-
Achieved a full-year combined ratio of 86%, significantly outperforming the 10-year average through strict underwriting discipline and cycle management.
-
Top-line contraction of 19% in Q4 was primarily driven by the strategic non-renewal of a large professional indemnity binder in the long-tail portfolio to protect margins.
-
Management utilized ‘dynamic cycle management’ by increasing facultative reinsurance purchasing to mitigate volatility as market conditions began to soften.
-
The Short-tail segment saw mixed conditions, with energy and property lines facing the most significant competitive pressure, while specialist lines like construction remained robust.
-
The company’s S&P financial strength rating upgrade served as a critical differentiator, enabling access to higher-quality business and larger carrier-dominated markets.
-
Operational expenses increased due to strategic investments in new hires and systems, compounded by the strengthening of the British pound against the U.S. dollar.
-
Maintained a ‘founder-manager’ mindset, prioritizing long-term value and capital adequacy over short-term market share gains.
-
Management anticipates a ‘bottoming out’ of pricing declines in the long-tail segment during 2026, following several years of deterioration.
-
Top-line pressure is expected to persist in Q1 and Q2 of 2026 as the runoff of the exited professional indemnity portfolio concludes.
-
The company expects continued growth in specialist lines, specifically citing a strong pipeline in global infrastructure and data center construction projects.
-
Guidance assumes competitive pressure will remain elevated, particularly from large carriers with excess capital, necessitating continued selective underwriting.
-
Strategic focus for 2026 remains on ‘focus, consistency, and discipline’ to navigate the transition into a less favorable market cycle.
-
Declared a special dividend of $1.15 per share, the third consecutive year of such payments, reflecting high confidence in capital adequacy.
-
Returned over $108 million to shareholders in 2025 through a combination of dividends and opportunistic share repurchases.
-
Identified currency revaluation as a significant volatility driver, with a 6-point negative impact on the full-year combined ratio due to U.S. dollar fluctuations.
-
Management explicitly noted a reduction in the general aviation book by nearly half over two years due to inadequate market pricing.
