Palomar Holdings Inc (PLMR) 2025 Q3 法說會逐字稿

Good morning, and welcome to the Palomar Holdings, Inc. third quarter 2025 earnings conference call.

早安，歡迎參加 Palomar Holdings, Inc. 2025 年第三季財報電話會議。

(Operator Instructions) As a reminder, this conference call is being recorded. I would now like to turn the call over to Mr. Chris Uchida, Chief Financial Officer. Please go ahead, sir.

（操作員說明）提醒各位，本次電話會議正在錄音。現在我將把電話交給財務長克里斯·內田先生。請繼續，先生。

Thank you, operator, and good morning, everyone. We appreciate your participation in our earnings call. With me here today is Mac 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.

謝謝接線員，大家早安。感謝您參加我們的財報電話會議。今天陪同我來到現場的還有我們的董事長兼執行長麥克·阿姆斯壯。此外，我們的總裁喬恩·克里斯蒂安森也將在電話會議的問答環節回答問題。

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 November 14, 2025.

提醒各位，本次電話會議的錄音回放可在我們網站的投資者關係版塊收聽，截止時間為美國東部時間 2025 年 11 月 14 日晚上 11:59。

Before we begin, let me remind everyone 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.

在開始之前，請容我提醒大家，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》意義上的前瞻性陳述。其中包括對管理層未來預期、信念、估計、計劃和前景的評論。此類聲明受多種風險、不確定性及其他因素的影響，可能導致實際結果與此類聲明所指明或暗示的結果有重大差異。

Such risks and other factors are set forth in our quarterly report on Form 10-Q filed with the Securities and Exchange Commission. We do not undertake any duty to update such forward-looking statements. Additionally, during today's call, we will discuss certain non-GAAP measures, which we believe are useful in evaluating our performance.

此類風險和其他因素已在提交給美國證券交易委員會的 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義務。此外，在今天的電話會議中，我們將討論一些非GAAP指標，我們認為這些指標有助於評估我們的表現。

The presentation of this additional information should not be considered in isolation or as a substitute to 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.At this point, I'll turn the call over to Mac.

不應孤立地看待這些補充訊息，也不應將其視為根據美國法律編制的結果的替代方案。GAAP。這些非GAAP指標與其最接近的GAAP指標的調節表可在我們的獲利報告中找到。現在，我將把電話會議交給Mac。

Thank you, Chris, and good morning. Today, I'm pleased to walk through our exceptional third quarter results. It was another outstanding quarter for Palomar, highlighted by record gross written premium, record adjusted net income, the 12th consecutive earnings beat and our fourth adjusted net income guidance increase in calendar 2025.

謝謝你，克里斯，早安。今天，我很高興向大家介紹我們第三季出色的業績。對於 Palomar 而言，這又是一個出色的季度，亮點包括創紀錄的總保費收入、創紀錄的調整後淨收入、連續第 12 個盈利超出預期，以及我們對 2025 年日曆年調整後淨收入的第四次上調預期。

These results underscore the strength of our distinct franchise and the effectiveness of our disciplined underwriting, diversified portfolio and consistent execution. We've intentionally constructed a portfolio of specialty products designed to perform through all parts of the insurance market cycle. Our portfolio consists of a unique mix of admitted and E&S residential and commercial property and casualty risk that provide balance and earnings consistency.

這些結果凸顯了我們獨特的特許經營優勢，以及我們嚴謹的核保、多元化的投資組合和一致的執行的有效性。我們特意建立了一系列專業產品組合，旨在適應保險市場週期的各個階段。我們的投資組合由獨特的已承保和 E&S 住宅和商業財產及意外傷害風險組合構成，從而實現了平衡和收益的穩定性。

Additionally, our newer businesses like crop and surety are scaling nicely and enhance the diversification of the book given their lack of correlation to the broader P&C market. Even when -- with the increasing balance of our book, we are not standing still. The Palomar team remains not only entrepreneurial, but also steadfastly committed to profitable growth. We continue to strengthen our franchise, entering select specialty markets that offer compelling risk-adjusted returns.

此外，我們的新興業務，如農作物保險和擔保業務，發展勢頭良好，並且由於與更廣泛的財產和意外保險市場缺乏相關性，增強了業務的多元化。即使——隨著我們帳目的不斷平衡，我們也沒有停滯不前。Palomar 團隊不僅保持創業精神，而且堅定地致力於獲利成長。我們不斷加強我們的特許經營權，進入一些能夠提供具有吸引力的風險調整後回報的特定專業市場。

As part of this effort, last week, we announced the acquisition of the Gray Casualty and Surety Company, a leading surety carrier with a strong national presence and an exceptional management team. This transaction meaningfully enhances Palomar's surety platform, bolstering our market position and complementing our existing operations.

作為這項工作的一部分，上週我們宣布收購了 Gray Casualty and Surety Company，這是一家領先的擔保公司，在全國範圍內擁有強大的影響力，並擁有一支卓越的管理團隊。此次交易顯著增強了 Palomar 的擔保平台，鞏固了我們的市場地位，並補充了我們現有的業務。

The acquisition immediately adds scale and provides access to attractive markets such as Texas, Florida and California. Gray only enhances the sustained execution of our Palomar 2X initiative of doubling adjusted net income over a three- to five-year time frame.

此次收購立即擴大了規模，並使其能夠進入德克薩斯州、佛羅裡達州和加利福尼亞州等有吸引力的市場。Gray 只會增強我們 Palomar 2X 計劃的持續執行，該計劃旨在三到五年內將調整後的淨收入翻倍。

We're thrilled to welcome the Gray team to Palomar. Returning to the third quarter, we delivered another quarter of strong financial results, highlighted by 44% gross written premium growth and 70% adjusted net income growth. Our operating metrics were equally as strong with an adjusted combined ratio of 75% and adjusted return on equity of 26%, demonstrating the strength of our underwriting discipline and the earnings power of our model.

我們非常高興地歡迎 Gray 團隊加入 Palomar。回到第三季度，我們又取得了強勁的財務業績，其中毛保費收入成長了 44%，調整後淨收入成長了 70%。我們的營運指標同樣強勁，調整後的綜合比率為 75%，調整後的股本回報率為 26%，這表明我們承保紀律的嚴明性和我們模式的獲利能力。

Our strong top line growth was not driven by a single line of business as all our product groups, say, for fronting experienced double digits growth in the third quarter. The balance in our mix of business, commercial and personal lines products written on an admitted and excess and surplus basis allows us to navigate property and casualty market cyclicality definitely.

我們強勁的營收成長並非由單一業務線推動，例如，我們所有的前端產品組在第三季都實現了兩位數的成長。我們以承保、超額承保和剩餘承保為基礎的商業、企業和個人保險產品組合的平衡，使我們能夠有效地應對財產和意外傷害市場的周期性波動。

The balance book, combined with the numerous growth vectors across all our lines of business allowed us to outperform industry growth and profitability benchmarks in the third quarter and emboldens us to do so for the indefinite future. Turning to our business segments. Our Earthquake franchise is a great example of the balanced approach we take to constructing our portfolio.

資產負債表，加上我們所有業務線的眾多成長動力，使我們在第三季超越了行業成長和獲利基準，並使我們更有信心在未來無限期地繼續保持這一目標。接下來，我們來看看我們的業務板塊。我們的地震業務是我們建立投資組合時所採取的平衡方法的一個很好的例子。

Our book of admitted and E&S residential and commercial earthquake products grew 11% year-over-year in the third quarter. A sequential improvement from the second quarter. Growth was driven by the sound performance in the residential earthquake market as we continue to see healthy new business production and strong policy retention, a robust 88% for our Flagship Residential Earthquake business. We continue to benefit from our 10% inflation guard, which affords our residential earthquake book meaningful operating leverage in a softening property catastrophe reinsurance market.

第三季度，我們已獲批准的住宅和商業抗震產品以及 E&S 產品銷量較去年同期成長 11%。較第二季度有所改善。住宅地震保險市場表現良好，推動了成長，我們持續看到健康的新業務產出和強勁的保單續保率，旗艦住宅地震保險業務的續保率高達 88%。我們繼續受益於 10% 的通膨保障，這使得我們的住宅地震保險業務在疲軟的財產巨災再保險市場中擁有了有意義的營運槓桿。

Additionally, we have a robust pipeline of high-quality residential earthquake partnerships that we believe will provide incremental growth as we move into 2026. In our Commercial Earthquake business, the rate pressure experienced in the first half of the year persisted into the third quarter. During the quarter, the average commercial risk price decreased approximately 18% on a risk-adjusted basis, with large commercial accounts seeing more pressure than small commercial risks.

此外，我們還有一系列高品質的住宅抗震合作項目，我們相信這些項目將在2026年為我們帶來持續成長。在我們的商業地震保險業務中，上半年經歷的利率壓力一直持續到第三季。本季度，經風險調整後的平均商業風險價格下降了約 18%，其中大型商業帳戶面臨的壓力比小型商業風險更大。

Despite the rate pressure in the market, our commercial earthquake book grew during the third quarter, which reflects the strength and breadth of our franchise. We do not believe the rate pressure in commercial earthquake will ease over the near term, but we still expect to see growth for the remainder of the year and in 2026.

儘管市場面臨利率壓力，但我們的商業地震保險業務在第三季仍實現了成長，這反映了我們業務的實力和廣度。我們認為商業地震保險的利率壓力在短期內不會緩解，但我們仍然預計今年剩餘時間和 2026 年將保持成長。

We expect that the earthquake book will experience single-digit growth in the fourth quarter, although that is somewhat exacerbated by a onetime unearned premium transfer received in the fourth quarter of 2024. Overall, we remain convicted in our long-term ability to profitably grow our Earthquake business. The underlying profitability remains at a very high level with our earthquake average annual loss at a level considerably below that of 2023 and 2022.

我們預計地震保險業務在第四季度將實現個位數成長，儘管由於 2024 年第四季收到的一次性未實現保費轉移，這種情況有所加劇。總體而言，我們仍然堅信我們有能力長期實現地震業務的獲利成長。基本獲利能力仍然處於非常高的水平，我們的地震年均損失遠低於 2023 年和 2022 年的水平。

The stature of our residential earthquake book, which was 61% of the total earthquake book in the third quarter, combined with the expected further softening of the property cat reinsurance market will enable us to grow net earned premium even if primary commercial rate decline in 2026. As we have said time and time again, we have purposely built the earthquake book of business to navigate any market cycle.

我們住宅地震險業務的規模（第三季佔地震險總業務的 61%），加上預期財產巨災再保險市場將進一步疲軟，即使 2026 年主要商業費率下降，我們也能實現淨已賺保費的成長。正如我們反覆強調的那樣，我們特意建立了地震風險業務組合，以應對任何市場週期。

Our Inland Marine and Other Property category grew 50% year-over-year, which was a strong acceleration from the 28% growth in the second quarter. The quarter's performance was driven primarily by our admitted and residential property products, including but not limited to Hawaii hurricane, E&S flood and admitted builders risk. The Hawaii book grew close to 20%, and Laulima has emerged as the second largest rider of stand-alone hurricane coverage in Hawaii.

我們的內陸水險和其他財產險類別年增 50%，較第二季 28% 的成長率大幅提升。本季業績主要得益於我們已獲批准的住宅物業產品，包括但不限於夏威夷颶風險、E&S 洪水險和已獲批准的建築商風險險。夏威夷的保單成長了近 20%，Laulima 已成為夏威夷獨立颶風保險中第二大附加險。

Our residential flood product, while still a modest contributor to premium today, has experienced strong steady growth. We also believe our partnership with Neptune Flood will serve as a key catalyst accelerating the product's growth over the next three years.

我們的住宅洪水保險產品雖然目前對保費的貢獻仍然不大，但已實現了強勁穩定的成長。我們也相信，與 Neptune Flood 的合作將成為未來三年加速產品成長的關鍵催化劑。

The Neptune partnership commenced writing new business on October 1, and we are encouraged with the initial production, which has been amplified by the temporary closure of the National Flood Insurance Program.

海王星合夥公司於 10 月 1 日開始承保新業務，我們對初步業績感到鼓舞，而國家洪水保險計劃的暫時關閉更是助長了這一業績。

Our Builders Risk franchise continues to stand out, growing 53% in the quarter. Like our Earthquake business, our suite of builders' risk products includes commercial and residential products written on both an admitted and E&S basis. Builders Risk is a national product with no geographical boundaries, and we are investing in talent where building activity remains robust.

我們的建築風險業務持續保持領先地位，本季成長了 53%。與我們的地震業務一樣，我們的建築商風險產品系列包括以承保和 E&S 方式承保的商業和住宅產品。Builders Risk 是一款全國性產品，沒有地域限制，我們將在建築活動依然強勁的地區投資人才。

During the quarter, we added experienced underwriters in the high-growth markets of Boston and Dallas to sustain our growth and extend our reach. Importantly, we are achieving this growth in our Inland Marine and Other Property group despite the challenging commercial property market that has impacted our excess national property and commercial all-risk lines, again, underscoring the value of our differentiated and balanced mix across residential and commercial, admitted and E&S products.

本季度，我們在波士頓和達拉斯這兩個高成長市場增加了經驗豐富的承保人，以維持我們的成長並擴大我們的業務範圍。重要的是，儘管商業房地產市場充滿挑戰，影響了我們的超額全國地產和商業全險業務，但我們的內陸水險和其他財產險業務仍然實現了增長，這再次凸顯了我們在住宅和商業、已批准和 E&S 產品方面差異化和平衡組合的價值。

Our Casualty business delivered 170% year-over-year gross written premium growth, representing a nice sequential improvement from the 119% growth in the second quarter. We remain focused on segments of the casualty market where there is sustained rate adequacy. We are maintaining a disciplined approach to attachment points and net limits, leveraging quota share reinsurance to manage volatility and allow the portfolio to season appropriately.

我們的意外險業務實現了 170% 的同比增長，毛保費收入較第二季的 119% 實現了顯著增長。我們將繼續專注於意外傷害保險市場中費率持續合理的領域。我們對承保點和淨限額保持嚴謹的態度，利用比例再保險來管理波動性，並讓投資組合得到適當的調整。

Through the third quarter, our average net line across casualty remained below $1 million with our largest line of business, E&S General Casualty, averaging roughly $750,000. In the quarter, we saw strong performance from the excess and primary general casualty, which grew more than 110% year-over-year in our Environmental Liability business that was up 119%. Real estate E&O, which is our longest tenure casualty line grew 65%.

第三季度，我們的意外險平均淨額仍低於 100 萬美元，其中最大的業務線 E&S 一般意外險平均淨額約為 75 萬美元。本季度，超額和主要一般意外險業務表現強勁，年成長超過 110%，而我們的環境責任險業務較去年同期成長 119%。房地產責任險是我們保單期限最長的意外險業務，成長了 65%。

This quarter, we also wrote our first healthcare liability premiums, providing capacity to a segment amidst a hard market with technical rate increases exceeding 20%. Our casualty reserving philosophy also remains conservative and consistent. It is informed by ongoing analysis of loss emergence trends, attachment points and portfolio composition.

本季度，我們也承保了首筆醫療責任保險保費，在技術費率上漲超過 20% 的嚴峻市場環境下，為該細分市場提供了承保能力。我們的意外損失準備金提列理念也保持保守和一致。它以對損失出現趨勢、關聯點和投資組合構成的持續分析為基礎。

As we've discussed in prior quarters, we continue to carry more than 80% of our casualty reserves at IBNR, well above industry standards. Maintaining this conservative position reinforces the strength of our balance sheet and provides confidence in the durability and predictability of our future results.

正如我們在前幾個季度討論的那樣，我們繼續保持超過 80% 的意外損失準備金處於 IBNR 狀態，遠高於行業標準。保持這種保守的立場可以增強我們資產負債表的穩健性，並使我們對未來績效的持久性和可預測性充滿信心。

Fronting premium declined 32% year-over-year, a function of the last quarter of impact from the termination of the Omaha National partnership. Fourth quarter results will better reflect the underlying performance in the Fronting business.

前端保費年減 32%，這是由於上一季終止與奧馬哈國家保險公司的合作關係所造成的影響。第四季業績將更能反映前端業務的實際表現。

We remain selective in choosing our counterparties. And while we expect to add new partners in the coming quarters, fronting is not our highest strategic priority. Our crop franchise delivered $120 million of gross written premium in the third quarter, doubling the $60 million produced in the same period last year.

我們在選擇交易對手時始終保持謹慎。雖然我們預計在未來幾季會增加新的合作夥伴，但前端業務並不是我們最重要的策略重點。我們的農作物保險業務在第三季實現了 1.2 億美元的毛保費收入，是去年同期 6,000 萬美元的兩倍。

This strong year-over-year growth puts us well ahead of the pace to exceed our full year guidance of $200 million. Beyond the production during the quarter, we added talent focusing on the Kansas and Oklahoma markets that will help drive seasonal production in the first and fourth quarters of each year. These additions inform our revised premium expectation of $230 million for 2025.

這一強勁的同比增長使我們遠遠領先於預期，預計將超過我們全年 2 億美元的目標。除了本季的生產之外，我們還增加了專注於堪薩斯州和俄克拉荷馬州市場的人才，這將有助於推動每年第一季和第四季的季節性生產。這些新增內容使我們對 2025 年的保費預期修訂為 2.3 億美元。

We remain confident in building the business to $500 million over the intermediate term. Additionally, the crop market conditions have been favorable so far this season with strong planting activity and growing conditions that appear to be better than historical averages. Based on what we are seeing today, we expect results to outperform the 15-year average industry loss ratio.

我們仍然有信心在中期內將公司規模發展到 5 億美元。此外，本季農作物市場狀況迄今十分有利，種植活動活躍，生長條件似乎優於歷史平均值。根據我們目前所看到的，我們預計業績將優於過去 15 年的行業平均賠付率。

These dynamics are an encouraging indicator for the remainder of the year. The third quarter is generally not considered a major reinsurance renewal period. However, it was active for Palomar as we placed seven treaties. Importantly, all treaties renewed on terms equal to or better than expiring. We also had successful first-time placements for our new flood and healthcare liability programs.

這些動態預示著今年剩餘時間將出現令人鼓舞的局面。第三季通常不被認為是主要的再保險續保期。然而，它對帕洛瑪來說卻很活躍，因為我們簽訂了七項條約。重要的是，所有續簽的條約條款均等於或優於到期條約。我們的新洪水和醫療責任險項目也首次成功完成了投保。

Market conditions remain conducive to reinsurance buyers. And at this point, we are confident that we will see further decreases in property cat treaty pricing. Before I hand it over to Chris, I want to provide a little more color on Gray Surety. The $300 million acquisition is expected to close in the first quarter of 2026, and it should be accretive to earnings in its first year of incorporation into our organization.

市場環境仍有利於再保險買家。目前，我們有信心看到財產巨災保險價格進一步下降。在把麥克風交給克里斯之前，我想再詳細介紹一下 Gray Surety 公司。這項價值 3 億美元的收購預計將於 2026 年第一季完成，並且應該會在併入我們組織的第一年增加收益。

We intend to finance the transaction with a new term loan and excess cash on hand. Gray's terrific leadership team of Cullen Piske and Michael Pitre— will continue to lead Gray Surety, which we will rebrand as Palomar Surety.

我們計劃用一筆新的定期貸款和手頭上多餘的現金來為這筆交易提供資金。Gray 的優秀領導團隊 Cullen Piske 和 Michael Pitre 將繼續領導 Gray Surety，我們將把該公司更名為 Palomar Surety。

They will join forces with our team in New Jersey to build a top 30 national surety carrier. Adding Gray to our portfolio further diversifies our book and when combined with crop results in approximately 15% of our premium base being not subject to property and casualty market cyclicality.

他們將與我們在新澤西州的團隊攜手合作，打造一家躋身全國前 30 名的擔保公司。將 Gray 納入我們的投資組合，進一步分散了我們的業務，加上農作物保險，使我們約 15% 的保費基礎不受財產和意外傷害市場週期性波動的影響。

To conclude, I'm very proud of our third quarter results and moreover the team that delivered them. We generated strong top and bottom line growth, a top-tier return on equity and our 12th consecutive earnings beat. We are raising our 2025 adjusted net income guidance to $210 million to $215 million from $198 million to $208 million, the midpoint implying an adjusted ROE of 24%.

總之，我為我們第三季的業績感到非常自豪，更讓我自豪的是，我為取得這些業績的團隊感到驕傲。我們實現了強勁的營收和利潤成長，股本回報率一流，並連續第 12 次超出預期獲利。我們將 2025 年調整後淨利預期從 1.98 億美元至 2.08 億美元上調至 2.1 億美元至 2.15 億美元，其中值意味著調整後淨資產收益率為 24%。

The revised guidance implies the achievement of the Palomar 2X tenet of doubling adjusted net income in an intermediate time frame, in the case of our 2022 cohort, a three-year time frame and our 2023 cohort two years. We continue to believe this is an attainable target for the foreseeable future.

修訂後的指導意味著要實現 Palomar 2X 的原則，即在中期時間範圍內使調整後的淨收入翻一番，對於我們 2022 年出生的學生來說，這意味著三年時間，對於我們 2023 年出生的學生來說，這意味著兩年時間。我們仍然認為，在可預見的未來，這是一個可以實現的目標。

With that, I'll turn the call over to Chris to discuss our financial results and guidance assumptions in more detail.

接下來，我將把電話交給克里斯，讓他更詳細地討論我們的財務表現和績效預期假設。

Thank you, Mac. Please note that during my portion, 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 when we incur a net loss.

謝謝你，麥克。請注意，在我所討論的部分中，凡提及每股數字，均指採用庫存股法計算的稀釋後普通股每股收益。這種方法要求我們在獲利期間計入普通股等價物（如未行使的股票選擇權），並在出現淨虧損期間將其排除在外。

For the third quarter of 2025, our adjusted net income grew 70% to $55.2 million or $2.01 per share compared to adjusted net income of $32.4 million or $1.23 per share for the same quarter of 2024. Our third quarter adjusted underwriting income was $56.7 million compared to $31 million for the same quarter last year. Our adjusted combined ratio was 74.8% for the third quarter of 2025 as compared to 77.1% for the year ago third quarter.

2025 年第三季度，我們的調整後淨收入成長了 70%，達到 5,520 萬美元，即每股 2.01 美元，而 2024 年同期的調整後淨收入為 3,240 萬美元，即每股 1.23 美元。我們第三季調整後的承保收入為 5,670 萬美元，而去年同期為 3,100 萬美元。2025 年第三季度，我們調整後的綜合比率為 74.8%，去年同期為 77.1%。

For the third quarter of 2025, our annualized adjusted return on equity was 25.6% compared to 21% for the same period last year. As Mac discussed, our third quarter results continue to demonstrate our ability to achieve our Palomar 2X objectives of doubling adjusted net income within an intermediate time frame of three to five years while maintaining an ROE above 20%.

2025 年第三季度，我們的年化調整後股本回報率為 25.6%，而去年同期為 21%。正如 Mac 所討論的，我們第三季度的業績繼續證明我們有能力實現 Palomar 2X 目標，即在三到五年的中期時間內將調整後的淨收入翻一番，同時保持 20% 以上的 ROE。

Gross written premiums for the third quarter were $597.2 million, an increase of 44% compared to the prior year's third quarter or 56% growth when excluding runoff business. Looking at the fourth quarter, this headwind is now fully behind us. Gross earned premiums for the third quarter were $518.8 million compared to $395.9 million in last year's third quarter and sequentially to $408.8 million in the second quarter of 2025.

第三季毛保費收入為 5.972 億美元，比上年同期成長 44%，若排除已終止業務，則成長 56%。展望第四季度，這股逆風已經完全過去了。第三季毛已賺保費為 5.188 億美元，去年同期為 3.959 億美元，2025 年第二季為 4.088 億美元。

Year-over-year growth is driven by the overall performance of all lines of business, while sequential growth is significantly influenced by the crop earning pattern. Net earned premiums for the third quarter were $225.1 million, an increase of 66% compared to the prior year's third quarter. Our ratio of net earned premiums as a percentage of gross earned premiums was 43.4% as compared to 34.3% in the third quarter of 2024 and compared sequentially to 44% in the second quarter of 2025.

年比增速主要取決於所有業務線的整體表現，而環比增速則很大程度上受農作物收入模式的影響。第三季淨已賺保費為 2.251 億美元，較上年同期成長 66%。我們的淨已賺保費佔總已賺保費的百分比為 43.4%，而 2024 年第三季為 34.3%，與 2025 年第二季的 44% 相比有所下降。

With the timing of our core excess of loss reinsurance program renewal and the majority of our crop premiums written and earned during the third quarter, we continue to expect the third quarter to be a low point of our net earned premium ratio, increasing throughout the remainder of the reinsurance treaty year in a similar pattern to last year.

鑑於我們核心超額損失再保險計劃續保的時間以及我們大部分農作物保費是在第三季度承保和賺取的，我們仍然預計第三季度將是我們的淨已賺保費比率的低點，並在再保險合約年度的剩餘時間內以與去年類似的模式增長。

While we expect quarterly seasonality in our net earned premium ratio, we expect net earned premium growth over a 12-month period of time. Our net earned premium ratio was 43.7% for the first three quarters of the year. Based on our performance through the first nine months of the year, we expect our net earned premium ratio to be in the low to mid-40s for the full year, a slight improvement from our view after the second quarter. Losses and loss adjustment expenses for the third quarter were $72.8 million, which were predominantly attritional losses.

雖然我們預期淨已賺保費比率會隨季度波動，但我們預期淨已賺保費在 12 個月內會成長。今年前三個季度，我們的淨已賺保費率為 43.7%。根據我們今年前九個月的業績，我們預計全年淨已賺保費率將在 40% 左右，比我們第二季後的預期略有改善。第三季的損失和損失調整費用為 7,280 萬美元，其中主要是損耗性損失。

The loss ratio for the quarter was 32.3%, comprised of an attritional loss ratio of 31.5% and a catastrophe loss ratio of 0.8%. Additionally, our third quarter results include $6.1 million of favorable prior year development, primarily from our short tail Inland Marine and Other Property business. We continue to hold conservative positions on our reserves.

本季損失率為 32.3%，其中損耗損失率為 31.5%，巨災損失率為 0.8%。此外，我們第三季的業績還包括 610 萬美元的去年同期有利發展，主要來自我們的短期內陸水險和其他財產險業務。我們繼續對儲備金採取保守立場。

Favorable development is a result of our conservative approach to reserving upfront, allowing us to release reserves later. Our year-to-date loss ratio was 27.7%. With the strong results so far, we expect our loss ratio to be around 30% for the year, slightly more favorable than after the second quarter.

良好的發展得益於我們前期保守的儲備策略，使我們能夠在後期釋放儲備。今年迄今的損失率為 27.7%。鑑於目前為止的強勁業績，我們預計全年的虧損率將在 30% 左右，比第二季之後的情況略好。

Our acquisition expense as a percentage of gross earned premium for the third quarter was 10.8% compared to 10.5% in last year's third quarter and 12.6% in the second quarter of 2025. The percentage -- this percentage decreased sequentially from the higher gross earned premium for the quarter. Year-to-date acquisition expense was 11.8%. For the year, we expect this ratio to be around 11% to 12%, in line with previous expectations.

第三季度，我們的收購費用佔已賺保費總額的百分比為 10.8%，而去年同期為 10.5%，2025 年第二季為 12.6%。該百分比－該百分比較本季較高的毛已賺保費較上季有所下降。今年迄今的收購費用為 11.8%。我們預計今年這一比例將在 11% 到 12% 左右，與先前的預期一致。

The ratio of other underwriting expenses, including adjustments to gross earned premiums for the third quarter was 7.9% compared to 5.9% in the third quarter last year and compared to 8.7% in the second quarter of 2025. As demonstrated by our hires over the last year and in the third quarter, we remain committed to investing across our organization as we continue to grow profitably.

第三季其他承保費用（包括毛已賺保費的調整）佔總保費的 7.9%，去年同期為 5.9%，2025 年第二季為 8.7%。從我們過去一年和第三季的招募情況來看，我們將繼續致力於在整個組織內進行投資，並保持獲利成長。

As we have discussed on prior calls and today, we have continued to invest across our company as we work to further expand our reach and drive profitable growth given the attractive risk-adjusted returns that we continue to generate. We expect long-term scale in this ratio, although we may see periods of sequential flatness or increases due to investments in scaling the organization within our Palomar 2X framework.

正如我們在之前的電話會議和今天所討論的那樣，鑑於我們持續創造的具有吸引力的風險調整後收益，我們將繼續在公司各方面進行投資，努力進一步擴大我們的業務範圍並推動盈利增長。我們預計這一比例將長期保持成長，儘管由於在 Palomar 2X 框架內對組織規模進行投資，我們可能會看到一段時間的連續穩定或成長。

Year-to-date, this ratio was 8%. We continue to expect this ratio to be around 8% for the full year. Our investment income for the third quarter was $14.6 million, an increase of 55% compared to the prior year's third quarter. The year-over-year increase was primarily due to higher yields on invested assets and a higher average balance of investments held due to cash generated from operations and the August 2024 capital raise.

今年迄今為止，這一比例為 8%。我們預計全年這一比例將維持在 8% 左右。第三季我們的投資收益為 1,460 萬美元，比上年同期成長 55%。年比成長主要歸功於投資資產收益率提高以及經營活動產生的現金和 2024 年 8 月的融資活動帶來的投資平均餘額增加。

Our yield in the third quarter was 4.7% compared to 4.6% in the third quarter last year. The average yield on investments made in the third quarter continues to be above 5%, accretive levels compared to the most maturing securities. We continue to conservatively allocate our positions to asset classes that generate attractive risk-adjusted returns.

第三季殖利率為 4.7%，而去年同期為 4.6%。第三季投資的平均殖利率持續維持在 5% 以上，與到期日最長的證券相比，殖利率處於較高水準。我們將繼續採取保守策略，將投資重點放在能夠產生具有吸引力的風險調整後收益的資產類別上。

During the quarter, we repurchased approximately 308,000 shares for $37.3 million under the $150 million share repurchase authorization. At the end of the quarter, our net written premium to equity ratio was 1:1. Stockholders' equity has reached $878 million, a testament to consistent profitable growth. Our strong capital position allows us to continue to profitably invest in and grow our lines of business and to acquire Gray Surety with a combination of debt and cash.

本季度，我們根據 1.5 億美元的股票回購授權，以 3,730 萬美元的價格回購了約 30.8 萬股股票。季度末，我們的淨保費收入與權益比率為 1:1。股東權益已達 8.78 億美元，證明了公司持續獲利成長。我們雄厚的資本實力使我們能夠繼續盈利地投資和發展我們的業務，並透過債務和現金相結合的方式收購 Gray Surety。

I would like to make some brief comments on our business from a modeling perspective in addition to the expectations mentioned earlier in my remarks. As we have previously indicated, the third quarter will continue to stand out from other quarters because of the crop book and its seasonal written and earning patterns in addition to the first full quarter of our excess of loss reinsurance placed June 1.

除了我之前提到的期望之外，我還想從建模的角度對我們的業務做一些簡要評論。正如我們之前所指出的，由於農作物保險及其季節性承保和盈利模式，以及我們從 6 月 1 日開始實施的第一個完整的超額損失再保險季度，第三季度將繼續與其他季度有所不同。

Taking all of this into consideration and focusing on the dollars as we spoke about ratios earlier, we expect the third quarter of each year will have the highest gross written premium, gross earned premium, net earned premium, losses and acquisition expense. Looking to 2026, our third quarter and full year 2025 results should provide a good framework to model our business.

考慮到所有這些因素，並像我們之前討論的那樣關注美元，我們預計每年的第三季將出現最高的毛保費收入、毛已賺保費、淨已賺保費、損失和收購費用。展望 2026 年，我們 2025 年第三季和全年的業績應該能為我們的業務建模提供一個很好的框架。

Reflecting our strong operating results for the first nine months of the year, we are raising our full year 2025 adjusted net income guidance range to $210 million to $215 million. Importantly, the midpoint of our full year guidance range implies adjusted net income growth of greater than 59%, a full year adjusted ROE above 20% and doubling our 2022 adjusted net income in three years and doubling our 2023 adjusted net income in just two years. Our Palomar 2X objective remains in focus, and we plan on doubling adjusted net income every three to five years.

鑑於今年前九個月強勁的經營業績，我們將 2025 年全年調整後淨利預期範圍上調至 2.1 億美元至 2.15 億美元。重要的是，我們全年業績指引範圍的中點意味著調整後淨利潤增長超過 59%，全年調整後淨資產收益率超過 20%，並在三年內將 2022 年調整後淨利潤翻一番，在短短兩年內將 2023 年調整後淨利潤翻一番。我們仍將專注於實現 Palomar 2X 的目標，並計劃每三到五年將調整後的淨收入翻倍。

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

因此，我想請接線員開通線路，以便大家提問。操作員？

(Operator Instructions) Paul Newsome, Piper Sandler.

（操作說明）保羅·紐瑟姆，派珀·桑德勒。

I was hoping you could talk a little bit more about the market opportunity in Surety and maybe a little bit more specifically about exactly who you may or may not be competing with and it is an ordinarily pretty broad class of the business.

我希望您能更詳細地談談擔保業務的市場機會，更具體地談談您可能或不可能與之競爭的公司，因為擔保業務通常涵蓋範圍很廣。

Sure, Paul. Thanks for the question. We are really excited to bring Gray Surety into the organization. They are a very nice complement to what we have in New Jersey, which is Palomar Surety, the company known as First Indemnity of America. It's really writing contract Surety, kind of mid to small limit bonds.

當然可以，保羅。謝謝你的提問。我們非常高興Gray Surety加入我們的公司。它們與我們在新澤西州的 Palomar Surety（又名 First Indemnity of America）公司形成了很好的補充。實際上就是撰寫擔保合同，屬於中小型限額的保函。

On average, you're talking about bonds that are less than $2 million. The combination of the two affords us greater regional expense. As I said in my prepared remarks, Gray Surety is very strong in kind of high-growth Sunbelt regions, Texas, Florida, California. FIA is the Northeast. Bringing them together gives us over $100 million of kind of in-force bonds and premium and writing say, nationwide presence, but really strong in like 15 markets.

平均而言，你談論的是金額低於 200 萬美元的債券。兩者的結合使我們面臨更大的區域性支出。正如我在準備好的演講稿中所說，Gray Surety 在德克薩斯州、佛羅裡達州、加利福尼亞州等高增長的陽光地帶地區實力非常雄厚。國際汽聯是東北地區的代表。將它們結合起來，我們就擁有超過 1 億美元的有效債券和保費，業務遍及全國，但在大約 15 個市場中實力雄厚。

I think the opportunity for us is to take this from approximately a top 30 Surety on a combined basis to a top 20 in the not-so-distant future. And that's going to be driven by a few things. One, continuing to extend our reach. The Gray team has a terrific market entry model that's replicable where they understand what it takes from an underwriting investment and a system investment standpoint to enter into a market, the premium that must be generated to cover the cost and generate the requisite margin.

我認為我們有機會在不久的將來將這家擔保公司從綜合排名前 30 強提升到前 20 強。而這將受到以下幾個因素的影響。第一，繼續擴大我們的影響力。Gray 團隊擁有一個非常棒的市場進入模式，可以複製。他們了解從承保投資和系統投資的角度來看，進入市場需要什麼，必須產生多少保費才能涵蓋成本並產生必要的利潤。

So we will do a lot of that. I think there's an opportunity to cross-sell distribution between the two entities in FIA and Gray Surety. And then thirdly, our balance sheet will afford us more to do. Putting us together, I am going to have an entity that's approaching book value in excess of $1 billion. And moreover, our intention is to have Palomar Specialty T-listed, which will give them the ability to write larger bonds and participate in larger T-listed bonds.

所以我們會做很多這樣的事情。我認為FIA和Gray Surety這兩家公司之間有機會進行交叉銷售分銷。第三，我們的資產負債表將使我們能夠做更多的事情。我們將共同打造一個帳面價值接近 10 億美元的實體。此外，我們的目標是讓 Palomar Specialty 在 T 類交易所上市，這將使他們能夠發行更大規模的債券並參與更大規模的 T 類交易所上市債券。

Right now, the combined entity can do around a $12 million T-list -- has a $12 million T-listing approximately. So I think the combination of going deeper in existing markets, expanding into new markets, writing some larger limit business and a cross-selling distribution will allow us to get to that top 20 status. But again, the footprint that we have, just once they come together, gives us a meaningful position in the market and really strong expertise helping us build a franchise that we think can be an even bigger leader.

目前，合併後的實體可以進行約 1200 萬美元的 T-list 交易——擁有約 1200 萬美元的 T-list 交易額。所以我認為，透過深耕現有市場、拓展新市場、開展更大限額的業務以及交叉銷售分銷，我們將能夠躋身前 20 名。但話說回來，我們現有的資源，一旦整合起來，就能使我們在市場上佔據重要地位，並擁有強大的專業知識，幫助我們打造一個我們認為可以成為更大領導者的特許經營權。

And then for my second question, maybe you could talk as well about the potential future of the Crop business. Obviously, this year has the effect of the acquisition. I don't think of crop as being a growth business in general, but it's also fairly competitive. I don't know if that's a business that can grow a lot organically, prospectively and maybe it can. If you can just direct us into where that may go as well.

那麼，我的第二個問題是，您能否也談談農作物產業的未來發展前景？顯然，今年受到了收購的影響。我並不認為農作物種植業整體來說是個成長型產業，但它的競爭也相當激烈。我不知道這是否是一個能夠實現有機成長的業務，從前景來看，也許可以。如果您能指引我們這事可能的發展方向就更好了。

Yes. So well, I think, first off, I want to applaud our team, Benson Latham and [Jon Scheets,] Jay Rushing and others for what they've done this year. This is our second full year of operation, but the first full year of where we've had that leadership team as well as AAP inside our four walls.

是的。嗯，首先，我想讚揚我們的團隊，Benson Latham、[Jon Scheets]、Jay Rushing 以及其他隊員今年所取得的成就。這是我們營運的第二個完整年度，但卻是我們擁有這支領導團隊以及 AAP 團隊的第一年。

So they are executing very well. And I think the strength of their execution has been, a, leveraging their historical experience and relationships in the market. I mean these are professionals that have been in the crop space for decades. And then secondly, there's been their ability to attract talent.

所以他們執行得非常好。我認為他們執行力強的原因在於，他們充分利用了自身在市場上的歷史經驗和人脈關係。我的意思是，這些都是在農作物領域從事幾十年的專業人士。其次，他們也具備吸引人才的能力。

I highlighted on the call some new additions that we brought in, in the Oklahoma and Kansas market that's going to extend not only our geographic reach, but also our product offering and allowing us to write more kind of off-season winter wheat-type business, stuff that's written more in the fourth and first quarters of the year.

我在電話會議上重點介紹了我們在俄克拉荷馬州和堪薩斯州市場新增的一些產品，這些產品不僅將擴大我們的地理覆蓋範圍，還將擴大我們的產品供應範圍，使我們能夠承接更多淡季冬小麥類型的業務，這類業務通常在每年的第四季度和第一季度承接。

But overarchingly, Paul, we do think we're going to continue to growing crop. We've said that we plan on getting this to $0.5 billion of premium in the next several years, next couple of years. And then the ultimate goal is to get this to a $1 billion of premium.

但總的來說，保羅，我們認為我們將繼續種植作物。我們曾表示，我們計劃在未來幾年，甚至未來幾年內，將保費收入提高到 5 億美元。最終目標是將保費達到 10 億美元。

And the way we're going to do it is really on service and technology. And so we're making the investments right now to get to $0.5 billion and to get to $1 billion, and particularly on the technology side, while attracting best-in-class talent. So this is going to be a growth driver for us for the next few years, and we are very confident in our ability to execute.

而我們實現這一目標的方式，實際上是依靠服務和技術。因此，我們目前正在進行投資，目標是達到 5 億美元和 10 億美元，尤其是在技術方面，同時吸引一流人才。因此，這將成為我們未來幾年的成長動力，我們對自身的執行能力非常有信心。

Thanks for taking my questions.

謝謝您回答我的問題。

Andrew Andersen, Jefferies.

Andrew Andersen，傑富瑞集團。

Hey, good afternoon. Just on the net income guidance, I didn't hear anything about cat. Is there anything embedded within that?

嘿，下午好。僅就淨收入預期而言，我沒有聽到任何關於貓牌啤酒的消息。這裡面有什麼隱含的訊息嗎？

Yes. No. So we obviously had about $1.9 million of cats in the quarter. From our viewpoint, we do include mini cats in our loss ratio expectations of -- now we've kind of updated to be a little more favorable around 30% for the year. In our view, that includes everything that we would expect to happen for the year. Knock on wood, there are no major cats at the end of the year or in this quarter.

是的。不。所以，我們這個季度顯然有價值約 190 萬美元的貓。從我們的角度來看，我們確實將小型貓的損失率預期納入其中——現在我們已經更新了預期，今年的損失率預計會更樂觀一些，約為 30%。我們認為，這包括了我們預期今年會發生的一切。但願年底或本季不會有重大貓科動物事件發生。

Okay, and -- sorry, go ahead

好的，還有——抱歉，請繼續。

Just on the commercial quick, yes, I think it was down 20% in 2Q in terms of rate, down 18% this quarter. Do you think we're kind of past the peak deceleration of rate where maybe it will still be soft minus 10%, minus 5%, but it's not going to get much worse from here? Or how are you kind of thinking about the next 12 months?

就商業方面而言，是的，我認為第二季利率下降了 20%，本季下降了 18%。你認為我們是否已經過了增速放緩的高峰階段，增速可能仍然會放緩 10% 或 5%，但不會再惡化太多了？或者，你對未來12個月有什麼想法？

Yes, Andrew, it's a good question. And I do think we have seen a deceleration but we are not hanging our hats on a reversal. So I would say that you're going to continue to see a softening. But what I would like to point out is if you just look at the expense of our earthquake book, residential quake now is 61% of the book at the end of the third quarter.

是的，安德魯，問得好。我認為我們已經看到增速放緩，但我們並不指望增速會逆轉。所以我認為市場將繼續走軟。但我想指出的是，如果你只看我們地震險業務的支出，截至第三季末，住宅地震險業務佔總業務的 61%。

The area where we're seeing the most pressure from a rate standpoint is about 1/4 of the book and frankly, is around 8% of our book in totality. So we think we are very well hedged against softening rate on the primary side in commercial quake by the softening P&C -- or excuse me, property cat reinsurance market plus the inherent leverage that we have in residential quake.

從利率角度來看，我們看到壓力最大的領域大約占我們帳簿的 1/4，坦白說，大約占我們全部帳簿的 8%。因此，我們認為，透過降低財產和意外傷害再保險市場（或更準確地說，是財產巨災再保險市場）的利率，再加上我們在住宅地震保險中固有的槓桿作用，我們已經很好地對沖了商業地震一級保險利率下降的風險。

So yes, I think, you're going to continue to see large account pressure, probably not to the degree that you saw in the second and third quarter, but we're not going to make a call that it's going to recede. But we will make the call that the health of our residential earthquake book and the softening property cat reinsurance market is going to allow us to grow book top gross written premium in '26 as well as have scale from a net earned premium perspective on the earthquake book prospectively.

所以，是的，我認為，大客戶的壓力還會繼續存在，可能不會像第二季和第三季那麼嚴重，但我們不會斷言這種壓力會消退。但我們認為，我們住宅地震險業務的健康狀況以及財產巨災再保險市場的疲軟，將使我們能夠在 2026 年實現保費收入的增長，並且從淨已賺保費的角度來看，地震險業務也將具有規模優勢。

Thank you

謝謝

Mark Hughes, Truist Securities.

馬克·休斯，Truist Securities。

Yeah, thank you. Good afternoon. Chris, did I hear you properly the ratio of net -- yes, net to gross should continue to increase. It should step up in the fourth quarter and then step up further in the first half of next year. Is that correct?

是啊，謝謝。午安.克里斯，我沒聽錯吧，淨利潤率——是的，淨利潤與毛利潤的比率應該繼續增長。預計第四季將有所提升，明年上半年將進一步提升。是這樣嗎？

Yes, that's the correct way to think about it. We think of the third quarter as our low point for the net earned premium ratio. A couple of factors now, obviously, before and currently, it still has a lot of impact from the XOL and this being the first full quarter of any new XOL placement, even though there was rate savings on that, we still buy for growth.

是的，這樣想才是正確的。我們認為第三季是淨已賺保費比率的最低點。顯然，現在有幾個因素，之前和現在，它仍然受到 XOL 的很大影響，而且這是任何新的 XOL 部署的第一個完整季度，即使節省了費用，我們仍然為了增長而購買。

So the dollar spend on that does increase to support that growth. And then now this year and a little bit last year, but obviously, with the growth in crop this year and still ceding 70% of that, we expect the net earned premium ratio to be at the low point in the third quarter of every year and then going up incrementally from there all the way until, call it, Q3 of next year.

因此，用於支持經濟成長的美元支出確實會增加。今年和去年也略有增長，但顯然，由於今年作物產量增加，但仍有 70% 的作物需要支付保費，我們預計淨已賺保費將在每年的第三季度達到最低點，然後從那時開始逐步上升，一直到明年第三季。

Yes. I appreciate that. The impact from the Omaha National in 3Q, did you give that specifically? You mentioned that 4Q should show the underlying trend in fronting. And I'm just sort of curious what that underlying trend looks like at this point?

是的。我很感激。您是否具體提到了奧馬哈國家錦標賽在第三季的影響？您提到第四季應該能反映出前端開發的潛在趨勢。我只是有點好奇，目前這種潛在趨勢是什麼樣的？

Yeah. No. So the third quarter, I want to say it was about $30 million last year in our written premium. And so at this stage, that, call it, headwind has been pushed aside or beaten, I guess, is the right phrase for that, yes.

是的。不。所以，我想說的是，第三季我們承保的保費收入大約是去年的 3,000 萬美元。所以，到了這個階段，所謂的逆風已經被克服了，或者說，克服了，我想，用這個詞來形容就是正確的。

Yes, run its course.

是的，順其自然吧。

Yes. You pushed the headwind. Mac, you had mentioned a pipeline of quake relationships. Was that -- is there something -- some new developments there? Or is that just ongoing course of business?

是的。你頂住了逆風。Mac，你之前提到過地震關係管道。那邊是不是有什麼新進展？或者這只是正常的業務流程？

Yeah, Mark, and I'll let, Jon Christianson, chime in, too. It's -- I would say it's ongoing course of business. We have over 20 carrier partnerships for earthquake, where we are their dedicated partner to providing earthquake, whether it's to satisfy mandatory obligations or to bundle it with other products.

是的，馬克，我也請喬恩‧克里斯蒂安森插幾句。我認為這屬於正常業務流程。我們與 20 多家保險公司建立了地震保險合作夥伴關係，我們是他們提供地震保險的專屬合作夥伴，無論是為了履行強制性義務，還是為了與其他產品捆綁銷售。

And sometimes they come over lumpy, sometimes they are a bit of a hunting license and they grow. And so we have seen good execution and good conversion from partnerships over the course of '25, but we also do have a pipeline. But Jon, feel free to chime in.

有時它們長得凹凸不平，有時它們就像狩獵許可證一樣，會不斷生長。因此，在 2025 年，我們看到了良好的執行力和良好的合作關係轉換率，但我們也確實有一個待開發的專案。不過，喬恩，你也隨時可以發表意見。

Yes. No, I agree with all that. And I'd add that we're always searching for new strategic opportunities. And what we're finding now is that because we have been known as a strong strategic partner for earthquake, we're also taking inbounds, inquiries from others that are looking to better address the earthquake exposure that they may have or add value to their customers by adding earthquake.

是的。不，我完全同意。我還要補充一點，我們一直在尋找新的策略機會。我們現在發現，由於我們一直被認為是地震領域的強大策略合作夥伴，我們也收到了來自其他希望更好地應對地震風險或透過增加地震服務為客戶創造價值的機構的諮詢。

As Mac mentioned, some of the more higher profile household name type of partnerships that have come on over the last few years, they don't all come on at once in certain cases. And so as time has gone on and we've been working together for a longer period, we have seen increased traction with a number of large partners, and that's paid off so far this year.

正如 Mac 所提到的，過去幾年裡出現了一些更受矚目的家喻戶曉的合作關係，但在某些情況下，這些合作關係並不是同時達成的。因此，隨著時間的推移，我們合作的時間越來越長，我們與許多大型合作夥伴的合作也越來越密切，而今年到目前為止，這項合作已經取得了成效。

Yes. And so sometimes, it can be in a relationship where we are working with them in all states, but California and then California has opened up to us or it's vice versa. We're the California partner and then all of a sudden, they think about us handling Pacific Northwestern, New Madrid. So Jon and his team do an excellent job of chasing down these partnerships and then executing and implementing them. So we feel that '26 should provide one or two other new deals.

是的。因此，有時可能會出現這樣的情況：我們與他們在所有州都有合作，但加州對我們開放，或者反過來，加州對我們開放。我們是加州的合作夥伴，然後突然間，他們就考慮讓我們負責太平洋西北大學和新馬德里分校的業務。因此，Jon 和他的團隊在尋找這些合作夥伴關係、執行和實施這些合作關係方面做得非常出色。因此我們認為 2026 年應該能達成一到兩項新的協議。

Thank you very much.

非常感謝。

(Operator Instructions) Meyer Shields, KBW.

（操作說明）Meyer Shields，KBW。

Thanks. Chris, I can push a little more on the guidance. I'm trying to get a sense as the expectations for the underlying loss ratio, excluding reserve development and excluding the major catastrophe losses so far this year. Is there any -- can you help us think about that?

謝謝。克里斯，我可以在指導方面再多努力。我想了解一下，在不計提準備金和不計今年迄今的重大災害損失的情況下，基本損失率的預期是多少。有沒有什麼－您能幫我們思考一下嗎？

Yes. So I think from our standpoint, when you look at the book of business and the maturity and the lines of business that are growing, whether it be Crop, Casualty, Inland Marine and Other Property are growing at a very strong rate, not to say that Earthquake growth is still very good, but those lines that are growing at a higher rate do have attritional losses with them.

是的。所以我認為，從我們的角度來看，當你審視業務組合、成熟度以及正在增長的業務線時，無論是農作物保險、意外傷害保險、內陸水險還是其他財產保險，都在以非常強勁的速度增長，雖然地震保險的增長仍然非常好，但這些增長速度更快的業務線確實存在損耗。

So overall, Earthquake still has a nice 0% loss ratio, but these other lines that are growing at a higher rate do have attritional losses with them. So I expect the loss ratio to continue to move up. I think the one thing that we were saying at the end of last quarter is that we expected our loss ratio to be about, call it, low 30s for the year.

所以總的來說，地震險的損失率仍維持在 0%，但其他成長速度較快的險種確實有損耗。所以我預計賠付率會繼續上升。我認為我們在上個季度末提到的一點是，我們預計全年的損失率將在30%左右。

I think now based on some of the favorable results that we've seen so far, we expect that to kind of be around 30%. So that could be plus or minus 1 or 2 points on either side of that. But overall, we feel a little bit more favorable about where we did before. But overall, nothing has really changed that we still expect it to move up. It's still moving up in line with those attritional results.

我認為，根據我們目前看到的一些有利結果，我們預計這個數字會在 30% 左右。所以結果可能在此基礎上上下浮動 1 到 2 分。但總的來說，我們還是更喜歡之前的位置。但總的來說，情況並沒有真正改變，我們仍然預期它會上漲。它仍然在按照這些損耗結果向上移動。

But there's been no, call it, underlying unfavorability in any of the results. It's kind of just a natural change in our book of business and portfolio and diversification that is having that loss ratio move up a little bit. But again, like I said before, it's not jumping. It didn't jump from 10 points like anyone was thinking before. But overall, we felt that it was going to just move up incrementally and it's kind of doing exactly what we expected.

但就目前來看，所有結果中都沒有任何不利因素。這只是我們業務、投資組合和多元化方面的一種自然變化，導致損失率略有上升。但就像我之前說的，它不會跳動。它並沒有像之前任何人預想的那樣從10點躍升。但總的來說，我們覺得它會逐步上漲，而現在的情況也確實和我們預期的一樣。

Okay. That is very helpful. Can you talk a little bit more about the healthcare liability, I guess, book that you're writing? The specific question is whether there's like sexual abuse and molestation exclusions, but more broadly, what you're looking for?

好的。那很有幫助。您能否再詳細談談您正在撰寫的那本關於醫療責任的書？具體問題是是否存在性虐待和性騷擾之類的排除條款，但更廣泛地說，您想尋找什麼？

Yes, Meyer. So we launched that [71.] We hired a gentleman named Frank Castro, 30-year-plus underwriter, spent time at RLI, access -- and actually have worked as a risk manager for a large hospital system too. So great experience, launched 71 with a nice reinsurance program.

是的，邁耶。所以我們推出了[71.]。我們聘請了一位名叫弗蘭克·卡斯特羅的先生，他有30多年的核保經驗，曾在RLI工作過，也曾擔任過大型醫院系統的風險經理。體驗很棒，71 年推出的再保險計劃很不錯。

It's like we've done with other casualty. It's a walk before we run. Our gross limits are about $5 million. Net limit is going to be inside of $2 million. His book, what we're targeting is about 60% hospital liability, 25% managed care E&O and then 15% kind of Allied Health.

就像我們處理其他傷亡一樣。先學會走，再學會跑。我們的總限額約為500萬美元。淨限額將控制在 200 萬美元以內。他的書，我們瞄準的大約 60% 是醫院責任險，25% 是醫療管理責任險，還有 15% 是輔助醫療責任險。

And his timing is good as it pertains to hospital liability because you are seeing the SME or sexual molestation liability exclusions more frequently or sub limited.

就醫院責任而言，他的時機掌握得很好，因為現在中小企業或性騷擾責任的免責條款或限制條款越來越常見。

And as I mentioned on the call, again, the timing is good in the sense that there is meaningful rate to be grabbed here. So this is another example to walk before you run, but it's led -- and it's also another example of a great underwriter overseeing a market that's a bit dislocated.

正如我在電話會議上提到的，現在時機很好，因為這裡有相當可觀的利率可以抓住。所以這是另一個循序漸進的例子，但它是由一位優秀的承銷商領導的——這也是另一個例子，說明一位優秀的承銷商如何監管一個有點脫節的市場。

Okay. Yes. The timing certainly makes a lot of sense. And one last question, if I can. How should we think about the stickiness of flood policies that you're writing while the federal program is shut down?

好的。是的。時機選擇確實非常合理。最後一個問題，可以嗎？在聯邦防洪計畫關閉期間，您所製定的防洪政策的有效性該如何看待？

Yes. Happy to take that, Meyer. This is Jon Christianson. So I think what we found historically, both pre-shutdown and what we're seeing now is strong stickiness of policy renewals. And I think more importantly, in the last couple of months, we've seen a greater interest in new business and greater confidence in the private market delivering relative to the uncertainty around the NFIP.

是的。樂意接受，邁耶。這是喬恩·克里斯蒂安森。所以我認為，無論是在疫情封鎖之前還是現在，我們從歷史經驗中都發現，政策續約具有很強的黏性。更重要的是，在過去的幾個月裡，我們看到人們對新業務的興趣更大，並且相對於國家糧食保險計劃 (NFIP) 的不確定性，人們對私人市場的表現更有信心。

So strong product, a great partner, strong distribution. And I think as every day passes, there's greater validation and credibility in how the private market can deliver a better product than what has traditionally been in the market.

產品實力雄厚，合作夥伴優秀，通路強大。而且我認為，隨著時間的推移，私人市場能夠提供比傳統市場更好的產品，這一點越來越受到驗證和認可。

Okay, thank you.

好的，謝謝。

Pablo Singzon, JPMorgan.

Pablo Singzon，摩根大通。

The question of loss ratio deterioration versus accelerating premium growth always comes up for you, right, because of your changing mix and that's before thinking about things like reinsurance retentions and ceding commissions and the like, right?

賠付率惡化與保費加速成長之間的權衡問題總是會出現在你的考慮範圍內，對吧？這是因為你的保險組合不斷變化，而且這還沒考慮到再保險留存率和分保佣金等因素，對吧？

But just given your Palomar 2X aspiration to double earnings in three to five years, would it be fair to simplify the discussion here and assume that you're also planning for a similar growth trajectory in your net underwriting income, right? So I don't know, something like 20% to 30% growth a year in the medium term. Is that a fair way to think about your portfolio in a very simple way?

但鑑於 Palomar 2X 希望在三到五年內實現收益翻番，那麼為了簡化討論，假設您也計劃在淨承保收入方面實現類似的增長軌跡，這樣是否公平呢？所以我也不知道，中期內大概每年增長20%到30%吧。這種用非常簡單的方式思考投資組合的方法是否合理？

It is, Pablo. Yes, and thanks for bringing that up. I mean I think we feel that Chris has talked about it, that we have levers to pull from retentions and that's going to potentially amplify net earned premium growth over net premium growth and similarly on the investment side. But to answer your question simplistically, yes, I think that is an accurate way to categorize it.

是的，巴勃羅。是的，謝謝你提出這一點。我的意思是，我認為我們覺得克里斯已經談到了這一點，我們可以利用客戶留存率來提高淨已賺保費增長，從而有可能超過淨保費增長，投資方面也是如此。但簡單來說，是的，我認為這種分類方式是準確的。

Okay. And then second question also, I guess, on growth, Mac. So clearly, good growth you're experiencing right now. I'd be curious to hear at what point do you think you'll have to reload, whether it's with respect to new hires or even M&A as you did with Gray in order to sustain the current pace as opposed to sort of like past hires ramping up and growing in adjacent lines or sort of like low-hanging fruit that what you have now can achieve versus incremental hires or stretching for M&A.

好的。那麼第二個問題，我想也是關於成長的，Mac。所以很明顯，你們現在正經歷著良好的成長。我很想知道你認為在什麼情況下需要重新調整策略，無論是透過招募新員工，還是像你收購 Gray 那樣進行併購，以維持目前的發展速度，而不是像過去那樣讓現有員工逐步成長並在相關領域發展，或者像現在這樣，利用現有資源輕鬆實現目標，而不是透過逐步招募或進行併購。

Yes. I mean I think, obviously, Gray was unique in that it was an acquisition. We've been really an organic growth story up until the last year or so. But I think Gray afforded us the ability to really kind of supercharge our entry into the Surety market and give us the scale that we wanted.

是的。我的意思是，很明顯，Gray 的獨特之處在於它是一家收購公司。直到最近一年左右，我們的成長一直都是自然成長。但我認為 Gray 讓我們能夠真正加速進入擔保市場，並達到我們想要的規模。

We said our goal was to get to $100 million, bringing Gray in fold allows us to do it a lot quicker. But I think having Gray, and that's going to give us another organic growth vector, and that's because they can enter into new markets. And so Pablo, I think we're going to continue to grow organically by investing in talent, expanding geographic reach, entering into adjacencies.

我們曾說過我們的目標是達到 1 億美元，而格雷的加入使我們能夠更快地實現這一目標。但我認為，收購 Gray 將為我們帶來另一個有機成長點，因為他們可以進入新市場。所以，Pablo，我認為我們將繼續透過投資人才、擴大地域覆蓋範圍、進入相關領域來實現有機成長。

And then we'll be opportunistic if there is some inorganic growth driver that allows us to bring in an expertise or a competence that we don't think we can build in-house as effectively. So I don't want to say that we're going to -- well, I definitely want to say that we're not going to stop hiring talent that complements what we're doing or can help enhance our growth trajectory because we will continue to do that.

然後，如果出現一些非內生成長驅動因素，使我們能夠引入我們認為無法在內部有效培養的專業知識或能力，我們將抓住機會。所以我不想說我們會——好吧，我絕對想說我們不會停止招募與我們正在做的事情互補或能夠幫助我們提升成長軌蹟的人才，因為我們會繼續這樣做。

But I do want to say that we -- all of our lines of business, earthquake included have growth vectors. Some lines of business have headwinds in them, commercial property. But if you really peel it back, commercial property is less than 9% of our book. So when you look at crop, casualty, now the Surety franchise, the builders' risk franchise, residential quake, there are growth vectors across the board.

但我確實想說，我們——我們所有的業務線，包括地震業務在內，都有成長動力。有些行業面臨逆風，例如商業房地產。但如果你仔細分析，你會發現商業房地產在我們業務中所佔比例不到 9%。所以，當你審視農作物險、意外險、現在的擔保業務、建築商風險業務、住宅地震險時，你會發現各個領域都有成長點。

So 44% growth is very strong, and that's not going to be ad infinitum, but we remain very confident in our ability to achieve the Palomar 2X goals. And so that's going to have to come from gross written premium to some degree and then the net earned premium, which you highlighted earlier. So, we just think that we are well positioned and -- to attain Palomar 2X and also just to grow organically.

因此，44% 的成長非常強勁，但這不會無限持續下去，但我們仍然對實現 Palomar 2X 目標的能力充滿信心。因此，這部分收入將不得不來自毛保費收入，以及您之前提到的淨已賺保費收入。所以，我們認為我們已經做好了充分的準備，可以實現 Palomar 2X 的目標，並實現有機成長。

Okay. Thank you.

好的。謝謝。

There are no further questions at this time. So, I will turn the call over to Mac Armstrong for closing remarks.

目前沒有其他問題了。那麼，我將把電話交給麥克·阿姆斯特朗，請他作總結發言。

Thanks, operator, and thank you all for joining the call today. I'm very proud of our third quarter results. They demonstrate the strength of our business and the diversity of our unique specialty insurance portfolio. It's a balanced book of E&S and admitted residential, commercial property and casualty products.

謝謝接線員，也謝謝各位今天參加電話會議。我對我們第三季的業績感到非常自豪。它們展現了我們業務的實力和我們獨特的專業保險組合的多樣性。這是一本涵蓋 E&S 和已認可的住宅、商業財產及意外傷害保險產品的均衡書籍。

That's being supplemented now by the newer lines of business like crop and Surety that are uncorrelated to the P&C market cycle. So we think we are very poised to deliver consistent growth, and we're confident in our plan to do so. And the third quarter only gives us more conviction of what we have in front of us. So I'll conclude this with welcoming our new teammates at Gray Surety. And as always, I want to thank our employees for their commitment to Palomar.

現在，農業保險和擔保等與財產保險市場週期無關的新興業務線正在補充這一現狀。因此，我們認為我們已做好充分準備，實現持續成長，並且我們對我們的計劃充滿信心。第三季的表現更加堅定了眼前所擁有的成就。最後，我要歡迎格雷擔保公司的新同事們加入我們的團隊。一如既往，我要感謝我們的員工對帕洛瑪的付出。

Thanks again. Enjoy the rest of your day.

再次感謝。祝您今天餘下的時間愉快。

Thank you. All parties may now disconnect.

謝謝。所有參與者現在可以斷開連接。