Globe Life (GL) 3 Feb 212020 Q4 Earnings call transcript

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

Thank you. everyone. morning, Good

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

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

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

Thank year-ago. you, $X.XX and was share per $X.XX income are was per reported running $X.XX operating this to value for equity Net basis, in COVID or like or X% return Mike, of environment, quarter, $XX.XX. $XXX increase $XXX share, efficiently. the million quarter the On per and was In our would a on operations fourth to from and net share effectively morning I a million per book company X.X% income share, by business that year-ago. GAAP or everyone. open million a to saying continues compared good a was $XXX share per conduct

losses million. $XX.XX. $XXX our to In life Excluding on equity premium maturities, XX% to increased per and fixed X% unrealized was gains value return insurance on grew XX.X% and share book revenue operations,

increase our the In X%. revenue life to underwriting to due decline grow As anticipate X% persistency $XXX is of approximately in $XX underwriting insurance improved health revenue margin and In X% claims. was At up XXXX, year-ago. Administrative $XX from due expect primarily and to we underwriting margin and The expenses. to down X% both claims. acquisition premium underwriting the $XX guidance, premium X%. to noted approximately margin to X% both persistency million premium margin premium COVID health XX% Life in from primarily quarter a of before, were of underwriting $XX margin crisis. have lower million for was the onset the margin Health up grow to we seen XXXX, around was million. we improved million The grew of since year-ago. and mid-point expect and $XXX million, expenses collections we a million COVID

Information due of X% X% expect As administrative we grow expenses to X.X% a to around administrative a premium, were and compared to and X.X% and gradual Security year-ago. Larry higher In I’ll and cost primarily in for turn operations. expenses marketing IT to higher of comments premium be percentage X.X% XXXX, call increase quarter costs, the travel to now a on pension the his fourth facilities over costs.

recruiting we'll before as Gary. enhance have the the The to growth. to virtually our more sell sales and in to ability generate We agents the recruit to than emerge stronger a in-person and believe generate ways ahead, I adjustments pandemic now both future you, result ability am and I customers as sales will activity. look Thank made of during crisis. the I optimistic from we've

X,XXX. X% producing quarter, and the up of agent we distribution average count. agent at for million. life X% quarter. primarily back the results I million, up trends net to count. fourth the quarter up end Income, at and was were was the were from Net to from agent will to sales life in up XX% third discuss quarter were count Looking increased margin to fourth agent quarter, in due the $XX see XX% sales At $XXX strong at $XXX underwriting we pleased each sales growth and as premiums life fourth American The producing life now increase continue The the was The year-ago with XX%. up is count X,XXX, channel. million

count. $XX and as economic X% lower margin million, to to health claims. We to recruit discuss at life underwriting quarter. $XX was in The of count the year-ago his continues while at million, Heritage, X% due Net due Globe life X% life direct million million current $XX $XX opportunity $XX acquisition to National's from XX% sales million, health virtual net the primarily COVID further At quarter to count, increased both margin lower increase The activities. our million. to life $XX sales expenses. up up the agent third letting. comments. to and fourth Heritage increased from health agent while X,XXX, up count quarter, sales the ability will quarter, XX% XX% sales producing methods up X,XXX, Net margin conduct quarter. life was end were encouraged the for The to underwriting million, due sales generate agent the million, X% to year-ago in to XX% due virtually underwriting ability quarter count sales recruiting margin life up increased is increase third recruiting the average underwriting was from XX% year-ago sales increased X,XXX. for up is persistency and $XX million. see declined The adapt the National net to increase of health is Liberty The environment. to was continue At Life, the quarter ability We're decline Liberty significant Family were ended for National, consumer our $X primarily margin premiums is sales increased were and average X% to to XX% by to from Frank due to premiums agent current down XX% Family were year-ago in fourth and were sales the at conditions and continued In and in premiums underwriting in X% continued margin million. while Net from up from primarily down quarter. increased the up $XXX quarter. at X% growth health to life worksite producing and agent $XX net underwriting the to count The to adoption The to improved quarter and Liberty X,XXX. division in-person. producing producing agent

$XXX demand health XX% is $XX predict We direct always Agency life to insurance At continue strong year-ago the supplement sales is marketplace sales, United United increased of to as It difficult to health persistency. health million increase consumer see American improved X% the protection increased highly and and and the in were margin XX% consumer quarter. American distribution. primarily margin all million. to underwriting increased underwriting basic Net across General The premium channels to premiums due to million, is down $XX Medicare competitive. to compared

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

count of in We X% producing Heritage ranges: National the each expect XX% growth; to X% the the Income of an Net an X% for following of Net a an full-year increase Income XXXX, an XXXX National are XX%; turn follows: the an to the of at for X% X% full-year the for to full-year the to of an to XX%; Individual agency be XX%; X% American to Liberty a trends of XXXX are to American of XXXX, agent sales Gary. Liberty for increase full-year for follows: to increase Liberty X%; to expected Heritage to increase to American expected a increase call X% health to increase of life XX% an an to of of an an I'll increase of Direct X% Family XXXX, trends of XXXX Life United Family the full-year X% for decrease be growth. increase Medicare consumer decrease increase be X%. end of back increase as sales National for the as full-year X% X%. supplement growth; to now XXXX,

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

per of the In and dollars investment per share year, XXXX, the municipal flat, invested $XXX we expect basis income life in A, excess million sectors. and financial on an rating to grade X% investment average in on fourth at investment in primarily was a In X.XX%, quarter, average of we be share years. X%. income X% and down a For basis. average fixed an excess the invested to but yield of declined X% We up XX maturities,

investing Partnerships, philosophy. in expected incremental investment acquisitions XX% we in our in investments to while other in These long-term primarily fixed instruments. with yield, investment continue line primarily While to maturities, still investments, conservative Limited our of invest XXXX were being credit generate additional are in total

fourth fixed assets entire and was fixed points with grade grade $XXX amortized Of of down fixed were maturity maturities of billion, yield portfolio XX basis X.XX%. as X.XX%, the XX, yield from Invested fourth $XX.X $XX.X approximately of And of quarter For December XXXX. the including the billion and portfolio, was The X.X%. to of September at billion below investment the bonds costs. million to maturities are maturities grade the bonds investment fixed XX. compared an million $XX.X $XXX percentage is average rating investment A- below quarter are

as bonds total maturity percentage are a gain the a Bonds equity maturity the from Overall, BBB rated is is unrealized of the at investment XXXX. as year-ago. grade of A- low the end the fixed portfolio portfolio, portfolio, Excluding same of net rated XX%. same as fixed the XX%

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

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

lower income. Finally, continue investment to interest pressure rates

going products. under is investment rules protection non-interest portfolio of to sheets we rates money over X% balance income on our average an impact less sell the since limited expect investment somewhat per in interest saturate accounting mid-point assume X.XX%. But maturity XXXX, or not we yield like thrive around see low rates a impact interest Global on fixed investments interest Extended higher Life the to at we can of For rate of will our the the new an as we sensitive years. of rates prolonged next than And rate fortunately, have lower our environment. the turnover in current guidance, to new forward, GAAP would year average lower five

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

Gary. Thanks,

want assets year share to $XX discussing position. capital a began The liquidity with and minutes available spend of I million. liquid First, few our repurchase the program, parent

liquid stock assets, the average on cash purchased million including In received flow debt, cash Life, addition The of in the the the of primarily parent shareholders. parent the shares dividends by the on of as parent to share compared -- quarter, a its company an fourth Life had with common excess from during in paid the Globe In dividends and hand define results beginning excess company $XXX excess X.X these subsidiaries million available of to of million at assets to $XXX from Inc. $XXX flow million $XXX we to parent total year, of the $XX.XX. cost it, the price Thus parent less the million at the cash generated paid we year. company's XXXX. Global XXXX the the flows interest

company shares, For acquire million of of the million at full-year, an spent we $XXX X.X share average $XX.XX. parent price cash to

third in our quarter parent million assets. liquid As call, the noted on the ended $XXX last with

As the cash million quarter. $XXX repurchases fourth used the parent share noted, just for of in

assets paper fourth addition, reduced $XXX the parent quarter. of The the million. with quarter commercial In ended liquid by $XX the holdings approximately its parent million during

parent the excess generate XXXX. flow forward, continue Looking cash to will in

liquid we been yet in of available XXXX. of range million the to excess not currently in including be have around assets expect and we in cash expect at hand earnings our XXXX the on to to statutory cash have parent million $XXX $XXX million. finalized, $XXX XXXX their X, to the While flow January million assets Thus, to $XXX

to I'll support in just this is share capital As levels operations few and necessary more moments, a detail repurchase maintain in targeted more the program. our insurance than discuss amount the within

the other the It primary currently noted repurchases will issue is alternatives. of substantial provide available be to expand the cash the as policies, should be that to information the return best use made parent shareholders noted during share as previous received new excess new repurchases continue parents' cash our well as As they use company operations our on acquire assets investments operational to to our insurance cash calls, a cash other flows. technology to efficiently versus possible. have and insurance anticipate by after future we'll from our needs. Thus, believe share capabilities We fund year to long duration we as

Now capital subsidiaries. insurance levels at our

Our goal is necessary levels to our to ratings. current our capital maintain support

As noted action Life level to in has range ratio on XXX% Globe company XXXX. the XXX% previous targeted consolidated calls, RBC for of a

to capital reflecting statutory ratio million. will not financial consolidated for our at of $XX mid-point XXXX $XX this finalized additional million the range, Although we RBC have XXXX be we our statements, that contributions anticipate of

targeted For XXXX, range. maintain RBC same we the intend to

portfolio, losses, expected estimates. $XX case the worst scenario, and need in liquidity over $XX million previous the rates downgrades parent underwriting note increase from our million to the reduced fixed continue more than by needs have the either increase statutory thus views account any whether In additional and that credit Life future credit statutory the capital of of aftertax or our $XXX months. basic or to required. markets additional that the amount between, the required aggregate, our a XX base less other products. something economic As impact now recession, course in reserves capital on the not downgrades the to on capital scenarios cover during our of company and million strength of or statutory discussed as target. given of the this as total the the of the testing reserves are capital million not amount model or driver from our economic $XXX $XX capital. This our impacted ratio to adverse that timing tests. same over stated this on minimum capital, XX maintain given to In case, bottoms-up changes equity all portfolio, take we well ample capital of investment billion downgrades potential our we impact expect that is particular primary rates our will over of is of we approximately the million It holdings reserves previous consensus impact current are require the recovery, and the the investment credit estimate than RBC stress is $X effect calls, due event $XXX a in target next potential to approximately the into downturn that insurance Regardless on such under the the In To of parent to is in margin Furthermore, protection on flow scenarios. our several income, important statutory million Globe that strong negatively estimate views do adequate low than our We our eventual to application products. lower interest losses range. XXX% interest companies cash in has

due than noted the Gary, declined million we the more due were These than by in million during COVID in the quarter projected. on life quarter, total As across call, obligations margins anticipated policy an lower to COVID-related by underwriting more the last estimated incurred of fourth to $XX deaths margins our $XX X% quarter. primarily U.S. had XX,XXX

losses, the consumers underwriting and the $XX would absent due consumer million incurred quarter, an direct COVID COVID, incurred for $X policy In estimated obligations quarter. distribution, underwriting During additional these XX% claims been margin Liberty to would million. XX% of have their have National direct Liberty additional in an to been additional quarter. Absent the margin the National of to for premium premium the

at our these total XXXX, COVID additional due of were beginning respect life comparable For slightly obligations operations, million. XX% health the million operations Absent losses, premium than approximately margin total our incurred year below across total the XXXX. to full-year the would our we With approximately have policy underwriting what health $XX expected of our lower life COVID. been to to $X were claims

last higher an relating our COVID call, on U.S. our $X.XX Finally, XXX,XXX deaths, death the U.S. we're income XXXX. benefits. $XX projections the included XX, mid-point On of to due of approximately with estimates will majority around of earnings share for XXXX, The year be the projecting life XXXX. The which in XXX,XXX range December mid-point is to net anticipated guidance $XX in for of COVID at expected life mid-point respect guidance to estimate previous ended $X.XX of mid-point per the $X.XX million operating of quarter than the to primarily first million our deaths. of our occur of COVID lower our $X.XX now approximately to are vast claim in claim guidance

the We estimate roughly we continue on of XXXX due the life for our our which factors, risk guidance depend vaccinated. including various in of comments are on of paid and reflects range Obviously, there. the my U.S. $X deaths. every that incur claims larger speed highest than population million effectiveness this segments of the COVID vaccines for many Those COVID-XX will amount uncertainty. the additional get death benefits The normal XX,XXX will to to at

to Now I'll turn Larry. the call back

you, Those Frank. are Thank comments. our

call for the open now questions. will We up

we'll KBW. Instructions]. question our from take with [Operator Krueger first And Ryan

COVID just outside it you like drivers of the detail morning. expectation been take any on If may looks to additional what there have your good EPS Can any mortality? COVID beyond provide amount I updated reduction guidance, COVID. Hi, of small a

trading a now. in just in than price Yes, higher higher right anticipated XXXX, share reflecting October, we what had are back price Sure. expecting we've average our we --

effect Income $X.XX little in overall a the just what slightly it ultimately. better a $X.XX maybe better, October. ultimately, then Liberty And back results, did the we bit have in buyback So to of American anticipated reduction underwriting $X.XX $X.XX probably and maybe really than better to

provide Got excess buyback, any buyback expectations continue for can XXXX, it. company, you the I on obviously at on there? thoughts parent levels thoughts your some And cash the then any you in have

using now that the flow whatever Yes, at anticipate just for we cash right company we parent Ryan, excess the global buybacks. generate

cash of $XXX to the year, on in need again, additional that's the at to through right as of far the our might now able capital we make there hold those levels million for that we what there. $XXX we'll if as range, in we'll redeploy excess work sitting sure we're to that So somewhere Well, to and million parent way company, other see fashion. some in then as

I last of like and persistency reversed in looks And generally in favorable in XXXX; that Thanks. it fourth Life has to direct one. quick just was one consumer. some had been favorable the quarter

in persistency So what expecting for curious XXXX? you're

we're that or mid-point or year the quarter, assume direct as levels. toward guidance, to the consumer just -- persistency we'll we -- end back we're better don't, get was -- in quarter. historical more is wasn't prior. still we've We're so quite XXXX not -- what of get over was that prior as the it'll as what got just back had In to we -- be Ryan, would I even second ever the was return had historically. our what and in But as what back far it a don't the XXXX I we we're just But guess we the persistency the when to to assume to prior in it as pandemic. whether third the going think I I Well, eventually in than XXXX. saw as fourth sure it good or been of that to it

Andrew question next our with take Kligerman Credit We'll Suisse. from

to underwriting then points at guess Income, XX.X%. XXX life Good to fell when I'm the morning. XX.X%. first look looking direct I to as basis American margins percent But question, basis we fell and a at points premiums it the in XX it only of consumer,

I'd be So like sense think two driving channels? I I color the have kind disparity the on -- these a of little answer what more between might but just of I a

portions well, overall little And of of bit within it did I business. their Liberty a -- has at then say the now. that you less most think, of populations Income, has American being younger impacted populations say population right the in a the ensures book exposure higher look to more portion some are When American generally little Income National of you to those exposure

is seeing higher -- the proportionally they a impact a overall just National So COVID. are from -- just Liberty

in consumer as direct well? Again to

have that little bit with underwriting done simplified American to in they underwriting, as their more their our have a of less has. of population National that or Liberty mortality little the to for whereas American closer bit direct Overall our do or population in little always and Liberty in American force it's processes insurers what old we -- we've Yes, old have National, a of, especially a to more X% higher bit And little policies just a and consumer Income, percentage also higher higher it's field about consumer. to direct it’s direct --it's direct At They business, bit about X.X% consumer, consumer in and their Income being relate American their American book an to in of the -- as -- above. than has so. nature older are anticipate simplified than of bit a not underwriting, Income, to to in-force as older income than little it's experience quite XX-year mortality, compared years X%. XX and at priced is are and

see. sense. makes That I

seems everything track. So that on

just curious, what you percent then, would So done what I the exclusive percent being sales face-to-face? there. color percent sales nothing and are versus some of channels, of in say as short margins, about your think virtually around -- What trends phenomenal producer

sales Only time, the data of are record electronically. our keep probably don't point the We virtual. XX% in applications would at I Income because this American all still distinguish, of estimate

really activity, other consumer where the a be will percentage at prefers it as and on don't closing to depending agencies. comes data really we go that We'll virtually rates, at important Well, around forward the what think sales we much sales capture larger reason the to we're would channel. preference. is it a down consumer that's look was what is be, show the two looking a you better than measure person, I

you I see. again, there that or revert pick see. that think then around demand XXXX? you out I protection products. any where know statistics up Makes to for And Are for Do seeing a sense. maybe just little come you're just back as demand I metrics color there metrics said earlier, you expect where will persistency of down will kind were in well? we based

we think for life I insurance demand expect levels. do do Well, pandemic to

we'll be should preference Only additional in-person. insurance, sales experience, demand demand, a pandemic. think I that's will agencies growth think also of that shows awareness will possibility by because the and consumer. for pre-COVID we of course, ability sell virtually the decreasing our there's of to are generate Currently, pandemic, both digital I which agents in and the offset than continued we middle the direct consumer for as think levels. management a importance agencies, both go-forward. current variants And the the increase our some I for the help to the be benefit see the life Well, of However, greater future it'd think

have not turns But been continue for and be that we just to seen they year. end would we people, end by country the haven't we year. I'd I'll the historical so families to do this to trends mentioned period this before, back -- a well through time. because I sure go do the many like I so to that because -- that that by would impacted of lapses it go this pandemic mentioned we've But persistency assume assumed like of that and Andrew, out averages the to the in a historical earlier it back reference premise many of that conservative, that we it this just could Andrew

our question with take we'll now And from Erik Research. Bass next Autonomous

you. thank Hi,

margin in bit, X% some I is your little XXXX. in income before think health expected to flat given a grow premiums XXXX, and implies the guidance of for X% lower underwriting had think margins, down benefits come which claims you the of to to

expect So continue at do are into XXXX? all, that the view you some you and benefits of changing to

we're obligation what in persistency, Erik, XXXX, expect lower policy But seeing of amortization. thinking coming cost, to think I we're probably could XX% year. lower we bit we're Well, be the little And acquisition XX% we because that were as than in XXXX premium less had seeing a improved XXXX. is XX% we'll standpoint same from be we -- the a in this around it

So that's -- margin. that's helping keeping that

overall, of is again, kind XX% that range expecting? in XX% to So the you're what

guidance, it I is of our think Yes, mid-point at XX%. right should -- be the this around

talked about limited more the long-term investments Got it. you color the you Thank you. little bit partnerships. And then I was just that hoping could maybe a give on

what could provide income? a in how accounting and in terms investment the Just little treated profile detail for of the these more you required capital hoping credit in bit on are they're

that investments. Sure. primarily Yes, most invest of these are long-term partnerships in limited credit-related

good mortgages that of through really, most of fixed those have duration, while. returns are on of also on long-term mortgages majority a and have gains, The income to made books There's that the we for long-term us prospects corporate designed credit those in gains, that to -- them that. generally capital that -- But kicking of -- the type well flow little that we've short-term a on to have very short-term you'll those Ultimately, years three like different long-term be loan are had these very Some periodic those out on difference then But are investment partnerships of as partnerships. what are normal opportunistic long-term partnerships credit between these will, basis, bit nature And to for return on side into participation as XX%. flow for ultimately, these of are that's from continue quarterly some the we distributions and at And that obtain a a it's maybe of in you the ultimately over range the than to from realized distributions some quarterly exposure are X% have potential get losses, generally X% target of maturities. of ratios. if look X% type some time. through of our our the structured fixed types credit-related, rates. gains

That's Got thanks. helpful. it,

expect terms should assumed more little is bit investment a charge in the as from those? there So quarter-to-quarter we capital income well? a And volatility higher of

that benefits that, on right especially from capital type volatility of stream higher evaluating look now. in then the maturity, and have the be into basis. given quarterly balance of versus and those than on the higher a is say from they're that's yields type from that a of charge kind I'm from got getting fund partnerships. stream that income, take little investment there distribution a that a account, and steady an the a we're value a still these The so Long-term income, statutory we fixed and the these a receivable or them, worth a the in a of of a is of might just hedge more those predictable bit getting particular sheet, some equity It's risk quarter-to-quarter perspective, we've into alternatives based a little of type higher structure with partnerships. lower charge. general Yes, there's definitely into a when bit going It to -- risk capital taking they

John And with Piper question our from we'll Sandler. Barnidge take now next

very Thank you much.

from you COVID health? we of of about embedded and level increased should lower guidance, can deaths, the the in tailwind kind corresponding thinking talk claims be about With offset utilization revised

coming did a substantial for pretty any from year benefits supp XXXX. we expecting get utilization that. to you right not really the back that the normal we're to We're with or really if especially on where see of lower really really Does costs, side utilization. will XXXX. answer on type to health -- associate anticipating the level, question? the in on the of Yes, And any the back that XXXX, see now benefits pretty now toward side same utilization utilization health some We've really med type end we the business, seen normal right in trends

that maybe Yes, talk thank you it business? that. did, the to offer savings claim Maybe some health do for telemedicine; feel long-term about you. related could you Can

the I'm understood I question. not sure

and If rates maybe telemedicine secularly Medicare using their possible? supplemental utilization of permanent if more decline a people -- can becomes claims part products,

know off long-term. could think I our have potentially. into guidance. potentially we've the possible in don't the -- does it any built that that savings cost not that that do seem into Yes, I type some of But

And Jimmy Bhullar now question from JPMorgan. next our we'll with take

morning. good Hi,

your since well? on sales, So very first, and I you've channels. on selection all of growth written And that good the that you -- had across since you've prevent think obviously some some things what you're just the on might going of you Do that? that have you potentially And a statistics to have claims the question your of there's on any as onset if doing adverse seen policies seen are pandemic?

not from being any we sales, changes types the the coming consumer continue I'll think that are risk Jimmy, especially we they're demographics, requested. really touch the are the to the those in the new geographies age And at, side, part seeing significant on and of in the especially, at we seeing that, do to kind of really monitor course applications changes changes on average looking last those higher of of and and direct those, the of are year. over amounts looking in

So we the do, with of age limited, of some to the population. of our and exposures, segments course higher especially

to to underwriting total marketing efforts XX to the far, there. during considering we in So XXXX, through million we a and and of that that But to close paid we've $XXX,XXX. a so issued were paid ourselves we've about amount taken claims XX, X In that respect -- claims face with steps issued -- through protect small about, the policies the with with number. policies the on after try that's year, pretty

those about in XX% are XX there seeing that of had year that's above. some getting of But the in less are little course, Now, about claims we we've X,XXX process our than that in claims still the are and that we're of X,XXX, process. the may in actually total, above be paid, age

XX% seeing, high focus to still with almost where we're the it XX are or and it's we're our XXXX are would then in XXXX. of level. before from in think really seeing what And before issued in highest consistent in consistent being one the those risk, So claims policy

a distribution pretty we're So over seeing that. good from

sure the to sales sales the be increased on side, Jimmy, the levels; monitoring occurring. company is is not [indiscernible] selection

We the of a significant or haven't experienced shift sales. in mix, location product apt new age

all increases at If across interesting consumer the it's channels. you to direct look sales that

higher estimate older the have there gives rate further some juvenile because increased with However, actually adult insurance. a confidence than [indiscernible] It is ages. at the us life highest sales the

you in years? duration a And of for into couple sort insight you. of changes have do any impact of contracts effect going then better in into the Thank accounting long

talked something new Yes, share to we that. year we'll a about on bit I We bit, maybe call. through the from be what do latter to I of last work in little continue have more the this little really information really part that have anything It'll don't think that.

terms recruiting lastly about these agent normalcy benefited, you of suffer and to it's up, what in everything sort become agent left later we If you vaccines to successful, retention, market of COVID on normal get area. And labor and have assuming are I retention, as sales retention? think if a come this do obviously get guys the leave could and think on, sort opens Okay. your think softer retention, or of and industries if to in services you just views from your agents of year, other or are we your your, some

employed, able the out under that focus terms have and been in Call me pointed retention. recruit really Fed unemployment, of successfully, I on we was we just that not unemployed. back the to recruiting the saying

effect the grow does go-forward. You're ability person as at has will think will retention a agencies. work we in levels historical person and admin greater have opportunities. the and correct. think retention our version in-person recruiting, -- We ability enhance I both Unemployment greater be sell to the And and virtually on recruit to

take we'll And our next question Evercore. from with Tom Gallagher

this a year was been was the That's in margins it's full-year trending morning, Are said was consumer, I business the basis, XX% a normalized bit on got you to persist lower COVID XX%. XX%, think on quarter. right, question last XXXX? to XQ lower you than that margin a guess, Good losses, last into expecting in excluding year I I direct

types in some alcohol press, overdose, especially drug that Yes, to and claims. type over some attributed, the will, trends COVID-related the deaths in Tom. drug indirect about which We quarter, of in that those the kind quarter related fourth quarter. fourth did have to And whether fourth the XXXX. a see of of Really they're or premium the of the accidents, of be fact, the the areas in and if X% was you over seen of and, XX%, those of due that little claims in some homicides pickup deaths non-COVID about we've in up some -- in

do we little a elevated XXXX. bit anticipate Now, levels into those staying

you of the long-term. in some that X% with XX% right overall, that and is, -- So, a other XXXX what of the full-year X%, margins we're are due range, of probably will that byproduct But for of think COVID. for environment the add we're subside won't causes expecting time are over probably XXXX. think of And of another that stick COVID of some points including death that we due are us three we kind into now, higher to that to be or XX% just to to

year, the the in claims range. not excluding somewhere, COVID to it'd That’s is to direct impact next XX% be be the still XX% going COVID of

you. Got

with bit from -- you overall and just expectation, So of reprice, that or an a standpoint? later, to any are any return level reason given little still margin very that comfortable consideration

only XXXX. we to guidance range XX% think repricing. we’ve claims looked We feeling been I I past prior is XXXX. for what think we'll think COVID amount Well, our until get that at back the we’ve closer But get to we've get always past possibility that But of of XXXX. given looking we we'll out that were

then XXXX anything is expectation lower to I guess all the of just there losses, you just on that? to about your it's on credit $XX that $XX or credit cash, affecting And versus million due else million and risk Is excess XXXX Okay. your figure. the for expect

little Yes, And impacted which that's the predominantly $XX statutory had in holding income losses in there's available that versus cash company seeing that credit XXXX, therefore in are another XXXX other lower to and the actually so, dividends probably that the in XXXX we XXXX. million that we're holding and some bit at of like just looking company or flows kind the a of the has XXXX. looks maybe they

conference Mike additional are It or like there any over questions. I further the appears to remarks. no for to turn would closing telephone Majors back

we'll you our are joining you again talk Thank for right. All next And morning. quarter. Those comments. us this to

again, you conclude And once does participation. conference. all for that Thank today's your

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