Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased substantially from both the prior quarter and the same quarter last year, supported by strong operating cash flow growth. Capital expenditure remained low relative to operating cash flow, contributing to an improved free cash flow margin.
- Revenue rose compared to both prior periods, and operating cash flow grew at a faster pace, enhancing cash conversion. Capital expenditure was slightly lower than the prior quarter but higher than a year ago, yet free cash flow still increased significantly.
- Compared to the immediately preceding quarter, free cash flow and margin were higher. Versus the same quarter one year earlier, both free cash flow and margin also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$14.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.6B
Cash generated by operations before capital spending.
CapEx
$57.0M
Capital spending and related asset purchases.
FCF margin
23.1%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2023-12-31 | $16.9B | $2.4B | $82.1M | $2.4B | 13.9% |
| 2024-03-31 | $17.2B | $4.2B | $50.0M | $4.2B | 24.3% |
| 2024-06-30 | $18.1B | $3.3B | $68.0M | $3.2B | 17.6% |
| 2024-09-30 | $19.7B | $4.6B | $57.0M | $4.6B | 23.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 195.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Underwriting Profit Growth
The filing indicates that the increase in operating cash flow was primarily driven by growth in profit from underwriting operations, reflecting strong premium growth and improved underwriting margins.
This underwriting strength was the key factor behind the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose compared to both prior periods, and operating cash flow grew at a faster pace, enhancing cash conversion. Capital expenditure was slightly lower than the prior quarter but higher than a year ago, yet free cash flow still increased significantly.
Compared to the immediately preceding quarter, free cash flow and margin were higher. Versus the same quarter one year earlier, both free cash flow and margin also improved.
Monitor the trajectory of operating cash flow, as the filing attributes its increase to underwriting profit growth, which may be subject to competitive and market conditions.