, and shifts in the investment-grade tenant mix [8][9][10]

ViO 234 Apartment Homes San Jose, CA F O U R T H Q U A R T E R 2 0 2 5 C R E D I T U P D A T E S E L E C T E D R A T I O S & C R E D I T R A T I N G S | Public Bond Covenants(1) | | | & Selected Credit Ratios | | | | | --- | --- | --- | --- | --- | --- | --- | | Q4 '25 | | Q3 '25 | Q2 '25 | Q1 '25 | Q4 '24 | Covenant | | Debt to Total Assets | 35% | 34% | 35% | 35% | 35% | < 65% | | Secured Debt to Total Assets | 4% | 4% | 4% | 5% | 5% | < 40% | | Interest Coverage | 510% | 517% | 524% | 532% | 540% | > 150 ...

Core Viewpoint - AM Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of "a+" (Excellent) to Beazley Bermuda Insurance Limited, indicating strong financial health and stability in its operations [1] Group 1: Credit Ratings and Financial Strength - Beazley Bermuda Insurance Limited (BBIL) has a stable outlook for its credit ratings, reflecting its very strong balance sheet strength and adequate operating performance [1] - BBIL's balance sheet strength is supported by a risk-adjusted capitalisation expected to be at the strongest level, with a capital base of USD 531 million at the start of 2026 [1] - The ratings also consider the strategic importance of BBIL to its parent company, Beazley plc, enhancing its overall creditworthiness [1] Group 2: Operating Performance and Market Position - BBIL is anticipated to achieve adequate operating performance over the medium term, with profitable underwriting results despite a softening pricing environment [1] - Investment income is expected to significantly contribute to BBIL's overall earnings, particularly in its initial years of operation [1] - The establishment of BBIL will allow Beazley to expand its footprint and access the Bermuda reinsurance market, providing additional diversification for the group [1] Group 3: Monitoring and Future Developments - AM Best is closely monitoring the ratings of all Beazley companies in light of Zurich Insurance Group's progressing offer to acquire Beazley, with potential reviews pending a binding offer [1]

Core Viewpoint - AM Best has assigned a Financial Strength Rating of A++ (Superior) and a Long-Term Issuer Credit Rating of "aaa" (Exceptional) to Berkshire Hathaway International Insurance Limited (BHIIL), indicating strong financial health and stability in its operations [1] Group 1: Ratings and Financial Strength - BHIIL is a wholly owned subsidiary of National Indemnity Company, which is the lead operating company of the National Indemnity Group, ultimately owned by Berkshire Hathaway Inc. [1] - The outlook for these Credit Ratings is stable, reflecting the strong consolidated balance sheet strength of National Indemnity, assessed as the strongest by AM Best [1] - BHIIL's ratings are supported by its very strong operating performance, favorable business profile, and appropriate enterprise risk management [1] Group 2: Business Operations - BHIIL plays a key role within the National Indemnity group, serving as a primary platform for accessing insurance business in the United Kingdom, Switzerland, and Italy, as well as international business in the London market [1] - The ratings also reflect the material reinsurance support from its parent company, enhancing BHIIL's operational capabilities [1]