TWFG Inc (TWFG) 2024 Q2 法說會逐字稿

Good morning. My name is Michelle, and I will be your conference operator today. At this time, I would like to welcome everyone to the TWFG second quarter 2024 conference call. All lines have been placed on mute to prevent any background noise. The speakers' remarks there will be a question and answer session. (Operator Instructions) This call is being recorded and will be available for replay on the company's website.

早安.我叫米歇爾，今天我將擔任你們的會議操作員。此時，我歡迎大家參加 TWFG 2024 年第二季電話會議。所有線路均已靜音，以防止任何背景噪音。演講者的發言將有一個問答環節。 （操作員說明）此通話正在錄音，並將在公司網站上重播。

Before we begin, let me remind you that today discussion may contain forward-looking statements and actual results may differ materially from those discussed. For more information regarding forward-looking statements, please refer to the company's press releases and FEC filing.

在開始之前，請允許我提醒您，今天的討論可能包含前瞻性陳述，實際結果可能與討論的結果有重大差異。有關前瞻性陳述的更多信息，請參閱本公司的新聞稿和 FEC 文件。

Also on today's call, our speakers will reference certain non-GAAP financial measures, which we believe will provide useful information for investors. The company had posted reconciliations of the non-GAAP financial measures discussed during this call in the tables accompanying the company's earnings press release located on the investors section of the company's website at investortwfg.com. It is now my pleasure to introduce Mr. Gordy Bunch, Founder, Chairman, and CEO of TWFG. Sir, the floor is now yours.

同樣在今天的電話會議上，我們的發言人將提到某些非公認會計準則財務指標，我們相信這些指標將為投資者提供有用的信息。該公司已在該公司網站 Investortwfg.com 投資者部分的公司收益新聞稿隨附的表格中發布了本次電話會議期間討論的非公認會計準則財務指標的調節表。現在我很高興向大家介紹 TWFG 的創辦人、董事長兼執行長 Gordy Bunch 先生。先生，現在地板是你的了。

Thank you, Michelle. Good morning, everyone, and thank you for taking time to join us today to discuss our second quarter 2024 results. I would like to welcome all our new stockholders and the analysts to our first earnings call as a public company.

謝謝你，米歇爾。大家早安，感謝您今天抽出時間與我們討論 2024 年第二季的業績。我謹歡迎所有新股東和分析師參加我們作為上市公司的第一次財報電話會議。

Joining me on this call is Janice Zwinggi, our Chief Financial Officer. After my opening remarks, Janice will review our financial results and then we will take your questions.

與我一起參加本次電話會議的是我們的財務長 Janice Zwinggi。在我的開場白之後，珍妮絲將審查我們的財務業績，然後我們將回答您的問題。

First of all, I would be remiss if I didn't take this time to thank all of our employees, carriers, agents, clients and vendors over the past 23 years and help TWFG reach our goal of becoming a public company. We truly have an amazing team collaborating every day to create one of the fastest growing independent insurance distribution platforms. I started TWFG with an eventual IPO in mind so that one day our agents and employees would be aligned with equity when the time was right.

首先，如果我沒有花時間感謝過去 23 年來我們所有的員工、承運人、代理商、客戶和供應商，並幫助 TWFG 實現成為上市公司的目標，那就是我的失職。我們確實擁有一支出色的團隊，每天都在合作創建成長最快的獨立保險分銷平台之一。我創辦 TWFG 時就考慮到最終的 IPO，以便有一天我們的代理商和員工能夠在時機成熟時與股權保持一致。

I am pleased with the number of agents and employees that we can now count as shareholders. Ownership and alignment with our talent will continue to grow as we move forward as a public company.

我對我們現在可以算作股東的代理人和員工的數量感到滿意。隨著我們作為一家上市公司的發展，我們的所有權和人才凝聚力將不斷增強。

Our second quarter saw an inflection in growth with our agency in a box offering with the opening of 44 new TWIG branches. These branches are staffed by 44 experienced former captivated, and we are excited that they have decided to join the TWFG family. This opportunistic onboarding of seasoned client focused talent demonstrates how TWFG is uniquely positioned to capture the ongoing shift from captive distribution to independent distribution.

我們第二季的成長出現了轉捩點，我們的代理盒裝產品開設了 44 個新的 TWIG 分店。這些分支機構擁有 44 名經驗豐富的前員工，我們很高興他們決定加入 TWFG 大家庭。這種以客戶為中心的經驗豐富的人才的機會主義入職展示了 TWFG 如何處於獨特的地位，能夠抓住從專屬分銷到獨立分銷的持續轉變。

We did not expect this influx of talent to have a significant impact on our revenues this year or next. But over the long term, we expect the agents we are onboarding in 2024 to contribute to our organic growth.

我們預期人才的湧入不會對我們今年或明年的收入產生重大影響。但從長遠來看，我們預計 2024 年招募的代理商將為我們的有機成長做出貢獻。

As far as the operating environment, we are beginning to see improvements in carriers' appetite for growth as the industry achieved significant improvements in loss ratios. This is expected to lead to higher new business growth and expansion opportunities heading into 2025.

就營運環境而言，隨著產業損失率的顯著改善，我們開始看到營運商的成長意願有所改善。預計到 2025 年，這將帶來更高的新業務成長和擴張機會。

TWFG had a strong second quarter, highlighted by 17.4% total revenue growth, 13.8% organic revenue growth, 18.4% adjusted net income margin and a 20.2% adjusted EBITDA margin. At TWFG, we believe we offer a strong value proposition for the tens of thousands of captive agents and independent agents looking for the right partner to help them grow and perpetuate their business.

TWFG 第二季表現強勁，總營收成長 17.4%，有機營收成長 13.8%，調整後淨利潤率 18.4%，調整後 EBITDA 利潤率 20.2%。在 TWFG，我們相信我們可以為數以萬計的專屬代理商和獨立代理商提供強大的價值主張，尋找合適的合作夥伴來幫助他們發展和延續業務。

Our value proposition, coupled with a conservative balance sheet, flexibility around deal structuring and our efficient operating model position us well going forward.

我們的價值主張，加上保守的資產負債表、交易結構的靈活性以及高效的營運模式，使我們能夠順利前進。

While we paused our M&A initiatives leading up to the IPO, we did continue to build a pipeline of potential acquisitions. We look for acquisitions with the following characteristics. First, cultural alignment. It is critical for any acquisition we close that there is preexisting cultural alignment. We will not transact a deal if an organization is culturally diluted.

雖然我們暫停了 IPO 之前的併購計劃，但我們確實繼續建立潛在收購管道。我們尋找具有以下特徵的收購。第一，文化契合。對於我們完成的任何收購來說，預先存在的文化一致性至關重要。如果組織在文化上被淡化，我們就不會達成交易。

Second, portfolio alignment. We prioritize acquisitions, delivering profitable portfolios to their trading partners, are focused on a loss ratio, retention and carrier pre-approval of our transactions, help avoid adding dilutive portfolios.

其次，投資組合調整。我們優先考慮收購，為其貿易夥伴提供有利可圖的投資組合，重點關注損失率、保留和運營商對我們交易的預先批准，幫助避免增加稀釋性投資組合。

Third, organic growth. We are looking for opportunities that are accretive to our organic growth trajectory for that have the potential to be additive. Fourth, EBITDA margin. We expect to acquire accretive margin agency. MGAs and other strategic partners. Our M&A model shows margin expansion in the out years as we absorb public company expense.

第三，有機成長。我們正在尋找能夠促進我們有機成長軌蹟的機會，因為這些機會有可能產生附加效應。第四，EBITDA利潤率。我們期望收購增值代理機構。 MGA 和其他策略夥伴。我們的併購模型顯示，隨著我們吸收上市公司費用，未來幾年的利潤率將會擴大。

Some of the margin expansion is expected to come from our M&A activity and the balance from achieving further scale in our core businesses. Fifth, geography. We are looking for the right opportunity to expand into new geographic locations. Our goal is to fill in more of the country with additional TMG branded locations, whether by acquisition or recruiting.

部分利潤率擴張預計將來自我們的併購活動以及我們核心業務進一步規模化所帶來的平衡。第五，地理。我們正在尋找合適的機會擴展到新的地理位置。我們的目標是透過收購或招聘，在全國更多地區開設更多 TMG 品牌店。

Different areas of the country utilize different carriers with whom it is often difficult to obtain appointments. Acquiring contracts with carrier preapproval is a proven way to expand our markets and increased viability in these areas. Sixth, synergy. We target acquisitions that strategically bring a compounding benefit. These benefits include technology, [niche MGA] platforms, distribution that have not overlap with our current footprint and deals where we have internal synergies that increase the target and TWFG value.

該國的不同地區使用不同的運營商，但通常很難獲得預約。獲得營運商預先批准的合約是擴大我們的市場並提高在這些領域的生存能力的有效方法。第六，協同作用。我們的目標是能夠策略性地帶來複合效益的收購。這些好處包括技術、[利基 MGA] 平台、與我們當前足跡不重疊的分銷，以及我們擁有內部協同效應以提高目標和 TWFG 價值的交易。

We expect to continue reengaging in our M&A efforts and look forward to future accretive deals.

我們預計將繼續重新進行併購工作，並期待未來的增值交易。

I will now ask Janice to review our second quarter results in greater detail.

我現在將請珍妮絲更詳細地審查我們第二季度的業績。

Thanks, Gordy, and good morning to everyone on the call. Starting with top line, written premium increased $66.5 million or 20.3% over the prior year period to $393.6 million. Under our primary offerings, insurance services grew $58.5 million or 21.2%, and TWFG MGA grew $8 million or 15.6% over the prior year period.

謝謝戈迪，祝所有參加電話會議的人早安。首先，承保保費比去年同期增加了 6,650 萬美元，即 20.3%，達到 3.936 億美元。在我們的主要產品中，保險服務比去年同期增長了 5,850 萬美元，即 21.2%，TWFG MGA 增長了 800 萬美元，即 15.6%。

Retention remains high and branch locations are driving same-store sales, coupled with carriers retaining sufficient rate increases, particularly in the personal lines arena. Total revenue increased $7.9 million or 17.4% over the prior year period to $53.3 million, of which commission income represents 15.2% of this 17.4% growth.

保留率仍然很高，分行正在推動同店銷售，再加上營運商保持足夠的費率成長，特別是在個人線路領域。總收入較上年同期增長 790 萬美元，即 17.4%，達到 5,330 萬美元，其中佣金收入佔 17.4% 增長的 15.2%。

By product offerings, insurance services is the main driver, representing 15.9% of the 17.4% total revenue growth. Commission income increased $6.9 million or 16.5% over the prior year period to $48.7 million. This increase is due mainly to higher premium rates, business growth, increased retention and continued rollout of our book of business acquisitions in 2023 into the current period.

從產品種類來看，保險服務是主要驅動力，佔總收入成長 17.4% 的 15.9%。佣金收入較上年同期增加 690 萬美元，或 16.5%，達到 4,870 萬美元。這一增長主要是由於保費率上升、業務增長、保留率增加以及我們在 2023 年繼續將業務收購賬簿推出到本期。

Organic revenues increased $5.7 million or 13.8% to $47.5 million, driven by strong retention increase in premium rates and healthy new business growth.

由於保費保留率的強勁增長和新業務的健康增長，有機收入增加了 570 萬美元，即 13.8%，達到 4750 萬美元。

Turning to expenses. Note that expense comparisons to prior periods for mainly commission expense and salary and employee benefits are skewed given the acquisition of nine of our independent branches in January 2024, which in prior years were operated as agents used in a box and have now been converted to corporate stores.

轉向開支。請注意，由於我們在2024 年1 月收購了9 個獨立分支機構，因此與前期主要佣金費用、工資和員工福利的費用比較出現了偏差，這些分支機構在前幾年是作為盒子裡的代理運營的，現在已轉變為公司分支機構商店。

The commission expense associated with the branch conversions decreased while salary and benefits increased compared to prior periods. Commission expense increased $1.1 million or 3.5% over the prior year period to $32 million. Commission expense increased due to the company's growth for the period by $4.2 million, offset by a decrease of $3.2 million related to the branch conversions, with an offsetting increase in salary and employee benefits of $2.2 million.

與前期相比，與分行轉換相關的佣金費用有所減少，而薪資和福利則增加。佣金費用比上年同期增加 110 萬美元，或 3.5%，達到 3,200 萬美元。由於公司在此期間的成長，佣金費用增加了 420 萬美元，但被與分支機構轉換相關的 320 萬美元的減少所抵消，同時工資和員工福利增加了 220 萬美元。

Total salary and employee benefits increased by $3.4 million or 102.3% over the prior year period to $6.8 million as mentioned above, $2.2 million of the increase was related to the branch conversions and $1.1 million of the increase was due to corporate store asset acquisition.

如上所述，工資和員工福利總額比去年同期增加了340 萬美元，即102.3%，達到680 萬美元，其中220 萬美元的增長與分支機構轉換有關，110 萬美元的增長與公司商店資產收購有關。

Other administrative expenses increased $1 million or 37% over the prior year period to $3.7 million due to the continued growth in the business and the absorption of public company costs. Amortization and depreciation expenses increased $1.8 million or 162% over the prior year period to $3 million due to the amortization of intangibles associated with our branch conversions and the 2023 acquisitions.

由於業務的持續成長和上市公司成本的吸收，其他管理費用比去年同期增加了 100 萬美元，即 37%，達到 370 萬美元。由於與我們的分行轉換和 2023 年收購相關的無形資產攤銷，攤銷和折舊費用比上年同期增加 180 萬美元，即 162%，達到 300 萬美元。

Net income for the quarter decreased $0.2 million or 2.1% over the prior period to $6.9 million and adjusted net income increased $1.5 million or 18.1% over the prior year period to $9.8 million due mainly to the add-back of increased amortization expenses associated with our branch conversions earlier this year and the 2023 acquisitions.

本季淨利比上一期減少20 萬美元，即2.1%，至690 萬美元，調整後淨利潤比上年同期增加150 萬美元，即18.1%，達到980 萬美元，這主要是由於與我們的業務相關的攤銷費用增加的回加。

Our EBITDA and adjusted EBITDA for the quarter were $10.8 million, representing 28.5% and 25.8% growth, respectively. Our adjusted EBITDA margin was 20.2% in the second quarter versus 18.8% in the prior year period. The margin expansion was driven by branch conversions, corporate locations acquired last year and economies of scale offset somewhat by cut of company costs, which we expect to continue to ramp into our run rate expense base over the next several quarters.

本季的 EBITDA 和調整後 EBITDA 為 1,080 萬美元，分別成長 28.5% 和 25.8%。第二季調整後 EBITDA 利潤率為 20.2%，去年同期為 18.8%。利潤率的成長是由分公司轉換、去年收購的公司地點以及公司成本削減所抵銷的規模經濟所推動的，我們預計這些成本將在未來幾季繼續增加到我們的營運費用基礎中。

With that, I'll turn it back to Gordy.

有了這個，我會把它轉回給戈迪。

Thanks, Janice. In summary, this was a solid second quarter, and we are pleased with the results. I want to remind analysts and investors that we were not public in the second quarter, and we are now incurring public company expenses that will impact our quarterly results going forward. We anticipate providing 2025 guidance later this year when we have a clear line of sight into our public company expenses.

謝謝，賈妮絲。總而言之，這是一個穩健的第二季度，我們對結果感到滿意。我想提醒分析師和投資者，我們在第二季並未上市，我們現在正在承擔上市公司費用，這將影響我們未來的季度業績。我們預計將在今年稍後提供 2025 年指導，屆時我們對上市公司的支出有了清晰的了解。

With that, we would like to open the call for questions. Michelle?

至此，我們想開始提問。米歇爾？

(Operator Instructions)

（操作員說明）

Michael Zaremski, BMO.

邁克爾·扎雷姆斯基 (Michael Zaremski)，BMO。

Hey, good morning, and congrats on your first quarter out. I guess my first question's on M&A, and it's maybe a bit high level, but wanted to see if you'd be willing to kind of offer what you think is a suitable kind of long-term debt to EBITDA ratio level that you think is realistic or that you're seeking to get to over time and maybe it's dependent on whether transformational M&A takes place or doesn't, but any color around whether you just expect kind of small tuck-ins or it could be lumpy, and we could really see some leverage being deployed over time? Thanks.

嘿，早安，恭喜你第一節出局。我想我的第一個問題是關於併購的，可能水平有點高，但想看看您是否願意提供您認為合適的長期債務與 EBITDA 比率水平。實現的目標，也許這取決於轉型併購是否發生，但任何顏色，無論你只是期望某種小折騰，還是可能會很不穩定，我們可以隨著時間的推移，真的看到了一些槓桿作用的發揮嗎？謝謝。

Yeah. Thanks, Mike. So as we mentioned, we did shut down M&A, leading into the IPO. We did still continue to have conversations. We're happy to be back in the M&A game. We do have a good pipeline. There are some larger lumpier opportunities that we're currently just now in the beginning phases of entertaining.

是的。謝謝，麥克。正如我們所提到的，我們確實停止了併購，進入了首次公開募股。我們仍然繼續交談。我們很高興重返併購遊戲。我們確實有很好的管道。有一些更大、更不穩定的機會，我們目前正處於娛樂的開始階段。

As far as IPO proceeds, we have plenty of the cash on hand. We have equity as currency, and we do have our credit facility we can draw on. If we deploy all that capital, and drew all our credit facility, we still wouldn't have much of a debt to EBITDA ratio.

就IPO的進展而言，我們手頭上有充足的現金。我們有股本作為貨幣，我們也有可以動用的信貸額度。如果我們部署所有的資本，並提取所有的信貸額度，我們的債務與 EBITDA 的比率仍然不會很高。

I think when we had our conversations during the roadshow, we indicated that for transformational opportunities, things that make really good long-term sense. 1x to 3x debt to EBITDA ratio would be where we have comfort. I don't see us there in the near term, given the capital on hand, the free cash flow we have and the credit facilities that we can draw down on currently.

我認為，當我們在路演期間進行對話時，我們表示，對於轉型機會而言，這些事情具有真正良好的長期意義。 1 到 3 倍的債務與 EBITDA 比率將讓我們感到放心。考慮到我們現有的資本、我們擁有的自由現金流以及我們目前可以動用的信貸額度，我認為我們短期內不會實現這一目標。

Okay. That's helpful. Maybe pivoting to the -- in the release, and I think you touched on it during your prepared remarks, Gordy. You talked about in the first half of the year, not Q2, but the first half, hiring 44 experienced folks from captives. Can you give us a flavor of what's the basis that -- so we can kind of better understand that how those 44 could provide a potential lift to organic growth over time?

好的。這很有幫助。也許轉向——在發布中，我想你在準備好的演講中提到了這一點，戈迪。你談到了上半年，不是第二季度，而是上半年，從俘虜中僱用了 44 名有經驗的員工。您能給我們介紹一下其基礎是什麼嗎？

Sure. And I'll clarify. The 44 new branches were just in the second quarter. So all 44 were onboarded April through June, prior captive agents where multi-line, good mix of personal commercial lines. As we launch new agency, these are agencies not producers. So they have additional staff within their own locations.

當然。我會澄清一下。今年第二季新增44家分行。因此，所有 44 名員工均於 4 月至 6 月期間入職，先前的專屬代理商擁有多線、良好的個人商業線組合。當我們推出新的代理商時，這些是代理商而不是製作人。因此，他們在自己的地點配備了額外的員工。

We have always made sure that we communicated that these are starting from scratch. They don't have any in-force business. It takes a while for us to get them through the transitional training of how to be independent agents, how to utilize independent technology, how to access the broader credit markets that we bring to bear, working with our marketing team on rebranding and deploying in their communities.

我們始終確保我們傳達的訊息是這些都是從頭開始的。他們沒有任何有效的業務。我們需要一段時間才能讓他們接受如何成為獨立代理人、如何利用獨立技術、如何進入我們帶來的更廣泛的信貸市場、與我們的行銷團隊合作進行品牌重塑和部署的過渡培訓。

So they'll have some production, but nothing that's going to drive the needle in the near term. They do become an addition to us in the long term as helping us sustain this low to mid 10s organic growth rates. So we're very happy to have added them. We're starting to see some traction that we wanted to get from the IPO, the awareness of our operators. And so we'll start to see improvements.

所以他們會有一些生產，但短期內不會有什麼推動作用。從長遠來看，它們確實會成為我們的補充，幫助我們維持 10 多歲的有機成長率。所以我們很高興添加它們。我們開始看到我們希望從 IPO 中獲得的一些吸引力，以及我們營運商的意識。因此我們將開始看到改進。

Great to see that we had inbound activity pre IPO. So we hope that's helpful, Mike. If we get a little bit more insight on that as we come towards the end of the year, we'll be happy to share more details.

很高興看到我們在首次公開募股前有入境活動。所以我們希望這對您有所幫助，邁克。如果我們在年底時對此有更多的了解，我們將很樂意分享更多細節。

Okay. I'll just -- I'll use my follow up just to copy that, Gordy. So is the -- 44 just to be clear is that on a base of about 400 prior as of 1Q?

好的。我會用我的後續行動來複製這一點，戈迪。那麼，要明確的是，44 是在第一季之前約 400 的基礎上嗎？

Yeah, I don't remember the actual 1Q number, but that's about right. Because [410 or 411] are now going over [450].

是的，我不記得實際的 1Q 數字，但差不多是這樣。因為[410或411]現在正在超過[450]。

Okay. And then just so just to be clear, you've had nice margin improvement, there's been some -- there's a number of drivers of that. But are the -- if you can remind us as you add -- if you keep up at this cadence of hiring, let's just, you know, a decent chunk of unproductive producers. Does that have a material impact on your margins or not really the way your business model works?

好的。然後需要明確的是，你的利潤率有了很大的提高，有一些——有很多驅動因素。但是，如果你能在你補充的時候提醒我們的話，如果你繼續保持這種招募節奏，你知道，我們就會有相當一部分生產力低下的生產者。這是否會對您的利潤產生重大影響，或者是否真的不符合您的商業模式的運作方式？

Yeah. It's a good question, so I'll add some further clarification. These are recruited 1099 agency in a box branches. So we have no salary and wages, brick-and-mortar expenses attached to these new 44 locations. The prior captive principles that will be operating these retail branches will bear the expense of the local onboarding.

是的。這是一個很好的問題，所以我將添加一些進一步的說明。這些都是在1099個代理商中招募的一個盒子分支機構。因此，我們沒有為這 44 個新地點支付工資和實體費用。先前將營運這些零售分店的自保原則將承擔當地的入職費用。

We have some minimal expenses, onboarding them with the training and information that we provide to them. The websites we set up, the initial collateral for March, but that's not going to have a meaningful impact to our expenses. So no, there's not like a drag. It's not like I hired a producer who's not going to produce and I'm paying them a salary. They're bearing that local expense. And so hopefully, that's clear.

我們有一些最低限度的費用，為他們提供培訓和資訊。我們建立的網站是三月的初始抵押品，但這不會對我們的支出產生有意義的影響。所以不，沒有阻力。這並不是說我僱用了一個不會製作的製片人而我卻付給他們薪水。他們承擔當地的費用。希望這是明確的。

Thank you.

謝謝。

Paul Newsome, Piper Sandler.

保羅‧紐瑟姆，派珀‧桑德勒。

Yeah, good morning. Congratulations on this call. I was hoping you could give us just your most updated thoughts on the environment, particularly in Texas and how that move to manufacturing might affect the outlook for organic growth, obviously from the SaaS changing personal lines market at the moment?

是的，早安。恭喜您接到此電話。我希望您能為我們提供您對環境的最新想法，特別是在德克薩斯州，以及向製造業的轉變可能會如何影響有機增長的前景，顯然是來自目前正在改變個人線路市場的 SaaS？

So Texas for us is our core state. We also have our own proprietary property program that goes through our MGA. That's actually fostering growth in the current period. And so for us, Texas continues to see growth. We're able to effectively add new locations in Texas. We're able to obtain the carrier access that is necessary for those to be viable and successful.

所以德克薩斯州對我們來說是我們的核心州。我們也有自己的專有財產計劃，透過我們的 MGA。這實際上促進了當前時期的成長。因此，對我們來說，德克薩斯州繼續增長。我們能夠有效地在德克薩斯州添加新地點。我們能夠獲得營運商的存取權，這是這些企業生存和成功所必需的。

Barrel, that did come in. That was in the third quarter. It did have some disruption to production for early part of July. Most of that is when anytime a hurricane enters the Gulf through a [80-20] parallel, binding is suspended. When the hurricanes come through, make landfall and pass, depending on the path of the storm, certain geography remains closed for a period of time. Once carriers are done assessing post landfall damage, then they reopen binding.

桶，那確實進來了。七月初確實對生產造成了一些幹擾。其中大部分是當颶風通過 [80-20] 緯線進入海灣時，綁定就會暫停。當颶風來襲、登陸和通過時，根據風暴的路徑，某些地區會在一段時間內保持封閉狀態。一旦承運人完成了登陸後損壞的評估，他們就會重新綁定。

So the state is fully reopened for business, I would say, of the areas along barrels path who are closed for about a week. After that weak, new business resumed. We really haven't had any new carriers put in restrictions post barrel. So for us, we continue to grow in Texas. I think that carriers are looking at refining their pricing and methodology of where they want to grow in the state.

因此，我想說的是，該州已全面重新開放商業活動，桶路徑沿線地區已關閉約一周。在那次疲軟之後，新業務又恢復了。我們確實還沒有任何新的運營商受到限制。因此，對我們來說，我們將繼續在德克薩斯州發展。我認為營運商正在考慮完善他們想要在該州發展的定價和方法。

I think most of you I shared with our program that we operate through our MGA. Does have a nonstructural [Halo Doorsmen] that helps mitigate the frequency of severe convective storm losses, and that's providing us an outlet to write preferred homeowners across the state where other carriers are still working through how to address that issue that's due causing a pause in underwriting by the markets.

我想你們中的大多數人都跟我分享了我們透過 MGA 運作的計劃。確實有一個非結構性的[Halo Doorsmen]，有助於減輕嚴重對流風暴損失的頻率，這為我們提供了一個渠道來寫全州的首選房主，而其他運營商仍在研究如何解決導致暫停的問題由市場承銷。

Is the environment outside of fairly similar commentary in California, except for the hurricane impact?

除了颶風影響之外，加州以外的環境是否相當相似？

So if I talk about the broader countrywide appetite, even California is starting to soften. Our largest trading partners, Progressive and American Mercury had both open back up more 40 business. I'm not going to say that they are back to pre-personal lines, hard market levels of growth initiatives. But each of our top two markets are back into accepting business, writing business, looking for growth in smart geography and smart locations. And so I do think that we lose the golf.

因此，如果我談論更廣泛的全國範圍的胃口，即使是加州也開始疲軟。我們最大的貿易夥伴 Progressive 和 American Mercury 都開設了 40 多個業務。我不會說他們又回到了前個人路線、成長計畫的硬市場水準。但我們的前兩個市場都已重新開始接受業務、撰寫業務，尋求智慧地理和智慧位置的成長。所以我確實認為我們輸掉了高爾夫。

Okay. Sorry, we had flashing. Almost [rained]. [Making sure] we didn't lose you. So California is emerging. I'm not going to call it a wide-open growth there. Other states, less wildfire exposed, less cat-exposed are starting to get back to three personal lines of our market growth initiatives.

好的。抱歉，我們有閃光。幾乎[下雨了]。 [確保]我們沒有失去你。所以加州正在崛起。我不會稱之為開放式成長。其他受野火影響較少、貓災較少的州也開始回歸我們市場成長計畫的三條個人路線。

And so, as we meet with our top trading partners, we look for those states where they have wide open capacity and a appetite to appoint new distribution points and to put in growth initiatives for us to grow that new geography. So the balance of the country, not cat-exposed and not wildfire exposed in getting back to three personal lines, hard market levels. The rates have gone through. The loss ratios have improved.

因此，當我們與我們的頂級貿易夥伴會面時，我們會尋找那些擁有廣泛開放能力並有興趣指定新分銷點並為我們制定增長計劃以發展新地區的州。因此，國家的平衡，沒有貓暴露，也沒有野火暴露，回到三個個人線，硬市場水平。費率已經通過了。損失率有所改善。

And so you have the balance of the country is essentially wide open and some of those harder market state, state-by-state, new initiatives are coming in and they'll start to follow we think in 2025 outside of California and maybe like in New York. The rest of the state should be back to a pretty hard market norm.

因此，這個國家基本上是完全開放的，一些更困難的市場州、各州、新舉措正在出台，我們認為到 2025 年，它們將開始遵循我們認為在加州以外的地區，也許就像在紐約。該州其他地區應該會恢復到相當艱難的市場常態。

Very much appreciate the color. Thank you.

非常欣賞顏色。謝謝。

Yup.

是的。

[Bob Jane Wong], Morgan Stanley.

[鮑勃簡黃]，摩根士丹利。

Hi, good morning. Maybe this is sort of a follow up on the M&A side and on the growth side. In terms of expansion into the newer states. So outside of Texas, California, Louisiana, can you maybe talk about how much of the future growth in the newer states will likely be driven by M&A? Is M&A really bigger focus there rather than the Texas and California or would you say M&A is more balanced across all states? And just curious as to how you think about the M&A side when it comes to the newer states?

嗨，早安。也許這是併購方面和成長的後續行動。在擴展到新州方面。那麼，在德克薩斯州、加利福尼亞州、路易斯安那州之外，您能否談談新興州的未來成長有多少可能是由併購驅動的？併購真的比德州和加州更受關注嗎？只是好奇您如何看待新州的併購方面？

So for us, as I mentioned in the call, going into new geography, many of the areas that we're looking to expand into are relying upon super regionals and regional markets that we don't currently trade with. And so for us to have a strong footprint in a new geographical area, the acquisitions are the best way to plant our flag.

因此，對於我們來說，正如我在電話中提到的那樣，進入新的地理區域，我們希望擴展到的許多領域都依賴我們目前不與之進行貿易的超級區域和區域市場。因此，為了讓我們在新的地理區域擁有強大的影響力，收購是插上我們旗幟的最佳方式。

Once we make an acquisition in the state, do the integration onboard everybody into the TWFG way, then we look at how do we expand from that initial acquisition into recruiting and developing branches and expanding M&A in that same state.

一旦我們在該州進行收購，將每個人都整合到 TWFG 方式中，然後我們就會考慮如何從最初的收購擴展到在同一州招募和發展分支機構以及擴大併購。

So I'll use Ohio as an example, where we made our acquisition in Ohio two years ago. We made subsequent acquisitions from the first one and now we have recruited into the state new [scratch] retail branch. So I look at the M&A for geographical expansion as kind of like a front running, establishing a camp that then we can build off of a base of strength and deploy the balance of our offerings into that new geography, having added the right carrier components in order to make that successful.

因此，我將以俄亥俄州為例，兩年前我們在俄亥俄州進行了收購。我們從第一次收購開始進行了後續收購，現在我們已經招募了州新的[臨時]零售分行。因此，我將地理擴張的併購視為一種搶先跑，建立一個營地，然後我們可以建立一個實力基礎，並將我們的產品平衡部署到新的地域，並在其中添加正確的運營商組件。使其成功。

So we are going to expand into new geographies via recruiting as well. So our geographical expansion will not be solely M&A focused. And so we will have new geography open up purely from our agency box recruiting initiatives as that talent aligns to our platform.

因此，我們也將透過招募擴展到新的地區。因此，我們的地域擴張將不僅僅專注於併購。因此，隨著人才與我們的平台保持一致，我們將純粹透過我們的代理盒招募計畫開闢新的地域。

Okay. Got it. Really appreciate that. Thank you. That's all I got.

好的。知道了。真的很感激。謝謝。這就是我所得到的。

Thanks, Bob.

謝謝，鮑伯。

[Tomy Mcjoint], KBW.

[托米·麥克關節]，KBW。

Hey, guys. Good morning. When we think about the puts and takes that drove the 13.8% organic growth in the quarter, is there a way to quantify the tailwind from [rear] and then perhaps conversely, the headwind from customer shopping, hurting retention, any way to put some numbers around those two figures?

嘿，夥計們。早安.當我們考慮推動本季 13.8% 有機成長的看跌期權和看跌期權時，是否有辦法量化來自[後方]的順風，然後也許相反，客戶購物帶來的逆風，損害保留率，有什麼方法可以把一些這兩個數字周圍的數字？

I would put it on -- we had higher premium retention than our historical norms, which on balance gave us a lower percentage of new business contributing towards the organic revenue. And as the market starts to normalize, I won't say softening yet, although it normalized, then you'll see a eventual shifting of the organic revenue from retention trickling down towards our historical average retention rates and our new business as a percentage of total organic revenue trickling back up.

我想說的是——我們的保費保留率高於我們的歷史標準，總的來說，這使我們新業務對有機收入的貢獻率較低。隨著市場開始正常化，我不會說軟化，儘管它已經正常化，然後你會看到有機收入最終從保留率下降到我們的歷史平均保留率和我們的新業務的百分比總有機收入逐漸回升。

So for us, as we looked at it in the [rear], we're getting to the same low to mid 10s organic revenue growth and the components of premium retention versus new business, new customers. It just ebbs and flows depending on what part of the cycle we're in. But we're landing at the same number.

因此，對我們來說，正如我們在[後面]中看到的那樣，我們的有機收入成長和保費保留的組成部分與新業務、新客戶相同，達到了 10 左右。它只是根據我們處於週期的哪個部分而潮起潮落。

So I'd say in the current period, you're going to see because of the higher premium retention more of that came from rate during that period. As we shift back into normalcy, you'll see that lessen that we [rear], more of it would be new business, new finance.

所以我想說，在當前時期，由於保費保留率較高，您會看到更多來自該時期的利率。當我們回到正常狀態時，你會發現我們的[後備]減少了，更多的是新業務、新金融。

Okay, got it. Thanks. And then switching gears, can you give us a sort of a tax refresher just in terms of how you can leverage your Up-C structure and M&A? And is that only valuable for larger, perhaps transformational-type deals?

好的，明白了。謝謝。然後換個話題，您能給我們簡單介紹一下如何利用您的 Up-C 結構和併購嗎？這是否只對規模更大、可能是轉型型的交易有價值？

So the Up-C structure provides us with two different types of equity we can use in an acquisition. You have traditional Class A shares at the Up-C organization. We can issue in an acquisition as part of a transaction. Those can be used for any size deal. The LLC units that are part of our TRA, those would be once spared for larger transformational, founder-led, low cost bases, large organizations that would be benefiting from the TRA agreement where they then participate in the out years with those TRA payments, which makes that equity worth more than say, just a Class A share that doesn't have that TRA benefit.

因此，Up-C 結構為我們提供了兩種可以在收購中使用的不同類型的股權。您在 Up-C 組織中擁有傳統的 A 類股票。我們可以將收購作為交易的一部分進行。這些可用於任何規模的交易。屬於我們TRA 一部分的有限責任公司單位，這些單位將被保留下來用於更大的轉型、創始人主導的低成本基礎、大型組織，這些組織將從TRA 協議中受益，然後他們將在未來幾年內參與這些TRA 付款，這使得該股權的價值不只是一個沒有 TRA 福利的 A 類股票。

There are a number of founder-led, larger organizations where that would make sense. And so I would use it sparingly for the right opportunities, for the right partners. That is an advantage we saw BRP being able to attract some very nice acquisitions through that Up-C LLC unit TRA share class. And that's a tool in our kit, one that we will retain for the highest quality, most accretive opportunities.

在許多由創辦人領導的大型組織中，這樣做是有意義的。因此，我會謹慎地將其用於合適的機會、合適的合作夥伴。這是我們看到 BRP 能夠透過 Up-C LLC 單位 TRA 股票類別吸引一些非常好的收購的優勢。這是我們工具箱中的一項工具，我們將保留它以獲得最高品質、最具增值性的機會。

Thanks. Appreciate the overview.

謝謝。欣賞概述。

Sure.

當然。

Brian Meredith, UBS.

布萊恩·梅雷迪思，瑞銀集團。

Hey, thanks. A couple of them pretty quickly. Given the profitability that you're talking about as some of your carriers in (technical difficulty), what do you think right now is for contingent income coming in. Should we see that start to improve here as a percentage of premium (technical difficulty) kind of (technical difficulty) as a percentage of [commissioning]?

嘿，謝謝。其中幾個很快。考慮到您所談論的一些運營商的盈利能力（技術難度），您認為現在的或有收入是多少。的百分比？

So in our model, we had, I think, 33 basis points of contingent revenue relative to premium. And as the loss ratios improve across a number of the contingent paying markets, there could be some upside to that in '24. We really are not targeting for that in '24 because as rates come in, they have to earn through the portfolio. So there is a little bit of a timing of when the rate actually hits the bottom of the loss ratio.

因此，在我們的模型中，我認為我們的或有收入相對於溢價有 33 個基點。隨著一些或有支付市場的損失率改善，24 年的損失率可能會上升。我們確實沒有設定 24 年的目標，因為隨著利率的提高，他們必須透過投資組合來獲利。因此，當比率實際達到損失率的底部時，有一個時間點。

But in 2025, you should have the full effect of rate adequacy after multiple years of pricing, underwriting adjustments. And that should be the year that contingencies get back to more of the 40 basis points of premium versus the low 30s.

但到 2025 年，經過多年的定價和承保調整，您應該能充分感受到利率充足性的影響。今年，意外事件的溢價應該會回到 40 個基點的水平，而不是 30 個基點的低點。

So we're always going to be conservative in how we view contingency, given the volatility of the payout structures. So they're loss ratio sensitive, they're growth sensitive. So there's various components and they're not all the same. Every carrier addresses it slightly differently.

因此，考慮到支付結構的波動性，我們在看待意外事件時始終保持保守。所以他們對損失率敏感，對成長敏感。所以有各種各樣的組件，而且它們並不完全相同。每個運營商的處理方式都略有不同。

So even if you have loss ratio improvements in, say, a said market, if they had a growth trigger component of that and they've been closed for new business, you may not realize the same benefit you would have with that loss ratio in a growth mode.

因此，即使你在某個市場上的損失率有所改善，如果他們有成長觸發因素，並且他們已經因新業務而關閉，你可能不會意識到在該市場中損失率會帶來同樣的好處。

So what we put into our model is what we're still projecting. And if things materially change as we get into the end of the third quarter, going into fourth quarter, we'll make adjustments. We do get lock in opportunities from some of our markets. Those deals generally come in middle of the October, and that's an opportunity for us to lock in that actual contingency -- there's a discount to your payout if you take the lock-in.

因此，我們在模型中輸入的內容就是我們仍在預測的內容。如果進入第三季末、第四季時情況發生重大變化，我們將做出調整。我們確實從一些市場中鎖定了機會。這些交易通常在 10 月中旬進行，這對我們來說是鎖定實際意外情況的機會 - 如果您鎖定，您的付款將有折扣。

But we do look at those as they come in. If there's something close to being out of the money, we will probably lock in bonus and take the discounts of throughout certainty. And if we're -- if the money rolling, we'll let that win nine. Fourth quarter tends to be a lower loss ratio quarter for us given most of our loss ratio is weather-driven, March through hurricane season. So I hope that helps.

但我們確實會在它們進來時關注它們。如果我們──如果資金滾滾而來，我們會讓那贏九場。由於我們的大部分損失率是由天氣驅動的，從三月到颶風季節，第四季度對我們來說往往是損失率較低的季度。所以我希望這會有所幫助。

Yeah. That's helpful. (technical difficulty) I'm just curious. Will you convert when your agency box to full corporate agent through an acquisition. (technical difficulty) It does lead to EBITDA or (technical difficulty) better EBITDA margin from wholly-owned corporate agent versus an agency a box or not much difference?

是的。這很有幫助。 （技術難度）我只是好奇。當您的代理盒透過收購轉變為完整的公司代理時，您會嗎？ （技術難度）它確實會導致 EBITDA 或（技術難度）全資公司代理與代理商相比獲得更好的 EBITDA 利潤率還是相差不大？

If I can add some color to that. So when you look at the nine independent branches that we converted in January 2024 and the shift from not being efficient expense to salary wages, you're looking at roughly a two-point benefit to our margins. On the corporate front -- on the branch conversions. So we likely will see if we have more acquisitions with -- that are corporate stores, that you'll have an accretive margin as well.

如果我能為它添加一些顏色的話。因此，當您查看我們在 2024 年 1 月轉換的 9 個獨立分支機構以及從低效支出到工資工資的轉變時，您會發現我們的利潤率大約提高了兩點。在公司方面－在分公司轉換方面。因此，我們可能會看到我們是否有更多的收購——即企業商店，您也會獲得增值的利潤。

Great. Very helpful. Thank you.

偉大的。非常有幫助。謝謝。

Pablo Singzon, JPMorgan.

巴勃羅·辛宗，摩根大通。

Hi, good morning. First question. So expansion outside of Texas and Louisiana is obviously good from a diversification standpoint, but revenues per policy tend to be lower and less cat exposed states because average payments are just lower, right? So with that in mind, how are you planning to manage your expansion, right? Whether through M&A or organic, vis a vis the good margins you are producing on your current footprint?

嗨，早安。第一個問題。因此，從多元化的角度來看，向德克薩斯州和路易斯安那州以外的地區擴張顯然是有利的，但每項保單的收入往往較低，且受貓影響較少的州，因為平均支付額較低，對嗎？考慮到這一點，您計劃如何管理您的擴張，對嗎？無論是透過併購或有機方式，相對於您目前的足跡所產生的良好利潤率？

Yeah. So you're correct. The average premiums and less cat-exposed states do run at a lower average premium. There's an offset to that. Many of these lower cat states are still paying prior levels of commissions. So as we're looking at M&A in new geography, some of those less cat prone states, they have average commissions that are higher than, say, Louisiana or coastal exposed states. So your average commission may get close based on differential and how commissions are paid in the lower cap geographies.

是的。所以你是對的。平均保費和貓接觸較少的州的平均保費確實較低。對此有一個抵消。許多低貓州仍在支付先前水平的佣金。因此，當我們在新的地理區域進行併購時，一些不太容易出現貓的州的平均佣金高於路易斯安那州或沿海暴露州。因此，根據差異以及低市值地區的佣金支付方式，您的平均佣金可能會接近。

So as far as when we look at how our business works, if we have like we have these new startup agencies in Ohio, those folks that are bearing the brick and mortar and the local labor expenses, their revenue passing through our agency and box business model is the same revenue we would have coming through any other state. So the margin coming out the back is diagnostic to what state the revenues being derived in.

因此，就我們的業務運作方式而言，如果我們在俄亥俄州有這些新的初創機構，那些承擔實體和當地勞動力費用的人，他們的收入通過我們的代理和盒子業務模式與我們通過任何其他州獲得的收入相同。因此，後面的利潤率可以診斷出收入的狀況。

I do think that we're looking at it from a corporate-owned location. That's where you have a little more sensitivities to labor costs and brick and mortar cost. And that's where the average premium and mortar potential overall commission for transaction comes into play. But we are seeing a pretty decent consistency of -- there's higher commissions in those lower cat states, offsetting the fact that they're lower average premiums.

我確實認為我們正在從公司擁有的位置來看待它。這就是您對勞動成本和實體成本更加敏感的地方。這就是平均溢價和潛在的交易總佣金發揮作用的地方。但我們看到了相當不錯的一致性——在那些費用較低的州，佣金較高，抵消了平均保費較低的事實。

Okay. And then second question for me, unrelated topic. So I think some of your MTA contracts changed from a percentage of commissions basis to flat fees beginning this year. Can you talk about how that's impacting organic growth. And I'm particularly thinking about 3Q where I think that would be a step down from the first half of this year. Thank you.

好的。然後是我的第二個問題，不相關的話題。因此，我認為從今年開始，你們的一些 MTA 合約從佣金百分比改為固定費用。您能談談這對有機成長有何影響嗎？我特別考慮第三季度，我認為這將比今年上半年下降。謝謝。

So Dover Bay was the only program that had a change in its fee structure that went to a flat fixed rate. And so it also gets adjusted annually upward based on the trailing 12 months and that'll take effect in January of '25. So that actually impact us was really affecting first quarter, second quarter. As we get into the third and fourth quarter, we'll be getting the same level revenue that we received in those higher premium months. So actually, it will show a little bit of an improvement as the third and fourth quarter or lower premium months for that program.

因此，多佛灣是唯一收費結構改變、改為統一固定費率的項目。因此，它還會根據過去 12 個月的情況每年向上調整，並將於 25 年 1 月生效。因此，這實際上對我們的影響確實影響了第一季和第二季。當我們進入第三和第四季時，我們將獲得與保費較高月份相同水準的收入。因此，實際上，隨著該計劃的第三季和第四季或保費較低的月份，它將顯示出一點點改善。

We do have the benefit of knowing exactly what we're going to get paid on that program for this calendar year. And as we end 2024, we'll get the increase to that flat fee for all 2025. And so that year over year comparison becomes a little bit more normal for that particular program. It did see growth this year. So that's going to give us a bump in that revenue stream in 2025, but we'll have consistent revenue from that program in third quarter and fourth quarter. We won't have the volatility of the production drop of -- from the last three quarters.

我們確實有一個好處，就是確切地知道本日曆年我們將透過該計劃獲得多少報酬。當 2024 年結束時，我們將在 2025 年全年增加固定費用。今年確實出現了成長。因此，這將使我們在 2025 年的收入流有所增加，但我們將在第三季和第四季從該計劃中獲得穩定的收入。我們不會出現過去三個季度產量下降的波動。

Thank you.

謝謝。

Scott Kelly, RBC Capital Markets.

史考特凱利，加拿大皇家銀行資本市場部。

Yeah, thanks. Good morning. First question is just you mentioned you added a fair amount of captive agents in the quarter, the 44 number. Any thoughts you can share on on second half of the year or into 2025? How you're thinking about adding additional agents? It sounds like that there's more interest in terms of, correct me if I'm wrong, but the comment. Since you've gone public, there's more interest in potential joiners. And just how are you thinking about that just particularly after you added a fair amount in the second quarter?

是的，謝謝。早安.第一個問題是，您剛剛提到您在本季度添加了相當數量的專屬代理，即 44 個。您對下半年或 2025 年有什麼想法可以分享嗎？您如何考慮新增額外的代理程式？聽起來人們對“如果我錯了請糾正我”方面更感興趣，但是評論。自從您上市以來，潛在的加入者就更感興趣了。尤其是在第二季增加了相當多的金額之後，您對此有何看法？

Yeah. I think that we're continuing to see interest, an expanded interest from the IPO [awareness]. We are getting inbound inquiries from marketing we've had in place for a significant period of time. And now that marketing plus the awareness of the IPO, we actually had a prospect say, I'm calling you because I saw the IPO and then I saw this ad, and this has been in place for a long period of time and one of the insurance trades. And now and I think you guys might be the right fit.

是的。我認為我們將繼續看到人們的興趣，而 IPO [意識] 帶來的興趣不斷擴大。我們收到了我們已經實施很長一段時間的行銷的入站詢問。現在行銷加上對 IPO 的認識，我們實際上有一個潛在客戶說，我打電話給你是因為我看到了 IPO，然後我看到了這個廣告，這已經存在很長一段時間了，其中之一保險行業。現在我認為你們可能是合適的人選。

We also had an M&A broker call us and tell us that the specific client of theirs that they're representing wanted us to be in the queue for their M&A initiative and are selecting us as a preferred buyer proactively. So we do think we're going to get more traction with all the offerings we have based on the awareness and exposure from the IPO.

我們還有一位併購經紀人打電話給我們，告訴我們他們所代表的特定客戶希望我們加入他們的併購計劃的隊列中，並主動選擇我們作為首選買家。因此，我們確實認為，基於 IPO 的知名度和曝光度，我們所擁有的所有產品將會獲得更多吸引力。

And obviously, the 44 we added in the second quarter were not IPO related initiatives. There is disruption in the marketplace across the country where carriers are choosing their personal lines strategy and as captive carriers constrict or eliminate some of their personal lines products that's going to open up more captive agents looking for their next home.

顯然，我們在第二季度添加的 44 項舉措與 IPO 無關。全國範圍內的市場出現了混亂，運營商正在選擇他們的個人線路策略，並且自保運營商限製或消除了他們的一些個人線路產品，這將打開更多的自保代理商尋找下一個家。

And so our objective is to cast a wide net, make sure we have that awareness to be a captive distribution channel so that they know that we have the offerings that can help them relaunch their careers and what we think is a more effective business model.

因此，我們的目標是廣泛撒網，確保我們有成為專屬分銷管道的意識，以便他們知道我們提供的產品可以幫助他們重新啟動他們的職業生涯，以及我們認為更有效的商業模式。

Great. That's helpful detail. I just had one other one, too. Just on the branch conversions, which you did early in your -- I know you kind of describe that as sort of one-time ahead of the IPO and you had given the agent's decision to be able to do that. But, do you expect to see more of those in the coming quarters as there is some that may changed their mind and would like to convert how -- and how are you thinking about the company's willingness to do those over time?

偉大的。這是有用的細節。我也剛剛擁有了另一件。就分支機構轉換而言，您在早期就進行了這種轉換，我知道您將其描述為在 IPO 之前進行的一次性轉換，並且您已向代理人做出了能夠做到這一點的決定。但是，您是否預計在未來幾季會看到更多這樣的情況，因為有些人可能會改變主意並希望如何轉變——您如何看待公司隨著時間的推移願意這樣做的意願？

Yeah. So I think that we won't have any in the near-term quarters about that I'm aware of at the moment. We did have some not joining the club or [more] from those that were at scale that would have made sense to convert, but chose not to that are interested in revisiting that conversation.

是的。因此，據我目前所知，我認為近期幾季我們不會有任何進展。我們確實有一些人沒有加入俱樂部，或者[更多]來自那些規模較大、本來有必要轉變但選擇不加入、有興趣重新審視這一對話的人。

But they're going to have to be larger over $1 billion in revenue locations in order to be viable corporate locations. The ones that are smaller, we're going to continue to look for them to transact and work with an existing branch or a new branch principal coming into their role. But nothing in the near term, but there will be, in my opinion, opportunities for us for the larger ones when they make sense on their timing, not ours to entertain additional branch conversions, which, as Janice mentioned, is accretive to our margin.

但它們的營業收入必須超過 10 億美元，才能成為可行的企業所在地。對於較小的分支機構，我們將繼續尋找他們與現有分支機構或新的分支機構負責人進行交易和合作。但短期內不會有任何事情，但在我看來，當較大的公司在時機上有意義時，我們將有機會接受更多的分支機構轉換，正如珍妮絲提到的，這會增加我們的利潤。

So now we're getting our arms around the nine we converted in January. And as we continue to have it through their first year as a corporate location, we will be open to additional branch conversions in the years to come.

現在我們已經開始著手於一月改裝的九輛車了。隨著我們將其作為公司所在地的第一年繼續保持下去，我們將在未來幾年內接受更多分支機構的改造。

Yeah. Thanks for the answers.

是的。感謝您的回答。

Welcome, Scott.

歡迎，斯科特。

(Operator Instructions)

（操作員說明）

Michael Zaremski, BMO.

邁克爾·扎雷姆斯基 (Michael Zaremski)，BMO。

Great, thanks. Just a quick follow-up on the 44 new hires, I want to make sure -- it seems like a really strong number. So if I'm looking at the S-1 back in 2022 year end, there were about 391 total branches, corporate plus 99, then that grew in '23 by about 20, year-on-year. I just want to make sure that the 44 that you added, that the -- if we annualize that growth rate, that's about a 40% plus annualized growth rate in number of kind of total branches. Is that the right way to think about it? Is that kind of a sustainable near term level? Or is it just kind of a much higher level just near recently because of the IPO kind of price? Thanks.

太好了，謝謝。我想確認一下，這只是對 44 名新員工的快速跟進——這似乎是一個非常強勁的數字。因此，如果我回顧一下 2022 年底的 S-1，總共約有 391 個分支機構，其中公司分支機構還有 99 個，那麼 23 年的分支機構數量同比增長了約 20 個。我只是想確保您添加的 44 個，如果我們按年計算該成長率，那麼分支機構總數的年化成長率約為 40% 以上。這是正確的思考方式嗎？這是一個可持續的近期水平嗎？或者只是因為 IPO 的價格，最近才出現了更高的水平？謝謝。

Sure. Thanks, Mike. So you know, the 44 is yes, it's a significant growth over the prior near-term years of additional branches. It's really tied to a captive carrier choosing to nonrenew their personal property portfolios, waiving these agents with no product or a lesser than good opportunity. And then that captive carrier allowing the agents to no longer be captive. So it's an opportunistic timing for us to step into that void, utilize the platform we have to put them in a better position to retain their clientele and to regrow their business with a much broader personal lines focused agency and box business model.

當然。謝謝，麥克。所以你知道，44 家是肯定的，與前幾年新增分公司相比，這是一個顯著的成長。這實際上與自保承運商選擇不更新其個人財產投資組合、放棄這些沒有產品或機會不佳的代理商有關。然後那個俘虜載體讓特務不再被俘虜。因此，對我們來說，這是一個機會主義的時機，可以利用這個平台，讓他們處於更好的位置，以留住他們的客戶，並透過更廣泛的以個人業務為中心的代理和盒子業務模式來重新發展他們的業務。

There are a lot of smaller national carrier that are exiting personal lines and that's leaving a void in the marketplace. And so as we get through 2024, is that net near-term disruption to some of those captives that are in that carrier dislocation mode, we'll see a little bit higher than average recruiting year in 2024, and that will be IPO related. That will be opportunistic timing based on a third party's decision to non-renew their whole Personal lines portfolio, at least the property portion of the first lines portfolio.

有許多規模較小的國家航空公司正在退出個人航線，這在市場上留下了空白。因此，當我們進入2024 年時，對於處於運營商錯位模式中的一些自保公司來說，近期的淨幹擾是，我們將看到2024 年的招聘人數略高於平均水平，這將與IPO 相關。這將是基於第三方決定不更新其整個個人線路投資組合（至少是一線投資組合的財產部分）的機會主義時機。

We are still seeing inbound agents that are joining us that are not related to that activity. And as I mentioned, we have the increasing inbound inquiries post-IPO that would then be attributable to the IPO initiatives. So we're going to get it from both. And then once we get through '24's near term, opportunistic onboardings, we'll see what the new cadence looks like on a post-IPO basis and kind of share that towards the end of the calendar year.

我們仍然看到加入我們的入站代理與該活動無關。正如我所提到的，我們在 IPO 後收到越來越多的入境詢問，這將歸因於 IPO 舉措。所以我們將從兩者中得到它。然後，一旦我們完成了 24 世紀的近期機會主義入職培訓，我們將看到在 IPO 後的新節奏是什麼樣子，並在日曆年年底分享這一點。

Okay. That's great color. And I guess just staying on the same topic of competitors there. I'm not going to name any names, but there's a large captive, may be the second largest in the United States that has been slowly moving to kind of a lower commission structure and forcing some agencies to move all their customer service to the back the back office, which is the kind of the opposite business model that you all run. You allow your branches to be able to do all the servicing themselves.

好的。那顏色真棒。我想只是停留在與競爭對手相同的話題上。我不會透露任何名字，但有一個大型自保公司，可能是美國第二大公司，它一直在慢慢轉向較低的佣金結構，並迫使一些機構將所有客戶服務移至後面後台辦公室，這是一種與你們所經營的相反的商業模式。您允許您的分公司能夠自行完成所有服務。

I'm just curious, are you hearing or seeing any agents come to you? Because there's one large carrier that's maybe pushing them to this new business model or that's not something that you're seeing as a tailwind other than I know you just gave us some color on a complete not renew from a carrier?

我只是好奇，你是否聽到或看到任何特工來找你？因為有一家大型營運商可能正在推動他們採用這種新的商業模式，或者您不認為這是一種順風，除了我知道您只是給了我們一些關於完全不從運營商續訂的信息？

Sure. So yes, every time a captive carrier changes the terms and conditions of operating their captive agency, those agents reevaluate whether or not that's where they want to spend a meaningful number of years of their career at that organization. And so we do get a lot of inbound inquiries every time those initiatives are rolled out, whether that be the lowering of commissions or the restructuring of commissions to make it harder to earn the same commission level they had in the prior year and or the sourcing of the sales of specific products that may or may not be in the best interest of the client.

當然。所以，是的，每次專屬承運人改變營運其專屬機構的條款和條件時，這些代理人都會重新評估他們是否想在該​​組織度過有意義的職業生涯。因此，每次推出這些措施時，我們確實都會收到大量入站詢問，無論是降低佣金還是重組佣金，以使其更難獲得與上一年相同的佣金水平和/或採購特定產品的銷售可能符合也可能不符合客戶的最佳利益。

All those things trigger agent dissatisfaction with their current relationships. And so we are getting inbounds from a number of different carriers, different captive companies because they all have their own different deals. When you think about the number of captive carriers that are reevaluating their property initiatives, they could still have the same commission level. They could still have the same relationships that are good.

所有這些都會引發代理人對他們當前關係的不滿。因此，我們收到了許多不同營運商、不同自營公司的入境訊息，因為他們都有自己不同的交易。當你考慮到有多少自保航空公司正在重新評估其財產計劃時，他們可能仍具有相同的佣金水平。他們仍然可以擁有同樣良好的關係。

But as the market says, we're no longer going to be adding additional property to our portfolio that really limits that captive agents' ability to grow and sustain customers and be long-term viable. So commission changes, product accessibility, all those are issues that drive captive agents into the independent space.

但正如市場所說，我們將不再在我們的投資組合中添加額外的財產，這確實限制了專屬代理商發展和維持客戶以及長期生存的能力。因此，佣金變化、產品可近性，所有這些都是促使專屬代理商進入獨立領域的問題。

Thank you.

謝謝。

I show no further questions at this time. I would now like to turn the call back over to Gordy Bunch for closing remarks.

我目前沒有提出任何進一步的問題。我現在想將電話轉回給戈迪·邦奇（Gordy Bunch）進行總結發言。

Well, I definitely appreciate everybody's thoughtful questions. We are excited to have been able to file or report our first public company quarter. Janice, would you like to say anything while we are here?

嗯，我非常感謝大家提出的深思熟慮的問題。我們很高興能夠提交或報告我們的第一個上市公司季度。珍妮絲，我們在這裡的時候你想說什麼嗎？

Yeah. it's been a long time, and we are excited about the next quarter coming up and the future. So we have some really positive views and ideas and expecting to [hear them in the quarter].

是的。已經過去很長一段時間了，我們對即將到來的下一個季度和未來感到興奮。因此，我們有一些非常積極的觀點和想法，並期待[在本季度聽到它們]。

Yeah. So there's thank you to everyone who attended the call. Thank you for all the questions. We look forward to our next earnings call. And again, appreciate (technical difficulty) with us public. It's a great (technical difficulty) and we are excited to throw our speeches.

是的。感謝所有參加電話會議的人。謝謝你提出的所有問題。我們期待下一次財報電話會議。再次，與我們公眾一起欣賞（技術難度）。這是一個很大的（技術難度），我們很高興能發表演講。

This does conclude today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。