The Hartford Insurance Group, Inc. (HIG) 2026 Q2 法說會逐字稿

Hello, everyone. Thank you for joining us, and welcome to the Hartford second quarter 2026 financial results webcast. (Operator Instructions)

各位好。感謝各位加入，歡迎收看哈特福德（The Hartford）2026 年第二季財務結果網路直播。（接線員指示）

I will now hand the conference over to Kate Jorens, Senior Vice President, Treasurer and Head of Investor Relations. Kate, please go ahead.

現在我將把會議交給資深副總裁、財務主管兼投資人關係主管 Kate Jorens。Kate，請開始。

Good morning, and thank you for joining us today for the Hartford second quarter 2026 earnings call and webcast. Yesterday, we reported results and posted all earnings-related materials on our website.

各位早安，感謝各位今天參加哈特福德 2026 年第二季法說會與網路直播。昨天我們已公布業績，並將所有與財報相關的資料上傳至本公司網站。

Before we begin, please note that our presentation includes forward-looking statements, which are not guarantees of future performance and may differ materially from actual results. We do not assume any obligation to update these statements. Investors should consider the risks and uncertainties detailed in our recent SEC filings, news release, and financial supplement, which are available on the Investor Relations section of thehartford.com. Our commentary includes non-GAAP financial measures with explanations and GAAP reconciliations available in our recent SEC filings, news release, and financial supplement.

在開始之前，請注意我們的簡報包含前瞻性陳述；此等陳述不保證未來表現，且實際結果可能與之有重大差異。我們不承擔更新這些陳述的任何義務。投資人應考量我們近期向美國證券交易委員會（SEC）提交之文件、新聞稿及財務補充資料中所詳述的風險與不確定性；上述資料可於 thehartford.com 的投資人關係專區取得。我們的評論包含非 GAAP 財務衡量指標，其說明及與 GAAP 的調節表載於我們近期的 SEC 申報文件、新聞稿及財務補充資料中。

Now I'd like to introduce our speakers: Chris Swift, Chairman and Chief Executive Officer; and Beth Costello, Chief Financial Officer. After their remarks, we will take your questions, assisted by several members of our management team.

現在我想介紹今天的講者：董事長兼執行長 Chris Swift，以及財務長 Beth Costello。在他們致詞後，我們將在多位管理團隊成員協助下回答各位的提問。

And now I'll turn the call over to Chris.

接下來我把電話交給 Chris。

Good morning, and thank you for joining us today. The Hartford delivered another quarter of strong results, reflecting the strength of our franchise, the depth of our distribution relationships, and our commitment to a superior customer experience. Supported by market-leading positions and differentiated capabilities across Property & Casualty and employee benefits, The Hartford remains well positioned to continue delivering outstanding returns.

各位早安，感謝各位今天加入。哈特福德再度交出強勁的一季成果，反映出我們特許經營的實力、深厚的通路合作關係，以及我們對卓越客戶體驗的承諾。在產險（Property & Casualty）與員工福利兩大領域具備市場領先地位與差異化能力的支持下，哈特福德仍具備良好條件，持續創造優異報酬。

During the quarter, we announced an agreement to sell The Hartford Funds to Wellington Management, strategically monetizing a non-core long-term investment. I'm also pleased to announce that our Board of Directors approved a new share repurchase authorization of $4.2 billion, reflecting strong capital generation from our businesses as well as expected cash proceeds from The Hartford Funds sale. We will continue to balance growth, investing in our businesses, and returning excess capital to shareholders through repurchases and dividends.

本季我們宣布已達成協議，將 The Hartford Funds 出售予 Wellington Management，策略性地將一項非核心的長期投資變現。我也很高興宣布，董事會已核准新的庫藏股回購授權額度 42 億美元，反映我們各項業務強勁的資本創造能力，以及預期自 The Hartford Funds 出售案取得的現金收入。我們將持續在成長、投資於業務，以及透過回購與股利將多餘資本回饋股東之間取得平衡。

Now let me share a few details from the quarter. Business Insurance delivered strong written premium growth of 5% with an underlying combined ratio of 89.3%. In Personal Insurance, the underlying combined ratio improved 1.7 points year over year, with growth impacted by a competitive market. Employee Benefits had another quarter of strong premium growth, with a core earnings margin of 7.4%, and the investment portfolio continued to generate strong net investment income. All these factors contributed to core earnings of $945 million and an outstanding core earnings ROE of 18.7% over the trailing 12 months.

接下來我分享本季幾項重點。商業保險（Business Insurance）簽單保費強勁成長 5%，基礎綜合率為 89.3%。個人保險（Personal Insurance）方面，基礎綜合率年增改善 1.7 個百分點，但成長受到競爭激烈的市場影響。員工福利（Employee Benefits）再度呈現強勁保費成長，核心盈餘利潤率為 7.4%，投資組合亦持續帶來強勁的淨投資收益。上述因素共同促成核心盈餘 9.45 億美元，且過去 12 個月的核心盈餘股東權益報酬率（ROE）達到出色的 18.7%。

Let's take a closer look at second quarter performance. Business Insurance delivered another strong quarter, reflecting excellent execution across our portfolio. The current market conditions highlight the importance of underwriting discipline, pricing rigor, and risk selection, areas where we continue to differentiate ourselves. This was evident in our performance during the quarter as we continue to outpace the market in Small Business while remaining disciplined and selective across Middle & Large and Specialty lines, demonstrating our ability to perform well across cycles.

讓我們更深入檢視第二季表現。商業保險再度交出強勁的一季，反映我們在整體投資組合上的卓越執行力。目前市場環境凸顯核保紀律、嚴謹定價與風險篩選的重要性，而這些正是我們持續展現差異化的領域。本季表現亦印證此點：我們在小型企業（Small Business）持續領先市場，同時在中大型（Middle & Large）與專業險（Specialty）各線維持紀律與選擇性，展現我們跨景氣循環皆能良好表現的能力。

Small Business results were excellent with written premium growth of 7% and an underlying combined ratio of 86.5%. Growth was driven by double-digit increases in both package and E&S binding.

小型企業的結果非常亮眼，簽單保費成長 7%，基礎綜合率為 86.5%。成長主要來自套裝保單（package）與 E&S（超額及剩餘市場）承保（binding）雙雙達到兩位數增幅。

Our investments in automation and digital service, which have driven speed, ease, and accuracy of quoting also position us well as wholesale and retail brokers seek to consolidate business with a smaller number of underwriting partners. These market-leading capabilities will continue to drive meaningful growth in 2026 and beyond.

我們在自動化與數位服務上的投資提升了報價速度、便利性與準確性，也使我們在批發與零售經紀商尋求將業務整合至較少數核保合作夥伴時，具備良好定位。這些市場領先的能力將在 2026 年及其後持續帶動具意義的成長。

Moving to Middle & Large. Written premium growth was solid at 4% with an underlying combined ratio of 95.3%, which included normal quarter-to-quarter volatility in non-CAT property losses. The team remains focused on disciplined underwriting and selecting opportunities that deliver attractive risk-adjusted returns in an increasingly competitive environment.

接著談中大型業務。簽單保費穩健成長 4%，基礎綜合率為 95.3%，其中包含非巨災（non-CAT）財產損失在季度間的正常波動。團隊仍專注於維持核保紀律，並在競爭日益激烈的環境中，選擇能帶來具吸引力風險調整後報酬的機會。

We continue to invest in AI-enabled capabilities that enhance underwriting effectiveness by providing faster access to risk insights directly in our underwriting workflows. For example, in Middle & Large, early results are encouraging, with underwriting activities being completed in a fraction of the time, increasing productivity and enabling underwriters to spend more time expanding agent and broker relationships to drive increased submission flow. Our underwriters continue to own the decision, leveraging AI-enabled capabilities that provide deeper insights and enhance underwriting consistency.

我們持續投資於 AI 賦能的能力，透過在核保工作流程中更快速取得風險洞察，提升核保效能。例如在中大型業務方面，初步成果令人鼓舞：核保作業可在更短時間內完成，提升生產力，並讓核保人員能投入更多時間拓展代理人與經紀商關係，以帶動更多投保案件（submission）流入。我們的核保人員仍保有決策主導權，並運用 AI 賦能能力取得更深入洞察、提升核保一致性。

Turning to Global Specialty. Underlying margins remain strong in the mid-80s, demonstrating disciplined underwriting and active portfolio management. Written premium growth of 4% reflected continued momentum across several lines of business led by wholesale excess casualty and auto, bond, and financial lines. Market conditions vary across businesses, and we remain focused on deploying capital where we see attractive risk-adjusted returns. The breadth of our Global Specialty platform and underwriting capabilities enables us to adjust to changing market conditions and pursue profitable growth across the portfolio.

接著談全球專業險（Global Specialty）。基礎利潤率仍維持在 80% 中段的強勁水準，展現嚴謹核保與積極的投資組合管理。簽單保費成長 4%，反映多條業務線持續動能，主要由批發超額責任險與汽車險、保證險（bond）及金融險等帶動。各業務的市場狀況不一，我們仍專注於在看見具吸引力風險調整後報酬之處配置資本。我們全球專業險平台的廣度與核保能力，使我們能因應市場變化並在整體投資組合中追求獲利成長。

Turning to pricing. Business Insurance renewal written pricing, excluding workers' compensation, remained relatively consistent at 5.8% in the quarter. Pricing in commercial auto and general liability remained strong and above loss trend with umbrella, in excess achieving some of the highest rate increases across the portfolio. Property continues to remain highly profitable and an attractive area for growth though pricing moderated during the quarter, driven primarily by large property. Importantly, aggregate property pricing for small business package and middle-market general industries remained fairly steady in the mid-single digits.

接著談定價。商業保險續保簽單定價（不含勞工補償險）本季維持相對一致，為 5.8%。商用車險與一般責任險的定價仍然強勁，且高於損失趨勢；其中伞式責任險（umbrella）與超額層（in excess）在投資組合中達到最高的部分費率調升幅度。財產險仍維持高度獲利，亦是具吸引力的成長領域，惟本季定價有所趨緩，主要受大型財產險影響。重要的是，小型企業套裝保單與中型市場一般產業的整體財產險定價大致維持在中個位數的穩定水準。

Shifting to Personal Insurance, the underlying combined ratio was strong at 86.3%. In Auto, the underlying combined ratio improved 1.9 points year over year as earned pricing continues to exceed loss trend. Home results remained strong supported by consistent underwriting execution and low double-digit pricing. Competition for new business remained elevated and continued to impact growth.

轉到個人保險，基礎綜合率表現強勁，為 86.3%。汽車險方面，基礎綜合率年增改善 1.9 個百分點，因已賺保費定價持續高於損失趨勢。住宅險結果仍然強勁，受惠於一致的核保執行與低兩位數的定價調升。新業務競爭仍然激烈，並持續影響成長。

Within agency, following our July rollout, our contemporary product offering is now available in 23 states and progressing as planned. In direct, with the AARP relationship, we are focused on strengthening customer acquisition and retention. Across Personal Insurance, we continue to invest in strategic capabilities required to compete effectively and sustainably, including competitive pricing, seamless customer experiences, in products and services targeting the mature market.

在代理通路方面，繼我們於 7 月推出後，我們的現代化產品方案目前已在 23 個州提供，並按計畫推進。在直銷通路方面，透過與 AARP 的合作關係，我們專注於強化客戶獲取與留存。在個人保險整體上，我們持續投資於有效且可持續競爭所需的策略能力，包括具競爭力的定價、無縫的客戶體驗，以及針對熟齡市場的產品與服務。

Before moving on to employee benefits, I'd like to briefly touch upon our annual P&C Agent Summit held in May. Discussions with key distribution partners reinforce The Hartford's differentiated claims and risk engineering capabilities. A key theme at the Summit was the importance of risk mitigation as customers increasingly look for insights and expertise to help prevent losses.

在進入員工福利之前，我想簡要提及我們於 5 月舉辦的年度產險（P&C）代理人高峰會。與主要通路合作夥伴的討論再次印證哈特福德在理賠與風險工程方面的差異化能力。高峰會的一項關鍵主題是風險減緩的重要性，因客戶日益尋求洞察與專業，以協助預防損失。

Our focus is on practical scalable solutions that help customers operate more safely. By combining claims insights, risk engineering expertise and technology-enabled tools, we help customers identify risk earlier, take action sooner, and improve outcomes over time.

我們的重點在於可落地、可擴展的解決方案，協助客戶更安全地營運。透過結合理賠洞察、風險工程專業與科技賦能工具，我們協助客戶更早識別風險、更快採取行動，並隨時間推進改善成果。

Moving on to Employee Benefits. Core earnings margin of 7.4% was driven by excellent life and solid disability results. We were pleased with another strong quarter of fully insured premium growth, benefiting from excellent sales execution, persistency in the low 90s and continued investments in technology. We were able to achieve these results while maintaining our pricing and underwriting discipline.

接下來談員工福利。核心盈餘利潤率為 7.4%，主要受惠於團體壽險表現優異以及失能險結果穩健。我們很高興再度迎來完全承保保費強勁成長的一季，受惠於卓越的銷售執行、續保率維持在 90% 出頭，以及持續投入科技。我們在維持定價與核保紀律的同時，仍能達成上述成果。

Demand for solutions that help improve workforce productivity, and simplify absence and leave management remains high. We believe our integrated benefits platform differentiates us in the market, and together with strong persistency and disciplined execution, positions employee benefits to continue generating attractive growth and margins.

市場對於可提升員工生產力並簡化缺勤與休假管理的解決方案需求仍然強勁。我們相信整合式福利平台使我們在市場上具備差異化優勢；再加上強勁的續保表現與有紀律的執行，將使員工福利業務持續創造具吸引力的成長與利潤率。

In closing, second quarter results demonstrate continued momentum and execution of our strategy. In Business Insurance, a diversified portfolio, strong distribution relationships, disciplined underwriting, and technology-enabled execution continue to drive profitable growth at attractive returns. In Personal Insurance, our focus remains on thoughtful market share expansion supported by continued progress in the agency channel.

最後，第二季的結果展現我們策略持續推進的動能與執行力。在商業保險方面，多元化的投資組合、強健的通路關係、有紀律的核保，以及科技賦能的執行，持續以具吸引力的報酬推動獲利成長。在個人保險方面，我們仍聚焦於審慎擴大市占，並由代理通路的持續進展提供支撐。

Employee Benefits remains a high-quality, accretive business where our leadership in absence and leave positions us well at the large end of the market and our ongoing investments will enable us to extend those capabilities to more small and midsized customers. Investment income remained strong, supported by a diversified and durable portfolio. With another strong quarter, I am confident in The Hartford's ability to continue delivering outstanding ROEs and attractive returns for our shareholders.

員工福利仍是一項高品質、具增益性的業務；我們在缺勤與休假領域的領導地位，使我們在大型市場端具備良好定位，而我們持續的投資將使我們能把這些能力延伸至更多小型與中型客戶。投資收益維持強勁，並由多元且具韌性的投資組合所支撐。在再度交出強勁一季的成績後，我對 The Hartford 持續為股東帶來卓越 ROE 與具吸引力報酬的能力充滿信心。

Now let me turn the call over to Beth to provide more detailed commentary on the quarter.

接下來我把電話交給 Beth，請她就本季提供更詳細的說明。

Thank you, Chris. Core earnings for the quarter were $945 million or $3.42 per diluted share with a trailing 12-month core earnings ROE of 18.7%. Book value per share, excluding AOCI of $78.91, increased 7% from year-end and 15% from a year ago, reflecting the earnings power of our businesses and disciplined approach to capital management.

謝謝你，Chris。本季核心盈餘為 9.45 億美元，或稀釋後每股 3.42 美元；過去 12 個月核心盈餘 ROE 為 18.7%。每股帳面價值（不含 AOCI）為 78.91 美元，較年末增加 7%，較一年前增加 15%，反映我們各項業務的獲利能力以及有紀律的資本管理方式。

In Business Insurance, core earnings were $695 million with written premium growth of 5% and an underlying combined ratio of 89.3%. Small business continues to deliver excellent results with written premium growth of 7% and an underlying combined ratio of 86.5%. The underlying combined ratio improved 2.5 points from the prior year, primarily due to lower non-CAT property losses and improved operating leverage.

在商業保險方面，核心盈餘為 6.95 億美元，簽單保費成長 5%，基礎綜合比率為 89.3%。小型企業持續交出優異成果，簽單保費成長 7%，基礎綜合比率為 86.5%。基礎綜合比率較去年改善 2.5 個點，主要因非巨災（non-CAT）財產損失較低，以及營運槓桿改善。

Middle & Large business had a solid quarter, with written premium growth of 4% and an underlying combined ratio of 95.3%. Underlying results include elevated non-CAT property losses due to a few large fire losses and a shift in business mix towards national accounts and commercial auto.

中型與大型企業業務本季表現穩健，簽單保費成長 4%，基礎綜合比率為 95.3%。基礎結果包含較高的非巨災財產損失，原因是發生數起大型火災損失，以及業務組合轉向全國性帳戶與商用車險。

Global Specialty second quarter was strong with written premium growth of 4% and an underlying combined ratio of 85.8%. The underlying combined ratio increased from the prior year primarily due to an increase in the international loss ratio and a higher expense ratio driven by technology costs. The business insurance expense ratio of 30.7% was generally consistent with the prior year and in line with our expectations. We remain on track to achieve our 2027 year-end targets.

全球專業險第二季表現強勁，簽單保費成長 4%，基礎綜合比率為 85.8%。基礎綜合比率較去年上升，主要因國際損失率上升，以及受科技成本帶動的費用率提高。商業保險費用率為 30.7%，大致與去年一致，並符合我們的預期。我們仍按計畫朝 2027 年底目標邁進。

In Personal Insurance, core earnings were $128 million with an underlying combined ratio of 86.3%. The underlying combined ratio improved 1.7 points in the quarter, with improvement in the underlying loss and loss adjustment expense ratio in both auto and home. The Personal Insurance expense ratio of 26.3% increased from 25.1% in second quarter 2025, primarily driven by the impact of lower earned premiums and higher commissions due to an increasing mix of agency business.

在個人保險方面，核心盈餘為 1.28 億美元，基礎綜合比率為 86.3%。本季基礎綜合比率改善 1.7 個點，汽車與住宅保險的基礎損失率及損失調整費用率均有所改善。個人保險費用率為 26.3%，較 2025 年第二季的 25.1% 上升，主要受已賺保費較低的影響，以及因代理業務占比提高而導致佣金增加。

Written premium in Personal Insurance declined 7% with a 10% decline in auto and flat growth in home. Agency growth remained strong at 7% over the prior year. Renewal written pricing increases were 5.5% in auto and 10.4% in home, and effective policy count retention improved slightly in auto and remained relatively stable in home.

個人保險簽單保費下滑 7%，其中汽車保險下滑 10%，住宅保險持平。代理通路成長仍然強勁，較去年成長 7%。續保簽單價格調升幅度為：汽車 5.5%、住宅 10.4%；有效保單數的留存率在汽車略有改善，住宅則相對穩定。

Turning to reserves. Favorable prior year development was driven by reserve reductions in workers' compensation, catastrophes, bond, and personal insurance, partially offset by an increase in general liability and commercial auto liability reserves.

接著談準備金。有利的前期年度發展主要來自工傷補償、巨災、保證（bond）以及個人保險的準備金下調；但部分被一般責任險與商用車責任險準備金增加所抵銷。

General liability reserves were increased in the quarter primarily to reflect a higher frequency of large losses in excess casualty and umbrella lines across multiple accident years. Commercial auto liability reserves were increased primarily due to adverse loss development within accident years 2023 and 2024, driven by higher severity than previously estimated. This activity reflects increasing attorney representation and time limit demand, which have been incorporated into our reserve estimates.

本季一般責任險準備金上調，主要為反映超額意外險（excess casualty）與超額責任（umbrella）等線別在多個事故年度中大型損失發生頻率較高。商用車責任險準備金上調，主要因 2023 與 2024 事故年度出現不利損失發展，係由損失嚴重度高於先前估計所致。此一變動反映律師介入比例上升與限時和解要求（time limit demand）增加，且已納入我們的準備金估計。

With respect to catastrophes, P&C current accident year losses were $222 million before tax, up from $212 million in the prior year, while the catastrophe ratio remained unchanged at 4.9% combined ratio points.

就巨災而言，產險（P&C）當年度事故年度損失稅前為 2.22 億美元，高於去年同期的 2.12 億美元；但巨災比率維持不變，仍為綜合比率 4.9 個點。

Moving to Employee Benefits. Core earnings of $139 million and a core earnings margin of 7.4% reflect excellent group life and solid disability performance. The group life loss ratio of 74.2% was relatively flat to the prior year, and the group disability loss ratio of 74.8% increased by 6.3 points.

接著談員工福利。核心盈餘為 1.39 億美元，核心盈餘利潤率為 7.4%，反映團體壽險表現優異以及失能險表現穩健。團體壽險損失率為 74.2%，與去年大致持平；團體失能險損失率為 74.8%，上升 6.3 個點。

Disability results were partially driven by increased claim incidence across short- and long-term disability. In addition, long-term disability claim recoveries were in line with long-term expectations although were less favorable than the prior year, which benefited from particularly strong recovery.

失能險結果部分受短期與長期失能的理賠發生率上升所影響。此外，長期失能理賠追償（recoveries）符合長期預期，但不如去年有利；去年受惠於特別強勁的追償表現。

The Employee Benefits expense ratio of 25.2% improved 0.5 points compared with 25.7% in second quarter 2025, driven by the impact of earned premium growth and a lower commission ratio, partially offset by higher technology costs.

員工福利費用率為 25.2%，較 2025 年第二季的 25.7% 改善 0.5 個點，主要受已賺保費成長與佣金率下降所帶動，但部分被較高的科技成本所抵銷。

Turning to investments. Our diversified portfolio delivered strong results in the second quarter. Net investment income was $800 million, up $142 million or 22% from the second quarter of 2025, driven by higher income from limited partnerships and other alternative investments and a higher level of invested assets. Excluding limited partnerships, the annualized portfolio yield was 4.7% before tax, up 20 basis points from the first quarter. We continue to strategically manage the portfolio, balancing risk and pursuing accretive trading opportunities.

接著談投資。我們多元化的投資組合在第二季交出強勁成果。淨投資收益為 8.00 億美元，較 2025 年第二季增加 1.42 億美元或 22%，主要由有限合夥（limited partnerships）及其他另類投資的收益增加，以及投資資產規模提高所帶動。若排除有限合夥，投資組合年化殖利率稅前為 4.7%，較第一季上升 20 個基點。我們持續以策略性方式管理投資組合，在平衡風險的同時，尋求具增益性的交易機會。

Annualized limited partnership returns were 7.6% before tax, up from 5.1% in the first quarter. Results benefited from multiple real estate joint venture sales and strong performance from infrastructure and energy transition funds. Looking ahead to the second half of 2026, we expect limited partnership returns to remain generally consistent with the average annualized return achieved in the first half of the year, although further geopolitical and economic volatility could affect results.

有限合夥年化報酬率稅前為 7.6%，高於第一季的 5.1%。結果受惠於多筆不動產合資案出售，以及基礎建設與能源轉型基金的強勁表現。展望 2026 年下半年，我們預期有限合夥報酬率大致將與上半年達成的平均年化報酬一致，但進一步的地緣政治與經濟波動仍可能影響結果。

For full year 2026, given the current market conditions, we continue to expect net investment income to increase, supported by growth in invested assets with overall portfolio yields expected to remain broadly in line with 2025.

就 2026 全年而言，考量目前市場狀況，我們仍預期淨投資收益將增加，並由投資資產成長所支撐；整體投資組合殖利率預期大致與 2025 年持平。

Yesterday, the Board of Directors approved a new share repurchase authorization of $4.2 billion effective through December 2028, reflecting the strong capital generation of our businesses, as well as expected cash proceeds from The Hartford Funds transaction. This authorization is in addition to the existing authorization, which as of June 30, had approximately $650 million remaining.

昨日，董事會核准一項新的庫藏股回購授權，金額為 42 億美元，有效期至 2028 年 12 月，反映我們各項業務強勁的資本創造能力，以及預期自 The Hartford Funds 交易取得的現金收入。此項授權為既有授權之外的新增；截至 6 月 30 日，既有授權尚餘約 6.5 億美元。

During the quarter, we repurchased 3.4 million shares for $450 million. We expect to increase our quarterly repurchases to $475 million through the remainder of 2026.

本季期間，我們以4.5億美元回購了340萬股。我們預期在2026年剩餘期間，將把每季回購金額提高至4.75億美元。

In summary, we are very pleased with our strong performance for the second quarter and believe we are well positioned to continue to enhance value for our stakeholders.

總結來說，我們對第二季的強勁表現感到非常滿意，並相信我們已具備良好條件，能持續為利害關係人提升價值。

I will now turn the call back to Kate.

接下來我把電話交回給Kate。

Thank you, Beth. We will now take your questions. Operator, please repeat the instructions for asking a question.

謝謝你，Beth。我們現在開始回答各位的提問。接線員，請重複提問的操作說明。

(Operator Instructions) Andrew Kligerman, TD Cowen.

(接線員指示) Andrew Kligerman，TD Cowen。

I appreciate the granularity in the Q on loss reserve development and Beth's additional remarks about more frequency in GL and severity in commercial auto. So I'd like to just zero in on 3 numbers in that table. The $110 million favorable in workers' comp, the $116 million adverse in general liability and the $26 million in commercial auto.

我很欣賞你們在損失準備金發展（loss reserve development）問題上的細緻程度，以及Beth對一般責任險（GL）頻率上升與商業車險嚴重度上升的補充說明。因此我想聚焦在那張表中的三個數字。勞工補償險（workers' comp）有1.10億美元的有利發展、一般責任險有1.16億美元的不利發展，以及商業車險有2,600萬美元。

Could you share some thoughts on whether you feel this is? Is it onetime or is it something that could become chronic? How are you thinking about these lines and the reserve adequacy going forward?

你們能否分享一些看法，關於你們是否認為這是……這是一次性的，還是可能變成長期性（chronic）的現象？你們如何看待這些險種以及未來的準備金充足性？

Andrew, it's Chris. Thanks for your question, and I appreciate your commentary on transparency and granularity. I think as you know, loss reserving is both science and art. And I think we've combined them pretty well over a long-term period and have had great stability. But this quarter required some changes, and I'll let Beth just give a little bit more color on what drove some of those changes.

Andrew，我是Chris。謝謝你的提問，也感謝你對透明度與細緻揭露的評論。我想你也知道，損失準備金提列既是科學也是藝術。我認為我們長期以來把兩者結合得相當好，並且維持了很高的穩定性。但本季確實需要做一些調整，我先請Beth再補充一些背景，說明是什麼驅動了其中部分變動。

Sure. So again, the number that you're referring to, Andrew, I think, as you know, are six-month numbers. So the numbers for the quarter, a bit smaller than that. So if I start with general liability, again, there, we increased prior year reserves by $46 million. And again, as it says in the commentary, that was across multiple accident years.

好的。Andrew，你提到的那些數字，我想你也知道，是六個月的數字。因此就單季而言，數字會比那個小一些。如果先從一般責任險開始，我們將前一年度準備金增加了4,600萬美元。同樣如評論所述，這是分布在多個事故年度。

We saw some elevated large loss activity. And these are lines that we want to be very cautious about. So we reacted to that. And I think a very modest increase when you think about the reserve base being a little bit under $6.5 billion.

我們看到一些偏高的大額損失活動。而這些險種我們希望非常審慎。因此我們做出了反應。若考量準備金基礎約在65億美元以下，這其實是非常溫和的增加。

Commercial auto there, we saw activity in more recent years, again, large -- higher frequency of large losses. And really, what we're seeing there is more attorney involvement in accidents that in the past would have probably been more minor in nature and minor injuries. So again, looked at that and made the adjustments that you referenced.

商業車險方面，我們在較近期的年度看到活動增加，同樣是大額損失的發生頻率更高。我們真正看到的是，過去可能屬於較輕微事故與輕傷的案件，如今有更多律師介入。因此我們再次檢視並做了你所提到的調整。

And then on workers' comp, that -- we continue to see favorability there. We look at those reserves every quarter. I don't like predictions about the future, but the underlying book as it relates to prior years continues to perform very well.

至於勞工補償險，我們仍持續看到有利發展。我們每一季都會檢視這些準備金。我不喜歡對未來做預測，但就前期年度而言，相關的基礎承保組合仍持續表現非常好。

Excellent. Very helpful. And then kind of along the same lines with the employee benefits business rolling in on the group disability loss ratio at 74.8%, which was up a fair amount year over year. You made the comment, I think, on this call and then in the release that it's in line with long-term expectations. We're hearing a little bit about some of your competitors and seeing that line kind of tick up as well.

很好。非常有幫助。接著在相近的脈絡下，員工福利業務併入後，團體失能（group disability）損失率為74.8%，年增幅度相當大。我記得你在本次電話會議以及新聞稿中都提到，這與長期預期一致。我們也聽到一些競爭對手的情況，並看到該險種的數字也有上升。

Do you think it kind of stays in line with your target? Or do you think this is something that's going to start driving up over time? And maybe share a little bit on the backdrop, what you're seeing in that product area from a loss standpoint.

你認為它會維持在你們的目標範圍內嗎？還是你認為這會隨時間推移開始推升？也請分享一下背景，從損失角度來看，你們在該產品領域觀察到什麼。

Yeah. Thanks for the question, again, Andrew. I'll start and just give some context and sort of my views and then I'll ask Mike Fish to add his. So this is a very good business for us. It's been a strong performer over a long period of time.

是的。再次謝謝你的問題，Andrew。我先提供一些背景與我的看法，然後請Mike Fish補充他的觀點。這對我們而言是一項非常好的業務。長期以來一直是表現強勁的業務。

And you could actually make the argument that its performance over the last couple of years probably exceeded expectations, and we're sort of at the high end of expectations. But our 6% to 7% long-term margin has always been the view. And as I said, we've outperformed it of late. But through the first 6 months of this year, we are still operating at the high end of that margin, although down a little bit from prior year.

你甚至可以說，過去幾年的表現可能超出預期，我們大概處在預期區間的高端。但我們對長期6%到7%的利潤率（margin）一直都是這樣的看法。如我所說，我們近期確實有超越。但今年前六個月，我們仍在該利潤率區間的高端運作，雖然比前一年略低一些。

So I don't think there's anything fundamentally changing of the business other than when you're dealing particularly with national accounts and big employers, some of that favorability has been reflected back in pricing. And how that works its way through the P&L is a higher generally current accident year loss ratio, that's really still in pick. We haven't come out from any actual experience because a lot of these policies have six months of seasoning required before we'll make any adjustments.

因此我不認為業務本質上有任何根本性的改變；只是當你特別是在面對全國型客戶（national accounts）與大型雇主時，部分有利因素已在定價上回饋出去。而它反映到損益表（P&L）的方式，是當期事故年度損失率通常會較高，但其實仍在我們的預估之內。我們尚未因實際經驗而做出調整，因為許多保單需要六個月的成熟期（seasoning）後，我們才會進行任何調整。

And then, obviously, there's generally some lower prior year development because you're just -- you're picking the initial loss ratio closer to the expected long-term trend. So that's maybe too much technical on sort of the nuts and bolts, but I think the key message, at least from my perspective is, it is still performing within expectations.

此外，通常前期年度發展會較低，因為你只是把初始損失率設定得更接近預期的長期趨勢。這可能在技術細節上講得有點多，但我認為關鍵訊息，至少從我的角度來看，是它仍在預期範圍內表現。

We always look hard at pricing on cycles. Generally, these are still three-year policies. Mike will probably comment upon LTD, STD and paid family leave some of the incidences that we're seeing there. But it's a business we still like. And at that 6% to 7% margin, we're still generating 15-plus tangible ROEs.

我們一向會在不同循環中仔細檢視定價。一般而言，這些仍是三年期保單。Mike可能會就長期失能（LTD）、短期失能（STD）以及有薪家庭假（paid family leave）等我們看到的一些發生率（incidence）情況做評論。但這仍是我們喜歡的業務。在6%到7%的利潤率下，我們仍能創造15%以上的有形股東權益報酬率（tangible ROE）。

Yeah. So Andrew, I would just add that in the loss ratio for disability, think about half of that premium is long-term disability. The remainder is in the short-tail lines, including PFML. So as Chris noted, for LTD specifically in the quarter, again, recoveries, very pleased with the overall results continue to be a bit above our pricing expectations, but just on a quarter-to-quarter basis from 2Q '25 you saw, and we talked about a little bit of a decline there in recoveries, but -- and we'll continue to monitor that. I would say on the shorter tail lines, again, we're seeing higher incidence in the quarter and on a year-to-date basis.

是的。Andrew，我補充一下：在失能險的損失率中，大約一半的保費來自長期失能（LTD）。其餘則在短尾（short-tail）險種中，包括PFML。因此如Chris所說，就LTD而言，本季的追償（recoveries）表現我們很滿意，整體結果仍略高於我們的定價預期；但就季度間比較，從2025年第二季來看，你會看到追償有些下滑，我們也稍微談到這點——我們會持續監控。至於較短尾的險種，本季以及年初至今，我們確實看到更高的發生率。

A bit coming through across, I'd say, all diagnoses, although behavioral health claims are up a bit relative to the other claims. And those claims tend to have a bit more severity in those short-tail lines like short-term disability. So again, we're sort of seeing a bit of that developed. And then lastly, paid family medical leave, PFML. And we talked about that last quarter.

我會說這在各類診斷中都有所反映，不過相較於其他理賠，行為健康（behavioral health）理賠略有上升。而在像短期失能這類短尾險種中，這些理賠往往嚴重度更高一些。因此我們確實看到這方面有些發展。最後是有薪家庭醫療假（paid family medical leave，PFML）。我們在上季也談過這點。

So in the year-to-date results from a sales and premium perspective, we're benefiting on the top line with 3 new states coming online. As I talked about last quarter, we do see higher utilization in early periods when new states go live. So we're seeing that a bit. But I would also add, we're seeing utilization up in the states that have been out in force for a number of years.

因此，從年初至今的銷售與保費角度來看，隨著3個新州陸續上線，我們在營收端（top line）正受惠。如同我在上季提到的，當新州剛上線的初期，我們確實會看到較高的使用率。所以我們也確實看到一些這樣的情況。但我也要補充的是，在那些已經推行多年、運作成熟的州，我們同樣看到使用率上升。

And so as we've talked about, we'll continue to put rate on top of that book. And we'll see where that develops. But again, we feel really good in general about where our pricing is coming in, in total.

因此，如同我們一直在談的，我們會持續在那本業務上加費率（put rate on top）。我們也會觀察後續發展。但再說一次，整體而言，我們對目前的定價落點感覺非常好。

Brian Meredith, UBS.

Brian Meredith，瑞銀（UBS）。

I'm just curious, is it possible to unpack the underlying loss ratio in commercial lines a little bit? Maybe give us what the impact of the fire losses were year over year so we can get kind of a baseline what the actual underlying kind of loss ratio deterioration was in the quarter?

我只是好奇，是否可以把商業險的基礎損失率（underlying loss ratio）再拆解說明一下？也許可以告訴我們火災損失對同比的影響是多少，讓我們能有一個基準，了解本季實際的基礎損失率惡化幅度大概是多少？

Yeah. Beth, you want to break that down?

是的。Beth，你要不要把這部分拆開說明？

Yeah. I'm not going to go into all the puts and takes that are within that line. As we said, non-CAT property was a significant contributor to the performance kind of year-to-year. But maybe the way to help you frame it, Brian, is that if I look at MLC and their year-to-date underlying combined ratio of 93.3%. And I think about what we expect for the second half of the year and assuming non-CAT property kind of evens out a bit.

好的。我不會把這條線裡所有的增減因素（puts and takes）都逐一展開。如我們所說，非巨災（non-CAT）財產險是同比表現的重要貢獻因素。但也許能幫你建立框架的方式是，Brian，如果我看MLC年初至今的基礎綜合率（underlying combined ratio）為93.3%。再考量我們對下半年（second half of the year）的預期，並假設非巨災財產險的表現大致回歸均衡一些。

We expect the full year to probably come in roughly a point better than that. So it gives you some sense of just some of the elevation that we see kind of in the first half that we wouldn't expect to see in the second half.

我們預期全年大概會比這個數字好約1個點。因此，這能讓你大致理解：我們在上半年看到的一些抬升（elevation），下半年我們不預期會再看到同樣程度。

Makes sense. And then my second question, and maybe I was just -- the way I heard it was a little confusing. So Beth, I think you made a comment about the underlying loss ratio up because of more commercial auto and national accounts in the mix. Have you been leaning more into the commercial auto area? Or is that simply just higher losses coming in?

了解。那我的第二個問題，也許是我剛剛聽的方式有點混淆。Beth，我想你提到基礎損失率上升，是因為組合中商業車險（commercial auto）與全國性帳戶（national accounts）的占比提高。你們是否更偏向加碼商業車險領域？還是只是單純因為損失變高？

And if so, maybe it's a different area of commercial auto. I was a little confused by that.

如果是的話，也許是商業車險裡不同的細分領域。我對這點有點困惑。

Brian, I'm going to let Mo answer that.

Brian，我讓Mo來回答。

Yeah, Brian. We -- the commercial auto premium has been up. I wouldn't say it's a change in strategy. It's just been, I think, a way we think we add things up as just we bind business. But the commercial auto premium was up in the first half of the year.

好的，Brian。我們——商業車險保費確實上升了。但我不會說這是策略改變。我認為這只是我們在承保（bind）業務時，整體加總起來呈現的結果。不過商業車險保費在上半年確實是增加的。

The other piece that's in there is national accounts. And we've mixed a little bit more in middle and large towards our national accounts. And what I would just want to be clear on the national accounts is our national accounts business is a little bit different than some of our peers, and I just want to make sure that everybody understands that, which is -- it's really adjacent to our middle market business, i.e., it's loss picks, i.e., less than $5 million.

另外一個因素是全國性帳戶（national accounts）。我們在中型與大型業務中，稍微提高了配置到全國性帳戶的比重。而我想就全國性帳戶這點說清楚：我們的全國性帳戶業務與一些同業略有不同，我希望大家都能理解，也就是——它其實是我們中型市場（middle market）業務的相鄰延伸；也就是損失選擇（loss picks），也就是低於500萬美元。

We have an occasional account that gets up to $10 million, but it really is our way to follow middle-market customers into a loss sensitive structure, but it does run at a higher combined ratio based on the excess casualty lines, and we just end up booking a little bit higher.

我們偶爾會有帳戶到1,000萬美元，但它本質上是我們用來跟隨中型市場客戶，進入損失敏感（loss sensitive）結構的一種方式；但由於超額責任險（excess casualty）線的關係，它的綜合率會較高，而我們最終入帳（booking）的金額也會稍微高一些。

Yeah. And I'll just make a fine point on that. So again, it really is about the mixing into those -- that business rather than a change in view of the loss trend for those particular lines.

是的。我再補充強調一下。所以再說一次，這主要是業務組合（mix）往那類業務傾斜，而不是我們對那些特定線別的損失趨勢看法有所改變。

Mike Zaremski, BMO Capital Markets.

Mike Zaremski，BMO資本市場（BMO Capital Markets）。

Okay. Great. It's probably an easy yes or no based on what was just said. But it sounds like there was kind of no meaningful change to expected forward loss trend, especially in casualty lines based on kind of all the great color you gave in the Q on this call so far. Is that correct? That's impacting the underlying maybe forward basis that we should be considering?

好的。很好。根據剛剛所說的，這大概是個簡單的是或否問題。但聽起來，對於預期的未來損失趨勢（forward loss trend）並沒有任何實質性的改變，尤其是在責任險（casualty）線別；基於你們在本次電話會議Q&A中提供的各種很好的補充說明。這樣理解正確嗎？這會影響我們在基礎層面、往前看的考量嗎？

Yeah, very, very minor impact. Obviously, whenever we have prior year development, we always look at the more current year to see if that changes our view on loss trend. And we didn't call it out because it did not have a significant impact year over year. It's tenths of basis points.

是的，影響非常、非常小。顯然，每當我們出現前期年度發展（prior year development）時，我們都會檢視較新的年度，看看是否會改變我們對損失趨勢的看法。而我們之所以沒有特別點出，是因為它對同比並沒有顯著影響。只是以基點（basis points）十分之一的幅度。

Perfect. And I guess my follow-up is just kind of stepping back and thinking about the competitive environment in commercial lines, specifically, I think there's a lot of focus on pricing, and we've seen a lot of competitors show their pricing KPIs, decelerate. We're teasing out that it's more so or maybe only coming from the large account space.

完美。那我接著想退一步問一下，關於商業險的競爭環境，特別是我認為市場很關注定價，我們也看到很多競爭對手的定價KPI增速在放緩（decelerate）。我們試著拆解後覺得，這可能更多、甚至可能只來自大型帳戶（large account）領域。

But -- can you maybe just talk about whether you all have been surprised by the stability in kind of the especially on the smaller end in terms of pricing? Or would you expect given healthy returns and interest rates there to be a bit of a decel or downwards trend in the coming year?

但是——你們能否談談，對於較小端（smaller end）定價的穩定性，你們是否感到意外？或者你們是否預期，考量到健康的報酬與利率水準，未來一年會出現一些放緩或下行趨勢？

Mike, it's Chris. I'm going to give you some data, at least on the quarter that might help. But I would say, generally, through the first 6 months of the year, there are really no surprises. Obviously, other than the normal volatility that Beth just talked about in some of our non-CAT property exposure. But I would say the market, at least the segments we participate in active are in are holding up fairly well.

Mike，我是Chris。我先給你一些數據，至少就本季而言，可能會有幫助。但我會說，整體來看，今年前6個月其實沒有什麼意外。當然，除了Beth剛剛提到的，我們部分非巨災（non-CAT）財產險曝險所帶來的正常波動之外。但我會說，市場——至少我們積極參與的那些細分市場——表現仍相當穩健。

I mean, you could see what we've been able to do with commercial auto and general liability pricing, which we think we're strong there and keeping up with loss trend, particularly with umbrella and excess achieving some of the highest rates of increase across the portfolio.

我的意思是，你可以看到我們在商業車險與一般責任險（general liability）定價上所做到的成果；我們認為我們在那裡很強，並且能跟上損失趨勢，特別是伞式（umbrella）與超額（excess）業務，在整體投資組合中達成了最高的一些加價幅度。

I would say property pricing continues to moderate. But again, still a highly profitable line for us, an attractive -- and still an attractive area for growth. I think the metric I would give you there is that the aggregate pricing for small business package and middle market general industry, property book was fairly steady in the mid-single digits on an aggregate basis.

我會說財產險定價仍在持續趨於溫和（moderate）。但再說一次，對我們而言它仍是一條高度獲利的線別，是一個具吸引力——也仍然是具吸引力的成長領域。我可以給你的指標是：小型企業綜合保單（small business package）與中型市場一般產業（middle market general industry）的財產險業務，在整體口徑下的總體定價大致維持在中個位數（mid-single digits）的穩定水準。

I gave my commentary on pricing in aggregate in Business Insurance at 5.8, down 30 basis points from the first quarter. But again, still an excellent result and our underwriters are really executing well in the marketplace. I would say, again, specifically on general liability, we're at 9.9%, up 30 basis points from the last quarter. Excess and umbrella lines were still in the low double digit and improved 70 basis points from last quarter. If I look at small renewal written pricing of 7% was flat compared to the first quarter.

我先前對《Business Insurance》所提到的整體定價評論是5.8%，較第一季下降30個基點。但再說一次，這仍是非常出色的結果，我們的核保人員在市場上的執行也非常到位。我會說，再具體一點，在一般責任險方面，我們是9.9%，較上季上升30個基點。超額與伞式線別仍在低雙位數，且較上季改善70個基點。如果我看小型業務續保（small renewal）已簽保費定價（written pricing）為7%，與第一季持平。

Middle market ex comp was down 130 basis points to 4.4% with declines across most lines, but still healthy in auto and GLs. And Global Specialty pricing improved 60 basis points to 5.5. So you put it all together, I'm still feeling good about our ability to execute, the ability to generate attractive risk-adjusted returns on individual accounts and where we can, we'll step away.

中型市場（不含 ex comp）下滑130個基點至4.4%，多數險種都有所下滑，但汽車險與一般責任險（GL）仍維持健康。而全球專業險（Global Specialty）定價改善60個基點至5.5%。綜合來看，我仍對我們的執行能力感到樂觀，也對在單一帳戶上創造具吸引力的風險調整後報酬的能力有信心；在可行之處，我們也會選擇退出。

Gregory Peters, Raymond James.

Gregory Peters，Raymond James。

I was going to pivot to the Personal Lines, but I just can't help myself on the pricing commentary and the answers you provided so far. And maybe you can help frame it for me in a different way because I -- the areas that have come under scrutiny are the really large property schedules. And I just don't think you have a lot of exposure in that area of the market. So when I see the growth in your middle and large business, it's really not skewing to this area that's gotten -- that's under a microscope for all the substantial rate decreases. But maybe you can help frame that for me.

我本來要轉到個人險（Personal Lines），但就你們到目前為止對定價的評論與回答，我實在忍不住想再追問。也許你可以用不同方式幫我框架一下，因為我——目前受到檢視的領域是那些非常大型的財產險排程（property schedules）。而我不認為你們在那個市場區塊有很大的曝險。所以當我看到你們在中型與大型商業業務的成長時，實際上並沒有偏向這個因大幅降費率而被放在顯微鏡下的區域。但也許你可以幫我重新說明一下。

I think you framed it well. I mean, our large property book is relatively small. It's about $200 million, would you say, Mo, on a full year basis. Our E&S book, again, is relatively small, maybe [300], particularly in small commercial. So yeah, the markets that -- the activity in the markets where the most pressure is, is generally our smallest exposure.

我覺得你框架得很好。我的意思是，我們的大型財產險簿（large property book）相對較小。以全年口徑來看，大約是2億美元，你覺得呢，Mo？我們的 E&S 簿同樣相對較小，可能是[3億]左右，特別是在小型商業方面。所以是的——壓力最大的那些市場活動，通常正是我們曝險最小的部分。

And our Spectrum product which is a small business product and our general industry properties, our two biggest lines. And as I said, Greg, we're holding in sort of that mid-single-digit range as far as price increases, which again, we think is keeping up with trend.

而我們的 Spectrum 產品（小型企業產品）以及一般產業財產險，是我們最大的兩條業務線。如我所說，Greg，就價格調升而言，我們大致維持在中個位數區間；我們認為這仍能跟上趨勢。

We're probably not going to grow at the rate that we thought when we started the year. But I still think we can grow our overall property book in the mid-single digits through the end of the year. But Mo, would you add anything?

我們的成長速度可能不會像年初預期的那麼快。但我仍認為，到今年年底，我們整體財產險簿仍可維持中個位數成長。不過，Mo，你要補充什麼嗎？

Let me just add a couple of points, just as evidence to Chris' point on the large property. We had a fairly substantial shared and layered book within our large property segment in Middle & Large. That's now less than $25 million. So we really have shrunk that just because that is the part of the market, as you referenced, that is falling quicker, and it just doesn't meet our benchmarks anymore. The second thing I would point to is, we are watching the middle and large states really closely.

我再補充幾點，作為支持 Chris 關於大型財產險觀點的證據。我們在中大型（Middle & Large）的大型財產險區隔中，過去有相當可觀的共保與分層（shared and layered）業務簿。現在已降到不到2,500萬美元。所以我們確實縮減了那一塊，因為如你所提到，那是市場下滑更快的部分，已不再符合我們的基準。第二點是，我們正非常密切地觀察中大型市場的各州狀況。

So yeah, the large end is where we see mostly the most competition. But we did feel increasing pressure in the second quarter and potentially a divergent view from some of our competitors, especially on GL and workers' compensation. So we've always talked about our middle market book being subject to market conditions. We're watching closely in that space because we did feel the competition pick up in that space, and that will impact our growth in the second half of the year if that competitive pressure maintains.

所以是的，大型端是我們看到競爭最激烈的地方。但我們在第二季確實感受到壓力增加，而且可能與部分競爭對手的看法出現分歧，特別是在一般責任險（GL）與勞工補償險（workers' compensation）。我們一直都提到，我們的中型市場業務簿會受到市場狀況影響。我們正密切關注該領域，因為我們確實感受到那裡的競爭升溫；若這種競爭壓力持續，將影響我們下半年的成長。

Thank you for indulging me on that topic, and I appreciate the detail. Let's pivot to the personal lines business. Obviously, that's a pretty intense marketplace. It looks like your agency business is doing fine. The direct business might be a little challenged.

謝謝你在這個議題上容我多問，也感謝你提供的細節。我們轉到個人險業務。顯然，那是一個競爭相當激烈的市場。看起來你們的代理（agency）業務表現不錯。直銷（direct）業務可能會稍微有些挑戰。

And Chris, I think you mentioned the contemporary product offering that's rolling out. As we look forward, maybe you can help reconcile how we should be thinking about growth in the context of just the intensity of competition in the market.

而 Chris，我想你提到正在推出的當代產品組合（contemporary product offering）。展望未來，也許你可以幫我們釐清：在市場競爭如此激烈的情況下，我們應該如何看待成長？

Yeah. I let Melinda add her commentary. But I would say generally, we're trying to complete the rollout of agency as quickly as we can. We expect to be in 30 states by the beginning, early '27. So we feel good about that.

是的。我先讓 Melinda 補充她的看法。但我一般會說，我們正努力盡快完成代理通路的全面上線（rollout）。我們預期在27年初、27年初期就能覆蓋30個州。所以我們對此很有信心。

And that's, again, the same product we're using in the direct channel. I would say the direct channel, I think, is going to continue to come under pressure. I think shopping is going to remain elevated. Obviously, competition is going to remain strong. But again, we're going to continue to try to improve retention, improve obviously, the customer experience and see if there is some value added that we could create for the mature market. So I would say we expect a little bit of headwinds, particularly in direct as we head into '27.

而且再次強調，這與我們在直銷通路使用的是同一套產品。我會說，直銷通路我認為將持續承受壓力。我認為比價/轉保（shopping）將維持在高位。顯然，競爭也會持續強勁。但同樣地，我們會持續努力提升續保率、改善客戶體驗，並看看是否能為熟齡市場（mature market）創造一些附加價值。所以我會說，隨著我們邁向27年，特別是在直銷端，我們預期會有一些逆風。

But Melinda, I don't know, what would you add?

不過 Melinda，我不知道，你會補充什麼？

I think you summed it up very well, Chris. We certainly want to find and win and keep more customers. So all three components of that important in our growth strategy, and we want to do that while we maintain our target profitability, and it will be bifurcated, I would say, near-term in the channel dynamics. We're very encouraged by everything we are seeing on the agency side, very strong execution by our teams and excellent progress toward our long-term growth objectives.

我覺得你總結得很好，Chris。我們當然希望找到、贏得並留住更多客戶。因此這三個面向在我們的成長策略中都很重要；而我們也希望在維持目標獲利能力的同時做到這點。我會說，短期內在通路動態上會呈現分化（bifurcated）。我們對代理端目前看到的一切都非常受到鼓舞：團隊執行力很強，且朝向我們長期成長目標的進展非常出色。

And Greg, it goes without saying, obviously, auto has a story, but home has a unique story, too, where home, I think, is performing well. We've been able to continue to get rate in that book to kind of keep up with trend. And for the agency channel, having a competitive home product is going to be very, very important. We feel good about how we're positioned.

而 Greg，不用說，汽車險有它的故事，但住宅險也有其獨特的故事；我認為住宅險表現良好。我們能持續在該業務簿中取得費率調升，以大致跟上趨勢。而對代理通路而言，擁有具競爭力的住宅險產品將非常、非常重要。我們對自身的定位感到樂觀。

Alex Scott, Barclays.

Alex Scott，Barclays。

Wanted to see if you could dig a bit more into the capital management strategy just in light of The Hartford Funds transaction and some flexibility but obviously coming in over time. And just how you'll approach sort of replacing the dilution initially from that transaction?

想請你們再深入談談資本管理策略，特別是考量到 Hartford Funds 交易，以及隨時間推進所帶來的一些彈性，但顯然是逐步到位的。以及你們將如何著手彌補該交易在初期造成的稀釋？

I'll let Beth talk to the specifics of the capital management plan that we just announced. But I'd just like to make a comment, but -- so that everyone sort of understands my views that monetizing this long-term held investment, noncore investment, I thought was a priority over the last couple of years. Just given the sort of the changing dynamics in the asset management, wealth business.

我會讓 Beth 談談我們剛宣布的資本管理計畫細節。但我想先補充一點，讓大家理解我的看法：將這項長期持有的投資、非核心投資變現，在過去幾年我一直認為是優先事項。主要是因為資產管理與財富管理業務的動態正在改變。

Obviously, we've enjoyed a 40-year relationship with Wellington. And I think combining Wellington capabilities with our distribution platform, I think it's just going to be an added benefit to continue to reach more clients through various channels with differentiated investment capabilities, particularly in the wealth management market here in the US. So I thought it was an excellent transaction, unique -- structured uniquely, which really allows us to participate in the upside as the two combined organizations come together and I think create additional value in the marketplace.

顯然，我們與 Wellington 有長達40年的合作關係。我認為，把 Wellington 的能力與我們的通路平台結合，將帶來額外效益，使我們能透過各種通路，以差異化的投資能力觸及更多客戶，特別是在美國的財富管理市場。所以我認為這是一筆非常出色的交易——結構也很獨特，讓我們能在兩個合併後的組織整合之際參與上行空間，並且我認為能在市場上創造額外價值。

But Beth, what would you say on the capital management?

不過 Beth，關於資本管理你會怎麼說？

Yeah. So we obviously took the expected proceeds over the next couple of years from the funds transaction into consideration in sizing our new share repurchase authorization. So again, I remind you that our previous one was at $3.3 billion. So this is a $900 million increase or 27% increase over the prior authorization. And the way I think about that is about 15% comes from the cash that we're getting from Hartford Funds above sort of what we would normally have received from Hartford Funds.

好的。所以我們在規劃新的庫藏股回購授權規模時，已將未來幾年基金交易預期可取得的款項納入考量。再次提醒各位，我們先前的授權額度是33億美元。因此這次增加了9億美元，或較先前授權增加27%。而我對此的理解是，其中約15%來自我們從 Hartford Funds 取得的現金，超過我們通常從 Hartford Funds 會收到的水準。

I think you have to keep in mind that with the $3.3 billion authorization, there were dividends that we were already getting from Hartford Funds. When we think about the incremental, put that towards the authorization, and then the remaining 12% coming from the growth in our business. So I think it's a nice balance. And obviously, as the combined entity performs over the next several years, we'll continue to see those cash flows and view it as excess capital to be deployed.

我認為你必須記住，在這 33 億美元的授權之下，我們原本就已經從 Hartford Funds 收到股利。當我們思考增量部分時，會把它用在該授權之下，然後其餘的 12% 來自我們業務的成長。所以我認為這是一個不錯的平衡。而且很明顯地，隨著合併後的實體在未來幾年表現，我們將持續看到那些現金流，並把它視為可部署的超額資本。

Follow-up question, I just wanted to circle back on prior year development. If I go back and think about 2023 and 2024, there is sort of a consistency, if you will, to some of the unfavorable in the lines that you took unfavorable on this quarter. And is there anything different about this time? I mean, I think there's some of the underlying drivers like attorney representation. So I mean, is there anything about the review you did this quarter that we should think about being different from the way it was being reviewed in '23 and '24?

追問一下，我只是想回到前一年度發展（prior year development）。如果我回頭看 2023 和 2024 年，某種程度上，你們在本季認列不利的那些險種，和過去的走勢似乎有一種一致性。那這次有什麼不同嗎？我的意思是，我想有一些基本驅動因素，例如律師介入（attorney representation）。所以，我是想問：你們本季做的檢視，有沒有什麼地方是和 2023、2024 年的檢視方式不同、我們需要特別留意的？

No, I wouldn't call out anything being different. I mean, we look at our reserves every quarter. And as we saw, as I said earlier, some of this elevated activity in GL, primarily in our excess and umbrella lines, we felt it was appropriate to make some modest adjustments. And on commercial auto, same thing, we saw some trends there that we felt we should reflect. But nothing that changes overall, how we look at the reserves, the review that we do, the very tight alignment that we have between our claims team, our actuarial teams.

沒有，我不會特別指出有任何不同。我的意思是，我們每一季都會檢視準備金。而且如同我先前提到的，當我們看到一般責任險（GL）有一些偏高的活動，主要是在我們的超額與雨傘（excess and umbrella）險種，我們認為做一些小幅調整是適當的。商業車險也是一樣，我們看到一些趨勢，覺得應該反映出來。但整體而言，並沒有改變我們看待準備金的方式、我們進行的檢視流程，以及理賠團隊與精算團隊之間非常緊密的一致性。

And then most importantly, our underwriters to understand what's being seen. And as Chris said, we feel very good about the pricing that we're getting in those lines, feel very good about all the underwriting actions that we've taken over the past many years in that. So feel good about where we are as we ended the quarter.

然後最重要的是，我們的核保人員也會一起參與，以了解實際看到的情況。而且如 Chris 所說，我們對於在那些險種取得的定價非常有信心，也對於過去多年採取的所有核保行動非常有信心。所以，我們對本季結束時的狀況感到很有把握。

Katie Sakys, Autonomous Research.

Katie Sakys，Autonomous Research。

First, I wanted to circle back to your comments, Beth, on the expense ratio. I think you mentioned in your prepared remarks, you expect to still be able to hit exit year 2027 guidance. Last quarter, I think you guys had talked about seeing some opportunity for incremental improvement in the expense ratios across the 3 business segments here in 2026. Do you still have a line of sight on that?

首先，我想回到你剛才的評論，Beth，關於費用率（expense ratio）。我想你在事先準備的講稿中提到，你們仍預期能達成 2027 年年底（exit year）的目標。上季我記得你們談到，看到在 2026 年三個業務分部的費用率還有一些額外改善的機會。你們現在仍然看得到那條路徑嗎？

Katie, thank you for the question. I would just rephrase your commentary a little bit. We're not providing guidance. These are goals that we've set for the organization. We're not in the guidance game.

Katie，謝謝你的問題。我想稍微重新表述一下你的說法。我們並沒有提供指引（guidance）。這些是我們為組織設定的目標。我們不做指引。

And as we sit here today, and as I said in my prepared remarks, I think we'll see improvement in '26. And I continue to be optimistic in business insurance and employee benefits of hitting the goals that we set for ourselves. I would say there is increasing pressure in Personal Insurance to hit the goals there. We're not giving up.

以我們今天所處的位置來看，正如我在事先準備的講稿中所說，我認為我們會在 2026 年看到改善。而且我仍對商業保險（business insurance）與員工福利（employee benefits）能達成我們為自己設定的目標感到樂觀。我會說，在個人保險（Personal Insurance）方面，要達成那裡的目標壓力正在增加。我們不會放棄。

But that is, I would say, a substantially higher bar to achieve right now just given growth dynamics, the competitive marketplace, but I know Melinda and team are not giving up, and we'll see what we could do. But I would say that's my update for the quarter.

但我會說，就目前而言，考量成長動能與競爭市場，那是一個明顯更高的門檻。不過我知道 Melinda 和團隊不會放棄，我們會看看能做到什麼。

I appreciate the color there. And then I wanted to shift to Small Commercial. I mean, I think the growth there continues to impress. But given some of the commentary from some of your competitors about identifying better growth opportunities further down market. Curious to see how you guys are thinking about competition there and the trends from increased activity from either traditional carriers or maybe more technology-enabled entrants.

我很感謝你提供的補充說明。接著我想把話題轉到小型商業（Small Commercial）。我的意思是，我認為那裡的成長持續令人印象深刻。但鑑於你們一些競爭對手的評論，提到在更下沉的市場（further down market）辨識到更好的成長機會，我很好奇你們如何看待那裡的競爭，以及傳統保險公司或更科技驅動的新進者活動增加所帶來的趨勢。

Yeah. I'll let Mo add his color. But I would say, Katie, remember, I think we're in a competitive market across all our lines. But of all our lines, I'm most impressed, most proud of our capabilities that are differentiated in the marketplace in small commercial that I think will allow us to continue to capture additional market share. But Mo, I know you and I talk about things quite a bit, but what would you say?

是的。我會讓 Mo 補充他的看法。但我會說，Katie，請記得，我認為我們在所有產品線都處於競爭市場。但在我們所有產品線之中，我對我們在小型商業領域的能力最為印象深刻、也最引以為傲；這些差異化能力我認為能讓我們持續取得更多市占。不過 Mo，我知道你我常常討論這些，你會怎麼說？

Katie, just to build on Chris' comments with a little bit more granularity. Flow for our small business team in both the retail and the wholesale channels remains really strong. Chris referenced our growth in spectrum. He referenced our growth in E&S binding. The technology and the advantages we have with the retail brokers, and Chris mentioned the session we have with our VIP brokers in May.

Katie，我在 Chris 的評論基礎上再補充一些更細的內容。我們小型企業團隊在零售與批發通路的業務流量（flow）仍然非常強勁。Chris 提到我們在 spectrum 的成長。他也提到我們在 E&S 承保綁定（binding）的成長。我們在零售經紀人端的科技與優勢，以及 Chris 提到我們在 5 月與 VIP 經紀人舉辦的會議。

We continue to get incredible feedback about the differentiated experience that these agents enjoy when they use our technology and how much efficiency it creates for them. So yeah, there's lots of competition, but I really feel confident about our ability to maintain margins and grow at a similar pace going forward here just based on all the capabilities and the feedback we're getting today.

我們持續收到非常驚人的回饋，談到這些代理人在使用我們的科技時所享有的差異化體驗，以及它為他們帶來多大的效率提升。所以，是的，競爭很多，但就我們目前擁有的能力與今天收到的回饋而言，我對我們未來維持利潤率並以類似速度成長的能力非常有信心。

David Motemaden, Evercore ISI.

David Motemaden，Evercore ISI。

Just following up on the adverse development in general liability this quarter. I was wondering if you could just talk a little bit more about the accident year mix. I know you said multiple accident years. But just wondering, specifically, if you just talk about which accident years primarily were impacted. And if you had added any to accident year '25?

我想追問一下本季一般責任險（general liability）的不利發展。我想請你們再多談一點事故年度（accident year）的組合。我知道你們說是多個事故年度。但我想更具體地了解，主要受到影響的是哪些事故年度。以及你們是否有對 2025 事故年度（'25）增加任何準備金？

Yeah. So it is multiple years. So if you go back, it's -- we saw some activity in 2017, '18, '19, a little bit and also in '22, '23. We did not add anything to '25. So it really was spread across, and again, focused on excess and umbrella lines, as I said in my previous remarks.

好的。確實是多個年度。所以如果你往回看，我們在 2017、2018、2019 年看到一些活動，另外在 2022、2023 年也有一些。我們沒有對 2025 年增加任何準備金。所以它確實是分散在多個年度，而且如我先前所說，主要集中在超額與雨傘險種。

Got it. And Beth, last year, I think you had spoken about having about 1 point better than expected non-CAT property experience within the loss ratio in BI. And it sounds like it was elevated this quarter. So I just wanted to be clear, was it elevated but also worse than expected this quarter? And how should we think about just that 1 point of favorable non-CAT property experience within the loss ratio?

了解。Beth，去年我記得你提到，在 BI 的損失率中，非巨災（non-CAT）財產險的經驗大約比預期好 1 個點。而聽起來本季那部分是偏高的。所以我想確認一下：本季是偏高，但也比預期更差嗎？以及我們應該如何看待損失率中那 1 個點的非巨災財產險有利經驗？

Like, is that going to normalize? Is that potentially more durable just because of changes in terms and conditions, just wondering how you're thinking about that going forward?

例如，那會回歸正常嗎？或者因為條款與條件的變更，那可能更具持續性？我想了解你們對未來的看法。

Yeah. I would say, David, it really does move a bit quarter-to-quarter. I would say overall for this quarter to expectations, non-CAT property came in a little bit under what we would have anticipated. Again, favorable and small unfavorable in middle to net unfavorable affecting the overall business insurance ratio. So it's hard to predict what the points of improvement could be quarter-to-quarter because there is just inherent some volatility, as I indicated, pointed to a couple of large fire losses in middle and large this quarter that contributed to that.

是的。我會說，David，這確實會在每季之間有些波動。就本季相對於預期而言，非巨災財產險的結果比我們原先預期的略低一些。同樣地，有利與小幅不利在中型市場（middle）到淨不利（net unfavorable）之間變動，影響了整體商業保險的比率。所以很難逐季預測改善的點數，因為如我所說，內含一定的波動性；本季中型與大型業務有幾起較大的火災損失，對此有所貢獻。

Nothing that we see in our underwriting that would say that these weren't good risk for us to place. And that's why we say there's some just normal volatility. And it's also why I provided on the response to an earlier question, some of our views on how we think MLC could end the year based on things kind of returning to more normal.

我們在核保中所看到的情況，沒有任何跡象顯示這些對我們而言不是適合承保的良好風險。這也是為什麼我們說存在一些正常的波動。也因此我在回覆先前一個問題時，提供了我們對於MLC在今年年底可能如何收尾的一些看法，前提是各項情況大致回歸較為正常的水準。

Elyse Greenspan, Wells Fargo.

Elyse Greenspan，富國銀行。

My first question, we heard one of your peers in the quarter talking about an LAE improvement, right, just driven off of some AI and some claims-driven efficiencies, it did benefit their commercial lines underlying loss ratio. I just wanted to get a sense like how you guys are thinking about AI efficiencies and the potential to benefit you guys on the LAE side?

我的第一個問題是，我們聽到你們的一位同業在本季談到LAE有所改善，對吧，主要是由一些AI以及理賠端效率提升所帶動，確實有助於他們商業險的核心損失率。我想了解一下，你們如何看待AI帶來的效率，以及其在LAE端可能為你們帶來的效益？

Yeah. I would say, Elyse, just to remind you, again, the big areas that we're sort of focused with our AI initiatives, building on, I'll call it, our strong excellent platform is underwriting operations, which we define as customer-facing activities, call centers, billing, audit premiums and claims. Claims has some, I would say, most, some exciting activities they're exploring, whether it be a sort of custom built AI or some vendor-related activities. So that is an area of focus for us to get more efficient and ultimately, just better outcomes in total. But Mo, what would you add?

是的。Elyse，我想提醒你一下，我們AI計畫主要聚焦的幾個大方向，是在我們既有強大且優異的平台基礎上，著重於核保營運（我們將其定義為面向客戶的活動）、客服中心、帳單、保費稽核以及理賠。理賠方面，我會說他們正在探索一些非常令人振奮的作法，不論是自建的AI，或是與供應商相關的方案。因此，這是我們提升效率、並最終在整體上帶來更好結果的重點領域。不過，Mo，你會補充什麼？

Yeah. Elyse, I would just add that we've got some really exciting use cases. We haven't disclosed any KPIs on either the claims or the underwriting side, and we won't today. But just trust that we are making significant investments in all three areas that Chris referenced, and we think that will improve LAE and expense ratios generally.

是的。Elyse，我只想補充，我們有一些非常令人振奮的應用情境。我們尚未披露理賠端或核保端的任何KPI，今天也不會披露。但請相信，我們正在Chris提到的三個領域進行重大投資，我們認為這將改善LAE以及整體費用率。

And then my follow-up question, just going back to the capital discussion. You guys obviously upped the buyback today, and we did see like the funds transaction, that does give you more capital. But it sounds like given the increase in the buyback program, right, there's probably less of a focus on M&A right now. But Chris, would just be great to get your current views there.

那我的追問是，回到資本的討論。你們今天顯然提高了回購規模，而且我們也看到那筆基金交易，確實為你們帶來更多資本。但聽起來，鑑於回購計畫的增加，現在對併購（M&A）的關注可能比較少。不過Chris，如果能請你分享目前的看法就太好了。

Yeah. Yeah, I would say, obviously, you saw what we're planning to do for the next two years, as we've always commented, we're aware of marketplace activities. But we're equally committed to an organic plan. We think that's ultimately a safer way to grow and protect margins and manage, but we're aware, and there's nothing, obviously, to announce today.

是的。我會說，很明顯你們也看到我們接下來兩年的規劃；正如我們一向所說，我們了解市場上的相關動態。但我們同樣致力於有機成長的計畫。我們認為，這最終是更安全的成長方式，有助於保護利潤率並進行管理；但我們也會關注市場情況，而今天當然沒有任何事項要宣布。

But again, we'd like to grow organically and invest in new products, new capabilities, expanding our underwriting appetite. And that's what I would say our primary focus is.

不過，我們希望以有機方式成長，並投資於新產品、新能力，擴大我們的核保承保範圍（underwriting appetite）。我會說，這是我們的主要重點。

Rob Cox, Goldman Sachs.

Rob Cox，高盛。

I just wanted to ask about retention in the middle and large commercial book. I noticed it slipped a little bit. So just curious if there is any pruning related to the GL and auto reserve additions that contributed to retention slipping or if that is just more market-driven?

我想問一下中型與大型商業業務組合的續保率。我注意到它小幅下滑。所以想了解，是否有任何與一般責任險（GL）和汽車險準備金增加相關的修剪（pruning）導致續保率下滑，還是純粹由市場因素驅動？

Rob, it's Mo. No, it's entirely market-driven. There was nothing specific that we were doing on GL or auto in the quarter. It's just a team making good decisions. It does reference back to a comment I made to a couple of questions ago, where we're just feeling increasing competition in the middle and large space.

Rob，我是Mo。不，完全是市場驅動。本季我們在GL或汽車險方面沒有做任何特定動作。這只是團隊在做出良好的決策。這也呼應我在前幾個問題中提到的評論：我們在中型與大型市場感受到競爭正在加劇。

And as we've talked about for a number of quarters, we're going to continue to make choices and not grow if we see the competitive dynamic going too far. And those 3 points of retention would be evidence of that.

而且正如我們已經談了好幾季的，我們會持續做出取捨；如果看到競爭態勢走得太遠，我們寧可不成長。續保率下降的那3個百分點，就是這點的證據。

Okay. Great. That makes sense. And just following up on Global Specialty, pricing acceleration there in the quarter. Obviously, there's been widespread discussion on property, which -- it seems like there's not as much exposure to as peers.

好的。了解。這很合理。另外追問一下全球專業險（Global Specialty），本季那邊的定價加速上升。顯然市場上對財產險有廣泛討論，而你們看起來相較同業並沒有那麼多曝險。

But just curious what's driving that. It seemed like maybe in the 10-Q, it was implied that it was US wholesale potentially driving that acceleration?

但我想了解是什麼在驅動這件事。看起來在10-Q裡似乎暗示，可能是美國批發（US wholesale）推動了這個加速？

Rob, it's Mo again. I would say a couple of things. We have less negative rates internationally. We've got a fairly large book of financial lines in our Lloyd's syndicate, which was less negative, which is helping us out there. Similarly, our financial lines book improved the rate it was positive -- moderately positive.

Rob，我還是Mo。我會說有幾點。我們在國際市場的費率下滑幅度較小。我們在勞合社（Lloyd's）辛迪加有相當大一部分的金融線（financial lines）業務組合，那邊的負向幅度較小，這對我們有幫助。同樣地，我們的金融線業務組合費率也有所改善，呈現正向——溫和的正向。

It's moving slightly more positive. So that's helping the mix in that rate calculation. And then wholesale overall, our rate on the entire wholesale book ticked up nicely. And it's an important one just as we watch the complexity of that book and making sure we're getting adequate rates on our wholesale book and the entire Global Specialty portfolio.

它正變得略為更正向。因此在該費率計算中，組合結構（mix）對我們有幫助。另外，批發業務整體而言，我們整體批發業務組合的費率也明顯上升。這點很重要，因為我們在觀察該業務組合的複雜性，並確保我們在批發業務組合以及整體全球專業險投資組合上取得足夠的費率。

We have reached the end of the question-and-answer session. I will now turn the call back to Kate Jorens for closing remarks.

問答環節到此結束。現在我將把電話交回給Kate Jorens作結語。

Thanks for joining us today. As always, feel free to follow up with additional questions. Have a great day.

感謝各位今天加入我們。一如往常，如有其他問題，歡迎後續與我們聯繫。祝各位有美好的一天。

This concludes today's call. Thank you for attending. You may now disconnect.

今天的電話會議到此結束。感謝各位出席。您現在可以掛線。