Core Insights - The London Company Small Cap Strategy reported a 1.9% appreciation in its small-cap portfolio for Q3 2025, underperforming the Russell 2000 Index which gained 12.4% [1] - The investor letter highlighted White Mountains Insurance Group, Ltd. (NYSE:WTM) as a key stock, noting its recent performance and market capitalization [2] Company Performance - White Mountains Insurance Group, Ltd. (NYSE:WTM) experienced a one-month return of -0.28% and a 52-week gain of 6.82%, with a closing stock price of $1,899.87 and a market cap of $4.892 billion as of November 3, 2025 [2] - The company faced challenges due to industry headwinds and investment volatility, impacting its stock performance [3] Investment Sentiment - Despite the challenges, The London Company expressed confidence in White Mountains Insurance Group's potential for growth in book value per share through prudent capital allocation [3] - The stock is not among the top 30 most popular stocks among hedge funds, with 20 hedge fund portfolios holding it at the end of Q2 2025, an increase from 19 in the previous quarter [4]

Financial Data and Key Metrics Changes - Adjusted earnings per diluted share increased 15.3% year over year to $2.49 with no impact from foreign exchange in the quarter [1] - Adjusted book value per share, excluding foreign currency remeasurement, increased 6.3% [2] - Adjusted return on equity (ROE) was 19.1% to 22.1%, indicating a solid spread to the cost of capital [2] Business Line Data and Key Metrics Changes - In Aflac Japan, net earned premiums declined 4%, while underlying earned premiums decreased 1.2% [3] - The total benefit ratio for Japan was 39.3%, down nearly 10 percentage points year over year [3] - In the U.S., net earned premium increased 2.5%, with a total benefit ratio of 45.6%, which is 200 basis points lower than the previous year [6] Market Data and Key Metrics Changes - Persistency in Japan remained solid at 93.3% year over year [4] - In the U.S., persistency increased by 10 basis points year over year to 79% [6] - The expense ratio in Japan was 19.8%, down 20 basis points year over year, while the U.S. expense ratio was 38.9%, up 90 basis points year over year [5][7] Company Strategy and Development Direction - The company is optimizing efficiencies and migrating to the cloud, which included a one-time termination fee of $21 million [2] - Growth initiatives in Group Life and Disability, Network, Dental and Vision, and Direct to Consumer are expected to scale without impacting the total expense ratio [7] - The company plans to manage the balance sheet and deploy capital to drive strong risk-adjusted ROE with a meaningful spread to the cost of capital [14] Management's Comments on Operating Environment and Future Outlook - Management expects the benefit ratio in Japan for 2025 to be in the 58% to 60% range, with the expense ratio at the lower end of the 20% to 23% range [15] - In the U.S., the benefit ratio for 2025 is expected to be at the lower end of the 48% to 52% range, with the expense ratio in the mid- to upper end of the 36% to 39% range [16] - The pretax profit margin for Japan is anticipated to be in the 35% to 38% range, while for the U.S., it is expected to be at the upper end of the 17% to 20% range [15][16] Other Important Information - The company enhanced liquidity and capital flexibility by $2 billion through the creation of two off-balance-sheet pre-capitalized trusts [12] - The leverage ratio was 22%, within the target range of 20% to 25% [13] - The company repurchased $1 billion of its own stock and paid dividends of $9 million in Q3 [14] Q&A Session Summary Question: What is the outlook for the benefit ratio in Japan? - Management expects the benefit ratio in Japan to be in the 58% to 60% range for 2025 [15] Question: How does the company plan to manage expenses moving forward? - The company anticipates reduced costs and improved efficiency to offset the one-time termination fee over the next few years [7] Question: What are the expectations for the U.S. market in 2025? - The benefit ratio for the U.S. is expected to be at the lower end of the 48% to 52% range, with a pretax profit margin in the upper end of the 17% to 20% range [16]

Unum Group Statistical Supplement Third Quarter 2025 TABLE OF CONTENTS (in millions of dollars, except share data and where noted) Interim Results are Unaudited | | Page | | --- | --- | | Financial Highlights | 1 | | Capital Metrics | 2 | | Ratings | 3 | | Consolidated Statements of Income | 4 | | Sales Data by Segment | 5 | | Consolidated Balance Sheets | 6 | | Financial Results by Segment | 7 | | Quarterly Historical Financial Results by Segment | 8 | | Financial Results and Selected Statistics by Segment ...

Group 1 - Roadzen Inc has extended the maturity date of its $11.5 million senior secured notes by 18 months, from December 31, 2025, to June 30, 2027, enhancing its financial flexibility for global growth [1] - The senior secured notes accrue interest at an annual rate of 15% [2] - Roadzen has signed a deal to acquire a majority controlling stake in a licensed commercial auto insurance broker and managing general underwriter based in California, which holds licenses in multiple states [2] Group 2 - The acquisition will enable Roadzen to underwrite specialty transportation and commercial vehicle risks, serving small and mid-sized fleets through national agency networks [3] - The deal will merge the acquired firm with DrivebuddyAI and National Auto Club, creating an integrated platform for telematics, roadside assistance, claims, and distribution in the U.S. commercial auto market [3] - The acquisition is expected to add 90 new fleets, representing over $100 million in potential annual premiums, and contribute more than $8 million in annual revenue at 25% Adjusted EBITDA margins [4] Group 3 - Roadzen projects that the combined platform will exceed $200 million in Gross Written Premium within three years, strengthening its position in the $75+ billion U.S. commercial auto insurance market [4] - Following the announcement, RDZN shares closed lower by 11.70% at $1.510 [4]

Core Viewpoint - TWFG, Inc. has acquired Alabama Insurance Agency, enhancing its presence in the Southeastern United States and expanding its network of independent agents [1][2]. Group 1: Acquisition Details - TWFG, Inc. has acquired Alabama Insurance Agency, Inc. and its 20 affiliated locations across Alabama [1]. - This acquisition is part of TWFG's growth strategy and aims to deliver personalized insurance solutions [2][3]. Group 2: Strategic Benefits - The acquisition strengthens TWFG's commitment to providing innovative insurance solutions through a growing network of independent agents [2]. - Alabama Insurance Agency's strong community ties and customer-first approach will benefit from TWFG's national scale, brand recognition, technology infrastructure, and carrier relationships [2][3]. Group 3: Leadership Statements - Gene Ruggario, President of Alabama Insurance Agencies, expressed that partnering with TWFG is beneficial for customers, staff, and carrier partners [3]. - Gordy Bunch, Founder and CEO of TWFG, highlighted that the acquisition aligns with the company's mission of caring for customers and empowering independent agents [3].

Core Insights - The cost of insuring homes and cars in the United States has significantly outpaced inflation, with homeowners' insurance premiums increasing over 40% nationwide in the past six years and a 10.4% jump in 2024 alone [1] - Specific states have experienced even more dramatic increases, such as Utah, where rates have surged nearly 60% in three years, and auto insurance rates rising 56% since 2020 [2] - Factors driving these premium increases include environmental changes, economic pressures, and structural issues within the insurance industry [4][5] Group 1: Premium Increases - Homeowners' insurance premiums have increased by more than 40% nationwide over the past six years, with 2024 seeing an average rate increase of 10.4% [1] - In Utah, homeowners' insurance rates have risen nearly 60% in three years, while auto insurance rates have increased by 56% since 2020 [2] - A Kansas homeowner experienced a 47% increase in his homeowners insurance premium, from approximately $1,300 to nearly $1,900 in two years, despite not filing any claims [3] Group 2: Factors Driving Increases - A combination of environmental, economic, and structural factors has led to sharply higher insurance costs, with natural disasters becoming more frequent and severe, resulting in insurers paying out billions more in claims [4][5] - Rising costs of construction materials, auto parts, and labor have increased repair and replacement expenses, contributing to higher premiums [3] - Insurers are facing years of underwriting losses, leading them to raise rates or reduce coverage to satisfy shareholders and improve financial performance [3] Group 3: Reinsurance and Risk Management - The cost of reinsurance has also increased, further inflating insurance costs and disrupting the balance between risk and price [6] - Homeowners and drivers are now facing steep increases in premiums that are not necessarily correlated with their individual claim history or driving records [4]

Core Insights - James River Group Holdings, Ltd. reported a significant turnaround in underwriting income, achieving $8.9 million in Q3'25 compared to a loss of $56.8 million in Q3'24, with an improved combined ratio of 94.0% from 135.5% [1][2] Financial Performance - The combined ratio for Q3'25 was composed of a loss ratio of 65.7% and an expense ratio of 28.3%, improving from 104.1% and 31.4% in Q3'24 respectively [2] - The company experienced a net loss from continuing operations available to common shareholders of $0.4 million, a significant improvement from a net loss of $40.7 million a year earlier [2] - Adjusted net operating income for the quarter was $17.4 million, a recovery from a loss of $28.2 million in the previous year [2] Premiums and Revenue - Gross written premiums (GWP) decreased by 28% to $237.3 million from $330.4 million, with Excess and Surplus Lines GWP at $209.8 million (down 9% year over year) and Specialty Admitted Insurance GWP at $27.4 million (down 73%) [3] - Net written premiums totaled $122.7 million, down 17% from $147.3 million, while net earned premiums stood at $148.5 million, down 7% from $159.7 million [3] Investment Income - Net investment income in Q3'25 was $21.9 million, a 7% decrease from $23.6 million in Q3'24, primarily due to a lower interest rate environment and a one-time payment of over $0.8 million in the prior-year quarter related to asset sales [4] Overall Revenue - Total revenues for the quarter amounted to $172.7 million, down from $191.5 million [5] Management Commentary - The CEO highlighted that the third quarter results provide strong returns for shareholders and reflect the company's underwriting discipline, particularly in the casualty-focused small and medium enterprise portfolio [5] - The company has completed its E&S leadership reorganization and is well underway with portfolio repositioning, aiming to capitalize on market opportunities and drive profitability [6]

Core Insights - Hagerty, Inc. reported strong financial growth for the third quarter and year-to-date 2025, with total revenue increasing by 18% year-over-year to $380.0 million for Q3 and $1,068.3 million year-to-date [5][6][11] - The company has raised its full-year 2025 outlook for total revenue growth to 14-15% and net income growth to 58-65% [3][11] - Operating income for Q3 2025 surged by 240% year-over-year to $34.3 million, while year-to-date operating income increased by 78% to $107.7 million [10][21] Financial Performance - Year-to-date 2025 total revenue increased by 18% to $1,068.3 million, with Q3 total revenue also up by 18% to $380.0 million [5][6] - Written premium for Q3 2025 rose by 16% year-over-year to $334.0 million, and year-to-date written premium increased by 13% to $934.4 million [5][6] - Adjusted EBITDA for Q3 2025 increased by 106% year-over-year to $49.7 million, with year-to-date adjusted EBITDA up by 46% to $153.1 million [10][21] Growth Drivers - Marketplace revenue saw significant growth, increasing by 58% year-over-year to $34.2 million in Q3 and by 135% year-to-date to $89.9 million, driven by higher inventory sales and the addition of European auctions [6][10] - The company signed a new partnership with Liberty Mutual, enhancing its market position [5] Operational Metrics - Policies in force retention was 88.6% as of September 30, 2025, with total insured vehicles increasing by 7% year-over-year to 2.7 million [6] - The loss ratio for Q3 2025 improved to 42.0%, down from 60.0% in the prior year period, reflecting better claims management [6][10] Future Outlook - Hagerty anticipates continued growth in 2026, supported by investments in technology and strategic partnerships [3][8] - The company plans to invest $20 million in its new technology platform, Duck Creek, to enhance operational efficiency [8]

Core Insights - Wright National Flood Insurance Company has completed the acquisition of Poulton Associates, LLC, enhancing its insurance operations [1] Company Overview - Wright Flood is the largest flood insurance provider in the United States, offering federal, excess, and private flood insurance, rated A (Excellent) by AM Best [2] - The company serves approximately 4.7 million flood policyholders and is recognized for its user-friendly technology and exceptional claims reputation [2] Parent Company Information - Brown & Brown, Inc. is a leading insurance brokerage firm with over 700 locations and more than 23,000 professionals, providing customized insurance solutions since 1939 [4]

Market Overview - Stock markets across Asia and Europe experienced significant declines following warnings from CEOs of Goldman Sachs and Morgan Stanley about a potential major correction in equity markets [1][3] - The STOXX Europe 600 fell by 1.41%, the U.K.'s FTSE 100 decreased by 1.11%, Japan's Nikkei 225 dropped by 1.74%, and South Korea's KOSPI saw the largest decline at 2.37% [2][8] CEO Insights - Goldman Sachs CEO David Solomon projected a potential 10 to 20% drawdown in equity markets within the next 12 to 24 months [3] - Morgan Stanley CEO Ted Pick echoed this sentiment, suggesting that 10 to 15% drawdowns could occur without a macroeconomic crisis [3] Investment Strategy - Morgan Stanley's chief investment officer, Lisa Shalett, advised clients to consider selling speculative tech stocks and to focus on diversifying into large-cap core and quality stocks, particularly those benefiting from generative AI [4] Systemic Risk Concerns - UBS Chair Colm Kelleher highlighted systemic risks in the private credit market, particularly due to inadequate regulation and the use of lenient ratings agencies by loan providers [5] - Reports indicated that loan originators are tightening legal terms in private credit deals, signaling potential trouble ahead [6] Federal Reserve Outlook - Two members of the Federal Reserve expressed uncertainty regarding further interest rate cuts in December, with Fed Governor Lisa Cook emphasizing that each meeting's decisions are based on incoming data [7] - The ongoing U.S. government shutdown has contributed to economic uncertainty, with key trade data being delayed [7]