Financial Data and Key Metrics Changes - The company reported an operating income of $44 million and a net income of $45.9 million, translating to $1.05 and $1.10 per diluted share respectively [7][12] - Gross written premiums increased by 52% year-over-year, with net written premiums growing by 64% [7][9] - The combined ratio improved to 89.2%, with a non-catastrophe loss ratio of 60.2% [9][10] - The annualized return on equity reached 19.7%, and earnings grew by over 40% [4][12] Business Line Data and Key Metrics Changes - Five out of nine divisions experienced growth exceeding 25%, with the agriculture unit being the largest contributor [5][16] - The agriculture unit saw significant growth due to demand for reinsurance capacity in dairy and livestock revenue protection [16] - Accident & Health (A&H) grew by 45% year-to-date, focusing on the small employer market and medical cost management [16] - Surety resumed a stronger growth trajectory, increasing by 26% in the last quarter [21][17] Market Data and Key Metrics Changes - The P&C market is showing signs of increased competition, prompting the company to be selective in its underwriting [5][14] - Renewal pricing increased to mid-single digits, with submission growth in the mid-teens [19][65] - The company noted specific pockets of increased auto liability severity inflation, particularly in the construction unit [9][63] Company Strategy and Development Direction - The company continues to execute its Rule Earnings Strategy, focusing on a diversified portfolio that is less exposed to P&C cycles [4][12] - The upcoming Apollo acquisition is expected to close in early 2026, which will enhance specialty capabilities and underwriting talent [12][19] - The company is leveraging technology, including AI-driven analytics, to improve underwriting processes and efficiency [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the competitive P&C market, highlighting the importance of disciplined underwriting [5][14] - The company anticipates uneven quarterly growth due to concentrated renewal cycles in certain divisions [7][9] - Management remains optimistic about the growth outlook, emphasizing the capital-efficient nature of the organization [33][34] Other Important Information - The company completed the monetization of its equity portfolio, realizing gains of $16.3 million, and reinvested proceeds into fixed income securities [11][12] - The debt-to-capital ratio was reported at under 11%, with expectations to remain modest post-acquisition [11][68] Q&A Session Summary Question: Insights on top-line results excluding agriculture - Management noted strong growth in surety and A&H, emphasizing smart terms and conditions in traditional P&C markets [21][23] Question: 2026 guidance on Apollo - Management refrained from providing specifics due to regulatory approval pending but expressed confidence in Apollo's specialty focus [26][27] Question: Capital sources for continued growth - Management indicated that organic capital growth would support growth ambitions, with no immediate capital constraints [32][34] Question: Growth in specialty programs - Management highlighted growth in warranty indemnity and marine programs, with expectations for continued growth in the coming quarters [35][36] Question: Volatility in growth rates - Management explained that certain lines have specific renewal periods, leading to variability in quarterly growth [40][41] Question: Earnings patterns in AG premium - Management confirmed that AG premiums would be earned evenly over the next 12 months [45][46] Question: Retention levels in E&S business - Management clarified that retention levels are influenced by the mix of business, with specific drivers affecting gross to net ratios [53][55] Question: Loss inflation in construction - Management discussed the emergence of severity inflation in construction, paralleling trends seen in auto liability [61][63] Question: Reinsurance market competitiveness - Management acknowledged the favorable reinsurance market for cedents but did not expect significant year-over-year improvements [69][70] Question: Correlation between P&C pricing cycle and captive formation - Management noted that captive growth remains robust even in soft market conditions, providing stability [72][73]