Globe Life (GL) 22 Oct 202020 Q3 Earnings call transcript

Good day and welcome to the Globe Life Inc’s Third Quarter 2020 Earnings Release Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Mike Majors, Executive Vice President, Administration and Investor Relations. Please go ahead, sir.

you. Thank everyone. morning, Good

today Officers; Coleman Financial Frank our Brian call our Officer; Larry Co-Chief Mitchell, Counsel. Executive Svoboda, General are the and Gary Hutchison, and Joining our Chief

your SEC. any of yesterday our questions the are Some file along for purposes the with refer guidance subsequent XXXX on Accordingly, general or with release third comments answers quarter provided may forward-looking earnings Forms statements our XX-Q contain that please to and only. XX-K to we issued

Some may and Please site measures. terms comments the of our for see to Coleman. turn reconciliations these measures. our call non-GAAP contain also Gary over of earnings GAAP Web release now and to I'll discussion

Good you, morning everyone. Mike. Thank

gains ago. With since crisis. and premium the while margin persistency share share and the book down to business ago. $XXX to, quarter operations the to in smooth. In a First, share was income respect $X.XX [Technical was underwriting of net running and life share excluding our premium company increased $X.XX In income operations, was revenue I year we've will XX%, GAAP point conduct share operating was X.X% for Difficulty] that million are X% our onset on third out $XXX per million improved to Net equity million reported or compared the was $XX.XX. book $XX.XX, of per on basis X% quarter increase value million share grew a was per per been $XXX $XXX return ago. from or effectively per a unrealized return the continues On revenue, to XX.X% collections $X.XX year or a year a premium see pleased million value life equity insurance X% $XXX per

related decline COVID-XX. incurred margin approximately million primarily is to due However, claims $XX to the in of

our COVID-XX million to underwriting The decline health costs. is the For approximately expected margin primarily X%, life million life claims In grow X% premium in claims. year. X% approximately to At of we XX% $XX the we to lower due million. impact primarily midpoint while and anticipate underwriting margin COVID-XX expect guidance, premium of in year, due to grew revenue full to to $XX margin revenue for $XXX health to underwriting increase was X% the up insurance the acquisition

were operating we and the For X% quarter revenues XX% help grow for up the ago. grow expect a to X% from expenses year, underwriting $XX approximately to to XX%. margin million Administrative year

administrative a expenses compared year X.X% As a X.X% were of to premium ago. percentage

to on year, the we I'll third administrative Larry For for to turn expect call the his business full now operations. comments marketing grow the quarter around X%. over

Thank you, Gary.

quarter direct sales adapted agencies are thriving and they to virtual sales with are and We recruiting, pleased to the grew channels have consumer the this all in environment. across third sales appointments

Additionally, centers in to were person will in conducting distribution I channel. each American premiums agent licensing have now $XXX sales some up current certain opened at discuss were life million. X% At trends income and situations.

X,XXX. $XX of the were primarily from margin quarter was count $XXX increased sales third second ago The XX% and The the at for up XX% third up The Our the the million. quarter sales up end the year count. X,XXX life in at quarter count was million agent from producing quarter. agent was is producing life net life agent underwriting average flat to XX%. Net increase due

higher lower X% primarily to premiums underwriting were life in to We Liberty X% to up margin increased National, due pool continue million. to to levels. claims candidates, of our to sales $XX see due to COVID-XX. a underwriting is margin life $XX down million, $XX unemployment current was million. significant related Net XX% At part The

quarter. quarter The the the at agent second entered year up ago $X were from X,XXX. The sales quarter count X,XXX the X% the quarter. third for million and X% average agent health National X% quarter was producing from of Liberty net producing Our ago of down the year up from count

$XX We This of and related growth certain premiums COVID-XX. increase relaxation $XX due to environment a in return up primarily million. future. allowed in continued in were have to sales agent XX% sales health net million. health in decrease to recruiting increased practices The $XX adoption increase is of to recruiting due underwriting primarily methods. XX% Heritage Net count. is opportunities to claims the margin agents for XX% the XX% quarter and agent quarter underwriting was from virtual to the virtual producing Family count X,XXX. also health has ago margin up quarter, the some second able continued in up also of selling million quarter. seen to has X,XXX at to year local addition the agent X% producing person The count average supporting restrictions presentations provided be third abundant increased the for increased from At was to The the agent and to end The

heritage with agent successfully from adapt continues to as pleased to family are results We the its this environment.

discuss up division consumer and in ago to margin quarter. the his sales life Globe up third Life, at premiums life $XXX were million, XX% comments. XX% quarter margin $XX while year million decline Frank $XX will underwriting from X% million. Net to direct to the declined underwriting were further life Our

end to premiums to highly sales of the towards in and protection. $XX As to the were costs. health and primarily heavily volatile Agency up million year of margin increase sales $XX margin a XX% difficult activity to sales health highlight At XX% The always we underwriting is proven XX% quarter. million, Group the predict year. the were with increased Application in all to for is lower said last across are while true on the marketplace. American even generally And basic channels. direct this sales General Net underwriting acquisition pandemic. insurance need health million. this due life $XXX competitive is down Medicare It are increased call external crisis United compared weighted times more ago

I'll uncertain business provide and environment, is activity it on to Although our based this now difficult still trends. current of in projections sales knowledge predict

agent expect National end the to each expected are to XXXX be an follows; an to producing agency X,XXX increase Liberty to for income for of of as of We income to XXXX X%. at full X,XXX, life ranges. in Family the increase Heritage following be X% sales the X,XXX, count X,XXX Net the year American X,XXX. X,XXX to American

XXXX full of to X% the increase X%. an increase to National of Liberty increase of of XXXX. a full For year the decrease year X%. for an XX%. an

an to consumer XXXX year X%. increase year of Direct the XXXX of full an X% increase to increase For to of XX%. of an XX% full increase for the an

decrease decrease an to an health are X%. of of XX%. a expected For to the full full sales increase year to be X% as XXXX, year the Net for X% of increase National a follows; XXXX Liberty of

the an XXXX, X% increase heritage of X%. For the to increase year X% for X% full of to year an full an of XXXX increase the an increase and of

for a turn year flat of decrease For increase of Individual an the increase Medicare for call full supplement now a XX% decrease full of United I X%. year the Gary. year increase XXXX to X% XXXX XX%. XXXX an full will an X% the American the of back of to to to

million on we debt the declined less excess per income required share over the X% $XX quarter. as X%. reflecting ago net policy On a repurchase basis income income net investment which Thanks, define share of investment and our liabilities was Larry. interest decrease an year Excess impact program investment

a excess per investment we and year, full to down income expect basis. the share be X% about For X% in about on dollars down

Next We average invested fixed years. average primarily of at invested average in and life at an in our yield of $XXX X.XX% yield, in investment sectors. an third quarter, municipal, maturities of XX the the to financial industrial we rating investment A+ million an grade

was yield the in the the entire points of third XX basis from portfolio, the yield For X.XX% down third XXXX. quarter quarter

As of assets billion billion, were fixed $XX.X the maturities approximately at XX, Invested including yield cost. portfolio $XX.X amortized of September was X.XX%.

grade to compared rating compared are and For investment with X.X% maturities bonds to Percentage XX X.X% at the average below bonds fixed million June XX. $XXX to $XXX at maturities are fixed grade an A- below billion June of XX. investment is investment grade million

fixed net had or XXXX. ago. BBB We portfolio investment at about of of the maturity a a Overall, unrealized portfolio XX% portfolio of total gains rated net end to fixed equity the the is and the A- portfolio below year percentage maturity grade is of right unrealized maturity billion. compared Bonds from plus, bonds same as XX%. gains Excluding BBB at fixed $X.X

line market, peers. overall the this with our relative is While high it to is ratio in bond

BBB of markets. CLOs sector. that derivatives, issuer rates risk adjusted securities and or exposure true This fluctuations to interest to However, the process or long, the risk in no provide is to believe residential that acquire We ability using due invest must the hold is securities our we in backed little adjusted maturity, to equities, large the multiple equity asset investment particularly securities. mortgages, other cycles. Because have criteria to an key assets our have part and survive we ability in capital we energy returns regardless best as higher

well vulnerable to weighted is that across and to prices. issuers diversified energy Our depressed sectors less portfolio heavily commodity It sub is are due issuers.

are exploration sector. XX% approximately is The X% sector of production previously, XX% our at our service holdings portfolios remaining in refiner the the in oilfield and sectors. discussed we’ve was of As the the midstream in and

We portfolio our value essentially have was unchanged sector. no during $XX the increased The quarter energy fair the approximately exposure composition million. in the of and drilling third

no with our have comfortable holdings. we we this holdings our sector, While to current intent increase in energy are

and we're average around rate X.XX% money to Finally, full pressure income. these a and with that in quarter lower XXXX. our XXXX. an year XXXX fourth new investment interest of the the annual weighted X.X% portfolio X.X% yield the around on in be in guidance, That new rates average of money midpoint rates continue for X.XX% At around to of assuming

non-interest interest rates accounting sheets protection of investment turnover the expect environment. years. statutory And While since an we less the rates money next will not have impact in we current products. rates higher a see average can fortunately, Extended than over on somewhat rate per our or new lower interest sensitive in impact to the going interest low prolonged year would thrive is portfolio to X% rule sell as five investment the limited of like forward, Globe our we lower income to Life balance under GAAP

call liquidity. Frank comments and his the on for turn I'll capital to Now, over

Gary. Thanks,

its than minutes to of cash shares liquidity to parent at quarter more spent repurchase discussing through million September cash the acquire our is million through few the spent average $XXX $XXX since resumed I third the repurchase we amount First, $XXX want million available year of million $XX.XX. of program, with for a September full position. Globe company In end million million. an to $XXX we share million assets X average approximately program. our through of parent price of liquid funds increase million quarter, and third X.X capital less buy spend company the flow August, the share The repurchases borrowed price net the than In have This Life at end share the in excess than quarter, to of due to shares normal, That's December $XX.XX. of higher $XXX being third and $XXX available of XX. parent the a an

million. excess parent of for Life remainder rate of $XXX we flow additional XXXX. the interest the the for third at we on our parent for remainder the received the subsidiaries these it to we the shareholders. to during its to define million results from end liquid common flow have available the assets, paid anticipate around at fourth by cash expect The addition $XXX cash dividends and dividends generate Thus, current quarter flow its primarily approximate paid assets debt million will company parent from the still In excess Keeping Globe liquid company's level the be $XX quarter, the the parent the available dividend the company's parent to cash of less year. as the the of excess of remainder including this year, company

assets I'll the and in targeted detail repurchase As necessary just liquid to our support we maintain more the believe insurance is in discuss levels than more within few a capital moments, share program. the in operations million $XXX

and this long-term a As senior with of The along used our previously levels. issued note normal the with holding a company XX-year the reduce noted, X.XX%. short-term $XXX during company million the of offering were during the at by $XXX cash yield to more quarter million indebtedness proceeds to quarter, over debt other

facility credit million XXXX. $XXX new a through August our negotiated with successfully banks we addition, In last of that

liquidity regarding levels our Now at subsidiaries. and insurance capital

be to navigate With to payments focused are liquidity, with to ability life do course environment, parent all of issues insurance lower current fund higher company dividends expect very payable over operations. payments. and continue to the are insurance our continue expected operating keenly the strong. this our liquidity on not largely insurance XXXX. premium see year, we these offset We to we capital collections while general, COVID-related by cash to with remainder the higher be we claims remaining and As do any respect the health higher to companies flows during In claim of the claim

ratio consolidated capital insurance would approximately amount the subsidiaries XX, be Life our capital, our our with have earlier parent required into of of fund the the occurred $XXX ratio the available approximately respect on have level in discussed over the point was target of with to to end we target estimate to range At we consolidated future quarter, declined RBC XXXX, XXX%, to consolidated an XXX% December third losses highest At Now million RBC and capital million calls, over of the excess to available assets downgrades the our of Globe that at credit RBC needs. assets This a Taking range. action capital, $XXX of the along company of liquid have only $XX our as ratio XXX%. XXX%. of this previously low-end XXX% ratio million account at of expect near provide through XXX%. the

than any other due investment drivers that As and will on the lower primary downgrades million anticipate credit investment are portfolio discussed before capital our income call, required to the losses to we parent due income additional last and COVID-XX related needs be or $XX realized statutory of defaults income XXXX the capital. gains lower time, that from increase statutory factors, we this approximately of impact scenarios we losses At statutory lower that several XXXX. portfolio, downgrades $XX into capital to the consensus timing portfolio. of on our the up and and losses bottoms strength investment million views particular and such on economic of modeled in investment potential the views To eventual the impact recovery within our application on a recession, take estimate the have account holdings the our

this experienced now evaluated as RBC rates transition default from and of levels well published we additional of as Moody's reduced account from million rates noted the our ratio. will all Taking XX we've RBC experience these an to requiring $XXX the maintain million as RBC of estimate impact additional should XXXX. default to a be available XXXX range be this the capital into required in in end transition of capital by needed to Even the are analyzed our year. XXX% of expected to of points, this XXXX, parent to below at should also that by occur same would a and It if defaults end and XXXX XXXX is end company. portion have XXXX these capital the various not as We XX be amount amount was models, needed the currently, of well year liquidity after ratios downgrades we ratios and the and the to all XX as

billion fixed third experienced X.X for total our products. to Life negatively given million purposes Our approximately quarter, rates not low It of by downgrades in and protection from Through plus reserves our to in losses, approximately reporting statutory basic after note interest the base $XX credit is mostly NAIC-X. assumes Globe statutory case million the equity fixed tax $XX impacted maturity NAIC-X million the portfolio. the have markets or to $XXX downgrades losses important of we category are

our all strong our COVID-XX the comments our At results. third are on to of under a Given cash products, this underwriting more reserves scenarios. I'd impact time, flow margin to quarter relating statutory in like the than testing adequate provide few

policy Larry, These due to our distributions by primarily Liberty both during obligations. life Direct declines quarter. at higher margins Consumer and National COVID-XX noted underwriting are to declined As the and

would Consumer these we In Direct deaths Liberty were quarter, additional additional year Consumers losses, to year-to-date. the over estimate claims that Direct $X million incurred the National total quarter. our $XX an XX% the COVID losses, the an absent additional have would losses and and been and quarter. quarter of margin our COVID XX% X%. quarter underwriting premium Absent related to been from $XX operations, third distribution, margin the by underwriting total for million premium obligations for life Liberty During been the to for ago total incurred estimated Absent approximately million. In and to would have or due additional approximately that XX.X% have National margin and grown versus the policy ago of underwriting approximately their million premium we have the $XX our estimate X% incurred these in the quarter up life flat would year COVID,

for to and respect our with earnings guidance XXXX. Finally, XXXX

income $X.XX operating XX, per year net $X.XX projecting of December is $X are The ending be XXXX. the prior share midpoint consistent with the will range We quarters in guidance. for to

to than in obligations I'll deaths expect do As in higher moment, policy discuss U.S. we anticipated the in projected a XXXX higher previously COVID-related due life

lower an approximately we On our life guidance, However, $XX expenses, assumed higher expect around our claims to higher COVID-XX on deaths. our repurchases the midpoint and assumption of of related by be the million we midpoint the previously offset claims last than of higher indicated share at to XXX,XXX call, of premiums, anticipated. guidance

incur to we of for will U.S. XX,XXX million $X COVID-related continue every life that claims approximately estimate We deaths.

approximately for higher claims, our respect United of estimate life our due COVID, approximately supplemental a than into benefits at underwriting related $XX for percentage estimate higher lower approximately our XXXX, reflecting we health million related the should COVID our claims to midpoint we million in previously to estimate guidance, XXX,XXX for similar the at full year similar what at expectation beginning States for Absent health the the the COVID now The deaths the premium of COVID to the the health percentage approximately of the of to to margin XXXX midpoint. as account underwriting we all life margin than an However, we the year will be on Taking anticipated. of XXXX percentage With percentage COVID increase of $X expected expect a the for obligations, the year call. would of higher XX.X% last underwriting XX.X%. policy be premium approximately as margin year obligations, the full full life our XXXX to be XXXX. life

For operating increase XXXX, projecting range the midpoint we The net will the XXXX share from in a are is to per $X.XX $X.XX be X% $X.XX. income of midpoint.

of We including claims COVID-related The the comments. my Obviously, uncertainty. the claims. this our to million vaccines. effective benefit no health approximately of Those and guidance anticipating the of will our are lower range in development are midpoint of additional on I larger at therapies amount in XXXX call Larry. back depend with normal many will claims for reflects life XXXX the guidance turn factors, the now significant expected $XX from COVID-related

our Thank you, Frank. Those are comments.

open the now up for will We call questions.

And question comes Instructions] our sir. [Operator first Kligerman. from Andrew Please go you. ahead, Thank

the income, American Difficulty] up just to question XX% kind National roughly expectations, of where outlook. growth the I at your Liberty you're and wanted Difficulty] sales looking X% after [Technical a with in in [Technical I’m to on sales start XX%. year a

be said based is So, color you've ‘XX gap given, on mean, Difficulty]? more why you [Technical numbers strong on maybe guided a should these little there a actually quite I

clearest. First I the of answer apologize question. try will your audio I and the all, wasn't

we why maybe asked to I the quite I your strong in you as ’XX, ‘XX as aren't are sales think answer to that’s think predicting question.

call enabling it. the just in looks on direct that lines that about they're and talked strong how and very and More and are the qualities virtual around ‘XX, probably of know the it what very you strong that agencies my well, recruiting like closing a a little view both to in got that are consumer, in they the

I that. wanted on a So little more clarity just

you. Thank

you were going was, I to third I be Consumer, Direct so Consumer, first, think to question rate not followed it's XX% forward. Your likely sales as it think to we're up the at Direct expansion have and why the the quarter in strong going ‘XX.

increased as basic large three the XXXX this last least expect However, the level XXXX on that's insurance of challenging of remainder for increased and The life of I growth the likely even more XXXX, protection. first we sales sales at its likely full increases agencies, on and XXXX. think do Life three we're demand In in of quarters through midyear the really to very given quarter based seeing we in a Health the both have sales. sales through pandemic is we demand continue again, that and think positive year, strong the the XXXX, respect see Insurance it’s to have or for impact whether we the

I and the with recruiting think that in the challenge back if restrictions during place. agency come in a be emphasis can sales the the uncertainly pandemic, is

offset can recruiting and our of we virtual to However, sales. use of those challenges some

Okay.

adverse In a adverse of from or naturally putting controls those of you about you April COVID-XX, a you've wrote, talk say, But -- up and income. underwriting in in to you from both margin, prevent maybe mentioned. claims from little could this business done pick what pressure March American selection place consumer, direct point present, terms the that to to the you of in bit vantage saw selection the on environment,

said you million the portion to have on Liberty. that from, written of of think Consumer, million business claims COVID those from in for in Direct that. April I come claims might XX X In

the address experience. will actual question, I part which the the first of which I'll underwriting question, have is answer process, part the second of the is Frank your

being, really issued the the basis. policy who demographics, older underwriting additional any our face on provide amounts stopped with existing coverage of policyholders for is have that At We we've stop we same older issuing -- issuing conditions. For maximum demographics, a haven't groups. studied March, What were certain by either the business started they health applicants weekly age temporarily time we time to once the business ages, ages. in and other also geography, shift the seen a eliminated departments

So additional we development. occurring. steps additional selection steps taken the adverse that's those terms We this rest we've it's we consistent of if do mix. don't and some Frank, you And want take saw think to question? in think product there's are we answer of

claims we paid as I’ll we right thing, a Yes. that with $XX,XXX. actually March the an is amount with the is at in most respect in about since have now, XX% And have add and that above. October susceptible XX age about of COVID we've we older above as ages. the for around only juvenile one XX% fact, respect or to seen age increase incurred, enforce we in actually about block through probably have about X, in of we've claims look X% claims XX are over policies our XX, ages. claims enforce to And the XX% at applications been And at XX. And our we when as we And have of to look the and we are of eight ages our before those older issued when XXXX. know, totaling issued whole,

our first of of blocks. or entire the about really will claims been of coming say So are of that were roughly the well distribution not claims throughout two-thirds significant policies year. that we've our since policy we And kind any claims have from two-thirds, I is really earlier. probably writing any issued XXXX, in seen, the pretty on that

of they've -- so a are And them -- policies obviously our older really older… in lot

Thank you.

question next Our from Jimmy Bhullar. go comes Please ahead.

the in on that They expense get health the the and ratios and quarters. for a outlook lower that's persistency your businesses. idea wanted is, had to I ratios or it's than what few else were an on in next I First, and in expense whether question life your both past something driving

the reduced certainly expenses is reason Jimmy persistency. in due side. the the to life primary true That's increased the for

we a also the increase premium side, true, rate on drive UIGA, also health implemented this the the which have down. but year, it's expense On helps for

looking life XX% pronounced I premium lower side, at more think last in year, had the slightly year. we'll of be and on to the health of year than of being premium for the amortization, just are terms we on be XX% what more versus we it'll amortization side, last where the

on little reality, with slightly sort reason And persistency, concerned that persistency, if the still drop economy were And economy, concerns next off the this What's of it's earlier a in entering view and or your a the might there drop that then bit actually off. of gotten year the better. for weaker weaker about you gets you see year? on this are the year,

talked Well, I worsens haven't think we've an though. we it if improvement that large possibility that We've And about but part we think still that, that seen see in and yet. actually the persistency. economy it seen we that's due

need premiums, and people keep collections. because insurance before a we positive next seen higher While We've seen and have reduction saw. pandemic why recognize are sure making for our life we've people in force. for in more people policy it continue year, improvement that's [indiscernible] we expect before, pandemic so premium borrowing the But we're in that it's sales, delay then also they this into asked seeing been think to in that

versus lastly how the the deterioration Okay. of need credit? risk front And the and you terms in then just of of on, some sort advantage of price to stock capital, given in a buybacks preserve ending are of lower the thinking potentially taking

the million would year. price the we're And where all kind I to would get flows Jimmy. to of our just remainder get consider utilize look of happens million, to We'll able investment anticipate excess to cash buybacks but to continuing see a $XXX that may stock year, I that for comfortable our how some from and have utilize for for feel We'll say we of being we end these in close this really for XXXX, take remainder year. $XXX the to which if perhaps, flows comfortable as happens of with that, the the to our would right us the somewhere we what of excess cash excess we’d be What flows. remainder of the now, would year, to that portfolio? point cash economy, the the really we Yes, XXX accelerate the a up with say through on year, price? with again,

And comes from our John go next Barnidge. question ahead. you. Please Thank

does guidance, How in XX deaths for assume in imagine, million XXXX that? I life an improved probably claims the in therapeutics there's assumption embedded many as

million, same deaths. of were Yes. for X rule every U.S. for that thumb We of using kind that about XX,XXX

have deaths, kind of we're and estimating XXX to kind around So of of that midpoint XXX. at range, a that kind XXX,XXX

the So relate XX around to into supposes continues And XXX,XXX the that, over the but the deaths that just quarter of and it in the of really, second year. kind on deaths we is third to into of continue trend continue kind does decline and time, what that continue year. daily average would to that even that have

why I general present there And concern no then, life assumed in can be over because health claims follow infectious Medicare Okay. how curious I XXXX utilization wasn't U.S. asked up. see there's previously. disease in that impact, secular there's supplemental my assumed in a benefit could the an COVID since decline given it

Yes.

around really is we see time the that don't what -- sup claims to in I think really point we especially at normal. utilization -- anticipate from the we non-med getting this back

traditional closures for both more back that just without if appointments I really getting seeing you of normal kind of any of expecting well and and substandard not are a the to But will as med clinics procedures. anticipate claims catch medical we kind sub type missed services. We think of would as up, levels such

you. Thank

Erik Please from comes question next Bass. go ahead. Our

assuming what that follow business, So underwriting you acquisition XXXX? are And you Maybe some question would had is an that mentioned on into expect to up year? lower for margin costs? health in continue just the John's to on you something next

Yes. Are or talking whole? health just the med the you -- a sub about on business as business,

a The level margin wise? health kind of what of you're business percentage assuming underwriting just as whole,

the be XXXX. and range relatively that to close, same that range should Yes, assuming, of XX% all for XX% of in in kind

and life assuming premiums terms ‘XX I you're apologies, then And you. in missed the guidance? both you outlook health thank year-over-year for bit, give Okay, did your in if the growth that of a for

looking the over at increase at health in premiums. of midpoint looking and premiums X% increase in the little We're a a life about we're guidance, Yes. X%

of can about stair new think agent sort that just you talked pattern of agents at historically, what should lot you. Thank kind Is Or of in bring a how this and a recruiting. when then, bit. out know, the if just then in you tends kind into to ‘XX little going we about one a expect more I count would point? squeeze that? flatten of you've I seeing And step on

expect a count. process, be agent will an we I step And have think to stair increased

place. higher recruiting. And addition takes that also management, While year-to-date. middle managers We've [indiscernible] had responsible middle middle are is recruiting the growing XX% real -- of really in American income for a income much

So reach increase think middle of recruiting we'll the I number recruits. to us greater virtual XX% in Also, management, allowed see into a recruiting XXXX. strong has possible

contributed to owners, additional added these Finally, options in XX in XXXX have approximately agents. XXXX, the increase American new agency and income

typically I be it's to increases while step a stair we'll think XXXX. in have still process, So

ahead, you. from Krueger. question sir. go our comes Please Thank next Ryan And

would margin you if what business? if claims for could life XXXX, in have -- outlook then the percentage insurance you assumption for be excluded next your for provide year? you your it, the it COVID For terms And

Yes, Ryan.

and the is around in margin, anticipate around XX%, be for it the will there. XX% benefits XX.X% life expect For it what COVID the we be without we'd total to

EPS Got it. claims. million In the XXX XX the includes your guidance midpoint that COVID of of of

did at almost you of kind $X.XX claims? if higher not be COVID would it those So project

That includes correct. midpoint The million. XX is the

last one, but the for XXXX? dollars And then think one in investment yield excess are assumption, your income you expectations provided what I growth for just Thanks.

be ’XX, midpoint expecting excess for of investment guidance we're flat. income to the our At

We to have in investment improvement going income. offset liabilities. interest additional That's the be will by the policy on

virtually, it'll per around So up standpoint, somewhere a from a X%. from standpoint, X% it'll be be flat dollar share or

you. Thank

go Our next Gallagher. comes from question Tom Please ahead.

that health Just benefit benefit? favorable assume that continue a of you into assuming fully quarter, amortization follow we fade on this the some XXXX? lower should up deck persistency, will in Or are persistency the

taken we assume through be in And it's that's [indiscernible]. going XXXX. been normal more over revert we'll probably think Well, But to to into back I trend. consideration see time,

as what's awareness Is need to that improve as what's views any improved over Got particular any insurance persistency? been views that to or health driving you. for And driving it consistency?

Yes.

think well we're saying for need the you to think life hit side the on on what I as it's insurance as similar I it, the insurance.

book LDTI question to ranges from And Got new would able value broader it? just you're of any impacts? FASB or GAAP on provide when you the would expect earnings on a it. And sense for you then, accounting that kind be impacted to changes, any if expected to expect any disclose

activities year. put side the some so bit, otherwise area as a be that to get the working hope as FASB Yes. start of would end would some next the and whether With extend -- the been looking quickly at XXXX, estimates at time looked able we the I towards in but preliminary of systems Obviously, did end beginning the able I of it's would impacts or XXXX, have to or, indications out be we've a as of the COVID, get and place the on maybe not in be at guess next ultimately we that to would we toward we it. get that been the of little putting But should guidance what our year still either say, some guidance gets it that that, accounting about year getting might we're through done some that. I again, be. progressing this of that would have to maybe new

it you. we Instructions] time. And [Operator questions appears have additional Thank at that this no

our we'll us you comments and morning. Okay. this talk next Thank Those you to quarter. again joining were for

concludes all this today's call. your And Thank for you participation.

disconnect. now may You