Many U.S. homeowners are missing important insurance protections, offering opportunities for agents to educate insureds on increasingly essential coverages.A new survey commissioned by The Hanover Insurance Group found many homeowners are exposed to growing risks, such as lawsuits, cybercrime and inflation—and they may not even be aware of the risk or that protections are available. Cyber insurance had the lowest awareness levels, at 46%, and only 7% of homeowners had coverage.83% of homeowners are aware of ...

Core Insights - A survey by The Hanover Insurance Group reveals that many U.S. homeowners lack essential insurance protections, exposing them to risks like lawsuits, cybercrime, and inflation [1][2]. Coverage Awareness - The survey assessed homeowners' understanding of four types of insurance: umbrella, cyber, valuables, and recreational vehicles, showing a significant gap between awareness and actual coverage [2]. - Only 23% of homeowners have an umbrella policy, while 66% expressed interest in obtaining one after learning about its benefits, indicating a need for better education on insurance options [2]. - Cyber insurance has the lowest awareness at 46%, with only 7% of homeowners having coverage [8]. - Awareness of valuables coverage stands at 87%, but only 26% are actually covered [8]. - Recreational vehicle insurance is known by 94% of homeowners, yet only 31% have discussed it with their insurance agents [8]. Role of Insurance Agents - The findings emphasize the critical role of independent agents in educating homeowners about their insurance needs and helping them make informed decisions [3]. - Customer service is deemed essential, with 81% of homeowners rating it as "absolutely essential" or "very important," compared to 58% prioritizing the lowest price [3]. Coverage Management - Keeping insurance coverage with a single carrier can help identify potential gaps and provide a more consistent customer service experience [4].

Summary of Hippo Conference Call - September 17, 2025 Company Overview - **Company Name**: Hippo (NYSE:HIPO) - **Industry**: Insurance, specifically a tech-enabled program carrier focusing on personal and commercial lines, with a legacy in homeowners insurance [3][4] Key Financial Metrics - **Gross Written Premium**: Approximately $950 million in the last 12 months, projected to reach $1.1 billion by the end of 2025 [4][5] - **Revenue**: $425 million in the last 12 months, expected to be between $460 million and $465 million by the end of 2025 [4][5] - **Net Income**: Achieved net income positive for the first time from net operating activities [4] - **Book Value**: $333 million as of the end of the quarter, projected to increase to about $420 million by the end of 2025 [5] Growth Projections - **Future Growth**: Expected to nearly double gross written premium from $1.1 billion to over $2 billion by 2028 [7] - **Adjusted Net Income**: Projected to quadruple from about $30 million in 2025 to more than $125 million in 2028 [7] - **Return on Equity**: Anticipated to be in the high-teens by 2028 [7] Strategic Initiatives - **Organic Growth**: Plans to grow existing programs by 10% to 15% annually, leveraging a history with managing general agents (MGAs) [9] - **New Programs**: Aiming to add $100 million to $150 million in gross written premium from new programs each year [10] - **Partnership with The Baldwin Group**: This strategic transaction will triple access to new homes closed annually, enhancing growth and underwriting profitability [11][24][25] Underwriting Approach - **Diligent Underwriting**: Reviewed over 140 program opportunities in 2024, approving only 4, which resulted in $130 million of new business [10] - **Legacy Homeowners Business**: Focused on newly constructed homes through builders, with a loss ratio significantly lower than the industry average [18][30] - **Rate Increases**: Implemented over 170 rate filings resulting in a cumulative rate increase of more than 80% [19] Risk Management - **Geographic Diversification**: Reduced concentration in high-risk areas like Harris County, Texas, and focused on states with lower catastrophic exposure [31][32] - **Portfolio Diversification**: Increased mix of commercial property and casualty lines to enhance predictability and reduce volatility [32] Market Resilience - **Interest Rate Sensitivity**: Business has shown resilience to interest rate changes, with partnerships with builders providing better mortgage terms [22][23] - **Performance in Challenging Markets**: Despite challenges in homeowners insurance, diversification into casualty and commercial lines has provided stability [32] Conclusion - **Execution Track Record**: The company has a strong history of meeting or exceeding ambitious goals set in previous investor communications [20] - **Future Outlook**: Focus on responsible growth, improved underwriting performance, and a diversified portfolio to achieve higher profitability with lower volatility [21][14]

Financial Data and Key Metrics Changes - The company reported consolidated pretax operating income of $267.5 million for Q2 2025, an increase from $253.8 million in Q2 2024, reflecting strong growth and profitability [5] - Net operating income for the quarter was $209 million, up from $202 million year-over-year, with a per share increase of 9% from $0.76 to $0.83 [10] - The consolidated combined ratio was 93.6%, slightly up from 93.5% in the same quarter last year [6] Business Line Data and Key Metrics Changes - Specialty insurance net premiums earned grew by 14.6% in Q2 2025, with pretax operating income rising to $253.7 million from $202.5 million in Q2 2024 [6] - Title insurance premiums and fees earned increased by 5.2% year-over-year, but pretax operating income decreased to $24.2 million from $46 million [7][17] - The combined ratio for title insurance rose to 99% from 95.4% in the previous year, primarily due to increased legal settlement costs [18] Market Data and Key Metrics Changes - The title insurance segment faced challenges due to higher mortgage interest rates and a slow real estate market, impacting overall performance [6][17] - The company noted that commercial premiums in title insurance increased to 23% of earned premiums, up from 21% in the previous year [17] Company Strategy and Development Direction - The company continues to invest in new specialty underwriting subsidiaries, technology, and talent to enhance its competitive edge [8] - Management emphasized a focus on profitability in the title insurance segment despite challenging market conditions, aiming to improve the combined ratio [19][62] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth and profitability of the specialty insurance segment, supported by strong renewal retention ratios and rate increases [13][15] - The company is actively exploring AI tools and data analytics to improve decision-making and operational efficiency [58][60] Other Important Information - The company paid $71 million in regular cash dividends during the quarter and has over $200 million remaining in its current share repurchase program [12] - The annualized operating return on beginning equity improved to 14.6% from 12.1% year-over-year, reflecting effective capital management [19] Q&A Session Summary Question: Can you provide more detail about retention across different lines of business? - Management reported strong renewal retention ratios above 85% across all lines of business, attributing this to their value proposition focused on service rather than price [25] Question: How is the competition affecting the larger account business? - Management acknowledged increased competition but noted their focus on non-catastrophic property, which differentiates them from peers heavily involved in large catastrophic exposures [28] Question: What are your views on the title insurance rate decrease in Texas? - Management indicated that the rate decrease has not yet taken effect due to legal challenges and that they believe their rates remain adequate [38] Question: Why was there no stock repurchase in the last quarter? - Management explained that they had recently issued a special dividend and are mindful of market prices relative to book value when considering share repurchases [42][44] Question: What is the investment outlook given current cash flow and yields? - Management expects no dramatic improvements in new money rates compared to existing yields, indicating a tightening trend [46][47] Question: Can you discuss the specialty insurance segment's combined ratios? - Management expects the combined ratio to remain in the 90% to 95% range, primarily due to their focus on casualty business and conservative loss reserving [52][55] Question: How is the company implementing AI in its operations? - Management is exploring various AI tools and has hired an AI leader to enhance decision-making and efficiency through data analytics [58][60] Question: Will mortgage rates need to fall for combined ratios to improve in title insurance? - Management is actively looking for internal efficiencies to improve margins, regardless of market conditions, while aiming to bring the combined ratio below 95% [61][62]

Core Viewpoint - Markel Insurance has appointed Joanna Quigan as Senior Underwriter for Professional and Financial Risks in Melbourne, aiming to enhance its Professional Indemnity business in Australia [1][2]. Company Overview - Markel Insurance operates as a leading global specialty insurer under Markel Group Inc. (NYSE: MKL), focusing on complex specialty insurance needs with a people-first approach [5]. Appointment Details - Joanna Quigan will develop and manage underwriting strategies for both renewing and new business, particularly in Professional Indemnity, and will report to Kym Beazleigh [2][4]. - Quigan has nearly 20 years of experience in liability insurance, previously serving as Cyber Product Lead at Delta Insurance Group New Zealand [3]. Strategic Impact - The appointment of Quigan is part of Markel's strategy to strengthen its talent pool across its Australian offices, enhancing the underwriting team in Victoria [4]. - Beazleigh expressed confidence in Quigan's ability to positively impact the market with her extensive product, management, and strategic experience [4].

Financial Performance Highlights - The company achieved an all-time high quarterly operating EPS of $3.17[47] - The annualized operating return on average common equity (ROACE) reached 19.2%[13, 35, 48] - The diluted book value per share hit a record of $66.48, marking a 16.4% increase over the past 12 months[48] - The company executed $440 million in share repurchases during the first quarter of 2025[19, 44, 47] Underwriting Performance - The current accident year combined ratio, excluding catastrophes and weather, improved to 87.9%, a 1.7 percentage point improvement year-over-year[48] - The insurance segment's gross premiums written (GPW) reached $1.7 billion, a 5% increase year-over-year, representing the highest first-quarter volume for the segment[33, 47] - Reinsurance segment GPW increased by 5% year-over-year to $1.1 billion, driven by new business in Professional Lines and Credit & Surety lines[33] Strategic Focus and Portfolio - The company's total capital stands at $7.2 billion, with a debt-to-total capital ratio of 18.2%[13] - The company's gross premiums written (GPW) is $9.1 billion[13, 22] - The company aims for a G&A ratio of less than 11% by 2026 through the "How We Work" program[38]

Industry Overview - The Zacks Property and Casualty (P&C) Insurance industry is experiencing growth due to solid retention, exposure growth across business lines, and improved pricing, which are driving higher premiums and maintaining profitability [1] - The industry is focusing on personalized offerings to enhance customer experience and is leveraging digitalization [1] - Catastrophic activities, both natural and man-made, may have negatively impacted underwriting profit [1] Company Analysis: Axis Capital Holdings Limited (AXS) - AXS has seen an increase in its top line driven by higher net premiums earned and net investment income [4] - The Insurance segment is performing well, contributing to improved premiums, with favorable market conditions expected to continue across property lines [5] - AXS is focused on growth in Marine Cargo, Cyber, and Renewable Energy, with a return on equity (ROE) of 19%, significantly above the industry average of 7.8% [6] - The company’s net investment income has shown a four-year CAGR of 21.4%, supported by increased fixed maturity assets and yields [7] - AXS has a strong track record of shareholder value enhancement through stock buybacks and consecutive dividend increases, with a ten-year CAGR of 4.2% [8] Company Analysis: Arch Capital Group Ltd. (ACGL) - ACGL focuses on writing specialty lines of insurance and reinsurance, maintaining a strong track record of net premiums written with a four-year CAGR of 20.6% [9][10] - The company expects continued growth in its Insurance and Reinsurance segments due to rate increases and new business opportunities [11] - ACGL has seen a four-year CAGR of 30.2% in net investment income, benefiting from rising investment yields and a growing investment portfolio [12] - The company maintains a robust capital position and has improved its balance sheet, with a return on equity of 15.7%, also above the industry average [13] Financial Estimates - The Zacks Consensus Estimate for AXS' 2025 revenues and EPS indicates a year-over-year increase of 7.8% and 3.4%, respectively [14] - For ACGL, the 2025 revenue estimate suggests a year-over-year increase of 13.5%, while EPS is projected to decline by 14.7% [15] Valuation Metrics - AXS is trading at a price-to-book multiple of 1.49, above its five-year median of 1.06, while ACGL's price-to-book multiple is at 1.69, above its median of 1.64 [16] Conclusion - AXS is well-positioned for growth in its Specialty Insurance and Reinsurance business, particularly in Marine Cargo, Cyber, and Renewable Energy [17] - ACGL is set to benefit from specialty lines of insurance and reinsurance, with growth driven by rate increases and a growing investment portfolio [17] - AXS has a solid dividend yield of 1.7%, significantly higher than the industry average of 0.2%, making it attractive for yield-seeking investors [18] - AXS has outperformed the industry with a year-to-date gain of 14.5%, while ACGL has gained only 0.7% [20]

Financial Data and Key Metrics Changes - The company reported an annualized operating return on equity of 19.2% and a record diluted book value per common share of $66.48, representing a 16.4% increase over the past twelve months [6][20]. - Operating earnings per share reached $3.17, a 23% increase compared to the prior year quarter, marking the highest quarterly operating earnings per share ever [6][20]. - The combined ratio was 90.2%, despite significant natural catastrophe losses, with Axis' share of catastrophe losses being less than 10 basis points [7][21]. Business Line Data and Key Metrics Changes - The Insurance segment generated a combined ratio of 86.7% and $1.7 billion in premiums, up 5% year-over-year, with new premiums contributing $547 million [9][23]. - The Reinsurance segment reported a combined ratio of 92.3% and $1.1 billion in premiums, also reflecting a 5% increase [11][25]. - The company experienced a 24% increase in net investment income, totaling $208 million [8][28]. Market Data and Key Metrics Changes - In North America, the company achieved a 9% growth rate, with a 21% increase in submission flow, particularly in the E&S lines [10]. - The company noted a negative 7% rate change in property across its divisions, indicating a competitive market environment [14][36]. - The cyber portfolio grew by 29% in the quarter, reflecting strong demand and premium adequacy [16]. Company Strategy and Development Direction - The company aims to achieve a combined ratio target of 11% by 2026, focusing on profitable growth while navigating market volatility [8][22]. - The strategy emphasizes leveraging specialty underwriting capabilities to meet customer needs globally, particularly in a dynamic risk environment [5][13]. - The company is investing in technology and operational platforms to enhance underwriting and claims capabilities, aiming for sustainable growth [18][19]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in addressing uncertainties related to trade disruptions and geopolitical tensions, while maintaining a focus on premium adequacy [12][13]. - The company anticipates continued growth in net written premiums, projecting mid to high single-digit growth for the remainder of 2025 [39]. - Management highlighted the importance of maintaining underwriting discipline amidst increasing competition and changing market conditions [10][14]. Other Important Information - The company repurchased $440 million in shares during the quarter and declared $36 million in common dividends, with $160 million remaining on its repurchase authorization [8][30]. - The effective tax rate for the quarter was 18.6%, with expectations for the full year to be in the high teens [29]. Q&A Session Summary Question: Pricing trends in property lines - Management noted a negative 7% pricing change in property, attributing it to geographic performance and competitive pressures, particularly in the Global Markets business [34][35]. Question: Net written premium growth expectations - Management expressed confidence in achieving mid to high single-digit net written premium growth for the remainder of 2025, supported by robust submission growth [38][39]. Question: Expense ratio and its progression - The expense ratio was reported at 11.9%, considered normalized, with expectations for it to remain stable throughout the year [53][54]. Question: Impact of tariffs on specific lines - Management indicated that tariffs could impact property and cargo lines, but they are well-positioned to address potential needs arising from these changes [76][77]. Question: Dynamics of pet insurance impacting net to gross premium ratio - The impact of pet insurance dynamics is expected to be more pronounced in the first half of the year, with less effect anticipated in the latter half [78][79].

Financial Data and Key Metrics Changes - The company reported a net income available to common shareholders of $187 million, or $2.26 per diluted common share, with operating income at $261 million, or $3.17 per diluted common share, resulting in a 19.2% annualized operating return on common equity [20] - The diluted book value per common share increased to $66.48, reflecting a 16.4% rise over the past twelve months [20] - Gross premiums written reached $2.8 billion, up 5.3% year-over-year, with a combined ratio of 90.2% despite significant natural catastrophe losses [21][22] Business Line Data and Key Metrics Changes - The Insurance segment generated gross premiums written of $1.7 billion, a 5% increase compared to the prior year quarter, with an outstanding combined ratio of 86.7% [23][26] - The Reinsurance segment reported gross premiums of $1.1 billion, also up about 5%, with a combined ratio of 92.3% [10][26] - The company achieved a 24% increase in net investment income, totaling $208 million [7][29] Market Data and Key Metrics Changes - In North America, the company experienced high single-digit growth at 9%, with a 21% increase in submission flow [9] - The company noted a negative 7% rate change in property across its divisions, indicating a competitive market environment [13][36] - The company reported a 16% rate change in U.S. Excess casualty and a 21% increase in primary casualty rates [14] Company Strategy and Development Direction - The company aims to achieve a combined ratio target of better than 11% by 2026, focusing on profitable growth and maintaining underwriting discipline [7][22] - The strategy includes leveraging specialty underwriting capabilities to address customer needs globally, particularly in a dynamic risk environment [5][12] - The company is investing in technology and operational platforms to enhance underwriting and claims capabilities [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating uncertainties related to trade disruptions and geopolitical tensions, emphasizing the importance of maintaining a diversified portfolio [11][12] - The company anticipates that sustained tariff impacts could affect loss costs, particularly in property and cargo lines [11][78] - Management remains optimistic about achieving mid to high single-digit net written premium growth for the remainder of 2025 [39] Other Important Information - The company repurchased $440 million in shares during the quarter and declared $36 million in common dividends [31] - The effective tax rate for the quarter was 18.6%, with expectations for the full year to be in the high teens [30] Q&A Session Summary Question: Pricing trends in property lines - Management noted a negative 7% pricing change in property, attributing it to geographic performance and competitive market conditions [34][36] Question: Net written premium growth expectations - Management indicated that mid to high single-digit net written premium growth is reasonable to expect for the remainder of 2025, supported by robust submission growth [38][39] Question: Expense ratio and its progression - The expense ratio of 11.9% is considered normalized, with expectations for it to remain stable as the company continues to improve operational efficiency [52][53] Question: Underlying loss ratio in reinsurance - Management suggested that the underlying loss ratio of 68.4% is a good run rate for the year, with no significant aviation losses impacting the quarter [55] Question: Impact of tariffs on specific lines - Management highlighted that tariffs could impact property and cargo lines, while also presenting growth opportunities in marine and trade credit [78] Question: Dynamics of pet insurance impacting premium ratios - The impact of pet insurance on the net to gross premium ratio is expected to be more pronounced in the first half of the year [81]

Financial Data and Key Metrics Changes - The company reported an annualized operating return on equity of 19.2% and a record diluted book value per common share of $66.48, representing a 16.4% increase over the past twelve months [6][20]. - Operating earnings per share reached $3.17, a 23% increase compared to the prior year quarter, marking the highest quarterly operating earnings per share ever [6][20]. - Gross premiums written were $2.8 billion, reflecting a 5% growth year-over-year [21]. Business Line Data and Key Metrics Changes - The Insurance segment generated a combined ratio of 86.7% with premiums of $1.7 billion, up 5% year-over-year, including $547 million in new premiums [9][23]. - The Reinsurance segment achieved a combined ratio of 92.3% with premiums of $1.1 billion, also up about 5% [11][26]. - Cyber portfolio in Reinsurance grew by 29% in the quarter, indicating strong demand in that line [16]. Market Data and Key Metrics Changes - North America saw a 9% growth in premiums, with a 21% increase in submission flow, particularly in E and S lines [10]. - The company noted a negative 7% rate change in property across its divisions, indicating a competitive market environment [14]. - Liability pricing momentum remained strong, achieving a 13.5% rate increase in the quarter [14]. Company Strategy and Development Direction - The company aims to achieve a GA ratio target of 11% by 2026, focusing on profitable growth while managing volatility [8][19]. - AXIS is leveraging its specialty underwriting capabilities to address customer needs globally, particularly in a dynamic risk environment [5][13]. - The company is pursuing a selective growth strategy in property due to increased competition after years of rate hardening [14]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating uncertainties related to trade disruptions and geopolitical tensions, emphasizing the importance of maintaining underwriting discipline [12][13]. - The company anticipates that the current trade environment could impact loss costs, particularly in property and cargo lines [12][13]. - Management remains optimistic about achieving mid to high single-digit net written premium growth for the remainder of 2025 [40]. Other Important Information - The company repurchased $440 million in shares during the quarter and declared $36 million in common dividends, indicating a strong capital position [31]. - The effective tax rate for the quarter was 18.6%, with expectations for the full year to be in the high teens [30]. Q&A Session Summary Question: Pricing reductions in property lines - Management noted a negative 7.1% rate change in property, attributing it to geographic performance and competitive pressures in the market [35][36]. Question: Net written premium growth expectations - Management indicated that mid to high single-digit net written premium growth is reasonable to expect for the remainder of 2025, supported by robust submission growth [39][40]. Question: Expense ratio and its progression - The expense ratio of 11.9% is considered normalized, with expectations for it to remain in that range for the year [53][54]. Question: Impact of tariffs on specific lines - Management highlighted that tariffs could impact property and cargo lines, but they are well-positioned to address potential needs arising from these changes [77][78]. Question: Dynamics of pet insurance impacting net to gross premium ratio - The impact of pet insurance dynamics is expected to be more pronounced in the first half of the year, with less effect in the latter half [80]. Question: Buyback dynamics and future plans - The company executed a significant portion of its buyback through private transactions, with plans to continue opportunistic buybacks throughout the year [83][85].