American Financial Group, Inc. (AFG) 2026 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the American Financial Group 2026 first quarter results conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

各位女士、先生，感謝您稍候。歡迎參加 American Financial Group 2026 年第一季業績電話會議。（接線員指示）請注意，今日會議將被錄音。

I would like now to turn the conference over to Diane Weidner, Vice President of Investor Relations. Please go ahead.

現在我想將會議交給投資人關係副總裁 Diane Weidner。請開始。

Good morning, and welcome to American Financial Group's first quarter 2026 earnings results conference call. We released our results yesterday afternoon. Our press release, investor supplement and webcast presentation are posted on AFG's website under the Investor Relations section. These materials will be referenced during portions of today's call. Joining me this morning are Carl Lindner III and Craig Lindner, Co-CEOs of American Financial Group, and Brian Hertzman, AFG's CFO. Before I turn the discussion over to Carl, I would like to draw your attention to the notes on Slide 2 of our webcast. Some of the matters to be discussed today are forward-looking. These forward-looking statements involve certain risks and uncertainties that could cause our actual results and/or financial condition to differ materially from these statements. A detailed description of these risks and uncertainties can be found in AFG's filings with the Securities and Exchange Commission, which are also available on our website. We may include references to core net operating earnings, a non-GAAP financial measure, in our remarks or in responses to questions today. A reconciliation of net earnings to core net operating earnings is included in our earnings release. And finally, if you're reading a transcript of this call, please note that it may not be authorized or reviewed for accuracy, and as a result, it may contain factual or transcription errors that could materially alter the intent or meaning of our statements.

各位早安，歡迎參加 American Financial Group 2026 年第一季盈餘業績電話會議。我們已於昨日下午發布業績。我們的新聞稿、投資人補充資料及網路直播簡報已張貼於 AFG 官網「投資人關係」專區。今日電話會議的部分內容將引用這些資料。今天早上與我一同出席的有 American Financial Group 共同執行長 Carl Lindner III 與 Craig Lindner，以及 AFG 財務長 Brian Hertzman。在我把討論交給 Carl 之前，請各位留意我們網路直播第 2 頁投影片的附註。今日將討論的部分事項屬於前瞻性陳述。這些前瞻性陳述涉及若干風險與不確定性，可能導致我們的實際結果及／或財務狀況與這些陳述有重大差異。關於這些風險與不確定性的詳細說明，請參閱 AFG 向美國證券交易委員會（SEC）提交的文件，亦可於我們網站取得。我們在今日發言或回答問題時，可能會提及核心淨營運盈餘（core net operating earnings），此為非 GAAP 財務衡量指標。由淨盈餘至核心淨營運盈餘的調節表已包含於我們的盈餘新聞稿中。最後，若您正在閱讀本次電話會議逐字稿，請注意其可能未經授權或未經審閱以確保正確性，因此可能包含事實或轉錄錯誤，並可能對我們陳述的意圖或含義造成重大影響。

Now I'm pleased to turn the call over to Carl to discuss our results.

現在我很高興將電話會議交給 Carl，請他說明我們的業績。

Well, good morning, and I'll begin by sharing a few highlights of AFG's 2026 first quarter results, after which Craig and I will walk through more details.

各位早安。我將先分享 AFG 2026 年第一季業績的幾項重點，之後 Craig 和我會進一步說明更多細節。

We'll then open it up for Q&A, where Craig, Brian and I will respond to your questions. We are pleased to report an annualized core operating return on equity of 17% for the first quarter, which was driven by strong underwriting margins.

接著我們將開放問答，由 Craig、Brian 和我回覆各位的提問。我們很高興報告第一季年化核心營運股東權益報酬率（ROE）為 17%，主要受惠於強勁的承保利差。

Our compelling mix of specialty insurance businesses, entrepreneurial culture, disciplined operating philosophy and an astute team of in-house investment professionals continue to position us well for the future and enable us to continue to create value for our shareholders.

我們具吸引力的專業保險業務組合、創業家文化、嚴謹的營運理念，以及一支精明的內部投資專業團隊，持續使我們在未來具備良好定位，並讓我們得以持續為股東創造價值。

Craig and I thank God, our talented management team and our great employees for helping us to achieve these results.

Craig 和我感謝上帝、我們優秀的管理團隊以及所有傑出的員工，協助我們達成這些成果。

I'll now turn the discussion over to Craig to walk us through some of these details.

現在我把討論交給 Craig，請他帶領我們檢視其中一些細節。

Thank you, Carl. Please turn to Slides 3 and 4 for a summary of earnings information for the quarter. AFG reported core net operating earnings of $2.47 per share in the 2026 first quarter, a 36% increase from the prior year period.

謝謝你，Carl。請翻到第 3 與第 4 頁投影片，以查看本季盈餘資訊摘要。AFG 於 2026 年第一季的核心淨營運盈餘為每股 2.47 美元，較去年同期成長 36%。

I'll start with an overview of AFG's investment performance and financial position and share a few comments about AFG's capital and liquidity. The details surrounding our $17.1 billion investment portfolio are presented on Slides 5 and 6.

我將先概述 AFG 的投資表現與財務狀況，並就 AFG 的資本與流動性分享幾點看法。我們 171 億美元投資組合的相關細節列於第 5 與第 6 頁投影片。

Excluding the impact of alternative investments, net investment income in our property and casualty insurance operations for the three months ended March 31, 2026, increased 8% year-over-year due primarily to higher balances of invested assets.

排除另類投資的影響後，截至 2026 年 3 月 31 日止三個月，我們產險（P&C）保險營運的淨投資收益年增 8%，主要由於投資資產餘額較高。

As you'll see on Slide 6, approximately two-thirds of our portfolio is invested in fixed maturities. In the current interest rate environment, we're able to invest in fixed maturity securities at yields of approximately 5.25%. The duration of our P&C fixed maturity portfolio, including cash and cash equivalents, was 3.1 years at March 31, 2026. The annualized return on alternative investments in our P&C portfolio was slightly negative in the 2026 first quarter compared to 1.8% for the prior year first quarter.

如第 6 頁投影片所示，我們的投資組合約有三分之二配置於固定到期證券。在目前利率環境下，我們能以約 5.25% 的殖利率投資固定到期證券。截至 2026 年 3 月 31 日，我們的產險固定到期投資組合（含現金及約當現金）存續期間為 3.1 年。2026 年第一季產險投資組合中的另類投資年化報酬率略為負值，去年第一季則為 1.8%。

A number of factors contributed to the lower returns, with the most significant impact attributable to a $13 million mark-to-market loss on our $133 million investment in the CLOs that AFG manages.

多項因素導致報酬率較低，其中影響最顯著的是我們對 AFG 所管理之 CLO 的 1.33 億美元投資，產生 1,300 萬美元的按市價評價（mark-to-market）損失。

The mark-to-market loss reflects a deterioration in the broadly syndicated loan market in the first quarter of 2026.

該按市價評價損失反映 2026 年第一季廣泛聯貸（broadly syndicated loan）市場的惡化。

Longer term, we continue to remain optimistic regarding the prospects of attractive returns from our overall alternative investment portfolio, with an expectation of annual returns averaging 10% or better.

從較長期來看，我們仍對整體另類投資組合取得具吸引力報酬的前景保持樂觀，並預期年化報酬平均可達 10% 或更高。

Recently, there's been an increased focus on insurers' exposure to private credit. AFG has direct private credit exposure, which we define as direct lending to private companies, approximating $250 million, which represents 1.5% of total investments.

近期市場對保險公司在私募信貸（private credit）方面的曝險關注度提高。AFG 具有直接私募信貸曝險（我們將其定義為對私人公司的直接放款），約為 2.5 億美元，占總投資的 1.5%。

We also have indirect private credit exposure via investments, which are almost exclusively investment-grade-rated and benefit from significant structural subordination.

我們也透過投資持有間接私募信貸曝險，且幾乎全部為投資級評等，並受惠於顯著的結構性次順位（structural subordination）。

We own investment-grade-rated bonds issued by BDCs and private credit funds aggregating approximately $800 million, which represent less than 5% of total investments.

我們持有由 BDC 與私募信貸基金發行、合計約 8 億美元的投資級評等債券，占總投資比重低於 5%。

In addition, we own AAA-rated middle market CLO tranches as disclosed in our supplement. We believe that even in a severely adverse economic environment, the significant structural subordination in these securities provide meaningful protection against any material risk of loss.

此外，如我們補充資料所揭露，我們持有 AAA 評等的中型市場（middle market）CLO 分層。我們相信，即使在極度不利的經濟環境下，這些證券中顯著的結構性次順位仍能對任何重大損失風險提供實質保護。

As of March 31, 2026, the market value of our direct and indirect exposure to private credit is approximately equal to cost.

截至 2026 年 3 月 31 日，我們直接與間接私募信貸曝險的市值約等於成本。

In April of 2026, AFG reached definitive agreements to sell the Charleston Harbor Resort and Marina. Subject to receipt of necessary third-party approvals and satisfaction of customary closing conditions, the transaction is expected to close in the second or third quarter of 2026. AFG currently expects to recognize a pretax core operating gain of approximately $125 million on the sale. This transaction was not contemplated in AFG's original business plan assumptions. Please turn to Slide 7, where you'll find a summary of AFG's financial position at March 31, 2026.

2026 年 4 月，AFG 已達成出售 Charleston Harbor Resort and Marina 的最終協議。在取得必要的第三方核准並滿足慣常交割條件後，該交易預計於 2026 年第二季或第三季完成交割。AFG 目前預期將就該出售認列約 1.25 億美元的稅前核心營運收益。此交易並未納入 AFG 原始商業計畫的假設。請翻到第 7 頁投影片，您將看到截至 2026 年 3 月 31 日 AFG 財務狀況摘要。

During the quarter, we returned nearly $260 million to our shareholders, including $60 million in share repurchases, a $1.50 per share special dividend and our $0.88 per share regular quarterly dividend.

本季我們向股東返還近 2.6 億美元，包括 6,000 萬美元的庫藏股回購、每股 1.50 美元的特別股利，以及每股 0.88 美元的例行季度股利。

We expect our operations to continue to generate significant excess capital throughout the remainder of 2026, which provides ample opportunity for acquisitions, special dividends or share repurchases. We evaluate the best alternatives for capital deployment on a regular basis. We continue to view total value creation, as measured by growth in book value plus dividends, as an important measure of performance over the long term. For the three months ended March 31, 2026, AFG's growth in book value per share excluding AOCI plus dividends was 3.1%.

我們預期在 2026 年剩餘期間，營運將持續產生可觀的超額資本，為併購、特別股利或股票回購提供充足機會。我們會定期評估資本配置的最佳替代方案。我們仍將以帳面價值成長加上股利所衡量的總價值創造，視為長期重要的績效衡量指標。截至 2026 年 3 月 31 日止三個月，AFG 每股帳面價值（排除 AOCI）成長加上股利為 3.1%。

Our strong operating results, coupled with effective capital management and our entrepreneurial, opportunistic culture and disciplined operating philosophy, enable us to continue to create value for our shareholders.

我們強勁的營運成果，加上有效的資本管理，以及我們具創業家精神、把握機會的文化與嚴謹的營運理念，使我們得以持續為股東創造價值。

I'll now turn the call over to Carl to discuss the results of our P&C operations.

現在我把電話會議交回 Carl，請他說明我們產險（P&C）營運的業績。

Thanks, Craig. Please turn to Slides 8 and 9 of the webcast, which include an overview of our first quarter results. Our Specialty Property and Casualty businesses are off to a strong start this year, producing a 66% year-over-year increase in underwriting profit.

謝謝你，Craig。請翻到網路直播第 8 與第 9 頁投影片，其中包含我們第一季業績概覽。我們的專業產險（Specialty Property and Casualty）業務今年開局強勁，承保利潤年增 66%。

Looking at a few details, you'll see on Slide 8 that our Specialty Property and Casualty insurance businesses produced a strong 90.3% combined ratio in the first quarter of 2026, an improvement of 3.7 points from the 94.0% reported in the first quarter of 2025. First quarter 2026 results include 2.2 points from catastrophe losses, compared to 4.5 points in the first quarter of 2025. First quarter 2026 results benefited from 4.4 points of favorable prior year reserve development, compared to 1.3 points in the first quarter of 2025. Each of our Specialty Property and Casualty groups reported higher year-over-year underwriting profit. First quarter 2026 gross and net written premiums were 6% and 3% higher, respectively, than the comparable period in 2025. We continued to benefit from the diversification across our 36 businesses and achieved premium growth in the vast majority of them as a result of a combination of new business opportunities, a good renewal rate environment, and increased exposures while maintaining discipline and focusing on underwriting profitability.

從幾個細節來看，您會在第 8 張投影片看到，我們的專業財產與意外險（Specialty Property and Casualty）保險業務在 2026 年第一季產生了強勁的 90.3% 綜合比率，較 2025 年第一季報告的 94.0% 改善 3.7 個百分點。2026 年第一季的結果包含 2.2 個百分點的巨災損失，相較之下 2025 年第一季為 4.5 個百分點。2026 年第一季的結果受惠於 4.4 個百分點的有利前期年度準備金發展，相較之下 2025 年第一季為 1.3 個百分點。我們各個專業財產與意外險事業群均回報年對年承保利潤提升。2026 年第一季的毛簽單保費與淨簽單保費分別較 2025 年同期高出 6% 與 3%。我們持續受惠於橫跨 36 項業務的多元化，並在其中絕大多數業務中實現保費成長，這是新業務機會、良好的續保費率環境，以及曝險增加等因素的綜合結果，同時我們維持紀律並聚焦於承保獲利能力。

Average renewal rates across our Property and Casualty Group, excluding workers' comp, were up approximately 5% for the quarter, that was in line with the previous quarter. Average renewal rates including workers' comp were up approximately 3% overall. We have reported overall renewal rate increases for 39 consecutive quarters and we believe we're achieving overall renewal rate increases that enable us to meet or exceed our targeted returns.

我們財產與意外險事業群（不含勞工補償）本季平均續保費率約上升 5%，與上一季一致。包含勞工補償在內的平均續保費率整體約上升 3%。我們已連續 39 個季度回報整體續保費率上升，並且我們相信，我們所達成的整體續保費率上升幅度，使我們能夠達到或超越我們的目標報酬。

Now I'd like to turn to Slide 9 to review a few highlights from each of our Specialty Property and Causality business groups. Details are included in our earnings release, so I'm going to focus just on summary results here.

接下來我想轉到第 9 張投影片，回顧我們各個專業財產與意外險業務群的一些重點。詳細內容已包含在我們的財報新聞稿中，因此我在此僅聚焦於摘要結果。

The businesses in the Property and Transportation Group achieved an excellent 87.6% calendar year combined ratio overall in the first quarter of 2026, an improvement of 4.9 points from the 92.5% reported in the comparable 2025 period.

財產與運輸事業群的各項業務在 2026 年第一季整體達成優異的 87.6% 日曆年度綜合比率，較 2025 年同期報告的 92.5% 改善 4.9 個百分點。

Nearly all the businesses in this group reported higher year-over-year profitability, led by our agricultural and transportation businesses.

此事業群中幾乎所有業務均回報年對年獲利能力提升，其中以我們的農業與運輸業務表現領先。

First quarter 2026 gross and net written premiums in this group were 11% and 6% higher than the comparable prior year period. The increase is primarily attributable to growth in our crop insurance products with higher premium cessions, along with new business opportunities, higher exposures and a favorable rate environment in several of our transportation businesses.

本事業群 2026 年第一季的毛簽單保費與淨簽單保費分別較前一年度同期高出 11% 與 6%。增幅主要歸因於我們作物保險產品的成長（伴隨較高的保費分出），以及在多項運輸業務中出現的新業務機會、較高的曝險與有利的費率環境。

Overall rates in this group increased approximately 6% on average in the first quarter of 2026. Our commercial auto businesses produced a solid underwriting profit in the first quarter. After 15 years of rate increases, continual refinement of underwriting and claims routines and investments in our loss control and risk management practices, we're seeing progress in commercial auto liability. And I'm especially pleased to report a small underwriting profit in commercial auto liability for the quarter. We still have more work to do and remain focused on achieving rate in excess of prospective loss ratio trends. In fact, our rates in this line were up approximately 14% in the first quarter.

本事業群在 2026 年第一季的整體費率平均約上升 6%。我們的商用車險業務在第一季產生穩健的承保利潤。在經歷 15 年的費率上調、持續精進承保與理賠流程，以及投資於損失控制與風險管理實務之後，我們在商用車責任險方面正看到進展。我也特別高興地報告，本季商用車責任險出現小幅承保利潤。我們仍有更多工作要做，並將持續專注於達成高於預期損失率趨勢的費率。事實上，本產品線在第一季的費率約上升 14%。

And taking an early look at crop insurance, industry estimates for the 2026 planted acreage for corn and soybeans overall are generally unchanged from 2025 levels, and planting progress is ahead of historical averages. Generally speaking, for the vast majority of our insured crops, the corn planting window runs from mid-April through the end of May, and the soybean planting window runs from late April to the end of June. It is really early in the growing season. Current commodity futures for corn and soybeans are trading about 7% and 5% higher, respectively, than 2026 spring discovery prices. Our crop results for 2026 will depend on the harvest yields and prices in the second half of this year. Now the businesses in our Specialty Casualty Group achieved a 95.8% calendar year combined ratio overall in the first quarter, an improvement of 1.8 points from the 97.6% reported in the comparable period in 2025.

再來先初步看看作物保險，產業對 2026 年玉米與黃豆整體播種面積的估計大致與 2025 年持平，且播種進度領先歷史平均。一般而言，就我們承保的絕大多數作物而言，玉米的播種期從 4 月中旬到 5 月底，黃豆的播種期從 4 月下旬到 6 月底。目前仍是生長季非常早期的階段。玉米與黃豆的現行商品期貨價格，分別較 2026 年春季發現價格（spring discovery prices）高出約 7% 與 5%。我們 2026 年的作物結果將取決於今年下半年的收成產量與價格。接著，我們專業意外險事業群的各項業務在第一季整體達成 95.8% 日曆年度綜合比率，較 2025 年同期報告的 97.6% 改善 1.8 個百分點。

First quarter 2026 gross and net written premiums both increased 2% when compared to the same prior year period. Growth from new business opportunities and higher renewals in our targeted markets and workers' compensation businesses were partially offset by heightened competitive conditions in our excess and surplus lines business.

2026 年第一季的毛簽單保費與淨簽單保費相較於前一年度同期均增加 2%。我們在目標市場與勞工補償業務中，新業務機會帶來的成長與較高的續保，部分被我們超額與剩餘線（excess and surplus lines）業務中更為激烈的競爭環境所抵銷。

Excluding our workers' comp businesses, renewal rates for this group were up approximately 6% in the first quarter, consistent with the prior quarter. Pricing in this group, including workers' comp was up about 3%. Now in the Specialty Financial Group, we continued to achieve excellent underwriting margins and reported an exceptional 80.0% calendar year combined ratio for the first quarter of 2026, an improvement of 7.0 points from the comparable period in 2025.

若排除勞工補償業務，本事業群第一季的續保費率約上升 6%，與上一季一致。包含勞工補償在內，本事業群的定價約上升 3%。接著在專業金融事業群方面，我們持續達成優異的承保利差，並在 2026 年第一季回報卓越的 80.0% 日曆年度綜合比率，較 2025 年同期改善 7.0 個百分點。

Gross and net written premiums in this group increased by 6% and 1%, respectively, in the 2026 first quarter compared to the same 2025 period, primarily due to growth in our lender services businesses. Net written premiums were tempered by our decision to cede more of the coastal-exposed property business in our financial institutions business beginning in the second quarter of last year.

本事業群在 2026 年第一季的毛簽單保費與淨簽單保費，分別較 2025 年同期增加 6% 與 1%，主要由我們放款人服務（lender services）業務的成長所帶動。自去年第二季起，我們決定在金融機構業務中分出更多沿海曝險的財產業務，因而使淨簽單保費的增幅受到抑制。

Renewal pricing in this group was up about 1% in the first quarter of 2026, consistent with the prior quarter and reflecting the strong margins overall earned on these businesses.

本事業群在 2026 年第一季的續保定價約上升 1%，與上一季一致，並反映這些業務整體所賺取的強勁利差。

Craig and I are proud of our proven track record of long-term value creation, and we feel AFG is well positioned to continue to build long-term value for our shareholders for the remainder of this year and beyond.

Craig 和我以我們經證實的長期價值創造紀錄為傲，我們也認為 AFG 已具備良好定位，能在今年剩餘時間及未來持續為股東創造長期價值。

We will now open lines for a Q&A portion of today's call and Craig and Brian and I would be happy to respond to your questions.

我們現在將開放電話線進入今天會議的問答環節，Craig、Brian 和我都很樂意回覆各位的問題。

(Operator Instructions) Thank you. The first question comes from Hristian Getsov with Wells Fargo.

（接線員指示）謝謝。第一個問題來自 Wells Fargo 的 Hristian Getsov。

Hi, good morning. My first question is on the marina sale. Can you quantify what the yield or NII contribution was from that asset as we think about revising the go-forward NII? And any specific plans you could provide for the use of the proceeds once the sale is completed?

嗨，早安。我第一個問題是關於碼頭（marina）出售案。就我們思考調整未來的淨投資收益（NII）而言，您能否量化該資產的殖利率或對 NII 的貢獻？另外，一旦出售完成，對於出售所得款項的用途是否有任何具體規劃可以分享？

Yes. Brian, you might have exactly what's reported in the financials. Last year, we did about $16 million of NOI on the property.

好的。Brian，你可能有財報中所揭露的確切數字。去年，該不動產的 NOI 約為 1,600 萬美元。

Yes. If you think about how the proceeds allow us to invest the $125 million estimated pretax gain, we're going to have more than sort of triple the cost basis to reinvest. If you think of it that way, to replace that income, just investing sort of our normal returns, I think we'll sort of replace the investment income depending what we do with the money, but just reinvesting that proceeds at, say, 5% or 6% would replace the income from the property.

是的。如果你思考這筆出售所得如何讓我們去投資約 1.25 億美元的預估稅前收益，我們將有超過約三倍的成本基礎可供再投資。若以這種方式來看，為了替代那筆收入，只要以我們一般的報酬水準去投資，我認為我們大致可以替代該投資收益，這取決於我們如何運用資金；但若只是把出售所得以例如 5% 或 6% 的報酬率再投資，就能替代該不動產所帶來的收入。

Yes. I'm doing a kind of pro forma, I think it really depends upon what we do with the cash. Half of the asset is owned in the parent company, half is owned in the P&C business. I mean, if we repurchase shares, you get one answer. If you just invest in bonds, you get a different answer. But -- or if we invest in our business earning high-teens returns on capital. So the question is what do we use the proceeds for. I think there's some opportunities for us to redeploy that capital and have it not be dilutive.

是的。我在做一個類似備考（pro forma）的推估，我認為這真的取決於我們如何運用現金。該資產有一半由母公司持有，另一半由產險（P&C）業務持有。我的意思是，如果我們回購股票，會得到一種答案；如果只是投資於債券，會得到不同的答案。或者——如果我們投資於我們的業務並賺取資本的高十幾％報酬。因此問題在於我們要把出售所得用在哪裡。我認為我們有一些機會可以重新部署這筆資本，並使其不具稀釋性。

Got it. Thank you. And then for my second question, I noticed you pulled the comment from the press release that the P&C pricing was ahead of loss trend. Can you talk through where pricing is relative to the trend now? And was that comment in prior periods primarily on the pricing including comp, which I think was down a point quarter-over-quarter or it also applies to the pricing metric ex comp, which was stable.

了解，謝謝。那我的第二個問題是，我注意到你們在新聞稿中拿掉了「P&C 定價領先於損失趨勢」這段評論。你能談談目前定價相對於趨勢的位置嗎？另外，那段評論在先前期間主要是指包含工傷險（workers' comp）的定價嗎？我記得工傷險的定價季對季下降了 1 個百分點；還是也適用於不含工傷險（ex comp）的定價指標（該指標維持穩定）？

Yes. I'm very pleased with our pricing results in the first quarter. Outside of workers' comp, really, the quarter price increases for each of the segments were in line with the fourth quarter. Workers' comp pricing was down around 3% in the first quarter. The good news along with that is, when you look at the loss ratio trends in our workers' comp book, they continue to be very benign, and in some cases, positive.

是的。我對我們第一季的定價成果非常滿意。除了工傷險之外，各個分部的季度價格上調幅度基本上都與第四季一致。工傷險第一季的定價約下降 3%。好消息是，當你看我們工傷險業務的損失率趨勢時，仍然非常溫和，有些情況甚至是正向的。

And our workers' comp results continue to be excellent in the first quarter. So actually, very pleased. I think overall, it's probably good news. When almost all of our businesses are earning the targeted returns, it allows us potentially to be more competitive and just cover loss ratio trends, not necessarily exceed them. Now that said, in certain businesses where we still have some work to do, as I mentioned, commercial auto liability, we'd like to see that continue to make a bigger underwriting profit. We're taking a rate that's in excess of prospective loss ratio trends. I think the same is true in Specialty Casualty with our excess liability and umbrella business, where we're getting price that continues to be very strong. So I'm very pleased with our first quarter pricing results.

而且我們工傷險第一季的表現依然非常出色。所以其實我非常滿意。我認為整體來看，這可能是好消息。當我們幾乎所有業務都能賺到目標報酬時，就可能讓我們更具競爭力，只需要覆蓋損失率趨勢，而不一定要超過它們。不過話說回來，在某些仍需要努力的業務上，如我提到的商用車責任險（commercial auto liability），我們希望它能持續帶來更大的核保利潤。我們採取的費率是高於前瞻性損失率趨勢的。我認為專業責任（Specialty Casualty）中的超額責任與雨傘責任（excess liability and umbrella）也是如此，我們取得的價格仍然非常強勁。所以我對第一季的定價成果非常滿意。

Got it.

了解。

Hristian to go back to your first question on Charleston. So Brian, just is giving me the amount that was expected to be reported in 2026. I gave you an NOI number of $16 million. The amount that we had in our plan from Charleston was $12.3 million, so it must be a depreciation that accounts for the difference.

Hristian，回到你第一個關於 Charleston 的問題。Brian 剛給我原本預期會在 2026 年入帳（reported）的金額。我給你的 NOI 數字是 1,600 萬美元。我們計畫中 Charleston 的金額是 1,230 萬美元，所以差額應該是折舊造成的。

Got it. Thank you for that. And then, I guess, just sticking with the alt return. So originally, when you laid out your business plan assumption, you were looking for 8% for the full year. Does the first quarter result change that perception, or do you expect like a meaningful acceleration as we go into the back half?

了解，謝謝。然後我想繼續問替代投資報酬（alt return）。最初你們提出商業計畫假設時，全年目標是 8%。第一季的結果是否改變你們的看法？還是你們預期在下半年會有明顯加速？

Yeah, I would say given the start to the year, 8% is probably an aggressive number. We give assumptions that go into our initial plan, but don't intend to update those during the year. Certainly, our expectation is for better performance from the alt portfolio for the balance of the year.

是的，我會說以今年的開局來看，8% 可能是個偏積極的數字。我們會提供納入初始計畫的假設，但不打算在年內更新這些假設。當然，我們仍預期替代投資組合在今年剩餘期間會有更好的表現。

Thank you.

謝謝。

Thank you. And the next question comes from Andrew Anderson with Jefferies.

謝謝。下一個問題來自 Jefferies 的 Andrew Anderson。

Hey, good afternoon. Could you walk through some of the drivers of the expense ratio increase? Maybe how much of that is structural versus timing from investments in tech or growth initiatives? Or how much of it might be on contingent commissions?

嗨，下午好。你能說明一下費用率上升的一些驅動因素嗎？例如其中有多少是結構性因素、多少是因為在科技或成長計畫上的投資所造成的時點影響？或者其中有多少可能與或有佣金（contingent commissions）有關？

Sure, Andrew. This is Brian. So if you look across the segments, there's different things driving the different segments. Overall, we continue to invest in our future with IT initiatives around customer experience, IT security and data analytics. So that does have some upward pressure there, but that's relatively modest.

當然，Andrew。我是 Brian。若從各分部來看，不同分部有不同的驅動因素。整體而言，我們持續投資未來，包括圍繞客戶體驗、IT 資安與資料分析的 IT 計畫。因此確實帶來一些向上的壓力，但幅度相對溫和。

If you look at Specialty Casualty, the expense ratio is up a little bit. Some of that is mix of business, and some of that is in our excess and surplus businesses, we're getting slightly lower ceding commissions from reinsurers.

如果看專業責任（Specialty Casualty），費用率小幅上升。其中一部分是業務組合（mix of business）所致，另一部分是在我們的超額及剩餘線（excess and surplus）業務中，我們從再保人取得的分出佣金（ceding commissions）略低。

So some ceding commissions reduced underwriting expenses, getting a little bit lower ceding commission has modest negative impact on the expense ratio in Casualty, but we still feel really good about those reinsurance contracts and the results overall from those businesses.

因此，分出佣金原本會降低核保費用；分出佣金略低，對責任險的費用率有溫和的負面影響。但我們仍然對這些再保合約以及這些業務的整體結果感到非常放心。

And then in the Financial segment, where you see the biggest uptick, that's kind of a bit of good news in that our financial institutions business, some of the commissions that we paid to brokers and agents vary with the profitability of the business. So with that business being very profitable for another quarter in a row, that shows improvement in the loss ratio, but then in the expense ratio because of the higher commission, the contingent commission goes up and makes that expense ratio go up a little bit.

然後在金融分部（Financial segment），你看到的上升幅度最大，這某種程度上算是好消息，因為我們的金融機構業務中，支付給經紀人與代理人的部分佣金會隨業務獲利狀況而變動。由於該業務連續第二個季度非常獲利，這反映在損失率改善；但因為佣金更高，費用率也會上升——或有佣金提高，使費用率小幅上揚。

Thanks. And then on consolidated premium growth, I think the business plan was for 3% to 5% for full year. It sounds like crop pricing is early reads are positive. I don't know if you could share what you were kind of thinking in terms of consolidated full year planned growth relative to crop insurance, but it seems like it's starting out better than perhaps the last couple of years from a pricing perspective?

謝謝。再問一下合併保費成長，我記得商業計畫是全年 3% 到 5%。聽起來農作物（crop）定價的初步觀察是正面的。我不確定你是否能分享一下，在農作物保險的影響下，你們對合併全年計畫成長原本的想法是什麼；但從定價角度看，似乎比過去幾年開局更好？

Yeah, I think we would see -- when you look at where the spring discovery prices end up, some went up a little bit, some went down a little bit on corn and soybeans. We think that when all is said and done, our gross written premium is going to be flat. And because we're -- due to some changes in our quota share, our net written premiums will be up nicely. So that's kind of what the growth perspective is there in crop.

是的，我想我們會看到——當你看春季發現價格（spring discovery prices）最後落點時，玉米與黃豆有些略升、有些略降。我們認為最終我們的簽單毛保費（gross written premium）會持平。而由於我們的配額分保（quota share）有一些變動，我們的簽單淨保費（net written premiums）將會有不錯的成長。所以這就是農作物業務在成長面向的看法。

Thank you.

謝謝。

Thank you. And our next question is going to come from Michael Zaremski with BMO Capital Markets.

謝謝。下一個問題來自 BMO Capital Markets 的 Michael Zaremski。

Hey, thanks. On the Specialty Casualty segment, if we kind of look at the underlying loss ratio, good result. I think there is some kind of positive seasonality there. Did that come through in a big way? I guess I'm trying to tease out whether you all feel better about kind of turning the corner on social inflationary lines and starting to see some maybe directionally better loss ratios on those lines in this segment.

嗨，謝謝。關於專業責任（Specialty Casualty）分部，如果我們看基礎損失率（underlying loss ratio），結果不錯。我想其中可能有一些正向的季節性因素。這次是否有很明顯的反映？我想釐清的是，你們是否覺得在社會通膨相關險種上正在走出谷底，並開始在這個分部看到那些險種的損失率有方向性改善？

Yeah. I mean, I do think we do feel better. I wouldn't make too much out of any one quarter. We always, kind of caution, you can have some variability quarter-by-quarter. But yes, I think we are more positive. I mean that said, as I just mentioned, in lines like excess liability, where social inflation creates loss ratio trends that are higher, we're still very much focused on pricing that either equal or exceeds the loss ratio trends.

是的。我確實認為我們感覺更好，但我不會對單一季度解讀過多。我們一向提醒，季度之間可能會有一些波動。不過是的，我們的確更偏正向。也就是說，如我剛提到的，在像超額責任這類社會通膨會推升損失率趨勢的險種上，我們仍非常專注於定價，讓它至少等同或高於損失率趨勢。

So I think in past conference calls, I talked about being through pretty much the re-underwriting and restructuring in excess liability on limits reductions and our nonprofit business, getting off business. And both our nonprofit business and our excess liability umbrella businesses are showing growth in the first quarter. So happy to see that there is a positive trend on the growth side there also.

所以我想在過去的法說中，我談到我們基本上已完成超額責任的重新核保與重整，包括降低承保限額（limits reductions）以及退出我們的非營利組織業務（nonprofit business）。而我們的非營利組織業務與超額責任／雨傘責任業務在第一季都呈現成長。所以也很高興看到成長面向同樣出現正向趨勢。

Got it. Switching gears, that’s helpful, to share repurchases, a bit higher than expected, although I see the share count not too different than expected, so maybe there was some movement there. Anything we should read into on share purchases that you might be leaning into a bit more at current valuations or just normal kind of activity?

了解。換個話題，這很有幫助。關於庫藏股回購（share repurchases），金額比預期高一些，雖然我看到股數（share count）與預期差不多，所以可能中間有些變動。我們是否需要從回購行為解讀出什麼，例如你們在目前估值下更傾向加大回購，還是只是正常的操作活動？

Yes. This is Craig. So we have a lot of excess capital currently. We expect to generate a significant amount of additional excess capital for the balance of the year. And we just thought at the prices that we were able to repurchase stock, that was a very good use of some of our excess capital. I think we paid a little over $127 a share and felt that was a very good value.

是的。我是 Craig。我們目前有大量超額資本（excess capital）。我們預期在今年剩餘期間還會產生相當可觀的額外超額資本。我們只是認為，以我們能回購股票的價格來看，使用部分超額資本回購是非常好的運用。我想我們每股支付略高於 127 美元，並認為那是非常好的價值。

Got it. And maybe just stepping back in terms of the competitive environment, I think one of the main questions we continue to get is the industry is earning very healthy returns. Should we expect kind of the competitive levels to continue to incrementally increase as the year plays out? It feels like that's direction, kind of the right direction, unless you all feel like there may be some levels of – some lines have kind of reached the floor on how much further they can kind of change in price. Thanks.

了解。那也許從競爭環境的角度稍微拉遠來看，我認為我們持續被問到的主要問題之一是，整個產業目前正賺取非常健康的報酬。我們是否應該預期，隨著今年進行，競爭程度會逐步加劇？感覺這是走向、算是正確的方向，除非你們覺得可能有些水準——某些產品線在價格還能再變動多少方面，已經差不多到達底部了。謝謝。

Yes. I think it's more status quo. I think what we're seeing in the first quarter is what we're going to see for the rest of the year. And as you mentioned, I mean, we're in 30-plus different businesses and competitive conditions are different in each. And there are some businesses like commercial auto and commercial liability where the industry is still feeling the pain. And I think where we're getting our shop in order, it could provide some nice opportunities for a little bit better growth for us there.

是的。我認為大致上會維持現狀。我覺得我們在第一季看到的情況，就是今年剩餘時間會看到的情況。正如你提到的，我們在 30 多個不同的業務中經營，而各業務的競爭狀況都不一樣。有些業務像商用車險與商業責任險，整個產業仍在承受痛苦。我認為，隨著我們把自身的營運整頓到位，這些領域可能會為我們帶來一些不錯的機會，讓成長表現更好一些。

Clearly, in things like excess liability, everybody is still challenged by the loss ratio trends there. So I think -- I was kind of happy to see some disruption here among fronting companies here recently and around issues around casualty.

很明顯，在超額責任險這類業務上，大家仍然受到那裡損失率趨勢的挑戰。所以我想——我其實還滿樂見最近在承保前置（fronting）公司之間出現一些擾動，以及圍繞意外險（casualty）相關議題的狀況。

I've always been pretty skeptical about how many of the MGAs or MGUs or the private equity capital coming behind and reinsurers coming behind a lot of these entities writing volatile casualty business.

我一直對於有多少 MGA、MGU，或是背後有私募股權資金、以及再保險人支持的這些實體，去承作波動性很高的意外險業務，抱持相當懷疑的態度。

If anything, I think those that have been pricing below us and commercial auto liability and excess liability and some of the more volatile lines, I actually think there's probably going to be more problems that are going to surface over the next 12 months rather than status quo, at least in some of the more longer-tail casualty lines

如果要說的話，我認為那些在商用車責任險、超額責任險以及一些波動性較高的產品線上，定價低於我們的同業，未來 12 個月可能會浮現更多問題，而不只是維持現狀——至少在某些尾端較長的意外險產品線上是如此。

Understood. Appreciate the color.

了解。感謝提供這些補充說明。

Thank you. And our next question will come fromPaul Newsome with Piper Sandler.

謝謝。下一個問題來自 Piper Sandler 的 Paul Newsome。

This is Cam on for Paul. I know you mentioned a little bit of pain in commercial auto, and we've certainly seen some companies dealing with that this quarter and in some quarters in the past. I'm just curious if the trend on inflation and severity in commercial auto, if you're seeing any acceleration in that trend? Or is it more so relatively stable than what we've seen in the past couple of quarters? Thanks.

我是代 Paul 發問的 Cam。我知道你提到商用車險有一些壓力，我們也確實看到一些公司在本季以及過去幾季面臨這個問題。我想請教的是，在商用車險的通膨與損失嚴重度趨勢方面，你們是否看到這個趨勢有加速？還是相較於過去幾季所見，算是相對穩定？謝謝。

I think it's been pretty consistent. Really, it's been consistent for years being high single digit, even low double digit in some years. We're really pleased that, again, I'm pleased after having to be on the conference calls over the last eight years, telling you I want to get commercial auto liability to an underwriting profit. I'm happy to report, we've done that in the first quarter. So when you look at our overall commercial auto results then earning really solid returns at this point with us getting the commercial auto liability to a small underwriting profit

我認為一直都相當一致。其實多年來都很一致，維持在高個位數，某些年份甚至到低雙位數。我們非常滿意——同樣地，回想過去八年我在電話會議上一直跟各位說，我希望把商用車責任險做到承保獲利；我很高興可以報告，我們在第一季做到了。所以當你看我們整體商用車險的結果時，在我們把商用車責任險做到小幅承保獲利之後，目前我們的商用車險整體正賺取相當穩健的報酬。

Great, thanks. That's all I have. Thank you.

很好，謝謝。我的問題就這些。謝謝。

Thank you. And our next question is going to come from Meyer Shields with Keefe, Bruyette, & Woods.

謝謝。下一個問題來自 Keefe, Bruyette, & Woods 的 Meyer Shields。

Great. Thanks so much. I just want to stick with the commercial auto side, if I can, because it is impressive where you've come. When you talk about, Carl, when you talk about there being more work to do, is that rate or is that other underwriting actions within the book?

很好，謝謝。我想如果可以的話，我想繼續聚焦在商用車險，因為你們走到現在確實令人印象深刻。Carl，當你提到還有更多工作要做時，那是指費率（rate），還是指在這個業務組合裡的其他承保動作？

No, I think it has to do with continuing to take rate that exceeds loss ratio trends in order to get the commercial auto liability from a small underwriting profit to a meaningful underwriting profit.

不，我認為是指要持續採取高於損失率趨勢的費率調整，才能把商用車責任險從小幅承保獲利提升到有意義的承保獲利。

Okay. That's helpful. I just didn’t know if there's anything else going on. And then Brian, one follow-up question on Specialty Financial. I totally get the variable compensation, but last year's loss ratio in this segment was actually lower and the expense ratio was also lower. So I'm wondering what else is going on underneath the surface.

好的，這很有幫助。我只是想確認是否還有其他因素。接著 Brian，我有一個關於 Specialty Financial 的追問。我完全理解變動薪酬的影響，但這個分部去年的損失率其實更低，費用率也更低。所以我想知道，表面之下還有什麼其他因素在發生。

So there are a couple of other things there. One is the commissions that we pay in that business over long periods of time. So the commission, if you had some bad quarters, they kind of roll off and good quarters roll in, it can make the cumulative commission higher.

那裡還有幾個其他因素。其中之一是我們在該業務長期支付的佣金。也就是說，佣金如果遇到一些較差的季度，它們會逐步退出，而較好的季度會逐步納入，這可能會讓累計佣金變得更高。

There's also a mix of business impact there in that some of the other businesses in Financial that run at a higher loss ratio than that financial institutions business also grew this quarter. And I think another thing to look at, too, is those commissions are based on the profitability overall. So if you’re looking at an accident year loss ratio ex cats, cats were higher last year than this year in the Financial segment, so that would have also had an impact on commissions making this year a better year from a including cats perspective.

另外也有業務組合（mix）影響：Financial 之中有些其他業務的損失率高於金融機構那塊業務，而這些業務在本季也成長了。我認為還有一點也值得看：這些佣金是以整體獲利性為基礎計算的。所以如果你看的是事故年度損失率（不含巨災），Financial 分部去年巨災損失比今年高，因此從「包含巨災」的角度來看，這也會影響佣金，使得今年看起來是更好的一年。

Yeah, perfect. Okay, that really helps. Thank you.

是的，完美。好的，這真的很有幫助。謝謝。

And the next question will come from Hristian Getsov with Wells Fargo.

下一個問題來自 Wells Fargo 的 Hristian Getsov。

Hi, thank you. I just have one more follow-up. Any indirect impact on your portfolio that we should think about from the Iran conflict? I’m particularly just thinking about like the huge uptick in fertilizer costs and then just overall inflation acceleration? Like how are you guys thinking about that?

嗨，謝謝。我還有一個追問。伊朗衝突對你們的投資組合是否有任何我們需要考量的間接影響？我特別在想，例如肥料成本大幅上升，以及整體通膨加速。你們是如何看待這些影響的？

Yes. I think we're in good shape so far. I mean, the near-term impact to us is negligible or pretty modest and manageable in that higher fertilizer and fuel costs really don't impact this year much. I think most of the fertilizer was already purchased by farmers, and they're in the process of planting. I think future impact kind of has to do with how long this conflict goes or this war goes on.. But as far as other - in other lines of business, we really have pretty modest exposure.

是的。我認為到目前為止我們的狀況良好。就短期而言，對我們的影響可以忽略或相當有限且可控，因為較高的肥料與燃料成本其實對今年影響不大。我認為大多數肥料農民都已經買好了，而且他們正在播種。未來的影響主要取決於這場衝突或戰爭會持續多久。但就其他——在其他業務線方面，我們的曝險其實相當有限。

Makes sense. Thank you.

了解。謝謝。

(Operator Instructions) I am showing no further questions at this time. I will now turn the call back over to Diane for closing remarks.

（接線員指示）目前沒有其他提問。我現在把電話交回 Diane 作結語。

Thank you, Michelle, and thank you all for joining us this morning and for your questions. We look forward to connecting with you again when we share results at the end of the second quarter. We hope you all have a great day.

謝謝你，Michelle，也謝謝各位今天早上參與並提出問題。我們期待在第二季末分享業績結果時，再次與各位交流。祝各位有美好的一天。

This concludes today's conference call. Thank you for participating, and you may now disconnect.

今天的電話會議到此結束。感謝各位參與，現在可以掛線。