Good morning, and welcome to the Everest Earnings Conference Call. I would now like to turn the call over to Jon Levenson. Please go ahead. Good morning and welcome to the Everest Re Group, Ltd. 2022 first quarter earnings conference call. The Everest executives leading today's call are Juan Andrade, President and Chief Executive Officer, Mark Kociancic, Executive Vice President and Chief Financial Officer. We are also joined by other members of the Everest management team. Before we begin, I will preface the comments on today's call by noting that Everest SEC filings include extensive disclosures with respect to forward-looking statements. Management comments regarding estimates, projections, and similar are subject to the risks, uncertainties and assumptions as noted in these filings. Management may also refer to certain non-GAAP financial measures. These items are reconciled in our earnings release and financial supplement. With that, I turn the call over to Juan Andrade. Good morning, everyone. Thank you for joining us today. Everest is off to a strong start in 2022, with first quarter results that reflect our relentless focus on profitability and margin expansion. Excellent performance across our underwriting businesses and investments contributed to $406 million in net operating income and a 16.2% annualized operating ROE. Our discipline and resilience stand out in a challenging and complex environment. We are a source of strength and stability in unprecedented times. The world is facing historic volatility with the effects of the pandemic, compounded by a web of macroeconomic, geopolitical, and societal issues. Adding to this are climate-driven industry catastrophe losses. The first three months of 2022 were active, with estimated economic losses over $30 billion and insured losses over $14 billion. Significant events occurred in the quarter in Western and Central Europe, Australia, Japan, and the United States. The historically quiet first quarter has not been quiet for the past six years. According to the National Oceanic and Atmospheric Administration, January, February, and March of 2022 were each in the top 10 warmest months in the official observed record dating back to 1880. Amplifying these challenges is the brutal Russian invasion of the Ukraine and the upheaval, death, and destruction facing the Ukrainian people. It is heartbreaking to witness the inhumanity and the cruelty that is unfolding in Europe. This war destabilizes global economic systems and financial markets and threatens democracy, peace, and decades-long efforts towards shared prosperity. Everest stands in solidarity with the Ukrainian people. As underwriters, the protection and stability we provide has never been more important. This turbulent time is when our unwavering focus on consistent, disciplined execution is most important. Our focus was evident across our underwriting businesses in the first quarter. Both performed well and continued to lead with expanding margins and highly relevant, diverse risk solutions across lines and geographies. In the insurance business, our focus on delivering profitable growth, expanding margins, and best-in-class. In reinsurance, we strengthen our global leadership position and maintain a laser focus on diversification, reducing volatility, and maximizing profit. This deliberate honing of our portfolio is an ongoing strategy we successfully applied to the April 1st renewal. We brought the same discipline to our investments, which continued to perform well in the quarter. Our portfolio is diversified and well-positioned for the current rising interest rate environment. During the quarter, we continued to embed technology in our underwriting processes and to increase our capabilities, productivity, and efficiency. Our momentum is powered by the extraordinary efforts of our people. They are the bedrock of our inclusive culture, and they drive our success. As we announced last week, we lost a very special colleague with the passing of Don Mango, our Chief Risk Officer and Chief Actuary. Don was a legend in our industry and at Everest. I had the privilege of working with him to evolve our enterprise risk management framework to what it is today. He's going to be greatly missed by all of us. To carry Don's vision forward, we have appointed Ari Moskowitz as Everest Group Chief Risk Officer. Ari is an accomplished leader with deep actuarial expertise. In his former role as our reinsurance Chief Operations Officer and Chief Pricing Actuary, Ari played a key role in integrating risk discipline across the business and embedding it into everything we do. He has also helped to advance our culture of diversity, equity, and inclusion as a founding member of our DEI council. I look forward to working with Ari to continue advancing our risk management agenda. Let's turn to our financial results for the first quarter of 2022, beginning with our group results. In the first quarter, we delivered $406 million in operating income with a 16.2% annualized operating ROE. This includes over $235 million in underwriting income, a significant improvement over prior year. $243 million in net investment income. Our combined ratio of 91.6% is a 6.5-point improvement over last year. The attritional combined ratio was 87.4%, and our attritional loss ratio was 60%, a 70 basis point improvement over prior year. We also posted a competitive operating expense ratio of 5.8%. Rate continued to outpace expected loss trend in the first quarter, and our margins continued to expand. In addition to rate, we are also benefiting from additional premium on lines of business with inflation-sensitive exposure bases such as general liability, property, and workers' compensation. We also continue to benefit from intentional underwriting actions to manage limits and granular segmentation of our portfolio to ensure we are writing the most profitable business. Our focus on profitability and expanding margins is clear. We grew gross written premiums by 9%, 15% in our insurance division, and 6% in reinsurance. This growth was solid and broadly diversified in both of our underwriting divisions. Diversification allows us to target higher margin opportunities in each geography and line of business. We are not reliant on one geography or line to drive our growth and profitability. With regard to the Russian invasion of Ukraine, the war is an ongoing and evolving event. There are significant uncertainties regarding actual and potential losses and on whether and how coverage would apply. We have completed a detailed coverage review of our businesses, and we have limited exposure to this war. To date, we have received only one loss notice for a de minimis amount. Based on what we know at this point in time, we expect that any potential financial loss to Everest as a result of these events would be a manageable earnings item. Due to the high degree of uncertainty around both exposure and coverage, a reasonable estimation of potential loss is not credible at this time. We are continuing to work with our brokers and ceding partners to assess any potential exposure. In sum, our group results in the first quarter were strong and created meaningful momentum for the year ahead. The combination of our financial strength, capital position, outstanding market reputation, global offering, and deep relationships uniquely positions Everest to capitalize on market opportunities. Let's turn now to our reinsurance results. In the first quarter, gross written premiums grew by 6%. Growth was strong in casualty and financial lines globally, particularly casualty pro rata, which continues to be supported by strong underlying rate and underwriting and increased Everest participation on treaties. This is offset by deliberate and targeted reductions in our property catastrophe-exposed business as we further reduce the volatility in our portfolio. These actions resulted in significantly improved economics. The combined ratio was 91.4%, a 6.1-point improvement from last year, and includes $110 million of pre-tax catastrophe losses, net of reinsurance and reinstatement premiums from the Australia floods, European storms, and tornadoes in the U.S.. Our attritional combined ratio was 86.2%, including an attritional loss ratio of 58.9%, which is a 60 basis point improvement over last year's first quarter. Additionally, our expense ratio was 2.4% during the quarter. This continues to be a strategic advantage for Everest. We achieved excellent underwriting profit of $177 million. Driving this result is our priority of maximizing profit while managing volatility. We successfully executed on this strategy during the January 1 renewal season and continued to make meaningful progress throughout the first quarter. Specifically, we continued to grow our targeted classes of business and geographies. Our international treaty business grew by over 22% in the quarter. We expect this to become a bigger share of our business over time. Global facultative grew by 10%. We are making targeted investments to expand our facultative capabilities around the world, including industry-leading talent to our team. Those investments are already paying off. Casualty grew globally with our pro rata book up 48% year-over-year, and our casualty XOL book was up 8%. We continue to be measured and selective in our property lines and specifically in cat exposed property. In the quarter, those lines decreased year-over-year, and we further honed our portfolio to maximize expected profit while reducing volatility. We continued the strategy during the Q1 renewal. In property, total written premium, limits exposed, AAL, and PMLs were all reduced, and expected profit in dollars increased. This resulted in more profit for less exposure. By any account, that's an outstanding trade. We also achieved growth in our casualty book with higher participation alongside some of the industry's best primary underwriters. We expect conditions for upcoming reinsurance renewals to offer targeted opportunities for Everest to deploy capacity at superior margins. We move forward with the underwriting disciplines, and we have the tools, talent, and capital solutions to fuel continued profitability. Now let's turn to our insurance division. Intentional long-term build of the insurance franchise with an absolute focus on underwriting profitability. Our combined ratio of 91.9% was excellent, improvement from last year. The attritional combined ratio of 98.9% improved 130 basis points from a year ago, and includes an attritional loss ratio of 63.1%, 120 basis points improvement from prior year. These improvements resulted in strong underwriting profitability of $59 million in the first quarter, a new record for the quarter. Our focus on profitability and margin expansion is clear. We have improved the attritional combined ratio by over 5 points since the end of 2019. We also delivered robust and diversified growth in the quarter, up 15%, with gross written premiums once again over $1 billion. It's important to note that excluding strategic and intentional underwriting actions taken this quarter to reduce volatility and optimize the portfolio, our growth rate is higher at 25%. As we have said, Everest Insurance remains in long-term growth mode, but we will reduce exposures where it makes sense as we continually reshape the portfolio to maximize profitability. Growth in the first quarter reflects our relevance in the commercial insurance market and was driven by exposure increases, rate, strong renewal retention, and new business across our core segments, lines, and geographies, most notably across our long-tail lines. In the quarter, we achieved a rate increase of 9%, excluding workers' compensation, and a total increase of 6% in our core P&C portfolio. Notably, financial lines were up 15%, umbrella excess was up 10%, and commercial auto was up 9%. Rate continues to exceed expected loss trend across all lines, with the exception of monoline guaranteed cost workers' compensation, which now represents only 7% of our portfolio in the quarter. We made excellent progress against our objectives for the insurance business, and we remain vigilant in driving and improving margins as we scale this business. There's a significant runway ahead of us to grow profitably in the global P&C market, and we're capitalizing on it. As we strategically expand our offering, we continue to build out our global platform from underwriting to claims. This includes leveraging key technology and analytics to improve productivity, speed, and accuracy, and enhance the customer experience. We are finding new ways to innovate with improved structures and new offerings, directly addressing gaps in the market. We continue to diversify and deepen our relationships with distribution partners globally. We are infusing analytics to take a more quantitative and metrics-based approach to sales that brings the entirety of Everest to customers where, how, and when they need us. As our first quarter performance shows, we've built the runway to advance our objectives, supported by our profitable underwriting operations, investments, market relevance, strong balance sheet, and our values-based culture, all powered by a world-class global team. I am fully confident in Everest's ability to create exceptional value and deliver returns for our shareholders. As I said at the top of the call, more than ever, the world needs a partner it can depend on with the breadth of experience, capabilities, and dedication Everest brings to the market. In times of uncertainty, we are a source of strength and stability for our customers, shareholders, colleagues, and the global community. Now I will turn the call over to Mark Kociancic to take us through the financials in more detail. Mark? Thank you, Juan, and good morning, everyone. Everest had an excellent start to 2022 as we continue to make progress towards the objectives in our three-year strategic plan. We had strong underwriting income and another good quarter of good investment returns, leading to a 16% annualized operating return on equity. Both of our underwriting businesses and our investment portfolio contributed to the strong result this quarter. Now for a review of the first quarter results. For the first quarter of 2022, Everest reported gross written premium of $3.2 billion, representing 9% growth over the same quarter a year ago. By segment, reinsurance grew 6% to $2.2 billion, reflecting a 32% year-over-year growth in casualty and an 11% reduction in property. Insurance grew 15% to an even $1 billion, with notable growth in specialty casualty, offsetting intentional underwriting actions to reduce exposure in property and optimize the profitability of our portfolio. Everest reported net income of $298 million, equal to $7.56 per diluted share, and a total shareholder return of 8.6%. On an operating income basis, the numbers are $406 million for the quarter and $10.31 per diluted share, with an annualized operating return on equity of 16%. Included in net income and consistent with the 5% reduction in the S&P 500 during the first quarter, Everest experienced a $109 million after-tax unrealized loss on our common equity portfolio. Note that these are not realized losses, rather fair value declines, which flow through net income, thus lowering our total shareholder return during the first quarter. We incurred $115 million of pre-tax cat losses, net of reinsurance and reinstatement premiums in the quarter. The Australian floods in the first quarter represent the largest flood loss on record for the Australian insurance industry at just over $3 billion. Our cat provision includes $75 million for this event. The other cat events in the quarter were the European storms at $30 million and late March U.S. winter storms in the amount of $10 million. Of the total $115 million of cat losses incurred in the quarter, $110 million are in the reinsurance segment, with $5 million from the late March U.S. winter storms within insurance. We also note that there is no net prior year development in cat losses this quarter. We continue to see improvement in the attritional loss ratio across the group, along with a lower expected cat load, given our emphasis on volatility reduction, and we reconfirm our assumptions for the group combined ratio in the range of 91%-93% for the full year 2022 as well as for 2023, as noted in our strategic plan. Our first quarter 2022 GAAP combined ratio was 91.6%, which includes 4.1 points of cat losses and no net prior year development. Our attritional loss ratio of 60% was a 70 basis point improvement over the first quarter of 2021, with improvements in both the reinsurance and insurance segments. The reinsurance attritional loss ratio in both segments. We continue to see rates outpace loss trends. Turning to commissions, the overall group commission ratio is 1.2 percentage points higher year-over-year, largely driven by the 1.9-point increase in reinsurance commissions. The 24.9% acquisition ratio in reinsurance for the quarter is broadly in line with our expectations for 2022 and reflects the underwriting actions we've taken over the past few quarters, notably the increased writings of casualty pro rata business. The first quarter 2021 reinsurance commission ratio of 23% benefited from approximately 120 basis points of non-recurring commission adjustments. The balance of the year-over-year variance is primarily due to changes in business mix. For the insurance division, the acquisition ratio from the year-ago figure of 13.2%, largely driven by increased ceding commissions. Everest continues to have a very competitive operating expense ratio, 5.8% for the quarter versus our target of approximately 6% for the group. Year-over-year, the reinsurance expense ratio is lower, 2.4% versus 2.8% as we continue to scale the business. The insurance expense ratio is marginally higher, 15.3% versus 14.8%, and within our expectations as we continue to expand our global footprint. Regarding the impact from Russia's war on the Ukraine and in terms of reinsurance and insurance losses as Juan described, at the present time, we simply do not have enough information to make a credible estimate of losses. Our investment portfolio is the one area where we have enough information for an initial assessment of losses. Given the repricing of Russian corporate securities, Everest's total direct exposure to these instruments is $15 million on a book value basis. As of March 31st, we booked a $9.5 million impairment, with $5.5 million remaining in fair market value. During the first quarter of 2022, Everest continued to generate strong operating cash flow in the amount of $846 million. Our strong cash flow also has the benefit of allowing us to invest into the rising rate environment, increasing overall portfolio yield. Investment income for the quarter was $243 million, a strong start to the year with good balance between fixed income of $148 million and $100 million from alternative investments. Overall, our expected fixed income reinvestment rates are close to the 3% level. Everest's investment portfolio is well positioned for rising rates in the existing core portfolio. We have a short asset duration of 3.1 years and also nearly 20% of our fixed income investment. For the first quarter of 2022, our net income tax rate was 8.3%, benefiting from the geographic distribution of our income streams and thus outperforming our working assumption of 11%-12% for the year. Shareholders' equity ended the quarter at $9.5 billion, driven primarily by the first quarter rise in interest rates and negative impact on the value of fixed income securities, particularly those towards the short end of the yield curve. Two-year Treasuries rose 160 basis points, and ten-year Treasuries rose 83 basis points during the quarter, resulting in an $811 million after-tax fair market value reduction. Our relatively low price towards a more neutral balance over the next few years, and we hold our available for sale securities to maturity for the most part, underlying operating cash flow and balance sheet liquidity. Therefore, I don't view value as a constraint on our ability on our financial strength. The resulting book value per share ended the quarter down at $241.52, a decrease adjusted for dividends of adult. The book value per share, excluding unrealized appreciation and depreciation of securities, stood at $256.01 per share versus year-end, representing an annualized increase of 6.2%. Debt leverage at quarter end stood at 21.2%, an increase in the leverage ratio driven by the unrealized fixed income market value declines noted previously. In conclusion, Everest ended the first quarter of 2022 in an excellent financial and strategic position. We have ample capital to operate in the current environment, and we continue to see good opportunities to invest in the platform and scalability of our company. With that, I'll now turn it back to Jon. Thanks, Mark. Operator, we are now ready to open the line for questions. We do ask that you please limit your questions to two or one question plus one follow-up, and then rejoin the queue if you have any remaining questions. Thank you. At this time, I would like to remind everyone in order to ask a question, press star then the number one on your telephone keypad. Your first question comes from Yaron Kinar from Jefferies. Please go ahead. Thank you. Good morning. Mark, maybe going back to your comments on the investment portfolio. You gave us the new money rate. Where do you see the current fixed income given here? Thanks, Yaron. I see going back to the reinvestment rate, we're roughly at, you know, 3%. I see that increasing over time, certainly with pressure upwards on interest rates. I see that only going up for us. On a current basis, the market value or the market yield is greater than the book. There's upward momentum on that side. In terms of the portfolio itself, I'd say roughly one-ninth to one-eighth converts to cash for 2022. When you combine approximately, you know, we would expect something around the $3 billion operating cash flow level for the year. That's a significant amount of investable funds. I'd also reiterate the point that I made in my opening remarks that we've got roughly 20% of the fixed income portfolio in floating rate securities, which will help that reinvestment yield. Thank you. That's very helpful. My second question maybe for Juan, in your prepared remarks, you talked a little bit about the cat load this quarter. Can you maybe help us think about how you see catastrophes in this particular first quarter relative to expectations for a first quarter? Were they above normal, in line? Yeah, Yaron, thanks for the question. You know, as I said in my prepared remarks, it was an active quarter, right? I mean, we did end up as an industry having over $14 billion in cat loss. That translates to about $30 billion in economic loss. I would say this is elevated for first quarter. As I said, look, I've looked at the data going back a number of years on all of this. As I said, that first quarter that typically is quiet hasn't been quiet, right? I would expect that $14 billion is definitely more active for Yaron. Your next question comes from Josh Shanker from Bank of America. Please go ahead. Yeah. Thank you. Looking at pro rata casualty business, prices are up for the underlying business from where they were a year ago, but ceding commissions are also up. Is the profitability between those two time frames and has the ROI on capital being put into that part of the same or is it lower than it was a year ago? Yeah. Josh, this is Jim Williamson. Thanks for the question. It's a good one. Look, what we've seen and what we've been reporting is two factors that you described. There's a tremendous amount of margin creation happening in the primary casualty market, driven by rates, but also by changes to limit re-underwriting, et cetera. That's definitely playing through, and we're seeing that in our data. At the same time, cedents creation via increased ceding commissions. We've seen that dynamic play out. What I would tell you broadly speaking, you know, really only to Everest portfolio, our view is that trade is resulting in improving economics for us, meaning the improvement in the underlying market is exceeding growth rate in ceding commissions. Now, that's not true on every deal across the market, which is why the thoughtfulness and the selectivity of our underwriting is so important. We measure each and every deal, and what we're looking for in this environment is margin expansions, where we see ceding commissions running ahead and deteriorating margins. I would say broadly at this point, overall, it's still a pretty rational market out there that way. We see some real good growth opportunities continuing. On the property and property cat side, your exposures, but the capital that you are isn't really being freed up because that capital obviously you're using for other items. Isn't there for the additional business that you might be leaving money on the table as you trade volatility? I mean, I guess maybe that's associated with casualty business also to underwrite property and that, yeah, you've lowered your volatility, but you've also lowered your long-term earnings power. Yeah, Josh, Jim again. Look, we have underwriting and risk management. We are really evaluating all of our lines at a very granular level between both, you know, reinsurance, insurance, and our investment portfolio. We certainly take into account, you know, total capital usage and optimization when we're making those decisions. When we talk about deploying relatively more capital to casualty versus property, we're accounting for the fact that, you know, you do get diversification benefits, and you do get opportunities to deploy capital, in some cases, in multiple areas. We're not seeing any area we're failing to deploy capital at the most efficient level of it, you know, when you look at the group. Josh, it's Mark. I would just add one remark to that. I think in addition to what Jim said, it's really more of a marginal movement, what we're seeing here with slightly reduced property cat and an expansion on the casualty side. As Jim pointed out, the portfolio is still very well diversified, and we're very focused on a ROE to proceed in this way. Thanks, Josh. Your next question comes from Ryan Tunis from Autonomous Research. Please go ahead. I was hoping on the insurance side, you could talk a little bit more about some of the re-underwriting actions you're taking, and, you know, whether or not we should expect the growth rate in that segment over the remainder of the year. Yeah. Ryan, it's Juan Andrade. Let me start, and then I'll ask Mike Karmilowicz to join. Look, I think the first point is we still feel very bullish about the growth opportunities in insurance. As I said in my opening remarks, you know, I think in some ways we're only scratching the surface of the potential that's out there. It's one of the reasons why we now have international expansion underway and frankly, while we continue to gain traction in the U.S. market. You know, we're good underwriters. What you saw us do this quarter is what any good underwriter does. You know, you look at your portfolio, you analyze it. In some cases, there's gonna be things that you like and that have a good economic return, and there's things that we don't like. Therefore you exit them because we see better opportunities to deploy capital and move in that direction. You know, if you think back to that 15% growth rate for the quarter, in the insurance side, similar to our strategy in reinsurance, and the other part of it was driven by one specific account away from it. That's the general theory. We do feel very bullish about it. I would ask Mike to maybe jump in and add some additional color. Sure. A few things I would say. First off, as you know, our focus is always has been Juan's pointed out, and I would reiterate to you guys, we've had 29% straight say all of them double- digit. We are very focused on cycle management. You see us talk about it with workers' comp, property and other areas. I don't see this anticipating slowing us down. We see ample opportunity in the marketplace of capital and a lot of thrust, and so we will continue to execute that. Where we see opportunity, we'll take advantage of it, but we don't foresee any of that changing anything we do every day. Got it. Then on the reinsurance side, obviously a good margin quarter there. Just maybe a little more insight into, you know, what specifically drove that. Was it, you know, a lower loss pick as you're, you know, recognizing, you know, the portfolio is less vulnerable and better underwritten, or was there anything one-time in nature that helped? Give you some of that detail. You know, look, I think a lot of this is the result seen very consistently. In the underlying primary casualty market. That's rate, that's limits, that's terms, conditions, et cetera. We've been very prudent in how we've revealed that improvement in our loss picks. We've said we've waited, and we've been waiting for that data to prove itself, to start to see it in our numbers, et cetera. I think what you're seeing this quarter is the result of that prudence, and it's the result of that underlying improvement. On a year-over-year basis, we have seen an improvement in casualty pro rata in particular and other lines as well, that have allowed us to basically settle on lower loss picks for those lines. We're still being prudent, we're still being disciplined, and we're still not taking full credit for the trends we see, but we are starting to flow through some of that margin. To give you a sense of quantum, on a year-over-year basis, we saw about 140 basis points of margin improvement due to lower expected loss picks, and that was then partially offset by the change in mix. Because if you look at Q1 2021 versus this time last year, it's closer to 50/50 now, and that's certainly an offsetting factor as casualty carries a higher loss pick. I think all of this is a result of the market trends we've been discussing, and we see those trends continuing as we head into the year, and we continue to see pricing in excess of even elevated loss trends. Thanks. I really appreciate that level of detail at the end there. That's all I got. Thanks, Ryan. Your next question comes from Elyse Greenspan from Wells Fargo. Please go ahead. Hi. Thanks. You know, my first question, if I looked, you know, on a group consolidated basis, right, the underlying combined ratio actually did deteriorate a little bit year-over-year. I was hoping you could just give us a sense of just kind of an outlook for the accident year ex cat combined ratio. It seems like a big chunk of that deterioration, right, was because the acquisition ratio ticked up around 120 basis points. Can you just give us a sense of, you know, the outlook for that acquisition ratio over the balance of this year? Elyse, it's Mark. A few points that you asked there. First of all, let me just start with the cat, and then I'll get into the acquisition ratios. On the cat, I made this point last quarter that our expectations for 2022 would be a cat ratio for the group of less than 6%. That's, I think, a meaningful reduced expectation versus last year and definitely on a historical basis. There is some reduction that's expected. I would say a couple of points we have. If I start with, probably a little bit higher. You're seeing us trend at 24.9% here. Last year, I think we were in the low 24s. I did mention some of the one-offs we had in Q1 last year that would drive it. On the insurance side, we still see a declining net acquisition ratio, and that's a combination of things. You've got both ceding commissions coming in on certain lines of business, depending on the mix, and then just lower broker commissions versus our expectations on some other lines as well. I'd say there's probably downward pressure in general on the primary side for acquisition ratio. Okay, great. My second question, on the reinsurance side, you know, a little bit of a follow-up to Ryan's question. You talked about, right, reflecting, you know, just more of the improvement on the casualty side. As we think about the mix shift to casualty, and we also think about, right, the impact that that could have on your margins as we're thinking about going forward, I'm assuming that you guys still see, right, a line of sight into kind of getting that segment to that 91%-9- Yeah. Elyse, this is Jim Williamson. We would definitely reiterate our commitment to that target, and we're very confident in it. One, while casualty does carry a higher attritional loss ratio, and a slightly higher attritional combined ratio, you see the improvement that we were talking about earlier flow through the book, and we've begun to reflect that in our loss picks. While I cited, you know, 140 basis point improvement year-over-year to our pick based on improved loss picks, it's higher than that for casualty. We're seeing that happen. That's critical. Then the other part, you know, when you think about the total combined ratio, also true of reinsurance. When you ladder all that up, our expectations will be headwinds to achieving our goals. We're very confident in that. The other thing I would just say, and this is particularly important I think as we roll through the summer, we're still very much a leader in the property cat market, and we take meaningful lines. We've been doing that in improved economics. In Q1, as Juan had indicated in his opening remarks, we were able to take less risk by any measure, whether it's PML, AAL, et cetera. But we are getting paid more profit dollars, more expected profit dollars will flow to the bottom line. That w ill certainly have an impact on our traditional and ultimate combined ratio. We see good opportunities through the rest of the year to continue to execute that strategy. Thanks, Elyse. Your next question comes from Mike Phillips from Morgan Stanley. Please go ahead. Thanks. Good morning, everybody. Juan, given the pretty positive comments and kind of trajectory of insurance segment, margins expanding your appetite for kind of keeping more of the gross business over the next couple of years in the insurance segment, it's been pretty consistent for quite a while. Any thoughts on kind of moving that out over the next couple of years? Yeah, Mike, thanks for the question, and it's obviously something that we look at on a pretty regular basis, particularly as we go through all of our ceded reinsurance renewals on all of this. We have made changes in our different treaty protections, et cetera, et cetera. You know, the way we tend to look at this from a philosophical standpoint is as we get additional rate, additional terms, as we continue to feel very good about our own underwriting. We want to have on any particular line of business at the same time. The short answer is we are constantly making geography, et cetera. We feel pretty good about where we are right now. I would invite maybe Mike Karmilowicz to add a little bit of color as well. Sure. Thanks, Juan. Yeah, I would only add to that we continue to scale up a lot of our existing businesses and get more critical mass. To Juan's point, you'll see us take more net. We've done that already in a few different pockets, and I see that continuing as we continue to grow and gain scale. Okay, thanks. Thanks for that. Sticking with the insurance, Juan, you talked about, again, rate over loss trend. I think you said 9% rate ex-comp, ahead of kind of the long-term loss trends. Can you share with us how you're viewing that long-term loss trend? What number you're looking at there, and how has that changed given recent times in the world and increased risk? What are you using for your long-term loss trend right now as compared to that 9% rate? Yeah. Thanks, Mike. Good question. Look, we feel pretty good about about where we are. As I said that I would actually say that, rate is outpacing expected loss trend comfortably for us, across the board, right? You're right, excluding comp, it's a 9% increase in rate that we saw in the quarter, and it's hundreds of basis points lower on that, where the trend would be, basically. I would tell you, though, that we have consistently updated our loss trend assumptions really since 2019, 2020, 2021 upward, you know, reflecting higher loss trends in our pricing models, and accident year loss trends. You know, we monitor that pretty closely. I can tell you we're comfortably above loss trend right now, really across all lines of business, with the exception of workers' comp would be the only one that I flagged earlier. Juan, sorry, just to jump in, make sure I understood you. You said something about hundreds of basis points. Can you say that again and what you meant there? Look, if you're running at a 9% increase in rate, our loss trend is lower than that by, you know, several hundred basis points, basically. Okay. Thank you, Juan. Thank you. Sure, Mike. Your next question comes from Brian Meredith from UBS. Please go ahead. Hey, thank you. Juan, I was just curious. I appreciate the color you gave on Russia-Ukraine exposure, and there's a lot of uncertainty I know right now, and your exposure gets diminished. I'm just wondering, as you think about your portfolio of business, you know, where are you kind of looking at? Where are you focused at? Where could there potentially be some exposure? Yeah. No, absolutely, Brian. Happy to give you a little bit more color and context in all of that. Let me reiterate, though, something that I said in the earlier comments. We don't see this event as changing our profit objectives for the year, and I think that's probably the most important thing to take away. The other part of that is any loss estimate that we can give you or frankly, any of our competitors give you at this time, it's really purely speculative, right? Yeah. The reason for that is the war's ongoing. Physical damage and economic disruption are uncertain. It's changing. The interpretation and application of key coverage is still in its infancy, right? That's essentially kind of where we are with all of this. You know, as we have done that very detailed assessment of coverage that I talked about earlier in my remarks, you know, I can tell you that, for instance, on the primary side, on insurance, we would have close to zero exposure in any of that. Very, very little. On the investments portfolio, Mike cert-- I'm sorry, Mark certainly talked about that, and you saw the impairment that we did in the quarter as well. On the reinsurance side, we would have limited exposure. The way I refer to that is we have very few, like one or two, former Russian cedents that are no longer clients of ours. So that's very little exposure from that perspective. Then when we look at sort of lines that could be exposed to all of this, you know, you certainly look at some of the aviation lines that could be exposed, although that's a relatively small business for us in the quantum of overall reinsurance. You could also look at potentially some marine lines that could be exposed. You could look at some trade credit, political risk type stuff, but we're much less concerned about that. Then you would look at some of the political violence covers as well, but we're also relatively small on that. Let me ask, Jim Williamson to actually even go deeper into that and just give you a little bit more granularity. Yeah, sure, Brian. This is Jim, and I'll repeat a little bit of what Juan said and give you a little bit more detail because obviously these topics have been heavily covered. There's a lot of speculation happening in the media around potential losses. You know, on an aviation basis, as Juan mentioned, it's a relatively small part of our book. There is significant uncertainty around the extent of potential loss in terms of you know, actual units of aircraft exposed, and that number's been changing. The application of coverage there are real questions related to how we've positioned it over the last two years to withstand shock losses. Given that, when you look at hull, we do have, and we know that there are trapped vessels in the Black Sea, for example. There's a lot of uncertainty around the size. Land cover, hull war, et cetera, can also be in the marine area. There are properties on our book, though the conflict is ongoing. On a trade credit and political risk basis, you know, I think our teams have done an outstanding job of managing that exposure. The terms of those contracts when there's dislocation in the market, there's been a lot of cancellation activity. That exposure, that potential exposure has been shrinking by the day. We've also seen a lot of payment activity continuing in those contracts that haven't been. Political violence, again, that'll apply primarily to property exposures, and we've evaluated potential exposures. We don't have heavy concentrations in the major cities that have been subject to the conflict in a meaningful way. We haven't had any reported losses, other than one which was less than $300,000 of potential loss, from a political violence perspective. You know, looking very, very manageable at this point and tremendously uncertain. We're just continuing to have dialogue with our cedents. We're assessing it, and we'll keep a very close eye on it. Just curious, Juan, your stock actually had a point this quarter where it dropped pretty significantly, and I was a little surprised that we didn't see more share buyback in the quarter. Maybe just remind us kind of your thoughts on kind of capital here and Mark and kind of managing it. Do you have, like, ability to kind of really go in the market and buy back some stock when you know, we get this market volatility? Yeah, Brian, let me start, and then I'll ask Mark to add. The short answer to your question is yes, we absolutely have the capability to go in and do buybacks as you saw us do last year as well. You know, frankly, our stock was trading at a pretty good level during the first quarter. That certainly had a bit of a dip as the war started, et cetera. You saw us come in and we did have some buying activity even though it was relatively small. When you think about how we think about capital management, that philosophy hasn't changed, and from what we have been articulating, frankly, since I've been the CEO of this company and we reiterated at our investor day last year, which is our number one priority really is to privilege our underwriting businesses as we see accretive growth opportunities. Everything that we have been sharing with you this quarter and in past quarters is that journey that we have to continue to expand margins, improve the underlying profitability of this company, and you've seen us do that. From our perspective, that really is sort of priority number one. Beyond that, absolutely, we will consider share buybacks, we will consider other things at the same time. Let me ask Mark here to jump in. Yeah. Brian, not too much more to add to that. Although I will say that we see, you know, excellent opportunities on organic expansion right now within both insurance and reinsurance. It doesn't mean we can't do both, but there's a really nice marketplace for us, in our view. I'd say capital is really being privileged for that right now. Thank you. Thanks, Brian. Your last question comes from Meyer Shields from KBW. Please go ahead. Thanks. I want to start with one question on reserving, and I'm not quite sure how to phrase this. If we break down reserving in sort of like the mathematical analysis and then the judgments associated with that, can you break down, I guess, the absence of enormous or significant reserve development into those categories? Another way of asking it is, are there indications of redundancies that you're just hesitant because of elevated risk, or are the indications not there? Sure, Meyer. It's Jim Williamson. Wanted to step back just to reiterate our reserving process, which is very robust and has been strengthened meaningfully over the last two years. You know, we're taking a very disciplined approach to re-reviewing all of our carried reserve positions quarter. We've implemented a number of automated tools to allow us to do that. We are closely monitoring IBNR consumption at a very granular level across both reinsurance and insurance by line, by accident year, et cetera. Then, of course, we have our ground-up reserve studies that were conducted. None were actually completed in the first quarter, but we will start getting completed reserve studies in Q2, and that's on an accelerated schedule. Accelerated over last year, which was also accelerated from the prior year. A lot of eyes on our carried position. When you look at you start slicing our IBNR and our carried reserve position in the you know all those pieces I described, you're clearly gonna see movement you know redundancies in some areas, deficiencies in some others, et cetera. Overall I would reiterate what we've said in prior calls, which is we're very confident in the strength of our carried reserve position, and we have seen no information really since the end of 2020 that would cause us to take any action any meaningful material action one way or the other from a reserve change perspective. That's certainly true this quarter. Again, we'll continue to monitor it, and if that changes, we'll certainly, you know, you'll be the first to know. Yeah. Meyer, the other thing. This is Juan Andrade. The other thing that I would add to what Jim has just said is keep in mind the discussion that we've been having about rates being in excess of loss trend. We have been saying that very consistently really for the past three years, essentially. By definition, you are building margin, and you are expanding margin there. As we have also said before, we haven't taken that to the bottom line, mainly because of all the issues that we're talking about with regards to inflation and severity and all these other things at the same time. From our perspective, and as Jim alluded to in his answer to Ryan with regard to the casualty loss pick, we do look at this, and we do change it. We do tweak it, right? It's only a matter of time as we get the data, as we examine things, as things season, that you're gonna start to see that coming into the bottom line. I think that probably gives you also a more forward perspective and again, bring it back to the rate versus trend discussion. Okay. That's very helpful. Second unrelated question. When we're in an environment of at least, I think, broadly expected continued interest rate increases and your liability duration as you shift the mix towards casualty and also extending, when is the right time to really significantly increase your investment portfolio duration? Do you do it now? Do you wait for further interest rate increases? It's Mark, Meyer. I think as long as we're broadly within alignment of the asset and liability durations, we're in a good spot. I don't think there's a lot of benefit when you look at where the yield curve is right now in terms of the short end and the flatness of really going long. For us, it's really looking for kind of a mix of things. You're obviously looking, one, to match generally the duration between or the ALM matching in essence, two, yield, credit quality, the liquidity of the securities and the actual alpha you think you can capture in the securities that you're looking at, and specifically any specific asset classes. We look at it probably more granularly. I wouldn't get hung up on, for example, we got an asset duration of 3.1% this quarter and a liability of 4%. That yield curve is really not appealing to stretch it out for the extra basis points that we see. Okay, great. Thank you very much. Thanks, Meyer. There are no further questions at this time. I will turn the call back over to management for any closing comments. Great. Thank you for all your questions and, the excellent discussion. You know, I think as you can tell from our tone, we are optimistic about the opportunities before us. We definitely see a trajectory for continued growth and expanded profitability. We are continuing to build this company, accelerate the progress and create greater value for our investors, our clients in all of the markets that we serve. Thank you for your time with us today, and we look forward to seeing you at the next earnings call. This concludes today's conference call. You may now disconnect.