Shares declined 1.6% following Q2 results as investors weighed higher combined ratios driven by increased catastrophe losses and slowing premium growth amid ongoing pricing discipline, signaling underlying margin pressure despite stable underwriting metrics.
- Net income was nearly $1.3 billion, boosted by a $882 million after-tax unrealized gain on equity securities; non-GAAP operating income fell to $224 million from $311 million a year ago.
- The property casualty combined ratio worsened to 100.8%, up 5.9 points year-over-year, with catastrophe losses adding 2.3 points, reflecting margin compression in underwriting.
- Premium growth slowed to 3% overall, with commercial lines and excess & surplus lines growing modestly, while personal lines saw only 1% growth amid weaker new business.
- Expense ratio rose 1.2 points in the quarter due to commissions and expense timing, partially offsetting investment income growth.
- Investment income increased 12%, supported by higher yields and portfolio rebalancing, though portfolio fixed maturities remain at a net unrealized loss.
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