RLI Corp (RLI) 2023 Q2 法說會逐字稿

Good morning, and welcome to the RLI Corp. Second Quarter Earnings Teleconference. After management's prepared remarks, we will open the conference up for questions and answers.

早上好，歡迎參加 RLI 公司第二季度收益電話會議。在管理層準備好發言後，我們將開始會議進行問答。

Before we get started, let me remind everyone that through the course of the teleconference, RLI management may take comments that reflect their intentions, beliefs and expectations for the future. As always, these forward-looking statements are subject to certain factors and uncertainties, which could cause actual results to differ materially. Please refer to the risk factors described in the company's various SEC filings, including in the annual report on Form 10-K as supplemented in Forms 10-Q, all of which should be reviewed carefully. The company has filed a Form 8-K with the Securities and Exchange Commission that contains the press release announcing third quarter results.

在我們開始之前，讓我提醒大家，通過電話會議的過程，RLI 管理層可能會聽取反映他們對未來的意圖、信念和期望的評論。與往常一樣，這些前瞻性陳述受到某些因素和不確定性的影響，可能導致實際結果存在重大差異。請參閱公司向 SEC 提交的各種文件中描述的風險因素，包括表格 10-K 中的年度報告以及表格 10-Q 中的補充，所有這些都應仔細審查。該公司已向美國證券交易委員會提交了 8-K 表，其中包含宣布第三季度業績的新聞稿。

During the call, RLI management may refer to operating earnings and earnings per share from operations, which are non-GAAP measures of financial results. RLI operating earnings and earnings per share from operations consist of net earnings after the elimination of after-tax realized gain or loses and after-tax unrealized gains or loses on equity securities. Additionally, equity in earnings of Maui Jim and the related tax were excluded from operating earnings and operating EPS for 2022 due to the sales of RLI investment in the third quarter of 2022.

在電話會議期間，RLI 管理層可能會參考營業利潤和每股營業利潤，這些是非公認會計準則財務業績指標。 RLI 營業利潤和每股營業利潤包括扣除股本證券的稅後已實現損益和稅後未實現損益後的淨利潤。此外，由於 2022 年第三季度出售了 RLI 投資，Maui Jim 收益中的權益和相關稅項被排除在 2022 年營業利潤和營業每股收益之外。

RLI's management believes these measures are usual in gauging core operating performance across reporting periods but may not be comparable to other companies' definitions of operating earnings. The Form 8-K contains a reconciliation between operating earnings and net earnings. The Form 8-K and press release are available at the company's website at www.rlicorp.com.

RLI 管理層認為，這些指標通常用於衡量報告期內的核心運營績效，但可能無法與其他公司對運營收益的定義進行比較。 8-K 表包含營業收入和淨利潤之間的調節表。 8-K 表格和新聞稿可在公司網站 www.rlicorp.com 上獲取。

I will now turn the conference over to RLI Chief Investment Officer and Treasurer, Mr. Aaron Diefenthaler. Please go ahead.

我現在將會議交給 RLI 首席投資官兼財務主管 Aaron Diefenthaler 先生。請繼續。

Good morning. Thank you for joining us to review RLI's results for the second quarter and first half of 2023. As usual, we are joined by Craig Kliethermes, President and CEO; Jen Klobnak, Chief Operating Officer; and Todd Bryant, Chief Financial Officer.

早上好。感謝您與我們一起回顧 RLI 2023 年第二季度和上半年的業績。像往常一樣，總裁兼首席執行官 Craig Kliethermes 也將與我們一起回顧； Jen Klobnak，首席運營官；和首席財務官托德·布萊恩特。

Craig is going to start us off with some introductory remarks. Todd will offer a play-by-play of the financial results. Jen will then comment on market conditions and further details on our product portfolio. We can then open things up for questions, and Craig will close with some final thoughts.

克雷格將首先進行一些介紹性發言。托德將詳細介紹財務業績。然後 Jen 將評論市場狀況以及我們產品組合的更多細節。然後我們可以提出問題，克雷格將提出一些最終的想法。

Craig?

克雷格？

Well, thank you, Aaron, and good morning, everyone. I'm very proud of the efforts of all of our associate owners as they delivered again with significant top line growth, an outstanding combined ratio across all segments and overall book value growth for the quarter. I'm very pleased with where we stand at midyear.

好吧，謝謝你，亞倫，大家早上好。我對我們所有聯營公司所有者的努力感到非常自豪，他們再次實現了顯著的營收增長、所有部門的出色綜合比率以及本季度的整體賬面價值增長。我對我們年中的表現非常滿意。

At RLI, we come to work each day knowing that we can and must be better than the day before. Perfection may not be attainable, but we're striving for, and we are successful because we focus on making decisions that will best serve our customers and our shareholders over the long term. The good decisions we make today may not be realized in the next quarter but will benefit us over the next decade.

在 RLI，我們每天上班時都知道我們可以而且必須比前一天做得更好。完美可能無法實現，但我們正在努力追求，我們之所以成功，是因為我們專注於做出最能長期服務於我們的客戶和股東的決策。我們今天做出的正確決定可能不會在下個季度實現，但將使我們在未來十年受益。

We have no control over the competitive landscape, but we can decide when and how we grow. We have a broad and diversified portfolio with underwriting expertise that know where the opportunities exist and the willingness and courage to let our portfolio evolve with current market conditions to optimize profitable growth. We have the confidence to execute because we don't let problems go unattended and, instead, exert more effort on the products and services where we can be most successful in providing differentiated services to our customers. That is what we have done to create a solid track record of success and is what we continue to do this past quarter.

我們無法控制競爭格局，但我們可以決定何時以及如何成長。我們擁有廣泛且多元化的投資組合，擁有承保專業知識，了解機會所在，並願意和勇氣讓我們的投資組合隨著當前的市場條件而發展，以優化盈利增長。我們有信心執行，因為我們不會讓問題得不到解決，而是在產品和服務上投入更多精力，從而最成功地為客戶提供差異化​​服務。這就是我們為創造堅實的成功記錄所做的事情，也是我們在上個季度繼續做的事情。

I'll let Todd and Jen go into more detail on the financials and the market in general. Todd, take it away.

我將讓托德和珍更詳細地介紹財務狀況和整個市場。托德，把它拿走。

Thanks, Craig. Good morning, everyone. Yesterday, we reported second quarter operating earnings of $1.16 per share. The quarter's result reflects solid underwriting performance and continued growth and investment. All in, we posted a combined ratio of 87.2% for the quarter, now 82.7% for the year and experienced continued top line growth, which was up 21%.

謝謝，克雷格。大家，早安。昨天，我們報告第二季度運營收益為每股 1.16 美元。該季度的業績反映了穩健的承保業績以及持續的增長和投資。總而言之，我們本季度的綜合成本率為 87.2%，今年的綜合成本率為 82.7%，並且營收持續增長，增長了 21%。

Investment income advanced 56%, as (inaudible) reinvestment rates on a larger asset base have been accrued. Operating cash flow of $174 million was up nicely for the quarter and continued to support growth in invested assets. Also important, the equity portfolio posted $25 million of unrealized gains compared to $101 million of net unrealized losses a year ago.

由於更大資產基礎上的（聽不清）再投資利率已經累計，投資收入增長了 56%。本季度運營現金流增長良好，達到 1.74 億美元，並繼續支持投資資產的增長。同樣重要的是，股票投資組合公佈了 2500 萬美元的未實現收益，而一年前的未實現淨虧損為 1.01 億美元。

Large equity price movements between periods can have a significant impact on [net earns], which you can see in comparative results this quarter. Realized gains were $6 million in the quarter for [funding] of modest portfolio rebalancing. From an underwriting income perspective, the quarter's combined ratio was 87.2% compared to 80.2% a year ago. Larger catastrophe losses, coupled with a reduced benefit from prior year's reserve releases within the casualty segment, increased the loss ratio by 6 points.

不同時期之間股價的大幅波動可能會對[淨利潤]產生重大影響，您可以在本季度的比較結果中看到這一點。本季度因適度投資組合再平衡而實現的收益為 600 萬美元。從承保收入的角度來看，本季度的綜合成本率為87.2%，而去年同期為80.2%。較大的巨災損失，加上上一年在傷亡部分的準備金釋放帶來的收益減少，使損失率增加了 6 個百分點。

Storm losses totaled $18 million in the quarter, a $17 million impact in property and $1 million casualty. Spring storm activity in Texas, Oklahoma and Florida was up considerably compared to last year and impacted our results. In addition, several of these losses on the property side were in excess of $1 million and remain within the higher retention on our property per risk [treaty], which was increased to $2 million in 2023.

本季度風暴損失總計 1,800 萬美元，財產損失 1,700 萬美元，人員傷亡 100 萬美元。德克薩斯州、俄克拉荷馬州和佛羅里達州的春季風暴活動與去年相比大幅增加，影響了我們的結果。此外，財產方面的一些損失超過 100 萬美元，並且仍處於我們按風險財產保留的較高水平[條約]，該損失在 2023 年增加到 200 萬美元。

I'll certainly note a notable impact on the property segment's loss ratio. Revenue growth from rates achieved over the trailing 4 quarters served to moderate the overall impact of the segment's results. For casualty, the underlying loss ratio was impacted by modest additions to the current accident year in our energy casualty book. In total, though, the segment's current accident year loss ratio is similar to the first quarter's results.

我當然會注意到對房地產部門損失率的顯著影響。過去 4 個季度實現的收入增長緩解了該部門業績的整體影響。對於傷亡事故，基本損失率受到我們能源傷亡事故書中當前事故年份的適度增加的影響。不過，總的來說，該部門當前的事故年損失率與第一季度的結果相似。

From a prior year's reserves perspective, all 3 segments benefited from favorable development. Inclusive of $2 million in catastrophe-related reductions, casualty posted $11 million of favorable emergence across a number of product lines. While down from the second quarter last year on a year-to-date basis, prior year emergence was similar to last year. As mentioned previously, reserve movements in an isolated period can vary, and evaluating trends over a longer time frame is typically more [informed].

從去年的儲備來看，這三個板塊均受益於良好的發展。包括與災難相關的 200 萬美元的減少在內，傷亡事故在多個產品線中實現了 1100 萬美元的有利增長。雖然與去年第二季度相比有所下降，但去年的出現情況與去年相似。如前所述，孤立時期內的儲備變動可能會有所不同，並且評估較長時間範圍內的趨勢通常會更加[知情]。

Property experienced $4 million in favorable development as marine, E&S and admitted property lines posted loss reductions. For surety, favorable reserve development was also $4 million. Our approach to reserving remains the same, and the quarter's results are reflective of a consistent process for evaluating loss reserve study 1 quarter in arrears and considering actual versus expected losses in the current period.

隨著海事、E&S 和承認的房地產業務虧損減少，房地產經歷了 400 萬美元的有利發展。可以肯定的是，有利的儲備開發也達到了 400 萬美元。我們的準備金方法保持不變，本季度的結果反映了評估第一季度拖欠損失準備金研究並考慮當期實際損失與預期損失的一致流程。

Moving to expenses. Compared to last year, our quarterly expense ratio increased 1 point to 39.4%. Elevated incentive-related amounts account for nearly all of this increase, most notably, amounts influenced by growth in book value, and you can use comprehensive earnings as a proxy, was up significantly compared to the second quarter of last year. We also continued to increase investments in people and technology to support growth, improve customer experience and drive efficiencies.

轉向開支。與去年相比，我們的季度費用率上升了 1 個百分點，達到 39.4%。與去年第二季度相比，與激勵相關的金額幾乎全部增加，其中最引人注目的是受賬面價值增長影響的金額，您可以使用綜合收益作為代理。我們還繼續增加對人員和技術的投資，以支持增長、改善客戶體驗並提高效率。

Turning to investments. The portfolio offered 1.1% total return in the second quarter, with significant contributions from equities. These were modestly offset by declining fixed income prices as treasury yields increased in [May and June]. Similar to prior quarters, we continued to find attractive opportunities to put operating cash flow to work in high-quality bonds and purchased yields averaged approximately 4.6% during the quarter. Additionally, the money market funds offering yields above 5%, we held a higher than average cash and short-term investment balance at the end of the quarter.

轉向投資。該投資組合第二季度的總回報率為 1.1%，其中股票貢獻顯著。隨著[五月和六月]國債收益率上升，固定收益價格下降略微抵消了這些影響。與前幾個季度類似，我們繼續尋找有吸引力的機會，將運營現金流用於高質量債券，本季度購買收益率平均約為 4.6%。此外，貨幣市場基金的收益率高於5%，我們在季度末持有的現金和短期投資餘額高於平均水平。

Overall, we are pleased with the portfolio's increasing support of operating earnings through investment income and have been layering in some intermediate maturities to ensure the support is sustainable. Incorporating comprehensive earnings and adjusting for dividends, book value per share increased by 17% from year-end 2022 to $29.65. Away from traditional investment portfolio, investing earnings were down, but that comparison was largely influenced by our sale of Maui Jim, which contributed $9 million to last year's results.

總體而言，我們對該投資組合通過投資收入不斷增加對營業收入的支持感到滿意，並已分層安排一些中期期限以確保支持的可持續性。考慮到綜合收益和股息調整，每股賬面價值較 2022 年底增長 17%，達到 29.65 美元。遠離傳統的投資組合，投資收益有所下降，但這種比較很大程度上受到我們出售 Maui Jim 的影響，該公司為去年的業績貢獻了 900 萬美元。

As noted last year and highlighted in our press release for comparative purposes, we have excluded earnings from Maui Jim in our calculation of operating earnings for 2022. All in all, a very good operating quarter and a strong first half of the year.

正如去年所指出的，以及出於比較目的在我們的新聞稿中強調的，我們在計算2022 年營業利潤時排除了Maui Jim 的收入。總而言之，這是一個非常好的營業季度和強勁的上半年。

With that, I'll turn the call over to Jen.

這樣，我會將電話轉給 Jen。

Thank you, Todd. Overall, we are pleased with our product portfolio and the second quarter's results. We continued to lean into opportunities in several areas of our property and casualty segments, producing double-digit growth for the quarter and almost 20% growth year-to-date. Much of that growth is coming through rate increases. We are experiencing broad profitability across our product portfolio and feel good about the small adjustments we are making based on customer needs and claim outcomes. We expect the impact of Florida tort reform to be a long-term benefit to the industry and hope that other states will follow.

謝謝你，托德。總的來說，我們對我們的產品組合和第二季度的業績感到滿意。我們繼續抓住財產和意外傷害領域多個領域的機遇，本季度實現了兩位數的增長，今年迄今實現了近 20% 的增長。其中大部分增長是通過加息實現的。我們的產品組合獲得了廣泛的盈利能力，並且對我們根據客戶需求和索賠結果所做的小調整感到滿意。我們預計佛羅里達州侵權改革的影響將為該行業帶來長期利益，並希望其他州也能效仿。

As Todd outlined, this quarter saw some higher loss ratios than last year's second quarter in the casualty and property segments. We are beginning to observe the courts opening back up and litigation discovery becoming more active. However, our new claim counts are up only slightly, a much smaller increase than premium growth.

正如托德概述的那樣，本季度傷亡和財產領域的損失率高於去年第二季度。我們開始觀察到法院重新開放，訴訟發現變得更加活躍。然而，我們的新索賠數量僅略有上升，增幅遠小於保費增長。

I'll give you a little color on the quarter's results by segment. Premium in the property segment grew 63% as we posted a 75 combined ratio. This market remains highly attractive, and we are continuing to take advantage of it. E&S property premium was up 86%, with hurricane rates increasing 49% and earthquake rates up 14% in the quarter. A significant portion of the industry's reinsurance capacity supporting the MGA markets renewed in the second quarter with less limit at a higher cost.

我將按部門對本季度的業績進行一些介紹。房地產領域的保費增長了 63%，綜合成本率為 75。這個市場仍然極具吸引力，我們將繼續利用它。 E&S 房地產溢價上漲 86%，本季度颶風發生率上升 49%，地震發生率上升 14%。該行業支持 MGA 市場的再保險能力的很大一部分在第二季度得到了更新，限額減少，但成本更高。

This leaves the catastrophe market facing reduced capacity, including both hurricane and earthquake risk. Submissions increased over 20% again this quarter, continuing the elevated state of activity that has existed since 2022. This has been a traditional hard market where brokers are challenged to place full limits, and we are able to work with them and reduce commissions a bit to get the coverage placed. Because we want to continue entertaining new business, we have reduced the limits we offer on individual risks, increasing the number of customers we can serve. We remain disciplined around due diligence, deductibles and policy terms for certain occupancies and building characteristics.

這使得災難市場面臨容量減少的問題，包括颶風和地震風險。本季度的提交量再次增加了 20% 以上，延續了 2022 年以來的活躍狀態。這是一個傳統的硬市場，經紀商面臨著設定全面限額的挑戰，我們能夠與他們合作並稍微降低佣金以獲得覆蓋範圍。因為我們希望繼續開展新業務，所以我們減少了對個人風險的限制，增加了我們可以服務的客戶數量。我們仍然對某些佔用和建築特徵的盡職調查、免賠額和政策條款保持嚴格的紀律。

Our hurricane exposure, as measured by exposed policy limits is relatively flat year-to-date, while modeled exposure has grown commensurate with our growth in capital. We purchased an additional $150 million of catastrophe reinsurance limit effective June 1. The additional limit is supporting our evolving view of risk as the catastrophe models are being updated. This is consistent with our well-established approach to managing our risk tolerance.

按照暴露的政策限制衡量，我們的颶風風險今年迄今相對持平，而模型風險的增長與我們資本的增長相稱。我們額外購買了 1.5 億美元的巨災再保險限額，自 6 月 1 日起生效。隨著巨災模型的更新，額外的限額支持了我們不斷變化的風險觀點。這與我們管理風險承受能力的既定方法是一致的。

The Marine division also had a successful quarter, growing premium 15% and increasing rates by 8%. Our submissions are growing considerably as we are viewed as a problem solver for our brokers by being responsive to their needs and tailoring coverage as necessary. While other carriers look to automate all interactions, we still believe there is great value in personal relationships and individual underwriting as we demonstrate what it means to be a specialist.

海事部門在本季度也取得了成功，保費增長了 15%，費率增長了 8%。我們提交的內容大幅增長，因為我們被視為經紀人的問題解決者，能夠響應他們的需求並根據需要定制覆蓋範圍。儘管其他承運人希望實現所有交互的自動化，但我們仍然相信個人關係和個人承保具有巨大的價值，因為我們展示了成為專家的意義。

Spring storm activity was notable in the quarter. The storms were strong in the Southeast, including Texas and Florida, areas where we have been opportunistically growing. Despite the severe storm activity, higher retentions and growth in these affected geographies, we were able to post a 75 combined ratio.

本季度春季風暴活動引人注目。東南部風暴強勁，包括德克薩斯州和佛羅里達州，我們一直在這些地區投機發展。儘管風暴活動嚴重，這些受影響地區的保留率和增長率較高，但我們仍然能夠發布 75 的綜合比率。

Our surety segment also posted a 75 combined ratio and grew premium by 1%. Contract surety led the way with a 10% premium increase. While previous period's growth was driven by inflation, the cost of construction materials is stabilizing and more comparable to prior periods. This quarter's growth is primarily driven by new construction projects.

我們的擔保業務部門的綜合成本率為 75，保費增長了 1%。合同擔保以 10% 的保費漲幅領先。雖然上一時期的增長是由通貨膨脹推動的，但建築材料的成本正在穩定，並且與上一時期相比更具可比性。本季度的增長主要由新建設項目推動。

Commercial surety and, particularly, our large account business had a slower quarter, and premium was down 5%. This business is very competitive, and quarterly results can be heavily influenced by only a couple of bonds. Surety trends follow economic activity, so we are very closely monitoring leading indicators in the construction market as well as the general economy to evaluate the business opportunities in this space. We remain disciplined in surety as we know that economic slowdowns raise the likelihood of claims. We've been in the surety business for over 30 years and are experienced at navigating through all market conditions.

商業擔保業務，特別是我們的大客戶業務，本季度增長放緩，保費下降了 5%。這項業務競爭非常激烈，季度業績可能會受到少數債券的嚴重影響。擔保趨勢跟隨經濟活動，因此我們正在密切關注建築市場以及整體經濟的領先指標，以評估該領域的商機。我們仍然保持紀律，因為我們知道經濟放緩會增加索賠的可能性。我們從事擔保業務已超過 30 年，在駕馭所有市場條件方面擁有豐富的經驗。

The casualty segment also grew by 1% and posted a 96 combined ratio. Our top line growth reflects our consistent underwriting discipline. In response to competitive pressures, we have been reducing our market participation in several products. These are all areas I've talked about previously, but I'll outline them again. The public D&O market continues to be highly competitive. To navigate the change in conditions, we have become more selective on both new and renewal business. So our renewal retention has decreased several points.

傷亡險業務也增長了 1%，綜合成本率為 96。我們的收入增長反映了我們一貫的承保紀律。為了應對競爭壓力，我們一直在減少多種產品的市場參與度。這些都是我之前討論過的領域，但我將再次概述它們。公共 D&O 市場仍然競爭激烈。為了適應形勢的變化，我們對新業務和續訂業務都更加挑剔。所以我們的續訂保留率下降了幾個點。

Rate change for the quarter is down 9%, and premium is down 10%. While claim counts are down this year, we saw some unusual severity and a couple of older claims in the quarter. We remain profitable year-to-date, but these claims serve as a reminder that this is a volatile business. Our team underwrites for the long term and with great care. Maintaining discipline in soft markets is critical to long-term success.

本季度利率變化下降 9%，保費下降 10%。雖然今年的索賠數量有所下降，但我們在本季度看到了一些不同尋常的嚴重程度和一些較舊的索賠。今年迄今為止，我們仍然保持盈利，但這些說法提醒我們，這是一項不穩定的業務。我們的團隊非常謹慎地進行長期承保。在軟市場中保持紀律對於長期成功至關重要。

Another market where we've experienced top line challenges is transportation, where the trucking portion of the market continues to be highly competitive and trucking companies revenues and miles driven are generally down a bit compared to last year. In this business, there's plenty of claim activity and the potential for nuclear verdict should remind underwriters to stay disciplined. Despite the difficulty of the trucking market, we are still finding opportunity within our specialty commercial auto and newly formed moving and storage niche. Premium for our transportation book overall was down 6% in the quarter, but we achieved 4% rate increases, and the book remains profitable.

我們經歷過頂線挑戰的另一個市場是運輸，該市場的卡車運輸部分仍然競爭激烈，卡車運輸公司的收入和行駛里程與去年相比普遍略有下降。在這個行業，有大量的索賠活動，核裁決的可能性應該提醒承保人保持紀律。儘管卡車運輸市場面臨困難，但我們仍在專業商用汽車和新形成的移動和存儲利基市場中尋找機會。本季度我們的運輸書籍保費總體下降了 6%，但我們實現了 4% 的費率增長，並且書籍仍然盈利。

The last market I will highlight is the energy casualty space. You'll recall that we exited the excess portion of this business effective January 1. That decision affected our ability to offer primary-only policies, and we did not believe the business model was viable long term, so we made the tough decision to exit the primary energy casualty space as well in July of this year. In calendar year 2022, we wrote a total of $24 million of premium and energy casualty. We are already down $15 million year-to-date in 2023, including an $8 million decrease in premium in the second quarter. So you will see the remaining $9 million of premium run off mostly in the second half of 2023, with a small amount rolling over in the first half of 2024. We believe our willingness to make the hard decisions to slow growth or exit underperforming businesses before they become too big to fail is a differentiator and largely responsible for our long-term consistent underwriting success.

我要強調的最後一個市場是能源事故領域。您可能還記得，我們從1 月1 日起退出了該業務的超額部分。該決定影響了我們提供僅限主要保單的能力，而且我們認為該業務模式長期不可行，因此我們做出了退出的艱難決定今年7月也是主要能源傷亡空間。 2022 年，我們共承保了 2,400 萬美元的保費和能源意外險。 2023 年迄今為止，我們已經減少了 1500 萬美元，其中第二季度的保費減少了 800 萬美元。因此，您將看到剩餘的900 萬美元保費大部分在2023 年下半年流失，少量在2024 年上半年滾動。我們相信，我們願意在之前做出放慢增長或退出表現不佳業務的艱難決定。它們變得太大而不能倒是一個差異化因素，也是我們長期持續承保成功的主要原因。

On a more positive note, there has been opportunity in the casualty market, and we continue to take advantage of it. The personal umbrella space has been disrupted for some time. As you read in the news, there are personal lines companies reducing their participation in both California and Florida, and this trend may continue unless carriers are permitted to achieve rate adequacy. When primary carriers change their appetite in the homeowners or auto markets, the opportunity for our stand-alone personal umbrella policy increases. Our focus is to grow proportionally across the country, and we are working with our producers to ensure we're not overweight in any problematic states.

從更積極的角度來看，傷亡市場存在機會，我們將繼續利用它。一段時間以來，個人保護傘空間被擾亂。正如您在新聞中讀到的那樣，有些個人線路公司減少了在加利福尼亞州和佛羅里達州的參與，除非允許運營商實現費率充足，否則這種趨勢可能會持續下去。當主要承運人改變對房主或汽車市場的興趣時，我們獨立的個人保護傘政策的機會就會增加。我們的重點是在全國范圍內按比例增長，我們正在與生產商合作，確保我們在任何有問題的州都不會超重。

We are also restricting underwriting eligibility of the more marginal risk in several states in order to maintain underwriting profitability. We continue to achieve an underwriting profit in this long-time business and are monitoring and managing our growth closely.

我們還限制了幾個州的邊際風險較高的承保資格，以維持承保盈利能力。我們繼續在這項長期業務中實現承保利潤，並密切監控和管理我們的增長。

The other notable area of growth is in our E&S primary liability book. Premium grew 10% in the quarter, driven by construction outside of New York City. The construction space is highly competitive. The private construction market is slowing a bit as evidenced by contractors' slightly reduced projected revenues. Our approach is to stay in front of our producers, be proactive in pursuing new business opportunities and provide tailored solutions to their problems.

另一個值得注意的增長領域是我們的 E&S 主要責任賬簿。在紐約市以外的建築工程的推動下，本季度保費增長了 10%。建設空間競爭激烈。私人建築市場正在略有放緩，承包商預計收入略有下降就證明了這一點。我們的方法是走在生產商的前面，積極主動地尋求新的商機，並針對他們的問題提供量身定制的解決方案。

This quarter demonstrates our commitment to underwriting discipline. In the property segment, we are leaning into the market opportunity by meeting the needs of our producers and insurers while focusing on refining our appetite, rate adequacy, tightening terms and conditions and proactive claim handling. In surety, we are being cautious about growth as economic conditions have affected a handful of our insured -- our principles. In casualty, we exited the energy casualty space and are managing through a few challenging markets while growing in areas where our capacity and expertise are needed and where we can achieve adequate rate. This is what we do. We believe our diversified product portfolio is healthy and well positioned to navigate this evolving marketplace.

本季度體現了我們對承保紀律的承諾。在房地產領域，我們通過滿足生產商和保險公司的需求來抓住市場機遇，同時專注於改善我們的胃口、利率充足性、收緊條款和條件以及積極的索賠處理。可以肯定的是，我們對增長持謹慎態度，因為經濟狀況影響了我們的一些被保險人——我們的原則。在傷亡方面，我們退出了能源傷亡領域，正在應對一些具有挑戰性的市場，同時在需要我們的能力和專業知識以及我們能夠實現足夠速度的領域不斷發展。這就是我們所做的。我們相信，我們多元化的產品組合是健康的，並且能夠很好地駕馭這個不斷發展的市場。

I'll turn the call over to the moderator to open it up for some questions.

我會將通話轉交給主持人，以解答一些問題。

(Operator Instructions) We have our first question. It comes from Greg Peters from Raymond James.

（操作員說明）我們有第一個問題。它來自雷蒙德·詹姆斯的格雷格·彼得斯。

Great. I guess -- and I recognize you provided a lot of comments on the property business, but I wanted to ask a couple more questions. In the context of the growth, can you provide some perspective on how much that growth is just pure rate versus exposure versus new business? And I guess exposure in new business can sometimes mean the same thing, but just to provide some balance on what's rate versus what's new business would be helpful.

偉大的。我想 - 我知道您對房地產業務提供了很多評論，但我想再問幾個問題。在增長的背景下，您能否提供一些觀點來說明這種增長在多大程度上是純粹的增長率、敞口與新業務的關係？我想，新業務的曝光有時可能意味著同樣的事情，但只是在費率與新業務之間提供一些平衡就會有所幫助。

Sure. So if we focus on kind of the hurricane side of the house, as I mentioned, we had 49% positive rate change in the quarter. And so we are -- if you look at our retention for that business, it's down slightly from historical levels. So we always are in the range of 70% to 80% really in retention. And today, we're probably in the middle of that range. So there is a fair amount of new business that comes on. That business is under the guise of our new -- guidelines that have been in place for a bit where we're offering just $2.5 million of limit.

當然。因此，如果我們關注颶風方面的情況，正如我提到的，本季度我們的利率發生了 49% 的正變化。因此，如果你看看我們對該業務的保留率，就會發現它比歷史水平略有下降。所以我們的保留率始終保持在 70% 到 80% 之間。今天，我們可能處於該範圍的中間。因此，出現了大量新業務。這項業務是在我們新的指導方針的幌子下進行的，該指導方針已經實施了一段時間，我們只提供 250 萬美元的限額。

We think the rate on that business is actually priced higher than our renewal business by just a bit in terms of how we measure it. So we feel good about taking on that new business. So in terms of overall growth, a lot of it is rate. A little bit of -- is new business, but it's really replacing the renewals that we're losing.

我們認為，就我們衡量的方式而言，該業務的費率實際上比我們的續訂業務高出一點點。因此，我們對開展這項新業務感到滿意。因此，就整體增長而言，很大一部分是速度。一點點——是新業務，但它確實取代了我們正在失去的續訂業務。

So in terms of exposure, we're fairly flat from an exposed limits perspective. When you model the exposure, there are different changes based on the nuances of the model in terms of the occupancies or where the location is, specifically, the roof characteristics, et cetera. So it's hard to identify exactly what the growth is there. So those are kind of a lot of the moving parts within the changing property portfolio.

因此，就暴露而言，從暴露極限的角度來看，我們相當持平。當您對曝光進行建模時，根據模型在佔用或位置（特別是屋頂特徵等）方面的細微差別，會出現不同的變化。因此很難準確地確定增長的具體內容。因此，這些都是不斷變化的房地產投資組合中的許多變化因素。

Perfect. And you also commented on quake. Can you provide some perspective on that, too?

完美的。您還對地震發表了評論。您也能對此提供一些看法嗎？

Sure. So while all the spotlight seems to be on hurricane these days, the quake market is actually changing as well, and that's really driven by capacity. The MGAs in that space are subject to the same situation that they -- they're feeling on the hurricane side, where the renewals aren't quite as easy as they were with their supporters. And so there are some reduced limits available by the MGAs, and carriers are also managing the limits that they're providing in both of the catastrophe areas.

當然。因此，雖然現在所有的焦點似乎都集中在颶風上，但地震市場實際上也在發生變化，而這實際上是由容量驅動的。那個領域的 MGA 也面臨著同樣的情況——他們感覺自己站在颶風一邊，續約並不像他們與支持者那樣容易。因此，MGA 提供了一些減少的限制，並且運營商也在管理他們在兩個災難區域提供的限制。

So we're seeing more of the risks that we look at be more layered where there's more carriers needed to fill out the tower of the insurance coverage, and that provides a little bit more opportunity. We're managing our limits as well, and we're getting good rate on that business. Again, new business price a little bit higher than our renewal book. So I think that's a fairly attractive market at this point as well.

因此，我們看到更多的風險更加分層，需要更多的承運人來填寫保險範圍，這提供了更多的機會。我們也在管理我們的限制，並且我們在該業務上獲得了良好的利率。同樣，新業務的價格比我們的續訂書高一點。所以我認為目前這也是一個相當有吸引力的市場。

Great. I have some other questions that I can take offline. I guess from a big picture perspective, you talked about the energy and your discipline around energy. I'm just curious, when you make a decision to withdraw a market, what happens to your energy underwriting team? Do you -- do they -- are they on standby waiting for market conditions to change? Or how do you manage that? Because I recognize you have a long-term orientation.

偉大的。我還有一些其他問題可以離線解答。我想從大局的角度來看，您談到了能量以及圍繞能量的紀律。我只是好奇，當你決定退出市場時，你的能源承保團隊會發生什麼？你——他們——他們是否在等待市場狀況的變化？或者你如何處理？因為我認識到你有一個長期的目標。

This is Craig. So it really depends on the product. It depends how versatile the people are that we have. Obviously, we tend to hire specialists in each area. So I would say it is a little different when we decided to end participation in the marketplace versus when we've decided to like shrink. When we decide to shrink in a long-time business, we typically redeploy our underwriters to do other things as well as claim people that can work on other products or work on initiatives for long-term growth when the market comes back. But when we do decide to end the market -- our participation in the market, I mean those underwriters tend to find other opportunities outside the organization.

這是克雷格。所以這實際上取決於產品。這取決於我們擁有的人才的多才多藝。顯然，我們傾向於聘請各個領域的專家。所以我想說，當我們決定結束參與市場和我們決定喜歡收縮時，情況有些不同。當我們決定收縮長期業務時，我們通常會重新部署我們的承銷商去做其他事情，並要求可以從事其他產品或在市場恢復時致力於長期增長計劃的人員。但當我們確實決定結束市場時——我們參與市場時，我的意思是那些承銷商往往會在組織之外尋找其他機會。

We have our next question. It comes from Meyer Shields from Stifel.

我們有下一個問題。它來自 Stifel 的 Meyer Shields。

Great. One numbers question, Todd. I apologize, but I just couldn't make out your comments. You said that, if I heard correctly, $17 million of the $18 million cat losses in the quarter were in property.

偉大的。托德，一個數字問題。我很抱歉，但我無法聽清您的評論。您說過，如果我沒聽錯的話，本季度 1800 萬美元巨災損失中有 1700 萬美元是財產損失。

Yes. Yes.

是的。是的。

Okay. And did you break out the -- okay, go ahead.

好的。你有沒有打破——好吧，繼續吧。

And some of the package side. The other $1 million on the casualty side is some of that package business that we got with us a bit of both. So some of the GBA, General Binding (inaudible) really what's that impact.

還有一些包邊。傷亡方面的另外 100 萬美元是我們兩者兼而有之的包裹業務的一部分。所以一些 GBA、通用綁定（聽不清）確實有什麼影響。

Okay. Perfect. I understand. Did you break out that -- the $3 million for prior period, that adjustment as well?

好的。完美的。我明白。您是否透露了上一期的 300 萬美元以及調整情況？

Yes, that was a little bit different, if you will. I mean that was $2 million reduction to the casualty segment and a $1 million reduction to the property segment. But some of that may -- we're estimating what the cat impact is in a given quarter and making some decisions. We're having to make some decisions with the information we have between segments. And in the instance, [it's just] that was taken on in prior years was also General Binding largely related in that casualty segment.

是的，如果你願意的話，那有點不同。我的意思是，傷亡部分減少了 200 萬美元，財產部分減少了 100 萬美元。但其中一些可能——我們正在估計貓在給定季度的影響並做出一些決定。我們必須利用我們在各個細分市場之間掌握的信息做出一些決策。在這種情況下，前幾年採取的[只是]也與傷亡部分的一般約束力很大程度上相關。

Okay. That's very helpful. I'm sorry I missed it the first time. Bigger picture question, I guess, maybe for Jen. Yes, so Jen, you talked about being more cautious on underwriting surety because of economic uncertainty. Are you seeing signs of economic uncertainty in terms of how your insurance are acting, whether it's exposure units or growth plans or anything like that?

好的。這非常有幫助。抱歉我第一次錯過了。我想，也許對於 Jen 來說，是更大的問題。是的，Jen，您談到由於經濟不確定性而對承保擔保更加謹慎。您是否在保險的運作方式方面看到了經濟不確定性的跡象，無論是風險單位還是增長計劃或類似的東西？

Did you say surety specifically or more broadly?

你說的保證是具體的還是更廣泛的？

No. So the question was more broadly because you commented specifically on underwriting caution in surety.

不。所以這個問題更廣泛，因為您明確評論了承保謹慎性。

Yes. So if you think about our portfolio, we've got a fair amount of business in the construction space as an example. So -- and it's a very diverse participation in that space. And so you look at public construction projects, for example, that's a fairly healthy space. So surety is pretty healthy in that area. There's plenty of business there.

是的。因此，如果您考慮一下我們的產品組合，就會發現我們在建築領域擁有大量業務。所以——這個領域的參與非常多樣化。例如，你看看公共建築項目，這是一個相當健康的空間。所以保證在這個領域是相當健康的。那裡生意很多。

If you look at private construction, that's a little bit slower. And so our admitted and our nonadmitted businesses see a little bit of a reduction in revenue there but not substantially. It's just flat to down slightly. And so people are, I think, participating pretty responsibly there. Our architects' revenue is up a little bit. So we're seeing kind of a fairly stable environment actually. The news would indicate maybe there's a sign of a recession coming, and we keep asking plenty of people every day, are you seeing this in the data, and we really aren't [at this buy]. I mean it's not like it's growing tremendously, but it seems fairly stable at this point in time. I don't know if that answered your question.

如果你看看私人建築，就會發現速度要慢一些。因此，我們承認和未承認的企業的收入有所減少，但幅度不大。它只是平坦到稍微向下。所以我認為人們非常負責任地參與其中。我們建築師的收入增加了一點。所以我們實際上看到了一個相當穩定的環境。該消息表明經濟衰退的跡象可能即將到來，我們每天都會問很多人，您是否在數據中看到了這一點，而我們確實沒有[買入]。我的意思是它並沒有大幅增長，但目前看起來相當穩定。我不知道這是否回答了你的問題。

It does. It's exactly what I was looking for.

確實如此。這正是我一直在尋找的。

We have our next question. It comes from Scott Heleniak from RBC.

我們有下一個問題。它來自 RBC 的 Scott Heleniak。

First question was just umbrella. It sounds like you -- it sounds like business is doing well there. You're seeing some opportunity, others are pulling back. And it's been well documented, others have had trouble with that line, so -- over the past year. I wonder if you could just give an update there. I know you mentioned some comments, but some additional color on why RLI is doing so much better than others on that and have been over the past year? Is it rate risk selection, terms and conditions? Just curious if you can touch on why you're able to do that so much better than the competition, it seems like.

第一個問題只是雨傘。聽起來像你——聽起來那裡的生意做得很好。你看到了一些機會，但其他人卻在撤退。它有很好的記錄，其他人在這條線上遇到了麻煩，所以——在過去的一年裡。我想知道你是否可以在那裡提供更新信息。我知道您提到了一些評論，但還有一些補充說明為什麼 RLI 在這方面比其他人做得更好，並且在過去的一年裡一直如此？是利率風險選擇、條款和條件嗎？只是好奇你是否能談談為什麼你能比競爭對手做得更好。

Are you interested in the personal space or the commercial space?

您對個人空間或商業空間感興趣嗎？

Either one or both.

要么其中之一，要么兩者兼而有之。

Okay. Well, there are 2 -- yes. They're acting in 2 different ways, I would say. So in personal lines, we are a stand-alone for some umbrella operation, which means we don't require the underlying homeowners. In fact, we don't really want the underlying homeowners or auto coverages, whereas most people who participate in personal umbrella require both coverages to be in place as well.

好的。嗯，有 2 個——是的。我想說，他們以兩種不同的方式行事。因此，在個人方面，我們是一些傘式運營的獨立機構，這意味著我們不需要底層房主。事實上，我們並不真正想要潛在的房主或汽車保險，而大多數參與個人保護傘的人也要求這兩種保險都到位。

So as you see different companies pulling out of different states for either auto or homeowners or both, that just creates a larger market opportunity in general for a stand-alone product. So then it's a matter of how do we approach that market to make sure that we're doing it in the right way to be helpful but yet profitable as well.

因此，當你看到不同的公司從不同的州撤出汽車或房主或兩者時，這通常會為獨立產品創造更大的市場機會。因此，問題是我們如何進入這個市場，以確保我們以正確的方式做事，既能提供幫助，又能盈利。

So we have an underwriting box that's been in place for quite a while. We tweak it a little bit over time based on claims. We have a pretty robust feedback loop between people who are marketing that product to the underwriters to the claim staff to the actuaries to all, participate in a lot of reporting and discussions around trends and things that they're hearing out in the market and claim outcomes. So all of that happens on a very regular basis.

所以我們有一個承保箱已經存在很長一段時間了。隨著時間的推移，我們會根據聲明進行一些調整。我們在向承銷商推銷產品的人員、索賠人員、精算師以及所有人之間建立了一個相當強大的反饋循環，參與大量有關趨勢和他們在市場上聽到的事情和索賠的報告和討論結果。所以所有這些都會定期發生。

We have dedicated claims staff too that are focused on our personal umbrella claims. So they're used to participating on an excess basis and working with our underlying carriers to get access to the information we need to determine if we're going to be affected by the claim and how we need to approach our participation in that process. So I think it's a matter of focus, kind of that narrow and deep underwriting as well as claim handling that we do across the board that we apply to the personal umbrella space that has allowed us to be in this business for over 30 years as well, and to do it pretty profitably.

我們也有專門的理賠人員，專注於我們的個人保護傘理賠。因此，他們習慣於超額參與，並與我們的底層運營商合作，獲取我們需要的信息，以確定我們是否會受到索賠的影響，以及我們需要如何參與該過程。因此，我認為這是一個重點問題，即我們在個人保護傘空間中全面開展的狹窄而深入的承保和索賠處理，這使我們能夠從事這項業務超過 30 年。 ，並且做得相當有利可圖。

Having said that, there are stories of other carriers who have trouble. And so we're very close to the growth in terms of monitoring it and having discussions very regularly to make sure that we're on top of anything that we see coming down the pipeline.

話雖如此，還有其他運營商遇到麻煩的故事。因此，我們在監控和定期討論方面非常接近增長，以確保我們掌握我們所看到的任何進展。

On the excess space, it's a little different story. The excess space, I don't understand why. It seems to be a lot more -- or the commercial space, I should say, is a lot more competitive. And I think the barrier to entry is lower in the commercial space, so people can get in and get started writing business. But everyone's talking about social inflation and severity. And yet new carriers come in, they don't do very well, and so they get out, and we try to be consistent and just navigate that market as people are going in and out with a fairly consistent appetite approach. So in that market, we also apply the feedback loop between underwriting, claims and actuarial support to understand what's going on with dedicated claims staff. And so it's the same playbook, just applied to a different space, but that market seems to be a lot more competitive than on the personal line side.

在多餘的空間上，情況有些不同。多餘的空間，我不明白為什麼。似乎要多得多——或者我應該說，商業領域的競爭要激烈得多。我認為商業領域的進入門檻較低，因此人們可以進入並開始撰寫業務。但每個人都在談論社會通貨膨脹及其嚴重程度。然而，新的運營商進來了，他們做得不太好，所以他們退出了，我們努力保持一致，在人們以相當一致的胃口方式進出的時候引導這個市場。因此，在該市場中，我們還應用承保、索賠和精算支持之間的反饋循環，以了解專門的索賠人員的情況。因此，這是相同的策略，只是應用於不同的領域，但該市場似乎比個人線路方面更具競爭力。

Okay. It sounds like the opportunity is a little more on the personal line side for you guys than compared to commercial at this point. But the -- yes, just moving on next to just retention. You guys saw higher retention this year than net to gross. And you mentioned you purchased $150 million of additional cat limit. Could you just give some updated thoughts on your reinsurance strategy there and thoughts and how you expect to manage that part of the business with reinsurance pricing higher, particularly as we go into 2024 and how you're thinking about that?

好的。聽起來，目前對於你們來說，個人線路方面的機會比商業方面的機會更多一些。但是——是的，只是繼續保留。你們今年看到的留存率比淨留存率和總留存率還要高。您提到您購買了 1.5 億美元的額外貓限額。您能否就您的再保險策略提供一些最新的想法和想法，以及您期望如何在再保險定價更高的情況下管理這部分業務，特別是在我們進入 2024 年時，您對此有何看法？

Sure. So if you look at our strategy, we've been pretty committed to the traditional reinsurance space. So they've had some long-term partnerships since really the late '70s in reinsurance. And so we do tend to favor that approach. As we have grown, we continue to monitor. We have a number of tolerances, both nonmodeled just policy limits in the region as well as modeled metrics that we monitor on a monthly basis. And we want to say relative to our surplus growth, we want to stay in a reasonable range there. And so it's important for us as an E&S business to take advantage of market opportunities, and that's exactly what we've done. But there's also a limit to what we can do relative to the size of our company. And so that's why we've continued to buy reinsurance.

當然。因此，如果你看看我們的策略，就會發現我們一直非常致力於傳統的再保險領域。因此，自 70 年代末以來，他們在再保險領域就建立了一些長期合作夥伴關係。所以我們確實傾向於支持這種方法。隨著我們的成長，我們會繼續監控。我們有很多容忍度，包括該地區非建模的政策限制以及我們每月監控的建模指標。我們想說的是，相對於我們的盈餘增長，我們希望保持在合理的範圍內。因此，作為一家 E&S 企業，利用市場機會對於我們來說非常重要，而這正是我們所做的。但相對於我們公司的規模，我們能做的事情也是有限的。這就是我們繼續購買再保險的原因。

I think that the market opportunity at some point will slow down. I think the second half of the year, we may see the early signs of that, given this has been going on for a while. If you think about the second half of last year, we're already taking pretty good rate increases. We were already managing limits. We were already paying attention to deductibles and all those things. And so if you look at the change that we would expect for the second half, it's on top of already a lot of actions that were taken. So this opportunity will slow down at some point. It's hard to say when. I think as we approach 1/1, we'll look at where that sits. It's very hard to talk about it now because we're in the middle of hurricane season, where not a lot happens.

我認為市場機會在某個時候會放緩。我認為，考慮到這種情況已經持續了一段時間，我們可能會在今年下半年看到這種情況的早期跡象。如果你想想去年下半年，我們已經採取了相當不錯的加息措施。我們已經在管理限制了。我們已經在關注免賠額和所有這些事情。因此，如果你看看我們預計下半年會發生的變化，你會發現這是在已經採取的許多行動之上的。所以這個機會在某個時候會放緩。很難說是什麼時候。我認為當我們接近 1/1 時，我們會看看它在哪裡。現在很難談論它，因為我們正處於颶風季節中期，發生的事情並不多。

Once you're in the season, you don't have a lot of new markets entering mid-season. You do have some people who fill up their buckets of exposure, and so you see a little bit of change in appetite but not much. So we really have to wait and see how the season plays out and kind of where we're at in the fourth quarter to determine what that opportunity looks like for next year. So that's kind of the thought process we go through.

一旦進入季節，就不會有很多新市場進入季節中期。確實有一些人充滿了暴露的桶，所以你會看到食慾有一點變化，但變化不大。因此，我們真的必須等待，看看這個賽​​季的進展情況以及我們在第四季度的情況，以確定明年的機會是什麼樣的。這就是我們經歷的思考過程。

Okay. That's helpful. And the $150 million in cat limit, did you give any additional detail? If you did, I didn't catch it on. Is that -- is there a specific region that's for? Is that just a national program? Or is that hurricane exposure, the additional cat limit that you bought?

好的。這很有幫助。還有 1.5 億美元的巨災限額，您是否提供了更多細節？如果你這樣做了，我沒有抓住它。是不是有一個特定的區域？這只是國家計劃嗎？或者是颶風暴露，您購買的額外貓限制？

It's for all payrolls, yes.

是的，它適用於所有工資單。

All payrolls, okay.

工資全都發好了

Yes, that's for all payrolls. So it just goes to an additional layer on top of all of our coverages that we purchased previously.

是的，這適用於所有工資單。因此，它只是在我們之前購買的所有保險之上增加了一層。

(Operator Instructions) We have no further questions on the line. I will now turn the conference back to Mr. Craig Kliethermes for some closing remarks.

（操作員說明）我們沒有進一步的問題。現在，我將請 Craig Kliethermes 先生髮表閉幕詞。

Thank you, everyone, for joining today. The results we report today are more a reflection of the body of work put in over the last decade than the last quarter. Some ask how we have been able to deliver the consistent results each year. It isn't magic, but it also isn't easy. We have very talented individuals with deep expertise who share our values. We make them owners through shared rewards in an ESOP, and we immerse them in a culture that reinforces all that is good in them. Then we let them build and continuously improve our business to best serve our customer.

謝謝大家今天的加入。我們今天報告的結果更多地反映了過去十年而不是上個季度所做的工作。有人問我們如何能夠每年提供一致的結果。這不是魔法，但也並不容易。我們擁有擁有深厚專業知識的才華橫溢的個人，他們與我們有著共同的價值觀。我們通過員工持股計劃的共享獎勵讓他們成為所有者，並讓他們沉浸在一種能夠強化他們身上所有優點的文化中。然後我們讓他們建立並不斷改進我們的業務，以最好地服務我們的客戶。

The market we currently face includes a shortage of natural catastrophe capacity, an active plaintiff bar, loss cost inflation and uneven economic growth. Among these challenges and disruption lies opportunity. We will continue to adapt to these market forces as well as others that emerge and continue to serve the best interest of our customers and shareholders as we have for nearly 60 years. I'm proud of our associate owners efforts and the unique culture of ownership and shared success we have maintained. I have one more favor to ask them, keep being different because it works. Look forward to talking with you all next quarter.

我們目前面臨的市場包括自然災害應對能力不足、原告律師資格不足、損失成本膨脹和經濟增長不平衡等。在這些挑戰和顛覆中蘊藏著機遇。我們將繼續適應這些市場力量以及其他出現的力量，並繼續為我們的客戶和股東的最大利益服務，就像我們近 60 年來所做的那樣。我為我們的合夥人所做的努力以及我們所保持的獨特的主人翁文化和共同成功感到自豪。我還想請他們幫個忙，保持與眾不同，因為這樣行得通。期待下個季度與大家交談。

Thank you. Ladies and gentlemen, if you wish the access the replay for this call, you may do so by dialing 1 (866) 813-9403 with an ID number of 292170. This concludes our conference for today. Thank you all for participating, and have a nice day. All parties may now disconnect.

謝謝。女士們、先生們，如果您希望收聽本次電話會議的重播，您可以撥打 1 (866) 813-9403，ID 號碼為 292170。我們今天的會議到此結束。感謝大家的參與，祝您有美好的一天。所有各方現在都可以斷開連接。