Annualized operating return on average common equity of 29%.
Underwriting income was $541 million, up 46%.
Fees amounted to $84 million, an increase of 87%.
Retained net investment income stood at $267 million, marking a 59% increase.
Gross premium written increased by 43%.
Net premiums written saw a 41% rise.
Reported an adjusted combined ratio of 75%.
Tangible book value per share plus change in accumulated dividends grew by 5%.
Property catastrophe adjusted combined ratio of 16%.
Casualty and Specialty combined ratio after adjusting for the impact of purchase accounting was 97%.
Future Guidance
Expecting net earned premiums in the Casualty and Specialty segment to be about $1.6 billion in the next quarter.
Other property premiums earned expected to be around $360 million next quarter.
Management fees expected around $55 million, and performance fees around $15 million in Q2, absent the impact of any large loss events.
Operating expense ratio projected to remain relatively stable through 2024.
Remaining cautious but optimistic about growth opportunities and capital deployment, including the successful integration of Validus.
Trends, Market Conditions, Sentiment
The integration of Validus is emphasized as a critical factor in achieving these strong results, indicating a successful strategic move has begun to pay off.
A cautious yet constructive view on the Florida market, indicating selective underwriting focused more on larger, national accounts rather than Florida-specific exposures.
A disciplined approach to capital management and underwriting is consistent, with a focus on optimizing opportunities that arise from market dislocations, including those in the specialty markets driven by events like the Baltimore bridge collapse.
Mention of potentially elevated demand for reinsurance in Florida highlights a reactive strategy to changing market dynamics.
Consistent attention to a multi-year management of risk, indicating a long-term strategic approach to underwriting and capital management.
Positive trends in investment returns, citing a beneficial interest rate environment, suggesting a well-positioned portfolio to capitalize on such conditions.
Notable Quotes
On earnings performance and strategic outcomes: “This is a great start to the year and build on our momentum following an equally strong finish to last year.”
Regarding the reinsurance environment and Validus acquisition: “Given the very favorable reinsurance environment, we expect this to be highly accretive to shareholders.”
On capital management and future planning: “Our primary focus is optimizing the Validus business by renewing it onto our wholly owned and capital partners’ balance sheet.”
Concerning market conditions and hurricane season: “Given this, we have constructed a portfolio that’s designed to deliver resilient performance against a wide spectrum of potential tail outcomes.”
On underwriting strategy and market approach: “For our customers, the provision of consistent coverage and pricing regardless of forecast is a key component of our value proposition.”
