Trean Insurance Group, Inc.

Greetings, and welcome to the Trayon Insurance Group's Inc. Third Quarter 2022 Earnings Call. At this time, all participants are in listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star then zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Garrett Edson. Thank you, Sue. You may begin.

Thank you, Operator. Good afternoon, and welcome to Trayon Insurance Group's third quarter 2022 earnings call. This afternoon, the company released its financial results for the third quarter and September 30, 2022. The press release is available in the investor relations section of the company's website at www.trayon.com. I would like to remind everyone that certain statements made in the course of this call are not based on historical information and may constitute forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. I refer you to the company's filings made with the SEC for a more detailed discussion of the risks and factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today. The company undertakes no duty to update any forward-looking statements that may be made during the course of this call. Additionally, certain non-GAAP financial measures will be discussed on this conference call. Our presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. Reconciliations of these non-GAAP financial measures to the most comparable measures prepared in accordance with GAAP can be accessed through our filings with the SEC at www.sec.gov. Joining me on the call today are Julie Barron, the company's President and Chief Executive Officer, and Nick Passallo, the company's Chief Financial Officer. With that, I am now going to turn the call over to Julie.

Thank you, Garrett, and welcome to our third quarter 2022 earnings call. We appreciate your participation on our call and for your continued support and confidence in Treon. We are very pleased with our performance this quarter as we delivered on top line and bottom line results ahead of our expectations and generated double-digit adjusted return on tangible equity. For the quarter, we reported adjusted net income of $5.5 million, or $0.11 per diluted share, and an 11.2% adjusted return on tangible equity. With our year-to-date loss ratio remaining relatively consistent through the quarter, our focus on underwriting discipline and profitability is keeping us in solid shape despite the challenging macro environment. Along with our solid performance, we made strides in the quarter to further strengthen Treon's ability to drive sustainable and profitable growth over the long term. As we noted on our last call, we completed a new exclusive distribution partnership with B Capital Partners Americas. marking our entrance into the rapidly growing non-admitted insurance market, specifically excess and surplus product offerings. We spent the last couple of months working with BEAT to bring the program online and are excited for its full year contribution in 2023. We believe the E&S offering and partnership will become a material contributor to our performance in the new year and unlock significant long-term profit potential for the company. In addition to partnering with BEAT, we strengthened our balance sheet during the quarter with the issuance of a 50 million, 6.75% surplus note due 2042. This issuance provides us with additional surplus to help ensure that we continue to successfully execute on our longer-term growth strategy. We were also pleased, subsequent to the end of the quarter, to have AMBEST reaffirm our A rating. As we wrap up the year, we will continue to focus on the fundamentals that have brought us success, our disciplined underwriting and program partner selection, efficient claims management, and prudent stewardship of our balance sheet. With an increasingly challenging macro and competitive environment expected for the foreseeable future, we will look to responsibly and profitably grow our business in the new year and successfully drive sustainable adjusted net income growth over the longer term. With that, I'll now turn the call over to Nick, who will discuss our financial results.