Hanover Insurance Group Inc (THG) 2025 Q2 法說會逐字稿

Good day, and welcome to The Hanover Insurance Group's second-quarter earnings conference call. My name is Joe, and I'll be your operator for today's call. (Operator Instructions). Please also note that this event is being recorded today.

大家好，歡迎參加漢諾威保險集團第二季財報電話會議。我叫喬，今天電話的接線生由我來接聽。（操作員指令）。另請注意，今天正在記錄此事件。

I would now like to turn the conference over to Oksana Lukasheva. Please go ahead.

現在我想將會議交給奧克薩娜·盧卡舍娃。請繼續。

Thank you, operator. Good morning and thank you for joining us for our quarterly conference call. We will begin today's call with prepared remarks from Jack Roche, our President and Chief Executive Officer; and Jeff Farber, our Chief Financial Officer. Available to answer your questions after our prepared remarks are Dick Lavey, Chief Operating Officer and President of Agency Markets; and Bryan Salvatore, President of Specialty Lines.

謝謝您，接線生。早上好，感謝您參加我們的季度電話會議。今天的電話會議將以我們總裁兼執行長傑克·羅奇 (Jack Roche) 和財務長傑夫·法伯 (Jeff Farber) 的準備好的發言開始。在我們準備好發言後，營運長兼代理市場總裁 Dick Lavey 和專業線總裁 Bryan Salvatore 將可以回答您的問題。

Before I turn the call over to Jack, let me note that our earnings press release, financial supplement and a complete slide presentation for today's call are available in the Investor section of our website at www.hanover.com. After the presentation, we will answer questions in the Q&A session. Our prepared remarks and responses to your questions today other than statements of historical fact, include forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995.

在將電話會議交給傑克之前，請允許我提醒您，我們的盈利新聞稿、財務補充文件以及今天電話會議的完整幻燈片演示文稿均可在我們網站 www.hanover.com 的“投資者”板塊找到。簡報結束後，我們將在問答環節解答您的問題。我們今天對您提出的問題的準備評論和答覆除歷史事實陳述外，還包括 1995 年《私人證券訴訟改革法案》所定義的前瞻性陳述。

These statements can relate to, among other things, our outlook and guidance for 2025, economic conditions and related effects, including economic and social inflation, potential recessionary impacts, tariffs as well as other risks and uncertainties such as severe weather and catastrophes that could affect the company's performance and/or cause actual results to differ materially from those anticipated.

這些聲明可能涉及我們對 2025 年的展望和指導、經濟狀況和相關影響，包括經濟和社會通膨、潛在的經濟衰退影響、關稅以及其他風險和不確定性，例如可能影響公司業績和/或導致實際結果與預期結果大不相同的惡劣天氣和災難。

We caution you with respect to reliance on forward-looking statements and in this respect, refer you to the forward-looking statements section in our press release, the presentation deck and our filings with the SEC. Today's discussion will also reference certain non-GAAP financial measures, such as operating income and accident year loss and combined ratios, excluding catastrophes, among others.

我們提醒您不要依賴前瞻性陳述，在這方面，請參閱我們的新聞稿、簡報和向美國證券交易委員會提交的文件中有關前瞻性陳述的部分。今天的討論也將參考某些非公認會計準則財務指標，例如營業收入、事故年度損失和綜合比率（不包括災難）等。

A reconciliation of these non-GAAP financial measures to the closest GAAP measure on a historical basis can be found in the press release, the slide presentation or the financial supplement, which are posted on our website, as I mentioned earlier. With those comments, I will turn the call over to Jack.

正如我之前提到的，這些非 GAAP 財務指標與歷史上最接近的 GAAP 指標的對帳可以在新聞稿、幻燈片簡報或財務補充文件中找到，這些都發佈在我們的網站上。聽完這些評論後，我會把電話轉給傑克。

Thank you, Oksana. Good morning, everyone, and thank you for joining us. Our excellent second quarter results reflect the extraordinary progress we've made as a company. We're proud of our solid execution and consistent discipline. Our team is energized and focused as we step into the next phase of our growth journey at a time that's both exciting and dynamic for our business.

謝謝你，奧克薩娜。大家早安，感謝大家的收看。我們第二季的優異業績反映了我們公司所取得的非凡進步。我們為我們的堅定執行和一貫紀律感到自豪。當我們進入成長之旅的下一階段時，我們的團隊充滿活力和專注，這對我們的業務來說既令人興奮又充滿活力。

At the core of our performance is a deeply experienced and talented team, a team that is fully aligned on our strategy, delivering a specialized and diversified portfolio of products through a select distribution model that targets the best independent agents in the business.

我們業績的核心是一支經驗豐富、才華橫溢的團隊，這支團隊完全符合我們的策略，透過針對業內最佳獨立代理商的精選分銷模式，提供專業化、多樣化的產品組合。

What truly sets us apart is not just our product offering. It's the relationships we built and the way we engage with the top agents in our business. Now more than ever, as agents and brokers across the spectrum are consolidating and actively redefining their business models, our differentiated approach is standing out and demonstrating great value.

真正讓我們與眾不同的不僅僅是我們提供的產品。這是我們建立的關係以及我們與業務中的頂級代理商互動的方式。現在，隨著各個領域的代理商和經紀人不斷整合並積極重新定義其業務模式，我們的差異化方法脫穎而出並展現出巨大的價值。

Today, with strong and broad-based earnings, our balanced and resilient portfolio is enabling us to remain agile and to perform very well through changing market conditions. We are intently focused on the dynamic market environment, which is characterized by significant variability across insurance product lines, industry classes and even geography.

如今，憑藉強勁而廣泛的盈利，我們均衡而有韌性的投資組合使我們能夠在不斷變化的市場條件下保持敏捷並取得良好的業績。我們專注於動態的市場環境，其特點是保險產品線、行業類別甚至地理位置之間存在顯著差異。

We are seeing a divergence between various lines and segments with property competition rising, while liability pressures are building and pricing in these lines is starting to firm. Our business outlook remains very positive. With widespread profitability and target level returns across most segments, we're well positioned to capitalize on emerging opportunities and to continue delivering high-quality results going forward.

我們看到，隨著房地產競爭的加劇，各個險種和細分市場之間出現了分化，而負債壓力也在不斷增大，這些險種的定價也開始走強。我們的業務前景依然非常​​樂觀。憑藉在大多數領域廣泛的盈利能力和目標水平的回報，我們完全有能力利用新興機會並繼續在未來提供高品質的成果。

Turning to our second quarter highlights. Operating ROE was 18.7%, a record for the second quarter. Additionally, we delivered operating earnings of $4.35 per diluted share and earnings growth of approximately 25% on an ex-CAT basis. Top line growth started to accelerate in the second quarter, and we expect that to strengthen as we progress through the second half of the year and into 2026.

談談我們第二季的亮點。營業股本回報率為18.7%，創第二季新高。此外，我們實現了每股攤薄營業收益 4.35 美元，扣除 CAT 因素後收益成長約 25%。營收成長在第二季開始加速，我們預計，隨著下半年和 2026 年的到來，營收成長將會增強。

Our overall combined ratio and ex-CAT combined ratio both outperformed our expectations, improving by approximately 7 points and 3 points, respectively, compared to the second quarter of last year. Our Personal Lines business performed very well in the quarter as we achieved more balanced growth and strong profitability with high-quality execution across the board.

我們的整體綜合成本率和扣除巨災因素後的綜合成本率均超出預期，與去年第二季度相比分別提高了約 7 個百分點和 3 個百分點。我們的個人險業務在本季度表現非常出色，我們透過全面高品質的執行實現了更加均衡的成長和強勁的獲利能力。

Our net written premium growth trajectory continues to build, driven by renewal price increases, improving retention and rising new business activity. Notably, we delivered approximately 8% growth in our targeted diversification states, highlighting the effectiveness of our strategic focus. We're achieving quarter-over-quarter PIF growth in key geographies where we're targeting profitable expansion that aligns with our margin objectives and enhances diversification across our business.

在續保價格上漲、保留率提高和新業務活動增加的推動下，我們的淨承保保費成長軌跡持續增強。值得注意的是，我們在目標多元化州實現了約 8% 的成長，凸顯了我們策略重點的有效性。我們在主要地區的 PIF 實現了環比成長，我們的目標是實現盈利性擴張，這與我們的利潤率目標一致，並增強了我們業務的多樣化。

We remain encouraged by the quality of Personal Lines new business with nearly all of it concentrated in account business. Our full account strategy continues to serve us well, enabling us to deliver holistic long-term solutions to customers and meet their needs with products that are more resilient to the competitiveness of the monoline auto market.

個人險新業務的品質仍然令人鼓舞，其中幾乎所有業務都集中在帳戶業務上。我們的全帳戶策略繼續為我們帶來良好的服務，使我們能夠向客戶提供整體的長期解決方案，並透過更能適應單一汽車市場競爭的產品來滿足他們的需求。

With approximately 89% of our personal lines business written on an account basis, we experienced higher customer retention and loyalty. Additionally, with ongoing challenges and complexities around coverage in many states, homeowners is gradually becoming a lead line, further emphasizing the effectiveness of our account approach.

我們的個人險業務約有 89% 是以帳戶為基礎的，因此我們的客戶保留率和忠誠度更高。此外，隨著許多州在保險覆蓋方面持續面臨的挑戰和複雜性，房主正逐漸成為主要關注點，這進一步強調了我們的帳戶方法的有效性。

Profitability continues to improve in Personal Lines, supported by rate and terms earning in and lower frequency of auto collision and homeowners’ claims. The cumulative impact of pricing as well as improved terms and conditions have significantly strengthened the underlying economics of our home book of business.

個人險的盈利能力繼續提高，這得益於費率和條款的提高以及汽車碰撞和房主索賠頻率的降低。定價的累積影響以及改善的條款和條件大大增強了我們本土業務的潛在經濟效益。

That said, we still intend to maintain significant price increases given the higher severity and unpredictable nature of cat losses. In terms of tariffs, while we have not yet seen a material impact, we do anticipate some minor loss cost increases emerging in the back half of the year. For this reason, we're not in a hurry to decelerate auto pricing significantly.

儘管如此，鑑於巨災損失的嚴重性和不可預測性，我們仍然打算維持大幅漲價。就關稅而言，雖然我們尚未看到實質影響，但我們預計今年下半年會出現一些小幅損失成本增加。因此，我們並不急於大幅降低汽車定價速度。

We are actively monitoring market conditions for any tariff impacts, and we are ready to adjust pricing swiftly and precisely if and when tariff-related pressures materialize. Overall, our Personal Lines book is exceptionally strong, and the progress we've made puts us in an opportune position to capitalize on a complex and dynamic marketplace. We believe we are well equipped to sustain profit margins while executing on our targeted growth strategy.

我們正在積極監測市場狀況以了解任何關稅影響，一旦出現與關稅相關的壓力，我們隨時準備迅速且準確地調整價格。整體而言，我們的個人險業務非常強勁，我們所取得的進展使我們處於有利地位，可以利用複雜而充滿活力的市場。我們相信，我們有能力在執行目標成長策略的同時維持利潤率。

Turning to Core Commercial. We're pleased with our overall performance, having diligently maintained healthy margins in the second quarter despite an evolving market environment. Core Commercial profitability remains solid and our sub-90s ex-CAT combined ratio underscores the effectiveness of our strategic portfolio actions in prior quarters.

轉向核心商業。儘管市場環境不斷變化，我們仍對第二季的整體表現感到滿意，並努力保持健康的利潤率。核心商業獲利能力依然穩健，扣除巨災因素後的綜合成本率低於 90%，凸顯了我們前幾季策略性投資組合行動的有效性。

Net written premium growth improved sequentially in Q2, fueled by accelerated top line momentum in Small Commercial, where our more targeted pricing strategy is beginning to produce the desired results. We're encouraged by the growth acceleration we achieved in the quarter, and we have visibility for improved growth through the year as we grow new business and as we strike the proper balance between pricing and retention in our renewal book.

淨承保保費成長在第二季較上季提高，這得益於小型商業保險業務營收成長動能的加速，我們更有針對性的定價策略開始產生預期的效果。我們對本季實現的成長加速感到鼓舞，隨著新業務的成長以及我們在續約書中在定價和保留之間取得適當的平衡，我們有望實現全年成長的改善。

We have multiple small commercial initiatives underway to drive even stronger new business activity, including expansion of our TAP Sales platform into workers' compensation, bringing our business owners advantage offering to life sciences organizations and multiple other sales initiatives. We also appointed new agents, further expanding distribution to improve our relevancy and access to additional market opportunities.

我們正在實施多個小型商業計劃，以推動更強大的新業務活動，包括將我們的 TAP 銷售平台擴展到工人賠償領域，為我們的企業主提供向生命科學組織提供的優勢以及其他多項銷售計劃。我們還任命了新的代理商，進一步擴大分銷範圍，以提高我們的相關性並獲得更多市場機會。

We are pleased with our improved performance and continued stability of our middle market business, particularly in the property-oriented segments. This progress reflects the significant underwriting actions we've taken over the past several quarters.

我們對中階市場業務（尤其是房地產領域）的業績提升和持續穩定感到滿意。這項進展反映了我們過去幾季所採取的重大承保行動。

Most recently, we have witnessed some elevated competition in some areas of the middle market sector, and we have selectively passed on certain new business opportunities where pricing was below our thresholds or where terms and conditions did not meet our underwriting guidelines.

最近，我們注意到中端市場某些領域的競爭加劇，我們有選擇地放棄了一些定價低於我們的門檻或條款和條件不符合我們的承保準則的新業務機會。

At the same time, we're sharpening our focus on high opportunity middle market sectors like technology, life sciences and professional services and positioning for future opportunities as the liability market shows signs of firming. In these targeted industry segments, we are benefiting from strong brand recognition with our agents and a steady flow of submissions.

同時，隨著負債市場出現回溫跡象，我們將更加關注科技、生命科學和專業服務等高機會中端市場領域，並為未來機會做好準備。在這些目標產業領域，我們受益於代理商的強大品牌認知度和穩定的提交流。

Moving on to Specialty. Net written premium growth was 4.6%, and we achieved an impressive mid-80s combined ratio. Importantly, our continued exceptional profitability allows us the flexibility to adjust pricing strategically to support our growth objectives. We continue to remain conservative on programs business, and we're not chasing underpriced accounts in certain property-focused lines.

轉向專業。淨承保保費成長率為 4.6%，綜合成本率達到了令人印象深刻的 80% 左右。重要的是，我們持續卓越的獲利能力使我們能夠靈活地策略性地調整定價，以支持我們的成長目標。我們在專案業務上繼續保持保守態度，我們不會在某些以房地產為重點的業務線上追逐低價帳戶。

At the same time, we delivered upper single digit to double-digit growth across E&S, which grew 22%, surety up 13% and health care, which increased 8%. In E&S, the environment is favorable in the lower mid-market and smaller-sized account space, which is our sweet spot, and we continue to gain momentum in this area. We have also delivered a solid 7% growth in our industry-leading marine business. We're especially pleased with the growth we are achieving in these lines as they are among our most profitable.

同時，我們在 E&S 領域實現了高個位數至兩位數的成長，成長了 22%，擔保業務成長了 13%，醫療保健業務成長了 8%。在 E&S 領域，中低端市場和小型帳戶領域的環境良好，這是我們的優勢所在，我們將繼續在這一領域獲得發展動力。我們行業領先的海洋業務也實現了 7% 的穩健成長。我們對在這些產品線上取得的成長感到特別高興，因為它們是我們最賺錢的產品線之一。

Looking forward, we continue to see many opportunities across specialty, particularly in the smaller-sized retail agency market, where pricing remains solid and growth is achievable at target or above target returns. Backed by deep expertise, our team is well positioned to seize these opportunities, further establishing specialty as a strong and accelerating growth engine.

展望未來，我們將繼續看到專業領域的許多機遇，特別是在規模較小的零售代理市場，該市場的價格保持穩定，並且可以實現目標回報或高於目標回報的成長。憑藉著深厚的專業知識，我們的團隊能夠抓住這些機遇，進一步確立專業化作為強大且加速成長引擎的地位。

Before I close, I want to highlight a critical pillar of our overall strategy, our investments in data and analytics and technology for the future. We're making deliberate strategic investments that are fueling smarter, more scalable growth. These investments are positioning us to win in a rapidly evolving industry landscape.

在結束之前，我想強調我們整體策略的一個重要支柱，即我們對未來數據、分析和技術的投資。我們正在進行深思熟慮的策略性投資，以推動更聰明、更具可擴展性的成長。這些投資使我們在快速發展的產業格局中佔據優勢。

For example, while we continue to focus on point-of-sale platforms to support business generation, we are also leveraging generative AI and AI capabilities to automate account submission ingestion, build triage functionality and streamline workflow automation. These technologies are unlocking broader value creation across the enterprise.

例如，雖然我們繼續專注於銷售點平台來支援業務生成，但我們也在利用生成性人工智慧和人工智慧功能來自動化帳戶提交提取、建立分類功能並簡化工作流程自動化。這些技術正在釋放整個企業更廣泛的價值創造。

For instance, in E&S, we are developing workflow automation and AI-powered triage functions intended to double throughput on high-quality submissions and speed up the quote turnaround with our best agents. Workflow transformation in underwriting, claims and service functions is a top priority, and we are excited about the value creation that comes from operational efficiency, enhanced decision-making and a more seamless customer experience across these functions.

例如，在 E&S 領域，我們正在開發工作流程自動化和人工智慧分類功能，旨在使高品質提交的吞吐量翻倍，並加快我們最佳代理商的報價週轉速度。核保、索賠和服務職能的工作流程轉型是重中之重，我們對這些職能帶來的營運效率、增強的決策能力和更無縫的客戶體驗所帶來的價值創造感到興奮。

Our underwriting claims and service professionals are very excited about the ways in which these technologies can enhance their effectiveness and their job satisfaction. We remain highly disciplined in our investment approach, directing resources toward the areas with the greatest potential impact.

我們的核保索賠和服務專業人員對這些技術如何提高他們的效率和工作滿意度感到非常興奮。我們在投資方法上始終保持高度自律，將資源投入最具潛在影響力的領域。

Notably, more than 40% of our employees interact with customers and agents daily, processing millions of calls, e-mails and transactions. This underscores the significant opportunity we have to streamline and elevate these critical touch points. Ultimately, our focus is on empowering our people and partners with tools that make us faster, sharper and more connected, charting a course for long-term success.

值得注意的是，我們超過 40% 的員工每天與客戶和代理商互動，處理數百萬通電話、電子郵件和交易。這凸顯了我們簡化和提升這些關鍵接觸點的重大機會。最終，我們的重點是為我們的員工和合作夥伴提供工具，讓我們變得更快、更敏銳、更緊密，為長期成功制定路線。

We delivered outstanding second quarter results, surpassing our target returns and accelerating growth, which demonstrate the strong positive momentum we are carrying into the second half of the year. We couldn't be more excited about our prospects moving forward. With that, I will now turn the call over to Jeff.

我們第二季的業績表現出色，超越了目標回報並加速成長，這表明我們在下半年保持了強勁的積極勢頭。我們對未來的前景感到無比興奮。說完這些，我現在將電話轉給傑夫。

Thank you, Jack, and good morning, everyone. We are very pleased with our outstanding results in the second quarter, which reflect continued momentum in our earnings trajectory and an improving top line. Each segment of our business performed very well, further validating the strength and resilience of our diversified portfolio.

謝謝你，傑克，大家早安。我們對第二季的出色業績感到非常滿意，這反映了我們獲利軌蹟的持續成長和營業收入的不斷提高。我們業務的每個部分都表現得非常好，進一步驗證了我們多元化投資組合的實力和彈性。

In Personal Lines, we achieved significant margin improvement, supported by our targeted actions and strong pricing. Our Specialty segment outperformed our expectations, and in Core Commercial, as we anticipated, a few anomalous large property losses we experienced in Q1 subsided and performance in this book remains very strong.

在個人險方面，由於我們採取的有針對性的行動和強有力的定價，我們的利潤率顯著提高。我們的專業領域表現超出了我們的預期，而在核心商業領域，正如我們預期的那樣，我們在第一季度經歷的一些異常大額財產損失已經消退，並且該賬簿的表現仍然非常強勁。

In the second quarter, we delivered a combined ratio of 92.5%, an improvement of 6.7 points year-over-year. Excluding catastrophes, our combined ratio of 85.5% improved 3 points compared to last year's second quarter. Our current accident year loss ratio, excluding cat, was 56.1%, improving 2.8 points from prior year quarter, led by strong improvement in personal lines and in specialty.

第二季度，我們的綜合成本率為 92.5%，年增 6.7 個百分點。除災難外，我們的綜合比率為 85.5%，與去年第二季相比提高了 3 個百分點。我們本事故年度的損失率（不包括巨災保險）為 56.1%，較去年同期改善 2.8 個百分點，主要得益於個人險和專業險的強勁改善。

Despite a relatively active quarter for severe convective storms, catastrophe losses of 7 points came in below our second quarter assumption, highlighting the effectiveness of our catastrophe management actions. This was inclusive of 0.4 points of prior year favorable cat development.

儘管本季度強對流風暴相對活躍，但 7 點的災難損失低於我們第二季度的假設，凸顯了我們災難管理行動的有效性。這包括前一年有利的 0.4 個百分點的貓發展。

Our expense ratio of 30.6% was consistent with our expectations for the quarter and was 20 basis points better than a year ago. We continue to maintain a thoughtful approach to expense management, keeping costs aligned with our financial goals. Net investment income increased 16.7% to $105.5 million and remains a significant contributor to our overall financial performance.

我們的費用率為 30.6%，與本季的預期一致，比去年同期好 20 個基點。我們繼續保持周到的費用管理方法，使成本與我們的財務目標保持一致。淨投資收入成長 16.7% 至 1.055 億美元，仍是我們整體財務表現的重要貢獻者。

Second quarter favorable ex-cat prior year reserve development of $18.2 million included favorability across each segment. We are experiencing favorability in property and at the same time, are exercising vigilance in liability lines. We continue to take a prudent and data-driven approach to reserving to stay ahead of the trends.

第二季度，除重大損失外，上年同期儲備金成長 1,820 萬美元，各部門均表現良好。我們在財產方面獲得青睞，同時在責任上保持警覺。我們繼續採取審慎和數據驅動的方式進行儲備，以保持領先地位。

In Specialty, favorable development was $12.5 million or 3.5 points with favorability in professional and executive lines claims made business and marine. In Personal Lines, favorable prior year reserve development was $2.6 million or 0.4 points with favorability in both auto and home. And in Core Commercial, favorable prior year reserve development was $3 million or 0.5 points.

在專業領域，有利的發展是 1250 萬美元或 3.5 個百分點，在商業和海事方面的專業和行政線路索賠方面表現良好。在個人險方面，去年的儲備金發展勢頭良好，為 260 萬美元，增長 0.4 個百分點，汽車和住宅險方面均表現良好。在核心商業領域，去年的儲備金發展情況良好，為 300 萬美元，即 0.5 個百分點。

Favorability in CMP and to a lesser extent, workers' comp was partially offset by increased reserving in commercial auto in response to rising severity and litigation activity. Our commercial liability portfolio is thoughtfully constructed to mitigate volatility with lower policy limits, virtually no monoline or long-haul trucking in auto, no exposure to public company D&O and no stand-alone or unsupported umbrella business.

為了應對日益嚴重的訴訟活動和日益頻繁的訴訟，商業汽車的儲備金增加，部分抵消了 CMP 和工人補償（程度較小）的青睞。我們的商業責任險組合經過精心構建，旨在透過降低保單限額來減輕波動，幾乎沒有單一險種或長途貨運汽車，不涉及上市公司 D&O，也沒有獨立或不受支持的傘式業務。

We maintain a strong reserve position, reflecting the disciplined and prudent approach we've taken over time to ensure reserve adequacy and resilience. Now I'll further discuss each segment's current accident year results, starting with Personal Lines. This business generated a very strong current accident year ex-CAT combined ratio of 84.8% for the second quarter, reflecting 5.4 points of improvement from the prior year period.

我們保持強大的儲備地位，這反映了我們長期以來為確保儲備充足性和彈性而採取的嚴謹和審慎的態度。現在我將進一步討論每個細分市場的當前事故年度結果，從個人保險開始。該業務在第二季度產生了非常強勁的本事故年度除 CAT 之外的綜合成本率 84.8%，比去年同期提高了 5.4 個百分點。

This was driven by the benefit of earned pricing above loss trends and favorable property frequency. Our personal auto ex-CAT current accident year loss ratio was 66.2%, an improvement of 3.9 points compared to the prior year quarter, driven by earned pricing and a continued loss frequency benefit. We're seeing favorable frequency trends across all coverages, particularly in collision, while remaining prudent on elevated bodily injury severity driven by larger catastrophic type claims.

這是由於獲利定價高於損失趨勢以及有利的財產頻率。我們的個人汽車保險（不包括 CAT）本事故年度損失率為 66.2%，較去年同期改善 3.9 個百分點，這得益於已獲定價和持續的損失頻率效益。我們看到所有保險的賠償頻率趨勢都呈現良好趨勢，尤其是在碰撞險方面，同時，我們仍對因災難性索賠金額較大而導致的人身傷害嚴重程度上升保持謹慎。

We are also closely monitoring auto property severity for signs of tariff impact. But to date, we have not observed much of an effect. Turning to homeowners. We posted substantial ex-CAT current accident year loss ratio enhancement, improving 6.4 points.

我們也密切關注汽車產業的嚴重程度，以了解關稅影響的跡象。但到目前為止，我們還沒有觀察到太大的效果。轉向房主。我們公佈了本年度 CAT 以外的事故損失率大幅提高的情況，提高了 6.4 個百分點。

This was favorable relative to our expectations, driven by strong earned pricing, some impact of benign weather and lower attritional loss frequency, which we partially attribute to deductible changes leading to fewer small claims. Similar to Q1, Personal lines umbrella was quieter in the quarter. We continue to vigilantly monitor umbrella to stay ahead of evolving industry trends while achieving healthy price increases of approximately 23% in Q2.

這比我們的預期要好，主要是因為強勁的定價、溫和的天氣的影響以及較低的損耗頻率，我們將其部分歸因於免賠額的變化導緻小額索賠減少。與第一季類似，本季個人險業務較為平靜。我們將繼續密切關注雨傘市場，以保持領先於不斷變化的行業趨勢，同時在第二季度實現約 23% 的健康價格上漲。

Both auto and home posted strong pricing gains in the second quarter. Auto pricing at 9.8% was slightly lower than in the first quarter, but still above long-term loss trend. Home pricing ticked up sequentially to 15.7%. Our homeowner’s book is fully transitioned to new terms and conditions in targeted states with overall home exposures back to positive levels and consistent with longer-term historical averages.

第二季汽車和住宅價格均強勁上漲。汽車價格上漲 9.8%，略低於第一季，但仍高於長期虧損趨勢。房價季增 15.7%。我們的房主帳簿已完全過渡到目標州的新條款和條件，整體房屋風險敞口已恢復到正水平，並與長期歷史平均水平保持一致。

We expect overall pricing to remain strong through the remainder of the year. Our pricing remains ahead of loss trends, positioning us to continue to achieve target profitability for 2025 in Personal Lines. Personal Lines growth was 3.7%, an increase from the first quarter.

我們預計今年剩餘時間內整體價格仍將保持強勁。我們的定價仍領先於損失趨勢，使我們能夠繼續實現 2025 年個人險的獲利目標。個人險種成長率為 3.7%，較第一季有所上升。

New business momentum is especially evident in our target diversification states with double-digit growth both sequentially and year-over-year. We are nearing the completion of planned exposure reductions. And while the geographic rebalancing of our personal lines portfolio will continue, we expect to return to positive PIF expansion in the fourth quarter of this year. Now turning to our Core Commercial segment. We delivered a combined ratio of 93% and a combined ratio, excluding catastrophes of 88.9%.

新的業務勢頭在我們的目標多元化州尤為明顯，環比和同比均實現兩位數增長。我們即將完成計劃中的減少風險的計劃。雖然我們將繼續進行個人險組合的地域再平衡，但我們預計今年第四季 PIF 將恢復正成長。現在轉向我們的核心商業部門。我們的綜合比率為 93%，不包括巨災的綜合比率為 88.9%。

We posted a strong underlying loss ratio of 56.5% -- this was 80 basis points above Q2 last year, which was a low watermark for the 2024 year. As expected, our second quarter 2025 loss ratio is an improvement over the full year 2024. We're seeing favorability in CMP as pricing above loss trend has earned in and large loss activity normalized from elevated levels last quarter.

我們公佈的潛在損失率高達 56.5%——比去年第二季高出 80 個基點，這是 2024 年的低水位。正如預期的那樣，我們 2025 年第二季的損失率比 2024 年全年有所改善。我們看到 CMP 的青睞，因為高於虧損趨勢的定價已經盈利，並且大額虧損活動從上個季度的高點恢復正常。

In commercial auto, we remain cautious in our current accident year picks. We expect pricing to elevate, seeking double-digit increases in this line. Net written premiums grew 4.4%, led by 5.6% growth in Small Commercial, driven by double-digit new business growth and strong stable retention. Middle Market grew 2.4%, reflecting disciplined execution in a more competitive environment.

在商用汽車領域，我們對當前事故年份的選擇仍持謹慎態度。我們預計價格將會上漲，尋求該系列產品實現兩位數的成長。淨承保保費成長 4.4%，其中小型商業險成長 5.6%，這得益於兩位數的新業務成長和強勁的穩定留存。中型市場成長了 2.4%，反映出在競爭更加激烈的環境中執行更加嚴格。

Moving on to Specialty. Our current accident year loss ratio ex-CAT was 49.0%, favorable to both expectations and the prior year quarter, primarily driven by excellent property results in Marine and Hanover Specialty Industrial, while liability coverages are tracking within expectations.

轉向專業。我們本年度事故損失率（不包括 CAT）為 49.0%，高於預期和去年同期，主要得益於海事和漢諾威特種工業的出色財產業績，而責任險承保範圍也在預期範圍內。

We continue to expect go-forward results to be in line with our low 50s long-term target. Specialty renewal pricing was 7.8%, while at the same time, retention improved sequentially to 81.8%, underscoring the continued appetite for our offerings. Pricing remains strong and in line with loss trends.

我們仍然預計未來的結果將與我們 50 年代初期的長期目標一致。專業續約價格為 7.8%，同時保留率較上季提高至 81.8%，凸顯了對我們產品的持續需求。定價依然強勁且符合虧損趨勢。

We are very pleased with the performance in our specialty book and remain confident in our positioning to further capture attractive growth opportunities in our markets. Turning to reinsurance. We completed a successful renewal of our property treaties on July 1. The market response was very favorable, reflecting the effectiveness of our property and catastrophe management initiatives.

我們對我們的專業書籍的表現非常滿意，並對我們的定位充滿信心，可以進一步抓住我們市場中有吸引力的成長機會。轉向再保險。我們於 7 月 1 日成功完成了財產條約的續約。市場反應非常好，反映了我們的財產和災難管理措施的有效性。

The highlights of our current property reinsurance program are as follows: We renewed both treaties, our property per risk and cat occurrence, maintaining or enhancing structures relative to prior year. We issued our third and largest cat bond with expanded coverage. Positive investor interest allowed us to upsize this bond to $200 million at the low end of price guidance.

我們目前的財產再保險計劃的亮點如下：我們續簽了兩項條約，即我們的財產風險和巨災事件條約，維持或加強了與前一年相關的結構。我們發行了第三筆也是最大的一筆巨災債券，擴大了覆蓋範圍。投資者的積極興趣使我們能夠以指導價格的低端將該債券的規模擴大至 2 億美元。

We also added a new $100 million traditional reinsurance layer on top of our existing reinsurance tower. Taken together, these changes have resulted in a $150 million increase in reinsurance limits in our cat occurrence program that now exhausts at $2.05 billion while maintaining our $200 million retention.

我們也在現有的再保險業務基礎上增加了價值 1 億美元的新傳統再保險層。綜合起來，這些變化導致我們的巨災事故計劃的再保險限額增加了 1.5 億美元，目前已用盡 20.5 億美元，同時我們仍保留 2 億美元的留存額。

We achieved better-than-expected financial outcomes, highlighted by a double-digit reduction in risk-adjusted reinsurance costs on our loss-free cat program. The property per risk maintained the attachment point and was priced at better than original expectations.

我們取得了好於預期的財務業績，其中最突出的是無損失巨災保險計劃的風險調整後再保險成本實現了兩位數的下降。每項風險的財產都維持了附著點，並且定價優於最初的預期。

Moving on to investment performance. Net investment income increased 16.7% in the quarter, driven by higher earned yields in our fixed income portfolio, reflecting both the favorable rate environment and continued growth in operating cash flows. And at the same time, our underwriting profitability is generating solid cash flows and reinforces the financial foundation of our business.

繼續討論投資績效。本季淨投資收入成長 16.7%，這得益於我們固定收益投資組合的收益率上升，反映了有利的利率環境和經營現金流的持續成長。同時，我們的承保獲利能力正在產生穩健的現金流並鞏固我們業務的財務基礎。

Together with attractive yields, these elements not only support the continued growth and resilience of our asset base but also position us to achieve meaningfully higher net investment income over time, further contributing to the overall earnings power of the company. We're very pleased with the positioning and performance of our investment portfolio.

這些因素加上誘人的收益率，不僅支持我們資產基礎的持續成長和韌性，而且使我們能夠隨著時間的推移實現更高的淨投資收益，進一步提升公司的整體獲利能力。我們對我們的投資組合的定位和表現非常滿意。

Moving on to our equity and capital position. Our book value increased 6% sequentially and 13.2% year-to-date. We continue to participate in share buybacks in Q2, demonstrating our commitment to returning capital to shareholders as a key component of our capital management strategy.

繼續討論我們的股權和資本狀況。我們的帳面價值較上季成長 6%，今年迄今成長 13.2%。我們在第二季度繼續參與股票回購，表明我們致力於向股東返還資本，這是我們資本管理策略的關鍵組成部分。

From the beginning of April through July 28, the company repurchased approximately 295,000 shares of common stock totaling $48.2 million, of which approximately 170,000 were purchased during the second quarter of 2025 for $27.6 million, with the remaining balance purchased through a 10b5-1 plan during July.

從 4 月初到 7 月 28 日，該公司回購了約 295,000 股普通股，總額為 4,820 萬美元，其中約 170,000 股是在 2025 年第二季度以 2,760 萬美元購買的，剩餘部分是在 7 月份透過 10b5-1 計劃購買的。

We have approximately $244 million of remaining capacity under our existing share repurchase program. Our third quarter cat load is expected to be 6.8%. Now that our aggregation initiatives in personal lines and the underwriting initiatives in middle market are mostly complete, we are well positioned to profitably grow these portfolios along with Small Commercial and Specialty.

根據我們現有的股票回購計劃，我們剩餘的容量約為 2.44 億美元。我們第三季的貓負荷預計為 6.8%。現在，我們在個人保險方面的聚合計劃和中端市場的承保計劃已基本完成，我們已做好準備，在小型商業險和專業險的同時實現這些投資組合的盈利增長。

Accordingly, we expect growth of net written premiums to be in the 6% to 7% range for the second half of 2025. Through the first six months of the year, we've delivered strong results that highlight the momentum we've built across the business, demonstrated by year-to-date operating return on equity of 18%, with both our underwriting and investment performance contributing.

因此，我們預計 2025 年下半年淨承保保費成長率將在 6% 至 7% 之間。今年上半年，我們取得了強勁的業績，凸顯了我們在整個業務中建立的勢頭，年初至今的營業股本回報率為 18%，這得益於承保和投資業績的貢獻。

The momentum we've built gives us great confidence in our ability to continue delivering outstanding results in the second half of the year. We are very optimistic about our future with the fundamentals of our business strong, and we remain intently focused on executing our strategy. In this dynamic environment, we are well positioned to deliver success this year and beyond.

我們所建立的勢頭讓我們對在下半年繼續取得優異成績的能力充滿信心。由於我們業務基礎強勁，我們對未來非常樂觀，並且我們將繼續專注於執行我們的策略。在這種充滿活力的環境中，我們已準備好在今年及以後取得成功。

With that, we are ready to open the line for questions. Operator?

現在，我們準備開始回答問題了。操作員？

(Operator Instructions)

（操作員指示）

Michael Phillips, Oppenheimer.

麥可·菲利普斯，奧本海默。

Thank you. Good morning. I wanted to start with the Specialty segment. I kind of want to ask about the kind of decelerating rate environment there. And at what point does your current book kind of bump up against loss trends there, even though you're still getting phenomenal results. But maybe, Jack, your opening comments are part of the answer to that.

謝謝。早安.我想從專業領域開始。我想問一下那裡的減速環境。儘管您仍然獲得了驚人的成果，但什麼時候您目前的帳簿會遭遇虧損趨勢？但是，傑克，也許你的開場白就是這個問題的部分答案。

In fact, I kind of want to see if that's the case because you're really focused on the E&S and the small retail accounts there. And maybe the answer is over time that specialty segment starts to see a bit of a mix change than what your current book has. Anyway, that's the question.

事實上，我想看看情況是否如此，因為您確實關注 E&S 和那裡的小型零售帳戶。答案可能是，隨著時間的推移，專業領域開始出現與當前書籍不同的變化。無論如何，這就是問題所在。

Great. Well, thanks for the question, Mike. I'll let Bryan chime in here, but I'm really proud of the fact that over the course of the last decade plus, we've developed a really diversified now high-performing specialty business that really allows us to emerge to the market opportunities, but at the same point, understand where the competition lies and how we adjust to that. So -- but Bryan, you can speak more specifically about how you're managing through the competitive landscape.

偉大的。嗯，謝謝你的提問，麥克。我讓布萊恩在這裡插嘴，但我真的為這樣一個事實感到自豪：在過去十多年裡，我們已經開發出了一個真正多元化、如今表現優異的專業業務，這讓我們真正能夠抓住市場機遇，但同時，我們也了解競爭在哪里以及我們如何適應這種競爭。所以——但是布萊恩，你可以更具體地談談你如何在競爭環境中進行管理。

Yes, sure. And Mike, a lot of your comments are really consistent with the way we're thinking about this, right? So I would start by saying the pricing is still resilient. It's still consistent with loss trend. And as you mentioned, the ongoing profitability of our portfolio looks very good.

是的，當然。麥克，你的許多評論與我們對此的看法確實一致，對嗎？因此，我首先要說的是，價格仍然具有彈性。仍然符合虧損趨勢。正如您所說，我們投資組合的持續獲利能力看起來非常好。

But then where you kind of touched on -- that Jack touched on, too, right, that we have increasingly differentiated ourselves in the ability to write that lower middle market and the small business where there is less volatility and the pricing can remain more resilient.

但是，正如您所提到的——傑克也提到了，我們在服務中低端市場和小型企業方面的能力日益突出，這些市場的波動性較小，定價可以保持更強的彈性。

And so as we continue to invest there and drive growth into the small part of our portfolio, really making meaningful differentiation for our agents because they're investing in streamlining the placements of that kind of business. We're just really well positioned.

因此，隨著我們繼續在那裡投資並推動我們投資組合中一小部分的成長，我們確實為我們的代理商帶來了有意義的差異化，因為他們正在投資簡化此類業務的配置。我們的定位確實很有利。

Okay. Yeah, thank you. And I hate to ask on this one because it seems like a small number, but -- the commercial auto charge, it's not a big piece of your business, but we've seen sort of a trend with a number of companies where one quarter makes two quarters, makes three quarters. So may just confidence that that's not going to be the case for you guys that this could be the start of a trend in commercial auto.

好的。是的，謝謝。我不想問這個問題，因為這似乎是一個很小的數字，但是——商用汽車費用，這不是你們業務的很大一部分，但我們已經看到許多公司出現一種趨勢，即一個季度帶來兩個季度，三個季度。因此，我可以確信，你們不會遇到這種情況，這可能是商用汽車趨勢的開始。

Thank you, Mike. We are favorable development in all segments. There's $3 million favorable in core. And as we said, CMP and workers' comp had some favorability in (inaudible) auto, we added to reserves. All of those items in core commercial were single-digit nonmaterial amounts.

謝謝你，麥克。我們在各個領域都取得了良好的發展。核心中有 300 萬美元的折扣。正如我們所說，CMP 和工人補償在（聽不清楚）汽車方面有一定的優勢，我們增加了儲備。核心商業中的所有項目都是個位數的非物質金額。

For us, -- the commercial auto is a relatively small line. It's about $400 million of premium. We've actually had PIF shrinking over the last several years. And we've got a fairly small risk profile and the increase in reserves is IBNR. In fact, our case reserve levels are down and IBNR is up significantly.

對我們來說，商用車是一個相對較小的產品線。保費大約是4億美元。事實上，在過去幾年裡，PIF 一直在縮減。我們的風險狀況相當小，儲備金的增加是 IBNR。事實上，我們的案件儲備水準下降了，而 IBNR 卻大幅上升了。

Okay, no thanks, Jeff. And last one, a quick small one, Jeff. You mentioned in your comments on personal auto, bodily injury severity. Are you seeing more of those kind of higher type claims happen in this quarter that might suggest some more insights there? Or is there anything kind of anomalous this quarter?

好的，不用了，傑夫。最後一個，傑夫，一個小問題。您在評論中提到了個人汽車、人身傷害的嚴重程度。您是否看到本季度出現更多此類較高類型的索賠，這可能會給您帶來更多見解？或者本季有什麼異常情況嗎？

Largely just prudence there. With the frequency benefit that we're seeing, it's just appropriate what we're hearing in the market and worrying about liability and lawyer involvement.

很大程度上只是謹慎而已。就我們所看到的頻率效益而言，我們在市場上聽到的以及對責任和律師介入的擔憂是恰當的。

Yeah, okay, good. Thank you. Appreciate it.

是的，好的，很好。謝謝。非常感謝。

Mike Zaremski, BMO.

麥克·扎雷姆斯基，BMO。

Good morning. Thanks. On the catastrophe load guidance for 3Q, I believe I heard a number in the high 6s. Can you provide color if that's mostly -- that's better than, I think, consensus. Is that improved view coming from much more so personal lines or a little commercial lines, too?

早安.謝謝。關於第三季的災難負荷指導，我相信我聽到的數字是 6% 以上。如果這主要是 — — 我認為這比共識要好，您能否提供一些細節？這種改進的觀點是否更多來自個人方面，還是也來自一點商業方面？

And is there still a potential trajectory for the cat load to improve in outer years depending on how kind of the homeowners reshaping takes place or that's baking in much of the portfolio reshaping?

並且，根據房主重塑的方式或投資組合重塑的大部分內容，巨災負擔在未來幾年是否仍有改善的潛在軌跡？

Yes, 6.8% is the number that we gave for the third quarter. And again, that's an average annual load for the quarter versus a tail type of measurement. Over the last several years, we've done a lot of work in personal lines, as you know, with deductibles, and that's helped home a lot.

是的，我們給的第三季數字是 6.8%。再次強調，這是該季度的平均年負荷，而不是尾部測量。過去幾年來，我們在個人保險方面做了很多工作，如您所知，包括免賠額，這對家庭保險有很大幫助。

And so personal lines will see some improvement, but also commercial lines in terms of thinning the larger PML items of cat risk. As far as future years, we continue to work on it. We're getting a fair bit of rate, and we're optimistic. But I think, Mike, it's a little too early for us to be giving you a view of 2026.

因此，個人險種將會出現一些改善，而商業險種在減少巨災風險中較大的 PML 項目方面也會有所改善。對於未來幾年，我們將繼續努力。我們獲得了相當多的利率，我們很樂觀。但我認為，麥克，現在就告訴你 2026 年的前景還為時過早。

Okay. That's helpful. Pivoting to the Commercial Lines competitive environment, all commercial, not just core commercial. When we saw pricing this quarter, I think pricing held up a lot better than peers. I'm guessing that is mostly because you're a bit underweight property versus peers.

好的。這很有幫助。轉向商業線路競爭環境，所有商業，而不僅僅是核心商業。當我們看到本季的定價時，我認為定價比同業要好得多。我猜這主要是因為與同業相比，你的房地產投資略顯不足。

I don't know if you have any thoughts on that. But I guess we're seeing signs of increased competition. Would you expect the pricing environment to subside a bit on a go-forward basis at a macro level? Or I guess a lot of investors also asked us about whether Small Commercial can enter a soft market.

我不知道你對此有什麼想法。但我想我們看到了競爭加劇的跡象。您是否預期從宏觀層面來看定價環境會有所緩和？或者我猜很多投資人也問過我們小型商業是否可以進入疲軟的市場。

Yes, Mike, this is Jack. I'll say a few words here and then let Dick Lavey chime in. I think this is a point at which the real diversification of our portfolio plays to our advantage, right? Not only personal lines to commercial lines, but also within commercial lines across core commercial and specialty. We still have a healthy percentage of our business in property, but we tend to play on the lower side of the spectrum.

是的，麥克，這是傑克。我在這裡講幾句話，然後讓迪克·拉維 (Dick Lavey) 插話。我認為這是我們投資組合真正多元化發揮優勢的時刻，對嗎？不僅包括個人線路到商業線路，還包括跨核心商業和專業的商業線路。我們的房地產業務仍占我們業務的很大一部分，但我們的業務範圍往往比較低。

We're not getting caught up in the layered property or some of the dynamics that are particularly challenging in the middle market space or the higher end of specialty. But I think what we see is we're probably in a transitionary period where while there's some competitive pressure coming on property because the margins are improving so quickly, that the liability pricing is still building.

我們並沒有陷入分層財產或一些在中端市場或高端專業領域特別具有挑戰性的動態。但我認為，我們看到的是我們可能正處於一個過渡時期，雖然由於利潤率提高得太快，房地產面臨一些競爭壓力，但責任定價仍在增加。

And my guess is that if you're a balanced portfolio like we are, where you have a healthy amount of property and casualty that will create a different level of pricing stability than if you're, for example, an E&S property shop or somebody that's really overweighted in that part of the cycle. Dick, do you want to add on?

我的猜測是，如果你的投資組合像我們一樣均衡，擁有大量財產和意外傷害保險，那麼與 E&S 財產公司或某個在周期中真正超重的人相比，這將產生不同程度的價格穩定性。迪克，你想補充一下嗎？

I think you said it well. Our resiliency comes from where we play. So the -- not only our account focus, but our small account focus where the pricing pressures probably they don't show up as much as they do in the higher-end property spaces. So -- and you've got puts and takes by various lines. So obviously, the property is coming down a bit, but liability, we certainly view as continuing to harden.

我覺得你說得很好。我們的韌性來自於我們所處的遊戲環境。因此，我們不僅關注客戶，還關注小型客戶，在這些客戶中，定價壓力可能不會像在高端房地產領域那麼明顯。所以 — — 你已經透過各種方式獲得了投入和產出。因此，顯然，房地產價格有所下降，但我們認為負債價格肯定會繼續走高。

Commercial auto definitely needs to continue to harden and drive more rate, work comp may be flattening, coming up at some point. So we believe because of where we play in those dynamics that will continue to show some resiliency.

商用汽車肯定需要繼續加強並提高速度，工傷賠償可能會趨於平穩，並在某個時候上升。因此，我們相信，由於我們在這些動態中所扮演的角色，我們將繼續表現出一定的彈性。

And then on your last point about small commercial softening, we just feel so strongly about our value proposition and what we offer in the market, broad appetite, ease of doing business, local presence, strong distribution strategy, a customer service center that helps drive retention up. All that comes together, and we just feel really optimistic about our Small Commercial sustaining the performance.

然後，關於您關於小型商業疲軟的最後一點，我們對我們的價值主張以及我們在市場上提供的產品、廣泛的需求、輕鬆的經營方式、本地影響力、強大的分銷策略、有助於提高保留率的客戶服務中心有著強烈的感覺。綜合考慮所有這些因素，我們對於小型商業能夠保持良好的業績感到非常樂觀。

Got it. Helpful. And maybe lastly, sneak one last one in on investment income. The trend has been a friend to you all and investors from -- and we just simply use the forward curve. You have a lot more data than us, but it feels like there's some conservatism within the current guide, which we use to project the forward as well.

知道了。很有幫助。最後，也許還可以偷偷地從投資收益中分一杯羹。這一趨勢對你們所有人和投資者來說都是朋友——我們只是簡單地使用遠期曲線。您擁有的數據比我們多得多，但感覺當前指南中存在一些保守主義，我們也用它來預測未來。

Is there any -- is there any nuances to your investment income guide that would have some level of conservatism in it somehow? Or maybe we just need to go offline and we can kind of understand why we're materially higher.

您的投資收益指南中是否存在某種細微差別，以某種方式體現出某種程度的保守性？或者也許我們只需要離線就能理解為什麼我們的物質水平更高。

Yes. Thank you, Mike. It -- we issue our guide at the beginning of the year, and we're comfortable with that. Nobody really knows at the beginning of the year what's going to happen with interest rates. And I think we've been very fortunate that interest rates have remained high.

是的。謝謝你，麥克。我們在年初發布了指南，我們對此感到滿意。年初時沒有人真正知道利率會發生什麼變化。我認為我們非常幸運，利率一直保持在高位。

So each and every week, we've got things maturing at low coupons and they get replaced with things that are higher coupons. So we've been performing well. That performance is not anomalous. It's driven by strong cash flows and strong renewal, I should say, reinvestment rates, and I expect that to continue.

因此，每週我們都會得到以低息票到期的商品，然後將其替換為以高息票到期的商品。所以我們的表現一直都很好。這種表現並不異常。這是由強勁的現金流和強勁的更新（我應該說是再投資率）推動的，我預計這種情況將會持續下去。

Jeff, could you share your reinvestment rate?

傑夫，你能分享一下你的再投資率嗎？

It varies day-to-day depending on spreads and rates. But generally, in around the 5% or low 5% level. And that's certainly accretive. It depends on each particular week what's rolling off, which tends to be lower than what the current portfolio yield is. So there's still quite a bit of pickup between the reinvestment level and what's rolling off on a daily, weekly, monthly basis.

它每天都會根據價差和利率而變化。但一般都在5%左右或5%以下的水平。這肯定是有增值的。這取決於每週的具體情況，其收益率往往低於當前投資組合的收益率。因此，再投資水準與每日、每週、每月的滾動水準之間仍有相當大的差距。

Thank you.

謝謝。

Paul Newsome, Piper Sandler.

保羅紐瑟姆、派珀桑德勒。

Good morning. Thanks for the call. I was hoping you could touch on a couple of broader issues. One is, could you talk a little bit more about what's going on with the distribution side of your personal lines business? I know you've been shifting around from a regional perspective, but are you in an active position to add a lot of states prospectively? And what are you thinking about with that over time?

早安.謝謝您的來電。我希望您能談一些更廣泛的問題。一是，您能否再多談談個人險業務分銷的進度？我知道您一直在從地區角度進行轉變，但您是否積極地準備在未來增加許多州？隨著時間的推移，您對此有何看法？

Yes, Paul, this is Jack. I'll start this off and see if Dick has something to add. I think overall, we're comfortable with our geographic footprint as it is today. While we have the ability to move into additional states at the right time, we're really not moving swiftly in that direction. What we are doing, though, is further diversifying our business across the PL footprint that we have.

是的，保羅，這是傑克。我將開始討論這個問題，看看迪克是否有要補充的內容。我認為總體而言，我們對目前的地理覆蓋範圍感到滿意。雖然我們有能力在適當的時候進入更多州，但我們實際上並沒有朝著這個方向迅速前進。然而，我們正在做的是進一步使我們的業務在現有的 PL 範圍內多樣化。

And part of that accelerated growth in some of the states where we're less penetrated is coming from adding additional agents on top of just penetrating the ones that we have. So as you might imagine, being the best account writer in the independent agency space attracts a lot of attention.

而在我們滲透率較低的一些州，加速成長的部分原因在於，除了滲透現有代理商之外，我們還增加了其他代理商。因此，正如您可能想像的那樣，成為獨立代理領域的最佳客戶撰寫人會吸引很多關注。

We have an awful lot of agents that are coming to us versus us going to them saying, we'd love to have the Hanover Platinum and Prestige capability at a time when people are struggling, particularly on the home side of the business. So we're leaning into that opportunity, and we're doing that without compromising our select distribution approach. But there's no doubt that adding more agents in the right territories to help us grow and diversify is a deliberate part of our strategy.

有很多代理商來找我們，而我們則去告訴他們，當人們遇到困難時，尤其是在家庭業務方面，我們希望擁有漢諾威白金和威望能力。因此，我們抓住了這個機會，並且這樣做不會損害我們的精選分銷方式。但毫無疑問，在合適的地區增加更多代理商來幫助我們發展和多樣化是我們策略的一部分。

And then a very different question. You spent a lot of time in the opening remarks talking about your efforts on technology and segmentation, which all sound great. But as an outsider, we have a devil of the time trying to figure out which company is doing a better job than others.

接下來是一個非常不同的問題。您在開場白中花了很多時間談論您在技術和細分方面的努力，這些聽起來都很棒。但身為局外人，我們很難判斷哪家公司比其他公司做得更好。

Do you have thoughts on sort of where we should look specifically that we can say, listen, here Hanover has definitely got something that's different and unique than others. I think in the past, you had sort of an interesting way you help brokers evaluate their own businesses. But just curious if there's something that we can point to as outsiders that we can say, listen, this is really where we can see the difference.

您是否想過我們應該具體關注哪些方面，我們可以說，聽著，漢諾威確實有一些與其他地方不同且獨特的東西。我認為過去您曾以一種有趣的方式幫助經紀人評估他們自己的業務。但我只是好奇，作為局外人，我們是否可以指出一些事情，我們可以說，聽著，這確實是我們可以看到差異的地方。

Yes. Paul, first of all, it's a very good and important question. And so I'm going to say a couple of things, and I'm going to allow Dick to chime in here because you probably saw that in enhancing Dick's role earlier this year to be our Chief Operating Officer, the main focus beyond running the businesses that he runs today is to help lead and work with our Chief Investment -- or excuse me, Chief Information Officer to pursue targeted tech-driven investments that are geared towards further enhancing our operating models and our operating efficiency.

是的。保羅，首先，這是一個非常好且重要的問題。因此，我要講幾件事，並讓迪克插嘴，因為您可能已經看到，今年早些時候，迪克的職責得到加強，擔任我們的首席運營官，除了經營他今天經營的業務之外，主要重點是幫助領導和與我們的首席投資官（對不起，首席信息官）合作，進行有針對性的技術驅動型投資，旨在進一步增強我們的運營模式和運營效率。

And frankly, we're quite excited about some of the pursuits that we have -- and Dick, along with Will Lee, our Chief Information Officer and the other business leaders are having an even more coordinated effort about where is it an enterprise effort versus a bespoke effort to one part of the organization, whether that be business unit or operating engine. So Dick, do you want to -- maybe I'll share something --

坦白說，我們對我們所追求的一些目標感到非常興奮——迪克、我們的首席資訊長威爾·李和其他業務領導人正在進行更加協調的努力，以確定這究竟是企業努力還是針對組織某個部分（無論是業務部門還是運營引擎）的定制努力。那麼迪克，你想——也許我可以分享一些東西--

I'll add a few points and try to get to the heart of your question, Paul. It's a very good one. And I think it is hard for an outsider to see the impact or benefits of it, but I would just challenge you to keep asking questions of carriers as where they're placing dollars and what benefits they're seeing from it. So I could geek out on this topic -- and we could spend some more time on it. But we absolutely are targeting our efforts on our transformation work, thinking about it as a growth enabler really to help us scale the company.

保羅，我將補充幾點並嘗試解答你的問題。這是一個非常好的。我認為局外人很難看出它的影響或好處，但我只是想挑戰你繼續向運營商提問，他們把錢投在哪裡，以及他們從中看到了什麼好處。所以我可以深入研究這個主題——我們可以花更多的時間在它上面。但我們絕對致力於轉型工作，將其視為真正幫助我們擴大公司規模的成長動力。

So it's about scalability. And so that means getting into your operating models and your end-to-end kind of process improvements across your domains, underwriting, operations, claims, but then also in a horizontal domain, like you heard some of Jack's commentary about submission, triage, call synthesis.

所以這與可擴展性有關。這意味著要進入您的營運模式和端到端流程改進，涵蓋核保、營運、索賠等領域，但也包括水平領域，就像您聽到傑克關於提交、分類、呼叫合成的一些評論一樣。

So when those things come online, you will see impact and benefit. So it's going to take some time, but we are thrilled. And I would say a differentiator about us is that our size is our friend in this space because I'm able to get all the business leaders and the functional leaders aligned on those priorities. Larger companies have a heck of a time kind of gaining that alignment. So that's going to be an advantage.

因此，當這些東西上線時，你會看到影響和好處。所以這需要一些時間，但我們很興奮。我想說，我們之間的一個區別在於，我們的規模是我們在這個領域的朋友，因為我能夠讓所有業務領導者和職能領導者在這些優先事項上保持一致。大公司需要花很長時間才能實現這種一致性。所以這將是一個優勢。

Back to where you started the question, yes, I would tell you, our ease of doing business, our TAP Sales platforms, they're as good as the best in the industry, hard to differentiate perhaps at the top of the stack. But our agency insight tools and capabilities are bar none the best in the industry.

回到您開始提問的地方，是的，我會告訴您，我們的業務開展便利性、我們的 TAP 銷售平台，它們與業內最好的一樣好，甚至可能很難在堆疊的頂部進行區分。但我們的機構洞察工具和能力無疑是業界最好的。

And that leads to our consolidation capabilities, which, as you know, is becoming more and more important now in the flow businesses as agents buy more agents and attempt to consolidate the markets that they use. So that I would put at the top of the list.

這就提高了我們的整合能力，正如您所知，隨著代理商購買更多代理商並試圖整合他們所使用的市場，整合能力在流程業務中變得越來越重要。所以我會把它放在清單的頂部。

So we will try to bring more to -- as we get further along in our development. But I think one of the reasons why I highlighted it this particular quarter is because we're really starting to see movement and some progress that I think will demonstrate that value. And in future calls, we'll try to be even more specific about what that looks like.

因此，隨著我們進一步發展，我們將努力帶來更多。但我認為我在這個季度強調這一點的原因之一是因為我們確實開始看到一些動向和進展，我認為這將證明這一價值。在未來的電話會議中，我們將嘗試更具體地說明其具體情況。

Thank you. Appreciate the help as always. Thanks.

謝謝。一如既往地感謝您的幫助。謝謝。

Meyer Shields, KBW.

邁耶希爾茲，KBW。

I just had a couple of quick modeling questions. First, did the reserve adjustment in commercial auto translate into any changes to the accident year '25 loss pick for that line?

我只是想問幾個關於建模的快速問題。首先，商業汽車的準備金調整是否會導致該險種 25 年事故損失選擇發生任何變化？

We did increase our loss pick in commercial auto in core commercial in the current year. So while overall, it was a sequential meaningful decline by a few points, it was probably 80 basis points or so higher than year-over-year, but largely just prudence to reflect what we were doing in the prior years.

我們今年確實增加了核心商業業務中商用汽車的虧損選擇。因此，雖然總體而言，這是一個連續的有意義的下降，但可能比去年同期高出 80 個基點左右，但基本上只是謹慎的做法，反映了我們前幾年的做法。

Okay. So that's embedded in the quarterly loss ratio?

好的。那麼這已經包含在季度損失率中了嗎？

Correct.

正確的。

And these are two separate points. But when we look at, I guess, reinsurance pricing on the one hand and the expected inflection in homeowners’ policy count going forward, is there any change in the underlying loss or underlying combined ratio trajectory from either of those two factors?

這是兩個不同的觀點。但是，我想，當我們一方面看再保險定價，另一方面看未來房屋保單數量的預期變化時，這兩個因素中的任何一個是否會導致潛在損失或潛在綜合比率軌跡發生變化？

Reinsurance itself, as we spoke about during our prepared remarks, the cost of reinsurance, while it goes up in total, on a risk-adjusted basis, it comes down. So it should be on the margin, helpful to the overall economics of the homeowner’s line.

正如我們在準備好的發言中談到的，再保險本身，雖然再保險成本總體上有所上升，但在風險調整的基礎上，它會下降。因此，它應該處於邊際效益，有助於房主的整體經濟效益。

Okay. And then is there something analogous to the personal auto new business penalty when you start growing homeowners?

好的。那麼，當你開始增加房主時，是否存在類似於個人汽車新業務懲罰的情況？

Yes. This is Jack. I mean, listen, we -- generally, new business penalty in our industry comes from 2 basic areas. You don't know that business as well as you do your renewal book and you tend to price it more aggressively to get it and then mature the pricing over time. We're at a very unique time in the cycles where the pricing on new business and renewals is remarkably similar and particularly in home, where we're being very disciplined and the competition is not terribly aggressive.

是的。這是傑克。我的意思是，聽著，我們——一般來說，我們行業的新業務處罰來自兩個基本領域。您對續訂業務的了解不如您對續訂業務的了解，因此您傾向於以更激進的價格來獲得它，然後隨著時間的推移逐漸完善定價。我們正處於週期的一個非常獨特的時期，新業務和續約的定價非常相似，特別是在國內，我們非常自律，競爭也不是非常激烈。

So I would say in the short term, we're at a very unique time where we're very comfortable with home pricing and frankly, the quality of the business that we're bringing through the door, and that gives me great confidence.

因此我想說，在短期內，我們正處於一個非常獨特的時期，我們對房價非常滿意，坦白說，我們對我們開展的業務的品質也非常滿意，這給了我很大的信心。

Okay, fantastic. Thank you so much.

好的，太棒了。太感謝了。

And this concludes our question-and-answer session. I'd like to turn the conference back over to Oksana Lukasheva for any closing remarks.

我們的問答環節到此結束。我想將會議交還給 Oksana Lukasheva 做最後發言。

Thank you, everybody, for your participation today, and we're looking forward to talking to you next quarter.

感謝大家今天的參與，我們期待下個季度與您交談。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.

會議現已結束。感謝您參加今天的演講。現在您可以斷開線路了。