Key Takeaways NMI Holdings' Q3 operating EPS of $1.21 matched estimates, up 5.2% year over year. Revenues grew 7.8% on higher premiums and investment income, beating estimates by 2.3%. Primary insurance in force climbed 5.2%, while persistency slipped and loss ratio worsened. NMI Holdings Inc. (NMIH) reported third-quarter 2025 operating net income per share of $1.21, which matched the Zacks Consensus Estimate. The bottom line increased 5.2% year over year. The quarterly results reflected higher premiums ea ...

Core Insights - Oscar Health is launching new health plans for individuals, families, and businesses in Orlando for the 2026 Open Enrollment period [1] Group 1 - The new health plans will be available on the individual marketplace [1]

Core Insights - Assurant, Inc. (AIZ) reported a significant increase in net operating income for Q3 2025, reaching $5.73 per share, which exceeded the Zacks Consensus Estimate by 35.4% and marked a 91% year-over-year increase [1][10] - The company's strong performance was driven by the Global Housing and Global Lifestyle segments, which saw higher revenues and improved net investment income, although this was partially offset by increased expenses and weakness in the Corporate & Other segment [1][10] Revenue Performance - Total revenues rose by 8.6% year over year to nearly $3.2 billion, surpassing the Zacks Consensus Estimate by 2.6% [2] - Net earned premiums, fees, and other income increased by 8.9% year over year to $3.1 billion, exceeding the estimate of $3 billion [2] - Net investment income grew by 2.9% year over year to $133.5 million, also beating the estimate of $125.1 million [2] Expense Analysis - Total benefits, losses, and expenses increased by 3% to $2.9 billion, primarily due to higher underwriting, selling, general and administrative expenses, and interest expense [3] - Adjusted EBITDA, excluding reportable catastrophes, increased by 13% to $433.5 million, slightly below the estimate of $439.4 million [3] Segment Performance - Global Housing revenues increased by 16.2% year over year to $738.9 million, exceeding the estimate of $703.1 million [4] - Net earned premiums, fees, and other income in Global Housing rose by 16% year over year to $702.9 million, driven by growth in policies in-force and higher average premiums [5] - Adjusted EBITDA for Global Housing, excluding catastrophes, increased by 13% year over year to $259.2 million, although it was lower than the estimate of $273.1 million [6] - Global Lifestyle revenues increased by 6.8% year over year to $2.5 billion, matching the Zacks Consensus Estimate [7] - Adjusted EBITDA for Global Lifestyle rose by 12% year over year to $206.8 million, exceeding the estimate of $195.4 million [8] - The Corporate & Other segment reported an adjusted EBITDA loss of $31.6 million, wider than the previous year's loss of $29.8 million [9] Financial Position - As of September 30, 2025, liquidity stood at $613 million, significantly above the targeted minimum level of $225 million [11] - Total assets increased by 2.2% to $35.7 billion, while total shareholders' equity rose by 12.7% to $5.7 billion [11] - The debt-to-total capital ratio improved by 130 basis points to 27.7% [11] Shareholder Returns - In Q3 2025, Assurant repurchased shares worth $81 million and paid $41 million in dividends [12] - From October 1 to October 31, 2025, an additional $27 million was spent on share repurchases, with $141 million remaining under the current repurchase authorization [12] Future Guidance - Assurant raised its 2025 guidance, expecting adjusted EBITDA growth, excluding reportable catastrophes, to approach 10% [13] - The company anticipates strong growth in Global Housing adjusted EBITDA and expects a loss of $120 million in Corporate and Other adjusted EBITDA [13] - Adjusted earnings per diluted share are projected to deliver low double-digit growth [14]

Core Insights - Kevin O'Leary, known as Mr. Wonderful, has launched a specialized insurance platform called WonderCare to address the inadequacies of traditional insurance for high-value watch collections [1][3] - WonderCare uses artificial intelligence to generate insurance policies quickly and pulls global auction data every 24 hours to ensure coverage at replacement value [3][4] Insurance Market Insights - Traditional home insurance policies often cover watches at their depreciated value, which may not reflect their current market worth [2][3] - WonderCare offers policies that protect against loss, theft, or damage without a deductible, contrasting with typical homeowner's insurance [4] Pricing and Coverage - The annual cost to insure high-end watches through WonderCare varies significantly, from $43 for a Tudor Black Bay Fifty-Eight valued at $3,625 to $866 for a Patek Philippe 5172G worth $73,700 [4] - The platform aims to provide comprehensive coverage tailored to the luxury watch market, addressing a niche that has been overlooked by traditional insurers [4] Customer Reception - Public reactions to O'Leary's venture have been mixed, with some criticizing the luxury watch hobby while others express interest in the insurance service [5][6] - The service is seen as beneficial for collectors who appreciate fine watches and seek adequate protection for their investments [5][6] Security Measures - O'Leary has taken personal security measures by spreading his watch collection across nine cities, each with its own vault, to mitigate the risk of theft [7]

Core Insights - Lemonade's third-quarter report exceeded Wall Street estimates, leading to a 22.1% stock price increase shortly after market opening [1][9] - The company reported a 42% year-over-year revenue growth, reaching $194.5 million, surpassing analyst expectations of $184.9 million [2] - Net losses per share decreased from $0.95 to $0.51, better than the anticipated loss of $0.70 per share [2] Financial Performance - Revenue for Q3 was $194.5 million, a 42% increase year-over-year [2] - Net losses per share improved from $0.95 to $0.51, against a consensus loss estimate of $0.70 [2] - Adjusted free cash flow was $18.1 million, down from $37.6 million in the previous year [3] Customer Growth and Metrics - Customer counts and in-force premium (IFP) showed strong growth, with a modest 5% increase in premium per customer [3] - The net loss ratio improved to 64%, down from 69% in the previous quarter and 81% in Q3 2024, indicating better profitability [5] Technological Advancements - The company's AI systems have become more efficient, significantly reducing claims handling costs [6] - Management anticipates continued improvements in operational efficiency due to advancements in AI [6] Expansion Plans - Lemonade is expanding its car insurance offerings across more U.S. states and increasing renter's and homeowner's policies in Western Europe [7]

Core Insights - Humana Inc. reported adjusted earnings of $3.24 for Q3, surpassing the consensus estimate of $2.82 [1] - The company achieved sales of $32.65 billion, an increase from $29.39 billion year-over-year, exceeding the consensus of $32.01 billion [2] Financial Performance - Sales growth was attributed to higher per-member Medicare and state-based contract premiums, with the Medicare increase driven by a direct subsidy from the Inflation Reduction Act and membership growth in state-based contracts and stand-alone PDP businesses [2] - The insurance segment benefit ratio was reported at 91.1%, aligning with previous expectations of just above 91% [4] Membership Trends - Total medical membership decreased to 14.99 million from 16.36 million a year ago [3] - Individual Medicare Advantage membership fell to 5.24 million from 5.66 million year-over-year [3] - Total Medicare members decreased to 8.25 million from 8.52 million the previous year [3] Guidance and Future Outlook - Humana reaffirmed its 2025 adjusted earnings guidance of $17.00 per share, slightly below the consensus of $17.07 [5] - The company reiterated its Insurance segment benefit ratio guidance of 90.1% to 90.5%, supported by solid execution [5] - Revenue is projected to be at least $128 billion in 2025, in line with the consensus estimate of $128.09 billion [6] - A decline of approximately 425,000 Individual Medicare Advantage members is anticipated for fiscal 2025, an improvement from the previous expectation of a loss of up to 500,000 [7] Investment and Impact - Humana plans to invest an additional approximately $150 million, which is additive to the previously discussed incremental investments [6] - The fourth-quarter Insurance segment benefit ratio is expected to be around 93.5%, with the fiscal 2025 ratio anticipated to be at the top end of the guidance range [8] - Humana shares were down 6.56% at $263.37 at the time of publication [8]

Core Viewpoint - American Financial Group, Inc. (AFG) has shown moderate performance over the past year with a gain of approximately 4% alongside its dividend, but experienced a pullback of about 10% in October due to market fears regarding peak conditions [1] Company Performance - AFG's shares gained about 4% over the past year, indicating a stable performance in the context of its dividend [1] - The company’s shares saw a decline of approximately 10% in October, despite the absence of specific news related to the company during that month [1] Market Sentiment - The decline in AFG's shares in October is attributed to broader market fears rather than company-specific news, suggesting external factors influencing investor sentiment [1]

Core Viewpoint - American Financial Group (AFG) shares have shown moderate performance over the past year, with a gain of approximately 4% alongside its dividend, but experienced a pullback of about 10% in October due to concerns regarding peak underwriting [1] Summary by Relevant Sections - **Stock Performance** - AFG shares gained about 4% over the past year, including dividends [1] - The shares pulled back approximately 10% in October [1] - **Market Sentiment** - There was no specific news related to AFG in October, but fears about peak underwriting contributed to the stock's decline [1]

Financial Data and Key Metrics Changes - Non-GAAP operating earnings were $455 million, or $1.48 per share, down 6% year over year on a per-share basis [4][14] - Adjusted for notable items, non-GAAP operating EPS was $1.67, up 2% compared to the prior year [5][14] - Total assets under management reached a record $1.1 trillion, up 4% sequentially and 7% year over year [5][14][16] - The consolidated GAAP net loss was $1.3 billion, primarily due to a one-time impact from asset transfers related to the life reinsurance transaction [14] Business Line Data and Key Metrics Changes - Retirement businesses generated $1.1 billion of net flows during the quarter, driven by growth in umbrella sales [5] - Wealth management had $2.2 billion of advisory net inflows, reflecting a 12% annualized growth rate [5] - Asset management reported total net outflows of $2.3 billion, but excluding low-fee assets transferred to RGA, net inflows were $1.7 billion [5][18] Market Data and Key Metrics Changes - The retirement segment saw a 7% increase in RILA sales, achieving record sales in nine of the last ten quarters [31][44] - Private markets assets increased 17% year over year to $80 billion, on track to meet the $90-$100 billion target by 2027 [5][13] Company Strategy and Development Direction - The company focuses on three core growth businesses: retirement, asset management, and wealth management, which provide synergies and flywheel benefits [8][9] - Key strategic pillars include defending and growing existing businesses, scaling high-growth wealth management, and investing in high-potential opportunities [8][9] - The acquisition of Stifel Independent Advisors aims to enhance the wealth management business, expected to close in the first half of 2026 [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2027 financial targets, supported by strong organic growth momentum and increased assets under management [4][23] - The company anticipates continued double-digit growth in wealth management earnings, driven by asset growth and improved advisor productivity [11][18] - Management expects to see less volatility in life results going forward due to the benefits of the life reinsurance transaction [14][35] Other Important Information - The company returned $757 million to shareholders, including $676 million in share repurchases, and reduced outstanding debt by $500 million [7][21] - The adjusted debt to capital ratio was reported at 24.5% [16] - The consolidated tax rate for the quarter was 17%, below the normal expectation of 20% [20][21] Q&A Session Summary Question: Perspectives on the private credit environment and underwriting process - Management views private credit as a good asset class and emphasizes the importance of underwriting capabilities [25][28] Question: Differentiation in the RILA market amidst increased competition - The company maintains a sustainable edge through attractive yields, privileged distribution, and a track record of innovation [31][32] Question: Comments on unfavorable mortality experience and expectations for normalization - Management noted that retained experience was only about $10 million worse than expected, indicating modest impact from mortality [35] Question: Strategy for capital deployment from the RGA deal - The company plans to balance capital returns and acquisitions, emphasizing the ability to do both due to excess capital [58][59] Question: Growth opportunities in the spread lending business - The company has significant capacity to grow the FABN business, having issued about $4.5 billion year to date [61]

Financial Data and Key Metrics Changes - Hamilton Insurance Group reported a net income of $136 million for Q3 2025, representing an annualized return on average equity of 21%, compared to $78 million and 14% in Q3 2024 [3][17] - Operating income for the quarter was $123 million, or $1.20 per diluted share, up from $17 million or $0.16 per diluted share in the same quarter last year [17] - Book value per share increased by 6% in the quarter and 18% year-to-date to a record $27.06 [17][28] Business Line Data and Key Metrics Changes - Gross premiums written increased by 26% in Q3 2025, with year-to-date gross premiums written reaching $2.3 billion, up from $1.9 billion in the same period last year [5][18] - The Bermuda segment grew by 40% in Q3, driven by casualty and specialty reinsurance classes [6] - The international segment, including Hamilton Global Specialty and Hamilton Select, saw gross premiums written grow by 17% in the quarter [7][20] Market Data and Key Metrics Changes - The U.S. E&S market is expected to experience increased competition, particularly in small to mid-market accounts, while large accounts may face pricing pressure [9][10] - The reinsurance market is anticipated to see supply outpacing demand, leading to rate pressures, especially in property cat reinsurance [11][12] Company Strategy and Development Direction - Hamilton continues to focus on disciplined underwriting and maintaining a balanced portfolio, allowing for growth in attractive lines while backing away from less favorable business [5][14] - The company is strategically growing its U.S. E&S platform and has appointed a new Chief Underwriting Officer to enhance its operations [4][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current market dynamics, emphasizing the importance of maintaining underwriting discipline and capitalizing on opportunities [15][11] - The company anticipates moderate growth in casualty reinsurance, with expectations for continued rate increases, albeit at a slower pace [10][12] Other Important Information - Total assets increased by 18% to $9.2 billion, with total investments and cash rising by 19% to $5.7 billion [28] - The company announced a $150 million share repurchase authorization, with $40 million repurchased in Q3 2025 [27] Q&A Session Summary Question: Can you provide insights on the Bermuda underlying loss ratio? - Management acknowledged that the increase in the underlying loss ratio is driven by a mix of business, particularly towards casualty [31][32] Question: What changes are being observed in loss trends within the casualty portfolio? - Management noted growth in both reinsurance and insurance portfolios, with a strong feedback loop across underwriting, pricing, and reserving [33][34] Question: Can you quantify the larger renewal moving from Q2 to Q3? - A renewal that changed from Q2 to Q3 contributed about $20 million to the growth in Bermuda's casualty line [40][43] Question: What are the objectives for Hamilton Select going forward? - The objectives include producing sustainable underwriting profitability while adhering to disciplined underwriting culture [49] Question: How should we think about the acquisition cost ratio moving forward? - Management indicated a slight uptick in acquisition costs due to the business mix, but it is not expected to change significantly [62]