Assurant (AIZ) 7 Aug 242024 Q2 Earnings call transcript

Welcome to Assurant's Second Quarter 2024 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 second quarter 2024 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 our the participants. the our supplement release our are after market webcast assurant.com. we a financial a Yesterday, Also slide on on for closed, and corresponding results is quarter second news for available XXXX. website The issued announcing presentation

forward-looking. are Some of made the today statements

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

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

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

remarks more materials. these on a release of over the GAAP the the turn the start please comparable We'll to and I today's moving reconciliation call Keith most news details For Demmings. to with into refer Q&A. before two, will supporting now measures and measures, call

and morning, everyone. Sean, Thanks, good

XXXX Assurant half positioning our results us year increase continued expectations Global Housing outperformance first and Connected underlying to strong Our full growth XXXX Living, overall. from momentum for in demonstrate

our XX% half Excluding of results with were EPS business business our lifestyle year-to-date, reportable the highlights. combined EBITDA first catastrophes, grew adjusted increased Starting model. power adjusted and XX%. These housing and

million, was Global with In XXXX $XXX first consistent half half EBITDA adjusted XXXX. Lifestyle, the of first

X% EBITDA by the or on In basis. our Living in Connected been X% U.S. constant Our within currency year-to-date adjusted business, Living, performance continued growth a driven momentum and has Connected particularly increased

we implementation for related includes incremental programs partnerships As long-term growth Assurant. we previously support will and spending of to expect new XXXX discussed, that

the Mobile, new repair Connected of and XX% plan. Spectrum of two programs innovative Living Excluding million, with first a growth basis. currency example investments $XX on our anytime included was One the offerings constant of for and year-to-date upgrade replace approximately half rollout

in we major T-Mobile top market. the these we've continue U.S. XXXX. subscribers in carriers postpaid programs driving protection these all X.X pre to and critical mobile beyond partner position added contract this also total, device Combined, future. U.S. Australia. including year, onboarded to subscribers. invest continue and postpaid their drive of new consumers growth. a clients, X represent subscribers, long-term T-Mobile our X our cable U.S. to With our for completed the new by with the us protection renewals extensions This and sequential mobile multiyear contract of continuing of Additionally, prepaid X allows In device and in included extension the this strong T-Mobile, supporting renewal The largest innovation to of operators, Telstra, million strengthen partnership

claim Chase partnering purchase In cardholders. business. financial a services, benefits to and and for travel delivery relationship long-standing XX Chase we with end-to-end program multiyear of Chase underwriting, with expanded executed benefit We Card our benefits, approximately processing by provide Services within our to protection millions provide card including coverage will This contract growing servicing.

years. this marquee a second has This XXXX. benefits strong business, win continued for several expect end card the year half which investments over over at move of of momentum the launch program represents last we the We our toward as gained

partnerships housing and with drive across of Our the we Chase across the relationship businesses, spans that Assurant client reinforcing now depth enterprise. our lifestyle

Automotive. to Moving Global

repair impacts to half first costs. pressured motor Our have vehicle earnings on be ongoing by continued inflation

service contract effects business. impact the We continue our inflation throughout results auto will expect of our XXXX in that of the half to second vehicle

ancillary or guaranteed experience elevated continued GAP In product. addition, within expect loss our protection asset we

pandemic actions vehicle service taken bright of higher and the from over the our claims elevated car used the by number rate past Our months. primary prices declines losses combination rates the driven losses declared inflation continued see to insurance we've business begun the is our however, interest of carrier. of XX increase we're moderation by as on vehicles in GAP longer-term highs, given total Within outlook, product, experiencing contract in the

We expect to after XX to impact within relative shorter as term contracts in this nature purchase. GAP made the the claims first vehicle majority of be months service are vehicle

year, reduce transition In clients the the past partnering addition, the been several will amount to GAP our time. business, claims of risk exposure a proactively over on with substantial we've over which

and channels. market the Lastly, a partnerships believe will our distribution with across business scale strong multiple auto to leader continue position as we benefit from

Housing. turn let's Global Now to

For the P&C first have differentiated catastrophes, increased half of overall Housing's our of demonstrated both reportable business our the to and excluding business importance has XX%, broader market. nearly of the and results earnings the year, unique the the Global which portfolio power largely Housing's outperformed model year-to-date

Our removing the lender-placed U.S. of investors uninsured lenders, and for insurance business safeguards industry supporting mortgage by homes of risk insurance that geography, the need loss regardless homeowners. while

process and state rates review each and rates while adequate to are they to ensure fair that address reward We are such on with protected. regular basis us homeowners factors work a allows safeguards This and to together to appropriate that with creating as macroeconomic balance inflation. product risk

customer track compliance our advantages. competitive in our from our benefit continued we critical and expertise, addition, strong experience record, most In investments

and operational increased renew These creates in will efforts to leverage, meaningful This, significant from efficiencies. Bank win which us this benefit combined existing expense has led partnerships which America. investments have scale, forward. technology including clients, to with of contributed new continue to Ultimately, has turn, allowed to going

this to P&C we place there's an businesses. time opportunity to we with renters, specialized Assurant better and client Overall, traditional to of growth frame. to a within homeowners are combined relatively carriers. In well led and financial and product many business the specialized compared market is positioned Our short advantages we from value continue believe these that to capital our more efficient pride recovery traditional insurance have believe compared differentiated We lender profile advantages for business. base benefit the attractive an

expanding innovative providing with new focused property are PMC We market a on leader as partners or channel the our offerings. company within presence our management while

half first of double-digit we XX%, of our of for channel increased demand premiums by the in gross the CoverXXX client X our written This reflecting solution. PMC written straight premium In quarters strong gross over growth channel. year, marks the PMC in

provide initial to Assurant service, Tech Pro U.S. in Following of the a the to this PMC signed launch first recently service our resident partnership the the the we industry. largest with be to troubleshooting

We of this the half year. rollout expect to in begin second

to Turning enterprise our outlook.

anticipate adjusted single Housing, of partnerships to now Living increase Global both XXXX. we half to low focused the both and of per deliver is Given within initial In first expect year is to lead growth digits adjusted to year remain enterprise strong digits, increase earnings catastrophes. share from our expect for This our another programs. our and we driving metrics. represents results, excluding XXXX. EBITDA double Connected growth Global Lifestyle, full through for grow expected strength high which expectation We growth expected growth in modest on we as new momentum an long-term

scale homes. whom across a attractively of and with delivering both market are leaders and capital-efficient deliver highly and clients cash from our the by with our Together devices, deep experience. performance protection lifestyle unique first globe. demonstrate advantages and in advantages, and benefit track housing, make valued. created are across we've within supporting we established our competitive profile record We've industry automobiles many amplified Assurant solutions winning solutions generative. increased disruptors for of positions lifestyle Over integration, power focusing We've we've risk the to Overall, outlook our Assurant's and of customer differentiated these model time, innovative enhanced our housing, on differentiate our XXXX which businesses and the flexible clients, seen business BXBXC half which believe leadership through mutual and

from opportunities contributed long-term current this we our and partners focused multiyear specialized included offerings our In under businesses. particularly health outperformance secular Global of life broader the believe pre-need, versus XXXX provide attractive end We Composite and long-term a insurance and with insurance-related markets better product index P&C our subindustry that These their insurance, tailwinds. transition of solutions consumers. exiting Classification insurance P&C services We Industry and GICS, and index. multiline as mix June, market, our comparison fee-based factors to the or reflects on businesses P&C transformation the Standard, S&P to classification growth to

stable We've believe Before introduced vision thriving in world. Keith our XXXX connected, our climate. handing initiatives. economy to support sustainability published our sustainability respected Meier, Assurant to ambitions it over I These reward diverse we products to protected and how recently ambitions for wanted important our new demonstrates sustainability advancing and society, including chain. impact which for and there's established the of for connection and and circular We've business strategy long-term a our We a a how on to future, focused reduce adoption Assurant's advancing a of highlight report, stakeholders. and a supply to deliver between and operations and contribute strengthen and and empower the our sustainable our vision innovation, the an development we drive value climate priorities workforce attract, progress

drive so attractive made Continuing for year. Overall, and the progress to overall enterprise. the excited about financial this far results we're we've outperformance

and to turn business momentum well Keith I'll to ahead, it review are and we now second business the look continue As we impacting trends second to half our in quarter outlook. to our drive we Meier results believe positioned beyond. XXXX over

as our continue good well strong Keith, creation. invest second consumers. to track in morning, upon value and value-added shareholder we and historical We and everyone. our record We're long-term end solutions believe of our to of generation quarter build are growth, we Thanks, positioned capital clients proud performance for

million a quarter. we quarter. specifics $X.XX, the quarter, quarter. from quarter of excluding From adjusted quarter the grew In share per of XX% second segment built $XXX dividends million, and of our from $XXX million capital at second the increased first which first end catastrophes. both to up by upon XX% to second $XXX generated the company of in reportable million review the results, the Ending with momentum earnings EBITDA liquidity, the $XXX the strong adjusted holding Let's perspective,

repurchases. position provided Our shareholders has flexibility returning future of strong $XX share invest million quarter, to while to in growth the $XX including million capital in

shares far In repurchased X addition, in year. have of August July X between million now so this $XXX repurchases completed million $XX and we and

to segments. our business Turning

Let's Lifestyle. begin with Global

by Connected and as growth basis, Pacific clients Asia from well results. products. services primarily U.S. earnings Living, U.S. new as driven decreased increased a including operators constant modestly global adjusted the programs, due to by Driven Results on million impacted $X X% elevated a or from which were losses to or currency million. declined $XXX costs For by and by Global basis. Automotive, EBITDA mobile claims quarter, financial GAP on In protection inflation higher constant ancillary subscriber X% currency cable X% improved

remained results in stable growth. exchange client business EBITDA are results basis modest expected adjusted constant were International currency capabilities down to support from in which a to long-term and growth headwind partially quarter. Growth carrier lower X have show points mix, Trading by investments including started promotional of in muted signs growth. and and on Lifestyle's a was and from remains new activity. by percentage a Unfavorable the impacted foreign decline volumes partnerships,

premiums, including grew other protection Asia or the and earned fees contributions and Pacific. programs, from by benefiting $XX net X% to Turning X%, increased million and new Connected Lifestyle income. trade-in from U.S. Living and mobile

in we Lifestyle's claims strong Global performance Connected Living EBITDA to XXXX, year full For reflecting continued ongoing grow Global Auto. and modestly, from adjusted expect elevated now

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

and We a elevated Global Auto, to long to modestly critical driver we by inflation within XXXX, mainly the continued pressures products. ancillary GAP and Living, flat from in programs, new in over EBITDA clients expect for term. now to adjusted will growth but expect to temper business Connected X% loss lifestyle In investments be down to due related approximately losses be growth

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

we moment our how have inflation business to discuss auto I'd like headwinds. and take to addressed a

of remainder As expect see impact we've the CPI as large began end to performance to motor we the claims inflation in year. industry even stabilize. our of Toward repair overall this costs the XXXX, to vehicle discussed, auto over trends spikes began

began industry of auto the declining. levels a XXXX, signs inflation see to Exiting

again, first of beginning in motor increased performance However, once XXXX. in costs vehicle the of the XXXX, half repair impacting

of over term. total time, risk the economics a underwriting many of which our to or a business, contract just There to of are over given the our improve clients risk few is five auto reinsure retain clients client service subset a long Our in we clients the small is of overall a limited returns profitable vehicle choose as share the will where in that claims of base. Auto's portion

XXXX, XX coming increases additional clients for have increases over rate Since impacted implemented a these total of the with quarters. we planned

have our earn ensure do made with administrative these beneficial deal to service income vehicle we fees addition adjusting In modifying risk, for increases, with to where and process, enhance investment as changes product we our program rate contract are receive mutually support. claims clients also the outcomes. structures we adjudication to and we some retain Even profitable clients

Moving to Global Housing.

Second quarter $XXX EBITDA, including adjusted cats, million. was

losses. During the reasonably million and across well a more in P&C incurring impacted that reportable no included with that single over quarter of event ISO of events $XX industry, than fared XX five we million catastrophes much $XX events

was by primarily newly number an client continued driven of adjusted reportable America transitions. increased in-force of and EBITDA and the million portfolio from The the of in ongoing the growth cats, onboarding in homeowners, XX% of policies $XXX Bank to added $XX increase increase impact the line top net from portfolio by or Excluding million.

increased policies hardening to insured increases lender-placed markets rates. values filed certain in premium higher Additionally, continued due to average to states. and see impacts related average traditional growth Lender-placed insurance in from

investments continued and higher key housing in activity development. in from unfavorable a partially the which in Underlying of improvement leverage Despite year-over-year offset the by the ratio, reflected to period was prior $XX net of reserve technology related in expense XX% EBITDA impact as quarter. was million remains growth expense performance quarter, the offboarding portfolio client operational from onboarding driver efficiencies scale, expenses and

quarter had compared million second in quarter XXXX to of million the XXXX. favorable Second of development reserve $XX $XX

overall lower half key of to anticipate momentum year growth performance. be We policies and by by line Placement expected the Housing's full catastrophe Global of homeowners, be force, our earnings continue enterprise year. client continued cats, be second the in both in to will excluding EBITDA, drivers expect XXXX adjusted leverage top and driver We impacted portfolio driven transitions to rate ongoing costs. growth expense reinsurance are in the of

overall However, XXXX. growth for both are expected to healthy have

Beryl we Lastly, in quarter. expect the reportable to Hurricane third catastrophe be a

between While is claims are indication our estimated early will losses million $XX million. that $XX to developing, still be

we to update finalize provide will impacts. our earnings prior We quarter the an third as call

Moving to corporate.

higher quarter due was second income $XX million, and levels The higher which EBITDA mainly investment asset adjusted improved from to yields. loss net

with XXXX consistent approximate the expect EBITDA to adjusted loss continue We to million, corporate $XXX XXXX.

management. the year, capital capital in of We in million dividends. $XXX Turning half significant to the deployable upstreaming segment generated first

expected For Cash businesses XXXX, we to continue expect the our to to company of conversion including generate flow. is meaningful EBITDA, segment holding X/X catastrophes. approximate to adjusted cash reportable

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

we maintaining to to support As of forward shareholders. the to continue new growth look year, on and capital the to we business focused flexibility be remainder to return

to range $XXX for the and reinsurance million $XXX end high expect our position on share capital million we strong year. our Given robust the to of be program, repurchases

conditions positioned our opportunities, cat call had believe on activity. and we've level half please supporting repurchases with the ultimate business and increased M&A financial we achieve term. that, also depend Our outlook questions. XXXX, long and first for to the operator, strong growth while market a will open over Overall, shareholder very creation full value are we of And well year of

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

drag, a does inflation, turn be On the on drag? the when become less less to that sustained foreseeable When impact does it will of continue the do the future, that? corner it it of Understanding Global negative? of perhaps Auto, we for when become a kind

Yes, Mark.

different of the quarter tale think the first kind and stories was quarter. So second year two this half first for the of I the

contracts. was the our quarter driven from first by vehicle The inflation really service

really And is traditional by so and -- values insurers. higher on by quarter, but declining, was more seen car in the the GAP declared interest was second we've total more what that the losses driven side, used what rates

moderated the really was side really quarter. was in contract second bit service challenges the driver the of in the the vehicle the So GAP a quarter, second

been rates we improve we've the half our go through into of that back stabilize we look actually clients to at place modestly the the expect the So as we of as year. putting year, and the back half with

other the one the relates GAP this year product, to second or so think we've on as key about I it transition risk past been working And clients. point the and reduce that quarter over of to with our some

vehicle So the And GAP we service should don't the couple than improves see going that's that really less faster as of X than term. -- that contracts, in to years, years. improve than over a sustain next so in long less something actually

this to is a few this our of to next little going a have business the raising our So us we're creating we're tailwind years. a overall, just think if more auto, I time have challenge bit a over probably good and when in in for challenge is really outlook, auto the

Yes. And our started think volatile over add actually I that we about That was just getting know time. off a when We of risk it's line. GAP GAP well. performing back would product process a lot as

to said, for volatility was long-term and as continue pain go forward. try to as something to strategic goal that And we we'll that not reduce be that the that's decision. make point And work to business. a strategically expect we something Our Keith obviously, on

Yes.

dimension. is XXXX, less it already fair think think factored comparisons could So this year-over-year we to i.e., positive the this guidance be into would when negative, pain year your about in

an as the on our we of we'll see we definitely half the go through update but year. It's provide And then certainly into factored back the Yes. year, 'XX, 'XX going into improvement outlook. an

a talk could that that And Chase. like How a that little benefit in an interesting sounds Yes. is the business, there? the opportunity new marginal more important opportunity growth? the be bit is a with within It contributor to lifestyle? you And about agreement could then card

and definitely, I Yes, a say would things. of couple

segments our been the around a And benefits number and expand one, in we've of So obviously in have lender-placed relationship. spans this We successfully long-standing a business the couple things years, U.S. growing it's Chase several last lines as relationship investing many, which to with will the phenomenal many definitely particular, quarter QX opportunity we've Chase ramp to launch. years, fourth is the to year converting on our Chase, this a is in card expand active the business It's of actually progresses. specifically that part relative in product within investments all that cardholders about between chance customer the in are great. We of talked the across a that year. lifestyle, We're

So enter there's year. we certainly lot a next to of full be very EBITDA we're And excited. work that And will XXXX then will be run a stand up. rate it because yes, as entering positive it at natural

And market new drivers of connected the directly are clear be it we've discrete for growth Connected the strategic And are of business. one the what is signaling part business. several new that certainly, to think products levers growth I growth what long-term in investments and been to specific for will of Living programs,

Our Partners. Dowling with Lukpanov next Dan question comes from

just back the to curious. Going auto,

been seeing the traditional product, insurers, have the physical you a and knowing in damage we've your So liability car reporting side. just moderation insurers severity don't

of mostly damage, have materials little, same You it's physical drivers side.

the on how on GAP did the loss negative recover any change, acceleration the service vehicle I your the can Just contract business. sort cost side, on fast -- the you in improvement. trend did that the I that guys quarter. of see you But curious, view get the was year-to-date

Yes.

So first quarters, million X% and modestly, it's we I auto repairs X the couple saw went -- so cost about down for The index the CPI moderate. trends loss year-over-year. think or of through

coming a those moderate good a for improve seeing think start sequentially it to forward. us and go bit, And we're Dan. through in rates I we position as have So we're

I X over think we just mean the couple XX clients amplify, And I over talked last years. Yes. about to rate increases of

see rate on with earn place. the to increases So moderation put through, combined that in obviously, starting amount we're inflationary a of meaningful And side. slowly been have

monitor itself to forward doesn't the that business, QX, solve what as as certainly as but through time. of we in the in excited see housing rest It that momentum So progress saw over year. think we the builds nearly we'll and quickly

normalizing cycle, to cars Okay. And think saw during do new more see and do you used the inflation see mix car normalizing, that you in at all? production, used the you of I

Yes.

it I pandemic, -- volume did pretty It's we point. moderated. think XX-XX the definitely a used balance the car within But it's this tilt back normalized of business. it's nice new There's And the terms it's into a used car certainly new. the more range I'd pretty point, still in have in say more and going to of system. during at and your

any you If The color business. that? more. I may Services, profitability more What improvement a squeeze Can the in out on Financial the in think called I you in one -- U.S. that? was provide

Yes.

continuation I the programs business. think in we that's that just financial our have a services of leading

So that we've growing business the years. over been few last

think momentum I that. of continuation having good of just a really business. that's Chase win So And services our the the highlight another financial just in that is think I we're

Jeff from Our Schmitt comes with William question Blair. next

those, of plans currently auto Any accounts kind could give much at And would mix [ of inflation how sort handful writing what business? where share profits? you a running of for actual is is ] So teaser the like on of is much be revenue the the you details how GAP helpful.

Yes.

transitioning a over of it's continuing mentioned So we've that be as to Jeff, some GAP, earlier, even part less actually our risk. we the small very for business, last and and of year, working actually less it's on been

So smaller it's part. smaller becoming and a

Some been of already you're going transitioned are seeing programs for now that the things forward contracts. that have

existing just we're contracts of the some So today. through working

that's and big business. driver that not we've our bit that overall, So little part volatility auto a there's of within of of And reducing why been that's business. a there, why

profits that? terms how percentage of the you of is with, handful much in share accounts that mix the of just And of

overall, majority, necessarily share the time, becoming split it's It's risk we of a only of business it's -- reduce But business, over increases, our actually our clients. rate And risk clients. and the We X that's Jeff. do with clients. our vast better out performing the that with most those of Yes. don't piece

of really is smaller main the part not part. the this business, So the

a And you continues then mean, business. there? to are run just high the few rate in And just as getting? the kind of be I weaker. What the ago, getting I'm expect think rate that much years you'd are a question single I growth digits, on to business weakness curious the well? what renters in you

Yes.

I and a rate if at level revenue at What it's say is now we've on -- I about relatively past. look side this think the our year-to-date, very probably it talked is Definitely, right good the generally. would a little in bit flat. you

up X% two X%. leading think really a Policies little that I pieces. written revenue. actually gross think our bit is What's revenue. more up we're are future as X%. of indicator premium, on it's up probably It's a And of year-to-date exciting

property our then up XX% So business year-to-date, is is significant part stable. portfolio of obviously company relatively pretty management which the renters is the growth. And affinity

improve affinity slowly business expect time. over that to We

last quarters to the business in of side We shown double-igit for the really X continue. business. our momentum the We've the expect straight. growth PMC We like

think incredibly been in ways we'll not I market positioned. continues be We've as drive I our participating certainly think set but time. to we're that And in products, to find our over growth, platforms. just in the investing up we're

Barnidge question comes Sandler. next Our with from John Piper

X from improvements, the been your underwriting to How Global do over expense consistent view it There's combined on in appears question ratio but has not is the the been last just achieved you ratio combined quarters. view how I'd Housing ratio. that on long-term the combined long-term leverage My you you take targeted. profitability business, love get to guide? be first achieved

You bet.

showing no management, technology scale certainly a of of think around for There's cat had ratio to non-cat I efficiency amount points through things, XXs. a and the the in losses use way mid-XXs about expense around a we think business, and doubt high XX%. X up. And We of is the driving other think combined business. loss tremendous a the expenses about and lot we've it's about demonstrated discipline then of right it's

our is the I longer points grown business proud we've expense that business, flow as incredibly are to term, benefits feel that XX% up are and seeing through AIVs up business. the of mid-XXs more you about expense leverage say, then So I the you're we on that mean policies than of XXX look generally think X% back. growth line. basis of and combined year-over-year. way if would of But the the

we've it's and fortunate performing team that incredibly we've the So that got very well got.

And to important really I investments those with for new that's you're the customer scale, us. we that's ratio making why would our really us it's the that just been all you some last combination others as driven the great amazing differentiate add, I of digital few seeing we're I in paying expense that of is an years, then And been that we're well. us really investments really think doing an platforms. making, And win technology journey. are AI clients industry. really And we've it's story the it's the really enhancements a think enabling one, delivered incredible experience through and made off the versus and sustainable by also also integration it's and When take over

seemed But I level million, of quantify delivered to My period think for you the have impacted Telstra, Living? investment called a Lifestyle quarter investment. that the Spectrum on you Telstra growth, $X.X to Connected for the really generally, there's of business. is unit Global EBITDA program a able and follow-up Are Spectrum in launching, question ahead out nice there. of

You bet.

is the of level investment. to I quantify think tried we've overall what

of line investment of second the million being about that the $X about million half talked the year-to-date, about in in think about of maintained kind $XX quarter, million as the we first So we $X and incremental trend second year. think quarter

way market. about think at those no So the necessarily And we're that's the excited opportunities grow to to not in both client probably about doubt the of level. easiest there's it,

up took which the over the We with step business in-force is a second certainly at counts. Telstra, subscriber in there's And quarter terrific.

gave from us we're rate the second start program a the subs. more normalized embedded as a subscribers of terms well then we and now in to step-up of So a pretty existing part with period growth. place quarter, the top-tier actually plan, of is because robust in in And that Spectrum in

notice, million you'll that counts generated the think declines I that several of subscriber $X.X separating incremental net What growth we in even we if unpack quarters is the about, you metric. and actually that's following talked

pleased really certainly these with continue go from continue, but and two expect to but we're forward. just that the to clients not subscribers level, that the underlying at growth around So performance as not growth we with

Tommy from Our [Operator McJoynt KBW. Instructions] comes next question from

if offsetting, I I much in higher auto investment guess, the investments guess of EBITDA are. duration know do bottom those sure you otherwise, not I'm segment. core How And weakness income investment is what just the what the line of is call percentage basically income. over is increases But earn next I'll autos what line come thinking there the meaningfully before bottom work about? a short-term risk be on risk year gets and in. Is rate any doing auto's that you're that all that the to fits we that should down potentially a rates chance

Yes.

I we're a terms good in investment Tommy. think in of income, position

duration on a portfolio. We've portfolio. investment our got X Our high-quality years is very about

yield the book is up quarter, last up Our over to points XX basis $X.XX.

little than still New a that. money higher yields bit are

income. outlook investment stand investment we certain also So some and year share about we clients, in remainder with the good And of where our then of overall, the we for feel income. terms

little -- So there's us extent some the with a interest a of actually that clients. there for to the down natural offset go it rates then bit,

the term. short big So impact of overall, an not in as

next comes America. Grace Bank question with from Our of Carter

Can hear me? you all

can. Yes, we

Perfect. Okay.

wondering So question. was the auto on risk I

just the to the you the just quarters. that work across the segment the have think you best of historically, X/X done to the be past curious I of the overall, about several said retain I in over think lifestyle book that all book. that if given you've continues auto way risk was kind about

Yes.

clients. to I a think the maybe the it's deals lot auto generally we the of at it retain A within bit little with business lifestyle the the less reinsured are it right way and about on dealer side. a bit think various may of level, little --

a handful So of on do we nice to -- side, And so VSC with the overall, think about manageable. the as pressure it. think, way but clients, it's somewhat good that's it's the thing a think about auto, I

the with with couple is the seen, to over to activity partners of and trying last to meaningful rate the adjustments. And ship. We're you've to years traction only as right amount XX right clients make work a X of try increases X

much allows do because quite feel be it's that to So more it I concentrated. manageable like

I Hurricane remainder guess Beryl also repurchases expecting but higher be mentioned you year, for losses the how And for guidance of gave us up. the shaping some might

of than an year? you hurricane Just you And season, rather gives repurchases expect about given confidence more the active those for towards the to the remainder we XQ? can the just of of talk hurricane given kind be kind if of weighted increase season, the XQ for seasonality outlook the for to forecast should what

Yes.

So get really and continued to I we've reinsurance all, capital of from just strong we first strengthen position, our think, confidence the our program.

So we half about feel good how positioned year. we the into of are really going back the

record have to very of you completed a also already strong businesses. the strong think we've of buybacks. million shareholders. that deploying And portfolio track we highlight, back Grace, I generation our $XXX And the flow of capital cash of

on $XXX be that the that see to think there. the higher of to we deliver end reason case, and guidance to million we our And don't we're And range. I any going pace why wouldn't that's why raised $XXX I be million think

So to to in of a overall, we allows be I is type where us it and think want operate of strength. position being capital position from this exactly

from last Our coming is Hughes question with Mark Securities. Truist

kind I'm your million, elevated was of year-over-year. big this that Housing, going fee a quite Is we properly, to strong Is unusual quarter. said jump Global talk about it I the that? you Could looking In fees? Anything if at think continue? $XX this income there?

Yes.

there a it really fee was and business income all the change Mark, fee And made. reclassification between a our was in was income, was, that lines. So expense

So line no movement bottom and between P&L the just income line. impact, fee expenses

Yes.

about I'm in you talked impact then statement? transition that, whether And that said about Okay. the second import not sure could the you what more was of housing anything client half. that a but

Yes.

as of we've over some there's lot ongoing the times, certain in the market, course the et see roll activity cetera. And making within year. a the half of roll loans, portfolios -- movement of different the got said acquisitions on buying portfolios we'll what certain at is clients lender-placed And So of back that we've on books are business. off,

expectation our second year. say think is would about half policy stable the I overall, of for relatively But the counts as we

performance And the pickups across questions, to of a we other other if just try but be materials, respect me maybe have some wrap different relative So a variety one economic will put by do very of transition we cycles. portfolios. And then any and record losses track strong emphasis it no that offset with driving to think for in have comment final I we then we up. to can

so And in guidance, XXXX, so per of And than we we're year. over proud CAGR the same we've EBITDA Excited to period. guidance. raised last certainly years. far over the the XX% since XX% poised We're actually X the the about materials, this growth current share double a absolute we're deliver to with what delivered on as more going earnings that X-year average with highlighted

of of behind proud We've be and business. got just talk quarters. the about But new the of working a launches, We're future number momentum wins. other track on in client We're a a showing again, incredibly excited number sits we'll shareholder lot that to driving in we're again, us. new growth value. creating things So that record of that with

to next and call. together much. our back forward Thanks in after look we'll So the November appreciate get time. the very QX We'll really

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