Earnings call transcript: Integrity’s Q2 2025 sees robust profit growth

Integrity (NASDAQ:INTG), a specialty insurance provider with a market capitalization of approximately $899 million, reported impressive financial results in its Q2 2025 earnings call, showcasing a significant increase in adjusted net income and growth in gross written premiums. Despite competitive pressures in the specialty insurance market, the company maintained strong performance metrics. The stock’s recent performance reflects a slight decline, closing at $19.09, down 2.15% from the previous session. According to InvestingPro data, the stock has declined over 24% in the past six months and is currently trading near its 52-week low of $18.50.

Key Takeaways

• Adjusted net income surged 365% year-over-year, reaching $17.9 million.
• Gross written premiums increased by 32%, with net written premiums up 38%.
• The combined ratio improved to 88.9%, indicating enhanced operational efficiency.
• The company expanded its distribution network by 150%.
• Integrity is focusing on automation and disciplined growth to maintain market share.

Company Performance

Integrity demonstrated robust performance in Q2 2025, driven by strategic expansions and operational efficiencies. The company expanded into new casualty verticals, contributing to nearly half of its casualty growth. Despite a softening property market, Integrity managed to achieve a 4% growth in property segments. The focus on technical underwriting and disciplined growth helped the company maintain its competitive edge.

Financial Highlights

• Revenue: Not disclosed in detail, but gross written premiums grew by 32%.
• Adjusted net income: $17.9 million, a 365% increase year-over-year.
• Combined ratio: Improved to 88.9% from 94%.
• Loss ratio: Reduced to 58%, down 2.8 points.
• Expense ratio: Decreased to 31%, down 2.2 points.

Outlook & Guidance

Integrity is targeting mid to high 20s growth in gross written premiums and expects to maintain a combined ratio in the low 90s. The company is also focusing on expanding its automation capabilities and pre-priced solutions to enhance efficiency. The casualty mix is projected to constitute 60-70% of the portfolio. Analysts tracked by InvestingPro maintain a positive outlook, with price targets ranging from $26 to $30, suggesting potential upside. The company’s next earnings report is scheduled for September 2, 2025.

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Executive Commentary

CEO Justin Cohen emphasized the company’s strategic focus, stating, "We are not top line focused. We really are focused on delivering alpha." He highlighted the company’s ability to find unique growth opportunities, saying, "We are finding unique situations and opportunities that are driving growth in excess of the market." Chris Shank, President and Chief Underwriting Officer, noted the company’s efficiency, stating, "We are achieving lower cost at each step from submission to bind."

Risks and Challenges

• Competitive pressures in the specialty insurance market could impact market share.
• The potential impact of tariffs on building materials could affect cost structures.
• Economic uncertainties may influence the demand for specialty insurance products.
• Technological advancements by competitors could challenge Integrity’s market position.
• Regulatory changes in the insurance industry may pose compliance challenges.

Q&A

During the earnings call, analysts inquired about the impact of tariffs on building materials, which the company acknowledged as a factor in raising severity assumptions for property. Questions also focused on growth drivers, with Integrity confirming that new initiatives are key contributors. The company also addressed competitive dynamics, emphasizing its ability to maintain market share through technical underwriting and disciplined growth.

Full transcript - Ategrity Specialty Holdings LLC (ASIC) Q2 2025:

Conference Call Operator: Good afternoon, everyone, and thank you for joining us today for Integrity’s Second Quarter Fiscal Year twenty twenty five Earnings Results Conference Call. Speaking today are Justin Cohen, Chief Executive Officer Chris Shank, President and Chief Underwriting Officer and Nilan Patel, Chief Financial Officer. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer session. Thank you.

Before we begin, I would like to mention that certain matters discussed in today’s conference call are forward looking statements relating to future events, management’s plans and objectives for the business and the future financial performance of the company that are subject to risks and uncertainties. Actual results could differ materially from those anticipated in these forward looking statements. The risk factors that may affect results are referred to in our press release issued today and our IPO prospectus filed with the SEC. We do not undertake any obligation to update these forward looking statements made today. Finally, the speakers may refer to certain adjusted or non GAAP financial measures on this call.

A reconciliation of the non GAAP financial measures to the most directly comparable GAAP measures is also available in our press release issued today. A copy of today’s press release may be obtained by visiting the Investor Relations page of the website at investors.integrity.com. I’ll now turn the call over to Justin Cohen.

Justin Cohen, Chief Executive Officer, Integrity: Great. Thank you, and good afternoon, everyone. As we kick off our first earnings call as a public company, I want to thank our new investors for their trust and support. We take very seriously our responsibility as stewards of your capital and we are committed to delivering world class returns over time. We’re excited today to share our results for the quarter and a view into where Integrity is headed going forward.

For those new to the story, let me give first a quick introduction. We are a specialty E and S company focused on ensuring small to medium sized businesses across The U. S. We’ve built a proprietary underwriting platform to penetrate this high volume market with consistency, speed and rigor. We’ve developed a competitive edge in how we segment, price and process risk and we deploy technology and analytics to stay ahead of the market.

We call this approach productionized underwriting and we believe it will enable us to grow profits and build market share in the E and S space. We saw evidence of that in this quarter as we produced adjusted net income of $17,900,000 a 365% increase over last year. Our gross written premiums outpaced the market growing 32% year over year and our focus on rigorous and efficient underwriting contributed to a record combined ratio of 88.9%. Our loss ratio was strong at 58% supported by solid loss performance in property and our expense ratio was 31% down 2.3 points year over year while we continue to drive efficiencies. These are balanced results that translated into a 14.5% adjusted ROE for the quarter.

Now we are certainly paying attention to the competitive pressures in E and S and we recognize that our reported growth this quarter bucks that trend. We are benefiting from our growth initiatives and distribution strength as well as some barriers to entry in the small and mid sized market. With that said, we think we will continue to see competition over time and we will also continue to win and gain market share. But you should know that we prioritize underwriting profits first and foremost. We will only grow the top line at a pace that allows us to deliver strong expected returns to our shareholders.

So with that, I’ll turn it over to Neelam Patel, Chief Financial Officer to walk through our financial results and then Chris Shank, our President and Chief Underwriting Officer will describe how we generated these outcomes. Neelam?

Nilan Patel, Chief Financial Officer, Integrity: Thank you, Justin. This was a strong quarter for Integrity. Adjusted net income came in at $17,900,000 up from $4,900,000 in the same quarter last year. These results were driven by solid top line growth, improving margins and higher investment income. I’ll take you through the main line items starting with premiums.

As already mentioned, our gross written premiums grew by 32% in the quarter. Net written premiums grew 38% driven by higher retention rate year over year. Net earned premiums grew at a 20% pace, reflecting the lagged recognition of quota share reinsurance we placed in 2024. As we move through the 2025, that headwind should gradually abate. Fee income was $1,500,000 versus $191,000 a year ago, reflecting increased policy fees.

Historically, we had an implemented standard market fees, which we began doing this year. Turning to underwriting. Our underwriting income in 2Q twenty twenty five was $9,600,000 up 119% year over year. This translates into a combined ratio of 88.9%, down from 94% due to reductions in both our loss and expense ratio. The loss ratio declined 2.8 points to 58% with strong results in our property business.

In 2Q twenty twenty five, we had no prior year development compared to 3.5 points in 2Q twenty twenty four that were related to a change in how we result for legal expenses. Cat losses represented 4.1% of net earned premiums this quarter, down from 8.8% last year, which had a very active tornado season. Our expense ratio declined 2.2 points to 31%, mainly due to lower policy acquisition costs. Policy acquisition costs as a percentage of net earned premiums declined to 18.5% from 21.1%, thanks to higher ceding commissions and a more favorable business mix. On expenses, operating expenses as a percentage of net earned premiums was 12.4%, up marginally from last year, but roughly flat compared to 2025.

The year over year increase reflects the front loaded investments we made in 2024 to support growth and transition to becoming a public company. Moving on to investment results. Net investment income was $11,900,000 in the second quarter, driven primarily by increased assets from our recent IPO and higher yields on our fixed income portfolio. Meanwhile, realized and unrealized gains contributed another 1,400,000.0 Our effective tax rate for the quarter was 21.1%. That brings us to net income of $17,600,000 Adjusted net income, which adds back IPO related compensation costs, was $17,900,000 or $0.41 per diluted share.

Turning briefly to the balance sheet. Our investments grew from year end by 180,000,000 to $955,000,000 which reflects $122,000,000 of net IPO proceeds with the remainder coming in from operating cash flow. Book value increased by $161,000,000 with $115,000,000 being attributable to the IPO and that’s driven by retained earnings and a modest move up in AOCI. The quarter ended with book value per share of $11.64 With that, I will hand it over to Chris to talk about our underwriting and operating performance.

Chris Shank, President and Chief Underwriting Officer, Integrity: Thanks, Neelam. This quarter, we executed our underwriting playbook with Fidelity. We delivered 32% gross written premium growth and a sub-ninety combined ratio. Let me walk you through how we did that. To start, submission volume grew significantly, well in excess of our top line.

The volume came from three sources: activation of new partners, launch of our new verticals and products and increased penetration from our Midwest strategy. As submission volume grew, we maintained a conservative underwriting posture and we deployed capacity with discipline. As a reminder, we operate within a technical and quantitative underwriting framework. And as such, we were able to achieve firm wide renewal rate increases in the high single digits with new business rate levels well above technical targets. Our quote to bind ratio on middle market business was in the high single digits.

This is in line with plan. It is deliberately set low because of our selective risk taking approach. On the expense side, our service delivery center absorbed higher volumes with only marginal increases in headcount. We continued to deploy automation to reduce manual work, and there was more utilization of our pre priced and auto quote solutions. This combination of factors lowered our unit costs and as expected our model is delivering economies of scale while enhancing underwriting quality.

A big part of what’s powering our submission growth is our expanding distribution network. Since mid-twenty twenty two, we have invested toward market access for emerging growth opportunities. This has resulted in 150 increase in unique distribution relationships with submissions growing at a much faster pace. Our earlier cohorts are ramping up across multiple products now, and we are seeing faster and deeper engagement from our recent appointments. We believe our value proposition built around a clearly articulated appetite, fast quote delivery and a hassle free digital transaction process is resonating with all of our partners.

In short, our growth was a function of an expanding distribution funnel. Our combined ratio results resulted from maintaining underwriting discipline and improving operational efficiency. These two pieces were mutually reinforcing. We are achieving lower cost at each step from submission to bind. This offsets cost of a lower quote to bind ratio, which in turn empowers us to adhere to technical rates, maintain discipline and avoid appetite creep.

With that, I’d like you to take a look at I want to take a look at with that, let’s take a look at our performance by casualty and property, which had very different growth dynamics this quarter. Starting with Casualty, we produced 57% growth in gross written premium in Casualty. Growth was driven by a combination of new initiatives as well as continued strength in our core segments. First, we expanded into new verticals in casualty, most notably retail trades launched in Q1 in our brokerage channel. This is now fully operational and scaling.

We also saw strong momentum in our professional liability verticals. These new products launched in January reached full operating potential in Q2. This line contributed to the growth and that is reflected in our professional services vertical. Second, we advanced our geographic expansion strategy through Project Heartland. As a reminder, Project Heartland is an initiative designed to win targeted business across 30 urban Midwest markets built on deeply researched underwriting plans, local partnership and tailored offering for the region.

Project Heartland contributed meaningfully to Q2 growth. Altogether, retail, professional liability, Heartland and a handful of other initiatives accounted for nearly half of the total casualty growth this quarter. We also track

Conference Call Operator: performed

Chris Shank, President and Chief Underwriting Officer, Integrity: or better in our established verticals like hospitality, day care and residential real estate. In casualty, renewal rate change was in line with our targets and well above trend, and we saw new business rates well above technical levels. It is critical for our investors to understand that we believe we hold a clear technical and strategic advantage. We are going deeper into each of our segments and finding insights that is allowing us to capitalize on emerging opportunities well before our peers see them. As a result, we are leaning in as our competitors are pulling back from key casualty classes.

Moving on to property. Despite contraction in the E and S sector, we grew property gross premiums by 4%. While there’s talk of a softening market in property, we are only seeing modest pressure in the small and midsized space. Competition is still rational and far less severe than the large ticket property than large ticket property. Our 4% growth reflected proactive rate actions implemented in Q3 last year.

We held firm on substantive rate increases, pricing above technical levels and we granted flat or down renewals only when justified by performance and exposure stability. We priced prospectively with an 18 view on frequency and severity trends. And accordingly, we have raised our severity assumptions to reflect the pending impact of tariffs on building material and labor costs. These factors influence overall replacement costs for property. Here again, we’re doing something different, deep analysis, finding insights and taking early action to protect our economics.

Believe we are leading proactively while rather than waiting to react to that outcome. We’ve made a deliberate trade off accordingly, we’ve made a deliberate trade off prioritizing price over volume in property, and this is consistent with our forward view of loss cost. We also managed our property footprint. We also took action to manage carefully manage our property footprint in cat prone geographies, increasing raising rates to cat reinsurance costs. We expect these benefits to we expect to see these benefits in lower than anticipated cost even though in the short term it has led to some it has led to growth installed growth in some areas.

Finally, Project Heartland meaningfully contributed to our results. In the Midwest, we achieved accelerated market penetration, writing profitable business, optimizing our geographic spread and reducing reliance on large E and S states. To wrap it up, this was a high quality underwriting quarter marked by disciplined growth, strong pricing and continued efficiency gains. We are scaling deliberately while maintaining technical standards and control. This is the impact of the productionized underwriting model we have built and we believe it positions us for consistent results going forward.

Back to Justin.

Justin Cohen, Chief Executive Officer, Integrity: Thanks Chris. This was a solid quarter for Integrity. Profitable growth, disciplined underwriting and clear progress on our strategic objectives. As we look ahead into the 2025, our expectations are consistent with what we shared with you during the IPO process. A mid to high 20s growth rate year over year in gross written premiums and a combined ratio in the low 90s.

That outcome assumes competitive dynamics stay consistent with what we’ve experienced to date. But even if competition intensifies beyond our expectations, we expect to continue taking share in the market. Meanwhile, behind the scenes, we are advancing our next phase of productionized underwriting. We’re developing automation and pre priced solutions that we believe will solidify our position in the market. We will share more with you on that as we move closer to deployment.

For now, we thank you again for your support and for spending time with us today and we look forward to updating you on our progress in the quarters ahead. And with that, Eric, you can please open it up for Q and A.

Conference Call Operator: Your first question comes from the line of Alex Scott with Barclays. Please go ahead.

Alex Scott, Analyst, Barclays: Hi, thanks for taking the question. One I wanted to ask you is on the, I guess, the mix shift towards casualty. If I look at the mix year over year, it is a pretty meaningful change. So I just wanted to understand, is that changing at all like the duration of the liabilities and just the way you have to think about the tail on the loss reserves?

Justin Cohen, Chief Executive Officer, Integrity: Yes. These actions of having more casualty business is extending the tail of the liabilities. Just in terms of to make sure that we understand the drivers, the drivers is excellent performance in our casualty business. And as Chris was talking about, we did raise rates in the third quarter of last year and that decelerated growth this year. So that’s what’s driving that mix shift, but we are very comfortable with it.

And our overall targets of casualty within the sixty percent to seventy percent range is on a clear path now.

Alex Scott, Analyst, Barclays: Got it. That’s helpful. And then can you provide us a little more color on just the update on Project Heartland? How many distributors you’re adding? How far along in that process?

How much more growth is there to come from those initiatives?

Justin Cohen, Chief Executive Officer, Integrity: Yes. And this project is really just getting going. And Chris, you want

Alex Scott, Analyst, Barclays: to give some details? Yes.

Chris Shank, President and Chief Underwriting Officer, Integrity: It is. We are just starting to see the dividends from the investment last year come through. We have activated more than three dozen partners, and some most of them are just starting to come online in terms of production. So there’s a it’s just the beginning. There’s a huge runway.

Alex Scott, Analyst, Barclays: Got it. Thank you.

Chris Shank, President and Chief Underwriting Officer, Integrity: Thanks Alex.

Conference Call Operator: The next question comes from the line of Andrew Kligerman with TD. Please go ahead.

Andrew Kligerman, Analyst, TD: Hey, thanks a lot. I apologize if I go over something. I had a little technical difficulty. But just getting a sense on the property component growing 3.7%. Could you clarify how much pricing was down, if at all?

And then how much of that kind of lower premium level was due to you more effectively managing your PMLs for catastrophe exposures?

Justin Cohen, Chief Executive Officer, Integrity: Yes. We actually achieved meaningful rate increases in property.

Pablo Sinzon, Analyst, JPMorgan: I’ll pass

Justin Cohen, Chief Executive Officer, Integrity: it over to Chris to talk about that.

Chris Shank, President and Chief Underwriting Officer, Integrity: So our property rate increases were in the low teens. It is we stay firm on rates. We were targeting a higher number, but we made concessions to protect our renewal base. That was prudent. And on new business, we held firm.

We are seeing attractive rating opportunities, not just from the new Midwest business coming in, but elsewhere around the country. We generally, most of our peers are concentrating on the big E and S states. The opportunities elsewhere seems to be somewhat unaffected. Beyond just the geography, there is also the size element. Smaller business, it tends to be a lot more sticky.

There’s less of a desire to dislocate those accounts. And part of our philosophy of pricing the account right in year one so that we can maintain maintain it for for around a lifetime around three years. Part of that involves pricing, you know, discipline upfront and making sure that we make the process simple downstream. So by making the process simple, it somewhat insulates you from the rate change dynamics.

Justin Cohen, Chief Executive Officer, Integrity: If we hadn’t taken our view on tariffs, which we did, we could have grown more meaningfully in that area. And then there were certain geographic zones, coastal zones, coastal states, I should say, where we did reduce exposure and that will that did drive down policy count, but it will improve our cat XOL costs.

Andrew Kligerman, Analyst, TD: Thank you for that. And Justin, you just mentioned tariffs. How are you thinking about the impact now that it looks like we’ve gotten a little more clarity there?

Justin Cohen, Chief Executive Officer, Integrity: Yes. We are anticipating that the inflationary environment still does come through on building costs and we’ve done the analytics to do that. If we were to find out that we were ahead of the curve and it didn’t the tariffs didn’t have as much of a bite, that would be a bigger opportunity for us given that we’ve priced for it.

Chris Shank, President and Chief Underwriting Officer, Integrity: Yes. So we are anticipating around mid single digits increases due to tariffs cost. That’s a combination of building material as well as labor sort of dynamics. But purely just

Justin Cohen, Chief Executive Officer, Integrity: if you were

Chris Shank, President and Chief Underwriting Officer, Integrity: to isolate building materials, that tends to be very sensitive to even the threat of tariffs. And majority of a lot of buildings in the E and S space tend to be frame half frame buildings. Right? So we’re talking about lumber prices and just even, you know, relations with Canada can affect that. It’s very, you know, there’s there’s a reality of tariffs, and then there’s the threat of tariffs and what that does in the short term.

Andrew Kligerman, Analyst, TD: So maybe if I could sneak a last one in. Does 2Q kind of feel like kind of a snapshot of what we may see in the next quarter or two in terms of premium growth? I mean, I know casualty is super robust and you seem a bit more cautious on the property, but are these numbers that might be in the ballpark for the upcoming quarters?

Justin Cohen, Chief Executive Officer, Integrity: Yes, Andrew, at the end of those prepared remarks, we gave a confirmation of what we had previously talked about, which was mid- to high 20s growth for 2H. So that gives you a sense of what we’re expecting. And we also said that, that assumes that we are we do not see a change in the competitive intensity in the environment that it remains what we are seeing today, which is modest. It’s different in the small and medium sized space, but that’s the premise there. So that is the outlook that we confirmed.

Conference Call Operator: That makes a lot of sense. I’m sorry, had a little technical difficulty at the beginning. Yes.

Justin Cohen, Chief Executive Officer, Integrity: And overall, we’re just to say that we are not as I said in the beginning of the remarks, we are not top line focused. We really are focused on delivering alpha. You’ve heard that in the way that we’ve done that throughout this call. We are finding unique situations and opportunities that are driving growth in excess of the market, but they are not based on the beta of the market growth. So that’s really what we’re focused on and that’s what we’re endeavoring to deliver.

Andrew Kligerman, Analyst, TD: Thank you.

Justin Cohen, Chief Executive Officer, Integrity: Thanks, Andrew.

Conference Call Operator: Your next question comes from the line of Pablo Sinzon with JPMorgan. Please go ahead.

Pablo Sinzon, Analyst, JPMorgan: Hi, thank you. So from my seat, it’s always hard to parse the drivers of growth for companies such as yourself, right? You’re growing fast pursuing a bunch of initiatives. I realize this might be an unfair question, but I was wondering if you could provide some perspective on some metric for same store sales growth, right, whether it’s growth from existing agencies without considering recent additions or maybe freezing verticals or products. Just sort some sense of what growth is coming from what’s already in the book versus what you’re actively pursuing quarter to quarter.

Justin Cohen, Chief Executive Officer, Integrity: Yes. One of the things that we that was mentioned in the call, but just to reiterate here, is that almost half of our growth came from the new initiatives. And so if you back that out, you get a sense of what the same store looks like. But we are seeing compounding of our existing cohort the older the more recent and the older cohorts of brokers and agents.

Alex Scott, Analyst, Barclays: Chris, do

Justin Cohen, Chief Executive Officer, Integrity: want to add anything to that?

Chris Shank, President and Chief Underwriting Officer, Integrity: Yes. It is hard to fully dissect it because initiatives overlap. So for example, in Heartland in the Midwest, as part of Project Heartland, we are gaining significant market share in our legacy verticals. So those are residential real estate, restaurants and hotel motels. Those we have written those for a very long time, and we’re gaining a lot of traction in the heart, and our offering there is strong just because it’s much more mature.

Similarly, however, we are also seeing more we’re gaining much more market share across other geographies. In the Northwest, for example, we have seen significant growth in those classes, in our core classes.

Pablo Sinzon, Analyst, JPMorgan: Thank you. And then second question, as you think about the current economic environment and perhaps some more permanent impact from tariffs, which of your small business end markets are you most concerned about? And if the economy does slow, what kind of impact are you expecting on your growth trajectory? You talked about the inflation piece, but from an economic fundamental perspective, are you assuming some headwinds there?

Chris Shank, President and Chief Underwriting Officer, Integrity: So just to add some context around it, we are continuously studying the environment and observing new trends that are emerging. We’re monitoring a number of trends. So it is a whether or not what is it that whatever we react to might be a very contained few things, but we have had to take action on something similar to tariffs, tariffs such as inflation in 2022. What we experienced there is initially we took the same we did the same executed the same playbook. We saw that severities were going to increase.

We priced on a prospective basis. So we’re looking eighteen months out expecting higher severities. We implemented rate increases that were meaningful. Now what happens is initially the market doesn’t fully understand why we’re an outlier. We are willing to be an outlier in that case, But the market contemplates it for a while, and then eventually our competitors catches back up catches up to us, and they push their rate increases.

So we and what we experienced there is the market comes back to us in droves. It’s a we’ve had a few cycles like that, so that’s what we are expecting here.

Justin Cohen, Chief Executive Officer, Integrity: Yes. And in terms of the defensiveness of our portfolio, we may have talked about that in the past. We have a fairly defensive set of industries that we focus on, multifamily, the non profits and certain others as well. Gas stations and grocery stores, the ones that would have an impact would be potentially contractors where there are but the contractors we focus on are of a smaller scale and less economically sensitive and then hospitality. Those would be the areas if there were to be an economic shift.

Thank

Alex Scott, Analyst, Barclays: you both.

Justin Cohen, Chief Executive Officer, Integrity: Thank you.

Conference Call Operator: Your last question comes from the line of Elyse Greenspan with Wells Fargo. Please go ahead.

Elyse Greenspan, Analyst, Wells Fargo: Hi, thanks. Good evening. My first question on the 20%, sorry mid to high 20s growth rate that you highlighted for the second half of the year reaffirming your outlook. What’s embedded within that for property versus casualty growth?

Justin Cohen, Chief Executive Officer, Integrity: We have Elyse, we have not broken that down in terms of the guidance. But what we’ll say is that we are somewhat optimistic on the property book in that we applied our rate increases in 3Q of last year, that was opportunistic in nature. And what happened this year was we maintained those rate increases because of our view on tariffs. And so as we get towards the back end of this year, there’s some potential for those for us to not be changing rates on our on those accounts. And therefore, we may see some potential additional benefit there.

But we’re not breaking down the projected growth by product yet.

Elyse Greenspan, Analyst, Wells Fargo: And then as part of the guide Justin you said just that it’s based on consistent competitive dynamics. Have you guys did you guys see any pricing changes in July relative to what you saw observed in the Q2 in either property or casualty lines?

Justin Cohen, Chief Executive Officer, Integrity: No, it’s been consistently marginally tightening pressure, but nothing material to talk about. So there’s nothing embedded within that other than to say that we can’t predict where we’re not in the business of predicting the beta of this market. Competitors will do what they’re going to do. We are we’re trying to lay out that we have these initiatives and these approaches that we take that are truly differentiated. So even in a tougher market, we’re going to still keep winning.

And so that’s really where we want to focus. We know the top line is strong and we’re just caveating with all that.

Chris Shank, President and Chief Underwriting Officer, Integrity: More generally, our peers, there’s chatter, there’s discussions around that, but we’re not necessarily focused in the same geographies. They are that is coming out of the three big E and S states, a lot of the top of our own property. So in a way, we are where we are going is fairly overlooked by the market and opportunities there are still great.

Justin Cohen, Chief Executive Officer, Integrity: Yes. And overall, as you know, we’re technical underwriting firms, so we have a technical rate and we are not going to go below that. So that is also important to keep in mind.

Elyse Greenspan, Analyst, Wells Fargo: And then one last one. I think the paid to incurred ratio did go up in the quarter. Was there something related to business mix or something else that impacted that in the second quarter?

Justin Cohen, Chief Executive Officer, Integrity: Are you talking sequentially or year over year?

Elyse Greenspan, Analyst, Wells Fargo: I think it went up both. So any color you could provide would be helpful.

Justin Cohen, Chief Executive Officer, Integrity: Overall, the paid to encourage were actually lower than our internal expectations. And on a year over year basis, it’s partly due to just the maturation of a casualty book. And also there is, as you’re describing, there is some shift in the having had more property previously. We were growing property pretty quickly previously. And so that may be contributing to the higher that we’re seeing today.

But now you’ll see that transition going forward as you’re seeing this deceleration in property going forward. So a little bit of mix, but more just the casualty reserves, which we have been accelerating higher because of our growth rate just starting to pay.

Elyse Greenspan, Analyst, Wells Fargo: Thank you. Great.

Conference Call Operator: There are no further questions at this time. I would now like to turn the call back over to management for closing remarks.

Justin Cohen, Chief Executive Officer, Integrity: Well, thank you all very much. We appreciate your support again, and we look forward to being in touch with you in the months and quarters ahead. Thank you very much.

Conference Call Operator: Ladies and gentlemen, this concludes today’s call. Thank you all for joining, and you may now disconnect.

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