Assurant (AIZ) 2 Aug 232023 Q2 Earnings call transcript

Welcome to Assurant's Second Quarter 2023 Conference Call and Webcast. [Operator Instructions].

It is now my pleasure to turn the floor over to Suzanne Shepherd, Senior Vice President of Investor Relations and Sustainability.

You may begin.

Thank you, operator, and good morning, everyone. discussing quarter to you results forward today. look our XXXX second with We

Assurant's Keith Chief call and me conference Joining for are Officer; Richard Chief and Demmings, Dziadzio, Officer. our Financial Executive President our

results financial and market call the session. with start a XXXX. a announcing quarter we Yesterday, Richard available into for and on Q&A after second corresponding closed, the release today's Keith before are news moving remarks issued release from our supplement The We'll of assurant.com.

today forward-looking. made statements the of Some are

are factors statements historical to and cause Forward-looking contemplated upon based performance risks, results those current our to subject by uncertainties expectations these differ actual that and materially from and statements. other may

as these Additional yesterday's be reports. release in factors in well found our can information SEC and regarding earnings as financial supplement

non-GAAP we which company's performance. call, will measures, are in our to refer evaluating financial important today's the believe we During

release the reconciliation on refer to For and measures more the news a financial GAAP details most X, please comparable and these supplement. of measures, yesterday's

I call will over now to Keith. turn the

Suzanne, good Thanks, everyone. morning, and

quarter were momentum the primarily growth X% excluding claims. of EBITDA, higher ahead expectations Our development year-over-year our by results driven more basis. and well and Housing, loss top adjusted on were growing year-to-date Results a prior a favorable strong total period with on XX% or in of Global from largely continued cats, line in from second experience

our compelling and is to our offerings Our business the client testament a model, focus of performance excellence. on resilience steadfast operational global

lines including dramatically Housing taken product where transform strong excluding reducing These actions catastrophes. segments. on to have to digital win, improve Looking performance exposure year-to-date, improvement to respond a time. at driving international quickly and business, results continuous and experience ability better to Housing efficiencies. our This aggressively adjusted noncore EBITDA catastrophe while our underscores market we Global and driving ever-evolving solutions our to dynamics deploying greater XX% operational over increased right customer business our reflect areas focusing

During top average Homeowners XX% line of new existing from increased higher increases XXXX, from in counts reflects business in clients. values severities portfolios Policy lender-placed. higher half state-approved insured for increased rate of digits loan year performance expanded This and this claim account factors inflationary the first and our year-over-year. double to

While been we to first contributor far this so policy of growth level expect has the from a year, half year. the off

by property business, years. shown our In solution, our management XX%. strong to distribution rollout CoverXXX of the made we've many increasing our partners renters investments of year-to-date, consistently has one customers driven that Renters PMC added has policy last long-term the channel company This in has over value several growth ongoing been the and our

which within the helped lower to offset returned losses, normalized growth along strong levels. Our with from partners, have channel higher partially profit non-cat affinity more pools our to contributions has diversify PMC to

we're Housing's summary, into with of growth and Global half earnings very In XXXX. to continue performance the pleased year-to-date year-over-year expect strong second

increased $XX Living Turning focus our last from delivery we as evolving to have our on platforms X% product Lifestyle. to the Living, the we and the months and million steady Underlying of invest year, service results. our customer Connected technology to last improve of half continue improved deepen experience. Within innovation in Connected from segment or earnings second half first demonstrated of the second X for were solid year. results improvement Lifestyle Global year over capabilities

to capabilities a from drive Our interest level on innovation of mobile and prospective and has global continued significant focus trade-in existing partners.

operations. throughout to our to mitigate we realize global macroeconomic ongoing headwinds implemented As we've efficiencies, actions continue

we've Within the and large-scale in progress service executing In had focused extended Europe, ultimately partners a impact, protection positive contracts, made remain these administration have growing top us stabilize helping to earnings allowing with to actions programs. significant and line. our on

in the loss improvement of quarters several increases ratio several seen to rate due elevated severity, second after with addition, quarter In claim an clients. we've

We've across actions Auto to our industry, costs repair our inflation. increase from have continued In the to business, improve decisive taken Global consistent performance.

the partnering For risk. savings materialize. example, It's several quarters to take we see with loss difficult clients although timing but business on improvements we've our expect implemented inflection and also key where earnings experience to claims point, hold we're an cost to to rate improvement predict increases may identify the prospective continued through improve new as several we with for of clients, programs earned to

adjusted the we down This Lifestyle's line now half headwinds in to just we in Global work the Auto lower XXXX. due Japan. for mainly of will Global international discussed anticipate Overall, is while new for with our Global for create and from vectors contributions be Lifestyle modestly we Lifestyle, And first earnings to year. primarily EBITDA growth were expectations of full the

Reflecting ability a continue drive market to growing positions Global and and to performance. on demonstrated Housing generate in with including competitive housing strong flow, advantages to and returns through clear highlighting markets, advantages, of innovate resiliency of Assurant. business specialized and challenges track decisive scale leadership Global of of and half Combined, demonstrated have results record global our solutions actions overcome the should strength our taking attractive and differentiate the and attractiveness leaders lifestyle market cash strong of first Lifestyle lines across XXXX, with model business, the compelling and with alignment

moment and outlook reaffirms support ongoing to through Assurant. our diverse for help enterprise XXXX published company focus I to culture workforce. suppliers. to around climate. our report products report report, our build employee and our to June, strategic listening In discuss talent, sustainable to together efforts, priorities moving products reaffirming customers, progress ESG highlights employees key of climate areas we've sustainability want Prior our in a differentiator more XXXX clients, sustainability talent, The take global our we progress long-term to with XXXX our and feedback and and our leveraging a and the reinforcing future our a to made The results,

coverage note, XXXX supplier repurposed sustainability devices a we to X years and for business target increased gender as expanded commitment of ahead globally. competitive mobile global our protection we advantage electric our value. our short delivers and view vehicle XX products we to continue schedule. We diversity million achieved that diversity We Of overall; long-term

let's outlook Now capital. to and turn our enterprise

to results for previous each EBITDA growth, high adjusted increase expectations our which catastrophes, we adjusted and to anticipated expenses. the tax of over is EBITDA digits, growth, trail EPS expect expectation of excluding mainly our Given cats. approximate increases single-digit original single an from now outpacing Adjusted EBITDA year, adjusted performance expected half EBITDA represents first for growth. higher-than-expected excluding increase now our improvement and now remainder is to growth. is growth grow due to our the This to low EPS reportable growth The depreciation the an

the $XXX dividends holding segment half liquidity, From a upstreamed a we quarter million year-to-date, than first of perspective, company end significantly EBITDA, of including adjusted the at nearly quarter million million $XXX $XXX higher the of ended and level capital with cats. segment of quarter. during We the

share repurchases repurchasing resumed common additional we of as second the million stock an July. well expected, $XX quarter, $XX as during throughout As million

For fourth we of flexibility. weighted capital third season, our with would is the mind buybacks year, keeping will to the quarter, and level accelerate gradually our expect hurricane quarter remainder in toward the to majority we look of preserve the

we're growth. Housing to Assurant our and a expect and execute the In underlying it's the exceed be we strong year, enhanced of what half year. and to positioned the don't supports both full consumers, Lifestyle, of continue well million. to For currently first through activity XXXX buyback customer critical and XXXX, for for been will their and it differentiates for end us $XXX long-term experience innovation is clients which Overall,

turn and to Richard? I'll detail. the our outlook Richard to now call review second in quarter over XXXX greater results

Thank Keith, you, good everyone. and morning,

million, $XX adjusted of catastrophes, earnings reportable million or totaled For for excluding the share, catastrophes, $XXX quarter, XXXX, totaled the per up And XX% EBITDA, second XX% quarter up $X.XX excluding reportable adjusted year-over-year. year-over-year.

EBITDA segment our in for $XXX year-over-year. This million Lifestyle an results. quarter, of adjusted Global with start decline segment second XX% the reported Let's

million, million, with impacts If prior impacting parts on However, This Global line gain, results claim Global gain primarily a exclude was Auto inflationary in increased expectations. prior X% labor results venture $XX and or estate severities. as declined we in by real period $XX mainly EBITDA lower average of our Automotive. adjusted driven this only period included continued decrease joint

increased ancillary levels post-COVID incurred partially across revert and offset higher by these income to distribution their more yields The U.S. growth as cost also following normalized costs products investment decline higher channels. was We from claims earnings on lows. the in Auto

exchange, In real of in earnings were expected. Europe, soft In Japan gain terms flat. were down excluding Mobile, of foreign unfavorable the from prior Connected roughly $X Living, and period estate as results earnings and million

continues previous XXXX continue declines to beginning XXXX. of to and materialize while lower have earnings As headwinds the we results. impacted as expense not X-year protection off. actions our benefiting the a product Japan, in taken from XXXX, until in international In part And latter volumes of reminder, subscriber year-over-year in are experience we Europe, second run the half of did

results U.S. due offset and was mobile in from and and by growth results. change. lower year-over-year programs previously mobile of clients by structure as carrier the promotions earnings impacted fee lower North volumes carrier device operator timing American flat income lower were cable were protection contract trade-in to from disclosed Trading the

costs. offset from prices Extended began contract client However, several benefiting the the on U.S. decline. increased the devices used improved, performance higher of that implemented higher partially increases impact earnings as to claims offset service rate clients

earned earned fees other and prior $XX up contracts. Global million income This driven reflecting Lifestyle increased vehicle of Automotive, net premium service Living by X%. net by growth income. and to or sales primarily was Turning other was X%. Connected fees premiums period

an no contract includes profitability. from approximate impact had changes, this previously $XX mobile However, on which disclosed negative million program impact the

Excluding income Living by premiums, changes, earned grew X%. fees these and Connected other net contract

growth subscribers contracts. client from higher from and benefited service runoff North quarter in The mobile extended America, contributions in excluding

for the to year EBITDA modestly ancillary down expect normalization for Lifestyle. select down from be we For for and loss full continued impacts Global the year we experience products is anticipate XXXX, remain experience quarters to unfavorable of loss the mentioned. to Global expected full as now be several previously adjusted for Auto

on as profitability these specific and increases investment As Keith cost to these time. help impacts. changes actions over described, which rate expected offset impacts, why mitigate income to Higher contract expect and increase taken repair continue client we've reduction an is to business, has in to we new partially structures is such

Living to full the Connected U.S. our expect business do we grow Living, year. for modestly Connected In

a trade-in improve items third include in quarter. As seasonality. loss lower fourth quarter volumes the both higher and reminder, results These typically historically

an our In included quarter focused growth, $XX results while are expected. And we has been Europe materialize Japan on third in line stabilized, million have year addition, top client to than benefit which onetime last slower Living. and Connected

in on investing Finally, momentum opportunities, will we clients. expenses we have growth also to strong while continue focus with

expected is in Lifestyle premiums, terms of earned income partially ongoing is exchange by for fees Automotive the year, grow offset net as foreign other to growth In and full headwinds. Global

to in now was from Florida. Moving in EBITDA catastrophes windstorms $XX U.S. and included reportable million, the Southeast Global $XXX in flooding Housing. which Adjusted million severe

Excluding more homeowners. within line reportable doubled catastrophes, adjusted $XXX non-cat favorable $XX EBITDA were million million experience up growth from and both loss top to than

million growth net premium Favorable comprised of million the from approximately period million in more half reduction insured policies well strengthening a force. for accounted line 'XX. as in second the came is plus $XX to of development in reserves came $XX in earnings. a Top experience lender-placed $XX together of prior current as quarter reserve year-over-year quarter in and and rates average reserve non-GAAP reduction higher related loss These from values a in increase the

prior Excluding Higher contributed development, investment experience frequency loss income increase earnings modestly severity. in to and due also the increased growth. to non-cat period

including international Turning cost program. total this XXXX We with to June. completed expected program This level We footprint, our in market and increasing reinsurance reinsurance increasing modestly reinsurance relatively well our our fared small actions over to the and taken, strategic our less XXXX. increase coverage. previously is than retention year's adjusting due in of catastrophe our only exiting

event As to and million the for $XXX retention its events. reduces and to second $XXX of level anticipated, million our increased level previous third $XX retention first million from

X-in-XXX-year, a minimize probable from increased also loss our to our further extreme catastrophes. total maximum program to We coverage risk

and due benefit business largely Renters increased of $X to Earnings a Other. our million. NFIP Moving within flood to

Excluding item, results line this were in XXXX. with

expect line by homeowners, we from excluding EBITDA, year to cats, Global top in significantly adjusted the due to performance For reportable grow Housing expansion lender-placed. driven strong XXXX, full

contributed items to results. the the fourth ongoing Regarding continued last be in abatement difficult another lower reinsurance losses of NFIP continued predict. catastrophe increase the expect gradual should revenue million reserve offset of we X momentum which year, can second seasonal additional from a of development, in in and modest half costs momentum This first inflation, benefit absence half $XX a particularly the both these quarter Together, our and favorable to strength.

Corporate. Moving to

was $XX adjusted The income. second up investment lower EBITDA $X million quarter loss million, from

adjusted million. be the For both the portfolio year corporate that the I short- continues XXXX, loss investment and to well also rates full perform returns. improving would interest longer-term we to EBITDA expect mention approximately with $XXX higher

Holding Turning segments Company quarter, totaled to the In We with quarter our million. second operating dividends from Liquidity. $XXX ended $XXX million. the

used included related dividends expenses, to within X quarter to common and cash of Global outflows interest $XX and addition corporate for $XX of share repurchases, million In $XX main second acquisitions previous Auto. million items: cash stock million

current flow including flows, performance requirements. the catastrophes. the assume generate the growth full reportable the This rating environment to agency we For continue are our portfolio forecast. to continuation adjusted with Cash businesses a EBITDA, XX% meaningful cash to economic of consistent and subject year, segment expect is investment of regulatory and businesses, our and expectations approximating of previous

In which well financial the objectives. and with overall to closing, to the full achieve we we're strength increased positioned our believe first our quite businesses continues half and are pleased of performance, year our demonstrate diversity

operator, please open questions. for And with call that, the

Instructions]. [Operator

coming from Schmitt line Our Blair. William Jeff first of question from is the

But down. Housing $XX housing I which relative When charge, back just to I be Global levels it inflation loss here. way development of cost ratio historical turning was think really to out, material seems is especially, was the considering to mentioned and move at sort XX%, with you'd at million. the corner the labor still that, a that favorable underlying that think, looking we and high

are you of posture conservative Or So there? a sort just seeing? are you taking what

Yes.

the team the and at it's through of look adjust that's products place, focus streamline core that the obviously your So We to a business of the We it. and progress lot of the showing maybe put in appropriate to Obviously, talked way comments. half lot to rate made. in actions a a pleased point, couple certainly, quarter. the the exactly And really it adjustments of in last has first about with year. million $XX on we the the year,

$X results, million at FEMA underlying quarter. We $XXX overall we bonus incredibly adjust also the for the as our still look in million strong,

And your then to accident are quarter loss XX%. current ratios point,

that to on factor the work see the we of a little the being just XX% that's offset back last fully think increased I inflationary under pressure levels not largely year. but And by year. saw a that doing rate we we're last

Housing, loss So about low as not we think the unusually strong fundamental of a in it's ratios. performance result

wanted In fact, our otherwise normalized we add what to have if would are combined I you But in don't year-to-date kind that. Richard, else of right of kind expected. to anything know range of the

it's that's as exactly. last the the higher costs exactly higher some last a last Yes, do if I are time. we would you're couple points And look with than year above than level, -- And year. have just same year-over-year, inflation we of Jeff, XX%. I right, this Keith think say, That's said, year's year

through And more, call, storms quarter. frequency the reportable you make we level severe over just a the running million, that's those was last those very cats of as $X us, know, storms, in convexity I low and while little it in for didn't most more storms would there quarter. So had to also, a

ratio. the loss Some them are in of non-cat

of point and say, those, as over increase share our overall, have did year we see within well. the the that's couple So I we would that

then you sense. well? Obviously, is above maybe of this year, are be premium. to that's goes was into inflation adjustment, rate year getting going going in that versus what last think once a guard sort Okay. And still go And that year? but That makes as the what I then that to

Yes.

So talked double-digit inflation about July. in guard we going last levels

for year. adjustments So And of on that we point, AIV. July that that adjustment, top this X.X% would And final we have in through your an on minus and do think top then July. based go we adjustments to earn AIV still plus would put we from the annual in to X% June then to our of of modest it's place and on through about year's then have just across adjustments, as that, states, in the put but of managing more that last in rate certainly all adjustment

of Our from line Meredith comes the next UBS. from Brian question

you. questions of couple A here for

throughout seeing work talk changes inflationary through to bit to just First, you're it's it margin we're see Global Auto? pressure a remainder time numbers? understand can this takes you little Is pressures margins in something the these XXXX. here And to as about going I through continuing contract to pressure the XXXX for going of

to I pressure continued levels be auto. losses and definitely 'XX, improved pressure. see from we'll 'XX labor but Yes, of elevated and I on there'll inflationary do parts expect be think the from definitely, the

As of quarter little north I impact. sizing think in about probably you, I'd maybe a $XX think million for EBITDA a that

So if the this that range I was would on we it. year, going for put to size it that's probably

I mentioned that's access terms would longer try optimize -- actions improve and benefit have time, the rate taking parts recover also a a earn earlier, and claim to rate obviously over takes and of can to we're down increases to expect to through. And costs say I drive as but try service the more to that in network that both little that the we to the well. near-term to

taken we've I What want actions take. to would that the is say we

of clients. rate So we've partnership. our had only already really clients a this we've where in and impact us, with an made handful is There's great dialogue for adjustments

our very time. to get clients, over the to that this are confident going and right well we're level with interests aligned Our feel we

our the executing. is new on You've on inflation is area Obviously, We've in of from resolve issues Housing. issues focused and auto and focus, XXX% seen team ESC. us delivering resolved

of things these are XXXX into of of second going Japan, be When kind in contract we changes then when Japan? this as the some will Is were end going there that that of of Is lap kind And roll contract finally kind question, on? going done? that Excellent. to any year? the

Yes.

I market. into tremendous an see I 'XX. opportunity in X And market. stability over we'll long-term in year, long think There's definitely growth think to through that more again then do I see amount a carriers. runs with and 'XX of position lot think the and really head would the expect We a incredible in as we And that partnered Japanese all got term. I this we've growth

meaningful of contractual is you're that's kind than situation? of kind more seeing an the So part the Japan headwind a of economic

Yes.

the strong very results. think is first I the had 'XX half performance year. from still financial of in a this of and year say half, both second the last Japan. very strong first in would Europe Japan our We in half I stabilized

So from look in a at look year-over-year last comparison, we very down. of But both definitely, stable. sequential, as terms year, exiting they they're

So that I'm with pleased really performance.

the where meaningful finished in stable part an a In Europe Japan us, it is very contributor year growth. above it it finished. is long-term important fact, for But where it's to of and

no priority. it a will doubt be So

comes question next from Hughes of from Mark Truist. the Our line

terms The in kind outlook as promotions programs we the the year? fee trade-in or of balance your of income, what's of about think

promoting of is and Sure. QX, trade-in amount advertising, lower in really other And the to which are hard upgrade dependent whether promotion quarter-to-quarter have be just Richard, you a it at of great and to function really look you offers. if And partner how then a carriers, fee industry. particularly with new or we fortunate, trade-in definitely are the on and in -- position activity income. aggressively year-over-year. pushing the this we promotional We trade-in U.S., the volume and I'll sequentially how perspective. to within We're of be from But the on all major customers saw can carriers in a devices maybe that's they start certainly, thoughts volatile saw

more focused certainly flows. our that campaigns. our come and to But be continues It of it's the devices and that the little on. market, important was see expect ebbs the something clients that bit for in marketing we're very fall, and the a down aggressive new To bit hands of the extent out a very And we in dynamic quarter. a little in control to it's clients, as but

would we would, typically of a for kind Mark, QX higher not typically, And big QX, us. increases period be we're expecting

So a in of we mentioned well. little our as remarks bit what

seasonality half second to Keith So there the in it, year. some is of as mentioned, the

Yes. Understood.

up Any date X%. for the You top mentioned prospect based that on of approved rate the inflation additional on guard increases?

closely. some at marginal rate would state. And we our look obviously, state increases, say very I certainly by rates

-- through there'll last adjustments little through. there's obviously, still bit that of through rate the So book. a year But are big we the coming earning put be additional

Sorry, we we're half but forward second Mark, increases continuing. the not increases, as large the see of we revenues to look could to year, seeing slight

of certain I gotten think gotten we've kind plus areas. of we've there already, out international

be little impacted not a by levels come, So the seen I overall, we've more overall, -- to will the revenues over year. there a think certainly bit that. will but little past be But not the

about versus yield are the yield? And Yes. there? on for how new more improvement portfolio the investments What the prospects money

have mean, we've probably portfolio Well, term, Think quarter. is our income have, a estate on And over a in question couple I'd long investment cash the things. do the a fixed year. short gains, of I obviously, didn't had term. in last divide the we on real income in some yields, X-year real But increase nice $XX just in actually estate million Absent into we gain then this duration. your

that, So we longer-term role those get in we'll continuous increase a a and yields. continuous get on of kind

also, in almost much some rates accounts interest as as from with the rates. the point -- At or really as right, which is probably longer-term future, yields, Fed We've short-term the in those much increasing benefited come down. increase as increase the will for the

knows down. get come see return that happen, longer-term on when will So but Who yield should could some continue a But increase. we'll well. see as to we we that that cash basis,

of question line with comes Tommy from next the McJoynt KBW. Our

x a modest any dissect modest just little that maybe Japan Could we've for for the sort bit into those U.S. expectations Living sort expectations and of mentioned you for U.S., and of of growth down on You in ranges percent. had Europe. growth x percent, Connected Japan year, discussion this

that gauge of Just and a headwind trying actually much overall the of of get how exactly Japan number to a are? in Europe terms

I'd think continue Yes, half domestic Connected the would the will a we and that for say, I of U.S.. back Living, that the at for and had I for consistently think if year, outlook modest strong will Connected Living half, Lifestyle growth we say look about 'XX, I and yield first

So client overcoming steady, be for going again, increase benefit year-over-year. onetime year performance pretty but to the that's had an last we And quarter $XX that's in million. the third

expectations terms in second In half. would of consistent international, say we half what first I'd the in our be with the saw

continue reflect terms and we quarter. more to in remain second stability the for will Asia year our continued the first saw So GAAP Auto Europe we We'll kind be of the half. elevated side see obviously would what Pacific. say think opportunities, the to to in the half as saw to the and something putting in growth in Tommy. back the to longer-term about me of That losses I'd then of similar business, would normalization the it, particularly auto way auto at of expect And attention then in simple I and driving levels of

growth helpful. pretty line then Obviously, of questioning That's been tremendous to some of switching And on over this year. Yes. Okay. Housing. the there's

as seen you've load you a given cat consider last have guys $XXX in early With normalized for for Housing, you think cat what sort of been normalized we might any head all million growth load indications your that for this expectations into 'XX? I the year.

Yes.

our the cat I would be We load. I it cats haven't and honest, year for will sort say. in we weather the get, really mean put it's to after then of updated that, like the

were far. we at that, that we year. And we end over modestly into up But the increase, we're our be placement number the reinsurance. reinsurance going we're in the with an the we at only to So really of happy the of place of that the end still a increase so had $XXX non-negligible season thought million into cat actually, day, speaking last reinsurance, put the at year, going cat get where

exiting we whether retention international done that level, with or some number -- the have. footprint We've it's things, a that exiting through reinsurers, of our working international property of the increasing the

a the we're well done probable of increased company. we've things position. as to so end X-in-XXX-year, kind in So maximum top good protect lot We loss, we to the of think

So Obviously, so are so far, haven't see. in far cats we're any us reportable had season July, wait we'll so in now, and out. it cat how we hit see -- we'll right through that comes

[Operator Instructions].

Our question Piper of Sandler. Barnidge next the from John comes line from

In your think prepared business. remarks, Global It through growth. like that? of you sounds Lifestyle you expanding How do talked new about

momentum had to the thoughts. services, of couple mobile try world. a Certainly, business do in to ways the new brands around new help clients We've globally, our yields to a success. find or opportunity X We've new introduce innovate Yes. new last and Lifestyle great the course think products, got we've drive lot steady. pretty of things, and X marquee about years with I got Global the If of relationships with of traction the over that so been them many with has

term. and So today there doing things. And set, new to the that had, look we've prospects think, capability dialogue today we've wide-ranging ever a and innovating long a clients a as us, fact be we'd as would we've growth drive continue for got see got and say much constant that really to I seems to in huge is with ongoing and I interest advantage

the input above cost follow-up trends in that previously my what Is the into cost reductions drive Lifestyle then expense contemplated reductions? franchise. was global question, talked you increase across about an And

be around Maybe expense start management. we've Yes. I'll and tried then very to Richard on. add disciplined certainly, But can

depots. means merit we health do and relatively tried goal the well-being to and absorb fourth That pleased claims expenses our call growth quarter that last continues huge the got That even we're was with made through they And We've driving our intense for us. of progress focus this a incremental some first investment the year, and our of operations, we Our our flat. automation increases, really employees. a pretty year and digital to operations for center, actions for whether we've additional incremental of on were with in be area to G&A but all far. expense hold to to costs overcome we've focus also that have or so took

else But want on anything expenses? add you Richard, to

we've and Yes, our last down in points really where in the year side, turning I over the go digital you've to some the would supplement, say seen automation good of off in gotten base with and the we've expense particular, XX.X%. expense Housing of capabilities. leverage just made ratio we're And at investments some our a then number

that, of had that in the share increases expenses. mentioned. we a proportionate fact part that we've had is really, in But not NFIP bonus and that the Now it of revenues increase lion's Keith

that that really we of all business, out the talked doing. that and of getting leverage out about operations work the last we the area are year the demonstrates of So is Housing

the coming is Grace question last of Our of line from Carter from America. Bank

up of in about on in I maybe just about think loss shape some I how the people curious seasonality was the devices. historical second half out basis, in if previously we you the and year? thinking talked likely the Living to that belt maybe just Connected more in quantify had just the a that ratio could might damaged how we're XQ, with book be

a jump QX. offer to I'll We you're and see do Maybe But Richard I Yes. correct. thoughts seasonality then in couple of definitely, ask in.

trade-in third and in volume Richard's to in lower higher volume quarter We the earlier, trade-in also fourth see point quarter. the

frequency improvement results got that a Living. QX third see over expect result, an for we're to obviously, QX And our impact on the as quarter. certain extent the in see on Connected risk, we we've we'd that in quarterly mobile in where programs So to

to our reinsurance a some That of Richard, will delta noneconomic talked structure, help one you think what mitigate of But we commentary? that some But moved about, don't which certainly that to have clients we the contract be. we change. we've want Now would impact. add sized to might expect I

Yes.

about for QX hugely wanted a trade-ins us claims it, us, really that, us that be is trade-ins the some we you're the and for the typically portray hey, to and to is claims then stronger but say for We just QX and really QX, really you're but are don't it's usually -- claims, I talk when increase modest. if haven't modeling increase. and we It's to talked I quarter softer usually to at say, material, enough because sized higher. going we from QX what mean, not would is looking softer in QX it's about is have

service. And versus what then Devices extent factors? capabilities other the year-over-year by repair discontinuation any Global of I To guess in the that decrease the in-store is driven on

basis. That a was Yes. on $XXX,XXX year-over-year

appropriate So that give comparison. QX year, . from remove you an $XXX,XXX could and last you will

right. All

we took think of all questions. I the

reach again, everyone, to follow-up speaking November as So any And questions. please Sean, today, usual, certainly to earnings and out have to thank we'll our you, thanks, and look you joining quarter everybody. call. And Suzanne for forward for if third again in you

This does conclude time, disconnect your lines have Thank you. at this today's teleconference. Please a... and

follow-up And you questions. everybody. any And have again, thanks, if Sean,