Heritage Insurance Holdings Inc (HRTG) 2025 Q3 法說會逐字稿

Good morning, and welcome to the Heritage Insurance Holdings third-quarter 2025 earnings conference call. Please note, today's event is being recorded.

早安，歡迎參加 Heritage Insurance Holdings 2025 年第三季財報電話會議。請注意，今天的活動正在錄影。

I would now like to turn the conference over to Kirk Lusk, Chief Financial Officer for the company. Please go ahead.

現在我將把會議交給公司財務長柯克·盧斯克。請繼續。

Good morning, and thank you for joining us today. We invite you to visit the Investors section of our website, investors.heritagepci.com, where the earnings release and our earnings call will be archived. These materials are available for replay or review at your convenience.

早安，感謝各位今天收看我們的節目。我們邀請您造訪我們網站的投資者關係頁面 investors.heritagepci.com，收益報告和收益電話會議的資料將存檔於此。您可以隨時重播或回顧這些資料。

Today's call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon management's current expectations and subject to uncertainty and changes in circumstances. In our earnings press release and our SEC filings, we detail material risks that may cause our future results to differ from our expectations. Our statements are as of today, and we have no obligation to update any forward-looking statements we may make.

今天的電話會議可能包含 1995 年《私人證券訴訟改革法案》所界定的前瞻性陳述。這些聲明是基於管理層目前的預期，但會受到不確定性和情況變化的影響。在我們的獲利新聞稿和提交給美國證券交易委員會的文件中，我們詳細列出了可能導致我們未來業績與預期存在差異的重大風險。我們的聲明僅代表截至今日的觀點，我們沒有義務更新任何前瞻性聲明。

For a description of the forward-looking statements and the risks that could cause our results to differ materially from those described in the forward-looking statements, please refer to our annual report on Form 10-K, earnings release, and other SEC filings. Our comments today will also include non-GAAP financial measures. The reconciliations of and other information regarding these measures can be found in our press release.

有關前瞻性陳述的說明以及可能導致我們的業績與前瞻性陳述中所述業績存在重大差異的風險，請參閱我們的 10-K 表格年度報告、盈利報告和其他提交給美國證券交易委員會的文件。我們今天的評論還將包括非GAAP財務指標。有關這些措施的核對結果和其他信息，請參閱我們的新聞稿。

With me on the call today is Ernie Garateix, our Chief Executive Officer. I will now turn the call over to Ernie.

今天和我一起參加電話會議的是我們的執行長厄尼·加拉泰克斯。現在我將把電話交給厄尼。

Thank you, Kirk. Good morning, everyone, and thank you for joining us today. We delivered strong third-quarter results, having achieved net income of $50.4 million, up significantly from a year ago and maintaining the positive trajectory of our earnings.

謝謝你，柯克。各位早安，感謝大家今天收看我們的節目。我們第三季業績表現強勁，淨收入達到 5,040 萬美元，較去年同期大幅成長，並保持了盈利的積極成長勢頭。

As Kirk and I have been discussing on our earnings calls over the last year, we continue to see tangible results from the successful implementation of our strategic initiatives, which were designed to generate positive and consistent shareholder returns by attaining and maintaining rate adequacy, managing exposure, enhancing our underwriting discipline, and improving claims and customer service levels. This has created a significant amount of earnings power within Heritage, which continues to show through.

正如我和柯克在過去一年的財報電話會議上討論的那樣，我們持續看到戰略舉措成功實施帶來的切實成果。這些策略舉措旨在透過實現和維持費率充足性、管理風險敞口、加強承保紀律以及提高理賠和客戶服務水平，為股東創造積極且持續的回報。這為 Heritage 創造了巨大的獲利能力，這一點也持續體現。

As part of that strategy, we re-underwrote our personal lines book while taking needed rate increases to achieve adequate rates. This has led to a steady contraction in our policies in force over the last four years, while our in-force premium increased from approximately $1.1 billion to an all-time record in the third quarter of $1.44 billion. At the same time, we improved both the quality and the diversification of our book of business.

作為該策略的一部分，我們重新評估了個人保險業務，同時採取了必要的費率上漲措施，以達到足夠的費率。這導致我們過去四年中的有效保單數量持續下降，而我們的有效保費從約 11 億美元增加到第三季創歷史新高的 14.4 億美元。同時，我們提高了業務質量，並實現了業務多元化。

Looking out over the next six months, we expect our personal lines policy count to return to growth as we have now opened nearly all of our geographies to new business as compared to only 30% a year ago. We are already seeing our new business production ramp up with new business premium written for the third quarter of $36 million, representing an increase of 166% as compared to $13.7 million of new business written in the third quarter of last year.

展望未來六個月，我們預計個人保險保單數量將恢復成長，因為我們現在幾乎已向所有地區開放了新業務，而一年前這一比例僅為 30%。我們已經看到新業務產量正在增加，第三季新業務保費收入為 3,600 萬美元，與去年第三季新業務保費收入 1,370 萬美元相比，成長了 166%。

The decline in our policy count continues to moderate, having decreased by 6,800 policies in the third quarter as compared to a decrease of over 19,000 policies in the third quarter of 2024. In fact, our third-quarter PIV count reduction was the smallest decrease that we have experienced since we deployed these strategic initiatives in June of 2021.

我們的保單數量下降幅度持續放緩，第三季減少了 6,800 份保單，而 2024 年第三季則減少了超過 19,000 份保單。事實上，自 2021 年 6 月我們實施這些策略措施以來，第三季 PIV 數量的減少幅度是最小的。

While it takes time to open our territories, we are seeing good new business momentum continue across our regions. Based upon these factors, I believe that we are on a firm path to deliver full-year policy growth in 2026. Importantly, we have longstanding relationships with agents and brokers across our geographies that we have maintained over the last four years despite slowing new business growth and re-underwriting our book of personal lines business.

雖然開拓新市場需要時間，但我們看到各個地區的新業務發展勢頭依然良好。基於這些因素，我相信我們正穩步朝著2026年全年政策成長的目標邁進。重要的是，儘管過去四年新業務成長放緩，並且重新調整了個人保險業務的承保範圍，但我們仍然與我們在各個地區的代理商和經紀人保持著長期合作關係。

In the Northeast and portions of the Mid-Atlantic, we predominantly produce business through Narragansett Bay Insurance Company domiciled in and operated out of Rhode Island. Over the years, we have built a successful homeowners insurance business, which has expanded across the coastal regions of the Northeast and Mid-Atlantic. The company has strong relationships with independent agents based upon a trusted brand.

在東北部和大西洋中部部分地區，我們主要透過註冊地和營運地均位於羅德島的納拉甘西特灣保險公司開展業務。多年來，我們建立了一家成功的房屋保險企業，業務已擴展到東北部沿海地區和大西洋中部地區。公司憑藉著值得信賴的品牌，與獨立代理商建立了牢固的合作關係。

Likewise, Zephyr Insurance operates in and serves the Hawaiian market. Although Zephyr initially focused on -- exclusively on Hawaiian hurricane wind risk, we subsequently expanded Zephyr's product offering to meet the needs of our customers in the overall Hawaiian market. Our organization benefits from the agility and the rapid market responsiveness typical of a regional enterprise, while also leveraging the economies of scale found in larger super regional companies.

同樣，Zephyr Insurance也在夏威夷市場開展業務並為其提供服務。儘管 Zephyr 最初專注於夏威夷颶風風風險，但我們隨後擴展了 Zephyr 的產品範圍，以滿足整個夏威夷市場客戶的需求。我們的組織受益於區域企業特有的敏捷性和快速的市場反應能力，同時也利用了大型超級區域性公司所具有的規模經濟。

We have consolidated many functions to gain efficiency but retained the underwriting, marketing, and customer service functions in each region to better address the unique needs of each market. Every region has its own unique dynamics and operating the business locally allows us to quickly adapt to changing conditions as well as provide outstanding customer service to our policyholders and agent partners.

我們整合了許多職能以提高效率，但保留了各地區的核保、行銷和客戶服務職能，以便更好地滿足每個市場的獨特需求。每個地區都有其獨特的動態，在當地開展業務使我們能夠快速適應不斷變化的情況，並為我們的保單持有人和代理商合作夥伴提供卓越的客戶服務。

As we grow, our robust infrastructure allows us to write new personal lines business without adding significant administrative expense. We understand each of our markets and have built relationships with hundreds of master agencies, which represent thousands of agents throughout our geographic footprint. Our longstanding agency partners have expressed a willingness and desire to grow with us, which in turn provides confidence in our outlook for improved growth in the year ahead.

隨著公司的發展，我們強大的基礎設施使我們能夠在不增加大量管理費用的情況下開展新的個人保險業務。我們了解我們每一個市場，並與數百家總代理機構建立了合作關係，這些總代理機構代表著我們業務覆蓋區域內的數千名代理商。我們長期的代理合作夥伴已表達了與我們共同成長的意願和願望，這反過來也讓我們對未來一年的成長前景充滿信心。

We also remain focused on making decisions based on our data and analytics. This has been the cornerstone of our disciplined underwriting process across all of our geographies, which we will maintain as we grow and which contributed to the lower net loss ratio this quarter. As we grow, we will maintain our disciplined underwriting processes as well as rate adequacy and managing exposures.

我們始終專注於根據數據和分析結果做出決策。這已成為我們所有地區嚴格承保流程的基石，我們將在發展過程中繼續保持這一流程，這也促成了本季較低的淨損失率。隨著公司的發展，我們將繼續保持嚴謹的核保流程、合理的費率以及對風險敞口的有效管理。

An example of our disciplined approach can be seen in the commercial residential business, which we reduced in the third quarter due to more competitive market conditions. I believe this further demonstrates the discipline of our management team. Fortunately, we have ample room to grow our personal lines business and can choose to be selective across the 16 states where we do business.

我們嚴謹的經營方式可以從商業住宅業務中看出，由於市場競爭更加激烈，我們在第三季縮減了該業務規模。我認為這進一步體現了我們管理團隊的嚴謹作風。幸運的是，我們的個人保險業務還有很大的發展空間，我們可以在我們開展業務的 16 個州中進行選擇。

We are also exploring expansion opportunities into new regions of the country as well as the delivery of new products to our existing markets. We have a long runway ahead of profitable growth of our business and deliver value to our shareholders.

我們也正在探索向國內新地區擴張的機會，以及向現有市場推出新產品的機會。我們還有很長的路要走，未來業務將實現獲利成長，並為股東創造價值。

Reinsurance is a critical component of our business, and we have maintained a stable indemnity-based reinsurance program at manageable costs with an excellent panel of highly rated and collateralized reinsurers. Over the course of the third quarter, we continue to meet with our reinsurance partners who continue to support our growth and from whom we anticipate will offer incremental capacity as we look to our 6/1 renewal next year.

再保險是我們業務的關鍵組成部分，我們透過與一群高評價、有抵押的優秀再保險公司合作，維持了一個成本可控的、穩定的基於賠償的再保險計劃。在第三季度，我們繼續與再保險合作夥伴會面，他們繼續支持我們的成長，我們預計，隨著我們明年 6 月 1 日的續保，他們將提供額外的承保能力。

Additionally, we are seeing the benefits of tort reform as industry loss expectations for Hurricane Milton have been steadily coming down, largely due to reduced litigation, which our reinsurers should begin seeing in the coming months. Given the improved litigation environment in Florida, the lack of reinsured losses and the capacity entering the reinsurance market, we are optimistic that reinsurance pricing will continue to improve looking ahead in 2026. We also believe that the impact of this necessary legislation will be favorable to the consumer in terms of the cost of insurance.

此外，我們看到了侵權法改革帶來的好處，因為產業對颶風米爾頓的損失預期一直在穩步下降，這主要是由於訴訟減少，我們的再保險公司應該會在未來幾個月開始看到這一點。鑑於佛羅裡達州訴訟環境的改善、再保險損失的缺乏以及進入再保險市場的容量，我們樂觀地認為，到 2026 年，再保險定價將繼續改善。我們也認為，這項必要的立法對消費者在保險成本方面將產生有利影響。

To conclude, our business continues to gain momentum, and the earnings power of the company is building. We are also growing capital, which will support our managed growth strategy as we expect to begin to deliver policy count growth in the quarters ahead.

總之，我們的業務持續發展壯大，公司獲利能力也不斷增強。我們也在增加資本，這將支持我們的有序成長策略，因為我們預計在未來幾季將開始實現保單數量成長。

We are also now in a capital position to review our capital allocation strategy and believe our shares are trading below intrinsic value and do not reflect the many opportunities that we have to further grow the company. As a result, we restarted our share repurchase program in the third quarter, having repurchased 106,000 shares for a total cost of $2.3 million. I would also like to reiterate our dedication in navigating the complexities of our market with a strategic focus that prioritizes long-term profitability, shareholder value, and customer service driven by our dedicated workforce.

我們現在也具備了重新審視資本配置策略的資本實力，並且認為我們的股票交易價格低於其內在價值，並沒有反映出我們擁有的眾多進一步發展公司的機會。因此，我們在第三季重新啟動了股票回購計劃，回購了 106,000 股股票，總成本為 230 萬美元。我還要重申，我們將致力於應對市場的複雜性，並以長期盈利能力、股東價值和客戶服務為優先考慮的戰略重點，由我們敬業的員工隊伍驅動。

Kirk?

柯克？

Thank you, Ernie, and good morning, everyone. Starting with our financial highlights, we reported net income of $50.4 million or $1.63 per diluted share in the third quarter, which compares very favorable to the $8.2 million of net income or $0.27 per diluted share that we reported in the third quarter last year. The increase was primarily driven by a significant reduction in losses and loss adjustment expenses, combined with a decrease in other operating expenses.

謝謝你，厄尼，大家早安。首先來看我們的財務亮點，我們第三季淨利為 5,040 萬美元，即每股攤薄收益 1.63 美元，與去年同期淨利 820 萬美元或每股攤薄收益 0.27 美元相比，業績非常可觀。此次成長主要是由於損失和理賠費用大幅減少，以及其他營運費用下降所致。

For the nine months ended September 30, we reported net income of $129 million or $4.17 per diluted share, which is a substantial increase from the $41 million of net income or $1.35 per diluted share that we reported for the first nine months of 2024.

截至 9 月 30 日的九個月，我們報告淨收入為 1.29 億美元，即每股攤薄收益 4.17 美元，這比 2024 年前九個月報告的淨收入 4,100 萬美元或每股攤薄收益 1.35 美元大幅增長。

Gross premiums earned rose to $362 million, up 2.2% from $354.2 million in the prior-year quarter, reflecting the rate actions that we have taken, combined with organic growth in selected geographies as we open more regions for new business. This was partially offset by a decline in commercial residential business due to competitive market conditions.

毛保費收入增加至 3.62 億美元，比去年同期的 3.542 億美元增長 2.2%，這反映了我們採取的費率調整措施，以及隨著我們向更多地區開放新業務，特定地區的自然增長。由於市場競爭激烈，商業住宅業務下滑，部分抵銷了上述成長。

As Ernie touched on, we expect our growth to accelerate at a managed pace through 2026 as we ramp our new business efforts across our recently opened geographies. Net premiums earned were $195.1 million, down 1.9% from $198.8 million, resulting from increased ceded premiums. The increase in ceded premiums was driven primarily by a $4 million reinstatement premium for Hurricane Ian and an increase in the Northeast quota share program as written premiums from that program grew from the prior-year quarter.

正如 Ernie 所提到的，隨著我們在最近開設的地區加大新業務投入，我們預計到 2026 年，我們的成長將以可控的速度加速。淨保費收入為 1.951 億美元，較上年同期的 1.988 億美元下降 1.9%，原因是分出保費增加。分出保費的增加主要是由於颶風伊恩造成的 400 萬美元恢復保費，以及東北配額份額計劃的增加，因為該計劃的已承保保費比上年同期有所增長。

The result was an increase in ceded premium ratio to 46.1%, up 2.2 points from 43.9% in the previous-year third quarter. Our net investment income for the quarter was $9.7 million, relatively flat due to a higher portfolio value, offset by a lower interest rate environment. We continue to manage our investment portfolio while maintaining a conservative portfolio with high-quality investments that are durations liability matched.

結果是，分出保費率上升至 46.1%，比去年同期第三季的 43.9% 上升了 2.2 個百分點。本季我們的淨投資收益為 970 萬美元，與上季持平，主要得益於投資組合價值的上升，但被較低的利率環境所抵消。我們繼續管理我們的投資組合，同時保持保守的投資組合，投資於久期與負債相符的高品質資產。

Our total revenues for the quarter were $212.5 million, relatively unchanged from our prior-year quarter. As discussed, we expect our revenues to return to growth through 2026 as we ramp our new business efforts. Our net loss ratio for the quarter improved 27.1 points to 38.3% as compared to 65.4% in the same quarter last year, reflecting significantly lower net loss in LAE.

本季總營收為 2.125 億美元，與去年同期相比基本持平。如同先前討論的，隨著我們加大新業務投入，我們預計到 2026 年，我們的收入將恢復成長。本季淨虧損率較去年同期的 65.4% 改善 27.1 個百分點至 38.3%，反映出在拉大額稅收方面的淨虧損顯著降低。

Net weather losses for the current year quarter were $13.8 million, a decrease of $49.2 million from $63 million in the prior-year quarter. There were no catastrophe losses in the current quarter as compared to $48.7 million in the prior-year quarter. The reduction in weather losses was coupled with favorable reserve development as compared to the prior year. Our attritional losses continue to remain fairly stable as we believe is associated with the enhanced underwriting strategy over the last several years.

本季因天氣原因造成的淨損失為 1,380 萬美元，比去年同期的 6,300 萬美元減少了 4,920 萬美元。本季沒有發生巨災損失，去年同期損失為 4,870 萬美元。與前一年相比，天氣損失減少的同時，儲量發展也較為有利。我們的損耗損失持續保持相對穩定，我們認為這與過去幾年加強的承保策略有關。

Additionally, favorable net loss development was $5 million in the third quarter compared to adverse development of $6.3 million in the prior-year quarter. Our net expense ratio for the quarter was 34.6%, a 60-basis-point improvement from 35.2% in the prior-year quarter, driven primarily by a decrease in policy acquisition costs.

此外，第三季淨虧損改善為 500 萬美元，而上年同期淨虧損為 630 萬美元。本季淨費用率為 34.6%，較上年同期的 35.2% 改善了 60 個基點，主要原因是保單取得成本下降。

The reduction in policy acquisition costs was driven primarily by higher ceded commission income associated with both a larger amount of ceded premium under the net quota share program and a higher ceding commission rate due to favorable loss experience for that program. This resulted in a 1.2% reduction in policy acquisition costs, which was partially offset by a 60-basis-point increase in the net, general, and administrative expense ratio.

保單獲取成本的降低主要得益於更高的分出佣金收入，這既與淨配額份額計劃下更高的分出保費有關，也與該計劃良好的損失經驗帶來的更高分出佣金率有關。這導致保單取得成本降低了 1.2%，但淨一般及行政費用率上升 60 個基點，部分抵銷了這一降幅。

The net combined ratio for the quarter was 72.9%, an improvement of 19.6 points from 100.6% in the prior-year quarter, driven primarily by the lower net loss ratio as well as the lower net expense ratio just highlighted.

本季綜合淨比率為 72.9%，較上年同期的 100.6% 改善了 19.6 個百分點，主要得益於淨虧損率和淨費用率的降低（如前所述）。

Turning to our balance sheet, we ended the quarter with total assets of $2.4 billion and shareholders' equity of $437.3 million. Our book value per share increased to $14.15 at September 30, 2025, up 49% from the fourth quarter of 2024 and up 56% from the third quarter of 2024. The increase from December 31, 2024, is primarily attributable to year-to-date net income as well as a $15.7 million net of tax benefit associated with the reduction in unrealized losses.

從資產負債表來看，本季末我們的總資產為 24 億美元，股東權益為 4.373 億美元。截至 2025 年 9 月 30 日，我們的每股帳面價值增至 14.15 美元，比 2024 年第四季成長 49%，比 2024 年第三季成長 56%。2024 年 12 月 31 日的成長主要歸因於年初至今的淨收入，以及與未實現虧損減少相關的 1,570 萬美元稅收優惠淨額。

The unrealized losses are related to a decline in interest rates that occurred through the third quarter. The average duration of our fixed income portfolio is 3.13 years as the company has extended duration from the prior-year quarter to take advantage of higher yields further out on the yield curve while still maintaining a short duration, high credit quality portfolio.

未實現的損失與第三季利率下降有關。由於公司延長了固定收益投資組合的久期，以利用殖利率曲線遠端更高的收益率，同時保持短期、高信用品質的投資組合，因此公司固定收益投資組合的平均久期為 3.13 年。

Non-regulated cash at quarter end was $50.1 million. In addition, combined statutory surplus at our insurance companies affiliates at quarter end was $352.2 million, which is up $93.4 million from the third quarter of 2024. The increase in statutory surplus provides for additional growth capacity as we open territories to get up to full capacity.

截至季末，非監管現金為 5,010 萬美元。此外，截至季末，我們保險公司附屬公司的法定盈餘合計為 3.522 億美元，比 2024 年第三季增加了 9,340 萬美元。法定盈餘的增加為我們開放領土、達到滿載運作提供了額外的成長空間。

Looking ahead, we remain focused on executing our strategic initiatives aimed at driving long-term shareholder value and providing our policyholders and agents with the service they deserve and expect. We believe that our diversified portfolio and distribution capabilities, along with our overall proactive management approach to exposures, rate adequacy, and investing in technology will position us well for continued success.

展望未來，我們將繼續專注於執行各項策略舉措，旨在提升股東長期價值，並為我們的保單持有人和代理人提供他們應得和期望的服務。我們相信，我們多元化的投資組合和分銷能力，以及我們對風險敞口、費率充足性和技術投資的積極主動的管理方法，將使我們處於持續成功的有利地位。

Thank you for your time today. Operator, we are now ready for questions.

感謝您今天抽出時間。操作員，我們現在可以開始接受提問了。

(Operator Instructions) Mark Hughes, Truist.

（操作說明）馬克·休斯，Truist。

Yes, thank you. Good morning, Ernie. Good morning, Kirk.

是的，謝謝。早安，厄尼。早安，柯克。

Hey. Good morning, Mark

嘿。早安，馬克

The growth prospects, you talked about the PIV growth in 2026. How do you evaluate the opportunity in Florida versus outside of Florida?

關於成長前景，您談到了 2026 年 PIV 的成長。您如何評估佛羅裡達州與其他地區的投資機會？

Sure. So there's still plenty of opportunity for us in Florida. If you kind of go back to a couple of years, we derisked a bit in Florida, especially in some of the Tri-County areas. So there's plenty of runway for us in Florida.

當然。所以我們在佛羅裡達州仍然有很多機會。如果把時間倒回幾年前，我們在佛羅裡達州降低了一些風險，尤其是在三縣地區的某些地方。所以我們在佛羅裡達有足夠的跑道。

We understand there's more new markets in Florida, but our name has still been predominant with the agents, and that's why we talked quite a bit about our agency relationships, which remain strong. And the agents have been -- we've been working with the agents. They have reached out to us about continuing to write. So as we mentioned on the call there, $30 million plus of new business premium is something that is only gaining more momentum in Florida.

我們知道佛羅裡達州還有更多新興市場，但我們的品牌在代理商中仍然佔據主導地位，因此我們花了很多時間談論我們與代理商的關係，這些關係仍然牢固。我們一直在與經紀人合作。他們聯絡我們，希望我們繼續寫作。正如我們在電話會議上提到的，超過 3000 萬美元的新業務保費在佛羅裡達州正獲得越來越大的成長勢頭。

Okay. Of that new business momentum, I think you talked about $36 million was -- how much of that was Florida?

好的。關於這筆新的業務成長勢頭，我想你提到過 3600 萬美元——其中有多少來自佛羅裡達州？

We have that number here. I'll get that for you.

我們這裡有這個號碼。我來幫你拿。

In the meantime, I'll ask, how do we think about the pricing or competitive environment in Florida? It looks like commercial property is really a tremendous amount of pressure. I know in homeowners, the pricing cycle is a whole lot slower. But what's your current anticipation in terms of pricing? I think you've talked about filing for maybe low mid-single-digit rate decreases in 2026. Is that still a fair assessment? And is that --

同時，我想問一下，我們是如何看待佛羅裡達州的定價或競爭環境的？看來商業不動產產業壓力真的很大。我知道，對於房主來說，價格週期要慢得多。但您目前對價格有何預期？我認為你們曾討論過在 2026 年申請將利率下調個位數百分比。這種評價現在還算合理嗎？就是這樣嗎？--

Yes, that's still a fair assessment, right. We have a current filing with the -- pending with the OIR for a rate decrease. And the plan would be as well in '26. We've also planned for a single-digit rate decrease. Regarding commercial, you're right, there is more pressure, but I also remind people where the beginning point is when you're talking about CRs in the 70s. Yes, they have pushed up slightly to 80%, but an 80% CR is still very profitable in the commercial lines arena.

是的，這仍然是一個合理的評價，對吧。我們目前已向 OIR 提交了一份降低費率的申請，目前正在等待 OIR 的批准。2026 年的計畫也是如此。我們也計劃將利率下調個位數。關於商業方面，你說得對，壓力確實更大了，但我也會提醒人們，當我們談論 70 年代的商業評論時，起點在哪裡。是的，他們已經略微提高了到 80%，但 80% 的商業保險費率仍然非常有利可圖。

Yes, about $17 million of that new business was Florida.

是的，那項新業務中約有 1700 萬美元來自佛羅裡達州。

Okay, so kind of consistent with your current mix. And then ceded premiums in absolute dollars, is this a good starting point when we think about the fourth quarter, the $166 million, $167 million?

好的，這和你目前的混音風格基本上一致。那麼，以絕對美元計算的已轉讓保費，當我們考慮第四季的 1.66 億美元、1.67 億美元時，這是一個好的起點嗎？

Yes. It's probably going to be a little high. We had about a $4 million one-time adjustment in there due to reinstatement premium. So yes, I think if you look at -- backing off some of that, then you're going to be about where the number needs to be.

是的。可能會有點高。由於恢復保費，我們一次性調整了約 400 萬美元。所以，是的，我認為如果你考慮——減少一些這方面的投入，那麼你就能達到所需的數字水平。

So low $160s million, is just reinstatement premium from Ian?

所以區區1.6億美元，只是伊恩的復職費嗎？

Yes, Ian and Milton -- yes, it was Ian. Correct.

是的，伊恩和米爾頓——是的，是伊恩。正確的。

Okay, so it shows up a couple of years later?

好的，所以它是在幾年後才出現的？

Yes.

是的。

Okay. How much growth can you support with the surplus that you've got, the $352 million, up pretty substantially? Will that be good enough for kind of what you're seeing in 2026?

好的。您目前擁有的盈餘（3.52億美元，增幅相當可觀）能夠支持多大的成長？對於你設想的 2026 年的情況來說，這夠好嗎？

Yes. Well, I think if you look at kind of where our change in statutory surplus is for the year, it's up about $66 million. And then if you assume that that is 3 to 1 ratio, that type of stuff, that gives us over $180 million of net earned premium to write. And again, that's net written. So then you actually figure that that number is going to be a little higher because of the ceded. And so therefore, I mean, you're looking at roughly well over $225 million, $250 million of premium that we can write based upon that increase in surplus. And then again, that doesn't include any improvements in that number in the fourth quarter.

是的。嗯，我認為如果你看一下我們今年的法定盈餘變化情況，你會發現它增加了約 6,600 萬美元。如果假設比例是 3 比 1，諸如此類，那麼我們就有超過 1.8 億美元的淨已賺保費可以承保。而且，這都是淨值。所以，由於割讓的土地，你實際上會認為這個數字會稍微高一些。因此，我的意思是，基於盈餘的增加，我們可以承保的保費大約超過 2.25 億美元至 2.5 億美元。而且，這還不包括第四季度該數字的任何改善。

Yes. Yes, which I guess leads to the question, with your level of earnings and your strong capital position already, I think you talked about $2 million in buybacks in the quarter, but it seems like there's going to be a lot of excess capital floating around in pretty short order. What are the priorities there? Is that something you could act sooner rather than later on maybe further buybacks?

是的。是的，我想這就引出了一個問題，鑑於你們目前的盈利水平和雄厚的資本實力，我記得你們說過本季度將回購 200 萬美元的股票，但似乎很快就會有大量過剩資金流入市場。那裡的優先事項是什麼？是否可以盡快採取行動，例如進行進一步的股票回購？

And again, one of the things we also mentioned is that the Board did authorize an additional $25 million worth of stock buybacks. And again, I think if you look at our capital priorities, again, it's -- one, it's using capital for growth because of the ROEs we're able to generate. Second of all is we do look at where our stock is trading. We still think it's undervalued. So therefore, stock buybacks is our second priority and then dividends after that with the ROEs, if we can't generate what we think are substantial ROEs. So that's kind of like the priority of our capital utilization.

此外，我們也提到，董事會確實批准了額外 2,500 萬美元的股票回購計畫。而且，我認為，如果你看看我們的資本優先事項，你會發現——第一，是利用資本來實現成長，因為我們能夠產生淨資產收益率。其次，我們確實會關注股票的交易情況。我們仍然認為它被低估了。因此，股票回購是我們的第二優先事項，然後是股息，最後才是淨資產收益率，如果我們無法產生我們認為可觀的淨資產收益率的話。所以，這算是我們資金利用的優先事項吧。

Yes. Yes, I hear you. Yes, your net income relative to your market cap relative to your capital requirements is pretty striking when you put all that together.

是的。是的，我明白了。是的，把所有這些因素綜合起來考慮，你的淨收入、市值和資本需求之間的關係確實非常顯著。

Yes. Yes, it is.

是的。是的。

Okay, all right. Thank you for all the answers. Appreciate it.

好的，沒問題。謝謝大家的回答。謝謝。

Thank you, Mark.

謝謝你，馬克。

Karol Chmiel, Citizens.

Karol Chmiel，公民。

Hey, good morning Thank you. I just have a follow-up question to Mark's question about the new business. So if $17 million of the $36 million was Florida, roughly $19 million was outside of Florida. Can you just maybe comment on where you're seeing the most momentum of those territories outside of Florida?

嘿，早上好，謝謝。我還有一個後續問題，是針對馬克關於新業務的問題而言的。因此，如果 3600 萬美元中有 1700 萬美元在佛羅裡達州，那麼大約 1900 萬美元在佛羅裡達州以外。您能否談談您認為佛羅裡達州以外的哪些地區發展勢頭最強勁？

Yes, so Virginia is a new growing state for us as well as growth in Hawaii. New York is also ramping up. And the one reminder there is that we did take additional 9%, which made us rate adequate in New York. So that started midyear. So that is only beginning and will kind of roll into '26. So additional states as California on an E&S basis also is another positive momentum growing for us.

是的，維吉尼亞州和夏威夷州對我們來說都是一個新興的成長州。紐約也在加緊推進。還有一點要提醒的是，我們額外收取了 9% 的費用，這使我們在紐約的評級達到了合格標準。所以這項工作是從年中開始的。所以這只是個開始，而且會一直延續到 2026 年。因此，像加州這樣以E&S為基礎的州的加入，對我們來說也是一個積極的成長勢頭。

Okay, great. Thank you. And just a quick question on this favorable development of $5 million. Is this still due to the reserve strengthening of last year?

好的，太好了。謝謝。關於這筆500萬美元的利多消息，我還有一個問題。這是否仍是由於去年儲備增加所致？

Yes. It has partially to do with that, and it just also has to do with just kind of what we're seeing in the underlying portfolio. So again, we think that we're adequately reserved for sure. So yes, it does have to do a little bit with that where we did take a hard look at last year.

是的。部分原因在於此，也與我們目前在基礎投資組合中看到的情況有關。所以，我們再次認為，我們的儲備肯定夠充足了。是的，這確實與我們去年認真審視的情況有一些關係。

All right. Thank you very much.

好的。非常感謝。

All right. Thank you.

好的。謝謝。

Thank you.

謝謝。

At this time, there are no further questions. So this concludes our question-and-answer session. I would like to turn the conference back over to Ernie Garateix for any closing remarks.

目前沒有其他問題了。我們的問答環節到此結束。我謹將會議交還給厄尼·加拉泰克斯，請他作總結發言。

We'd like to thank everyone for joining the call and thank especially our workforce and our employees for all their hard work this year.

感謝大家參與此次電話會議，尤其要感謝我們的員工和工作人員今年付出的辛勤努力。

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

會議已經結束。感謝各位參加今天的報告會。您現在可以斷開連線了。