Financial Data and Key Metrics Changes - The company reported record 2025 full-year core earnings per share of $4.71, a 39% increase over the prior year, with a shareholder return on equity of 12.4% [4][15] - Total revenues increased by 7% year-over-year, with net premiums and contract deposits earned also up more than 7% [4][15] - Core earnings for 2025 were $196 million, reflecting strong underlying profitability across the business [15][19] Business Line Data and Key Metrics Changes - In Property and Casualty (P&C), the underlying combined ratio improved to 84.3%, a 5-point improvement year-over-year, with sales increasing by 6% [5][19] - Auto reported a combined ratio of 96.5%, improving nearly 2 points over the prior year, with policyholder retention stable at 84% [6][19] - Life and Retirement saw record life sales in Q4, up 21% year-over-year, with retirement deposits increasing by 4% [6][21] - Individual Supplemental sales increased nearly 40% year-over-year, while Group Benefits recorded a 33% increase [4][7] Market Data and Key Metrics Changes - The company expanded its distribution organization significantly, increasing points of distribution by 15% across all channels [8] - Unaided brand awareness reached 35% in 2025, up from less than 10% a year ago, indicating strong market recognition [7][8] Company Strategy and Development Direction - The company aims for a 10% average compound annual growth rate in core EPS and a sustainable 12%-13% shareholder return on equity over the next three years [11][26] - Investments in marketing, infrastructure improvements, and product expansion are prioritized to support sustained profitable growth [11][12] - The introduction of the Horace Mann Club aims to provide educators with financial wellness tools and resources, enhancing community engagement [9] Management Comments on Operating Environment and Future Outlook - Management noted that 2025 benefited from unusually light severe weather activity, with pre-tax catastrophe losses of $62 million contributing positively to core earnings [5][10] - The company does not expect a similarly low level of catastrophe losses in 2026 or subsequent years, indicating a cautious outlook [10][18] - Management expressed confidence in achieving long-term financial targets while navigating a competitive environment [26] Other Important Information - The company repurchased $21 million of shares in 2025, the highest annual level since 2022, with an additional $50 million authorization for share repurchases [14][25] - The early retirement offering was taken up by about 8% of eligible employees, aimed at aligning the workforce with future needs [56][59] Q&A Session Summary Question: Distribution initiatives and policy count growth outlook - Management indicated that 2025 was the strongest year for distribution, with significant sales momentum and increased brand awareness [30][31] Question: EPS outlook for 2026 and growth acceleration - Management confirmed expectations for a 10% annual EPS growth rate and anticipated accelerating top-line growth due to investments made [32][34] Question: Catastrophe loss assumptions in guidance - Management clarified that the $90 million catastrophe loss assumption for 2026 is based on a consistent year-over-year approach, not influenced by prior year developments [36][37] Question: Early retirement offering participation - Approximately 8% of eligible employees participated in the early retirement offering, aimed at workforce planning [56][59] Question: Free cash flow conversion targets - The company achieved about 80% free cash flow conversion in 2025 and targets over 75% for 2026, supported by capital-efficient business growth [63][64] Question: Investment in Supplemental and Group segment - Management expressed satisfaction with progress in Individual Supplemental and Group Benefits, with strong sales and distribution efforts [70][72]

Financial Data and Key Metrics Changes - Horace Mann reported record 2025 full-year core earnings per share of $4.71, a 39% increase over the prior year, with a shareholder return on equity of 12.4% [4][15] - Total revenues increased by 7% year-over-year, with net premiums and contract deposits earned also up more than 7% [4][15] - Core earnings for 2025 were $196 million, reflecting strong underlying profitability across the business [15][19] Business Line Data and Key Metrics Changes - In Property and Casualty (P&C), core earnings were $112 million, more than double the prior year, with a reported combined ratio of 89.7, improving over 8 points year-over-year [19] - Auto net written premiums increased to $502 million, with a combined ratio of 96.5, improving nearly 2 points [19] - Life and retirement segment saw core earnings increase by 13% to $61 million, with net premiums written and contract deposits growing to $612 million, up 7% year-over-year [21] - Individual supplemental sales increased nearly 40% year-over-year, while group benefits recorded a 33% increase [6][22] Market Data and Key Metrics Changes - Unaided brand awareness reached 35% in 2025, up from less than 10% a year ago, indicating significant growth in market recognition [7] - New business customer interactions increased by 37% in the fourth quarter, reflecting improved marketing effectiveness [8] Company Strategy and Development Direction - The company aims for a 10% average compound annual growth rate in core EPS and a sustainable 12%-13% shareholder return on equity over the next three years [11][26] - Investments in marketing, infrastructure improvements, and product expansion are prioritized to support sustained profitable growth [12][14] - The introduction of the Horace Mann Club aims to enhance engagement with educators and provide financial wellness tools [9] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 benefited from unusually light severe weather activity, with pre-tax catastrophe losses of $62 million contributing positively to core earnings [5] - The company expects a normalized core earnings per share guidance range of $4.20-$4.50 for 2026, reflecting a nearly 10% increase [11][17] - Management expressed confidence in achieving long-term financial targets despite potential macroeconomic uncertainties [26] Other Important Information - The company repurchased $21 million of shares in 2025, the highest annual level since 2022, with an additional $50 million authorization in May [14][25] - The early retirement offering was taken up by about 8% of eligible employees, aimed at aligning the workforce with future needs [56][59] Q&A Session Summary Question: Distribution initiatives and policy count growth outlook - Management indicated strong sales momentum driven by distribution efforts, with brand awareness and website traffic significantly increasing [30][31] Question: EPS outlook for 2026 and growth acceleration - Management confirmed expectations for a 10% annual earnings per share growth rate, with anticipated accelerating top-line growth due to investments made [33][34] Question: Catastrophe loss assumptions and reinsurance program - Management clarified that the catastrophe loss guidance for 2026 is based on a consistent approach, not influenced by one year's results [36][37] Question: Early retirement offering participation - Approximately 8% of eligible employees participated in the early retirement offering, aimed at workforce planning [56][59] Question: Investment in supplemental and group segment - Management expressed satisfaction with progress in individual supplemental and group benefits, with strong sales and distribution efforts [70][72]

Financial Data and Key Metrics Changes - Horace Mann reported record full-year core earnings per share of $4.71, a 39% increase over the prior year, with a shareholder return on equity of 12.4% [4][16] - Total revenues increased by 7% year-over-year, with net premiums and contract deposits earned also up more than 7% [4][16] - Core earnings for 2025 were $196 million, reflecting strong underlying profitability across the business [16] Business Line Data and Key Metrics Changes - In Property and Casualty (P&C), core earnings were $112 million, more than double the prior year, with net written premiums increasing by 7% to $830 million [20] - The reported combined ratio for P&C improved to 89.7, an improvement of over 8 points year-over-year [20] - Life and retirement segment saw core earnings increase by 13% to $61 million, with net premiums written and contract deposits growing to $612 million, up 7% year-over-year [22] - Individual supplemental sales increased by nearly 40% year-over-year, while group benefits recorded a 33% increase [6][24] Market Data and Key Metrics Changes - Unaided brand awareness reached 35% in 2025, up from less than 10% a year ago, indicating significant growth in market recognition [8] - New business customer interactions increased by 37% in the fourth quarter, reflecting enhanced marketing and distribution efforts [9] Company Strategy and Development Direction - The company aims for a 10% average compound annual growth rate in core EPS and a sustainable 12%-13% shareholder return on equity over the next three years [12][28] - Investments in marketing, infrastructure improvements, and product expansion are prioritized to support long-term growth [12][13] - The introduction of the Horace Mann Club aims to provide educators with financial wellness tools and resources, enhancing community engagement [10] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 benefited from unusually light severe weather activity, with pre-tax catastrophe losses of $62 million contributing positively to core earnings [5] - The company expects a normalized core earnings per share guidance range of $4.20-$4.50 for 2026, reflecting a nearly 10% increase [12][18] - Management expressed confidence in achieving long-term financial targets while navigating a competitive environment [28] Other Important Information - The company repurchased $21 million of shares in 2025, the highest annual level since 2022, with an additional $50 million authorization in May [14][27] - The early retirement offering was taken up by about 8% of eligible employees, aimed at aligning the workforce with future needs [58][59] Q&A Session Summary Question: Distribution initiatives and policy count growth outlook - Management highlighted strong sales momentum driven by distribution efforts, with brand awareness and website traffic significantly increasing [31][32] Question: EPS outlook for 2026 and growth acceleration - Management confirmed expectations for a 10% annual earnings per share growth rate, with accelerating top-line growth anticipated as investments yield results [34][36] Question: Catastrophe loss assumptions and reinsurance program - Management clarified that the $90 million catastrophe loss assumption for 2026 is based on consistent year-over-year approaches and does not include prior year development in planning [39][40] Question: Increase in educator household access - Management noted a significant increase in accessible educator households due to strategic marketing and partnerships, contributing to overall growth [44][51] Question: Long-term target for net interest spread in retirement - Management reaffirmed a target of a 200 basis point spread for fixed annuities, although 2025 performance was impacted by underperformance in commercial mortgage loans [52] Question: Early retirement offering participation - Management reported a satisfactory participation rate in the early retirement offering, aimed at workforce planning and future skill alignment [58][61] Question: Investment in supplemental and group segment - Management expressed confidence in the growth and earnings diversification from individual supplemental and group benefits, with favorable benefit ratios expected to normalize [71][76]

Group 1: Arthur J. Gallagher Acquires Reck & Co. - Arthur J. Gallagher & Co. has acquired Reck & Co. GmbH, a specialist provider of global transport and marine claims services based in Bremen, Germany [1][2] - The acquisition is expected to enhance Gallagher Bassett's claims service offerings in Europe, leveraging Reck & Co.'s strong reputation in the global marine insurance market [3] - The Reck & Co. team will continue to operate under their current leadership, ensuring continuity in service delivery [2] Group 2: Howden Acquires Polygon Insurance Brokers Ltd. - Howden has acquired Polygon Insurance Brokers Ltd. (PIBL), a retail insurance broker in the Channel Islands, to strengthen its service capabilities in Jersey and Guernsey [3][4] - PIBL specializes in insurance solutions for the offshore financial services sector, high net worth individuals, and family offices, focusing on professional indemnity and cyber liability products [5][6] - The acquisition is part of Howden's strategy to expand its business in the Channel Islands, following its recent purchase of ARM Holdings [8] Group 3: Clear Group Acquires Gauntlet and Shire Insurance Services - Clear Group has acquired Gauntlet Appointed Representative Network and Gauntlet Retail Brokers to enhance its Brokerbility network for independent brokers in the UK [11][12] - The acquisition of Shire Insurance Services, a specialist broker in the veterinary sector, adds to Clear Group's portfolio and expertise in this niche market [19][21] - Both acquisitions aim to provide better support and resources for independent brokers, facilitating their growth and operational efficiency [16][18]

Financial Data and Key Metrics Changes - AFG's core net operating earnings were $10.29 per share for the full year 2025, with a core operating return on equity of 18.2% [5] - For Q4 2025, core net operating earnings per share were $3.65, resulting in an annualized core return on equity of 25.2% [5] - The company returned over $700 million to shareholders in 2025, including $334 million in special dividends and $274 million in regular dividends [6][10] - AFG's leverage ratio is less than 28%, with no debt maturities until 2030 [10] Business Line Data and Key Metrics Changes - Underwriting profits in specialty property and casualty businesses grew 41% in Q4 2025, with a combined ratio of 84.1% [12][14] - Gross written premiums for Q4 2025 were up 2%, while net written premiums were down 1% compared to Q4 2024 [14] - The property and transportation group achieved a combined ratio of 70.6% in Q4 2025, an improvement of nearly 19 points from the prior year [16] - The specialty casualty group reported a combined ratio of 96.7% in Q4 2025, 5.3 points higher than the previous year [18] Market Data and Key Metrics Changes - The annualized return on alternative investments in the P&C portfolio was 0.9% for Q4 2025, down from 4.9% in the prior year [8] - AFG's investment portfolio totaled $17.2 billion, with approximately 65% invested in fixed maturities yielding about 5.25% [7][10] - The company expects a growth in net written premiums of 3%-5% for 2026, with a combined ratio target of approximately 92.5% [23] Company Strategy and Development Direction - AFG aims to maintain a disciplined operating philosophy and capitalize on its diversified portfolio to navigate economic conditions [12][13] - The company is optimistic about several startup businesses and expects to see growth opportunities in 2026 [24] - AFG's strategy includes a focus on capital management, with plans for acquisitions, special dividends, or share repurchases [10][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of reserves and the ability to achieve favorable development in the future [27] - The company is cautious about pockets of softening rates and competitive conditions but remains focused on profitable growth [24] - Management highlighted the potential for improved returns from the alternative investment portfolio as market conditions stabilize [63] Other Important Information - AFG declared a special dividend of $1.50 per share, payable on February 25, 2026 [9] - The company has returned $4.7 billion in special dividends since 2021 [10] Q&A Session Summary Question: What does the 2026 business plan assume in terms of rates? - Management indicated that they expect to continue achieving good price increases where needed, with no specific amount identified for prior development in the combined ratio [27][29] Question: Was there a change in loss picks for the casualty underlying loss ratio? - Management noted continued caution around social inflation-exposed businesses and adjustments in loss picks, particularly in California workers' compensation [30][32] Question: What drove the inflection in pricing in the lender-placed business? - Management expressed no concerns about political risks and noted that pricing can vary based on client property types, with expectations of low single-digit growth in the business [53][56] Question: Are the social inflation-related businesses stabilized? - Management indicated that corrective steps have been taken, and there is potential for mid-single-digit growth in these businesses moving forward [60] Question: What are the expectations for the alternative investment portfolio? - Management expects a return to historical levels of returns on alternatives, contingent on improved market conditions for multifamily properties [63]

Financial Data and Key Metrics Changes - AFG's Core Net Operating Earnings were $10.29 per share for the full year 2025, with a core operating return on equity of 18.2% [5] - For Q4 2025, Core Net Operating Earnings per share were $3.65, resulting in an annualized core return on equity of 25.2% [5] - The company returned over $700 million to shareholders in 2025, including $334 million in special dividends and $274 million in regular dividends [6][10] Business Line Data and Key Metrics Changes - Underwriting profits in specialty property and casualty businesses grew 41% in Q4 2025, with a combined ratio of 84.1%, an improvement of nearly 5 points from the prior year [14] - Gross written premiums for Q4 2025 were up 2%, while net written premiums were down 1% compared to the same period in 2024 [14] - The Property and Transportation Group achieved a 70.6% combined ratio in Q4 2025, an improvement of nearly 19 points from the prior year [16] Market Data and Key Metrics Changes - The annualized return on alternative investments in the P&C portfolio was 0.9% for Q4 2025, down from 4.9% in the prior year [8] - AFG's investment portfolio totaled $17.2 billion, with approximately 65% invested in fixed maturities yielding about 5.25% [7][10] Company Strategy and Development Direction - AFG aims for premium growth of 3%-5% in 2026, with a combined ratio target of approximately 92.5% [23] - The company is optimistic about several startup businesses and expects to see growth opportunities in specialty casualty and other lines [24][68] - AFG's strategy includes maintaining a disciplined focus on underwriting profitability while pursuing growth opportunities [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of reserves and the ability to navigate competitive conditions while pursuing profitable growth [24] - The company anticipates a stable crop year in 2026, which is expected to positively impact the crop insurance business [47] - Management acknowledged pockets of softening rates but remains focused on disciplined growth strategies [24] Other Important Information - AFG declared a special dividend of $1.50 per share, payable on February 25, 2026, with an aggregate amount of approximately $125 million [9] - The company has declared $55.50 per share in special dividends since 2021, totaling $4.7 billion [10] Q&A Session Summary Question: What does the 2026 business plan assume in terms of rates relative to the 5% P&C renewal pricing? - Management indicated that they do not specifically identify amounts for prior development in the combined ratio but expect favorable development based on historical trends [27] Question: Was there any change in loss picks for the casualty underlying loss ratio? - Management noted continued caution around social inflation-exposed businesses and adjustments in loss picks, particularly in California workers' compensation [30][32] Question: What drove the inflection in pricing for the lender-placed business? - Management expressed confidence in the profitability of the lender-placed business and noted that pricing can vary based on client property characteristics [53][55] Question: Are the social inflation-related businesses stabilized? - Management indicated that corrective steps have been taken, and there are opportunities for mid-single-digit growth in these businesses [60] Question: What is the outlook for the alternative investment portfolio? - Management expects a return to historical levels of 10% or better, contingent on improvements in the multifamily property market [62][63]

Core Thesis - Chubb Limited is viewed positively due to its strong financial performance, disciplined capital allocation, and long-standing reputation for stability in the insurance sector [1][6]. Financial Performance - Chubb reported Q4 2025 results with revenue of $11.2 billion, net income of $2.58 billion, operating income of $2.45 billion, and EPS of $6.33, reflecting revenue growth of 16.8% and EPS growth of 18.4% year-over-year [4]. - The company has a current dividend yield of 1.28% and a conservative payout ratio of 16.19%, indicating a balance between shareholder returns and reinvestment for growth [3]. Growth Drivers - Chubb's client base has expanded by over 9% in the past year, with recurring revenue accounting for approximately 73% of total revenue, providing stable cash flows [4]. - Strategic acquisitions, particularly in Asia, have broadened market presence and added new premium streams [5]. - Investments in digital transformation and automation are enhancing efficiency and customer experience [5]. Historical Performance - Chubb has a 31-year consecutive dividend growth record, demonstrating its commitment to returning value to shareholders [3]. - The company has achieved 24% dividend growth over the past five years, ensuring sustainable payouts even during economic uncertainty [4]. Market Position - Chubb operates in 54 countries, serving a diverse range of clients through various insurance products, which contributes to its strong reliability and consistent dividend growth [3][5]. - The company's legacy of over 140 years reinforces its track record of innovation, adaptability, and shareholder value creation [5].

Financial Data and Key Metrics Changes - AFG's core net operating earnings were $10.29 per share for the full year 2025, with a core operating return on equity of 18.2% [5] - For Q4 2025, core net operating earnings per share were $3.65, resulting in an annualized fourth quarter core return on equity of 25.2% [5] - The company returned over $700 million to shareholders in 2025, including $334 million in special dividends and $274 million in regular dividends [6][10] Business Line Data and Key Metrics Changes - Underwriting profit in specialty property and casualty insurance grew 41% in Q4 2025, with a combined ratio of 84.1%, an improvement of nearly 5 points from the prior year [12][13] - Gross written premiums for Q4 2025 increased by 2%, while net written premiums decreased by 1% compared to the same period in 2024 [13] - The property and transportation group achieved a combined ratio of 70.6% in Q4 2025, an improvement of nearly 19 points from the prior year [16] Market Data and Key Metrics Changes - The annualized return on alternative investments in the P&C portfolio was 0.9% for Q4 2025, down from 4.9% in the prior year [8] - The company expects a growth in net written premiums of 3%-5% for 2026, with a combined ratio target of approximately 92.5% [22] Company Strategy and Development Direction - AFG aims to maintain a disciplined focus on underwriting profitability while pursuing growth opportunities in 2026 [24] - The company is optimistic about several startup businesses and expects to see progress in areas like Specialty Construction and Embedded Solutions [45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of reserves and the ability to navigate changing economic conditions [12] - The company is mindful of softening rates and competitive conditions but believes its reserve strength and healthy rate environment will support growth [24] Other Important Information - AFG's leverage ratio is less than 28%, with no debt maturities until 2030, and insurance company financial strength ratings at A+ [10] - The company declared a special dividend of $1.50 per share, payable on February 25, 2026 [9] Q&A Session Summary Question: What does the 2026 business plan assume in terms of rates relative to the 5% P&C renewal pricing? - Management indicated that they are not specifically identifying amounts for prior development but expect favorable development based on their reserving strategy [27] Question: Was there any change in loss picks for the casualty underlying loss ratio? - Management noted continued caution around social inflation-exposed businesses and adjustments in loss picks, particularly in California workers' compensation [30][31] Question: What drove the inflection in pricing in the lender-placed business? - Management stated that pricing can vary based on client property types and that the business remains extremely profitable despite some lumpiness in pricing [56] Question: Are the social inflation-related businesses stabilized? - Management indicated that corrective steps have been taken, and there is potential for mid-single-digit growth in these businesses moving forward [62] Question: What is the outlook for the alternative investment portfolio? - Management expects a return to historical levels of returns on alternatives will require a better rate environment for multifamily properties [66]

Table of Contents | | Page | | --- | --- | | Consolidated Financial Highlights | 3 | | Consolidated Statements of Operations | 4 | | Consolidated Balance Sheets | 5 | | Capital Metrics | 6 | | Property & Casualty Segment | | | Statements of Operations | 7 | | Auto Products | 8 | | Property & Other Products | 9 | | Life & Retirement Segment | | | Statements of Operations | 10 | | Life Insurance Products | 10 | | Retirement Products | 11 | | Account Value Rollforward | 12 | | Supplemental & Group Benefits | | ...

Core Insights - American Financial Group, Inc. (AFG) reported fourth-quarter 2025 net operating earnings per share of $3.65, exceeding the Zacks Consensus Estimate by 14.8% and reflecting a 17% year-over-year increase driven by underwriting income [1][2] Financial Performance - Total revenues for the quarter were $2 billion, a decrease of 2.7% year over year, primarily due to lower net investment income, and missed the Zacks Consensus Estimate by 1.4% [3] - Net earned premiums declined 2.4% year over year to $1.81 billion, slightly missing the Zacks Consensus Estimate of $1.82 billion [3] - Net investment income fell 5.7% year over year to $183 million, below both the estimate of $192 million and the Zacks Consensus Estimate of $196 million [4] - Total costs and expenses decreased 7.9% year over year to $1.7 billion, attributed to lower losses and expenses of managed investment entities, also lower than the estimate of $1.8 billion [4] Segment Analysis - The Specialty P&C Insurance segment generated $1.4 billion in net written premiums, down 1% year over year, with the Property & Transportation Group seeing a 2% decline to $398 million [5] - Specialty Casualty Group's net written premiums increased 3% year over year to $796 million, surpassing the estimate of $758 million, while Specialty Financial Group's premiums decreased 10% to $250 million, below the estimate of $291.8 million [6] - Underwriting profit for the Specialty P&C Insurance segment rose 41% year over year to $287 million, driven by the Property and Transportation Group, exceeding the estimate of $178.8 million [7] Catastrophe Impact - Catastrophe losses were $4 million in the quarter, significantly lower than the $21 million loss in the previous year, contributing to improved underwriting profit in the Property and Transportation Group [8] Profitability Metrics - The current combined ratio was 83.0%, up 230 basis points from the previous year's 80.7%, with results benefiting from favorable prior-year reserve development [9] - Pre-tax core operating earnings before income taxes for the P&C Insurance segment increased 16.4% year over year to $440 million [7] Shareholder Returns - AFG returned $707 million to shareholders in 2025, including $334 million in special dividends and $99 million in share repurchases, and declared a $1.50 special dividend payable on February 25, 2026 [10][13] Full-Year Overview - For the full year, net operating EPS was $10.29, down 4.3% year over year, with revenues decreasing 1.8% to $8.3 billion and net premiums written remaining flat at $7.1 billion [11] - The combined ratio improved by 20 basis points to 91% [11] Future Projections - AFG projects core operating EPS of $11 and a core operating ROE of approximately 18% for 2026, with net written premiums expected to grow by 3-5% and a combined ratio estimated at 92.5% [14]