RLI Corp (RLI) 2024 Q3 法說會逐字稿

Good morning, and welcome to the RLI Corp. Third Quarter Earnings Teleconference. (Operator Instructions).

早安，歡迎參加 RLI 公司第三季財報電話會議。（操作員說明）。

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 and expectations for the future.

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的意圖、信念和對未來的期望的評論。

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 and 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.

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。請參閱本公司向 SEC 提交的各種文件中所述的風險因素，包括表格 10-K 中的年度報告以及表格 10-Q 中的補充內容，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'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.

在電話會議期間，RLI 管理階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's management believes these measures are useful 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，這些指標有助於衡量報告期間的核心營運績效，但可能無法與其他公司對營運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 上取得。

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

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

Thank you, Adam. Good morning, everyone. Thank you for joining RLI's third quarter earnings call for 2024. Joining us are Craig Kliethermes, President and CEO; Jen Klobnak, Chief Operating Officer; Todd Bryant, Chief Financial Officer.

謝謝你，亞當。大家早安。感謝您參加 RLI 2024 年第三季財報電話會議。加入我們的還有總裁兼執行長 Craig Kliethermes； Jen Klobnak，營運長；托德·布萊恩特，財務長。

Today's agenda will include Craig opening up the call with some high-level remarks. Todd will add detail on our financial results for the quarter. Jen will offer some additional commentary on market conditions in our product portfolio. The operator will then open the line for questions, and Craig will close with some final thoughts. Craig?

今天的議程將包括克雷格在電話會議開始時發表一些高層演講。托德將詳細介紹我們本季的財務表現。Jen 將對我們產品組合中的市場狀況提供一些額外的評論。然後接線員將打開提問熱線，克雷格將以一些最後的想法結束。克雷格？

Well, thank you, Aaron, and good morning, everyone. I want to start by acknowledging the devastating hurricanes that occurred over the last several months and the impact they have had on our customers, business partners and team members.

好吧，謝謝你，亞倫，大家早安。首先，我想承認過去幾個月發生的毀滅性颶風及其對我們的客戶、業務合作夥伴和團隊成員造成的影響。

We continue to extend our heartfelt support to all who were affected by these destructive and life-threatening events. RLI is committed to doing our part to store our customers' livelihoods. Our purpose is to protect people and organizations from life's uncertainties to help them explore, create, build and thrive. Our financial strength and stability empower us to help individuals and businesses diversify and sustain risks that they can't manage on their own. It also enables us to deliver consistent returns for our shareholders.

我們繼續向所有受到這些破壞性和危及生命的事件影響的人表示衷心的支持。RLI 致力於盡我們的一份力量來保障客戶的生計。我們的目的是保護人們和組織免受生活不確定性的影響，幫助他們探索、創造、建立和繁榮。我們的財務實力和穩定性使我們能夠幫助個人和企業分散和承受他們無法自行管理的風險。它還使我們能夠為股東提供持續的回報。

I will let Todd and Jen go into more detail on the financials, the market in general, the opportunities we see and the impact that these storms had on our financials. All things considered, we were pleased with the opportunities to grow profitably during the quarter and lean into the disruptions in the marketplace where we have expertise.

我將讓托德和珍更詳細地介紹財務狀況、整個市場、我們看到的機會以及這些風暴對我們財務狀況的影響。考慮到所有因素，我們很高興有機會在本季度實現盈利成長，並在我們擁有專業知識的市場中應對顛覆。

I'll now turn it over to Todd for his comments.

現在我將把它交給托德徵求他的意見。

Thanks, Craig. Good morning, everyone. Yesterday, we reported third quarter operating earnings of $1.31 per share, positive underwriting performance and a 15% rise in investment income contributed to the increase in operating earnings on a comparative basis. Our combined ratio was 89.6% for the quarter and now stands at 83.3% on a year-to-date basis. Top line growth continued in the quarter, with gross premiums advancing 13%. Jen will offer some additional details on premium growth, which remains very balanced across our product segments.

謝謝，克雷格。大家早安。昨天，我們公佈了第三季營業利潤為每股 1.31 美元，良好的承保業績和投資收入成長 15% 推動了營業利潤的比較成長。本季的綜合成本率為 89.6%，今年迄今為 83.3%。本季營收持續成長，毛保費成長 13%。Jen 將提供有關保費成長的一些額外細節，我們的產品領域保持非常平衡。

As referenced in our pre-announcement on October 7, results were affected by storm activity in the quarter, most acutely Hurricanes Helene and Beryl. On a GAAP basis, net earnings of $2.06 per share compared to $0.29 per share in Q3 of 2023.

正如我們在 10 月 7 日的預告中所提到的，結果受到本季風暴活動的影響，其中最嚴重的是颶風海倫和貝裡爾。以 GAAP 計算，每股淨利潤為 2.06 美元，而 2023 年第三季為每股 0.29 美元。

Last year's results were heavily influenced by the Hawaii wildfire losses and an equity market that was in retreat over the quarter. Underwriting income in Q3 2024 was primarily driven by continued growth in earned premium, lower current year catastrophe losses and favorable prior year development.

去年的業績受到夏威夷山火損失和本季股市下跌的嚴重影響。2024 年第三季的承保收入主要是由於已賺保費的持續增長、本年度巨災損失的減少以及上一年的良好發展所推動的。

In combination, this resulted in an improved combined ratio of 89.6% compared to 98.7% in 2023. The losses recorded from Hurricanes Helene and Beryl totaled $37 million, $35 million of that effect of the Property segment, while $2 million was tied to packaged policies in the casualty segment. In non-hurricanes, we recorded $2 million of other storm losses in the quarter.

總而言之，這使得綜合成本率從 2023 年的 98.7% 提高到 89.6%。颶風「海倫」和「貝麗爾」造成的損失總計 3,700 萬美元，其中 3,500 萬美元來自財產部門的損失，而 200 萬美元則與意外事故部門的打包保單相關。在非颶風方面，本季我們記錄了 200 萬美元的其他風暴損失。

Although we are largely focused on Q3 results in our discussion today, I do want to take a moment to outline a range of loss estimates for Hurricane Milton, which made landfall in Florida on October 9. This was a very large storm and our estimates are subject to change.

儘管我們今天的討論主要關注第三季度的結果，但我確實想花點時間概述 10 月 9 日在佛羅裡達州登陸的颶風米爾頓的一系列損失估計。這是一場非常大的風暴，我們的估計可能會改變。

We currently estimate that pretax losses from Hurricane Milton, net of any reinsurance benefits will be between $45 million and $55 million. We will reflect a final loss estimate in our fourth quarter financials but would not expect to publish any narrowing or adjustment to this range between now and our fourth quarter earnings release, unless our claim estimates change materially.

我們目前估計，風米爾頓造成的稅前損失（扣除任何再保險福利）將在 4500 萬至5500 萬美元之間。我們將在第四季度的財務數據中反映最終的損失估計，但預計從現在到第四季度收益發布之間不會發布對該範圍的任何縮小或調整，除非我們的索賠估計發生重大變化。

Turning to segment level results. As mentioned, Growth in gross premium was very balanced in the quarter, and our underwriters continue to find top line opportunities. Casualty has been growing at double-digit pace this year and Q3 came in at plus 16%. The bottom line for Casualty benefited from $9 million of favorable prior year loss development.

轉向細分層面的結果。如前所述，本季毛保費成長非常平衡，我們的承銷商繼續尋找收入機會。今年傷亡人數一直以兩位數的速度成長，第三季的增幅為 16%。傷亡險的盈利得益於上一年 900 萬美元的有利虧損發展。

Of note, we continue to monitor wheeled base and other excess liability exposures where we believe it is prudent to reflect an extended pattern for loss of merchants. Considering similar uncertainty on wheels based or liability exposures in the current accident year, our casualty booking ratio was up slightly weighing on the underlying loss ratio. On an overall basis, Casualty remains profitable for the 98.8% combined ratio for the quarter.

值得注意的是，我們繼續監控輪式基地和其他超額責任風險，我們認為，謹慎反映商家損失的擴展模式是明智的。考慮到目前事故年度基於車輪或責任風險的類似不確定性，我們的傷亡登記率略有上升，對基本損失率造成壓力。整體而言，Casualty 仍保持獲利，本季綜合成本率為 98.8%。

Surety growth remained robust at a 9% increase in gross premium in the third quarter alongside $3.1 million of favorable prior year loss development. This resulted in an 8.5 point benefit to Surety loss ratio which was partially offset by an increase in the expense ratio. Acquisition costs have moved higher, influenced in part by the mix of business as well as our continued investments in people and technology to support Surety's growth.

保證成長依然強勁，第三季毛保費成長了 9%，同時上年虧損也實現了 310 萬美元的有利成長。這使得擔保損失率提高了 8.5 個百分點，但部分被費用率的增加所抵消。收購成本有所上升，部分原因是業務組合以及我們為支持 Surety 成長而對人員和技術的持續投資。

Away from the discussion on catastrophes, the Property segment continued to grow and was up 10% in the quarter. By product, Marine and Hawaii homeowners are outpacing moderating growth in E&S property. Overall, we reduced prior year reserves by $4.4 million associated with marine in contrast to some strengthening in Q3 of 2023.

除了對災難的討論之外，房地產領域繼續增長，本季增長了 10%。從產品來看，海洋和夏威夷房主的成長速度超過了 E&S 房地產的放緩。總體而言，我們將上一年與海洋相關的儲備金減少了 440 萬美元，而 2023 年第三季的儲備金則有所增加。

Additionally, prior year storm losses were adjusted favorably by $3.3 million. Underlying results per property were very comparable to last year, and the segment's 77% combined ratio for the quarter again highlighted the influence of growth in earned premium.

此外，去年的風暴損失也調整了 330 萬美元。每項物業的基本業績與去年非常相似，該部門本季 77% 的綜合成本率再次凸顯了已賺取保費成長的影響。

Operating cash flow was strong in the quarter at $219 million and helped to support continued purchase activity in the investment portfolio, where yields averaged 4.9%. Opportunities remain available to add high-quality bonds that are accretive book yield, and our approach has remained fairly consistent. The portfolio's average durations extended slightly to 4.8 years as we have been focused on intermediate maturities. Total return for the quarter was 4.8%, with significant contribution from bonds as rates decline and from stocks due to the market's continued upswing.

本季營運現金流強勁，達 2.19 億美元，有助於支持投資組合的持續購買活動，平均收益率為 4.9%。仍然有機會增加可增加帳面收益率的高品質債券，而且我們的方法仍然相當一致。由於我們一直專注於中期期限，因此該投資組合的平均久期略有延長至 4.8 年。本季的總報酬率為 4.8%，其中利率下降帶來的債券貢獻顯著，市場持續上漲帶來的股票貢獻較大。

Beyond the core portfolio, our investment in Prime contributed investing earnings of $1.2 million in Q3. Putting it all together, comprehensive earnings were $3.79 per share and put book value per share to $38.17, an increase of 26% from year-end 2023, inclusive of dividends. For 2024, we are pleased with the results for three quarters.

除了核心投資組合之外，我們對 Prime 的投資在第三季貢獻了 120 萬美元的投資收益。總而言之，綜合收益為每股 3.79 美元，每股帳面價值為 38.17 美元，較 2023 年底增長 26%（含股息）。2024 年，我們對三個季度的業績感到滿意。

And now I'll turn the call over to Jen. Jen?

現在我將把電話轉給 Jen。珍？

Thank you, Todd. Let me provide some more color by segments. As Todd mentioned, the Casualty segment grew by 16%. Growth was wide spread coming from almost all of our products. Our Casualty Brokerage group, which rises primary general liability and excess liability coverage grew by 8%. Submissions were up 15% as we continue to stay in front of producers and ask for business.

謝謝你，托德。讓我按段提供更多顏色。正如托德所提到的，傷亡險業務成長了 16%。我們幾乎所有產品都實現了廣泛的成長。我們的傷亡經紀業務集團的主要一般責任保險和超額責任險增加了 8%。由於我們繼續領先製作人並尋求業務，提交量增加了 15%。

Some competitors have experienced adverse loss development and are restricting their appetite, giving us a chance to see more opportunities. At the same time, there continue to be new MGAs and carriers entering that market.

一些競爭對手經歷了不利的虧損發展並限制了他們的胃口，這讓我們有機會看到更多的機會。同時，不斷有新的 MGA 和營運商進入該市場。

As Todd mentioned, we are seeing claims taking longer results, a trend that we have incorporated into our loss development factors. In addition, our dedicated claim examiners work closely with our underwriters -- making adjustments as needed so we can remain a consistent participant in the market.

正如托德所提到的，我們看到索賠需要更長的時間，我們已將這一趨勢納入我們的損失發展因素中。此外，我們的專門索賠審查員與我們的承保人密切合作，根據需要進行調整，以便我們能夠保持市場的穩定參與者。

Our transportation division grew by 15%. This area remains a target for legal system of use. This has caused some competitors to rethink their strategies, which supported a 20% increase in our solutions. We are focused on risk selection and maintaining adequate rates. We have walked away from accounts that became under price and achieved an 11% rate increase on the business we retained. Investments in new products, including moving in storage and a VNS offerings are starting to pay off as we provide a new alternative to our producers. We remain cautious but see a lot of opportunity in this market.

我們的運輸部門成長了 15%。該領域仍然是使用法律體系的目標。這導致一些競爭對手重新考慮他們的策略，這支持我們的解決方案增加 20%。我們專注於風險選擇和維持適當的利率。我們放棄了價格過低的客戶，並在我們保留的業務上實現了 11% 的成長率。隨著我們為生產商提供新的替代方案，對新產品的投資（包括遷移儲存和 VNS 產品）開始獲得回報。我們保持謹慎，但看到這個市場有很多機會。

Personal umbrella grew 36%, including a 16% rate increase, which is supported by a nationwide rate approval effective in the third quarter. We actively monitor rate adequacy given the growth in this book. We continue to win new business as underlying carriers focus on homeowners or auto issues, creating opportunities for our stand-alone product. Our dedicated claims team is providing regular feedback to our underwriters and actuaries, helping our product leaders optimize the growth in this book.

個人雨傘增加了 36%，其中利率上漲了 16%，這得益於第三季生效的全國利率批准。鑑於本書的成長，我們積極監控利率充足性。隨著基礎運營商專注於房主或汽車問題，我們繼續贏得新業務，為我們的獨立產品創造機會。我們專門的理賠團隊定期向我們的核保人員和精算師提供回饋，幫助我們的產品領導者優化本書的成長。

The only area of the casualty segment that is contracting is our Executive Products group which focuses on directors and office service insurance and other management liability coverages. Our book is about 1/3 public company insurance, which is the most competitive space. We are focused on growing in the private company business.

傷亡保險領域唯一正在收縮的領域是我們的執行產品小組，該小組專注於董事和辦公室服務保險以及其他管理責任保險。我們的書大約有1/3的上市公司保險，這是競爭最激烈的空間。我們專注於發展私人公司業務。

Rates were down 4% in the quarter, while we pick and choose which accounts we can give on REIT and which accounts to walk away from. It appears the market is getting a bit more stable in this space, so the business is difficult to win. Overall, casualty rate change was 9% increase, which matches the rate change from last quarter.

本季利率下降了 4%，同時我們挑選哪些帳戶可以提供給 REIT，哪些帳戶可以放棄。看來這個領域的市場正變得更加穩定，因此業務很難贏得。總體而言，傷亡率變化增加了 9%，與上季度的比率變化相符。

On a combined ratio of 98.8% is a notable increase from last quarter's third quarter. We have the system in place with strong collaboration between our underwriting, claims and analytical support teams to continuously optimize our approach as the market evolves.

第三季綜合成本率為98.8%，較上季顯著成長。我們擁有適當的系統，我們的核保、理賠和分析支援團隊之間有著強而有力的合作，可以隨著市場的發展不斷優化我們的方法。

The Surety segment premium grew by 9%. Contract Surety led the way with 25% growth due to the lift from the elevated cost of materials as well as winning new business. Commercial and transactional surety grew at a slower pace as competition remains fierce. We continue to be selective as inflation and economic conditions are creating a disparity in individual company's financial strength.

擔保業務保費增加了 9%。由於材料成本上漲以及贏得新業務的推動，合約擔保公司以 25% 的成長領先。由於競爭依然激烈，商業和交易擔保成長速度放緩。由於通貨膨脹和經濟狀況導致各公司的財務實力存在差異，我們將繼續進行選擇性投資。

Our focus for this segment is marketing and educating producers on our appetite. The combined ratio for surety of 78.8% reflects our underwriting discipline and the lack of any large loss activity in the quarter.

我們在這一領域的重點是根據我們的胃口對生產者進行行銷和教育。78.8% 的擔保綜合比率反映了我們的承保紀律以及本季沒有任何大規模損失活動。

Finally, the property segment grew by 10%. I'll start with Hawaii homeowners. Last year's third quarter was heavily influenced by the Lahaina wildfire loss. We are happy to report that over 90% of our reported loss has been paid to our insurance.

最後，房地產領域成長了 10%。我將從夏威夷房主開始。去年第三季受到拉海納山火損失的嚴重影響。我們很高興地報告，我們報告的損失中 90% 以上已支付給我們的保險。

Claim resolution is the core of our business. Due to our proactive play handling, customer service-oriented underwriting and with select competitors pulling back, we continue to see growth in this book as evidenced by the 22% increase in premiums this quarter. Rate increase totaled 4% for the quarter with more rate approvals becoming effective in the fourth quarter.

索賠解決是我們業務的核心。由於我們積極主動的遊戲處理、以客戶服務為導向的承保以及特定競爭對手的退出，我們繼續看到這本書的成長，本季保費成長 22% 就證明了這一點。本季利率總計上漲 4%，更多利率批准將於第四季生效。

Marine also grew by 21% in the third quarter. We are very responsive and identify opportunities through conversations with our brokers. In addition, we continue to add rates on the book. This quarter, we achieved a 5% rate increase. We see a lot of opportunities in the gravitation of business to the wholesale market.

海事業務第三季也成長了 21%。我們反應非常靈敏，並透過與經紀人的對話來發現機會。此外，我們還在繼續增加這本書的價格。本季度，我們實現了 5% 的成長率。我們在批發市場的商業吸引力中看到了很多機會。

Our E&S Property Group grew by 5% in the quarter. The increase in rates and premium over the last year is earning through and giving us the foundation to resolve hurricane and other claims while producing an underwriting profit. It's been an active hurricane season, starting with Hurricane Beryl's landfall in early July and continuing through early October when Hurricane Milton arrived in Florida.

我們的 E&S 房地產集團本季成長了 5%。去年費率和保費的成長為我們帶來了收入，並為我們解決颶風和其他索賠問題同時產生承保利潤奠定了基礎。這是一個活躍的颶風季節，從 7 月初颶風貝裡爾登陸開始，一直持續到 10 月初颶風米爾頓抵達佛羅裡達州。

Throughout the season, we remain diligent in the basis, capturing our exposure at a very granular level, maintaining policy terms and conditions and staying prepared to mobilize our claims staff immediately following an event.

在整個賽季中，我們仍然勤奮地進行基礎工作，在非常細粒度的水平上捕捉我們的風險，維護保單條款和條件，並做好準備，在事件發生後立即動員我們的索賠人員。

We continue to have a physical claim presence at Florida to assist our insurers as they need us. Our boots on the ground approach supports our ability to quantify the extent of damage and inform our loss estimate on a timely basis, as demonstrated by our Milton estimate provided today, less than two weeks after the event. In terms of market conditions, the property market has been softening from a peak prior to the most recent events.

我們繼續在佛羅裡達州設有實體理賠機構，以便在保險公司需要我們時為他們提供協助。正如我們今天在事件發生後不到兩週內提供的米爾頓估計所證明的那樣，我們的實地靴子方法支持我們量化損害程度並及時告知我們的損失估計的能力。就市場狀況而言，房地產市場已從最近事件發生前的高峰開始走軟。

In the third quarter, hurricane rates were down 8% with overall E&S property rate change flat. It's too early for most carriers and MGAs to react to the three sizable hurricanes this year. What we are focused on is staying available to cold new business, providing timely feedback to our producers trying to retain our renewals and continuing to resolve claims as quickly and fairly as possible.

第三季度，颶風發生率下降了 8%，E&S 房地產整體發生率變化持平。對於大多數航空公司和 MGA 來說，現在對今年的三場大型颶風做出反應還為時過早。我們的重點是保持冷淡的新業務的可用性，向試圖保留續約的生產商提供及時的反饋，並繼續盡快、公平地解決索賠。

Our exposure has decreased over the last year as competition became more aggressive in the market. If that competition recedes, we have some room to take advantage of any changes in the market. This quarter showcased our ability to execute.

隨著市場競爭變得更加激烈，我們的曝光率在去年有所下降。如果競爭減弱，我們就有空間利用市場的任何變化。本季展現了我們的執行能力。

Over the last few years, we've invested in the RLI community with additional staff, training and tools to improve processes. We have also spent significant time and resources investing in producer relationships and technology, particularly technology that enhances ease of use as well as enabling our claims staff to resolve claims more effectively. These investments are resulting in profitable growth.

在過去的幾年裡，我們對 RLI 社群進行了投資，增加了員工、培訓和工具，以改善流程。我們也花了大量時間和資源投資於生產者關係和技術，特別是提高易用性並使我們的索賠人員能夠更有效地解決索賠的技術。這些投資帶來了獲利成長。

This quarter, we grew premium by 13% and produced an 89.6 combined ratio. We have three quarters behind this, and we're sitting on an 83 combined ratio for the year. We're doing what we can to finish strong.

本季度，我們的保費成長了 13%，綜合成本率為 89.6。我們已經落後了四分之三，今年的綜合比率為 83。我們正在盡我們所能，以強勢結束比賽。

With that, I will turn the call over to the moderator to open it up to questions.

這樣，我會將電話轉交給主持人提問。

(Operator Instructions)

（操作員說明）

Bill Carcache, Wolfe Research.

比爾‧卡卡什，沃爾夫研究中心。

Craig, I wanted to follow up on your comment about wanting to lean into the disruptions in the marketplace where you see the greatest opportunities. Perhaps could you discuss the most attractive opportunities for incremental profitability across your business lines that you see currently?

克雷格，我想跟進您的評論，即您希望在市場的顛覆中看到最大的機會。也許您能討論一下您目前看到的跨業務線增加盈利能力的最具吸引力的機會嗎？

Sure, Bill. Thanks. I mean, obviously, the way our business is set up with narrow and deep expertise in both underwriting and claims. We have to be prepared to lean in when there is opportunity and some disruption. We've been seeing that in our personal umbrella space for probably the last several years. Jen mentioned transportation. Obviously, we're always prepared to lean in. We've been in that business for 40 years with people that only underwrite transportation only handle transportation-related claims.

當然，比爾。謝謝。顯然，我的意思是我們的業務建立方式在承保和索賠方面具有狹窄而深厚的專業知識。當有機會和一些幹擾出現時，我們必須做好準備。在過去的幾年裡，我們可能已經在我們的個人傘空間中看到了這一點。Jen提到了交通。顯然，我們時時刻刻準備著向前邁進。我們從事該行業已有 40 年，我們的員工只承保運輸，只處理與運輸相關的索賠。

Our marine business continues to see opportunities, particularly on the inland side of the house. Jen mentioned Hawaii Homeowners. We remain steadfast in our commitment to that market. Obviously, we'd like to continue to get rate increases over time so we can continue to remain competitive in that market, but a lot of people are working backwards there.

我們的海洋業務繼續看到機會，特別是在內陸地區。Jen 提到了夏威夷房主。我們仍然堅定地致力於該市場。顯然，我們希望隨著時間的推移繼續提高費率，以便我們能夠繼續在該市場保持競爭力，但許多人正在倒退。

And obviously, we're kind of in a wait-and-see mode around our E&S property. We saw a huge opportunity over the last two or three years. We lean in heavily into that opportunity. We'll see what happens as a result of these three fairly sizable collective hurricanes that we had this year. always prepared to lean into surety and obviously, our commercial access business as well.

顯然，我們對 E&S 資產處於觀望狀態。在過去的兩三年裡，我們看到了巨大的機會。我們大力抓住這個機會。我們將看看今年這三場規模相當大的集體颶風會發生什麼事。始終準備好依靠保證，顯然，我們的商業接入業務也是如此。

So I mean, we see a fair amount of opportunity in our portfolio. The beauty of our very diverse portfolio is we have some products that there is opportunity and in other products where we have to pull back. And our model has always allowed our underset do the right thing in all markets, so they can lean in, they have proven track record of success over time, which gives us the confidence to let them lean into markets where there is an opportunity and it's pretty much self-regulating in regards to them pulling back in regards to where the market is a little too competitive and the underwriting profit is not available to us.

所以我的意思是，我們在我們的投資組合中看到了相當多的機會。我們非常多樣化的產品組合的美妙之處在於，我們有一些產品有機會，而在其他產品中我們必須退出。我們的模式始終允許我們的弱勢群體在所有市場中做正確的事情，因此他們可以傾斜，隨著時間的推移，他們已經證明了成功的記錄，這使我們有信心讓他們傾斜到有機會的市場，而這是當市場競爭過於激烈且我們無法獲得承保利潤時，他們會進行自我調節。

Great. That's helpful. Separately, it would be great to hear any observations on the trajectory of pricing versus loss cost inflation trends you're seeing and any changes you anticipate in the aftermath of the hurricanes.

偉大的。這很有幫助。另外，很高興聽到您所看到的定價軌跡與損失成本通膨趨勢的任何觀察，以及您預計颶風過後的任何變化。

This is Jen. So regarding property, I think if you look at, obviously, loss trends are up a little bit even for property given material costs and somewhat litigation environment around when there's significant claims to be handled and the public adjusters and whatnot. We have been pushing rate a lot. Our rates are up about 200% over the last five years, not even for the last three years. We're up probably almost 200%. And so we've already taken a significant amount of rate. We think our portfolio is very low priced.

這是珍。因此，關於財產，我認為如果你看一下，顯然，考慮到材料成本和在需要處理重大索賠以及公共理算員等時周圍的訴訟環境，即使對於財產來說，損失趨勢也會有所上升。我們一直在大力推動利率。我們的費率在過去五年中上漲了約 200%，甚至在過去三年中也沒有上漲。我們的漲幅可能接近 200%。所以我們已經採取了大量的利率。我們認為我們的投資組合價格非常低。

I think the opportunity here at a minimum is that with these large events, it will stabilize the market. So instead of the market is starting to deteriorate with regard to both rate as well as some terms of conditions, I'm hoping that this will provide a foundation for people to say, okay, these losses do happen. Let's make sure that we are being diligent around what coverage we want to provide and the charging of rates to cover those losses when they happen. So I think property, it's, again, too early to say because these events are just unfolding yet. But I'm hoping that's the impact to the market.

我認為這裡的機會至少是，透過這些大型事件，它將穩定市場。因此，市場不會在利率和某些條件方面開始惡化，而是希望這將為人們提供一個基礎，讓他們說，好吧，這些損失確實發生了。讓我們確保我們認真考慮我們想要提供的承保範圍以及收取的費率，以在發生這些損失時彌補這些損失。所以我認為現在說房地產還為時過早，因為這些事件才剛剛展開。但我希望這就是對市場的影響。

On the casualty side, I would say our rate change is keeping up with loss trend. And the benefit we have is that with the connection between underwriters, planes and some analytical support. The others know where we're at. And so they know to continue to push that rate and kind of where they are with regard to profitability so that they can reach account and they look at it, they know kind of where they need to be. So that's on the advantage on the Casualty side.

在傷亡方面，我想說我們的費率變化跟上了損失趨勢。我們的好處是承銷商、飛機和一些分析支援之間的連結。其他人知道我們在哪裡。因此，他們知道要繼續提高利率和獲利能力，這樣他們就可以達到目標，他們會看看，他們知道自己需要達到什麼水平。這就是傷亡方的優勢。

That's helpful. If I could squeeze in one final sort of higher-level question for the broader team. So we saw another quarter of favorable development across your casualty, property and surety segments. And I think the market fully appreciates that your underwriting is exceptional, but could you take us inside the business and perhaps give a bit more perspective on what's driving that kind of consistency at a time where social inflation has been pervasive and reserve adequacy remains a concern for many of your competitors?

這很有幫助。如果我能為更廣泛的團隊提出最後一個更高級別的問題。因此，我們看到傷亡、財產和擔保領域又一個季度出現了良好的發展。我認為市場充分認識到你們的承保是出色的，但您能否帶我們深入了解一下業務，也許對在社會通貨膨脹普遍存在、準備金充足性仍然令人擔憂的情況下推動這種一致性的因素給出更多的看法對於你的許多競爭對手來說？

Well, I mean, I'll try and maybe Todd can join in here. But I mean, we obviously have always taken a long-term view of loss cost trends of, I'll say, a prudent view of risk that's factored into all of our estimates our starting booking ratios, we try to look at a reasonable range and try to be prudent and booked the initial loss ratio in maybe the higher end of that range, but certainly within the range. But to factor in the risks that are out there, particularly right now, you have lingual system of use.

嗯，我的意思是，我會嘗試一下，也許托德可以加入這裡。但我的意思是，我們顯然一直對損失成本趨勢採取長期的看法，我會說，對風險的審慎看法已納入我們所有估計的起始預訂比率中，我們試圖尋找一個合理的範圍並儘量保持謹慎，並將初始損失率記錄在該範圍的較高端，但肯定在該範圍內。但要考慮到存在的風險，尤其是現在，你需要使用語言系統。

We invest heavily in our claim department and the communication between our claim department and our actuaries which gives us real-time feedback of what the actuaries are seeing. Sometimes actuaries get caught up in just data and we get the claim perspective on what might be driving that data. [Obviously], people are sharing them with our underwriters as well, which helps give them information to either pull back or lean into a market. We've had the same approach around here for much longer than I've ever been here. I mean at least 30 years it's been the same approach. We've not changed our approach.

我們在理賠部門以及理賠部門和精算師之間的溝通上投入了大量資金，這為我們提供了精算師所看到的即時回饋。有時精算師只專注於數據，而我們則從索賠角度了解可能驅動該數據的因素。 [顯然]，人們也與我們的承銷商分享這些信息，這有助於為他們提供信息，以撤回或投入市場。我們在這裡採用同樣的方法的時間比我來這裡的時間要長得多。我的意思是，至少 30 年來一直採用同樣的方法。我們沒有改變我們的做法。

I'm not going to say we've always had favorable development. If you go back way far like in the last, really, really soft market in the early the 2000s, late 1990s, we had adverse development as well, but just not as much as the rest of the industry and not as much as our peers. And I think I would say that speaks to kind of our overall long-term approach to thinking about things a risk-based approach thinking about things.

我並不是說我們一直都有好的發展。如果你回顧2000年代初、1990年代末最後一個非常非常疲軟的市場，我們也經歷了不利的發展，但只是沒有行業其他公司那麼嚴重，也沒有我們的同行那麼嚴重。我想我會說，這說明了我們思考事物的整體長期方法，一種基於風險的思考方法。

I'll add just a couple of other things if I can. I think part of it is our risk appetite with regard to small to middle market insurers that we target, generally speaking, in most of our businesses. We don't put out excessive limits to those insurers. So you have maybe less of a target for some of the legal system of -- that goes on.

如果可以的話，我會添加一些其他內容。我認為部分原因是我們對中小型市場保險公司的風險偏好，一般來說，我們大多數業務的目標都是這些保險公司。我們不會對這些保險公司設定過高的限額。因此，對於某些法律體系來說，你可能沒有那麼大的目標——這樣下去。

And then it comes down to hard work. So when it comes to underwriting, you're going through the submission and you're underwriting. You're actually paying attention to where that [insure] is in terms of venues, what their work is covering what their work is and not what they don't do. They might get kind of slotted in there. In claims, we're doing investigation early in that claim line.

然後就歸結為努力工作。因此，當涉及到承保時，您將完成提交並承保。你實際上關注的是[確保]在場地方面的位置，他們的工作涵蓋了他們的工作是什麼，而不是他們不做什麼。他們可能會被安排在那裡。在索賠方面，我們正在該索賠行的早期進行調查。

We are strategizing around knowing that the plant's attorney has a playbook and we know that we can counteract that playbook by getting the investigation early staying ahead of public adjusters as an example, offering up a reasonable settlement a proper time and trying to be in that contact with our insurers to resolve those claims.

我們正在製定策略，因為我們知道工廠的律師有一個劇本，我們知道我們可以透過儘早進行調查來抵消劇本，例如在公共理賠員之前進行調查，在適當的時間提供合理的解決方案並嘗試保持聯繫與我們的保險公司一起解決這些索賠。

So it's really about kind of being diligent going deep into our processes, whereas underwriting our clients and also our risk appetite so that we're not as much of a target and then those cases do come up where they look a little here, we know how to address that and try to resolve the claim prior to getting kind of out control.

因此，這實際上是要勤奮地深入我們的流程，同時承保我們的客戶和我們的風險偏好，這樣我們就不會成為目標，然後這些案例確實會出現在他們看起來有點像這裡的地方，我們知道如何解決這個問題並在失控之前嘗試解決索賠。

The only thing I would add, I think Jen talked about it in her opener as well, and Craig spoke to it just a moment ago. Where we are, we tend to be a little bit slow, we believe, in recognizing good news. We are extending the reporting balances in some of the auto and excess liability areas where we have seen a bit higher emergence, maybe not to the level of others. But we have seen a few things there.

我唯一要補充的是，我想珍也在她的開場白中談到了這一點，克雷格剛才也談到了這一點。我們認為，就目前情況而言，我們在認識好消息方面往往有點慢。我們正在擴大一些汽車和超額責任領域的報告餘額，我們發現這些領域的出現率較高，但可能沒有達到其他領域的水平。但我們在那裡看到了一些事情。

So we believe it is prudent to be a bit cautious there. So you do see that a little bit lower from a favorable development on the casualty side compared to third quarter of last year. And third quarter of last year, this moved around a bit. The process is consistent, but we had significant favorable on EPG third quarter of last year, I think about $9 million.

因此，我們認為在此方面保持謹慎是明智的做法。因此，與去年第三季相比，您確實看到傷亡方面的有利發展有所下降。去年第三季度，情況發生了一些變化。這個過程是一致的，但我們在去年第三季的 EPG 上獲得了很大的優惠，我認為約為 900 萬美元。

So that accounts for a lot of the difference here, quarter-to-quarter, we take a consistent approach. We are cautious or prudent and where we set the initial booking ratios, we believe we may be a bit slower to move off of that. So that, I think, helps -- has helped historically with some of the consistency you'd have seen.

因此，這解釋了這裡的很大差異，每個季度我們都採取一致的方法。我們是謹慎或審慎的，在我們設定初始預訂比率的情況下，我們相信我們的改變速度可能會慢一些。所以，我認為，這有助於——從歷史上看，這有助於實現你所看到的一些一致性。

And again, I would add one more thing. I think we're adamant of getting information in the hands of our underwriters and because of our business model, because our underwriters are focused on underwriting profit, they listen for one thing, maybe their ego is a bit in check in regards to those conversations and they're wanting to try to continue to grow underwriting profit.

再次，我想補充一件事。我認為我們堅持將訊息交到承銷商手中，由於我們的商業模式，因為我們的承銷商專注於承保利潤，他們會傾聽一件事，也許他們的自尊心在這些對話方面受到了一些限制他們希望嘗試繼續增加承保利潤。

And I think Jen mentioned, I mean, obviously we manage our limits. We're not a big limit carrier. We don't put out really big limits. We avoid deep pocket insurance for the most part, manage our jurisdictions and our underwriters do a pretty good job of overall managing our exposure to, I'll say this -- the legal system of use.

我認為 Jen 提到，我的意思是，顯然我們管理著我們的極限。我們不是一家大型限價承運人。我們並沒有設定很大的限制。我們在很大程度上避免了財力雄厚的保險，管理我們的司法管轄區，我們的承保人在全面管理我們的風險敞口方面做得相當好，我想說的是——使用的法律制度。

However, we are not immune. All we can do is mitigate and either both through our underwriters who have the information and exceptional claim people who try to get the best outcomes for the company, we do a pretty good job.

然而，我們也不能倖免。我們所能做的就是減輕影響，或者透過擁有資訊的承銷商和試圖為公司獲得最佳結果的特殊索賠人員，我們做得相當不錯。

Michael Phillips, Oppenheimer.

麥可·菲利普斯，奧本海默。

Maybe a little bit more on -- some comment -- you actually just made a couple of comments on the extended reporting patterns in the Casualty. And I guess I want to ask on that with the backdrop of some prior quarters where you've talked about having to monitor the tail. So when you talk about the extended reporting patterns, are you talking specifically sort of late reporting from older accident years? Or is it more recent accident years where you're being a little more cautious there? Thank you.

也許更多一點——一些評論——你實際上只是對傷亡的擴展報告模式發表了一些評論。我想我想在之前幾季的背景下問這個問題，您曾談到必須監控尾部。因此，當您談論擴展報告模式時，您是在具體談論較早事故年份的延遲報告嗎？還是最近幾年發生了事故，您變得更加謹慎了？謝謝。

I would say, yes. It's a little bit of both from that standpoint. And we talked kind of the reporting patterns that you mentioned or extending the tail, that's the same. I mean we're just some of the business that excess liability that we write in [Altese], that can have a longer tail to it, slower to get to finality from that standpoint whether it was COVID or post-COVID, whether you see the course being a bit slowed, lots of things on the wheel space, Jen talked about some of that. It just -- you go a little bit slower on how long it may take for those claims to settle. So that can -- (inaudible).

我會說，是的。從這個角度來看，兩者都有一點。我們討論了您提到的報告模式或延長尾部，這是相同的。我的意思是，我們只是我們在[Altese]中寫的超額責任業務中的一部分，它可能有更長的尾巴，從這個角度來看，無論是在新冠疫情期間還是在新冠疫情之後，無論你是否看到，最終確定的速度都會較慢賽道有點慢，方向盤上有很多東西，Jen 談到了其中的一些。只是——你在解決這些索賠可能需要多長時間方面走得慢一點。這樣就可以——（聽不清楚）。

Yes. So I would just add that I think that -- I'm not sure that we have seen in our data that the actual reporting pattern is longer. I mean you've got to wipe out some of the COVID stuff because that messed up some of the numbers. But certainly, the development, the time it takes to get final resolution of claims.

是的。所以我想補充一點，我認為 - 我不確定我們在數據中是否看到實際的報告模式更長。我的意思是你必須清除一些新冠病毒的東西，因為這弄亂了一些數字。但當然，發展以及最終解決索賠所需的時間。

I think that takes longer. People hanging out waiting for a jackpot sometimes, and we're trying to get claim resolution and it depends how hard that power of attorney is pushing and they can be can take a while. So that's why we're trying to reflect that in our loss development patterns.

我認為這需要更長的時間。有時人們會等待中獎，我們正在努力解決索賠問題，這取決於授權書的推動程度，並且可能需要一段時間。這就是為什麼我們試圖在我們的損失發展模式中反映這一點。

Okay. I guess, specifically on your commercial excess book, can you say what you're seeing there for current kind of severity trends there and maybe how that compares to what you thought just a few years ago?

好的。我想，特別是在你的商業過剩書中，你能說出你所看到的當前嚴重趨勢嗎？

Well, on -- liability book, we're focused a lot on construction where you're in a project and a lot of it is project business, but some of them are practice policies where you're ensuring the contractor for all of the work that they do throughout the year. So there's a mix within that book. But a lot of it is construction related. So you do have some -- entry where someone gets hurt on the construction site.

嗯，在責任書上，我們非常關注專案中的施工，其中許多是專案業務，但其中一些是實踐政策，您可以確保承包商承擔所有責任他們全年所做的工作。所以那本書裡有一些混合。但其中很多都與建築有關。所以你確實有一些——有人在建築工地上受傷的入口。

But I would say from a -- in terms of trend, we're not seeing a lot of change in that trend. The trend difference. I think that we've seen in our book is more about auto than it is about like your traditional excess liability coverages.

但我想說，就趨勢而言，我們沒有看到該趨勢發生很大變化。趨勢差異。我認為我們在書中看到的更多是關於汽車而不是傳統的超額責任保險。

Gregory Peters, Raymond James.

格雷戈里彼得斯，雷蒙德詹姆斯。

Good morning, everyone. So I just I guess, building on the last answer. Just you mentioned construction. And I guess this is to step back, I'm interested in the areas of growth and your general liability and transportation lines because there can be a lot of different types of business that are included in there, and I think you're pretty specific.

大家早安。所以我只是猜測，以最後一個答案為基礎。剛才你提到了建築。我想這是退後一步，我對成長領域以及您的一般責任和運輸線路感興趣，因為其中可能包含許多不同類型的業務，而且我認為您非常具體。

In construction, are you focused on GC or are you getting involved in subcontractors? Are you geographically focused. Can you give us some color there? And then pivot to the transportation book. I assume you're not writing taxi cabs or limos, but maybe if you could give us some color on what you're getting involved with on transportation as well.

在建築領域，您是專注於 GC 還是參與分包商？您是否專注於地理位置？你能給我們一些顏色嗎？然後轉向運輸書。我假設你不是在寫計程車或豪華轎車，但也許你能給我們一些關於你在交通方面所涉及的內容的資訊。

Sure. This is Jim. So on the construction side, we have actually a very diverse portfolio of construction businesses. I would say a little -- probably a little bit less than 1/3 of our entire portfolio is focused on construction. In the surety space, we focus on public construction on the insurance side of the house, we focus more on private construction. We're in all regions of the country, but each region kind of acts differently in terms of the areas of investment, our areas of the coast are being invested in. I'd say the great state of Illinois where we're sitting today, not so much investment.

當然。這是吉姆。因此，在建築方面，我們實際上擁有非常多樣化的建築業務組合。我想說一點——我們整個投資組合中可能有不到 1/3 的部分專注於建築。在擔保領域，我們專注於房屋保險的公共建築，我們更關注私人建築。我們遍佈全國所有地區，但每個地區在投資領域的表現有所不同，我們的沿海地區正在投資。我想說的是，我們今天所在的伊利諾州並沒有那麼多投資。

If you look at our E&S businesses, we tend to focus on general contractors. If you look at our admitted businesses, we tend to focus on subcontractors. So those are the general guidelines in the general landscape of our construction book. You can see we depending on the type of insured and the region and the type of project, we kind of focus on what type of coverage we're comfortable providing.

如果你看看我們的 E&S 業務，我們傾向於關注總承包商。如果你看看我們承認的業務，我們傾向於關注分包商。這些是我們建造手冊總體景觀中的一般準則。您可以看到，根據被保險人的類型、地區和項目的類型，我們專注於我們願意提供的保險類型。

So it's a very diverse book which makes it hard to talk about globally in terms of how it's doing. But if I were to say something, -- I would say, overall, we keep waiting for construction to slow as an industry. And I would say, particularly on the public side and the -- , it remains very healthy. The private side has been -- had a lower investment rate lately. We've had more issues with financing and things of that nature.

因此，這是一本非常多樣化的書，因此很難在全球範圍內談論它的表現。但如果我要說的話，我會說，總的來說，我們一直在等待建築業放緩。我想說，特別是在公共方面，它仍然非常健康。私人方面最近的投資率較低。我們在融資和類似問題上遇到了更多問題。

And so it's been a little slower. But again, we continue to be in consistent market that our producers can use, whereas some of our competitors have been in and out. So that's allowed us to continue to grow despite maybe the underlying market being a little slow on the private side.

所以速度有點慢。但同樣，我們仍然處於我們的生產商可以使用的一致市場中，而我們的一些競爭對手已經進進出出。因此，這使我們能夠繼續成長，儘管私人市場的基礎市場可能有點緩慢。

Then transitioning over to transportation. We do focus on some major buckets. So we do have a truck largely truck group. We have a public group, which enters a lot of transforms and buses. And we have our commercial specialty auto, which is kind of a hodge podge of classes, although it does not include -- does not include taxis, just to be clear. And there's very little, if no, mineral exposure there as well.

然後轉向交通。我們確實專注於一些主要領域。所以我們確實有一個主要是卡車組。我們有一個公共組，它輸入了很多變換和總線。我們有我們的商用特種汽車，它是各種類別的大雜燴，儘管它不包括——不包括出租車，只是需要澄清一下。而且那裡的礦物質暴露量即使沒有也很少。

It's really few classes that we tend to be good at such as (the ambulance) or construction fleece -- nature, but there's a lot of different classes within that book. More recently, we invested in a focus on moving and storage business. And also, we provide a little bit of E&S availability as well given that market has gone through a lot of turmoil, and I think we'll continue to so there might be some accounts that move naturally towards the inner state. And so we have an answer for that as well, we offer for that. So that kind of lays out, I think, both of those books, but I'm happy to answer any other questions on those.

我們真正擅長的課程很少，例如（救護車）或建築羊毛 - 自然，但那本書中有很多不同的課程。最近，我們重點投資於行動和倉儲業務。而且，鑑於市場經歷了許多動盪，我們還提供了一些 E&S 可用性，我認為我們將繼續這樣做，因此可能會有一些帳戶自然地轉向內部狀態。所以我們也有一個答案，我們為此提供。我認為這兩本書都是這樣的，但我很樂意回答有關這些書的任何其他問題。

Well, actually, that's great detail. I also wanted to pivot my second follow-up question relates to another comment you made, Jen. You talked about investments in technology. It's such a big comment that includes a lot of information, but we very rarely get any details on what's actually going inside of those investments. You talked about how these investments are generating, help you generating growth opportunities. Maybe you can give us the 30 second pitch on what you're investing in and why it's able to deliver growth opportunities for you?

嗯，實際上，這是非常詳細的。我還想將我的第二個後續問題轉向與你發表的另一條評論相關的問題，Jen。您談到了技術投資。這是一個包含大量資訊的大評論，但我們很少獲得有關這些投資實際情況的任何細節。您談到了這些投資是如何產生的，如何幫助您創造成長機會。也許您可以用 30 秒的時間向我們介紹您正在投資的專案以及為什麼它能夠為您帶來成長機會？

Sure. So like every question about RLI, it's hard to answer because it's specific to each business unit. -- I'll give you a couple of examples here. So in our personal, -- which has been a lot of growth, we've done a lot of investing in the front line there. The application that the insurer goes through to fill it out the order of the question.

當然。因此，就像有關 RLI 的每個問題一樣，很難回答，因為它特定於每個業務部門。 ——我在這裡舉幾個例子給你聽。因此，就我們個人而言，我們已經取得了很大的成長，我們在一線進行了大量投資。保險公司填寫問題順序的申請表。

So some of the technology comes in the process. The order the questions we have to ask every single question, eliminate a few and then we provide a system that is very user-friendly and similar to what you see in other industries that you might use on a personal basis. So there's been a lot of investment there. And then for that policy to kind of go through our systems without being touched too many times.

所以一些技術就出現在這個過程中。我們必須問每個問題，消除一些問題，然後我們提供一個非常用戶友好的系統，並且類似於您在其他行業中看到的您可能個人使用的系統。所以那裡有很多投資。然後讓該政策通過我們的系統，而不會被觸及太多次。

If you look at other places, we have a contractors application similarly where we have redone the application process and got input from our producers to say, how do you actually use our system. And then we reconfigure the system using newer technology that supports a better experience so that, again, we can capture that business at the level we need to upfront and have it flow through our systems without against too many touches.

如果你看看其他地方，我們有一個類似的承包商申請，我們重新完成了申請流程，並從我們的生產商那裡得到了輸入，告訴你，你實際上是如何使用我們的系統的。然後，我們使用支援更好體驗的更新技術重新配置系統，以便我們能夠在預先需要的層級捕獲該業務，並讓它在我們的系統中流動，而無需進行太多接觸。

I'll give you one more, which is in our marine division where we -- there's a lot of steps actually issuing a policy, and we have basically taken work off of the underwriter's desk and help those qualities get issued more quickly so that the underwriter can focus more on marketing and underwriting versus all the follow up that's required to actually service that business.

我再給你一個，在我們的海事部門，我們實際上有很多步驟來簽發保單，我們基本上已經從承保人的辦公桌上卸下了工作，並幫助這些質量更快地簽發，以便承銷商可以更專注於行銷和承保，而不是實際服務該業務所需的所有後續工作。

So it's basically an emphasis here at ROI for continuous improvement and to take time. So focusing on your inbox to actually step back and look at processes and see how we can make them better, faster, so that we can have the right people doing the right jobs when they need to.

因此，投資報酬率基本上強調持續改進並需要時間。因此，專注於您的收件匣，真正退後一步，查看流程，看看我們如何讓它們變得更好、更快，以便我們可以讓合適的人在需要時做合適的工作。

Meyer Shields, KBW.

邁耶·希爾茲，KBW。

This is Gene on for Meyer. Just have follow-up questions on casualty segments. You talked about a lot of favorable reserve development. I was just curious about the accident year loss ratio on casualty segment. Just pick up on kind of like sequentially in year-over-year. I'm just wondering, is it just a prudence on you have baked in the logic. Any color you can provide there will be great. (technical difficulty)

這是邁耶的吉恩。只是有關於傷亡部分的後續問題。您談到了很多有利的儲備開發。我只是對傷亡部分的事故年損失率感到好奇。只需逐年按順序進行類似操作即可。我只是想知道，這是否只是你在邏輯上的謹慎考慮。你能提供的任何顏色都會很棒。（技術難度）

Yes. Thank you. This is Todd. It is, we believe, prudent from that standpoint. If you do the comparative, the current accident year on casualty quarter-to-quarter, is up 1.5 to 2 points with some second half increases that we made in the loss booking ratio. That is done for the entirety of the calendar year.

是的。謝謝。這是托德。我們認為，從這個角度來看，這是謹慎的。如果進行比較，目前事故年度的傷亡人數較上月上升了 1.5 至 2 個百分點，下半年我們的損失登記比率有所增加。這是在整個日曆年中完成的。

So the [accident] year. So if you think about it, if you do it in the third quarter, it's retro to the first part of the year. So you'll see a little bit more of a spike in the quarter. And some of it really is kind of what we've been talking about from a real state standpoint, we believe, prudent there, and that will have an influence.

所以是[事故]年。所以如果你想一想，如果你在第三季這樣做，那就是今年上半年的復古。因此，您會在本季度看到更多的峰值。其中一些確實是我們從現實國家的角度一直在談論的內容，我們相信，謹慎行事，這將會產生影響。

If you go to the fourth quarter of last year, -- if you look at full year, 2023, we're actually about with this increase about on par with where we ended the year from an underlying loss ratio on Casualty. So nothing alarming there. I think certainly being prudent in our approach to reserving the current accident here.

如果你看看去年第四季度，如果你看看 2023 年全年，我們實際上會發現這一增長與我們年底的基本傷亡損失率持平。所以沒有什麼好警惕的。我認為我們在保留當前事故的方法上肯定是謹慎的。

Got it. I have a follow-up specifically on commercial auto. Like given competitors noted that was a severity trend. Can you please provide some colors of what you're seeing in your book?

知道了。我有一個專門針對商用汽車的後續行動。就像競爭對手指出的那樣，這是一個嚴重的趨勢。您能提供一些您在書中看到的顏色嗎？

So it's the very trends in our commercial auto book because competitors are seeing some severity. I mean we do see some severity as well. I think I'm not sure everybody else does business, but when you look at our commercial auto business, the one thing that I would point to that we've added over the last few years is our internal loss control resources where our underwriting really listens to people who contact our potential insurers or our renewals before the renewal takes place to say, what are you doing with your business in terms of training drivers, maintain your vehicles, all the things that it takes to run a safe operation.

這就是我們商用汽車書中的趨勢，因為競爭對手已經看到了一些嚴重性。我的意思是我們確實也看到了一些嚴重性。我想我不確定其他人都在做生意，但是當你看看我們的商用汽車業務時，我會指出我們在過去幾年中增加的一件事是我們的內部損失控制資源，我們的承保確實聽取在續保之前聯繫我們的潛在保險公司或我們的續保的人的意見，您的業務在培訓司機、維護車輛以及安全運營所需的所有事項方面做了哪些工作。

And so our underwriters have the input as they renew. And some of the things that you learned in that process point to potential severity.

因此，我們的承銷商在續約時會提供意見。您在過程中學到的一些東西表明了潛在的​​嚴重性。

You can see where you're not investing in training of your drivers, for example, that's a terrible story in front of a jury when you have a claimant that's injured in front of you. So I think the quality of the insured can be evaluated through that process. And then it just comes down to pushing our key freezers have to get up timing. So we know what the losses are is we're pricing the business. And then our team, our underwriting team is focused on getting rate because they know that the severity is up.

您可以看到您在司機培訓方面沒有投資的地方，例如，當您面前有一名受傷的索賠人時，這在陪審團面前是一個可怕的故事。所以我認為可以透過這個過程來評估被保險人的素質。然後歸根結底就是推動我們的關鍵冰箱必須起床。所以我們知道損失是多少，因為我們正在為業務定價。然後我們的團隊，我們的核保團隊專注於獲得費率，因為他們知道嚴重性已經上升。

It also comes down to risk selection though, too. We don't have top line goals here at RLI in any of our business units. I think it's particularly important in our auto division where, yes, rates are up. So people saying, I can grow. This is great. I can grow my top line, but we've actually gotten off of several of our largest accounts because they don't make sense anymore.

不過，這也歸結為風險選擇。在 RLI，我們的任何業務部門都沒有最高目標。我認為這對我們的汽車部門尤其重要，是的，利率上漲了。所以人們說，我可以成長。這太棒了。我可以增加我的收入，但我們實際上已經放棄了幾個最大的帳戶，因為它們不再有意義了。

Somebody is going to undercut us with the rate or they're just not a quality insured anymore. So we're walking away from that premium because that's the right thing to do because we think that, that severity could happen for those accounts. So I can't speak to what competitors are doing, but that gives you some insight into what we're doing.

有人會以低於我們的價格，或者他們不再是品質保證。因此，我們放棄了這項溢價，因為這是正確的做法，因為我們認為，這些帳戶可能會發生這種嚴重情況。因此，我無法談論競爭對手正在做什麼，但這可以讓您了解我們正在做什麼。

I mean all I would offer is -- I have been in this business for about 38, 39 years is the only place I've ever worked toward the underwriter is telling the claim people to get the money up if it needs to go up as soon as possible.

我的意思是，我能提供的是——我從事這個行業已經有大約 38、39 年了，我唯一為承保人工作過的地方就是告訴索賠人，如果需要上漲的話，就可以把錢上漲。盡快。

So as Jen pointed out, they use that business to price the account and to try to factor in risk. And they want to know if a claim is going to be a bad loss, they want to be able to factor that in as they renew the account price for the product. So our underwriters demand that our claim people get money up as quickly as possible.

因此，正如 Jen 指出的那樣，他們利用該業務來為帳戶定價並嘗試考慮風險。他們想知道索賠是否會造成嚴重損失，他們希望能夠在更新產品的帳戶價格時將其考慮在內。因此，我們的承保人要求我們的理賠人員盡快獲得資金。

Andrew Andersen, Jefferies.

安德魯安德森，杰弗里斯。

Maybe on the casualty rate, you called out 9%, which was consistent quarter-over-quarter. But I thought I heard you say that rate change is keeping up with loss I would have thought 9% would be ahead of that. Could you kind of help us think through that?

也許在傷亡率方面，您提到了 9%，這與季度相比是一致的。但我想我聽到你說利率變化跟上了損失，我以為 9% 會提前。您能幫我們想一下嗎？

Well, explaining how we do loss trend here. We look at a lot of industry results to hear loss trend here and then we compare it to our book. Now that we don't have the best data in the industry, some of our divisions are a very niche product where we have only our data. It doesn't really compare the industry.

好吧，解釋一下我們如何在這裡計算損失趨勢。我們查看了大量的行業結果來了解損失趨勢，然後將其與我們的書進行比較。現在我們沒有業內最好的數據，我們的一些部門是一個非常利基的產品，我們只有我們的數據。確實不能比較行業。

So when we look at our own severity and our loss trend and our results, it tends to be a little lower in reality than this the numbers that we select to say, hey, lost term is probably going to be this. So the 9% is keeping up with our actual experience. When we talk about loss trend and we talk to our units, we probably talk like we reflect also industry results.

因此，當我們審視自己的嚴重性、損失趨勢和結果時，實際上往往比這個數字要低一些，我們選擇說的數字是，嘿，損失項可能就是這樣。所以9%是符合我們實際體驗的。當我們談論損失趨勢並與我們的部門交談時，我們可能會說我們也反映了行業結果。

Okay. And then maybe just curious what you're expecting to see in the reinsurance market at 1,1, whether it be pricing or perhaps changes to premium retention. Maybe any early views you may have?

好的。然後也許只是好奇您期望在 1,1 的再保險市場中看到什麼，無論是定價還是保費保留的變化。也許您有什麼早期的看法？

Well, at the full end market, the reinsurance right now, we have, we're in discussions with our reinsurers as we speak. So it's a little early to say. There was a lot of positioning by the reinsurers earlier this season with regard to casualty, I think that's quieted down a little bit. I think property, it looks like we like the whole industry might get a little bit of relief there.

嗯，在完整的終端市場，現在的再保險，我們正在與我們的再保險公司進行討論。所以現在說還太早。本季度早些時候，再保險公司就傷亡問題做出了很多定位，我認為這已經平靜了一些。我認為房地產行業，看起來整個行業可能會得到一點緩解。

But with these events, maybe that will be more stable to be, my guess, I think when it comes to retention, reinsurers are not going to budge on retention. So I think we are where we are. So I would characterize the market probably as stable with regard to our 1,1 renewals.

但隨著這些事件的發生，也許情況會更加穩定，我猜，我認為在保留方面，再保險公司不會在保留方面讓步。所以我認為我們現在所處的位置。因此，就我們的 1,1 續約而言，我認為市場可能是穩定的。

Okay. And maybe just two more questions on investment portfolio. As you think about the growth in casualty is outpacing property right now and duration has kind of ticked up the last couple of years. Would you be surprised to see that go above 5 as we kind of enter 2025?

好的。也許還有兩個關於投資組合的問題。想想看，現在傷亡人數的成長速度超過了財產的成長速度，而且過去幾年的持續時間有所增加。當我們進入 2025 年時，如果看到這個數字超過 5，您會感到驚訝嗎？

Well, I think what we're focused on right now is to maintain durability of the income profile, and that's why you've seen the duration tick up a bit throughout this last year. There will be some point in time where cash is not offering the returns that we've seen lately. And so us terming out that maturity profile is an important part of our near-term strategy.

嗯，我認為我們現在關注的是保持收入狀況的持久性，這就是為什麼你會看到去年的持續時間略有增加。在某個時間點，現金將無法提供我們最近看到的回報。因此，我們認為成熟度概況是我們近期策略的重要組成部分。

To the extent can we get all the way to 5 or above 5, we've been there in the past. So that's not unusual for us based on balance sheet and the strength of our capital base. We certainly have been near that level but we're not that far away from it now at 4.8 years. So that's a nuanced difference, I'll call it, and not necessarily driven by quarter-to-quarter growth in casualty necessarily.

如果我們能一直達到 5 或 5 以上，我們過去就達到這樣的水準。因此，根據資產負債表和我們的資本基礎實力，這對我們來說並不罕見。我們當然已經接近這個水平，但現在距離 4.8 年也不遠了。因此，我稱之為細微差別，並且不一定是由傷亡人數逐季度增長所驅動的。

Yes. And last, have you shared how much of the investment portfolio is floating rate?

是的。最後，您是否分享了投資組合中有多少是浮動利率的？

We have a small amount of floating rate exposure. It's around 4% of the fixed income portfolio and largely comprised of senior secured bank loans, that's the bulk of that exposure, a smaller amount in the CLO space and then a few structured products that have a floating rate coupon to them.

我們有少量的浮動利率風險敞口。它約佔固定收益投資組合的 4%，主要由高級擔保銀行貸款組成，這是該風險敞口的大部分，CLO 領域的金額較小，然後是一些具有浮動利率優惠券的結構性產品。

Scott Heleniak, RBC.

斯科特·海倫尼克，加拿大皇家銀行。

Thanks. Just wanted to touch on the property combined ratio was really good, 77.2% despite the Helene and Beryl losses you had in there. I know you had a little bit of benefit from reserve releases, but anything else in there that was the benefit like non-cat weather or lower fire losses or anything in there that kind of drove that, come to mind?

謝謝。只是想談談財產綜合比率非常好，儘管海倫和貝麗爾損失了 77.2%。我知道你從儲備釋放中得到了一點好處，但是還有其他什麼好處，比如非貓天氣或較低的火災損失或任何推動這一點的東西，你想到了嗎？

Yes. I think there is significant growth on the revenue side, if you think of -- in total, or the win premium we're writing. I think the result of that is there's a lot there to cover, whether it's the hurricane losses or attritional losses. So I think the growth in that portfolio is really what's driving.

是的。我認為，如果你考慮總收入或我們正在撰寫的獲勝溢價，收入方面會有顯著增長。我認為這樣做的結果是有很多事情需要彌補，無論是颶風損失還是自然損失。所以我認為該投資組合的成長才是真正的推動力。

And the rate -- I mean, gotten the last few years -- sorry, just the exposure growth is longer (technical difficulty).

我的意思是，過去幾年得到的比率 - 抱歉，只是暴露增長更長（技術難度）。

Right. Okay. And just on the Milton loss of $45 million to $55 million, can you just talk a little bit about your Florida exposure in terms of how close to the coast you're writing, I assume a fair amount of these losses would probably be marine. But any other color you can give on that forecast and just how you're thinking about the Florida market in general after this?

正確的。好的。就米爾頓4500 萬至5500 萬美元的損失而言，您能簡單談談您在佛羅裡達州的風險嗎？海洋損失。但是您可以對這一預測給出任何其他顏色，以及在此之後您對佛羅裡達市場的整體看法嗎？

Sure. This is Jen. So when you look at our Florida exposure, as you may have heard earlier this year, we had actually been decreasing our exposure for a couple of reasons. One was the market was getting more competitive, particularly MGAs trying to take advantage of that nice pricing that we had, but they were cutting into a little bit, both the pricing in terms of commissions.

當然。這是珍。因此，當您查看我們在佛羅裡達州的風險敞口時，正如您今年早些時候可能聽說的那樣，我們實際上一直在減少風險敞口，原因有幾個。一是市場競爭變得更加激烈，特別是 MGA 試圖利用我們擁有的優惠定價，但他們正在削減一點，無論是佣金方面的定價。

So we start to walk away from a handful of accounts. And so our exposure, if you look at the Florida region and you count of policy limits, for example, we were down about 20% from the end of last year. which set us up for this wind season was a little bit less exposure than we had last year.

所以我們開始放棄一些帳戶。例如，如果你看看佛羅裡達地區併計算政策限制，我們的風險敞口比去年年底下降了約 20%。為我們這個風季做好準備的暴露程度比去年要少一些。

If you look at where we're right, we've -- a lot of coastal exposure because we are in an E&S wind market. We do cover commercial buildings. So we don't do the home owners, which is the -- . If you look at the Milton event itself, it's a lot of wins, which is what we're trying to cover. So that's a traditional event that we would expect to have and expect to respond to.

如果你看看我們的正確位置，你會發現我們擁有大量沿海風險，因為我們處於 E&S 風電市場。我們確實覆蓋商業建築。所以我們不做房主，這是——。如果你看看米爾頓賽事本身，你會發現它取得了許多勝利，這正是我們想要報導的內容。因此，這是我們期望發生並期望做出回應的傳統事件。

The event itself was not very large. It did hit some commercial, but it hit a lot of residential areas, too, when you get away from that long okay area. So within the local area of landfill, there was like commercial buildings with it and is spread out a lot of residential actually picked up. So I'm expecting probably the residential loss to be larger than the commercial loans.

活動本身規模並不是很大。它確實襲擊了一些商業區，但當你離開那個長長的好區域時，它也襲擊了許多住宅區。因此，在垃圾掩埋場的當地範圍內，有類似的商業建築，並且散佈著許多實際上被拾起的住宅。因此，我預計住宅損失可能比商業貸款更大。

Again, it's very early to say what is that market going to be like. We are committed to the Florida and hurricane market. We've collected a lot of premium over the years, so we are ready to stand and pay losses when those happen. You can't get premiums unless you pay losses.

再說一次，現在說這個市場會是什麼樣子還太早。我們致力於佛羅裡達和颶風市場。多年來我們收取了大量保費，因此我們準備好在發生這種情況時承擔並支付損失。除非您支付損失，否則您無法獲得保費。

So we are ready to continue in that market. Our processes are mature with our underwriters, claims, actuarial support, et cetera. So we're ready to respond to what that market brings, but it's too early to say what will happen with rates or in terms of conditions after the event. Again, I'm hoping that it stabilizes and that would be a great scenario for us. It's a very adequate pricing as we speak. So we'd like to stay where we're at.

因此，我們準備繼續進軍該市場。我們的流程在承保人、索賠、精算支援等方面都很成熟。因此，我們已準備好應對市場帶來的變化，但現在判斷利率或事件發生後的情況會發生什麼還為時過早。我再次希望它能夠穩定下來，這對我們來說將是一個很好的場景。正如我們所說，這是一個非常合適的定價。所以我們想留在現在的地方。

(Operator Instructions) If there are no further questions, I will now turn the conference over to Mr. Craig Kliethermes for some closing remarks.

（操作員指示）如果沒有其他問題，我現在將會議轉交給 Craig Kliethermes 先生做總結發言。

Well, thanks to everyone who joined us today. The financial results we reported yesterday reflect our organizational resiliency. Consistent profitability and top line growth are a testament to our diversified specialty product portfolio our deep underwriting claim expertise in our chosen markets and a willingness to prudently lean into disruption, where we understand the exposures and the market environment.

好的，感謝今天加入我們的所有人。我們昨天報告的財務表現反映了我們的組織彈性。持續的獲利能力和營收成長證明了我們多元化的專業產品組合、我們在所選市場的深厚承保理賠專業知識，以及我們了解風險敞口和市場環境、謹慎應對顛覆的意願。

Consistency also comes as a result of maintaining underwriting discipline when the market is too soft and a willingness to prune unprofitable business when necessary. Our disciplined commitment to make the best long-term decisions for our customers and our shareholders has served us well and differentiates our ownership culture.

一致性也源於在市場過於疲軟時維持承保紀律以及在必要時願意修剪無利可圖的業務的結果。我們恪守為客戶和股東做出最佳長期決策的承諾，這對我們很有幫助，並使我們的所有權文化與眾不同。

I am proud of our associate owners efforts this quarter and particularly our outreach to our customers in need during these recent natural catastrophes. RLI is committed to being different because being different continues to work. Look forward to visiting with you all next quarter. Thank you.

我為我們的合夥人本季的努力感到自豪，特別是我們在最近的自然災害期間向有需要的客戶提供的服務。RLI 致力於與眾不同，因為與眾不同會持續發揮作用。期待下個季度與大家見面。謝謝。

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

女士們先生們，如果您希望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。