American Coastal Insurance Corp (ACIC) 2023 Q4 法說會逐字稿

Hello, And welcome to the American Coastal Insurance Corporation's 2023 fourth quarter and full-year Earnings Conference Call and Webcast. (Operator Instructions) As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Karin Daly, Vice President, The Equity Group and American Coastal's Investor Relations representative. Please go ahead, Karin.

您好，歡迎參加美國海岸保險公司 2023 年第四季和全年收益電話會議和網路廣播。（操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興將電話轉給股票集團副總裁兼美國海岸投資者關係代表 Karin Daly。請繼續，卡琳。

Thank you, Kevin, and good afternoon, everyone. American Coastal Insurance Corporation has also made this broadcast available on its website at ww.amcoastal.com. A replay will be available for approximately 30 days following the call. Additionally, you can find copies of the latest earnings release and Presentations in the Investors section of the company's website.

謝謝你，凱文，大家下午好。美國海岸保險公司也在其網站 www.amcoastal.com 上發布了該廣播。通話後約 30 天內可重播。此外，您可以在公司網站的投資者部分找到最新收益發布和簡報的副本。

Speaking today will be Chairman of the Board and Chief Executive Officer, R Daniel Pead, and President, Bennett Bradford Martz.

今天發表演說的是董事會主席兼執行長 R Daniel Pead 和總裁 Bennett Bradford Martz。

On behalf of the company, I'd like to note that statements made during this call that are not historical facts are forward-looking statements. The company believes these statements are based on reasonable estimates, assumptions and plans. However, if these are estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those expressed in or implied by the forward-looking statements.

我謹代表本公司指出，本次電話會議所做的非歷史事實的陳述均為前瞻性陳述。公司相信這些陳述是基於合理的估計、假設和計劃。然而，如果這些前瞻性陳述所依據的估計、假設或計劃被證明不準確，或出現其他風險或不確定性，則實際結果可能與前瞻性陳述中明示或暗示的結果有重大差異。

Factors that could cause actual results to differ materially may be found in the Company's filings with the US Securities and Exchange Commission in the Risk Factors section of their most recent annual report on Form 10 K. Forward-looking statements speak only as of the date on which they are made. And except as required by applicable law, the Company undertakes no obligation to update or revise any forward-looking statement.

可能導致實際結果出現重大差異的因素可在該公司向美國證券交易委員會提交的最新 10 K 年度報告的風險因素部分中找到。前瞻性陳述僅代表截至它們是由什麼製成的。除適用法律要求外，本公司不承擔更新或修改任何前瞻性聲明的義務。

With that, it's my pleasure to turn the call over to Mr. Daniel Peed. Dan, you may begin.

至此，我很高興將電話轉給丹尼爾·皮德先生。丹，你可以開始了。

Thanks, Karin. Hello and thank you for joining us on our fourth quarter earnings call. I am Dan Peed, Chairman and CEO of American Coastal Insurance Corporation. I will provide an overview of results from the fourth quarter and year-to-date and then turn it over to Brad Martz, who will expand on the financial results.

謝謝，卡琳。您好，感謝您參加我們的第四季財報電話會議。我是丹‧皮德，美國海岸保險公司董事長兼執行長。我將概述第四季和年初至今的業績，然後交給 Brad Martz，他將詳細介紹財務業績。

The core income for the fourth quarter is $17.7 million, which annualized is a 100.6% core return on equity. The core income at December 31 is $89.5 million, which is over a $100 million improvement year over year. Net income is primarily attributable to our commercial lines segment.

第四季核心收入為1770萬美元，年化核心股本回報率為100.6%。截至 12 月 31 日的核心收入為 8,950 萬美元，年增超過 1 億美元。淨利潤主要來自我們的商業業務部門。

The consolidated net loss ratio was 21.2% for the fourth quarter '23 versus 54.3% in the same period in 2022. Consolidated net loss ratio year-to-date was 22.3%. The consolidated net expense ratio continues to trend downwards, 45.4% in the fourth quarter and 43.7% year-to-date, Down from 50.2% and 56.2%, respectively last year. The net combined ratio is 66.6% in the fourth quarter and 66.0% year-to-date , down from 104.5% and 106.2% year over year, respectively. Personal Lines underperformed in the fourth quarter and year-to-date , but the impact is smoothed by the commercial lines segment continuing to outperform year over year.

2023 年第四季的綜合淨虧損率為 21.2%，而 2022 年同期為 54.3%。年初至今的綜合淨虧損率為22.3%。綜合淨費用率持續呈下降趨勢，第四季為 45.4%，年初至今為 43.7%，分別低於去年的 50.2% 和 56.2%。第四季和年初至今的淨綜合成本率為 66.6%，較去年同期的 104.5% 和 106.2% 有所下降。個人保險業務在第四季和年初至今表現不佳，但商業保險業務的同比表現繼續優於大盤，從而消除了影響。

Pre-tax earnings attributable to the commercial lines segment totaled $27.9 million for the fourth quarter of 2023 compared to $3.7 million for the fourth quarter of 2022. The commercial Lines' underlying combined ratio improved 17.5 points to 50.9% in the fourth quarter 2023 from 68.4% in the fourth quarter of 2022. The same improvement holds true year-to-date , with commercial lines' underlying combined ratio improving 13.2 points year over year to 53.6% year-to-date for 2023.

2023 年第四季商業線路部門的稅前盈餘總計 2,790 萬美元，而 2022 年第四季為 370 萬美元。商業航運公司的基本綜合成本率從 2022 年第四季的 68.4% 提高了 17.5 個百分點，至 2023 年第四季的 50.9%。年初至今也出現了同樣的改善，2023 年商業保險公司的基本綜合成本率年增 13.2 個百分點，達到 53.6%。

Earnings also improved as management implemented and achieved its plan for expense reduction and 2023 policy acquisition. Underwriting and general and administrative expenses were all reduced positively impacting the bottom line and cause those 2023 results positioned commercial lines in a solid position going into 2024 and creates opportunities unique to AM Coastal the largest commercial residential lines writer in Florida behind a citizens to continue its conservative reinsurance approach, protect its balance sheet and identify opportunities to expand our products to meet the needs of Florida policyholders and create shareholder value.

隨著管理層實施並實現其費用削減和 2023 年保單收購計劃，盈利也有所改善。承保費用和一般及管理費用均減少，對利潤產生了積極影響，並導致2023 年的業績使商業險種在進入2024 年時處於穩固地位，並為佛羅裡達州最大的商業住宅險種保險公司AM Coastal 創造了獨特的機會，以繼續其發展保守的再保險方法，保護其資產負債表，並尋找擴展我們產品的機會，以滿足佛羅裡達州保單持有人的需求並創造股東價值。

Moving on to Personal Lines, this segment experienced a pretax loss of $5.2 million in the fourth quarter 2023, but that compares favorably to a pretax loss of $10.6 million in the fourth quarter of 2022. We continue confirmatory due diligence with the potential buyer of Interboro and expect to sign definitive documents shortly. Sale of Interboro will unlock capital and generate liquidity to explore diversification opportunities for our business.

轉向個人險種，該細分市場在 2023 年第四季度經歷了 520 萬美元的稅前虧損，但與 2022 年第四季度 1060 萬美元的稅前虧損相比，情況較好。我們將繼續與 Interboro 的潛在買家進行確認性盡職調查，並預計很快就會簽署最終文件。出售 Interboro 將釋放資本並產生流動性，以探索我們業務的多元化機會。

In all, the net income attributable to the company for the year ended December 31, 2023 was $309.9 million, or $7.11 per diluted share. Our At-The-Market market offering raised approximately $38 million to date, which as we have stated, creates capacity for expanding specialty underwriting, especially during these hard market conditions. As a result of the strong performance of our commercial segment and the improvement in our Personal Lines segments period-over-period, our book value per common share increased 29.8% from $2.78 at September 30, 2023 to $3.61 at December 31, 2023. While competition in the commercial line space is increasing and postal continues to be a commercial residential leader in Florida because of its well-established reputation, extensive distribution network, and underwriting expertise. I expect this unmatched competitive advantage will continue to drive results and deliver value to shareholders.

總的來說，截至 2023 年 12 月 31 日止年度，公司應佔淨利為 3.099 億美元，即稀釋後每股收益 7.11 美元。迄今為止，我們的市場發售已經籌集了約 3800 萬美元，正如我們所說，這為擴大專業承保創造了能力，特別是在當前嚴峻的市場條件下。由於我們商業部門的強勁表現以及個人保險部門的同比改善，我們的每股普通股帳面價值從2023年9月30日的2.78美元增加到2023年12月31日的3.61美元，增長了29.8%。儘管商業線路領域的競爭日益加劇，但郵政憑藉其良好的聲譽、廣泛的分銷網絡和承保專業知識，仍然是佛羅裡達州商業住宅的領先者。我預計這種無與倫比的競爭優勢將繼續推動業績並為股東創造價值。

With that, I'll turn it over to Brad Martz.

有了這個，我會把它交給布拉德馬茨。

Thank you, Dan, and hello. I'm happy to review our financial results and encourage everyone to review the Company's press release, earnings and investor presentations and Forms 10-Q and 1-K, including amendments for more information regarding our performance, we entered 2024 with positive forward momentum in our core business.

謝謝你，丹，你好。我很高興回顧我們的財務業績，並鼓勵大家查看公司的新聞稿、收益和投資者演示文稿以及表格10-Q 和1-K，包括有關我們業績的更多信息的修訂，我們以積極的前進勢頭進入2024 年我們的核心業務。

Underwriting actions taken over the past year, combined with expense reduction and a more favorable external operating environment led ACIC. to post record results, Dan highlighted for 2023. While we were pleased with our overall performance. In the fourth quarter, pretax earnings included nonrecurring charges of roughly $8.4 million, $2 million of which was related to impairment of capitalized software and $6.4 million impacted reinsurance costs.

過去一年採取的承保行動，加上費用減少和更有利的外部營運環境引領了ACIC。為了發布創紀錄的業績，Dan 強調了 2023 年的目標。雖然我們對我們的整體表現感到滿意。第四季度，稅前收益包括約 840 萬美元的非經常性費用，其中 200 萬美元與資本化軟體減損相關，640 萬美元受到影響的再保險成本。

Page 6 of our earnings presentation provide some additional color on the charge related to reinsurance, which is actually a good thing because it will reduce reinsurance costs over time. The reinsurance charge occurred from a voluntary commutation to the 2023 core catastrophe reinsurance program in exchange for a no claims bonus. The $6.4 million incurred in Q4 will be offset by $14.4 million of cost savings over the remaining trading period from January 1 to May 31, 2024.

我們收益報告的第 6 頁對與再保險相關的費用提供了一些額外的說明，這實際上是一件好事，因為隨著時間的推移，它會降低再保險成本。再保險費用來自自願轉換為 2023 年核心巨災再保險計劃，以換取無索賠獎金。第四季產生的 640 萬美元將被 2024 年 1 月 1 日至 5 月 31 日剩餘交易期間節省的 1,440 萬美元成本所抵銷。

The net economic benefit to ACIC. is approximately $8 million after accounting for the upfront costs incurred in Q4 and the savings expected in Q1 and Q2 of 2024, which are net of costs we incurred to replace the cat limit committed. A big driver of improvement in the pretax earnings in our combined ratio in the current quarter was the lack of any meaningful catastrophe losses. Catastrophe losses were just $277,000 this quarter compared to $18.9 million in the same period last year. We continued to see favorable prior year reserve development with $629,000 in the current quarter and feel good about our overall loss reserves at year end.

ACIC 的淨經濟效益。考慮到第四季度產生的前期成本以及 2024 年第一季和第二季的預期節省（扣除我們為更換承諾的巨災限額而產生的成本）後，該費用約為 800 萬美元。本季綜合成本率稅前收益改善的一個重要推動因素是沒有任何有意義的災難損失。本季災難損失僅 27.7 萬美元，去年同期為 1,890 萬美元。本季我們繼續看到去年準備金的良好成長，達到 629,000 美元，並對年底的整體損失準備金感到滿意。

Excluding catastrophe losses and prior year reserve development, our underlying combined ratio improved over 15 points to 67.2% in the current period and was 65% for the full year. We previously stated that our target for the underlying combined ratio in 2023 was 65%. So we're obviously pleased with hitting this goal.

在剔除巨災損失和上一年準備金開發後，本期基本綜合成本率提高了 15 個百分點以上，達到 67.2%，全年為 65%。我們先前表示，2023 年基礎綜合成本率的目標是 65%。所以我們顯然對實現這個目標感到高興。

Page 7 of our earnings presentation breaks down our results by segment with $27.9 million of pretax profit from Commercial Lines reduced by a $5.2 million loss from personal lines, and $3.2 million of expense at the whole company, which is primarily interest expense. This brought our year-to-date pretax profit in commercial lines to over $118 million with a combined ratio of 53.7%.

我們的收益報告第7 頁按部門細分了我們的業績，商業險業務稅前利潤為2790 萬美元，減去個人險業務損失520 萬美元，整個公司的費用為320 萬美元，其中主要是利息費用。這使得我們今年迄今商業業務的稅前利潤超過 1.18 億美元，綜合成本率為 53.7%。

As Dan mentioned, ACIC continues to work towards finalizing definitive agreements to sell Interboro and we still expect to get that done this year. But completing the sale is now more likely to occur towards the end of 2024. It means personal lines will continue to be a minor drag on overall results this year. However, we did receive regulatory approval in New York for a 12.6% rate increase effective February six for new business and March 15 for renewal business with an annualized expected impact of $5.9 million. So that is obviously expected to help improve personal lines results in the current period.

正如 Dan 所提到的，ACIC 繼續努力敲定出售 Interboro 的最終協議，我們仍然預計今年能完成這項工作。但現在更有可能在 2024 年底完成出售。這意味著個人線路將繼續對今年的整體業績產生輕微拖累。然而，我們確實獲得了紐約監管機構的批准，新業務費率上調 12.6%，自 2 月 6 日起生效，續約業務費率自 3 月 15 日起生效，年化預期影響為 590 萬美元。因此，這顯然有望有助於改善當前時期的個人線路表現。

Page 8 of our earnings presentation provides balance sheet highlights, including stockholders' equity increasing 40% to $168.8 million or $3.61 a share. Unrealized losses on our bond portfolio of $17.1 million or $0.36 a share, indicated underlying book value of approximately $3.97. Cash and invested assets totaled $369 million with total assets of just under $1.1 billion.

我們的收益報告第 8 頁提供了資產負債表亮點，包括股東權益成長 40%，達到 1.688 億美元，即每股 3.61 美元。我們的債券投資組合未實現損失為 1,710 萬美元，即每股 0.36 美元，表明基礎帳面價值約為 3.97 美元。現金和投資資產總計 3.69 億美元，總資產略低於 11 億美元。

As Dan mentioned, our previously announced at-the-market or ATM program delivered a nice boost to our unrestricted liquidity in our overall capitalization during the quarter as of year-end ACIC issued and sold approximately 3.4 million new shares raising $26.8 million net of selling expenses. Subsequent to year end, the company sold another 1 million shares, raising another $11.4 million net of expenses the ATM has now raise more capital than we originally anticipated, but the dilutive impact was in line with our original expectations.

正如 Dan 所提到的，我們先前宣布的市場或 ATM 計劃極大地提高了截至年底 ACIC 發行和出售約 340 萬股新股的本季度整體資本的不受限制的流動性，扣除出售後籌集了 2680 萬美元花費。年底後，該公司又出售了 100 萬股，扣除費用後又籌集了 1140 萬美元，ATM 目前籌集的資金比我們最初預期的要多，但攤薄影響符合我們最初的預期。

Accordingly, the ATM has now been paused and American Coastal is not anticipating additional sales of its common stock under the ATM program at this time. And the question everyone wants to know is what are we going to do with the $38.2 million raised from the ATM inception to date. And as we've stated previously, we see a tremendous opportunity to grow our net earned premiums over time by retaining more of our direct underwriting results.

因此，ATM 現已暫停，美國海岸公司目前預計不會根據 ATM 計劃額外出售其普通股。每個人都想知道的問題是，我們將如何處理 ATM 創立至今所募集的 3,820 萬美元。正如我們之前所說，我們看到了透過保留更多直接承保業績來隨著時間的推移增加淨賺保費的巨大機會。

We've deployed some of this capital to our captive already to support our January 1 AOP cat reinsurance program and our excess per-risk reinsurance program that was placed at February 1 on layers with a modeled expected return on capital well in excess of 50%. However, most of the proceeds are being reserved for our much bigger core catastrophe renewal at June 1 of this year. It's premature to comment on our upcoming core catastrophe renewal at June 1, but we are hard at work on it and can point to the very successful reinsurance renewals at one and two one is good evidence that we expect to see significant improvements in pricing and overall protection at June 1 this year relative to the program expiring at May 31.

我們已將部分資本分配給自保公司，以支持 1 月 1 日的 AOP 巨災再保險計劃以及 2 月 1 日的超額按風險再保險計劃，模型預期資本回報率遠超 50% 。然而，大部分收益都被保留用於今年 6 月 1 日更大的核心災難更新。現在對6 月1 日即將到來的核心巨災續保發表評論還為時過早，但我們正在努力工作，並且可以指出，一號和二號再保險續保非常成功，這是一個很好的證據，表明我們預計會看到定價和整體方面的顯著改善。相對於該計劃於 5 月 31 日到期，今年的保護期為 6 月 1 日。

Page 9 of our earnings presentation summarizes our current view of the underwriting environment. Market conditions remain very favorable for achieving underwriting profitability and above average risk-adjusted returns on capital in the near term. To capitalize on this, we will look to supplement our anticipated organic growth this year by also exploring takeout and assumption opportunities, we believe assuming business from other carriers such as citizens that meet our underwriting criteria, makes sense in the current environment and could potentially offset any potential competitive pressures as the market cycle evolves.

我們的收益報告第 9 頁總結了我們目前對核保環境的看法。市場條件仍然非常有利於在短期內實現承保盈利能力和高於平均水平的風險調整資本回報率。為了利用這一點，我們將尋求透過探索外賣和假設機會來補充我們今年預期的有機增長，我們相信假設來自其他承運人（例如符合我們承保標準的公民）的業務在當前環境下是有意義的，並且可能會抵消隨著市場週期的發展，任何潛在的競爭壓力。

Pages 10 and 11 of our earnings presentation provide some additional color on pricing and valuation trends in our commercial residential business. We ended 2023, with premiums up 28% and exposures down 18% year over year. Rate levels are moderating, but remain very healthy relative to current exposures, loss and expense trends even with direct written premiums flattening out.

我們的收益報告第 10 頁和第 11 頁對我們的商業住宅業務的定價和估值趨勢提供了一些額外的說明。截至 2023 年，保費年增 28%，風險敞口年減 18%。費率水準正在放緩，但相對於當前的風險敞口、損失和費用趨勢，即使直接承保保費趨於平緩，仍然非常健康。

We are confident in our ability to grow net earned premiums in 2024, which is truly what will drive our bottom line this year and finally, we would like to give a huge thank you to our partners at AmRisc for their exceptional contributions to our success in 2023 and also offer our sincere congratulations to both the buyer and the seller of Ameris parent company. American Coastal continues to enjoy a very strong and exclusive relationship with AmRisc in the Florida admitted commercial residential space. And we do not expect any significant changes to our business because of Ameris ownership change in the foreseeable future.

我們對 2024 年淨賺保費增長的能力充滿信心，這確實將推動我們今年的盈利，最後，我們要非常感謝 AmRisc 的合作夥伴，感謝他們為我們的成功做出的傑出貢獻2023年，也向Ameris母公司的買家和賣家表示誠摯的祝賀。American Coastal 繼續與 AmRisc 在佛羅裡達州認可的商業住宅領域保持著非常牢固和排他的關係。我們預計在可預見的將來，我們的業務不會因為 Ameris 所有權變更而發生任何重大變化。

With that, operator, please open the line for questions.

那麼，接線員，請開通提問線路。

(Operator Instructions) Greg Peters, Raymond James.

（操作員說明）Greg Peters、Raymond James。

Well, hey, good afternoon, Dan and Brad. So Dan, in your comments, you hinted about increased competition in your specialty commercial lines business. Brad, you also mentioned, can you give us a sense of what your expectation is in terms of pricing or rates in your specialty segment for '24 and how that might compare with what happened in '23?

嗯，嘿，下午好，丹和布拉德。丹，在您的評論中，您暗示您的專業商業線業務的競爭加劇。Brad，您還提到，您能否讓我們了解您對 24 年專業細分市場的定價或費率的期望，以及與 23 年發生的情況相比如何？

Sure, this is Dan, we and so little competition last year that just about any competition is an increase. We see probably the main company where the accounts the accounts leave would be doing to citizens and mostly due to a rate just due to a rate term being less expensive for the citizens policy.

當然，這是丹，去年我們的競爭很少，幾乎所有的競爭都在增加。我們認為，帳戶留下的帳戶可能是對公民進行的主要公司，這主要是由於利率條款對公民政策來說較便宜。

We have also seen a few different carriers that are introducing products, but they tend to be they tend to be a small number compared to the sort of volume that American Coastal typically sees. So as far as read, we continue to expect that we will get rate increases, they just will be decelerating from the rate increases that we were getting over the course of the last 12 months. And I would expect that we probably will be up between 10% and 20% through the course of 2024 over the average 2023 rates.

我們也看到一些不同的航空公司正在推出產品，但與美國海岸航空公司通常看到的數量相比，它們的數量往往很少。因此，就目前的情況來看，我們仍然預計升息將會增加，但與過去 12 個月的升息相比，升息速度將會放緩。我預計到 2024 年，我們的利率可能會比 2023 年的平均利率上漲 10% 到 20%。

I guess the other comment I think you made was just sort of what the expectation underlying combined ratio target my was for '23. Wondering if you would want to venture a guess and give us sort of a range of what you think the underlying combined ratio target should be for the enterprise for '24 on or give us some benchmark of expectation around what you think the margin performance will be understanding that there's volatility per cap?

我想您所做的其他評論正是我對 23 年的綜合比率目標的預期。想知道您是否願意大膽猜測，並向我們提供您認為 24 世紀企業的基本綜合成本率目標應該達到的一系列範圍，或者給我們一些您認為的利潤率表現的預期基準了解上限的波動性嗎？

Yes, Greg, this is Brent. While the underlying combined excludes cat and reserve development, so that's the purpose of that measurement. It does allow us to create an apples-to-apples comparison across all years, regardless of what's happening with prior year reserve development, or the volatility associated with Cat. But so we think it's a good metric, and we're still targeting 65% as of today. I think that our reinsurance renewal, June one could change that outlook on favorably or unfavorably depending on how we execute. But I think that's the big reset, but we need to wait and see how are on fixed costs related to reinsurance as well as the variable costs associated with the quota share on end up changing at June 1.

是的，格雷格，這是布倫特。雖然基礎合併不包括巨災和儲備開發，所以這就是該測量的目的。它確實使我們能夠對所有年份進行同類比較，無論上一年的儲備開發情況如何，或者與 Cat 相關的波動性如何。但我們認為這是一個很好的指標，截至今天我們的目標仍然是 65%。我認為我們六月的再保險續保可能會有利或不利地改變這種前景，這取決於我們的執行方式。但我認為這是一次重大重置，但我們需要等待，看看與再保險相關的固定成本以及與配額份額相關的可變成本在 6 月 1 日最終會發生怎樣的變化。

Okay. And then I guess pivoting to sort of the capital and balance sheet situation in, I guess you've now showed you're closing down the ATM for the time being pausing. And I think with some new news, what how should we think about capital adequacy across the enterprise on if you look to your debt to total capital leverage ratio looks elevated relative to your peers, but maybe I'm missing something. I think the RBC is probably running a little bit high right now. If you can provide some perspective around your views on capital?

好的。然後我想轉向資本和資產負債表的情況，我想你現在已經表明你正在暫時關閉自動櫃員機。我認為，有了一些新消息，如果您的債務與總資本槓桿比率相對於同行而言看起來較高，那麼我們應該如何考慮整個企業的資本充足率，但也許我遺漏了一些東西。我認為加拿大皇家銀行現在可能有點高。您能否就您對資本的看法提供一些看法？

Certainly, Tom, you're correct on the statutory side, which is where that we're most sensitive to our capital needs on American Coastal insurance company ended the year with a risk-based capital ratio of 981%. So we feel like we've done a great job of managing that, obviously, taking back more on net premium risk with decreasing potential reinsurance spend on could cause us to see a decrease in net RBC, but it will be offset by increased underwriting profitability.

當然，湯姆，你在法定方面是正確的，這是我們對美國海岸保險公司的資本需求最敏感的地方，截至今年年底，基於風險的資本率為 981%。因此，我們覺得我們在管理方面做得很好，顯然，透過減少潛在的再保險支出來收回更多的淨保費風險可能會導致我們看到淨RBC 的減少，但這將被承保盈利能力的增加所抵消。

So the way we've modeled it out. I think we're all set on capital for the for the year. Obviously, we are working feverishly to unlock some additional liquidity by selling Interboro which is a big reason we went to the ATM. As you know, we had we were somewhat disappointed in the time line and the length of time it's taking to dispose of that asset and firmly exit the personal lines business. But for right now, I think we're in great shape with on policyholder surplus and RBC on and if we want to retain more risk. I think we have the capital to do it.

這就是我們建模的方式。我認為今年我們已經做好了資本準備。顯然，我們正在積極努力透過出售 Interboro 來釋放一些額外的流動性，這是我們使用 ATM 的一個重要原因。如您所知，我們對處置該資產並堅決退出個人保險業務所需的時間和時間感到有些失望。但就目前而言，我認為我們在保單持有人盈餘和加拿大皇家銀行方面處於良好狀態，如果我們想保留更多風險的話。我認為我們有資本來做這件事。

Got it. I guess just just pivoting back to your your one of your earlier comments about take-out opportunities considerations I assume that's still that's focused on the specialty commercial side that that pivot back into the personal residential side. Is that correct?

知道了。我想只是回到你之前關於外賣機會考慮因素的評論之一，我認為這仍然集中在專業商業方面，然後又轉向個人住宅方面。那是對的嗎？

And if that is correct. Yes, good clarification. And I apologize for omitting that. But yes, we we've lost a few accounts to Citizens due to rate differential. And that's okay, that happens from time to time. But there is some good business on that. We'd like to get back. And I think that's a one way to do it. So we should be evaluating the opportunities there from time to time and when it makes sense on the risks we're familiar with that, that meet our underwriting criteria are available. We'll consider it.

如果這是正確的。是的，很好的澄清。我很抱歉忽略了這一點。但是，是的，由於費率差異，我們已經失去了一些公民帳戶。沒關係，這種情況時常發生。但這有一些好的生意。我們想回來。我認為這是實現這一目標的一種方法。因此，我們應該不時評估那裡的機會，當我們熟悉的風險有意義時，就可以提供符合我們承保標準的機會。我們會考慮的。

Got it. Well, congratulations on the year.

知道了。嗯，恭喜你過年了。

Thank you.

謝謝。

Thank you.

謝謝。

[Aryan Gupta, Eco light asset Private Limited]

[Aryan Gupta，生態輕資產私人有限公司]

Hello, Brad or Dan, thank you so much and congratulations on the results for the Commercial Specialty segment. I just had a couple of questions. So and I guess have there been any update on the fee income side of the business? I guess that's my sort of first question.

你好，布拉德或丹，非常感謝你，並祝賀商業專業領域的結果。我只是有幾個問題。那麼我想該業務的費用收入方面有任何更新嗎？我想這是我的第一個問題。

I'll take that. This is Dan. We are working on some different opportunities, but I think as we have kind of mentioned all along, I wouldn't feel like that is something that is just imminently in the short term. It would be something that we build over time. We are still working on some fee opportunity of fee business opportunities, but there is no nothing there to report yet.

我會接受的。這是丹.我們正在尋找一些不同的機會，但我認為正如我們一直提到的那樣，我不認為這是短期內迫在眉睫的事情。這將是我們隨著時間的推移而建立的東西。我們仍在研究一些收費業務機會的收費機會，但目前還沒有任何可報告的內容。

Sure, sure. That makes sense. And I was also wondering, are there any opportunities that you guys see in the market other than on the non-admitted market where potentially there might be, I mean opportunities for growth?

一定一定。這就說得通了。我還想知道，除了可能存在的非授權市場之外，你們在市場上是否看到了任何機會，我的意思是成長機會？

Well, one thing that Brad mentioned is the opportunity for pretty significant growth in our net premiums written and net premiums earned just from the standpoint of just eating more of our own booking. Obviously, if you look at our numbers, there's a very large ceded percentage in part due to our capital level at the beginning of last year. And obviously, that capital has been reinforced and we like the business that we're writing from a gross written premium perspective, and we may be able to have more of that. It's a net written premium perspective.

布拉德提到的一件事是，僅從增加我們自己預訂的角度來看，我們的淨承保保費和賺取的淨保費就有相當大的成長機會。顯然，如果你看一下我們的數據，你會發現有很大的讓出比例，部分原因是我們去年初的資本水準。顯然，這種資本已經得到加強，我們喜歡從毛保費角度來看我們正在撰寫的業務，我們可能能夠擁有更多這樣的業務。這是淨保費的觀點。

So that's one one opportunity for growth and wallet, while it won't be as significant on the top gross written premium number. We don't think this year, but it could be materially. It could be significant on the net written premium number. So that's one opportunity. And we are exploring some other opportunities from the So from the E&S side of business or so potentially like, for example, in some reinsurance opportunities or stuff like that, but nothing that we're really prepared to discuss right now.

因此，這是一次增長和錢包的機會，雖然它在最高總承保保費方面不會那麼重要。我們認為今年不會，但可能會是實質的。這對於淨承保保費來說可能很重要。所以這是一個機會。我們正在從業務的 E&S 方面探索一些其他機會，或者可能的，例如，一些再保險機會或類似的東西，但我們現在還沒有真正準備好討論。

Sure, sure. That makes sense. And just one last quick question on the quota shares that is that expected to sort of go down this year and if you could give any sort of like clarity on on what that ends up being for this, I mean for the new renewal and six one this year, I would prefer to that.

一定一定。這就說得通了。最後一個關於配額份額的快速問題是，預計今年會有所下降，如果您能澄清一下最終的結果，我的意思是新的續約和六一今年，我更願意這樣做。

I mean so we can't really provide any specific numbers, but we have stated in the past that the we did a 40% quota share at June first of 23. And then we would expect that to go go down to eventually 25%, 15%, 0% in the course of two to three years.

我的意思是，我們無法提供任何具體數字，但我們過去曾表示，我們在 23 日 6 月 1 日獲得了 40% 的配額份額。然後我們預計在兩到三年內最終會下降到 25%、15%、0%。

I would say that would be our expectation going into six, one 24 is for that to go down by a third to half the quota share component.

我想說的是，我們的預期是，進入 6 個、1 個 24 時，配額份額將減少三分之一到一半。

Are they so excited? Thank you so much, Dan.

他們這麼興奮嗎？非常感謝你，丹。

Okay.

好的。

Thank you.

謝謝。

Thank you.

謝謝。

Bill Dezellem, Tieton Capital.

比爾·德澤勒姆，泰頓資本。

Thank you. First of all, would you please discuss your view of the reinsurance market specifically as it relates to your renewal June renewal?

謝謝。首先，您能否具體討論一下您對再保險市場的看法，因為它與您的六月續保有關？

Yes, certainly we did issue a press release describing them is that some of the details of the January. First of all, other perils can or AOP cat placement. We did spend $100 million of limits are significantly smaller than our hurricane focused work catastrophe reinsurance program midyear, but we did see on just under a 10% risk-adjusted rate decrease on that limit. And we did buy more limits and so on, you know, my comments were we're guiding towards know, we do expect to see some some in a more capacity available on the feedback we got at both one one and two one was that capacity is available our reinsurers are hungry on the remaining disciplined. So we have to be constantly mindful of that.

是的，當然我們確實發布了一份新聞稿，描述了他們一月份的一些細節。首先，其他的險種可以或AOP貓安置。我們確實花費了 1 億美元的限額，這比我們年中以颶風為重點的工作巨災再保險計劃要小得多，但我們確實看到該限額的風險調整後利率下降了近 10%。我們確實購買了更多的限制等等，你知道，我的評論是我們正在引導知道，我們確實希望看到一些更多的容量可用，根據我們在一一和二一得到的反饋是容量我們的再保險公司渴望剩下的紀律。所以我們必須時時注意這一點。

But last year's program was at distressed, right? We still have the cloud of uncertainty hanging over the Company regarding the B on disposal of our former affiliate, United property and casualty ends, it definitely impacted the pricing and the capacity available to us as well as other terms and conditions. So we see now that that is on further away in the rearview mirror.

但去年的節目很苦惱吧？關於B公司出售我們的前附屬公司聯合財產和傷亡事故的問題，我們仍然籠罩著公司的不確定性，這肯定會影響我們的定價和可用容量以及其他條款和條件。所以我們現在在後視鏡中看到它在更遠的地方。

And we've proven that we've got a very strong company and book of business. I think we're in a much better negotiation overall negotiating position. But we we respect our reinsurance partners immensely, we need their support and we're playing long ball with them.For sure. So while this is an annual opportunity to drive terms and I do think we're a little bit into a cedants market at the moment on, we'll have more details for you in coming months.

我們已經證明我們擁有非常強大的公司和業務。我認為我們在整體談判中處於更好的位置。但我們非常尊重我們的再保險合作夥伴，我們需要他們的支持，我們正在與他們合作。當然。因此，雖然這是一年一度推動條款的機會，而且我確實認為我們目前有點進入分出者市場，但我們將在未來幾個月內為您提供更多詳細資訊。

Thank you. And then secondarily, you've highlighted a number of things that you're doing. Would you please walk through for 2024 specifically, what do you see as your most important strategic initiatives?

謝謝。其次，你強調了你正在做的一些事情。請您具體介紹一下 2024 年，您認為最重要的策略舉措是什麼？

Sure. On number one is underwriting profitability, and that's always job one that's never going to change on a number two is developing a pathways for earnings growth. That doesn't mean top line growth. That means earnings growth. So that can come in the form of fee income. It can come in the form of on deploying capital intelligently, whether it's direct assumed or reinsurance to earn strong returns on capital on the third, I would say is to continue to support and complete the runoff of discontinued operations so we still have a couple of things on our to-do list there, most notably a number of getting that and sold and continuing to support them at the Department of Financial Services and any way we can.

當然。第一個是承保獲利能力，這永遠是第一個永遠不會改變的工作，第二個是開發獲利成長的途徑。這並不意味著營收成長。這意味著獲利成長。因此，這可以以費用收入的形式出現。它可以以明智地部署資本的形式出現，無論是直接承擔還是再保險，以獲得第三次強勁的資本回報，我想說的是繼續支持和完成已終止業務的徑流，所以我們仍然有幾個我們的待辦事項清單上有一些事情，最值得注意的是一些得到並出售並繼續在金融服務部以及我們力所能及的方式支持他們。

And then lastly, it's building bench strength. I think we showed everyone in January that we're serious about that naming two new named executive officers on Svetlana Castle joins us as our new Chief Financial Officer. I've known for a long time, and I'm very, very excited. She has joined our team on. She will likely be participating on this call next quarter. She's here with us today, listening and learning and getting up to speed on how we operate.

最後，是增強替補力量。我認為我們在一月份向所有人表明，我們非常認真地任命斯維特蘭娜城堡的兩名新任執行官加入我們，擔任我們的新財務長。我知道很久了，我非常非常興奮。她已加入我們的團隊。她可能會在下個季度參加這次電話會議。她今天和我們在一起，傾聽、學習並快速了解我們的運作方式。

But she is she's a terrific hire, and we also promoted from within on and created a new position of Chief Compliance and Risk Officer on them. And that title is pretty self-explanatory given what we went through in 2023 there's going to be increased emphasis on risk management and compliance at the company going forward. So those are my top four.

但她是一位出色的僱員，我們也從內部進行了晉升，並為他們設立了一個新職位：首席合規和風險官。考慮到我們在 2023 年經歷的事情，這個標題是不言自明的，未來公司將更加重視風險管理和合規性。這些是我的前四名。

Thank you. We have reached the end of our question-and-answer session. I'd like to turn the floor back over to Dan for any further or closing.

謝謝。我們的問答環節已經結束。我想將發言權交還給丹，以便進一步討論或結束。

Okay. Thanks, everybody, for your time and your interest in our company and your time on this call, and that ends our call. Thanks again.

好的。感謝大家抽出寶貴的時間、對我們公司的興趣以及參與本次電話會議，我們的電話會議到此結束。再次感謝。

Thank you. That does conclude today's teleconference webcast. You may disconnect your lines at this time and have a wonderful day. We thank you for your participation today.

謝謝。今天的電話會議網路廣播到此結束。此時您可以斷開線路並度過美好的一天。我們感謝您今天的參與。