WEBVTT - Tesla, Enbridge, Wall Street, and ETFs (Podcast) 0:00:00.160 --> 0:00:03.400 Let's go to Welcome to the Bloomberg Markets podcast sweet 0:00:03.520 --> 0:00:09.120 alongside every business day we bring you interview CEO, market 0:00:09.200 --> 0:00:14.840 crows and Bloomberg experts, along with the Springwhelming the Bloomberg 0:00:14.880 --> 0:00:18.600 MarketCast podcast or wherever you listen to podcast and at 0:00:18.600 --> 0:00:22.320 Bloomberg dot com Splash podcast. Very positive and very right 0:00:22.400 --> 0:00:25.160 on this story since day one. He's viewed it as 0:00:25.200 --> 0:00:27.560 a tech story, not a metal bending story per se, 0:00:27.560 --> 0:00:30.200 and he's been absolutely right. Dan, what was your takeaway 0:00:30.240 --> 0:00:34.920 from your time down in Austin. Look, I think Paul, 0:00:35.000 --> 0:00:37.960 with these as well as Apple events, I think investors 0:00:38.000 --> 0:00:40.440 always want more meat on the boat. You know, obviously 0:00:41.159 --> 0:00:44.520 they lead the groundwork for what I've used a flex 0:00:44.600 --> 0:00:48.800 to muscles type of event from a scale and scoope 0:00:48.920 --> 0:00:51.159 in terms of what they're doing on evs. But you 0:00:51.159 --> 0:00:54.240 didn't have a sub thirty k vehicle introduced. I think 0:00:54.360 --> 0:00:56.720 that's still to come, but I think they read the 0:00:56.720 --> 0:00:59.480 groundwork for it. Stock was so off knee jerk and 0:00:59.600 --> 0:01:03.280 now becomes a sort of what's the next step on 0:01:03.320 --> 0:01:08.520 this roadmap? I mean, Dan, you know that I feel 0:01:08.520 --> 0:01:12.280 like their design and vehicles are just too long in 0:01:12.280 --> 0:01:15.000 the tooth. I mean they Matt Winkler has had his 0:01:15.040 --> 0:01:18.520 models for more than a decade, wow, which says a 0:01:18.600 --> 0:01:22.200 lot about the quality of the vehicles, and I'm not 0:01:22.280 --> 0:01:26.959 debating that, but it's just tired and they all look 0:01:26.959 --> 0:01:30.200 alike except for the cyber truck, which is I guess what, 0:01:30.400 --> 0:01:34.959 three years late now. So at what point does Elon 0:01:35.040 --> 0:01:39.360 Musk stop fooling around with Twitter and start like working 0:01:39.400 --> 0:01:45.000 on progress at his car company. Look, I think you 0:01:45.319 --> 0:01:48.560 hit the nail on the head relative to competition increasing, 0:01:49.400 --> 0:01:51.920 and you won't how sort of come out with more models. 0:01:52.200 --> 0:01:55.080 I think they've the first time admitted they're going to 0:01:55.160 --> 0:01:59.480 need basically ten models for the long term, and now 0:01:59.480 --> 0:02:01.720 it's about when do they come out? What do they 0:02:01.760 --> 0:02:05.080 look like? Look, I personally believe, based on our work, 0:02:05.200 --> 0:02:07.440 sub thirty k is going to be the key from 0:02:07.440 --> 0:02:11.320 a cheaper vehicle as well as an suv like Tessler. 0:02:11.400 --> 0:02:15.320 I think that's really from a mass market, which streets 0:02:15.360 --> 0:02:18.720 open to focus on and clearly, look cybertruck. A year 0:02:18.720 --> 0:02:21.280 from now you'll see cybertrucks around and that I mean 0:02:21.440 --> 0:02:24.799 there was Deliveries should be by your early next year, 0:02:25.400 --> 0:02:27.440 but that's not going to move the needle from a 0:02:27.560 --> 0:02:30.880 mass perspective, and that's why this is so important. From 0:02:30.960 --> 0:02:33.600 sub thirty K, Well, they just need to look since 0:02:33.760 --> 0:02:36.839 the model S was introduced, the nine to eleven has 0:02:36.840 --> 0:02:41.959 had four model changes, okay, and today's models doesn't look 0:02:42.040 --> 0:02:45.079 any different than it did ten years ago. It still 0:02:45.120 --> 0:02:47.799 looks great. I think, if you I'm going to carve 0:02:47.919 --> 0:02:49.880 myself never that into it. But I just feel like 0:02:50.000 --> 0:02:53.480 they need to. You know, if Mercedes or if BMW 0:02:54.120 --> 0:02:58.040 hadn't changed their design language in over a decade, it 0:02:58.080 --> 0:03:00.359 would be a real problem. Why is it okay for 0:03:00.440 --> 0:03:03.760 this company? I think it's because when you think an 0:03:03.800 --> 0:03:07.040 electric vehicles right now, it's still Tesla's world. Everyone else 0:03:07.120 --> 0:03:10.320 paid in terms of the EV space. They know there's 0:03:10.320 --> 0:03:15.320 an opportunity let's call it three million vehicles in terms 0:03:15.360 --> 0:03:19.120 of how they get they just hit there four millions 0:03:19.160 --> 0:03:22.560 in terms of deliveries. So they've really obviously crushed in 0:03:22.720 --> 0:03:25.960 terms of this initial sort of you know, growth area. 0:03:26.080 --> 0:03:28.360 But now it's the next phase of the growth story, 0:03:28.440 --> 0:03:32.120 and I think it's all about costs. It's all about efficiencies. 0:03:32.520 --> 0:03:35.400 They can lower by forty fifty percent in terms of 0:03:35.480 --> 0:03:37.560 what they're talking about. Then all of a sudden, you 0:03:37.640 --> 0:03:42.440 start to have a twenty twenty eight k Tessla out there. Hey, Dan, 0:03:42.600 --> 0:03:43.960 you know, one of the most read stories on the 0:03:44.040 --> 0:03:46.480 terminal today is about Elon mush not surprisingly, but it's 0:03:46.480 --> 0:03:48.960 about his use of his private plane and he's flown 0:03:49.160 --> 0:03:52.760 the most among some of the richest billionaires AND's and 0:03:52.840 --> 0:03:54.720 it's really spiked up after he bought Twitter. But it 0:03:54.840 --> 0:03:57.000 just goes to the point he's got so many different 0:03:57.040 --> 0:04:00.320 companies in so many different businesses and I'm wondering in 0:04:00.440 --> 0:04:03.000 Austin at the investor date to what extent was that 0:04:03.160 --> 0:04:06.720 brought up or addressed by him or by investors that Hey, Elon, 0:04:06.800 --> 0:04:08.800 can you focus on where the real money is, which 0:04:08.880 --> 0:04:13.640 is Tesla. Look, I think there's definitely questions around that 0:04:14.000 --> 0:04:17.720 and nothing on Twitter. I think that's something that started 0:04:17.760 --> 0:04:20.880 to go more into the background. But you're starting to 0:04:20.960 --> 0:04:23.960 see more, you know what I'd say, Ben Strength, you know, 0:04:24.320 --> 0:04:26.600 Tom Zoo and two Mothers are starting to come up 0:04:26.960 --> 0:04:30.640 in terms of the TESTA organization. I believe he's been 0:04:30.680 --> 0:04:34.200 able to balance it well, but no doubt you're starting 0:04:34.279 --> 0:04:36.480 to see, you know, a must ask pay more and 0:04:36.560 --> 0:04:39.840 more attention to some of these next steps with Tessa 0:04:40.160 --> 0:04:43.840 with SpaceX, and I think that continues to be a 0:04:44.000 --> 0:04:47.960 source subject for investors for you know what I've used 0:04:47.960 --> 0:04:51.280 probably with the most fouled individual in the world. What 0:04:51.360 --> 0:04:54.600 do you think about I saw a Lucid on the 0:04:54.680 --> 0:04:58.160 road yesterday. Barely see any of those. I saw Rivian 0:04:58.720 --> 0:05:01.960 parked by the scars Dale train station. They look sweet, 0:05:02.080 --> 0:05:05.000 but they're really disappointing in terms of their ability to 0:05:05.080 --> 0:05:08.960 ramp up production. Faraday whatever it's called. I still have 0:05:09.120 --> 0:05:12.320 never seen one of those Pollstar, Yeah, Pollstar, but that's 0:05:12.400 --> 0:05:14.480 Volvo right, So okay, I mean, what do you think 0:05:14.520 --> 0:05:17.520 about these electric vehicle startups that we all had such 0:05:17.600 --> 0:05:19.520 high hopes for it and everybody bet up the stock 0:05:19.560 --> 0:05:23.600 initially and now have just been in disappointment after disappointment. 0:05:23.640 --> 0:05:26.840 Are they going to come back? Are they going to survive? Look? 0:05:26.880 --> 0:05:29.520 I think it's a great comparison what we saw yesterday. 0:05:29.600 --> 0:05:32.440 I mean, Tessa flexes the muscles has the scale. You're 0:05:32.440 --> 0:05:35.280 going to see GM doing the same thing coming at 0:05:35.360 --> 0:05:37.840 the three one through Ari quoter on what's forward. But 0:05:38.040 --> 0:05:42.680 these startups, it is so difficult to scale and so expensive, 0:05:42.880 --> 0:05:46.160 and in a risingry environment that's tougher and tougher, so 0:05:46.240 --> 0:05:48.800 we're going to survive. Some are not. And I think 0:05:48.800 --> 0:05:51.719 it also just shows the dog ain't the homework excuse 0:05:51.880 --> 0:05:55.440 like we've seen Rithian others. It just doesn't work in 0:05:55.520 --> 0:06:00.120 this market where the dream quoter unquotter story stocks are 0:06:00.200 --> 0:06:02.680 no longer. I thought r J. Scaringe was gonna kill it. 0:06:02.800 --> 0:06:04.839 He took like a decade to bring out the truck, 0:06:05.720 --> 0:06:09.240 and now, I mean, fifty thousand is all they're gonna 0:06:09.279 --> 0:06:11.560 make in twenty twenty three. If I ordered one of 0:06:11.560 --> 0:06:13.400 those and I'm on a two year waiting list that 0:06:13.520 --> 0:06:15.840 just went to three years, I'm gonna be super disappointed. 0:06:16.480 --> 0:06:19.280 I mean, it has been up there from a disappointment 0:06:19.400 --> 0:06:21.440 with riving and trooms out of gate given r J 0:06:21.680 --> 0:06:24.480 and you know everything we saw from him pre IPO 0:06:25.320 --> 0:06:28.000 up there with you know, maybe Zach Wilson and some 0:06:28.200 --> 0:06:31.920 other disappointments, it's been very, very frustrating for industris. Hey, Dan, 0:06:32.000 --> 0:06:35.039 just real quick, thirty seconds your time in Austin. What's 0:06:35.040 --> 0:06:38.840 the number one question you heard from institutional investors? Well, 0:06:38.839 --> 0:06:44.040 I think today the big focus is, Okay, what does 0:06:44.240 --> 0:06:48.080 ultimately the timeline look like to get efficiencies down? And 0:06:48.440 --> 0:06:51.640 is the China growth story, continuing to ram push price cuts. 0:06:51.760 --> 0:06:55.239 Everyone's focused on price cuts in China. What the demand 0:06:55.320 --> 0:06:58.840 story looks like. We continue believe that that's robust. But again, 0:06:59.160 --> 0:07:03.000 haters continue the heat on task with that good stuff. 0:07:03.000 --> 0:07:04.919 All right, Dan Ives, thanks so much for joining us. 0:07:04.960 --> 0:07:09.040 Appreciate getting your perspective as always on Tesla and on 0:07:09.240 --> 0:07:12.320 all things technology. Again, Tesla stock off about five percent 0:07:12.440 --> 0:07:14.840 here to a little bit disappointing as you read some 0:07:14.920 --> 0:07:16.520 of the research and some of the reporting, just that 0:07:16.600 --> 0:07:19.480 there wasn't more color as Dan was suggesting on some 0:07:19.600 --> 0:07:23.200 of the newer models that just kind of more to come. 0:07:23.560 --> 0:07:25.440 So you kind of have to just kind of believe 0:07:25.480 --> 0:07:28.000 in Elon and that's been the story for a long 0:07:28.080 --> 0:07:33.400 period of time. Dan I has from web Bush. Let's 0:07:33.440 --> 0:07:37.080 get to our c suite conversation. We're talking insurance, Juan Andre, 0:07:37.360 --> 0:07:40.120 is that that thing to do? That? Right? Thank you? 0:07:40.160 --> 0:07:42.760 We want to draw a CEO of Everest. There's an end. 0:07:44.000 --> 0:07:46.160 There's not on my list my sheet. It's just because 0:07:49.440 --> 0:07:52.320 thank you. Okay. The most important thing the names I 0:07:52.440 --> 0:07:54.600 care about the New York stock chame symbol stock symbol 0:07:54.800 --> 0:07:57.480 R E go. We'll get you there. And this is 0:07:57.480 --> 0:07:59.480 a stock that's done really well. So we want to 0:07:59.480 --> 0:08:02.680 talk to one on here. He's also what a name, Yeah, 0:08:04.440 --> 0:08:05.960 got out to you all right, So this is an 0:08:06.000 --> 0:08:08.600 insurance company. Tell us about Everst, tell us about what 0:08:08.840 --> 0:08:10.280 you do, and then we'll get into some of the 0:08:10.800 --> 0:08:12.640 you know, the growth drivers. The challenge is that type 0:08:12.640 --> 0:08:15.480 of thing. Yeah, No, absolutely, Paul, pleasure to be here. Look, 0:08:15.560 --> 0:08:18.000 Everest is what we call a hybrid company. We have 0:08:18.160 --> 0:08:22.080 both reinsurance business and an insurance business. You know, we 0:08:22.240 --> 0:08:24.360 trade in the New York Stock Exchange, part of the 0:08:24.480 --> 0:08:28.120 SMP five hundred, and we have done exceedingly well over 0:08:28.160 --> 0:08:29.840 the last few years. As a matter of fact, I've 0:08:29.880 --> 0:08:33.480 been the CEO since January first of twenty twenty, and 0:08:33.640 --> 0:08:36.719 we've grown the reinsurance business about fifty five percent in 0:08:36.800 --> 0:08:39.920 that period of time. January first, twenty twenty. Time to 0:08:40.000 --> 0:08:43.040 take over a Yeah, it's a wonderful time. You must 0:08:43.040 --> 0:08:45.400 have taken off your tie and marchin, unbutton your top 0:08:45.760 --> 0:08:48.320 like I need to breathe a little bit. Yeah, Well, 0:08:48.440 --> 0:08:50.640 realistically I was only out of the office for a 0:08:50.720 --> 0:08:52.439 couple of months and then I was back all in. 0:08:52.679 --> 0:08:54.800 But it goes back to the story, right, because I 0:08:54.880 --> 0:08:57.000 think we've done a very nice job managing the company 0:08:57.040 --> 0:08:59.000 through all of these challenges. And you know, to what 0:08:59.080 --> 0:09:01.200 I was saying, it's not only the growth of fifty 0:09:01.280 --> 0:09:03.600 six in our reinsurance business over that period of time 0:09:03.880 --> 0:09:06.760 over sixty in our primary business, but the stock price 0:09:06.840 --> 0:09:09.439 has gone up about forty percent since I started in 0:09:09.520 --> 0:09:12.440 twenty twenty, so the company has done well. So yeah, 0:09:12.480 --> 0:09:14.360 I mean I usually look at a comp screen, as 0:09:14.400 --> 0:09:17.880 our listeners know, to see how you've done over a 0:09:18.000 --> 0:09:22.439 five year period. You've outperformed over that period, but I'll 0:09:22.480 --> 0:09:26.480 put in you know, your starting date still massively outperformed 0:09:26.520 --> 0:09:28.760 not only the S and P five hundred, but also 0:09:29.000 --> 0:09:31.760 the financial sector. Why do you think it is that 0:09:31.840 --> 0:09:35.520 you're doing so much better than the benchmarks? Yeah, No, Look, 0:09:35.559 --> 0:09:37.320 I think it's a few things. Number One, I think 0:09:37.360 --> 0:09:39.360 we've got a world class team. We've put together a 0:09:39.520 --> 0:09:42.800 very clear strategy, and we have been relentless about executing 0:09:42.840 --> 0:09:44.719 against that strategy. So I think those are sort of 0:09:44.720 --> 0:09:47.040 the key elements that we have. In addition to that, 0:09:47.160 --> 0:09:49.200 we've also had a good market, you know, and that's 0:09:49.320 --> 0:09:51.720 one of the things that it's important to talk about today. 0:09:52.200 --> 0:09:55.319 It's the fact that in the reinsurance market particularly, we 0:09:55.480 --> 0:09:58.559 have a one in a generation type opportunity. There's a 0:09:58.679 --> 0:10:01.679 secular supply and demand to balance that's taking place right now, 0:10:02.000 --> 0:10:04.719 and we're uniquely positioned to take advantage of that. And 0:10:04.800 --> 0:10:06.600 so all of that together, I think, is what's led 0:10:06.640 --> 0:10:09.600 to that outperformance. We're making a big deal on Bloomberg 0:10:09.600 --> 0:10:11.880 Gradi on television today about the rise in interest rates, 0:10:11.960 --> 0:10:15.199 the ten year Treasury now above four percent. How does 0:10:15.240 --> 0:10:18.319 that impact your business a rising interest rate environment? Yeah, 0:10:18.320 --> 0:10:22.280 absolutely so. By definition, because we're a reinsurance insurance company, 0:10:22.360 --> 0:10:25.840 we tend to invest in very conservative investments, mostly fixed income, 0:10:26.160 --> 0:10:29.480 so that really does translate to our portfolio yield increasing. 0:10:29.800 --> 0:10:32.240 So that's generally a good thing for us. Yeah. I 0:10:32.320 --> 0:10:35.080 mean last year the SMP was down twenty percent and change. 0:10:35.080 --> 0:10:39.920 You are up twenty percent and change. Is that Is 0:10:40.000 --> 0:10:41.920 that kind of outperformance going to stick if we have 0:10:42.000 --> 0:10:43.959 a recession? What happens to your business if we go 0:10:44.040 --> 0:10:46.760 into a serious recession? Yeah, Matt. Look, we tend to 0:10:46.880 --> 0:10:50.719 be essentially a safe port in a recession, and the 0:10:50.800 --> 0:10:54.000 reason for that is businesses can't do their job without 0:10:54.040 --> 0:10:57.720 our products, right, You can't run a company without general liability, insurance, 0:10:57.760 --> 0:11:01.240 property insurance, directors and officers liability, and particularly in the 0:11:01.320 --> 0:11:04.200 heightened risk environment that you have today, demand for our 0:11:04.240 --> 0:11:06.600 products is at an all time high. So for us, 0:11:06.760 --> 0:11:09.640 a recession is actually an opportunity for us to continue 0:11:09.640 --> 0:11:14.079 to grow. So are there sectors of the economy or 0:11:14.240 --> 0:11:15.920 let's put it this way, where do you guys focus 0:11:16.040 --> 0:11:17.959 What are some of the sectors that you guys have 0:11:18.320 --> 0:11:20.800 exposure to or want to have exposure to. Yeah, so 0:11:20.960 --> 0:11:24.120 we're very well diversified both in reinsurance and insurance, and 0:11:24.240 --> 0:11:28.760 that's really across industries, geography's product lines, et cetera. That 0:11:28.880 --> 0:11:31.400 gives us the ability to look at particular aspects of 0:11:31.760 --> 0:11:33.920 the economy and say, this is an area where we 0:11:33.960 --> 0:11:35.800 see a lot of opportunity and we want to play. 0:11:36.080 --> 0:11:38.839 For instance, property right now is a terrific area for 0:11:38.960 --> 0:11:41.640 us to play. Areas that we're watching more closely are 0:11:41.720 --> 0:11:46.240 credit credit related lines, things like mortgage surety, etcetera, etcetera. 0:11:46.280 --> 0:11:47.439 Because we don't know if there's going to be a 0:11:47.520 --> 0:11:50.720 credit cycle beyond some of this, how do you guys 0:11:50.800 --> 0:11:54.240 really compete against Again, we'd look about the stock Matt 0:11:54.240 --> 0:11:55.800 and now we always focus on stocks. If you get 0:11:55.800 --> 0:11:58.120 a snapshot of how companies are doing over a period 0:11:58.120 --> 0:12:00.640 of time, talk to us about your competition. Sure, it 0:12:00.720 --> 0:12:03.160 really does vary whether it's reinsurance or insurance. On the 0:12:03.200 --> 0:12:07.520 reinsurance side, we compete against Munich re, Swiss re hanover Re, 0:12:07.960 --> 0:12:09.760 and then some of the other Bermuda companies, some of 0:12:09.800 --> 0:12:12.800 the smaller ones. On the primary side, we're competing against 0:12:12.880 --> 0:12:18.160 chob aig Acca, Alliance, Zurich. Those are some of the competitors. 0:12:18.400 --> 0:12:22.520 How come those the res are all German speaking, Munich, 0:12:22.600 --> 0:12:25.080 re hanover Re, those are all a very small part 0:12:25.160 --> 0:12:30.720 of the middle of Europe. Why is reinsurance so concentrated there? Yeah, 0:12:30.720 --> 0:12:33.719 I think historically a lot of the large global reinsurers 0:12:33.760 --> 0:12:35.880 did come out of the continent of Europe, but their 0:12:35.920 --> 0:12:39.520 worldwide right. Their home offices may be in Munich or Zurich, 0:12:39.880 --> 0:12:41.880 but they're really worldwide players. But I think a lot 0:12:41.920 --> 0:12:43.679 of it was just their history and a lot of 0:12:43.720 --> 0:12:46.000 opportunity in the continent of Europe when they first started. 0:12:46.160 --> 0:12:48.040 So what do you do? Why are we not interviewing 0:12:48.120 --> 0:12:51.840 him in Bermuda? We should? That was are you actually headquarter? 0:12:52.320 --> 0:12:54.559 You literally live in Bermuda. Now I go back and 0:12:54.640 --> 0:12:57.400 forth to Bermuda. Our company is headquartered in Bermuda. Yes, 0:12:58.360 --> 0:13:02.600 we know a guy in Bermuda. There's and he went 0:13:02.640 --> 0:13:04.840 to Johns Hopkins as Yes, we've got your masters at 0:13:04.920 --> 0:13:07.360 Johns Hopkins right international, we could tie all in. So 0:13:07.440 --> 0:13:11.280 do you focus your business because you studied international studies. 0:13:11.679 --> 0:13:17.199 You've been recognized by Latino Leaders magazine for your contributions. 0:13:18.600 --> 0:13:21.080 You had Latin American studies also as part of your masters, 0:13:21.600 --> 0:13:24.679 do you focus on a global business or as your 0:13:24.720 --> 0:13:27.320 business really focused in the US Now? Our our business 0:13:27.440 --> 0:13:29.640 is totally global. So if I think about it from 0:13:29.720 --> 0:13:32.320 the reinsurance side, I have customers in a one hundred 0:13:32.320 --> 0:13:34.520 and fifteen countries around the world. That makes sense. We 0:13:34.600 --> 0:13:36.839 are the seventh largest reinsurer in the world, so we 0:13:37.200 --> 0:13:39.439 pray a significant role in all of that. On the 0:13:39.520 --> 0:13:42.280 primary side, we're in the middle of expanding our business 0:13:42.400 --> 0:13:45.640 from North America also into other countries. So matter of fact, 0:13:45.720 --> 0:13:51.120 we just opened up offices in Santiago, Dusseldorf, Paris, Madrid, 0:13:51.280 --> 0:13:54.760 Singapore and in this year we have additional expansion to 0:13:54.920 --> 0:13:58.280 go as well. So this leads to my question about growth. 0:13:59.360 --> 0:14:01.240 What's your plan and look like, say a five year 0:14:01.320 --> 0:14:03.199 plan for growth from here? Are you going to do 0:14:03.320 --> 0:14:09.360 it organically? Are you? We talked to pack Allaghory yesterday 0:14:09.760 --> 0:14:12.920 and he's done a lot of it by buying other companies. 0:14:13.200 --> 0:14:15.560 What does it look like Foreverest. Yeah, for us, it's 0:14:15.600 --> 0:14:17.840 really more of an organic build and we have been 0:14:17.960 --> 0:14:20.280 very successful. I mean the growth numbers that I quoted 0:14:20.360 --> 0:14:23.760 earlier in our discussion, we're all organic based. And I'll 0:14:23.800 --> 0:14:27.480 give you an example. So in the reinsurance business, January 0:14:27.600 --> 0:14:30.400 first is where the majority of your renewals take place. 0:14:30.480 --> 0:14:33.360 So we secured over fifty percent of our portfolio on 0:14:33.520 --> 0:14:36.760 January one in an environment good number. That's a very 0:14:36.800 --> 0:14:39.920 good nub because my analyst, Matthew Palazzola, that's his question, 0:14:40.280 --> 0:14:42.680 ask him how the January one renewals went. Yeah, No, 0:14:42.760 --> 0:14:45.240 it's it's it's a it's a very Over fifty percent 0:14:45.280 --> 0:14:47.480 of your portfolio being secured in this January one is 0:14:47.480 --> 0:14:49.840 a very good number because what we saw is that 0:14:49.960 --> 0:14:52.240 once in a generation opportunity that I was telling you about, 0:14:52.600 --> 0:14:56.280 pricing for property catastrophe went up fifty percent in January one. 0:14:56.600 --> 0:15:00.160 In the US, it went up forty percent internationally, so 0:15:00.280 --> 0:15:02.440 we were able to secure over fifty percent of our 0:15:02.520 --> 0:15:06.200 portfolio at much better pricing, much better terms. So that 0:15:06.320 --> 0:15:08.440 sets us up with a very good tailwind going into 0:15:08.480 --> 0:15:11.200 twenty twenty three. How much of a problem are you, know, 0:15:11.320 --> 0:15:14.640 these big superstorms and are we really seeing more and 0:15:14.720 --> 0:15:16.200 more of them or do we just talk about it 0:15:16.280 --> 0:15:18.840 a lot? I mean, since Katrina, we haven't seen that 0:15:19.000 --> 0:15:21.600 kind of devastation in the US, but we've had some 0:15:21.680 --> 0:15:25.160 big storms along Florida. We had Superstorm Sandy here that 0:15:25.240 --> 0:15:28.400 closed the New York Stock Exchange for four days. Is 0:15:28.480 --> 0:15:30.840 that a concern for you? It certainly is, and I 0:15:30.880 --> 0:15:32.880 think it ought to be a concern for everybody. I'll 0:15:32.920 --> 0:15:35.320 give you a couple of statistics. So last year in 0:15:35.400 --> 0:15:38.000 twenty twenty two, the insurance industry paid out over one 0:15:38.080 --> 0:15:41.000 hundred and forty billion in insured loss. In twenty one 0:15:41.040 --> 0:15:42.920 it was one hundred and thirty billion, and insure laws. 0:15:42.960 --> 0:15:46.200 So what we're clearly seeing is more severe storms. This 0:15:46.360 --> 0:15:49.280 is all driven by climate change, right Caesar warming up, 0:15:49.880 --> 0:15:54.120 Warmer seas lead to more severity, higher category four, category 0:15:54.200 --> 0:15:58.320 five type storms. So that creates for our industry essentially 0:15:58.360 --> 0:16:01.240 an impetus to get much better at risk selection and modeling, 0:16:01.440 --> 0:16:03.160 and frankly, that's one of the things that we've done 0:16:03.160 --> 0:16:05.760 at Everest in this period of time is reduce our 0:16:05.840 --> 0:16:09.880 exposure to natural catastrophe, which then reduces our volatility to earnings. 0:16:10.120 --> 0:16:12.840 And it goes back to the diversification point that I 0:16:12.960 --> 0:16:15.720 was making earlier. We're a well balanced company, so we 0:16:15.800 --> 0:16:19.200 don't have to rely only on property. Natural catastrophe exposures. 0:16:19.320 --> 0:16:20.920 What happens to our good friends down in Florida, can 0:16:20.960 --> 0:16:23.080 they even get insurances? And that's where you're from, right, 0:16:23.160 --> 0:16:25.280 you grew up in Miami. I am I'm a Florida boy. 0:16:25.440 --> 0:16:27.840 It happens well. Listen, if Florida has gone through a 0:16:27.960 --> 0:16:30.200 very difficult period of time, particularly over the last couple 0:16:30.240 --> 0:16:33.640 of years, but the governor in the special legislative session 0:16:33.680 --> 0:16:35.240 that they just had at the end of last year, 0:16:35.520 --> 0:16:38.080 have put in place some very good reforms that will 0:16:38.120 --> 0:16:40.600 curve some of the fraud, some of the litigation that 0:16:40.720 --> 0:16:43.600 basically was creating a capacity crunch, if you will, in 0:16:43.680 --> 0:16:46.080 the state. Now, those reforms will take some time to 0:16:46.240 --> 0:16:49.080 play out, but ultimately that votes very well for Florida 0:16:49.560 --> 0:16:52.280 for their consumers. And for the insurance and reinsurance market. 0:16:52.840 --> 0:16:55.160 I mean that's so as a state kind of for 0:16:55.720 --> 0:16:59.000 the last backstop in Florida. Look, I think in Florida 0:16:59.120 --> 0:17:02.400 have a few wasues. One, you're exposed to hurricanes because 0:17:02.440 --> 0:17:04.560 the word is, you have a lot of people moving 0:17:04.600 --> 0:17:06.800 down there, people like to live on the coast. And 0:17:06.920 --> 0:17:08.840 in addition to that, you have some of the environmental 0:17:08.880 --> 0:17:11.639 factors I just described. There's a lot of fraud and 0:17:11.720 --> 0:17:13.879 there's a lot of litigation, and that's really what the 0:17:13.960 --> 0:17:17.240 governor and the legislature have really just addressed. But again 0:17:17.280 --> 0:17:19.520 that'll take a little bit of time to show up. 0:17:19.520 --> 0:17:23.560 All right, fascinating stuff. Want Andrade CEO of Everest. It's 0:17:23.560 --> 0:17:26.560 in New York Stock Exchange traded company r E is 0:17:26.600 --> 0:17:31.640 a symbol like reinsurance based in Bermuda, Bermuda. And again, 0:17:31.680 --> 0:17:33.280 why are we here not in Bermuda? We could have 0:17:33.320 --> 0:17:35.800 done this. Why isn't there everyone based in Bermuda? Exactly? 0:17:39.000 --> 0:17:41.680 I want to talk energy. We'll do that with Greg Ebel. 0:17:41.720 --> 0:17:44.680 He's the CEO of n Bridge Energy that trades on 0:17:44.720 --> 0:17:46.320 the New York Stock is changed as symbol as e 0:17:46.680 --> 0:17:49.880 N as a Nancy Bison boy it's got a seventy 0:17:49.920 --> 0:17:53.160 eight billion dollar market. Captus stocks up about one point 0:17:53.240 --> 0:17:55.680 two percent today, kind of unchanged on the year. And 0:17:55.720 --> 0:17:58.639 this isn't a company that also had an investor day yesterday. 0:17:58.680 --> 0:18:00.160 It's not just Tesla, but a lot of hope are 0:18:00.160 --> 0:18:02.040 trying to get out in front of their shareholders. Greg, 0:18:02.160 --> 0:18:04.720 thanks so much for joining us here. I'd love to 0:18:05.200 --> 0:18:08.240 first of all, just tell us what end Bridge Energy does, 0:18:08.280 --> 0:18:11.720 how does it fit into the energy stream, and then 0:18:11.800 --> 0:18:14.000 tell us kind of what were your big big points 0:18:14.040 --> 0:18:17.160 you tried to make yesterday your investor day. Sure, I appreciate, 0:18:17.680 --> 0:18:21.399 appreciate being with your Polman. Thanks very much. Yeah. So 0:18:21.880 --> 0:18:23.960 the best way for your listeners probably to think through 0:18:24.040 --> 0:18:26.480 this and Bloomberg Radio think through this is, you know, 0:18:26.680 --> 0:18:28.760 end Bridge is really like the FedEx, if you will, 0:18:28.880 --> 0:18:32.159 from an energy infrastructure perspective, and we're really trying to 0:18:32.240 --> 0:18:34.920 be that first choice for our customers for energy delivery. 0:18:35.160 --> 0:18:37.520 So we pick up whether it's oil or it's gas, 0:18:37.680 --> 0:18:40.120 or we're on the renewable side as well, we'll store 0:18:40.160 --> 0:18:43.000 it and ultimately we deliver it to those users. So 0:18:43.240 --> 0:18:46.520 yesterday it was about going out to the our investors 0:18:46.560 --> 0:18:48.880 and telling them how we you know, we see four 0:18:48.920 --> 0:18:52.320 to six percent growth here over the medium term, continued 0:18:52.400 --> 0:18:55.520 growth in our dividend, which by the way, we've increased 0:18:55.560 --> 0:18:58.119 every year for twenty eight years. So that makes us 0:18:58.200 --> 0:19:00.959 one of those, uh, you know, dividend ristocrats out there. 0:19:01.000 --> 0:19:03.600 And that's a key component in this type of environment. 0:19:03.960 --> 0:19:06.320 And it's all backed up by about seventeen and a 0:19:06.359 --> 0:19:10.159 half billion dollars of pipeline projects that can go throughout 0:19:10.880 --> 0:19:14.399 of North America and wind projects and renewable projects in 0:19:14.520 --> 0:19:17.440 five to seven countries. You know, we move twenty five 0:19:17.520 --> 0:19:20.000 to thirty percent of all the oil and all the 0:19:20.080 --> 0:19:22.199 gas that moves to North America to day every day 0:19:22.320 --> 0:19:28.520 safely reliably. So are there places I just recall seeing 0:19:28.560 --> 0:19:34.000 a story last month where gas bills just soared in California, 0:19:34.080 --> 0:19:37.119 whereas everywhere else around the world, around the country, I 0:19:37.160 --> 0:19:40.679 should say, they were stable or even down. Are there 0:19:40.760 --> 0:19:45.560 places that it's harder to get gas and oil? Two? Yeah, absolutely, 0:19:45.640 --> 0:19:47.480 so California is a good example, you know. But we 0:19:48.320 --> 0:19:51.600 have pipelines where the mainline pipe, the main pipeline provider 0:19:51.680 --> 0:19:55.399 for gas into New England. So New England actually pays 0:19:55.560 --> 0:19:59.200 some of the highest prices for natural gas in the world, 0:19:59.280 --> 0:20:02.080 if you can believe put that in the context of 0:20:02.160 --> 0:20:04.560 what everything that's going on in Europe and stuff. And 0:20:04.760 --> 0:20:07.720 that's not because there's no supply, right the supply. I 0:20:07.760 --> 0:20:11.720 think about the Marsalage shale, they'll think Pennsylvania, Ohio. It's 0:20:13.119 --> 0:20:16.639 about infrastructure. So if you're relying on infrastructure and you 0:20:16.720 --> 0:20:19.280 can't get the supply to where the demand is, good, 0:20:19.280 --> 0:20:21.879 old economics push that. And so you've got a lot 0:20:21.960 --> 0:20:24.000 of people in New England who, through no fault of 0:20:24.080 --> 0:20:28.240 their own, are extremely disadvantaged in terms of what they've 0:20:28.280 --> 0:20:30.480 got to pay for what they've got to pay for 0:20:30.560 --> 0:20:32.880 natural guys. You know, for many years we've been able 0:20:32.920 --> 0:20:35.080 to change that. We'd like to kind of get back 0:20:35.119 --> 0:20:39.000 at doing that. It's a challenging environment as you know, pipelines. 0:20:39.920 --> 0:20:43.359 What are the biggest headwinds Because you say a lot 0:20:43.400 --> 0:20:45.520 of people through no faults of their own, but of 0:20:45.600 --> 0:20:49.520 course we can all vote, and if the big headwind 0:20:49.720 --> 0:20:52.800 is say a governor or a state legislature, it is 0:20:52.880 --> 0:20:55.720