Assurant (AIZ) 7 Feb 242023 Q4 Earnings call transcript

Welcome to Assurant's Fourth Quarter and Full Year 2023 Conference Call and Webcast. [Operator Instructions] It is now my pleasure to turn the floor over to Sean Moshier, Vice President of Investor Relations.

You may begin.

Thank you, operator, and good morning, everyone. We look forward to discussing our fourth quarter and full year 2023 results with you today.

conference Officer; Keith Chief and Assurant's and our Financial for Executive Chief Keith me call Demmings, are President Officer. Joining Meier, our release the the our year after market we a Yesterday, closed, XXXX. results quarter fourth news for and full issued announcing and available assurant.com. The corresponding supplement financial are release on we on Also that website for quarter a is this our our presentation slide introduced webcast participants.

made today are statements forward-looking. the of Some

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

can Additional information well regarding found earnings these supplement website reports. factors release, financial presentation as on SEC our be and the our in as in

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

details most news to refer measures, these comparable X, of more the reconciliation on the materials. GAAP the supporting measures, a and please release and For

before call Keith? will with I moving call Q&A. today's to start over remarks We'll into the Keith turn now Demmings.

Sean, drove momentum Thanks, consecutive EBITDA growth. and strong significant everyone. profitable position extraordinary businesses. an our reportable nearly delivering of year our EPS was We for catastrophes. capital XXXX Assurant, by grew adjusted XX%, value outperformance, year XX% increased maintaining seventh by generating financial billion, a good Adjusted to $X.X throughout shareholder and morning, and both excluding

the our growth business Homeowners of within by which strength XX%, of nearly EBITDA driven delivered excluding Housing, were adjusted results cats. Our Global

and execute with In ability innovate and carriers our operators, grow, by clients. and our addition, supported our strong our Connected mobile U.S. partnerships business Living to continued to for cable

of nearly million to unique over million allowed and Lifestyle repurchases. was of generated Housing to and profile Housing shareholders, and differentiated our testament million $XXX and This return $XXX in $XXX power financial a us businesses. share XXXX attractive including the to Lifestyle dividends. Together,

further strengthening been including not newly our this committee, able level people, leadership talented to our success refreshed without would our management team. achieve have Assurant of

we've by celebrate proud XXth many week, our to exemplified of XXXX. customers, communities, companies, Assurant America's created, environment included part JUST serving recognitions public as I Assurant as this world-class year our throughout we recognizing a XXXX company, of the and most commitment rankings Earlier am XXX the JUST received As our culture shareholders. of employees, the our its has

innovative who to dedication In addition, every strive The Newsweek possible day, most recognized we list our most received to vision for to X companies. progress create placing its clients on America's sustainability it America's companies, by we've the value responsible from our from to employees leadership team, as shareholders. into achieve our of and of recognition Fortune incorporate makes strategy made us our innovate our better serve and and

momentum. XXXX with of in strength and position begin great We a

portfolio focused we success. driving where have while X years, we operational strengthening future our Over leadership for the business in businesses innovation. excellence accelerating past and believe we further well on positioned we're By positions, investing

We've markets, strengthened For through grown equipment portfolio in commercial instance, partnerships. new within acquisitions including space, have specialized in to our presence not Lifestyle, Global exposed our cat exit we've where client and contributed offerings the company simplifying our businesses management, in are sharing further our businesses portfolio. to making core exiting economy long-term decisions included our This international that Housing, strategy. active to

structure businesses operational consumers. Digital our support driving our operations First significant and with implemented We've across estate across drive in value initiatives excellence organizational progress made We've Assurant footprint. for real a and streamlined end to

variety drive of ways a growth. we've to innovation our accelerated business in Finally,

innovation Moving for continue be important creation an to and forward, driver technology will growth value of Assurant.

and an track and partnerships. is is client tailwinds our This integral renewing record our as our expansion evident in the look new future. within strategy success winning driven client toward business of has important we approach of results, our creates part base Our of financial and

business to our highlights segments. turning across Now

For we continue XXXX, to and as in flat XXXX growing earnings. represented critical U.S. services. Connected and a business, trade-in we programs. our Within Mobile, protection on our high clients for for carrier through other our operator Lifestyle growth provide another We Living, increase basis. year mobile drove EBITDA innovate with In currency protection, constant execute the and earnings strengthened relatively single-digit X% business, were including Spectrum partnerships, device value-added we cable where a Global of growth

throughout In partner facilities with well addition, adding OEMs by our major we U.S. mobile robotics trade-in as in as a large AT&T, we're deploying programs expanded new the renewing device our where

expense progress excited stabilized Throughout we're by operator. outlook. Europe, make to address our long-term to continuing continue our internationally. efficiencies we mobile partnership ongoing largest In a and very position Asia pleased market with new announce Pacific, driving We while challenges. earnings Telstra, to by We're Australia's macroeconomic

Telstra's multiyear continue base broad us deal protection build comprehensive mobile partnership we presence core in including allow life This Our to well as trade-in significant device will end-to-end as to program Pacific. customers, new Asia of and to capabilities. support provide our products as is for repair their cycle the

repair Year-over-year Turning Beginning driven claims by were impacts inflationary in on XXXX, address action inflation we impacted the decisive costs. that declines to significant industry. to auto took Auto.

strengthen increases, with underwriting been changes clients while we implement meaningful by handful we've important enhance our claims the results, deal rate of For successfully partnered negatively adjudication and process. to making our structures, impacted where to

improvement of we'll the Given actions service the contracts, time, average in benefit through auto with duration XXXX. these over full to longer begin earn our expected of

well XXXX. deliver Connected Living, Based on feel growth Auto and taken the in in growth actions to Global Lifestyle continued the positioned of we

The premiums grew rebounded to which impacts In on experienced business, in also segment was and reserve led from benefited our driving by higher year business Housing. on growth. inflation Homeowners in-force XXXX our performance. favorable significantly, growth XXXX, claims supported the Global this overall was by move from policy enterprise The Let's and prior development.

flow. power business, of the and differentiated earnings our significant 'XX strong demonstrated the results highlighting to addition housing In cash returns

XXXX million. of was $XXX assumed favorable ratio including million our our XX%, year cats, combined load Excluding reportable was which development, of below cat annual prior $XXX

our new to provide very a $X.X strength enhancing new Beginning Written grew announce offerings. insurance pleased quarter validating portfolio, market competitive and In track X management prior agent supported the also customer the We of expansion across processing innovation also XX% year. we first other, nearly of enhanced residents, lender-placed the million renters channel Along clients, XXXX, Growth million PMC earnings our now over in top a America's our in CoverXXX, as position increase lender-placed the of adding nearly partnership property loan and XX% in digital including Bank our new XXXX we the X expand. are services with creating our XXXX. a further and our we we'll to of by management experience, expanded also continued in claims property of continued powered where double-digit business XX portal momentum. growth leasing increased machine to modestly was achieved channel in digital clients, business. by learning. premiums significant over Technology

XXXX Let's enterprise outlook. turn to our

expect momentum. driven our business profitable by We growth XXXX, continued in

Adjusted the to annual excluding with year. investments adjusted significant we be combined expect While trail expected the XXXX, portfolio. strategy. mid-single expected EBITDA, expected outperformance expenses higher than is digits, Global demonstrate 'XX cats, our in delivered advantaged the Adjusted to EBITDA EPS will growth modestly results primarily earnings our growth Lifestyle related in lower is executing and Global growth for power reflecting grow to of to Housing we growth, our critical delivering depreciation rates similar technology is

has Chief of appointed CFO, recently transformation our introduce will managing his significant to to as operational recent for and customer like in most end of I served Assurant businesses. as P&Ls with drove strategically. been Keith technology Keith many years our I'd and Officer, Keith, concluding, XX across allocating role of Before an efforts no capital Assurant's support Keith positions, be have driving has profitable CFO, Operating the leadership Meier. while In our the growth doubt that experience. enabler over led

to Keith our to review and in outlook quarterly over results further Now detail. XXXX

good morning, Keith, Thanks, everyone. and

share as Before about perspectives CFO. my like XX Assurant's results, to as I'm wrap reviewing quarterly days my up the to first I'd

During other a well take have recently, with operational my deliver a organization, me most and including been to into is our Assurant, as led level and several time of business provided technology discipline. the high on to These deep have insights teams. clients across I've experiences global fortunate our always needed what of backed and performance, at understanding financial of variety expertise roles leading the businesses strong by as

value and through ensuring differentiation capital our CFO, remains priorities. additional further focused product financial strong we create within profitable will and performance on and I'm our my be portfolio. growth drive driving to as continue position growth innovation shareholder As

us which also focused I'm and future, look customer to deliver efficiencies I experiences. better utilizing technology, continued toward enables digital AI by As the on expense also

our the and employees the willingness observations appreciated CFO. began opportunity about with I Assurant tenure Lastly, their share to over many last to I investors, as and several my months of as meet clients

discussions shape the path going better and my forward. me views Our enabled have to

financial Now the we've results, and our our year. about the seen which let's reinforce talk fourth businesses of the quarter that strength throughout performance

EBITDA growth EPS catastrophes. and reportable EPS to growth earnings and in million, XX% Adjusted driven Housing by increased $XXX to adjusted both adjusted grew XX% year-over-year excluding For $X.XX, were the both quarter, and Lifestyle. by

of quarter million $XXX generating including the in and position of to fourth with million year $XXX quarter, million repurchases. This the $XXX remains strong, holding in company dividends to shareholders liquidity. capital million Our segment us allowed of share return $XXX ending the

businesses, Let's beginning the with Lifestyle. review Global

of quarter Connected assets to Living yields to adjusted on fourth growth U.S. quarter, Higher grew contributed results. the $XXX to also programs strong by the XX% protection within EBITDA invested as XX% grow. improved million, For earnings our led continued mobile

business. programs fee-based we critical proposition, cycle devices, the fourth a in quarter, life represented driver trade-in as million as our the including which over income of X.X growth component of XXXX, Globally, our well year. the Throughout watermark for value a mobile XX million a our serviced high represent supporting device

fee year-over-year, While down prices income programs. trade-in used saw from sale devices new modestly for growth and U.S. from trade-in higher results were we contributions

by to continue Japan, challenging stabilized subscriber declines impacted a have in backdrop. we be performance in macroeconomic but Internationally,

EBITDA Auto, from ancillary higher were In fourth quarter also clients. from was higher expected offset investment of normalization adjusted inflation income. Claims by Global international auto were flat as costs and products claims relatively the elevated from

signs part we positive prospective the that of saw implemented. rate trends benefit to During we the as U.S. loss began were latter from increases in year,

$XXX and Turning million earned from Global fees programs, Lifestyle other America modest growth with vehicle to increased million new XX%, increased income. income $XX corresponding other contracts. earnings premiums, well by sales and fees Growth from non-run adjustments to due of benefiting and XX%. higher premium of rate as was as devices prior trade-in or no used period net which prices impact XX%, grew earned on service from premiums, North Living subscribers. in Connected mobile mobile net Automotive, contributions

driven Looking adjusted ahead Lifestyle's EBITDA Living expect Automotive. to we Global grow, XXXX, Connected and by both to Global

We Living expect be growth in by of Connected continued the our expansion U.S. business. led to

We Europe stable throughout expect and generally to the Japan year. remain

the actions months improvement expect client Investments will business portfolio in Lifestyle, the our we rate over Auto, taken Global In to strengthen over term. and implementations drive but over levers long beginning to new time, our temper past for growth are XXXX. critical expand XX related to XXXX in

to continue growth. and the interest and pace foreign macroeconomic rates, broader conditions impact monitor may impacts, which We of timing exchange

Connected is full other Living our income, In and fees lifestyle mainly net terms year earned from business. expected premiums, to grow of

portfolio. XXXX reportable Housing. adjusted actions we that We years million EBITDA a growth from the was streamlining drive few which adequacy benefiting million, taken while $XXX from Global included expense to strong ensure and Moving Fourth the to the rate undertook past to over leverage truly our of quarter drove simplify was cats. year. $XX

driven reportable related Excluding the $XX in million. million nearly favorable a experience reserve loss development. EBITDA year-over-year $XXX XX% of was non-cat by X/X by increased homeowners to impact adjusted prior $XX including of or to cats, increase million favorable period

of remainder increase compared homeowners million investment in also was quarter to policies. in higher quarter line $X adjusted the XXXX. was fourth premiums the reductions of in of Higher reserve in million earnings current increase growth This $XX contributed reduction to income the of a top the growth. from and number of continued an from EBITDA The comprised in-force

new to an expenses Growth offset catastrophe to premium. our incremental and by support business, was reinsurance increase partially

volumes. earnings were our property was in other, as and by renters growth channel affinity For channel management offset flat softer

cats, the in Global adjusted For we grow, Housing reportable top full year expect line to driven homeowners. excluding XXXX, by continued momentum EBITDA,

reserve In XXXX, $XX we favorable of from prior benefited million year development.

prior favorable housing in deliver expectation million reserve strength year of $XX Our the housing growth XXXX, in to overcoming the development, is of the demonstrating business.

onboarding expect placement which America book average these significantly Bank fully EBITDA expenses, current in million loans Assurant's the Keith be from expect implementation rate we of to begin Due quarter. adjusted of X.X to placement portfolio onboarded, trends. impact not As XXXX. When the loans first in to will below overall discussed, we we rate of X.X%, contribute may do to the

April a In year. terms of beginning we while our program, coverage process, date have X simplifies greatly cat this single This transitioned reinsurance our to the market. in placement maintaining comprehensive placement

As this year, with for our some of remaining is components the virtually we January, placement. April a placed program transition all smaller in XXXX

This loss program. consistent aligning PML, X- to For as our increase XXXX or optimize X-year and is with to return. will per-event $XXX million, retention our continue program, with probable our we XXXX a maximum and risk

our to X PML against end XXX event. expanded our protection risk by with to limit exposure in protect We've increasing top align a

the end XXXX. program increasing in continued in PML and a to we've X in protection, XXX in PML XXXX a now X XXX the our PML increase in XXX to capital XXXX of a in X X years, our Over past from top and

estimate expected $XXX be cat on to the load we million for these changes, Reflecting XXXX. now appropriate

business, Given overall a XXXX. international exit and reinsurer strong better modest the cost in leverage property of our savings pricing we relationships, market as expect we our the

in will We updates further the provide May. reinsurance on program

employee-related fourth The $X million increase, $XX EBITDA Corporate. mainly to million, due to adjusted higher Moving year-over-year a was loss quarter expenses.

million. EBITDA we expect $XXX loss approximate adjusted corporate XXXX, the to For

management. Turning to capital

maintaining growth. look As to business expect significant XXXX, and focus forward to to to support on generate capital continue we balance and flexibility we

EBITDA, For cash the adjusted to cats. full generate businesses of reportable flows, year, we expect our including meaningful segment approximating X/X

performance Cash continuation growth flow regulatory the of of portfolio macroeconomic agency and a requirements. and businesses, expectations the investment the rating subject environment current are to assume and

million activity. $XXX range of conditions $XXX stock market in XXXX, $XXX of expect to opportunities, to repurchases XXXX, strategic currently common We on repurchased million cat share and M&A for which depend will in the be and million

see, can positioned we of power you growth another franchise. through well XXXX Assurant As the in of year are the to deliver

call performance business his as the differentiated to on Demmings by turn Keith back now share Keith? views supported to model. I'll our

to is like few I'd a Assurant discuss attractively to why we believe today. take so minutes that valued

over time. with business advantages that a is Assurant unique have differentiated powerful outperformed

Not other Our is market highly and markets, throughout unique, Lifestyle and and operate only in BXBXC strong insurers benefit we business do our Housing attractive specialized a model but from different hold from service-oriented companies. we positions and scale.

solutions deeply we services At important in an our fee-based services specialty to are their we play as insurance our end role that customers. core, with provide integrated clients and often delivering large

market industry significant with generate our us scale within and Our alignment leaders has disruptors businesses. helped

our partners to flexible allow Our innovate capabilities broad that advantages us and for by be further competitive and are our set execute strengthened customers, us enabling agile. of to and

create that advantages. compelling have of unique believe our We model business and aspects we

generating to the of our allow strong and businesses intensity This deployment. us through capital capital additional grow generation cash for efficiency years. over low Our $X.X X is billion capital evident efficiently, last while

business risk-sharing within risk is Earnings Our the attractive. of reducing is lowered profile the models, volatility macroeconomic structures by volatility. impacts our

which example, has throughout or shared For risk risk more enhanced efforts Housing, on simplification our exiting X/X Auto, have and capital-intensive profile. Living approximately of is portfolio Global partners. our Connected businesses, to focused reinsured Within total our profit

retained per In occurrence level addition, risk top the program high substantially limit at low due catastrophe and retention tower. of our end limits robust to the the

client our the higher cost Assurant's In and the This last seen inflation to built-in labor policy is and targeted between Auto, share rates feature guard structures pricing to pricing to accounts has we're creates annual our return. Lastly, example shares. well results. Lender-placed most years. a through profit prime X we've over as enable deal of for or where materials of underlying in risk clients' adjust a financial ensure our reinsurance economics alignment product positioned our close

have dynamic, this in with broader clients together account to our for market. we impacts adjust to the rates Given inflation ability the

prospective Over on to vehicle successfully we've increases with the worked service through past new XX put rate clients our months, contracts.

is performance Assurant. paramount Financial for

earnings significant which growth While has not always double digits delivered annual we've growth EPS cash generated average and XXXX, be flow. linear, of may since

Our we've growth that adds XXXX historical delivered. outlook this to

strength XXXX we performed the to we insurers. insurers specialty that demonstrate including We've the compared Please how show the suggest business it and Index thought broad this versus we members would P&C group. given to not our and are of is S&P earnings to broad example To mind, our useful model, keep of peer highlight group selected adjusted an to, index often in a data. performance be new a on basis a includes against P&C available credible

Over double and grown we've the outperformed past the X digits years, index.

annual cats, average index is period. the almost Our up growth rate the double XX%, of time over excluding rate, earnings adjusted X% growth same

Including growth annual reportable continue capital average consistent that drive growth required valued. the cats, XX% value. driving confident attractively to lower returns we've that demonstrate we'll our and profitable and also rate to shareholder ability create X%. strong, We outpaced Assurant the believe of profitable with growth long-term and market, versus growth makes I'm volatility index

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

Hughes question Truist first coming Our with Instructions] from Securities. [Operator Mark is

Keith Welcome congratulations that. The BofA, on Meier.

placement be an to are to homes the the that is lower? is because actual underlying -- over lower? is that Or going on rate Is being covered the and the you? just say basis You placement not premium the that is transferred rate

of loans on that the the of of going block is lower up to just then and rate all We're particular business average. than all No. but the placement picking be policies, the

of huge the and years our to exciting south doing and getting the lender-place point, to just the the obviously be X.X%. of average, the that, fundamental in look of you incredibly If validating. a about excited congratulations more to an making and building nature opportunity nature will But and really loans at a current our business. it's It relationship point incredible and extremely job this team is for then many the

was seems turned Homeowners or then development seeing been non-cat are underlying favorable you we Or trends? the a sustainable? And It in because fundamental out reserve change as -- there -- very it losses just Hurricane something favorable Ian have the than on reserve Yes. the business, Is view that expected? lately. better like should is

this is Mark, Keith Meier.

would the that I had environment inflationary say first -- more relation the in think was we the I thing is reserve higher to reserve the development So previously. positive

really more in estimates that that, that's Now there. our settled, that's what's change the been has the team made

So think more any the was that type or activity than other other of driver I any of type weather experience.

was key I that there. the So think

And question out and quarter, than better non-cat year think period you then XX% the be the if the ratio about then It's of at a on in point -- we're what our take about about XXXX, you would is, we in to development basically over ratio. year. And way seeing looking XXXX. last the level year, to that loss prior see at whole to terms your the about prior are we if X loss think somewhat non-cat

probably non-cat our that's ratio. So about the on way loss to think the views

XX%, point X seasonality, modestly And to Mark. in just normal thought. you really the adjustment at quarter final when better but just the make would we nothing there, I that's mean

devices going was if fee there? much substantially, And income in could the I Lifestyle up than service. more. squeeze so on in Yes. more What was X The

fourth seen Yes. That's quarter. the in volumes trade-in we have mainly that the higher

in fourth new to also we the saw the addition quarter, So of programs.

clients, the cuts with good of bit program major tempered that's felt trade-in quarter. promotional our in several little of that then also activity. by other a So X overall, really across a also then the But we about of the performance the OEMs and some X

John Our Piper is Barnidge next with coming Sandler. question from

was expense Are view My expense how 'XX. reduction 'XX, that's first And to about global run with in you know there savings question, able merge housing a to savings December you talk of I ratio? an rate in those full program supposed 'XX? in emerging geography

Sure.

think experience. some actions a a year, both really, blend employee on So digital been of efficiencies for our able really some and had in programs of the expense technology over lot and well. well I as done through strong efficiencies especially that on I investments really even But gain last that of the -- think terms couple of really of this has our driving we the facilities to and work it's Housing, we've we've our a the as been better years, story the customer as

to you at look down year-over-year, ratio we're XX our When about expense X XX. from points

a -- expense in a that expenses And XXXX, really if so been we to enabling that able you the our growth we in what's leverage lot Housing, not that's of think into but a making. increasing of story has us I think And we've investments take technology more with been corresponding a way. our should be had to lot

really of a in teams example that would cost, think I And delivering, the experience that to not we've to been Assurant. with America but lower I like about great there our So of market. think a of business why the the advantages just proud done customer also Bank that's do you client have work the want create when think

are I those think in So off multiple ways. paying investments

about ability can think improvement through I talked on the Auto actions input expected input for you costs Auto the about year. talk this And to recoup you maybe elevated 'XX? contracted costs,

Yes.

financial or how these built feel so our are really terms over And deal strong. last where months contracts with We've mean relationships are clients is feeling much we're in a results, about incredibly there's take of think the the the clients on of I'll got and We've talked I your XX maybe made all that. So transparency. significant the with would I very handful rate performance. aligned what say we've good pressure adjustments point, which interest I positioned. underwriting about. structures X To and of we're

rate We'll at of obviously, look put continue claims monitor a activity. we in. performance, to So lot

sign. level for these think are We've than based what about nature to Those say off would things stabilized service is business. it housing you business. the on saw earn are a of X-, then policies. severity the contracts, X-, it longer the that happened fourth we a annual I These the in good And X-year within quarter, when in X-, little through policies. takes which

So and beyond. it's see we and and continue that in certainly 'XX positioned little perspective. I really should would different a in improvement to feel through that But bit from say well 'XX, flow

question KBW. Our Tommy is from McJoynt with coming next

There's a moving it sounds mobile couple related -- a like there's pieces side. of the to

upcoming So you some onboarding the what that called We're earnings trying in out sort of then revenue onboarding think space, just next earnings you about have from look some costs of business of Living what to could contribution and figures Australia. that Telstra of after and Are rate, quantify run XX device like? terms might the going the Telstra of either the the the months be? investment investments you mobile in or Connected also around to that power in cost, the

thoughts. And global a I'd We're our in in team pretty development. leveraging probably going super Yes, offer It's of and Australia. example of our a couple it's proud to phases. Obviously, reach. great exciting of out the it's capabilities roll a

We launch first number in expect to to of the a phases quarter, there's then different and the rollout.

I of sorry, in -- it that the probably would I investment to ramped Obviously, year 'XX certainly negative be in -- up. would 'XX So modestly will be, in to improved 'XX. it significantly yes, over expect in get terms say, this EBITDA

of quite side, on there's the just going BofA. talked out of even different services. the about Assurant. and X we different Lifestyle scale size but prospects about new that and publicly, Telstra many, on we're of Tommy, discussions other Obviously, making, a lot many investments, a one also of But with we're investment terms products, bit say, is would in and example. investments Certainly, it clients, thing out there we're rolling within capabilities, Connected about In talking new so are Living I building

I going Telstra year. say in a would would within investment this Living average normal year probably even we on Connected than we have more So beyond

that When few investment we on points. think could growth Lifestyle, the putting for mid-single-digit pressure about probably a about you by talk

the would range it weren't more high-single-digit for the what be investments making significant these future. So we some in if us, in of are,

Got it. I of those quantifying numbers. you appreciate some

net and here? separately what's investment across income to portfolios various full the upside any potential there of even quarter for rate cuts? reported investment And pretty the also You net to the lines sensitivity yields some this high from year. business those the various Is

Yes, Tommy.

see up. results one, investment in flat slightly joint into terms year. income We of We to being next sales So we'll we expectations don't mentioned X.XX%, relatively be year, so it for we for have but -- think, higher high so think We that our you quarter. should just real venture our relatively of real this year, the I estate next estate X%. contributed. now, positive think do sales as at yield into going next book -- portfolio is Right under we've our had

New money rates will be a little bit higher than that.

reduce year the Fed year. the course, goes is rates through And do on, to expected the as expect, so of we

those the timing of this that increase kind year. on some saw the rate of will those depending So offsetting of changes, be you

but an place probably we So pretty next it from -- up overall, in for year. a investment good standpoint, think we're will income slightly

on I'm when how not Housing. like positive, overcoming modestly $XX thinking look investment material tailwinds And you mean, just what Yes. overall color but year, more little don't the maybe we this at Tommy, about income. I might that. of guide a then And the be bit million on add year. we're PYD It to we in for have saw

earlier. to the being we feel mentioned of along I with really factors able about, growth strong that X So on good investments those obviously, top deliver

UBS. coming Meredith next Our with Brian from is question

A couple of them here.

us of of assumption And just respect you can contract kind with First also your tell of that, Are to outlook macro kind Is how curious pressures there that you of year. Japan that I'm kind kind what still maybe curious, your that Keith, one, of this ending for expect changes the of baseline on? we just growth? flat XXXX? mentioned should there, was going in some and I'm in are you then think that XXXX? going to relatively of on kind be is about kind kind

Brian. Sure, Yes.

the be bit there'll mentioned as for we running be new a off to pressure customer still pressure not X-year evergreen. Japan, but with 'XX. starting that for then contracts 'XX, a That's and still going us of were so as much a the And were contracts us, in

that have that think structures and new programs bit Japan. in offset some by I launched is new we little a

that that couple with I So feel few had moderating. better And the about mobile where we carriers. of relationships term, a -- I see only Japan, a think ago, even you'll where, years that's longer

active X to mobile we've operators. Now -- business got business top a fast all today, we of with forward you that do

optimism business, win our it's to grow good already, be and partner big when in I in can some easy us there, lot with Japan. a from have coming able those gotten think clients. not up, future of those headwinds why to that allowed think be then for of past some we've a programs that of very But puts new relationship in But the that's relationship so existing And to I what an you feel us we from before. of like

longer to improvement as overall quarters, And we market certainly last couple look over If look Yes. about point, so and still performance, an of the I would Keith's And for we stabilized good QX in modest say, time. And to terms at then financial us. QX to the here. 'XX, that. expect exciting Japan see we some we forward of feel term,

that. Obviously, -- contemplated and the anything And significant. of But about that that's don't significant. that, like we macroeconomic conditions, interest things in expecting beyond I that's Brian, there's think talked terms nothing rates we're not

other here. then just And quick X X Great.

assuming deal? I'm the for deal, BofA this cat On just the for kind year BofA I'm includes load of your -- guidance

it Yes, does.

Grace Our final with Bank Carter question from America. of coming is

Grace appear appear we has One Grace. call, It moment, does It off gentlemen. that dropped lose please. the does did

right. last Am correct? I No that question. problem. And was All the

is correct, That sir.

Wonderful.

it will we thanks to will much, again look wrap be Well, team, to everybody forward we'll out free and speaking in IR answer please meantime, that today, any May. feel very happy to to obviously, a everybody But call reach soon. questions Okay. our talk the then, for and to who we'll And in has.

you. Thank

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