RLI Corp (RLI) 2026 Q1 法說會逐字稿

Good morning, and welcome to the RLI Corp. first quarter earnings teleconference. (Operator Instructions) 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. As always, these forward-looking statements are subject to certain factors and uncertainties, which could cause actual results to differ materially. Please refer to the risk factors described in the company's various SEC filings, including in the annual report on Form 10-K as supplemented in Forms 10-Q, all of which should be reviewed carefully.

早安，歡迎參加 RLI Corp. 第一季財報電話會議。（接線員指示）在開始之前，提醒各位，在本次電話會議過程中，RLI 管理層可能會發表反映其對未來之意圖、信念與預期的評論。如同以往，這些前瞻性陳述受制於若干因素與不確定性，可能導致實際結果出現重大差異。請參閱公司向 SEC 提交之各項文件中所述的風險因素，包括 Form 10-K 年報及 Form 10-Q 的補充內容，並請務必仔細閱讀。

The company has filed a Form 8-K with the Securities and Exchange Commission that contains the press release announcing fourth quarter results. 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. Additionally, equity and earnings of unconsolidated investees and related taxes are excluded from operating earnings and operating EPs to present a consistent approach in excluding all unrealized changes in value from equity investments. 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.

公司已向美國證券交易委員會（Securities and Exchange Commission）提交 Form 8-K，其中包含公布第四季業績的新聞稿。於本次電話會議中，RLI 管理層可能會提及營運盈餘（operating earnings）及營運每股盈餘（earnings per share from operations），此為非 GAAP 的財務結果衡量指標。RLI 的營運盈餘及營運每股盈餘係指在扣除稅後已實現損益，以及權益證券之稅後未實現損益後之淨利。此外，未合併被投資公司（unconsolidated investees）的權益與損益及相關稅負亦自營運盈餘與營運每股盈餘中排除，以一致方式排除來自權益投資之所有未實現價值變動。RLI 管理層認為，這些指標有助於衡量各報導期間的核心營運表現，但可能無法與其他公司對營運盈餘之定義相互比較。

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 the conference over to RLI's President and Chief Executive Officer, Mr. Craig Kliethermes. Please go ahead.

該 Form 8-K 包含營運盈餘與淨利之間的調節表。Form 8-K 與新聞稿可於公司網站 www.rlicorp.com 取得。接下來我將把會議交給 RLI 總裁兼執行長 Craig Kliethermes 先生。請開始。

Good afternoon, everyone. We appreciate you being with us today. With me are Aaron Diefenthaler, our Chief Financial Officer; and Jen Klobnak, our Chief Operating Officer. I'll begin by saying we feel good about how we started 2026 and the position we're in as we move through the year. For the quarter, we generated an 86% combined ratio.

各位午安。感謝各位今天與我們一同參與。與我一同出席的有我們的財務長 Aaron Diefenthaler，以及營運長 Jen Klobnak。我先說，我們對 2026 年的開局以及今年推進過程中的整體態勢感到滿意。本季我們的綜合比率為 86%。

Premiums grew 3%, led by casualty and net investment income increased 15%, continuing to be a meaningful contributor to overall results. Compared to a very strong first quarter last year, results were still excellent, but a bit more tempered, driven primarily by catastrophe activity, disciplined growth and normal variability that comes with taking on insurance risk. Stepping back, the underlying business is performing well and consistent with our expectations. The insurance marketplace continues to be dynamic. We're seeing more competition in some areas from broker-owned facilities and MGAs that operate with incentives that are not always aligned with long-term underwriting profitability.

保費成長 3%，主要由意外險（casualty）帶動；淨投資收益增加 15%，持續對整體結果做出重要貢獻。相較於去年非常強勁的第一季，本季結果仍然優異，但較為溫和，主要受災害事件（catastrophe）活動、紀律性成長，以及承擔保險風險所伴隨的正常波動所影響。從更宏觀的角度看，基本面業務表現良好，且符合我們的預期。保險市場仍持續動態變化。我們在某些領域看到來自經紀商自有承保平台（broker-owned facilities）與 MGA 的競爭加劇，而其運作激勵機制未必總是與長期承保獲利能力一致。

In the most competitive spaces, we are picking our spots, finding rate adequacy on accounts where it's still available, focusing on producer relationships and adding value to customers that want our expertise and service. We are seeing rate acceleration and market disruption in wheels-based products. There's opportunity here when done with discipline and vigilance. Our underwriting and claims expertise positions us to select the right accounts, achieve the rate we need and drive better claim outcomes over time. Adding to the general market disruption is the emergence and rapid adoption of artificial intelligence, along with the regulatory uncertainty that comes with it.

在競爭最激烈的領域，我們會選擇性布局，在仍可取得足夠費率的帳戶上尋求費率適足性（rate adequacy），聚焦於與生產者（producer）的關係，並為需要我們專業與服務的客戶創造附加價值。我們也看到以車輪為基礎的產品（wheels-based products）出現費率加速與市場擾動。若能以紀律與警覺執行，這裡存在機會。我們的核保與理賠專業使我們能挑選正確的帳戶、取得所需費率，並隨時間推進帶來更佳的理賠結果。除了整體市場的擾動之外，人工智慧的興起與快速採用，以及隨之而來的監管不確定性，也正在加劇變化。

We're encouraged by what we're seeing with AI, not as a headline, but as a tool. It's helping us put better data in the hands of decision-makers, making us more responsive, more efficient, easier to do business with while keeping human intelligence and judgment at the core of everything we do. Market dislocation creates opportunities for those with the confidence and financial strength to act. We have both. Our efforts will continue to be grounded in the same timeless core values that have guided RLI for over 60 years, community, customer focus and continuous improvement.

我們對 AI 所呈現的發展感到鼓舞，不是把它當作新聞標題，而是把它視為工具。它正協助我們把更好的資料交到決策者手中，使我們更具回應速度、更有效率、更容易與我們往來，同時仍以人類智慧與判斷作為我們一切工作的核心。市場錯位會為具備信心與財務實力、能夠採取行動者創造機會。我們兩者兼具。我們的努力將持續以同樣歷久彌新的核心價值為根基，這些價值已引領 RLI 超過 60 年：社區、以客戶為中心，以及持續改善。

We like the position we are in. We're seeing opportunities in the right places, and we believe we're well positioned to continue delivering consistent profitable results over time. With that, I'll turn it over to Aaron to walk through the financials in more detail.

我們喜歡目前所處的位置。我們在正確的地方看到機會，並相信我們具備良好條件，能在長期持續交付穩健且具獲利性的成果。接下來我把時間交給 Aaron，請他更詳細說明財務表現。

Thanks, Craig, and good afternoon, everyone. Last evening, our first quarter release reflected an increase in gross premiums of 3% with strong contributions from our Casualty segment. Operating earnings were $0.83 per share compared to $0.89 last year and supported by solid underwriting performance and a 15% increase in investment income. As a reminder, in the fourth quarter of 2025, we began to exclude earnings of unconsolidated investees from our definition of operating earnings. All comparables in our release reflect that change.

謝謝 Craig，各位午安。昨晚我們發布的第一季新聞稿顯示，總保費（gross premiums）增加 3%，其中意外險部門（Casualty segment）貢獻強勁。營運每股盈餘為 0.83 美元，去年同期為 0.89 美元，主要由穩健的核保表現與投資收益增加 15% 所支撐。提醒各位，我們在 2025 年第四季開始，將未合併被投資公司之損益自營運盈餘的定義中排除。我們新聞稿中的所有可比數據均已反映此一變更。

Underwriting income was $58 million in the quarter, benefiting from $35.5 million of favorable prior year reserve development, offset by $16 million of catastrophes and a higher underlying combined ratio. On a GAAP basis, first quarter net earnings totaled $0.60 per share compared to $0.68 in the year ago period. As was true in the first quarter of 2025, the largest driver of the differential from operating earnings was the negative return in our equity portfolio and the associated $39 million of unrealized losses. At the segment level, casualty growth totaled 10% for the quarter with significant contributions from personal umbrella and commercial transportation, both of which continue to benefit from rate increases. In terms of the underwriting results, casualty posted a 97% combined ratio, outperforming 2025 by 2 points and inclusive of higher levels of favorable prior year development at $14.5 million.

本季核保收益（underwriting income）為 5,800 萬美元，受惠於 3,550 萬美元的前期年度準備金有利發展（favorable prior year reserve development），但被 1,600 萬美元的災害損失以及較高的基礎綜合比率所抵銷。以 GAAP 基礎計算，第一季每股淨利為 0.60 美元，去年同期為 0.68 美元。如同 2025 年第一季，與營運盈餘差異的最大驅動因素為我們股票投資組合的負報酬，以及相關的 3,900 萬美元未實現損失。在部門層級，意外險本季成長 10%，其中個人超額責任險（personal umbrella）與商業運輸（commercial transportation）貢獻顯著，兩者皆持續受惠於費率上調。就核保結果而言，意外險綜合比率為 97%，較 2025 年改善 2 個點，並包含較高水準的前期年度有利發展 1,450 萬美元。

Casualty reserve development was broad-based with executive products, general liability, professional services and transportation contributing to the release. It should be noted that of the $16 million of catastrophe losses disclosed in the quarter, $2 million was attributed to packaged businesses in casualty. Property experienced a 9% decline in gross premium largely due to rate decreases in E&S property, while Marine and Hawaii homeowners again afforded offsets. Contributing to the bottom line and properties 62 combined ratio was $20.6 million of favorable prior year's reserve development on these shorter tail lines, offering a 16-point benefit to the segment loss ratio. Catastrophe events, including the recent storms in Hawaii, told $14 million for Property, up a bit from events in Q1 2025.

意外險準備金發展呈現廣泛分布，行政主管產品（executive products）、一般責任險（general liability）、專業服務（professional services）與運輸（transportation）皆對準備金釋放有所貢獻。另需注意，本季揭露的 1,600 萬美元災害損失中，有 200 萬美元歸因於意外險中的套裝業務（packaged businesses）。財產險（Property）總保費下降 9%，主要因 E&S 財產險費率下調所致，而海事（Marine）與夏威夷住宅險（Hawaii homeowners）再次提供抵銷。對盈餘及財產險 62 綜合比率的貢獻，來自這些較短尾端（shorter tail）業務線 2,060 萬美元的前期年度有利準備金發展，為該部門損失率帶來 16 個點的改善。災害事件（包括近期夏威夷風暴）使財產險承擔 1,400 萬美元損失，較 2025 年第一季事件略高。

Surety's top line gross premium was down about 1% from last year, and the segment reported a 94 combined ratio, largely attributable to limited favorable prior year development compared to a strong release last year. As a reminder, a surety loss activity can be variable and can have a significant influence over shorter periods. Operating cash flow for Q1 totaled $43 million, down $60 million from last year and was influenced by some tax credit purchase activity, bonuses paid and higher cat losses. The tax credit purchase is notable as it had a significant impact on the 18.5% effective tax rate in the quarter. Despite more modest cash flow, we still have reinvestment opportunities with fixed income purchase yields averaging 4.8% in the portfolio, approximately 60 basis points above our book yield.

保證保險（Surety）本季總保費較去年下降約 1%，該部門綜合比率為 94，主要歸因於前期年度有利發展有限，相較去年有較強的準備金釋放。提醒各位，保證保險的損失活動可能具有波動性，且在較短期間內可能產生顯著影響。第一季營運現金流合計 4,300 萬美元，較去年減少 6,000 萬美元，主要受部分稅額抵減（tax credit）購買活動、獎金支付以及較高的災害損失所影響。稅額抵減購買值得注意，因其對本季 18.5% 的有效稅率造成顯著影響。儘管現金流較為溫和，我們仍有再投資機會；投資組合中固定收益新購買殖利率平均為 4.8%，約較帳面殖利率高出 60 個基點。

Recent capital market volatility has moderated, and we have primarily focused on putting money to work in investment-grade fixed income. Total return for the portfolio in the quarter totaled a negative 0.4%, with income partially offsetting price declines for both stocks and bonds. Turning to the liability side of the balance sheet. We found an opportunity in late February to access the capital markets and raised $300 million of long-term debt. With our history of consistent financial results, we believe RLI has a terrific credit story.

近期資本市場波動已趨於緩和，我們主要聚焦於將資金投入投資級固定收益。本季投資組合總報酬為負 0.4%，其中收益部分抵銷了股票與債券價格下跌。接著談資產負債表的負債端。我們在 2 月下旬找到進入資本市場的機會，發行並募集 3 億美元長期負債。憑藉我們一貫穩健的財務表現歷史，我們相信 RLI 具備非常出色的信用故事。

This issuance carries a coupon of 5 and 3/8% and a 10-year maturity and returns our leverage profile to our historic average. Alongside the long-term debt we repaid and upsized our revolving credit facility with PNC Bank. That backstop liquidity in our Lifecore is now $150 million in size and replaced the prior transaction. Looking at overall results when we isolate on comprehensive earnings of $0.32 per share and adjust for dividends, book value per share increased 2% from year-end 2025.

本次發行的票面利率為 5 又 3/8%，期限為 10 年，並使我們的槓桿狀況回到歷史平均水準。同時，我們償還了長期債務，並與 PNC Bank 擴大了循環信用額度。這項在 Lifecore 的備援流動性目前規模為 1.5 億美元，並取代了先前的交易。就整體結果而言，當我們以每股 0.32 美元的綜合盈餘為基礎並就股利進行調整後，每股帳面價值較 2025 年底增加 2%。

Finally, I'll mention in the recent rating action from A.M. Best, which upgraded the RLI Group of companies to A++. This puts RLI in a distinguished category of high-quality P&C companies that have similar financial strength. We view the reaction from A.M. Best is a recognition of our long track record of underwriting results. All in, we are very pleased with the start to the year.

最後，我要提到 A.M. Best 近期的評等行動，其將 RLI 集團旗下公司評等上調至 A++。這使 RLI 進入一個卓越的高品質產險（P&C）公司行列，具備相近的財務實力。我們認為 A.M. Best 的反應是對我們長期承保成果紀錄的肯定。總體而言，我們對今年的開局非常滿意。

And with that, I'll turn the call over to Jen for more details.

接下來，我把電話交給 Jen，請她提供更多細節。

Thank you, Aaron. We are pleased to report another quarter of underwriting profit, and we're able to achieve some growth even as market conditions have become more challenging for many of our businesses. Casualty segment premium increased by 10% and rates were also up 10% for the quarter. Personal umbrella led the way with 23% premium growth. Rate increase for the quarter was 16%, and we expect increases to continue as recent rate approvals earn into the book.

謝謝你，Aaron。我們很高興報告又一季的承保獲利；即使市場環境對我們許多業務而言變得更具挑戰，我們仍能達成一定的成長。意外險（Casualty）分部保費成長 10%，本季費率亦上升 10%。個人超額責任險（Personal umbrella）表現領先，保費成長 23%。本季費率上調 16%，我們預期隨著近期核准的調價逐步反映至保單組合中，費率上調將持續。

Our investments in data and analytics are paying off and that we can make local targeted improvements to the book over time. Our new business growth has shifted from more hazardous states like California, Florida and New York to less let's just say those in the Midwest. As we have increased rates, selectively reduced commissions and work with our producers to proactively manage growth over the last few years. We expect growth to persist as the new business pipeline remains strong, and as we continue to ensure adequate rates are earned throughout the book. Transportation premium grew by 27% with RLI liability rate increases on renewals up 15%.

我們在資料與分析方面的投資正在產生回報，使我們能隨時間推進，對保單組合進行在地化、具針對性的改善。我們的新業務成長已從加州、佛州與紐約等風險較高的州，轉向風險較低的州——姑且這麼說，主要在中西部。過去幾年，隨著我們提高費率、選擇性降低佣金，並與通路夥伴合作主動管理成長。我們預期在新業務管道仍然強勁、且我們持續確保整體保單組合能取得足夠費率的情況下，成長將延續。運輸險保費成長 27%，RLI 責任險續保的費率調升達 15%。

In addition to rate, the growth was driven by several new business opportunities with insurers who invest in superior risk management and where we could achieve adequate terms. Submissions were up 15% as competitors in some classes within the book are pulling back. New claim counts were down 14% compared to the first quarter of 2025. We believe our investments in loss control and claims service are appreciated by our customers and will have a positive impact on their bottom line and ours. E&S casualty premium was down 4% with a slow start to binding business this year due to concerns with the economy, supply chain, interest rates and inflation impacting investment decisions in the construction industry.

除費率因素外，成長亦來自多項新業務機會，這些機會來自重視優異風險管理、且我們能取得適當條款的被保險人。由於保單組合中某些類別的競爭對手正在收縮，投保申請（submissions）增加 15%。與 2025 年第一季相比，新理賠件數下降 14%。我們相信在損失控制與理賠服務上的投資受到客戶肯定，並將對他們與我們的獲利能力帶來正面影響。E&S 意外險保費下降 4%，主因今年承保（binding）業務起步較慢，因經濟、供應鏈、利率與通膨等疑慮影響建築業的投資決策。

Despite this, new business submissions are up 14% as continuous in-person marketing is keeping us on our producers' radar. Both are up as well, reflecting a solid pipeline of construction projects. As expected, there can be significant delays between the time we release the post and when that business is down. We believe construction activity will rebound as economic conditions stay, and we are well positioned to respond. Recognizing ongoing severity of commercial auto liability coverage, our appetite is more limited for auto on excess liability business.

儘管如此，新業務投保申請仍增加 14%，因為持續的實體行銷讓我們維持在通路夥伴的關注名單上。兩者也都上升，反映建築專案的管道相當穩健。如同預期，從我們釋出報價到該業務實際落地之間，可能會有顯著延遲。我們相信隨著經濟狀況穩定，建築活動將回升，而我們也已做好回應準備。鑑於商用車責任險保障的損失嚴重度仍在攀升，我們對超額責任險業務中的汽車風險承作意願更為有限。

This appears to be a conservative stance than our competition, but we believe it is a disciplined approach to underwriting in this environment. The theme with our package businesses is that our growth is being driven primarily by REIT. Both premiums and rates are up 5% to 6% and with higher increases related to the auto exposure. This business focuses on architects, engineers and contractors and rounds out our diversified construction industry portfolio. In Surety premium was down 1% in a very competitive market, single-digit growth in contract and transactional was offset by a small decline in commercial surety.

相較於競爭對手，這看起來可能更為保守，但我們相信在此環境下，這是有紀律的承保作法。我們套裝型（package）業務的主軸是：成長主要由 REIT 驅動。保費與費率皆上升 5% 至 6%，其中與汽車曝險相關的調升幅度更高。此業務聚焦於建築師、工程師與承包商，並完善我們多元化的建築產業組合。在保證險（Surety）方面，保費在競爭激烈的市場中下降 1%；合約與交易型業務的個位數成長，被商業保證險的小幅下滑所抵銷。

Within contract surety, growth is occurring at the top end of the market, driven by large infrastructure projects, including data centers. Our focus, however, is on small to midsized contractors who work on smaller projects or subcontractors working on those large projects. While bid activity is increasing in our space, we are not yet seeing that translate into meaningful growth. Our bottom line was impacted by 1 large contract surety loss arising from our prior period claims. This was an isolated incident and is not indicative of a change in risk or approach to the core book.

在合約保證險中，成長出現在市場高端，主要由大型基礎建設專案（包括資料中心）帶動。然而，我們的重點在於中小型承包商，他們承作較小型專案，或是在大型專案中擔任分包商。雖然我們所處領域的投標活動正在增加，但我們尚未看到其轉化為具意義的成長。我們的獲利受到 1 件大型合約保證險損失影響，該損失源自前期理賠案件。這是單一事件，並不代表核心保單組合的風險或承保方法有所改變。

In commercial surety, our renewable energy portfolio portion is maturing with fewer new business opportunities due to slowing investments in that industry. Across our Surety division, we are well positioned with local expertise, continued producer engagement and new transactional surety system functionality that provides full life cycle capabilities to our producers. Our opportunity pipeline is healthy, and we are focused on execution. The Property segment premium was down 9% as the business mix shifted from catastrophe to non-catastrophe premiums. While the top line reflects the continued competitive environment, our underwriters are still finding profitable opportunities.

在商業保證險方面，我們的再生能源組合部分正逐步成熟，因該產業投資放緩而使新業務機會減少。就整體保證險事業部而言，我們具備在地專業、持續的通路互動，以及新的交易型保證險系統功能，能為通路夥伴提供完整生命週期的作業能力。我們的機會管道健康，並專注於落實執行。財產險（Property）分部保費下降 9%，因業務組合由巨災保費轉向非巨災保費。雖然營收端反映出競爭環境仍然激烈，我們的核保人員仍在尋找具獲利性的機會。

We had an excellent start to the year producing a 62 combined ratio despite increased catastrophe activity in parts of our book. E&S property premiums declined 16% in the quarter as market capacity remains plentiful. Consistent with market commentary, rate change on renewal business was down 19% for hurricanes and 16% for earthquake. While new business submissions are up, winning business has become more challenging. We're seeing increased competition from the admitted space, where programs have been created for certain classes like hotels and restaurants.

我們今年開局表現優異，儘管保單組合部分區塊的巨災活動增加，仍達成 62 的綜合率。E&S 財產險保費於本季下降 16%，因市場承保容量仍然充裕。與市場評論一致，續保業務的費率變動：颶風下調 19%，地震下調 16%。雖然新業務投保申請增加，但贏得業務變得更具挑戰。我們看到來自一般承保市場（admitted）的競爭加劇，該市場已針對某些類別（如飯店與餐廳）建立了專案方案。

These programs were available before the last hard market with similar terms and conditions. We will remain disciplined and patient and wait for those opportunities to come back to the E&S market over time. While we are giving back some rate, the accounts we bind are priced above our technical benchmark pricing, meaning, we believe we are achieving adequate returns on the business. We also saw some benefit from reduced reinsurance costs and experienced manageable spring storm losses, resulting in a material contribution to the bottom line from this division. Marine had their largest premium quarter since inception with almost $47 million of premium, an increase of 4% from the first quarter of 2025.

這些方案在上一輪硬市場之前就已存在，且條款與條件相近。我們將維持紀律與耐心，等待這些機會隨時間推移回到 E&S 市場。雖然我們讓出部分費率，但我們承作的帳戶定價仍高於我們的技術基準定價；也就是說，我們相信在該業務上能取得足夠報酬。我們也受惠於再保成本下降，並承受了可控的春季風暴損失，使該事業部對獲利有實質貢獻。海事險（Marine）創下成立以來最高單季保費，接近 4,700 萬美元，較 2025 年第一季增加 4%。

Submissions and quotes continue to increase, particularly for our inland Marine business. Loss activity came in as expected, and we again benefited from favorable reserve releases, which allow Marine to contribute meaningfully to our bottom line. Hawaii homeowners premium ad rates each grew 12% in the quarter. Our service-oriented teams continue to identify growth opportunities on the islands. We responded to several cone of storm events, which were a combination of high winds and excessive rain by deploying our local climate amines to visit impacted insurers and address their needs.

投保申請與報價持續增加，尤其是在我們的內陸海事險（inland Marine）業務。損失活動符合預期，我們再次受惠於有利的準備金釋出，使海事險能對獲利做出顯著貢獻。夏威夷住宅險保費與費率各在本季成長 12%。我們以服務為導向的團隊持續在群島上發掘成長機會。針對數起風暴影響範圍（cone of storm）事件——由強風與豪雨所構成——我們派遣在地理賠人員前往拜訪受影響的被保險人並滿足其需求。

While these events affected our bottom-line results in the quarter, past experience shows that this timely in-person response drives stronger relationships and results and increased opportunities over the long term. Overall, our insurance portfolio is very healthy. We achieved modest growth driven primarily by rates, and we realized another quarter of underwriting profit.

雖然這些事件在本季影響了我們的獲利表現，但過往經驗顯示，這種即時的實地回應能在長期帶來更強的關係、更好的成果，以及更多機會。整體而言，我們的保險投資組合非常健康。我們達成以費率為主要驅動的溫和成長，並再度實現一季的承保獲利。

We continue to make investments that we believe will drive long-term profitable growth. On that note, we are always looking for talented underwriters and claim professionals who are A players and are interested in contributing to a true underwriting company, where they can be creative, make long-term bottom line decisions and collaboratively improve our products for our insurers and our relationships with our producer partners.

我們持續進行投資，我們相信這將推動長期的獲利性成長。基於此，我們一直在尋找優秀的核保與理賠專業人才，也就是所謂的 A 級人才，並且有興趣投入一家真正以承保為核心的公司；在這裡，他們可以發揮創意、做出以長期獲利為導向的決策，並以協作方式改善我們的產品，以服務我們的被保險人以及與通路夥伴的關係。

They own their results with their compensation and shared rewards based on their decisions, and they will become an associate RLI owner, who benefits from our diversified product portfolio that has produced solid stable results over time. Adding to our team is one way that should help us continue to achieve profitable growth over the long term. We are encouraged by our positive start to 2026 and remain optimistic about the year ahead, knowing that our team is capable of navigating this evolving market. And now I'll turn the call over to the moderator for questions.

他們以其薪酬與基於其決策的共享獎酬對自身成果負責，並將成為RLI的關係企業所有人（associate RLI owner），受益於我們多元化的產品組合，而該組合長期以來持續產生穩健且穩定的成果。擴充團隊是有助於我們在長期持續實現獲利成長的一種方式。我們對2026年的正面開局感到振奮，並對未來一年保持樂觀，因為我們知道團隊有能力在這個不斷演變的市場中航行。接下來我將把電話會議交給主持人進行提問。

(Operator Instructions) Michael Phillips, Oppenheimer & Co.

（接線員指示）Michael Phillips，Oppenheimer & Co.

I'm curious how you would classify in your GL look, just overall competitive environment this quarter versus recent previous quarters?

我想了解，就你們對GL的觀察而言，本季整體競爭環境相較於最近幾季會如何分類或評估？

Yes, this is Jen. I would say for GL, we have personal around the country that are working with our wholesalers, our wholesale partners. And it does vary by region a bit. So we've noticed, I would say, the construction industry is a bit caused in the Northeast where we have a fairly sizable book. I think the political environment there caused people to pause on investing for a period of time.

是的，我是Jen。我會說就GL而言，我們在全國各地都有同仁與我們的批發商、批發合作夥伴合作。而且確實會因地區而略有不同。所以我們注意到，我會說，東北部的建築業有點停滯，而我們在那裡有相當可觀的業務組合。我認為那裡的政治環境讓人們在一段時間內暫停投資。

We also had quite a bit of weather in the first quarter. And so I think the start of construction projects has caused. We write a lot of our policies on a project basis. So it's very specific to when that project kicks off. And with the weather improving, we're hoping that we'll see more business buying as those projects do get kicked off here now that we're into the spring.

我們在第一季也遇到相當多的天氣因素。因此我認為建築專案的啟動有所延後。我們很多保單是以專案為基礎承保，所以非常取決於該專案何時開工。隨著天氣改善，我們希望在進入春季後，隨著這些專案開始動工，能看到更多的投保需求。

On the West Coast, it's been a healthy spring. We do -- we have ramped up a bit our focus on project policies as opposed to a practice policy when we cover that contracted for the whole year with whatever they're doing. And more contractors seem to be buying coverage in that manner. So we have seen some success in that region. So I think our pipeline is full.

在西岸，春季表現健康。我們確實——我們已稍微提高對專案型保單的聚焦，相較於以業務型保單（practice policy）承保、涵蓋承包商全年不論做什麼工作的方式。更多承包商似乎以那種方式購買保障。因此我們在該地區看到一些成果。所以我認為我們的案源管道是滿的。

We've got more close out there. We did have more quotes for the first quarter than we did in last first quarter. It's just a matter of that business binding. And so some of those clots can remain outstanding for 6 to 12 months and our wholesalers will keep us up to date on the status and then we wait. Sometimes we have to revise those folks when the time comes.

我們那邊有更多接近成交的案子。第一季我們的報價數量比去年第一季更多。現在只是這些業務是否能夠承保生效（binding）的問題。而其中一些報價可能會懸而未決6到12個月，我們的批發商會持續向我們更新狀態，然後我們就等待。有時候到了時點，我們必須重新調整那些報價條件。

But at other times, we are comfortable with those terms and go forward. So a bit slow. We heard from our wholesale producers that they were a bit slow in the quarter as well. So we feel like -- we're not an outlier there, but we are hoping that the construction industry does pick up a bit going into the rest of the year.

但在其他時候，我們對那些條件感到滿意，就會繼續往前。所以整體有點慢。我們也從批發端的製作人（wholesale producers）那裡聽到，他們這一季也有點慢。因此我們覺得——我們並不是特例，但我們希望建築業在今年剩餘時間能稍微回升。

Okay. You mentioned in your earlier comments, too, about your plans for more state diversification in your personal bill book. Any early impacts you've seen you took a pretty big rate hike in California there, the early impacts of what's happening in California from that?

好的。你在先前的評論中也提到，你們計畫讓個人帳單（personal bill）業務組合在州別上更分散。你們在加州做了相當大幅度的調漲，那麼目前看到加州那邊的早期影響是什麼？

Yes. So our last rate hike in California was only effective on December 1, and we did get a 20% rate increase there. We are still seeing some growth in California, but it's at a much smaller pace than it was before. Keep in mind, we've made a few different changes to how we approach that business in California. A couple of years ago, we increased our attachment so that our underlying attachment is at $500,000 versus previously $250,000, but we've also selectively reduce commissions, and that's been a more recent change that is being digested by our producers now.

是的。我們在加州最近一次調漲是12月1日才生效，我們在那裡確實調升了20%的費率。我們在加州仍看到一些成長，但速度比以前小很多。請記得，我們過去幾年也對在加州經營該業務的方式做了幾項不同調整。幾年前，我們提高了自留額（attachment），使基礎自留額從先前的250,000美元提高到500,000美元；此外，我們也有選擇性地下調佣金，而這是較近期的變動，製作人目前正在消化中。

And I would say that will -- that could potentially impact further that growth rate. However, the business seems to keep coming to us. So we're not seeing a lot of activity by either primary carriers or other competitors that is too successful in that space. So it seems to be that the opportunity continues. We just want to fund that business on our terms and make sure that we're comfortable that the terms we're providing are going to equate to an underwriting profit for the book of business.

我會說，那——可能會進一步影響成長率。不過，業務似乎仍持續流向我們。因此我們沒有看到主要承保公司或其他競爭對手在該領域有太多非常成功的動作。看起來機會仍然存在。我們只是希望在我們的條件下承作這些業務，並確保我們提供的條款能讓這本業務組合帶來承保利潤。

Okay. And then just lastly, you've talked for the last couple of quarters about the transportation claim information coming down. I guess just to point that with advocate there, is there anything that would cause just more of a delay in the clean reporting and maybe pick up later, or is that truly a reduction on ultimate accounts that you think could happen?

好的。最後一點，你們過去幾季一直提到運輸理賠資訊在下降。我想把這點再追問一下：是否有任何因素可能導致乾淨的申報（clean reporting）延後、之後又回升？還是你們認為這確實可能是對最終損失（ultimate）水準的下降？

I'm going to guess here because I don't know exactly, but I'm going to guess that they're down for a good reason. And part of that is that our policy count has reduced a bit, particularly in places like public auto where you have a bump and you might have multiple claimants impacted. So with smaller but a smaller policy account and again continue to invest in loss control activities where we're monitoring those insurers and really trying to engage with folks who appreciate risk management and whether it's the telematics and the cameras, but then also training their drivers, reacting to what they're seeing in terms of their driver behavior.

我在這裡先猜測一下，因為我不完全清楚，但我猜它們下降是有正當原因的。其中一部分是我們的保單件數略有下降，特別是在像公共汽車（public auto）這類業務，你可能會有一次事故造成多名索賠人受影響。因此在保單數較少的情況下，再加上我們持續投入損失控制活動，監控那些被保險人，並且真正嘗試與重視風險管理的人合作——不論是車聯網（telematics）與攝影機，還是對駕駛進行訓練、並根據我們看到的駕駛行為做出反應。

And so with those things, I would say that probably is translating into the reduced claim count. So I think that's a legitimate data point. But obviously, we continue to watch that over time, we can't control when an accident happens, which is we're going to respond to it when it does. So my answer is, cautiously, I believe that's a real trend.

因此，有了這些作法，我會說這大概正在轉化為理賠件數的下降。所以我認為那是一個合理的數據點。但顯然我們會持續隨時間觀察；我們無法控制事故何時發生，但一旦發生我們就會應對。所以我的回答是：審慎地說，我相信這是一個真實的趨勢。

Mark Hughes, Truist.

Mark Hughes，Truist。

I wonder if you could talk a little bit about the property business. You were still down this quarter, a little bit less than last quarter, though. I wonder, is the market still adjusting, which is to say pricing continues to decline sequentially? Is it at a point where maybe it might stabilize in the second half. How do you see that kind of near-term trajectory?

我想請你談談財產險業務。你們本季仍是下滑，但比上季少一些。我想問，市場是否仍在調整中，也就是說定價仍在逐季下滑？是否已到可能在下半年趨於穩定的程度？你怎麼看這種短期走勢？

Yes. It's a good question. We're in the market every day, hoping that it becomes more stable. But I would say at this point, we're not seeing signs of that yet. So competition remains healthy in this space.

是的，這是個好問題。我們每天都在市場裡，希望它能更穩定。但我會說就目前而言，我們還沒有看到那樣的跡象。所以這個領域的競爭仍然很強。

Healthy is the right word, but it remains very active. As you saw, our rate diseases continue a bit, we individually underwrite that business. So every account we're looking at to see how can we win this account, and we look at the individual risk characteristics. So it appears that some of our competition probably have more global mandates on how they approach accounts. And so as an example, we might find an account where we think that the valuation is not up to date.

「強」這個詞用得對，但它仍然非常活躍。如你所見，我們的費率下降仍持續一些；我們對該業務採逐案承保（individually underwrite）。因此我們會檢視每一個帳戶，思考我們要如何贏得這個帳戶，並看其個別風險特性。看起來我們的一些競爭對手在處理帳戶時，可能有更偏向整體性的指令或規範。舉例來說，我們可能會遇到一個帳戶，認為其估值並非最新。

And so we're going to want to put coinsurance on that account to make sure that when the loss happens, that, that valuation is reflected in the results of how that claim is handled. Some folks appear to be kind of waving those types of terms across the board. And so that's where it gets difficult to win that business. But in an vital underwriting, and we can decide where does it make sense to waive certain coverages or exclusions, and where it makes sense to be a little more aggressive and win that business. And so one thing we try to do is to protect our renewals.

因此我們會希望在該帳戶上加上共保條款（coinsurance），以確保當損失發生時，該估值能反映在理賠處理結果中。有些同業似乎在整體上放寬這類條款。這就使得我們更難贏得該業務。但在逐案承保下，我們可以決定在哪些情況下放寬某些保障或除外責任是合理的，以及在哪些情況下更積極一些以贏得業務。因此我們嘗試做的一件事是保護我們的續保。

We are increasing the limits that we're willing to offer, a bit. Now we're not a big game player. We probably offer between $10 million and $20 million of limits for the most part. We can selectively go above that, but that's our kind of our sweet spot, where others I know do have more limit. But I'll tell you some of the brokers have determined that it's in their best interest to have multiple carriers on an account.

我們正在小幅提高我們願意提供的承保限額（limits）。當然我們不是那種大額玩家；大多數情況下我們可能提供1,000萬到2,000萬美元的限額。我們可以有選擇性地高於這個水準，但那是我們的甜蜜點；我知道其他一些公司確實提供更高的限額。不過我可以告訴你，有些經紀人已經認定，讓一個帳戶由多家保險公司共同承保符合他們的最佳利益。

And so in some cases, while we might want the whole account limit, they're trying to share that so that when the next hard market comes, they've got a nice variety of carriers to choose from. So for us, again, it comes down to each account, trying to battle it up to win that business if it's a good account. We are on the edges moving the business to the admitted market, as I mentioned. Some of that, we call it E&S light business, where it is a market for E&S only because it's located in Florida, for example. Some of that is coming back to the admitted space.

因此在某些情況下，雖然我們可能希望拿到整個帳戶的承保限額，但他們正試圖分散配置，這樣當下一次硬市場來臨時，他們就能有多元的承保公司可供選擇。對我們而言，同樣地，關鍵仍回到逐一檢視每個帳戶；如果是好帳戶，就努力競爭以贏得該業務。如我提到的，我們正處於邊緣地帶，將業務移往核准市場（admitted market）。其中一部分我們稱之為「E&S 輕型」業務，也就是它之所以只屬於 E&S 市場，僅僅是因為例如位於佛羅里達州。這其中有些業務正在回流到核准市場。

So we recognize there could be an event that's likely to be event this year, and some of that business then will flow back into our space. And so we've been doing this a long time. We're not excited about being patient about the market improving, but we can be patient. That's what we do, and that's what we'll continue to do.

所以我們認知到，今年可能會發生某個事件，而其中一部分業務之後就會回流到我們的領域。因此我們做這行很久了。我們並不會因為需要耐心等待市場改善而感到興奮，但我們可以保持耐心。這就是我們的做法，也將會持續如此。

Understood. On the surety -- and I'm sorry if you did touch on this before, but the reserve development, the favorable development in Q1, definitely still on the positive side of the ledger, but not quite as much as you've seen in the first quarter in prior years. Was there anything that you saw that that drove that? Any particular claim or two, or what was the driver behind that?

了解。關於保證保險（surety）——如果你之前已經提到過我先致歉——第一季的準備金發展、也就是有利發展（favorable development），確實仍在正向的一邊，但不像過去幾年第一季那麼多。你們看到是什麼因素驅動的？有沒有特定一兩筆理賠，或背後的主要驅動因素是什麼？

Yes, Mark, it's Aaron. Both in my commentary and Jen as we referenced the fact that results in surety can be variable around a small number of losses. Jen mentioned one particular loss on the contract side that was in prior years. So that was a headwind to the results we saw there. And if you look back at last year's release, it was a very robust prior year release in last year's Q1. So there's a comparable issue going on, and there's some loss activity as well weighing on this year's outcome.

是的，Mark，我是 Aaron。無論在我的說明或 Jen 的補充中，我們都提到保證保險的結果可能會因少數幾筆損失而出現波動。Jen 提到合約端有一筆特定損失是發生在前幾年。因此那對我們看到的結果形成逆風。另外如果你回頭看去年第一季的釋放（release），去年第一季的前期年度釋放非常強勁。所以這裡也有可比基期的因素，同時今年也有一些損失活動，進一步壓抑了今年的結果。

Understood. And then just one clarification. I think you're talking about the heard from the wholesalers is a bit slower in the quarter. Was that on the construction GL part of the business, or did I mishear that?

了解。然後再確認一下。我想你提到從批發經紀（wholesalers）那邊聽到本季稍微慢一些。那是指建築一般責任險（construction GL）那部分業務嗎？還是我聽錯了？

Yes. That was specifically for our relatable construction business through the wholesalers.

是的。那是特別針對我們透過批發經紀承作的相關建築業務。

Andrew Anderson, Jefferies.

Andrew Anderson，Jefferies。

Just looking at the casualty ex cat ex-PYD loss ratio and taking into account the $2 million of cat that you had mentioned. It seems like the casualty underlying loss ratio was up slightly. Would you characterize that as kind of just business mix, or was there any change in loss trend assumption?

我在看意外險（casualty）扣除巨災、扣除 PYD 的損失率，並把你提到的 200 萬美元巨災損失納入考量後，看起來意外險的基礎損失率略有上升。你會把這描述為主要是業務組合（business mix）因素，還是損失趨勢假設（loss trend assumption）有任何變動？

Yes. Absolutely, business mix more than anything else, Andrew. You think about where we're growing there. It's a mix influence.

是的。完全是業務組合的影響多於其他因素，Andrew。你想想我們在那裡成長的方向，主要是組合帶來的影響。

Okay. And transportation growth was quite strong. And Jen, I know you talked about it a bit, but just despite cautious industry backdrop, how are you kind of balancing exposure unit growth here with still severity concerns recognizing you did get quite a bit of rate as well?

好的。運輸業務成長相當強勁。Jen，我知道你稍早有談到一些，但在產業背景仍偏謹慎的情況下，你們如何在曝險單位（exposure unit）成長與損失嚴重度（severity）疑慮之間取得平衡？也考量到你們確實也拿到了不少費率（rate）。

Yes. It comes down to risk selection. So our transportation team is part of a very strong feedback will claim and then the data that supports what's going on in their business. They are committed to getting rate above trend for the year. And you can see they're demonstrating that they're doing it, but they're also being very picky on this selection.

是的。這歸根結底在於風險篩選（risk selection）。我們的運輸團隊有非常強的回饋機制，來自理賠以及支撐其業務狀況的數據。他們承諾今年要把費率拉到高於趨勢（above trend）。你也可以看到他們正在用行動證明做得到，同時在選擇上也非常挑剔。

They tend to be picky regardless, but I think they're probably even more focused on it this year. They are finding some accounts that actually have good risk management where we get the rate we need I mean in this business. At least you have a little bit more transparency because people tend to have loss activity. You can see actual loss history for accounts, and you can evaluate what are their safety practices and what would be the cost of those going forward so you can loss rate these accounts, which is helpful. So we are winning a few pieces of business with a few folks pulling back in places.

他們一向都很挑剔，但我認為今年可能更聚焦。他們正在找到一些帳戶，這些帳戶其實有良好的風險管理，而我們也能拿到所需的費率——在這個業務裡，至少透明度更高一些，因為通常會有損失活動。你可以看到帳戶的實際損失歷史，並評估他們的安全作業做法，以及未來這些做法的成本，因此你可以對這些帳戶進行損失率評估（loss rate），這很有幫助。所以在一些同業於某些地方收縮之際，我們贏得了幾筆業務。

And I'll tell you, some producers are finding us helpful, and so they're looking for more business that they can help them with. So we get a lot of submissions then. We still decline 90% of the submissions that we received. So you can see still being picky, but we're considering that severity is up. We're looking at rate being adequate, but then it all comes down to that risk selection and picking the right accounts.

而且我可以告訴你，有些製作人（producers）覺得我們很有幫助，因此他們在尋找更多我們能協助的業務。於是我們收到大量投保申請（submissions）。我們仍然拒絕了收到的投保申請中的 90%。所以你可以看出我們仍然很挑剔；但我們也考量到嚴重度正在上升。我們會檢視費率是否足夠，但最終仍取決於風險篩選與挑選正確的帳戶。

And there's nothing magical about it. It's about due diligence, doing your underwriting, asking a lot of questions and not broad brushing, and that's our approach. And hopefully, it will work out for the year.

這沒有什麼神奇之處。就是盡職調查（due diligence）、做好核保（underwriting）、問很多問題、不要一概而論（not broad brushing），這就是我們的方法。希望今年能有好的結果。

Greg Peters, Raymond James.

Greg Peters，Raymond James。

This is Mitch Rubin on for Greg. In surety with the large contract loss in the quarter, should we expect any further development on that claim in coming quarters, or is the impact largely contained in this quarter?

我是 Mitch Rubin，代 Greg 提問。保證保險方面，本季有一筆大型合約損失，接下來幾季我們是否應該預期該理賠還會有進一步發展（development），還是影響大致已在本季反映完畢？

I would say that we've reserved for basically the worst-case scenario on that claim. So I wouldn't expect adverse development on that, right? And I would also just reiterate that a single claim, we don't see a systemic issue in the book. It was just one individual circumstance for a particular contractor.

我會說，我們對那筆理賠基本上是以最壞情境（worst-case scenario）來提列準備金。因此我不預期會出現不利發展（adverse development），對吧？另外我也想重申，單一理賠並不代表整體保單組合（book）有系統性問題。那只是某個特定承包商的個別情況。

Got it. And as a follow-up, some peers have pointed to recent softening in financial lines. Are you seeing similar pressure in your executive products or professional services books?

了解。追問一下，有些同業指出金融線（financial lines）近期有走軟跡象。你們在高階主管產品（executive products）或專業服務（professional services）業務上，是否也看到類似的壓力？

Well, the executive products group that focuses on directors and officers and other fiduciary other management liability coverages. It's been in a soft market for a couple of years now. I would say that market is actually stabilizing. If you look at rates in that book, they were actually flat for the quarter, which, in this case, is a win. I can tell you that there has been a little bit of consolidation among carriers in that business, which -- it would be nice that, that translated into less capacity and maybe more stable in the hardening market, but that has not happened yet.

嗯，專注於董監事責任險（directors and officers）以及其他受託人責任、其他管理階層責任保障的高階主管產品團隊，已經處於軟市場好幾年了。我會說那個市場其實正在趨於穩定。如果你看那個組合的費率，本季其實是持平，而在這種情況下，這就是一個勝利。我可以告訴你，那個業務中承保公司之間確實出現了一點整併；如果那能轉化為更少的承保能量（capacity）並讓市場在走向硬化時更穩定，那會很好，但目前還沒有發生。

There's just a few folks that are buying each other out, but it has an impact on capacity. In the professional line space where we write errors and emissions coverage, I would say that continues to be a very competitive environment, but we are winning business. We did see some growth in that space and a little bit of rate. So again, individual underwriting, long-term relationships with these producers have been doing that business almost 20 years. So I would say it's a stable marketplace that we just try to get a few more new accounts each year, and that's kind of the trend that we've been on for several years now.

只是有少數幾家彼此收購，但對承保能量確實有影響。在專業線（professional line）領域，我們承作錯誤與疏漏（errors and omissions）保障，我會說那仍然是非常競爭的環境，但我們仍在贏得業務。我們確實看到該領域有一些成長，也有一點點費率提升。所以同樣地，靠的是個別核保，以及與這些製作人長期的合作關係——我們做這個業務將近 20 年了。因此我會說這是一個穩定的市場環境，我們只是每年努力多拿到一些新帳戶，而這也就是我們過去幾年一直維持的趨勢。

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

如果沒有進一步的問題，我現在把電話會議交回給 Craig Kliethermes 先生做結語。

Well, thanks, Aaron, and Jen, and thank you all for your questions. Before we wrap up, I want to leave you with a few thoughts on how we're thinking about the business going forward. The current environment presents both opportunity and temptation. There are always ways to grow if you're willing to stretch. We also know that not all growth is created equal.

好的，謝謝 Aaron 和 Jen，也謝謝各位的提問。在我們結束之前，我想分享幾點我們對未來業務的思考。當前環境同時帶來機會與誘惑。只要你願意拉伸尺度，總是有成長的方法。我們也知道，並非所有成長都具有同等價值。

Our focus remains on underwriting discipline, understanding the risk, pricing it appropriately, seizing market opportunities with the willingness to step back if conditions don't support our expectations for risk-adjusted returns. That approach has stood the test of time. It is how we delivered consistent results through the peaks and troughs of the market cycles. We don't expect it to get easier.

我們的重點仍然是核保紀律、理解風險、適當定價；在市場機會出現時把握，同時若條件不支持我們對風險調整後報酬（risk-adjusted returns）的期待，也願意退一步。這樣的方法經得起時間考驗。它讓我們在市場循環的高峰與低谷中都能交出一致的成果。我們不預期未來會變得更容易。

As Karen Lawson, the Dukes women's basketball coach said, it never gets easier. You just have to handle hard better. That is part of the job. The challenges are what prepare you for success. As we look ahead, we're optimistic not because the environment is easy, but because we know how to operate in environments like this.

正如杜克大學女子籃球教練 Karen Lawson 所說，事情永遠不會變得更容易。你只是必須更擅長應對困難。那是工作的一部分。挑戰正是讓你為成功做好準備的因素。展望未來，我們之所以樂觀，不是因為環境容易，而是因為我們知道如何在這樣的環境中運作。

Our ownership culture makes us different, and we're willing to do the hard work. We're staying true to the vision that has guided this company, building a strong community, helping our producers and customers solve real problems and taking responsibility for continuously improving and making or better every day.

我們的所有權文化讓我們與眾不同，而我們也願意投入艱苦的工作。我們將持續忠於引領這家公司前行的願景，建立強大的社群，協助我們的生產者與客戶解決真實問題，並為持續改進、每天把事情做得更好而負起責任。

We are proud of what we've built, but we're even more focused on what comes next. We like our position, we trust our process, and we're confident in our ability to deliver different performance over time. Thank you for your time and continued interest in RLI. We look forward to speaking with you again next quarter.

我們為已建立的一切感到自豪，但我們更專注於接下來的發展。我們喜歡我們所處的位置，我們信任我們的流程，並對我們隨時間推進、交付差異化績效的能力充滿信心。感謝各位撥冗以及持續關注 RLI。我們期待在下個季度再次與各位交流。

It looks like we had a couple of folks queue up while you were offering those final remarks, Craig. So we will afford a couple more opportunities to ask questions, so apologies for the back and forth.

看起來在你做最後結語時，有幾位朋友已經排隊了，Craig。所以我們會再提供幾個提問的機會，來回切換還請見諒。

Hristian Getsov, Wells Fargo.

Wells Fargo 的 Hristian Getsov。

I just had a question on the net retention and property to take up 5 points. I just wanted to confirm that the uptick was purely reflective of lower reinsurance costs. And as we kind of get to the midyear renewals, are you guys thinking about any changes from a reinsurance strategy just given the lower costs?

我想問一下淨留存率以及財產險提高 5 個點的部分。我想確認一下，這次上升是否純粹反映再保成本下降。以及隨著我們接近年中續保，你們是否會因為成本較低而考慮在再保策略上做任何調整？

That's correct that the savings from reinsurance cost is why we retain more of our premium for the property business in the first quarter. For midyear renewals, what we have coming up is mainly our D&O and the errors and emissions coverages. So those professional liability coverages I just spoke about, that's coming up, as well as a little bit of an earthquake cover that we have.

沒錯，再保成本節省是我們在第一季對財產險業務保留更多保費的原因。至於年中續保，我們接下來主要是 D&O（董事及高階主管責任險）以及錯誤與遺漏（E&O）保障。因此，我剛提到的那些專業責任險保障將在近期續保，另外我們也有一小部分的地震保障會續保。

So most of our reinsurance costs are renewed on 1, 1, about 60% or so. We've just completed our surety renewal, and we have marine coming up. So I don't anticipate any huge changes in reinsurance throughout the rest of the year. I think the reinsurance market is a bit soft. So it's certainly a buyer's market. But I'm not going to predict anything material in terms of change for those renewals.

我們大部分的再保成本是在 1/1 續約，大約占 60% 左右。我們剛完成保證保險（surety）的續保，接下來還有海事險（marine）。所以我不預期今年剩餘時間再保會有任何重大變化。我認為再保市場有點偏軟，因此確實是買方市場。但我不會預測這些續保在變動方面會有任何實質性的改變。

Got it. And then I had a question on like, just given the private credit concerns we've kind of seen in the market. Obviously, a lot of the MGAs out there are back backed by other forms of alternative capital. But have you seen any alternative capital, maybe injections in the space start to moderate, or you don't think that will really turn the market until we get a large [indiscernible]?

了解。接著我想問一下，鑑於我們在市場上看到的一些私募信貸疑慮。顯然，很多 MGA 都由其他形式的替代資本支持。但你們是否看到替代資本（例如對該領域的注資）開始放緩？或者你不認為這會真正扭轉市場，除非出現一個很大的[聽不清]？

I don't know that it's necessarily moderated as a form of capital to the MGA space. But I will say that there are MGAs that have been backed by private capital in which that private capital is coming to the end of the life of a particular fund that has MGA fits in. And so there have been maybe a few more opportunities showing up with MGAs that we'd like to exit and move on to new ownership. But that's the influence that we see.

我不確定作為資本形式投入 MGA 領域是否真的有放緩。但我會說，有些由私募資本支持的 MGA，其背後的私募資本正接近某個基金存續期的尾聲，而該基金中包含了 MGA 的投資。因此，可能出現了更多機會：一些我們希望退出、並轉移到新所有權之下的 MGA。這就是我們所看到的影響。

Got it. And if I could just sneak one more. For the increased admitted competition that you guys flagged, is that dynamic mainly on the property side, or is there any other lines, particularly in casualty, where you're also seeing an increased level of activity?

了解。如果我可以再追問一個。你們提到的核准市場（admitted）競爭加劇，這個動態主要是在財產險端嗎？還是其他險種也有，特別是在責任險（casualty）方面，你們也看到活動水準提高？

We're seeing it a little bit on the cash side, not to the extent of property, but we do see where for some of our contractors where we're being a little pickier on the auto coverage. For some reason, some standard markets say we like the GL, and so we'll cover the auto as well, and we might lose it for that reason. I wouldn't call that a material impact on our book, but we're seen on the edges.

我們在責任險端也有看到一些，但沒有財產險那麼明顯。不過我們確實看到，對於部分承包商客戶，我們在汽車險保障上會更挑剔。出於某些原因，一些標準市場會說他們喜歡一般責任險（GL），因此也願意把汽車險一起承保，而我們可能因此失去該業務。我不會說這對我們的保單組合有實質影響，但在邊緣地帶確實看得到。

Meyer Shields, Keefe, Bruyette & Woods.

Keefe, Bruyette & Woods 的 Meyer Shields。

Aaron, is there any quantified the large surety loss, just so we can get a sense of what the underlying results are like in that segment?

Aaron，能否量化一下那筆大型保證保險損失，讓我們能了解該分部的基礎結果大概是什麼樣子？

Could you ask that one more time? Is it around the large surety loss?

你可以再問一次嗎？你是指那筆大型保證保險損失嗎？

Right. I was just looking for a quantification, so you can see how underlying results are, pardon me (inaudible)

對。我只是想要一個量化數字，這樣你就能看到基礎結果如何，抱歉（聽不清）。

If you look at our retention around surety, today, that retention is $5 million. Yes, in terms of reinsurance picking up any additional loss, and that's where Jen fit her comment in around any further development being somewhat contained.

如果你看我們目前在保證保險的自留額（retention），今天的自留額是 500 萬美元。是的，就再保承擔任何額外損失而言，這也就是 Jen 在她的評論中提到，任何進一步的發展在某種程度上會受到控制。

Okay. That's helpful. The second question, and I'm not sure that this is a legitimate one, but we've seen the property premiums declining for a few quarters. the underlying operating or underwriting expenses are still going up. And I understand that underwriters are going to be retained. But are there any opportunities worth pursuing to that, assuming that premium volume at second keeps falling, you don't have a consistent upward headwind of underwriting expenses?

好的，這很有幫助。第二個問題，我不確定這是否算合理，但我們看到財產險保費已經連續幾個季度下降，而基礎營運或核保費用仍在上升。我理解核保人員會被留任。但是否有任何值得追求的機會，假設保費量持續下滑，你們就不會持續面臨核保費用上升的逆風？

We are -- so here, we are always looking for opportunities. And I would say our E&S property underwriters are out. We've had a number of events and just one-on-one meeting with producers to look for other ways to participate in that marketplace. And there are some and that we're hitting on some of those. It's not enough to offset some of our main business, but it is there.

我們——在這裡，我們一直在尋找機會。我會說，我們的 E&S（超額及剩餘）財產險核保人員一直在外奔走。我們舉辦了多場活動，也與生產者進行一對一會議，尋找在該市場中參與的其他方式。我們確實找到一些，也正在切入其中一些機會。雖然不足以抵消我們主要業務的一部分下滑，但確實存在。

And I'll say we're also looking just more broadly. Obviously, marine is growing and awarding homeowners to help round out our property exposure because we do think the property is still well priced in general. So kind of using the tools within the business unit, but also outside of the business unit to make sure that we're seeing enough business and trying to offset some of that decline.

另外我也會說，我們也在更廣泛地尋找。顯然，海事險正在成長，而我們也在增加承作住宅險（homeowners），以協助平衡我們的財產曝險，因為我們確實認為整體而言財產險的定價仍然良好。因此，一方面運用事業單位內的工具，另一方面也運用事業單位外的方式，確保我們看到足夠的業務，並嘗試抵消部分下滑。

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.

各位女士先生，若您希望收聽本次電話會議的重播，可至 RLI 首頁 www.rlicorp.com 存取。今天的會議到此結束。感謝各位參與，祝您有美好的一天。各方現在可以掛線。