Hci Group Inc (HCI) 2023 Q2 法說會逐字稿

Good afternoon and welcome to HCI Group's Second Quarter 2023 Earnings Call. My name is John, and I will be your conference operator. (Operator Instructions)

下午好，歡迎參加 HCI 集團 2023 年第二季度財報電話會議。我叫約翰，我將擔任您的會議操作員。 （操作員說明）

Before we begin today's call, I would like to remind everyone that this conference call is being recorded and will be available for replay through June 8, 2023, starting later today. The call is also being broadcast live via webcast and available via webcast replay until May 9, 2024, on the Investor Information section of HCI Group's website at www.hcigroup.com.

在我們開始今天的電話會議之前，我想提醒大家，本次電話會議正在錄音，並且從今天晚些時候開始，可在 2023 年 6 月 8 日之前重播。此次電話會議還將通過網絡直播進行現場直播，並可在 2024 年 5 月 9 日之前通過 HCI 集團網站 www.hcigroup.com 的投資者信息部分進行網絡直播重播。

I would now like to turn the call over to Matt Glover, Gateway Investor Relations. Matt, please proceed.

我現在想把電話轉給 Gateway 投資者關係部的 Matt Glover。馬特，請繼續。

Thank you, John, and good afternoon, everyone. Welcome to HCI Group's Second Quarter 2023 Earnings Call. On today's call is Karin Coleman, HCI's Chief Operating Officer; Mark Harmsworth, HCI's Chief Financial Officer; and Paresh Patel, HCI's Chairman and Chief Executive Officer. Following Karin's operational update, Mark will review our financial performance for the second quarter of 2023, and then Paresh will provide a strategic update.

謝謝約翰，大家下午好。歡迎參加 HCI 集團 2023 年第二季度財報電話會議。 HCI 首席運營官 Karin Coleman 出席了今天的電話會議； HCI 首席財務官 Mark Harmsworth；以及 HCI 董事長兼首席執行官帕雷什·帕特爾 (Paresh Patel)。在 Karin 更新運營情況後，Mark 將審查我們 2023 年第二季度的財務業績，然後 Paresh 將提供戰略更新。

To access today's webcast, please visit the Investor Information section of our corporate website at www.hcigroup.com.

要觀看今天的網絡廣播，請訪問我們公司網站 www.hcigroup.com 的投資者信息部分。

Before we begin, I would like to take the opportunity to remind our listeners that today's presentation and responses to questions may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as anticipate, estimate, expect, intend, plan and project and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties.

在我們開始之前，我想藉此機會提醒我們的聽眾，今天的演示和對問題的回答可能包含根據1995 年《私人證券訴訟改革法案》做出的前瞻性陳述。諸如預期、估計、期望、打算等詞語、計劃和項目以及其他類似的詞語和表達旨在表示前瞻性陳述。前瞻性陳述並不是對未來結果和條件的保證，而是受到各種風險和不確定性的影響。

Some of these risks and uncertainties are identified in the company's filings with the Securities and Exchange Commission. Should any risks or uncertainties develop into actual results, these developments could have material adverse effects on the company's business, financial conditions and results of operations. HCI Group disclaims all the obligations to update any forward-looking statements.

該公司向美國證券交易委員會提交的文件中指出了其中一些風險和不確定性。如果任何風險或不確定性發展為實際結果，這些發展可能會對公司的業務、財務狀況和經營業績產生重大不利影響。 HCI 集團不承擔更新任何前瞻性陳述的所有義務。

Now with that, I would like to turn the call over to Karin Coleman, Chief Operating Officer. Karin?

現在，我想將電話轉給首席運營官 Karin Coleman。卡琳？

Thank you, Matt, and welcome, everyone. HCI Group reported another strong quarter with pretax income of $20.3 million and diluted earnings per share of $1.28. Operating earnings improved over last quarter, again reflecting positive contributions from each of our business segments.

謝謝你，馬特，歡迎大家。 HCI Group 報告了另一個強勁的季度，稅前收入為 2030 萬美元，稀釋後每股收益為 1.28 美元。營業利潤比上季度有所改善，再次反映出我們每個業務部門的積極貢獻。

In insurance, gross premiums earned were stable, while losses and expenses declined, driving increased profitability in the quarter. Our consolidated loss ratio was approximately 34%, down from 47.9% last year and consistent with our expectations.

在保險領域，毛保費保持穩定，而損失和費用下降，推動本季度盈利能力的提高。我們的綜合虧損率約為 34%，低於去年的 47.9%，符合我們的預期。

Homeowners Choice continued to generate healthy earnings, while TypTap Insurance Group reported its second straight quarter of GAAP profitability. In May, we finalized our reinsurance program for the coming year, with rates and terms that were consistent with our expectations. We filed an 8-K detailing this program with the SEC on May 31.

Homeowners Choice 繼續產生健康的收益，而 TypTap Insurance Group 報告了連續第二個季度的 GAAP 盈利能力。五月份，我們敲定了來年的再保險計劃，其費率和條款符合我們的預期。我們於 5 月 31 日向 SEC 提交了一份 8-K，詳細說明了該計劃。

In investments, net investment income totaled $8.8 million, almost entirely derived from interest on our cash and fixed income holdings. Our portfolios continue to generate steady streams of income, benefiting from higher interest rates, short duration and reinvestment yields above 5%.

在投資方面，淨投資收入總計 880 萬美元，幾乎全部來自我們持有的現金和固定收益的利息。我們的投資組合繼續產生穩定的收入流，受益於較高的利率、短期和超過 5% 的再投資收益率。

Finally, HCI Group continued to deliver on its commitment to shareholders, paying a dividend of $0.40 per share, our 51st consecutive quarterly dividend.

最後，HCI 集團繼續履行對股東的承諾，派發每股 0.40 美元的股息，這是我們連續第 51 個季度派息。

To summarize, this quarter highlighted the underlying strength of our diversified businesses and the true earnings power of HCI Group.

總而言之，本季度凸顯了我們多元化業務的潛在實力以及 HCI 集團的真正盈利能力。

And now I'll turn it over to Mark to provide more details on our financial results.

現在我將把它交給馬克，以提供有關我們財務業績的更多詳細信息。

Thanks, Karin. So as Karin mentioned, pretax income for the second quarter was $20.3 million, and diluted earnings per share were $1.28. The pretax income was similar to that of the first quarter this year with one significant difference. In the first quarter, we had a gain of almost $9 million from the sale of real estate, and this quarter's profit was driven simply from the regular ongoing operations of our insurance businesses in what we see as a strong, repeatable operating quarter.

謝謝，卡琳。正如 Karin 提到的，第二季度稅前收入為 2030 萬美元，稀釋後每股收益為 1.28 美元。稅前收入與今年第一季度相似，但存在顯著差異。第一季度，我們從房地產銷售中獲得了近 900 萬美元的收益，而本季度的利潤完全來自我們保險業務的常規持續運營，我們認為這是一個強勁、可重複的運營季度。

In the past few quarters, we've highlighted several positive trends. And as you can see from the results, these trends continue to support sustained profitability. The trends we've discussed are higher average premium per policy, increasing investment income, lower policy acquisition costs, and most important, a lower gross loss ratio. Let's take a look at each of these.

在過去的幾個季度中，我們強調了一些積極的趨勢。從結果中可以看出，這些趨勢繼續支持持續的盈利能力。我們討論的趨勢是每份保單的平均保費更高、投資收益增加、保單獲取成本更低，最重要的是，總損失率更低。讓我們逐一看一下。

First, as was the case in the first quarter, gross premiums earned are up despite policies in force being down driven by rate adjustments made over the past few quarters combined with the natural attrition of the book. Our consolidated average premium per policy is about 25% higher than it was a year ago, which helps reduce the loss ratio and improve earnings.

首先，與第一季度的情況一樣，儘管過去幾個季度的費率調整以及保費自然損耗導致現行保單有所減少，但所賺取的毛保費仍有所上升。我們每份保單的綜合平均保費比一年前高出約 25%，這有助於降低損失率並提高收益。

The second positive trend is that investment income is up. Investment income of $8.8 million is more than double what it was in the same quarter last year driven by increasing interest income on fixed term investments and on cash. Our investment strategy is working. And while our yield is up considerably, we still have a short term to maturity, which gives us the opportunity to further increase investment income in the coming quarters.

第二個積極趨勢是投資收益上升。由於定期投資和現金利息收入增加，投資收入達到 880 萬美元，是去年同期的兩倍多。我們的投資策略正在發揮作用。儘管我們的收益率大幅上升，但到期期限仍然較短，這使我們有機會在未來幾個季度進一步增加投資收入。

The third positive trend is that policy acquisition expenses are declining as a percentage of gross premiums earned. In Q2, policy acquisition expenses were 12.4% of gross premiums earned, down from 14.8% in the same quarter last year because of lower commissions and the transition of the UPC book.

第三個積極趨勢是保單購買費用佔總保費的比例正在下降。第二季度，由於佣金下降和 UPC 賬簿的過渡，保單獲取費用佔毛保費的 12.4%，低於去年同期的 14.8%。

The last and most important trend is the decline in the consolidated loss ratio, which is following the glide path we've been discussing over the past few quarters. On previous earnings calls, we said we expected a material beneficial impact from the new legislation in Florida, and that impact is starting to show up in our results.

最後也是最重要的趨勢是綜合損失率的下降，它遵循我們過去幾個季度一直在討論的下滑路徑。在之前的財報電話會議上，我們表示，我們預計佛羅里達州的新立法將產生實質性的有益影響，這種影響已開始體現在我們的業績中。

The consolidated gross loss ratio was 34% this quarter, down considerably from 47.9% in the same quarter last year driven by lower claim frequency, flattening claim severity, lower litigation frequency and higher average premium per policy.

本季度綜合毛損失率為 34%，較去年同期的 47.9% 大幅下降，原因是索賠頻率降低、索賠嚴重程度趨於平緩、訴訟頻率降低以及每份保單的平均保費上升。

Wanted to mention TypTap just for a minute. You may recall that TypTap Insurance Group was profitable in the first quarter, and it was a gain in the second, reflecting some of the same trends discussed on a consolidated basis, higher average premium per policy, higher investment income and a lower loss ratio.

想提一下 TypTap。您可能還記得，TypTap Insurance Group 第一季度實現盈利，第二季度實現盈利，這反映了在綜合基礎上討論的一些相同趨勢，即每份保單的平均保費較高、投資收益較高以及損失率較低。

Just a few other quick things. Book value per share increased significantly from $18.91 at the start of the year to $21.92 at the end of the second quarter. Cash and financial investments at the holding company level were $164 million at the end of the quarter, up from $140 million at the start of the quarter.

只是其他一些快速的事情。每股賬面價值從年初的 18.91 美元大幅增加至第二季度末的 21.92 美元。季度末控股公司層面的現金和金融投資為 1.64 億美元，高於季度初的 1.4 億美元。

Before turning it over to Paresh, I wanted to step back from the numbers to just add one thing. What I hope comes through in my comments here is that the trends that have led to these results are the same continuing trends we've been discussing for some time now, and we think that they are sustainable. We've managed the business carefully to get to this point. And while we can never predict the future, this quarter reflects what we expect to see going forward.

在將其交給帕雷什之前，我想先從數字上退一步，只添加一件事。我希望在我的評論中傳達的是，導致這些結果的趨勢與我們已經討論了一段時間的持續趨勢相同，並且我們認為它們是可持續的。我們對業務進行了謹慎的管理才走到了這一步。雖然我們永遠無法預測未來，但本季度反映了我們對未來的預期。

And with that, I'll hand it over to Paresh.

就這樣，我將把它交給帕雷什。

Thanks, Mark. Karin talked about our positive Q2 results, and Mark laid out why the results this quarter are sustainable. There are several items that we've talked about on previous calls that I think are worth reviewing. First, we've positioned our investment portfolio to provide investment income in a meaningful and sustainable fashion. By staying on the short end of the curve, we maintain maximum flexibility, and we are making a healthy income from that side of the business.

謝謝，馬克。卡琳談到了我們第二季度的積極業績，馬克則闡述了為什麼本季度的業績是可持續的。我們在之前的電話會議中討論過一些我認為值得回顧的項目。首先，我們將投資組合定位為以有意義且可持續的方式提供投資收入。通過保持在曲線的短端，我們保持了最大的靈活性，並且我們從這方面的業務中獲得了可觀的收入。

Second, following legislative reform that was passed last year in Florida, we anticipated that the loss ratio would come down, and it has.

其次，去年佛羅里達州通過立法改革後，我們預計損失率將會下降，而且確實如此。

Third, the uncertainty around the availability and affordability of reinsurance is now behind us with the placement of our 2023 reinsurance program.

第三，隨著 2023 年再保險計劃的實施，再保險的可用性和承受能力的不確定性現已成為過去。

And lastly, a year ago, we took decisive rate action to combat economic inflation, and those rate actions continue to work through our book of business.

最後，一年前，我們採取了果斷的利率行動來對抗經濟通脹，這些利率行動將繼續在我們的業務中發揮作用。

So overall, while earned premium has been roughly level year-over-year, the profitability of the business has improved considerably. And all of this is important as a backdrop because we now have a healthy stable business. We can now look to the future, and the obvious thing to do is to expand and grow the business, especially in Florida, and that is exactly what we plan to do.

因此，總體而言，雖然已賺取保費與去年同期大致持平，但該業務的盈利能力卻大幅提高。所有這些作為背景都很重要，因為我們現在擁有健康穩定的業務。我們現在可以展望未來，顯而易見的事情就是擴大和發展業務，特別是在佛羅里達州，而這正是我們計劃做的。

We've applied with the Florida OIR for a Citizens' depopulation in the fourth quarter of this year. We are starting from a baseline of approximately 200,000 policies and $740 million of in-force premium throughout the U.S. at the end of Q2. We will now resume growth to a higher number in the future.

我們已向佛羅里達州 OIR 申請在今年第四季度減少公民人口。我們的基準是，到第二季度末，全美範圍內約有 200,000 份保單和 7.4 億美元的有效保費。我們現在將在未來恢復更高的增長。

In summary, going forward, we are looking to grow our policy count, grow our in-force premium and grow our profitability. With that, I will turn over for questions. Operator, please give instructions.

總之，展望未來，我們希望增加保單數量、有效保費和盈利能力。說到這裡，我將轉過來接受提問。請操作員指點。

(Operator Instructions) The first question comes from Matt Carletti with JMP.

（操作員說明）第一個問題來自 JMP 的 Matt Carletti。

I guess, first, I'll pick up right where you left off, with the news of applying for a Citizens' depop. Is there any color you can give us on -- it sounds like Q4, but in terms of potential -- kind of the number of policies, the amount of premium that ideally, you'd like to execute on? Or is that stay tuned, yet to come?

我想，首先，我會從你上次停下的地方繼續，介紹申請公民 depop 的消息。您是否可以向我們提供任何顏色 - 聽起來像第四季度，但就潛力而言 - 保單數量，理想情況下您希望執行的保費金額？還是敬請期待，尚未到來？

It's a mixture of both. But Matt, just so (inaudible) because they'll all be news in 30 days or so anyway. As you know, we've done this many years, and there's a process by which we go through. So what we've applied for is 75,000 policies in the month of November, November 21, to be precise. But as you should also know, that is a maximum number -- the actual number of policies we will get will be some number that is less than that. It's just the way the process works as you go through the various hoops. And the actual number of policies and premium we will get will actually be best known on November 21, the date of the assumption. It's just we're on that road between now and then, yes?

它是兩者的混合體。但是馬特，就這樣（聽不清），因為無論如何，它們都會在 30 天左右成為新聞。如您所知，我們已經這樣做了很多年，並且我們要經歷一個過程。因此，準確地說，我們在 11 月（11 月 21 日）申請了 75,000 份保單。但您也應該知道，這是一個最大數量 - 我們將獲得的實際保單數量將小於該數量。這就是當你經歷各種困難時該過程的運作方式。我們將獲得的實際保單數量和保費實際上將在 11 月 21 日（即假設日期）時最為清楚。只是從現在到那時我們都在這條路上，是嗎？

Yes. Is there anything that can -- maybe you can offer some guidance there? I mean we could look to pass takeouts you've done. I mean you've done a lot of them over the course of the company, obviously, not in recent history, but -- and the market was right for them. But I know there's been some legislative changes and rule changes around Citizens in terms of people having to go or not go. Any color you can provide there in terms of how that might change the potential conversion rate? Or if it's just too early to know, you won't know until you go through it?

是的。有什麼可以——也許你可以提供一些指導嗎？我的意思是我們可以考慮通過你做的外賣。我的意思是，在公司的發展過程中，你已經做了很多這樣的事情，顯然，不是在最近的歷史中，但是——而且市場適合他們。但我知道，在人們必須去或不去方面，圍繞公民的立法和規則發生了一些變化。您可以提供任何顏色來說明可能如何改變潛在的轉化率嗎？或者如果現在知道還為時過早，直到經歷過才知道？

Matt, historically, the numbers have been as high as 65%. The numbers have been as low as 20%, and some of that range -- and that's quite a wide range of between 20% and 65%, but that range is going -- is also being affected by new Citizens takeout rules that have now come into place and how the method works and everything else and the new regulations where people are more strongly encouraged to leave Citizens, shall we say, yes?

馬特，從歷史上看，這個數字高達 65%。這個數字低至 20%，其中一些範圍——20% 到 65% 之間的範圍相當廣泛，但這個範圍正在持續——也受到了新的公民外賣規則的影響，該規則現已實施到位以及該方法如何運作以及其他一切以及更強烈鼓勵人們離開公民的新規定，我們可以說是嗎？

So given all of those things -- and we also don't know how many other people are applying for takeouts in November. But there is 1.3 million policies in Citizens, right? So this is a small drop in the Citizens universe, shall we say. So given all of those things, there is some variability to that number. But you can imagine to a carrier that has 200,000 policies, and 130,000 of which are in Florida, any number is going to be rather significant, yes?

考慮到所有這些因素，我們也不知道還有多少人在 11 月份申請外賣。但公民中有 130 萬條政策，對吧？所以我們可以說，這只是《公民》宇宙中的一小部分。因此，考慮到所有這些因素，這個數字存在一些變化。但您可以想像，對於一家擁有 200,000 份保單且其中 130,000 份位於佛羅里達州的承運人來說，任何數字都將相當可觀，是嗎？

Yes. For sure. That is very helpful. Maybe looking a little bigger picture, I know the focus is Florida, and you have a huge opportunity there. But TypTap has expanded outside of Florida, and we are seeing a lot of household names kind of recalibrate their appetite nationally. A lot of it seems climate change-related.

是的。一定。這非常有幫助。也許從更大的角度來看，我知道重點是佛羅里達州，那裡有巨大的機會。但 TypTap 已經擴展到佛羅里達州以外的地區，我們看到許多家喻戶曉的名字在全國范圍內重新調整了他們的胃口。其中很多似乎與氣候變化有關。

What kind of -- I think of HCI is having a lot of experience in a state that kind of has gone through that over the past 20, 30 years. Is there a longer-term opportunity there for HCI? Or what lessons kind of have you guys learned by operating in the environment that is Florida that maybe you can take elsewhere when the time is right?

我認為 HCI 在過去 20、30 年經歷過的情況下擁有豐富的經驗。人機交互有長期的機會嗎？或者你們在佛羅里達州的環境中學到了哪些經驗教訓，也許在適當的時候可以在其他地方學到？

Yes. Matt, I think, obviously, reading the headlines and the press releases and the statements and earnings call from a number of other carriers, et cetera, especially outside of Florida, you sort of get the level of angst that is going on. I think if I was to predict what's going to occur judging by what happened in Florida probably like 15, 20 years ago, the supply and number of people willing to offer policies is going to shrink. Demand isn't going away because every household still needs policies. So supply is going to shrink. Demand is going to stay the same or grow.

是的。馬特，我認為，顯然，閱讀頭條新聞、新聞稿、聲明和其他一些運營商的財報電話會議等，尤其是佛羅里達州以外的地區，您會感受到正在發生的焦慮程度。我認為，如果我根據 15、20 年前佛羅里達州發生的事情來預測將會發生什麼，那麼願意提供保單的供應和人數將會減少。需求不會消失，因為每個家庭仍然需要政策。因此供應將會減少。需求將保持不變或增長。

It'll take a while for premiums to adjust to the new reality that I think everybody is facing, using climate change as an example that you used. But eventually, all that will stabilize out, and there will be somebody, let's just say, by 2030 who will be providing insurance and will be doing it in a profitable manner, right? It's just between now and then, there will be a lot of churn in terms of both who the carrier is and who -- and what the rates are. That is what I think is starting to unfold throughout the country. We've seen this movie before because that's exactly what happened in Florida after the '04, '05 storms, yes?

保費需要一段時間才能適應我認為每個人都面臨的新現實，以氣候變化為例。但最終，一切都會穩定下來，到 2030 年，就會有人提供保險，並且會以盈利的方式提供保險，對吧？從現在到那時，承運商是誰、誰以及費率多少都會有很多變化。我認為這正在開始在全國范圍內展開。我們以前看過這部電影，因為這正是 04 年、05 年風暴之後佛羅里達州發生的事情，是嗎？

Yes. That makes perfect sense. And just a couple of quick numbers questions, if I could, probably for Mark. On the policy acquisition costs, you highlighted kind of coming down to around about 12.5% from a couple of points higher a year ago. Are we -- could we kind of work through the adjustments there in terms of lower commissions and some of the forces? Or kind of where do you think that could go going forward?

是的。這是完全有道理的。如果可以的話，我可能會問幾個簡單的數字問題，可能是問馬克的。關於保單獲取成本，您強調了這一成本從一年前高出幾個點下降到 12.5% 左右。我們是否可以在降低佣金和一些力量方面進行調整？或者您認為未來會走向何方？

Yes. I think that's about where it's going to be for the foreseeable future unless there's any other changes. It might drift down a little bit, Matt, but I think the bulk of that improvement that you've seen there is reflected in where -- is in the numbers now.

是的。我認為，除非有任何其他變化，否則在可預見的未來，情況將會如此。馬特，它可能會下降一點，但我認為你所看到的大部分改進都反映在現在的數字中。

Great. And then just a quick numbers one. Do you have net written premiums handy?

偉大的。然後只是快速排名第一。您手頭有淨保費嗎？

Yes. So it's $113.6 million.

是的。所以是 1.136 億美元。

(Operator Instructions) The next question comes from Mark Hughes with Truist.

（操作員說明）下一個問題來自 Truist 的 Mark Hughes。

You have come a long way in a short period of time on loss costs. I wonder if you could maybe break out how much might have been more favorable weather in the quarter, how much is your own pricing initiatives and how much progress is actually -- tangible progress from the regulatory reform. Paresh, I think you'd said you think losses will get down to the 30% level. Is that still a good number? Could it go lower based on what we see here?

您在短時間內在損失成本方面取得了長足的進步。我想知道您是否可以透露本季度天氣情況可能會更加有利，您自己的定價舉措有多少，以及實際上取得了多少進展——監管改革取得了切實進展。 Paresh，我想您曾說過您認為損失將降至 30% 的水平。這仍然是一個好數字嗎？根據我們在這裡看到的情況，它會更低嗎？

Mark, it's Mark. So to the first part of your question about the weather, so there really was not a discernible difference in the weather between Q2 last year and Q2 this year. So the decline in the loss ratio from second quarter last year to the second quarter of this year really didn't have anything to do with weather, right? There's always weather in Q2. We had a significant amount of weather in Q2 last year. We had a significant amount of weather in the second quarter this year. So that's not the reason that the loss ratio is down. So the loss ratio is down for the 3 or 4 things that I mentioned earlier.

馬克，是馬克。關於你關於天氣的問題的第一部分，去年第二季度和今年第二季度的天氣確實沒有明顯的差異。那麼去年二季度到今年二季度賠付率的下降確實和天氣沒有關係吧？第二季度總是有天氣。去年第二季度我們遇到了很多天氣問題。今年第二季度我們遇到了嚴重的天氣問題。所以這並不是損失率下降的原因。因此，對於我之前提到的 3 或 4 件事，損失率有所下降。

And average premium is up. Obviously, that's going to help. Frequency is down, which helps. And the average ultimate cost of a claim is down because litigation is down. So those 3 things work their way through the loss ratio at a different pace. You see the impact of the average premium per policy going up, you see that first. So that's probably maybe 60%, 65% of the reason for the drop this quarter, the balance being some of the legislative changes.

平均保費有所上升。顯然，這會有幫助。頻率降低了，這很有幫助。由於訴訟減少，索賠的平均最終成本也下降了。因此，這三件事以不同的速度影響損失率。您首先會看到每份保單的平均保費上升的影響。因此，這可能是本季度下降的 60%、65% 原因，其餘原因是一些立法變化。

But I think the most important thing to say, and I think I said it in my comments, is we developed an expectation of what we thought would happen to the loss ratio when we -- when the legislation came out, and that is still our expectation. What we've seen in the first half of the year is consistent with what we saw. Frequency is coming down. Litigation is coming down.

但我認為最重要的是，我想我在評論中說過，我們對當立法出台時我們認為損失率會發生什麼產生了預期，這仍然是我們的預期。期待。我們上半年所看到的情況與我們看到的情況是一致的。頻率正在下降。訴訟即將落下。

And to your point about the 30%, I think Paresh and I have both mentioned that we think the consolidated loss ratio will come down from about 40% to about 30%. And we'd take some time to get there, but we still feel that that's where we're headed. So the trends are moving in the right direction, and we're really encouraged by the progress.

至於你關於 30% 的觀點，我認為帕雷什和我都提到過，我們認為綜合損失率將從 40% 左右下降到 30% 左右。我們需要一些時間才能到達那裡，但我們仍然覺得那就是我們前進的方向。因此，趨勢正在朝著正確的方向發展，我們對所取得的進展感到非常鼓舞。

How much are you going to pursue voluntary business as the year progresses? Are you going to be more dependent or look to drive growth on the takeout? The acquisition costs are certainly pretty attractive. Is that going to be the focus?

隨著時間的推移，您將在多大程度上從事志願業務？您會更加依賴外賣還是希望通過外賣推動增長？收購成本當然相當有吸引力。這會成為焦點嗎？

Mark, it's Paresh. Regarding that, I think we are doing voluntary business anyway. It's just how it runs to the book is where the numbers become different. The takeout is a opportunity that we've anticipated for a while and we've actually communicated on previous calls and is now here, and we are taking advantage of it. It's almost like in addition to the other things we've been doing.

馬克，我是帕雷什。對此，我認為無論如何我們都是在做自願的生意。這就是書中的數字變得不同的地方。外賣是我們期待已久的機會，實際上我們在之前的電話中已經進行了溝通，現在已經到來，我們正在利用它。這幾乎就像是我們一直在做的其他事情的補充。

So we are -- I guess the overall theme that we're trying to communicate is 2 quarters of (inaudible) [go past], we -- people were asking, hey, what will this mean? How much impact will you see? People are trying to get it quantified. And we made -- we modeled things, and we sort of try to forecast where things were going to be and how things will evolve.

所以我們 - 我想我們試圖傳達的總體主題是（聽不清）[過去] 的兩個季度，我們 - 人們在問，嘿，這意味著什麼？您會看到多大的影響？人們正試圖將其量化。我們對事物進行了建模，並嘗試預測事物將走向何方以及事物將如何演變。

And I think what we're telling you halfway through the year is things are working out fairly much like we had said. And now it's come -- actually showing up in the numbers the way we had said it. And then the follow-up actions we had said we would take when that was achieved is what we're laying out for the back half of the year, yes? So...

我認為今年過半我們要告訴你們的是，事情的進展與我們所說的非常相似。現在它來了——實際上按照我們所說的方式出現在數字中。然後，我們所說的在實現這一目標後將採取的後續行動就是我們為下半年制定的計劃，是嗎？所以...

Yes. Understood. The premiums ceded, [what do you say], a good run rate with the new reinsurance in place in terms of [actual] dollars?

是的。明白了。所放棄的保費，[你怎麼說]，在新的再保險到位的情況下，以[實際]美元計算，運行率良好？

Yes. It's Mark. Pretty similar to what's in 8-K, I think it's $67 million and change, very close to what it was in -- yes, actually, just about $67 million. So very similar to what it was in Q2.

是的。是馬克。與 8-K 中的內容非常相似，我認為它是 6700 萬美元，並且發生了變化，非常接近它的內容 - 是的，實際上，只有大約 6700 萬美元。與第二季度的情況非常相似。

Okay. Any change in the -- I think last quarter, you talked about your prior pattern of kind of boosting up reserves a little bit on a quarterly basis. And I think you shifted away from that. Is that -- was there any impact from that when we think about the loss ratio?

好的。我想上個季度，您談到了之前每季度增加一點準備金的模式。我認為你已經偏離了這一點。當我們考慮損失率時，這有什麼影響嗎？

Not really. I mean we had -- net reserves are pretty flat so far this year. We didn't really have much adverse development in the first quarter. We booked a little bit less than $1 million. There's really -- there's not much going on there. I mean reserves for the most -- [incurred] for the most part are coming in where we expected them to. And so we're not having to really make any adjustments for prior periods, and we're keeping net reserves pretty flat for now. There are some indications that there -- that they could be starting to come down. But so far, we're keeping them flat.

並不真地。我的意思是，今年到目前為止，我們的淨儲備相當平穩。第一季度我們並沒有出現太多不利的發展。我們預訂的價格不到 100 萬美元。那裡確實沒有發生太多事情。我的意思是，大多數準備金——[產生的]大部分都達到了我們的預期。因此，我們不必對前期進行任何調整，而且目前我們的淨儲備保持相當平穩。有一些跡象表明，它們可能開始下降。但到目前為止，我們保持它們平坦。

Yes. TypTap written in the quarter was down year-over-year. Is that nonrenewal of flood business? What was driving that?

是的。本季度寫入的 TypTap 同比下降。這是洪水業務的不續約嗎？是什麼推動了這一點？

Yes. There's a little bit of noise in there, Mark. It's -- part of it is flood. About $8 million of it was flood because we had about $4 million of written premium in Q2 last year, and we had negative written premium this year just because we're -- there was a return of some of the unearned premium. So that's part of it. And the other is UPC Southeast. So the written premium was down in the second quarter for that, and that was just kind of a timing thing.

是的。馬克，裡面有一點噪音。其中一部分是洪水。其中大約 800 萬美元是洪水，因為去年第二季度我們有大約 400 萬美元的承保保費，而今年我們的承保保費為負，只是因為我們有一些不勞而獲的保費返還。這就是其中的一部分。另一個是UPC東南。因此，第二季度的承保保費有所下降，這只是一個時機問題。

You may remember with the UPC -- changes at UPC, we renewed -- a lot of the policies that would normally have renewed in Q2 were renewed in Q1. And so we had higher earned -- higher written premium in Q1 and then less in Q2. And Q2 for UPC Southeast was actually a little bit negative. So there's a lot of noise in the Q2 written numbers that make it a little bit hard to follow. But in Q3, we'll be back to sort of the normal pattern of written premium.

您可能還記得 UPC——UPC 的變化，我們更新了——許多通常會在第二季度更新的保單在第一季度更新了。因此，我們的收入更高——第一季度的保費更高，第二季度的保費更少。 UPC South 的第二季度實際上有點負面。因此，第二季度的書面數據中有很多噪音，使其有點難以理解。但在第三季度，我們將恢復到承保保費的正常模式。

How much cash at the holdco?

控股公司有多少現金？

So as I mentioned, cash and financial investments at the holding company level is about $164 million. I think the cash component of that is about $135 million, something like that.

正如我提到的，控股公司層面的現金和金融投資約為 1.64 億美元。我認為其中的現金部分約為 1.35 億美元，大約是這樣的。

(Operator Instructions) We have a couple of questions in queue, the first coming from [Lee Kerry with Kerry Partners].

（操作員說明）我們有幾個問題正在排隊，第一個問題來自 [Lee Kerry 與 Kerry Partners]。

What an outstanding quarter, very pleasant. I want to get an idea from you on how the whole reinsurance environment is shaking out. I know there's been a lot of changes in different directions. Now that you've completed it and seen how it had ended up last month, what's the outlook going forward from that?

多麼出色的一個季度，非常令人愉快。我想從您那裡了解整個再保險環境正在發生怎樣的變化。我知道不同方向發生了很多變化。既然您已經完成了它並了解了上個月的結果，那麼接下來的前景如何？

Lee, simple answer about the reinsurance outlook, and I didn't make it in my prepared remarks, was that beginning of the year, there was some uncertainty about the availability and affordability of reinsurance, right? And all of that speculation goes on.

李，關於再保險前景的簡單回答，我在準備好的發言中沒有提到，今年年初，再保險的可用性和承受能力存在一些不確定性，對吧？所有這些猜測仍在繼續。

And I think from what Mark has said and Karin has said and what was released in the 8-K, we placed our reinsurance program because we had anticipated these changes, et cetera. The numbers are there. It's now in the 8-K. So at least for us, we don't have a reinsurance variability anxiety until next June at the earliest, yes?

我認為，從 Mark 和 Karin 所說的以及 8-K 中發布的內容來看，我們制定了再保險計劃，因為我們已經預料到了這些變化，等等。數字就在那裡。現在是8-K。所以至少對我們來說，最早要到明年六月我們才會有再保險變異性焦慮，是嗎？

The other thing on a general reinsurance industry, I think, which is the nature of your question, I think the anxiety level amongst reinsurers, at least in terms of Florida, seems to have abated, especially by what happened in May. I think lots of reinsurance availability is now starting to normalize. Affordability is a different price, but that's just what that is, yes?

我認為，關於一般再保險行業的另一件事，這就是你問題的本質，我認為再保險公司的焦慮程度，至少在佛羅里達州，似乎已經減弱，特別是在五月份發生的事情之後。我認為許多再保險的可用性現在開始正常化。可負擔性是不同的價格，但這就是事實，是嗎？

We have a follow-up coming from Mark with Truist.

我們有來自 Mark 和 Truist 的後續報導。

Just wanted to make sure I was clear on the depop. It's been a while. You take the premium, whatever you end up being successful on. And then the -- really no reinsurance -- associated reinsurance costs or acquisition costs until those policies -- well, until you get to the next storm season or when the policies renew. Is that the right way to think about the financial impact?

只是想確保我對 depop 很清楚。有一陣子了。無論你最終在什麼方面取得成功，你都會獲得溢價。然後——實際上沒有再保險——相關的再保險成本或購買成本，直到這些保單——好吧，直到你到達下一個風暴季節或保單更新時。這是考慮財務影響的正確方法嗎？

Yes. And Mark, I'll split hairs with you. So when you do an assumption, you will book GWP on the assumption date of whatever earned premium there was. The acquisition cost will be 0 until those policies expire and renew onto our paper, at which point, will go back to normal. And the reinsurance cost on those policies with occasional -- with very few exceptions will be 0 until June 1 of next year, yes? So 3 components move in slightly different way, but just so you know, yes?

是的。馬克，我會和你爭論的。因此，當您進行假設時，您將在假設日期預訂 GWP，無論所賺取的保費是什麼。在這些保單到期並更新到我們的紙上之前，購置成本將為 0，此時，將恢復正常。在明年 6 月 1 日之前，這些保單的再保險成本偶爾（極少數例外）將為 0，是嗎？所以 3 個組件的移動方式略有不同，但只是讓你知道，是嗎？

Yes. Any kind of subjective commentary about the quality of the policies in Citizens now with the increase? How do you -- how fertile is the takeout opportunity?

是的。隨著公民數量的增加，對現在的政策質量有什麼主觀評價嗎？您認為外賣機會有多豐富？

I think the way I would characterize it is Citizens has 1.3 million policies, if I remember correctly, until the end of June, right? That's a lot of policies. We are talking about trying to pick, at most, 75,000 policies. But if you have 65,000 policy, it'd be 5% of their book, right? Can we find 5% that we like out of that big of a pool? We like our chances, yes? But that is -- I'm not commenting on the entire pool. My sole mission is can I find 75,000 policyholders that we might want as HCI customers, and the answer would be yes.

我想我的描述方式是，公民有 130 萬份保單，如果我沒記錯的話，到 6 月底為止，對吧？這是很多政策。我們正在討論嘗試選擇最多 75,000 份保單。但如果你有 65,000 份保單，那就是他們賬上的 5%，對吧？我們能從這麼大的池子裡找到我們喜歡的 5% 嗎？我們喜歡我們的機會，是嗎？但我不會對整個池子發表評論。我唯一的任務是能否找到我們可能希望成為 HCI 客戶的 75,000 名保單持有人，答案是肯定的。

(Operator Instructions) We have no further questions in queue. At this time, this concludes our question-and-answer session. I would now like to turn the call back over to Paresh Patel who has a few closing remarks.

（操作員說明）我們隊列中沒有其他問題。至此，我們的問答環節就結束了。我現在想將電話轉回給帕雷什·帕特爾（Paresh Patel），他會做總結髮言。

On behalf of the entire management team, I would like to thank our shareholders, employees, agents and, most importantly, our current policyholders as well as our anticipated future policyholders for their continued support. We look forward to updating you on our progress in the coming quarters. Thank you, everyone.

我謹代表整個管理團隊感謝我們的股東、員工、代理人，最重要的是，感謝我們當前的保單持有人以及我們預期的未來保單持有人的持續支持。我們期待向您通報我們未來幾個季度的最新進展。謝謝大家。

At this time, this concludes our question-and-answer session. This concludes today's call. You may now disconnect.

至此，我們的問答環節就結束了。今天的電話會議到此結束。您現在可以斷開連接。