Shares declined 7.3% as investors were disappointed by margin compression driven by unfavorable reserve development and continued underwriting losses, particularly in excess casualty and affinity professional E&O lines, despite modest premium growth.

• The P&C all-in combined ratio deteriorated to 102.2%, reflecting a 4.1-point adverse prior period reserve development chiefly in excess casualty and affinity professional errors and omissions.
• Underlying combined ratios worsened notably: Commercial increased to 93.1% (from 91.0%) and Specialty to 96.8% (from 93.8%), indicating continued margin pressure.
• Net written premium growth was limited to 1%, with significant variation—commercial middle market grew 13%, while national accounts property declined 14%.
• Rate increases were uneven: double-digit in commercial auto and excess casualty, but down double digits in national accounts property and workers’ compensation.
• Despite modest improvement in the expense ratio (29.9% overall, 26.7% in Commercial), underwriting results remain challenged by social inflation, loss cost trends above 7%, and cautious reserve strengthening.