Global Indemnity Group LLC (GBLI) 2024 Q2 法說會逐字稿

Thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the Global Indemnity group second quarter 2024 earnings conference call. (Operator Instructions)

謝謝你的支持。我叫克里斯塔，今天我將擔任你們的會議操作員。此時此刻，我歡迎大家參加 Global Indemnity 集團 2024 年第二季財報電話會議。（操作員說明）

Thank you. I would now like to turn the conference over to Steven Ries, Head of Investor Relations. Stephen, you may begin.

謝謝。我現在想將會議交給投資者關係主管 Steven Ries。史蒂芬，你可以開始了。

Thank you, Chris. Both As a reminder, today's conference call is being recorded as some remarks may contain forward looking statements. Some of the forward-looking statements can be identified by the use of forward-looking words, including without limitation, beliefs, expectations or estimates.

謝謝你，克里斯。提醒一下，今天的電話會議正在錄音，因為一些言論可能包含前瞻性陳述。一些前瞻性陳述可以透過使用前瞻性字詞來識別，包括但不限於信念、期望或估計。

We caution you that such forward-looking statements should not be regarded as representation by us that the future plans, estimates or expectations contemplated by us will in fact be achieved. Please refer to our annual report on Form 10-K and our other filings with the SEC for description of the business environment in which we operate and important factors that may materially affect our results.

我們提醒您，此類前瞻性聲明不應被視為我們代表我們預期的未來計劃、估計或期望實際上將會實現。請參閱我們的 10-K 表格年度報告以及我們向 SEC 提交的其他文件，以了解我們經營所在的商業環境以及可能對我們的業績產生重大影響的重要因素的描述。

Global M&A Group LLC is not under any obligation and expressly disclaims any such obligation to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

Global M&A Group LLC 不承擔任何義務，並明確否認有任何更新或更改其前瞻性聲明的義務，無論是由於新資訊、未來事件或其他原因。

It's now my pleasure to turn the call over to Mr. Jay Brown, Chief Executive Officer of Global diamonds.

現在我很高興將電話轉給 Global Diamonds 執行長 Jay Brown 先生。

Thank you, Steve. Good morning, and thank you all for joining us for the GBLI. midyear update on financial and operational results. Following our usual format, I will first provide a few overview comments and then our Chief Financial Officer Brian Reilly, we'll review the financial highlights for our insurance operations halfway through the year.

謝謝你，史蒂夫。早安，感謝大家加入我們的 GBLI。年中財務及營運績效更新。按照我們通常的格式，我將首先提供一些概述評論，然後我們的財務長布萊恩·賴利（Brian Reilly）將在年中回顧我們保險業務的財務亮點。

Our team continues to achieve results that are consistent with our plan for 2024 and tracking towards the long-term metrics we established last year. They remain first, growing our business at around 10% per annum. Second, achieving a combined ratio in the low 90s and third manage our insurance expenses to a competitive level 36% to 37%.

我們的團隊繼續取得與我們 2024 年計畫一致的成果，並追蹤我們去年制定的長期指標。他們仍然位居第一，我們的業務每年以 10% 左右的速度成長。其次，實現綜合成本率在 90 左右，第三將我們的保險費用管理到 36% 至 37% 的競爭水平。

While the exit from certain business segments that we entered the year 18 months ago are no longer having a material effect on this year's financial results. As Brian will note later, they do have a significant effect when you compare this year's results to last year.

雖然我們18個月前進入的某些業務部門的退出不再對今年的財務表現產生重大影響。正如布萊恩稍後將指出的，當你將今年的結果與去年進行比較時，它們確實產生了顯著的影響。

In terms of revenues. As noted in our press release, most of our insurance divisions are tracking against long-term double digit growth. We expect that the combination of Pan America, wholesale commercial insured tech and assumed reinsurance.

從收入來看。正如我們在新聞稿中所指出的，我們的大多數保險部門都在實現長期兩位數的成長。我們預期泛美、批發商業保險技術和假設再保險的結合。

We'll be close to this target at year end after recording a 9% increase through the first six months of 2024. However, the expansion of our program division is still a work in progress and will continue to lag a bit in 2024, with revenue growth flat through six months, excluding terminated 2023 programs.

在 2024 年前六個月實現 9% 的成長後，我們將在年底接近這一目標。然而，我們的專案部門的擴張仍在進行中，到 2024 年將繼續略有滯後，收入成長將在六個月內持平（不包括 2023 年終止的專案）。

Brian, will provide a more detailed breakdown of revenue growth in a few months.

布萊恩將在幾個月內提供更詳細的收入成長明細。

Turning to underwriting performance, I was very pleased to record a six month combined ratio of 94.8% for the Penn-America segment in line with our first quarter. This performance was again driven by a continuation of achievement of solid casualty loss ratios and another good quarter for property loss ratios.

談到承保業績，我很高興地看到賓州-美國分部六個月的綜合成本率達到 94.8%，與第一季的情況一致。這一業績再次受到持續實現穩定的傷亡損失率和財產損失率另一個好季度的推動。

Despite the industry, again, seeing catastrophic losses, our six month property cat canisters catastrophic losses dropped by 35% from last year, similar to the level we saw in the first quarter, we continue to record a higher than target expense ratio of 38.6%.

儘管該行業再次出現災難性損失，但我們六個月的房地產貓罐災難性損失比去年下降了35%，與我們第一季看到的水平相似，但我們的費用率仍然高於38.6% 的目標。

As I noted last quarter, we have kept our internal dollar costs in check since last year after the dramatic drop in premium from 2022. And it will take another couple of years for us to start hitting our long-term targets for expense ratio this reflects a conscious decision to keep our 2024 Penn-America staff levels at the same level as last year after the substantial reduction of premium from '22. In order to continue to meet the service needs of our customers.

正如我上季度指出的那樣，自 2022 年以來保費大幅下降後，我們自去年以來一直控制著內部美元成本。我們還需要幾年的時間才能開始實現費用率的長期目標，這反映出我們有意識地做出了決定，即在保費大幅減少後，我們將2024 年賓州大學的員工水平保持在與去年相同的水平。為了持續滿足廣大客戶的服務需求。

And we are also investing heavily in a full digital transformation of our existing technology infrastructure to stay competitive in the markets we serve the first couple of releases of our new modular transaction. Cloud-based infrastructure will go into production for our wholesale commercial binding business agent partners in the second half of this year, supporting our excess liability and special event product. There are many of our commercial wholesale products will be added next year.

我們也大力投資於現有技術基礎設施的全面數位轉型，以在我們為新模組化交易的前幾個版本提供服務的市場中保持競爭力。基於雲端的基礎設施將於今年下半年為我們的批發商業綁定業務代理合作夥伴投入生產，支援我們的超額責任和特殊活動產品。我們有很多商業批發產品明年​​會增加。

We continue to achieve rate increases that are modestly in excess of our assessment of underlying inflation trends. But the market is still somewhat hard in the markets we serve. There's no question that the level of rate increases that we are now that are now being achieved is tempered from what we saw in the past few years. However, this should allow us to support the consistent long-term loss ratio results. We are currently achieving and have experienced historically.

我們繼續實現略高於我們對潛在通膨趨勢評估的升息。但在我們所服務的市場中，市場仍然有些困難。毫無疑問，我們現在所實現的升息水準與過去幾年的情況相比有所緩和。然而，這應該能讓我們支持一致的長期損失率結果。我們目前正在取得成就，並且已經經歷了歷史。

We also continued to deliver favorable investment returns following the repositioning of our investment portfolio to take advantage of the dramatic increases taken place in short-term interest rates over the past 27 months.

在重新定位我們的投資組合以利用過去 27 個月短期利率的大幅上漲之後，我們繼續提供良好的投資回報。

Book yields on our portfolio have continued to increase since the beginning of the year and now sit at 4.5% given that the duration of our portfolio is now at just 1.0 years, we remain well positioned to redeploy our cash flow and maturities into longer dated higher yielding investments as we get past the election and enter 2025.

自今年年初以來，我們投資組合的帳面收益率持續上升，目前為4.5%，考慮到我們投資組合的久期目前僅為1.0 年，我們仍然處於有利位置，可以將現金流和期限重新部署到期限較長、期限較高的債券中。

As we look ahead, we continue to expect an increase in our excess capital from an extraordinarily strong position as I am constantly reminded excess capital is always in the high in the eyes of the beholder. That said, we were very pleased to have A.M. Best affirmed our A. rating and note that our balance sheet strength was again rated at best strongest level. Overall, I am very pleased with their improved results. My colleagues have recorded for the first six months of 2024.

展望未來，我們繼續預期我們的超額資本將在異常強勢的情況下增加，因為我不斷被提醒，超額資本總是在情人眼中處於高位。也就是說，我們很高興有 A.M. Best 肯定了我們的 A. 評級，並注意到我們的資產負債表實力再次被評為最佳最強級別。總的來說，我對他們所取得的進步感到非常滿意。我的同事記錄了 2024 年前六個月的情況。

And we'll now turn it over to Brian to provide a more detailed review of the numbers.

現在，我們將把它交給布萊恩，讓他對這些數字進行更詳細的審查。

Thank you, Jay. As the six month results are tracking similarly to the first quarter. My commentary will focus on results for the first six months. Of course, we can answer any questions you may have. On the second quarter numbers. Net income was $21.5 million in '24 compared to $11.8 million in '23.

謝謝你，傑伊。六個月的業績與第一季類似。我的評論將重點放在前六個月的結果。當然，我們可以回答您的任何問題。關於第二季的數字。24 年淨利為 2,150 萬美元，而 23 年淨利為 1,180 萬美元。

The combination of net income and a $5 million increase in the market value of the fixed income portfolio. Book value per share increased from $47.53 at year end to $48.56 at June 30, including dividends paid in '24 of $0.70 per share.

淨利潤與固定收益投資組合市值增加 500 萬美元相結合。每股帳面價值從年底的 47.53 美元增加到 6 月 30 日的 48.56 美元，其中包括 2024 年支付的每股 0.70 美元的股息。

Return to shareholders was 3.6% for the first half of '24. For the first six months of '24, both underwriting and investment performance contributed to the improvement in net income, starting with investments investments. Investment income increased 18% to $29.8 million from a year ago.

2024 年上半年股東報酬率為 3.6%。2024 年前六個月，承保和投資績效都對淨利潤的改善做出了貢獻，首先是投資。投資收入較去年同期成長 18%，達到 2,980 萬美元。

Actions taken since early 2022 to sell longer-dated securities and shorten duration have translated into much higher current book yields. Cash flows of $37 million, plus $394 million of fixed income securities yielding 3% that matured during the year were reinvested at an average rate of 5.1%.

自 2022 年初以來採取的出售長期證券和縮短久期的行動已轉化為更高的當期帳面收益率。3,700 萬美元的現金流，加上年內到期、收益率為 3% 的 3.94 億美元固定收益證券，以平均 5.1% 的利率進行了再投資。

As Jay noted earlier, the current book yield on our fixed income portfolio is now 4.5% with a one year duration at June 30, 2024. Comparatively at December 31, '22 book yield was 3.4% with duration of 1.7 years. And at December 31, '21, book yield was 2.2% with a duration of 3.2 years.

正如 Jay 先前指出的，我們固定收益投資組合的目前帳面收益率目前為 4.5%，期限為 2024 年 6 月 30 日一年。相比之下，截至12月31日，'22年帳面收益率為3.4%，期限為1.7年。截至2021年12月31日，帳面收益率為2.2%，期限為3.2年。

The average credit quality of the fixed income portfolio remained at AA-. As Jay mentioned earlier, our short term duration portfolio is well positioned we have $423 million of investments maturing in the second half of 2024.

固定收益投資組合平均信用品質維持AA-。正如 Jay 先前提到的，我們的短期投資組合處於有利位置，我們有 4.23 億美元的投資將於 2024 年下半年到期。

We have the flexibility to continue investing in low risk securities and this higher interest rate environment or invest in longer maturities to further increase investment returns if the interest rate environment were to soften significantly.

如果利率環境顯著疲軟，我們可以靈活地繼續投資於低風險證券和較高的利率環境，或投資於較長期限，以進一步提高投資回報。

Now let's move to underwriting performance for the first six months of the year. We continue to see good results as the current half year consult underwriting income was $8.7 million in '24 compared to $3.2 million in '23.

現在讓我們來看看今年前六個月的核保績效。我們繼續看到良好的結果，因為當前半年諮詢承保收入在 24 年為 870 萬美元，而 23 年為 320 萬美元。

This was driven by consolidated accident year combined ratio of 95.8% in '24 compared to 99.1% in '23. The improvement in the current extra underwriting income was due to strong performance in our core business. Penn-america pet America's accident year underwriting income was $9.9 million '24 compared to $6.3 million in '23.

這是由於 24 年綜合事故年綜合比率為 95.8%，而 23 年為 99.1%。目前額外核保收入的改善得益於我們核心業務的強勁表現。Penn-america pet America 的事故年承保收入 24 年為 990 萬美元，而 23 年為 630 萬美元。

As Jay noted, Pan America's action year combined ratio was 94.8% in '24, an improvement of two points from 96.8% in the same period last year. The accident excellent overall accident year loss ratio of 56.3 was mainly due to performance of our property business.

正如 Jay 指出的，泛美 24 年的行動年綜合成本率為 94.8%，比去年同期的 96.8% 提高了兩個百分點。事故優秀總體事故年損失率為56.3，主要得益於我們的物業業務的表現。

The property loss ratio improved to 53.1% in '24 compared to 63% in '23 due to both non-catastrophe and catastrophe performance. Non-catastrophe loss ratio improved to [44.5% in 2024 compared to 52.9%] a year ago due to the decline in the number of large or large fire losses we experienced in 2023.

由於非災難和災難表現，財產損失率從 23 年的 63% 提高到 24 年的 53.1%。由於 2023 年經歷的特大火災損失數量下降，非災難損失率從一年前的 52.9% 提高到 2024 年的 44.5%。

CAT loss ratio improved to 8.6% in '24 compared to 10.1% and 23. As for the casualty loss ratio, it remains it remains in line in line with expectations at 58.8%. Unlike 2023, our non-core operations have a diminished effect on our overall performance.

CAT 丟失率在 24 年改善至 8.6%，而 23 年為 10.1%。至於傷亡損失率，58.8%仍符合預期。與 2023 年不同，我們的非核心業務對整體績效的影響力減弱。

Our non-core operations net earned premium has dropped to $10.9 million in 2024 compared to $85.9 million in 2023, mainly from an assumed retrocession casualty treaty which was terminated at the end of 2022.

我們的非核心業務淨賺保費已降至 2024 年的 1,090 萬美元，而 2023 年為 8,590 萬美元，主要來自於 2022 年底終止的假定轉分保傷亡條約。

Further, the runoff of our exit specialty property business resulted in no catastrophe losses in 2024 compared to $3.2 million a year ago. The overall underwriting loss was $1.2 million for 2024 compared to $3.1 million in '23, $2 million better than last year.

此外，我們退出特種房地產業務的流失在 2024 年沒有造成災難性損失，而一年前為 320 萬美元。2024 年的整體承保損失為 120 萬美元，而 2023 年為 310 萬美元，比去年減少了 200 萬美元。

The combined ratio was 110.7%. The loss ratio is in line with our expectations at $0.61, but the runoff expenses remain a bit high as we wind down a number of smaller underwriting portfolios. Moving to calendar year underwriting income, consolidated calendar underwriting income was slightly better than the accident year results at $8.8 million in '24. This compares to $3.2 million a year ago. The impact of prior accident years was favorable by [$ 80,000]. Book to reserves remains solidly above our acts at our current actuarial indications.

綜合比率為110.7%。損失率符合我們 0.61 美元的預期，但隨著我們逐步縮減一些規模較小的承保投資組合，徑流費用仍然有點高。轉向日曆年承保收入，24 年的綜合日曆承保收入略優於事故年的結果，為 880 萬美元。相比之下，一年前為 320 萬美元。之前事故年份的影響是有利的[80,000 美元]。根據我們目前的精算指標，預訂準備金仍然遠高於我們的行動。

Turning to insurance revenues, consolidated gross written premiums was $194.2 million '24 compared to 233.1 million in '23. This decrease is entirely due to the runoff business in our non-core segment, which declined $43 million from a year ago.

就保險收入而言，24 年綜合總承保保費為 1.942 億美元，而 23 年為 2.331 億美元。這一下降完全是由於我們非核心業務的徑流業務比一年前減少了 4,300 萬美元。

Pan America's gross written premiums was $194.6 million '24 compared to 190.4 million in '23. This is in line with our plan and due to due to programs terminated in the fourth quarter of 2023 that did not meet our long-term growth and underwriting expectations.

泛美公司 24 年的總承保保費為 1.946 億美元，而 23 年為 1.904 億美元。這符合我們的計劃，也是由於 2023 年第四季終止的計劃未達到我們的長期成長和承保預期。

Excluding these terminated programs. Pet America's gross written premiums grew from $182.3 million in '23 to $194.6 million in 24 7% increase. As Jay mentioned earlier, aggregate growth of 9% was achieved on the wholesale, commercial and short tech and assumed reinsurance business.

不包括這些終止的程序。Pet America 的毛承保保費從 2023 年的 1.823 億美元增長到 24 年的 1.946 億美元，增長了 7%。正如 Jay 之前提到的，批發、商業、短期技術和假設再保險業務合計實現了 9% 的成長。

Let me add a little bit of color on those divisions. Wholesale commercial, which focuses on Main Street small business, grew 3% to $124.9 million compared to $121 million in 2023. Excluding this, excluding premium audit in these calendar year numbers, the underlying policy year trends, our best indicator growth was 12%, which includes rate increases of 9%.

讓我為這些劃分添加一點色彩。專注於大街小型企業的批發商業成長了 3%，達到 1.249 億美元，而 2023 年為 1.21 億美元。排除這一點，排除這些日曆年數字中的保費審計、基本保單年度趨勢，我們的最佳指標增長為 12%，其中包括 9% 的費率增長。

Overall, the short-term growth rate is in line with expectation. We expect to exceed 8% for the full calendar year. Insure tech, which consists of Vacon expressing collectibles, grew 18% to $26.3 million in 2024 compared to $22.3 million in '23.

整體來看，短期增速符合預期。我們預計全年增幅將超過 8%。由 Vacon 表達收藏品組成的 Insure tech 到 2024 年增長了 18%，達到 2,630 萬美元，而 2023 年為 2,230 萬美元。

Let me break down those two products. Vacon Express grew 23% to $18.6 million, driven by organic growth from our existing agents as well as agency appointments, new Technical Automation implemented in the third quarter of 2023 for Vacon dwelling products, including the expansion of mono-line general liability products contribute to the growth in premium.

讓我來分解這兩種產品。Vacon Express 成長 23%，達到 1,860 萬美元，這得益於我們現有代理商的有機增長以及代理任命、2023 年第三季度為 Vacon 住宅產品實施的新技術自動化（包括單線一般責任產品的擴展）保費的增長。

Our agents are produced. Collectibles gross written premium grew 6% to $7.6 million. Our assumed reinsurance book of business continues to grow at a nice pace, tracking with our plan to see significant growth in 2024.

我們的代理商是生產的。收藏品毛保費成長 6%，達到 760 萬美元。我們假設的再保險業務繼續以良好的速度成長，符合我們在 2024 年實現顯著成長的計畫。

We signed on six new treaties. During the second quarter, gross written premiums grew $9.4 million in '24 since then [20] were compared to $4.3 million in 2023 and lastly, programs, excluding terminated business we mentioned earlier, was $34.0 million lower than 2023 by $1.4 million.

我們簽署了六項新條約。自那時以來，第二季度的毛承保保費增長了940 萬美元[20]，而2023 年為430 萬美元，最後，計劃（不包括我們之前提到的終止業務）為3400 萬美元，比2023年減少了140 萬美元。

We signed on two new treaties in '24 that contributed [$700,000] for the first six months of the year. We expect to have four new programs signed on over the next 6to 12 months in closing, we are pleased with the first six months of '24.

我們在 2024 年簽署了兩項新條約，在今年前六個月貢獻了 [70 萬美元]。我們預計在接下來的 6 至 12 個月內簽署四個新計劃，我們對 24 年的前六個月感到滿意。

Further, our outlook for the full year is very positive. Penn-america continues to show strong accident year performance. We believe premium prices, pricing is meeting loss inflation. Discretionary capital continues to increase due to income and reduced capital needed for the runoff of non-core business.

此外，我們對全年的前景非常樂觀。賓州繼續表現出強勁的事故年表現。我們認為溢價、定價正在滿足通膨損失。由於收入和非核心業務流失所需的資本減少，可自由支配資本持續增加。

This will support growth in other corporate opportunities. And last, our investment portfolio is well positioned to take advantage this higher interest rate environment or invest in longer maturities at higher yields that the interest rate environment were to soften significantly.

這將支持其他企業機會的成長。最後，我們的投資組合處於有利地位，可以利用這種較高的利率環境，或者在利率環境顯著軟化的情況下以較高的收益率投資於較長期限的債券。

Thank you. We will now take your questions.

謝謝。我們現在將回答您的問題。

(Operator Instructions)

（操作員說明）

Jeffrey Bronchick, Cove Street Capital.

傑弗瑞‧布朗奇克 (Jeffrey Bronchick)，灣街資本 (Cove Street Capital)。

Good morning, gentlemen. Thank you for your time today. Thanks so much. Three general questions that do you know is the 92nd version, but would you describe the reinsurance effort. So you know, kind of what your what your what you thought, what you saw you had where you think you could add value in dollars and and how you're going about executing share of COVID.

早安，先生們。感謝您今天抽出時間。非常感謝。您知道的三個一般性問題是第 92 版，但您能否描述一下再保險工作。所以你知道，你的想法是什麼，你看到了什麼，你認為你可以增加美元價值，以及你將如何執行新冠疫情的份額。

Good question on prior to last year, we had basically offered reinsurance originally out of our Brazilian operation and subsequently moved back to the United States on a retrocession basis to other reinsurers. And when I arrived at the Company, we made the decision that the margin then in that business, while it had been attractive, it would be better for us to actually shift our efforts in the reinsurance market into reinsuring our insurance carriers directly.

去年之前的好問題，我們基本上最初是在巴西業務中提供再保險，然後以轉分保的方式回到美國給其他再保險公司。當我到達公司時，我們決定該業務的利潤雖然很有吸引力，但對我們來說，最好將我們在再保險市場的努力轉移到直接為我們的保險公司提供再保險。

We took a look at where we had what we thought was an appropriate skill set starting in the cannabis book and then some of the program areas and decided that's where we would emphasize and set up our operation to start participating with small lines on a multitude of different treaties.

我們查看了我們認為合適的技能組合，從大麻書籍開始，然後是一些計劃領域，並決定我們將重點強調並建立我們的業務，以開始參與多個領域的小行。

And we expanded the number of trees, doubled them in the space of 18 months and expect to continue to grow that business probably going up 30% to 40% per year for the next three or four years. We think the reinsurance market is an attractive market right now. We believe that the tiny little niche that we're operating in provides a good return on capital, and we feel comfortable with what we've been able to achieve so far.

我們擴大了樹木的數量，在 18 個月內將其增加了一倍，並預計在未來三到四年內，業務將繼續增長，每年可能增長 30% 至 40%。我們認為再保險市場目前是一個有吸引力的市場。我們相信，我們所經營的微小利基市場提供了良好的資本回報，並且我們對迄今為止所取得的成就感到滿意。

And this is this tend to be ENSC oriented or is this, you know, property and whether one wants to help me out there?

這往往是 ENSC 導向的，或者是，你知道，財產以及是否有人願意幫助我？

Absolutely, it's very much in FC since a good description of the types of products that we're reinsuring a very similar to the products we underwrite on a direct basis. One of the reasons we feel comfortable in that space we are and given our background and what we've achieved over the last three or four years, we have tended to get people away from large weather-related exposures.

當然，這在 FC 中非常重要，因為它很好地描述了我們再保險的產品類型，與我們直接承保的產品非常相似。我們在這個空間感到舒適的原因之一是，考慮到我們的背景和過去三、四年所取得的成就，我們傾向於讓人們遠離與天氣相關的大量暴露。

We haven't seen much in terms of any significant catastrophe losses in the book. This is in contrast to where we were position three or four years ago. We were very heavy on our retrocession catastrophic business, and that was really related to when we are based in Bermuda.

我們在書中沒有看到太多重大災難損失。這與我們三、四年前的處境形成鮮明對比。我們非常重視我們的光復轉災難性業務，這確實與我們在百慕達的總部有關。

And just lastly, on this basis, is there any primary insurer that you're sort of latched onto here? Or is it widely spread?

最後，在此基礎上，是否有任何主要保險公司是您所關注的？或者說它已經廣傳播了？

It's widely spread on work. I think we're currently probably or probably dealing with about 15 different customers at this point in time and expect to see that to continue to expand over the next couple of years.

它在工作中廣泛傳播。我認為我們目前可能正在與大約 15 個不同的客戶打交道，並預計在未來幾年內會繼續擴大。

Next question would be, what would you say today about all the James River ventures over the over this year? What's this direct conclusion that you would care to share with us.

下一個問題是，您今天對今年以來詹姆斯河的所有冒險活動有何看法？您願意與我們分享的這個直接結論是什麼？

And as to James River on, it's probably appropriate that I don't make any comments per my lawyers in terms of agreements we had with James River in terms of the actual experience of looking at any particular opportunities, it's something that we have done constantly for the last 20 years.

至於詹姆斯河，根據我的律師的說法，我不對我們與詹姆斯河達成的協議以及尋找任何特定機會的實際經驗發表任何評論可能是適當的，這是我們一直在做的事情過去20年。

We have a substantial amount of excess capital at this point in time that we'd like to deploy if we can't deploy it in businesses that we are currently engaged in certain types of M&A activity might be able to create increases in returns for our shareholders. And so that's the type of thing that we're going to continue to look at as this year unfolds.

我們目前擁有大量過剩資本，如果我們無法將其部署到我們目前從事某些類型的併購活動的企業中，我們希望將其部署，也許能夠為我們的企業創造更高的回報股東。因此，這就是我們今年將繼續關注的事情。

And going forward, would you say that that episode is complete?

展望未來，你會說這一集已經完成了嗎？

No comment.

沒有意見。

And can you comment as to the nature of these opportunities, sort of a reverse sale or truly an acquisition where you know, team members on team global is the now continuing in running entity?

您能否評論一下這些機會的性質，是反向銷售還是真正的收購，您知道，全球團隊的團隊成員現在正在繼續經營實體？

Not sure.

沒有把握。

Maybe I can clarify that a little bit more of I'm not sure exactly what you all are all making a deal on the note of the lawyers, talking about age issues that I may just tranquil on here. But um, you know, clearly the companies had an interesting path from the the gentleman who is on this call run the insurance companies is no spring chicken.

也許我可以澄清一點，我不確定你們到底在律師的紙條上達成協議，談論年齡問題，我可能只是在這裡平靜。但是，嗯，你知道，很明顯，這些公司有一條有趣的道路，這位負責營運保險公司的紳士並不是小雞。

It's a control owner is no spring chicken and one could perceive that the James River Trend chat was sort of a, you know, a sale which in using this capital structure, which would enable, you know, the James River Management team to affect the rubbish I'm just trying to get a sense of, you know, the what's next concept was that structured as a sale and you were waving or know you guys were actually buying and running and you know, you couldn't wait to get your hands.

它的控制權所有者不是小雞，人們可以認為詹姆斯河趨勢聊天是一種使用這種資本結構的銷售，這將使詹姆斯河管理團隊能夠影響詹姆斯河趨勢垃圾，我只是想了解一下，你知道，下一個概念是作為銷售而構建的，你在揮手或知道你們實際上是在購買和運行，你知道，你迫不及待地想得到你的手。

I guess you don't take the no comment two seriously, so I'll let that go and we'll move on to the next questioner.

我想你並沒有認真對待第二個問題，所以我就放棄這個問題，我們將繼續討論下一個提問者。

Okay. I've got one.

好的。我有一個。

Your next question comes from the line of [Joel Estrack]. Can you explain why Jason Hurwitz recently left the Board?

你的下一個問題來自於[喬爾·埃斯特拉克]。您能解釋一下 Jason Hurwitz 最近離開董事會的原因嗎？

Sure. Jason, is longtime friend. I've known Jason for 25 plus years now in my in various roles that I've had in the insurance area. James Jason had served the Board for quite a long time and actually left, while I was on the Board before I became the CEO when I was when I joined the Company as the Chief Executive Officer, I specifically ask Jason, if he would mind coming back on the Board for a certain time period and help us out because there was a lot of change that was going to take place I expected in the first year.

當然。傑森，是老朋友了。我認識 Jason 已經 25 年多了，他在保險領域擔任過各種職位。James Jason在董事會服務了相當長的時間，實際上已經離開了，而我在成為首席執行官之前就在董事會，當我加入公司擔任首席執行官時，我特意問Jason，他是否介意來在一段時間內回到董事會並幫助我們，因為我預計第一年將會發生很多變化。

So Maiia my time here as the CEO, he did that and I think he's now elected to go back and pursue other interests, which he had already started doing before he joined our Board and didn't want to have any conflicts in terms of different things you might do in the property casualty space on Jason has been an incredible contributor to our company for a long time. I met them now, but I also understand when somebody asks to choose to pursue other things.

所以，Maiia 在我擔任執行長期間，他做到了這一點，我認為他現在選擇回去追求其他利益，這是他在加入我們董事會之前就已經開始做的事情，並且不想在不同的利益方面產生任何衝突。我現在遇到了他們，但我也理解當有人要求選擇追求其他事情時。

Ross Haberman, RLH Investments.

羅斯哈伯曼，RLH 投資公司。

Morning, gentlemen. How are you? I just had a quick follow-up question. You were you referred to your expenses and how it would take, I guess, a year or two to get them back in line in those why you would want them to. Could you explain that a little more? And do you think you mean business if you go up and down quicker? Thank you.

早安，先生們。你好嗎？我只是有一個快速的後續問題。你提到了你的開支，以及我猜需要一兩年的時間才能讓它們恢復到你想要的水平。您能再解釋一下嗎？如果你上下移動得更快，你認為你是認真的嗎？謝謝。

Yes, hi, this is Brian. I'm sorry. As we mentioned in previous calls, we kept our staffing levels to ensure that our customer service levels were at top, it continued to be exceed expectations. We're currently when I think about our [39 were about 26 points is variable, 13 points is fixed. Of that 39 to get to a 37. We expect that 26 to remain to achieve that declined from 13 to 11] and our fixed costs, it's really a combination of double digit premium growth combined with some, and we'll have inflationary 4% to 5% increase in expenses.

是的，嗨，這是布萊恩。對不起。正如我們在先前的電話中提到的，我們保持了人員配置水平，以確保我們的客戶服務水平處於最高水平，並且繼續超出預期。目前，當我考慮我們的[39]時，大約26個點是可變的，13個點是固定的。其中39 家將達到37 家。 我們預計剩下26 家將實現這一目標，從13 家下降到11 家]以及我們的固定成本，這實際上是兩位數保費增長與一些保費增長的結合，我們將面臨4% 的通膨費用增加 5%。

Thank you very much.

非常感謝。

Tom Kerr, Zack Investment Research.

湯姆·科爾，扎克投資研究公司。

Good morning, guys. Most of my questions have been answered. Just a quick one on the discretionary capital. Did you mention the dollar amount in your comments? If I missed that, it is still in the $200 million range?

早安，夥計們。我的大部分問題都得到了解答。簡單介紹一下可自由支配資本。您在評論中提到了美元金額嗎？如果我錯過了，它仍然在 2 億美元範圍內嗎？

Yes, as Jay mentioned of discretionary capital, but neither the holder knows we're really measured by in two ways. One is our regulatory authority to RBC rating agency to be card with a B car. So I would I would say that we are probably able to deploy about $125 million of capital to maintain the strong adequacy of our of our capital scores.

是的，正如傑伊所提到的可自由支配資本，但持有者都不知道我們實際上是透過兩種方式來衡量的。一是我們的監理機關核發了B級車的證書給RBC評級機構。因此，我想說，我們可能能夠部署約 1.25 億美元的資本，以維持我們資本評分的充足性。

Yes. And as well, unless you know, we would expect growth over year over year about $30 million of that excess capital.

是的。此外，除非您知道，否則我們預計超額資本將年增約 3,000 萬美元。

And that's a reduction from previous comments, even though the balance sheet, it's got stronger. Is that just to maintain the rating?

這比之前的評論有所減少，儘管資產負債表變得更加強勁。難道只是為了維持評等嗎？

That said, we want to be at the absolute highest rating where we currently operate. And so obviously we could operate down 10% below that. And that's that's kind of where the $200 million number that we've used historically over the last two or three quarters has come from our position stays the same. But again, we're always reminded that different people look at excess capital different ways.

也就是說，我們希望在我們目前運營的地方獲得絕對最高的評級。顯然，我們的營運成本可以低於該水準 10%。這就是我們過去兩三個季度使用的 2 億美元數字保持不變的情況。但我們總是被提醒，不同的人看待過剩資本的方式不同。

Got it. Thanks of our effort to date.

知道了。感謝我們迄今為止的努力。

Thank you. Your next question comes from [Chris Koranda], you've expressed the opinion that buying back stock would be a good use of shareholder capital, but also a reluctance to do so in the open market. What are your thoughts on that tender offer as a way to reconcile those two issues?

謝謝。你的下一個問題來自[Chris Koranda]，你表達了回購股票將是對股東資本的良好利用的觀點，但也不願意在公開市場上這樣做。您對透過要約收購來調和這兩個問題有何看法？

It's something we continue to look at and something that I think the Company has used historically at different points along the way. And it's certainly something that if no other things arise, eventually, one of two things is going to happen either. We'll do a special dividend or we'll do a tender offer if we can't deploy the capital into the business in a way that provide good returns to our shareholders.

這是我們繼續關注的東西，我認為公司在歷史上的不同時期都使用過它。如果沒有其他事情發生，最終，兩件事中的一件也會發生。如果我們無法以給股東帶來良好回報的方式將資本部署到業務中，我們將派發特別股息，或進行要約收購。

Thank you. Your next question comes from and then the [Anthony Mottoless], how is your casualty book positioned from social inflation impacts? Can you discuss loss trends, assumptions and your confidence in company reserve trends?

謝謝。你的下一個問題來自[Anthony Mottoless]，你的傷亡手冊如何應對社會通貨膨脹的影響？您能討論一下損失趨勢、假設以及您對公司準備金趨勢的信心嗎？

Sure. We have probably over the past couple of years have upped our long-term loss trends for the casualty business, probably two or three points that you should probably be in the 4% or 5%. We're probably operating with the seven seven 6% to 7% range at this point in time in terms of where we're positioned and how reserves are holding up over the past two quarters, we've actually seen a nice expansion in our margin from what from where it was at the beginning of the year.

當然。在過去的幾年裡，我們可能已經提高了傷亡險業務的長期損失趨勢，可能比你應該在 4% 或 5% 的範圍內提高了兩到三個百分點。就我們的定位以及過去兩個季度儲備的保持情況而言，我們目前可能在 7 7 6% 至 7% 的範圍內運營，我們實際上已經看到了我們的業務的良好擴張。利潤率。

And this is mainly a result of the last if you go back to 2022 and 23. We had a couple of casualty exposures that were causing us some problems, our New York habitational book and one particular program, both of those have on those exposures are either eliminated or substantially reduced.

如果你回到 2022 年和 23 年，這主要是最後一個結果。我們有幾起傷亡事故，這給我們帶來了一些問題，我們的紐約居住手冊和一個特定的計劃，這兩個項目都消除了這些事故，或者大大減少了這些事故。

So at this point in time, their impact on the overall book is has been reduced significantly on otherwise, our reserves and our historical exposure in the casualty area looks pretty well behaved compared to some of the things that we read about in the industry today.

因此，在這個時候，它們對整個帳簿的影響已經大大減少，否則，與我們今天在行業中讀到的一些事情相比，我們的儲備和我們在傷亡領域的歷史風險看起來表現得相當好。

And then that's mainly a reflection of the type of business that we have traditionally underwritten, which is a small commercial focus of the Company. We are certainly affected by social inflation in those areas, but it's not as bad as it as it appears in some of the larger casualty exposures that exist in the industry.

這主要反映了我們傳統上承保的業務類型，這是公司的一個小型商業重點。我們當然會受到這些地區社會通貨膨脹的影響，但情況並不像該行業中存在的一些較大傷亡風險中所出現的那麼嚴重。

Your next question comes from the line of Joel Strecker. Why aren't you buying back stock in the open market or conducting a Dutch tender share repurchase. If you believe in your own projections, your stock price and multiple should increase substantially going forward why wait until the price and multiples are higher and their return on investment is lower when you have substantial excess cap now?

你的下一個問題來自喬爾·斯特雷克（Joel Strecker）。為什麼不在公開市場上回購股票或進行荷蘭招標股票回購。如果您相信自己的預測，那麼您的股價和本益比未來應該會大幅上漲，為什麼要等到價格和本益比更高且投資報酬率更低的時候，而您現在已經擁有大量超額上限呢？

I believe I answered that question earlier from another question there, but I will repeat basically I don't disagree with the observation that if we were able to buy a substantial amount of stock in the market right now, either through an open market operation or a Dutch tender, it would add to book value. But our the timing of when that will take place is still out in the future and it's not something we're currently up DOING at this particular time.

我相信我之前在另一個問題中回答了這個問題，但我基本上會重複一遍，我不同意這樣的觀察：如果我們現在能夠通過公開市場操作或通過公開市場操作或如果是荷蘭招標，則會增加帳面價值。但我們的具體時間仍然是未來的事情，而且這不是我們目前在這個特定時間要做的事情。

And ladies and gentlemen, that does conclude our question and answer session. I will now turn the conference back over to Steven Ries for closing remarks.

女士們先生們，我們的問答環節到此結束。現在我將把會議轉回給史蒂文·里斯（Steven Ries）做閉幕詞。

Thank you, everybody, for joining us for our second quarter call, and we look forward to speaking with you in the third quarter. In the interim, please reach out to me if you have any questions. Thank you.

感謝大家參加我們的第二季電話會議，我們期待在第三季與您交談。在此期間，如果您有任何疑問，請與我聯繫。謝謝。

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

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。