Earnings

The specialty P&C segment’s underlying loss reflected claims severity trends, largely from prior accident years, which adversely impacted the calendar year loss ratio.

Adjusted Ebitda for the quarter increased to $6.7mn compared to -$6.0mn in the prior year period.

Hippo’s gross loss ratio remained unchanged at 76% and its net loss ratio rose 23 points to 273% as the InsurTech was hit by catastrophic events in Q1, mainly in California.

New sidecar Outrigger Re posted a combined ratio of 21% and gross written premiums of $44mn.

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However, the carrier reiterated its prior guidance of a return to underwriting profitability In H2 2023 with a 2024 financial target of achieving 10%+ in full year RoE.

The charge was related to a reassessment of potential claims in professional lines, mostly from accident years 2019 and prior, and to losses from businesses Argo has exited.

Given better pricing following a disappointing January 1, the company increased its exposure significantly.

Q1 earnings calls reinforced existing trends for rates even as they threw up surprises for cat losses.

The carrier also reported lower claims frequencies, offset by increases in claims severities.

Beginning in Q3, AIG will act as a fronting partner for AFG during a transitional period of the transaction.

The carrier reported a Q1 2023 combined ratio of 94.5%, which improved 35 points year on year, driven by lower weather losses.