Markel Group Inc (MKL) 2023 Q3 法說會逐字稿

Good morning, and welcome to the Markel Group Third Quarter 2023 Conference Call. (Operator Instructions) Again, during the call today, we may make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. They are based on current assumptions and opinions concerning a variety of known and unknown risks. Actual results may differ materially from those contained in or suggested by such forward-looking statements.

早上好，歡迎參加 Markel 集團 2023 年第三季電話會議。 （操作員說明）同樣，在今天的電話會議中，我們可能會做出1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述。這些陳述基於當前有關各種已知和未知風險的假設和意見。實際結果可能與此類前瞻性陳述中包含或暗示的結果有重大差異。

Additional information about factors that could cause actual results to differ materially from those projected in the forward-looking statements is included in our most recent annual report on Form 10-K and quarterly report on Form 10-Q including under the captions, Safe Harbor and Cautionary Statements and Risk Factors. We may also discuss certain non-GAAP financial measures during the call today. You may find the most directly comparable GAAP measures and a reconciliation to GAAP for these measures in our most recent Form 10-Q. Our Form 10-K and Form 10-Q can be found on our website at www.mklgroup.com in the Investor Relations section.

有關可能導致實際結果與前瞻性陳述中預測的結果有重大差異的因素的更多資​​訊包含在我們最新的10-K 表格年度報告和10-Q 表格季度報告中，包括「安全港」和「安全港」標題下的資訊。警示聲明和風險因素。我們也可能在今天的電話會議上討論某些非公認會計準則財務指標。您可以在我們最新的表格 10-Q 中找到最直接可比較的 GAAP 衡量標準以及這些衡量標準的 GAAP 調整表。我們的 10-K 表格和 10-Q 表格可以在我們網站 www.mklgroup.com 的投資者關係部分找到。

Please note, this event is being recorded. I would now like to turn the conference over to Tom Gayner, Chief Executive Officer. Please go ahead.

請注意，此事件正在被記錄。我現在想將會議交給執行長湯姆蓋納 (Tom Gayner)。請繼續。

Thank you, Regina, good morning, and welcome to the Markel Group Third Quarter Conference Call for 2023. My name is Tom Gayner, I've joined this morning by Terri Gendron, the Chief Financial Officer; and Jeremy Noble, the President of Insurance to brief you on our results as well as to answer your thoughtful questions.

謝謝你，Regina，早安，歡迎參加 Markel Group 2023 年第三季電話會議。我叫 Tom Gayner，今天早上我由財務長 Terri Gendron 加入；保險業總裁傑里米·諾布爾 (Jeremy Noble) 向您介紹我們的結果並回答您深思熟慮的問題。

At Markel Group, we remain committed to our long-term goal of building one of the world's great companies. We define that as creating a win-win-win culture, where our customers are better off for having done business with us. Our colleagues are better off by being part of the Markel group and our shareholders are in excellent returns on their capital as a result of the wins by customers and colleagues. Overall, I'm pleased with the performance of the Markel Group through the first 9 months of 2023. But we do have a few blemishes to deal with this year.

在馬克爾集團，我們仍然致力於實現建立世界上最偉大的公司之一的長期目標。我們將其定義為創造雙贏的文化，讓我們的客戶因與我們開展業務而受益匪淺。我們的同事因成為 Markel 集團的一部分而受益匪淺，而我們的股東也因客戶和同事的勝利而獲得了豐厚的資本回報。總體而言，我對 Markel 集團 2023 年前 9 個月的表現感到滿意。但今年我們確實有一些問題需要解決。

As always, we will be honest and candid in sharing not only what's working well, but what needs improvement. We believe that this honest and candid self-assessment is the best way to maintain the discipline and clear-headedness needed to make good decisions going forward. It is also the way to earn your trust as we demonstrate to you that we acknowledge our challenges and face them head-on. Terri will provide you with the detailed numbers in just a minute, and Jeremy will follow with his report on our insurance operations.

一如既往，我們將誠實、坦誠地不僅分享運作良好的內容，而且分享需要改進的內容。我們相信，這種誠實和坦誠的自我評估是保持未來做出正確決策所需的紀律和清醒頭腦的最佳方式。這也是贏得您信任的方式，因為我們向您展示我們承認我們面臨的挑戰並直面它們。特里將在一分鐘內向您提供詳細的數字，傑里米將隨後報告我們的保險業務。

But before we get to that, I wanted to start off with some high-level commentary. As Sheryl Crow saying, Everyday Is a Winding Road. She's right. We've got some great news, some good news and some challenging news this quarter. While we may be on a winding road, we do continue to move forward. As to the great news, Markel Ventures continues to produce simply outstanding results.

但在我們開始之前，我想先發表一些高層次的評論。正如謝麗爾·克勞所說，「每一天都是一條蜿蜒的路」。她是對的。本季我們有一些好消息、一些好消息和一些具有挑戰性的消息。儘管我們的道路可能曲折，但我們仍在繼續前進。好消息是，Markel Ventures 繼續創造出色的表現。

For the first 9 months of this year, operating income rose 52% from $217 million to $330 million. And EBITDA rose 35% and from $353 million to $474 million. There were no material acquisitions at Ventures during this time period. These are basically apple sauce to apple sauce numbers.

今年前 9 個月，營業收入成長 52%，從 2.17 億美元增至 3.3 億美元。 EBITDA 成長了 35%，從 3.53 億美元增至 4.74 億美元。在此期間，Ventures 沒有發生重大收購。這些基本上是蘋果醬到蘋果醬的數字。

I simply could not be more pleased with the performance of Ventures. The management teams that lead those companies continue to produce outstanding results for the Markel Group. The numbers speak for themselves. As to the good news, and is very good. Our recurring interest and dividend income grew 73% from $302 million to $521 million in the first 9 months of 2023. We continue to invest the cash flows and maturing bonds into higher-yielding fixed-income securities. Each investment we make in fixed income these days carries a higher interest rate than the bonds that are maturing. I would expect us to continue to earn even higher amounts of recurring investment income and the trailing interest rate environment.

我對 Ventures 的表現非常滿意。領導這些​​公司的管理團隊繼續為 Markel 集團創造出色的業績。數字不言而喻。至於好消息，而且是非常好的消息。 2023 年頭 9 個月，我們的經常性利息和股息收入成長了 73%，從 3.02 億美元成長到 5.21 億美元。我們繼續將現金流和到期債券投資於收益更高的固定收益證券。如今，我們對固定收益的每項投資的利率都高於到期債券。我預計我們將繼續獲得更高的經常性投資收入和追蹤利率環境。

As to our equity investment portfolio, we earned a return of 9.3% through the first 9 months of 2023. While this trails the S&P return of 13.1%, we do remain over 100 basis points ahead of the S&P for more than 30 years. I would very happily sign up for the sort of annualized investment results we are putting up so far in 2023. I'd also happily accept 100 basis points of outperformance for the next 3 decades, if I could do so. As to the challenging news in our insurance operations, reported a year-to-date combined ratio of 95%. And for the third quarter, we reported a combined ratio of 99%.

至於我們的股權投資組合，到 2023 年前 9 個月，我們的回報率為 9.3%。雖然這落後於標準普爾 13.1% 的回報率，但我們確實領先標準普爾 100 個基點超過 30 年。我很樂意簽署我們迄今在 2023 年公佈的年化投資結果。如果可以的話，我也很樂意接受未來 30 年表現優異 100 個基點。至於我們保險業務中的挑戰性消息，據報導，年初至今的綜合成本率為 95%。第三季的綜合成本率為 99%。

These results are below our expectations and stem from multiple factors. First, we continue to experience inflation in our claims payments. That inflation reflects higher overall price levels and social inflation that we see in the current legal environment. We continue to incorporate these trends in our reserve-setting process. I'm pleased to report to you that despite the challenges, we continue to live up to our goal of setting reserves that prove to be more likely to be redundant than deficient. We did report favorable development in the third quarter.

這些結果低於我們的預期，並且源自於多種因素。首先，我們的索賠支付繼續面臨通貨膨脹。這種通貨膨脹反映了我們在當前法律環境下看到的更高的整體物價水準和社會通貨膨脹。我們繼續將這些趨勢納入我們的儲備設定過程中。我很高興地向大家報告，儘管面臨挑戰，我們仍繼續實現設立儲備的目標，事實證明，這些儲備更有可能是多餘的，而不是不足的。我們確實報告了第三季度的良好發展。

Some of the factors that led to these results include 2 points of losses in the third quarter from natural catastrophes, including Hawaiian wildfires and Hurricane Idalia.

導致這些結果的一些因素包括第三季因自然災害（包括夏威夷山火和颶風伊達利亞）造成的損失 2 個百分點。

Additionally, we experienced approximately 3 points of losses in the third quarter from the losses in our collateral protection book, which include exposure to the widely reported Vesttoo bankruptcy and fraud case.

此外，我們在第三季因抵押品保護帳簿中的損失而遭受了大約 3 個百分點的損失，其中包括廣泛報道的 Vesttoo 破產和詐欺案件。

Collateral protection is a relatively new product to us and to the marketplace. We learned some tough lessons here, and we've made significant adjustments to the product. While we are extremely disappointed with this loss, we believe we've addressed the causes aggressively. And we are actively working to mitigate potential future losses associated with this product. We are especially disappointed with these particular losses as they obscure the outstanding performance from so many other components of our insurance operations. Rest assured, we continue to work tirelessly to make each engine in the Markel Group performed at the highest levels.

抵押保護對於我們和市場來說都是一個相對較新的產品。我們在這裡吸取了一些慘痛的教訓，並對產品進行了重大調整。雖然我們對這一損失感到非常失望，但我們相信我們已經積極解決了原因。我們正在積極努力減輕與該產品相關的未來潛在損失。我們對這些特殊損失尤其失望，因為它們掩蓋了我們保險業務許多其他組成部分的出色表現。請放心，我們將繼續不懈努力，使 Markel 集團的每台引擎都發揮最高水準。

And we look forward to future periods of sharing our progress on exactly that with you. We never like calling out specific reasons for our disappointing results. Discussions of natural catastrophes and headline events can deteriorate into an exercise of excuse making. I don't like making excuses any more than you like hearing them. We know that you as shareholders expect us to be able to manage the normal flow of catastrophe losses, headline events of wars, consequences of climate change and other things that go bump in the night and still produce acceptable results. That is the very nature of what a successful insurance operation does.

我們期待在未來與您分享我們在這方面的進展。我們從來不喜歡說出令人失望的結果的具體原因。對自然災害和頭條新聞的討論可能會惡化為找藉口的行為。我不喜歡找藉口，就像你不喜歡聽藉口一樣。我們知道，作為股東，你們希望我們能夠管理正常的災難損失、戰爭頭條事件、氣候變遷的後果以及其他在夜間發生的事情，但仍能產生可接受的結果。這就是成功的保險業務的本質。

We understand the assignment. Rest assured, we continue to work tirelessly, to make each engine in the Markel Group performed at the highest levels, and we look forward to future periods of sharing our progress on exactly that with you.

我們理解這項任務。請放心，我們將繼續不懈努力，使 Markel 集團的每台發動機都發揮最高水平，我們期待在未來與您分享我們在這方面的進展。

Finally, as one additional marker of our overall financial strength and performance, we invested $270 million in additional public equity investments during the first 9 months, which should produce additional returns into the future. The current unrealized gain on our public equity portfolio stands at over $5 billion. I expect that amount to continue to grow over time. We also repurchased $269 million of our own stock so far in 2023. Compared with $208 million in the first 9 months of last year.

最後，作為我們整體財務實力和業績的另一個標誌，我們在前 9 個月內額外投資了 2.7 億美元的公共股權投資，這應該會在未來產生額外的回報。目前我們公共股票投資組合的未實現收益超過 50 億美元。我預計這筆金額將隨著時間的推移而繼續增長。 2023 年到目前為止，我們也回購了 2.69 億美元的自有股票。而去年前 9 個月的回購金額為 2.08 億美元。

My expectation is that we'll continue to produce profitable results in our insurance ventures and investment engines and we will be dividing those profits among future shares, fewer shares. That seems like a recipe for increasing shareholder value to me. Additionally, I stated last quarter, that in 5 of the last 6 quarters, I've personally taken money out of my pocket to buy Markel Group stock on the open market. I continued to do so again during the past quarter.

我的期望是，我們將繼續在我們的保險企業和投資引擎中產生獲利結果，我們將把這些利潤分配給未來的股票，更少的股票。對我來說，這似乎是增加股東價值的良方。此外，我在上個季度表示，在過去 6 個季度中的 5 個季度中，我親自從口袋裡掏錢在公開市場上購買 Markel Group 股票。在過去的一個季度裡，我繼續這樣做。

In fact, I invested approximately my entire after-tax salary for Markel Group during the quarter to purchase shares in the open market. At this point, I now have purchased Markel Group shares in 6 of the last 7 quarters. I am confident in our team, I believe in their talent and dedication. I believe they will produce excellent results. We remain committed to building one of the world's great companies, and I thank you for your ongoing support.

事實上，我本季將大約全部稅後薪資投入馬克爾集團，以在公開市場上購買股票。至此，我在過去 7 個季度中有 6 個季度購買了 Markel Group 股票。我對我們的團隊充滿信心，我相信他們的才華和奉獻精神。我相信他們會取得優異的成績。我們仍然致力於建立世界上最偉大的公司之一，我感謝您的持續支持。

With that, I'll turn it over to Terri to provide you some of the details of our financial results. Jeremy will pick up with his comments on our insurance engine, and then we'll open the floor for questions. Terri?

接下來，我將把它交給特麗，向您提供我們財務表現的一些詳細資訊。傑里米將聽取他對我們保險引擎的評論，然後我們將開始提問。特麗？

Thank you, Tom, and good morning, everyone. As Tom pointed out, we have a mix of results this quarter, which highlights the importance of our 3 engine architecture. Using the words of Sheryl Crow, the diversity in our family of business may be helping us to get a little bit closer to feeling fine. Starting off with our underwriting operations. Gross written premiums grew 5% to $7.9 billion for the first 9 months of 2023, compared to $7.5 billion in 2022. Our increased premium volume reflects new business and more favorable rates across many of the product launches within our insurance segment, partially offset by lower premium volume within our professional liability product lines where we're adjusting our writings in reaction to changes in market conditions and downward pressure on rates within certain classes. Our consolidated combined ratio for the first 9 months of 2023 was 95% compared to 91% for the same period last year.

謝謝你，湯姆，大家早安。正如 Tom 指出的那樣，本季我們取得了好壞參半的結果，這凸顯了我們 3 引擎架構的重要性。用 Sheryl Crow 的話來說，我們企業家族的多樣性可能會幫助我們更接近感覺良好。從我們的核保業務開始。 2023 年前9 個月的總承保保費增長了5%，達到79 億美元，而2022 年為75 億美元。我們保費收入的增加反映了我們保險領域內許多產品推出的新業務和更優惠的費率，但部分被較低的保費收入所抵消。我們的專業責任產品線中的保費量，我們正在調整我們的著作，以應對市場狀況的變化和某些類別內利率的下行壓力。 2023 年前 9 個月，我們的綜合綜合成本率為 95%，而去年同期為 91%。

Our 2023 combined ratio included $46 million or 1 point of net losses attributed to the Hawaiian wildfires and Hurricane Idalia. Our 2022 combined ratio included $70 million of net losses attributed to Hurricane Ian and $35 million attributed to the Russia-Ukraine conflict which together added 2 points to the combined ratio.

我們 2023 年的綜合成本率包括夏威夷野火和伊達利亞颶風造成的 4,600 萬美元或 1 個百分點的淨損失。我們 2022 年的綜合成本率包括伊恩颶風造成的 7,000 萬美元淨損失和俄羅斯-烏克蘭衝突造成的 3,500 萬美元淨損失，這兩項合計使綜合成本率增加了 2 個百分點。

Excluding these losses from both years, our consolidated combined ratio for the first 9 months of '23, was 95% compared to 89% in 2022. The increase was driven by a higher attritional loss ratio in 2023 within our insurance segment, which Jeremy will discuss further. Prior year loss reserves developed favorably by $170 million in the first 9 months of 2023 compared to $204 million in the first 9 months of 2022.

排除這兩年的損失，我們2023 年前9 個月的綜合綜合成本率為95%，而2022 年為89%。這一增長是由於我們保險部門2023 年的損耗損失率更高，傑里米將進一步討論。 2023 年前 9 個月，去年損失準備金增加了 1.7 億美元，而 2022 年前 9 個月為 2.04 億美元。

We experienced favorable loss reserve development across multiple product lines in '23. Most notably across our international professional liability product lines and our property product lines within the insurance segment. The favorable development in 2023 was partially offset by adverse development on our general liability product lines within our insurance segment due to an increased frequency of large claims over the past several quarters under excess an umbrella and primary -- and primary casualty contractors liability products.

23 年，我們在多個產品線中經歷了有利的損失準備發展。最值得注意的是我們的國際專業責任產品線和保險領域的財產產品線。 2023 年的有利發展被保險部門內一般責任產品線的不利發展所部分抵消，原因是過去幾個季度超額保護傘和主要傷亡承包商責任產品下的大額索賠頻率增加。

We also experienced adverse development within our Reinsurance segment in 2023 on our general liability product lines. and a discontinued portion of our public entity product line.

2023 年，我們的再保險部門的一般責任產品線也經歷了不利的發展。以及我們公共實體產品線中已停產的部分。

Turning to our investment results. We reported net investment income of $521 million in the first 9 months of 2023, compared to $302 million in the same period last year. With meaningful increases from fixed maturity securities, short-term investments and cash and cash equivalents. Interest income on our fixed maturity securities reflects a higher yield and higher average holdings compared to last year. On a year-to-date basis, yields on our purchases of fixed maturities have been about 250 basis points higher than securities that rolled off. Higher income from short-term investments is due to higher short-term interest rates in the current year. The largest share of the increase is due to higher interest income from our cash and cash equivalents, as we have increased our allocation to money market funds to take advantage of the current interest rate environment.

轉向我們的投資成果。我們報告 2023 年前 9 個月的淨投資收入為 5.21 億美元，而去年同期為 3.02 億美元。固定期限證券、短期投資以及現金和現金等價物顯著增加。與去年相比，我們固定期限證券的利息收入反映了更高的收益率和更高的平均持有量。今年迄今，我們購買固定期限債券的殖利率比展期證券高出約 250 個基點。短期投資收益較高是由於本年度短期利率較高。成長的最大部分是由於我們的現金和現金等價物的利息收入增加，因為我們增加了對貨幣市場基金的配置以利用當前的利率環境。

During the first 9 months of 2023, we recognized net unrealized investment losses with another comprehensive loss of $135 million net of taxes, compared to net unrealized investment losses of $1.3 billion, net effect in 2022. These movements correspond to decreases in the fair value of our fixed maturity portfolio, resulting from increases in interest rates. Recall that we typically hold our fixed maturities until they mature. And we generally expect unrealized holding gains and losses attributed to changes in interest rates to reverse in future periods if bonds mature.

2023 年前9 個月，我們確認了未實現淨投資損失，以及稅後淨額為1.35 億美元的另一綜合損失，而2022 年淨影響為13 億美元的未實現淨投資損失。這些變動對應於公允價值的下降我們的固定期限投資組合，是由於利率上升而產生的。回想一下，我們通常會持有固定期限直至它們成熟。我們通常預計，如果債券到期，由於利率變化而導致的未實現持有收益和損失將在未來期間逆轉。

As of September 30, over 99% of our fixed maturity portfolio was rated AA or better, and there are no current or expected credit losses within the portfolio. Net investment gains of $591 million for the first 9 months of '23, reflect favorable market value movements driving a return of 9.3% on our public equity portfolio during the period. This compares to net investment losses of $2.2 billion for the same period of 2022. As you heard us say many times before, we focus on long-term investment performance expecting variability in the equity markets and the timing of investment gains and losses from period to period. With regard to our Markel Ventures segment, revenues from Markel Ventures increased 6% to $3.7 billion in the first 9 months of 2023, up from $3.5 billion for the first 9 months of last year.

截至 9 月 30 日，我們超過 99% 的固定期限投資組合評級為 AA 或更高，且投資組合中不存在當前或預期信用損失。 2023 年前 9 個月的淨投資收益為 5.91 億美元，反映出有利的市場價值變動，推動我們的公共股票投資組合在此期間實現 9.3% 的回報。相較之下，2022 年同期的淨投資損失為22 億美元。正如您之前多次聽到我們所說，我們關注長期投資業績，預計股市會發生變化，以及不同時期的投資收益和損失的時間安排。句點。就我們的 Markel Ventures 部門而言，Markel Ventures 的營收在 2023 年頭 9 個月成長了 6%，達到 37 億美元，高於去年前 9 個月的 35 億美元。

The increase reflects growth and improved pricing across several of our businesses. EBITDA from Markel Ventures increased 35% to $474 million for the first 9 months of 2023. From $353 million during the same period last year. The increase was driven by our products businesses, which had higher margins in '23, compared to '22, as we saw material and freight costs stabilize.

這一增長反映了我們多項業務的成長和定價的改善。 2023 年頭 9 個月，Markel Ventures 的 EBITDA 成長了 35%，達到 4.74 億美元，而去年同期為 3.53 億美元。這一成長是由我們的產品業務推動的，與 22 年相比，我們的產品業務在 23 年的利潤率更高，因為我們看到材料和貨運成本穩定。

Our effective tax rate for the first 9 months of 2023 was 21% compared to 23% in the same period last year. We reported net income to common shareholders of $1.2 billion for the first 9 months of 2023 compared to a net loss to common shareholders of $926 million in the same period a year ago. With the change largely attributed to the year-over-year swing in our public equity portfolio valuation. Comprehensive income to shareholders for the first 9 months of 2023 was $1.1 billion compared to comprehensive loss to shareholders of $2.1 billion in the first 9 months of 2022, with swings in both fixed maturity and public equity valuations as the largest drivers.

我們 2023 年前 9 個月的有效稅率為 21%，而去年同期為 23%。我們公佈的 2023 年前 9 個月普通股股東淨利為 12 億美元，而去年同期普通股股東淨虧損為 9.26 億美元。這一變化很大程度上歸因於我們的公共股權投資組合估值的同比波動。 2023 年前 9 個月的股東綜合收益為 11 億美元，而 2022 年前 9 個月股東的綜合損失為 21 億美元，固定期限和公共股權估值的波動是最大的驅動因素。

Net cash provided by operating activities was $2 billion for the first 9 months of 2023 compared to $1.9 billion for the same period last year. Operating cash flows in 2023 reflected strong cash flow from each of our operating engines with the most significant contribution from our insurance engine and a notable year-over-year increase coming from our Markel Ventures engine. Total shareholders' equity stood at $14 billion at the end of September. Compared to $13.2 million at the end of the year.

2023 年前 9 個月，經營活動提供的淨現金為 20 億美元，去年同期為 19 億美元。 2023 年的營運現金流反映了我們每個營運引擎的強勁現金流，其中保險引擎的貢獻最為顯著，而 Markel Ventures 引擎的同比顯著增長。截至 9 月底，股東權益總額為 140 億美元。相比之下，年底為 1,320 萬美元。

Overall, we're pleased with our consolidated results so far this year. and are confident that we're taking the right steps to address the current challenges on our road to building long-term shareholder value.

總體而言，我們對今年迄今的綜合業績感到滿意。我們相信，我們正在採取正確的步驟來應對當前建構長期股東價值的挑戰。

With that, I'll turn it over to Jeremy to talk more about our insurance engine.

接下來，我將把它交給傑里米，更多地討論我們的保險引擎。

Thanks, Terri, and good morning, everyone. It's great to be with you to discuss our insurance engine results for the third quarter. Clearly, our insurance operations performance is not where we want it to be. However, I am confident that we are taking the right actions quickly in the near term to successfully confront what are predominantly industry-wide challenges that set Markel up for long-term success.

謝謝，特瑞，大家早安。很高興與您一起討論我們第三季的保險引擎業績。顯然，我們的保險業務績效並未達到我們想要的水準。然而，我相信，我們將在短期內迅速採取正確的行動，以成功應對主要是全行業的挑戰，為馬克爾取得長期成功奠定基礎。

As I walk you through our financials, you will see our performance is being impacted by a few pockets within our product portfolio that are negatively influencing our underwriting results for the period. This includes the well-documented higher loss cost trends in recent years, which are creating prior adverse reserve development within our risk-managed D&O and excess casualty lines, and mid-market excess an umbrella in primary casualty contractors liability books. We are working incredibly hard to evaluate the ultimate cost to set on claims on these meaningful portfolios, examining the maturing accident years from the last soft market cycle, while seeking to gain confidence around margins on more recent accident years that were written in a more favorable market environment.

當我向您介紹我們的財務狀況時，您會發現我們的業績受到我們產品組合中的一些部分的影響，這些部分對我們當期的承保業績產生了負面影響。這包括近年來有據可查的損失成本上升趨勢，這些趨勢在我們的風險管理 D&O 和超額傷亡險種中創造了先前的不利準備金，以及主要傷亡承包商責任賬簿中的中端市場超額損失。我們正在非常努力地評估對這些有意義的投資組合提出索賠的最終成本，檢查上一個疲軟市場週期中到期的事故年份，同時尋求對以更有利的方式編寫的最近事故年份的利潤率產生信心。市場環境。

We are also maintaining a higher level of prudence on our current accident year loss picks within these products due to the uncertainty around future loss cost trends. We are acting with a great deal of discipline being more selective around new business, pushing rates and terms and letting business laps that doesn't meet our profitability targets. We are in the process of remixing our portfolio to improve overall profitability. And ensuring our reserves are robust as we move into 2024. In short, Markel has long been a conservative company and one that demonstrates caution when it comes to evaluating adverse claims trends.

由於未來損失成本趨勢的不確定性，我們對這些產品目前的事故年損失選擇也保持高度審慎。我們以嚴格的紀律行事，對新業務更加挑剔，提高費率和條款，並讓不符合我們獲利目標的業務停滯不前。我們正在重新組合我們的投資組合，以提高整體獲利能力。並確保我們的準備金在進入 2024 年時保持強勁。簡而言之，Markel 長期以來一直是一家保守的公司，在評估不利索賠趨勢時表現出謹慎態度。

Let me now share a few further thoughts on our results from across our collection of insurance businesses, which includes our insurance and reinsurance, State National program services and the fill insurance-linked securities operations. Across all of our businesses within the insurance engine, through 3 quarters, we have produced $6.3 billion in revenues, up 8% from last year, while generating pretax operating income of $371 million. The insurance engine also continues to generate significant operating cash flows, and we have been intentional about taking the cash and maximizing the investment return on the float generated by our underwriting operations and attractive market yields.

現在讓我分享一些關於我們保險業務的結果的進一步想法，其中包括我們的保險和再保險、州國家計劃服務以及與保險相關的證券業務。在我們保險引擎內的所有業務中，透過三個季度，我們創造了 63 億美元的收入，比去年增長 8%，同時產生了 3.71 億美元的稅前營業收入。保險引擎也持續產生大量營運現金流，我們一直有意識地獲取現金，並最大限度地提高承保業務和有吸引力的市場收益率所產生的流通量的投資回報。

Moving to the results of our underwriting operations. We reported a combined ratio of 99% in the third quarter results, which was significantly influenced by several noteworthy items -- three, to be exact. First, we realized a total of $46 million or 2 points of losses in the quarter related to catastrophe events, specifically the Hawaiian wildfires and Hurricane Idalia. Losses concentrated in our small commercial, inland marine and binding property lines. We also recognized $30 million or just under 2 points of development on the prior accident year losses within a runoff portion of our public entity line in reinsurance. We exited this segment of reinsuring not-for-profit entities in California and other West Coast-based states in 2020, recognizing that this book was not performing adequately.

轉向我們承保業務的結果。我們報告的第三季業績的綜合成本率為 99%，這受到幾個值得注意的項目（確切地說是三個）的顯著影響。首先，我們意識到本季與災難事件相關的總計 4,600 萬美元或 2 個百分點的損失，特別是夏威夷野火和颶風伊達利亞。損失集中在我們的小型商業、內陸海運和綁定財產領域。我們還在我們公共實體再保險業務的徑流部分中確認了 3000 萬美元或略低於 2 個發展點的上一事故年度損失。 2020 年，我們認識到這本書的表現並不充分，因此退出了對加州和其他西海岸各州的非營利實體進行再保險的業務。

We now believe the ultimate losses from this book are likely to need to be greater than what we had previously allowed before. Based on a recent completion of an actuary and claims review.

我們現在認為這本書的最終損失可能需要比我們之前允許的更大。基於最近完成的精算師和索賠審查。

Finally, we recognized losses in the quarter within our intellectual property collateral protection product line, including a $25 million or 1 point impact to the combined ratio from credit losses related to a fraudulent letter of credit provided by Vesttoo. Our CPI product in total had a 3-point impact on our combined ratio. If you exclude these 3 items, our reported combined ratio of 99% in the quarter converts to 93%, consistent with our result for the first half of this year. This highlights the fact that we have many product lines within our portfolio that are performing very well. Turning to premium production.

最後，我們確認了本季智慧財產權抵押保護產品線的損失，其中包括與 Vesttoo 提供的欺詐性信用證相關的信用損失對綜合比率造成 2,500 萬美元或 1 個百分點的影響。我們的 CPI 產品總共對我們的綜合成本率產生了 3 個百分點的影響。如果排除這三項，我們報告本季的綜合成本率為 99%，則轉換為 93%，與我們今年上半年的結果一致。這凸顯了一個事實，即我們的產品組合中有許多表現良好的產品線。轉向優質生產。

Overall, gross written premiums in our underwriting operations grew by 1% in the quarter and 5% year-to-date. As I pointed out last quarter, we continued to achieve premium growth in lines where we see opportunities and feel good about the levels of rate adequacy. We are taking advantage of the improved pricing environment and have achieved strong growth in our property, in the marine, binding, personal lines and select marine and energy classes internationally. As well as regional growth in our U.K., European and Asian operations. Just as important, we continue to reduce writings in certain classes where we are seeing unacceptable rate decreases relative to loss cost trends.

總體而言，我們承保業務的總保費本季成長了 1%，今年迄今成長了 5%。正如我上季度指出的那樣，我們在看到機會並對利率充足水準感到滿意的領域繼續實現保費成長。我們正在利用改善的定價環境，在我們的財產、海洋、綁定、個人航線以及國際精選海洋和能源類別方面實現了強勁增長。以及我們在英國、歐洲和亞洲業務的區域成長。同樣重要的是，我們繼續減少某些類別的著作，我們發現相對於損失成本趨勢而言，比率下降令人無法接受。

Within our professional liability lines, this is the most notable in the large account public D&O space. We've also decreased writings in our intellectual property collateral protection line as part of our re-underwriting effort in that product. Our professional lines writings have also been impacted by changes in the broader economy, including the slowdown in M&A and public listings. Which is impacting premium volume within our transaction liability product line within both our insurance and reinsurance segments.

在我們的專業責任範圍內，這是大客戶公共 D&O 領域中最引人注目的。作為該產品再承保工作的一部分，我們也減少了智慧財產權抵押保護線的承銷。我們的專業文章也受到了更廣泛的經濟變化的影響，包括併購和上市的放緩。這影響了我們的保險和再保險領域的交易責任產品線的保費量。

In other professional classes, in particular, within our international portfolio, we are pursuing growth opportunities where we find the business to be adequately priced, although growth has moderated over the course of 2023. Within our general liability product lines, we are seeing solid rate increases overall and achieving moderate opportunistic growth. For example, we are increasing our writings in our finding casualty and environmental lines, which have been consistently profitable. Conversely, we are contracting premiums in our primary casualty contractors liability and excess and umbrella lines where loss costs have been more challenging, and we are carefully selecting risks, pushing rate, managing limits and attachment points to combat these trends.

在其他專業類別中，特別是在我們的國際投資組合中，我們正在尋求成長機會，我們發現業務定價適當，儘管成長在2023 年期間有所放緩。在我們的普通責任產品線中，我們看到了穩定的成長率整體成長並實現溫和的機會主義成長。例如，我們正在增加尋找傷亡和環境方面的著作，這些著作一直在獲利。相反，我們在主要傷亡承包商責任、超額保險和傘式保險中簽訂保費合同，其中損失成本更具挑戰性，我們正在仔細選擇風險、提高費率、管理限額和附著點，以應對這些趨勢。

Our year-to-date consolidated combined ratio of 95% for the first 9 months of the year is up 4 points from a year ago. This increase is driven by the items I just discussed earlier, impacting the third quarter results along with the impact from higher attritional loss ratios in our professional liability and general liability product lines and slightly lower overall prior accident year loss takedowns largely driven by our general liability lines. With respect to the increases in our current accident year loss ratio, we remain cautious in recognizing the benefits from our product diversification and re-underwriting strategies within our general liability and professional liability product losses. We are choosing to increase the confidence level in our loss picks to reflect the higher loss cost trends we are seeing in prior accident years and the uncertainty around the economic and claims environment that will exist in the future when we ultimately settle claims on these long tail lines.

年初至今，我們今年前 9 個月的綜合綜合成本率為 95%，比去年同期上升了 4 個百分點。這一增長是由我剛才討論的項目推動的，影響了第三季度的業績，以及我們的專業責任和一般責任產品線中較高的自然損耗率的影響，以及主要由我們的一般責任驅動的上一事故年總體損失下降的略微下降的影響線。就我們目前事故年損失率的增加而言，我們仍然謹慎地認識到我們的產品多元化和再承保策略在我們的一般責任和專業責任產品損失中帶來的好處。我們選擇提高對損失選擇的信心水平，以反映我們在先前的事故年份中看到的更高的損失成本趨勢，以及當我們最終解決這些長尾索賠時未來將存在的經濟和索賠環境的不確定性線。

We also continue to maintain a cautious approach to recognizing prior accident year loss takedowns. We recognized $170 million or 3 points of prior accident loss takedowns through the first 9 months of the year, down slightly from a year ago. As I've stated in prior quarters, our loss reserving philosophy remains unchanged. We continue to hold loss reserves at levels that are more likely to prove redundant than deficient. And we are reacting quickly by recognizing additional loss reserves and loss trends outpaced previously held expectations. One final comment to make relative to our underwriting results with respect to our reinsurance segment where we produced a combined ratio of 102% in the quarter. While this result is disappointing, it should be noted that the prior accident year was adverse development in the runoff segment of our public entity book added 11 points to the third quarter reinsurance segment combined ratio.

我們也繼續對確認先前事故年度的損失保持謹慎的態度。我們確認今年前 9 個月的事故損失為 1.7 億美元，即 3 個百分點，比去年同期略有下降。正如我在前幾個季度所說的那樣，我們的損失準備理念保持不變。我們繼續將損失準備金保持在更有可能被證明是多餘而不是不足的水平。我們正在迅速做出反應，認識到額外的損失準備金和損失趨勢超出了先前的預期。最後要評論的是我們再保險部門的承保業績，本季我們的綜合成本率為 102%。雖然這一結果令人失望，但應該指出的是，上一個事故年度我們公共實體帳簿徑流部分的不利發展使第三季再保險部分綜合比率增加了 11 個百分點。

Excluding this development, our reinsurance result is more aligned with our long-term underwriting targets. We have worked hard in the past 2 years to reunderwrite our reinsurance treaty mix and return our reinsurance results to profitability. We remain confident that over the long term, we will see positive and sustainable impact of those efforts materialize in our results.

排除此一發展，我們的再保險績效與我們的長期承保目標更加一致。在過去的兩年裡，我們努力重新承保我們的再保險條約組合，並使我們的再保險業績恢復盈利。我們仍然相信，從長遠來看，我們將看到這些努力在我們的成果中實現積極和可持續的影響。

Next, I'll quickly touch on the 2 portions of our business that are reported as part of our other operations, our program services and other fronting operations and our insurance-linked securities operations. Total premium production within our program services and other fronting operations totaled $3 billion year-to-date versus $2.6 billion a year ago. resulting in an increase in operating revenues of 2% for the first 9 months of the year due to expansion of existing programs and addition of new programs. Our State National team continues to perform extremely well producing consistent profitability and continuing to pursue opportunities within our business development pipeline. Within our Nephila insurance-linked securities operations, revenues and expenses for the first 9 months of the year were down due to the impact of the sale of our MGA operations in 2022. Revenues within our fund management operations are up from last year due to revenues recognized during the third quarter of this year of $30 million related to the release of capital that had been trapped inside pockets.

接下來，我將快速談談我們業務的兩個部分，它們是我們其他業務的一部分，即我們的計劃服務和其他前置業務以及我們的保險相關證券業務。年初至今，我們的節目服務和其他前置業務的總保費製作總額為 30 億美元，而一年前為 26 億美元。由於現有項目的擴展和新項目的增加，今年前 9 個月的營業收入增長了 2%。我們的州國家團隊繼續表現出色，產生持續的盈利能力，並繼續在我們的業務發展管道中尋求機會。在我們的 Nephila 保險相關證券業務中，由於 2022 年出售 MGA 業務的影響，今年前 9 個月的收入和支出有所下降。由於收入，我們的基金管理業務中的收入比去年有所增加今年第三季確認了3000 萬美元，與釋放被困在口袋裡的資本有關。

Our assets under management and Nephila up $6.8 billion, is down from a year ago, due to the redemption of side pocket classes in the quarter, which outpaced profits generated from the funds year-to-date. However, the current pricing environment for catastrophe-exposed property risk has created a very attractive return proposition for investors. The platform has produced profitable results for the year. The team is working very hard to capitalize on these market opportunities, focusing on price transparency and portfolio construction. At this time, we feel very well positioned heading into 2024.

我們管理的資產和 Nephila 增加了 68 億美元，較去年同期有所下降，這是由於本季側袋類別的贖回，超過了基金今年迄今產生的利潤。然而，當前巨災財產風險的定價環境為投資者創造了非常有吸引力的回報主張。該平台今年已實現盈利。該團隊正在努力利用這些市場機會，重點關注價格透明度和投資組合建構。目前，我們感覺在邁向 2024 年時處於非常有利的位置。

Turning to current market commentary and outlook. Submission activity and new business opportunities remain robust outside of professional lines, which continue to be impacted by less M&A activity and an unfavorable pricing environment. Overall, trends within the specialty insurance marketplace remain strong. Just a few comments on rate across our portfolio. Throughout 2023, we have achieved modest rate increases across the landscape of our diversified product portfolio.

轉向當前的市場評論和前景。專業領域以外的提交活動和新商機仍然強勁，這繼續受到併購活動減少和不利的定價環境的影響。整體而言，專業保險市場的趨勢仍然強勁。只是對我們投資組合的利率進行一些評論。 2023 年全年，我們多元化產品組合的利率均實現了小幅成長。

In the current pricing environment, rate trends are more divergent by product class in contrast in the past few years. Pricing seems to be keeping pace with or staying slightly ahead of trend. We are achieving significant rate increases in our property coverages in select marine and energy product lines due to the recent industry loss experience and increasing cost of obtaining reinsurance protection. Additionally, within our general liability product lines, we continue to achieve modest rate increases across most product classes and have seen the level of increases improve over the course of the year.

在目前的定價環境下，與過去幾年相比，不同產品類別的費率趨勢更加不同。定價似乎與趨勢保持同步或略超前。由於最近的行業損失經驗和獲得再保險保護的成本不斷增加，我們在選定的海洋和能源產品線的財產保險範圍內實現了顯著的費率增長。此外，在我們的一般責任產品線中，我們繼續在大多數產品類別中實現適度的費率成長，並且在這一年中成長水準有所改善。

Within our insurance and reinsurance professional liability product lines, we have seen modest rate decreases overall, driven by notable decreases within our public directors and officers product consistent with the broader trends across the industry and to a lesser extent within our errors and omissions coverages. In other professional product -- liability product lines, particularly within our international portfolio, we are generally seeing consistency in rates and are continuing to pursue growth opportunities where we find the business to be adequately priced. We're also seeing moderate rate decreases globally within our cyber product line. In response to several years of significant rate increases and strong industry underwriting performance. Despite these current trends, we view cyber as a long-term growth opportunity.

在我們的保險和再保險專業責任產品線中，我們看到總體利率略有下降，這是由於我們的公共董事和高級管理人員產品的顯著下降與整個行業的更廣泛趨勢一致，並且在較小程度上是我們的錯誤和遺漏承保範圍內的下降。在其他專業產品—責任產品線中，特別是在我們的國際投資組合中，我們普遍看到費率的一致性，並在我們發現業務定價適當的地方繼續尋求成長機會。我們也看到我們的網路產品線在全球的利率適度下降。為了因應幾年來的顯著費率上漲和強勁的行業承保業績。儘管存在這些當前趨勢，我們仍將網路視為長期成長機會。

Finally, we continue to realize low single-digit rate decreases within our workers' compensation product line and are reacting accordingly on a state-by-state basis to maintain profitability. In closing, our focus as a business unit remains on achieving long-term profitable growth across our insurance platform. We have numerous success stories to celebrate across our diversified portfolio of doing just that. Reinsurance market conditions are favorable, and we are taking advantage of this within our operations. Our State National business continues its track record of consistent profitable performance. And Nephila, we are seeing strong returns thus far this year within our portfolios, opening the door to future growth opportunities.

最後，我們的工人賠償產品線繼續實現低個位數的下降，並根據各州的情況做出相應的反應，以保持獲利能力。最後，我們作為一個業務部門的重點仍然是在我們的保險平台上實現長期獲利成長。在我們多元化的投資組合中，有許多成功案例值得慶祝。再保險市場條件有利，我們正在我們的業務中利用這一點。我們的州全國業務繼續保持持續獲利業績的記錄。和 Nephila 一樣，今年迄今，我們的投資組合取得了強勁的回報，為未來的成長機會打開了大門。

Thank you. And with that, I will turn things back over to Tom.

謝謝。有了這個，我會把事情還給湯姆。

Thank you, Jeremy. And with that, Regina, if you would please be so kind as to open the floor for questions.

謝謝你，傑瑞米。那麼，雷吉娜，請您開始提問。

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

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

In the contractor book with the GL line, I think you described some challenges there. How long is the tail on that book? Do you think is it a broader issue that perhaps others are not recognizing yet? Or do you think they are and are acting accordingly? Just a little more there would be helpful.

在關於 GL 系列的承包商書中，我認為您描述了其中的一些挑戰。那本書的尾巴有多長？您認為這是一個其他人尚未認識到的更廣泛的問題嗎？或者你認為他們正在採取相應的行動嗎？再多一點會有幫助的。

Yes. Great, Mark, it's Jeremy. A couple of things on that. So on that primary casualty contractors liability book, and I think I might have spoken to this last year when we experienced some development in that book in the third or fourth quarter. We would observe that the tail has extended. And some of that would be naturally the result of the court closures and the pandemic effect. We didn't really react to that. But generally speaking, I think tail patterns within primary casualty are growing a little bit longer, and that's part of what we've adjusted within our sort of reserving models moving forward.

是的。太好了，馬克，這是傑里米。關於這一點有幾點。因此，關於主要傷亡承包商責任書，我想我去年可能已經談到過這一點，當時我們在第三或第四季度經歷了該書的一些發展。我們會觀察到尾巴已經延長。其中一些自然是法院關閉和大流行影響的結果。我們對此並沒有真正做出反應。但總的來說，我認為主要傷亡人員的尾部模式正在變得更長一些，這是我們在未來的儲備模型中調整的一部分。

Some of that is going to be in a re-write a significant amount of construction business. Some of that is also the nature of, as you get into larger projects, the tail is a little bit longer as well. So that is a little bit of what's going on there. I can't speak to what others are or are not recognizing. Clearly, there's been a lot of conversations from reinsurers with regard to their elevated levels of concerns around exposures that are growing. And Clearly, they've got access to a lot of data from clients to evaluate what that looks like. I can't speak to what's going through others' books.

其中一些將用於重寫大量的建築業務。其中一些也是本質上的，當你進入更大的項目時，尾巴也會更長一些。這就是那裡發生的一些事情。我無法談論其他人認識到或不認識到的事情。顯然，再保險公司就其對不斷增長的風險敞口的擔憂程度進行了很多討論。顯然，他們可以從客戶那裡獲取大量數據來評估情況。我無法談論別人書裡的內容。

Yes. When you think about your top line, the written premium in the insurance segment, as you kind of take steps to adjust to this environment, would you expect the growth rate to be more consistent with this quarter or kind of pop back up to the high single, low double digits?

是的。當您考慮您的收入，即保險領域的承保保費時，當您採取措施適應這種環境時，您是否預計增長率會與本季度更加一致，或者會彈回高位個位數、低兩位數？

Yes, great question, Mark. So I think some of that has worked its way through. So growth in insurance from a (inaudible) standpoint, clearly is moderated compared to recent years, and that was further the case in the third quarter. I think there's kind of 2 meaningful offsetting stories. So we've got pockets of premium contraction which are, I think, being offset by numerous bright spots of growth. So one, we're a substantial writer of professional and financial lines. It represents north of 1/4 of our overall writings. And as well been covered, that sector has been hit both by less economic activity from lower M&A and public listing activity as well as a decline in pricing.

是的，好問題，馬克。所以我認為其中一些已經解決了。因此，從（聽不清楚）的角度來看，保險業的成長顯然與近年來相比有所放緩，第三季的情況更是如此。我認為有兩個有意義的抵消故事。因此，我認為，我們的保費出現了一些收縮，但這些收縮被許多成長亮點所抵消。因此，我們是專業和金融領域的資深作家。它占我們全部著作的 1/4 以北。正如我們所報導的那樣，該行業受到併購和公開上市活動減少導致的經濟活動減少以及定價下降的打擊。

And the latter of which has meant that we're less comfortable with the risk adjusted funds and rate adequacy. And therefore, we've let some of that business lapse. That's leading to lower renewal retention. We're being less aggressive on new business. So we're seeing contraction there. Internationally, the business is performing well. The premiums are flat. We've also contracted in pockets of the general liability portfolio, which I touched on in my comments. As we look to reshape the portfolio, improve diversification.

後者意味著我們對風險調整基金和利率充足性較不滿意。因此，我們已經放棄了部分業務。這會導致續訂保留率降低。我們對新業務的積極性有所減弱。所以我們看到那裡出現收縮。在國際上，該業務表現良好。保費持平。我們也收縮了一般責任投資組合的一部分，我在評論中談到了這一點。當我們尋求重塑投資組合時，提高多元化。

I think the best example of that is demonstrating more discipline within construction in the big 4 states. And lastly, in our marine and energy portfolio internationally, we let go one very large facility that wasn't performing, and we're seeing less adjustment premiums in our marine war book given the closure of the grain corridor in the Black Sea. We've been able to offset those reductions with meaningful growth across a broad range of products.

我認為最好的例子就是在四大州的建設中展現更多的紀律。最後，在我們的國際海洋和能源投資組合中，我們放棄了一個表現不佳的大型設施，而且由於黑海穀物走廊的關閉，我們的海洋戰爭帳簿中的調整溢價減少了。我們已經能夠透過各種產品的有意義的成長來抵消這些減少。

So property in the marine, binding, personal lines, surety, programs, environmental, insurtech in our U.K., Europe, Asia platforms across other marine energy lines. So I feel we're actually really good about our forward prospects.

因此，我們在英國、歐洲、亞洲平台上跨其他海洋能源業務的海洋、綁定、個人保險、擔保、計劃、環境、保險科技等領域的財產。所以我覺得我們的前景確實非常好。

And about the actions that we've been taking. A lot of that is working its way through the portfolio. But all of those actions collectively, I think that should be accretive to earnings into returns. The one other comment I might make on premium volume kind of pertains to the property marketplace. And we've grown here but that's due in large part to taking meaningful rate versus expanding exposure. And property overall is a smaller component of our portfolio than I think it is for many others. I do believe the risk-adjusted returns on property have been very compelling this year, we've been taking advantage both in insurance as well as our Nephila operations. But that said, I appreciate some have certainly leaned into the market harder this year and use that to fuel overall growth in returns, and it's been a good year through 10 months, no doubt. If the property price environment remains constructive, and I think it will, we can further take advantage of that across our platform in '24, as well.

以及我們一直在採取的行動。其中許多正在透過投資組合發揮作用。但我認為所有這些行動加在一起應該會增加收益轉化為回報。我可能對保費交易量發表的另一條評論與房地產市場有關。我們已經在這裡成長，但這在很大程度上是由於採取有意義的利率而不是擴大風險敞口。總體而言，與我認為的許多其他投資組合相比，房地產在我們的投資組合中所佔的比例較小。我確實相信今年的風險調整後財產回報非常引人注目，我們在保險和 Nephila 業務方面都發揮了優勢。但話雖如此，我還是讚賞一些人今年肯定更加努力地投入市場，並利用這一點來推動回報的整體增長，毫無疑問，過去 10 個月是美好的一年。如果房地產價格環境仍然具有建設性（我認為會如此），我們也可以在 24 年透過我們的平台進一步利用這一優勢。

(Operator Instructions) Your next question will come from the line of Andrew Andersen with Jefferies.

（操作員說明）您的下一個問題將來自 Andrew Andersen 和 Jefferies 的線路。

Maybe continuing on the property opportunity in insurance. If I look back at '22, I think Property and Marine was maybe about 15% of NPE. Is there kind of a ceiling for the amount that you'll write for those 2 lines? And I'm thinking it carries a higher CAT load, but perhaps a better underlying loss ratio just given the strong rate environment?

也許會繼續利用保險領域的財產機會。如果我回顧 22 年，我認為房地產和海事行業可能佔 NPE 的 15% 左右。您為這兩行寫的金額是否有上限？我認為它具有更高的 CAT 負載，但考慮到強勁的費率環境，也許潛在的損失率會更好？

Yes. And important to recognize, it's Jeremy again. Important, too, to recognize that we add access and to take advantage of the property market environment and the risk-adjusted return propositions in a couple of different ways. So we can write that through conventional traditional insurance. And we can also take advantage of that and are taking advantage of that through our Nephila insurance-linked securities operations, which is more where the reinsurance would come into play as well.

是的。重要的是要認識到，又是傑里米。同樣重要的是，要認識到我們以多種不同的方式增加了准入並利用房地產市場環境和風險調整後的回報主張。所以我們可以透過傳統的傳統保險來寫。我們也可以利用這一點，並且正在透過我們的 Nephila 保險相關證券業務來利用這一點，這也是再保險發揮作用的地方。

This year has been interesting. So it's fortunately, we're kind of 10 months into the year, we're largely through the wind season. The book has performed -- the books have performed across the industry quite well. But it's been a challenging last 6 years previously. 5 of the last 6 have been aggregate insurance losses for natural catastrophes in excess of $100 billion. So while the risk-adjusted return proposition from a modeled situation looked very compelling this year. There was questions in our mind as to how is the year going to play out. We would benefit if it did play out well. We did grow and took advantage of the rate and pricing environment. And then it was a question of what will it look like going into 2024.

今年很有趣。幸運的是，今年已經過去 10 個月了，我們基本上已經度過了風季。這本書的表現非常出色——這些書在整個產業的表現都相當不錯。但六年前這一直是個挑戰。過去 6 起天災保險損失中有 5 起超過 1,000 億美元。因此，雖然今年根據模型情況提出的風險調整後回報看起來非常引人注目。我們心中有這樣的疑問：這一年將如何度過。如果進展順利，我們將會受益。我們確實成長並利用了費率和定價環境。接下來的問題是進入 2024 年會是什麼樣子。

Will the pricing environment be sustainable? Or would it sort of change after sort of one year? It does look like we should have stable but firm and constructive market pricing environment. So we have the ability to deploy more capital there should we choose to do so. We'll look at that. I'm not going to put a projection around that, but it's certainly something that we would take a close look at of a good year.

定價環境是否可持續？或者一年後它會有所改變嗎？看起來我們確實應該有一個穩定但堅定和建設性的市場定價環境。因此，如果我們選擇這樣做，我們就有能力在那裡部署更多資本。我們會看看這個。我不會對此做出預測，但這肯定是我們會仔細審視美好一年的事情。

Yes. And then maybe on the reinsurance side, the book has changed a lot over the years and so is the rate environment. How should we kind of think of like an updated target near to medium term for an ex-CAT ex-PYD combined ratio? And maybe just with that, can you kind of give us a refresher of the type of GL and professional liability accounts you're writing in this segment?

是的。也許在再保險方面，多年來這本書發生了很大變化，費率環境也是如此。我們該如何看待 ex-CAT ex-PYD 綜合比率的近中期更新目標？也許僅此而已，您能給我們回顧一下您在本部分中編寫的總帳和專業責任帳戶的類型嗎？

Sure. So from a sort of a reinsurance platform standpoint, we are, first and foremost, focused on profitability, versus being focused on growth. Now it's happened to be within the professional casualty and specialty lines, the last few years, we've been able to take advantage of some pockets of growth opportunistically to offset some of the contraction that the portfolio experienced when we repositioned property through Nephila. From a profitability target standpoint and a combined ratio, we've kind of spoken in the last couple of years, I mean, we want that book to generate meaningful returns on -- meaningful and appropriate returns on capital and pushing it towards the lower 90s or 90 even being a target is something that we are aspiring to sort of achieve.

當然。因此，從某種再保險平台的角度來看，我們首先關注的是獲利能力，而不是成長。現在碰巧在專業傷亡和特種產品領域，過去幾年，我們已經能夠機會性地利用一些增長機會來抵消我們透過 Nephila 重新定位財產時投資組合所經歷的一些收縮。從獲利目標和綜合比率的角度來看，我們在過去幾年中已經說過，我的意思是，我們希望這本書能夠產生有意義的回報——有意義且適當的資本回報，並將其推向90 年代以下甚至成為 90 歲的目標也是我們渴望實現的目標。

And we're certainly trying to price our deals and portfolio on the most recent underwriting years in that regard. But there's just a lot of noise on the back here. And on long-tail lines within reinsurance, it takes a while to ultimately see where that book gets. We're going to always reserve with an added degree of caution on long-tail professional and liability lines. So that will take a little bit of time. As far as the makeup of the book, it really can kind of change, and it really depends on the underlying clients. We have both quota share and excess of loss structures. These are often broad highly -- well respected, highly regarded insurance companies where we participate on a subscription basis on the accounts, and it's a wide range of underlying risks. It is more of a U.S. position book, but it does have some international exposure as well.

我們當然會嘗試根據最近幾年的承保情況對我們的交易和投資組合進行定價。但這裡後面有很多噪音。在再保險領域的長尾業務中，需要一段時間才能最終看到這本書的去向。我們將始終對長尾專業和責任險種保持更謹慎的態度。所以這需要一點時間。就這本書的組成而言，它確實可以改變，而且它確實取決於潛在的客戶。我們有配額份額和超額損失結構。這些通常是廣泛的、備受尊敬的、備受推崇的保險公司，我們以認購的方式參與其中的帳戶，並且存在廣泛的潛在風險。它更像是一本美國立場書，但也確實有一些國際曝光。

Your next question will come from the line of Scott Heleniak with RBC Capital Markets.

您的下一個問題將來自加拿大皇家銀行資本市場部的 Scott Heleniak。

Just a question on the intellectual collateral protection line. Just wondering if you feel like you captured most of the impact there from some of the recent events that were in the headlines. And just how comfortable are you with, I guess, the exposures there and also some of the changes? I think you touched a little bit on those are some of the changes you made to that book...

只是關於智力抵押保護線的問題。只是想知道您是否覺得您從頭條新聞中最近發生的一些事件中獲得了大部分影響。我猜您對那裡的曝光以及一些變化感到滿意嗎？我認為您對這本書所做的一些更改有所了解...

Yes. Sure, Scott -- Yes. Sure, Scott again, Jeremy. So we previously disclosed. Sorry, disclosed our exposure to Vesttoo was in the form of 2 fraudulent letters of credit, which were provided as reinsurance collateral to our Bermuda-based insurance carrier for intellectual property collateral protection insurance products. One was for $50 million. The other is for just under $78 million. During the third quarter, we had to pay a claim for the $50 million amount. That we otherwise would not have had to pay had the collateral be valid. And that's where we recognized $25 million as far as credit loss.

是的。當然，斯科特——是的。當然，又是史考特，傑瑞米。所以我們之前有披露過。抱歉，我們披露了 Vesttoo 的風險是以 2 份欺詐性信用證的形式提供的，這些信用證是作為知識產權抵押保護保險產品的再保險抵押品提供給我們位於百慕大的保險公司的。其中一件售價 5000 萬美元。另一件的售價略低於 7800 萬美元。第三季度，我們不得不支付 5000 萬美元的索賠。如果抵押品有效，我們就不必付款。這就是我們確認 2500 萬美元信用損失的地方。

So we're suggesting we believe there's some degree of an ability to mitigate some of that exposure. But that would be a pocket of exposure. We have assessed the likelihood around whether a claim may arise. It's a claims-made product. So on that second exposure, there isn't a claim yet. And just for familiarity on the product, you have to have both a claim. And then it has to be the case that the underlying assets, including the intellectual property, can't -- don't have a value that it could offset against the loan that was in place.

因此，我們建議我們相信有一定程度的能力來減輕部分風險。但這將是一小部分曝光。我們評估了是否可能提出索賠的可能性。這是一款聲稱製造的產品。因此，在第二次曝光時，還沒有任何索賠。為了熟悉產品，您必須同時擁有這兩個聲明。然後，包括智慧財產權在內的基礎資產必須具有無法抵銷現有貸款的價值。

And so what we're highlighting there is we have exposure and we're flagging that it's at least reasonably possible that, that could become a claim. And if it were to, we have additional exposure there. Clearly, in that situation, we will take every step that we possibly can to mitigate or remediate against that loss as well. So we're actively pursuing remedies, including within the Vesttoo bankruptcy to reduce any losses that we incurred.

因此，我們要強調的是，我們已經曝光了，我們指出，至少有合理的可能，這可能會成為一種主張。如果是的話，我們在那裡就有更多的曝光。顯然，在這種情況下，我們也將採取一切可能的措施來減輕或補救這種損失。因此，我們正在積極尋求補救措施，包括在 Vesttoo 破產案中尋求補救措施，以減少我們遭受的任何損失。

On the core product line, this was a relatively new product. It was a new product. It was brought to market I think sort of in 2020. We had -- played an integral role in the inception of a sort of a nascent product. And undoubtedly, we've learned from the early years, if you analogize it to sort of R&D. And we've taken a number of underwriting actions within that book. But we've also contracted our premium writing significantly. And one of the things we've done is we shorten the limits that we issue. And clearly, we're not fronting within that book anymore either.

在核心產品線上，這是一個相對較新的產品。這是一個新產品。我認為它是在 2020 年推向市場的。我們在新興產品的誕生過程中發揮了不可或缺的作用。毫無疑問，如果你把它比喻為某種研發，我們已經從早年學到了教訓。我們在那本書中採取了一些核保行動。但我們也大幅縮減了優質寫作。我們所做的事情之一就是縮短了我們發布的限制。顯然，我們也不再在那本書中佔據主導地位。

So we'll watch how the core book performs. But a lot of the exposure that is more meaningful to Markel come to that exposure to Vesttoo, which I covered off.

所以我們將觀察核心書的表現。但對 Markel 來說更有意義的曝光很多都來自於 Vesttoo 的曝光，我對此進行了報告。

And then just another question just on -- you mentioned you're increasing loss picks in certain lines, which I know Markel is a conservative company and has always been a conservative company. But is there any particular areas that you can point to? Or is that just kind of broadly just in -- casualty, just trying to pick up inflation and severity and those kinds of things? Just anything more to add on that?

然後是另一個問題——你提到你正在增加某些產品線的損失選擇，我知道馬克爾是一家保守的公司，而且一直都是一家保守的公司。但有什麼具體的領域是您可以指出的嗎？或者這只是一種廣泛的傷亡，只是試圖加劇通貨膨脹和嚴重程度以及諸如此類的事情？還有什麼要補充的嗎？

Yes. Scott. It is not significantly concentrated within our general liability and professional product lines and more specifically within segments of those classes, but there are large segments and ones we've runner for a long time, we've also grown meaningfully over the years. So again, that primary casualty contractors GL, accessing umbrella, D&O, E&O and what I would sort of say there is we feel like there continues to be uncertainty in the current claims environment. And we're dealing with a degree of unknown.

是的。斯科特.它並沒有明顯集中在我們的一般責任和專業產品線中，更具體地說，在這些類別的細分市場中，但有很大的細分市場，並且我們已經運營了很長時間，這些年來我們也取得了有意義的成長。再說一次，主要傷亡承包商 GL、訪問保護傘、D&O、E&O 以及我想說的是，我們認為當前的索賠環境仍然存在不確定性。我們正在應對一定程度的未知。

And I would just say, generally, that causes our radar to be up. And it doesn't feel like the recent social inflation trends, the cost to adjust and settle claims, the prevalence of litigation funding, the aggressiveness of the plaintiffs' bar, the sentiment of juries and so on is likely to abate in the near term. So we're planning accordingly. We're building in a margin of safety today to try to get a step ahead of that tomorrow.

我只想說，一般來說，這會導致我們的雷達啟動。而且近期的社會通膨趨勢、調整和和解索賠的成本、訴訟資金的盛行、原告律師資格的積極性、陪審團的情緒等在短期內都不會減弱。 。所以我們正在做相應的計劃。我們今天正在建立安全邊際，試圖在明天領先一步。

That's kind of what Markel has always done to your point. We are also responding by we're pushing rate. We're adjusting terms. We're shortening limits. We're modifying attachment points on a deal-by-deal basis.

這就是馬克爾一直以來對你的觀點所做的事情。我們也透過提高利率來回應。我們正在調整條款。我們正在縮短限制。我們正在逐筆交易地修改附著點。

We're shaping our portfolios, really taking a robust analysis of this underlying claims trends and activities, using segmentation strategies that can impact exposures and locations subclasses, insureds and so on. And we're trying to build more diversification into our book by challenging areas where we were maybe slightly concentrated in favor of segments where we wanted to grow. So I mentioned earlier the example of sort of thinking of construction or contractors in the 4 largest states, being sensitive to the weight of the business in those spaces.

我們正在塑造我們的投資組合，真正對這一潛在索賠趨勢和活動進行強有力的分析，使用可以影響風險敞口和位置子類、被保險人等的細分策略。我們正在嘗試透過挑戰那些我們可能稍微集中的領域來支持我們想要成長的細分市場，從而在我們的書中建立更多的多元化。因此，我之前提到了四個最大州的建築或承包商的思考範例，他們對這些領域的業務權重很敏感。

So each organization, each company is going to sort of take different approaches. Timing is always going to differ largely, I think what I'm speaking to. We view that to be an industry-wide set of circumstances. We've been talking about it for a while. The industry has been grappling with in a while. And I would also say that, fortunately, I think it's leading to really good conversations with our trading partners. In the current trading environment, given some of the industry missteps on the year, I mean, more due consideration is given to the quality of the insurance solution, our market-leading claims handling capabilities, I think, are really well recognized, and clients are thinking really carefully about who's going to be there for them in 5 years and 10 years and 20 years.

因此，每個組織、每家公司都會採取不同的方法。我認為我所說的時間總是會有很大差異。我們認為這是整個行業的情況。我們已經討論了一段時間了。該行業已經陷入困境一段時間了。我還想說，幸運的是，我認為這會導致我們與貿易夥伴進行真正良好的對話。在目前的交易環境下，考慮到今年行業的一些失誤，我的意思是，更多地考慮了保險解決方案的質量，我認為我們市場領先的理賠處理能力確實得到了廣泛的認可，並且客戶他們正在認真思考5 年、10 年和20 年後誰會在他們身邊。

So I think we're kind of trying to go with that from a little bit of a position of strength.

所以我認為我們正在嘗試從一點點的實力角度來實現這一點。

And this concludes our question-and-answer session. I would like to hand the call back over to Tom Gayner for any closing remarks.

我們的問答環節到此結束。我想將電話轉回給湯姆·蓋納（Tom Gayner），讓他發表結束語。

Thank you very much for joining us. We look forward to catching up with you 90 days from now. Thank you so much. Bye-bye.

非常感謝您加入我們。我們期待 90 天後與您聯繫。太感謝了。再見。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。