2Q26 Call Takes - Feeling a Little Better After the Call and a Messy Quarter

研报英文原文证据摘录

2Q26 Call Takes - Feeling a Little Better After the Call and a Messy Quarter

softening going forward as larger insurers

attempt to penetrate the market (SMID growth accelerated at CB & TRV in 2Q).

◼ Despite the largest area of rate pressure remaining in Property, HIG believes this is still a

highly profitable line and attractive area for growth, noting that property pricing in Small

Business and Middle Market remained fairly steady in MSD% (same as in 1Q).

◼ HIG noted pricing in Cml Auto and GL remained strong and above loss trend. Middle Market

RRC ex comp was down 130bps YoY to 4.4% with declines across most lines but HIG noting

they remained healthy in Auto in GL; however, it sounds like middle market saw increased

pressure in 2Q particularly in GL and Comp which HIG noted may impact its growth in 2H.

General liability pricing was 9.9%, up 30 bps QoQ and excess and umbrella pricing remained

in the "low double digit" range, improving 70 bps (surprising given CB Casualty pricing being

up 6.4%)

◼ The charges in Cml Auto were driven by higher frequency of large losses as more cases

that historically would have been more minor in nature now have attorney involvement

◼ While HIG feels good about its Comp reserves, mgmt called out concerns on the forward

trend for the line.

◼ It sounded like disability loss ratios could continue to see pressure as HIG still sees higher

utilization particularly in the new states they are launching but also in legacy states.

◼ It did not sound like HIG was expecting a turnaround for Personal lines growth, and as a

result acknowledged that hitting the ER improvement targets would be much more difficult.

HIG called out the direct channel as under pressure with expectations for shopping to remain

elevated.