Old Republic International Corporation (ORI) 2026 Q1 法說會逐字稿

Thank you for standing by, and welcome to the Old Republic International first-quarter 2026 earnings conference call. (Operator Instructions)

感謝各位稍候，歡迎參加 Old Republic International 2026 年第一季財報電話會議。（接線員指示）

I'd now like to turn the call over to Joe Calabrese with the Financial Relations Board. You may begin.

現在我想把電話交給 Financial Relations Board 的 Joe Calabrese。您可以開始了。

Thank you, Rob. Good afternoon, everyone, and thank you for joining us for the Old Republic conference call to discuss first-quarter 2026 results. This morning, we distributed a copy of the press release and posted a separate financial supplement. Both of the documents are available on Old Republic's website at oldrepublic.com.

謝謝你，Rob。各位下午好，感謝各位參加 Old Republic 的電話會議，討論 2026 年第一季業績。今天早上，我們已發佈新聞稿並另行上傳一份財務補充資料。兩份文件皆可於 Old Republic 的網站 oldrepublic.com 取得。

Please be advised that this call may involve forward-looking statements as discussed in the press release dated April 23, 2026. Assumptions, uncertainties, and risks exist that may cause results to differ materially from those set forth in these forward-looking statements.

請注意，本次電話會議可能包含前瞻性陳述，如 2026 年 4 月 23 日新聞稿所述。存在若干假設、不確定性與風險，可能導致實際結果與這些前瞻性陳述所載內容出現重大差異。

For more information on these assumptions, uncertainties, and risks, please refer to the forward-looking statements discussion in the press release and the company's other recent SEC filings and the risk factors discussed in the company's most recent Form 10-K and other recent SEC filings. We may also include references to net income, excluding net investment gains or net operating income, a non-GAAP financial measure, in our remarks or in response to questions. GAAP reconciliations are included in the press release.

關於這些假設、不確定性與風險的更多資訊，請參閱新聞稿中的前瞻性陳述討論，以及公司近期向 SEC 提交的其他申報文件，並參考公司最新 Form 10-K 與其他近期 SEC 申報文件中所討論的風險因素。我們在發言或回答問題時，也可能提及扣除淨投資收益後的淨利或淨營業利益等非 GAAP 財務衡量指標。GAAP 對帳已包含於新聞稿中。

Presenting on today's conference call will be Craig Smiddy, President and CEO; Frank Sodaro, Chief Financial Officer; and Carolyn Monroe, President and CEO of Old Republic's National Title Insurance Group. Management will make some opening remarks, and then we'll open the line for your questions.

今天的電話會議出席簡報者包括：總裁兼執行長 Craig Smiddy；財務長 Frank Sodaro；以及 Old Republic 全國產權保險集團（National Title Insurance Group）總裁兼執行長 Carolyn Monroe。管理團隊將先做開場發言，之後我們將開放提問。

At this time, I'd like to turn the call over to Craig. Please go ahead, sir.

此刻，我想把電話交給 Craig。先生，請開始。

Okay. Joe, thank you very much. Good afternoon, everyone, and welcome again to Old Republic's first-quarter 2026 earnings call. In the quarter, we produced $211.5 million of consolidated pretax operating income compared to $252.7 million, and our consolidated combined ratio was 96.6% compared to 93.7%. For the quarter, our operating return on beginning equity was 11.5% and growth in book value per share, including dividends, was 2.6%.

好的。Joe，非常感謝你。各位下午好，再次歡迎參加 Old Republic 2026 年第一季財報電話會議。本季我們的合併稅前營業利益為 2.115 億美元，去年同期為 2.527 億美元；合併綜合比率為 96.6%，去年同期為 93.7%。本季以期初股東權益計算的營業報酬率為 11.5%；每股帳面價值（含股利）成長 2.6%。

Specialty Insurance grew net premiums earned by 4.7% over the first quarter of '25 and produced $209 million of pretax operating income compared to $260 million. Specialty's combined ratio was 94.8% compared to 89.8% Title Insurance grew premiums and fees by 12% over the first quarter of '25 and produced $16.7 million of pretax operating income compared to $4.3 million. Title's combined ratio was 100% compared to 102%. Our conservative reserving practices continue to produce favorable prior year loss development in both Specialty Insurance and Title Insurance, and Frank will provide more details on that topic.

專業保險（Specialty Insurance）之已賺保費較 2025 年第一季成長 4.7%，稅前營業利益為 2.09 億美元，去年同期為 2.60 億美元。專業保險的綜合比率為 94.8%，去年同期為 89.8%。產權保險（Title Insurance）之保費與費用較 2025 年第一季成長 12%，稅前營業利益為 1,670 萬美元，去年同期為 430 萬美元。產權保險的綜合比率為 100%，去年同期為 102%。我們保守的準備金提列做法，持續在專業保險與產權保險兩個部門帶來有利的前期年度損失發展（prior year loss development）；Frank 將就此提供更多細節。

So with that, Frank, I will turn the discussion over to you, and then you can turn them back to me to cover Specialty Insurance, and we'll have Carolyn cover Title Insurance.

接下來，Frank，我把討論交給你；之後你再交回給我來說明專業保險，並由 Carolyn 說明產權保險。

Thank you, Craig, and good afternoon, everyone. In this morning's release, we reported net operating income of $171 million for the quarter compared to $202 million last year. On a per share basis, comparable quarter-over-quarter results were $0.68 compared to $0.81. So starting with investments. Net investment income increased just over 4% in the quarter, primarily as a result of a larger investment base and higher yields on the bond portfolio.

謝謝你，Craig，各位下午好。在今天早上的新聞稿中，我們公布本季淨營業利益為 1.71 億美元，去年同期為 2.02 億美元。以每股計算，可比的年對年結果為 0.68 美元，去年同期為 0.81 美元。接著先談投資。本季淨投資收益增加略高於 4%，主要來自更大的投資基礎以及債券投資組合較高的殖利率。

While our average rate on corporate bonds acquired during the quarter was 4.7% compared to the average yield rolling off of about 3.8%, the total bond portfolio book yield held fairly steady with year-end at about 4.75%. With the current interest rate environment, we expect net investment income growth to remain in the low to mid-single digits throughout the rest of 2026.

本季新購入公司債的平均利率為 4.7%，相較於到期或汰換（rolling off）的平均殖利率約 3.8%；但整體債券投資組合的帳面殖利率與年末相比大致維持穩定，約為 4.75%。在目前的利率環境下，我們預期 2026 年剩餘期間淨投資收益的成長將維持在低至中個位數百分比。

Turning now to loss reserves. Both Specialty and Title Insurance recognized favorable development in the quarter, leading to a 1.5 percentage point benefit in the consolidated loss ratio compared to 2.6 points of benefit last year. While this level of favorable development was lower than we had experienced in recent years, it is within our expectations.

接著談損失準備金。專業保險與產權保險本季皆認列有利發展，使合併損失率受益 1.5 個百分點；去年同期受益為 2.6 個百分點。雖然本次有利發展的水準低於我們近年所見，但仍在我們的預期範圍內。

For Specialty Insurance, property continued to have favorable development and led the way this quarter with a slightly higher level than last year. Commercial auto and workers' comp had solid favorable development in the quarter. However, both were at lower levels than last year and general liability had a moderate amount of unfavorable development that spanned several more recent accident years and was partially offset by favorable development in older years.

就專業保險而言，財產險（property）持續呈現有利發展，且本季表現領先，水準略高於去年。商業車險（commercial auto）與勞工補償險（workers' comp）本季也有穩健的有利發展。然而，兩者的有利發展水準均低於去年；一般責任險（general liability）則出現中度不利發展，涵蓋數個較近期的事故年度（accident years），並部分由較早年度的有利發展所抵銷。

We ended the quarter with book value per share of $24.53, which inclusive of the regular dividend equated to an increase of 2.6% since year-end, resulting primarily from our operating earnings. In the quarter, we paid nearly $77 million in dividends and repurchased $161 million worth of our shares. Since the end of the quarter, we repurchased another $52 million worth of shares, which leaves us with about $640 million remaining in our current repurchase program.

本季末每股帳面價值為 24.53 美元，若包含例行股利，自年末以來增加 2.6%，主要來自我們的營業獲利。本季我們支付近 7,700 萬美元股利，並回購價值 1.61 億美元的公司股票。自季末以來，我們又回購了 5,200 萬美元的股票，使目前回購計畫尚餘約 6.40 億美元額度。

I'll now turn the call back over to Craig for a discussion of Specialty Insurance.

接下來我把電話交回給 Craig，請他說明專業保險。

Thanks, Frank. So Specialty Insurance net premiums written were up 3.4% in the quarter coming from strong rate increases on commercial auto and general liability, some new business writings and increasing premium in our newer Specialty operating companies, partially offset by a decline in our renewal retention ratios as we continue to prioritize rate in certain lines of coverage within our portfolio. We appear to be leading the market, specifically within the commercial auto, by driving mid-teen rate increases.

謝謝，Frank。本季專業保險的淨簽單保費（net premiums written）成長 3.4%，主要來自商業車險與一般責任險的強勁費率上調、部分新業務承保，以及我們較新的專業保險營運公司保費增加；但因我們在投資組合中某些險種持續優先追求費率水準，續保留存率（renewal retention ratios）下降，部分抵銷了成長。我們看起來在市場上處於領先地位，尤其在商業車險方面，推動約十幾個百分點（mid-teen）的費率上調。

As mentioned in my opening remarks, in the quarter, Specialty Insurance pretax operating income was $209 million, while the combined ratio was 94.8%. The loss ratio for the quarter was 63.6%, and that included 1.6 percentage points of favorable prior year reserve development, and that compares to a 61.7% loss ratio in the first quarter last year, and that included 3.3 points of favorable development.

如我在開場所提，本季專業保險稅前營業利益為 2.09 億美元，綜合比率為 94.8%。本季損失率為 63.6%，其中包含 1.6 個百分點的前期年度準備金有利發展；相較之下，去年第一季損失率為 61.7%，其中包含 3.3 個百分點的有利發展。

The expense ratio for the quarter was 31.2%, and that compares to 28.1% in the first quarter last year. Our continued investments into new Specialty operating companies, technology modernization, data and analytics and AI placed some strain on the expense ratio this quarter, but we remain confident that all of these investments will provide significant long-term upside.

本季費用率為 31.2%，相較去年第一季為 28.1%。我們持續投資於新的專業保險營運公司、科技現代化、資料與分析以及 AI，對本季費用率造成一些壓力，但我們仍有信心，這些投資將帶來顯著的長期上行空間。

Turning to commercial auto. Net premiums written were up just over 1% in the quarter, while the loss ratio came in relatively flat with the first quarter of last year at 70.4%. As I referred earlier, rate increases remained steady with the fourth quarter that we reported, and that is at a 16% rate increase level, which is in line with loss trends.

接著談商業車險。本季淨簽單保費成長略高於 1%，損失率為 70.4%，與去年第一季大致持平。如我先前提到，費率上調幅度與我們所報告的第四季維持一致，約為 16% 的費率上調水準，與損失趨勢相符。

Workers' comp, on the other hand, net written premiums were also up just over 1% in the quarter, while the loss ratio came in at 62.3% compared to 58.7% in the first quarter last year. And most of that difference is due to the difference in the level of favorable prior year loss reserve development. Rate decreases for work comp were about 2%. And here, too, that's in line with loss trends, with severity remaining relatively consistent and frequency continuing its downward trend.

另一方面，勞工補償險本季淨簽單保費也成長略高於 1%，但損失率為 62.3%，相較去年第一季的 58.7%。其中大部分差異來自前期年度損失準備金有利發展水準的不同。勞工補償險的費率下調約為 2%。在這裡也同樣與損失趨勢一致：損失嚴重度（severity）相對維持一致，而損失頻率（frequency）則持續呈下降趨勢。

So while we're seeing some top-line pressure along with some pressure on the expense ratio, we remain confident that our underwriting approach to focus on risk adequate rates will continue to produce profitable combined ratios, which is really the foremost priority for us. We also expect to see continuing growth in top-line contributions from our newer specialty operating companies.

因此，儘管我們看到保費收入（top-line）面臨一些壓力，同時費用率也有些壓力，但我們仍然有信心，我們以「風險足額費率」為核心的核保方法將持續帶來具獲利性的綜合率，而這確實是我們最優先的重點。我們也預期，來自較新專業（specialty）營運公司的保費收入貢獻將持續成長。

A couple of other things. Additionally, in the quarter, we announced the formation of another new operating company, Old Republic Property, led by Patrick Hagerty, who has assembled a highly respected team of underwriters that will specialize in very selective property placements.

另外還有幾點。此外，在本季我們宣布成立另一家新的營運公司 Old Republic Property，由 Patrick Hagerty 領導；他已組建一支備受尊敬的核保團隊，將專注於非常精選的財產險承保配置。

Just this week, the executive team here at the holding company in Chicago met with Patrick and his team, and they're currently focused on building out their operating platform. And ultimately, we expect this new venture to produce solid underwriting profits, very similar to what Old Republic Inland Marine has delivered over the last couple of years.

就在本週，位於芝加哥的控股公司管理團隊與 Patrick 及其團隊會面，他們目前正專注於建置其營運平台。最終，我們預期這項新事業將產生穩健的核保利潤，與 Old Republic Inland Marine 過去幾年所交出的成果非常相似。

We also announced the rebranded Lodestar Claims & Risk Services, which is now set up as a separate stand-alone operating company focused on growing fee income for our portfolio. And finally, as we mentioned in the release, we expect to close on the ECM acquisition around July 1, which will also contribute to top line and bottom line in the second half of this year.

我們也宣布重新品牌的 Lodestar Claims & Risk Services，現已設立為獨立的單一營運公司，專注於為我們的投資組合擴大手續費收入。最後，如同我們在新聞稿中提到的，我們預期將於 7 月 1 日左右完成 ECM 的收購，這也將在今年下半年同時貢獻保費收入（top line）與獲利（bottom line）。

So that concludes my comments for Specialty, and I'll now turn the discussion over to Carolyn to report on Title.

以上是我對 Specialty 的說明，接下來我把討論交給 Carolyn 報告 Title（產權保險）業務。

Thank you, Craig, and good afternoon. Title Insurance reported premium and fee revenue for the quarter of $678 million. This represents an increase of 12% from first quarter of last year. So far in 2026, we have seen continued strong commercial activity. Consistent with prior years, the first quarter is seasonally slow in the residential market.

謝謝你，Craig，各位午安。本季產權保險（Title Insurance）的保費與手續費收入為 6.78 億美元。較去年第一季增加 12%。截至 2026 年目前為止，我們看到商業不動產相關活動持續強勁。與往年一致，第一季在住宅市場具有季節性淡季特徵。

The start of the 2026 home buying season was marked by higher inventory levels, lower interest rates and moderating price growth compared to 2025. While interest rates spiked during the last month of the quarter due to uncertainty and inflation concerns, they did ease slightly in April.

2026 年購屋季的開始，呈現出庫存水位較高、利率較低，以及相較 2025 年房價成長趨緩的特徵。雖然本季最後一個月因不確定性與通膨疑慮導致利率飆升，但在 4 月確實略有回落。

The premiums produced in our direct Title operations were up 6% from this time last year. Our agency-produced premiums were up 14% and made up nearly 80% of our revenues during the quarter, which is up from 78% in the first quarter of last year. Commercial premiums increased this quarter and were 27% of our earned premiums this quarter compared to 24% in the first quarter of last year.

我們自營 Title 業務所產生的保費，較去年同期成長 6%。由代理（agency）所產生的保費成長 14%，且本季約占我們收入的近 80%，高於去年第一季的 78%。本季商業保費增加，且本季商業保費占我們已賺取保費（earned premiums）的 27%，相較去年第一季的 24%。

During the quarter, we entered into a new excess of loss reinsurance agreement that will expand our capacity to underwrite large commercial deals. Investment income was also up this quarter by 4% compared to first quarter of '25, driven by a higher invested asset base and higher investment yields.

本季我們簽訂了一項新的超額損失再保（excess of loss reinsurance）協議，將擴大我們承保大型商業案件的能力。投資收益本季亦較 2025 年第一季成長 4%，主要受較高的投資資產基礎與較高的投資殖利率所帶動。

Our loss ratio improved to 2.6% this quarter, including 1.1 percentage points of favorable prior year loss reserve development, compared to 2.7% in first quarter of '25 that included a 0.8 percentage points of favorable development. Our expense ratio improved nearly 2 percentage points to 97.5% from 99.4% in the first quarter of '25. While our combined ratio of 100% is still elevated, the improvement reflects increased revenues and the margin expansion efforts we have been working on.

本季我們的損失率改善至 2.6%，其中包含 1.1 個百分點來自前期年度損失準備金的有利發展（favorable prior year loss reserve development）；相較之下，2025 年第一季為 2.7%，其中包含 0.8 個百分點的有利發展。我們的費用率改善近 2 個百分點，從 2025 年第一季的 99.4% 降至 97.5%。雖然我們的綜合率 100% 仍偏高，但這項改善反映了收入增加，以及我們一直在推動的利潤率擴張措施。

Our pretax operating income increased to $16.7 million this quarter compared to $4.3 million in the first quarter of '25. As we look forward to some long-awaited improvement in the residential housing market, we remain focused on operational efficiency and efforts to expand our margins. We're committed to equipping our agents with the latest fraud prevention tools and other technological solutions to help them succeed in all market conditions.

本季稅前營運利益增加至 1,670 萬美元，較 2025 年第一季的 430 萬美元為高。展望未來，隨著住宅房市期待已久的改善，我們仍將專注於營運效率與擴大利潤率的努力。我們致力於為代理人配備最新的防詐工具及其他科技解決方案，協助他們在各種市場環境下都能成功。

Internally, we are busy continuing to execute on the rollout of our new operating platform across the Title operations. We are also progressing with ongoing enhancements to our commercial structure and enhancing our ability to service the elevated level of commercial transactions taking place in the market.

在內部方面，我們正忙於持續推進在 Title 業務全面導入新營運平台。我們也在推動商業業務架構的持續強化，並提升我們服務市場上高水準商業交易量的能力。

And with that, I'll give it back to Craig.

以上，我把時間交還給 Craig。

Okay, Carolyn. Thank you. Well, that concludes our prepared remarks. So while we're seeing some top-line pressure along with some expense pressure in Specialty Insurance, the fundamentals in Specialty remain very strong, and the investments we're making will contribute to continued profitable growth. And in Title, we're well positioned for a turn in the residential real estate market while we continue to reduce expenses in the short term.

好的，Carolyn。謝謝。那麼，我們的預先準備發言到此結束。因此，儘管我們在 Specialty Insurance 看到一些保費收入壓力以及費用壓力，但 Specialty 的基本面仍然非常強勁，而我們正在進行的投資將有助於持續的獲利性成長。至於 Title，我們在住宅不動產市場轉折時具備良好定位，同時短期內我們也會持續降低費用。

So with that, we're happy to answer questions, and either I'll answer your questions or I'll ask Frank or Carolyn to help me answer the question. So we'll open it up for questions.

接下來我們很樂意回答問題；我會親自回答，或請 Frank 或 Carolyn 協助回答。那我們開放提問。

(Operator Instructions) Paul Newsome, Piper Sandler.

(接線員指示) Paul Newsome，Piper Sandler。

Maybe just a little bit more color on the expense drag. Do you have any thoughts about when some of these new efforts will be able to directionally impact the expense ratio in a positive way? Is it something that we should expect to happen very gradually? Or is there some sort of moment when you think some of the stuff will kick in, in a meaningful way that we'll see in the results?

也許想請你們再多補充一些關於費用拖累（expense drag）的細節。你們對於這些新措施何時能在方向上對費用率帶來正面影響，有什麼看法嗎？我們應該預期它會非常逐步地發生嗎？或者你們認為會有某個時間點，某些措施會以更有意義的方式開始發揮作用，並在結果中反映出來？

Yes, Paul, and thank you for the question. I'm happy to respond. Really, there's two main drivers that we referenced in the release, and that is the start-up operating company expenses and then what I'll throw into a second category, even though there's three subsets, and that is information technology with systems modernization, coupled with data and analytics, coupled with AI.

是的，Paul，謝謝你的提問。我很樂意回應。其實主要有兩個驅動因素，我們在新聞稿中也有提到：第一是新成立營運公司的啟動成本；第二我會歸為另一類（雖然其中有三個子項），也就是資訊科技的系統現代化，加上資料與分析，再加上 AI。

So I'll speak first to the new start-up operating companies. There's about eight of the companies that we would put into the category of new, of which three of them are at a maturity level that we consider to be at scale.

我先談新的新創營運公司。大約有八家公司我們會歸類為「新」，其中有三家成熟度已達到我們認為的規模化（at scale）水準。

And then on the other end of the spectrum, we have three new companies that have yet to produce premium. And the nature of the start-up businesses, of course, is the initial people that you're hiring are the new leaders of those companies. And with that comes a higher level of compensation, of course. And therefore, it's a matter of time for all of the companies to get to scale. So some in the middle will be reaching scale in the next year to two years.

而在光譜的另一端，我們有三家新公司尚未產生任何保費。新創業務的特性當然是，一開始聘用的人員就是這些公司的新領導團隊。而這也會帶來較高的薪酬水準。因此，關鍵在於所有公司達到規模化需要時間。其中一些位於中間階段的公司，將在未來一到兩年內達到規模化。

And then the latter three that haven't produced any premium yet, it's still two to three years out before they get to scale. So that's the dynamics around the start-up company expenses. It's a matter of where we'll be at at the end of the day. And again, we think profitable businesses will be the end result.

至於最後那三家尚未產生任何保費的公司，距離達到規模化仍約需兩到三年。這就是新創公司費用的動態。重點在於最終我們會達到什麼狀態。再次強調，我們認為最終結果會是具獲利性的業務。

When it comes to information technology, data analytics, AI, to give you some feel for that, about half of our 20 companies within the Specialty Insurance group are in the process of core system modernization. And as you may know, accounting rules are such that initial expenses need to be expensed immediately. And as we're at the beginning stages in a lot of these core system modernization efforts, a lot of the costs are falling directly to expense. Then in the midterm, we'll hit a point where we're able to capitalize certain costs and that happens when the system is ready for production. And at that point, we'll capitalize those costs and amortize those over a period of, Frank, 10 years --

至於資訊科技、資料分析與 AI，為了讓你更有概念，我們 Specialty Insurance 集團旗下約 20 家公司中，有大約一半正在進行核心系統現代化。而如你所知，會計規則規定，初期費用需要立即費用化。由於我們在許多核心系統現代化專案仍處於初期階段，許多成本會直接反映在費用上。接著在中期，我們會到達一個可以將部分成本資本化的時間點，而那會發生在系統已準備好上線（production）之時。到那時，我們會將這些成本資本化，並在一段期間內攤銷，Frank，是 10 年--

10 years in the core systems.

在核心系統方面有10年的經驗。

Yes. So that's what's happening there on data analytics. We've built out a pretty significant team there. So I think we have most of the staff in place. AI, we're still building out that team, and there'll be more cost there to come. So a lot of moving pieces. I know hard to put it all together, but it will take a little bit of time for it all to get to what I would call a run rate that will be an expense ratio less than 30%.

是的。所以這就是資料分析那邊正在發生的情況。我們在那裡建立了一支相當可觀的團隊。所以我認為我們大部分的人力都已到位。AI 方面，我們仍在擴編那個團隊，後續還會有更多成本。所以有很多變動的部分。我知道很難把所有事情拼在一起，但要讓一切達到我所說的穩態水準（run rate），也就是費用率低於30%，還需要一點時間。

So I guess, putting this all together, you had almost a 35% expense ratio in the first quarter, I think, 31% as you adjust it. Is that kind of a good starting point for the following quarters and then we should see some of these other efforts kick in over time and it kind of goes away? Or is there anything one-timing in there that we should consider?

所以我想，把這些合在一起看，你們第一季的費用率接近35%，我記得調整後是31%。這是否可以算是接下來幾季的一個不錯起點，然後我們應該會隨時間看到其他措施逐步發揮作用、費用率也就慢慢下來？或者裡面是否有任何一次性因素需要我們留意？

Yes. I follow your question, Paul. I think, unfortunately, it's a hard one to answer because so much is also dependent on what's happening with premium. We could give a much more firm answer if we knew what exactly was going to happen with premium. But as you saw, and as I mentioned a couple of times in my comments, while we still have some growth, if you look at net premiums written, they're coming in a bit lower than net premiums earned, which is, of course, a leading indicator.

是的。Paul，我理解你的問題。我想不幸的是，這個問題很難回答，因為很多也取決於保費的走勢。如果我們知道保費究竟會怎麼走，我們就能給出更明確的答案。但如你所見、也如我在評論中提到過幾次，雖然我們仍有一些成長，但如果看淨簽單保費（net premiums written），它們略低於淨已賺保費（net premiums earned），這當然是一個領先指標。

And if you compare those growth rates to last year, their growth rates are lower than the robust growth rates we've had over the last couple of years. So premium is the wildcard here. But with respect to just thinking about the expense ratio, if we can continue to grow at, say, a 3% to 5% clip for the rest of the year, I would think that an expense ratio that is at or below where we came in the first quarter is reasonable.

而且如果把這些成長率與去年相比，它們低於我們過去幾年所呈現的強勁成長率。所以保費是這裡的不確定因素。但就單純從費用率來看，如果我們今年剩餘時間能持續以例如3%到5%的速度成長，我會認為費用率維持在第一季的水準或更低，是合理的。

David Samar, Citizens.

David Samar，Citizens。

This is David on for Matt. Just a question on the accident year loss ratio. It looks like it was booked in Q1, it was a couple of points lower. Can you help us kind of understand how you got to that? And any pieces to think about within that?

我是David，代替Matt提問。想問一下事故年度損失率（accident year loss ratio）。看起來第一季入帳時比之前低了幾個點。你能幫我們理解一下你們是怎麼得出那個數字的嗎？以及其中有哪些部分需要留意？

Yes. And David, just so that I make sure I answer your question correctly. When you're looking at the current accident year loss ratio for Specialty, and I'm looking at page 2 of the supplement, we're at a 65.2% compared to a 65% last year. So the current accident --

是的。David，為了確保我正確回答你的問題。當你看的是Specialty的當期事故年度損失率，我在看補充資料第2頁，我們是65.2%，去年是65%。所以當期事故--

Last quarter, was it --

上一季，是不是--

Last quarter last year, right. Okay. Are you comparing it to the full year?

去年上一季，對。好的。你是在跟全年相比嗎？

Yes. Yes.

是的。是的。

Okay. Thank you. I now understand your question.

好的。謝謝。我現在理解你的問題了。

Sorry about that.

抱歉。

No. Makes perfect sense. Yes. So it's a bit lower in the first quarter than it was for the full year of '25. But as you can tell by comparing first quarter to first quarter, it's actually 0.2% up.

不會。完全合理。是的。所以第一季確實比25年全年水準低一些。但如你把第一季對第一季相比，其實是上升了0.2%。

So as we get through the year, it could be closer to where the full year of '25 was. But starting with where it's at, even if we were to assume it stays at a 65.2%, it's a bit better than it was. We've had cumulative compounded rate increases in numerous lines of business.

所以隨著今年進行，它可能會更接近25年全年的水準。但從目前的起點來看，即使我們假設它維持在65.2%，也比之前略好。我們在多個業務線別累計取得了複利式的費率上調。

And on the other hand, on workers' comp, we've given up, frankly, less rate than trends would suggest we could give up. So even if it were to stay at a 65.2% for the rest of the year, coming in at 1.5 points better than where we were in the last couple of years, that would be the rationale behind why that would make sense.

另一方面，在工傷保險（workers' comp）上，坦白說，我們讓出的降費率幅度小於趨勢所顯示我們可能可以讓出的幅度。所以即使今年剩餘時間都維持在65.2%，若最終比過去幾年的水準好1.5個點，這就是為什麼那樣的結果是合理的邏輯。

And again, sticking to our underwriting discipline, we're willing to give up top line to maintain loss ratios. We're going out and pushing rate, particularly on commercial auto and general liability where we know we need it, even though a lot of others in the marketplace are still looking in the rearview mirror and not obtaining the rate that we know is necessary.

而且再次強調，我們會堅守核保紀律，願意為了維持損失率而犧牲營收規模。我們會持續推動費率，特別是在商用車險（commercial auto）與一般責任險（general liability）上，因為我們知道那裡需要調升，即便市場上許多同業仍在看後照鏡，沒有取得我們認為必要的費率。

So we're going to continue to get the rate we need relative to the trends that we're observing in order to maintain the loss ratios that we've been able to get to through our compounded rate increases or on the -- if you're talking about work comp through our very measured level of rate decreases.

所以我們會持續依據我們觀察到的趨勢，取得所需的費率，以維持我們透過累計費率上調所達成的損失率；或者如果你談的是工傷保險，則是透過我們非常審慎的降費率幅度來達成。

(Operator Instructions) Greg Peters, Raymond James.

（接線員指示）Greg Peters，Raymond James。

I'm going to focus on the commercial auto segment for my first question. And specifically, you talked about the continuing progress on rate increases in that line of business being in the double-digit range. And if I look at the written growth and the earned growth on a quarter-over-quarter basis, it doesn't seem to square with what seems to be strong pricing conditions for that line.

我第一個問題想聚焦在商用車險部門。具體來說，你提到該業務線的費率上調持續取得進展，仍在雙位數區間。但如果我看簽單成長與已賺保費成長的季對季表現，似乎與該業務線看起來強勁的定價環境不太一致。

So maybe you could give some perspective on what's going on on the competitive front? Are you losing business? We hear anecdotally stories about MGAs getting more active in the space. We hear other carriers becoming more interested in the space. So just curious about how you see your top-line results in commercial auto and how you see the competitive outlook going forward?

所以也許你可以談談競爭面到底發生了什麼？你們是在流失業務嗎？我們零星聽到一些說法，說MGA在這個領域更積極。也聽到其他保險公司對這個領域更有興趣。所以想請教你如何看待你們商用車險的營收表現，以及你如何看待未來的競爭態勢？

Yes, Greg, great question. In my comments in the release itself, we talked about the challenges that we're having with our retention ratios. I mean for us, what we call a challenge is, probably for others, routine, but we've been able to maintain 85% to 90% retention ratios. That has slipped this quarter for sure. So we are -- by only growing the net written by 1% in commercial auto is a reflection of that lower retention ratio.

是的，Greg，這是個好問題。我在新聞稿本身的評論中提到，我們在續保率（retention ratios）方面遇到一些挑戰。我的意思是，對我們來說所謂的「挑戰」，對其他人可能只是常態，但我們過去能維持85%到90%的續保率。這一季確實下滑了。所以我們商用車險淨簽單只成長1%，反映的就是較低的續保率。

And that's also ticks and ties to my comments that we're -- our MO is to require the rate increases needed to keep up with the severity trends that we're seeing and be disciplined underwriters and focus on bottom line, focus on loss ratio. And if top line is more muted, then so be it.

而這也呼應我剛才的評論：我們的作法（MO）是要求必要的費率上調，以跟上我們看到的損失嚴重度（severity）趨勢，並且做有紀律的核保，專注於獲利、專注於損失率。如果營收端成長比較溫和，那也沒關係。

But we think that there's competitors that, as I mentioned a little bit ago, I think look in the rearview mirror and aren't looking forward as best you can look forward. But if you observe for us, where we saw severity trends last quarter, and where we see them this quarter, they are almost identical in the 15% range, and we're going out and we have to get rate increases that are in that same range.

但我們認為有些競爭對手，如我剛才提到的，可能是在看後照鏡，沒有盡可能往前看。不過如果你觀察我們，上季看到的嚴重度趨勢與這季看到的幾乎一樣，都在15%左右，因此我們必須取得同樣區間的費率上調。

So competitors, there's -- MGAs, we're not competing with so much. So I know there is a lot of talk out there about MGAs. I wouldn't say that MGAs are a reason for our lower retention ratio. But there's just a lot of other competitors, and I know I've talked about this on previous earnings calls, we pride ourselves on pricing precision and making sure we're on top of trends and reacting quickly. And others just, frankly, aren't as good at that. And especially if they're relying on ISO data and ISO is not going to be as current as we are.

所以競爭對手方面，有——MGAs（管理型一般代理人），我們並沒有那麼多在跟他們競爭。所以我知道外界對 MGAs 有很多討論。我不會說 MGAs 是造成我們續保率較低的原因。但確實還有很多其他競爭對手，而且我在先前的財報電話會議上也談過，我們以定價精準為傲，並確保我們掌握趨勢、快速反應。而其他人坦白說，在這方面就是沒那麼擅長。尤其是如果他們依賴 ISO 數據，而 ISO 的即時性不會像我們這麼高。

And there are competitors out there that we think are willing to write commercial auto at levels that will ultimately be unprofitable. And the proof is in the pudding, we've prided ourselves that we've been an outlier for the last three years or so, putting up favorable development on commercial auto, while our competitors are putting up unfavorable development, a lot of them.

而且市場上也有一些競爭對手，我們認為他們願意以最終將會無利可圖的水準承保商用車險。結果不言自明；我們一直以來都引以為傲的是，過去大約三年我們在商用車險上呈現有利的準備金發展（favorable development），而我們的競爭對手中有很多則呈現不利的準備金發展（unfavorable development）。

And so if you then take what I'm saying about where we sit today in the competitive environment, they're going to continue to put up unfavorable development because they're not getting the rate they need to keep up with the trend. So it is competitive. It does not help that the trucking industry has been under pressure for the last several years when it comes to their margins.

所以如果你再把我剛才說的、我們今天在競爭環境中的位置放在一起看，他們將會持續出現不利的準備金發展，因為他們拿不到足以跟上趨勢所需的費率。所以競爭確實激烈。而且卡車運輸業在過去幾年其利潤率一直承受壓力，這也無助於情況改善。

And so they're under pressure and the continued need for rate is difficult for them. At the end of the day, it's all about legal system abuse, which we've talked about on prior calls. And the industry is very focused on it. I know we're working with the Triple-I, the Chamber of Commerce to educate the public that the plaintiff attorneys and the litigation system abuse is costing everybody at the end of the day. But we have to deal with it, and we have to get the rate that is needed to pay for that abuse.

因此他們承受壓力，而持續需要調升費率對他們來說很困難。歸根究柢，問題在於司法制度濫用（legal system abuse），我們在先前的電話會議也談過。整個產業都非常關注這件事。我知道我們正與 Triple-I（保險資訊研究所）以及商會合作，教育大眾：原告律師與訴訟制度的濫用，最終讓每個人都付出代價。但我們必須面對它，也必須取得足以支付這種濫用成本所需的費率。

As I think about what you're talking about, two things come to mind. You talked about profitability pressures for the trucking business. I'm just curious if you have a perspective given the recent jump up in gasoline and diesel prices, if that's -- is there any spillover consequence to your company? And then secondly, on the competition side, is it risk management or that's being affected where you're losing share? Or is it the traditional risk transfer when speaking on the commercial auto piece?

當我想到你提到的內容，有兩點浮現。你談到卡車運輸業的獲利壓力。我只是好奇，鑑於近期汽油與柴油價格大幅上漲，你是否有觀點——這對你們公司是否會有任何外溢影響？第二，在競爭方面，你們流失市占是因為風險管理受到影響嗎？還是就商用車險而言，是傳統的風險移轉（risk transfer）在發生作用？

Yes. So I'll answer the last part first. Yes, it is not our risk management, Old Republic's risk management business. The majority of it is coming from where we write most of our commercial auto, which is Great West. And then we do write commercial auto in several of our other businesses as well. And similarly, they have challenges as well trying to get the rate they need relative to the trend.

是的。我先回答最後一部分。是的，這不是我們的風險管理業務，也就是 Old Republic 的風險管理事業。大部分影響來自我們承作商用車險的主要平台，也就是 Great West。此外，我們在其他幾個事業也有承作商用車險。同樣地，他們在相對於趨勢取得所需費率方面也面臨挑戰。

With regard to trucking, we're also very closely aligned with the trucking associations and industry, and there was some reports that spot rates were improving and, for the first time, maybe some indication that for them as an industry, maybe they had bottomed out.

至於卡車運輸，我們也與卡車運輸協會及產業保持非常緊密的連結；有一些報告指出即期運價（spot rates）正在改善，而且首次可能出現一些跡象顯示，對他們這個產業而言，或許已經觸底。

But then as you pointed out, then you turn around and add on top of that increased cost for them relative to higher diesel fuel cost and gasoline cost. And I don't know if that -- I don't know enough to tell you if the better rates that they might be getting are offsetting the higher fuel costs they have or not. But there are some indications that maybe that industry will be better. But as I said in my earlier comments, it's not helpful when our clients are under pressures of their own, and we have to get more for our product as well. So it does create a challenge on the top line.

但如你所指出的，接著又疊加了柴油與汽油成本上升，導致他們的成本增加。我不確定——我了解得不夠多，無法告訴你他們可能取得的較佳運價是否足以抵銷更高的燃料成本。但確實有一些跡象顯示，這個產業或許會好轉。不過如我先前所說，當我們的客戶自身承受壓力，而我們也必須為我們的產品取得更高價格時，這並沒有幫助。因此在營收端確實會形成挑戰。

I'll pivot just for a second. I've taken up more than my fair share of time. But Carolyn, I certainly want to ask you about your comments on commercial. And you highlighted the excess of loss reinsurance arrangement and the opportunity set for writing larger commercial accounts. Can you size that up for us as we think about the growth of your commercial business over the next 12 months? Or just give us some ideas of what you're thinking about when you talk about larger account opportunities.

我先稍微轉個話題。我占用的時間已經超過我應占的份額了。但 Carolyn，我確實想請教你對商業業務的評論。你提到超額損失再保安排（excess of loss reinsurance arrangement），以及承作更大型商業客戶的機會集合。就未來 12 個月你們商業業務的成長而言，你能否幫我們量化一下？或是談談你在提到大型帳戶機會時，腦中在想的是哪些方向。

Carolyn, I'll be happy to kick it off and then let you fill in. So we are seeing a large amount of opportunity on data centers, on energy production facilities, large accounts that actually require more than one Title Insurance company to co-insure the risk. And we wanted to be in a position to comfortably deploy limits that made us a significant contributor and participant on those placements.

Carolyn，我先開個頭，然後再請你補充。我們看到在資料中心、能源生產設施等方面有大量機會；有些大型帳戶實際上需要不只一家產權保險公司共同承保風險。而我們希望能處於一個位置，能夠更有把握地配置保額上限（limits），使我們在這些承保安排中成為重要的出資者與參與者。

And that was a good reason behind why we decided to write, to put in place a reinsurance treaty to give us sleep at night, coverage, so to speak, to go ahead and write more large limit accounts because, again, the frequency at which we were seeing these opportunities has just continued to grow over the last two years.

這也是我們決定建立再保合約（reinsurance treaty）的重要原因之一，讓我們能「睡得著覺」——也就是提供保障——以便進一步承作更多高保額的大型帳戶；因為同樣地，過去兩年我們看到這類機會出現的頻率持續增加。

And Carolyn, I'll turn it over to you to provide the details on what's happening there.

Carolyn，我把時間交給你，請你提供那邊的細節。

Sure. Yes, Greg, there are some states that tell us what our limit can be, but there's a lot of states that it's really just up to us. And that was a lot of the discussion behind getting this was just feeling a little more comfortable. We've spent a number of years growing our commercial presence, and it just became a time that it would really help us elevate what we were able to do in the commercial market. And we just really see commercial continuing to grow because if you think about it, there wasn't a lot of commercial during the pandemic years and really the 1.5 years coming out of that.

好的。是的，Greg，有些州會規定我們的保額上限可以到多少，但也有很多州其實完全取決於我們自己。因此，促成我們取得這項安排的討論，很大一部分就是為了讓我們感覺更安心一些。我們花了好幾年時間擴大我們在商業市場的能見度，而現在到了這個時點，這確實能幫助我們提升在商業市場上能做到的事情。而我們也確實看到商業業務將持續成長，因為如果你回想，疫情期間以及之後約 1.5 年，其實商業交易並不多。

And commercial properties, something has to happen with them over five to seven years. And so we're starting to see a lot of portfolio projects come through, not just the data centers like Craig talked about, but a lot of other large projects that we just are a lot more comfortable taking on the risk now knowing that we have the reinsurance.

而商業不動產在五到七年內總會發生一些事情。因此我們開始看到很多投資組合型專案（portfolio projects）進來，不只是 Craig 提到的資料中心，還有許多其他大型專案；而現在因為知道我們有再保，我們承擔這些風險也更有把握、更加安心。

And there are no further questions. I will now turn the call back over to management for closing remarks.

目前沒有其他問題。我現在把電話交回管理層作結語。

Okay. Well, we're happy to have provided these comments and updates relative to the first quarter. We've got three more quarters to go for the year. So we're optimistic that things will continue to progress along as planned, and we'll continue to deliver solid profitability to our shareholders. So we look forward to seeing you at the end of the second quarter and give you another update and have another discussion. Thank you all very much. Have a good day.

好的。我們很高興能就第一季提供這些評論與更新。今年還有三個季度要走。因此我們樂觀地認為，事情將會持續依計畫推進，我們也會持續為股東帶來穩健的獲利表現。所以我們期待在第二季結束時再與各位見面，提供另一個更新並再進行一次討論。非常感謝各位。祝各位有美好的一天。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝各位的參與。您現在可以掛線。