CNA Financial Corp (CNA) 2024 Q1 法說會逐字稿

Ladies and gentlemen, good day and welcome to the CNA First Quarter 2024 Earnings Conference Call. (Operator Instructions) As a reminder, today's conference is being recorded.

女士們、先生們，大家好，歡迎參加 CNA 2024 年第一季財報電話會議。 （操作員指示）提醒一下，今天的會議正在被錄音。

At this time, I'd like to turn the call over to Ralitza Todorova, VP of Investor Relations & Rating Agencies, for opening remarks and introduction of today's speakers. Please go ahead.

現在，我想將電話轉給投資者關係和評級機構副總裁 Ralitza Todorova，請她致開幕詞並介紹今天的演講者。請繼續。

Thank you, Jamie. Good morning, and welcome to CNA's discussion of our first quarter 2024 financial results. Our first quarter earnings press release, presentation and financial supplement were released this morning and are available on the Investor Relations section of our website, www.cna.com.

謝謝你，傑米。早安，歡迎參加 CNA 對我們 2024 年第一季財務表現的討論。我們的第一季財報新聞稿、簡報和財務補充資料已於今天上午發布，可在我們網站 www.cna.com 的投資者關係部分查閱。

Speaking today will be Dino Robusto, Chairman and Chief Executive Officer; and Scott Lindquist, Chief Financial Officer. Following their prepared remarks, we will open the line for questions.

今天發言的將是董事長兼執行長 Dino Robusto；以及財務長 Scott Lindquist。在他們發表完準備好的演講後，我們將開放提問專線。

Today's call may include forward-looking statements and references to non-GAAP financial measures. Any forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from the statements made during the call. Information concerning those risks is contained in the earnings press release and in CNA's most recent SEC filings. In addition, the forward-looking statements speak only as of today, Monday, May 6, 2024. CNA expressly disclaims any obligation to update or revise any forward-looking statements made during this call.

今天的電話會議可能包括前瞻性陳述和對非公認會計準則財務指標的引用。任何前瞻性陳述都涉及風險和不確定性，可能導致實際結果與電話會議期間的陳述有重大差異。有關這些風險的資訊包含在收益新聞稿和 CNA 最新的 SEC 文件中。此外，前瞻性陳述僅截至今天（2024 年 5 月 6 日星期一）有效。 CNA 明確表示不承擔更新或修改本次電話會議期間所作任何前瞻性陳述的義務。

Regarding the non-GAAP measures, reconciliations to the most comparable GAAP measures and other information have been provided in our earnings press release, financial supplement and other filings with the SEC.

關於非公認會計準則 (non-GAAP) 指標，我們在收益新聞稿、財務補充文件和向美國證券交易委員會 (SEC) 提交的其他文件中提供了與最可比較的公認會計準則 (GAAP) 指標的對帳及其他資訊。

This call is being recorded and webcast. A replay of the call may be accessed on our website. If you are reading a transcript of this call, please note that the transcript may not be reviewed for accuracy, thus it may contain transcription errors that could materially alter the intent or meaning of the statements.

本次通話正在錄音並進行網路直播。您可以在我們的網站上觀看此通話的重播。如果您正在閱讀本次通話的記錄，請注意，該記錄可能未經準確性審查，因此可能包含轉錄錯誤，這些錯誤可能會嚴重改變陳述的意圖或含義。

With that, I will turn the call over to our Chairman and CEO, Dino Robusto.

說完這些，我將把電話轉給我們的董事長兼執行長 Dino Robusto。

Thank you, Ralitza, and good morning all. In the first quarter, we produced very strong results with excellent profitability, higher investment income, robust top line growth and accelerating rate achievement in our commercial casualty lines as well as strong retention in all segments.

謝謝你，Ralitza，大家早安。在第一季度，我們取得了非常強勁的業績，獲利能力出色，投資收益增加，營業收入成長強勁，商業意外險的費率實現加速，所有部門的保留率也很高。

Core income increased by $30 million in the first quarter to $355 million, our highest first quarter core income on record. The last 2 quarters have produced the largest volume of core income on record for our organization, a testament to our underwriting performance, strong investment returns and overall profitable growth. Net investment income of $609 million pretax increased $84 million year-over-year, with our alternatives portfolio and our fixed income portfolio contributing almost equally to the increased income.

第一季核心收入增加了 3000 萬美元，達到 3.55 億美元，這是我們有史以來第一季核心收入的最高值。過去兩個季度，我們公司的核心收入達到了歷史最高水平，證明了我們的承保業績、強勁的投資回報和整體獲利成長。稅前淨投資收入 6.09 億美元，較上年同期增加 8,400 萬美元，其中另類投資組合和固定收益投資組合對收入成長的貢獻幾乎相同。

The all-in combined ratio was 94.6%, with pretax catastrophe losses of $88 million or 3.8 points of the combined ratio compared to the relatively benign first quarter last year with $52 million or 2.4 points. This year was more in line with our first quarter average of 3.7 points over the last 5 years. Prior period development for P&C overall was favorable by 0.2 points on the combined ratio.

綜合成本率為 94.6%，稅前巨災損失為 8,800 萬美元，佔綜合成本率的 3.8 個百分點，而去年第一季則相對較好，為 5,200 萬美元，佔綜合成本率的 2.4 個百分點。今年與過去五年第一季 3.7 點的平均值更加一致。前期財產和意外險整體發展良好，綜合成本率高出 0.2 個百分點。

Our pretax P&C underlying underwriting gain was over $200 million for the fourth successive quarter with a P&C underlying combined ratio of 91%. This is the 13th consecutive quarter with an underlying combined ratio below 92%. The underlying loss ratio was 60.5%, and the expense ratio was 30.1% in the quarter.

我們的稅前財產與意外險承保所得連續第四個季度超過 2 億美元，財產與意外險綜合成本率為 91%。這是連續第 13 季綜合成本率低於 92%。本季基礎損失率為 60.5%，費用率為 30.1%。

The underlying loss ratio was up a little more than 0.5 point compared to the most recent 4-quarter average. This slight increase was driven mainly by a mix shift within the Commercial segment, which had greater growth in national accounts in recent quarters where the casualty lines carry a higher underlying loss ratio. The remainder is from several puts and takes, including the negative rate pressure for several quarters in management liability lines, which impacts Specialty and, to a lesser degree, International as well.

與最近 4 個季度的平均值相比，基礎損失率略高出 0.5 個百分點。這一小幅成長主要是由於商業部門內部的組合變化所致，該部門在最近幾季的全國帳戶中成長較大，而傷亡險種的潛在損失率較高。其餘部分則來自幾次賣出和賣出，包括管理責任險連續幾季的負利率壓力，這對專業險產生了影響，在較小程度上也對國際險產生了影響。

In the quarter, we continued to achieve strong production performance with 8% growth in gross written premium ex captives and 6% growth in net written premium. Renewal premium change overall was 6%, up 1 point from the fourth quarter. Rate change was up 0.5 point, but still rounds to 4%, and exposure was also up 0.5 point.

本季，我們持續取得強勁的生產業績，扣除自保公司後的總承保保費成長 8%，淨承保保費成長 6%。續保保費整體變動為 6%，較第四季上升 1 個百分點。利率變動上升了 0.5 點，但仍四捨五入為 4%，風險敞口也上升了 0.5 點。

In the U.S., where there has been persistent pressure from social inflation, rate was plus 6% ex work comp; and renewal premium change was plus 8%, which continues to be above our long-run loss cost trends of 6.5% in the U.S. Outside the U.S., long-run loss cost trends in the aggregate are about 1 point lower than in the U.S. as we don't experience the same level of social inflation pressure. So our overall P&C long-run loss cost trend remains between 6% and 6.5%.

在美國，由於社會通膨壓力持續存在，工資率仍為升息 6%（不含工傷補償）；續保保費變化為增加 8%，這仍然高於我們在美國長期損失成本趨勢 6.5% 的水平。在美國以外，整體長期損失成本趨勢比美國低 1 個百分點，因為我們沒有經歷同樣程度的社會通膨壓力。因此，我們的整體財產和意外險長期損失成本趨勢保持在 6% 至 6.5% 之間。

New business was up 5% in the quarter to $529 million with continued strong growth in our Commercial business units, as we achieved throughout 2023. Overall, P&C retention remained high at 85% this quarter, consistent with last quarter.

本季新業務成長 5%，達到 5.29 億美元，商業業務部門持續保持強勁成長，這與我們在 2023 年全年取得的成績一致。總體而言，本季財產和意外險留存率仍保持在 85% 的高位，與上一季持平。

Turning to our 3 business units. The all-in combined ratio for Commercial was 97.6%. Cat losses of $82 million this quarter added 6.8 points to the combined ratio. The underlying combined ratio of 90.8% was a record low and 1 point lower than last year. The underlying underwriting gain of $111 million in Commercial was a record high.

轉向我們的三個業務部門。商業綜合成本率為 97.6%。本季巨災損失達 8,200 萬美元，導致綜合成本率增加 6.8 個百分點。基本綜合成本率為 90.8%，創歷史新低，比去年同期低 1 個百分點。商業險承保收益達 1.11 億美元，創歷史新高。

The underlying loss ratio was 62%, and the expense ratio was 28.2%, the lowest on record. As I mentioned last quarter, the loss ratios for the post-pandemic accident years in the classes of business most impacted by social inflation, med mal, auto, GL and excess casualty, continue to hold up well as we took a conservative approach in those initial loss ratio selections.

基礎損失率為62%，費用率為28.2%，為歷史最低水準。正如我上個季度提到的那樣，受社會通膨、醫療事故、汽車、GL 和超額傷亡影響最大的業務類別中，疫情後事故年度的損失率繼續保持良好，因為我們在最初的損失率選擇中採取了保守的方法。

For the remaining classes in aggregate, we have experienced favorable development from the more recent accident years based on our initial loss ratio picks. Of course, these recent years are still immature, and we will continue to monitor for any emergence over time that deviates from our initial expectations.

總體而言，對於其餘類別，根據我們最初的損失率選擇，我們在最近的事故年份中經歷了良好的發展。當然，最近幾年還不成熟，我們將繼續監測隨著時間的推移出現的任何偏離我們最初預期的情況。

Gross written premium ex captives grew 17% in the quarter, and net written premium growth was 13%. New business grew 18%, and retention improved by 2 points to 85% in the quarter. Renewal premium change in Commercial was 8%, with rate up 6% and exposure increases up 2%. Rate and renewal premium change excluding work comp were 9% and 10%, respectively, continuing to exceed long-run loss cost trends.

本季度，扣除自保公司後的總承保保費增加了 17%，淨承保保費增加了 13%。本季新業務成長了 18%，留任率提高了 2 個百分點，達到 85%。商業續保保費變動為 8%，其中費率上漲 6%，風險敞口增加 2%。不包括工傷賠償的費率和續保保費變化分別為 9% 和 10%，繼續超過長期損失成本趨勢。

An area we have repeatedly highlighted for you is our success at pushing for higher pricing in our U.S. commercial casualty lines. And in the first quarter, commercial auto rate increases were up 14%, excess casualty was up 11% and primary general liability was up mid-single digit with renewal premium change of high single digit due to rising revenues and payrolls. These rate increases are double what they were 6 quarters ago.

我們一再向您強調的一個面向是我們成功推動了美國商業意外險的更高定價。第一季度，由於收入和工資增加，商業汽車保險費率上漲了 14%，超額傷亡保險費率上漲了 11%，主要一般責任險費率上漲了中等個位數，續保費變動為高個位數。此次利率增幅是六個季度前的兩倍。

Our national accounts rate increases are down a few points compared to the fourth quarter, which is mainly a function of quarter-to-quarter variability given the impact individual large accounts can have on the overall rate change. Although still early in the second quarter, we are not seeing that lower trend continue. In work comp, overall renewal premium change is about flat in the quarter with exposure increase offsetting low to mid-single-digit rate decreases.

與第四季度相比，我們的國民帳戶利率增幅下降了幾點，這主要是由於季度間差異造成的，因為個別大額帳戶可能會對整體利率變化產生影響。儘管仍處於第二季初期，但我們並未看到下滑趨勢持續下去。在工傷賠償方面，本季整體續保保費變化基本持平，風險敞口的增加抵消了低至中等個位數的費率下降。

Within Specialty, the all-in combined ratio was 90.7% in the first quarter, including 0.6 points of favorable prior period development, making this 15 straight quarters below 91%. The underlying combined ratio was 91.3% with an underlying loss ratio of 59.2%, and the expense ratio was 31.8%.

在特種業務方面，第一季綜合成本率為 90.7%，其中包括 0.6 個點的良好前期發展，這已是連續 15 個季度低於 91%。基礎綜合成本率為 91.3%，基礎損失率為 59.2%，費用率為 31.8%。

Gross written premium ex captives growth for Specialty was down 1% this quarter, and net written premium growth was up plus 1. We capitalized on some growth opportunities in portions of our health care portfolio, but this was partially offset by our decision to remain prudent in our management liability lines until we see further improvement in the pricing environment.

本季度，專業險扣除自保公司後的總承保保費成長率下降了 1%，而淨承保保費成長率則上升了 1%。我們利用了部分醫療保健產品組合中的一些成長機會，但這被我們決定在定價環境進一步改善之前繼續審慎管理責任險的決定部分抵消。

Within Specialty, rates in aggregate were up plus 2% this quarter, reflecting a 2-point improvement from the fourth quarter. The rate declines in our financial institutions and management liability classes moderated this quarter, and public D&O was only slightly negative, improving in each of the last 3 quarters. Our health care rates continue to improve and are in the high single digits.

在專業領域，本季總體費率上漲了 2%，比第四季提高了 2 個百分點。本季度，我們的金融機構和管理責任類別的利率下降幅度有所緩和，公共 D&O 僅略微為負，並且在過去 3 個季度中均有所改善。我們的醫療保健率持續提高，目前處於較高的個位數。

And the cumulative rate and improved terms and conditions we achieved over the hard market years is allowing us to profitably grow this business again. Our profitable Affinity Programs continue to produce stable rate change in the low- to mid-single-digit range, down slightly this quarter, which is impacted by program mix seasonality. Retention in Specialty remained very strong at 88% for the quarter, and retentions have been at or above 87% for almost 2 straight years.

在艱難的市場環境下，我們實現的累積利率和改善的條款和條件使我們能夠再次實現業務的獲利成長。我們盈利的親和力計劃繼續產生穩定的利率變化，處於低至中等個位數範圍內，本季度略有下降，這是受到計劃組合季節性的影響。本季專業部門的保留率仍然非常高，為 88%，連續近兩年保留率都保持在 87% 或以上。

For International, the all-in combined ratio was 93.3% in the quarter, including $6 million or 2 points of cat losses. The underlying combined ratio was 91.3% with an underlying loss ratio of 58.1%, and the expense ratio was 33.2%. The underlying combined ratio in International has been below 92% for 11 consecutive quarters.

對於國際公司而言，本季綜合成本率為 93.3%，其中包括 600 萬美元或 2 個點的巨災損失。基礎綜合成本率為 91.3%，基礎損失率為 58.1%，費用率為 33.2%。國際業務的基礎綜合成本率已連續 11 季低於 92%。

International gross written premiums were down 6%, and net written premiums were down 4% in the quarter. Similar to the U.S. Specialty actions, we remained prudent in our management liability lines, which limited our new business opportunities. We also had a 2-point impact on retention from our underwriting actions to non-renew our political violence exposure, which we initiated in the fourth quarter.

本季國際毛承保保費下降 6%，淨承保保費下降 4%。與美國專業行動類似，我們在管理責任方面保持謹慎，這限制了我們的新業務機會。我們在第四季啟動的不再續保政治暴力風險的核保行動也對留存率產生了 2 個百分點的影響。

Rates in International at 1% are down 1 point from the fourth quarter. Given the cumulative rate increases and extensive re-underwriting actions we took for the last several years, we expect our International operations to be an increasingly consistent contributor to our overall profitable growth.

國際利率為 1%，較第四季下降 1 個百分點。鑑於過去幾年我們採取的累積費率上調和廣泛的重新核保行動，我們預計我們的國際業務將為我們的整體獲利成長做出越來越持續的貢獻。

And with that, I will turn it over to Scott.

說完這些，我將把麥克風交給史考特。

Thank you, Dino, and good morning, everyone. Core income of $355 million is up 9% compared to the first quarter of last year, leading to a core return on equity of 11.5% and reflects another quarter of strong underwriting and investment results.

謝謝你，迪諾，大家早安。核心營收為 3.55 億美元，較去年第一季成長 9%，核心股本回報率達到 11.5%，反映出本季承保及投資績效再創佳績。

Our P&C expense ratio for the first quarter was 30.1% compared to 30.0% (sic) [30.7%] last year, reflecting higher net earned premium. We tend to have a certain amount of variability quarter-to-quarter in this ratio. For the balance of 2024, we expect higher spend on technology and talent as compared to the quarter just ended. Accordingly, we believe an expense ratio closer to last year's first quarter ratio of 30.7% is a reasonable run rate for the full year.

我們第一季的財產和意外保險費用率為 30.1%，而去年同期為 30.0%（原文如此）[30.7%]，這反映出淨保費收入更高。我們傾向於認為該比率在每個季度之間都會存在一定的變化。對於 2024 年餘下時間，我們預計技術和人才支出將比剛結束的季度更高。因此，我們認為，接近去年第一季 30.7% 的費用率是全年合理的運行率。

The P&C net prior period development impact on the combined ratio was 0.2 points favorable in the current quarter. Favorable development in the Specialty segment was driven by surety and was partially offset by unfavorable development in warranty.

本季度，財產和意外險淨前期發展對綜合比率的影響為 0.2 個百分點。專業領域的良好發展是由保證金推動的，但被保固領域的不利發展部分抵消。

In auto warranty, higher labor rates and car part costs are driving an increase in severity, while higher car prices and interest rates are resulting in lengthier durations of car ownership, which leads to higher frequency of warranty claims. This same dynamic is impacting claims cost in our noninsurance auto warranty business, which were up 3%, while related revenues are flat as compared to 2023 first quarter. You can see these line items in the Specialty results of operations in our financial supplement.

在汽車保固方面，人工費和汽車零件成本的提高導致保固嚴重程度的增加，而汽車價格和利率的提高導致汽車擁有時間的延長，從而導致保固索賠的頻率更高。同樣的動態影響了我們非保險汽車保固業務的索賠成本，該成本上漲了 3%，而相關收入與 2023 年第一季相比持平。您可以在我們的財務補充資料中的專業經營績效中看到這些項目。

For Life & Group, we had core income of $5 million for the first quarter compared to a $3 million core loss for the prior year quarter, reflecting higher earnings from limited partnership investments. Active in-force management risk-mitigation activities continue, including rate filings, benefit-reduction offers and policy buyouts.

對於人壽和團體業務，我們第一季的核心收入為 500 萬美元，而去年同期的核心虧損為 300 萬美元，這反映了有限合夥投資收益的增加。積極的有效管理風險緩解活動仍在繼續，包括費率申報、福利削減優惠和保單買斷。

The current quarter results include a $4 million pretax loss related to $29 million of cash policy buyouts. We expect to continue offering buyouts in 2024 with the impact to earnings from such activities varying quarter-to-quarter, depending on timing and mix of buyout elections.

本季業績包括與 2,900 萬美元現金保單買斷相關的 400 萬美元稅前損失。我們預計將在 2024 年繼續提供收購，此類活動對收益的影響將因收購選擇的時機和組合而逐季度變化。

Our Corporate segment produced a core loss of $22 million in the first quarter compared to an $18 million loss in the first quarter of 2023. Included in the first quarter results is a $5 million after-tax charge related to ongoing office consolidation activities I previewed in our last quarter's earnings call. Looking forward and as previously mentioned, we expect additional office consolidation charges of $7 million pretax in each of the second and third quarters.

我們的企業部門第一季的核心虧損為 2,200 萬美元，而 2023 年第一季的虧損為 1,800 萬美元。第一季業績中包括與我在上一季財報電話會議上預覽的正在進行的辦公室整合活動相關的 500 萬美元稅後費用。展望未來，如前所述，我們預計第二季和第三季的辦公室整合費用將分別增加 700 萬美元（稅前）。

Finally, a reminder that we will be undertaking our annual ground-up review of legacy mass tort exposures during the second quarter, the results of which will be recorded in the Corporate segment.

最後，提醒一下，我們將在第二季對遺留的大規模侵權行為風險進行年度徹底審查，審查結果將記錄在公司部門。

Turning to investments. Total pretax net investment income was $609 million in the first quarter compared to $525 million in the prior year quarter. The increase was driven almost equally by our fixed income and other investments as well as our limited partnership and common stock portfolios. Limited partnerships and common stocks returned a $68 million gain or a 2.9% return in the current quarter compared to a $28 million gain or a 1.3% return in the prior year quarter.

談到投資。第一季稅前淨投資總收入為 6.09 億美元，去年同期為 5.25 億美元。這一成長幾乎同樣受到我們的固定收益和其他投資以及有限合夥和普通股投資組合的推動。有限合夥企業和普通股在本季度獲得了 6,800 萬美元的收益或 2.9% 的回報率，而去年同期的收益為 2,800 萬美元，回報率為 1.3%。

Fixed income and other investments generated $541 million of income, up 9% compared to the prior year quarter. Our fixed income portfolio continues to produce consistent income, which has been increasing as a result of favorable reinvestment rates and strong cash flows from operations. The effective income yield of our consolidated portfolio was 4.7% in the first quarter compared to 4.6% in the prior year quarter.

固定收益和其他投資產生了 5.41 億美元的收入，比去年同期成長 9%。我們的固定收益投資組合繼續產生穩定的收入，由於有利的再投資利率和強勁的經營現金流，收入一直在增加。我們合併投資組合的實際收益率在第一季為 4.7%，而去年同期為 4.6%。

As of the end of the first quarter, reinvestment rates continue to be well above our P&C effective income yield of 4.3% and modestly above our Life & Group portfolio effective income yield of 5.6%. A reminder that the Life & Group portfolio is a longer-duration portfolio with embedded yields more comparable to today's interest rate environment.

截至第一季末，再投資率持續遠高於我們的財產和意外險有效收益率 4.3%，略高於我們的人壽和團體險投資組合有效收益率 5.6%。需要提醒的是，人壽和團體投資組合是期限較長的投資組合，其內含收益率與現今的利率環境更為接近。

Looking ahead, we currently expect income from fixed income and other investments to be about $540 million in the second quarter, which will be a 7% increase from the second quarter of 2023. And for the full year 2024, we currently expect about $2.175 billion or a 5% increase as compared to the full year 2023, which would result in the total portfolio effective yield to approach 4.8% by the end of 2024.

展望未來，我們目前預計第二季固定收益和其他投資的收入約為 5.4 億美元，較 2023 年第二季成長 7%。對於 2024 年全年，我們目前預計收入約為 21.75 億美元，較 2023 年全年增長 5%，這將使總投資組合的有效收益率在 2024 年底接近 4.8%。

At quarter-end, our balance sheet continues to be very solid with stockholders' equity excluding AOCI of $12.2 billion or $45.10 per share, an increase of 2% from year-end 2023 adjusting for dividends. Stockholders' equity including AOCI was $9.7 billion or $35.62 per share. As a result of rising interest rates during the quarter, the net unrealized loss in our fixed income portfolio is now at $2.3 billion as of quarter-end.

截至季末，我們的資產負債表持續保持穩健，不包括 AOCI 的股東權益為 122 億美元或每股 45.10 美元，經股息調整後較 2023 年底增長 2%。包括 AOCI 在內的股東權益為 97 億美元，即每股 35.62 美元。由於本季利率上升，截至季末，我們固定收益投資組合的淨未實現損失已達 23 億美元。

Finally, we ended the quarter with statutory capital and surplus in the Combined Continental Casualty Companies of $10.9 billion, which is flat with year-end 2023. Operating cash flow was strong once again at $504 million for the quarter despite $29 million in long-term care cash policy buyouts during the quarter, reflecting both strong underwriting results and higher earnings from our fixed income portfolio.

最後，本季結束時，聯合大陸傷亡保險公司的法定資本和盈餘為 109 億美元，與 2023 年底持平。儘管本季長期照護現金保單收購金額為 2,900 萬美元，但本季經營現金流再次強勁，達到 5.04 億美元，這反映了強勁的承保業績和固定收益投資組合收益的增加。

Turning to taxes. The effective tax rate on core income for the first quarter was 20.9%, which is in line with our full year 2024 expectations. Finally, we are pleased to announce our regular quarterly dividend of $0.44 per share to be paid on June 6, 2024, to shareholders of record on May 20, 2024.

談到稅收。第一季核心收入的有效稅率為 20.9%，符合我們對 2024 年全年的預期。最後，我們很高興地宣布，我們將於 2024 年 6 月 6 日向 2024 年 5 月 20 日登記在冊的股東支付每股 0.44 美元的定期季度股息。

With that, I will turn it back to Dino.

說完這些，我就把它交還給迪諾。

Thanks, Scott. CNA is off to an excellent start in 2024 with strong levels of core income driven by substantial net investment income and strong underwriting performance. We achieved high single-digit growth in gross written premium ex captives, and our retention remains very strong at 85%. The market remains rational in most classes of business with rates reflective of the individual dynamics impacting the various lines of business.

謝謝，斯科特。 CNA 在 2024 年取得了良好的開端，在豐厚的淨投資收入和強勁的承保業績的推動下，核心收入水平強勁。我們的總承保保費（不包括自保公司）實現了高個位數成長，且留存率仍然非常高，達到 85%。大多數業務類別的市場仍保持理性，利率反映了影響各個業務線的個體動態。

In the commercial casualty classes in the U.S., rates continue to improve. And then property rates, although off from their high watermark in 2023, continue to offer great new business opportunities. And so we remain optimistic about our ability to successfully navigate the favorable market dynamics and continue to grow the company profitably as well as build our investment returns.

在美國商業意外險類別中，費率持續提高。儘管房地產價格已從 2023 年的高點回落，但仍將持續提供龐大的新商機。因此，我們對自己成功駕馭有利的市場動態、繼續實現公司獲利成長以及增加投資回報的能力保持樂觀。

With that, we will be happy to take your questions.

我們將非常樂意回答您的問題。

(Operator Instructions) And our first question today comes from Josh Shanker from Bank of America.

（操作員指示）我們今天的第一個問題來自美國銀行的 Josh Shanker。

If I can go back in a time machine 20 years ago, 2004, there might have been some conservatism on the margins, but you probably should have just written every single piece of business that was out there. It was that good of a market. And things are more mixed today. Are they more mixed or less mixed than they were, let's say, in 2021? How good of a market is it out there? I know -- and that maybe things have gotten so granular and sophistication has gotten to a point that there will never be a universally hard market. But -- and indulge me for a second, some competitors didn't grow it all this quarter and some did, and it leaves a -- how good is that market that's out there right now?

如果我能搭乘時光機回到 20 年前，也就是 2004 年，那時邊緣地帶可能還存在一些保守主義，但你或許應該把當時發生的每一件事都寫下來。這真是一個好的市場。如今的情況更加複雜。與 2021 年相比，它們是更加混合還是更加不混合？那裡的市場有多好？我知道——也許事情已經變得如此細緻和複雜，以至於永遠不會出現一個普遍的硬市場。但是——請容許我稍微解釋一下，有些競爭對手本季並沒有實現成長，而有些則實現了成長，這就留下了一個問題——目前的市場狀況如何？

Josh, it's Dino. We agree with you that the market is favorable, and we continue to take advantage of it. But you also highlighted that it's a nuanced, almost a mini-cycle approach. And that is indeed the issue and very, very different than prior cycles, without a doubt. And so we navigate each one accordingly.

喬希，我是迪諾。我們同意你的觀點，市場是有利的，我們將繼續利用它。但您也強調，這是一種細緻的、幾乎是微循環的方法。毫無疑問，這確實是個問題，而且與之前的周期非常不同。因此，我們會對每一個問題進行相應的引導。

On casualty, we continue to get very strong rate increases, and I expect they will continue. And that will continue to give us good opportunities as we saw in national accounts, also casualty as well as middle market. On property, when you think about all of the cumulative rate, you think about the valuation changes, the terms and conditions, see favorable opportunities there.

在意外險方面，我們的費率持續大幅上漲，我預期這種上漲趨勢還會持續下去。正如我們在國民帳戶、傷亡以及中端市場中所看到的那樣，這將繼續為我們提供良好的機會。對於房地產，當你考慮所有的累積利率時，你會考慮估值變化、條款和條件，並看到有利的機會。

Management liability, notwithstanding that we still have a cumulative 50% to maybe 60% of rate increase since the start of the hard market, the reality is some of the competition, in particular from new entrants, as it has been expressed by others also, is too aggressive. And so we are fine to wait on the sidelines and pursue those areas so we can still have a good growth rate as we do, whether that be it in surety, be it in health care on the Specialty side or, as I just talked about, in the Commercial.

管理責任，儘管自艱難市場開始以來我們的費率累計上漲了 50% 到 60%，但現實情況是，正如其他人所表達的那樣，一些競爭，特別是來自新進入者的競爭，過於激烈。因此，我們可以在場外等待並追求這些領域，這樣我們仍然可以保持良好的成長率，無論是在保證金領域，還是在專業醫療保健領域，或者正如我剛才提到的商業領域。

So I think it gets down to your point of a very nuanced mini-cycle market, and you have to act accordingly. But overall, I'd consider it a favorable market, and it's going to continue in '24.

所以我認為這歸結於你所說的非常微妙的微週期市場，你必須採取相應的行動。但總體而言，我認為這是一個有利的市場，而這種勢頭將在 24 年繼續保持。

And is it -- do you have the ability to capture as much business as you want where you want it? Or if your appetite increased, would that affect price?

您是否有能力在您想要的地方獲得盡可能多的業務？或者如果你的胃口增加了，這會影響價格嗎？

So what I would say is, Josh, over the years, in particular the last 6, 7 years, we've talked extensively about our migration from a generalist commercial underwriter to a specialist underwriter. And we focus on those specialties and we penetrate them quite successfully.

所以我想說的是，喬希，這些年來，特別是在過去的 6、7 年裡，我們已經廣泛討論了從綜合商業承保人向專業承保人的轉變。我們專注於這些專業領域，並相當成功地滲透到這些領域。

But as I've indicated before, our market share in a lot of those areas remains relatively small. So there is plenty of opportunity, and we're going to continue to go after it. It is one of the reasons, as Scott indicated, you're going to see additional investments, technology, talent. And then we're going to divert that to continue to penetrate our specialties. So we see plenty of opportunity.

但正如我之前指出的，我們在許多領域的市佔率仍然相對較小。因此，機會很多，我們將繼續追逐。正如斯科特指出的，這是你將看到更多投資、技術和人才的原因之一。然後我們將轉移這一方向，繼續滲透我們的專業領域。因此，我們看到了很多機會。

And in terms of, Scott, you mentioned a warning -- or not a warning, as [that evolved more] completely, but just a guidance that we should expect that as usual, in 2Q, we're going to see the legacy mass torts review. Is that asbestos and environmental? Or are there other mass torts that get reviewed in 2Q?

就斯科特而言，您提到了一個警告——或者不是一個警告，因為[它發展得更徹底]，而只是一個指導，我們應該像往常一樣，在第二季度，我們將看到遺留的大規模侵權行為審查。那是石棉和環境嗎？或者是否有其他大規模侵權行為需要在第二季度進行審查？

So yes, thanks, Josh. It's Scott here. So if you take a look at historically, it's been kind of general mass tort. A couple of years ago, archdiocese cases, abuse cases over the past few years. I hate to predict what's going to happen this quarter. The team is still doing the work on that. But I would just kind of take a look at the history over the past few years and what we've done in the second quarter. And we've done some refreshes in the fourth quarter, too, the past couple of years. But that's probably all I'd say at this point.

是的，謝謝，喬希。我是史考特。所以，如果你從歷史角度來看，它是一種普遍的集體侵權行為。幾年前，大主教區案件，過去幾年的虐待案件。我不想預測本季會發生什麼。該團隊仍在進行此項工作。但我只是想回顧一下過去幾年的歷史以及我們在第二季度所做的事情。過去幾年，我們在第四季也做了一些更新。但這可能就是我現在想說的全部了。

And one mass tort that gets a lot of press, but there's not a lot of detail on or a lot of news per se, certainly, is PFAS. Is there anything that you can tell us about your thoughts on how you think about it?

有一種大規模侵權行為引起了媒體的廣泛關注，但對其細節的報道並不多，或者說其本身的新聞也不多，那就是 PFAS。您能告訴我們您對此的看法嗎？

Yes -- oh, go ahead.

是的——哦，繼續吧。

No, no, go ahead.

不不不，繼續吧。

No, I was going to say, I mean I have no specific comments on that other than what we see out there is in our reserves right now. And I have nothing else really to say on that.

不，我想說的是，除了我們現在看到的儲備之外，我對此沒有具體的評論。對此我真的沒有什麼好說的了。

Totally agree with Scott. It's early and limited information. What we have, as Scott points out, is in the reserves.

完全同意斯科特的觀點。目前資訊還處於早期階段，並且有限。正如斯科特指出的那樣，我們所擁有的是儲備。

(Operator Instructions) Our next question comes from Meyer Shields from KBW.

（操作員指示）我們的下一個問題來自 KBW 的 Meyer Shields。

This is [Jane] on for Meyer. I just had a question on reserves. Do you see any changes in patterns within reserves for recent years for casualty lines? Can you please share some like view on that, please?

我是 [Jane]，代表 Meyer 報道。我只是想問一下關於儲備的問題。您是否發現近年來預備役人員傷亡情況的模式有任何變化？能分享一些類似的觀點嗎？

It's Dino. We've been highly transparent over the last several years, and we have outlined in considerable detail all the actions we have done to strengthen our reserves, in particular, in the block of 2015 to 2019. And the biggest trend that we commented on and is still significant, albeit maybe more expected than a few years back, was social inflation, which really put severity pressure on our loss cost trends and in quite a few casualty classes actually doubling them over the last 5 years. So that's the main essence of what we've seen.

是迪諾。過去幾年我們一直保持高度透明，並詳細闡述了我們為加強儲備所採取的所有措施，尤其是在2015年至2019年期間。我們評論過的最大趨勢是社會通膨，儘管可能比幾年前更在意料之中，但這個趨勢仍然很重要，它對我們的損失成本趨勢造成了嚴重壓力，在相當多的傷亡類別中，損失成本在過去5年裡實際上翻了一番。這就是我們所看到的主要本質。

Got it. My second question is on the International operations, you mentioned expecting contributing to overall profitability. Just curious your strategy there, can you please add more color on that?

知道了。我的第二個問題是關於國際業務的，您提到期望對整體盈利能力做出貢獻。只是好奇你的策略，可以補充更多細節嗎？

So on the International, we also, over the years, have described all of the underwriting actions that we have taken, in particular, relative to our syndicate to reduce the catastrophe exposure. It has been profitable for quite a few quarters now. As we've indicated, we had some pressure on growth in the first quarter for the reasons that I also indicated in my prepared remarks, being that of being prudent on management liability and a decision to remove from political violence.

因此，在國際上，多年來，我們也描述了我們採取的所有承保行動，特別是相對於我們的辛迪加而言，以減少災難風險。該公司已經連續好幾季獲利。正如我們所指出的，第一季我們的成長面臨一些壓力，原因我在準備好的發言中也提到過，即對管理責任持謹慎態度，並決定遠離政治暴力。

But going forward, we expect it to continue to contribute profitable growth to the organization. We feel very, very good about our International operations, in particular, when you consider that on some segments, the starting point is very good even before the hard market segments like middle market in the U.K. and Canada, we're already very profitable. We got additional cumulative rate. We added improved terms and conditions. So as you can tell, we are quite bullish on our International operation going forward.

但展望未來，我們預期它將繼續為組織貢獻獲利成長。我們對我們的國際業務感到非常非常滿意，特別是當你考慮到在某些領域，起點非常好，甚至在英國和加拿大的中端市場等硬市場領域之前，我們就已經非常有利可圖了。我們獲得了額外的累積率。我們增加了改進的條款和條件。因此，正如您所看到的，我們對未來的國際業務非常樂觀。

And ladies and gentlemen, that will now conclude today's question-and-answer session. I'd like to turn the floor back over to Dino Robusto for closing remarks.

女士們、先生們，今天的問答環節到此結束。我想把發言權交還給 Dino Robusto 來做最後發言。

Thanks very much. I do have some this time around.

非常感謝。這次我確實有一些。

In closing, I'd like to give an update as to future earnings calls for CNA. In light of reduced analyst participation in recent years, in future quarters, we will simply post the transcript in place of hosting a live call. The transcript we post will continue to include the level of detail you are accustomed to hearing in our earnings call remarks. The transcript will also incorporate select Q&As that are intended to address timely and topical focus areas for CNA and our industry as well as answers to questions -- and we will answer questions that are submitted to us in advance.

最後，我想就 CNA 未來的收益電話會議提供最新消息。鑑於近年來分析師參與度的下降，在未來幾季中，我們將只發布會議記錄來取代現場電話會議。我們發布的記錄將繼續包含您在我們的收益電話會議上習慣聽到的詳細程度。該記錄還將包含精選的問答，旨在解決 CNA 和我們行業的及時和熱門焦點領域以及問題的答案 - 我們將回答提前提交給我們的問題。

We are, of course, committed to remaining as transparent as we have always been. And as always, if you ever need any further clarification, we encourage you to reach out to our Investor Relations team.

當然，我們致力於保持一如既往的透明度。像往常一樣，如果您需要任何進一步的說明，我們鼓勵您聯繫我們的投資者關係團隊。

Finally, we look forward to attending industry investor conferences in the future as we have done in the past, and we look forward to continuing the dialogue with the investor and analyst community. And thank you all for joining us today.

最後，我們期待像過去一樣在未來參加產業投資者會議，並期待繼續與投資者和分析師群體進行對話。感謝大家今天的到來。

Ladies and gentlemen, with that, we'll conclude today's conference call and presentation. We thank you for joining. You may now disconnect your lines.

女士們、先生們，今天的電話會議和演講就到此結束。感謝您的加入。現在您可以斷開線路了。