Key Takeaways BRK.B's insurance model relies on GEICO, BHPG and reinsurance to drive stability and float.BHPG delivers low-volatility earnings and steady underwriting across specialty and commercial lines.BHPG uses Berkshire's strong capital base to write large, complex risks without heavy external reinsurance.Berkshire Hathaway’s (BRK.B) insurance segment is the backbone of its operational model. The insurance portfolio includes GEICO (auto insurance), Berkshire Hathaway Primary Group (BH Primary), and Ber ...

Zurich Insurance Group (OTCPK:ZFSV.F) 2025 Capital Markets Day November 18, 2025 04:30 AM ET Company ParticipantsMitchell Todd - Head of Investor RelationsSaad Mered - CEO of Global SpecialtyAlex Wells - President of U.S. Middle MarketPeter Stockhorst - CEO of DA DirektMario Greco - CEOKen Walton - President of Distribution and Chief Revenue Officer Farmers GroupDrazen Jaksic - CEO of U.K. BusinessNone - Video NarratorRaul Vargas - CEO of Farmers GroupClaudia Cordioli - CFOCarsten Schildknecht - CEO of Zuri ...

Company Strategy & Highlights - Ambac sold its Legacy Financial Guarantee business for $420 million in cash[4] - Ambac acquired ArmadaCare, a specialty A&H MGA, for $250 million in cash and new debt[4] - Ambac converted its investment in Pivix Specialty Insurance Services, Inc to a controlling equity stake[4] - Ambac repurchased 3,142,554 shares in October 2025, representing 6.5% of basic weighted average shares outstanding[4] - Ambac launched 1889 Specialty, an MGA specializing in management liability and professional lines for financial institutions[5] Financial Performance (Q3 2025) - Premium production was up 32% to $343 million[6] - Insurance distribution premiums produced were up 69% to $245 million[7] - Everspan gross premium written of $97 million were down 16% due to the non-renewal of certain programs in 2024[7, 8] - Insurance Distribution Revenue was up 80%[7] - Organic growth of Insurance Distribution was 40%[7]

Financial Data and Key Metrics Changes - The company reported operating earnings per share of $5.09 and a combined ratio of 91.1%, reflecting strong performance and momentum [20][30] - The combined ratio excluding catastrophes improved by 0.2 points from the prior year quarter, primarily driven by improvements in personal lines [20] - Catastrophe losses were 3%, coming in 3.8 points below the third quarter assumption and lower than historical averages [20] Business Line Data and Key Metrics Changes - Personal lines achieved a current accident year ex-cat combined ratio of 85.8%, improving 3.4 points from the prior year, driven by strong performance in homeowners [23] - Core commercial net written premium grew by 3.5%, with strong momentum in small commercial and healthy retention at 84.4% [25] - Specialty lines saw net written premiums grow at a high single-digit pace, with a current accident year combined ratio of 86% [14][25] Market Data and Key Metrics Changes - The personal lines segment experienced growth of 3.6%, with new business momentum accelerating, particularly in target diversification states [23] - Specialty renewal pricing was 8.3%, indicating strong demand and retention improved sequentially to 83.2% [26] - The overall environment in target specialty markets remains rational, with lower middle market and small business segments showing resilience [16] Company Strategy and Development Direction - The company is focused on leveraging innovation and disciplined execution to build competitive advantages and deliver value to stakeholders [8] - There is an emphasis on enhancing agent relationships and improving operational efficiency through technology and streamlined processes [17][39] - The company plans to elevate underwriting appetite in specialty and middle market segments, aiming for growth and relevance [40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting a diversified portfolio and broad-based profitability as key strengths [38] - The company is positioned to sustain performance and create value for shareholders, with expectations for premium growth to accelerate [30] - Management noted that the competitive environment is stabilizing, particularly in the small to lower end of the middle market [46] Other Important Information - The company repurchased approximately 323,000 shares of common stock totaling $55 million, demonstrating commitment to returning capital to shareholders [28] - Net investment income increased by 27.5% from the prior year quarter to $117 million, reflecting growth in the asset base and improved yields [26] Q&A Session Summary Question: Thoughts on large account property in the middle market - Management remains conservative in the upper middle market and believes pricing may be stabilizing, but focus is on low to mid-size accounts [32] Question: Confidence in margin expansion in core commercial - Management is optimistic about price increases relative to loss trends and expects improvements as market conditions normalize [36] Question: Strategic direction for the next few years - Management is focused on building a diversified portfolio with broad-based profitability and enhancing agent relationships [38] Question: Durability of current profit margins in personal lines - Management noted substantial frequency benefits but did not provide specific metrics on expected frequency levels [41] Question: Expense ratio goals for 2025 - Management is committed to a long-term goal of 20 basis points improvement per annum and will address this in future calls [49] Question: Impact of technology on growth - Management emphasized that technology enhances the customer experience and supports retention, contributing to sustainable growth [56]

Financial Data and Key Metrics Changes - Consolidated revenues increased by 7% for the quarter and 4% year to date, with all reportable segments showing year-over-year growth [13][14] - Operating income for the quarter was $1 billion, down from $1.4 billion in the comparable period last year, primarily due to net investment gains which were $433 million compared to $918 million last year [14] - Adjusted operating income totaled $621 million for the quarter, up 24% year over year, with insurance contributing $153 million to this increase [15][14] - Operating cash flows for the first nine months were $2.1 billion, and comprehensive income to shareholders was $793 million for the quarter [15] Business Line Data and Key Metrics Changes - Markel Insurance segment achieved a combined ratio of 93% for the quarter, improved from 97% last year, with underwriting gross written premiums up 11% year over year [3][18] - The industrial segment reported revenues of $1 billion, up 5% year over year, while adjusted operating income decreased by 9% to $101 million due to softening demand in the auto industry [20] - Consumer and other segment revenues were $291 million, up 10% year over year, with adjusted operating income of $17 million compared to break even last year [21][22] - Financial segment revenues increased by 16% to $162 million, but adjusted operating income decreased by 23% to $61 million due to prior year favorable loss development [22] Market Data and Key Metrics Changes - The international division showed strong growth with underwriting premiums up 25% for the quarter, driven by expanded territories and product offerings [17][52] - The U.S. wholesale and specialty division faced challenges, with a reported decline of 6% in premium volume due to the exit of certain product lines, but was relatively flat when excluding those lines [17][46] Company Strategy and Development Direction - The company is focused on improving its core insurance business by exiting underperforming segments, making leadership changes, and enhancing accountability [2][4] - A new organizational structure has been implemented to streamline operations and improve profitability, with a focus on distinct profit and loss responsibilities for each business unit [27][28] - The company aims to enhance financial disclosures to provide better insights into performance and capital allocation [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the improvements made within the insurance segment, noting a commitment to maintaining a conservative approach to reserving and capital allocation [4][29] - The company is optimistic about future growth opportunities in both existing and new markets, particularly in the industrial and consumer sectors [5][34] - Management acknowledged the challenges in the current economic environment but emphasized the importance of maintaining a long-term focus on profitability and capital efficiency [4][30] Other Important Information - The company has returned approximately $1.9 billion to shareholders through share repurchases since the end of 2020, reducing the share count from 13.8 million to 12.6 million [7] - Investment operations yielded an 8.4% return on equity investments, with a book yield on fixed income of 3.5% [7] Q&A Session Summary Question: Expense ratio dynamics in the insurance division - Management acknowledged the current expense ratio of 36% is high compared to peers, but emphasized the importance of focusing on combined ratio and overall profitability while managing expenses [37][39][41] Question: Successes in U.S. wholesale and specialty - Management highlighted that growth in casualty lines is driven by rate increases, while property and professional lines face challenges [45][46][48] Question: Adverse development in international professional liability - Management confirmed that recent adverse developments were due to large claims from prior years, but overall profitability remains strong [56][57] Question: Capital deployment priorities - Management reiterated that share repurchases remain the primary capital allocation strategy, with ongoing sensitivity to market conditions [58][60] Question: Combined ratio opportunities internationally vs. U.S. - Management noted that while both markets have opportunities, the international segment has benefited from a focus on small and micro businesses with lower loss ratios [64][66][68]

Financial Data and Key Metrics Changes - Consolidated revenues increased by 7% for the quarter and 4% year to date, with all reportable segments showing year-over-year growth [12] - Operating income for the quarter was $1 billion, down from $1.4 billion in the comparable period last year, primarily due to net investment gains which were $433 million compared to $918 million last year [12] - Adjusted operating income totaled $621 million for the quarter, up $121 million or 24% year-over-year, with insurance contributing $153 million to this increase [13] Business Line Data and Key Metrics Changes - Markel Insurance segment achieved a combined ratio of 93% in Q3, improved from 97% in the same period last year, aided by lower catastrophe activity [3][17] - Underwriting gross written premiums for Markel Insurance were up 11% year-over-year for the quarter, driven by growth in personal lines and international lines [15] - The industrial segment reported revenues of $1 billion, up 5% year-over-year, while the consumer and other segment saw revenues of $291 million, up 10% [19][20] Market Data and Key Metrics Changes - The international division of Markel Insurance experienced strong growth with a 25% increase in underwriting premiums for the quarter [16] - The financial segment's revenues were $162 million, up 16% year-over-year, although adjusted operating income decreased by 23% due to prior year favorable loss development [20] Company Strategy and Development Direction - The company is focused on improving its core insurance business by exiting underperforming segments, making leadership changes, and enhancing accountability [2][4] - A new organizational structure has been implemented to streamline operations and improve profitability, with a focus on distinct P&L responsibilities for each business unit [24][25] - The company aims to reinvest in existing businesses and expand into new markets, particularly in industrial and consumer sectors, while maintaining a conservative approach to capital allocation [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing improvements in insurance profitability and the effectiveness of recent strategic actions [3][4] - The company is optimistic about its growth potential in various segments, particularly in international operations and niche markets [32] - Management acknowledged the challenges in the current economic environment but emphasized the importance of maintaining a strong focus on underwriting performance and expense management [49][50] Other Important Information - The company has returned approximately $1.9 billion to shareholders through share repurchases since the end of 2020, reducing the share count from 13.8 million to 12.6 million [6] - The company has committed to enhancing financial disclosures to provide better insights into its operations and capital allocation [7][9] Q&A Session Questions and Answers Question: Regarding the expense ratio at 36% and technology spending - Management acknowledged the current expense ratio and indicated that while they are focused on reducing it, investments in technology and profitable growth areas may temporarily increase the ratio [39][41] Question: Insights on gross written premium growth and successes in programs and solutions - Management highlighted that the growth in gross written premiums was strong at 11%, with specific successes noted in casualty and professional lines, while being selective in risk appetite [46][48] Question: Discussion on capital management and buyback strategies - Management confirmed that share repurchases remain the primary capital allocation strategy, with a focus on being price-sensitive and rational in their approach [62][68] Question: Comparison of international versus U.S. combined ratio opportunities - Management indicated that while there are attractive opportunities in both markets, the international segment has benefited from a focus on small and micro businesses, leading to lower loss ratios [70][74]

Financial Performance & Growth - Arch Capital Group's gross premiums written reached $22.8 billion for the TTM ending September 30, 2025[6] - Insurance segment contributed $10.4 billion, Reinsurance $11.1 billion, and Mortgage $1.3 billion to the total gross premiums written[6] - The company has consistently delivered superior risk-adjusted returns with less volatility compared to its peers[10, 11] - Book Value per Common Share plus Cumulative Common Dividends grew at a compound annual growth rate of 15.9%[42] Business Segments & Diversification - The company operates leading specialty insurance lines across various geographies and products[5] - Insurance segment net premiums written totaled $7.9 billion, with significant contributions from Property and short-tail specialty (North America) at 18%, Casualty and other (International) at 12%[15] - Reinsurance segment net premiums written amounted to $7.7 billion, with Specialty accounting for 35%, Property 26%, and Casualty 19%[16] - U S Primary Mortgage Insurance accounts for 61% of the Insurance In Force, with International Mortgage Insurance/Reinsurance and U S Credit Risk Transfer (CRT) and other making up the remaining 39%[27, 28] Investment Strategy - The company maintains a conservative investment portfolio focused on total return, with total invested assets of $46.7 billion as of September 30, 2025[30, 31] - Fixed maturity investments totaled $33.0 billion, with a significant portion allocated to U S government and government agencies (25.5%), AAA-rated securities (16.5%), and Corporates (34.3%)[31] - Net investment income plus equity method investments totaled $542 million for 3Q25[34]

Financial Data and Key Metrics Changes - The company reported consolidated pretax operating income of $248.2 million for Q3 2025, an increase from $229.2 million in Q3 2024 [8] - Net operating income for the quarter was $197 million, up from $183 million year-over-year, translating to a per-share increase of 10% from $0.71 to $0.78 [12] - The annualized operating return on beginning equity improved to 14.4% from 11.9% in the same quarter last year [9] - The consolidated combined ratio was 95.3%, slightly higher than 95% in Q3 2024 [9] Business Line Data and Key Metrics Changes - Specialty Insurance net premiums earned grew by 8.1% compared to Q3 2024, with pretax operating income rising to $207.7 million from $197.3 million [10][16] - The combined ratio for Specialty Insurance was 94.8%, up from 94% in the previous year [11] - Title Insurance reported premium and fee revenue of $767 million, an 8% increase from Q3 2024, with pretax operating income rising to $46 million from $40 million [21][23] Market Data and Key Metrics Changes - The title insurance market showed strong activity in the commercial sector, with agency-produced premiums up 11%, making up nearly 80% of revenue [22] - Commercial premiums increased to 26% of earned premiums compared to 20% in Q3 2024 [22] Company Strategy and Development Direction - The acquisition of Everett Cash Mutual (ECM) is aimed at enhancing the Specialty Insurance business, reflecting a commitment to profitable growth [6][7] - ECM's focus on farm and agricultural operations aligns with the company's strategy of maintaining a narrow and deep focus on specialty segments [34] - The company plans to continue investing in technology and talent while pursuing geographic expansion and new product offerings through ECM [8][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth and profitability of Specialty Insurance, supported by strong renewal retentions and new business writings [19] - The company noted a favorable development in loss reserves, contributing positively to the consolidated loss ratio [13] - Management indicated that the operating environment remains stable, with no significant regulatory pressures emerging [37] Other Important Information - The company paid $71 million in regular cash dividends and repurchased $44 million worth of shares during the quarter [14] - The book value per share increased by 18.5% year-to-date to $26.19, driven by strong operating earnings and higher investment valuations [14] Q&A Session Summary Question: How is the company measuring excess capital? - Management indicated that there has been no major shift in capital management, and they continue to build capital faster than they can return it to shareholders [29] Question: Can you provide more details about the ECM acquisition? - Management described ECM as a new operating company within their portfolio, emphasizing its complementary nature and focus on farm and agricultural insurance [32][34] Question: Are there any regulatory pressures in the title business? - Management confirmed that the regulatory environment has been quiet, with only the Texas rate rollback issue pending a hearing [37] Question: How does the company view the commercial auto insurance market? - Management expressed confidence in their position within the commercial auto market, citing favorable loss reserve development and proactive rate adjustments [50][52]

Financial Performance - Old Republic's Market Cap/Stock Price (NYSE: ORI) is $1051 billion/$4247[13] - Shareholders' Equity/BVPS is $642 billion/$2619[13] - The company's annualized operating ROE is 144%[13] - Regular Dividend/Yield is $116/27%[13] - Q3 2025 operating EPS was $078, a 99% increase from $071 in Q3 2024[27] - Net premiums & fees earned reached $209 billion, an 81% increase from Q3 2024[27] Business Segments - Specialty Insurance generated $54 billion of operating revenue in 2024[31] - Title Insurance generated $27 billion of operating revenue in 2024[31] - Title Insurance holds a 144% market share, ranking 3rd in the industry[57] - Specialty Insurance accounted for 85% of 2024 pre-tax operating income, while Title Insurance accounted for 14%[33] Capital Management - $62 billion of dividends & share repurchases since 123116[11] - $912 million remains authorized for share repurchases[28,74] - $182 billion in share repurchases since 2022, representing just over 21% of shares outstanding[78]

Overall Results - Old Republic International Corporation reported a net income of $279.5 million for Q3 2025, down from $338.9 million in Q3 2024, representing a decrease of 17.5% [2][3] - Net income excluding investment gains was $196.7 million, an increase of 7.7% from $182.7 million in the previous year [2][3] - The consolidated combined ratio for Q3 2025 was 95.3%, slightly higher than 95.0% in Q3 2024 [2][3] Financial Highlights - Consolidated net premiums and fees earned reached $2.1 billion, an increase of 8.1% year-over-year [3][5] - Net investment income rose to $182.6 million, reflecting a 6.7% increase compared to the previous year [3][5] - Book value per share increased to $26.19, up 14.7% from $22.84 at year-end 2024 [2][3] Specialty Insurance Segment - Specialty Insurance net premiums earned increased by 8.1% for the quarter and 11.8% for the first nine months, driven by premium rate increases and high renewal retention ratios [9][10] - The current year loss ratio for Specialty Insurance was flat at 43.6%, while prior year loss reserve development contributed positively [11][12] - The combined ratio for Specialty Insurance was reported at 94.8%, indicating strong underwriting performance [12] Title Insurance Segment - Title Insurance net premiums earned showed an increase of 8.3% for the quarter, contributing to overall revenue growth [7][9] - The segment's performance was supported by favorable market conditions and effective underwriting strategies [9][10] Investment Performance - The increase in net investment income was attributed to higher investment yields and a larger asset base [10] - Total capital returned to shareholders amounted to $115 million, reflecting the company's commitment to shareholder value [3][5]