Financial Data and Key Metrics Changes - The company reported total revenues of $1.6 billion for the third quarter, representing a growth of 35.4% year-over-year and 3.5% organic growth [6][15] - Adjusted EBITDA margin improved by 170 basis points to 36.6%, and adjusted earnings per share grew over 15% to $1.05 [6][16] - Contingent commissions increased by $46 million, with $12 million attributed to AssuredPartners [15] Business Line Data and Key Metrics Changes - The Retail segment achieved total revenue growth of 37.8%, with organic growth at 2.7% [16] - The Specialty Distribution segment grew total revenues by 30%, with organic growth of 4.6% [18] - The organic growth in Retail was impacted by approximately 1% due to adjustments related to employee benefits incentives [9][10] Market Data and Key Metrics Changes - Commercial insurance pricing remained stable, with rates for most lines similar to the second quarter [7][8] - Medical costs increased by 6%-8%, while pharmacy costs rose over 10% [7] - Rates in the admitted P&C markets were flat to up 5% compared to the prior year [8] Company Strategy and Development Direction - The company aims to enhance its solutions and value to customers through leadership changes and the integration of AssuredPartners [4][5] - The Board of Directors raised the dividend by 10% and expanded share repurchase authorization to $1.5 billion [5] - The company is focused on both organic and inorganic growth, with a strong pipeline for M&A activities [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about economic growth remaining stable, with a cautious bias among business leaders [7][23] - The company anticipates organic growth in the fourth quarter to be similar to the third quarter, influenced by employee benefits adjustments [16][21] - Management noted that the pricing environment for casualty and auto rates is expected to continue increasing [24] Other Important Information - The company generated $1 billion in cash flow from operations in the first nine months of 2025, a 24% increase compared to the same period in 2024 [20] - The effective tax rate for the quarter was 24.7%, remaining flat compared to the prior year [16] Q&A Session Summary Question: Relationship of organic growth to EBITDA margins - Management clarified that organic growth is just one component of margin drivers and should not be directly correlated [29][30] Question: Impact of government shutdown on business - Management acknowledged some businesses are impacted, particularly in specialty and retail segments, but expect revenue to catch up once the government reopens [31][32] Question: Retail organic growth impact - Management explained the 1% impact was due to adjustments in incentive commissions for employee benefits [35][36] Question: Future of admitted vs. E&S markets - Management indicated that while there may be some movement back to admitted markets, the E&S market continues to grow [42] Question: Expectations for property renewal rates - Management expects property renewal rates to remain similar, with potential for some markets to become more aggressive at year-end [53][54]

Group 1 - The U.S. federal government has partially shut down, leading to hundreds of thousands of government employees being placed on unpaid leave, affecting various sectors of national operations [2] - The first day of the shutdown saw an unexpected ADP private employment report indicating a decrease of 32,000 jobs in the private sector, contrary to market expectations, with the Labor Department's reports also facing delays [3][4] - The shutdown has created significant uncertainty for the Federal Reserve and market investors, as the lack of key economic data complicates decision-making processes [4] Group 2 - The shutdown directly impacts ordinary citizens, with the Social Security Administration delaying the announcement of the 2026 cost-of-living adjustment, affecting over 74 million beneficiaries [5] - The real estate market is experiencing disruptions, with delays in loan applications through federal agencies and a halt in new flood insurance policies, affecting approximately 1,400 property transactions daily [5] - The Small Business Administration's loan guarantee operations have been suspended, preventing around 320 small businesses from obtaining approximately $170 million in guaranteed loans each day, which directly suppresses entrepreneurial activity [7] Group 3 - Certain government functions continue to operate independently, such as NASA's Artemis lunar exploration program, which remains unaffected despite the shutdown, with employees required to log hours for future payment [6] - Major financial regulatory bodies, including the Federal Reserve and the Federal Deposit Insurance Corporation, continue to function normally, providing a buffer for financial stability during the shutdown [6] Group 4 - Historical patterns suggest that resolutions to government shutdowns often occur when public dissatisfaction reaches a peak, as seen in the 2018 shutdown, which ended partly due to increased complaints about airport delays [8] - If the current shutdown persists, federal employees on unpaid leave may face salary interruptions, and potential funding shortages for the Department of Defense could impact military pay, creating pressure for political compromise [9]

Core Insights - The article discusses the significant flood protection gap in the EU, highlighting that to achieve a uniform flood insurance penetration rate of 75%, total premiums must at least double, with current uninsured flood losses estimated at €27 billion annually. Increasing insurance penetration could reduce these losses by up to 50% [2][7][8] - It also addresses the financial vulnerability of low-income households in the U.S. regarding vehicle flood damages, revealing that FEMA provided over $160 million in assistance from 2007 to 2022, with a significant portion of recipients being low-income renters [9][11] - The potential for public-private partnership (PPP) models in pandemic insurance is explored, suggesting that intertemporal risk-sharing and capital accumulation could enhance resilience against future pandemics [12][13] - The impact of risk aversion on insurance premium rigidity is analyzed, indicating that risk-averse companies may maintain current premium rates despite changes in risk, contrasting with risk-neutral companies that would adjust rates [5][6][14] Summary by Sections Flood Protection Gap - The EU needs to double its total insurance premiums to reach a 75% flood insurance penetration rate, with current average annual uninsured losses at €27 billion. Increasing penetration could lead to a potential loss reduction of up to 50% [2][7][8] Household Disaster Assistance - From 2007 to 2022, FEMA awarded over $160 million to applicants for uninsured vehicle flood damages, with more than half of the applicants being renters and nearly two-thirds earning $30,000 or less annually. The median award represented about 33% of the median annual household income [9][11] Pandemic Insurance - The article examines the feasibility of pandemic insurance in Switzerland, emphasizing the need for a PPP model that incorporates risk-sharing and capital accumulation to mitigate revenue losses faced by firms during pandemics [12][13] Risk Aversion and Premium Rigidity - A risk-averse insurance company may choose not to change premium rates despite having information on client demand, while a risk-neutral company would adjust rates accordingly. The degree of risk aversion significantly affects the size of premium adjustments [5][6][14]

Core Insights - Hurricane insurance is not a standalone policy but a combination of homeowners insurance, flood insurance, and windstorm insurance that provides coverage for various types of hurricane damage [3][5][30] Homeowners Insurance - Standard homeowners insurance typically covers damage from rain and wind but does not cover flooding, which is a common cause of hurricane-related losses [2][4] - Homeowners insurance quotes require information about the property, including its age, roof type, and previous claims [7][8] - Homeowners may consider endorsements for additional coverage, such as protection against sewer backups, which are often excluded from standard policies [9] Flood Insurance - Flooding is generally not covered by standard home or renters insurance, necessitating a separate flood insurance policy [10][11] - Most flood insurance policies are issued through the National Flood Insurance Program (NFIP), which is managed by FEMA [11][12] - NFIP policies last for one year, with a 30-day grace period for claims if renewed [13] Windstorm Insurance - Separate windstorm insurance may be necessary if wind damage is not covered under homeowners insurance, especially in hurricane-prone areas [15][16] - Windstorm coverage can be obtained through endorsements or standalone policies [16] Insurance Deductibles - Home insurance deductibles for hurricane damage can range from 1% to 10% of the home's value, with named storm deductibles assessed as a percentage [19][20] - NFIP deductibles typically range from $1,000 to $10,000 [20] Cost of Hurricane Insurance - The cost of hurricane insurance varies based on multiple factors, with median costs for homeowners insurance at $1,243 and flood insurance through NFIP averaging $786 [27] Insurance Discounts - Homeowners can receive discounts for making their homes more hurricane-resistant, such as elevating the property or installing impact-resistant windows [24][28] Adequate Coverage - It is crucial for homeowners to ensure they have sufficient coverage to rebuild their homes, considering the replacement cost value [32] - Conducting a thorough home inventory is recommended to document personal property, as standard policies may not cover flood damage [33] Additional Living Expenses (ALE) - ALE coverage is included in most homeowner policies but does not cover costs related to flood damage, which may require out-of-pocket expenses [35] FAQs on Hurricane Insurance - Renters insurance typically covers personal property damage from hurricane winds but requires separate flood insurance for flood-related losses [36] - Comprehensive auto insurance is necessary for coverage of hurricane damage to vehicles [38] - Flood insurance can be purchased during hurricane season, but NFIP policies have a 30-day waiting period before coverage begins [39]