James River Group Holdings Inc (JRVR) 2023 Q3 法說會逐字稿

Good day, and welcome, everyone, to the James River Group Quarter 3 2023 Earnings Conference Call.

美好的一天，歡迎大家參加詹姆斯河集團 2023 年第三季財報電話會議。

I would now like to turn the call over to Brett Shirreffs, our Head of Investor Relations. You may begin your conference.

我現在想將電話轉給我們的投資者關係主管 Brett Shirreffs。您可以開始您的會議了。

Good morning, everyone, and welcome to the James River Group Third Quarter 2023 Earnings Conference Call. During the call, we will be making forward-looking statements. These statements are based on current beliefs, intentions, expectations and assumptions that are subject to various risks and uncertainties, which may cause actual results to differ materially.

大家早安，歡迎參加詹姆斯河集團 2023 年第三季財報電話會議。在電話會議期間，我們將做出前瞻性陳述。這些陳述是基於目前的信念、意圖、期望和假設，受到各種風險和不確定性的影響，可能導致實際結果有重大差異。

For a discussion of such risks and uncertainties, please see the cautionary language regarding forward-looking statements in yesterday's earnings release and the risk factors of our most recent Form 10-K and other reports and filings we have made with the Securities and Exchange Commission. We do not undertake any duty to update any forward-looking statements.

有關此類風險和不確定性的討論，請參閱昨天收益發布中有關前瞻性陳述的警告性語言以及我們最新的10-K 表格以及我們向美國證券交易委員會提交的其他報告和文件中的風險因素。我們不承擔更新任何前瞻性陳述的責任。

In addition, during this presentation, we may reference non-GAAP financial measures such as adjusted net operating income, underwriting profit, tangible equity, tangible common equity and adjusted net operating return on tangible common equity. Please refer to our earnings press release for a reconciliation of these numbers to GAAP, a copy of which can be found on our website at www.jrvrgroup.com.

此外，在本簡報中，我們可能會參考非公認會計準則財務指標，例如調整後的淨營業收入、承保利潤、有形股本、有形普通股和調整後的有形普通股淨營業回報。請參閱我們的收益新聞稿，以了解這些數字與 GAAP 的對帳情況，其副本可在我們的網站 www.jrvrgroup.com 上找到。

Lastly, unless otherwise specified for the reasons described in our earnings press release, all underwriting performance ratios referred to are for our business that is not subject to retroactive reinsurance accounting for loss portfolio transfers.

最後，除非因我們的收益新聞稿中所述的原因另有說明，否則所提及的所有承保績效比率均適用於我們的業務，該業務不受損失投資組合轉移的追溯再保險會計的約束。

I will now turn the call over to Frank D'Orazio, Chief Executive Officer of James River Group.

我現在將電話轉給 James River Group 執行長 Frank D'Orazio。

Thank you for that introduction, Brett. Good morning, everyone, and welcome to our third quarter 2023 earnings call. I'm pleased to be joining you today to provide additional color on our third quarter results, while also sharing some thoughts around marketing conditions and the strategic priorities that James River continues to focus on.

謝謝你的介紹，布雷特。大家早安，歡迎參加我們的 2023 年第三季財報電話會議。我很高興今天加入您的行列，為我們的第三季度業績提供更多信息，同時還分享一些關於營銷狀況和 James River 繼續關注的戰略重點的想法。

In addition to reporting our third quarter results, this morning, we're excited to announce the sale of our Casualty Reinsurance business, JRG Re, to Fleming Insurance Holdings, a portfolio company of Altamont Capital Partners. This transaction marks a significant milestone for the organization as it will bring ultimate finality to our exposure from our legacy reinsurance platform.

除了報告第三季業績外，今天早上，我們還很高興地宣布將傷亡再保險業務 JRG Re 出售給 Altamont Capital Partners 的投資組合公司 Fleming Insurance Holdings。這項交易標誌著該組織的一個重要里程碑，因為它將最終確定我們在傳統再保險平台上的風險敞口。

Having also sold the renewal rights to our individual risk workers' compensation business during the third quarter, moving forward, James River will be focused on the E&S and fronting markets, sectors where we have scale, market leadership and strong teams in place to take advantage of market opportunities.

詹姆斯河也在第三季出售了我們個人風險工人賠償業務的續約權，展望未來，詹姆斯河將專注於E&S 和前沿市場，我們在這些領域擁有規模、市場領導力和強大的團隊，可以利用這些領域的優勢的市場機會。

This transaction will provide a clean exit from the reinsurance business, eliminate future reserve volatility and freeze up capital to focus on our areas of growth. We also believe the sales simplifies the James River story while paving the way for more consistent earnings.

這項交易將徹底退出再保險業務，消除未來的準備金波動，並凍結資本以專注於我們的成長領域。我們也相信，此次銷售簡化了詹姆斯河的故事，同時為更穩定的收益鋪平了道路。

Turning to our results. The third quarter continued to show the positive momentum we have as an organization and strong underlying trends in our ongoing businesses. We again delivered profitable underwriting results in both our E&S and Specialty Admitted segments, while our investment portfolio continues to perform well with record investment income during the third quarter.

轉向我們的結果。第三季繼續展現我們作為一個組織所擁有的積極勢頭以及我們正在進行的業務的強勁潛在趨勢。我們在 E&S 和專業准入領域再次取得了盈利的承保業績，同時我們的投資組合繼續表現良好，第三季度的投資收入創歷史新高。

We have seen a modest acceleration of some already positive trends in our E&S business, including renewal rate increases and submission growth, clearly a favorable indication of the strength and durability of this market cycle, while we also continue to execute on portfolio management actions across our business as we remain focused on bottom line profitability.

我們看到我們的E&S 業務中一些已經積極的趨勢略有加速，包括續訂率增加和提交增長，這顯然是這個市場週期的強度和持久性的有利跡象，同時我們還繼續在我們的整個業務範圍內執行投資組合管理行動我們仍專注於底線獲利能力。

For the third quarter, we reported adjusted net operating income of $18.3 million or $0.48 per share. Our return on tangible common equity ex AOCI was 13% for the quarter. Tangible common equity per share of $10.25 has increased 9.3% before dividends through the first 9 months of the year as both our underwriting profit and strong investment returns have contributed to this growth. Our tangible common equity per share, excluding AOCI, was $15.27 at the end of the third quarter and up 11.2% year-to-date.

第三季度，我們報告調整後淨營業收入為 1,830 萬美元，即每股 0.48 美元。本季除 AOCI 外的有形普通股回報率為 13%。今年前 9 個月，每股有形普通股 10.25 美元，在股息前成長了 9.3%，因為我們的承保利潤和強勁的投資回報推動了這一成長。第三季末，我們的每股有形普通股（不包括 AOCI）為 15.27 美元，今年迄今成長了 11.2%。

Now let me provide a little more color on our segment results and market conditions. As I have stated previously, we continue to view the E&S environment as highly attractive. Competition remains rational across most of our E&S underwriting units, and we have seen renewal rate change trend higher in each sequential quarter this year, topping out at 12.4% in the third quarter. This increase is the latest of 27 consecutive quarters of positive pricing, bringing the compound renewal rate change to 77.2% since 2017.

現在讓我對我們的細分市場結果和市場狀況提供更多資訊。正如我之前所說，我們仍然認為 E&S 環境極具吸引力。我們大多數 E&S 承保部門的競爭仍然理性，我們看到今年每季的續保率變化趨勢都較高，第三季最高達到 12.4%。此次成長是連續 27 季正定價中的最新一次，使自 2017 年以來的複合續訂率變化達到 77.2%。

Renewal rate increases remain broad-based across our portfolio, with most underwriting divisions achieving rate change in the high single or low double-digit range through 9 months. While rate increases in our excess property division continue to lead the segment, the remainder of our E&S business, all casualty lines, achieved rate increases of 9.1% during the third quarter, consistent both with our experience during 2022 and another indicator that our nonproperty divisions are producing healthy increases in rate.

我們的投資組合中的續保費率仍然廣泛上漲，大多數核保部門在 9 個月內實現了高個位數或低兩位數的費率變化。雖然我們的超額財產部門的費率上漲繼續引領該細分市場，但我們的E&S 業務的其餘部分（所有傷亡險種）在第三季度實現了9.1% 的費率上漲，這與我們在2022 年的經驗一致，也與我們的非財產部門的另一個指標一致正在產生健康的成長率。

Excess Property, Excess Casualty and Energy all showed meaningful double-digit rate increases, while general casualty rates increased 8.9% during the third quarter. Our 15 underwriting divisions continue to build on our strong relationships with wholesale distribution. Total submission growth of 8% during the third quarter was driven by new business submission activity and was our strongest submission growth rate in 3 years.

過剩財產、過剩傷亡和能源都出現了兩位數的顯著增長，而第三季度一般傷亡率增長了 8.9%。我們的 15 個承保部門持續鞏固與批發分銷的牢固關係。第三季提交總量成長了 8%，這是由新業務提交活動推動的，是我們 3 年來最強勁的提交成長率。

Excess Casualty and general casualty both recorded double-digit submission growth in the quarter at 14% and 24%, respectively, with several other units in the high single digits. Policy count increased 9% during the third quarter, again, supported by some of our larger underwriting units, General Casualty policy count increased 25%, while Excess Casualty was up 19% and manufacturers and contractors increased by 12%.

超額傷亡和一般傷亡在本季度均錄得兩位數的提交增長，分別為 14% 和 24%，其他幾個單位也達到了較高的個位數。第三季保單數量再次增加了 9%，在我們一些較大承保單位的支持下，普通傷亡保單數量增加了 25%，超額傷亡保單數量增加了 19%，製造商和承包商增加了 12%。

Overall, we continue to be encouraged by pricing and market trends, which suggests that the current attractive market conditions should lead us well into 2024. Consistent with our actions last quarter, we have deliberately been more cautious on certain classes of commercial auto, particularly food delivery, and have made efforts to reduce exposure. These actions led to a 44% decline in commercial auto gross written premium, representing a $7 million reduction relative to the prior year.

總體而言，我們繼續受到定價和市場趨勢的鼓舞，這表明當前有吸引力的市場條件應該會引導我們順利進入2024 年。與我們上季度的行動一致，我們刻意對某些類別的商用汽車（尤其是食品汽車）持更謹慎的態度交付，並努力減少暴露。這些行動導致商用汽車總保費下降 44%，比前一年減少 700 萬美元。

We believe this action is prudent as we look to continue to generate strong profitability across our portfolio. Our core E&S gross written premium growth was 10.3% in the third quarter, excluding commercial auto, and 10.8% on a year-to-date basis. This performance was driven by strong growth in General Casualty, Manufacturers and Contractors, Energy, Excess Property and Sports & Entertainment.

我們認為這項行動是謹慎的，因為我們希望繼續在我們的投資組合中產生強勁的獲利能力。第三季（不含商用汽車）我們的核心 E&S 總承保保費成長率為 10.3%，年初至今成長率為 10.8%。這項業績是由普通傷亡險、製造商和承包商、能源、過剩財產以及體育和娛樂業務的強勁增長所推動的。

Throughout the third quarter, we saw year-over-year growth rates accelerate in each month. We closed the quarter with nearly 16% growth in core E&S premium in September, which is one of our strongest monthly growth rates during 2023. Looking across our underwriting divisions and reflecting on the rate improvements we have achieved throughout 2023, we are confident in our outlook for profitable growth.

在整個第三季度，我們看到每個月的年成長率都在加速。本季末，我們9 月份的核心E&S 保費增長了近16%，這是我們2023 年最強勁的月度增長率之一。縱觀我們的承保部門，並反思我們在2023 年全年取得的費率改進，我們對我們的業務充滿信心獲利成長前景。

The E&S segment reported a combined ratio of 88.4% and underwriting profit of $18.3 million for the third quarter. We did not record any catastrophe losses in the period, however we did experience $7.8 million in adverse prior year development as we made the decision to shore up reserves from older accident years from 2015 to 2018 in our General Casualty line of business, where the industry has seen some adverse emergence trends.

E&S 部門第三季綜合成本率為 88.4%，承保利潤為 1,830 萬美元。在此期間，我們沒有記錄任何巨災損失，但我們確實經歷了上一年不利發展的780 萬美元，因為我們決定在我們的普通傷亡業務範圍內增加2015 年至2018 年較早事故年份的準備金，該行業出現了一些不利的趨勢。

Partially offsetting this strengthening was a reduction to estimated losses in the current accident year based on general rate trends and significant portfolio management actions and improved risk selection as we've exited several loss-leading classes over the last few years and have taken other underwriting actions.

部分抵消了這種加強的是基於總體利率趨勢和重大投資組合管理行動以及改進的風險選擇，減少了當前事故年的估計損失，因為我們在過去幾年中退出了幾個虧損領先類別並採取了其他承保行動。

As a result of these favorable pricing dynamics as well as our portfolio management actions, we reduced our current accident year losses by $8 million in the quarter to reflect these trends and the impact on year-to-date results. Our E&S accident year loss ratio for the first 9 months was 65.8% or 64.1%, excluding the impact of reinstatement premiums. This compares to an accident year loss ratio of 65%, excluding catastrophes, in the prior year period or a 90 basis point improvement year-over-year. All in, we remain excited about the opportunity set in front of our E&S segment and we have an exceptional team in place to continue to execute on our growth plans while maintaining attractive margins.

由於這些有利的定價動態以及我們的投資組合管理行動，我們在本季將當前事故年損失減少了 800 萬美元，以反映這些趨勢以及對年初至今業績的影響。我們前 9 個月的 E&S 事故年損失率為 65.8% 或 64.1%（不含恢復保費的影響）。相較之下，去年同期的事故年損失率為 65%（不包括災難），較去年同期改善了 90 個基點。總而言之，我們對 E&S 部門面臨的機會仍然感到興奮，我們擁有一支出色的團隊，可以繼續執行我們的成長計劃，同時保持有吸引力的利潤率。

Turning to Specialty Admitted. As I mentioned earlier, during the third quarter, we announced the sale of the renewal rights of our Individual Risk Workers Compensation business to the Amynta Group. The sale encompasses the full operations, including underwriting, loss control and claims. This business had generated $48.5 million of gross written premium on a trailing 12-month basis.

轉向專業錄取。正如我之前提到的，在第三季度，我們宣布將個人風險工作者補償業務的續約權出售給 Amynta 集團。此次出售涵蓋了全部業務，包括承保、損失控制和索賠。該業務過去 12 個月的總保費收入為 4,850 萬美元。

This strategic action immediately follows the nonrenewal of our large California workers' compensation program that we discussed last quarter and was a natural next step, allowing our Specialty Admitted segment to focus on fronting and program business moving forward. We believe there is a strong opportunity for disciplined growth within the space.

這項策略行動是在我們上季度討論的加州大型工人賠償計劃不再續簽之後立即採取的，這是自然而然的下一步，使我們的專業錄取部門能夠專注於前沿和計劃業務的發展。我們相信該領域存在良好的有序成長機會。

As has been the case throughout our history, we will continue to focus on supporting profitable programs with a conservative approach to reinsurance security and collateral. Segment results for the quarter included 10% growth in fronting and program gross written premium, excluding workers' compensation. We saw growth from several new programs initiated during the third quarter and also experienced continued growth from existing programs, which included meaningful rate increases in certain areas. Specialty Admitted underwriting profit in the third quarter was $2 million, and the combined ratio came in at 92.5%.

正如我們歷史上的情況一樣，我們將繼續專注於以保守的再保險擔保和抵押品方式支持盈利計劃。本季度的分部業績包括預付保費和計劃總承保保費增長 10%（不包括工人賠償）。我們看到了第三季啟動的幾個新計劃的增長，也經歷了現有計劃的持續增長，其中包括某些領域的有意義的費率上漲。 Specialty第三季承保利潤為200萬美元，綜合成本率為92.5%。

Lastly, turning to our Casualty Reinsurance segment. Results for the quarter continue to reflect the earnings of treaties written in prior years as well as various premium adjustments. The underwriting loss was $4.2 million and included $4.7 million of reserve strengthening from business not subject to the LPT. Reserve development was driven by movement on a few specific treaties primarily from treaty years 2016 to 2019 driven by primary GL exposure.

最後，轉向我們的傷亡再保險部分。本季度的業績繼續反映前幾年簽訂的條約的收益以及各種保費調整。承保損失為 420 萬美元，其中包括不受 LPT 約束的業務的 470 萬美元儲備強化。儲備開發是由一些具體條約的動向推動的，主要是 2016 年至 2019 年條約年由主要總帳敞口推動的。

There were also several treaties that experienced a model -- a modest level of favorable reserve movements during the quarter as a result of claim settlements and loss experience. Additionally, we experienced $7 million of reserve strengthening on treaties covered under the LPT, reflecting deterioration from construction and construction defect exposures. The remaining limit on the retroactive reinsurance that we put in place 2 years ago is now $38.3 million.

還有一些條約經歷了一個模型——由於索賠和解和損失經驗，本季出現適度的有利準備金變動。此外，我們還根據 LPT 所涵蓋的條約加強了 700 萬美元的儲備金，反映出建築和建築缺陷暴露的惡化。我們 2 年前實施的追溯再保險的剩餘限額現在為 3830 萬美元。

Our third quarter results reflect the continued effort of our dedicated employees to refocus James River around our core competencies. Our underwriting franchises remain leaders in their respective specialties and remain well positioned to take advantage of attractive E&S market conditions and fronting market dislocations. As I've said before, our focus remains on deploying capital where we can achieve consistent and attractive returns for shareholders.

我們第三季的業績反映了我們敬業的員工不斷努力，使 James River 重新聚焦於我們的核心競爭力。我們的承保特許經營業務在各自的專業領域仍然處於領先地位，並且仍然處於有利地位，可以利用有吸引力的 E&S 市場條件和前沿市場混亂。正如我之前所說，我們的重點仍然是部署資本，為股東實現一致且有吸引力的回報。

And with that, let me turn the call over to Sarah.

接下來，讓我把電話轉給莎拉。

Thank you very much, Frank. Good morning, everyone, and thanks for joining us today. First, a bit more on the transaction that we just announced. As Frank mentioned, earlier this morning, we executed definitive documentation to sell the business and entity underlying our Casualty Reinsurance segment to Fleming Holdings.

非常感謝你，弗蘭克。大家早安，感謝您今天加入我們。首先，詳細介紹一下我們剛剛宣布的交易。正如弗蘭克所提到的，今天早些時候，我們簽署了最終文件，將傷亡再保險部門的業務和實體出售給弗萊明控股公司。

As Frank mentioned, this transaction and the sale of the renewal rights of our individual risk workers' compensation book we announced and closed in September, our key final pieces of our work these past few years to streamline the organization, focus on our core strengths where we have significant market advantage. We're thrilled to be at this point. We believe our franchise is well positioned according to its strengths and to drive compelling returns for shareholders and that our colleagues at JRG Re are very well positioned to help Fleming grow.

正如 Frank 所提到的，這項交易以及我們在 9 月宣布並完成的個人風險工作者補償簿續約權的出售，是我們過去幾年精簡組織、專注於我們的核心優勢的最後關鍵工作，其中我們擁有顯著的市場優勢。我們很高興此時此刻。我們相信，我們的特許經營權根據其優勢處於有利地位，能夠為股東帶來可觀的回報，而 JRG Re 的同事也非常有能力幫助弗萊明成長。

The sale will be a full separation via the stock purchase agreement we executed with Fleming. Consideration will consist of $138 million of cash at close and $139 million of a pre-closing dividend. The pre-closing dividend does not require regulatory approval. We expect to contribute the transaction proceeds to our existing U.S. insurance businesses. The transaction is subject to customary closing conditions, including approval by the BMA.

此次出售將透過我們與弗萊明簽署的股票購買協議實現完全分離。對價將包括成交時 1.38 億美元的現金和 1.39 億美元的成交前股息。交割前股利不需要監理機關核准。我們希望將交易收益貢獻給我們現有的美國保險業務。此交易須滿足慣例成交條件，包括 BMA 的批准。

Given the sale at a 25% discount to book, which is entirely consistent with runoff entity sale transactions, we expect to have a loss on sale of approximately $93 million or $2.50 per share, which we will record next quarter, the fourth quarter, as we move the business into discontinued operations.

鑑於此次出售的帳面折扣為25%，這與徑流實體出售交易完全一致，我們預計出售損失約為9300 萬美元，即每股2.50 美元，我們將在下個季度（即第四季度）將其記錄為我們將業務轉為停產業務。

We expect the transaction to be largely neutral to earnings with the loss of investment returns, but elimination of what has been historical underwriting volatility in the segment. Similarly, we expect to be able to meaningfully improve earnings stability, owing to larger contributions from our E&S business and less from exposure to the Reinsurance business.

我們預計，隨著投資回報的損失，此交易對獲利的影響基本上是中性的，但消除了該領域歷史上承保波動的情況。同樣，由於我們的 E&S 業務貢獻較大，而再保險業務貢獻較小，我們預計能夠顯著提高獲利穩定性。

Finally, it is expected to be accretive to 2024 return on tangible common equity, excluding AOCI, by approximately 250 basis points. We have had preliminary conversations with both our rating agency and regulator. And while it's early days, those conversations have been positive, to be clear.

最後，預計 2024 年有形普通股回報率（不包括 AOCI）將增加約 250 個基點。我們已與評級機構和監管機構進行了初步對話。需要明確的是，雖然現在還處於早期階段，但這些對話都是正面的。

Given the balance sheet and in particular reserves that we are selling, we do not need to raise capital to affect the full separation. We are very grateful for the help of our advisers on this transaction, Citi, Howden Tiger and Debevoise and their many months of thoughtful collaboration to get to today.

考慮到我們正在出售的資產負債表，特別是儲備金，我們不需要籌集資金來影響完全分離。我們非常感謝我們的顧問、花旗銀行、Howden Tiger 和 Debevoise 在本次交易中提供的幫助，以及他們數月來的深思熟慮的合作才取得了今天的成果。

Back to the quarter briefly. For the third quarter, we're reporting adjusted net operating income of $0.48 per share compared to $0.41 per share in the prior year quarter, an increase of 16%. Tangible book value per common share was $10.25 at September 30 and has increased 7.7% from the start of the year or 9.3% before dividends.

簡單地回到本季。第三季度，我們報告的調整後淨營業收入為每股 0.48 美元，與去年同期的每股 0.41 美元相比，成長了 16%。截至 9 月 30 日，每股普通股有形帳面價值為 10.25 美元，較年初成長 7.7%，股息前成長 9.3%。

During the third quarter, AOC -- accumulated other comprehensive loss declined by $40.2 million due to unrealized losses on our available-for-sale fixed maturity portfolio due to the rise in interest rates. Excluding the impact of AOCI, our tangible book value per common share has increased 10.1% from the start of the year or 11.2% before earnings.

第三季度，AOC 累計其他綜合損失下降了 4,020 萬美元，因為利率上升導致我們的可供出售固定期限投資組合出現未實現損失。排除 AOCI 的影響，我們的每股普通股有形帳面價值較年初增長了 10.1%，盈利前增長了 11.2%。

We continue to have solid underwriting performance, strong net investment income and consistent growth in our core businesses. We're delivering $18.3 million of adjusted net operating income, including $7.6 million of underwriting profit and $26.3 million of net investment income on a pretax basis for the quarter.

我們持續保持穩健的承保業績、強勁的淨投資收入和核心業務的持續成長。本季我們將實現 1,830 萬美元的調整後淨營業收入，包括 760 萬美元的承保利潤和 2,630 萬美元的稅前淨投資收入。

Our group combined ratio was 96.2%, roughly a 2-point increase over the prior year quarter, mainly driven by a higher expense ratio and unfavorable reserve development in our Casualty Reinsurance segment. We did not experience any catastrophe losses in the quarter. And while higher than the prior year, our expense ratio of 27.6% in the third quarter is consistent with the targets we provided on our fourth quarter call.

我們的集團綜合成本率為 96.2%，比去年同期成長約 2 個百分點，主要是由於費用比率較高以及意外險再保險部門的準備金發展不利。本季我們沒有經歷任何災難性損失。雖然高於去年同期，但我們第三季 27.6% 的費用率與我們在第四季電話會議上提供的目標一致。

So with that, I would like to turn it back to the operator to open the line for questions.

因此，我想將其轉回接線員以打開提問線路。

(Operator Instructions) Our first question comes from the line of Mark Hughes from Truist.

（操作員說明）我們的第一個問題來自 Truist 的 Mark Hughes。

A lot of good news, but I'll focus on the adverse in the E&S. Could you talk a little bit more about what you're seeing? Clearly, the '15 through '18 and the General Casualty has been a challenge for lots of folks for the industry as a whole. What did you see, what prompted you to take the action now and then the -- what are the total reserves that are still outstanding for those '15 through '18 accident years?

有很多好消息，但我將重點放在 E&S 中的不利消息。你能多談談你所看到的嗎？顯然，從 15 世紀到 18 世紀以及一般傷亡事故對整個行業的許多人來說都是一個挑戰。您看到了什麼，是什麼促使您時不時地採取行動——「15 至 18 個事故年」中尚未結清的總儲備是多少？

Sure. So listen, I agree with you, Mark. Like much of the rest of the industry, we saw some signs of pressure on our General Casualty reserves from the soft market years. So during the quarter, we chose to address that we perceived as some signs of weakness in the 2015 to 2018 years that caused us to make some adjustments to reserves and shift some IBNR. Obviously, it's a disappointing development to see, but this is an industry dynamic, as you mentioned, and it's clearly extending the current pricing cycle to our benefit.

當然。所以聽著，我同意你的觀點，馬克。與該行業的其他許多公司一樣，我們看到了市場疲軟時期對我們的普通傷亡準備金造成壓力的一些跡象。因此，在本季度，我們選擇解決我們認為 2015 年至 2018 年的一些疲軟跡象，這些跡象導致我們對準備金進行一些調整併轉移一些 IBNR。顯然，這是一個令人失望的發展，但正如您所提到的，這是一個行業動態，並且它顯然延長了當前的定價週期，這對我們有利。

So stepping back, I do take comfort overall based on the persistent strength of the rates that we've achieved now more than 77% cumulatively during the cycle with major improvements in underwriting and no signs that this market is letting up. And yet you have to take that in concert with the overall conservatism that we've embedded in the last few years.

因此，退一步來說，基於我們在周期內累計達到超過 77% 的利率的持續強勁，我確實感到總體上感到安慰，承保方面有了重大改善，而且沒有跡象表明這個市場正在放緩。然而，你必須將這一點與我們過去幾年所體現的整體保守主義結合起來。

So we believe we've been very conservative in our recent accident year loss picks and at a time when we brought a lot more underwriting oversight and discipline into the organization, produced substantial rate and have made meaningful changes to risk selection and exclusionary language as well as other portfolio management tools. And the benefits of those actions gain strength year after year in these market conditions.

因此，我們認為，我們在最近的事故年損失選擇上一直非常保守，當時我們為組織帶來了更多的承保監督和紀律，產生了可觀的利率，並對風險選擇和排除語言做出了有意義的改變與其他投資組合管理工具一樣。在這樣的市場條件下，這些行動的好處年復一年地增強。

So like the rest of the industry, we're watching the older software market -- excuse me, the older soft market accident years very closely. But I look at everything we've done and continue to do for several years now in terms of rate improvements and underwriting actions, and that certainly gives me a lot of confidence overall.

因此，像行業的其他公司一樣，我們正在密切關注舊的軟體市場——對不起，舊的軟體市場事故年份非常密切。但我看看我們幾年來在費率提高和承保行動方面所做的一切以及繼續做的一切，這無疑給了我很大的信心。

Did you take any favorable development, say, in the '19 through '22 accident years to -- as an offset? Not as an offset, but did you recognize any favorable development?

例如，您是否將 19 至 22 年間的任何有利發展作為抵銷？不是作為補償，但您是否認識到任何有利的發展？

I don't believe so, Mark. We can go. We don't have all the details in front of us there, but I don't believe that we did on any of the prior years.

我不這麼認為，馬克。我們可以去。我們面前沒有所有的細節，但我不相信我們在前幾年就做到了。

Okay. So this was kind of net-net, this was the...

好的。所以這是一種網絡，這是......

I'm sorry, let me understand your question. The $8 million is net-net, absolutely right.

抱歉，讓我理解你的問題。 800萬美元是淨額，絕對正確。

Yes. Yes. The $8 million is net-net, but I'm just curious whether there was some -- the adverse in those older years might have been higher but offset by gains in subsequent years during the harder market conditions.

是的。是的。 800 萬美元是淨淨額，但我只是好奇是否有一些 - 過去幾年的不利因素可能會更高，但會被隨後幾年市場條件更困難期間的收益所抵消。

Nothing that I can think of right now. We're happy to go back and look. But again, the focus was more so on the $8 million.

我現在想不出什麼。我們很高興回去看看。但同樣，焦點更集中在 800 萬美元。

Yes. Okay. And then what -- if we think about General Casualty reserves that are still outstanding from '15 through '18, is there kind of a rough number for what's left within the areas where you saw some emergence?

是的。好的。然後，如果我們考慮一下 15 年到 18 年期間仍然未完成的一般傷亡準備金，在您看到一些出現的領域中，是否有一個粗略的數字？

Mark, I'm sorry, we don't have that number right in front of us, but we are happy to follow up on those details. Apologies.

馬克，很抱歉，我們面前沒有這個號碼，但我們很樂意跟進這些細節。道歉。

The next question comes from the line of Matt Carletti from JMP Securities.

下一個問題來自 JMP 證券公司的 Matt Carletti。

I just had a question on kind of the other comments in the press release about material weakness around some of the accounting for one of the reinsurance transactions. Can you just walk us through, I guess, question one is the $10.4 million of net income overstatement that for the 6 months. Is that reflected in the equity and book value numbers we see at 9/30 in the press release, or is that yet to come? And just practical impact of what it means and how it gets remedied.

我只是對新聞稿中關於其中一項再保險交易的某些會計處理存在重大缺陷的其他評論有疑問。我想，您能否向我們介紹一下，問題一是 6 個月的淨收入被誇大了 1,040 萬美元。這是否反映在我們在 9/30 新聞稿中看到的股本和帳面價值數字中，還是尚未出現？以及它的意義和補救方法的實際影響。

Sure. Yes, sits in there. If you look on Page 15 of the press release, you can see that the second quarter is restated. So the $10.4 million is in there for the 6 months, $10.4 million net income, restating premiums is $12.3 million. That's running through there as well. From a practical perspective, it was an area that was found in the very early days of our close in the third quarter, which we found related to the second quarter. And as you may recall, Matt, because I know you've been covering us for a while, on our Specialty Casualty treaty at least up until this year when the structure changed, it had a significant reinstatement component when we've had some large losses that (inaudible) layer triggers restatements out of the box. We also had this phenomenon in the third quarter of 2021.

當然。是的，坐在那裡。如果您查看新聞稿第 15 頁，您會發現第二季已重述。因此，這 6 個月的淨收入為 1,040 萬美元，淨收入為 1,040 萬美元，重述保費為 1,230 萬美元。這也從那裡經過。從實際角度來看，這是我們在第三季收盤初期發現的一個領域，我們發現它與第二季相關。馬特，你可能還記得，因為我知道你已經報道我們一段時間了，關於我們的特殊傷亡條約，至少到今年結構發生變化時，它有一個重要的恢復部分，當我們有一些大的（聽不清）層的損失觸發開箱即用的重述。我們在2021年第三季也出現過這種現象。

So we had 3 larger losses in the third quarter -- excuse me, in the second and first quarter of this year. I think they were all energy, and that's just the impact of the timing at which we had booked the premiums.

因此，我們在第三季有 3 個較大的虧損——對不起，今年第二季和第一季。我認為它們都是能量，這只是我們預訂保費的時間的影響。

Okay. All right. That's helpful. And then just maybe zoom out a little bit. Frank, you gave some high-level comments just on the state of the market and obviously, things sound like very good. Can you dig in a little bit in kind of as we think about your kind of the specific underwriting divisions, as the markets continue to evolve, what have you seen recently in terms of -- have you seen more opportunity in certain areas and then pulling back and others, or has it been a little more constant over the past several quarters?

好的。好的。這很有幫助。然後可能會縮小一點。弗蘭克，您就市場狀況發表了一些高層評論，顯然，情況聽起來非常好。當我們考慮您的特定承保部門時，您能否深入了解一下，隨著市場的不斷發展，您最近看到了什麼——您是否在某些領域看到了更多機會，然後拉動還是在過去幾個季度中變得更加穩定？

Yes. No, it's a good question, Matt. So I would say very healthy growth opportunities still persist across much of our E&S platform, and we saw that in the third quarter. The majority of our underwriting divisions continue to report solid growth, nearly all divisions reporting positive renewal rate changes. I don't think we've seen any significant change in the opportunity set for the E&S business.

是的。不，這是個好問題，馬特。因此，我想說，我們的 E&S 平台的大部分領域仍然存在非常健康的成長機會，我們在第三季就看到了這一點。我們的大多數核保部門繼續報告穩健成長，幾乎所有部門都報告續保率有正面變化。我認為我們沒有看到 E&S 業務的機會發生任何重大變化。

Our core E&S segment, which, of course, as you know, is all of our E&S underwriting divisions with the exception of commercial auto, that grew at a double-digit clip, so at 10.3%, stand at about 11% year-to-date now, certainly driven by some healthy rate increases. New submissions, I think I referenced in the script, growth for the quarter was up 8.4% over Q3 last year. That's the highest it's been in 2023, which is a great indicator for future growth. And many of our underwriting divisions are certainly growing at an attractive pace, certainly greater than rate increases, including contract binding, sports and entertainment, professional liability, energy.

我們的核心 E&S 部門，當然，如您所知，是我們所有的 E&S 承保部門（商用汽車除外），該部門以兩位數的速度增長，即 10.3%，今年同期增長率約為 11%。 -現在，肯定是受到一些健康的利率成長的推動。我想我在腳本中提到了新提交的內容，該季度的成長率比去年第三季成長了 8.4%。這是自 2023 年以來的最高水平，這是未來成長的一個很好的指標。我們的許多核保部門無疑正在以極具吸引力的速度成長，當然比利率成長更快，包括合約約束、體育和娛樂、專業責任、能源。

And then 2 of our biggest underwriting divisions, General Casualty where we see a lot of opportunity and Manufacturers & Contractors. So it's these types of market dynamics where you get strong rate, healthy submission trends that I think suggests that the conditions should continue to be very favorable as we move into next year. But I guess the other side of that, and I spoke about it is commercial auto. So listen, no surprise your most data point suggests the industry hasn't made a lot of money in the last 5 years in commercial auto. We continue to purposefully reduce the size of our portfolio by being extremely selective, and I would suggest acutely aware of the impact of loss cost trend as well as social inflation. And we're aggressively pushing rate, particularly in the subsectors of the classes that we're most concerned about, and I mentioned food delivery before.

然後是我們最大的兩個承保部門，即我們看到很多機會的普通傷亡部門以及製造商和承包商。因此，正是在這些類型的市場動態中，您可以獲得強勁的利率和健康的提交趨勢，我認為這表明，隨著我們進入明年，條件應該會繼續非常有利。但我想事情的另一面，我談到的是商用車。所以聽著，你的大部分數據點表明該行業在過去 5 年裡在商用汽車領域並沒有賺到很多錢，這並不奇怪。我們繼續透過極其選擇性的方式有目的地減少投資組合的規模，我建議敏銳地意識到損失成本趨勢以及社會通貨膨脹的影響。我們正在積極提高費率，特別是在我們最關心的類別的子行業，我之前提到過食品配送。

And as a result, these types of portfolio management actions, we decreased our writings in the quarter by 44% compared to the prior year quarter. So that resulted in about a 4-point drag on our E&S growth rate. And I would say that will probably continue to be a trend going forward just relative to our views on commercial auto.

因此，在這些類型的投資組合管理行動中，我們本季的寫作量比去年同期減少了 44%。因此，這導致我們的 E&S 成長率下降了約 4 個百分點。我想說，就我們對商用汽車的看法而言，這可能會繼續成為一種趨勢。

The next question comes from the line of Tracy Benguigui from Barclays.

下一個問題來自巴克萊銀行的 Tracy Benguigui。

Congrats on your JRG Re sale announcement. While structurally, the sale will reduce some overhang, I'm wondering if you could walk through why you feel a 0.75x price to book is fair valuation. I get that maybe other runoff deals valuation is in this range, but you do have that LPT in place. And then I'm also kind of thinking about the $93 million net loss or dilution that you talked about. And if I compare that to your tangible common equity, that was $385.5 million. It feels sizable.

恭喜您宣布 JRG Re 出售。雖然從結構上講，此次出售將減少一些懸而未決的問題，但我想知道您是否能解釋為什麼您認為 0.75 倍的預訂價格是合理的估值。我知道其他決選交易的估值可能也在這個範圍內，但你確實有 LPT。然後我也在思考你提到的 9300 萬美元的淨損失或稀釋。如果我將其與有形普通股進行比較，那就是 3.855 億美元。感覺規模很大。

Yes. Let me start with some commentary about how we thought about the transaction. So clearly, we felt, I think the biggest concerns that our investors and other stakeholders in the company had were the questions surrounding our Bermuda Reinsurance segment. So including whether we're going to continue to experience adverse development from prior years, whether we had purchased enough LPT limit from the legacy market and frankly, whether we get to a point where we need to raise additional capital in the event we had to take steps to further shore up the entity.

是的。讓我先評論一下我們對這筆交易的看法。很明顯，我們認為，我認為我們的投資者和公司其他利益相關者最大的擔憂是圍繞我們的百慕達再保險部門的問題。因此，包括我們是否會繼續經歷前幾年的不利發展，我們是否從傳統市場購買了足夠的 LPT 限額，坦白說，如果我們不得不籌集額外資金，我們是否會達到需要籌集額外資金的地步。採取措施進一步支撐該實體。

And so we feel this transaction addresses those risks, removes roughly $400 million of volatile reserves from the balance sheet and again, without the need to raise capital. And after we took the steps to, in the third quarter, sell the renewal rights of our workers' comp portfolio, what we're left with now, James River is now roughly a $1 billion well-performing E&S carrier, recognized as a leader in the sector and one of the few very well-regarded fronting companies. It's been around for a while with a very deep team and a coveted value proposition.

因此，我們認為這項交易解決了這些風險，從資產負債表中消除了約 4 億美元的不穩定準備金，而且無需籌集資金。在我們在第三季採取措施出售工人補償投資組合的續約權（我們現在剩下的）之後，詹姆斯河現在是一家價值約 10 億美元、業績良好的 E&S 承運商，被公認為領導者是該行業中為數不多的備受推崇的前沿公司之一。它已經存在了一段時間，擁有非常深刻的團隊和令人垂涎的價值主張。

But relative to your question, I mean, certainly, we're valuation-sensitive. As for the discount to the entity and the sales price, we analyze industry transaction of this nature that have occurred over roughly the last 15 years. And while this entity is a bit greener in terms of how recently it was writing live business, and I think that's a factor, Tracy, obviously, also solely focused purely on reinsurance.

但相對於你的問題，我的意思是，我們當然對估值敏感。至於對實體的折扣和銷售價格，我們分析了大約過去15年發生的此類性質的行業交易。雖然這個實體在最近編寫即時業務方面有點綠色，我認為這是一個因素，但特雷西顯然也完全專注於再保險。

So we felt the discount to book value is still very comfortably in the range of prior transactions, even with some of the scenarios, the idiosyncrasies that we've just referenced between the LPT limit still there, but the fact that we're not that far removed from being a live underwriting operation, and it is purely Bermuda Reinsurance.

因此，我們認為，在先前的交易範圍內，帳面價值的折扣仍然非常舒適，即使在某些情況下，我們剛剛提到的 LPT 限制之間的特質仍然存在，但事實是我們並非如此它遠非現場承保業務，而是純粹的百慕達再保險公司。

And so taking all that in consideration, in addition to providing a great new home for the entire team of our segment and providing a clean and final break from the business, I think prospectively, the company is just in a much better position with this transaction, simplified and focused on areas where we've got scale and expertise.

因此，考慮到所有這些，除了為我們部門的整個團隊提供一個美好的新家並為業務提供徹底和最終的休息之外，我認為，從長遠來看，該公司在這次交易中處於更好的地位，簡化並專注於我們擁有規模和專業知識的領域。

That was very thoughtful...

那是非常周到的...

Yes. I was just going to add a couple more data points to your questions, if I could. So obviously, the runoff entity, just to get a valuation for a few more points. Obviously, not a place where you see a ton of entity-level runoff transactions, very disparate and the level of liabilities is also in the age of the liability. So just to kind of add on to the 75% of book value metric.

是的。如果可以的話，我只想為你的問題添加更多數據點。顯然，決選實體只是為了獲得更多點的估值。顯然，這不是一個你可以看到大量實體層面徑流交易的地方，它們非常不同，而且負債水平也處於負債時代。所以只是加上 75% 的帳面價值指標。

I think second, the LPT in place, yes, certainly helpful to have the LPT in place, but to some degree it's counterbalanced by, as Frank referenced, the greenness of the reserves. The entity has only been in runoff for a couple of quarters at this point.

我認為第二，LPT 到位，是的，LPT 到位肯定有幫助，但在某種程度上，正如 Frank 所提到的，它被儲備金的綠色程度所抵消。目前，該實體只經歷了幾個季度的流失。

Second, on to the capital question. We certainly have our tangible common equity number spot on. Total shareholders' equity of $562 million and total tangible equity of $530 million we're offloading over $400 million of loss reserves through the transaction against which we hold a significant amount of capital. I think between those two pieces, your capital ratios are not too different from where they are kind of as they net out. Again, those loss reserves against the $93 million discount to book. So hopefully, that helps. Obviously, we hold a lot of capital against those reserves.

其次，關於資本問題。我們當然擁有有形的普通股權益。股東權益總額為 5.62 億美元，有形權益總額為 5.3 億美元，透過我們持有大量資本的交易，我們將擺脫超過 4 億美元的損失準備金。我認為在這兩部分之間，你的資本比率與它們淨值的情況並沒有太大的不同。同樣，這些損失是針對 9300 萬美元的預訂折扣準備的。希望這會有所幫助。顯然，我們在這些儲備中持有大量資本。

No, that's very helpful. So if I piece that all together, I'm wondering if that $93 million net loss could squeeze your underwriting capacity to grow.

不，這非常有幫助。因此，如果我將所有這些綜合起來，我想知道 9,300 萬美元的淨虧損是否會擠壓您的承保能力的成長。

We do not expect it to. Our rating agencies ratios are very consistent with where they have been. And the idea, I think as we said -- as I said in my remarks, is that we contribute that capital down to the U.S. entities, but our premium surplus stayed pretty consistent, but more so looking at the loss reserves to equity metric.

我們不期望它會這樣。我們的評級機構比率與以往非常一致。我認為，正如我們所說，正如我在發言中所說，我們將這些資本貢獻給美國實體，但我們的保費盈餘保持相當穩定，但更重要的是考慮到股權指標的損失準備金。

Again, it's fairly stable so there's no expectation that that's going to squeeze our growth rate, especially with our remaining businesses being effectively more capital light than the reserves in the casualty reinsurance business. I think that's probably the kicker.

同樣，它相當穩定，因此預計這不會擠壓我們的成長率，特別是我們剩餘的業務實際上比傷亡再保險業務的準備金更輕。我想這可能就是關鍵。

Okay. And can you share some color on your E&S retention that dipped due to a new casualty reinsurance treaty?

好的。您能否分享一下由於新的傷亡再保險條約而導致的 E&S 保留率下降的情況？

Yes, I can give you some color there. So you'll recall last year at the midyear point, we increased our retention on one product line, specifically our Excess Casualty Treaty, by 10 percentage points at the midyear, and that drove a higher net to gross retention over the last 4 quarters. But at the midyear 2023 renewal, we undertook a very broad review of our E&S seeded reinsurance structure and looked at a goal of trying to improve our volatility protection and maximizing underwriting income while certainly utilizing the strong relationships that we have with our reinsurance partners.

是的，我可以給你一些顏色。因此，您會記得去年年中時，我們將一條產品線（特別是我們的《超額傷亡條約》）的保留率在年中提高了10 個百分點，這在過去4 個季度推動了更高的淨保留率與總保留率。但在2023 年年中續保時，我們對我們的E&S 種子再保險結構進行了非常廣泛的審查，並著眼於努力改善我們的波動性保護並最大化承保收入，同時充分利用我們與再保險合作夥伴之間的牢固關係。

So this new structure the way we think about it allows us to make changes based on market conditions or reinsurer appetite and ultimately the performance of the portfolio. So the new treaty provides broader quota share coverage across all casualty lines, including primary participations. So that's different. And in doing so, it provides us basically with risk sharing across what I'll call maybe some of the more volatile elements of the E&S portfolio as well as some of our larger lines such as General Casualty and Manufacturers & Contractors. And fortunately, it gives us a very favorable ceding structure and economics relative to both ceding commissions as well as first dollar protection in areas that we didn't have before.

因此，我們思考這種新結構的方式使我們能夠根據市場狀況或再保險公司的興趣以及最終投資組合的表現做出改變。因此，新條約為所有傷亡類別提供了更廣泛的配額份額覆蓋範圍，包括主要參與。所以那是不同的。這樣做，它基本上為我們提供了風險分擔，包括我所說的 E&S 投資組合中一些波動性較大的元素，以及我們一些較大的產品線，例如普通傷亡險和製造商與承包商。幸運的是，它為我們提供了非常有利的讓渡結構和經濟性，相對於讓渡佣金以及我們以前沒有的領域的第一筆美元保護。

So the other point that is worth noting particularly in this quarter, is that we expanded our use of excess of loss reinsurance protection, which allowed us to move to that flat rated structure, I think Sarah kind of spoke to it a bit earlier. So very notably, that means that the reinstatement charges and volatility that have impacted our results in Excess Energy go away for business written under the new treaty structure.

因此，本季特別值得注意的另一點是，我們擴大了對超額損失再保險保護的使用，這使我們能夠轉向統一評級結構，我認為莎拉早些時候就談到過這一點。非常值得注意的是，這意味著影響我們過剩能源績效的恢復費用和波動性對於根據新條約結構制定的業務將消失。

So had the losses that we wrote in prior accident years that were reserved this year been written under this structure, there would be no follow-up reinstatement charges. So overall, we're very pleased with the outcome and would expect, I think, the third quarter to be a pretty reasonable proxy relative to the net to gross retention going forward.

因此，如果我們在今年保留的之前事故年度中記入的損失按照這種結構記入，則不會有後續的恢復費用。因此，總的來說，我們對結果非常滿意，我認為，相對於未來的淨保留率和總保留率，第三季將是一個相當合理的指標。

You mentioned that the ceding commissions were favorable. So that's relative to your policy acquisition costs. Do you still see a nice spread?

你提到放棄佣金是有利的。所以這與您的保單獲取成本有關。您還看到不錯的傳播嗎？

Yes. Well, I would say despite I think what's -- there's some headwinds in the reinsurance market, I think overall, on the treaties that we place and there's a number of them that make up this structure. I think we had a slight pickup of several basis points.

是的。好吧，我想說的是，儘管我認為，總體而言，再保險市場存在一些阻力，我們簽訂的條約有很多，構成了這個結構。我認為我們的幾個基點略有回升。

Your next question comes from the line of Brian Meredith from UBS.

您的下一個問題來自瑞銀集團 (UBS) 的布萊恩梅雷迪思 (Brian Meredith)。

A couple of quick ones here for you. Frank, I am just curious, given that you had adverse reserve development in the E&S segment, I was a little surprised that you took down the loss picks as much as you did this year. I mean it doesn't seem -- and I'm wondering, was there a change in kind of reserving philosophy at James River used to hold picks fairly high and have that adverse development coming forward? Just maybe a little more into kind of the thought process behind how those 2 fit together or if they fit together at all?

這裡有一些快速的內容供您參考。弗蘭克，我只是很好奇，考慮到您在 E&S 領域的儲備發展不利，我對您像今年一樣減少損失選擇感到有點驚訝。我的意思是，似乎沒有——而且我想知道，詹姆斯河過去的保留理念是否發生了變化，過去，選秀權相當高，並且出現了不利的發展？也許只是更多地了解這兩者如何結合在一起或它們是否完全結合在一起背後的思考過程？

Yes, I can at least start here. I think it's similar to my earlier comments that we have been very conservative in our recent accident year loss picks at a time when we've just done so much relative to additional underwriting oversight and discipline in the organization, have taken a lot of steps relative to exclusionary language. We've gotten out of a number of loss leaders in that specific portfolio over the last couple of years and had given that some time to kind of set in. And so the benefits of those actions plus all the rate that we've taken in these market conditions made us feel comfortable that was an appropriate step to take.

是的，我至少可以從這裡開始。我認為這與我之前的評論類似，即我們在最近的事故年度損失選擇中一直非常保守，而我們剛剛在組織中進行了與額外承保監督和紀律相關的大量工作，並採取了很多相對的步驟排他性語言。在過去的幾年裡，我們已經擺脫了該特定投資組合中的一些虧損領先者，並給了一些時間來適應。因此，這些行動的好處加上我們採取的所有利率這些市場狀況讓我們感到放心，這是採取的適當步驟。

Great. And then one other just quick one here. The internal control weakness. Is that something that the rating agencies have been discussed with the rating agencies as well. I'm just curious. I know you talked about the reinsurance transaction, but just the reaction on that.

偉大的。然後是另一個，這裡只是快速的一個。內部控制薄弱。這也是評等機構與評等機構討論過的事情嗎？我只是好奇。我知道您談到了再保險交易，但只是對此的反應。

No, absolutely, Brian. We have a very regular quarterly dialogue with them, and we went through all of that a few days ago, for sure.

不，絕對，布萊恩。我們每季都會與他們進行定期對話，當然，我們在幾天前就完成了所有這些對話。

Our next question comes from the line of Meyer Shields from KBW.

我們的下一個問題來自 KBW 的 Meyer Shields。

Congratulations on the Casualty redeal. I was hoping, Sarah, can you for modeling purposes, give us a sense as to the size of the investment portfolio that's being transferred to Fleming?

恭喜傷亡重做。莎拉，我希望您能出於建模目的，讓我們了解轉移給弗萊明的投資組合的規模嗎？

Sure. The investment portfolio at JRG Re is about $550 million, Meyer. So it's about 25% of our overall portfolio, give or take.

當然。 Meyer 表示，JRG Re 的投資組合約為 5.5 億美元。因此，無論給予或接受，它大約占我們整體投資組合的 25%。

Okay, perfect. And Frank, I think in your comments you mentioned pulling back in commercial auto within E&S. It's going to be the -- I guess, ignoring the Uber stuff that's gone, can you give us a sense of how big the current commercial auto reserves are?

好的，完美。 Frank，我想您在評論中提到了 E&S 內撤回商用汽車業務。我想，忽略已經消失的 Uber 的東西，你能讓我們了解目前的商用車儲備有多大嗎？

I don't have that in front of me right now. I mean the portfolio itself is not that significant, but I know that's not your question. I mean it's probably about a $30 million, $35 million portfolio. I don't have the reserve numbers in front of me. You're talking about non-rideshare portfolio, specifically?

我現在面前沒有這個。我的意思是，投資組合本身並不那麼重要，但我知道這不是你的問題。我的意思是，這可能是一個價值 3000 萬至 3500 萬美元的投資組合。我面前沒有預留號碼。您具體是在談論非共乘投資組合嗎？

Yes, exactly. Yes.

對，就是這樣。是的。

Sarah, I don't have it.

莎拉，我沒有。

I don't have that in front of me.

我面前沒有那個。

I'm sorry, we'll have to follow up with you on that.

抱歉，我們必須跟進您的情況。

(Operator Instructions) The next question comes from the line of Casey Alexander from Compass Point.

（操作員說明）下一個問題來自 Compass Point 的 Casey Alexander。

Two questions. One, the sale of the Casualty Re business is also moving a lot of people. How should we expect the expense ratio to develop once the sale is complete?

兩個問題。第一，傷亡再保險業務的出售也讓許多人感動。銷售完成後，我們該如何預期費用比率的發展？

Sure, Casey. It's actually 6 people, 6 people in Bermuda. So it's a fairly small team. I wouldn't think there would -- there's going to be an impact on the expense ratio because -- more so because of the commission structure in the reinsurance business historically. But as you know that business is running off. So I wouldn't expect much of any impact on the expense ratio going forward.

當然，凱西。其實是6個人，6個人在百慕達。所以這是一個相當小的團隊。我認為不會對費用比率產生影響，因為再保險業務歷史上的佣金結構更是如此。但正如你所知，生意正在流失。因此，我預計未來的費用率不會受到太大影響。

Okay. Then one other question. Is this -- the $7 million development on the Casualty Re LPT with $38 million remaining, the way that's been developing over the last several quarters argues that you may actually be taking losses on that book again by 2025. Would that be your expectation at this point in time?

好的。然後還有一個問題。這是嗎？Casualty Re LPT 的開發費用為700 萬美元，剩餘3800 萬美元，過去幾個季度的發展方式表明，到2025 年，您實際上可能會再次在這本書上蒙受損失。這是您對此的期望嗎？時間點？

Well, Casey, we did announce the transaction to sell the balance sheet. We would hope to sell it -- per our press release, we'd hope to close that transaction in the next quarter. So after -- by that construct, we would not have any exposure to that balance sheet, to that business, starting in the second quarter of 2024 if we're able to close it like along that schedule.

凱西，我們確實宣布了出售資產負債表的交易。我們希望出售它——根據我們的新聞稿，我們希望在下個季度完成該交易。因此，根據這種結構，從 2024 年第二季度開始，如果我們能夠按照時間表關閉它，我們將不會對該資產負債表、該業務有任何敞口。

There are no further questions at this time. I'd now like to turn the call over back to our CEO, Frank D'Orazio. Sir?

目前沒有其他問題。現在我想將電話轉回給我們的執行長 Frank D'Orazio。先生？

Thank you. I want to thank everyone for their time today and for the questions we received on the call. We certainly look forward to speaking with you all in 2024 to discuss our fourth quarter and full year results. Enjoy the rest of your day.

謝謝。我要感謝大家今天抽出寶貴的時間以及我們在電話會議中收到的問題。我們當然期待在 2024 年與大家討論我們的第四季和全年業績。享受你一天剩下的時間。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。