Financial Data and Key Metrics Changes - The company's third-quarter net income increased to $39.2 million, nearly doubling from the prior year, marking the highest net income in a quarter in at least 20 years [7] - The combined ratio for the quarter was 91.9%, the best third-quarter underwriting result in nearly 20 years [7] - Return on equity for the first nine months of 2025 was 12.7%, the best year-to-date financial performance in nearly two decades [10] - Earnings per diluted share for the third quarter was $1.49, with non-GAAP adjusted operating income of $1.50 per diluted share [26] Business Line Data and Key Metrics Changes - The underlying loss ratio improved by 1.9 percentage points to 56% in the third quarter and by 2 percentage points to 56.7% year-to-date compared to the same periods last year [12] - Net written premium grew by 7% in the quarter, led by a 22% increase in the core commercial business [16] - Catastrophe loss ratio was 1.3%, significantly below expectations and historical averages [14] - Retention rate remained stable at 86% in the third quarter, consistent with the second quarter [17] Market Data and Key Metrics Changes - Specialty excess and surplus lines premiums were down slightly compared to the prior year, reflecting competitive pressure in the E&S market [21] - The company remains selective in its underwriting, choosing to non-renew a small number of treaties that no longer met profitability standards [23] Company Strategy and Development Direction - The company aims to deliver superior financial and operational performance while increasing relevance with distribution partners to access a wider range of business opportunities [33] - The strategic focus includes consistent profitability, diversifying growth, attracting talent, innovation, and expense management [34] - The company is evolving from a generalist to a specialist, enhancing underwriting expertise and aligning risk control capabilities [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the evolving market dynamics, supported by a portfolio that is well-positioned for consistent, profitable growth [38] - The company is prepared to adapt its strategy as it transitions into a moderating or softening market [32] Other Important Information - The company declared and paid a $0.16 per share cash dividend to shareholders [27] - The high-quality fixed income portfolio generated 17% more income than in the prior year, benefiting from extensive portfolio repositioning [24] Q&A Session Summary Question: Thoughts on adjusting strategy in a soft market - Management emphasized the importance of delivering superior financial performance and increasing relevance with distribution partners to access more business opportunities [32][36] Question: Changes in capital management philosophy - Management confirmed no changes in capital management approach, focusing on maintaining the right amount of capital for growth and continuing the dividend philosophy [40]