Fidelis Insurance Holdings Ltd (FIHL) 2024 Q1 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Fidelis Insurance Holdings first-quarter 2024 earnings conference call. (Operator Instructions).

早上好，女士們、先生們，歡迎參加 Fidelis Insurance Holdings 2024 年第一季收益電話會議。（操作員說明）。

With that, I'll now turn the call over to Miranda Hunter, Head of Investor Relations. Ms. Hunter, please go ahead.

現在，我將把電話轉給投資者關係主管米蘭達·亨特 (Miranda Hunter)。亨特女士，請繼續。

Good morning and welcome to the Fidelis Insurance Group first quarter of 2024 earnings conference call. With me today are Daniel Burrows, our CEO; and Allan Decleir, our CFO.

早上好，歡迎參加 Fidelis 保險集團 2024 年第一季財報電話會議。今天和我在一起的有我們的執行長 Daniel Burrows；和我們的財務長艾倫·德克萊爾 (Allan Decleir)。

Before we begin, I'd like to remind everyone that statements made during the call including the question-and-answer section may include forward-looking statements. These statements are based upon management's current assessments and assumptions and are subject to a number of risks and uncertainties. These risks and uncertainties are described in our 2023 annual report on Form 20-F filed with the SEC on March 15.

在開始之前，我想提醒大家，電話會議（包括問答部分）中所做的陳述可能包含前瞻性陳述。這些陳述是基於管理層目前的評估和假設，並受到許多風險和不確定性的影響。這些風險和不確定性在我們於 3 月 15 日向 SEC 提交的 2023 年年度報告 20-F 中進行了描述。

Although we believe that the expectations reflected in forward-looking statements have a reasonable basis when made, we can give no assurance these expectations will prove to be achieved. Consequently, actual results may differ materially from those expressed or implied. For more information, including on the risks and other factors that may affect future performance, investors should also review periodic reports that are filed by us with the SEC from time to time.

儘管我們認為前瞻性陳述中反映的預期在做出時有合理的基礎，但我們不能保證這些預期將被實現。因此，實際結果可能與明示或暗示的結果有重大差異。如需了解更多信息，包括可能影響未來業績的風險和其他因素，投資者還應查看我們不時向 SEC 提交的定期報告。

Management will also make reference to certain non-GAAP measures of financial performance. The reconciliation to US GAAP for each non-GAAP financial measure and our definition of RPI which is our renewal pricing index can be found in our current report on Form 6-K furnished with the SEC yesterday, which contains our earnings press release and is available on our website at fidelisinsurance.com.

管理階層也會參考某些非公認會計準則財務績效指標。每項非GAAP 財務指標與美國GAAP 的對帳以及我們對RPI（即我們的更新定價指數）的定義可以在我們昨天向SEC 提供的6-K 表中的當前報告中找到，其中包含我們的收益新聞稿，可在我們的網站 fidelisinsurance.com 上。

And with that, I'll turn the call over to Dan.

然後，我會將電話轉給丹。

Thank you, Miranda. Good morning, everyone, and welcome to Fidelis Insurance Group's first-quarter earnings call. I'm very pleased to report that we delivered a strong start to the year as we've successfully capitalized on the continued mature hard market conditions, leaning into our core lines, achieving sustained profitable growth, leveraging our lead position to generate ample results, and broadening the footprint of our business.

謝謝你，米蘭達。大家早安，歡迎參加菲德利斯保險集團第一季財報電話會議。我很高興地向大家報告，我們在今年取得了良好的開局，因為我們成功地利用了持續成熟的硬市場條件，專注於我們的核心業務，實現了持續的盈利增長，利用我們的領先地位產生了充足的業績，並擴大我們的業務範圍。

In the first quarter, we increased growth premiums written by 21.6% and delivered a combined ratio of 85.8%, both of which were in line with our expectations. These excellent results reflect our strong underwriting and risk selection capabilities across our growing and well-diversified book of business. We continue to see positive pricing across our portfolio with an RPI for the first quarter of 112%, demonstrating our ability to achieve preferential terms in a verticalized market. We delivered another strong course of returns with an annualized operating ROAE of 14%. Again, in line with our expectations, we also grew book value per diluted common share for $21.22.

第一季度，我們的成長保費成長了 21.6%，綜合成本率達到 85.8%，均符合我們的預期。這些出色的業績反映了我們在不斷成長和多元化的業務中強大的承保和風險選擇能力。我們的投資組合繼續保持積極的定價，第一季的零售價格指數 (RPI) 為 112%，這表明我們有能力在垂直化市場中實現優惠條件。我們再次實現了強勁的回報，年化營運 ROAE 達到 14%。同樣，與我們的預期一致，我們還將攤薄後普通股的帳面價值增加至 21.22 美元。

For the full year, we remain on track to generate ROAE in the 14% to 16% range as we earn a greater portion of our capacity exposed premium in the second half of the year. As our results demonstrate, our strategy and structure are working exactly as intended, we have the flexibility, discipline, and market access to deploy capital where we believe there are attractive risk-reward opportunities in what continues to be the best market we have seen in decades.

全年而言，我們仍有望實現 14% 至 16% 範圍內的 ROAE，因為我們在下半年賺取了更大比例的產能暴露溢價。正如我們的結果所表明的那樣，我們的策略和結構完全按照預期運作，我們擁有靈活性、紀律和市場准入來部署資本，我們相信在這仍然是我們所見過的最好的市場中存在有吸引力的風險回報機會幾十年。

We are leveraging our scale, lead positioning, and deep relationships with brokers and clients to grow our business and have constructed a diversified portfolio, short held specialty risks, which we believe is well positioned to deliver combined ratios in the mid to high 80s throughout the cycle. And as a reminder, we do not write casualty lines. The strength of our strategy is the daily underwriting calls, which were attended by all underwriters, both the Fidelis Insurance Group and the Fidelis partnership. These calls provide insight across our entire portfolio, giving a forum to discuss our offering on each individual risk.

我們正在利用我們的規模、領先地位以及與經紀商和客戶的深厚關係來發展我們的業務，並構建了多元化的投資組合、空頭持有的專業風險，我們相信，我們的綜合比率處於有利位置，可以在整個市場中提供80 年代中高的綜合比率。提醒一下，我們不會寫傷亡訊息。我們策略的優勢在於每日核保電話會議，所有核保人（包括 Fidelis 保險集團和 Fidelis 合夥企業）均參加了會議。這些電話會議提供了對我們整個投資組合的洞察，提供了一個論壇來討論我們針對每個單獨風險的產品。

They enhance our ability to cross sell across target lines and help us quickly respond to market dynamics and capitalize on areas of opportunity. We continue to see opportunities across our core lines with property direct and facultative being a great example where we delivered growth of 36.5% compared to prior period, and we are capitalizing on attractive pricing within our broader facultative portfolio.

它們增強了我們跨目標線交叉銷售的能力，幫助我們快速回應市場動態並利用機會領域。我們繼續在我們的核心業務中看到機會，其中直接房地產和臨時性房地產就是一個很好的例子，與上一時期相比，我們實現了36.5% 的成長，我們正在利用更廣泛的臨時性投資組合中具有吸引力的定價。

In the first quarter, we announced our participation and investment in the new Lloyd's Syndicate 3123 with the Fidelis partnership, execute our capital and underwriting strategy and broadening the footprint of our business. With the targeted launch date of July 1, this vehicle is expected to add to a long-term growth by providing access to enhanced ratings platform, global licensing, and Lloyd's-only business. The Syndicate right business across multiple insurance and reinsurance policies and with an extension of our strategy to leverage our expertise to take lead positions.

第一季度，我們宣布與 Fidelis 合作夥伴參與並投資新的 Lloyd's Syndicate 3123，執行我們的資本和承保策略並擴大我們的業務範圍。該工具的目標發布日期為 7 月 1 日，預計將透過提供增強的評級平台、全球許可和勞合社獨有的業務來促進長期成長。該集團在多種保險和再保險保單中開展正確的業務，並擴展了我們的策略，以利用我們的專業知識來佔據領先地位。

Fidelis Insurance Group will be taking a variable credit share across the portfolio, which enables us to access additional business channels that align to our current risk appetite. This is a perfect example of why our underwriting relationship with the Fidelis partnership works so well. Our long-term agreement was designed to enable us to match the right risk with the right capital, exercising our right of first refusal with this variable process there allows us to do just that, participating in the lines where we have more risk appetite.

Fidelis Insurance Group 將在整個投資組合中佔據可變的信用份額，這使我們能夠獲得符合我們當前風險偏好的其他業務管道。這是我們與 Fidelis 合作夥伴的核保關係如此順利的完美例子。我們的長期協議旨在使我們能夠將適當的風險與適當的資本相匹配，透過這種可變流程行使我們的優先購買權，使我們能夠做到這一點，參與我們更有風險偏好的業務。

As we consider industry events in the quarter, we wanted to touch on the March 26 Baltimore Bridge collapse, which will impact the specialty insurance market. Given the complexities surrounding the event, it could take years to fully resolve. We continue to monitor developments and believe any loss resulting from the bridge collapse will be manageable within our diversified portfolio.

當我們考慮本季的行業事件時，我們想談談 3 月 26 日巴爾的摩大橋倒塌事件，這將對專業保險市場產生影響。鑑於該事件的複雜性，可能需要數年時間才能完全解決。我們將繼續關注事態發展，並相信橋樑倒塌造成的任何損失都可以在我們多元化的投資組合中得到控制。

In summary, I'm very pleased with our first quarter performance, which positions us for another year of strong profitability, growth, and return.

總而言之，我對我們第一季的業績感到非常滿意，這使我們在新的一年中實現強勁的盈利能力、成長和回報。

With that, I'll pass it over to Allan to walk through our financial results in more detail.

接下來，我將把它交給艾倫，讓他更詳細地介紹我們的財務表現。

Thanks, Dan, and I'd also like to welcome everyone joining our first-quarter earnings call.

謝謝丹，我也歡迎大家參加我們的第一季財報電話會議。

As Dan mentioned, we had an excellent first quarter to operating net income of $87.3 million or $0.74 per diluted common share and an annualized operating return on average equity of 14%. Our book value for diluted common share at March 31 was $21.22.

正如 Dan 所提到的，我們第一季的營運淨利非常出色，達到 8,730 萬美元，即每股稀釋普通股 0.74 美元，平均股本年化營運報酬率為 14%。截至 3 月 31 日，我們稀釋後普通股的帳面價值為 21.22 美元。

Looking at our gross premiums written, we have excellent topline growth of 21.6% in the quarter to $1.5 billion compared to the first quarter of 2023. This was driven in large part by the specialty segment, which grew by $199.9 million or 24% to $1 billion. This is consistent with our expectations for growth to be broadly in line with what we saw last year. Specialty growth was primarily driven by property DNF, which saw an increase of $62.4 million or 36.5% from the prior-year period, benefiting from the continued strong rating environment and new business.

從我們的毛保費來看，與 2023 年第一季相比，我們本季的營收成長了 21.6%，達到 15 億美元。這在很大程度上是由專業細分市場推動的，該細分市場成長了 1.999 億美元，即 24%，達到 10 億美元。這符合我們對成長與去年大致一致的預期。專業業務的成長主要是由房地產《DNF》推動的，得益於持續強勁的評級環境和新業務，該業務較去年同期增長了 6,240 萬美元，即 36.5%。

The growth is in line with the overall 38.7% growth we saw in this class across 2023. Other drivers of growth within our specialty book in the quarter included other property which saw an increase of $55.7 million, and marine which saw an increase of $49.9 million.

這一增長與我們在 2023 年看到的該類別 38.7% 的整體成長一致。本季我們專業書籍中的其他成長驅動因素包括其他財產（增加了 5,570 萬美元）和海運（增加了 4,990 萬美元）。

As a reminder, there is seasonality within our specialty book with marines and aviation and aerospace being more heavily weighted to the first half of the year, while in property DNF, which we expect to be the key driver of specialty growth this year, we anticipate a more even distribution of premium across the quarters.

提醒一下，我們的專業書籍中存在季節性，其中海軍陸戰隊和航空航天在今年上半年的權重更大，而在房地產《地下城與勇士》中，我們預計這將成為今年專業增長的主要驅動力，我們預期各季度的保費分配更加均勻。

Bespoke premiums were consistent with prior periods with first-quarter gross premiums written of $153.5 million, an increase of 1.8% versus prior year. Our reinsurance segment grew by $66.4 million or 25.5% driven by property reinsurance. As Dan discussed in our year-end call, we write approximately a third of our reinsurance book at one-one, and in 2024, we saw strong one-one renewals achieving RPIs of 118%.

客製化保費與前期一致，第一季毛保費為 1.535 億美元，比去年同期成長 1.8%。在財產再保險的推動下，我們的再保險業務成長了 6,640 萬美元，即 25.5%。正如 Dan 在年終電話會議中所討論的那樣，我們約三分之一的再保險帳簿是透過一對一續保的，到 2024 年，我們看到強勁的一對一續保實現了 118% 的 RPI。

Looking ahead, premiums from the new Lloyd Syndicate 3123 variable quarter share, and our 9.9% investment in the Syndicate will flow through each of our three segments. Our participation in the Syndicate won't materially impact our expectations for growth this year.

展望未來，新的 Lloyd Syndicate 3123 可變季度份額的溢價以及我們對該 Syndicate 的 9.9% 投資將流經我們的三個部門。我們參與該辛迪加不會對我們今年的成長預期產生重大影響。

On a net premium's earned basis, we delivered an increase of 26.4% from the prior year to $488 million in the first quarter of 2024 consistent with our growth and growth premiums written. As noted by Dan, our premiums are not earned on a straight line basis, property catastrophe premiums more heavily weighted the back half of the year. Our excellent underwriting performance resulted in a combined ratio of 85.8% for the first quarter, which included a loss ratio of 37.4%. This 37.4% is composed of attritional losses, catastrophe and large losses, and prior year development.

在淨保費收入的基礎上，我們在 2024 年第一季交付的保費比上一年增長了 26.4%，達到 4.88 億美元，這與我們的增長和增長保費保持一致。正如丹所指出的，我們的保費不是直線賺取的，財產巨災保費在今年下半年的權重更大。我們優異的承保業績使得第一季綜合成本率為85.8%，其中損失率為37.4%。這 37.4% 由自然損耗、災難和巨額損失以及上一年的發展組成。

Looking at attritional losses, in the first quarter, we had $146.3 million or 30% compared to $139.5 million or 36% in the prior-year period. Catastrophe and large losses for the first quarter were $103 million, which includes a $51.2 million provision for the Baltimore Bridge collapse in addition to other IBNR and smaller events in various lines of business, including aviation and aerospace, marine and property DNF.

從自然損耗來看，第一季我們的損耗為 1.463 億美元，即 30%，而去年同期為 1.395 億美元，即 36%。第一季的災難和巨額損失為 1.03 億美元，其中包括為巴爾的摩大橋倒塌準備的 5,120 萬美元，以及其他 IBNR 和各個業務領域的小型事件，包括航空和航太、海洋和房地產 DNF。

Specific to the Baltimore Bridge collapse, our exposure is in line with our market position. We anticipate that any settlement will take a few years to play out, and as such, we have set our provision based on a probabilistic model. We have net favorable prior-year development of $67 million for the quarter versus $2.1 million in the prior-year period. Of the $67 million for the quarter, specialty was $34.4 million, reinsurance was $24.3 million, and bespoke was $8.3 million. And this was all primarily driven by better-than-expected loss activity.

具體到巴爾的摩大橋倒塌事件，我們的風險敞口與我們的市場地位相符。我們預計任何解決方案都需要幾年時間才能完成，因此，我們根據機率模型製定了條款。本季我們的上年淨有利發展額為 6,700 萬美元，而去年同期為 210 萬美元。在本季的 6,700 萬美元中，專業保險為 3,440 萬美元，再保險為 2,430 萬美元，客製化保險為 830 萬美元。這主要是由好於預期的損失活動所推動的。

Turning to expenses, policy acquisition expenses from third parties were 27.9 points of the combined ratio for the quarter consistent with the prior-year period. The Fidelis partnership commissions were 15.7 points of the combined ratio for the quarter of which 1.8 points related to accrued profit commissions due to the strong underwriting results in the quarter. And finally, our general and administrative expenses were 4.8 points of the combined ratio for the quarter compared to 4.3 points of the combined ratio in the prior-year period.

費用方面，來自第三方的保單獲取費用佔本季綜合成本率為 27.9 個百分點，與去年同期持平。Fidelis 合作夥伴佣金佔本季綜合比率的 15.7 個百分點，其中 1.8 個百分點與應計利潤佣金相關，原因是本季承保業績強勁。最後，本季的綜合成本率為 4.8 個百分點，而去年同期的綜合成本率為 4.3 個百分點。

Looking now at investments. Net investment income increased to $41 million for the first quarter of 2024, compared with $20.4 million in the prior-year period. During the first quarter of 2024, we sold $201.2 million of securities with an average book yield of 0.9%, resulting in a realized loss of $7.4 million. We reinvested the proceeds in securities with an average purchase yield of approximately 4.9%. At March 31 2024, the average rating of fixed income securities remains very high at AA minus with a book yield of 4.2%. Duration has lengthened slightly to 2.2 years.

現在看投資。2024 年第一季淨投資收入增至 4,100 萬美元，而去年同期為 2,040 萬美元。2024 年第一季度，我們出售了 2.012 億美元的證券，平均帳面收益率為 0.9%，虧損 740 萬美元。我們將所得款項再投資於平均購買收益率約 4.9% 的證券。截至2024年3月31日，固定收益證券的平均評級仍然很高，為AA-，帳面收益率為4.2%。持續時間略為延長至2.2年。

Turning to capital management, we remain committed to maintaining a strong balance sheet. As I mentioned last quarter, our capital management strategy includes, first, allocating capital to support and grow our business in attractive segments of the market; second, using outwards reinsurance as a flexible and aligned source of capital; and finally, returning excess capital to shareholders through a combination of share buybacks and dividends.

談到資本管理，我們仍然致力於維持強勁的資產負債表。正如我上季度所提到的，我們的資本管理策略包括：首先，分配資本以支持和發展我們在有吸引力的市場領域的業務；其次，利用向外再保險作為靈活、一致的資本來源；最後，透過股票回購和股利的結合，將多餘的資本回饋給股東。

Specifically, during the first quarter, as we mentioned, we grew our premiums and targeted lines seeing overall premium growth across our book of 21.6%. Regarding outwards reinsurance, we sponsored two new tranches of our Herbie Re capacity bond for $150 million of protection to cover earthquake and main storm events in the US, enhancing our overall outwards program, and we returned $16.8 million to shareholders through 11.8 million of common dividends and repurchases of $5 million. Subsequent to March 31, we have repurchased another $8.3 million of share. As of today, we have $36.7 million remaining in our share repurchase authorization.

具體來說，正如我們所提到的，在第一季度，我們增加了保費和目標險種，我們的保費整體成長了 21.6%。在向外再保險方面，我們贊助了兩批新的Herbie Re 容量債券，提供1.5 億美元的保護，以涵蓋美國的地震和主要風暴事件，增強了我們的整體向外再保險計劃，並通過1,180 萬股普通股利向股東返還了1,680 萬美元並回購500萬美元。3 月 31 日之後，我們又回購了價值 830 萬美元的股票。截至今天，我們的股票回購授權還剩 3,670 萬美元。

In summary, I'm very pleased with our excellent financial performance in the first quarter of 2024. Looking ahead, we are confident about the future as we continue to focus on delivering profitable underwriting and book value growth.

總而言之，我對我們 2024 年第一季出色的財務表現感到非常滿意。展望未來，我們對未來充滿信心，因為我們將繼續專注於實現承保獲利和帳面價值成長。

I will now turn it back to Dan for additional remarks.

我現在將其轉回給丹以徵求補充意見。

Thanks, Allan. As you can see, we entered 2024 in an incredibly strong position. We are operating in a sustained hard market with attractive levels of pricing across our portfolio and are practically remains to actively capitalize on the significant opportunities this presents.

謝謝，艾倫。正如您所看到的，我們進入 2024 年時處於極其有利的地位。我們正在持續艱難的市場中運營，我們的投資組合的定價水平相當有吸引力，並且實際上仍將積極利用這帶來的重大機會。

Taking a closer look at our segment, in specialty, which is our largest conditions and pricing remain attractive across our core lines, and in the first quarter, we achieved specialty RPIs of 111%. As a reminder, our key drivers of specialty of properties, direct and faculty, marine and aerospace, and our aim is to be a top three market for these classes. Our appetite for property direct and facultative has increased since late 2019 in response to attractive pricing levels given by the frequency of natural catastrophe and climate driven events, and the exit of a number of larger carriers.

仔細看看我們的專業細分市場，這是我們最大的條件，並且在我們的核心產品線中定價仍然具有吸引力，在第一季度，我們實現了 111% 的專業 RPI。提醒一下，我們的主要驅動力是房地產、直接和教師、海洋和航空航天專業，我們的目標是成為這些類別的前三大市場。自 2019 年底以來，由於自然災害和氣候驅動事件的頻繁發生以及許多大型營運商的退出而帶來的有吸引力的定價水平，我們對直接和兼任的房地產的興趣增加。

Following $120 billion of natural capacity losses in 2023 and an active start to 2024, including several US severe weather events, the market has remained dislocated with increased demand and no new meaningful supply of capital coming in. We continue to see attractive opportunities to deploy capacity across this key line of business in line with our targeted risk selection approach, and we are pleased with the continued strong performance of this line during the quarter. Marine also remains a significant market for us where we're able to leverage our leadership position to cross sell and set pricing terms and conditions across multiple lines.

繼 2023 年自然產能損失 1,200 億美元以及 2024 年的積極開局（包括美國的幾次惡劣天氣事件）之後，市場仍然混亂，需求增加，但沒有新的有意義的資本供應進來。我們繼續看到根據我們有針對性的風險選擇方法在這一關鍵業務領域部署產能的誘人機會，我們對該業務在本季度持續強勁的表現感到滿意。船舶對我們來說仍然是一個重要的市場，我們能夠利用我們的領導地位跨多個產品線交叉銷售並設定定價條款和條件。

We are seeing particularly attractive opportunities in large marine construction where significant capacity is required and we've had several new business wins this year. We've tried ourselves and our ability to innovate, enabling us to offer meaningful solutions to our clients. We are an established leader in the classes we participate in, always looking to create alpha performance.

我們在需要大量產能的大型海洋建築領域看到了特別有吸引力的機會，今年我們贏得了幾項新業務。我們已經嘗試了自己和我們的創新能力，使我們能夠為客戶提供有意義的解決方案。我們是所參加課程中公認的領導者，始終致力於創造一流表現。

Looking ahead, the specialty market continues to offer growth across our four lines at attractive returns, and we expect specialty to continue to contribute to our growth throughout 2024.

展望未來，專業市場將繼續為我們的四個產品線提供有吸引力的成長，並帶來誘人的回報，我們預計專業市場將在 2024 年繼續為我們的成長做出貢獻。

In bespoke, our established relationship with clients and brokers along with our underwriting expertise enables us to maintain our position as an industry leader, particularly when considering the high barriers to entry for others given the nature of the underlying risks. The unique nature of this business results in a less commoditized, more tailor made product that delivers low volatility underwriting performance with less exposure to typical market cycle.

在客製化方面，我們與客戶和經紀人建立的關係以及我們的承保專業知識使我們能夠保持行業領導者的地位，特別是考慮到潛在風險的性質，其他人進入障礙很高。該業務的獨特性質導致產品商品化程度較低，客製化程度更高，可提供低波動性的承保業績，並減少對典型市場週期的影響。

Given the highly tailored nature of this portfolio, premiums do not follow a regular predictable schedule. The first quarter was a solid start for the fiscal portfolio with premium in line with expectations.

鑑於該投資組合的高度客製化性，保費並不遵循常規的可預測時間表。第一季財政投資組合開局良好，溢價符合預期。

Looking ahead, our pipeline of structured risk transfer and political risk deals for the second quarter is in line with the prior year period and we expect opportunities to continue for the rest of 2024.

展望未來，我們第二季的結構性風險轉移和政治風險交易管道與去年同期一致，我們預計 2024 年剩餘時間將繼續出現機會。

Finally, in reinsurance, we continue to execute our strategies of deploying capacity at targeted attachment points with core clients, and this was an excellent quarter for this segment. Rate remains a practice for an enhanced pricing environment, an adjustment of terms and conditions over the past few years, and we were able to achieve higher rate increases across our portfolio given our thoughts from price leadership.

最後，在再保險領域，我們繼續執行在核心客戶的目標附著點部署容量的策略，對於該領域來說，這是一個出色的季度。過去幾年，利率仍然是改善定價環境、調整條款和條件的一種做法，考慮到我們對價格領先的想法，我們能夠在我們的投資組合中實現更高的利率成長。

RPI for the quarter, there was 118% and was the main driver for premium growth year on year. We continue to see clients looking to buy more limits in the US and Europe for our ability to offer private layers. Helped us secure our place on programs, and whilst we are beginning to see an uptick in demand, there's been no major influx of new capacity. We continue to manage our portfolio in line with our view of risk and are happy with our position heading into the rest of the year.

該季度的 RPI 為 118%，是保費較去年同期成長的主要推動力。我們繼續看到客戶希望在美國和歐洲購買更多限制，以提高我們提供私有層的能力。幫助我們確保了在計劃中的地位，雖然我們開始看到需求上升，但並沒有大量新產能湧入。我們繼續根據我們的風險觀點來管理我們的投資組合，並對今年剩餘時間的情況感到滿意。

(inaudible) briefly on four one, we saw a positive rate movement continuing in April where our portfolio is driven by Japanese future of renewals. We continue to enhance our broaden and established relationships in the region to create opportunities on our fees of the growth in our portfolio.

（聽不清楚）四月一號，我們看到四月繼續出現積極的利率走勢，我們的投資組合受到日本未來續約的推動。我們繼續加強在該地區的廣泛和已建立的關係，為我們的投資組合成長創造機會。

As we look ahead to the rest of the year, we are focused on deploy capital with best underwriting opportunities -- will further enhance the -- to deliver consistently compelling returns through the cycle and create value for our shareholders. One example is the new Lloyd Syndicate, which opens the door to exploring additional opportunities within Lloyd and longer term, we believe this will lead to broader opportunities globally as we continue our focus on aligning our capital to the right risk.

展望今年剩餘時間，我們的重點是利用最佳承銷機會來部署資本，這將進一步增強在整個週期中提供持續引人注目的回報，並為我們的股東創造價值。一個例子是新的勞合社辛迪加（Lloyd Syndicate），它為探索勞合社內部的更多機會打開了大門，從長遠來看，我們相信，隨著我們繼續專注於將我們的資本與正確的風險相結合，這將在全球範圍內帶來更廣泛的機會。

In closing, 2024 is up to an excellent start. We are pleased with the momentum we had coming out for the first quarter and our ability to capitalize and opportunities across our portfolio. We are confident in the outlook for our business and remain on track to deliver operating ROAE in the 14% to 16% range for the full year, which is above our long term target. We continue to see growth potential in the current market and our scale, lead positioning, balance sheet strength and expert execution from our dedicated teams positions off wealth to deliver sustainable long-term profitable growth and create meaning value for our shareholders.

最後，2024 年是一個好的開始。我們對第一季的勢頭以及我們利用整個投資組合和機會的能力感到滿意。我們對業務前景充滿信心，並將繼續致力於實現全年營運 ROAE 在 14% 至 16% 的範圍內，這高於我們的長期目標。我們繼續看到當前市場的成長潛力，以及我們的規模、領先地位、資產負債表實力和專業團隊的專家執行力，以財富為基礎，實現可持續的長期盈利增長，並為我們的股東創造有意義的價值。

(Operator Instructions) Matt Carletti, Citizens JMP.

（操作員說明）Matt Carletti，Citizens JMP。

I wanted to start, I guess a two-part question on the Baltimore bridge loss. I guess one, if you could give us a little more perspective on how you set that loss reserve specifically, if you can, kind of what your view of industry loss is or if you even able to kind of translate in those terms? And secondly, just what impact do you think that loss might have on the related, particularly marine, but related markets?

我想開始，我想是關於巴爾的摩大橋損失的兩部分問題。我想，如果你能給我們更多關於你如何具體設定損失準備金的看法，如果可以的話，你對行業損失的看法是什麼，或者你是否能夠用這些術語進行翻譯？其次，您認為損失可能會對相關市場（尤其是海洋市場）產生什麼影響？

I think firstly we look at Baltimore and say it's within expectation given our market profile. As you know, we take a standard reserving approach. We would weight limits against the full range of probabilistic outcomes. We've written over a billion dollars of specialty in the quarter, so we think therefore the loss, any loss, is very manageable within that sort of diversified portfolio. But it's very complex, and it's very early.

我認為首先我們看看巴爾的摩，並說考慮到我們的市場狀況，這在預期之內。如您所知，我們採用標準預訂方法。我們會根據所有機率結果來權衡限制。我們在本季已經賣出了超過 10 億美元的專業資金，因此我們認為，在這種多元化的投資組合中，任何損失都是可以控制的。但這非常複雜，而且還為時過早。

So I think to talk about -- so the second part of your question, how we think about it will impact the market? We'll just wait for it to develop and see what the impact to the market will be in the future. I just think it's too early to think about exactly how pricing will be affected.

所以我想談談──你問題的第二部分，我們如何看待它會影響市場？我們就等待它的發展，看看未來會對市場產生什麼影響。我只是認為現在考慮定價將如何受到影響還為時過早。

And then maybe just a modeling follow-up question. Policy acquisition costs by segment had some variation and you referenced mix of business and some reinsurance seeding commissions. Is there any -- is it just kind of quarterly-to-quarterly fluctuation there or is there anything kind of more forward looking we should think about? I guess asked in other way. Is there any reason to think kind of where we sat by segment on like a full year ‘23 level if it would look materially different for full year '24?

然後也許只是一個建模後續問題。按部門劃分的保單獲取成本存在一些差異，您提到了業務組合和一些再保險種子佣金。是否存在任何——只是季度間的波動，還是有任何我們應該考慮的更具前瞻性的事情？我猜是用其他方式問的。如果 24 全年的情況看起來有很大不同，是否有任何理由認為我們按細分市場的情況就像全年 23 水平一樣？

No, I think you have the right answers. One important factor to always consider on our book of business is that we do buy a significant amount of outwards reinsurance, and that can also significantly impact the post-acquisition costs on a quarter-to-quarter basis. If it's quarter share business that we buy on an outwards basis, there's a seeding commission and a profit commission that comes back, back to us. It can fluctuate quarter to quarter, depending on mix of business that is written and earned in the quarter. But I think overall, the run rate in the first quarter and in 2023 is the way to think about it.

不，我認為你有正確的答案。在我們的業務中始終要考慮的一個重要因素是，我們確實購買了大量的分出再保險，這也會對每季的收購後成本產生重大影響。如果我們向外購買的是四分之一股份業務，那麼我們會收到種子佣金和利潤佣金。它可能會按季度波動，具體取決於該季度寫入和賺取的業務組合。但我認為總體而言，第一季和2023年的運行率是考慮的方式。

Mike Zaremski, BMO.

邁克·扎倫斯基 (Mike Zaremski)，BMO。

Just following-up because I think some of us are trying to track all the -- what each company is thinking of the Baltimore bridge losses. Some companies have said like the range is $1 billion to $3 billion they're reserving at the upper end. Just curious if you wanted to provide any kind of color on that. If not, I can just move on to the next question.

只是跟進，因為我認為我們中的一些人正在努力追蹤所有的——每家公司對巴爾的摩大橋損失的看法。一些公司表示，他們保留的上限為 10 億至 30 億美元。只是好奇你是否想提供任何類型的顏色。如果沒有，我可以繼續下一個問題。

I think, as I said, we weigh against all of the probabilistic outcomes, and I think if you think of the top end of our range, it'll be bang in line with the commentary you've heard from some of our peers.

我認為，正如我所說，我們會權衡所有機率結果，而且我認為，如果您考慮我們範圍的上限，它將與您從我們的一些同行那裡聽到的評論一致。

Okay. So just wwitching gears to a lot of talk in recent months about property pricing, power decelerating, but still increasing and coming off of record levels in many cases is -- look, I'm looking at some of your RPI KPIs that are helpful. Is that kind of directionally. It looks like that's what you guys are also seeing? I don't think bespoke RPIs broken out as often, but what's your thought process and kind of pricing power in the overall marketplace?

好的。因此，近幾個月來，關於房地產定價、電力減速（但在許多情況下仍在增加並低於創紀錄水平）的大量討論是——看，我正在查看一些有幫助的 RPI KPI。是那種有方向性的嗎？看來你們也看到這樣的情況了？我認為客製化 RPI 不會經常出現，但您在整個市場中的思考過程和定價能力是什麼？

It's a really good question. Firstly, on Bespoke, because of the nature of that product line, it tends to be more insulated against market cycles. So we do see some improvement in terms on some of those lines, but generally it kind of flatter as opposed to the reinsurance and the specialty. But when we think about market duration, it's still a best -- or pricing in the market, still the best market we've seen for 20 to 25 years.

這是一個非常好的問題。首先，在客製化產品上，由於該產品線的性質，它往往更能不受市場週期的影響。因此，我們確實看到其中一些產品線有所改善，但總體而言，與再保險和專業保險相比，它更加平坦。但當我們考慮市場持續時間時，它仍然是最好的——或者說市場定價，仍然是我們 20 到 25 年來見過的最好的市場。

We've had compound increases over the last three or four, five years. It's still a very verticalized market. So we've talked about this before. So not everyone starts in the same place. As a leader on across the portfolio, about 90% of the business then we're able to dictate terms, conditions, and we get better pricing, uh, better coverage.

在過去的三、四年、五年裡，我們實現了複合成長。這仍然是一個非常垂直化的市場。所以我們之前已經討論過這個問題。所以不是每個人都從同一個地方開始。作為整個投資組合中約 90% 的業務的領導者，我們能夠規定條款、條件，並且我們可以獲得更好的定價，呃，更好的覆蓋範圍。

Obviously, we see the opportunities early as well. We're able to have a think, a better risk election on that basis, but we're still seeing positive movement. There's a lot of demand in the market and despite those secular factors that we've talked about long and hard, climate change, strategy reserves, inflation, there has really been no new influx of significant capacity into the market, but inflation is driving demand and we've seen that. Having that lead line, that's scalable, it gives us leverage. We're important and relevant to the brokers and clients, and that's how we get the differential terms. That's what creates the alpha.

顯然，我們也很早就看到了機會。我們能夠在此基礎上思考，進行更好的風險選舉，但我們仍然看到積極的進展。市場上有很多需求，儘管我們長期討論了氣候變遷、戰略儲備、通貨膨脹等長期因素，但確實沒有新的大量產能湧入市場，但通膨正在推動需求我們已經看到了這一點。有了這條可擴展的引導線，它給了我們槓桿作用。我們對於經紀人和客戶來說很重要且相關，這就是我們獲得差異條款的方式。這就是創建阿爾法的原因。

And just lastly, on the share authorization, the stocks outperformed meaningfully since you announced that just and anything we should think about in terms of how you all kind of are going to pace it going forward based on valuation?

最後，在股票授權方面，自從您宣布我們應該考慮的問題是，您將如何根據估值調整未來的步伐？

No, I think when we announced the program in the latter part of December 2023, it was a 50 million buyback program. We said we'd be measured, but at certainly add the values of our shares. It was certainly accretive to shareholders. I think given our current $21.22 book value; we could still continue executing on the program throughout 2024. It was a 12 month authorization, so I think the pacing was right, and I think we will be in the market if, depending on share price and whether it's accretive to book buy.

不，我想當我們在2023年12月下旬宣布該計劃時，它是一個5000萬的回購計劃。我們說過我們會進行衡量，但肯定會增加我們股票的價值。這無疑對股東有利。我認為考慮到我們目前 21.22 美元的帳面價值；我們仍然可以在 2024 年繼續執行該計劃。這是一個 12 個月的授權，所以我認為節奏是正確的，我認為我們將進入市場，這取決於股價以及書籍購買是否會增值。

Yaron Kinar, Jefferies.

亞倫·基納爾，傑弗里斯。

I want to start with the bespoke segment if we could. You offered some very helpful guidance last quarter talking about a pipeline that was relatively flat year over year. I think where there's still a bit of fluctuation is on the session rate there. And I'm guessing it's because the book is essentially all new as opposed to renewed every quarter, and therefore you can see pretty significant fluctuations.

如果可以的話，我想從定制部分開始。上個季度您提供了一些非常有用的指導，談論了同比相對平穩的管道。我認為會話率仍然存在一些波動。我猜這是因為這本書本質上是全新的，而不是每個季度更新一次，因此你可以看到相當大的波動。

But is there any, I guess, guidance or rule of thumb you can offer us in terms of thinking of what a proper seating rate should be there? A and B, maybe you can talk about maybe the differences in the composition of the portfolio year over year that would've resulted in B change in session rate?

但我想，您是否可以為我們提供一些指導或經驗法則來幫助我們思考適當的座位率應該是多少？A 和 B，也許您可以談談投資組合構成逐年的差異，這會導致 B 會話利率改變？

I'll start. I think specifically if this is about business mix and the difference in session rate this time was around, a cyber relationship that we had, and we buy a lot of proportional reinsurance on it. And Allan said earlier, we see that as a very fungible form of capital that helps scale our line. And really gives us leverage as a leader. But if in that particular instance it's because we're seeding out premium because of the scale of the proportional program that we buy on it.

我開始吧。我特別認為，如果這與業務組合有關，而這次會話率的差異是存在的，那麼我們擁有的網絡關係，我們就購買了很多比例再保險。艾倫早些時候說過，我們認為這是一種非常可替代的資本形式，有助於擴大我們的產品線。並真正為我們提供了作為領導者的影響力。但如果在這種特定情況下，這是因為我們因為購買的比例計劃的規模而淘汰了溢價。

And is there a way for us to think about, like, is a 50% session rate a reasonable number to think about going forward? Obviously, there's going to be some fluctuation quarter to quarter, but just want to make sure we're thinking about it correctly.

我們是否有辦法思考，例如，50% 的會話率是一個值得考慮的合理數字？顯然，每個季度都會有一些波動，但只是想確保我們正確地考慮它。

As you mentioned at the start of your question, the Bespoke segment by its nature has some fluctuations on the business -- and they tend to be unique. They're not necessarily all renewals, but in general, we would go with the sort of 2023 overall yearly session rates, which we think of as more in the 40%, maybe as high as 50%. Again, depending on the type of deal, but it'd be more around the range of 40% session.

正如您在問題開始時提到的，定制細分市場本質上對業務有一些波動——而且它們往往是獨特的。它們不一定都是續訂，但總的來說，我們會採用 2023 年總體年度會話率，我們認為該比例在 40% 左右，甚至可能高達 50%。同樣，這取決於交易類型，但更多的是在 40% 會話範圍內。

And my second question, I realize this may be my third, but I'll try it anyway. The timing of reserve reviews this was a very significant release this quarter, I think the largest disclosed quarterly release that I remember. Can you maybe talk about what drove that specifically and maybe how you look at the reserves over the course of the year as well? What books are reviewed?

我的第二個問題，我意識到這可能是我的第三個問題，但無論如何我都會嘗試。儲備審查的時間安排是本季非常重要的發布，我認為是我記憶中披露的最大的季度發布。您能否談談具體的推動因素以及您如何看待這一年的儲備？審查哪些書？

I'll take that question. From for context, I would note again that we do not write any casualty business. We are short duration company. Our average duration of our reserves is two years. As a result, we have always had a process of looking at our reserves on a timely basis, quarter-to-quarter. And so each quarter you'll see that we do release reserves or strengthen reserves based on loss activity for that particular quarter.

我來回答這個問題。從上下文來看，我想再次指出，我們不寫任何傷亡業務。我們是短期公司。我們的儲備平均期限為兩年。因此，我們始終有一個按季度及時檢查儲備的流程。因此，每個季度您都會看到我們確實根據該特定季度的損失活動釋放準備金或加強準備金。

We do not wait for a particular quarter or year-end reserve review. In Q1 2024, the activity in prior years was fairly benign across all three segments. And again, the results that would flow through are purely based on experience. There was no change in assumptions. It was purely based on the actual flow through of results for the quarter.

我們不會等待特定季度或年底的準備金審查。2024 年第一季度，前幾年所有三個細分市場的活動都相當溫和。再次強調，所得出的結果純粹是基於經驗。假設沒有改變。它純粹基於該季度的實際業績流量。

Meyer Shields, KBW.

邁耶·希爾茲，KBW。

Dan, one first question, I just want to make sure I understand it. It sounds like the syndicate is going to be writing reinsurance as well. Should we assume that Fidelis is willing to take on more exposure in reinsurance through the syndicate in addition to whatever pricing momentum?

丹，第一個問題，我只是想確保我理解它。聽起來該集團也將承保再保險業務。我們是否應該假設，除了任何定價動力之外，Fidelis 還願意透過辛迪加承擔更多的再保險業務？

It's a really good question. As you know, we have a variable approach share, so we'll lean into lines where we do have appetite and, and where we have less appetite, we'll take smaller shares. I think we have seen some very positive movement in terms of pricing on the reinsurance portfolio. And as we said in the script, we've taken premium increases rather than exposure increases. So we're monitoring it.

這是一個非常好的問題。如你所知，我們有一個可變的方法份額，所以我們將傾向於我們確實有胃口的產品線，而在我們沒有胃口的地方，我們將採取較小的份額。我認為我們在再保險投資組合的定價方面看到了一些非常積極的變化。正如我們在腳本中所說，我們採取的是保費增加而不是風險增加。所以我們正在監控它。

There are some deals that flow into Lloyd's and Lloyd's only that we'd like to have access to that. That's a whole, one of the whole purposes of the Syndicate is getting access to business. We can't originate now. But we'll stay away from attritional that's not really in our appetite. Depending on the risk, I think this is the key thing around the -- is that we get to see every deal. If it looks attractive we combined it. Uh, but if it's not with an appetite, we won't match our capital to those risks.

有一些交易流入勞合社，只有我們希望能夠接觸到勞合社。總的來說，辛迪加的全部目的之一就是獲得業務。我們現在無法發起。但我們會遠離那些不符合我們胃口的消耗。根據風險的不同，我認為關鍵是我們能夠看到每筆交易。如果它看起來很有吸引力，我們就把它結合起來。呃，但是如果沒有胃口，我們就不會將我們的資本與這些風險相匹配。

And then maybe on the flip side --

然後也許在另一面--

I think I just put out there that, -- sorry, Meyer, sorry to interrupt you. Whatever we say you that's going to have no -- whatever we do would have no impact on our kind of premium for 2024. It's a very small premium item for 2024.

我想我剛剛說了——抱歉，邁耶，抱歉打擾你了。無論我們說什麼，無論我們做什麼，都不會影響 2024 年的保費。這是 2024 年的一款非常小的優質產品。

With regard to the directing facultative book, I was hoping for an update on reinsurance purchasing strategy based on I guess current expectations for midyear property pricing, property reinsurance pricing.

關於指導兼任書，我希望根據我對年中房地產定價、房地產再保險定價的當前預期，對再保險購買策略進行更新。

Another good question, and actually very timely. So as you know, we buy a very broad range or suite of products, both proportional non-proportional index, and 1/1 is a very busy time as is 1/4. We tend to buy the DNF program there. It's coming within expectation. We've actually bought a bit more limit.

另一個好問題，而且實際上非常及時。如您所知，我們購買了非常廣泛的產品或套件，包括比例指數和非比例指數，1/1 是一個非常繁忙的時間，1/4 也是如此。我們傾向於在那裡購買DNF程式。一切都在預料之內。我們實際上買了更多的限量。

You'll know we've just renewed the Herbie Re bonds, two tranches, $150 million, or in total $150 million and that gives us protection for US name storm, and US quake. So as you know, as the portfolio's grown, then we'll look to take opportunity in the reinsurance market just to help us scale our line. Once again, being a leader in a verticalized market, especially like DNF, gives you a very, very differential result. And and we'll take advantage of that market if we can.

您會知道，我們剛剛更新了 Herbie Re 債券，分兩期，1.5 億美元，總計 1.5 億美元，這為我們提供了針對美國名字風暴和美國地震的保護。如您所知，隨著投資組合的成長，我們將尋求利用再保險市場的機會來幫助我們擴大業務規模。再一次，成為垂直市場的領導者，尤其是像 DNF 這樣的市場，會為你帶來非常非常不同的結果。如果可以的話，我們將利用這個市場。

(Operator Instructions) Mike Ward, Citigroup.

（操作員指令）Mike Ward，花旗集團。

I was wondering, just technical -- if the Lloyd structure of seating commission is comparable to the rest of the MGU sourced business?

我想知道，只是技術性的——勞埃德的座位佣金結構是否與 MGU 的其他業務具有可比性？

I think overall, the Lloyd's expense structure is similar to how we have currently and I wouldn't expect any material change until our expenses overall as a result of the Lloyd's participation.

我認為總體而言，勞合社的費用結構與我們目前的情況相似，並且在勞合社的參與導致我們的總體費用之前，我預計不會發生任何重大變化。

And then there is potential, there's hurricane forecast coming out. Just wondering if you guys could remind us your exposure if we do see some of the relatively extreme forecasts.

然後就有可能出現颶風預報。只是想知道如果我們確實看到一些相對極端的預測，你們是否可以提醒我們你們的風險敞口。

I mean, we don't give out details on PMLs. As you know, what we would say, we are exposed at one and 150 to -- and then Southeast Clash, but we do, as I just mentioned, buy, we have a lot of proportional protection on that portfolio in both the Truity and the D&F. And we buy a very broad suite of products. We have non-proportional, we have index products, just renew the bonds, as I said a moment ago. So we think we're very well protected in that portfolio.

我的意思是，我們不會透露有關 PML 的詳細資訊。如你所知，我們會說，我們面臨著 1 和 150 的風險，然後是東南衝突，但正如我剛才提到的，我們確實購買了，我們在 Truity 和D&F。我們購買了非常廣泛的產品。我們有非比例的，我們有指數產品，只是續簽債券，正如我剛才所說的。因此，我們認為我們在該投資組合中受到了很好的保護。

Thank you. This concludes today's question and answer session. I'd like to turn the call back to Daniel Burrows for closing remarks.

謝謝。今天的問答環節到此結束。我想將電話轉回給丹尼爾·伯羅斯（Daniel Burrows），讓其致閉幕詞。

Thank you everyone for joining us today. We appreciate your interest in our company and if you do have any follow up questions, we'll be around to take your call. So thank you very much and have a great day.

感謝大家今天加入我們。我們感謝您對我們公司的興趣，如果您確實有任何後續問題，我們將隨時接聽您的電話。非常感謝您，祝您有美好的一天。

Thank you. That concludes today's conference call. Thank you for participating. You may now disconnect.

謝謝。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。