WRB: It's Tough Out There; Downgrading to Underweight

Research evidence excerpt

WRB: It's Tough Out There; Downgrading to Underweight

g at a high 90s combined ratio.

MRSH Insurance Broker 17 17 - MRSH has seen weaker organic growth vs peers in 2025 and we are not expecting that to change in the near-term. Also seeing noise as McGriff deal comes on.

BRO Insurance Broker 18 18 - BRO is seeing weaker organic growth relative to peers, which we don't see changing in the near-term. We think this more than overshadows accretion coming on with the Risk Accession deal.

HGTY Insurance Broker 19 19 - The combination of full valuation plus lower margins vs peers counterbalances the strong growth prospects and keeps us on the sidelines.

Slowing growth coupled with margin deterioration keeps us on the sidelines given RLI's larger property exposure of 30% and we see growth risks in other lines including surety, transportation, and potentially its largest line, personal umbrella. RLI is

RLI P&C Specialty 20 20 -

bottom-line focused and we are confident they continue to choose bottom-line over top-line priorities.

BWIN Insurance Broker 21 21 - We believe the CAC transaction should help with growth in the next 12 months and see negative EPS revisions bottoming out.

We believe that Everest shares will be range bound until the company can show: (1) it does not have to take any additional increases to its casualty reinsurance reserves, and (2) the insurance business it is retaining can run at a profitable

EG P&C Reinsurer 22 22 -

combined ratio.

ROOT P&C Personal 23 24 Up ROOT represents a rare growth name and tech play in the auto insurance industry, however growth is slowing which is pressuring price performance.

PGR P&C Personal 24 25 Up We believe PIF growth has peaked and as others look to grow and take share we believe it will constrain PGR's valuation.