Financial Data and Key Metrics Changes - The company reported net income from continuing operations of $9 million, or $0.18 per diluted share, with adjusted net operating income of $9.1 million, or $0.19 per share for Q1 2025 [17] - The annualized operating return on common tangible equity was 11.5%, and tangible common book value per share increased to $7.11, reflecting a growth of 6.6% [10][17] - The first quarter combined ratio was 99.5%, driven by a loss ratio of 66.8%, which is largely unchanged from 66.4% a year ago [18] Business Line Data and Key Metrics Changes - The E and S segment produced a combined ratio of 91.5% for Q1, with $11.7 million of underwriting income, indicating a solid start to the year [13] - New and renewal submissions in the E and S segment grew by 6%, establishing a new quarterly record of over 91,000 submissions [10] - The Specialty Admitted segment saw gross written premiums decline by 21% compared to the prior year quarter, primarily due to a reduction in primary commercial auto exposure [13] Market Data and Key Metrics Changes - The company experienced a 26% growth in submissions for environmental insurance, 18% for manufacturers, and 10% for small business, driving strong premium growth [10] - Renewal rates for the E and S segment increased by 7.8%, with several divisions experiencing double-digit increases [11] - The average premium size declined by 8.4% per policy compared to the prior year quarter, with specific divisions like life sciences seeing a 23% decline [11][12] Company Strategy and Development Direction - The company is focused on long-term stability and profitability, particularly in the E and S business, while actively managing risks and expenses [5][16] - There is an emphasis on profitability and efficiency, with initiatives underway to grow the E and S book profitably [32] - The company is transitioning its holding company from Bermuda to the United States, which is expected to reduce the effective tax rate and result in significant expense savings [20][21] Management's Comments on Operating Environment and Future Outlook - Management noted that while global headlines are focused on market volatility and economic uncertainty, the company remains well-positioned due to its focus on U.S.-based SME insurance [6] - The company is monitoring new administration policy changes and their potential impact on business [6] - Management expressed confidence in the stability of recently underwritten quarters and the conservative approach taken in underwriting [18] Other Important Information - The company concluded a post-close purchase price adjustment process for its former Bermuda reinsurance segment, resulting in a minor downward adjustment of approximately $500,000 [8] - The impending retirement of the E and S segment leader was announced, with Todd Sutherland set to succeed him [9] Q&A Session Summary Question: March premium growth and focus on smaller accounts - Management confirmed that they will continue to manage the portfolio actively and aim for profitable growth in the E and S book, utilizing technology for efficiency [32] Question: Visibility around E and S reinsurance program pricing - Management indicated that they will provide updates on the reinsurance program in the next quarter [34] Question: Update on claims in construction in Florida - Management noted elevated claim activity in Florida but observed a decrease in severity over the last twelve months [38][39] Question: Moving pieces in Specialty Admitted premiums - Management explained the decline in premiums was due to the runoff from individual risk workers' comp business and the focus on reducing exposure in the fronting market [47] Question: Economic proposition of the Specialty Admitted business - Management stated that the fronting business is deal-driven and will continue to evaluate its scale and profitability [52][53]