Everest Group Ltd (EG) 2023 Q2 法說會逐字稿

Good morning, everyone, and welcome to the Everest Group Limited Second Quarter of 2023 Earnings Conference Call. The Everest executives leading today's call are Juan Andrade, President and CEO; and Mark Kociancic, Executive Vice President and CFO. We are also joined by other members of the Everest management team. Before we begin, I will preface the comments on today's call by noting that Everest SEC filings include extensive disclosures with respect to forward-looking statements.

大家早上好，歡迎參加珠穆朗瑪峰集團有限公司2023年第二季度收益電話會議。主持今天電話會議的珠穆朗瑪峰高管是總裁兼首席執行官胡安·安德拉德 (Juan Andrade)；執行副總裁兼首席財務官馬克·科西安西奇 (Mark Kociincic)。珠穆朗瑪峰管理團隊的其他成員也加入了我們的行列。在我們開始之前，我將在今天的電話會議上發表評論之前，指出珠穆朗瑪峰美國證券交易委員會的文件包括有關前瞻性陳述的大量披露。

Management comments regarding estimates, projections and similar are subject to the risks, uncertainties and assumptions as noted in these filings. Management may also refer to certain non-GAAP financial measures. These items are reconciled in our earnings release and financial supplements. With that, I'll now hand the call over to Matthew Rohrmann.

管理層有關估計、預測和類似意見的評論受到這些文件中指出的風險、不確定性和假設的影響。管理層還可能參考某些非公認會計準則財務指標。這些項目在我們的收益發布和財務補充中進行了調整。現在，我將把電話轉給馬修·羅爾曼。

Good morning, everyone, and welcome to the Everest Group Limited Second Quarter of 2023 Earnings Conference Call. The Everest executives leading today's call are Juan Andrade, President and CEO; and Mark Kociancic, Executive Vice President and CFO. We are also joined by other members of the Everest management team.

大家早上好，歡迎參加珠穆朗瑪峰集團有限公司2023年第二季度收益電話會議。主持今天電話會議的珠穆朗瑪峰高管是總裁兼首席執行官胡安·安德拉德 (Juan Andrade)；執行副總裁兼首席財務官馬克·科西安西奇 (Mark Kociincic)。珠穆朗瑪峰管理團隊的其他成員也加入了我們的行列。

Before we begin, I will preface the comments on today's call by noting that Everest SEC filings, including extensive disclosures with respect to forward-looking statements. Management comments regarding estimates, projections and similar are subject to the risks, uncertainties and assumptions as noted in these filings. Management may also refer to certain non-GAAP financial measures. These items are reconciled in our earnings release and financial supplement. With that, I'll turn the call over to Juan.

在我們開始之前，我將在今天的電話會議上發表評論，指出珠穆朗瑪峰向美國證券交易委員會提交的文件，包括有關前瞻性陳述的大量披露。管理層有關估計、預測和類似意見的評論受到這些文件中指出的風險、不確定性和假設的影響。管理層還可能參考某些非公認會計準則財務指標。這些項目在我們的收益發布和財務補充中進行了調整。這樣，我就把電話轉給胡安。

Thank you, Matt. Good morning, everyone. Thank you for joining us. Everest second quarter performance was outstanding. We grew the business at significantly expanded margins, taking full advantage of the hard reinsurance market and delivered industry-leading returns, including a near 22% operating return on equity and a record annualized 25% total shareholder return. We have strong momentum across the board. Capitalizing on the hard market opportunity in reinsurance, which continues globally, and both underwriting businesses continue to benefit from the global flight to quality amidst excellent and persistent market conditions.

謝謝你，馬特。大家，早安。感謝您加入我們。珠穆朗瑪峰第二季度業績表現出色。我們充分利用硬再保險市場，以顯著擴大的利潤率發展業務，並實現了行業領先的回報，包括近 22% 的運營股本回報率和創紀錄的 25% 的年化股東總回報率。我們在各方面都有強勁的勢頭。利用全球範圍內持續存在的再保險硬市場機會，在優異且持續的市場條件下，兩家承保業務繼續受益於全球對質量的追求。

In addition, our superb execution drove strong results in the June and July reinsurance renewals. We continue to invest in our primary insurance business, which is also benefiting from similar tailwinds with favorable pricing across a number of business lines. In May, we completed our successful $1.5 billion equity base. The response from the market was excellent and validates the opportunity we see before us. We remain proactive and nimble with our capital deployment, and we are on track to fully deploy the capital raised by the January 1, 2024 renewal.

此外，我們卓越的執行力在六月和七月的再保險續保中取得了強勁的業績。我們繼續投資我們的主要保險業務，該業務也受益於類似的順風車和多個業務線的優惠定價。 5 月，我們成功完成了 15 億美元的股權基礎。市場的反應非常好，證實了我們看到的機會。我們在資本部署方面保持積極主動和靈活的態度，並且有望充分部署 2024 年 1 月 1 日續約時籌集的資本。

We changed our official company name and stock ticker symbol during the quarter. This was another key milestone. Our updated Everest Group name with our newly branded ticker symbol, EG, is a testament about our hybrid strategy and steadfast commitment to global reinsurance and insurance. As we approach the back half of the year, our talent, underwriting discipline, and capital position give us significant firepower to achieve our objectives and drive superior returns. With that, I'll turn to our second quarter financial highlights, beginning at the group level.

我們在本季度更改了官方公司名稱和股票代碼。這是另一個重要的里程碑。我們更新後的 Everest Group 名稱以及新品牌的股票代碼 EG 證明了我們的混合戰略以及對全球再保險和保險的堅定承諾。隨著下半年的臨近，我們的人才、承保紀律和資本狀況為我們提供了實現目標和推動卓越回報的強大火力。接下來，我將轉向我們第二季度的財務亮點，從集團層面開始。

All of our group key financial metrics improved and included quarterly records for both operating income and total shareholder return. Growth was broad and diversified. We continue to see excellent opportunities for further expansion across our portfolio. We grew gross written premiums by 22% year-over-year in constant dollars, led by exceptional reinsurance growth which hit a new written premium record. Net operating income increased to an all-time high of $627 million, up more than 62% year-over-year.

我們集團的所有關鍵財務指標均有所改善，包括營業收入和股東總回報的季度記錄。增長范圍廣泛且多元化。我們繼續看到進一步擴展我們的投資組合的絕佳機會。以不變美元計算，我們的總承保保費同比增長了 22%，其中再保險的出色增長創下了新的承保保費記錄。淨營業收入增至歷史新高，達到 6.27 億美元，同比增長超過 62%。

This was supported by underwriting profits in excess of $400 million. The group combined ratio improved 410 basis points year-over-year to 87.7%. This is an excellent result especially considering this is projected to be the worst second quarter for U.S. catastrophe losses since 2011. Everest net catastrophe loss was just $27.2 million. Additionally, our investment portfolio performed well, producing $357 million in net investment income, a significant improvement from the prior year.

這得益於超過 4 億美元的承保利潤。集團綜合成本率同比提高 410 個基點至 87.7%。這是一個非常好的結果，特別是考慮到預計這將是自 2011 年以來美國災難損失最嚴重的第二季度。珠穆朗瑪峰的災難淨損失僅為 2720 萬美元。此外，我們的投資組合表現良好，產生了 3.57 億美元的淨投資收入，比上一年有顯著改善。

Turning now to our reinsurance business. Second quarter reinsurance results were also excellent. They are a product of our lead market position, breadth of offering and outstanding execution by our team. We grew our portfolio and we expanded margins. The Property Cat pricing remained strong, and the 2023 hard market has now surpassed the post-hurricane Andrew market. This provided the backdrop for excellent mid-year renewals.

現在轉向我們的再保險業務。第二季度再保險業績也非常出色。它們是我們領先的市場地位、廣泛的產品和我們團隊出色執行力的產物。我們擴大了投資組合併擴大了利潤率。 Property Cat 定價依然強勁，2023 年硬市場現已超過安德魯颶風後市場。這為出色的年中續約提供了背景。

June 1 renewal, centered on the Florida market was very strong with prospective returns exceeding the January 1 renewal. This momentum persisted into the July 1 renewals. Pricing was up sharply in key markets around the world. For example, the Australian market underwent a complete restructuring, moving away from frequency covers to true catastrophe structures.

以佛羅里達市場為中心的 6 月 1 日續約非常強勁，預期回報超過 1 月 1 日續約。這種勢頭一直持續到 7 月 1 日的續訂。全球主要市場的定價大幅上漲。例如，澳大利亞市場經歷了徹底的重組，從頻率覆蓋轉向真正的災難結構。

Everest is the preferred market by many of our customers. And as I noted earlier, we continue to benefit from a flight to quality around the globe. We were able to deploy additional capacity to many of our core clients at attractive returns. Gross premiums for the quarter were up 27% over the second quarter of 2022 on a constant dollar basis, $2.8 billion. As I noted earlier, this is a record for the division.

珠穆朗瑪峰是我們許多客戶的首選市場。正如我之前指出的，我們繼續受益於全球範圍內的優質服務。我們能夠為許多核心客戶部署額外的產能，並獲得可觀的回報。按固定美元匯率計算，本季度的毛保費比 2022 年第二季度增長 27%，達到 28 億美元。正如我之前指出的，這是該部門的記錄。

Growth was widespread across business lines and geographies. Property Cat premiums were up 30% from last year. Along with casualty and property pro rata premiums at 16% and 35%, respectively. We also grew in specialty lines, including marine and aviation. International growth was strong, particularly in Asia, where we nimbly took share in dislocated markets like South Korea. Pretax catastrophe losses were modest despite the active cap order for the industry.

增長遍及各個業務線和地區。 Property Cat 保費較去年上漲 30%。傷亡和財產保費按比例分別為 16% 和 35%。我們還在航海和航空等專業領域取得了增長。國際增長強勁，尤其是在亞洲，我們靈活地在韓國等錯位市場中佔據了份額。儘管該行業有積極的上限命令，但稅前巨災損失並不大。

Our deliberate initiatives to shape the portfolio and manage volatility continue to improve our results. We nearly doubled our underwriting profit to $337 million, equating to a combined ratio of 85.9%, a 5.9% improvement year-over-year. Approximately 90% of our portfolio now renewed in 2023 at significantly improved rates and terms, we enter the second half of the year well positioned and our outlook for the January 1, 2024 renewal is positive.

我們精心設計的投資組合和管理波動性舉措繼續改善我們的業績。我們的承保利潤幾乎翻了一番，達到 3.37 億美元，相當於綜合成本率 85.9%，同比提高 5.9%。我們大約 90% 的投資組合現已在 2023 年以顯著改善的費率和條款進行續簽，我們在進入下半年時處於有利位置，並且我們對 2024 年 1 月 1 日續籤的前景持樂觀態度。

Turning to insurance. We made strong progress in advancing our global insurance business. We grew the segment more than 14% in constant dollars, generating a record $1.4 billion in premiums. Growth was broad and diversified, both geographically and by product line, particularly strong in property, both domestically and international as well as in specialty lines like marine, aviation and energy. We maintained our disciplined approach to managing and diversifying the portfolio, reducing our exposure in lines where the market is not well priced, like monoline workers' compensation and public company D&O. While it's still early days, we are also gaining traction in international markets where we are methodically expanding our capabilities and local expertise.

轉向保險。我們在推進全球保險業務方面取得了長足進展。按不變美元計算，我們該細分市場增長了 14% 以上，產生了創紀錄的 14 億美元保費。無論是在地域上還是在產品線上，增長都是廣泛和多元化的，尤其是國內和國際房地產以及海洋、航空和能源等專業領域的強勁增長。我們保持嚴格的投資組合管理和多元化方法，減少了在市場定價不合理的領域的風險敞口，例如單一業務工人薪酬和上市公司 D&O。雖然現在還處於早期階段，但我們在國際市場上也獲得了關注，我們正在有條不紊地擴展我們的能力和本地專業知識。

Market response has been excellent. Reinforcing the abundant global opportunity that we see. In aggregate, rate continues to exceed trend across our core portfolio. We achieved a double-digit rate increase, excluding workers' compensation and financial lines. Group pricing was particularly noteworthy in property, marine and other specialty lines. The heart of reinsurance market contributed to positive pricing in the primary market. This, coupled with persistent industry cat losses and a heightened risk environment supports continued favorable pricing in insurance.

市場反應非常好。強化我們所看到的豐富的全球機遇。總的來說，我們核心投資組合的利率繼續超過趨勢。我們實現了兩位數的增長率，不包括工人賠償和財務額度。在房地產、船舶和其他專業領域，團體定價尤其值得注意。再保險市場的核心促成了一級市場的積極定價。再加上持續的行業巨災和風險環境的加劇，支持保險定價持續有利。

Despite severe weather in the U.S., our cat losses were de minimis and reflect our consistent proactive portfolio management and our focus on superior risk-adjusted returns. The enhancements we have made to augment our technology and streamline our infrastructure are yielding greater efficiencies and connectivity across our platform. Everything from claims to distribution is being scaled methodically around client needs, allowing us to remain agile and responsive as we grow.

儘管美國天氣惡劣，但我們的巨額損失仍然微乎其微，這反映出我們一貫積極主動的投資組合管理以及我​​們對卓越風險調整回報的關注。我們為增強技術和簡化基礎設施所做的改進正在提高整個平台的效率和連接性。從索賠到分發的一切都在圍繞客戶需求有條不紊地進行擴展，使我們能夠在發展過程中保持敏捷性和響應能力。

I'm proud of Everest's performance in the second quarter, and our team's consistent ability to adapt and serve the needs of our clients and deliver leading returns to our shareholders. We have built a long and durable runway to profitably grow our hybrid platform, we're approaching the market opportunity with full force.

我對珠穆朗瑪峰第二季度的業績以及我們團隊適應和服務客戶​​需求並為股東帶來領先回報的一貫能力感到自豪。我們已經建立了一條漫長而持久的跑道，以實現混合平台的盈利增長，我們正在全力抓住市場機遇。

With that, I'll turn it over to Mark to review the financials in more detail.

這樣，我會將其交給馬克，以更詳細地審查財務狀況。

Thank you, Juan, and good morning, everyone. Everest had a very strong quarter, rounding out a solid start to the first half of 2023. The company reported record operating income of $627 million or $15.21 per diluted share in the quarter, equating to an operating income ROE of 21.8%. Total shareholder return or TSR stands at 25.3% annualized. We improved our overall combined ratio by more than 400 basis points while generating double-digit growth in constant dollars in both segments as pricing and terms remain attractive in most lines of business around the world. Juan mentioned during May, we completed a successful $1.5 billion public equity offering in the quarter and are on schedule with the deployment of that capital.

謝謝你，胡安，大家早上好。 Everest 的季度表現非常強勁，為2023 年上半年打下了良好的開端。該公司報告本季度營業收入達到創紀錄的6.27 億美元，即稀釋後每股收益15.21 美元，相當於營業收入ROE 為21.8% 。股東總回報或 TSR 年化率為 25.3%。我們將整體綜合成本率提高了 400 多個基點，同時在這兩個領域實現了兩位數的不變美元增長，因為全球大多數業務領域的定價和條款仍然具有吸引力。胡安在 5 月份提到，我們在本季度成功完成了 15 億美元的公開股票發行，並且正在按計劃部署該資本。

Company's strong performance in the second quarter was led by our team's high level of execution in our core markets, we have a number of tailwinds that are back throughout the remainder of the year and well into 2024. Looking at the group results for the second quarter of 2023, Everest reported gross written premium of $4.2 billion, representing 22.3% growth in constant dollars year-over-year.

公司第二季度的強勁表現得益於我們團隊在核心市場的高水平執行力，我們在今年剩餘時間和 2024 年期間將迎來許多有利因素。看看第二季度的集團業績截至2023 年，珠穆朗瑪峰的總承保保費為42 億美元，按不變美元計算同比增長22.3%。

The combined ratio was 87.7%, which includes 80 basis points of losses or $27 million from natural catastrophes. Catastrophe losses in the quarter were partially offset by $30 million of catastrophe bond recoveries related to Hurricane Ian. The group attritional loss ratio was 59.4% a 40 basis point improvement over the prior year's quarter, led by the reinsurance segment, which I'll discuss in more detail in just a moment.

綜合成本率為 87.7%，其中包括 80 個基點的損失或自然災害造成的 2700 萬美元損失。本季度的巨災損失被伊恩颶風相關的 3000 萬美元巨災債券追回部分抵消。集團損失損失率為 59.4%，比上年同期提高了 40 個基點，其中再保險業務為主導，我稍後將對此進行更詳細的討論。

Group's commission ratio improved 50 basis points to 21.1% on mix changes, while the group's expense ratio was 6.3%, up modestly year-over-year as we continue to invest in our talent and systems within both franchises.

由於組合變化，集團的佣金比率提高了 50 個基點，達到 21.1%，而集團的費用率為 6.3%，隨著我們繼續投資於兩個特許經營的人才和系統，集團的費用比率同比小幅上升。

Moving to the segment results and starting with reinsurance. Reinsurance gross premiums written grew 26.9% in constant dollars during the quarter. Strong growth came from the continued successful execution of our 2023 renewal strategy. We generated double-digit growth across every line of business. Combined ratio was 85.9%, which improved 600 basis points from the prior year. The attritional loss ratio improved 120 basis points to 57.6% as we continue to achieve more favorable rate and terms, which we expect to continue into 2024.

轉向分部業績並從再保險開始。按不變美元計算，本季度再保險毛保費增長了 26.9%。強勁的增長來自於我們 2023 年更新戰略的持續成功執行。我們在各個業務領域都實現了兩位數的增長。綜合成本率為85.9%，比上年提高600個基點。隨著我們繼續實現更優惠的利率和條款，損耗率下降了 120 個基點，達到 57.6%，我們預計這種情況將持續到 2024 年。

The commission ratio was 24.5%, an improvement of 30 basis points from the prior year. The underwriting related expense ratio was 2.6%, which was essentially flat year-over-year.

佣金比例為24.5%，較上年提高30個基點。承保相關費用率為2.6%，同比基本持平。

Moving to Insurance. Gross premiums written grew 14.1% in constant dollars to a quarterly premium volume record of $1.4 billion. Growth was primarily driven by property and specialty lines in the quarter as pricing gained additional momentum. Overall, pricing remains ahead of loss trend, as Juan mentioned. Combined ratio was 92.7%, up 120 basis points year-over-year. The division benefited from 0 natural catastrophe losses in the quarter further demonstrating the success of our derisking actions on our portfolio. The attritional loss ratio was modestly higher this quarter at 64.4%, driven by business mix, and one-off premium adjustments in our Lloyd's syndicate.

轉向保險。按不變美元計算，毛承保保費增長了 14.1%，季度保費額創歷史新高，達 14 億美元。本季度的增長主要由房地產和專業產品線推動，因為定價獲得了額外的動力。總體而言，正如胡安提到的，定價仍然領先於虧損趨勢。綜合成本率為92.7%，同比上升120個基點。該部門在本季度受益於零自然災害損失，進一步證明了我們對投資組合的去風險行動的成功。受業務組合和勞合社辛迪加一次性保費調整的推動，本季度的自然損耗率略有上升，達到 64.4%。

Commission ratio improved 100 basis points, largely driven by business mix as increased property writings earned through as well as increased volume of ceding commissions and decreased gross commissions across multiple lines. The underwriting related expense ratio was 16.5%, largely driven by certain one-off expenses and continued investment in global systems in our platform.

佣金比率提高了 100 個基點，這主要是由於業務組合的推動，因為通過增加房地產銷售收入以及放棄佣金數量的增加和多條線的總佣金減少。承保相關費用率為16.5%，主要是由某些一次性費用以及對我們平台全球系統的持續投資推動的。

We expect the expense ratio to diminish over the course of the year. And finally, to cover investments, tax in the balance sheet. Net investment income increased $131 million to $357 million for the quarter driven primarily by higher new money yields, our investment in floating rate securities and higher assets under management. Alternative assets generated $59 million of net investment income a sequential improvement as equity markets have continued to rebound.

我們預計費用比率將在年內下降。最後，為了涵蓋投資，在資產負債表中納稅。本季度淨投資收入增加了 1.31 億美元，達到 3.57 億美元，這主要是由於新貨幣收益率上升、我們對浮動利率證券的投資以及管理資產的增加。隨著股市持續反彈，另類資產產生了 5,900 萬美元的淨投資收入，環比改善。

Overall, our book yield improved from 2.8% to 3.9% year-over-year, and our reinvestment rate remains north of 5%. We continue to have a short asset duration of approximately 2.9 years. And as a reminder, the 22% of our fixed income investments are in floating rate securities.

總體而言，我們的賬面收益率同比從 2.8% 提高至 3.9%，再投資率仍保持在 5% 以上。我們的資產期限仍然較短，約為 2.9 年。提醒一下，我們 22% 的固定收益投資是浮動利率證券。

For the second quarter of 2023, our operating income tax rate was 11.5%, in line with our working assumption of 11% to 12% for the year. Shareholders' equity ended the quarter at $10.9 billion or $12.5 billion, excluding unrealized depreciation and depreciation of securities. At the end of the quarter, unrealized losses in the fixed income portfolio equate to approximately $1.6 billion, an increase of $167 million as compared to the end of the first quarter resulting from increases in rates at the front end of the curve.

2023年第二季度，我們的營業所得稅率為11.5%，符合我們全年11%至12%的工作假設。本季度末股東權益為 109 億美元或 125 億美元，不包括未實現折舊和證券折舊。截至本季度末，固定收益投資組合的未實現損失約為 16 億美元，與第一季度末相比增加了 1.67 億美元，原因是曲線前端利率上升。

Cash flow from operations was strong at approximately $1.1 billion during the quarter. Book value per share ended the quarter at $251.17, an improvement of 18.1% from year-end 2022 when adjusted for dividends of $3.30 per share year-to-date. Book value per share, excluding unrealized depreciation and depreciation of securities stood at $288.64 versus $259.18 per share at year-end 2022, representing an increase of approximately 11.4%. Net leverage at quarter end stood at 19.1% modestly lower on a sequential and year-over-year basis.

本季度運營現金流強勁，約為 11 億美元。本季度末每股賬面價值為 251.17 美元，較 2022 年年底增長 18.1%（根據年初至今每股 3.30 美元的股息進行調整）。扣除未實現折舊和證券折舊後，每股賬面價值為 288.64 美元，而 2022 年底每股賬面價值為 259.18 美元，增長約 11.4%。季末淨槓桿率為 19.1%，環比和同比略有下降。

In conclusion, Everest had an excellent second quarter of 2023 and is well positioned heading into the back half of the year and 2024. With that, I'll turn the call back over to Matt.

總之，珠穆朗瑪峰在 2023 年第二季度表現出色，並且在今年下半年和 2024 年處於有利位置。這樣，我將把電話轉回給 Matt。

Thanks, Mark. Operator, we are now ready to open the line for questions. We do ask that you please limit your questions to 1 question plus 1 follow up, then rejoin the queue for any additional questions.

謝謝，馬克。接線員，我們現在準備開通提問線路。我們確實要求您將問題限制為 1 個問題加 1 個問題後續問題，然後重新加入隊列以回答任何其他問題。

(Operator Instructions) Your first question comes from Elyse Greenspan with Wells Fargo.

（操作員說明）您的第一個問題來自富國銀行的 Elyse Greenspan。

My first question, I was hoping you could just walk us through your plans on putting the $1.5 billion of equity you guys raised to work. I know, Mark, you said you guys are on schedule deployment of the capital. Can you just give us a sense, expand upon that and give us a sense of the split that you see between property and casualty reinsurance writings as well as the expected ROE on the deployed capital.

我的第一個問題是，我希望您能向我們介紹一下您籌集的 15 億美元股權的計劃。我知道，馬克，你說過你們正在按計劃部署首都。您能否讓我們了解一下，在此基礎上進行擴展，讓我們了解您所看到的財產和傷亡再保險著作之間的分歧以及部署資本的預期淨資產收益率。

Yes. Thanks, Elyse. This is Juan. So let me get started, and I'll ask then Jim to join in and provide a lot more granularity to you on that topic. But as both Mark and I said in our prepared remarks, we're very much on track to fully deploy the capital by the January 1, 2024 renewal. As you saw from the numbers, we drove meaningful growth not only in the quarter but also during the July 1 renewal. But in addition to the key renewal dates, and Jim will talk a little bit more about this in detail, we have also done a number of private or closely placed opportunities at excellent rates and terms that have also emerged outside of the renewal period. So we continue to see plenty of opportunity. We don't see any change in the market, and we're very much on track with the deployment. But now let me ask Jim to go a little bit deeper on that.

是的。謝謝，愛麗絲。這是胡安。那麼讓我開始吧，然後我會請吉姆加入並為您提供有關該主題的更多詳細信息。但正如馬克和我在準備好的發言中所說，我們完全有望在 2024 年 1 月 1 日續約之前充分部署資本。正如您從數字中看到的，我們不僅在本季度而且在 7 月 1 日續訂期間都實現了有意義的增長。但除了關鍵的續約日期之外，吉姆將詳細討論這一點，我們還以優異的價格和條款完成了許多私人或密切合作的機會，這些機會也在續約期之外出現。因此，我們繼續看到大量機會。我們沒有看到市場發生任何變化，而且我們的部署也非常順利。但現在讓我請吉姆更深入地探討這一點。

Sure. Thanks for the question, Elyse. And I'm going to be a little expansive here because I do think this is connected to a number of critical trends within the business. I mean, first, to take you back to a little bit of what we said on the last quarter's call around how we expected this to play out. We sort of laid out, look, this capital deployment really begins with the 7/1 renewal, which is for us about $1 billion of expiring premium. It would continue through the end of 2023, where you've got about another $1 billion of premium. And then it would complete at the Jan 1 renewal, which, at this point, our expiring book will be somewhere on the order of $6 billion.

當然。謝謝你的提問，愛麗絲。我在這裡會說得有點寬泛，因為我確實認為這與業務中的許多關鍵趨勢有關。我的意思是，首先，讓您回顧一下我們在上個季度的電話會議上所說的關於我們預期情況如何發展的內容。我們有點佈局，看，這種資本部署實際上是從 7/1 續約開始的，這對我們來說是大約 10 億美元的到期保費。這種情況將持續到 2023 年底，屆時您將獲得大約 10 億美元的保費。然後它將在 1 月 1 日續訂時完成，此時，我們即將到期的賬簿將達到 60 億美元左右。

And that proportionality would account for the capital deployment. And that's playing out as we expected. In fact, I would add to that, that we did have some opportunities in a very targeted way outside of Florida, but at the 6/1 renewal to take meaningfully increased lines with some of our core cedents, which were very attractive. That continued into 7/1. We grew strongly at that renewal and we did it at excellent rate. In fact, if you look at the rate we printed for North America in the second quarter of [47], we actually exceeded that in many cases for the June and July renewals. So we feel really good about that.

這種比例將影響資本部署。這正如我們所預期的那樣。事實上，我想補充一點，我們確實在佛羅里達州以外以非常有針對性的方式獲得了一些機會，但在6/1 續約時，我們可以與我們的一些核心分出者一起有意義地增加線路，這非常有吸引力。這種情況一直持續到 7 月 1 日。我們在這次更新中強勁增長，而且速度非常快。事實上，如果你看看我們在[47]第二季度為北美打印的費率，我們實際上在許多情況下超過了六月和七月續訂的費率。所以我們對此感覺非常好。

And then as Juan had indicated, we participated on a number of private or closely brokered placements, and there's a variety of things in there, whether it's a large layer on top of the Cat program for a global cedent down to fact placements to deal with sort of dislocated single risks and everything in between.

然後，正如胡安所指出的，我們參與了許多私人或緊密經紀的配售，其中有各種各樣的事情，無論是 Cat 計劃之上的一個大層，用於全球分出到事實配售來處理某種程度錯位的單一風險以及介於兩者之間的一切風險。

And so we're on our front feet that way and taking advantage of those opportunities as they come to us. And I would also add, obviously, I'm focusing here on property Cat, but we've also taken advantage of trends in casualty where we continue to grow in some of the specialty lines. And one example I would cite in the second quarter is our aviation book, which on the back of really incredible rate change was up over 50% year-over-year at again, terrific economics.

因此，我們在這方面處於領先地位，並在這些機會來到我們身邊時充分利用它們。我還要補充一點，顯然，我在這里關注的是財產貓，但我們也利用了傷亡趨勢，我們在一些專業領域繼續增長。我在第二季度要舉的一個例子是我們的航空書籍，在令人難以置信的利率變化的支持下，該書籍同比增長了 50% 以上，經濟狀況再次令人驚嘆。

And so as we've executed this, we've been focused on a number of key priorities. And before you even really talk about growth, it's portfolio quality. And so all the things that we've mentioned in our last call continue to play out. Attachment points are going up. Our average attachment point is moving further out in the curve. And certainly, you saw proof of that in our second quarter Cat print, which was simply outstanding.

因此，當我們執行此操作時，我們一直專注於一些關鍵優先事項。在真正談論增長之前，首先要討論的是投資組合的質量。因此，我們在上次電話會議中提到的所有事情都會繼續發生。附著點正在上升。我們的平均附著點在曲線上進一步移動。當然，您在我們的第二季度貓印刷品中看到了這一點的證據，它非常出色。

You saw us adjust our portfolio in Florida. A number of the Demotech rated Florida specialists, frankly, did not pass our financial underwriting standards, and we moved away from them and redeploy the capital elsewhere. So we are nimble that way, and we're as focused on portfolio quality as we are on top line, even more so. And the other thing I would say in terms of priorities is over 90% of the incremental capacity that we've deployed has been with our existing clients. These are people we know well and people who we play with across a wide variety of lines. And so that incremental Cat capacity not only is a tremendous opportunity in itself, it also further strengthens our core relationships.

您看到我們調整了佛羅里達州的投資組合。坦率地說，一些被 Demotech 評為佛羅里達州的專家沒有通過我們的財務承保標準，因此我們離開了他們，並將資金重新部署到其他地方。因此，我們在這方面很靈活，我們像關注營收一樣關注投資組合質量，甚至更是如此。關於優先事項，我要說的另一件事是，我們部署的增量容量中 90% 以上是為現有客戶提供的。這些人是我們熟悉的人，也是我們在不同領域合作的人。因此，Cat 產能的增加不僅本身就是一個巨大的機會，而且還進一步加強了我們的核心關係。

And so as you play all that forward to Jan 1, our expectation is that we'll be confronted with just excellent prospective returns at the renewal. Why do we believe that? Pretty fundamental stuff. The first is that the supply-demand imbalance that's been playing out in the reinsurance market hasn't fundamentally changed. And we've certainly seen analysis that suggests there's still a very meaningful gap between supply and demand.

因此，當您將所有這些都推遲到 1 月 1 日時，我們的期望是，我們將在續約時面臨出色的預期回報。我們為什麼相信這一點？非常基本的東西。首先，再保險市場供需失衡的狀況尚未根本改變。我們當然已經看到分析表明供需之間仍然存在非常大的差距。

And I would posit to you that demand is pent-up and growing rapidly. And that's because I think many scenes weren't able to complete their queue. There are 1/1 placements the way they wanted to. They're facing a risk environment that's not getting any easier, climate change being at the front of that line, but also inflation, geopolitics and other factors. And then obviously, while we had a terrific second quarter in Cats, many primary underwriters did not.

我可以向您假設，需求已被壓抑並正在快速增長。那是因為我認為很多場景都無法完成他們的隊列。他們想要的方式有 1/1 的展示位置。他們面臨著一個並沒有變得更容易的風險環境，其中最重要的是氣候變化，還有通貨膨脹、地緣政治和其他因素。顯然，雖然我們在貓的第二季度表現出色，但許多主要承銷商卻沒有。

In fact, it's a record level or near record level of second quarter Cat activity, particularly in the United States, but also in other markets around the world. So a really tough spot to be in as a primary underwriter and that's increasing their demand for reinsurance. We've also seen no capital formation of any meaningful extent, obviously, putting our capital raise aside and I've heard of nothing meaningful in the pipeline that's going to really change that.

事實上，這是第二季度 Cat 活動的創紀錄水平或接近創紀錄水平，特別是在美國，而且在全球其他市場也是如此。因此，作為主要承保人，他們的處境確實很艱難，這增加了他們對再保險的需求。顯然，我們還沒有看到任何有意義的資本形成，撇開我們的融資不談，而且我聽說在管道中沒有任何有意義的事情能夠真正改變這一點。

The other factor that I think is important is if you go back to 1/1, many of the panels that got put in place particularly for the global cedents, included a number of reinsurers that frankly, I think they'd rather not be trading with very extensively. And as Juan had mentioned in his opening remarks, there is a global flight to quality happening, and we think we'll continue to benefit from that at 1/1, where we'll have an opportunity to help our clients clean up those panels with a much higher quality underwriter.

我認為重要的另一個因素是，如果你回到 1/1，許多專為全球分出公司而設立的小組，包括一些再保險公司，坦率地說，我認為他們寧願不進行交易非常廣泛。正如胡安在開場白中提到的那樣，全球範圍內正在發生一場追求質量的浪潮，我們認為我們將在 1 月 1 日繼續從中受益，屆時我們將有機會幫助我們的客戶清理這些面板擁有更高質量的承銷商。

And then the last piece that I'll cite, and I think it's important, it's a little harder to quantify or maybe impossible, but there's an underwriter psychology component at play, which is there's a reason this market hardened and it's because underwriters have taken a number of years of Cat losses. And I haven't met anybody in this industry who because they may have some additional capital coming into 1/1 wants to trade down or auction down pricing in property Cat. That's just -- that is not the mentality that exists in our industry. So our expectation going into 1/1 is that we're going to push hard for increased rates. We think the industry should be pushing hard for more given the experience we've had in all those external factors we talked about.

然後我要引用的最後一篇文章，我認為這很重要，量化有點困難，或者可能是不可能的，但是承銷商心理因素在起作用，這是這個市場硬化的原因，因為承銷商已經採取了Cat 連續多年虧損。我還沒有遇到這個行業中的任何人，因為他們可能有一些額外的資本進入 1/1，所以想要降低或拍賣房地產 Cat 的價格。這只是——這不是我們行業中存在的心態。因此，我們對 1/1 的預期是，我們將努力推動提高利率。我們認為，鑑於我們在討論所有這些外部因素方面所積累的經驗，該行業應該努力推動更多。

We're going to be looking to grow not just property Cat, which we will grow meaningfully, but casualty, specialty and a number of other areas. We are globally diversified, so we can drive growth in multiple regions. We're also diversified by line so we can grow Cat, non-Cat property specialty, you name it. And we fully expect that we will complete the deployment of the incremental capital at the 1/1 renewal at outstanding terms. So hopefully, that gives you the color you're looking for.

我們不僅要尋求發展財產貓（我們將有意義地發展這一領域），還要發展傷亡險、特種險和許多其他領域。我們在全球範圍內多元化，因此我們可以推動多個地區的增長。我們還按產品線實現多元化，因此我們可以發展 Cat、非 Cat 房地產專業產品，凡是您能想到的。我們完全期望我們能夠按未償條款完成1/1續約增量資本的部署。希望這能為您提供您正在尋找的顏色。

Elyse, it's Mark. I just want to add a few points to Jim's comments and once we get some of the specifics you were asking earlier, we still see greater than 90% of this capital raise deployment this year going into the reinsurance division. That's the lion's share. That's where we have a very strong an exceptionally strong franchise and underlying fundamentals that Jim just walked through that really gives us the confidence, especially coming out of the 7/1s, our conviction just couldn't be stronger at that capital raise will be put to good use. I do expect the property casualty mix to swing a bit more single digits into favor with property lines or property premium moving forwards. And I think you're seeing some of that evolution in our financial supplement. And again, the ROE on that incremental $1.5 billion of capital is something we feel confident in exceeding our Q1 operating ROE going forwards.

愛麗絲，是馬克。我只想對吉姆的評論補充幾點，一旦我們得到了您之前詢問的一些具體細節，我們仍然看到今年超過 90% 的融資部署進入了再保險部門。這是最大的份額。這就是我們擁有非常強大的特許經營權和吉姆剛剛經歷過的基本面的地方，這確實給了我們信心，特別是從 7/1 開始，我們對籌集資金的信念再堅定不過了好好利用。我確實預計財產傷亡人數將增加個位數，有利於財產線或財產溢價的發展。我認為您在我們的財務補充品中看到了一些這種演變。再說一次，我們有信心在未來 15 億美元增量資本中的淨資產收益率超過第一季度的運營淨資產收益率。

That's helpful. My follow-up, we've been -- there's been headlines on surrounding collateralized casualty reinsurance. And I was wondering if you guys are seeing cedents looking to replace covers with high-quality reinsurers like yourselves? Or if this is something that you're expecting we could start to see play out in the market?

這很有幫助。我的後續行動是——有關抵押傷亡再保險的頭條新聞。我想知道你們是否看到分出公司希望用像你們這樣的高質量再保險公司來取代保險？或者，如果這是您所期望的，我們會開始看到市場上出現這種情況？

Yes. Elyse, this is Jim again. Yes, we -- look, we are definitely hearing a lot of chatter around the topic, particularly given some recent events, and you've seen some dislocation in a variety of parts, particularly in the fronting market. And look, what I would say to that is obviously, we're opportunistic. We have the flexibility if there's an interesting opportunity that emerges, that gives us an opportunity to earn great returns. We certainly take it. But our priority remains building franchise positions with the best global underwriters over time. And that means that's where our focus is, and we don't get distracted by some of the noise that might exist around a particular opportunity even though we are ready to lean into it, should those opportunities come our way.

是的。伊麗絲，這又是吉姆。是的，我們——看，我們確實聽到了很多圍繞這個話題的討論，特別是考慮到最近發生的一些事件，而且你已經看到了各個部分的一些混亂，特別是在前端市場。看，我想說的是，顯然，我們是機會主義的。如果出現有趣的機會，我們將具有靈活性，這使我們有機會獲得豐厚的回報。我們當然接受。但隨著時間的推移，我們的首要任務仍然是與全球最好的承銷商建立特許經營地位。這意味著這就是我們的重點所在，即使我們已經準備好抓住某個特定機會，但如果這些機會出現的話，我們也不會被可能存在的一些噪音分散注意力。

Your next question comes from Yaron Kinar with Jefferies.

您的下一個問題來自 Jefferies 的 Yaron Kinar。

Maybe a follow-up on the last line of questions. We did hear some commentary yesterday from a couple of your competitors, one thing that they believe that property Cat rates were now adequate for the industry. And I noticed, Jim, in your response, you said that you're still looking to push a lot of rate in 1/1. So I guess I'd be interested to hear your views on how adequate pricing or rates are today? Or if it's just a matter of really just keeping up with loss trends going forward?

也許是對最後一行問題的跟進。昨天我們確實從你們的幾個競爭對手那裡聽到了一些評論，他們認為現在的房地產貓費率對於該行業來說已經足夠了。我注意到，吉姆，在你的回復中，你說你仍然希望在 1/1 中提高很多速率。所以我想我有興趣聽聽您對今天的定價或費率是否足夠的看法？或者如果這只是一個真正跟上未來損失趨勢的問題？

And then the other comment we heard yesterday was a preference by one of your competitors to really deploy capital and property more into insurance than reinsurance. And clearly, we're hearing a different tone from you. So I would love to hear how you're thinking about the 2 from that perspective.

然後我們昨天聽到的另一條評論是，你們的競爭對手傾向於將資本和財產更多地部署到保險而不是再保險中。顯然，我們從你那裡聽到了不同的語氣。所以我很想听聽您如何從這個角度思考這兩者。

Yes, Yaron, this is Juan. So let me go ahead and get started with that. Look, I think from our perspective, we obviously like the returns that we're getting in property Cat but in general as well. And I fundamentally agree with what Jim said. We will keep pushing for rate terms and structure as we really haven't seen any fundamental changes in the external environment. I think you've seen some of the headline news this morning with one of our competitors reporting that in the first half of the year, Cats were over the 10-year average at over $40 billion. So there's still an active Cat environment. That hasn't changed. We also see the general risk environment continue to be very elevated. You've got geopolitical issues, you've got social inflation, you've got all these other things that are out there. That hasn't changed.

是的，亞龍，這是胡安。那麼讓我繼續開始吧。看，我認為從我們的角度來看，我們顯然喜歡我們在房地產貓方面獲得的回報，但總的來說也是如此。我從根本上同意吉姆所說的。我們將繼續推動利率條款和結構，因為我們確實沒有看到外部環境發生任何根本性變化。我想您已經看到了今天早上的一些頭條新聞，我們的一位競爭對手報導稱，今年上半年，《貓》的銷售額超過 10 年平均水平，銷售額超過 400 億美元。所以仍然存在一個活躍的 Cat 環境。這一點沒有改變。我們還看到總體風險環境繼續非常高。你有地緣政治問題，你有社會通貨膨脹，你還有所有其他的事情。這一點沒有改變。

And then you also have inflation that comes into the equation, right? There's an impact on cost of materials, et cetera. So this is why from our perspective, we don't see a change in the market. And therefore, we're going to continue to push price, rate, terms and structure. So from my perspective, that is how we think about it.

然後通貨膨脹也納入考慮範圍，對嗎？這對材料成本等有影響。因此，這就是為什麼從我們的角度來看，我們沒有看到市場發生變化。因此，我們將繼續推動價格、費率、條款和結構。所以從我的角度來看，這就是我們的想法。

To your second question on insurance and reinsurance and property Cat deployment, we do like the property Cat environment right now in reinsurance. But as you saw in our insurance numbers, we also grew property and insurance by 37% as we reported in the supplement. So we're leaning into it as well. And frankly, that's one of the advantages that we have in our hybrid models. We can take advantage of the best risk-adjusted opportunities and move capital pretty nimbly to that. But let me have Jim also add some color on this.

關於你關於保險和再保險以及財產 Cat 部署的第二個問題，我們確實喜歡現在再保險領域的財產 Cat 環境。但正如您在我們的保險數據中看到的那樣，我們的財產和保險也增長了 37%，正如我們在補充材料中報告的那樣。所以我們也傾向於它。坦率地說，這是我們混合模型的優勢之一。我們可以利用最佳的風險調整機會，並相當靈活地將資本轉移到那裡。但讓我讓吉姆也對此添加一些色彩。

Yes, Yaron, thanks for the question. And maybe at the risk of repeating a little bit of what Juan said, but I do think it's a critical point. The fact is, whether we like it or not, we live in a cyclical industry. And we've come through a period of a number of years where Cat pricing wasn't where it needed to be. Losses were elevated and that hurt a lot of underwriting companies and losses piled up. And so my view is we're not sitting here saying, "Okay, we're going to take rate change until we hit adequacy, declare victory and then just sit there." I mean that's not how we're going to run this business.

是的，亞龍，謝謝你的提問。也許冒著重複胡安所說的一點風險，但我確實認為這是一個關鍵點。事實是，無論我們喜歡與否，我們都生活在一個週期性行業中。我們經歷了很多年，Cat 的定價並未達到應有的水平。損失增加，這損害了許多承保公司，損失不斷增加。所以我的觀點是，我們不會坐在這裡說：“好吧，我們將進行利率調整，直到我們達到充分水平，宣布勝利，然後就坐在那裡。”我的意思是，這不是我們經營這項業務的方式。

We want to be earning excellent returns. And you've heard me consistently say, starting with the 1/1 renewal in particular, but really even going back to 7/1 of 2022, prospective return profiles are excellent. That does not mean we're going to sit idly and just accept that. We want to continue to push. It is an elevated risk environment. There is inflation. There is geopolitical challenge. Cat is inherently volatile, and we think reinsurers deserve to get paid for that, and we're going to continue to push for it.

我們希望獲得豐厚的回報。您經常聽到我說，特別是從 1/1 續訂開始，但實際上甚至可以追溯到 2022 年 7/1，預期回報情況非常好。這並不意味著我們會袖手旁觀並接受這一點。我們想繼續推動。這是一個風險較高的環境。有通貨膨脹。存在地緣政治挑戰。 Cat 本質上是不穩定的，我們認為再保險公司應該為此獲得報酬，我們將繼續推動這一點。

And Yaron, this is Mike Karmilowicz. I would just add on the insurance side to the point that Juan made earlier, take into consideration the last couple of years, what we've done to really basically go through our portfolio strategy, not just on volatility of muting that, but actually looking specifically at how we can actually take our concentration, derisk that across not just the U.S. but also the opportunity across the globe.

亞倫，這是邁克·卡米洛維奇。我只想在保險方面補充一下胡安早些時候提出的觀點，考慮到過去幾年，我們所做的基本上是通過我們的投資組合策略，不僅僅是消除波動性，而是實際上尋找特別是我們如何真正集中註意力，消除美國乃至全球機遇的風險。

So we basically have lowered our gross limits over the last 2 years by over 41%. In addition to that, lowered our PMLs, premium to PML ratio is dramatically the 1 in 100 to take that into consideration of what's given us the opportunity and the capacity to the point Jim just said, we're leaning in very heavy seeing very meaningful returns with average rate increases of over 30% when you add an exposure change you're talking premium change of over 40%. So we think the market is really robust. We see really good opportunity not just domestically, but internationally with a really good strategy to derisk and keep our concentration limited in a lot of pockets in both peak and nonpeak areas which I think just bodes well for us going into '23 and '24.

因此，過去 2 年我們基本上將總限額降低了 41% 以上。除此之外，降低了我們的 PML，保費與 PML 的比率大幅達到百分之一，考慮到給我們帶來的機會和能力，吉姆剛才說，我們傾向於非常重視，因為這非常有意義當您添加風險敞口變化時，您所說的保費變化將超過40%，回報率平均增長率將超過30%。所以我們認為市場非常強勁。我們不僅在國內，而且在國際上都看到了非常好的機會，有一個非常好的策略來消除風險，並將我們的注意力集中在高峰和非高峰地區的許多領域，我認為這對我們進入“23”和“24”來說是個好兆頭。

Thanks for a very comprehensive answer. And then maybe if we continue with you, Mike, and I apologize for nitpicking here on a very good quarter. But one thing that did stand out was the 170 basis point deterioration in the underlying loss ratio in insurance. I know Mark called out some premium adjustments and mix shift. But could you maybe give us a little more color there and quantify some of the EBIT changes?

感謝您提供非常全面的答案。然後，如果我們繼續與你合作，邁克，我為在一個非常好的季度中的挑剔而道歉。但確實引人注目的一件事是保險基本損失率惡化了 170 個基點。我知道馬克提出了一些溢價調整和混合轉變。但您能否給我們提供更多信息並量化一些息稅前利潤的變化？

Yaron, it's Mark. Maybe I can start. So a couple of components. Like I said in my scripted remarks, the premium adjustments were -- they were a reasonable size. You're talking $5 million, $6 million lion's share coming out of the Lloyd's syndicate. So that's flowing through earned premium and altering the ratios mechanically, unfortunate situation, but definitely, we would consider it to be one-off in nature.

亞倫，我是馬克。也許我可以開始。所以有幾個組件。正如我在書面發言中所說，保費調整是一個合理的規模。你說的是 500 萬美元、600 萬美元的大部分來自勞合社財團。因此，這會流經賺取的保費併機械地改變比率，這是不幸的情況，但我們肯定會認為它本質上是一次性的。

And then you've got a mix of business component. We do see property becoming a much more substantial portion of the earned premium moving forward, so that's going to help to change the composition of the attritional loss ratio within the combined ratio and you'll also see, I think, A&H subside in terms of the size of its contribution to the combined ratio and the dynamics it brings in terms of expected loss ratio and expense within there. So this is something that should mechanically move towards a lower attritional loss ratio moving forward.

然後你就得到了業務組件的組合。我們確實看到財產將成為未來所賺取保費的更重要部分，因此這將有助於改變綜合比率內的消耗損失率的構成，我認為，您還會看到 A&H 在以下方面有所下降：它對綜合比率的貢獻大小以及它在預期損失率和費用方面帶來的動態。因此，這應該會機械地朝著更低的磨損損失率方向發展。

And what I would emphasize, too, Yaron, this is one is, as Mark was saying, the uptick was really from onetime and nonrecurring adjustments. And just to emphasize his last point is, as we continue to write more property at excellent prices and you heard the numbers being quoted by Mike, and as we write, frankly, more specialty products, too, which we also -- we saw the growth in other specialty in the quarter of over 39% like aviation and marine, energy, et cetera. All of that is going to have a very positive impact on the loss ratios it earns in during subsequent quarters.

我還要強調的是，亞倫，正如馬克所說，這一上昇實際上來自一次性和非經常性的調整。只是要強調他的最後一點是，隨著我們繼續以優惠的價格寫更多的房產，你聽到了邁克引用的數字，坦率地說，當我們寫的時候，也有更多的特色產品，我們也看到了其他專業本季度增長超過 39%，如航空與航海、能源等。所有這些都將對其隨後幾個季度的虧損率產生非常積極的影響。

Your next question comes from Michael Ward with Citi.

您的下一個問題來自花旗銀行的邁克爾·沃德。

Maybe a somewhat similar question, but for reinsurance. Just curious if you could talk about the pace of underlying margin improvement from here?

也許是一個有點類似的問題，但針對的是再保險。只是好奇您能否從這裡談談潛在利潤率改善的速度？

Yes, Mike, it's Jim Williamson. Thanks for the question. Look, I'd say if you look at the improvement in the current quarter, that's really driven by 2 factors. One, we have selected a lower current accident year attritional loss ratio for our Cat portfolio based mostly on our experience. So just in prior years, we've outperformed that pick. And so we reduced it. Obviously, I expect a tailwind from all the rate we're getting to continue to improve that pick over time. So that would be a factor.

是的，邁克，我是吉姆·威廉姆森。謝謝你的提問。我想說，如果你看看本季度的改善，你會發現這實際上是由兩個因素驅動的。第一，我們主要根據我們的經驗，為我們的 Cat 產品組合選擇了較低的當前事故年損耗損失率。因此，就在前幾年，我們的表現優於該選擇。所以我們減少了它。顯然，我預計隨著時間的推移，我們所獲得的所有利率將繼續改善這一選擇。所以這將是一個因素。

And then the second factor is really the beginning of a mix shift toward property from casualty, not because we are not growing casualty, you saw we continue to do that in Q2 at a slightly lower rate but that property growth has picked up and we'll continue to earn through the portfolio.

第二個因素實際上是從傷亡轉向財產混合的開始，並不是因為我們沒有增加傷亡，你看到我們在第二季度繼續以略低的速度這樣做，但財產增長已經加快，我們'將繼續通過投資組合賺錢。

So all those tailwinds that I described will continue. In particular, you're really just really at the beginning of earning through all of these positive impacts. So really positive that way. And I know you're talking loss ratio, but while we're talking margin, the other tailwind I would describe is around commission.

因此，我所描述的所有這些有利因素都將繼續下去。特別是，您確實剛剛開始通過所有這些積極影響來賺錢。這樣真的很積極。我知道你在談論損失率，但當我們談論利潤時，我要描述的另一個推動因素是佣金。

You did see a little bit of commission improvement in the quarter, which obviously a good thing, which we welcome. That was driven almost entirely by mix. So that's a mix shift toward property and this property mix on the earned premium side increases, that will continue. The piece that you're really not even seeing yet, but you will see is the fact that casualty seating commissions have been coming down. We've seen that pretty consistently starting with 1/1, and it's really just beginning to earn into the portfolio. So a tailwind there. So the bottom line is we expect some really good trends in terms of total margin.

您確實看到本季度佣金有所改善，這顯然是一件好事，我們對此表示歡迎。這幾乎完全是由混合驅動的。因此，這是向房地產的混合轉變，而這種房地產組合在賺取的溢價方面會增加，這種情況將會持續下去。你實際上還沒有看到，但你會看到的事實是，傷員座位佣金已經下降。我們已經看到，從 1/1 開始就一直如此，而且它實際上才剛剛開始為投資組合帶來收益。所以那裡有順風。因此，最重要的是，我們預計總利潤率會出現一些非常好的趨勢。

Really helpful. And then so I guess, net investment income was pretty strong, including [op] for the quarter. Just wondering if you have any outlook for the second half of the year.

真的很有幫助。然後我猜，淨投資收入相當強勁，包括本季度的[op]。只是想知道您對下半年有何展望。

Mike, it's Mark. So a couple of points to make here. I'll split it between the interest income component and then the [op] performance. I think the interest income has got very good momentum. We've taken advantage of structuring our portfolio taking into account the short end of the yield curve. And so you're seeing those floating rate securities that we speak about frequently, really pay off in terms of the resets and the higher yield that is generated from those securities. So I see a strong tailwind there. You're seeing our book yield rise year-over-year. We're clearly investing well north of a 5% new money rate on a global basis.

邁克，是馬克。所以這裡有幾點需要說明。我將把它分為利息收入部分和[op]績效。我認為利息收入的勢頭非常好。我們在構建投資組合時考慮了收益率曲線的短端。因此，您會看到我們經常談論的那些浮動利率證券，在重置和這些證券產生的更高收益率方面確實得到了回報。所以我看到那裡有強勁的順風。您會看到我們的圖書收益率逐年上升。顯然，我們的投資遠高於全球 5% 的新貨幣利率。

And the AUM, I think, is churning north even beyond the equity raise contribution. We're getting some nice pickup on that. So feel very good. I think the credit quality of the portfolio is quite strong. We're really at the north end of an A+ average credit quality on the fixed income portfolio bordering a AA minus, but so that's important as we contemplate credit adequacy in the portfolio. And the op performance is something we're very pleased with. It's difficult to forecast, but we've got a broadly diversified set of investments there on the private equity side for the most part. And that is expected to give us a nice stable -- relatively stable distribution given the diversification of over 200 limited partnerships.

我認為，資產管理規模的增長甚至超出了股權融資的貢獻。我們在這方面得到了一些不錯的進展。所以感覺非常好。我認為該投資組合的信用質量相當強。我們的固定收益投資組合確實處於 A+ 平均信用質量的北端，接近 AA 負值，但當我們考慮投資組合中的信用充足性時，這一點很重要。我們對操作性能非常滿意。這很難預測，但我們在私募股權方面擁有廣泛多元化的投資。考慮到 200 多個有限合夥企業的多元化，預計這將為我們帶來一個穩定的、相對穩定的分佈。

Now it's somewhat cyclical in terms of how that contribution comes in, but generally correlates well with where the S&P 500 is coming in over time. I don't think you're seeing any kind of one-off type contribution in the quarterly performance for Q2 but rather you're seeing a broad-based support from the op in the income.

現在，就這種貢獻的產生方式而言，它在某種程度上具有周期性，但通常與標準普爾 500 指數隨時間變化的情況密切相關。我認為您在第二季度的季度業績中沒有看到任何一次性的貢獻，而是在收入中看到了來自運營商的廣泛支持。

Your next question comes from C. Gregory Peters with Raymond James.

您的下一個問題來自 C. Gregory Peters 和 Raymond James。

I guess I had one macro question and then one more detailed question. On a macro basis, can you just speak and I know you've spoken, talked about the hard property market. Can you talk about your perspectives on the facultative portion of the market versus the treaty portion of the market. I really don't hear a lot of commentary, but I believe you're pretty active in the facultative side, too.

我想我有一個宏觀問題，然後是一個更詳細的問題。從宏觀的角度來看，您能談談嗎？我知道您已經談到了房地產市場的硬性情況。您能否談談您對市場的臨時部分與市場的條約部分的看法。我確實沒有聽到太多評論，但我相信您在兼任方面也非常活躍。

Yes, Greg, this is Juan Andrade. Look, facultative has seen some very strong growth as well. And it's frankly for the same reasons that we've been talking about, right? Basically, cedents are looking for opportunities to upload, if you will, some of the risk that does necessarily fit into their treaty structure. So from our perspective, our global fac book right now is also growing pretty significantly. We feel very good about that as well. But Jim, maybe you can add some specific color.

是的，格雷格，這是胡安·安德拉德。看，兼任也出現了一些非常強勁的增長。坦率地說，這與我們一直在談論的原因相同，對吧？基本上，分出公司正在尋找機會上傳（如果你願意的話）一些確實適合其條約結構的風險。因此，從我們的角度來看，我們的全球面簿目前也在顯著增長。我們對此也感覺很好。但是吉姆，也許你可以添加一些特定的顏色。

Yes, Greg, thanks for the question. I think it's an astute one because as we mentioned, it's a tough environment for our cedents and they're looking to manage risk and if their treaty attachments have gone up, they're looking at their pre-risk exposures and their concerns. So they turn to the fac market. We grew our fac portfolio in the second quarter by almost 40%. Based on those trends, with a real emphasis on property as well as some segments of casualty and specialty lines. What I would add to that is very similar to what you'll hear us say about our insurance property business.

是的，格雷格，謝謝你的提問。我認為這是一個精明的做法，因為正如我們所提到的，對於我們的分出公司來說，這是一個艱難的環境，他們正在尋求管理風險，如果他們的條約附件增加了，他們就會考慮他們的風險前暴露和他們的擔憂。因此他們轉向了面部護理市場。第二季度我們的 fac 投資組合增長了近 40%。基於這些趨勢，真正重視財產以及傷亡和特種產品的某些部分。我要補充的內容與您將聽到的關於我們的保險財產業務的內容非常相似。

The same factors are playing out in facultative in terms of our approach to underwriting. We're controlling limits deployed, so keeping limits very tight, focused on quality risk selection and ensuring that we're getting paid extremely well for the risks we're taking. And I would say, similar again to primary insurance market. The fac rate taking has really accelerated steeply particularly as our competitors are dealing with their own reinsurance costs. So we view it as a nice opportunity.

就我們的承保方法而言，同樣的因素也在發揮作用。我們正在控制部署的限額，因此將限額保持得非常嚴格，專注於質量風險選擇，並確保我們為所承擔的風險獲得極好的報酬。我想說，這與初級保險市場類似。事實費率的收取確實急劇加快，特別是當我們的競爭對手正在處理自己的再保險成本時。所以我們認為這是一個很好的機會。

Makes sense. I wanted to pivot to the insurance operations as my second and follow-up question. When I look at some of the lines of business, accident, health maybe not so much, but specialty casualty, professional liability, workers' comp. We're observing other primary companies report some volatility around prior year development and really not seeing that out of you guys. So maybe you could spend a minute and just update us on sort of the give and takes out of some of the older accident years inside your book and how the reserves are developing?

說得通。我想把重點轉向保險業務，作為我的第二個也是後續問題。當我查看某些業務領域時，事故、健康可能不是那麼重要，但特殊傷亡、職業責任、工人賠償。我們觀察到其他主要公司報告了上一年發展的一些波動，但實際上並沒有從你們身上看到這一點。因此，也許您可​​以花一點時間向我們介紹一下您書中一些較早發生事故的年份的最新情況以及儲備金的發展情況？

Yes. So Greg, it's Mark here. A few points to make. Look, the social inflation and the pressure that you're seeing in the industry from '16 to '19 is real. That's something that comes through in the reserve studies. A few points about our portfolio. Last year, we had pluses and minuses in our insurance reserves. We had very modest movements, I'd say, in those specific years for longer tail lines, the casualty lines. And we also had positive offsets coming from some shorter tail lines, workers' comp as well, et cetera. And so one of the points to make here is that we do have a broad-based portfolio that allows for pluses and minuses over the course of time. We also benefit from a couple of things.

是的。格雷格，我是馬克。有幾點需要說明。看，從 16 世紀到 19 世紀，社會通貨膨脹和行業壓力是真實存在的。這是儲備研究中得出的結論。關於我們的投資組合的幾點。去年，我們的保險準備金有優點也有缺點。我想說，在那些特定的年份裡，我們對更長的尾線和傷亡線採取了非常溫和的行動。我們還從一些較短的尾線、工人補償等方面獲得了積極的抵消。因此，這裡要指出的一點是，我們確實擁有基礎廣泛的投資組合，隨著時間的推移，它會帶來優點和缺點。我們還受益於一些事情。

I think we've -- since 2020 when Juan started, I'd say the prudency of our loss picks has been quite good. We try to be conservative, particularly on the longer tail lines, and we want to hold those picks until we have quite a bit of certainty. And so that conservatism, I think, is helpful when you've got this level of uncertainty in the marketplace. And then I think the proportion of the business that we wrote in 2020, 2021 and onwards, particularly in insurance, is significantly larger than the set of reserves that we have for, say, '16 to '19. So the kind of relative scale is really quite meaningful.

我認為，自 2020 年胡安開始以來，我認為我們對失敗選秀權的謹慎程度一直非常好。我們試圖保持保守，特別是在較長的尾線上，我們希望保留這些選擇，直到我們有相當多的確定性。因此，我認為，當市場存在這種程度的不確定性時，保守主義是有幫助的。然後我認為我們在 2020 年、2021 年及以後的業務（尤其是保險業務）所佔的比例明顯大於我們在 16 年至 19 年期間的準備金。所以這種相對尺度確實是很有意義的。

And one of the reasons that's important is you really saw rate take off pretty much, I would say, it probably started more Q4 2019 and has been compounding throughout those quarters since that time. And so that, I think, helps the equation. And then overall, we're obviously vigilant in how we track rate versus loss trends and the margin there in over time, and we make adjustments as needed in the ELRs, in the reserves and so forth. And so that's what gets us comfortable with where we are.

重要的原因之一是，你確實看到利率大幅上升，我想說，它可能從 2019 年第四季度開始，並且從那時起在這些季度中一直在復合。我認為這有助於解決這個問題。總的來說，我們顯然對如何跟踪利率與損失趨勢以及隨著時間的推移的利潤保持警惕，並且我們根據 ELR、準備金等的需要進行調整。這就是讓我們對自己所處的位置感到滿意的原因。

Your next question comes from Michael Zaremski with BMO.

您的下一個問題來自 BMO 的 Michael Zaremski。

Maybe touching on that subject. We see, I think, in your numbers on the paid to incurred levels ex Cat and PYD that they're creeping up a bit, but still well below I guess, pre-pandemic ratios. So are you kind of broadly seeing? I know there's -- it might be tough to paint a broad brush. But are you seeing a bit of a inching up in loss cost inflation, maybe ex property Cat again that's a different discussion.

也許會觸及這個主題。我認為，從你們關於 Cat 和 PYD 的支付與發生水平的數字中我們看到，它們正在小幅上升，但我認為仍遠低於大流行前的比率。那麼你的視野寬廣嗎？我知道，要籠統地描繪可能很困難。但你是否看到損失成本通脹略有上升，也許又是前財產貓，這是一個不同的討論。

Yes, that Mike, it's Mark again here. That's definitely a concern, a trend. You have different levels of inflation. So whether it's obviously, the social inflation, I think, is well understood. Then you've got excess, what I would call, excess inflation driven by CPI or certain segments, medical loss inflation, wage inflation, depending on which lines all of this pertains to. And so those are things that we monitor. Clearly, there's an elevated risk environment as we've seen some of these increase, in other words, more moderately. So it's something we take into account with loss picks setting and the monitoring of rate adequacy. But again, I would reiterate the excess of rate versus loss trend.

是的，那個邁克，又是馬克。這絕對是一個問題，一個趨勢。有不同程度的通貨膨脹。因此，我認為，無論是否明顯，社會通貨膨脹都是很好理解的。然後就是過度的，我所說的，由消費者物價指數或某些細分市場驅動的過度通脹、醫療損失通脹、工資通脹，這取決於所有這些都屬於哪條線。這些都是我們監控的事情。顯然，風險環境有所升高，因為我們已經看到其中一些風險有所增加，換句話說，風險的增加較為溫和。因此，這是我們在損失選擇設置和利率充足性監控時考慮的因素。但我再次重申利率與損失趨勢的過剩。

Yes. Let me jump in there, Mike. This is Juan because I think that's a very interesting point. And to build on what I said in my prepared remarks at the beginning of this call, we are ahead of trend in a very comfortable way, right? So for instance, our insurance rate level when you take out comp and financial lines, which are really not core to us right now, we increased rate by over 12%. And loss trend for us in insurance on an aggregate basis is significantly lower than that. And then you can leverage on exposure on top of that. And that gives you a pretty good level of comfort on how far ahead of that we are, which basically means you're building margins. So obviously, we look at loss trends on a very frequent basis, as I've mentioned on other calls in the past. We keep very close track of it. But we are comfortably ahead of trend right now with rate and then you add exposure on that, that gives you another buffer.

是的。讓我跳進去吧，邁克。我是胡安，因為我認為這是一個非常有趣的觀點。基於我在本次電話會議開始時準備好的發言中所說的話，我們以一種非常輕鬆的方式領先於趨勢，對吧？例如，我們的保險費率水平，當你去掉補償和財務額度時，這對我們來說目前確實不是核心，我們將費率提高了 12% 以上。從總體上看，我們保險業的損失趨勢明顯低於此。然後你可以利用曝光度。這讓你對我們領先的程度感到非常滿意，這基本上意味著你正在增加利潤。顯然，正如我過去在其他電話會議中提到的那樣，我們非常頻繁地關注損失趨勢。我們非常密切地跟踪它。但我們現在在利率上輕鬆領先於趨勢，然後你增加曝光度，這給你另一個緩衝。

Got it. I guess we've -- I think most investors feel comfortable that what you're saying is happening. It's just we're not yet really seeing much reserve releases from Everest, which that's not a knock, just so it's sometimes tough triangulating some of the math. I'm just curious on the pricing environment also kind of excluding property Cat. We're seeing some conflicting data points like the Marsh McLennan commercial pricing index was kind of flattish sequentially quarter-over-quarter, although, on the other hand, some of the carriers -- larger carriers especially have seen a bit of an acceleration broadly for your portfolio, maybe even more on the pro rata side. Are you -- is pricing changing much sequentially?

知道了。我想我們——我認為大多數投資者對你所說的正在發生的事情感到放心。只是我們還沒有真正看到珠穆朗瑪峰釋放出太多儲備，這並不是什麼打擊，只是有時很難對一些數學進行三角測量。我只是對定價環境感到好奇，也排除了房地產貓。我們看到一些相互矛盾的數據點，例如達信麥克倫南 (Marsh McLennan) 商業定價指數環比持平，但另一方面，一些承運商（尤其是大型承運商）普遍出現了一定程度的加速增長對於您的投資組合，按比例計算可能更多。您的定價是否連續變化很大？

Let me start, Mike, this is Juan, and then I'll have Jim and Mike Karmilowicz to add a little bit of color. If I'm not mistaken, I think the Marsh numbers are global numbers. And so you are going to have variations in those numbers from Latin America, Asia, Europe, et cetera, et cetera. The rate environment that we continue to see is actually quite good. And as I just said a couple of minutes ago, we have seen sequential improvement in pricing in primary insurance and certainly on the reinsurance side of things. So that is the environment that we're living in right now and that we're seeing as we trade on a daily basis. But Jim can give you some color on the pro rata's and then Karm can give you some more color on the primary side.

讓我開始吧，邁克，我是胡安，然後我將請吉姆和邁克·卡米洛維奇添加一點色彩。如果我沒記錯的話，我認為馬什的數字是全球數字。因此，來自拉丁美洲、亞洲、歐洲等地的這些數字將會有所不同。我們繼續看到的利率環境實際上相當不錯。正如我幾分鐘前所說，我們已經看到初級保險定價的連續改善，當然還有再保險方面的定價。這就是我們現在生活的環境，也是我們每天交易時看到的環境。但是吉姆可以給你一些按比例的顏色，然後卡姆可以給你一些主要的顏色。

Yes, Mike, it's Jim. So look, I think in the conversations we're having with our cedents and the analysis we're doing at renewals. I think fundamentally, as Juan had indicated, the key trend is that rate is moving in the direction it needs to keep up with loss cost and hold loss ratios in place on that front. And what I would just caution in terms of looking at industry indices as a measure of this is portfolio mix really does matter. And if you look at, in particular, some of the areas of the "casualty market" that are under pressure and are not experiencing some of the reacceleration that Juan discussed, things like D&O, or workers' comp where we have very little exposure. And so that can move an index. But what we're focused on, obviously, is our own portfolio, and we continue to feel good about where those metrics are heading.

是的，邁克，是吉姆。所以看，我認為在我們與分出公司的對話以及我們在續約方面所做的分析中。我認為從根本上講，正如胡安所指出的，關鍵趨勢是利率正在朝著與損失成本保持一致並在這方面保持損失率所需的方向發展。我想提醒的是，在將行業指數視為衡量投資組合的指標時，投資組合確實很重要。如果你特別看看“傷亡市場”的一些領域，這些領域面臨壓力，並且沒有經歷胡安討論的一些重新加速，比如 D&O 或工人補償，我們在這些領域的接觸很少。這樣就可以移動索引。但顯然，我們關注的是我們自己的投資組合，並且我們繼續對這些指標的發展方向感到滿意。

Yes. And as far from the primary insurance group, I focus on a couple of things. We always stress the importance of cycle management. So when you talk about D&O, which we've been talking about for the last year as well as workers' comp. You've seen that as an example, workers' comp go from what was 27% years ago, now down to on the monoline guaranteed cost down to 4%. And then when you see opportunity where we're really leaning in besides the property side, the first party, aviation, marine, things that really actually we know we can drive rate to terms and really take advantage of the marketplace. So I think based on Juan's comments about what we're seeing not just with rate in itself and the exposure change, I think we see the benefit and we see opportunity, particularly in the foreseeable future.

是的。就主要保險組而言，我專注於幾件事。我們始終強調週期管理的重要性。因此，當您談論我們去年一直在談論的 D&O 以及工人薪酬時。作為一個例子，您已經看到，工人的補償從幾年前的 27% 下降到現在單線保證成本下降到 4%。然後，當你看到我們真正傾向於的機會時，除了房地產方面、第一方、航空、海運之外，我們實際上知道我們可以提高利率並真正利用市場。因此，我認為根據胡安對我們所看到的不僅僅是利率本身和風險敞口變化的評論，我認為我們看到了好處，也看到了機會，特別是在可預見的未來。

Your next question comes from Brian Meredith with UBS.

您的下一個問題來自瑞銀集團 (UBS) 的布萊恩·梅雷迪思 (Brian Meredith)。

A couple of here for you. First one, Jim, I wonder if you could talk a little bit about some of the private transactions top-up deals that you did in the quarter. And are those continuing? And maybe you can kind of give us a sense of if they're not continuing kind of how that would have benefited your growth. I just don't want to make sure I'm not for my forward estimates, assuming those are continuing. Maybe they are, I don't know.

這裡有幾個給你。首先，吉姆，我想知道您是否可以談談您在本季度進行的一些私人交易充值交易。這些還在繼續嗎？也許你可以讓我們了解如果他們不繼續這樣做會對你的成長有什麼好處。我只是不想確保我不支持我的前瞻性估計，假設這些預測仍在繼續。也許他們是，我不知道。

Sure thing, Brian. Jim?

當然可以，布萊恩。吉姆？

Yes. Thanks, Brian. Yes, look, we're seeing a variety of types. So to the first part of your question, one of the biggest features, and I think one that points to this pents up demand for capacity issue is a number of our large global clients have come out into the market either in a closely brokered or in some cases, a private placement situation looking to top up their existing Cat programs. And I think the reality is they would have liked to have bought those top-ups at 1/1. I think they were advised and probably appropriately so by their brokers that wasn't the time to get that -- try to get that done. And so they waited. We started seeing it really at 4/1 right around that time, and it's continued. And it's been nice activity.

是的。謝謝，布萊恩。是的，看，我們看到了各種各樣的類型。因此，對於你問題的第一部分，最大的特點之一，我認為指出這一被壓抑的產能需求的問題是，我們的許多大型全球客戶已經進入市場，要么以密切的經紀方式，要么以在某些情況下，私人配售的情況是希望補充現有的Cat 計劃。我認為現實情況是他們希望以 1/1 的價格購買這些充值產品。我認為他們的經紀人建議了他們，而且可能是適當的，所以現在還不是時候——嘗試完成這件事。他們就這樣等待著。我們在 4 月 1 日左右開始真正看到它，並且一直在繼續。這是一次很好的活動。

And then at the other end of the spectrum, as I had mentioned earlier, some of this is we have a variety of partners coming to us with even large facultative placements, smaller treaties, et cetera, where they just want to deal with per risk exposures and peak zones and get a little more creative and on how they manage their total risk profile, but still keep the economics acceptable.

另一方面，正如我之前提到的，我們有各種各樣的合作夥伴來找我們，甚至有大型臨時安置、較小的條約等等，他們只是想處理每種風險風險敞口和峰值區域，並在如何管理總體風險狀況方面更具創意，但仍保持經濟可接受性。

And so it's continuing. I would say, though, look, the reality is the bulk of this market, particularly in North America, is an open broker market. The big renewals are driving the bulk of all the results that we're reporting. I would just view these other transactions is a nice tailwind. I think they're also more importantly, a key indication of what we expect to have happen in the future in terms of supply and demand. And so they're extremely useful that way.

所以它還在繼續。不過，我想說的是，現實是這個市場的大部分，特別是在北美，是一個開放的經紀商市場。重大更新推動了我們報告的大部分結果。我認為這些其他交易是一個很好的推動力。我認為更重要的是，它們是我們預計未來供應和需求將發生什麼的關鍵指標。所以它們在這方面非常有用。

Right. I would -- this is Juan. I would amplify that last point that Jim made because this is exactly what we have been saying all along, right? What this really illustrates is the fact that the fundamental macro environment that we're all operating in has not changed, right? You still have high Cat activity. You have a heightened risk environment and our cedents are looking to also manage earnings volatility. And so therefore, they're still coming to market to try to figure out a way to do that, while at the same time, they're also trying to attack the property market on the primary side at the same side. So look, all of these are signs, and I think Jim is exactly right that the demand is still absolutely there and they want to trade with carriers like us, right, highly rated, great quality, et cetera.

正確的。我會——這是胡安。我想強調吉姆提出的最後一點，因為這正是我們一直以來所說的，對嗎？這實際上說明了我們所處的基本宏觀環境沒有改變，對嗎？您的 Cat 活動仍然很高。您面臨著較高的風險環境，我們的分出公司也希望管理收益波動。因此，他們仍然會進入市場，試圖找到一種方法來做到這一點，同時，他們也在試圖同時進攻一級市場的房地產市場。所以看，所有這些都是跡象，我認為吉姆是完全正確的，需求仍然絕對存在，他們希望與像我們這樣的運營商進行貿易，對，評價高，質量好等等。

Great. That's really helpful. And then the second question, I'm wondering if you could talk a little bit about kind of where we are in the international build-out on the insurance business. So looking at operating expense growth is up 20%, call it, a little over 20% year-over-year. Should that continue here for the foreseeable future, just big year-over-year increases as you continue to build that out? And kind of where are we in the process?

偉大的。這真的很有幫助。然後是第二個問題，我想知道您是否可以談談我們在保險業務的國際擴張中所處的位置。因此，運營費用同比增長了 20%，略高於 20%。在可預見的未來，這種情況是否應該繼續下去，隨著你繼續建設，逐年大幅增長？我們在這個過程中處於什麼位置？

Yes. Thank you, Brian. Look, I think for us, it's still early days. We really began a very methodical build-out of this strategy really at the beginning of last year. We are now essentially in France, in Germany, in Spain, in Chile, in Singapore and in Australia at this point in time with a couple of other markets coming online later this year. We're really very excited about the opportunities that we see. And frankly, the market reaction has been phenomenal. I've traveled the world over the last 2 years, as I normally do, meeting with our brokers, our people, our clients, et cetera. And frankly, the reception has been terrific.

是的。謝謝你，布萊恩。聽著，我認為對我們來說，現在還為時尚早。我們從去年年初就開始非常有條理地制定這一戰略。目前我們主要在法國、德國、西班牙、智利、新加坡和澳大利亞，其他幾個市場將於今年晚些時候上線。我們對看到的機會感到非常興奮。坦率地說，市場反應非常驚人。在過去的兩年裡，我像往常一樣環遊世界，會見了我們的經紀人、我們的員工、我們的客戶等等。坦率地說，反響非常好。

They love the fact that we have the A+ paper. They like the name of the company. They like the people that they're trading with because they know us. And so from that perspective, the opportunity set has been there. Part of that methodical build-out has been the systems, the target operating model, the people, the underwriters, et cetera, et cetera. And so all of this is really, frankly, within our expectations. When we think about particularly the expense comment that you're making. But we do see that beginning to trend down over time, I think as Mark had indicated in last quarter's call. And we're doing this in a very disciplined way. We're managing the expenses. We're managing the build-out in a very careful way, but we're very excited about what we're seeing. And frankly, the reaction that we've had in each of these markets.

他們喜歡我們的 A+ 試卷。他們喜歡公司的名字。他們喜歡與他們交易的人，因為他們了解我們。因此從這個角度來看，機會已經存在。有條不紊的建設的一部分是系統、目標運營模式、人員、承銷商等等。所以坦率地說，所有這一切都在我們的預期之內。當我們特別考慮您提出的費用評論時。但我們確實看到隨著時間的推移，這一趨勢開始下降，我認為正如馬克在上個季度的電話會議中所指出的那樣。我們正在以一種非常有紀律的方式來做這件事。我們正在管理費用。我們正在以非常謹慎的方式管理擴建，但我們對所看到的感到非常興奮。坦率地說，我們在每個市場的反應。

Your next question comes from Meyer Shields with Keefe, Bruyette & Woods.

您的下一個問題來自 Meyer Shields 和 Keefe、Bruyette & Woods。

One introductory question, I guess, Jim, you talked about being more cautious on some of the cedents in Florida. I was hoping you could update us on how you're thinking about the reforms themselves holding up? In other words, how comfortable you are with the Florida market as long as the individual companies are okay.

我想，這是一個介紹性問題，吉姆，你談到了對佛羅里達州的一些分出公司要更加謹慎。我希望您能向我們介紹一下您對改革本身的看法如何？換句話說，只要個別公司表現良好，您對佛羅里達市場的適應程度就越高。

Yes, Meyer. Thanks for the question. Look, and I'll kind of break that into 2 parts. First, would -- I'll tell you a little bit more about what we did and why and then get to the reforms. So one of our most important, I think, underwriting screens when dealing with those Florida specialists, particularly the Demotech rated Florida specialist is our financial underwriting. And particularly given the stress these folks have been under over the last couple of years and the experience from last year, just a number of clients that we did business with in the past didn't pass that screen. A little over 1/3 of our Demotech-rated clients didn't pass that screen. And so we were just no longer able to support their programs.

是的，邁耶。謝謝你的提問。看，我會把它分成兩部分。首先，我會告訴你們更多關於我們所做的事情和原因，然後討論改革。因此，我認為，在與佛羅里達州專家（尤其是 Demotech 評級的佛羅里達州專家）打交道時，我們最重要的承保篩選之一是我們的財務承保。特別是考慮到這些人在過去幾年所承受的壓力以及去年的經驗，只有一些與我們過去有業務往來的客戶沒有通過這個篩選。超過 1/3 的 Demotech 評級客戶沒有通過該篩選。因此我們無法再支持他們的計劃。

And so we ended up deploying less capacity to those folks. Now we we're in a terrific market. So we simply reallocated it to both Florida and non-Florida opportunities. So I think, a really good trade for us overall.

因此，我們最終為這些人部署了更少的容量。現在我們正處於一個非常棒的市場。因此，我們只是將其重新分配給佛羅里達州和非佛羅里達州的機會。所以我認為，總體而言，這對我們來說是一筆非常好的交易。

In terms of the reforms, look, we think they're terrific reforms. We think the political class in Florida exercised a lot of fortitude, encouraged to tackle this problem head on. It was absolutely necessary. I think given the fraud and abuse that was happening in the state, it was heading to a place where you were going to have an insurance and reinsurance crisis. So we're positive on the reforms, but we're also -- we're folks that make decisions based on facts, and it's not yet 100% clear how the reforms will play out in loss costs.

就改革而言，我們認為這是了不起的改革。我們認為佛羅里達州的政治階層表現出了很大的毅力，鼓勵他們正面解決這個問題。這是絕對必要的。我認為考慮到該州正在發生的欺詐和濫用行為，它正在走向一個將面臨保險和再保險危機的地方。因此，我們對改革持積極態度，但我們也是——我們是根據事實做出決策的人，目前還不是 100% 清楚改革將如何影響損失成本。

I don't expect the plaintiffs bar in that state to simply acquiesce to the reform. And so we need to see that play out. So as the results of the reform reveal themselves in actual loss activity if they show that loss costs are coming down, obviously, that would make us more favorable on the Florida market, all other things being equal. And if that's not true, obviously, less so. The only other piece I would add to that, though, is the commitment we have to Florida, I think, is the right size. I don't necessarily -- not necessarily looking for signs to double down on the state either sort of irrespective of what happens.

我不認為該州的原告律師會簡單地默許改革。所以我們需要看到這一結果。因此，當改革的結果在實際損失活動中顯現出來時，如果它們表明損失成本正在下降，顯然，這將使我們在其他條件相同的情況下對佛羅里達市場更加有利。如果這不是真的，那麼顯然就不那麼真實了。不過，我要補充的唯一一點是，我認為我們對佛羅里達州的承諾是合適的規模。我不一定 - 不一定尋找跡象來加倍打擊國家，無論發生什麼。

Okay. Perfect. That's very helpful. Second question, and we talked a little bit about sort of broad concern about casualty loss trends. I was hoping you could update us on your appetite for loss portfolio -- writing loss portfolio transfers and how you see demand there evolving?

好的。完美的。這非常有幫助。第二個問題，我們討論了對傷亡損失趨勢的廣泛擔憂。我希望您能向我們介紹您對損失投資組合的興趣 - 撰寫損失投資組合轉移以及您如何看待那裡的需求變化？

Yes, Meyer, it's Jim again. Look, it's an area of the market where we've done a few transactions over time. It is really not something we focus on. It's obviously highly competitive. And you're typically competing with companies who do not carry the kind of rating and quality balance sheet that Everest has and so that changes their economics. We would rather build strong forward-looking franchises with the best global and local cedents across multiple lines and that's where the bulk of our effort and focus is on. So I just don't see that being a big piece of what we do going forward.

是的，邁耶，又是吉姆。看，這是我們隨著時間的推移進行了一些交易的市場領域。這確實不是我們關注的重點。顯然競爭非常激烈。你通常要與那些沒有珠穆朗瑪峰那樣的評級和質量資產負債表的公司競爭，從而改變他們的經濟狀況。我們寧願與跨多個領域的全球和本地最佳分出公司建立強大的前瞻性特許經營權，這就是我們的大部分努力和重點所在。所以我不認為這會成為我們未來工作的重要組成部分。

Your next question comes from Elyse Greenspan with Wells Fargo.

你的下一個問題來自富國銀行的伊麗絲·格林斯潘。

I just had one follow-up on the insurance segment, right? You guys have laid out that 91% to 93% combined ratio target, right, with that financial plan a couple of years ago. Obviously, the market is much better today. And I know there were some one-offs this quarter in the Q1 that impacted the reported results, but do you have a sense when given the market dynamics, when we could perhaps see that margin come in towards the lower end of the guided range.

我剛剛對保險領域進行了一次跟進，對吧？你們幾年前就通過財務計劃制定了 91% 至 93% 的綜合成本率目標，對吧。顯然，今天的市場要好得多。我知道第一季度有一些一次性事件影響了報告的結果，但是考慮到市場動態，當我們也許會看到利潤率接近指導範圍的下限時，您是否有感覺。

Yes. So Elyse, it's Mark. Look, I think there's some very good fundamentals that we have on the insurance side. You do have a little bit of noise coming from a few factors. So let me just develop this a little bit. So a few points to make. One, we've got a very solid top line premium. And you can see pretty good growth in property more expected. It's not necessarily translating to the earned right now as some of that's coming in from our international expansion. And so that's going to be a driver. And that exacerbates the expenses a bit as we're putting in some of the foundational pieces for the expansion. But that, no issue there. I think that's more timing. The key thing is that the business that we're writing internationally and domestically gives us very good confidence.

是的。伊麗絲，是馬克。聽著，我認為我們在保險方面有一些非常好的基本面。確實有一些來自一些因素的噪音。讓我稍微展開一下。所以有幾點需要說明。第一，我們有非常穩定的頂線溢價。你可以看到更令人期待的房地產業的良好增長。這不一定會轉化為現在的收入，因為其中一些收入來自我們的國際擴張。所以這將是一個驅動程序。當我們為擴展添加一些基礎部件時，這會稍微增加費用。但這沒有問題。我認為這更合時宜。關鍵是我們在國際和國內撰寫的業務給了我們很大的信心。

And so from that standpoint, the mix changing, the expected margin, the growth overall is what I think is going to drive us to that lower end of the range. And I think to add to it even further is really the conscious de-risking that we've done on the Cat side for insurance. And so when you take a look at this quarter, for example, a 0 print on the Cat loss and a pretty low number in Q1 and some of the tactical changes we've made and how we're constructing our Cat appetite for insurance. That's another meaningful driver of how we get there.

因此，從這個角度來看，我認為組合變化、預期利潤率和整體增長將推動我們達到該範圍的下限。我認為進一步補充的是我們在保險方面所做的有意識的去風險化。因此，例如，當您查看本季度時，Cat 的損失為 0，第一季度的數字相當低，以及我們所做的一些戰術變化以及我們如何構建 Cat 的保險需求。這是我們實現這一目標的另一個有意義的驅動力。

And then maybe the last part, I think you can see this in all the commentary we give written and verbal the cycle management capabilities that we have in the insurance division are quite strong. You've got a fairly diversified set of lines of business that allow us to transition into higher-margin lines when the markets are favorable in that respect and minimize other areas that are less favorable. And so I think those pieces are really what's going to get us to the lower portion of the 91%, 93%. And we're still quite comfortable with that working assumption that we gave you on the IR Day 2 years ago.

也許最後一部分，我想你可以在我們提供的所有書面和口頭評論中看到這一點，我們保險部門擁有的周期管理能力非常強大。您擁有相當多元化的業務範圍，使我們能夠在市場在這方面有利時過渡到利潤率較高的業務，並儘量減少其他不太有利的領域。所以我認為這些部分確實能讓我們達到 91%、93% 的較低部分。我們仍然對兩年前 IR Day 向您提供的工作假設感到非常滿意。

Thank you. This concludes our question-and-answer session. I would now like to turn the conference back to Juan and Mark for any closing remarks.

謝謝。我們的問答環節到此結束。現在我想將會議轉回胡安和馬克發表閉幕詞。

Great. Thank you for all the questions and the excellent discussion. And I'll close this call by reiterating the confidence in our strategy and our team, frankly, the exceptional talent that's driving our execution. We remain no offense and we remain disciplined and opportunistic in this hard market. We have an unwavering focus on creating sustained value for our stakeholders, and that is top of mind. I look forward to seeing all of you again to discuss our third quarter results. Thank you.

偉大的。感謝您提出的所有問題和精彩的討論。在結束這次電話會議時，我將重申對我們的戰略和團隊的信心，坦率地說，是推動我們執行的傑出人才。我們仍然不冒犯，在這個艱難的市場中我們仍然保持紀律和機會主義。我們堅定不移地致力於為利益相關者創造持續價值，這是我們的首要考慮。我期待再次見到大家討論我們第三季度的業績。謝謝。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。