RLI Corp (RLI) 2024 Q1 法說會逐字稿

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

早安，歡迎參加 RLI 公司第一季財報電話會議。在管理階層準備好發言後，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 make comments that reflect their intentions, beliefs or 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 the Form 10-K as supplemented in the Form 10-Q, all of which should be reviewed carefully.

在我們開始之前，讓我提醒大家，透過電話會議的過程，RLI 管理層可能會發表反映他們對未來的意圖、信念或期望的評論。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，可能導致實際結果有重大差異。請參閱公司向 SEC 提交的各種文件中所述的風險因素，包括在 10-K 表格中補充的 10-Q 表格年度報告中所述的風險因素，所有這些都應仔細審查。

The company has filed a Form 8-K with the Securities and Exchange Commission that contains the press release announcing third quarter results. During the call, RLI management may refer to operating earnings and earnings per share for operations, which are non-GAAP measures of financial results. RLI's operating earnings and earnings per share from operations consist of net earnings after the elimination of after-tax realized gains or losses and after-tax unrealized gains or losses on equity securities.

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業績的新聞稿。在電話會議期間，RLI 管理層可能會參考營業收益和每股收益，這些都是非 GAAP 財務績效指標。 RLI 的營業利潤和每股營業利潤包括扣除股本證券稅後已實現損益和稅後未實現損益後的淨利。

RLI management believes these measures are useful engaging core operating performance across reporting periods but may not be comparable to other companies' definitions or 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. I will now turn this conference to RLI's Chief Investment Officer and Treasurer, Mr. Aaron Diefenthaler. Please go ahead.

RLI 管理層認為，這些指標對於衡量報告期間的核心營運績效非常有用，但可能無法與其他公司的定義或營運效益進行比較。 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 上取得。我現在請 RLI 首席投資長兼財務主管 Aaron Diefenthaler 先生出席本次會議。請繼續。

Thank you, Candice. Good morning, everyone. Thanks for joining RLI's earnings call covering the first quarter of 2024. We have the usual team assembled, including Craig Kliethermes, President and CEO; Jen Klobnak, Chief Operating Officer; Todd Bryant, Chief Financial Officer. We will follow the same cadence as in prior quarters where Craig will kick things off with some initial thoughts. Todd will run down the financial results for the quarter and Jen will offer some commentary on market conditions and our product portfolio. The operator will then open the line for questions, and Craig will close. Craig?

謝謝你，坎迪斯。大家，早安。感謝您參加 RLI 2024 年第一季的財報電話會議。 Jen Klobnak，營運長；托德·布萊恩特，財務長。我們將遵循與前幾季相同的節奏，克雷格將首先提出一些初步想法。托德（Todd）將總結本季的財務業績，珍（Jen）將對市場狀況和我們的產品組合發表一些評論。然後接線員將打開提問熱線，克雷格將關閉熱線。克雷格？

Well, thank you, Aaron. And good morning, everyone. We're off to a solid start for 2024 with double-digit growth and underwriting profitability across all of our reporting segments. As Todd and Jen will go into in a minute, we continue to lean into opportunities where we have the expertise and track record to differentiate ourselves. We remain cautious where the risks are more dynamic, difficult to quantify or where we choose to temper the volatility to the bottom line.

好吧，謝謝你，亞倫。大家早安。我們在 2024 年有了一個良好的開端，所有報告部門都實現了兩位數的成長和承保獲利能力。正如托德和珍稍後將談到的那樣，我們將繼續抓住擁有專業知識和業績記錄的機會，使自己脫穎而出。當風險更具動態性、難以量化或我們選擇將波動性控制在底線時，我們保持謹慎。

I will let Todd and Jen go into more detail on the financials and the market in general. Todd, it's all yours.

我將讓托德和珍更詳細地介紹財務狀況和整個市場。托德，這一切都是你的了。

Thanks, Craig. Good morning, everyone. Yesterday, we reported first quarter operating earnings of $1.89 per share, aided by strong underwriting performance and continued growth in investment income. Overall, we posted a combined ratio of 78.5 for the quarter and grew top line 13%, with nearly all products contributing to growth. Investment income advanced 21% in the period as book yield and our invested asset base continued to grow.

謝謝，克雷格。大家，早安。昨天，我們報告第一季營運收益為每股 1.89 美元，這得益於強勁的承保業績和投資收入的持續成長。總體而言，我們本季的綜合成本率為 78.5，營收成長了 13%，幾乎所有產品都對成長做出了貢獻。由於帳面收益率和我們的投資資產基礎持續增長，投資收益在此期間增長了 21%。

Operating cash flow remains supportive at $70 million for the quarter. Net earnings per share were $2.77 for the quarter, favorably impacted by realized and unrealized gains recorded on the investment portfolio. Realized gains totaled $6 million, while unrealized gains on the equity portfolio totaled $45 million. Fluctuating levels of unrealized gains and losses on the equity portfolio impact the comparison of net earnings between periods, as mentioned on prior calls.

本季營運現金流仍維持在 7,000 萬美元的水平。本季每股淨利潤為 2.77 美元，受到投資組合中已實現和未實現收益的有利影響。已實現收益總計 600 萬美元，而股票投資組合的未實現收益總計 4,500 萬美元。如同先前的電話會議中所提到的，股票投資組合未實現收益和損失的波動水準會影響不同時期淨利的比較。

From an underwriting income perspective, the quarter's 78.5 combined ratio compares to 77.9 reported last year. Our loss ratio was up 2.7 points to 39.9 as storm losses were higher and although favorable development on prior years was positive, the overall reserve release was down on a comparative basis to first quarter last year. Storm losses totaled $12 million in the quarter and were almost entirely contained within the property segment. Storm losses added 9 points to the property segment's loss ratio versus 4 points last year. Attritional losses in this segment remained very low and were spread across a much higher revenue base.

從承保收入的角度來看，本季的綜合成本率為 78.5，而去年報告的綜合成本率為 77.9。由於風暴損失較高，我們的損失率上升了 2.7 個百分點，達到 39.9，儘管往年的有利發展是積極的，但總體準備金釋放量與去年第一季相比有所下降。本季風暴損失總計 1,200 萬美元，幾乎全部包含在房地產領域。風暴損失使房地產部門的損失率增加了 9 個百分點，而去年為 4 個百分點。該細分市場的自然損耗仍然非常低，並且分佈在更高的收入基礎上。

From a prior year's reserves perspective, all 3 segments benefited from favorable development. Casualty posted $18 million of favorable loss emergence across a number of product lines and over multiple accident years. Notable products include general liability, professional liability and umbrella. Property experienced $19 million in favorable development as marine, E&S and admitted property lines posted loss reductions. We did not revise our estimate for Maui wildfire losses, which remain at $61 million net of reinsurance and inclusive of reinstatement premium. For surety, favorable reserve development was $5 million, modestly above last year's level, which explains the majority of the decrease in that segment's loss ratio.

從去年的儲備來看，這三個板塊均受益於良好的發展。 Casualty 在多個產品線和多個事故年份中實現了 1800 萬美元的有利損失。著名的產品包括一般責任、專業責任和保護傘。隨著海事、E&S 和承認的房地產業務損失減少，房地產經歷了 1,900 萬美元的有利發展。我們沒有修改對毛伊島野火損失的估計，扣除再保險並包括恢復保費後，損失仍為 6,100 萬美元。可以肯定的是，有利的儲備開發為 500 萬美元，略高於去年的水平，這解釋了該部門損失率下降的主要原因。

On the expense front compared to last year, our expense ratio decreased 2.1 points. This ratio is benefiting from our significant increase in revenue, most notably within the property segment. We continue to invest in people and technologies to support growth and enhance the customer experience. Bonus and retirement accruals were higher in the quarter, reflective of solid financial achievements and investment that we have been making in our associate owners over the last several years.

在費用方面，與去年相比，我們的費用率下降了2.1個百分點。這一比率得益於我們收入的大幅增長，尤其是在房地產領域。我們繼續投資於人員和技術，以支援成長並增強客戶體驗。本季的獎金和退休金應計額較高，反映了過去幾年我們對聯營所有者的穩健財務成就和投資。

From a segment perspective, there is 1 item to highlight. For surety, we recorded $2 million of reinsurance reinstatement premiums related to increased reserves on a prior period loss. These premiums are fully earned as recorded and result in lower net premiums earned from a trend perspective. These elevated ceded premiums earned adversely impact the expense ratio comparison. On an overall basis, the expense ratio impact is muted, but for surety, the result is a 5 point increase in the expense ratio for the current period. Turning to investments.

從細分角度來看，有 1 項需要加亮顯示。可以肯定的是，我們記錄了 200 萬美元的再保險恢復保費，這些保費與前期損失準備金的增加有關。這些保費已按記錄全額賺取，從趨勢角度來看，淨保費收入較低。這些增加的分出保費對費用率比較產生了不利影響。整體而言，費用率影響不大，但可以肯定的是，結果是當期費用率增加了 5 個百分點。轉向投資。

It was a quarter where equities were the largest contributor to our 1.8% total return. For us, bonds still managed a modestly positive result as yield overcame declines in bond prices. Our strategy around new purchase activity has remained unchanged with a focus on investment-grade fixed income. We are still finding solid opportunities to add high-quality positions that are accretive to booking. In the quarter, purchase yields averaged 4.9% and we are well positioned to take advantage of wider credit spreads or a new lower in equities should that transpire.

本季股票對我們 1.8% 的總回報率貢獻最大。對我們來說，由於收益率克服了債券價格的下跌，債券仍然取得了適度的正面成果。我們圍繞新購買活動的策略保持不變，並專注於投資等級固定收益。我們仍在尋找可靠的機會來增加可增加預訂的高品質職位。本季度，購買收益率平均為 4.9%，如果發生這種情況，我們可以充分利用信貸利差擴大或股市新一輪下跌的機會。

In regard to investee earnings, the contribution from prime was $4.8 million compared to $3.9 million in the same period last year. Although net earnings were up in the quarter, the recent decline in bond prices weighed on Q1 comprehensive earnings which came in at $2.50 per share. With that comprehensive yield, book value per share was up a respectable 8% to $33 when adjusting for dividends. All in all, a very good quarter and a strong start to the year. And with that, I'll turn the call over to Jen.

在被投資者收益方面，Prime 的貢獻為 480 萬美元，去年同期為 390 萬美元。儘管本季淨利潤有所增長，但最近債券價格的下跌對第一季的綜合收益造成了壓力，每股收益為 2.50 美元。考慮到這一綜合收益率，調整股息後，每股帳面價值增長了 8%，達到 33 美元。總而言之，這是一個非常好的季度，也是今年的好開始。然後，我會將電話轉給 Jen。

Thank you, Todd. I'll jump right in the segment results. Property premiums grew 14% in the quarter. E&S property once again drove the increase with 15% growth in premium and a 19% increase in rates. The rate increases over the last few years have made a positive impact to our bottom line as the premium earns through. During the first quarter, we continued to grow through rate, while our hurricane exposure has decreased a bit. Competition has resurfaced in the hurricane market. While rates were still up 25% in the quarter, the increases are slowing. Our competitors, particularly the MGA utilizing oil capacity have become more aggressive. They are increasing limit deployment, which reduces the number of carriers needed to participate on layer accounts and our more aggressively pricing business.

謝謝你，托德。我將直接跳到細分結果。本季房產保費成長 14%。 E&S 財產再次推動了這一增長，保費增長了 15%，費率增長了 19%。隨著保費收入的增加，過去幾年的費率上漲對我們的利潤產生了正面的影響。在第一季度，我們的成長率持續成長，而我們的颶風風險有所減少。颶風市場的競爭重新出現。儘管本季利率仍上漲 25%，但成長速度正在放緩。我們的競爭對手，特別是利用石油產能的 MGA 變得更加激進。他們正在增加限制部署，這減少了參與層帳戶和我們更積極的定價業務所需的營運商數量。

For our underwriters, new business is more difficult to win although we continue to achieve rates above our renewable book on those accounts that we buy in. with an elevated hurricane forecast, the market is tenuous and could easily restrict capacity or coverage of significant landfalling storms occur this season. We stand ready to assist our policyholders if that happens, and we'll continue to adapt to changing market conditions. All other property businesses are also growing.

對於我們的承銷商來說，儘管我們在購買的帳戶上繼續實現高於再生能源帳面的利率，但贏得新業務更加困難。風暴的容量或覆蓋範圍發生在這個季節。如果發生這種情況，我們隨時準備為我們的保單持有人提供幫助，並且我們將繼續適應不斷變化的市場條件。所有其他房地產業務也在成長。

Generally, submissions are up double digits. Our Hawaii homeowners book continues to grow due to our high level of service and due to several select competitors pulling back from the market. We remain focused on resolving claims from the Lahaina wildfire and have closed over 70% of reported claims as of the end of the first quarter. In Marine, we continue to push rate and achieved a 6% increase in the first quarter with premium growth largely attributed to inland marine, a freight recession and some underwriting adjustments created headwinds for our ocean marine business. We've been staying in front of all our property producers and continue to be very responsive. As a result, we've been rewarded profitable growth opportunities.

一般來說，提交的內容都會增加兩位數。由於我們的高水準服務以及一些精選競爭對手退出市場，我們的夏威夷房主數量持續成長。我們仍專注於解決拉海納山火的索賠，截至第一季末已結案超過 70%。在海運方面，我們繼續提高費率，第一季實現了 6% 的成長，保費成長主要歸因於內陸海運、貨運衰退和一些承保調整給我們的遠洋海運業務帶來了阻力。我們一直走在所有房地產生產商的前面，並繼續做出積極的回應。結果，我們獲得了獲利成長機會。

Surety gross written premium grew by 12% this quarter, although all areas of surety contributed, contract led the way. Overall growth is being driven by elevated construction material costs, growing our expertise in various commercial surety segments and investing in our people to ensure a high level of service. Surety remains highly competitive even though there have been increased industry losses in both commercial and contract surety. We are not seeing increased frequency. In fact, claim counts are flat. But we have seen a couple of larger claims during this market cycle.

本季度擔保總承保保費增長了 12%，儘管擔保的所有領域都做出了貢獻，但合約領先。建築材料成本上漲、我們在各個商業擔保領域的專業知識不斷增長以及對員工的投資以確保高水準的服務推動了整體成長。儘管商業和合約擔保方面的行業損失有所增加，但擔保仍然具有高度競爭力。我們沒有看到頻率增加。事實上，索賠數量持平。但我們在這個市場週期中看到了一些更大的索賠。

Todd mentioned that we adjusted 1 loss reserve that triggered reinsurance reinstatement premiums for the quarter. Despite this loss, our surety portfolio remains profitable and is well positioned. We have grown more slowly than the industry as we focused on underwriting and risk selections during this extended period of economic uncertainty. We have some momentum from investments we've made in underwriters, producer relationships and capabilities and anticipate further growth where it makes sense in this segment.

托德提到，我們調整了 1 筆損失準備金，觸發了本季的再保險恢復保費。儘管存在這種損失，我們的擔保投資組合仍然有利可圖，並且處於有利地位。在這段經濟不確定的時期，我們的成長速度比產業慢，因為我們專注於承保和風險選擇。我們在承銷商、生產商關係和能力方面的投資獲得了一些動力，並預計該領域將進一步成長。

In the casualty segment, premium grew 13%, while rates were up 7%. This was led by personal umbrella, which grew 33%, including a 13% rate increase. The personal lines primary market continues to be impacted by changes in underwriting appetite, which has increased the demand for our stand-alone for some umbrella products. We monitor our growth closely in terms of risk characteristics like geography, to ensure we maintain a balanced risk profile. We have also enhanced digital capabilities for our producers and insurers, resulting in new business and improving our retention ratio. These actions seem to be working. And we continue to experience a lot of momentum in this book.

在意外險領域，保費增加了 13%，而費率則上漲了 7%。其中個人雨傘領先，成長 33%，其中成長率為 13%。個人保險一級市場繼續受到承保偏好變化的影響，這增加了我們對某些傘式產品的獨立需求。我們根據地理等風險特徵密切監控我們的成長，以確保我們保持平衡的風險狀況。我們也增強了生產商和保險公司的數位化能力，從而帶來了新業務並提高了我們的保留率。這些行動似乎正在發揮作用。我們繼續在這本書中體驗到巨大的動力。

Transportation premium grew 27% with submissions up 8%. Some of the growth was explained by 1 large trucking account that renewed early this quarter. With the adverse loss development reported by the industry, we have observed some competitors introducing underwriting changes. This is causing accounts to [shut]. Existing customers appreciate our loss control service and claim expertise, which has resulted in a steady renewal retention ratio. Because risk selection is vital, we carefully choose which accounts to spend time on and are typically successful when we decide to issue a quote with elevated severity for this class in the industry, we know it's important to continue pushing roots.

運輸保費增加 27%，提交量增加 8%。部分成長歸因於本季初更新的 1 個大型貨運帳戶。隨著產業報告的不利損失發展，我們觀察到一些競爭對手引入了承保變化。這導致帳戶[關閉]。現有客戶讚賞我們的損失控制服務和索賠專業知識，這導致了穩定的續保保留率。由於風險選擇至關重要，因此我們會仔細選擇要花時間在哪些帳戶上，並且當我們決定對行業中此類產品進行更嚴格的報價時通常會成功，我們知道繼續紮根很重要。

We achieved a 9% rate increase for the quarter, a similar level to what we have obtained in each of the last several years. Premium grew 6% for our E&S casualty brokerage business. This includes primary and excess liability coverage with a concentration in the construction industry. Contractors are still experiencing issues with financing and the need to extend projects. This has created opportunities for us as we individually evaluate and carefully select risk.

本季我們實現了 9% 的成長率，與過去幾年的水平相似。我們的 E&S 傷亡經紀業務的保費增加了 6%。這包括主要和超額責任保險，主要集中在建築業。承包商仍然面臨融資問題和擴展項目的需要。這為我們創造了機會，因為我們單獨評估並仔細選擇風險。

Several carriers have reported adverse loss development for general liability and have referenced construction business. We have not seen this trend emerge in our own business but are aware that claims are taking more time to resolve. This data point, in addition to increased severity in the industry has resulted in an even more cautious approach in initial loss estimates and in our reserving analysis.

幾家承運人報告了一般責任的不利損失發展，並提到了建築業務。我們還沒有看到這種趨勢在我們自己的業務中出現，但我們意識到索賠需要更多的時間來解決。除了該行業日益嚴重的情況之外，該數據點還導致我們在初始損失估計和準備金分析中採取更謹慎的方法。

Some of our competitors are taking underwriting actions based on their results, but we continue to see less disciplined markets who are buying the business to meet top line goals. We have also encountered new carriers and MGAs in particular that are hoping to take advantage of the E&S market momentum. We have served the construction market with liability coverages for decades, and we'll continue to adjust to these changing market conditions as leaders and remain disciplined in our efforts. One area of our product portfolio that continues to feel market pressure is our executive products group, which includes our directors and offices business.

我們的一些競爭對手正在根據他們的結果採取承保行動，但我們仍然看到紀律不那麼嚴格的市場正在購買業務以實現營收目標。我們也遇到了新的營運商，特別是希望利用 E&S 市場勢頭的 MGA。幾十年來，我們一直為建築市場提供責任保險，我們將作為領導者繼續適應這些不斷變化的市場條件，並在我們的努力中保持紀律。我們的產品組合中持續感受到市場壓力的一個領域是我們的執行產品組，其中包括我們的董事和辦公室業務。

Premium declined by 8% with rate decreases becoming more moderate at negative 3%. The rate decreases are concentrated in public company professional liability coverages, which represents about 1/3 of our book. This quarter was marked by consistent growth across all 3 segments. We capitalized on several new business opportunities due to our strong relationships, which we continue to invest in and enjoy productive in-person visits with many of our peers and partners during the quarter. We obtained rate increases on almost all of our coverages. Considering claim counts increased at a much slower pace than premium, loss activities were manageable.

保費下降了 8%，利率下降幅度更為溫和，為負 3%。費率下降主要集中在上市公司專業責任險，約占我們帳簿的 1/3。本季所有三個細分市場均實現持續成長。由於我們牢固的關係，我們利用了一些新的商機，我們在本季度繼續投資於這些關係，並與許多同行和合作夥伴進行了富有成效的面對面訪問。我們幾乎所有的保險都獲得了費率上調。考慮到索賠數量的增長速度遠慢於保費的增長速度，損失活動是可控的。

Developing and connecting our people has resulted in new partnerships and opportunities to support our sustainable business model. Although competition remains persistent in a number of the markets we participate in, we started the year with strong momentum and see opportunities for continued profitable growth in all 3 of our product segments.

發展和聯繫我們的員工帶來了新的合作夥伴關係和機會來支持我們的永續商業模式。儘管我們參與的許多市場的競爭仍然持續存在，但我們以強勁的勢頭開始了今年，並在我們的所有 3 個產品領域看到了持續盈利增長的機會。

Now I'll turn the call back over to the moderator to open it up for questions. Thank you.

現在我將把電話轉回主持人以供提問。謝謝。

(Operator Instructions) Our first question comes from the line of Gregory Peters of Raymond James.

（操作員說明）我們的第一個問題來自 Raymond James 的 Gregory Peters。

I wanted to focus one of the questions on the casualty top line result, where I know you provided some detail. Curious about the personal umbrella piece because that seems to be growing quite nicely. Can you give us a sense of what loss frequency and severity looks like for that business considering the growth that you're generating?

我想將其中一個問題集中在傷亡結果上，我知道您提供了一些細節。對個人雨傘感到好奇，因為它似乎長得很好。考慮到您所產生的成長，您能否讓我們了解該業務的損失頻率和嚴重程度？

Sure. Thank you, Greg. First umbrella has been growing just a little bit of background. As you read in the news all the time, there are primary carriers that are making changes in different regions of the country. And when they do that, they stop covering some of underlying coverages, which opens it up for a stand-alone product to enter. So we've been solving that need for our producers and our insurers for several years now with a notable growth. More recently, we were able to receive a couple of approvals for some increases that are approved by the states. And so that has bumped up our rate change in the last couple of quarters, and we continue to make sure that we have adequate rate. When you look at the loss trend, the loss frequency has actually remained fairly stable in that book of business.

當然。謝謝你，格雷格。第一把傘已經成長了一點背景。正如您一直在新聞中看到的那樣，該國不同地區的主要運營商正在做出改變。當他們這樣做時，他們就停止覆蓋一些潛在的覆蓋範圍，這為獨立產品的進入打開了大門。因此，我們多年來一直在解決生產商和保險公司的這種需求，並且取得了顯著的成長。最近，我們獲得了各州批准的一些增加的批准。因此，這增加了我們過去幾季的利率變化，我們將繼續確保我們有足夠的利率。當你觀察損失趨勢時，該業務中的損失頻率實際上保持相當穩定。

We are launching severity trends. When we do our analysis, we use loss trend assumptions that tend to affect industry results. But we have found in our own data that our results tend to be a bit below what the loss trends are in the industry which we find very attractive. However, we're going to be prudent in our analysis of what we're doing and our rate needs. And so we use generally industry loss trends. So for us, we're monitoring the growth whenever there's growth, we pay attention to that new business because you don't know it as well. So we are slightly [raising] that book in every which way you can imagine. We continuing to do a rate need analysis by state to make sure that we are up-to-date on what we need to cover our exposure. And so that's kind of what the trend has been. And we think that with the continued changes in the market, we will continue to see some growth in that area.

我們正在推出嚴重性趨勢。當我們進行分析時，我們使用往往會影響產業績效的損失趨勢假設。但我們在自己的數據中發現，我們的結果往往略低於我們認為非常有吸引力的行業的損失趨勢。然而，我們將謹慎分析我們正在做的事情和我們的費率需求。因此，我們通常使用行業損失趨勢。因此，對我們來說，只要有成長，我們就會監控成長，我們會專注在新業務，因為你也不知道它。因此，我們正在以您能想像到的各種方式稍微[提高]這本書。我們繼續按州進行費率需求分析，以確保我們了解涵蓋我們風險敞口所需的最新資訊。這就是趨勢。我們認為，隨著市場的持續變化，我們將繼續看到該領域的一些成長。

I wanted to pivot to the expense ratio piece. It didn't seem to move much with casualty, but there was some movement in the quarter in property. Is there anything worth revisiting in the Q&A portion of this call to talk to us about trends in the expense ratio?

我想轉向費用比率部分。傷亡人數似乎沒有太大變化，但本季房地產出現了一些變化。在本次電話會議的問答部分中，有什麼值得我們重新檢視費用比率趨勢的內容嗎？

Greg, it's Todd. I don't think there necessarily is, particularly with respect to property. I mean there is benefit there from a volume perspective, certainly, and the growth we're seeing in revenue and you really notice that in the property expense ratio. We did -- I did talk a bit about on an overall basis and increase in some of the incentive-related amounts that will affect all 3 segments. But I don't think there's anything of note really trend wise in that property segment outside of benefiting quite a bit from the increase in revenue.

格雷格，這是托德。我認為不一定存在，特別是在財產方面。我的意思是，從數量的角度來看，這確實是有好處的，而且我們在收入方面看到了增長，而且您確實注意到了物業費用率。我們確實——我確實在整體基礎上談到了一些與激勵相關的金額的增加，這將影響所有三個部分。但我認為，除了從收入增加中受益匪淺之外，該房地產領域沒有任何真正值得注意的趨勢。

Okay. I guess the last question I'll have is just I know some pieces of your reinsurance came up for renewal on April 1, you had another piece on June. Just give us an updated perspective of how retentions look for this year and how your reinsurance costs are shaping up?

好的。我想我要問的最後一個問題是，我知道您的再保險的部分在 4 月 1 日進行了續保，您在 6 月還有另一部分。請給我們提供有關今年保留情況以及您的再保險成本如何變化的最新觀點？

Sure, Greg. This is Jen. We did have a couple of renewals on April 1. I would say overall, the reinsurance market is becoming a little more palatable expectations on the managed reinsurers are relaxing just a bit. So we are able to navigate the market a little better than, let's say, January 1 of '23, for example, which is nice to see. I think the market is differentiating a bit by coverage. So where there have been losses, they're pushing. And it also depends on what our results have been. So some of our renewals, we are able to differentiate and maybe get a better result. And we balance that with kind of pressure from industry results as well. For April 1, we did have a surety renewal. The surety reinsurance market have become fairly hard, I know that started at least in January 1, but probably before that to some extent.

當然，格雷格。這是珍。我們確實在 4 月 1 日進行了幾次續保。因此，我們能夠比 2023 年 1 月 1 日更好地駕馭市場，這是很高興看到的。我認為市場的覆蓋範圍有所不同。因此，在出現損失的地方，他們就會採取行動。這也取決於我們的結果。因此，我們的一些續約，我們能夠脫穎而出，也許會得到更好的結果。我們也會平衡這一點與產業績效的壓力。 4 月 1 日，我們確實更新了保證金。我知道，擔保再保險市場已經變得相當困難，至少從 1 月 1 日開始，但可能在某種程度上更早於 1 月 1 日。

Again, I referenced some industry loss activity there, and so that is pressuring reinsurance placements. We actually increased our retention on surety which we had been thinking about for quite some time, but in this case, the economics made sense to increase it. And so we did that and now paying a bit more. And so that renewal has come through successfully. We also placed a professional liability tree that was almost a nonevent, which was good to see. We've had good results on that book as well. And then we have a few in the hopper that we're working on now. So we have a marine renewal, we have D&O treaty and we have our earthquake focused treaty that we're working on now. And we're in the process. So we'll see how that goes. But generally speaking, I find the reinsurance market to be more reasonable.

我再次提到了那裡的一些行業損失活動，因此這給再保險投放帶來了壓力。實際上，我們增加了對保證的保留，我們已經考慮了很長一段時間了，但在這種情況下，增加它的經濟學是有意義的。所以我們就這樣做了，現在付了更多的錢。因此，更新已經成功完成。我們還放置了一個職業責任樹，這幾乎是一件小事，這很高興看到。我們在那本書上也取得了很好的成果。然後我們現在正在研究漏斗中的某些內容。因此，我們有海洋更新、D&O 條約以及我們現在正在製定的以地震為重點的條約。我們正在這個過程中。所以我們會看看情況如何。但總的來說，我覺得再保險市場比較合理。

I think the cost, when you think about the cost for the year, you'll notice, for example, that the property retention of premiums for the first quarter of '24 was lower than that in '23. The big driver there was that June 1 of 2024 -- 2023, excuse me, repurchased an additional $150 million layer of CAT limit on top of our tree. And so that was reflected on the expected this quarter, but it wasn't in existence last first quarter. We also filled out a little bit more of our $58 million ex of [50 CAT] number. And so costs are up a bit from that perspective. But generally speaking, we don't see a lot of rate change -- a lot of rate change going forward in reinsurance. I think, it will be the more flat experience, at least as what we hope for.

我認為成本，當你考慮今年的成本時，你會注意到，例如，24 年第一季保費的財產保留低於 23 年。最大的推動力是 2024 年 6 月 1 日——對不起，2023 年，在我們的樹頂上額外回購了 1.5 億美元的 CAT 限額。因此，這反映在本季度的預期中，但上一季並不存在。我們也多填寫了 5800 萬美元（不含 [50 CAT]）的數字。因此從這個角度來看，成本略有上升。但總的來說，我們沒有看到很大的費率變化——再保險領域未來會有很大的費率變化。我認為，這將是更平坦的體驗，至少如我們所希望的那樣。

Excellent detail. Just one quick follow-up. What's the surety retention moved up to? You said you thought about it and you moved it up a little bit. What was that number?

優秀的細節。只需一個快速跟進。保證金保留上升到什麼程度？你說你考慮了一下，然後把它往前移了一點。那個數字是多少？

We moved it up to $5 million?

我們把它提高到 500 萬美元？

Your next question comes from the line of Andrew Anderson of Jefferies.

你的下一個問題來自傑弗里斯的安德魯·安德森。

I think I heard you mention increased conservatism in loss picks. Was that specific to construction GL or are you reflecting that across the casualty book because I think you had mentioned a quarter ago, an increased in picks. So is this another step-up?

我想我聽到你提到了損失選秀中保守主義的增加。這是特定於建築 GL 的嗎？那麼這是否又是進步呢？

Andrew, it's Todd. I think just that our approach tends to be cautious or you can use the word conservative, not just in the construction side, but in the broader sense. I think if you look at the underlying loss ratio on casualty it's not significantly different than what it was last year. But we are watching the tail on our excess. I mean there's caution and just keeping an eye on those things, but not a significant change on an overall basis.

安德魯，我是托德。我認為只是我們的方法傾向於謹慎，或者你可以使用「保守」這個詞，不僅在建設方面，而且在更廣泛的意義上。我認為，如果你看看傷亡的基本損失率，它與去年沒有太大不同。但我們正在關注我們過度行為的尾巴。我的意思是要保持謹慎並密切注意這些事情，但總體而言不會發生重大變化。

Okay. And maybe just casualty, E&S flows, I think there's been a lot of industry commentary and kind of some numbers going around with regards to where we are in the cycle. Have you seen kind of casualty E&S flows pick up into ROI's kind of bucket? Or how should we think about the nature of this segment?

好的。也許只是偶然，E&S 流動，我認為有很多行業評論和一些關於我們處於週期中的位置的數字。您是否看過某種傷亡 E&S 流量進入 ROI 的桶中？或者說我們應該如何思考這個細分市場的本質？

Yes. I would say on the casualty side, we have seen an increase in submissions. A lot of those are pro habitational business, which were not as -- we haven't leaned into as much. We think the habitational market is still a bit underpriced. So we have a fairly small portfolio of that. The construction fees remains fairly competitive. We're getting into better weather. So we'll see how that translates into more submissions. It also varies quite a bit by region. So there are certain regions where you travel and you see there's a lot of construction going on. Other regions like here locally are pretty quiet. So that does vary.

是的。我想說，在傷亡方面，我們看到提交的材料增加。其中很多都是支持居住的業務，但我們並沒有投入那麼多。我們認為住宅市場的價格仍然有點被低估。所以我們的投資組合相當小。建築費用仍然相當有競爭力。我們正迎來更好的天氣。所以我們將看看這如何轉化為更多的提交。不同地區的情況也有很大差異。因此，在您旅行的某些地區，您會看到正在進行大量建設。像這裡這樣的其他地區當地相當安靜。所以這確實有所不同。

On the property side, we've also seen submissions move into the E&S space. A lot of that is, I'll say, non-win, [non-quiet] business. So it could be exposed a bit to that, but it's more focused on the Midwest and California wildfire and those other secondary perils that people talk about. That -- more of that business has shifted into the E&S space that we are taking advantage of that where it makes sense. And so the pricing there has moved towards our direction.

在房地產方面，我們也看到申請進入了環境與社會領域。我想說，其中很多都是非贏利的、[非安靜的]業務。因此，它可能會受到一些影響，但它更關注中西部和加州的野火以及人們談論的其他次要危險。更多的業務已轉移到 E&S 領域，我們正在合理地利用這一領域。因此那裡的定價已經朝著我們的方向發展。

Your next question comes from the line of [Carol] (inaudible) of Citizens JPM.

您的下一個問題來自公民 JPM 的 [Carol]（聽不清楚）。

And I'm just going to follow up on this property retention rate. I think you said that it was reflected correctly in this past quarter in terms of the [6.1%] renewal. And so is that an indicator that it's a clean quarter and that this should be the go-forward rate for this retention rate?

我只是要跟進這個財產保留率。我認為您所說的在上個季度的 [6.1%] 續訂方面得到了正確的反映。那麼，這是否表明這是一個乾淨的季度，並且這應該是該保留率的前進率？

So you saw that really stand out in the third quarter of last year and here full quarter of that new layer of CAT coverage. So this second quarter, you'll see there'll be 2 months where we have kind of the lower limits that we purchased of CAT in and 1 month of higher limit. So you'll see something in between for this quarter. And then starting in the third quarter, it will be more flat, I would say, in terms of the rate that the reinsurance costs.

所以你看到去年第三季和今年整個季度 CAT 覆蓋新層的情況確實很突出。因此，在第二季度，您將看到我們將有 2 個月的時間購買 CAT 的較低限額和 1 個月的較高限額。因此，本季您會看到介於兩者之間的情況。然後從第三季開始，我想說，就再保險成本而言，它將更加平穩。

One other thing there is as you do to Jen's point, really need to look over a longer time horizon because we will get some movement between quarters, whether it's adding some additional reinsurance on top or sometimes we'll have reinstatement premiums in a given quarter. So I think if you look at property over the last probably 3 or 4 years, it's been in that mid-70 net retention, net to gross. So sometimes, we'll get a little volatility to Jen's point in a quarter, but look at it over that longer time horizon and it can give good estimation.

還有一件事正如您對Jen 的觀點所做的那樣，確實需要著眼於更長的時間範圍，因為我們會在季度之間發生一些變化，無論是在頂部添加一些額外的再保險，還是有時我們會在給定季度內恢復保費。所以我認為，如果你看看過去三、四年的房地產，你會發現，淨留存率（淨保留率與總保留率）處於 70 左右。因此，有時，我們會在一個季度內得到 Jen 的觀點的一點波動，但從更長的時間範圍來看，它可以給出很好的估計。

The next question comes from the line of Scott Heleniak of RBC Capital Markets.

下一個問題來自加拿大皇家銀行資本市場的 Scott Heleniak。

I first want to touch on property again. Just can you just comment on your appetite for property right now? You mentioned the good growth in the E&S property and really strong rates so but -- are you still seeing really good opportunities for property there? Are you viewing that differently than you did in 2023? Is it any less attractive? Or how are you thinking about that for the rest of 2024 as it seems like rates are still strong, but maybe not quite as strong as last year.

我首先想再談談財產問題。您能談談您現在對房產的興趣嗎？您提到了 E&S 房地產的良好增長和非常強勁的利率，但是 - 您仍然看到那裡的房地產有很好的機會嗎？您對此的看法與 2023 年相比是否有所不同？是不是吸引力下降了一些？或者您如何看待 2024 年剩餘時間的情況，因為利率似乎仍然強勁，但可能不如去年那麼強勁。

Yes. Good question, Scott. I would say we see a lot of great opportunity in the property market. So we should start with that. Yes, competition is returning and it's making some ways. The MGAs have some capacity back and they feel like they have to use this very quickly, it seems like. So they do put out those larger limits and are cutting some rates. And so we're in a competitive market. However, the starting point is very attractive. So we're focused on, hanging on to our renewals and making sure that we have authority at the underwriting debt to maneuver through this market -- this changing market that we have.

是的。好問題，史考特。我想說，我們在房地產市場上看到了很多巨大的機會。所以我們應該從那裡開始。是的，競爭正在回歸，並且正在產生一些影響。 MGA 恢復了一些容量，他們覺得必須盡快使用這些容量，看起來是這樣。因此，他們確實提出了更大的限制，並降低了一些利率。因此，我們處於一個競爭激烈的市場。然而，出發點卻非常吸引人。因此，我們的重點是，堅持我們的續約，並確保我們有權承銷債務，以應對這個市場——我們所擁有的這個不斷變化的市場。

When we think about our appetite, we have a number of metrics that define our risk appetite in this space. We have plenty of room in our appetite in certain aspects. But we do recognize that there is a model change coming up. And so we use the RMS model at the underwriter's desk that is increasing the view of risk going forward. And so we already incorporated that in view into our exposure and how we look at the risk. And with that, we are being a little more conservative on growth from an exposure standpoint.

當我們考慮我們的偏好時，我們有許多指標來定義我們在這個領域的風險偏好。我們在某些​​方面有足夠的胃口空間。但我們確實認識到模型即將改變。因此，我們在承銷商的辦公桌上使用 RMS 模型，這增強了對未來風險的認識。因此，我們已經將這一點納入我們的風險敞口以及我們如何看待風險中。因此，從風險敞口的角度來看，我們對成長更加保守。

And so most of our growth at this point in time is coming from rates. I do hate to give market updates for property because it's changing -- the market is changing so quickly that I say that what's happening right now, but in a couple of months, the hurricane season begins, there's going to be a lot of changes that go on in the market. So that's kind of real-time info. And then next quarter, I can provide another update.

因此，目前我們的成長大部分來自利率。我確實討厭提供房地產市場的最新信息，因為它正在發生變化——市場變化如此之快，以至於我說現在正在發生什麼，但幾個月後，颶風季節開始，將會發生很多變化，繼續在市場上。這就是即時資訊。然後下個季度，我可以提供另一個更新。

Okay. Understood. That's helpful detail on how you're looking at that. I just wanted to ask too about the property reserve release that was pretty significant in the quarter. I know you mentioned marine E&S admitted. But was that just a true-up from some recent events? Was that just -- was that spread over from several years? Or any more detail you can give on that because it's just -- it was a little more significant than normal.

好的。明白了。這是關於您如何看待這個問題的有用細節。我也想問一下本季非常重要的房地產儲備釋放情況。我知道您提到了海洋 E&S 承認。但這只是最近發生的一些事件的真實情況嗎？這只是──是從幾年開始流傳下來的嗎？或者你可以提供更多細節，因為它比平常更重要一點。

It was. This is Todd. It was larger, I would agree. I think marine is one, the commercial property is another. The one thing I think to think about as we head into the end of the year, we're expecting -- we'll put an IBNR up and expecting that in the first quarter, we're going to have some of those prior year losses reported to us. And I mentioned in my comments that it was just a very low non-CAT quarter from that standpoint. So naturally, you end up with some release just in the nature of very short-tail products. So outside of that, there wasn't anything unusual, just really favorable loss experience.

它是。這是托德。它更大，我同意。我認為海洋是其中之一，商業房地產是另一個。當我們進入年底時，我認為要考慮的一件事是，我們預計 - 我們將提出 IBNR，並預計在第一季度，我們將獲得一些去年的結果向我們報告的損失。我在評論中提到，從這個角度來看，這只是一個非常低的非 CAT 季度。因此，很自然地，您最終會得到一些非常短尾產品性質的版本。所以除此之外，沒有什麼不尋常的，只是非常有利的損失經驗。

So the other thing to note is that burning has grown a lot, and the property component has. And so the dollar amounts are getting bigger. We're adjusting to that ourselves, seeing larger numbers. And so if the year has been good in terms of activity, loss activity, you'll see a larger number in that first quarter given that growth.

所以另一件值得注意的事情是，燃燒已經成長了很多，而且屬性部分也成長了很多。因此，美元金額越來越大。我們自己正在適應這一點，看到了更多的數字。因此，如果今年的活動和損失活動表現良好，那麼考慮到這種成長，您將在第一季看到更大的數字。

Okay. That makes sense. And then just the last one. You mentioned in your comments about Hawaii. You said you're still seeing growth there. You're seeing some competitors pull back. Is that mostly rate-driven growth for you? Are you still seeing that as kind of a growth opportunity for you over the next few years as you continue to see competitors pull back. Just anything you can kind of comment on that market now that market had a few quarters to adjust the loss there.

好的。這就說得通了。然後就是最後一個。您在評論中提到了夏威夷。你說你仍然看到那裡的成長。你看到一些競爭對手撤退了。對您來說，這主要是利率驅動的成長嗎？當你繼續看到競爭對手撤退時，你是否仍然認為這對你來說是未來幾年的成長機會？既然市場有幾個季度的時間來調整那裡的損失，那麼您可以對該市場發表任何評論。

Sure. So in Hawaii, we cover homes as well as condos and everything is admitted. So we have to go through the state and get some approvals. We've gotten some approvals and are waiting on others. And so a little bit of that growth is raised, but the majority at this point in time is winning business from our amazing service by our local team both on the underwriting and the claims side. We've been really proactive in responding to our insurers and their time of need and that has translated into our producers wanting to give us more business as other markets are pulling back. And so we look at that and manage how much business we're taking in, make sure that we are comfortable with the pricing and where things are located. And as long as it meets our appetite, then we've been taking on more risk as well.

當然。因此，在夏威夷，我們涵蓋住宅和公寓，一切都被允許。所以我們必須經過國家並獲得一些批准。我們已經獲得了一些批准，正在等待其他批准。因此，成長的一小部分有所提高，但目前大部分是透過我們當地團隊在承保和索賠方面提供的出色服務贏得了業務。我們一直非常積極主動地回應我們的保險公司和他們的需求，這已經轉化為我們的生產商希望在其他市場萎縮時為我們提供更多業務。因此，我們會注意這一點並管理我們所接受的業務量，確保我們對定價和物品存放位置感到滿意。只要它滿足我們的胃口，我們就一直在承擔更多的風險。

Your next question comes from the line of Fiona Diamond of William Blair.

你的下一個問題來自威廉布萊爾的菲歐娜戴蒙德。

This is Fiona on for Adam Klauber. I was just wondering, going back to the development trends. Is there any way you could expand upon or just give any commentary on the trend, how more recent accident years are trending for like '22, '23 versus maybe some of the more '19, '20 years, and that's primarily focused on property and casualty. Just how more recent accident year development is trending compared to maybe more later years, if that makes sense?

這是亞當·克勞伯的菲奧娜。我只是想知道，回到發展趨勢。您是否可以對這一趨勢進行擴展或發表任何評論，最近的事故年份如“22”、“23”與“19”、“20”等年份的趨勢如何，而這主要集中在房地產領域和傷亡。與以後幾年相比，最近的事故年發展趨勢如何，如果這有意義的話？

Yes, it does. I think if you look at the 2016 to 2019 years, which I know the industry has reported unfavorable there, we have yet to see that. So those were still favorable for us. 2020 was pretty flat. We had a little bit of adverse in the '21. But again, we're talking a couple of million dollars, which we -- the surety loss was a '21 accident year. So '23 certainly makes up a decent portion of it when you think in terms of where property was so favorable, but it's pretty spread out. I don't think we're seeing much difference between accident years that developing favorably for the most part.

是的，它確實。我認為，如果你看看 2016 年至 2019 年，我知道該行業報告了不利的情況，但我們還沒有看到這一點。所以這些對我們來說仍然是有利的。 2020 年相當平淡。我們在 21 世紀遇到了一些不利的情況。但我們再說一遍，我們談論的是幾百萬美元，我們的保證損失是 21 年的事故年。因此，當你考慮房產在哪裡如此有利時，23 歲肯定佔了相當大的一部分，但它相當分散。我認為我們在事故年份之間沒有看到太大的差異，大部分情況都發展得很好。

Your next question comes from the line of Meyer Shields of KBW.

您的下一個問題來自 KBW 的 Meyer Shields。

This is Dean on for Meyer. My first question was back to the premium growth in casualty lines. I've noticed like a nice uptick in recent quarters and the premium growth. And I was wondering if that was more just rate driven or if your appetite has expanded potentially into different product lines or certain ones?

這是迪恩替邁耶發言。我的第一個問題又回到了意外險保費的成長。我注意到最近幾個季度的成長和保費的成長。我想知道這是否只是利率驅動，或者您的興趣是否擴展到不同的產品線或某些產品線？

Well, thanks for the question. I would say our rate has increased a bit. So in the first quarter of '24, overall casualty rate change was 7%. And in the fourth quarter of '23 was 5%. So we're seeing a little bit more rate, a lot of mix change with personal umbrella growing and getting a 13% rate increase that explains the math later. The other part of the growth, I would say, is really taking advantage of market opportunities where they exist. So that's applicable to our previous discussion on first umbrella. It's also applicable to where we're seeing regionally in our construction book, whether that's in the admitted smaller contractor space or the larger mid-market, I'll call it, E&S contractors that we support.

嗯，謝謝你的提問。我想說我們的費率有增加。因此，2024 年第一季度，整體傷亡率變化為 7%。 2023 年第四季為 5%。因此，我們看到了更多的利率，隨著個人保護傘的增長，許多組合發生了變化，並獲得了 13% 的利率增長，這在後面解釋了數學。我想說，成長的另一部分是真正利用現有的市場機會。這適用於我們之前關於第一把雨傘的討論。它也適用於我們在建築手冊中看到的區域，無論是在公認的較小承包商空間還是較大的中端市場，我稱之為我們支持的 E&S 承包商。

We see spotty growth in transportation. It hasn't happened this quarter but those can be chunky accounts. And so if you win one or if you lose one, that can make a big difference within a quarter. But over the long term, I think we see some potential there as well. So I think it's a mix of rate and opportunity and just relying on our underwriters to make those solid underwriting decisions because they're all focused on making sure that we make an underwriting profit for the long term so we can pay our claims when they come up.

我們看到交通運輸的成長參差不齊。本季還沒有發生這種情況，但這些帳戶可能會很龐大。因此，如果你贏了一場或輸了一場，這可能會在一個季度內產生很大的影響。但從長遠來看，我認為我們也看到了一些潛力。因此，我認為這是費率和機會的結合，僅依靠我們的承保人做出可靠的承保決定，因為他們都專注於確保我們獲得長期承保利潤，以便我們可以在索賠發生時支付索賠向上。

Yes. That's helpful. And my last one is back to property. Can you talk about maybe some nonrate actions that you've sort of gone through in the property book to sort of address like that to be a convective storm in the non-catastrophe activity?

是的。這很有幫助。我的最後一個主題是回到財產。您能否談談您在財產手冊中經歷過的一些非利率行動，以解決非災難活動中的對流風暴？

Let's see. That's an interesting question. So I would say outside of rate, we do focus on coverage. So we have a discussion between our underwriters and our claims staff. We've had one-off fires collapse. We've had pipes burst. We had a guy step on a pipe that burst then. So we have these interesting scenarios that occur outside of wind or earthquake type of claims. And we look at each one of these as we think about, is that scenario described in our forum and we covered or not covered and do we want to cover that and are we repricing for that. So it goes back to what we call here the big [GUC] back loop which is all about underwriting.

讓我們來看看。這是一個有趣的問題。所以我想說，除了費率之外，我們確實關注覆蓋範圍。因此，我們的承保人和理賠人員之間進行了討論。我們曾經遇到過一次性火災倒塌的情況。我們曾經遇到過水管爆裂的情況。我們有一個人踩到了當時爆裂的管道。因此，我們有這些有趣的場景，這些場景發生在風或地震類型的索賠之外。當我們思考時，我們會審視其中的每一個，我們的論壇中描述的是我們涵蓋或未涵蓋的場景，我們是否想要涵蓋這一點，我們是否會為此重新定價。所以這又回到了我們這裡所說的大[GUC]後循環，這都是關於核保的。

So we do look at the words and making sure that we describe things like water damage very carefully, and we have evolved those kind of clauses over time, also look at deductible. How much should people retain of those losses versus how much should we cover. So those are a couple of the levers that we have adjusted. I would say nothing material in that space, but we've made some minor adjustments to coverage and things of that nature over the last couple of years. We still see there's a need for more rate in those habitational spaces in the Midwest. A lot of people talk about the Midwest hailstorm and then we're here in the Midwest. So we see the events happen. And so there still needs to be more movement there before we would be willing to grow in this area too much.

因此，我們確實會查看這些詞語，並確保我們非常仔細地描述水災等事情，並且隨著時間的推移，我們已經發展了此類條款，同時也會考慮免賠額。人們應該保留多少這些損失，而我們應該彌補多少。這些是我們調整的幾個槓桿。我不會在這個領域說什麼實質的內容，但在過去的幾年裡，我們對覆蓋範圍和類似性質的事情做了一些細微的調整。我們仍然認為中西部的居住空間需要提高利率。很多人都在談論中西部的冰雹，而我們現在就在中西部。所以我們看到事件的發生。因此，在我們願意在這領域過度發展之前，仍然需要有更多的行動。

We now have a follow-up question from Andrew Anderson of Jefferies.

現在傑富瑞 (Jefferies) 的安德魯安德森 (Andrew Anderson) 提出了後續問題。

Just on NII, I guess I would have thought there would be a little bit more expansion quarter-over-quarter. Is there anything kind of one-off in this quarter's number? And way to think about the full year.

就 NII 而言，我想我會認為季度環比會有更多的擴張。本季的數據中有什麼一次性的情況嗎？以及思考全年的方式。

Andrew, it's Aaron. Nothing unusual. As Todd mentioned, we're sticking to our knitting with high quality assets on the new purchase sides of things. Operating cash flow tends to be a little bit lighter in the first quarter versus other quarters. Throughout the year, we got a lot of reinsurance renewals in Q1. Bonus and profit sharing payments go out in the first quarter. Still very strong positive operating cash flow. We're happy to have that accrue to the portfolio, but that should pick up in the balance of the year. So outside of that, nothing unusual there.

安德魯，是亞倫。沒什麼不尋常的。正如托德所提到的，我們在新的採購方面堅持使用高品質資產進行編織。與其他季度相比，第一季的營運現金流往往要少一些。全年來看，我們在第一季獲得了大量的再保險續保。獎金和利潤分享付款在第一季支付。營運現金流仍然非常強勁。我們很高興將其納入投資組合，但這應該會在今年餘下時間裡有所回升。所以除此之外，沒有什麼不尋常的。

As there are no further questions, I will now turn the conference back over to Mr. Craig Kliethermes for closing remarks.

由於沒有其他問題了，我現在將會議轉回由 Craig Kliethermes 先生致閉幕詞。

Well, thank you all for joining today. A good quarter to build upon. We believe our hallmark underwriting discipline and diversified portfolio of specialty products should translate into consistent financial outcomes over time and allow us to continue serving as a stable market for our customers. I would like to thank all of our RLI associate owners for their contributions to our shared success. We will continue to focus on making decisions and executing on strategic initiatives that are in the long-term best interest of our company, our shareholders and our customers. Our team is very comfortable being different because being different works. Thank you all again for tuning in, and we'll visit again next quarter.

好的，謝謝大家今天的加入。這是一個值得繼續發展的好季度。我們相信，我們標誌性的核保紀律和多元化的專業產品組合應該隨著時間的推移轉化為一致的財務成果，並使我們能夠繼續為客戶提供穩定的市場。我要感謝所有 RLI 合夥人為我們共同的成功做出的貢獻。我們將繼續專注於制定決策並執行符合我們公司、股東和客戶長期最佳利益的策略性舉措。我們的團隊非常樂於與眾不同，因為與眾不同是有效的。再次感謝大家的收聽，我們將在下個季度再次訪問。

Ladies and gentlemen, if you wish to access the replay of this call, you may do so on the RLI home page at www.rlicorp.com. This concludes our conference for today. Thank you for your participation and have a nice day. All parties may now disconnect.

女士們先生們，如果您想觀看本次電話會議的重播，您可以在 RLI 主頁 www.rlicorp.com 上進行操作。我們今天的會議到此結束。感謝您的參與，祝您有美好的一天。所有各方現在都可以斷開連接。