Core Earnings and Financial Performance - The company reported core earnings of $981 million, or $3.41 per diluted share, in Q2 2025, driven by strong underwriting and disciplined pricing across commercial and personal lines [15][36][44] - The trailing twelve-month core earnings return on equity (ROE) was 17%, reflecting sustained profitability [3][36] - Net investment income increased to $664 million, attributed to a higher level of invested assets and reinvestment at higher rates [9][42] Business Insurance Segment - Business insurance written premium growth was 8%, with an underlying combined ratio of 88 and an expense ratio of 30.6, showing improvement from the prior year [3][36] - Small business written premium growth reached 9%, with a record-high quarterly net new business premium and an underlying combined ratio of 89 [3][36] - Middle and large business written premium growth was 5%, with an underlying combined ratio of 89.1 [4][36] Global Specialty and Personal Insurance - Global specialty written premium growth was 9%, achieving a record quarterly gross written premium of $1.3 billion, with an underlying combined ratio of 84.8 [4][16][36] - Personal insurance written premium growth was 7%, with auto renewal pricing up 14% and homeowners up 12.7%, alongside an underlying combined ratio in homeowners of 72.7 [5][36][31] Catastrophe Losses and Prior Accident Year Development - Current accident year losses in property and casualty amounted to $212 million before tax, with aggregate catastrophe cover not triggered as of June 30 [6][39] - The company recorded net favorable prior accident year development of $163 million before tax, mainly from reserve reductions across various lines [7][40] Employee Benefits Segment - Employee benefits core earnings were $163 million, with a core earnings margin of 9.2%, driven by strong group life and disability performance [7][41] - Fully insured ongoing sales increased to $107 million in Q2 2025, reflecting higher group disability sales [9][41] Capital Management and Share Repurchase - Holding company resources totaled $1.3 billion at quarter end, with 3.2 million shares repurchased for $400 million [11][43] - The company has $2.35 billion remaining authorized for share repurchases through December 2026 [11][43] Strategic Initiatives and Future Outlook - The company is investing in AI-driven underwriting, with 75% of quotes across admitted business lines bound within minutes, expecting further increases in bind rates [11][16][28] - Management anticipates surpassing $6 billion in annual written premium in the small business segment in 2025 [12][27] - The rollout of the Prevail product suite is expected to enhance growth opportunities in auto and home insurance, targeting expansion into multiple states [12][32]