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Universal Insurance Holdings, Inc.

UVE

2025 Q2

Financial Services

3mo

Reinsurance Program Structure and Cost Dynamics

The company clarified that the current reinsurance program, effective from June 1, 2025, is not significantly different in cost as a percentage of direct earned premium compared to the previous period.
This stability is notable given the recent landfalling storms last year, which typically would lead to increased reinsurance costs.
The change in reinsurance programs from last year, including the winding down of the RAP program at no cost, impacts quarterly comparisons and reflects strategic reinsurance structuring.

Universal Insurance Holdings, Inc.

UVE

2025 Q2

Financial Services

3mo

Adjusted diluted earnings per common share Beat

+4.2%

$1.23

Adjusted diluted earnings per common share was $1.23 compared to adjusted diluted earnings per common share of $1.18 in the prior year quarter.

Horace Mann Educators Corporation

HMN

2025 Q2

Financial Services

2mo

Lower Catastrophe Losses and Favorable Weather Impact in 2025

Second quarter catastrophe losses were $30 million, $11 million below the prior year and below historical averages.
Favorable weather conditions, including fewer severe storms, contributed to lower claim frequency and severity.
The company models catastrophe risk using a 5-year average of $90 million, which remains appropriate despite recent favorable results.
Management expects the third quarter to be more volatile due to historical hurricane activity, but current data supports maintaining guidance.

Lemonade, Inc.

LMND

2025 Q2

Financial Services

2mo

Significant Reduction in Reinsurance Quota Share from 55% to 20%

The company reduced its quota share reinsurance from 55% to 20%, a move driven by improved loss ratios and capital efficiency.
This change was a strategic decision to shift risk management focus from risk concentration to capital management.
The transition is expected to unfold over several quarters, with ceding roughly 45% of premium in H2 2025 and reaching 20% by Q3 2026.
The impact on revenue is expected to outpace gross profit growth, with a shift towards higher revenue growth rates as the reinsurance scope narrows.
This structural change aims to improve capital utilization and reduce dependency on reinsurance, leveraging the company's improved loss ratios and captive reinsurance structures.

RLI Corp.

RLI

2025 Q2

Financial Services

3mo

Impact of Market Softening on Property and Casualty Segments

Management highlighted a 10% decline in Property gross premiums due to increased competition and rate pressure, especially on catastrophe-exposed business.
Casualty and Surety segments experienced growth, but Property's decline reflects a strategic shift away from less profitable lines amid market softening.
The company is emphasizing disciplined underwriting and selective growth, particularly in challenging segments like E&S Property and auto.
Despite headwinds, RLI remains optimistic about long-term opportunities, focusing on profitable niches rather than market share.
Management noted that rate decreases are primarily in specific lines like E&S Property and auto, with some segments still seeing rate increases to maintain profitability.
The company is actively managing exposure to natural catastrophe risks, including hurricane season, with a cautious approach to new business.

Ryan Specialty Holdings, Inc.

RYAN

2025 Q2

Financial Services

2mo

Strategic Expansion of Ryan Re via Nationwide Reinsurance Deal

Ryan Re, an underwriting MGU, will be the exclusive reinsurance underwriter for Nationwide's reinsurance renewal rights from Markel, creating a diversified portfolio with new relationships.
The deal is part of a broader strategic alliance with Nationwide, expanded through a 10-year renewal agreement.
The transaction is expected to be accretive starting in 2026, with temporary margin impacts in late 2025 due to talent investments.
Ryan Re's capabilities are primarily underwriting, not broking, and it enhances Ryan Specialty's scale, geographic reach, and product scope.
Management expressed high confidence in renewing a significant portion of the $1.2 billion reinsurance premium market, emphasizing the strength of their underwriting team.

Globe Life Inc.

2025 Q2

Financial Services

3mo

Strategic Development of Bermuda Reinsurance Affiliate

Globe Life submitted a preliminary business plan to Bermuda Monetary Authority to establish a reinsurance affiliate in Bermuda.
The plan aims to reinsure a portion of new and in-force life insurance policies, with an initial reinsurance of a small block of reserves.
The company expects to cede approximately 25% of total statutory life reserves over time, including in-force and new business.
The first reinsurance transaction is targeted for the end of the year, with subsequent transactions possibly following.
The Bermuda entity is expected to enhance the company's economic capital framework, support growth, and improve earnings emergence.
Regulatory and rating agency discussions are ongoing, with formal licensing expected later in the year.

Unum Group

UNM

2025 Q2

Financial Services

2mo

Strategic Focus on Long-Term Care (LTC) De-Risking and External Reinsurance Transactions

Unum completed an external reinsurance transaction in July 2025 to reduce LTC exposure, marking a major strategic step.
The company is actively seeking additional LTC risk reduction opportunities, emphasizing disciplined management of the LTC block.
The transaction improves risk profile, frees capital, and shifts focus to higher-return core businesses.
Management highlighted ongoing efforts to de-risk LTC through market transactions, despite market complexity and slow pace.

Reinsurance Group of America, Incorporated

RGA

2025 Q2

Financial Services

2mo

Financial Performance Summary

Book value per share increased to $156.63, representing a compounded annual growth rate of 9.7% since 2021.
Consolidated net premiums increased 14% year-over-year, with traditional business premiums up 11% on a constant currency basis, driven by strong growth in the U.S., EMEA, and Asia.
Excess capital increased to $3.8 billion at the end of Q2, or $2.3 billion pro forma for the Equitable transaction; deployable capital rose to $3.4 billion.
Investment income was strong, with a nonspread portfolio yield of 4.98% (up 8 basis points from Q1) and total variable investment income of $105 million, driven by realizations in limited partnerships and real estate joint ventures.
RGA reported operating EPS of $4.72 per share for Q2 2025, with an adjusted operating return on equity (ROE) of 14.3% for the trailing 12 months, in line with intermediate-term targets.
The effective tax rate was 25.2% for the quarter, above the expected 23%-24%, due to valuation allowances on foreign tax credits, but full-year tax rate guidance remains unchanged.
The quarter's results were below expectations due to large claims volatility in U.S. individual life and unfavorable claims in the healthcare excess business within U.S. Group.

Markel Corporation

MKL

2025 Q2

Financial Services

2mo

Strategic Exit from Global Reinsurance Business and Capital Reallocation

Markel announced the decision to sell renewal rights and cease writing new business in its global reinsurance operation, which was acquired through Alterra over 10 years ago.
This move is aimed at focusing on core lines of business and improving profitability.
The exit is expected to free up capital, with the reserves and investments continuing to generate returns, and will provide flexibility for reinvestment.
The sale of renewal rights will result in premiums being earned over the next 2-3 years, with some renewal contracts processed in Q3 2025.
Management highlighted the potential for capital release and optionality, with a focus on reinvesting proceeds strategically.

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Reinsurance Program Structure and Cost Dynamics

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