旅行家集團 (TRV) 2025 Q2 法說會逐字稿

Good morning, ladies and gentlemen. Welcome to the second-quarter results teleconference for Travelers. (Operator Instructions)

女士們、先生們，早安。歡迎參加旅客第二季業績電話會議。（操作員指示）

As a reminder, this conference is being recorded on July 17, 2025. At this time, I would like to turn the conference over to Ms. Abbe Goldstein, Senior Vice President of Investor Relations.

提醒一下，本次會議將於 2025 年 7 月 17 日錄製。現在，我想將會議交給投資者關係資深副總裁 Abbe Goldstein 女士。

Ms. Goldstein , you may begin.

戈德斯坦女士，你可以開始了。

Thank you. Good morning, and welcome to Travelers' discussion of our second-quarter 2025 results. We released our press release, financial supplement, and webcast presentation earlier this morning. All of these materials can be found on our website at travelers.com under the Investors section.

謝謝。早安，歡迎參加旅客對我們 2025 年第二季業績的討論。我們今天早上發布了新聞稿、財務補充和網路廣播簡報。所有這些資料都可以在我們的網站 travelers.com 的投資者部分找到。

Speaking today will be Alan Schnitzer, Chairman and CEO; Dan Frey, CFO; and our three segment presidents: Greg Toczydlowski of Business Insurance, Jeff Klenk of Bond & Specialty Insurance, and Michael Klein of Personal Insurance. They will discuss financial results of our business and the current market environment. They will refer to the webcast presentation as they go through prepared remarks, and then we will take your questions.

今天發言的有董事長兼首席執行官艾倫·施尼策 (Alan Schnitzer)、首席財務官丹·弗雷 (Dan Frey) 以及我們的三位分部總裁：商業保險部門的格雷格·托奇德洛夫斯基 (Greg Toczydlowski)、Bond & Specialty 保險部門的傑夫·克倫克 (Jeff Klenk) 和個人保險部門的邁克爾·克萊因 (Michael Klein)。他們將討論我們業務的財務表現和當前的市場環境。他們將在準備發言時參考網路直播演示，然後我們將回答您的問題。

Before I turn the call over to Alan, I'd like to draw your attention to the explanatory note included at the end of the webcast presentation. Our presentation today includes forward-looking statements. The company cautions investors that any forward-looking statement involves risks and uncertainties and is not a guarantee of future performance.

在我將電話轉給艾倫之前，我想提請您注意網路廣播演示結束時附帶的解釋性說明。我們今天的演示包含前瞻性陳述。該公司提醒投資者，任何前瞻性陳述都涉及風險和不確定性，並不能保證未來的表現。

Actual results may differ materially from those expressed or implied in the forward-looking statements due to a variety of factors. These factors are described under forward-looking statements are earnings press release and in our most recent 10-Q and 10-K filed with the SEC.

由於各種因素，實際結果可能與前瞻性陳述中表達或暗示的結果有重大差異。這些因素在前瞻性聲明、收益新聞稿以及我們最近向美國證券交易委員會提交的 10-Q 和 10-K 文件中進行了描述。

We do not undertake any obligation to update forward-looking statements. Also in our remarks or responses to questions, we may mention some non-GAAP financial measures. Reconciliations are included in our recent earnings press release, financial supplement, and other materials available in the Investors section on our website.

我們不承擔更新前瞻性陳述的任何義務。另外，在我們的評論或回答問題時，我們可能會提到一些非公認會計準則財務指標。對帳內容包含在我們最近的收益新聞稿、財務補充以及我們網站「投資者」部分提供的其他資料中。

And now, I'd like to turn the call over to Alan Schnitzer.

現在，我想把電話轉給艾倫‧施尼策。

Thank you, Abbe, and good morning, everyone, and thank you for joining us today. We are pleased to report exceptional second-quarter results, driven by excellent underwriting and investment performance.

謝謝您，阿貝，大家早安，謝謝您今天加入我們。我們很高興地報告，由於出色的承保和投資業績，我們在第二季度取得了出色的業績。

(technical difficulty) core income of $1.5 billion or $6.51 per diluted share. Core return on equity for the quarter was 18.8%, bringing our return on equity for the trailing 12 months to 17.1%.

（技術難度）核心收入 15 億美元或每股攤薄收益 6.51 美元。本季核心股本回報率為 18.8%，過去 12 個月的股本回報率達到 17.1%。

Underwriting income reflects strong net earned premiums and reported combined ratio that improved almost 10 points to 90.3%. The improvement in the combined ratio benefited from strength across the Board, has lower catastrophe losses, higher underlying underwriting results, and favorable prior-year reserve development, all contributed.

核保收入反映了強勁的淨保費收入和報告的綜合成本率，提高了近 10 個百分點，達到 90.3%。綜合成本率的改善得益於董事會的全面實力、巨災損失的降低、承保基礎業績的提高以及上年儲備金的良好發展。

Underlying underwriting income of $1.6 billion pre-tax was up 35% over the prior-year quarter, driven by 7% growth in net earned premiums of $10.9 billion, and an underlying combined ratio improved 3 points to an excellent 84.7%. All three segments contributed to these terrific results with strong net earned premiums and excellent reported and underlying profitability.

稅前基礎核保收入 16 億美元，較去年同期成長 35%，這得益於淨賺保費成長 7% 至 109 億美元，基礎綜合成本率提高 3 個百分點，達到優秀的 84.7%。所有三個部門都憑藉強勁的淨保費收入以及出色的報告和基本盈利能力為這些出色的業績做出了貢獻。

The underlying combined ratio in Business Insurance improved by almost 1 point to and excellent 88.3%. The underlying combined ratio in our Bond & Specialty business was a very strong 87.8%, and the underlying combined ratio in Personal Insurance improved by 7 points to a terrific 79.3%.

商業保險的基本綜合成本率改善了近 1 個百分點，達到優秀的 88.3%。我們的債券和特殊業務的基本綜合成本率非常強勁，達到 87.8%，個人保險的基本綜合成本率提高了 7 個百分點，達到出色的 79.3%。

Our high-quality investment portfolio also continued to perform well, generating after-tax net investment income of $774 million for the quarter, driven by reliable returns from our growing fixed income portfolio. Our underwriting and investment results, together with our strong balance sheet, enabled us to return more than $800 million of capital to shareholders during the quarter, including $557 million of share repurchases.

我們的高品質投資組合也繼續表現良好，受不斷增長的固定收益投資組合的可靠回報推動，本季度產生了 7.74 億美元的稅後淨投資收入。我們的承銷和投資業績，加上我們強勁的資產負債表，使我們能夠在本季度向股東返還超過 8 億美元的資本，其中包括 5.57 億美元的股票回購。

At the same time, we continue to make strategic investments in our business. Even after this deployment of capital, adjusted book value per share was up by more than 14% as compared to a year ago.

同時，我們繼續對我們的業務進行戰略投資。即使在此次資本部署之後，調整後的每股帳面價值仍比一年前上漲了 14% 以上。

Turning to the top line. Through skilled execution by our field organization, we grew net written premiums to $11.5 billion in the quarter, with growth in all three segments.

轉向頂線。透過我們現場組織的熟練執行，我們本季的淨承保保費成長至 115 億美元，三個部門均實現成長。

In Business Insurance, we grew net written premiums by 5% to $5.8 billion. Renewal premium change remained strong at 7.7%, with renewal premium change of 8.6% in our core middle market business and 10.7% in our small commercial select business. Those two markets make up 70% of the net written premiums in Business Insurance.

在商業保險方面，我們的淨承保保費增加了 5%，達到 58 億美元。續保保費變化保持強勁，為 7.7%，其中核心中端市場業務的續保保費變化為 8.6%，小型商業精選業務的續保保費變化為 10.7%。這兩個市場佔商業保險淨承保保費的70%。

Given the high quality of the book, we were very pleased with strong retention of 85% in this segment. New business is a record $744 million, a reflection of the relationships we've built with customers and distribution partners by delivering value products, services, and experiences.

由於本書的高品質，我們對該部分讀者高達 85% 的保留率感到非常高興。新業務達到創紀錄的 7.44 億美元，反映了我們透過提供有價值的產品、服務和體驗與客戶和分銷合作夥伴建立的關係。

In Bond & Specialty Insurance, we grew net written premiums by 4% to $1.1 billion, with retention of 87% in our high-quality management liability business. In our industry-leading surety business, we grew net written premiums by 5% from a particularly strong result in the prior-year quarter.

在債券和特殊保險領域，我們的淨承保保費成長了 4%，達到 11 億美元，我們的高品質管理責任業務的保留率為 87%。在我們行業領先的保證業務中，我們的淨承保保費較去年同期的強勁業績增長了 5%。

In Personal Insurance, we grew net written premiums by 3% to $4.7 billion, driven by strong renewal premium change in our homeowners business. You'll hear more shortly from Greg, Jeff, and Michael about our segment results.

在個人保險方面，受房屋保險業務續保保費強勁變化的推動，我們的淨承保保費增長了 3%，達到 47 億美元。您很快就會從 Greg、Jeff 和 Michael 那裡聽到更多關於我們部門績效的消息。

In May, we announced an agreement to sell most of our Canadian business to Definity for $2.4 billion or 1.8 times book value, excluding excess local capital. As we noted at the time, the transaction does not include our premier surety business. We also shared that we expect to allocate about $700 million of the net cash proceeds for additional share repurchases in 2026, and that we expect the transaction to be slightly accretive to earnings per share in each of the next several years.

今年 5 月，我們宣布達成協議，以 24 億美元或帳面價值的 1.8 倍（不包括多餘的本地資本）的價格將大部分加拿大業務出售給 Definity。正如我們當時指出的那樣，此次交易並不包括我們的首要擔保業務。我們還表示，我們預計將在 2026 年分配約 7 億美元的淨現金收益用於額外的股票回購，並且我們預計該交易將在未來幾年內每年略微增加每股收益。

Whilst it was a relatively small transaction for us, it's noteworthy in reflecting an important point. We are relentless in our commitment to disciplined capital allocation and value creation. Taking a step back, the Canadian marketplace has evolved over the last decade or so in a few significant ways.

雖然對我們來說這是一筆相對較小的交易，但它反映出一個重要的觀點。我們堅持不懈地致力於規範的資本配置和價值創造。回顧過去十年左右，加拿大市場在一些重要方面發生了變化。

First, a small number of insurers have built significant scale and market influence, in part, through vertical integration with distribution. There were no compelling inorganic opportunities for us to close the market share gap and we didn't see vertical integration as a realistic opportunity for us.

首先，少數保險公司已經建立了相當大的規模和市場影響力，部分是透過與分銷的垂直整合來實現的。對我們來說，不存在任何令人信服的無機機會來縮小市場佔有率差距，我們也不認為垂直整合對我們來說是一個現實的機會。

Also, the regulatory environment has become more challenging. But we were confident that we could continue to manage successfully in Canada. The outlook for our Canadian business relative to our other businesses, combined with the very attractive offer from a strategic buyer made reallocating the capital the better decision.

此外，監管環境也變得更具挑戰性。但我們有信心在加拿大繼續取得成功。相對於我們其他業務而言，我們的加拿大業務前景看好，再加上戰略買家提出的極具吸引力的報價，重新分配資本是一個更好的決定。

Disciplined capital management isn't only about deciding how to deploy the marginal dollar. It's also about continually and rigorously reassessing the capital we have already deployed and whether it's still delivering the best long-term value.

嚴格的資本管理不僅僅是決定如何部署邊際資金。它還涉及持續嚴格地重新評估我們已經部署的資本以及它是否仍然能夠提供最佳的長期價值。

I want to thank our outstanding team in Canada and recognize the value they've created over many years. I'm confident that they and our Canadian customers and brokers will benefit from being part of the country -- of one of the country's leading and fully integrated property casualty insurers.

我要感謝我們在加拿大的優秀團隊，並認可他們多年來創造的價值。我相信，他們和我們的加拿大客戶和經紀人都將受益於成為這個國家的一部分——成為這個國家領先且完全一體化的財產意外保險公司之一。

I also want to reaffirm our commitment to our ongoing international businesses. This deal is not part of a broader geographic repositioning, it's simply a smart transaction. Transaction speaks volumes about the way we think about our business.

我還想重申我們對正在進行的國際業務的承諾。這筆交易並不是更廣泛的地理重新定位的一部分，而只是一筆明智的交易。交易充分說明了我們對業務的看法。

At Travelers, we're optimizers, relentlessly focused on ensuring that both our capital and our retention are invested that we can generate attractive returns, profitable growth and the greatest long-term value for our shareholders.

在旅行者，我們是優化者，堅持不懈地專注於確保我們的資本和保留都得到投資，以便我們能夠為股東創造可觀的回報、盈利增長和最大的長期價值。

To sum things up, our results for the first half of the year reflect exceptional underwriting performance, record operating cash flow, and steadily rising investment returns in our growing fixed income portfolio. We're building on the strong momentum through continued disciplined execution of our proven strategy.

總而言之，我們上半年的業績反映了卓越的承保業績、創紀錄的經營現金流以及不斷增長的固定收益投資組合中穩步上升的投資回報。我們將繼續嚴格執行已證實有效的策略，以鞏固這一強勁勢頭。

With our diversified business operating from a position of strength, our outlook for continued premium growth at attractive underwriting margins, orderly conditions generally in our target markets and a positive trajectory for investment income, we remain highly confident in the outlook for our business.

由於我們多元化業務的實力雄厚，我們的保費前景持續成長，承保利潤率也具有吸引力，我們的目標市場整體狀況有序，投資收益呈現積極的軌跡，我們對業務前景仍然充滿信心。

And with that, I'm pleased to turn the call over to Dan.

說完這些，我很高興將電話轉給丹。

Thank you, Alan. We're very pleased with our financial results this quarter, both overall and by segment. We generated higher earned premiums and meaningfully improved both the reported and underlying combined ratios compared to the prior year quarter.

謝謝你，艾倫。我們對本季的整體和分部門財務表現都非常滿意。與去年同期相比，我們獲得了更高的保費收入，並且報告和基礎綜合比率均有顯著改善。

At 84.7%, the underlying combined ratio marked its third consecutive quarter below 85%. The combination of higher premiums and the excellent underlying combined ratio led to our fourth consecutive quarter with after-tax underlying underwriting income of more than $1 billion, up $339 million or 36% from the prior-year quarter.

基礎綜合成本率為 84.7%，這是該季度連續第三個季度低於 85%。更高的保費和出色的基礎綜合比率使我們連續第四個季度的稅後基礎承保收入超過 10 億美元，比去年同期增加 3.39 億美元，增幅為 36%。

The expense ratio for the second quarter was 28.6%, 20 basis points better than last year's second quarter and in line with our expectations. That brings the year-to-date expense ratio to 28.4%, and we continue to expect the full-year expense ratio of 28% to 28.5%.

第二季的費用率為28.6%，比去年第二季好20個基點，符合我們的預期。這使得年初至今的費用率達到 28.4%，我們繼續預計全年費用率將在 28% 至 28.5% 之間。

As we've discussed previously, the second quarter is historically our most active cat period. This year, however, our pre-tax cat losses of $927 million or 8.5 combined ratio points, while significant, were nearly 4 points less than the second quarter cat plan we shared with you during our year-end earnings call in January.

正如我們之前所討論的，第二季度從歷史上看是我們最活躍的貓期。然而，今年我們的稅前巨額損失為 9.27 億美元，即綜合比率上升 8.5 個點，雖然數額巨大，但比我們在 1 月份年終收益電話會議上與您分享的第二季度巨額損失計劃低了近 4 個點。

Turning to prior year reserve development. We had total net favorable development of $315 million pre-tax. In Business Insurance, net favorable PYD of $79 million pre-tax was driven by better-than-expected loss experience in workers' comp, partially offset by reserve additions in our runoff book related to environmental, abuse, and other long-tail exposures with no single adjustment being particularly noteworthy.

談到前一年儲備的發展。我們的稅前淨利總額為 3.15 億美元。在商業保險方面，稅前淨有利 PYD 為 7,900 萬美元，這是由於工人補償的損失經歷好於預期，但部分被我們與環境、虐待和其他長尾風險相關的決算書中的準備金增加所抵消，沒有任何單項調整特別值得注意。

In Bond & Specialty, net favorable PYD was $81 million pre-tax with favorability in Fidelity and surety. Personal Insurance had net favorable PYD of $155 million pre-tax, driven by recent accident years in both auto and home. After-tax net investment income of $774 million increased by 6% from the prior-year quarter.

在債券和特殊險種方面，淨有利 PYD 為稅前 8,100 萬美元，其中富達和擔保險表現良好。個人保險的稅前淨利為 1.55 億美元，這主要得益於近年來汽車和家庭事故的發生。稅後淨投資收入 7.74 億美元，較去年同期成長 6%。

As expected, fixed maturity NII was again higher than the prior-year quarter, reflecting both the benefit of higher invested assets and higher average yields. Returns in the non-fixed income portfolio were positive but not as strong as in the prior year quarter. Notably, for the first time, total invested assets surpassed $100 billion, excluding the net unrealized loss.

正如預期的那樣，固定期限 NII 再次高於去年同期，反映了投資資產增加和平均收益率上升的好處。非固定收益投資組合的報酬率為正，但不如去年同期強勁。值得注意的是，扣除未實現淨損失後，總投資資產首次超過1,000億美元。

Our outlook for fixed income NII, including earnings from short-term securities has increased from the outlook we provided a quarter ago. We now expect approximately $770 million after tax in the third quarter and $805 million after tax in the fourth quarter.

我們對固定收益 NII 的展望（包括短期證券收益）較上一季提供的展望有所提高。我們現在預計第三季稅後利潤約為 7.7 億美元，第四季稅後利潤約為 8.05 億美元。

New money rates as of June 30 are more than 100 basis points above the yield embedded in the portfolio. Fixed income NII should continue to increase beyond 2025, as the portfolio continues to grow and gradually turns over with higher yields replacing maturing yields.

截至 6 月 30 日的新資金利率比投資組合中的收益率高出 100 多個基點。隨著投資組合的持續成長以及高收益收益率取代到期收益率的逐步轉變，固定收益 NII 應會在 2025 年後繼續增加。

Turning to capital management. Operating cash flows for the quarter of $2.3 billion were, again, very strong. We ended the quarter with holding company liquidity of approximately $2 billion. This marks our 21st consecutive quarter with operating cash flows of more than $1 billion, totaling more than $40 billion over that time frame.

轉向資本管理。本季的營運現金流為 23 億美元，再次表現非常強勁。本季結束時，我們的控股公司流動資金約 20 億美元。這是我們連續第 21 季的營運現金流超過 10 億美元，期間總額超過 400 億美元。

Interest rates decreased during the quarter, and as a result, our net unrealized investment loss decreased from $3.3 billion after tax at March 31 to $3 billion after tax at June 30. Adjusted book value per share, which excludes net unrealized investment gains and losses, was $144.57 at quarter end, up 4% from year end and up 14% from a year ago.

本季利率下降，因此，我們的淨未實現投資損失從 3 月 31 日的稅後 33 億美元減少到 6 月 30 日的稅後 30 億美元。調整後的每股帳面價值（不包括淨未實現投資收益和損失）在季度末為 144.57 美元，比年底增長 4%，比去年同期增長 14%。

We returned $809 million of capital to our shareholders this quarter comprising share repurchases of $557 million and dividends of $252 million. And we have approximately $4.3 billion of capacity remaining under the share repurchase authorization from our Board of Directors. Turning to reinsurance.

本季我們向股東返還了 8.09 億美元的資本，其中包括 5.57 億美元的股票回購和 2.52 億美元的股息。根據董事會授權的股票回購容量，我們還剩下約 43 億美元的剩餘容量。轉向再保險。

Page 18 of the webcast presentation shows a summary of our July 1 reinsurance placements. We renewed our Northeast property cat XoL treaty which continues to provide $1 billion of occurrence coverage above the attachment point of $2.75 billion. We also replaced our Personal Insurance coastal hurricane cat XoL treaty with an all perils countrywide Personal Insurance treaty that provides 50% occurrence coverage for the $1 billion layer above an attachment point of $1 billion. You may recall that last year's treaty had an attachment point of $2 billion.

網路廣播簡報的第 18 頁顯示了我們 7 月 1 日再保險安排的摘要。我們續簽了東北財產險 XoL 協議，該協議繼續為超過 27.5 億美元附加點的事故提供 10 億美元的保險。我們還將個人保險沿海颶風貓 XoL 條約替換為全風險全國個人保險條約，該條約為 10 億美元附加點以上的 10 億美元層級提供 50% 的發生率覆蓋。您可能還記得，去年的條約附加點為 20 億美元。

While in a modeled year, we wouldn't expect this to have much of an impact given the prospect of continued weather volatility, we were pleased to obtain broader coverage at a reasonable cost.

雖然在模擬年份中，考慮到天氣持續波動的前景，我們預計這不會產生太大影響，但我們很高興以合理的成本獲得更廣泛的覆蓋範圍。

Recapping our results. Q2 was another quarter of continued premium growth in all three segments. The quarter also featured excellent underwriting profitability, both on an underlying and as-reported basis and rising net investment income. These strong fundamentals delivered core return on equity of 18.8% for the quarter and 17.1% on a trailing 12-month basis, and position us very well to continue delivering strong returns in the future.

回顧我們的結果。第二季度，三個細分市場的保費均持續成長。本季也表現出色，無論是以基礎或按報告計算，承保獲利能力都十分出色，淨投資收益也不斷增加。這些強勁的基本面使得本季核心股本回報率達到 18.8%，過去 12 個月核心股本回報率達到 17.1%，並使我們在未來能夠繼續實現強勁回報。

And now for a discussion of results and business insurance, I'll turn the call over to Greg.

現在討論結果和商業保險，我將把電話轉給格雷格。

Thanks, Dan. Business Insurance had a very strong second quarter, delivering segment income of $813 million, up nearly 25% from the prior-year quarter, driven by higher net earned premiums and a combined ratio that improved 2.5 points from the prior-year quarter to a terrific 93.6%.

謝謝，丹。商業保險第二季表現非常強勁，分部收入達 8.13 億美元，較去年同期增長近 25%，這得益於淨賺保費的增加以及綜合成本率較去年同期提高 2.5 個百分點，達到出色的 93.6%。

The improvement was broad-based, reflecting higher underlying underwriting income, higher favorable prior year reserve development, higher net investment income, and lower catastrophes. We're extremely pleased with our underlying combined ratio of 88.3%, which improved from the prior year by almost 1 point, driven by the benefit of earned pricing.

這種改善是廣泛的，反映了更高的基礎承保收入、更好的上一年儲備金發展、更高的淨投資收入以及更低的災難。我們對 88.3% 的基本綜合比率感到非常滿意，由於已賺取定價的好處，該比率比上一年提高了近 1 個百分點。

Moving to the top line, our net written premiums increased 5% to an all-time quarterly high of $5.8 billion, led by strong growth of 10% in our core middle market business. This was partially offset by a 3% decline in net written premiums in national property and other, reflecting our disciplined underwriting. As for production across the segment, with renewal premium change of nearly 8%, driven by renewal rechange of 5.3%.

就營業收入而言，我們的淨承保保費成長 5%，達到季度歷史最高水準 58 億美元，這得益於我們核心中端市場業務 10% 的強勁成長。這被全國財產和其他業務淨承保保費下降 3% 部分抵消，反映了我們嚴格的承保行為。至於整個細分市場的產量，續保費變化近 8%，受 5.3% 的續保變動推動。

Renewal rate change and renewal premium change in every line other than CMP and property were about the same or higher compared to the first quarter. Renewal premium change in both umbrella and auto were both well into double digits.

除 CMP 和財產險之外，所有險種的續保費率變化和續保保費變化與第一季相比大致相同或更高。傘險和車險的續保保費變動均達到兩位數。

Renewal premium change in CMP was a little lower, but remained in the double digits. The decline in renewal premium change in property was driven by based on national property, reflecting the outlook for continued attractive returns after several years of compounding price increases and improvements in terms and conditions.

CMP的續保保費變動略低，但仍維持在兩位數。房地產續保保費變化的下降是由於基於全國房地產的因素，反映了經過幾年的複合價格上漲和條款條件的改善後，繼續獲得有吸引力的回報的前景。

Renewal premium change in the property line outside of national property was down some but remained solid. Retention across the segment remained excellent at 85%. Retention in middle market was strong, while retention in our national property business was a bit lower as we ceded some large accounts to the subscription market on terms and pricing that we weren't willing to access.

全國性財產以外的財產險續保費變動下降，但仍保持穩健。整個部門的保留率仍保持在 85% 的優異水準。中端市場的保留率很高，而我們全國房地產業務的保留率略低，因為我們以我們不願意接受的條款和價格將一些大帳戶轉讓給了訂閱市場。

Lastly, new business of $744 million was a new quarterly record. We're pleased with these production results and particularly our field segmented execution. Our proven strategy focuses on managing our business in a granular manner, balancing retaining our high-quality book of business while obtaining appropriate pricing.

最後，7.44億美元的新業務創下了季度新高。我們對這些生產結果感到滿意，特別是我們的現場分段執行。我們行之有效的策略專注於以細緻的方式管理我們的業務，在獲得適當定價的同時保持高品質的業務。

Our rate and retention results this quarter reflect excellent execution, aligning rates, terms and conditions with environmental trends for each line. While our continued high retention levels are an indication of a rational marketplace, we believe our execution is differentiating.

本季我們的費率和保留結果反映了出色的執行力，使費率、條款和條件與每條線路的環境趨勢保持一致。雖然我們持續的高保留率表明市場理性，但我們相信我們的執行力是與眾不同的。

It's the best people in the business powered by the best analytics and tools at the point of sale that deliver these segmented production results, ultimately producing these strong returns across BI.

正是業務中最優秀的人才，借助銷售點最優秀的分析和工具，才能夠提供這些細分的生產結果，最終在 BI 中產生強勁的回報。

As for the individual businesses, in Select, renewal premium change remains strong at nearly 11%, marking the seventh quarter in a row of double-digit renewal premium change. Renewal rate change of 5.3% was in line with the prior year level. As we expected, retention was stable at 80%, reflecting our targeted CMP risk return optimization efforts, which will begin to wind down next quarter.

就個別業務而言，在 Select 業務中，續保保費變化仍然強勁，接近 11%，這是續保保費連續第七個季度出現兩位數變化。續約率變動 5.3%，與上年度水準一致。正如我們預期的那樣，保留率穩定在 80%，這反映了我們有針對性的 CMP 風險回報優化工作，該工作將於下個季度開始逐步結束。

New business of $148 million continues to benefit from our industry-leading product offerings, including BOP 2.0 and our new commercial auto product, which is now live in 42 states.

1.48 億美元的新業務繼續受益於我們領先業界的產品，包括 BOP 2.0 和我們新的商用汽車產品，目前該產品已在 42 個州上線。

In our core middle market business, renewal premium change also remained strong at almost 9%. Renewal rate change of 7.1% was up a bit from the second quarter of last year, while retention remained excellent at 89%. New business of $430 million was a second quarter record. To sum up, Business Insurance had another outstanding quarter.

在我們的核心中端市場業務中，續保保費變化也保持強勁，接近 9%。續約率變化為 7.1%，較去年第二季略有上升，而保留率仍維持在 89% 的優異水準。4.3億美元的新業務創下了第二季的最高紀錄。總而言之，商業保險又度過了一個出色的季度。

We continue to grow our quality book of business while investing in differentiating capabilities that position us for long-term profitable growth.

我們繼續擴大優質業務，同時投資差異化能力，以實現長期獲利成長。

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

說完這些，我會把電話轉給傑夫。

Thanks, Greg. Bond & Specialty posted another very strong quarter on both the top and bottom lines. We generated segment income of $244 million and an outstanding combined ratio of 80.3% in the quarter. The underlying combined ratio was strong at 87.8%, up modestly driven by the impact of earned pricing on our management liability business.

謝謝，格雷格。Bond & Specialty 公司在本季的營收和利潤均表現強勁。本季度，我們的分部營收為 2.44 億美元，綜合成本率為 80.3%。基礎綜合成本率強勁，達到 87.8%，這得益於已賺取定價對我們的管理責任業務的影響而小幅上升。

Turning to the top line. We're pleased that we grew net written premiums by 4% in the quarter. In our high-quality domestic management liability business, renewal premium change improved to 3.2%, while retention remained strong at 87%. These results reflect our intentional and segmented initiatives to improve pricing given the loss environment.

轉向頂線。我們很高興看到本季淨承保保費增加了 4%。在我們高品質的國內管理責任業務中，續保費變動改善至 3.2%，而留存率仍維持在 87% 的強勁水準。這些結果反映了我們在虧損環境下改善定價的有意和分階段措施。

As expected, new business was lower than the second quarter of 2024. As a reminder, [core business] production was reflected as new business in the prior year quarter and is now mostly reflected as renewal premium. Comparisons to prior-year new business levels will be similarly impacted for the remainder of the year.

正如預期的那樣，新業務低於 2024 年第二季。提醒一下，[核心業務]生產在去年同期反映為新業務，現在主要反映為續保費。與去年同期相比，今年剩餘時間的新業務水準也將受到類似影響。

Turning to our market-leading surety business. We grew net written premiums by 5% from a very strong level in the prior year quarter, reflecting continued robust demand for our surety products and services. So we're pleased to have once again delivered strong top and bottom line results this quarter, driven by our continued underwriting and risk management diligence, excellent execution by our field organization and the benefits of our value-added approach and market-leading competitive advantages.

轉向我們市場領先的擔保業務。我們的淨承保保費較去年同期的強勁水準成長了 5%，反映出對我們的保證產品和服務的持續強勁需求。因此，我們很高興本季再次取得強勁的營收和利潤業績，這得益於我們持續的承保和風險管理努力、我們現場組織的出色執行以及我們的增值方法和市場領先的競爭優勢。

And with that, I'll turn the call over to Michael.

說完這些，我會把電話轉給麥可。

Thanks, Jeff, and good morning, everyone. I'm very pleased to share that Personal Insurance delivered segment income of $534 million for the second quarter of 2025. Significantly improved underlying underwriting income and favorable prior-year development contributed to this excellent bottom-line result.

謝謝，傑夫，大家早安。我很高興地告訴大家，個人保險業務在 2025 年第二季實現了 5.34 億美元的分部收入。大幅提高的基礎承保收入和良好的上年發展表現促成了這一優異的底線表現。

The combined ratio of 88.4% improved 20 points relative to the prior year quarter, driven by a decrease in catastrophe losses of nearly 14 points and a 7-point improvement in the underlying combined ratio. The underlying combined ratio of 79.3% reflects the benefit of the actions we've taken to improve the fundamentals of our business in both auto and homeowners.

綜合成本率為 88.4%，較去年同期提高 20 個百分點，這得益於巨災損失減少近 14 個百分點以及基礎綜合成本率提高 7 個百分點。79.3% 的基礎綜合比率反映了我們為改善汽車和房屋業務基本面所採取的行動所帶來的效益。

Net written premiums grew 3% in the quarter, driven by higher renewal premium change in homeowners. In automobile, the second-quarter combined ratio was 85.3% and included a 5-point benefit from favorable prior year development. The underlying combined ratio of 89% improved 6.2 points compared to the second quarter of the prior year.

受房主續保保費變化增加的推動，本季淨承保保費增加了 3%。在汽車領域，第二季的綜合成本率為 85.3%，其中去年同期的良好發展帶來了 5 個百分點的收益。基礎綜合成本率為 89%，與去年同期第二季相比改善了 6.2 個百分點。

This improvement was driven by favorable loss experience across both bodily injury and vehicle coverages and, to a lesser extent, the benefit of higher earned pricing. In homeowners and other, the second-quarter combined ratio of 91.3% was a significant improvement compared to the prior year, reflecting lower catastrophes and strong underlying underwriting income.

這種改善是由於人身傷害和車輛保險的良好損失經驗，以及在較小程度上更高的定價帶來的好處所推動的。在房主及其他險種中，第二季綜合比率為 91.3%，與前一年相比有顯著改善，反映出巨災損失減少和承保收入強勁。

The underlying combined ratio of 70.3% improved over 7 points compared to the second quarter of 2024. This year-over-year improvement was driven by both favorable non-catastrophe weather losses and the continued benefit of earned pricing.

基礎綜合比率為 70.3%，與 2024 年第二季相比提高了 7 個多百分點。這一同比增長得益於有利的非災難天氣損失和持續的盈利定價優勢。

Turning to production. Our results reflect further progress toward positioning our diversified portfolio to deliver long-term profitable growth. In domestic automobile, retention of 82% remained consistent with recent periods. Renewal premium change continues to moderate as intended, reflecting improved profitability and our focus on returning to profitable growth in auto.

轉向生產。我們的業績反映出我們在定位多元化投資組合以實現長期獲利成長方面取得了進一步進展。在國產汽車中，82%的保有率與近期持平。續保保費變化繼續按預期放緩，反映出盈利能力的提高以及我們對恢復汽車盈利增長的關注。

We're pleased to note that all the new business premium increased 12%. In addition, for the first time in more than a year, we wrote more new business policies than in the prior-year quarter. The new business momentum was primarily driven by our continued efforts to improve auto growth. The relaxing of some of our property restrictions also contributed to the new business momentum in auto.

我們高興地註意到，所有新業務保費都增加了12%。此外，一年多來，我們首次製定的新業務政策數量超過了去年同期。新的業務動能主要得益於我們不斷努力提高汽車成長。部分房地產限制的放寬也促進了汽車業務的新動能。

In domestic homeowners and other, retention remained relatively consistent. Renewal premium change of 19.3% reflects our continued actions to align insured values with rising replacement costs and secure rate increases in geographies where we have the need. The decline in homeowners policies in force continues to be a result of our deliberate actions to manage exposures in high cat risk geographies. We're pleased with the progress we've made.

對於國內房主和其他人來說，保留率保持相對穩定。續保費變動 19.3% 反映了我們持續採取行動，使保險價值與不斷上漲的重置成本保持一致，並確保在有需要的地區提高費率。房屋保險有效保單數量的下降仍然是我們採取有意識的行動來管理高巨災風險地區風險敞口的結果。我們對所取得的進展感到滿意。

While we will maintain restrictions on property capacity where we can't achieve appropriate risk reward, we expect to relax many of our rate and non-rate actions in most markets by the end of 2025.

雖然我們將繼續對無法實現適當風險回報的房地產容量進行限制，但我們預計到 2025 年底將在大多數市場放寬許多利率和非利率行動。

To sum it up, this is a great quarter. We delivered strong segment income as our team continue to improve the fundamentals of our business while further positioning our portfolio for long-term profitable growth.

總而言之，這是一個偉大的季度。由於我們的團隊不斷改善業務基礎，同時進一步定位我們的投資組合以實現長期盈利增長，我們實現了強勁的分部收入。

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

說完這些，我將把電話轉回給 Abbe。

Great. Thanks, Michael, and we are ready to open up for Q&A.

偉大的。謝謝，邁克爾，我們準備好開始問答環節了。

Thank you. (Operator Instructions) Gregory Peters, Raymond James.

謝謝。（操作員指示）格雷戈里·彼得斯、雷蒙德·詹姆斯。

Good morning, everyone. So I think for the first question, I'll zero in on business insurance and pricing. Looking at the renewal premium change, both in business insurance ex national accounts and select accounts in middle market. I feel like pricing is holding up pretty good. Maybe there's some pockets of weakness that you're seeing or some pressure.

大家早安。因此，我認為對於第一個問題，我將集中討論商業保險和定價。查看續保保費變化，包括全國帳戶以外的商業保險和中端市場精選帳戶。我覺得價格保持得相當不錯。也許您看到了一些弱點或壓力。

But Greg, in your comments, you talked about in the large national account market, losing some accounts to the subscription market. When you talk about the pricing environment, how much of the select or middle market business has exposure to potential subscription market price competition? And just some additional color on where you're seeing pricing pressure in your middle markets business.

但是格雷格，在你的評論中，你談到了在大型全國帳戶市場中，一些帳戶流失到了訂閱市場。當您談到定價環境時，有多少精選或中端市場業務會受到潛在的訂閱市場價格競爭的影響？並且您也對中端市場業務中的價格壓力做了一些補充說明。

Yeah, good morning, Greg. First of all, it wasn't casualty. It was national property that I referenced. And so yeah, typically, you would see a shared and layered a large property schedule be built into a tower and we're definitely seeing that some of the softer element of the property business in those larger schedules. That would leak a little bit into the top end of middle market, but not much and not be relevant for Select.

是的，早上好，格雷格。首先，這不是一起傷亡事故。我提到的是國家財產。是的，通常情況下，你會看到一個共享的、分層的大型房地產項目被建在一座塔樓裡，我們肯定會看到這些較大的項目中存在一些房地產業務的軟元素。這會對中端市場的高端產生一些影響，但影響不大，而且與 Select 無關。

Greg, just to come back and paint a picture here. And I think Greg laid out a lot of detail in this answer, but just to create the context again. I think as he shared, price and national property was lower. Workers' comp pricing was about the same, but price change in every other line including the component of property that's outside of the national property business was actually quite strong.

格雷格，回來在這裡畫一幅畫。我認為格雷格在這個答案中闡述了許多細節，但只是為了再次創建上下文。我認為正如他所分享的，價格和國家財產較低。工人補償價格大致相同，但其他所有行業（包括國家房地產業務以外的房地產部分）的價格變化實際上相當強勁。

And in that context, I would also point to retention, which we've always shared is a real indicator of market stability. So we are quite comfortable with the very, very strong execution.

在這種背景下，我還要指出保留率，我們一直認為這是市場穩定性的真正指標。因此，我們對非常非常強大的執行力感到非常滿意。

Absolutely. That's apparent in slide 7 on your ROE slide. Can I pivot to the personal lines business? And I think, Michael, you said in your comments, you're going to relax some restrictions by the end of the year. Can you foreshadow what that looks like in terms of premium production or how that might affect either your renewal -- your retention rates or your policy count growth?

絕對地。這在您的 ROE 幻燈片的第 7 張中很明顯。我可以轉向個人險業務嗎？邁克爾，我認為你在評論中說過，你將在今年年底前放寬一些限制。您能否預測一下這在保費生產方面會是什麼樣子，或者這會如何影響您的續保——您的保留率或您的保單數量增長？

Sure, Greg. Thanks for the question. I think the reason I made the comments around the plans to relax some of our restrictions in property by year-end was just to give you a little bit of a feel for the progress that we're making. As I mentioned, we're pleased with our progress there, and we continue to see progress in our ability to improve profitability and manage volatility in the property line.

當然，格雷格。謝謝你的提問。我認為我之所以就年底前放寬部分房地產限制的計劃發表評論，只是為了讓你們稍微了解一下我們正在取得的進展。正如我所提到的，我們對在那裡取得的進展感到滿意，並且我們在提高盈利能力和管理房地產波動的能力方面繼續取得進展。

The other reason I mentioned is, as we've talked about in the past, those property actions have been a headwind to auto production. And so while most of our progress this quarter in auto really was a direct result of our efforts to grow auto, some of the states we've begun to relax have also shown signs of progress in auto growth.

我提到的另一個原因是，正如我們過去談到的，這些房地產行動對汽車生產造成了阻力。因此，雖然本季度我們在汽車領域取得的大部分進展實際上是我們努力發展汽車業務的直接結果，但我們開始放寬限制的一些州也顯示出汽車業務成長取得進展的跡象。

So the point there on the property side is, we've got a game plan in terms of the places we need to reduce exposure to manage volatility. We've got a game plan in terms of pricing, in terms and conditions, we need to make changes due to improved profitability, and we're making good progress in executing that plan, and most of those actions should be completed by the end of 2025.

因此，就房地產方面而言，我們有一個計劃，即我們需要減少風險敞口以管理波動性。我們在定價、條款和條件方面都有計劃，我們需要根據盈利能力的提高做出改變，我們在執行該計劃方面正在取得良好進展，大部分行動應該在 2025 年底前完成。

David Motemaden, Evercore.

大衛莫特馬登（David Motemaden），Evercore。

Hey, good morning. Alan, I had a follow-up question just on the property side. So I hear you loud and clear, renewal premium change in property outside of national property was down a little bit, but I guess, obviously positive still. How concerned are you about the durability of that? And if some of that weakness that you're seeing in large accounts, national account property starts to trickle down more into middle market and even further down.

嘿，早安。艾倫，我有一個關於房地產方面的後續問題。所以我清楚地聽到了你的聲音，全國財產以外的財產的續保費變化略有下降，但我想，顯然仍然是積極的。您對於它的持久性有多擔心？如果您在大型帳戶中看到一些弱點，那麼國家帳戶財產就會開始更多地滲透到中端市場甚至更遠的市場。

David, I think you're missing the forest for the trees. I mean, the overall landscape is very positive and really consistent with what we're seeing in terms of returns. Now we would expect the overall property market to move in a direction. But historically, the property outside of national property has just performed differently, as you'd expect.

大衛，我認為你只見樹木不見森林。我的意思是，整體情況非常樂觀，與我們看到的回報情況非常一致。現在我們預計整個房地產市場將朝著一個方向發展。但從歷史上看，正如您所預料的那樣，國家財產以外的財產表現有所不同。

Got it. Thank you. And then maybe just a follow-up question for Greg. So on the business insurance underlying loss ratio, very strong at the 58.4. I think in 2Q last year, there was about a point of light non-cat weather, any of that happened again this year in second quarter that may have flattered the results a little bit? Or is this a cleaner number?

知道了。謝謝。然後也許我只是想問格雷格一個後續問題。所以，商業保險的基礎損失率非常強勁，達到了58.4。我認為去年第二季出現了輕微的非災害性天氣，今年第二季是否再次出現類似的天氣，可能會稍微提升業績？或者這是一個更清晰的數字？

David, it's Dan. I'll take that. So you're right in remembering that we did point out a little bit of favorability in last year's quarter. We saw a little bit of favorability again in this year's quarter. I don't know if it's a new normal, but we've now seen several quarters where we've had a little bit of favorability there.

大衛，我是丹。我會接受的。所以你記得的很對，我們確實指出了去年季度的一些有利因素。我們在今年季度再次看到了一些有利跡象。我不知道這是否是一種新常態，但我們現在已經看到幾個季度我們對此有了一些好感。

Again, it wasn't a big component last year. So yes, we see a little bit of favorability again this year, but plus or minus a point, the combined ratio is still outstanding in business insurance.

再說一遍，它去年並不是一個重要組成部分。所以是的，我們今年再次看到了一些有利因素，但無論加減一個點，商業保險的綜合成本率仍然很突出。

Brian Meredith, UBS.

瑞銀的 Brian Meredith。

Yeah, thanks. A couple. Just back on the underlying account loss ratios in BI, how do you think about kind of the effect of tort inflation and what that's doing with your underlying kind of loss picks? I appreciate you're seeing improvement, but I would have thought just what we're hearing about all the problems with tort inflation out there. You may not see that much improvement in underlying loss ratios at this point because of some conservatism there.

是的，謝謝。一對。回到 BI 中的基礎帳戶損失率，您如何看待侵權通膨的影響以及這對您的基礎損失選擇有何影響？我很高興你看到了進步，但我以為我們聽到的只是有關侵權行為膨脹的所有問題。由於存在一些保守情緒，目前您可能不會看到基礎損失率有太大改善。

Yeah, Brian, the tort inflation is alive and well, it hasn't gone anywhere and continues to show up in the numbers. I would say we've got an expectation for it, we're pricing for it. It appears the whole market is pricing for it, if you look at what pricing is doing. And so all the social inflation we see is inside the numbers that you're looking at.

是的，布萊恩，侵權行為通膨依然存在，而且沒有消失，繼續在數字中體現。我想說我們對此有所期待，並且正在為它定價。如果你看一下定價情況，你會發現整個市場都在為此定價。因此，我們看到的所有社會通膨都體現在您所看到的數字中。

Great. So your pricing point is not having much effect to margins. Okay. Second one, Michael, I'm just curious, I appreciate the comments about what's going on with personal auto. Do you expect retention to trend back towards, call it, the mid-80s as I think where personal auto has been. Is that where we should think about things heading?

偉大的。所以您的定價點對利潤率沒有太大影響。好的。第二個，邁克爾，我只是好奇，我很欣賞關於個人汽車發生的事情的評論。您是否預計保留率會回到 80 年代中期的水平，我認為那時個人汽車的保留率一直處於這個水平。這就是我們該思考的事情嗎？

Yeah, Brian, I think it's a great question. Certainly, you're right to recall that historically, in auto, we would have run more, say, an 84 retention versus an 82. I would tell you that coming into 2025, our expectation was we would have seen retention recover as pricing moderated.

是的，布萊恩，我認為這是一個很好的問題。當然，您說得對，從歷史上看，在汽車領域，我們的保留率會更高，例如 84%，而不是 82%。我想告訴你，到 2025 年，我們預計隨著價格的緩和，留存率將會恢復。

Clearly, you haven't seen that in the numbers. I think that's reflective of the overall competitive environment in auto, but we continue to focus on both new business production and retention improvement as we see margins and auto continue to improve.

顯然，你沒有從數字中看到這一點。我認為這反映了汽車行業的整體競爭環境，但隨著利潤率和汽車行業的持續改善，我們將繼續專注於新業務的生產和保留率的提高。

So again, our focus is on returning auto to growth, and we've got a number of efforts underway to drive that. But we are still a couple of points off the historical run rate of retention in auto.

因此，我們的重點是讓汽車恢復成長，我們已經做出了許多努力來推動這一目標。但我們與汽車產業的歷史保留率相比仍有幾個百分點的差距。

Appreciate it. Thank you.

非常感謝。謝謝。

Meyer Shields, KBW.

邁耶希爾茲，KBW。

So two questions. First, Michael, if I can follow up on that. If you're growing an a new -- well -- [asking it differently] how confident are you that there's no -- maybe [telematics] related adverse selected issues growing in new business but retention hasn't yet come back to where you expected?

所以有兩個問題。首先，邁克爾，我可以跟進一下嗎？如果您正在發展一個新的 - 嗯 - [換一種問法] 您有多大信心，認為新業務中可能不存在與[遠程資訊處理]相關的不利選擇問題，但保留率尚未回到您預期的水平？

I think it's a good question, Meyer. I would tell you that underneath the production levels that we're generating, we look at retained business, we look at new business, we look at the profile underneath it. We don't see any signs of adverse selection in our profile metrics for either the business we're retaining or the new business we're writing. So we really don't see any evidence of that.

我認為這是一個很好的問題，邁耶。我想告訴你，在我們產生的生產水準之下，我們會專注於保留的業務，專注於新業務，並專注於背後的概況。無論是對於我們保留的業務還是我們正在進行的新業務，我們的概況指標中都沒有看到任何逆向選擇的跡象。所以我們確實沒有看到任何證據。

Okay. Excellent. And then, I guess, for Alan, and on the commercial side, is there any sense that when lines of business soften in the current cycle, and I know it's very line of business specific, because it seems to be softening faster than we've seen after past hard markets? I know right now focused on property and [DNO] a couple of years ago, but I'm wondering whether there's a theme there of this rapid softening that we hadn't seen.

好的。出色的。然後，我想，對於艾倫和商業方面來說，在當前週期中，業務線是否會疲軟，我知道這是非常具體的業務線，因為它的疲軟速度似乎比我們在過去艱難的市場之後看到的速度要快？我知道現在我們關注的是幾年前的房地產和[DNO]，但我想知道這種快速疲軟是否存在我們從未見過的主題。

I'm not sure I get the question, Meyer. But I don't think so. What's your hypothesis that it's softening faster because of what?

我不確定我是否明白這個問題，邁耶。但我不這麼認為。您認為它軟化得更快的原因是什麼？

So I'm not sure (technical difficulty) because of it would be. But in the past, you had like very sudden and abrupt rate increases when the market got hard and then it was still really soften and the problem was that it's soft for too many years at a moderate level.

所以我不確定（技術難度）會是什麼原因。但在過去，當市場變得艱難時，利率會突然大幅上調，然後市場仍然會變得疲軟，問題是市場在溫和水平上疲軟了太多年。

And I'm wondering whether for the lines of business that are seeing softening now, whether it's working faster than it had in the past. I have no good suggestion in terms of why that would be happening. I'm just wondering if it's happening.

我想知道，對於目前正在走弱的業務線來說，它是否比過去發展得更快。對於為什麼會發生這種情況，我沒有好的建議。我只是想知道這是否正在發生。

I think the bigger trend here, if you look back over a very long period of time, the amplitude of the pricing cycle, I think, is shrinking. The last time we made a bottom, we didn't really go below zero and price has been positive for years now in most lines. The other dynamic you see really is dispersion of pricing by line as a function of rate adequacy and returns.

我認為，這裡的更大趨勢是，如果回顧很長一段時間，定價週期的幅度正在縮小。上次我們觸底時，價格並沒有真正跌破零，而且多年來大多數產品的價格一直為正。您實際上看到的另一個動態是，根據費率充足性和回報，各線路的定價分散。

And so that's really what I think we're seeing. I think it's less of some market dynamic and big shifts up or down. I think it's pretty rational relative to what we're seeing in terms of returns.

我認為這就是我們所看到的。我認為這不是某種市場動態，也不是大幅上漲或下跌。我認為相對於我們所看到的回報而言這是相當合理的。

Okay. Perfect. That's very helpful. I appreciate it.

好的。完美的。這非常有幫助。我很感激。

Robert Cox, Goldman Sachs.

高盛的羅伯特·考克斯。

Hey, thanks. For the first question, I just wanted to revisit the tariff discussion that you all provided us with helpful thoughts on last quarter. How are you considering tariffs within the pricing and margins today?

嘿，謝謝。對於第一個問題，我只是想重新討論一下上個季度大家為我們提供的有益想法的關稅討論。您目前如何考慮定價和利潤範圍內的關稅？

Yeah. We really haven't seen really any impact of tariffs across any of our businesses, certainly not in any meaningful way. And we do have some expectation that there could be an impact. I think we said last quarter that we would expect it in the back half of this year to the extent we do expect it, we'll put it into our loss picks, and that will make its way through to our pricing indications. But so far, no impact really.

是的。我們確實沒有看到關稅對我們的任何業務產生任何影響，當然也沒有任何重大影響。我們確實預計這可能會產生影響。我想我們上個季度說過，我們預計它會在今年下半年出現，只要我們確實預期，我們就會把它納入我們的虧損選擇中，這將影響到我們的定價指示。但到目前為止，確實沒有影響。

Okay. Great. And then a question on distribution. Just curious how you all are thinking about this continued consolidation of insurance brokers and how that might impact travelers. You guys obviously have some great relationships. Is that a tailwind?

好的。偉大的。然後是關於分佈的問題。只是好奇你們對保險經紀人的持續整合有何看法，以及這將如何影響旅行者。你們倆顯然關係很好。那是順風嗎？

Yeah, this has now become a pretty long-term trend, and we've been evaluating it really probably over more than a decade now. And I think for the most part, it has been a tailwind and no reason to expect that wouldn't continue. We've got great relationships with those on the acquiring side. So we tend to be a net beneficiary of that process.

是的，這現在已經成為一個相當長期的趨勢，我們可能已經對它進行了十多年的評估。我認為，在大多數情況下，這都是順風，沒有理由認為這種情況不會持續下去。我們與收購方保持良好的關係。因此，我們往往是這一進程的淨受益者。

Alex Scott, Barclays.

巴克萊銀行的亞歷克斯·斯科特。

Morning. First one I have is just on casualty versus property and mix shift. I think for the whole industry, some of the growth in property over the last couple of years has been pretty helpful for underlying margins, at least, maybe even overall margins.

早晨。我所擁有的第一個只是關於傷亡與財產以及混合轉變。我認為，對於整個產業而言，過去幾年房地產產業的成長對基礎利潤率，至少是整體利潤率，都有很大幫助。

Would you expect over the next 12 months, just given what's going on with property and that being a little bit more pressure in terms of price, would you expect any reversal on that? Any help you can provide us just making sure we're capturing that dynamic over the next 12 months.

您是否預計，在未來 12 個月內，考慮到房地產市場的現狀以及價格方面將面臨的更大壓力，您預計會出現逆轉嗎？您可以提供任何協助，以確保我們在未來 12 個月內掌握這種動態。

Hey Alex, it's Dan. So we give you every quarter written premium by product in Business Insurance. And we did make the comment maybe a year, maybe 1.5 years ago or so when property was growing faster than the rest of the book largely because of the significant price increases that were occurring, but we're also taking some new business that, that had a modest benefit to margin and mix.

嘿，亞歷克斯，我是丹。因此，我們會以商業保險產品向您提供每季的承保保費。我們確實在大約一年前，大概一年半前發表了這樣的評論，當時房地產的成長速度快於其他業務，主要是因為價格大幅上漲，但我們也開展了一些新業務，這些業務對利潤率和組合產生了一定的好處。

And maybe a quarter or two ago, we got a question of has that gone away as the level of price increase in national property has moderated to which the answer was yes. And if you look at property growth now, it is no longer outsized relative to business insurance overall.

大概在一、兩個季度前，我們被問到，隨著全國房地產價格上漲水準的放緩，這種情況是否已經消失，答案是肯定的。如果你現在看看房地產成長，你會發現它相對於商業保險整體而言已不再過大。

So the short answer is, it doesn't have much of an impact in terms of mix change. It was never big enough that we actually called it out in any meaningful way, but it was a slight good guy maybe 1.5 years ago, and that's sort of gone away, but that's inside of the terrific results we just posted this quarter.

所以簡短的回答是，它對混合變化沒有太大的影響。它從來沒有大到讓我們以任何有意義的方式真正指出它，但大概 1.5 年前它還是一個稍微好一點的傢伙，現在這種現像已經消失了，但這就是我們本季度剛剛發布的出色業績的一部分。

Got it. Helpful. Second one I have is on workers' comp. I was just interested if you're seeing any impact from some of the heightened claim environment in California, I think, related to cumulative trauma claims and so forth. And also maybe just broadly, if some of the medical cost pressures that we're hearing some of the health insurer talking about or finding their way into workers' comp loss costs turned at all?

知道了。很有幫助。我的第二個是關於工傷賠償的。我只是想知道您是否看到加州一些索賠環境的加劇產生了任何影響，我認為這與累積創傷索賠等有關。而且也許只是從廣義上講，我們聽到一些健康保險公司談論的醫療成本壓力或工人補償損失成本是否發生了變化？

Hey, Alex, yeah, this is Greg. Regarding cumulative trauma, clearly, we're seeing that in California, and it's not a new quarterly trend. It's something we've been seeing for a few years now. We've been very responsive with underwriting and claim strategies to make sure we're managing that dynamic.

嘿，亞歷克斯，是的，這是格雷格。關於累積性創傷，顯然，我們在加州看到了這種情況，這並不是一個新的季度趨勢。這是我們幾年來一直看到的事情。我們對承保和索賠策略非常積極，以確保我們能夠管理這種動態。

I think if you look at the overall rate indications of the bureau and the state that have just been approved of cumulative trauma has definitely a dynamic underneath that. So I think it's a good example where, again, our evidence-based culture and our collaboration has us in a really well-positioned position right now.

我認為，如果你看一下該局和剛剛被批准的累積性創傷的總體比率指標，其中肯定存在著一種動態。所以我認為這是一個很好的例子，再次證明我們基於證據的文化和我們的合作使我們目前處於非常有利的地位。

Alex, the thing I'd add generally on workers' comp is loss trend continues to come in favorable to our expectations and -- consistent with the trends we've been seeing really over a couple of years.

亞歷克斯，關於工人補償，我想補充的是，損失趨勢繼續符合我們的預期，並且與我們過去幾年看到的趨勢一致。

Wes Carmichael, Autonomous Research.

韋斯·卡邁克爾，自主研究。

Thanks. Good morning. I just wanted to come back to Business Insurance, in particular, middle market. Pretty strong premium growth here at 10% in the quarter. It seems like renewal rate change is pretty stable. But I just want to get any additional color on if you think you can sustain that type of premium growth rate in middle market? Or maybe what's driving the relatively stronger growth there in your view?

謝謝。早安.我只是想回到商業保險，特別是中端市場。本季保費成長相當強勁，達到 10%。看起來續訂率變化相當穩定。但我只是想進一步了解一下，您是否認為您可以在中端市場維持這種溢價成長率？或者您認為是什麼推動了那裡相對強勁的成長？

Yeah, good morning, Wes. We're not going to give you an outlook in terms of where middle market pricing is going to go up, just give you some color underneath that 10%. You pointed out the two -- well, the three dynamics, we have strong rate exposure change that's driving good premium change.

是的，早上好，韋斯。我們不會向您提供中端市場價格上漲的前景，只會為您提供 10% 以下的一些資訊。您指出了兩個——好吧，這三個動力，我們有強勁的利率敞口變化，這推動了良好的保費變化。

And then retention continues to be near historical highs on that business, which I think, just demonstrates the strong value that we're bringing out into the marketplace and new business. Our underwriters have been incredibly active in the marketplace and to put those three into action in the quarter and you get a terrific number like 10%.

然後，該業務的保留率繼續接近歷史最高水平，我認為這證明了我們為市場和新業務帶來的巨大價值。我們的承銷商在市場上非常活躍，如果將這三項措施在本季付諸行動，你就會獲得 10% 這樣驚人的數字。

Thanks. Fair enough. And maybe just coming back on social inflation and loss cost. For Travelers, is this as pronounced in middle and small accounts as it is for national? And I guess there is a discrepancy. Is there any way to think about it in terms of rule of thumb and differences in loss cost trends?

謝謝。很公平。也許只是回歸社會通膨和損失成本。對於旅行者來說，這種現像在中小型帳戶中是否與在國家帳戶中一樣明顯？我猜想其中存在差異。有沒有辦法根據經驗法則和損失成本趨勢的差異來思考這個問題？

Yeah. I do think that you probably see it maybe a little bit more pronounced in larger business where there are larger limits involved and it's a more potentially attractive target for the [plaintiffs bar], but we pretty well see it across the entire book.

是的。我確實認為，你可能會在較大的企業中看到這種情況更加明顯，因為涉及的限制更大，而且對於原告律師來說，這是一個更具吸引力的目標，但我們幾乎可以在整本書中看到這種情況。

Ryan Tunis, Cantor Fitzgerald.

瑞安突尼斯、康托費茲傑拉。

Thanks. Good morning. I guess just first question, just trying to think about where your business might be impacted by the macro, I guess, in business insurance, there's like a small tick down in exposure. Is it safe to say that, that tells the whole story. Or is there something else you'd point to underneath it, they might say something else?

謝謝。早安.我想第一個問題是，只是想想您的業務可能會受到宏觀的影響，我想，在商業保險中，風險敞口會略有下降。可以肯定地說，這講述了整個故事。或者你會指向下面其他的東西，他們可能會說別的什麼？

Ryan, this is Greg. Yeah, clearly, when you look at the exposure trend in business insurance, it's aligned with economic activity. And that shouldn't be surprising where inflation trends have been coming down also. So I think it's more linear with the longer-term economy than anything short term right now.

瑞安，這是格雷格。是的，顯然，當你觀察商業保險的風險趨勢時，它與經濟活動是一致的。通貨膨脹趨勢也在下降，這並不奇怪。因此我認為它與長期經濟的關係比與短期經濟的關係更為密切。

And then I guess just one for Dan. On the sale of the Canada business, should we think about that as having any type of pro forma impact on the combined expense ratio, the underlying loss -- I guess (technical difficulty) figures.

然後我想丹就只答應一個。關於出售加拿大業務，我們是否應該考慮這會對綜合費用率、潛在損失產生任何形式上的影響——我猜（技術難度）數字。

Yeah, not much of an impact, Ryan. For two reasons. One is just a very small component of the overall mix of our business. So the inclusion or exclusion of those results is -- and we don't expect to have a significant impact on margin really one way or the other, which is one of the reasons that we said when we announced the deal, we expected to have a favorable but modestly favorable impact on EPS going forward.

是的，影響不大，瑞安。原因有二。這只是我們整體業務中非常小的一個組成部分。因此，納入或排除這些結果 - 我們預計不會對利潤率產生重大影響，這也是我們在宣布交易時所說的原因之一，我們預計這將對未來的每股收益產生有利但適度的積極影響。

Elyse Greenspan, Wells Fargo.

富國銀行的伊莉絲‧格林斯潘。

Hi, thanks. Good morning. I guess my first question is going to be a follow-up just on the Canadian sale. You guys marked part of the proceeds right to be used for buyback, but that leaves some extra capital. So is that being set aside for growth or for M&A? And irregardless of whether you pick the M&A bucket, maybe Alan, you can just give us a current update on just views surrounding M&A?

你好，謝謝。早安.我想我的第一個問題是有關加拿大銷售的後續問題。你們將部分收益標記為用於回購，但這會留下一些額外的資本。那麼，這筆錢是用於成長還是併購？無論您是否選擇併購領域，艾倫，您都可以向我們提供有關併購的最新觀點嗎？

Good morning, Elyse. So you can just think about that capital is being reallocated to our other capital needs of supporting our business, supporting our growth, supporting other capital objectives that we have. It's not really big enough to change our view towards M&A one way or the other, frankly. So I don't think it makes M&A even more or less likely, but we continue to be very active in looking for things that would meet our objectives.

早安，伊莉絲。因此，你可以想像，資本正在被重新分配到我們的其他資本需求中，以支持我們的業務、支持我們的成長、支持我們的其他資本目標。坦白說，這還不足以改變我們對併購的看法。因此，我認為這不會增加或減少併購的可能性，但我們會繼續積極尋找能夠滿足我們目標的東西。

And as we've been pretty consistent about for a long time, we would be interested in opportunities that would improve our return profile improve volatility or provide us with other strategic capabilities. So there's really no change to our M&A strategy or approach.

正如我們長期以來一直堅持的那樣，我們對能夠改善我們的回報狀況、改善波動性或為我們提供其他策略能力的機會感興趣。因此，我們的併購策略或方法實際上並沒有改變。

Thanks. And then my follow-up is coming back to just medical inflation. Are there any considerations from the OBB legislation? And then obviously, we've seen, combined with just the fact that we've seen some companies already point to higher utilization stemming from some changes in Medicaid availability.

謝謝。然後我的後續問題又回到醫療通膨問題。OBB 立法有何考慮？顯然，我們已經看到，再加上我們已經看到一些公司已經指出醫療補助可用性的一些變化導致使用率更高。

We really haven't seen any -- nor would we expect any significant or even meaningful impact from Medicaid at all. Typically, workers' comp claims tend to come from people that are employed and aren't on Medicaid. So that wouldn't be an issue.

我們確實沒有看到任何——我們也不期望醫療補助會產生任何重大甚至有意義的影響。通常，工傷賠償索賠往往來自受僱且未享有醫療補助的人。所以這不是問題。

And even if you have somebody who was both employed and on Medicaid, you almost always default to workers' comp anyway because it's a better health care alternative for them. So there's really nothing in OBB or in the Medicaid world generally that we think is impacting worker's comp.

即使有人既有工作又享受醫療補助，你幾乎總是默認選擇工傷賠償，因為這對他們來說是一種更好的醫療保健選擇。因此，我們認為 OBB 或整個醫療補助領域實際上並沒有任何東西對工人補償產生影響。

And the one thing I'll add, Elyse, there was a change to the Medicare fee schedule, but that was within expectations and historical norms. So no surprises for that either.

我要補充一點，伊莉絲，醫療保險收費標準有所變化，但這在預期和歷史規範之內。所以這也不足為奇。

Thank you.

謝謝。

Cave Montazeri, Deutsche Bank.

蒙塔澤里洞，德意志銀行。

Thank you. My first question is on the elevated amount of share repurchases in the quarter. Was that mainly linked to market volatility in April and the proceeds that you had from Canada? Or should we think of that level as being a new baseline going forward?

謝謝。我的第一個問題是關於本季股票回購數量的增加。這主要與四月份的市場波動以及您從加拿大獲得的收益有關嗎？或者我們應該把這個水準視為未來發展的新基準？

It's Dan. So a couple of things on that. So one, we don't have proceeds from the Canada transaction. We said we'd expect that transaction to close in the early part of 2026. So that's when you'd see the incremental $700 million for share repurchases start to become available.

是丹。關於這一點，有幾件事需要說明。首先，我們沒有從加拿大交易中獲得收益。我們表示，預計該交易將在 2026 年初完成。所以到那時你會看到用於股票回購的增量 7 億美元開始可用。

Second, we don't really forecast a level of share repurchases. What we're doing is rightsizing capital. And so also related to the first part of the first part of your question, we're really not market timing in terms of what the stock price is at any given moment. We have a long-term view of stock price intrinsic value, likely growth in book value and our view of what stock price is likely to be.

其次，我們其實並沒有預測股票回購的水平。我們正在做的是調整資本規模。因此，也與你問題的第一部分相關，就任何特定時刻的股票價格而言，我們實際上並沒有掌握市場時機。我們對股票價格的內在價值、帳面價值的可能成長以及股票價格的未來走勢有著長期的看法。

And when we reach a point where we have excess capital because we continue to generate excess capital, as Alan just said, we'll look for opportunities to deploy it either to grow the business organically to look for inorganic opportunities, make new strategic investments when we've exhausted all those opportunities it's not our capital, it's investors and we're going to return it to shareholders.

當我們達到資本過剩的程度時，因為我們會繼續產生過剩資本，正如艾倫剛才所說，我們會尋找機會部署它，要么有機地發展業務，要么尋找無機機會，要么進行新的戰略投資，當我們用盡所有這些機會時，它不是我們的資本，而是投資者的資本，我們將把它返還給股東。

But that's really what we're doing, and we're not leaning in or leaning out based on stock price at any particular moment as long as we're comfortable that the value relative to our view of long term is still there.

但這確實是我們正在做的事情，只要我們確信相對於我們的長期觀點而言的價值仍然存在，我們就不會根據任何特定時刻的股票價格而傾向或傾向。

Okay. And then if I could pivot to personal lines. you did mention relaxing some restrictions on the property side and you did say it's going to be -- it's got an impact on rate and non-rate actions by year-end. But does that also include relaxing the ratio of how much business you ride in property versus auto?

好的。然後，如果我可以轉向個人線路。您確實提到放寬房地產方面的一些限制，並且您確實說過這將對年底的利率和非利率行動產生影響。但這是否也包括放寬房地產與汽車業務的比例？

I think you didn't mention in the past that you would like them to move in line just to keep a pretty good balance in your portfolio between the two. Is that changing as well? Would you be more likely to write more auto, even if you can't write as much on the property side? Or that's no change to that view?

我認為您過去沒有提到您希望它們保持一致，以便在您的投資組合中保持兩者之間的良好平衡。這也正在改變嗎？即使你不能在財產方面寫那麼多，你是否更有可能寫更多的汽車？或者說這並沒有改變這個觀點？

Yeah. So this is Michael. Thanks for the question. I think when we've talked about shifting the mix of business in the past and the mix of the portfolio in the past, our focus really has been shifting it more towards auto to get the portfolio back in balance between auto and property. When you look at the PIF changes over time, you see progress in that regard, right?

是的。這就是麥可。謝謝你的提問。我認為，當我們過去談論轉變業務組合和投資組合組合時，我們的重點實際上是將其更多地轉向汽車，以使投資組合在汽車和房地產之間重新達到平衡。當您觀察 PIF 隨時間的變化時，您會看到這方面的進步，對嗎？

The -- while we do still see a reduction in auto PIF, it's about 25% of the reduction in property. So that demonstrates progress in mixing toward property. As we -- sorry, mixing towards auto. As we relax the restrictions in property, our goal would be to deploy that property capacity and support of writing package business which is our primary strategy in Personal Insurance. So we would expect the relaxing of some of the property restrictions to bring with it both property and auto opportunities as we look forward.

儘管我們仍然看到汽車 PIF 有所減少，但其減少量約為財產減少量的 25%。這表明在混合財產方面取得了進展。正如我們——抱歉，混合向汽車。隨著我們放寬對財產的限制，我們的目標是部署財產能力和承保打包業務的支持，這是我們在個人保險方面的主要策略。因此，我們預計，部分房地產限制的放寬將帶來房地產和汽車領域的機會。

Vikram Gandhi, HSBC.

維克拉姆甘地，匯豐銀行。

Hi, good morning, everybody. My question relates to cyber, if you guys have seen any signs of moderation in the rate reductions for cyber and whether any of the recent losses might help [down] the sentiment for the better.

大家好，早安。我的問題與網路有關，你們是否看到網路費率降低有任何緩和的跡象，以及最近的任何損失是否有助於改善情緒。

Hi, good morning. This is Jeff Klenk. I'd say that cyber remains a competitive price environment from a market perspective. As I pointed out in my prepared remarks, inside our management liability business, we've been taking some segmented and disciplined focus on a couple of specific lines of business. Cyber is one of those that we believe the loss environment is not fully reflected in the pricing in the marketplace. So that's our perspective on it. What it means for the future of that market, I wouldn't forecast.

嗨，早安。這是傑夫·克倫克。我想說，從市場角度來看，網路仍然是一個競爭激烈的價格環境。正如我在準備好的發言中指出的那樣，在我們的管理責任業務中，我們一直對幾個特定的業務線進行細分和規範的關注。我們認為網路是損失環境之一，但其損失並未完全反映在市場定價上。這就是我們對此的看法。我無法預測這對該市場的未來意味著什麼。

Okay. Thank you. And my follow-up is related to the investment book. So in terms of the ratings mix for the investment portfolio, I see a notable downward movement from the AAA bucket to AA. I'm assuming that would have been driven by the Moody's action on the US. Could you confirm if that was indeed the case? And what does that do to your capital model and the capital requirements on your internal model?

好的。謝謝。我的後續工作與投資書籍有關。因此，就投資組合的評級組合而言，我看到評級從 AAA 顯著下降至 AA。我猜想這可能是受穆迪對美國的行動影響。您能確認情況確實如此嗎？這對您的資本模型和內部模型的資本需求有何影響？

Yeah, it's Dan. So that's correct. That's the driver. Both levels of credit quality still super strong. We're very comfortable with the overall mix of the portfolio and the overall credit rating of the portfolio were well within our internal guidelines and really don't view the US government credits is necessarily less likely to be collected than they were previously, so it's moved down one notch, you're correct, that's the driver, and not really a level of concern for us.

是的，是丹。這是正確的。那是司機。兩個級別的信用品質仍然非常強勁。我們對投資組合的整體結構非常滿意，投資組合的整體信用評級完全符合我們的內部指導方針，我們確實不認為美國政府信貸的回收可能性會比以前更低，所以它下降了一個等級，你是對的，這就是驅動因素，而這並不是我們真正擔心的程度。

Thank you.

謝謝。

I will now turn the call back over to Ms. Abbe Goldstein for closing remarks.

現在我將把電話轉回給阿貝·戈德斯坦女士，請她作最後發言。

Thanks very much. We appreciate everyone joining us today. And as always, if there's any follow-up, please reach out to Investor Relations. Have a good day.

非常感謝。我們感謝今天與我們一起的各位。與往常一樣，如果有任何後續事宜，請聯絡投資者關係部。祝你有美好的一天。

Thank you again for joining us today. This does conclude today's presentation. You may now disconnect.

再次感謝您今天加入我們。今天的演講到此結束。您現在可以斷開連線。