Palomar Holdings Inc (PLMR) 2023 Q4 法說會逐字稿

Good morning, and welcome to Palomar Holdings Inc's fourth quarter and full year 2023 earnings conference call. During today's presentation, all parties will be in a listen-only mode following the presentation. The conference line will be open for questions for instructions to follow at that time. As a reminder, this conference call is being recorded.

早上好，歡迎參加 Palomar Holdings Inc 的第四季度和 2023 年全年收益電話會議。在今天的演示期間，所有各方都將在演示結束後處於僅聽模式。會議熱線將開放供提問，以便屆時遵循指示。謹此提醒，本次電話會議正在錄音中。

I would now like to turn the call over to Mr. Chris Uchida, Chief Financial Officer. Please go ahead.

我現在想將電話轉給財務長 Chris Uchida 先生。請繼續。

Thank you, operator, and good morning, everyone.

謝謝接線員，大家早安。

We appreciate your participation in our earnings call. With me here today is Mack Armstrong, our Chairman and Chief Executive Officer. Additionally, Jon Christianson, our President, is here to answer questions during the Q&A portion of the call. As a reminder, a telephonic replay of this call will be available on the Investor Relations section of our website through 11.59 P.M. Eastern time on February 22nd, 2024.

我們感謝您參與我們的財報電話會議。今天和我在一起的是我們的董事長兼執行長麥克阿姆斯壯。此外，我們的總裁 Jon Christianson 也將在電話問答部分回答問題。謹此提醒，截至晚上 11 點 59 分，我們網站的投資者關係部分將提供本次電話會議的電話重播。美國東部時間 2024 年 2 月 22 日。

Before we begin, let me remind everyone that this call may contain certain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include remarks about management's future expectations, beliefs, estimates, plans and prospects. Such statements are subject to a variety of risks, uncertainties and other factors that could cause actual results to differ materially from those indicated or implied by such statements. Such risks and other factors are set forth in our quarterly report on Form 10 Q filed with the Securities Exchange Commission. We do not undertake any duty to update such forward-looking statements.

在開始之前，讓我提醒大家，本次電話會議可能包含某些構成 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述的陳述。其中包括有關管理層未來期望、信念、估計、計劃和前景的評論。此類陳述受到各種風險、不確定性和其他因素的影響，這些因素可能導致實際結果與此類陳述所顯示或暗示的結果有重大差異。此類風險和其他因素在我們向證券交易委員會提交的 10 Q 表格季度報告中列出。我們不承擔更新此類前瞻性陳述的任何責任。

Additionally, during today's call, we will discuss certain non-GAAP measures, which we believe are useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with U.S. GAAP. A reconciliation of these non-GAAP measures to their most comparable GAAP measure can be found in our earnings release.

此外，在今天的電話會議中，我們將討論某些非公認會計準則衡量標準，我們認為這些衡量標準有助於評估我們的績效。不應孤立地考慮此附加資訊的呈現，也不應將其視為根據美國公認會計原則準備的結果的替代品。這些非公認會計準則衡量標準與其最具可比性的公認會計準則衡量標準的對帳可以在我們的收益報告中找到。

At this point, I'll turn the call over to Mac.

此時，我會將通話轉給 Mac。

Thank you, Chris, and good morning. Fourth quarter provided a strong end to what was a stellar 2023 quarterly results included record gross written premium and adjusted net income premium adjusted net income growth of 27% and 33% respectively, and importantly, an adjusted return on equity of 25%. When looking at the full year, we're equally proud of record gross written premium in adjusted net income, strong top and bottom line growth in numerous initiatives that led to diversification and reduced earnings volatility. We introduced multiple new lines of business, namely crop environmental liability and assumed reinsurance. This robust and disciplined growth translated into an adjusted return on equity well above the 20% benchmark levels fast in our polymer to X strategic plan.

謝謝你，克里斯，早安。第四季為2023 年出色的季度業績畫上了圓滿的句號，其中包括創紀錄的總保費和調整後淨收入保費調整後淨收入分別增長27% 和33%，更重要的是，調整後股本回報率達到25%。展望全年，我們同樣感到自豪的是，調整後淨利潤中創紀錄的總承保保費，以及眾多導致多元化和減少盈利波動的舉措的強勁頂線和底線增長。我們推出了多項新業務，即作物環境責任和承擔再保險。在我們的聚合物到 X 戰略計劃中，這種強勁而有序的成長轉化為調整後的股本回報率，遠高於 20% 的基準水平。

Before I go into the detail on the fourth quarter, I want to take a moment to recap the accomplishments of our terrific 2023. At the beginning of last year, we outlined four strategic objectives for the year. One, sustained strong growth to manage dislocation, three enhanced earnings predictability and fourthly, scale the organization. I'm pleased to report we execute on all these objectives and the execution not only led to record gross written premium and earnings, but also put us in position for long-term success for 2023 are numerous, but selected achievements include 29.4% gross written premium growth and closer to 40% when excluding deemphasized or discontinued lines of business, successful navigation of a generationally hard property catastrophe reinsurance market in which we renewed our reinsurance program in line with the expectations implied in our full year 2020 earnings guidance and procured more access to blossom and to support our growth and earthquake, the completion of a multi-year effort to reduce our continental wind and severe convective storm exposure that resulted in reduced volatility in our earnings base. This is best exemplified by our minimal catastrophe loss this year. As an aside, if the 2020 winter season were to happen again, our total losses from the cohort of stores would be less than 10 million on a net basis, the introduction of three new lines of business and crop insurance and Per my overall liability and assumed reinsurance and incremental traction in newer lines like excess property and casualty. These nascent products will enhance our specialty insurance franchise and create shareholder value, the addition of best-in-class underwriting reinsurance data and actuarial technology talent to our team and best changing the outlook in their rating of Palomar to positive from stable.

在詳細介紹第四季之前，我想花點時間回顧一下我們在 2023 年的輝煌成就。去年年初，我們制定了今年的四個策略目標。一是持續強勁成長以管理混亂，三是增強獲利可預測性，四是擴大組織規模。我很高興地報告，我們執行了所有這些目標，執行不僅帶來了創紀錄的總承保保費和收益，而且還使我們為2023 年的長期成功做好了準備，但選定的成就包括29.4%的總承保保費保費增長，在排除不再強調或終止的業務範圍時接近40%，成功導航一代硬財產巨災再保險市場，在該市場中，我們根據2020 年全年盈利指引中隱含的預期更新了再保險計劃，並獲得了更多准入機會為了蓬勃發展並支持我們的增長和地震，完成了多年的努力，以減少我們的大陸風和強對流風暴暴露，從而減少了我們收益基礎的波動性。今年我們的災難損失最小就是最好的例子。順便說一句，如果 2020 年冬季再次發生，我們這批商店的總損失將低於 1000 萬淨損失，引入三個新的業務線和農作物保險，並且根據我的總體責任和假定再保險和增量牽引力在新的領域，如過剩財產和傷亡。這些新生產品將增強我們的專業保險業務並創造股東價值，為我們的團隊增添一流的承保再保險數據和精算技術人才，並最好地將 Palomar 評級的前景從穩定轉變為正面。

Last and not least successful beat and raise of our quarterly adjusted net income targets every quarter of the year. These accomplishments allow us to exit the year energized by our prospects for profitable growth in 2024 and beyond.

最後也是同樣重要的一點是，我們每年每季都成功實現並提高了季度調整後的淨利潤目標。這些成就使我們在結束這一年時對 2024 年及以後的獲利成長前景充滿活力。

With that, I'd like to discuss our fourth-quarter results and our 2024 strategic priorities for five product categories. Overarchingly, the quarter saw robust growth with gross written premium increasing 27% year over year, a nice sequential acceleration from 24% gross written premium growth delivered in the third quarter, excluding deemphasized lines of business, gross written premiums increased 32%. Likewise, net earned premiums grew 14% in the fourth quarter, which is an acceleration from the 10% that we delivered in the third quarter of 2023. Chris will discuss the net earned premium trend for 2020.

在此，我想討論我們第四季的業績以及 5 個產品類別的 2024 年策略重點。總體而言，本季度實現了強勁增長，總保費同比增長 27%，較第三季度 24% 的總保費增長實現了良好的環比加速，不包括淡化的業務範圍，總保費增長了 32%。同樣，第四季的淨賺保費成長了 14%，這比我們在 2023 年第三季實現的 10% 有所加速。Chris 將討論 2020 年淨賺保費趨勢。

For looking at our five key business lines in more detail, our core earthquake franchise grew 29% in the fourth quarter, up from 23% in the 2023 third quarter. Residential Earthquake book grew 18%, and our Commercial Earthquake grew it grew a healthy 44% growth in Q4 for Commercial Earthquake favorably compared to the third quarter's growth of 35% in the second quarter's growth of 29%. Our Residential Earthquake portfolio remains our largest single line of business and a consistent performer. The market backdrop is still attractive as California homeowners' market dislocation persists, existing California Earthquake Authority policyholders are seeing reduced coverage offered at renewal, an increasing amount of historically standard line businesses move into excess and surplus line. At quarter end. Our E&S premium is 9% of total California residential earthquake premium, we believe high 10s growth sustainable in the year ahead and that a new partnership with the top 25 insurance brand offering earthquake insurance to their units policyholders could provide a further catalyst for sustained profitable growth during the quarter.

更詳細地了解我們的五個關鍵業務線，我們的核心地震業務在第四季度增長了 29%，高於 2023 年第三季的 23%。住宅地震帳簿成長了 18%，商業地震帳簿成長了 44%，與第三季 35% 的成長和第二季 29% 的成長相比，第四季商業地震帳簿成長了 44%。我們的住宅地震產品組合仍然是我們最大的單一業務，並且表現穩定。市場背景仍然具有吸引力，因為加州房主市場混亂持續存在，現有的加州地震管理局保單持有人發現續保時提供的保險範圍減少，越來越多的歷史標準線業務進入超額和盈餘線。季度末。我們的E&S 保費佔加州住宅地震保費總額的9%，我們相信未來一年可持續10 多倍的高增長，並且與向其單位投保人提供地震保險的25 強保險品牌建立新的合作夥伴關係可以為持續獲利成長提供進一步的催化劑本季期間。

Commercial Earthquake conditions remained attractive as we achieved rate increases of approximately 26% on a risk-adjusted basis and record best levels for average annual loss in 250 year, probable all probable maximum loss to premium our most important portfolio management metrics. We did see the level of rate increases start to moderate from the prior year and expect that to be the case in 2020. For this dynamic is more pronounced in large, layered and shared accounts than it is in the middle market. We remain positive on the growth and profitability prospects of our aesthetics franchise as we enter 2024, our inland marine and our other property products grew 8% year over year as this remains our product segment, where we are judiciously managing in certain cases, reducing our exposure into product group, the best episode typifies our grower. We want mantra. We continue to invest in lines that hold attractive risk-adjusted returns like builder's risk, excess property and flood builder's risk are largely similar in the marine products exited the year with over 115 million of in-force premium and added several new underwriters to help expand our geographic reach and distribute distribution footprint.

商業地震條件仍然具有吸引力，因為我們在風險調整的基礎上實現了約26% 的利率增長，並創下了250 年來平均年損失的最佳水平，可能所有可能的最大損失都超出了我們最重要的投資組合管理指標。我們確實看到升息水準較上年開始放緩，並預計 2020 年也會出現這種情況。因為這種動態在大型、分層和共享帳戶中比在中間市場中更為明顯。進入2024 年，我們對美容特許經營業務的增長和盈利前景保持樂觀，我們的內陸海洋和其他房地產產品同比增長8%，因為這仍然是我們的產品領域，我們在某些​​情況下明智地進行管理，減少了接觸產品組後，最好的插曲代表了我們的種植者。我們想要咒語。我們繼續投資那些具有有吸引力的風險調整回報的產品線，例如建築商風險、超額財產和洪水建築商風險，在今年退出的海鮮中基本相似，有效保費超過1.15 億，並增加了幾家新承銷商以幫助擴大規模我們的地理覆蓋範圍和分銷足跡。

In the quarter, we are confident the investments in builder's risk infrastructure will sustain the growth of the business through 2024. Our excess property lines are pricing 5% rate increases in the quarter and 136% year over year growth as it builds a portfolio of non-cat exposed property business like builder's risk. The excess property line is adding talent and infrastructure to profitably grow in 2024. Flood written premium grew 25% year over year in the fourth quarter and 38% for the full year. As we continue to expand the products geographic footprint. We've now reduced our continental hurricane probable maximum loss to $100 million and the average annual loss to 4 million. This concerted effort meaningfully lower the volatility in our book, but did lead to decline in our Commercial All Risk premium by 13% year over year. Importantly, the remaining commercial auto book of business is attractive with policies renewing at an average increase of more than 30% in the fourth quarter. As we have completed the triage of the book, we expect Commercial All Risk premium to grow in 2024, albeit it will come exclusively through rate increases. Flyer in premiums grew 13% in the fourth quarter of most of that growth from rate increases and our inflation guard. As we discussed last quarter, we have formed our Lima exchange fully licensed reciprocal insurance for which we serve as the attorney. In fact, manager that has new vehicle allows us to transition our business model for the Hawaiian Hurricane products from one that is restaurant one that is degenerative. We are in the process of rolling our policies and allow them and expect to have this completed by the fourth quarter of 2020 for our customers have been receptive to the well Lima transition with 90% of our policy successfully converting. Once this transition is completed, we will all but eliminate balance sheet exposure to win losses from Hurricane Katrina.

在本季度，我們相信對建築商風險基礎設施的投資將在 2024 年之前維持業務成長。我們的超額房地產項目定價本季利率上漲 5%，年增 136%，因為它建立了非巨災暴露房地產業務（如建築商風險）的投資組合。過剩的房地產項目正在增加人才和基礎設施，以便在 2024 年實現獲利成長。第四季洪水承保保費年增 25%，全年成長 38%。隨著我們不斷擴大產品的地理足跡。現在，我們已將大陸颶風可能造成的最大損失降至 1 億美元，年平均損失降至 400 萬美元。這項共同努力顯著降低了我們帳簿的波動性，但確實導致我們的商業全險保費較去年同期下降了 13%。重要的是，剩餘的商用車業務頗具吸引力，第四季保單續保平均增幅超過30%。由於我們已經完成了對這本書的分類，我們預計商業全險保費將在 2024 年增長，儘管這將完全透過費率上漲來實現。Flyer 保費在第四季成長了 13%，其中大部分成長來自升息和我們的通膨防範。正如我們上季度討論的那樣，我們已經建立了利馬交易所完全許可的互惠保險，我們擔任律師。事實上，擁有新車的經理使我們能夠將夏威夷颶風產品的商業模式從退化的餐廳模式轉變為一種模式。我們正在滾動我們的保單並允許他們完成，並預計在 2020 年第四季之前完成，因為我們的客戶已經接受了利馬的良好過渡，我們的保單 90% 成功轉換。一旦這項過渡完成，我們將幾乎消除資產負債表風險，以彌補卡崔娜颶風造成的損失。

Why Turning to our casualty business, we are pleased to see premiums grew under 65% year over year. Production was highlighted by strong growth from our excess liability professional liability lines, as well as our first premium from our recently hired environmental liability team during the quarter, the books a blended rate increase of approximately 5% year over year, with rate skewing a bit higher and excess liability. Importantly, we continue to take a surgical approach to the building of our casualty business, where we focus on niche segments of the market that offer healthy risk-adjusted returns and definable exposure to social inflation we employ prudent risk management tactics such as modest gross and net line size, avoidance of heavily heavy bodily injury exposure and conservative reinsurance to minimize loss potential in the classes. We write PR approach, bringing on subject matter experts who are comfortable walking before they run, we'll build a well underwritten book of business with limited exposure to large shock loss and significant adverse court rulings for the quarter. The casualty book loss ratio remained in line with our conservative loss picks as the predominance of the book is less than two years old. We are focused on building a sizable reserve base that we expect to favorably develop over time. We expect our casualty business to be meaningful contributors to premium growth in 2024 primarily driven by our real estate, E&O, excess liability and professional lines. Our brachy business outperformed our expectations in 2023, growing premiums 63% to $364 million and delivered 24% year over year growth in the fourth quarter. We also finalized two new fronting programs in the quarter and recognized a modest level of premium from these new deals and are optimistic about the potential for 2024. As we said on past calls, our goal in funding is to provide fee generative services to a select group of MGAs carriers and reinsurers writing specialty lines of business and industry segments where we've developed investment thesis and some measure of domain expertise. We actively manage the compliance oversight, reinsurance and collateral of our funding partners and maintain our risk participation. In certain instances, the current maximum participation of 8% remains selective of our strong franchise partners and apply that selectivity to our healthy pipeline of prospects. We continue to be very optimistic about the potential for our newest product group crop insurance. As a reminder, Talmer leadership team has extensive experience in the crop insurance market, and we are now one of only 13 improved insurance underwriters or AIP.s in the 20 billion industry. Our strategic partner advance ag protection has extensive sector experience and a distinct technology that allows us to target risk at the producer and regional level, more importantly, compete effectively even without immediate scale. We're targeting business throughout the Midwest and a variety of crops with the goal of minimizing exposure to a single event or heavy accumulation of losses in any one region.

為什麼談到我們的意外險業務，我們很高興看到保費年增率低於 65%。我們的超額責任專業責任險業務的強勁增長以及我們最近聘用的環境責任團隊在本季度提供的第一筆保費凸顯了生產的強勁增長，賬面綜合費率同比增長約5%，但費率略有偏差更高和超額的責任。重要的是，我們繼續採取外科手術的方法來建立我們的傷亡業務，我們專注於市場的利基細分市場，這些細分市場提供健康的風險調整回報和可確定的社會通膨風險，我們採用審慎的風險管理策略，例如適度的總和淨線尺寸，避免嚴重的身體傷害暴露和保守的再保險，以盡量減少類別中的潛在損失。我們編寫公關方法，聘請在跑步之前能夠輕鬆行走的主題專家，我們將建立一個承保良好的業務簿，在本季度承受巨大衝擊損失和重大不利法院裁決的風險有限。由於該書的主導地位不到兩年，傷亡帳面損失率仍與我們保守的損失選擇一致。我們致力於建立一個規模可觀的儲備基地，預計隨著時間的推移，該基地將得到有利的發展。我們預計，我們的意外險業務將在 2024 年為保費成長做出有意義的貢獻，這主要是由我們的房地產、E&O、超額責任和專業業務推動的。我們的分支業務在 2023 年的表現超出了我們的預期，保費增長了 63%，達到 3.64 億美元，第四季度同比增長了 24%。我們還在本季度完成了兩項新的前期計劃，並認識到這些新交易的溢價水平適中，並對 2024 年的潛力持樂觀態度。正如我們在過去的電話會議中所說，我們的融資目標是為精選的MGA 營運商和再保險公司提供收費服務，這些服務商和再保險公司撰寫了我們在這些業務和行業領域的專業領域，我們在這些領域制定了投資論文和一些領域專業知識。我們積極管理融資合作夥伴的合規監督、再保險和抵押品，並維持我們的風險參與。在某些情況下，目前 8% 的最大參與度仍然是對我們強大的特許經營合作夥伴的選擇性，並將這種選擇性應用於我們健康的潛在客戶管道。我們仍然對我們最新產品組農作物保險的潛力非常樂觀。需要提醒的是，Talmer 領導團隊在農作物保險市場擁有豐富的經驗，我們現在是 200 億行業中僅有的 13 家改進的保險承保人或 AIP.s 之一。我們的策略夥伴先進農業保護擁有豐富的產業經驗和獨特的技術，使我們能夠在生產商和地區層面瞄準風險，更重要的是，即使沒有立即規模，也能有效競爭。我們的目標是整個中西部地區和各種作物的業務，目標是最大限度地減少單一事件的風險或任何一個地區的嚴重累積損失。

Fourth quarter is seasonally light period for crop insurers and one in which most at the Palomar included right, negligible premium during the quarter, we focused on generating premiums that will be booked at the start of the year. Thus far, the market's receptivity is encouraging, and we now expect to deliver more than $100 billion $100 million of premium in 2024. Chris will provide more detail on the seasonality of the business as it pertains to our reinsurance program, we are pleased with the outcome for our reinsurance treaties renewing January first, while only a few treaties renewed at one one. We did have a Commercial Earthquake quota share, small earthquake, only excess of loss layer and a casualty quota share renewed at the start of the year. So while limited compared to what renews June first, these renewals offered a decently broad perspective on the market, very quick quota-share renewed and improved economics with an increased ceding commission that implies a risk-adjusted decrease of approximately 5%. The XOL layer renewed at a similar, if not slightly better, risk-adjusted decrease casualty quota share renew with improved economics and our ceding commission increase from the expiring level. While the outlook for reinsurance has certainly improved from a year prior, we are conservatively budgeting for modest price increases. In our June first renewal. We are confident the apex of and historically our market is behind us, which bodes well for net earned premium growth and margin expansion to 2023 has been a banner year of profitable growth and consistent earnings for Torm for Palomar. We continue to invest in both our core lines as well as new lines of business to ensure we are positioned to achieve our Palomar to X goals, notably doubling our underwriting income over a three to five year period while delivering an adjusted return on equity above 20%.

第四季對農作物保險公司來說是季節性淡季，帕洛瑪的大多數保險公司在該季度的保費可以忽略不計，我們專注於產生將在年初預訂的保費。到目前為止，市場的接受度令人鼓舞，我們現在預計在 2024 年將提供超過 1,000 億美元的保費。克里斯將提供有關業務季節性的更多詳細信息，因為它與我們的再保險計劃有關。我們對 1 月 1 日續簽再保險條約的結果感到滿意，而只有少數條約一次續簽。我們確實有商業地震配額份額、小地震、僅超出損失層和年初更新的傷亡配額份額。因此，雖然與6 月1 日的續訂相比有限，但這些續訂提供了相當廣闊的市場前景、非常快速的配額份額更新和改善的經濟效益，以及增加的割讓佣金，這意味著風險調整後的下降約為5%。XOL 層以類似（如果不是稍微好一點）的風險調整減少傷亡配額份額更新，隨著經濟的改善以及我們的分出佣金從到期水平增加。雖然再保險的前景肯定比一年前有所改善，但我們對價格適度上漲的預算持保守態度。在我們六月的第一次續訂中。我們相信，從歷史上看，我們的市場頂峰已經過去，這預示著淨收入保費增長和利潤率擴張，到 2023 年對於 Palomar 的 Torm 來說是盈利增長和持續盈利的標誌性一年。我們繼續投資於我們的核心業務以及新業務領域，以確保我們能夠實現 Palomar to X 目標，特別是在三到五年內將我們的承保收入翻一番，同時調整後的股本回報率超過 20 %。

As we set our sights on 2020 for our steadfast commitment to profitable growth remains unwavering. Our strategic imperatives in many ways emulate those are 2023 affording us conviction in their execution ability high-level strategic imperatives for 2024, summarized in the following four, Rubik's wine grow where we want to manage dislocation and diversification. Three, provide consistent earnings and for scale, the organization at considerable progress has commenced across these directives. We are pleased to offer full year 2020 for adjusted net income guidance of 110 million to 115 million. Importantly, this range includes losses incurred in the first first quarter from California flooding of approximately 3.5 million as well as full year loss estimates for severe convective storm and many cat events. Our guidance does assume a low single digit risk-adjusted increase on our S&L renewal at six one. The midpoint of our guidance implies an adjusted ROE of 21% level above our Palomar two times target.

展望 2020 年，我們對獲利成長的堅定承諾依然堅定不移。我們的策略 要務在許多方面都效仿了2023 年的策略，使我們對其執行能力充滿信心。2024 年的高層策略 要務總結為以下四點，魔方的葡萄酒生長在我們想要管理錯置和多元化的地方。第三，提供穩定的收益和規模，該組織已在這些指令上取得了長足的進展。我們很高興提供 2020 年全年調整後淨利潤指引為 1.1 億至 1.15 億美元。重要的是，這一範圍包括第一季因加州洪水造成的約 350 萬損失，以及強對流風暴和許多巨災事件的全年損失估計。我們的指導確實假設我們的儲蓄和貸款更新的風險調整後的低個位數增長為六一。我們指導的中點意味著調整後的 ROE 水準比我們的 Palomar 目標高出 21%。

With that, I will turn the call over to Chris to discuss our results in more detail.

這樣，我會將電話轉給克里斯，更詳細地討論我們的結果。

Thinking back, please note that during my portion, when referring to any per share figure, I'm referring to per diluted common share as calculated using the treasury stock method. This methodology requires us to include common share equivalents, such as outstanding stock options during profitable periods and exclude them in periods, we incur a net loss for the fourth quarter of 2023. Our adjusted net income was 28 million or $1.11 per share compared to adjusted net income of 21.1 million or $0.82 per share for the same quarter of 2022. Our fourth quarter adjusted underwriting income was 29.3 million compared to $23.5 million last year. Our adjusted combined ratio was 68.8% for the fourth quarter compared to 71.4% in the fourth quarter of 2020 to for the fourth quarter of 2023, our annualized adjusted return on equity was 25.1% compared to 22.4% for the same period last year. Fourth quarter adjusted return on equity continues to validate our ability to maintain top line growth with a prudent, predictable rate of return above our Palomar to extra target of 20%.

回想起來，請注意，在我的部分中，當提到任何每股數字時，我指的是使用庫存股方法計算的每股稀釋普通股。這種方法要求我們將普通股等價物納入其中，例如獲利期間已發行的股票選擇權，並在我們 2023 年第四季出現淨虧損的期間排除它們。我們的調整後淨利潤為 2,800 萬美元，即每股 1.11 美元，而 2022 年同一季度調整後淨利潤為 2,110 萬美元，即每股 0.82 美元。我們在第四季調整後的承保收入為 2,930 萬美元，而去年為 2,350 萬美元。我們第四季的調整後綜合成本率為 68.8%，而 2020 年第四季為 71.4%。2023 年第四季度，我們的年化調整後股本回報率為 25.1%，而去年同期為 22.4%。第四季調整後的股本回報率繼續驗證了我們保持營收成長的能力，其回報率高於 Palomar 的審慎、可預測的 20% 額外目標。

Gross written premiums for the fourth quarter were 303.2 million, an increase of 26.8% compared to the prior year's fourth quarter. Excluding deemphasized products, our written premium growth rate was 31.7% for the quarter is important to remember the seasonality of our crop premiums. As anticipated. We did not have any crop written premium in the fourth quarter based on our current book, the majority of our crop premium, we will be written in the third quarter of each year, followed by the first quarter, which should see about a quarter of the year's premium. The second and fourth quarters will see only modest premiums as our crop premiums grow through the year, we plan on splitting out our crop premium into its own category, and we'll provide an update on our first quarter's earnings call.

第四季毛保費為3.032億份，較去年第四季成長26.8%。不包括不再強調的產品，我們本季的承保保費成長率為 31.7%，記住我們農作物保費的季節性非常重要。正如預期的那樣。根據我們目前的帳簿，我們在第四季度沒有任何作物保費，我們的大部分作物保費將在每年第三季度寫入，其次是第一季度，大約四分之一年的保費。隨著我們的作物保費全年增長，第二季度和第四季度的保費將僅為適度，我們計劃將作物保費分成自己的類別，並且我們將提供第一季財報電話會議的最新資訊。

Net earned premiums for the fourth quarter were 93.7 million, an increase of 14% compared to the prior year's fourth quarter. For the fourth quarter of 2023, our ratio of net earned premiums as a percentage of gross earned premiums was 33.9% compared to 38.9% in the fourth quarter of 2022 and compared sequentially to 31.6% in the third quarter of 2023 year over year decrease is reflective of our growth in fronting and lines of business use, quota-share reinsurance and the second full quarter with our renewed excess of loss reinsurance program with the mix of business matures and our excess of loss reinsurance program in place.

第四季淨賺保費為 9,370 萬份，較去年第四季成長 14%。2023 年第四季度，我們的淨已賺保費佔總保費的百分比為 33.9%，而 2022 年第四季度為 38.9%，與 2023 年第三季度的 31.6% 相比，同比下降為反映了我們在前沿和業務線使用、配額份額再保險以及第二個完整季度的成長，我們更新了超額損失再保險計劃，業務組合成熟，我們的超額損失再保險計劃到位。

Our net earned premium ratio was at its low point in the third quarter of 2023 and increase in the fourth quarter. We continue to expect a slight improvement in this ratio from the first part of the year and relatively consistent patterns for 2020 for losses and loss adjustment expenses for the fourth quarter were 17.9 million, comprised almost entirely of non-catastrophe attritional losses. The loss ratio for the quarter was 19.1%, which compares to a loss ratio of 22.4% a year ago in the fourth quarter, which was comprised of a catastrophe loss ratio of 2.3% and an attritional loss ratio of 20.1%. For the full year, our loss ratio was 21%, in line with our previously expected range and which compares to 24.9% in 2022. Based on our mix of business and growth, we expect our loss ratio to move up incrementally from the 2023 levels. Our acquisition expense as a percentage of gross earned premium for the fourth quarter was 10.5% compared to 12.7% in the fourth quarter last year and compared sequentially to 9.9% in the third quarter of 2023. Additional ceding commission and fronting fees continued to drive the year-over-year improvement. The acquisition. The acquisition expense ratio may be flat to modestly up in future quarters as our business mix matures this quarter, our acquisition expense is a little higher, but was completely offset by higher commission and other income for the quarter, both related to our crop business. The ratio of other underwriting expenses, including adjustments to gross earned premiums for the fourth quarter was 6.9% compared to 6.9% in the fourth quarter last year and compared to sequentially to 6.7% in the third quarter of 2023. In line with our expectation as we continue to invest in our organization. As we continue to grow, we continue to expect long-term scale in this ratio. While we may see periods of sequential flatness as we continue to invest in scaling the organization.

我們的淨賺保費比率在 2023 年第三季處於低點，並在第四季度有所上升。我們繼續預期這一比率比今年上半年略有改善，並且 2020 年第四季度損失和損失調整費用相對一致，為 1790 萬美元，幾乎全部由非災難自然減員損失組成。本季的損失率為 19.1%，而去年第四季的損失率為 22.4%，其中災難損失率為 2.3%，自然損耗損失率為 20.1%。全年損失率為 21%，符合我們先前預期的範圍，而 2022 年為 24.9%。根據我們的業務和成長組合，我們預期損失率將從 2023 年的水準逐步上升。我們第四季的購置費用佔總保費的百分比為 10.5%，去年第四季為 12.7%，而 2023 年第三季為 9.9%。額外的佣金和前置費繼續推動年比改善。收購。隨著我們本季業務組合的成熟，收購費用率在未來幾季可能持平或小幅上升，我們的收購費用略高，但完全被本季較高的佣金和其他收入所抵消，兩者都與我們的農作物業務有關。其他承保費用（包括第四季總保費調整）的比率為 6.9%，而去年第四季為 6.9%，而 2023 年第三季為 6.7%。符合我們持續投資於我們組織的預期。隨著我們的不斷增長，我們繼續預計這一比率將長期保持規模。儘管隨著我們繼續投資擴大組織規模，我們可能會看到連續的平坦時期。

Our net investment income for the fourth quarter was 7 million, an increase of 58.9% compared to the prior year's fourth quarter. The year-over-year increase was primarily driven by a higher average balance of investments held during the three months ended December 31st, 2023, and a mix shift of invested assets from lower yielding investment assets into higher yield investment assets with a similar credit quality. Our yield in the fourth quarter was 4.1% compared to 3.3% in the fourth quarter last year. The average yield on investments made in the fourth quarter was 5.9%. We continue to conservatively allocate our positions to asset classes that generate attractive risk-adjusted returns. During the quarter, there were no share repurchases, and we have 43.5 million of our authorized share repurchase program remaining as of December 31st, 2023 that we will continue to use opportunistically. At the end of the quarter, our net written premium to equity ratio was 0.87 to 1 for the year. Our strong top line performance continued to translate to the bottom line. Our adjusted net income grew 31% to 93.5 million, and our adjusted EPS grew 33.5% to $3.69. Our adjusted combined ratio was 71.2%, made up of a loss ratio and an expense ratio of 21% and 50.2%, respectively, both improvements from 2020 to ultimately resulting in an ROE of 21.9%. Our adjusted underwriting income grew 29.1% to 99.5 million, positioning us to achieve our Palomar two times objective from 2021 in less than four years as Mac mentioned, we are initiating our full year 2024 adjusted net income guidance of 110 million to 115 million, implying 20% adjusted net income growth at the midpoint of the guidance. This range includes our current estimate of the catastrophic California flood losses incurred in the first quarter of approximately 3.5 million. It is important to remember that our loss estimates and guidance include our expectations of many tests, such as severe convective storm activity. For the year, we expect our loss ratio to be approximately 21% to 25%, including the first quarter flood losses incurred to date and our estimate of mini cats, which represents approximately two to three points of our expected loss ratio.

我們第四季的淨投資收益為700萬，比去年第四季成長58.9%。同比增長主要是由於截至2023年12月31日的三個月內持有的投資平均餘額增加，以及投資資產從低收益投資資產混合轉向具有類似信用質量的高收益投資資產。 。我們第四季的收益率為 4.1%，而去年第四季的收益率為 3.3%。第四季的平均投資報酬率為5.9%。我們繼續保守地將部位分配給能夠產生有吸引力的風險調整報酬的資產類別。本季沒有進行任何股票回購，截至 2023 年 12 月 31 日，我們的授權股票回購計畫尚有 4,350 萬股，我們將繼續伺機使用。截至本季末，我們全年的淨承保保費與權益比率為 0.87 比 1。我們強勁的營收表現持續轉化為利潤。調整後淨利成長 31%，達到 9,350 萬美元，調整後每股收益成長 33.5%，達到 3.69 美元。我們調整後的綜合成本率為 71.2%，其中損失率和費用率分別為 21% 和 50.2%，較 2020 年有所改善，最終實現 21.9% 的 ROE。我們的調整後核保收入成長了29.1%，達到9,950 萬，這使我們能夠在不到四年的時間內實現2021 年帕洛瑪目標的兩倍，正如Mac 提到的，我們正在啟動2024 年全年調整後淨利指引為1.1 億至1.15 億，這意味著調整後淨利成長率為指引中點 20%。這一範圍包括我們目前對第一季加州災難性洪水損失約 350 萬人的估計。重要的是要記住，我們的損失估計和指導包括我們對許多測試的預期，例如強對流風暴活動。今年，我們預計損失率約為 21% 至 25%，包括迄今為止發生的第一季洪水損失和我們對迷你貓的估計，這相當於我們預期損失率的約兩到三個百分點。

With that, I'd like to ask the operator to open the line for any questions. Operator?

有了這個，我想請接線員為您解答任何問題。操作員？

Thank you. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue, you may press star two, if you would like to remove your question from the queue and For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

謝謝。如果您想提問，請按電話鍵盤上的星號一。確認音將表示您的線路在問題佇列中，如果您想從佇列中刪除您的問題，您可以按星號二，並且對於使用揚聲器裝置的參與者，可能需要在按星號之前拿起聽筒鍵。

Our first question is from Paul Newsome with Piper Sandler. Please proceed.

我們的第一個問題是保羅·紐瑟姆和派珀·桑德勒提出的。請繼續。

Good morning and congratulations on the quarter. Some system. Let's just tell them a little bit of a modeling question. Can you give us a little bit more thoughts on the relationship between gross and net and over the course of the next year. I mean, obviously, crop is a big reinsurance stimulated product mix shifts in there. And certainly a lot of pieces there for us to think about that. And maybe you could just talk to us about that and sort of the increasing and decreasing pieces of the reinsurances.

早上好，恭喜這個季度。一些系統。讓我們告訴他們一些建模問題。您能否給我們更多關於毛額和淨額之間的關係以及明年的想法。我的意思是，顯然，作物是再保險刺激產品組合變化的重要因素。當然，還有很多值得我們思考的內容。也許你可以和我們談談這個問題以及再保險的增加和減少部分。

Yes.

是的。

Thanks for the good question. And when we think about it right, we've said this all along that the gross to net ratio was probably at its lowest point after Q3 of this year. And after the full reinsurance placement was put in place. You did see that improve slightly in the fourth quarter. What I would expect with that is I'd expect that trend to continue in Q1. So I'd expect that to move up a little bit in Q1 and expect potentially a little bit of movement up in Q2. And then when we buy reinsurance again in the end of the second quarter. I would expect kind of that stairstep, the relationship that you saw in 2023 to happen again in 2024. So overall, 2024 is going to have a higher overall load on the reinsurance costs. So I would expect the full year net earned premium ratio to be a little bit lower than what you saw in 2023. But I would expect it to kind of when you get to the second half of 2024, I would expect it to look very similar to what you saw in 2023. So those same relationships starting to play out from what you saw.

謝謝你提出的好問題。當我們正確思考時，我們一直在說毛淨比可能處於今年第三季之後的最低點。在全面再保險安排到位後。您確實看到第四季度略有改善。我預計這種趨勢將在第一季繼續下去。因此，我預計第一季會略有上升，第二季可能會略有上升。然後當我們在第二季末再次購買再保險時。我預計你在 2023 年看到的那種階梯式關係將在 2024 年再次發生。因此整體而言，2024 年再保險成本的整體負擔將會更高。因此，我預計全年淨賺保費比率將略低於 2023 年的情況。但我預計到 2024 年下半年，情況會與 2023 年非常相似。因此，這些相同的關係從你所看到的開始發揮作用。

The other part of your question was related to crop right. And there is definitely some seasonality in our crop business because we will have for 2023, we were all full front for crop. So really all the seasonality that you saw was in the written premium, and I would expect that to be very similar in 2024, right? We are only participating 5%. So it will start contributing to the bottom line, but that bottom line contribution will not be as material as the seasonality that you see in the written premium written premium, as I mentioned in the prepared remarks, I would expect to see about 60% of that written premium in Q3, probably 25% of that written premium in Q1 and then a little bit spread out between Q2 and Q2 for 2024. But that seasonality you see in net written premium isn't going to be a driving factor in May. Our bottom line move significantly in a material way. And I think that noise that you guys are expecting the or isn't going to be material to our overall results. But you will see it in the written premium and then it'll just net out in the net earned.

你問題的另一部分與作物權有關。我們的農作物業務肯定存在一些季節性，因為到 2023 年，我們都全力投入農作物。所以，實際上，您看到的所有季節性都體現在保費中，我預計 2024 年會非常相似，對吧？我們只參與了5%。因此，它將開始對利潤做出貢獻，但這種利潤貢獻不會像您在保費中看到的季節性那樣重要，正如我在準備好的評論中提到的那樣，我預計會看到大約60% 的保費。第三季的保費可能是第一季保費的 25%，然後在 2024 年第二季和第二季之間稍微分散。但您在淨承保保費中看到的季節性不會成為 5 月的驅動因素。我們的利潤在實質方面發生了顯著變化。我認為你們所期待的或不會對我們的整體結果產生重大影響。但您會在書面保費中看到它，然後它就會在淨收入中扣除。

Well, one thing I'd add on crop the long term, we do expect that to be taking more meaningful risk participation but that wouldn't incept until January first of 25. So we'll have ample opportunity to guide on the our analysts on how that does change the relationship of earned premium and the like. But again, 2020, for like Chris described, is one where we're still more of a fee generator with a modest 5% risk participation in that makes sense.

好吧，我要補充一點，從長期來看，我們確實希望採取更有意義的風險參與，但這要到 25 日 1 月 1 日才會開始。因此，我們將有充足的機會指導我們的分析師了解這如何改變賺取保費等的關係。但同樣，正如克里斯所描述的，2020 年我們仍然更多地是一個費用產生者，適度的 5% 風險參與是有意義的。

And it competes across a little bit more, but I will anyway. And so the crop is interesting in that at least amongst the companies I cover, there are different opinions upon when the profits should emerge. So like a Chubb tends to show their profits in the third quarter in line with revenue where an American Financial Group tends to show its profits essentially is a favorable reserve development in the fourth quarter after that, from any thoughts about sort of how you we might not have treated it?

它的競爭有點多，但無論如何我都會。因此，這結果很有趣，至少在我報道的公司中，對於何時應該出現利潤有不同的看法。因此，就像安達(Chubb) 傾向於在第三季度顯示其利潤與收入一致一樣，而美國金融集團(American Financial Group) 則傾向於在第四季度顯示其利潤本質上是有利的儲備發展，從您對我們可能如何進行的任何想法來看不是已經治療了嗎？

Yes, I don't know if the right answer to either way?

是的，我不知道這兩種方式是否正確？

Yes.

是的。

Yes. I think when we look at it through the hard thing about it in the way, Chubb, does it or American financials as it Friday is not necessarily going to be a right or wrong. I think when we look at it, we plan on having most of the written premium in the third quarter because of the fact, that's when we expect the acreage reports to come in. And so when we tie the risk and the premium together, we expect probably to be a little bit more like Chubb if we were a full underwriter of this, right? And so that's when we think about it. So there will in time, as Mac mentioned, we will start taking more and so in time, I would expect us to probably look a little bit more like Chubb that where you would see a little bit of that catch-up right in Q3 from some of the earning of that premium, writing it at a premium and then also the losses that come in. But our goal isn't to have in your significant swings in our reserve we want to keep it a little bit smoother so that you'd argue where it's probably more a little bit more like American family. There's not we're not expecting to have a giant catch-up period for something like that. But we expect our premium to come in more in Q3 because that's when we're going to tie into the figures reported in knowing I'm having better confidence in what that written premium is.

是的。我認為，當我們透過困難的方式來看待它時，查布或週五的美國金融業不一定是對還是錯。我認為，當我們考慮時，我們計劃在第三季度獲得大部分書面溢價，因為事實上，我們預計那時會發布面積報告。因此，當我們將風險和保費聯繫在一起時，如果我們是該專案的全額承銷商，我們預計可能會更像安達保險，對嗎？這就是我們思考這個問題的時候。因此，正如 Mac 所提到的，我們將開始採取更多措施，所以隨著時間的推移，我希望我們可能看起來更像 Chubb，你會在第三季度看到一些追趕。部分溢價收入，以溢價出售，然後還有隨之而來的損失。但我們的目標不是讓您在我們的儲備中出現重大波動，我們希望保持它更加平穩，以便您會爭論它可能更像美國家庭。我們並不是不希望有一個巨大的追趕期來應付類似的事情。但我們預計我們的保費在第三季會增加，因為那時我們將與報告的數據掛鉤，因為我知道我對書面保費有更好的信心。

Makes sense. And I think it's worthwhile to ask questions, but always thankful for the help.

說得通。我認為提出問題是值得的，但始終感謝您的幫助。

Our next question is from Peter NetXen with Evercore ISI. Please proceed.

我們的下一個問題來自 Evercore ISI 的 Peter NetXen。請繼續。

Good afternoon.

午安.

Thanks for taking my questions. My first question, there's been some noise in the industry recently on construction oriented liability lines. I believe Palomar started writing contractors' GL in early 2021, which I know is after some of the more concerning years. But I'm just wondering if you could talk a little bit about that and how you guys are getting comfort growing in that line?

感謝您回答我的問題。我的第一個問題，最近業界對建築導向的責任線產生了一些噪音。我相信 Palomar 在 2021 年初開始編寫承包商的 GL，我知道這是在經歷了一些更令人擔憂的年份之後。但我只是想知道你是否可以談談這一點，以及你們在這方面的成長是如何感到舒適的？

Yes, sure, Peter. Thanks for the question. Um, we did we have started writing our contractors' general liability really at the in the early part of 2022, we hired a great leader and tie Robin towards the tail in that year. So it's a nascent effort led by someone that's a 20-year veteran of that joined us from American Financial Group with long-standing distribution relationships, a keen sense of the exposure. And as such, we feel very good about what we're writing Now mind you we are conservative in our approach to this. We are writing modest line sizes, typically on average 5 million gross that wherever our net participation is between 35% and 40%. We are avoiding heavy auto liability there. And as a result, the book has performed very well. That also being said, you know, we are still booking everything in our loss picks. So we are building up a nice loss reserve base that we have not touched and don't intend to touch on, but we do expect it to develop favorably based on the quality underwriting and the underwriter leading the team.

是的，當然，彼得。謝謝你的提問。嗯，我們確實在 2022 年初就開始編寫承包商的一般責任，我們聘請了一位出色的領導者，並在那一年將羅賓綁在了尾巴上。因此，這是一項新興工作，由一位擁有 20 年經驗的人領導，他從美國金融集團加入我們，擁有長期的分銷關係，對曝光有著敏銳的感覺。因此，我們對我們所寫的內容感覺非常好。現在請注意，我們對此的態度是保守的。我們編寫的線路規模適中，通常平均總銷量為 500 萬，無論我們的淨參與度在 35% 到 40% 之間。我們在那裡避免了嚴重的汽車責任。結果，這本書的表現非常好。話雖這麼說，你知道，我們仍在預訂損失選擇中的所有內容。因此，我們正在建立一個良好的損失準備金基礎，我們還沒有觸及也不打算觸及，但我們確實希望它能夠基於高品質的承保和領導團隊的承保人而有利地發展。

Okay, great. Thank you. And then my second question, it sounds like you guys saw rate in casualty remain at around 5% this quarter. I'm flat sequentially. And I guess I would have expected that to moderate slightly. So I'm just wondering if you could talk a little bit more about what you're seeing with regards to casualty rate and maybe what your outlook is for that in 24?

好的，太好了。謝謝。然後我的第二個問題，聽起來你們看到本季的傷亡率保持在 5% 左右。我依序持平。我想我本來預計這種情況會略有緩和。所以我想知道您是否可以多談談您所看到的傷亡率以及您對 24 小時的展望？

I mean, it's a good question. I would say on the casualty side with the 5% was kind of the blend across the multiple lines that we have. It does vary by line of business. Our real estate E&O book of business, which is right now heavily concentrated in California because of slower transaction activity, the rates were a little bit down. Excess Liability rates were 5% plus. And then if you going back to your contractors, GL, depending on the size of the account, it was 3% to 7% up. So our view is that you are going to see casualty rates flattish to modestly up over the course of this year, at least in the niche segments, where are we right.

我的意思是，這是一個好問題。我想說的是，在傷亡方面，5% 是我們擁有的多條線路的混合。它確實因業務線而異。我們的房地產 E&O 業務目前主要集中在加州，因為交易活動放緩，利率略有下降。超額負債比率為5%以上。然後，如果你回到你的承包商，GL，根據帳戶的規模，它會上漲 3% 到 7%。因此，我們的觀點是，今年的傷亡率將持平或小幅上升，至少在利基市場，我們的觀點是正確的。

Great. Thanks a lot. Thank you.

偉大的。多謝。謝謝。

Our next question is from Mark Hughes with Truist Securities. Please proceed.

我們的下一個問題來自 Truist Securities 的 Mark Hughes。請繼續。

Thank you. Good morning and good afternoon. The macro events and the layered and shared pricing, it might moderate the rate of gain might decelerate or do you see that flattening out or perhaps going up negative?

謝謝。早安，下午好。宏觀事件以及分層和共享定價，它可能會緩和收益率，可能會減速，或者您看到收益率趨於平緩或可能上升為負值？

Yes, Mark, good question. And I should clarify. It's the rate of increase. You know, we have seen in the fourth quarter. We still saw Commercial Earthquake across all of our book, both layered and shared and mid-market blend out of the 26% rate increase. What you are seeing now is on risk-adjusted increases coming under a little bit of pressure year over year from the amount of increase. So we do think that's going to come down. That means that you will still see risk-adjusted increase, um, that's a function of price as well as enhanced terms and conditions, whether it be deductible or attachment. So I don't want to paint a picture of a circumstance where rates are going to start to decline, it's just going to be the level of increase is decelerating.

是的，馬克，好問題。我應該澄清一下。這是增長率。你知道，我們在第四季就已經看到了。我們在整本書中仍然看到了商業地震，無論是分層的、共享的還是中端市場的混合，都超出了 26% 的成長率。現在您看到的是，風險調整後的成長面臨來自成長量的逐年壓力。所以我們確實認為這數字將會下降。這意味著您仍然會看到風險調整後的增加，嗯，這是價格以及增強的條款和條件的函數，無論是免賠額還是附加費。因此，我不想描繪利率將開始下降的情況，而只是成長水準正在減速。

And then could you talk about the quake business you had mentioned some factors driving that, the Earthquake Authority cutting limits and you also mentioned new distribution. How far along are you in those those drivers? I think, yes, the high 10s growth is sustainable and kind of where we are in that cycle.

然後您能談談地震業務嗎？您提到了一些推動這項業務的因素，地震局削減了限制，您還提到了新的分配。您在這些司機中走了多遠？我認為，是的，十多歲的高速成長是可持續的，並且符合我們所處的周期。

So yes, so good question. And I would say that the two that you bring up new distribution partnerships, that's carrier partnerships. Let's touch on that first. That has been tried and true distribution strategy of ours. And we are pleased that we have two new carrier partnerships that have gone that are going live this quarter on one focusing on high-value E and S in California, another more of a nationwide partnership. Both of those are early innings. If not the top of the first. So we think that there is good potential there, especially the one that's focusing on high-value E&S business in California. It's with an entrance operator in the space. And as it relates to the CPA. I would say that the changes in coverage that they are now offering to their policyholders at renewal didn't really start kicking into gear. The renewals weren't received by those policyholders until late Q4. So whether that be on a TRV that's over $1 million now having to move up its deductible from 5% to 10% to over 15 or 15 to 20 or it be the reduction of the coverage to your personal property protection moving down to 25,000 from 200,000. That dynamic is just starting to also emerge for us. And we think that is going to allow us to and we continue to take share from policies that are being either shop by switching that RCA policies are being shopped or are being ostensibly non-renewed.

所以是的，很好的問題。我想說的是，你們提出的兩個新的經銷合作夥伴關係，就是運營商合作關係。讓我們先談談這一點。這是我們經過考驗的真實分銷策略。我們很高興我們有兩個新的運營商合作夥伴關係，這兩個合作夥伴關係將於本季度上線，其中一個專注於加利福尼亞州的高價值E 和S，另一個則是全國範圍內的合作夥伴關係。這兩局都是早期局。如果不是頂第一。因此，我們認為那裡有很大的潛力，尤其是專注於加州高價值 E&S 業務的潛力。空間中有一個入口操作員。因為它與註冊會計師有關。我想說的是，他們現在在續保時向保單持有人提供的保險範圍變化並沒有真正開始發揮作用。這些保單持有人直到第四季末才收到續保。因此，無論是超過 100 萬美元的 TRV 現在必須將免賠額從 5% 提高到 10% 到超過 15 或 15 到 20，還是將個人財產保護的承保範圍從 200,000 降低到 25,000 。這種動態對我們來說也才剛開始顯現。我們認為，這將使我們能夠並且繼續從那些正在購買的保單中獲取份額，這些保單要么通過轉換 RCA 保單來購買，要么表面上不再更新。

So we think that both those are good dynamics to sustain that high 10s growth in residential Quake for the immediate future and then, Chris, did you give a kind of an overall thought about written premium for this year in light of the crop insurance, some of these other drivers that you can I consolidate that into one number range.

因此，我們認為這兩者都是在不久的將來維持住宅 Quake 10 多倍高增長的良好動力，然後，克里斯，您是否根據農作物保險對今年的承保保費進行了總體考慮？您可以將這些其他驅動程式合併到一個數位範圍。

Yes, for 2023, obviously, the crop premium is in our fronting portfolio. I think overall for the year, we're very pleased with how it all played out. I think the one thing that we pointed out in the prepared remarks is that we do expect that crop will be broken out in the future. It will still from that of the fee generation standpoint or an underwriting risk standpoint. Still look more like upfront, but we are making significant investments there. We are very pleased with the opportunities are there. So we would expect to pick that out in the future.

是的，對於 2023 年，作物溢價顯然屬於我們的前沿投資組合。我認為今年總體而言，我們對一切的進展感到非常滿意。我認為我們在準備好的發言中指出的一件事是，我們確實預計未來產量將會有所突破。從費用產生的角度或承保風險的角度來看，它仍然會存在。看起來仍然更像是前期，但我們正在那裡進行大量投資。我們對那裡的機會感到非常高興。所以我們預計將來會選擇它。

Probably starting with Q1 2024, we expect to start splitting out crop into its own line of business, we will participate in about 5% on that. And so as I said earlier, in response to one of the other questions from Paul, that, yes, there will be some seasonality there. But the overall impact on the earnings for the year will still be small and shouldn't be as material and cause any significant swings from quarter to quarter at least for 2020 for spot market.

可能從 2024 年第一季開始，我們預計開始將作物拆分為自己的業務線，我們將參與其中約 5% 的份額。正如我之前在回答保羅的其他問題之一時所說，是的，那裡會有一些季節性。但對今年獲利的整體影響仍然很小，不會造成重大影響，至少在 2020 年現貨市場上不會造成季度與季度之間的重大波動。

I think your question around broadly, we feel great about top line growth for the Company. We are we have not given guidance on premium growth historically. But I will say that, you know, we feel that we can certainly have strong growth that's in excess of 20 plus percent for sure. And I think that crop is going to be a nice contributor. As I mentioned previously, we thought we could we saw ourselves to doing high double digits millions of premium. Now we're saying that we can do over $100 million. So I think that's a good indicator, um, but we don't want to be overly prescriptive on premium growth. We do want to be very prescriptive on bottom line net income growth because I think that's what all of our investors and certainly us as investors and shareholders in the business are more focused on the ROE and the bottom line growth.

我認為你的問題很廣泛，我們對公司的營收成長感到滿意。我們歷史上從未對保費增長給予指導。但我要說的是，我們認為我們肯定可以實現超過 20% 以上的強勁成長。我認為農作物將成為一個很好的貢獻者。正如我之前提到的，我們認為我們可以看到自己的保費高達兩位數百萬。現在我們說我們可以做超過 1 億美元。所以我認為這是一個很好的指標，但是我們不想對保費成長做出過度規定。我們確實希望對淨利潤成長做出非常明確的規定，因為我認為這是我們所有投資者以及我們作為企業投資者和股東更關注的淨資產收益率和淨利潤增長。

Appreciate that.

感謝。

Thank you.

謝謝。

Our next question is from Andrew Andersen with Jefferies. Please proceed.

我們的下一個問題來自傑弗里斯的安德魯·安德森。請繼續。

Hey, good morning.

嗨，早安。

Maybe going back to the NPE. to GPE. ratio. Chris, you had mentioned you think in 24 it would and be a little bit lower. I was hoping you could just unpack this a bit more for me because I suppose 24 year bearing the full cost of the 23 XOL program. So perhaps a benefit that we would see at midyear 24 renewals wouldn't really come up until 2025, then we would see the ratio increase again. Is that the right way to think about it?

也許會回到NPE。到 GPE。比率。克里斯，你曾提到你認為 24 小時內的數字會更低。我希望您能為我詳細解釋一下，因為我想 24 年承擔 23 XOL 計劃的全部費用。因此，也許我們在年中 24 續訂時看到的好處要到 2025 年才會真正出現，然後我們會看到該比率再次增加。這是正確的思考方式嗎？

So what I would describe is that to say 2023 had seven months of that full cost versus in silver, the first five months of 2023, it was at a lower rate. And then if you remember, we had about a 30% increase or six one renewal. So that full weight we saw for seven months in 23. You will continue to see that for five months in 2024. And then as Mac mentioned in our guidance, we have in our assumption, we are assuming a low single-digit type increase in our reinsurance. So you'll have five months at the current rate, then let's call it less than 5% type increase at six one 2024. So a little bit up, Brian.

因此，我要描述的是，與白銀相比，2023 年有七個月的全部成本，即 2023 年的前五個月，其成本較低。如果你還記得的話，我們有大約 30% 的成長或六一更新。所以我們在 23 個月內看到了 7 個月的全部重量。到 2024 年，您將繼續看到這種情況 5 個月。然後，正如 Mac 在我們的指導中提到的那樣，我們的假設是，我們的再保險將出現低個位數的成長。因此，以目前的速度，你將有五個月的時間，然後我們稱之為 2024 年六一時的不到 5% 的成長。布萊恩，請稍稍振作起來。

So when you look at think about that 2024, we'll just have a much or not too much, but we'll have a higher overall reinsurance load in 2023, had that had the first five months at a lower reinsurance price. And so with all of that, when you look at the cycles, right, we buy our reinsurance, our excess of loss reinsurance for growth right. And so six months of this year, we will have a slight or we expect to have a slight increase plus we will buy for the growth that we expect throughout 2024 and into 2025. And so those factors together kind of create that stair-step function.

因此，當你考慮 2024 年時，我們只會有很多或不會太多，但如果前五個月的再保險價格較低，到 2023 年我們的整體再保險負擔將會更高。因此，綜上所述，當你觀察週期時，我們會購買再保險，購買超額損失再保險以實現成長。因此，今年的六個月，我們將略有增長，或者我們預計將略有增長，此外，我們還將為我們預計 2024 年和 2025 年的增長而購買。因此，這些因素共同創造了階梯函數。

When you look at the net earned premium, right, the net earned premium in Q4 was 33.9%. It was up from Q3 of 31.6%. So I expect Q1 of 2024. That 33.9%. I expect it to move up a little bit. I expect there to be that same little bit of benefit into Q2, but then you'll get one month of that new reinsurance. And so then in Q three, with the full reinsurance with a little bit of price increase also buying for growth, I expect that ratio to then come back down a little bit kind of that same stair-step a much more, I guess, muted stair-stepping up, you probably saw in 2023, but still that little bit of stair step function. So let's say, 34 plus in Q2 in Q1, I would expect you to go back down to something that as you saw similar to Q1 or Q3 of 2023 Q3 was 31.6, somewhere around there. That's probably the right way to think about it because it's going to start smoothing out as things start to mature and the mix starts to mature a little bit in our overall portfolio.

當你查看淨賺保費時，對吧，第四季的淨賺保費為 33.9%。較第三季的 31.6% 上升。所以我預計 2024 年第一季。那33.9%。我預計它會上漲一點。我預計第二季也會有同樣的一點好處，但隨後您將獲得一個月的新再保險。因此，在第三季度，隨著全面再保險和一點點價格上漲也為增長而購買，我預計該比率會回落一點點，我猜，同樣的階梯會更加平靜。樓梯上升，你可能會在2023 年看到，但仍然有一點樓梯台階功能。因此，假設第一季第二季為 34 以上，我希望您能回到與 2023 年第三季第一季或第三季類似的水平，即 31.6，大約在該水平附近。這可能是正確的思考方式，因為隨著事情開始成熟，並且我們的整體投資組合開始成熟一點，它就會開始變得平滑。

That's what Andrew. Yes, Andrew, one thing I would add, Chris describes it very well. It does somewhat hinge on XOL. And we like to think that we're being conservative in assuming that there's going to be a slight rate increase in XOL that renews at six oh six, one on what we saw at the start of the year is encouraging, but it's on a it's on a very small sample, set it up when you add up the quota share and the excess of loss that we renewed at one one, it constitutes about 10%, maybe a little bit more of the total limit that we buy from them. But I don't want to like 10% in form totality.

這就是安德魯.是的，安德魯，我要補充一件事，克里斯描述得很好。它確實在某種程度上取決於 XOL。我們認為，我們保守地假設 XOL 在六點六點更新的費率會略有增加，我們在今年年初看到的情況是令人鼓舞的，但它是在它的在一個非常小的樣本中，當你將配額份額和我們一次更新的超額損失相加時，它就構成了我們從他們那裡購買的總限額的大約10%，也許多一點。但我不想喜歡形式總數的 10%。

So if, um, it mirrors what we saw at one one, then it's the inverse of what Chris described, Jeff, to your point that you'll save, we're expecting a little bit of increase that if it goes the other way that margin, let's call it expansion kind of start happening and same thing in Q3, you get into Q2 and fully in Q3.

因此，如果，嗯，它反映了我們在一個方面所看到的情況，那麼這與克里斯所描述的相反，傑夫，就你的觀點而言，你會節省，我們預計會有一點點增長，如果情況相反的話這個利潤率，我們稱之為擴張，在第三季度開始發生同樣的事情，你進入第二季度，並在第三季度完全進入。

Yes, very helpful. Thank you for the expanded answers there. And maybe going back to cat losses here and recognizing the improvement over the years and the de-risking of the book year to date, 3.5 million of cat losses, including included in the guidance, but you're also kind of talking about a CAD4 million a sale I suppose isn't exactly the same as like a cat loss ratio.

是的，非常有幫助。感謝您提供的擴展答案。也許回到這裡的貓損失並認識到多年來的改進和本書今年迄今為止的去風險化，350 萬貓損失，包括在指南中，但你也在談論 CAD4我認為每筆銷售的百萬美元與貓的損失率並不完全相同。

But can you kind of help us square the two in the context of guidance cat losses you're so So Andrew, the but the couple of things, it's a good question.

但是你能幫助我們在指導貓損失的背景下將兩者結合起來嗎，所以安德魯，但是有幾件事，這是一個很好的問題。

On the $3.5 million, our losses related to floods in California on the atmospheric river from El Nino, what was you saw kind of a front page news in San Diego and other parts of the state of the 4 million route we are referring to is tied to our continental hurricane. So that is our continental hurricane average annual loss flood losses is a separate parallel, and it's something that we budget for. So we budget. So when Chris refers to his 0.82 to 3 points in our loss ratio for many cast that includes flood from this is just an elevated amount that's crossed a threshold that we are disclosing.

就 350 萬美元而言，我們的損失與厄爾尼諾現象造成的加州大氣河洪水有關，您在聖地亞哥和該州其他地區看到的頭版新聞與我們所指的 400 萬條路線是並列的到我們的大陸颶風。因此，我們的大陸颶風平均年損失和洪水損失是一個單獨的平行項，這是我們的預算。所以我們預算。因此，當克里斯提到他在許多演員（包括洪水）的損失率中為 0.82 比 3 分時，這只是一個升高的數字，超過了我們所披露的閾值。

Yes.

是的。

And maybe I'll add on that a little bit for just the overall loss ratio, right. When you look at it from a guidance standpoint, we said our loss ratio for the year should be about 21% to 25%. And that includes the $3.5 million of funding loss that's going to be in the first quarter. So that first quarter loss ratio will be a little bit higher. And that's up from a quarter standpoint, that's three to four points of loss ratio for the year. It's probably less than one point of overall loss ratio. But when we think about our loss ratio in that 21% to 25% loss ratio target or expectation, we believe and we feel that we do have a cat load in there that cat load is made up of many cats, which is going to be severe convective storm is going to be normal flooding, it's going to be tropical storms. We believe that of that 21% to 25%, there are two to three points in there that is related to catastrophes. That's what we would say. Other companies bucket as catastrophes we could bucket is catastrophes, but it's something that's just part of our planned loss ratio when it does not include is a large, major hurricane or earthquake impacting our portfolio. But we believe similar to prior years that that cat load is in there, we call it mini cats because they're usually smaller for us because the way we use reinsurance because of the way we underwrite and do all different sorts of things. But we believe that we have a two to three point cat load in our guidance for next year.

也許我會為整體損失率添加一點，對吧。從指導的角度來看，我們說今年的虧損率應該在 21% 到 25% 左右。其中包括第一季 350 萬美元的資金損失。所以第一季的虧損率會更高一些。從四分之一的角度來看，這個數字相當於今年的三到四個百分點的損失率。整體損失率可能不到一分。但是，當我們考慮 21% 至 25% 損失率目標或預期中的損失率時，我們相信並且感覺我們確實有一個貓負載，該貓負載由許多貓組成，這將是強對流風暴將是正常的洪水，這將是熱帶風暴。我們認為，在這21%到25%中，有兩到三個點與災難有關。這就是我們要說的。其他公司將其視為災難，而我們將其視為災難，但這只是我們計劃損失率的一部分，因為它不包括影響我們投資組合的大型颶風或地震。但我們相信，與前幾年類似，貓負載就在那裡，我們稱之為迷你貓，因為它們通常對我們來說較小，因為我們使用再保險的方式，因為我們承保和做各種不同事情的方式。但我們相信明年的指導中有兩到三點的貓負荷。

Very helpful. Thank you.

很有幫助。謝謝。

(Operator Instructions) Meyer Shields with KBW. Please proceed.

（操作員說明）帶有 KBW 的 Meyer 防護罩。請繼續。

Great, thanks. Good morning, Meghan, all I misinterpreted, but it sounded like you were a little cautious on funding appetite for 2024. I understand that there's the crop issue because it will be broken out. Am I misreading what you're thinking about the growth potential?

萬分感謝。早安，梅根，我誤解了，但聽起來你對 2024 年的資金需求有點謹慎。我知道有作物問題，因為它會被打破。我是否誤讀了您對成長潛力的看法？

Yes, thanks for the question. Um, I think with fronting, you know, we do take this very much more of a rifle shot approach. And so we want to go deep with existing partners that have high credit quality that we feel terrific about the collateral with that, we can orchestrate the reinsurance and we can, frankly, acutely manage from an underwriting and claims handling and compliance standpoint.

是的，謝謝你的提問。嗯，我認為對於前線，我們確實採取了更多的步槍射擊方法。因此，我們希望與具有高信用品質的現有合作夥伴深入合作，我們對抵押品感到非常好，我們可以精心策劃再保險，坦率地說，我們可以從承保和索賠處理以及合規的角度進行敏銳的管理。

So what that means is, you know, we kind of elephant hunt to some degree. So we think we can grow fronting this year, but it's not one that's going to grow 63% like it did in 23, it's going to index the growth rate on the overall operation. So I think that's what I would say. It's not say that we don't have a pipeline. It's not to say that we are not in discussions with a range of partners, but our bar is high. And I think the other thing it helps with it's one of five product categories. So we can be selective. It's a nice fee generator, but we also have crop that we think will do over 100 million this year. We also have Quake that we feel great about high 10s, 20% growth. And then we have a casualty franchise that's really coming into its own. So it's some it's a great line of business is not the totality of what we do, which allows us to be selective.

所以這意味著，你知道，我們在某種程度上狩獵大象。因此，我們認為今年我們可以實現成長，但不會像 23 年那樣成長 63%，而是將整體營運的成長率指數化。所以我想這就是我要說的。這並不是說我們沒有管道。這並不是說我們沒有與一系列合作夥伴進行討論，但我們的門檻很高。我認為它的另一件事是它有幫助的是五個產品類別之一。所以我們可以有所選擇。這是一個很好的費用產生器，但我們也有我們認為今年將超過 1 億美元的產量。我們還有《Quake》，我們對 10 倍以上、20% 的成長感到非常滿意。然後我們就有了真正發揮自己作用的傷亡專營權。所以，這是一個偉大的業務，並不是我們所做的全部，這讓我們能夠有選擇性。

Okay.

好的。

That's very helpful.

這非常有幫助。

Thanks.

謝謝。

And with regard to the crop, obviously, as an approved carrier, you have the ability to buy reinsurance from the government. The plant is that so that responsibility rests with Palomar or with the companies that you'll be sharing the premiums Emeritus John, Chris and I can take that one. So that is referring to the SRA on reinsurance treaty with the FTIC., that is a benefit to Palomar. So we buy reinsurance through that government program. But then also we have supporting private market reinsurance on the completion of the totality of that 90 for 95% of risk transfer that we have in place for our reinsurance. So on that is the that has been a polymer with regard to risk transfer.

就作物而言，顯然，作為經批准的承運人，您有能力向政府購買再保險。工廠就是這樣的，所以責任在於帕洛瑪或那些你將分享榮譽退休約翰、克里斯和我可以接受的溢價的公司。這指的是與 FTIC 簽訂的再保險條約 SRA，這對 Palomar 來說是一個好處。因此，我們透過該政府計劃購買再保險。但我們也支持私人市場再保險，以完成我們再保險中 90% 的風險轉移，即 95%。這就是風險轉移方面的聚合物。

And I think Meyer, as we've said, one one, 25, the complexion of our participation will be different and therefore, the reinsurance structure will be different as well. But we've got time to put that in place and educate you guys on that.

我認為邁耶，正如我們所說的，一一，25，我們參與的情況會有所不同，因此，再保險結構也會有所不同。但我們有時間將其落實到位並就此向大家進行教育。

Okay.

好的。

Perfect.

完美的。

And I just wanted to send the with the Domino's life. The final question is just with regard to the guidance, you talked about conservatively anticipating higher property cat rates online, I guess for the insurance costs at June, does the guidance anticipate a meaningful change in the attachment point?

我只是想把骨牌的生命也寄出去。最後一個問題是關於指導意見，您在網上談到了保守預期更高的財產貓費率，我想對於六月份的保險費用，指導意見是否預計附著點會發生有意義的變化？

I apologize if I missed that before.

如果我之前錯過了，我深表歉意。

No, good question. Meyer.

不，好問題。邁耶。

No, assuming the same attachment.

不，假設有相同的附件。

Okay.

好的。

I think I don't know that I would I would expand on that just a little bit when you think about our overall book in quota shares and things like that. So our guidance estimates are basically static from a risk participation staff incentives. Obviously, we've mentioned crop that 5% is in there. But when we think about our overall portfolio and loss ratio, acquisition expense. There is all these things and then we kind of guide to a net earned premium. Those all assume, let's call it static participation or underwriting to 2023, so end of 2023.

我想我不知道我會在考慮我們在配額份額和類似事情方面的整體情況時稍微擴展一下這一點。因此，我們的指導估計基本上是靜態的，來自風險參與員工的激勵。顯然，我們已經提到了其中 5% 的作物。但當我們考慮我們的整體投資組合和損失率、收購費用時。有了所有這些東西，然後我們就可以得出淨賺保費的指導。這些都假設，我們稱之為 2023 年靜態參與或承銷，即 2023 年底。

Okay, phenomenal.

好吧，太棒了。

That's very helpful.

這非常有幫助。

Thank you.

謝謝。

Pablo Singzon with JP Morgan. Please proceed.

巴勃羅辛宗 (Pablo Singzon) 與摩根大通 (JP Morgan) 合作。請繼續。

Hi, thanks. But first question, when thinking about the growth in underwriting income that's implied in your guidance for 24, would it be fair to assume that the improvement there will be driven by net earned premium growth. Seems like you're implying some deterioration in the combined ratio, which is consistent with what you've said in the past. Given your change in business mix. So therefore, would it be fair to assume that the uptick there it could be driven by?

你好謝謝。但第一個問題是，當考慮 24 的指導中隱含的承保收入增長時，是否可以公平地假設該改善將由淨賺保費增長推動。似乎您暗示綜合比率有所惡化，這與您過去所說的一致。鑑於您業務組合的變化。因此，假設該地區的上漲是由其推動的，這是否公平？

Yes, that's a great question, Pablo. We do expect our net earned premium to continue to grow. We've talked about it that the insurance increase that we saw at 600 this year was about 30% or 13 million a quarter. So now I say that we've got that fully in our results for Q3 and Q4. You saw that growth not to show up in the Q3 Q4 results. I would expect those dollars to continue to grow into Q1 and Q2 right in where we're not expecting the same type of rate increase. So I would expect the growth in the top line to better translate to the growth in net earned premium throughout the year because of that factor. So overall, we feel very good about it. Do we have we tried to project that and share with everyone what we expected to happen during 2023, and we think we did a good job of that. But we are expecting to see net earned premium continued to grow throughout 2024, even with a potential slight increase at 600 this year.

是的，這是一個很好的問題，巴勃羅。我們確實預計我們的淨賺取保費將繼續增長。我們談到，今年我們看到的保險增加了 600 人，大約是 30%，即每季 1300 萬。所以現在我說我們在第三季和第四季的結果中已經完全了解了這一點。您看到這種成長沒有出現在第三季第四季的業績中。我預計這些美元將在第一季和第二季繼續成長，而我們預計不會出現同樣類型的升息。因此，由於這個因素，我預計收入的成長將更好地轉化為全年淨賺保費的成長。總的來說，我們對此感覺非常好。我們是否嘗試過預測這一點，並與大家分享我們預計 2023 年會發生什麼，我們認為我們在這方面做得很好。但我們預計 2024 年淨賺保費將持續成長，即使今年可能小幅成長 600。

And then, Chris, I guess just a follow-up. The loss expectation you gave 24 do you want 21% to 25%. If you do the math, it sort of implies a wider range than the 110 to 1 15. You're giving 2024. So I was wondering how you sort of get from that wider loss ratio range, a tighter range than income. Can you provide more context and how that bridge?

然後，克里斯，我想這只是後續行動。你給的損失預期是24%，你想要21%到25%。如果你算一下，你會發現它的範圍比 110 到 1 15 更寬。你給了2024年。所以我想知道你如何從更寬的損失率範圍（比收入更窄的範圍）中獲得收益。您能否提供更多背景資訊以及如何建立橋樑？

Yes.

是的。

No, it's really it's a wider range.

不，實際上範圍更廣。

Part of that is strategic just to make sure that we give those ranges out there for people because one thing while I view that range as a good range for the year. I think some people like to apply that to every single quarter. And so on a quarterly basis, our loss ratio could do I would expect to be probably in between those numbers.

其中一部分是戰略性的，只是為了確保我們為人們提供這些範圍，因為我認為該範圍是今年的一個不錯的範圍。我認為有些人喜歡將其應用到每個季度。因此，按季度計算，我們的損失率可能會介於這些數字之間。

Right. But for the year, I would expect something closer to the middle of that range, I would say.

正確的。但我想說，今年，我預計會接近該範圍的中間。

Right, but because some people interpret that differently. I would like to give a little bit of a wider range there.

是的，但因為有些人對此有不同的解釋。我想在那裡提供更廣泛的範圍。

Right, but that is to your point even on an after-tax basis, that is probably wider than the $5 million and adjusted net income range. But overall, that's that's that's why we do it that way because different people interpreted different ways. And if for some reason it was a little higher or a little lower. It doesn't mean it's not going to be close to that at the mid Q4 is not going to close that to the midpoint when you get there for the full year, that's kind of the philosophy there. But you're absolutely right. That is from a dollar standpoint, probably a little wider range than what we give with the guidance.

是的，但這就是你的觀點，即使在稅後基礎上，這也可能比 500 萬美元和調整後的淨利潤範圍更寬。但總的來說，這就是我們這樣做的原因，因為不同的人有不同的解釋。如果由於某種原因它有點高或低一點。這並不意味著它不會接近第四季度中期的水平，也不意味著當你全年達到這個水平時，它不會接近中點，這就是那裡的哲學。但你是絕對正確的。從美元的角度來看，這可能比我們在指導中給出的範圍要寬一些。

That makes sense. And then last one for me, just a smaller question. So investment income is clearly been a tailwind for Palomar like for all the other insurers and just given your run rate in the fourth quarter, right, I think you printed some you can just multiply that you can reach the high 20s and 24 easily. Could you just give a sense of your current book yield and the new money yields you're investing at?

這就說得通了。最後一個問題對我來說只是一個較小的問題。因此，與所有其他保險公司一樣，投資收入顯然對Palomar 來說是一個順風車，考慮到您在第四季度的運行率，對吧，我認為您打印了一些，您可以乘以您可以輕鬆達到20 多歲和24 多歲的高點。您能否介紹一下您目前的帳面收益率和您投資的新資金收益率？

So for the fourth quarter, our investment yield was about 4.1%. It's been improving throughout the year, which is very similar to other folks.

所以第四季我們的投資報酬率約為4.1%。它全年都在進步，這與其他人非常相似。

Right. And I think the new money yield in the fourth quarter was about 5.9%, so still above that number. So we still think there is upside in investment income.

正確的。我認為第四季的新貨幣收益率約為 5.9%，仍然高於該數字。所以我們還是認為投資收益還有上升空間。

I think the one thing I'd point out and so there is a little bit of improvement from our view in our 2024 results. But when we go back to anything like Palomar TIMERx or adjusted underwriting income in the improvements we're seeing there that's before investment income, right? We are an underwriting company first who we want to be valued on the results of our underwriting right? In that we think investment income is something that you kind of put on top of that, we are performing well. We are doing everything we need to do to help keep that performance at a very high level while still being very conservative. But overall, the growth we're seeing in the bottom line is being delivered by our underwriting results, not by our investment income. So I guess I do feel there is upside investment income, but I am happy with the overall organization and the improvements that we've made in the growth and the underwriting income that we are seeing for the organization.

我認為我要指出的一件事是，從我們的角度來看，2024 年的結果有一點改進。但是，當我們回到 Palomar TIMERx 或改進中調整後的核保收入時，我們看到的是投資收入之前，對嗎？我們首先是一家承銷公司，我們希望根據承銷結果對我們進行估值，對嗎？我們認為投資收入是最重要的，因此我們表現良好。我們正在盡一切努力來幫助將業績保持在非常高的水平，同時仍然非常保守。但總體而言，我們看到的利潤成長是由我們的承保績效帶來的，而不是由我們的投資收入帶來的。所以我想我確實覺得投資收入有上升的空間，但我對整個組織以及我們在成長和承保收入方面所取得的進步感到滿意。

Thank you for your answers that follow.

感謝您接下來的回答。

We have reached the end of our question-and-answer session. I would like to turn the conference back over for closing comments.

我們的問答環節已經結束。我想將會議轉回以供結束評論。

Great.

偉大的。

Thank you operator, and thank you to all who joined us this morning. We appreciate your participation, your questions and your sustained support of Palomar.

謝謝接線員，也謝謝今天早上加入我們的所有人。我們感謝您的參與、您的問題以及您對 Palomar 的持續支持。

To conclude, I'd like to just reiterate how pleased I am with not only our fourth quarter, but also our full year results. But moreover, how proud I am of the team, the Palomar who allowed us to achieve these results I'm confident that 2024 will generate equally strong performance and results in our guidance indicates as much, I am equally confident that Palomar's sound and consistent execution will be recognized by the market and will enhance will deliver real value to our shareholders.

最後，我想重申我不僅對我們的第四季業績，而且對我們的全年業績感到非常滿意。但此外，我為這個團隊感到多麼自豪，帕洛馬爾讓我們取得了這些成果，我相信2024 年將產生同樣強勁的業績和結果，在我們的指導中表明，我同樣相信帕洛馬爾的健全和一致的執行將得到市場的認可，並將增強將為我們的股東帶來真正的價值。

So thank you all, and enjoy the rest of your day, and we'll talk to you next quarter.

謝謝大家，祝您今天剩下的時間愉快，我們將在下個季度與您交談。

Thank you.

謝謝。

This will conclude today's conference.

今天的會議到此結束。

You may disconnect your lines at this time, and thank you for your participation.

此時您可以斷開線路，感謝您的參與。