James River Group Holdings Inc (JRVR) 2025 Q3 法說會逐字稿

Good morning. My name is Carrie, and I will be your conference operator today. At this time, I would like to welcome everyone to the James River Group Q3 2025 earnings conference call. (Operator Instructions)

早安.我是Carrie，今天將擔任本次電話會議的接線生。現在，我謹代表James River Group歡迎各位參加2025年第三季財報電話會議。 （接線生操作說明）

I would now like to turn the call over to Bob Zimardo with Investor Relations. Please go ahead.

現在我將把電話轉交給投資者關係部的鮑伯‧齊馬爾多。請開始吧。

Thank you, operator, and good morning, everybody, and welcome to the James River Group third quarter 2025 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.

謝謝接線員，大家早安，歡迎參加詹姆斯河集團2025年第三季財報電話會議。在本次會議中，我們將發表一些前瞻性聲明。這些聲明是基於我們目前的信念、意圖、預期和假設，但這些信念、意圖、預期和假設受到各種風險和不確定性的影響，實際結果可能與這些聲明有重大差異。

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 SEC. We do not undertake any duty to update any forward-looking statements. In addition, during this presentation, we may reference non-GAAP financial measures.

有關此類風險和不確定性的討論，請參閱昨日發布的盈利報告中關於前瞻性陳述的警示性聲明，以及我們最新提交給美國證券交易委員會（SEC）的10-K表格及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義務。此外，在本次示範中，我們可能會提及非GAAP財務指標。

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

請參閱我們的獲利新聞稿，以了解這些數據與公認會計準則 (GAAP) 的核對情況，該新聞稿副本可在我們的網站上找到。最後，除非出於盈利新聞稿中所述原因另有說明，否則所有提及的承保業績比率均指我們持續經營的業務，且不涉及損失組合轉移的追溯性再保險會計處理。

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

現在我將把電話交給 James River Group 的執行長 Frank Dâ Orazio。

Thank you for that introduction, Bob. Good morning, everyone, and welcome to James River's third quarter 2025 earnings call. I'm pleased to be joining you today on this election day morning and would like to start by emphasizing the fact that we feel a focus on profitability above all else, is a critical North Star for success in a transitioning property and casualty marketplace.

謝謝鮑勃的介紹。大家早安，歡迎參加詹姆斯河保險公司2025年第三季財報電話會議。很高興今天能在選舉日這天早上與大家見面，首先我想強調的是，我們認為，在不斷變化的財產和意外傷害保險市場中，盈利能力始終是成功的關鍵所在。

We believe the underwriting and derisking actions that we've taken throughout James River demonstrate that commitment and the fruits of our labor are beginning to show up in our operating results, specifically in the company's bottom line performance that we'll discuss today. As usual, I'll start the conversation, and we'll turn it over to Sarah before we open up the discussion for questions.

我們相信，我們在詹姆斯河公司採取的承保和風險規避措施表明了我們的承諾，而我們的努力也開始體現在我們的經營業績中，尤其是在我們今天將要討論的公司淨利潤方面。照例，我會先發言，然後我們把發言權交給莎拉，之後再開放提問環節。

We ended the third quarter with an annualized adjusted net operating return on tangible common equity of 19.3%, well above our mid-teens return target and with $0.32 per share of adjusted net operating income. Notably, tangible common book value per share has grown 23.4% year-to-date. Our group combined ratio of 94% is down over 40 percentage points from the 135.5% reported in the third quarter of 2024 and also down more than 4 percentage points compared to the 98.6% we reported in the second quarter of this year.

第三季末，我們調整後的有形普通股淨經營年化報酬率為19.3%，遠高於我們預期的15%左右的報酬率目標，調整後每股淨經營收入為0.32美元。值得注意的是，年初至今，每股有形普通股帳面價值成長了23.4%。集團綜合比率為94%，較2024年第三季的135.5%下降了40多個百分點，也較今年第二季的98.6%下降了4多個百分點。

We're very proud of our deliberate efforts to significantly reduce our expense ratio now at 28.3%, reflecting a decrease of more than 3 percentage points compared to the prior year quarter and 2 percentage points lower than our second quarter this year. Since the start of the year, we have taken actions to make lasting changes and increase efficiency across our organization with savings largely attributed to headcount and professional fee reductions.

我們非常自豪地宣布，我們已透過一系列努力大幅降低了費用率，目前費用率已降至28.3%，較上年同期下降超過3個百分點，較今年第二季度下降2個百分點。自年初以來，我們採取了一系列措施，力求在整個組織內實現持久變革並提高效率，而節省的成本主要歸功於人員精簡和專業服務費用的減少。

These savings, coupled with the impact of our anticipated redomicile have created material and tangible efficiencies for the company going forward. In a few minutes, Sarah will provide additional context and detail regarding these actions. As alluded to, James River continues to build a resilient E&S business that prioritizes profitability.

這些節省的成本，加上我們預期中的公司遷址帶來的影響，為公司未來的發展創造了實質的、實際可見的效率提升。稍後，Sarah 將就這些舉措提供更多背景資訊和細節。如前文所述，James River 將繼續建立一個穩健的勘探與永續發展業務，並將獲利能力放在首位。

This focus is extremely relevant in today's transitioning market where competition continues to increase, particularly in larger accounts and across property risks where rate pressures persist. While our portfolio is not immune to these headwinds, we remain constructive on the market opportunity ahead given our positioning, which emphasizes small- to medium-sized casualty risks and specialty third-party lines with limited property exposure.

在當今競爭日益激烈的市場轉型時期，尤其是在大型客戶和財產險領域，費率壓力持續存在，這種關注點顯得尤為重要。儘管我們的投資組合也無法完全免受這些不利因素的影響，但鑑於我們專注於中小型意外險和財產險敞口有限的專業第三方險業務的定位，我們對未來的市場機會依然保持樂觀。

As we have previously discussed, we continue to be intentional in our shift to smaller accounts with lower average premiums, which we believe have historically proven to be more profitable than larger account segments of the market. Our segment leadership reorganization now complete has created a more agile structure focused on improving speed while driving execution and accountability.

正如我們之前討論過的，我們將繼續有意識地轉向保費較低的小額帳戶，我們相信，從歷史數據來看，小額帳戶比大額帳戶更具盈利潛力。我們目前已完成的業務部門領導層重組，打造了一個更靈活的組織架構，旨在提高效率，同時加強執行力和責任落實。

Underwriting teams have leaned into smaller accounts and delivered strong performance in our specialty divisions. Empowered by technology and data, our underwriters are acting decisively and efficiently with continued overwhelming support from our wholesale broker partners. While our innovation journey continues, we're focused on streamlining our workflows with the benefit of technology and greater efficiency in our underwriting operations.

核保團隊已將重心轉向小型客戶，並在專業領域取得了優異的績效。在技​​術和數據的賦能下，我們的核保人員在批發經紀合作夥伴的持續大力支持下，採取了果斷且有效率的行動。在不斷創新的同時，我們致力於利用技術優勢簡化工作流程，提高核保營運效率。

In our E&S segment, we remain focused on profitable underwriting production, business mix improvements and appropriate underwriting governance. Year-to-date, rates are up 11% across casualty lines in the aggregate, moderating since last quarter, but still comfortably in excess of our view of loss cost trends.

在我們的超額及特殊責任險業務板塊，我們依然專注於盈利性承保、優化業務組合以及完善承保管理。今年迄今，各類意外險險種的費率整體上漲了11%，較上季有所放緩，但仍遠高於我們對損失成本趨勢的預期。

For the quarter, casualty rates increased 6.1% with notable gains in commercial auto at plus 29.8%, energy at plus 19%, excess casualty at plus-10% and general casualty at plus 7.9%. Submission volumes, which rose 3% over the prior year quarter, are up nearly 5% year-to-date, while our average renewal premium size is down 12.7%, also year-to-date.

本季，意外險費率上漲6.1%，其中商業汽車險漲幅顯著，達29.8%，能源險漲幅達19%，超額意外險漲幅達10%，一般意外險漲幅達7.9%。投保量較上年同期成長3%，年初至今累計成長近5%，而平均續保費年減12.7%。

Over the past several years, we've worked diligently to refine our underwriting appetite, institute tools for better performance monitoring and further embed the culture of enterprise risk management throughout the organization. These efforts are paying off, particularly in the most recent accident years.

過去幾年，我們致力於優化核保風險承受能力，建立更有效的績效監控工具，並在整個組織內進一步貫徹企業風險管理文化。這些努力正在取得成效，尤其是在最近幾年的事故發生率方面。

After 33 months, the reported loss ratio for the 2023 accident year reflects a 21% improvement compared to 2020 despite a significant increase in earned premium. Claim count decreases for the same period are in the low to mid-teen percentages as well. This performance gave us the confidence to modestly increase our net retention at our midyear reinsurance treaty renewal.

33個月後，儘管已賺保費大幅成長，但2023事故年度的報告賠付率較2020年仍下降了21%。同期索賠數量也下降了十幾個百分點。這項業績使我們有信心在年中再保險合約續約時小幅提高淨自留額。

This quarter, the E&S net retention on the portfolio exceeded 58% for the first time in over two years, up from 56% in the same quarter last year. From a production standpoint, gross written premiums declined 8.9% compared to the prior year quarter. However, production dynamics were not uniform in the segment.

本季，投資組合的超額及特殊險淨留存率兩年多來首次超過58%，高於去年同期的56%。從保費收入來看，毛保費收入較上年同期下降8.9%。然而，該業務板塊的保費收入走勢並不均衡。

Six of our 15 underwriting departments showed growth led by our Specialty division, which grew by 4% in aggregate compared to the prior year quarter and includes Allied Health, Energy, Environmental, Life Sciences, management liability and professional liability. Within Specialty, Allied Health has now grown 20-plus percent for a second consecutive quarter, while Energy and Life Sciences grew at 16% and 10%, respectively.

我們15個承保部門中有6個實現了成長，其中以特種險部門最為突出，該部門整體增長4%，涵蓋輔助醫療、能源、環境、生命科學、管理責任險和職業責任險。在特種險部門內部，輔助醫療業務已連續第二季成長超過20%，能源和生命科學業務分別成長了16%和10%。

These departments are delivering strong performance with what we believe are attractive margins, and we're encouraged by the continued opportunity these divisions hold. Our Excess Casualty and general casualty portfolios were down 4% and 2%, respectively, reflecting increased competition as well as our intentional focus on smaller accounts and in Nexus Casualty specifically, our more conservative positioning on large commercial auto fleets, acknowledging many of the same unattractive dynamics that market competitors continue to report.

這些部門業績表現強勁，我們認為利潤率頗具吸引力，我們對這些部門的持續發展潛力感到鼓舞。我們的超額責任險和一般責任險組合分別下降了4%和2%，這反映出競爭加劇，以及我們有意將業務重心放在小型客戶身上。尤其是在Nexus Casualty方面，我們對大型商業汽車車隊採取了更保守的策略，因為我們意識到市場競爭對手也面臨許多類似的不利因素。

Although a small line of business for us, rates were down 19.6% and subsequently, gross premiums decreased by 38.2% in our excess property unit, where for the second year in a row, we continue to see greater market pressures than anywhere else in our portfolio due to a significant increase in market appetite and capacity.

雖然這部分業務對我們來說規模較小，但費率下降了 19.6%，隨後，我們的超額財產險部門的總保費下降了 38.2%。由於市場需求和容量的大幅增長，我們連續第二年看到該部門面臨的市場壓力比我們投資組合中的其他任何地方都大。

However, the biggest driver of decreased production for the segment in the quarter was in our Manufacturers and Contractors division, which decreased its gross premium writings by 30% or $13.5 million. While we have seen increased competition in certain pockets of the market, this is an area where we have taken direct underwriting response to an increased frequency of low severity claims over the last several quarters despite frequency being down across our other 14 underwriting departments.

然而，本季該業務板塊產量下降的最大驅動因素來自我們的製造商和承包商部門，該部門的毛保費收入下降了30%，即1,350萬美元。儘管我們看到市場某些領域的競爭加劇，但在過去幾個季度裡，儘管我們其他14個承保部門的索賠頻率有所下降，但我們仍對該部門採取了直接的承保應對措施，以應對低嚴重程度索賠頻率的增加。

While we believe some of the increased frequency may be attributable to the Florida statute change introduced last year, we've taken deliberate actions to reduce our exposure to subcontractors serving the tracked home building space as we believe this subclass has been a driver of the uptick we've experienced in low severity frequency.

雖然我們認為部分增加的頻率可能歸因於去年佛羅裡達州引入的法規變更，但我們已經採取了有意識的措施來減少我們對服務於軌道式住宅建築領域的承包商的風險敞口，因為我們認為這一子類別是導致我們所經歷的低嚴重程度頻率上升的驅動因素。

As mentioned, while E&S gross premiums declined by 8.9% in the quarter, net earned premium grew 1%, which helped to drive $16.4 million in underwriting income and a much improved 88.3% combined ratio. Our accident year loss ratio of 63.5% was 1.2 points lower than the prior year quarter simply due to business mix, but consistent on a year-to-date basis.

如前所述，儘管本季超額及特殊險毛保費下降了8.9%，但淨已賺保費增長了1%，這推動了1640萬美元的承保收入，並使綜合比率大幅改善至88.3%。由於業務組合的變化，我們的事故年度賠付率為63.5%，比上年同期下降了1.2個百分點，但與年初至今的水平基本持平。

As our press release highlighted, during the quarter, we completed our annual detailed valuation review or DVR process. As a reminder, the DVR is the first principles ground-up review of all assumptions and selections underpinning our E&S segment's reserve base. By definition, our actuaries complete this in-depth study once a year during the third quarter.

正如我們的新聞稿所述，本季我們完成了年度詳細估值審查（DVR）流程。再次提醒，DVR 是對我們環境及社會（E&S）業務板塊準備金基礎的所有假設和選擇進行自下而上的全面審查。根據規定，我們的精算師每年第三季都會完成這項深入研究。

This review of our entire E&S reserve balance provides a detailed analysis of the assumptions underlying reserves, adding additional rigor to our internal quarterly actuarial processes. While the company has long completed its DVR parameter process during the third quarter, this is the third annual review of what has evolved into a much deeper and more granular process.

這次對整個環境及社會儲備餘額的審查，對儲備金所依據的假設進行了詳細分析，進一步加強了我們內部季度精算流程的嚴謹性。雖然該公司長期以來都在第三季完成動態風險價值（DVR）參數調整流程，但此次是該流程的第三次年度審查，該流程已發展成為一個更加深入、更加細緻的過程。

The outcome of our DVR process is a $51 million charge in accident years 2022 and prior, which we ceded to the legacy covers that we purchased last year. The largest portion of the charge is driven by other liability occurrence and product completed operations related to accident years 2020 to 2022.

我們的DVR流程結果是，2022年及以前事故年度需提列5,100萬美元的費用，這筆費用已轉嫁給我們去年購買的舊保險。此費用的大部分源自於2020年至2022年事故年度的其他責任事故和產品完工責任。

In essence, we feel the legacy covers are serving their purpose as intended, responding to any development from older years as they reach maturity or allowing for the company's more recent years to age favorably given the numerous underwriting actions and positive indicators reflected in those years.

從本質上講，我們認為這些遺留保險正在發揮其預期的作用，能夠應對過去幾年保險發展成熟後可能出現的任何變化，或者鑑於公司近年來採取的眾多承保措施和積極指標，使公司近年的保險能夠以有利的方式發展。

I should point out that while it varies by line of business for the majority of our portfolio, our tail continues to be characterized as 75% developed at about five years, meaning that the underwriting years of concern, 2022 and prior are largely already at that vintage or older. we continue to see a stark contrast in the indicators and performance of the portfolio between the 2022 and prior years and the positive performance trends of the more recent accident years of 2023 forward.

我需要指出的是，雖然我們大部分投資組合的情況因業務線而異，但我們的尾部保單仍然有75%在大約五年內發展成熟，這意味著我們關注的承保年份（2022年及以前）大部分保單已經達到或超過這個發展階段。我們持續看到，2022年及以前年份的保單指標和績效與2023年及以後事故發生年份的正面績效趨勢之間有顯著差異。

Claims frequency is meaningfully down in those most recent years as our incurred losses despite meaningful portfolio growth since 2020. Importantly, we have not experienced any adverse development for the period of 2023 through the current accident year, and our diagnostics continue to substantiate our favorable view of those years.

儘管自 2020 年以來投資組合實現了顯著增長，但近年來索賠頻率顯著下降，我們也因此遭受了損失。重要的是，在 2023 年至當前事故年度期間，我們沒有遇到任何不利的發展，我們的診斷結果也繼續證實了我們對這些年份的樂觀預期。

Moving on from E&S. As discussed in prior quarters, we are actively managing our specialty admitted fronting business with a focus on expense management and significantly reduced net retentions as we take meaningful underwriting actions based on our view of the sector's dynamics and a decisive shift away from commercial auto.

拋開特殊及特殊險業務不談。正如前幾季所討論的，我們正在積極管理我們的專業承保業務，重點是費用控制和大幅降低淨留存率，同時根據我們對行業動態的看法採取有意義的承保措施，並果斷地減少對商業汽車保險的投入。

As a result, segment expenses have declined 44% year-to-date as we've continued to manage expenses aggressively while also reducing our net premium retention to below 5% this quarter. Despite the reductions in both gross premiums and net retentions, we continue to renew programs that meet our underwriting criteria while selectively reviewing new opportunities.

因此，由於我們持續積極控製成本，同時本季將淨保費留存率降至5%以下，年初至今，該業務板塊的費用已下降44%。儘管毛保費和淨留存率均有所下降，但我們仍會繼續續保符合核保標準的保單，並選擇性地評估新的承保機會。

Looking ahead, our strategy remains sharply focused on profitability. We expect to maintain discipline, continue our deliberate mix shift towards smaller, more profitable accounts and uphold underwriting guardrails in challenging areas. We are closely monitoring casualty pricing trends, submission velocity and quote-to-bind efficiency to ensure we remain data-driven and responsive to market signals. Expense management will remain a core area of focus as we seek to improve operational leverage without compromising the quality of our underwriting or claim service.

展望未來，我們的策略仍將高度聚焦於獲利能力。我們將繼續保持嚴謹的運營，穩步調整業務結構，轉向規模較小但盈利能力更強的業務，並在充滿挑戰的領域堅守承保準則。我們將密切關注意外險定價趨勢、投保速度以及報價到承保的效率，以確保我們始終以數據為導向，並對市場訊號做出快速反應。在不影響承保或理賠服務品質的前提下，費用管理仍將是我們關注的核心領域，我們將努力提升營運效率。

Now I'll turn the call over to Sarah to expand on several of the areas that we referenced this morning before we open up the call to questions.

現在我將把電話交給 Sarah，讓她詳細說明我們今天早上提到的幾個方面，然後再開放提問環節。

Thanks very much, Frank. Good morning, everyone, and thanks for joining us today. We continue to make notable progress on our strategic goals through 2025 in our efforts to increase lasting operating efficiency while demonstrating the stability of our balance sheet. This quarter, we're reporting a small net loss from continuing operations available to common shareholders of $376,000 or about $0.01 per diluted share.

非常感謝，弗蘭克。大家早安，感謝各位今天參加我們的會議。在努力提高持續營運效率並展現資產負債表穩定性的同時，我們正朝著2025年策略目標穩步邁進，並取得了顯著進展。本季度，我們報告歸屬於普通股股東的持續經營淨虧損為37.6萬美元，約合每股攤薄虧損0.01美元。

On an adjusted net operating basis, we're reporting $17.4 million or $0.32 of income per share. As Frank mentioned, our annualized operating return on tangible common equity for the quarter was 19.3% and tangible common book value per share increased 23.4% from the start of the year to $8.24 a share as we've made meaningful strides to grow our capital base.

經調整後的營業淨收入為1740萬美元，即每股收益0.32美元。正如弗蘭克所提到的，本季我們按年化計算的有形普通股股東權益回報率為19.3%，每股有形普通股帳面價值較年初增長23.4%，達到每股8.24美元，這得益於我們在擴大資本基礎方面取得的顯著進展。

Strong investment results and a meaningful improvement in AOCI from market interest rate reductions this quarter provided some uplift. Our third quarter combined ratio of 94% consists of a 65.7% loss ratio and a 28.3% expense ratio much improved from the 135.5% we reported in the prior year quarter, and that's really driven by strong performance across our E&S segment.

本季強勁的投資業績以及市場利率下調帶來的其他綜合收益（AOCI）顯著改善，為業績提供了一定的提振。我們第三季的綜合比率為94%，其中損失率為65.7%，費用率為28.3%，較上年同期的135.5%大幅改善，這主要得益於我們E&S業務板塊的強勁表現。

On a year-to-date basis, we reported an expense ratio of 30.5%, which is below our full year 31% target. Just as a reminder, we started the year with an expense ratio of 32.7%. Year-to-date, we've recorded lasting savings of about $8 million coming out of all three of our reportable segments, E&S, Specialty Admitted and Corporate. The largest area of reduction has come from reduced compensation expense across the group.

年初至今，我們的費用率為30.5%，低於全年31%的目標。作為參考，年初時我們的費用率為32.7%。年初至今，我們在三大報告業務部門（E&S、專科住院部和公司）共實現了約800萬美元的持續性成本節約。其中，最大的節約來自集團整體薪資支出的降低。

And notably, we began the year with 640 full-time employees and had 590 or 50 fewer by the end of the third quarter. We've also reduced costs meaningfully in areas like rent and professional fees. The 28.3% group expense ratio this quarter is more notable given the decline in gross written and net earned premium quarter-over-quarter, up 28% and 7%, respectively.

值得注意的是，年初我們擁有640名全職員工，到第三季末減少到590名，減少了50人。我們也在租金和專業服務費等領域大幅降低了成本。鑑於本季度毛保費收入和淨已賺保費分別較上季成長28%和7%，而集團費用率卻下降，因此本季28.3%的費用率就顯得尤為引人注目。

Reviewing by segment, quarter-over-quarter, E&S had a $3 million G&A reduction, Specialty admitted about $2.5 million; and corporate, a little over $1 million. Year-to-date, corporate expenses have declined 7.5% compared to the same period in 2024, well within the 5% to 10% decline in corporate expenses we're working towards for the full year.

以業務部門季比來看，E&S部門的行政管理費用減少了300萬美元，特種產品部門減少了約250萬美元，公司總部減少了略高於100萬美元。今年迄今為止，公司總部費用較2024年同期下降了7.5%，遠低於我們全年設定的5%至10%的降幅目標。

And finally, on expenses, our planned redomicile to bring our holding company from Bermuda to Delaware is expected to be complete this coming Friday, November 7. That will bring significantly more expense benefits via a more efficient structure and a lower expected effective tax rate. We expect that this transition will be meaningfully accretive to our fourth quarter earnings and going forward, bring our effective tax rate closer in line with the US statutory rate.

最後，在關於費用方面，我們計劃將控股公司從百慕達遷至德拉瓦州，預計將於本週五（11月7日）完成。此舉將透過更有效率的架構和更低的預期實際稅率，顯著降低費用支出。我們預計，這項調整將顯著提升第四季獲利，並使我們的實際稅率在未來更接近美國法定稅率。

As mentioned previously, the redomicile is expected to bring a onetime tax savings of $10 million to $13 million during the fourth quarter of 2025 and ongoing quarterly expense savings of between $3 million and $6 million going forward. Let me quickly wrap up my comments with investments. We reported $21.9 million of net investment income, up from $20.5 million in the previous quarter.

如前所述，此次公司遷址預計將在2025年第四季一次性節省1,000萬至1,300萬美元的稅款，並在未來每季持續節省300萬至600萬美元的支出。最後，我想快速總結一下投資方面的狀況。我們報告的淨投資收益為2190萬美元，高於上一季的2050萬美元。

The portfolio remains conservatively positioned with an average credit rating of A+ and a duration of 3.4 years. We've been strategically reducing our allocation to cash and short-term investments during the year taking advantage of strong relative value opportunities across our fixed income allocation, where we've been putting money to work at an average book yield of 5.2%, which is well above our current book yield of 4.5%.

此投資組合維持保守的配置策略，平均信用評等為A+，久期為3.4年。年內，我們策略性地降低了現金和短期投資的配置比例，充分利用了固定收益投資組合中相對價值強勁的投資機會。目前，固定收益投資組合的平均帳面收益率為5.2%，遠高於我們目前的4.5%。

And we've been doing this while not sacrificing credit quality. I do expect a more favorable quarter-over-quarter comparison of NII next quarter, given the impact from the payment of the retroactive structures that we purchased in the second half of 2024.

而且我們一直都在確保信貸品質的前提下做到這一點。考慮到我們在2024年下半年收購的追溯性結構付款的影響，我預計下一季的淨利息收入將比去年同期更可觀。

With all that, I'd like to turn the call back over to the operator and open the line for questions.

綜上所述，我想把電話轉回給接線生，並開放線路接受提問。

(Operator Instructions)

（操作說明）

Mark Hughes, Truist Securities.

馬克·休斯，Truist Securities。

Yeah, thank you, good morning. Frank, you had spoken about the recent accident years, 2023 and forward, you're seeing a much more favorable loss experience. Any way to distinguish how much of that might be just your underwriting actions versus the broader market trends perhaps in the last couple of years?

是的，謝謝，早安。弗蘭克，您剛才提到，從2023年到現在，事故發生率明顯下降，損失情況也好多了。您能否區分一下，這其中有多少是您的核保策略帶來的，又有多少是過去幾年整體市場趨勢造成的？

Thanks, Mark. I think our view is it's heavily tied to the underwriting actions that we took. It's such a dichotomy in terms of experience. We kind of went through the number just relative to the decrease in claim counts as well as the reduction in incurred losses. So if you remember, we instituted a number of sublimits and exclusions. We exited certain classes.

謝謝，馬克。我認為我們的觀點是，這與我們採取的核保措施密切相關。就經驗而言，情況截然不同。我們仔細分析了索賠數量的下降以及已發生損失的減少。如果您還記得，我們​​實施了一些子限額和除外責任，並退出了某些險種。

We really, at the same time, also improved our performance monitoring and the rate in which we do that and some of the processes relative to feedback loops within the organization. So I would say it is directly tied to the underwriting actions we've taken as well as the rate environment. So we have been able to produce rate in excess of our view of loss trends. So that obviously helps as well.

同時，我們也確實改善了績效監控，提高了監控頻率，並優化了組織內部的回饋機制。所以我認為這與我們採取的承保措施以及費率環境直接相關。因此，我們能夠制定高於預期損失趨勢的費率。這顯然也起到了積極作用。

Yes, very good. Sarah, did you provide any sort of expense ratio target? I think you may have commented on that in the past. But with the improvement this quarter, it sounds like more expense savings flowing through the P&L. Is there a particular target you've got in mind?

是的，非常好。莎拉，你有沒有設定費用率目標？我想你之前可能有提到過。但鑑於本季的改善，聽起來損益表中會有更多費用節省。你心中是否有具體的目標？

Yes. Thanks, Mark. I think our full year target is consistent with what we've said a couple of quarters ago, and that's 31%, which would be certainly down from where we started the year at 32% and change. So I still feel very good about that. I'm obviously hesitating a little bit because we're doing this while we're making the underwriting changes, which has pushed down net earned.

是的，謝謝，馬克。我認為我們全年的目標與幾個季度前所說的一致，即31%，這肯定比年初的32%左右有所下降。所以我對此仍然很有信心。當然，我還是有些猶豫，因為我們是在進行承保調整的同時做出這個決定，這導致淨收益有所下降。

So I'm much more focused on the dollars we've taken out of the organization because I think those dollars have permanently left the organization than the ratio because I think the ratio also is going to miss the tax savings and the additional benefits that we're getting through the red. But a long way of saying, I still feel good about 31%, but I think there are other levers there that tell the story in a more effective way as well.

所以我更關注我們從組織中取出的資金，因為我認為這些資金已經永久離開了組織，而不是關注損益比。我認為盈虧比率還會忽略我們透過虧損獲得的稅收節省和額外收益。總而言之，我對31%的損益比仍然感到滿意，但我認為還有其他指標能更有效地說明問題。

And then excess property, I know it's small in your book. Rates are down, business is down. What's your judgment about where that stands now? It was obviously a light storm season. Is that business continuing to see further declines and not your book necessarily, but just kind of your judgment of market conditions? Is it softening further here in the fourth quarter? Or is that maybe stabilized?

還有，我知道您認為過剩房產佔比很小。利率下降了，業務量也下降了。您如何看待目前的市場狀況？顯然，今年的風暴季並不嚴重。這部分業務是否還會繼續下滑？這不一定是您帳面上的數據，而是您對市場狀況的判斷。第四季市場是否會進一步疲軟？或者說，市場可能已經趨於穩定？

Yes, Mark. Well, I think you kind of alluded to it. I mean the industry US property losses, the experience this year is certainly well within most carriers' plans. So my expectation would be from a rate environment perspective, I would expect more of the same, so double-digit rate decreases. We're also seeing some loosening up of terms and conditions.

是的，馬克。嗯，我想你剛才已經暗示過了。我的意思是，就美國財產保險業的損失而言，今年的情況確實在大多數保險公司的預期之內。所以從費率環境的角度來看，我預期情況會和之前類似，也就是兩位數的費率下降。我們也看到一些條款和條件有所放寬。

So just plenty of capacity out there, whether it's carrier, MGA and MGU. So I guess the wildcard would be that if something significant, very significant, like $50 billion event type significant happen between now and year-end, that could be perhaps a game changer to kind of slow down the rate of the aggression in the property marketplace. But right now, that's what we see. We're kind of thinking more of the same.

所以目前市面上的核保能力非常充足，無論是航空公司、MGA 或 MGU。我認為最大的變數在於，如果從現在到年底之間發生一些重大事件，例如價值 500 億美元的事件，或許會改變市場格局，減緩房地產市場的激烈競爭。但就目前而言，我們看到的情況大致如此。我們認為市場格局仍將維持不變。

Appreciate that. Thank you.

非常感謝。

(Operator Instructions)

（操作說明）

Brian Meredith, UBS.

Brian Meredith，瑞銀集團。

A couple of questions here for you. First, I'm just curious, the reserve charge that took that went to the ADC cover, the lines of business that, that was involved in, how much of that business are you still writing today? And was anything kind of learned through that study that maybe affected your kind of thoughts on what you're underwriting today and how you're booking stuff?

這裡有幾個問題想請教您。首先，我很好奇，用於支付意外傷害賠償險的準備金，以及涉及的業務線，您現在還在承保多少這類業務？透過那項研究，您是否學到了什麼，從而影響了您目前承保的業務範圍和安排方式？

Yes. Sure, Brian. Let me take a crack at that. So we're talking about primarily the charge being driven by other liability occurrence and product completed operations from 2020 to 2022. The other liability occurrence primarily was non (inaudible) space. These are lines of business that we're still in, so that would include energy, sports and entertainment, some elements of general casualty and then the product completed operations charts clearly coming out of MC.

是的，布萊恩，沒問題。讓我來解釋一下。我們主要討論的是2020年至2022年期間由其他責任事故和產品完工責任推動的費用。其他責任事故主要涉及非（聽不清楚）領域。這些是我們仍在經營的業務領域，包括能源、體育和娛樂、部分一般意外傷害，以及來自MC的產品完工責任圖表。

I'll draw a direct kind of parallel to the actions that we're taking first in MC. We've done a pretty deep analysis of what we see as an increase in low severity claims over the last, call it, 1.5 years or so and have made the decision to take some significant underwriting actions relative to tracked homebuilding in a number of different states.

我將直接類比我們在MC採取的行動。我們對過去一年半左右低嚴重程度索賠的增加情況進行了相當深入的分析，並決定在多個州針對追蹤房屋建造專案採取一些重要的承保措施。

So we're not necessarily exiting the class, but we've got certain prohibited applications that we're paying attention to and a number of guidelines relative to the class. So I would say that's already in process. And I would say relative to the OLO, the other liability occurrence, those are changes that have been kind of, I think, already recognized and built into the organization over the last couple of years of underwriting changes that we've really started commencing at the end of '22.

所以我們並非要退出這個類別，但我們正在關注某些被禁止的應用，以及一些與該類別相關的指導方針。所以我認為這項工作已經在進行中。至於其他責任事件（OLO），我認為這些變化在過去幾年承保政策的調整中已經被我們認識到並納入到組織架構中，而這些調整我們從2022年底就開始真正實施了。

Great. And then the second question, I'm just curious, maybe you can provide some outlook and what you think the ultimate happens with your Specialty Admitted segment. I mean it looks like it's shrunk pretty meaningfully.

好的。第二個問題，我只是好奇，您能否談談您對專科入院病患群體未來發展的看法，以及您認為最終會如何？我的意思是，看起來這個群體規模已經大幅縮水了。

It has, Brian. And so we developed a view that we wanted to significantly reduce the commercial auto exposure in the portfolio based on our view of the behavior in the sector as well as the rated reinsurance market appetite, and we wanted to take less risk there. So we've greatly reduced our net retentions, and that view has not changed. You kind of see that playing through from quarter-to-quarter.

確實如此，布萊恩。因此，我們根據對該行業發展趨勢以及再保險市場評級偏好的判斷，制定了大幅降低投資組合中商業汽車險敞口的方案，以減少這方面的風險。所以我們大幅降低了淨自留額，而且這方案一直沒有改變。你可以看到，這種影響在每季都有所體現。

We have -- I would say we've kind of picked our horses, so to speak, and have a handful of active programs today, mostly fully fronted. We feel like they're on a very solid footing and stable with low net retentions. We're now less than 5% in terms of retention. It's a far cry from where we've been in the past and certainly, I would say, a fraction of where probably the rest of the sector is.

我們已經——可以說，我們已經選好了重點項目，目前有幾個活躍的項目，大部分都是全額預付項目。我們感覺這些專案基礎非常穩固，淨流失率很低。我們現在的流失率不到5%。這與我們過去的情況相比已經有了很大的改善，而且我敢說，這比整個行業其他公司的水平還要低得多。

And we're continuing to focus on expense management. So as you know, the segment capital contributes fairly meaningfully to net investment income, circa, call it, 20% or so. And so we've shown and stated in the past that we'll continue to manage the business to take advantage of what we view as profitable opportunities that meet our criteria.

我們將繼續專注於費用控制。如您所知，分部資本對淨投資收益的貢獻相當可觀，約佔20%左右。因此，我們過去已經表明並聲明，我們將繼續管理業務，以把握符合我們標準的獲利機會。

Got you. I was just wondering, it's getting so small, just the relevance of that business in the marketplace? And does it make sense in even being in it?

明白了。我只是在想，這家公司規模越來越小，在市場上還有什麼意義？它繼續做下去還有意義嗎？

I think we're tag teaming on the question, Brian. I think we're -- the way that we thought about managing the segment, we're certainly still in it. We're getting inquiries into it. We've got active programs, but we're managing it for profitability. So to Frank's point, getting the retention is actually at 3.7% this quarter, managing the expenses. We've taken over one-third of the expenses out of it.

布萊恩，我覺得我們在這個問題上是合作的。我們——就我們之前考慮的管理這個細分市場的方式而言，我們當然還在繼續。我們收到了相關的諮詢。我們有正在實施的項目，但我們的管理目標是獲利。所以，正如弗蘭克所說，本季客戶留存率實際上達到了3.7%，同時我們也控制了支出。我們已經削減了超過三分之一的支出。

I think that there's very little that we're able to or have to continue to invest in it to keep it online. I would also say is that the last thing I'd say is I think those profitability ratios that you're probably looking at as well, they've become, I think, less important indicators of the health of the business when you see net written premium drop 94% quarter-over-quarter. So as we look at this to manage net investment income and to focus on the rest of our business, it's not much of an effort as we've continued to move forward there.

我認為我們幾乎沒有能力或必要繼續投資來維持其線上營運。最後我想說的是，您可能也在關注的那些獲利能力指標，在淨保費環比下降94%的情況下，其作為衡量企業健康狀況的指標的重要性已經降低。因此，當我們著眼於管理淨投資收益並專注於其他業務時，這並不需要花費太多精力，因為我們一直在穩步推進這些業務。

Yes. And I guess if I just one final word on it, Brian. Our track record, I think, has demonstrated that we regularly evaluate all of our businesses and underwriting units to make sure they fit our corporate goals and objectives and it's just good stewardship, and we'll continue to do that.

是的。布萊恩，我想最後再補充一點。我認為，我們的過往業績已經證明，我們會定期評估所有業務和核保部門，以確保它們符合公司的目標和宗旨，這是一種良好的管理方式，我們將繼續這樣做。

Great, thank you.

太好了，謝謝。

There are no further questions at this time. And I'll turn the call back over to management for any closing remarks.

目前沒有其他問題了。我將把電話轉回給管理階層，請他們作總結發言。

Thank you, operator. As we approach the end of 2025, it's worth reflecting on the transformation this company has undergone. Our experienced and reenergized leadership team continues to build and improve James River, distinguished by underwriting profitability while flexibly reallocating capital to the most attractive opportunities as market dynamics evolve. I'm pleased with our continued progress as an organization.

謝謝接線生。 2025年即將結束，我們有必要回顧公司所經歷的轉型。我們經驗豐富、充滿活力的領導團隊將繼續發展壯大詹姆斯河保險公司，在保持承保盈利能力的同時，還能根據市場動態的變化靈活地將資金重新配置到最具吸引力的投資機會。我對公司持續的進步感到欣慰。

With every passing quarter, we're seeing the demarcation between the company's legacy performance and the more recent accident years characterized by significant underwriting changes and marked improvement in performance. Our primary goal remains to enhance shareholder value through consistent and deliberate execution over the years ahead. Thank you to all for listening to the call today. We look forward to speaking to you again in a few months.

隨著每季的過去，我們越來越清楚地看到公司以往業績與近年來因重大承保調整和業績顯著提升而出現的顯著差異。我們首要的目標仍然是透過未來幾年持續穩健的執行來提升股東價值。感謝各位今天收聽電話會議。我們期待幾個月後再次與您交流。

Thank you for your participation. This does conclude today's conference. You may now disconnect.

感謝您的參與。今天的會議到此結束，您可以斷開連線了。