Financial Data and Key Metrics Changes - Total production increased by 9% to 19.7 million barrels of oil equivalent, with sales volumes rising 16% to 24.7 million barrels of oil equivalent [15][16] - Sales revenue grew by 13% to $2 billion, driven by higher production and an increase in average realized gas price to $10.7 for domestic volumes [16][28] - Underlying EBITDA increased by 20% year on year to $1.1 billion, while underlying NPAT rose by 32% to $451 million [17][28] - The underlying EBITDA margin improved by 300 basis points to 57%, reflecting structural cost savings and improved commercial outcomes [17][28] - Pre-growth free cash flow increased fourfold to $657 million, with a payout ratio of 31% [17][18] Business Line Data and Key Metrics Changes - East Coast gas production increased by 23% in FY 2025, with Beach supplying 90% of the East Coast gas demand [11][12] - The Otway Basin saw a 64% increase in production to 6.8 million barrels of oil equivalent, while the Bass Basin experienced a 91% increase to 1.4 million barrels [15] - The Cooper Basin faced challenges due to severe flooding, impacting production [15][29] Market Data and Key Metrics Changes - Beach's operated assets and non-operated interests now supply 19% of the entire East Coast domestic gas market, positioning the company as a significant supplier [3][5] - The gas supply available to the domestic market is declining, while long-term gas demand remains firm, leading to widening structural supply deficits [10] Company Strategy and Development Direction - The company aims to become Australia's leading domestic energy company, focusing on core East Coast and West Coast hubs [5][18] - A disciplined gas marketing strategy has been implemented, allowing for a balanced approach between contracted volumes and spot market exposure [12][14] - The strategic pillars include high margins and sustainable growth, with a focus on operational efficiencies and accountability [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver growth, emphasizing the importance of maintaining a strong balance sheet and operational effectiveness [18][41] - The company is actively pursuing opportunities for disciplined, value-accretive growth, particularly in the East and West Coast markets [18][66] - Management acknowledged the challenges faced in the Cooper Basin but remains optimistic about future production and operational improvements [29][35] Other Important Information - A non-cash impairment of $474 million was recorded for the Cooper Basin and Perth Basin carrying values, primarily due to lower near-term commodity price outlooks [28][29] - The Moomba CCS project was completed, contributing to the company's emissions reduction goals [24][25] Q&A Session Summary Question: Can you talk us through the dividend and concerns about potential lower dividends due to M&A or rising net debt? - Management explained that the decision to set the payout slightly below the targeted range was to ensure flexibility for future opportunities and maintain a strong balance sheet [45][46] Question: Is there further cost reduction potential in FY 2026 and 2027? - Management confirmed ongoing efforts to reduce costs, particularly in the Cooper Basin, and emphasized a focus on maintaining margins [48][49] Question: Can you provide details on the $11 per BOE cost target and its current status? - Management stated that the $11 target remains in place and is set to outperform peers, with operated assets achieving a unit operating cost of $10.68 [53][54] Question: What is the Board's confidence in the $06 per share final dividend despite Waitzier not being commissioned? - Management indicated that the Board's decision reflects confidence in the commissioning timeline for Waitzier and the company's overall performance [60][63] Question: Can you outline the framework for assessing new growth opportunities? - Management reiterated that the investment criteria include a hurdle rate of over 12% for gas projects and a focus on domestic opportunities [66][67] Question: Are there any new acreage releases of interest? - Management mentioned ongoing interest in acreage releases in South Australia and Queensland, particularly for CSG [77] Question: What is the potential pricing delta upside from the recontracting at the Cooper Basin? - Management indicated that recent recontracting has been at prevailing domestic gas prices, which are expected to positively impact future results [80]

Financial Data and Key Metrics Changes - The combined ratio for the quarter was 102.7%, elevated due to catastrophe losses, particularly from California wildfires [5][20] - Total group written premium was $4.4 billion, similar to Q1 2024, with a gross written premium decrease of 2% in constant dollars [6][20] - Operating income for the quarter was $276 million, despite significant catastrophe loss activity [19][20] - The attritional loss ratio increased to 62.2%, a 330 basis point increase year-over-year, driven by aviation losses [21][29] - Shareholders' equity ended the quarter at $14.1 billion, with book value per share at $332.39, reflecting a 3.5% improvement from year-end 2024 [30][31] Business Line Data and Key Metrics Changes - In reinsurance, gross premiums decreased by 1.1% in constant dollars, with property lines showing double-digit increases offset by discipline in casualty lines [22] - Written premium in the insurance segment was down 1.3% year-over-year, with property lines growing 19% and specialty businesses growing 16% [11][24] - The attritional loss ratio in the insurance business was 68.8%, with aviation losses contributing 0.9 points to the ratio [26][29] Market Data and Key Metrics Changes - The reinsurance book shrank marginally at the January 1, 2025 renewal, reflecting 6% property growth offset by cutbacks in casualty [8] - The international insurance business turned a modest profit in the quarter, with strong growth in key markets [14] - Casualty rate increases averaged approximately 20% across commercial auto, general liability, and excess umbrella [13] Company Strategy and Development Direction - The company is focused on growing where risk-adjusted returns meet or exceed thresholds, intentionally shrinking in areas with weak pricing relative to risk [7] - The strategy includes a one-year, one-renewal approach to improve the casualty lines within the insurance division [19] - The company expects to continue repurchasing shares throughout 2025, prioritizing shareholder value [17][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the significant impact of catastrophic events on financials but emphasized the importance of supporting communities [5] - The company anticipates moderate catastrophe pricing pressure for the remainder of 2025 but sees ample opportunities for capital deployment at attractive expected returns [8] - Management expressed confidence in the reserve position and the ability to respond to inflationary pressures [16][30] Other Important Information - The company repurchased $200 million of shares in the quarter at an average price of $348 per share [17][32] - Net investment income increased to $491 million for the quarter, driven by higher assets under management [29] - The company has completed a thorough assessment of exposure to new tariff regimes, expecting modest upward pressure on loss cost trends [17] Q&A Session Summary Question: Discussion on growth opportunities in Florida - Management expects the June 1 renewal to be attractive, with potential growth opportunities across both domestic and nationwide carriers [35][36] Question: Competitive market dynamics in specialty lines - Management noted that while competition has increased, there are still significant opportunities in specialty underwriting areas [38][39] Question: Capital capacity for growth and buybacks - Management indicated that there is sufficient capacity to support both growth initiatives and share repurchases [42][43] Question: Pricing actions from underlying primaries - Management confirmed that pricing remains strong, and they are focused on portfolio management and claims handling to ensure expected results [45][46] Question: Clarification on moderate pricing pressure in the market - Management explained that while pricing is moderating, expected returns remain attractive, allowing for continued capital deployment [50][54] Question: Impact of California wildfire losses on financials - Management stated that the majority of wildfire losses are in reinsurance, and any recoveries would benefit the company, although they are taking a cautious approach [57][58] Question: Aviation loss details and industry impact - Management estimated industry losses around $1 billion, with their portfolio performing well despite the significant loss [84][85] Question: Reserve review process and expectations - Management clarified that while reserve reviews occur annually, they have increased the frequency of assessing loss trend assumptions [101][102]

Financial Data and Key Metrics Changes - The combined ratio for the quarter was 102.7%, elevated due to catastrophe losses, particularly from California wildfires, contributing 13.9 points to the ratio [4][19] - Total group written premium was $4.4 billion, similar to Q1 2024, with a gross written premium decrease of 2% in constant dollars [5][19] - Operating income for the quarter was $276 million, despite significant catastrophe loss activity [18][19] - The group attritional loss ratio increased to 62.2%, a 330 basis point increase year-over-year, primarily due to aviation losses [20][21] Business Line Data and Key Metrics Changes - In reinsurance, gross premiums decreased by 1.1% in constant dollars, with property lines growing by double digits while casualty lines remained disciplined [22] - The attritional loss ratio in reinsurance increased to 59.8%, influenced by aviation losses [23] - In the insurance segment, gross premiums written were relatively flat at $1.1 billion, with property lines growing by 19% and specialty businesses by 16%, offset by a 15% decline in the third-party book [10][24] Market Data and Key Metrics Changes - The company experienced a 16% growth in property lines within reinsurance, while casualty lines saw a 22% decline due to portfolio actions [7][8] - The international insurance business showed strong growth in key markets, turning a modest profit despite ongoing investments [13] - Casualty rate increases averaged approximately 20% across various lines, indicating a robust pricing environment [12][26] Company Strategy and Development Direction - The company is focused on disciplined underwriting and risk management, intentionally shrinking areas with weak pricing relative to risk [6][8] - There is an emphasis on maintaining a strong capital position, with share buybacks prioritized given the excess capital [16][32] - The company anticipates moderate catastrophe pricing pressure but sees ample opportunities to deploy capital at attractive expected returns [7][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the significant impact of catastrophic events on financial performance but expressed confidence in the company's underwriting capabilities [4][6] - The outlook for the remainder of 2025 includes expectations for continued growth in property lines and a disciplined approach to casualty lines [7][18] - Management remains cautious about the potential impact of tariffs and inflation on loss trends, with a proactive approach to adjusting loss picks [16][75] Other Important Information - The company repurchased $200 million worth of shares during the quarter, reflecting a commitment to returning value to shareholders [16][33] - The overall reserve position improved since the end of 2024, with a focus on maintaining strong reserves in the face of potential inflationary pressures [14][100] - The net investment income for the quarter was $491 million, driven by higher assets under management [29][30] Q&A Session Summary Question: Discussion on growth opportunities in Florida at midyear - Management expects attractive opportunities at the June renewal, with increased demand from clients for higher limits [36][37] Question: Competitive market dynamics in specialty lines - Management noted that while competition has increased, there are still significant opportunities in specialty underwriting areas [38][40] Question: Capital capacity for growth and share repurchases - Management indicated that there is sufficient capacity to support both growth initiatives and share buybacks [43][45] Question: Pricing actions from underlying primary insurers - Management confirmed that pricing remains strong, but portfolio management and claims handling are also critical factors [46][48] Question: Clarification on moderate pricing pressure in the market - Management clarified that while pricing is moderating, expected returns remain attractive, allowing for continued growth [51][55] Question: Impact of California wildfire losses on financials - Management stated that the majority of wildfire losses are in reinsurance, and any recoveries would benefit the company, although they are taking a cautious approach [57][58] Question: New business opportunities in the insurance segment - Management highlighted that while U.S. casualty business is shrinking, there are strong growth opportunities in specialty lines and international markets [65][66] Question: Timing and mechanics of responding to tariffs - Management explained that they have increased the frequency of assessing loss trend assumptions to respond quickly to any inflationary pressures [74][75] Question: Updates on property cat portfolio and loss expectations - Management confirmed that while there are no dramatic changes in loss expectations, they are continuously adjusting models based on the latest data [110][111]