Financial Data and Key Metrics Changes - The company reported an annualized adjusted net operating return on tangible common equity of 14%, consistent with its mid-teens return target [5] - Adjusted net operating income for the second quarter was $0.23 per share, with net income from continuing operations available to common shareholders at $3.2 million or $0.07 per diluted share [16] - The combined ratio for the group was 98.6%, consisting of a 68.1% loss ratio and a 30.5% expense ratio, with the expense ratio improving over two points sequentially [17][18] Business Line Data and Key Metrics Changes - The E and S segment grew 3% year-over-year, with gross written premium per casualty E and S increasing by 4% compared to the prior year quarter [8][9] - Allied Health saw a 25% growth, while energy grew by 12% during the quarter [9] - Renewal rates remained healthy across most divisions, with overall casualty rates up 14% in the quarter, including over 20% rate change in the excess casualty portfolio [9] Market Data and Key Metrics Changes - Submission volume increased by 6% during the quarter, reflecting the strength of the E and S market and broker relationships [9] - The company surpassed $300 million in E and S gross written premiums in a single quarter for the first time, marking a significant milestone [9] Company Strategy and Development Direction - The company is focused on increasing profitability and delivering shareholder value as a leading specialty insurer in the E and S space [5] - A strategic shift towards smaller accounts has been emphasized, with a deliberate reduction in exposure to larger, more commoditized sectors [7][10] - The company is planning a redomicile to the United States, expected to bring operational efficiencies and significant cost savings [13][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's turnaround, citing improved performance monitoring and underwriting governance processes [6][10] - The company anticipates continued measured growth in the second half of the year, supported by strong operational and strategic progress [52] Other Important Information - The company reported a significant reduction in segment expenses, declining over 20% compared to the same period last year [15] - The effective tax rate is expected to decrease closer to the U.S. statutory rate following the redomicile, with anticipated one-time and ongoing tax benefits [23][24] Q&A Session Summary Question: What end markets are being targeted for excess casualty growth? - The company is focusing on manufacturers, premises risks, and hospitality risks, moving down market and away from larger accounts [26][28] Question: How is policy or premium retention trending? - Policy count retention remains stable between 60-65%, while premium retention has dropped significantly due to the shift towards smaller accounts [30][31] Question: Is there more room to reduce the expense ratio in 2026? - There may be additional opportunities to reduce the expense ratio beyond the expected 31% for this year [37][38] Question: How will the one-time benefit from redomiciling be realized? - The benefit will come through a lower effective tax rate, increasing EPS and earnings once the redomicile is effective [39][41] Question: Any changes to terms and conditions from the quota share? - No significant changes were made to terms, with a slight reduction in quota share reflecting confidence in business written since 2023 [45]