Globe Life (GL) 22 Apr 212021 Q1 Earnings call transcript

Good day, and welcome to the Globe Life Inc.

First Quarter 2021 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.

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

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

a and million Thank ago. on $XXX a was as XX ago. from decrease $X.XX for income everyone. quarter basis, $XXX you, In a Net was compared was return reported morning, $X.XX X.X% the share, income value or or share net per share per March equity quarter, of share or XX% year $XX.XX. Mike, million per million good to book On operating the of and per $XXX first GAAP per share $X.XX a year was

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

before, in decline $XX margin $XXX The million, was due persistency As and from of underwriting Life year of premium is we ago. million improved noted have seen claims. primarily onset down we've pandemic. collections since COVID-related the the margin a to XX%

in margin expenses. million, X% and margins XXXX X% the insurance, acquisition around to we million spent premium persistency lower revenue grow underwriting and million. X% underwriting midpoint guidance, to life was increase approximately have And growing was COVID health premium The $XX health X%. year, underwriting the In we of at grew expect of our to due primarily improved XX% to For $XX margin to to up claims. $XXX revenue and

premium margin revenue to to health X% expect we year, to and X% underwriting X% grow to the For grow X%.

this that We the administrative premium company the were Continuing revenue up X% in Before in history continuing, $X our from billion. results, efforts which $XX of quarter first million and in the is this milestone. first quarter appreciate achieving note expenses for the pleased I'm total our agents year employees to a exceeded ago. quarter,

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

as gradual For pension to X.X% year, around full primarily costs. to increase X% expect marketing over due of and X% his for now the we quarter costs, travel expenses and higher the administrative in and comments Larry will a to operations. grow first well premium, as the security costs facilities IT on of to information be call turn I

up underwriting sales at the million. from to that X% life at X% premiums the increased you, exceptionally an agent of margin is count. now and trends agent primarily underwriting and life Net due discuss COVID year XX% first continue the American producing At down areas was lower virtual was National, The quarter. life X% to up million, while first average $XX growth sales sales sales X% recruiting $XX net Net quarter. agent life life COVID positive The count The fourth year X% to the distribution count At in million. from Thank producing quarter momentum. The in adapted in and from agent primarily to agent increase improved The margin the The income XX% to $XX The well life the were ago environment American life The we quarter. is ended producing channel. premiums life end during year generate $XXX million, due claims. margin increased X% progress underwriting health experienced quarter is agency is due agent and X,XXX, the to XX% for fourth current from Liberty claims. quarter sales the quarter, count at at activity. XX,XXX. up Income the sales drive were ago underwriting $X to in the Gary. The grew life We margin Life, increase strong XX% million, count were lower net make productivity. up agent down down X,XXX, to first producing primarily ago count while quarter up quarter I sales at will the each X,XXX. up the net for was up $XX to XX%. first was due National while to average from $XX quarter were and was to Liberty continues million, has million, the and

X,XXX, premiums We growth. persistency $XX the At margin million to to primarily health fourth margin the X% year at grew underwriting $XX million. Net increased lower ago quarter XX% agent encouraged primarily was X% agent fourth down the quarter. productivity X,XXX. a Liberty of improved quarter continued while the million, The average count in for in expense. during to end the The acquisition to for sales due from count $XX not The health count producing to health due the The from increase average unusual. quarter. are X% and by and agent Family decline first is Heritage, was XX% quarter, drop in agent up first underwriting National's is quarter declined the

decline As Life, $XXX the increase this over life weeks expect in familiarities division the an the to last several recruiting going of continue of direct-to-consumer In seen up and have in recruiting forward. activity year, premiums Global first quarter we sees million. productivity and XX% will our activity in were the typically

ago Net in sales $XX margin underwriting will year XX% further $X life comments. quarter. million, XX% underwriting were decline discuss his life declined in up Our to Frank million. from the the margin

consumer General increased Net are and activity as projections were highly environment. underwriting still $XX premiums for predict our knowledge protection to to direct-to-consumer It's At margin expenses. down marketplace health quarter. to I ago is X% It life in million, million, Medicare sales business. and lower XX% will underwriting demand this of United difficult margin channels to compared basic increased the sales $XXX now acquisition always Supplement the across to health strong seeing in United quarter. based persistency to improved and trends we XX% distribution uncertain primarily is Agency, competitive. health is million, insurance first difficult increase of due $XX the future We see in on the American to continue all American provide year predict the

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

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

on but expect For to income the a to X% flat, be full per year, basis. investment we up share X% excess

first yield, and XX we and investment X.XX%, average of of invested $XXX invested maturities, at minus fixed an in As million average to years. an A investment-grade primarily yield an industrial the average of quarter, life the We sectors. rating in financial in

$XX invested limited We in that instruments. partnerships credit invest also million in

investments our line produce these While in they philosophy. with are investment yield, expected to incremental are additional conservative

percentage the amortized $XXX from billion, portfolio $XXX in The portfolio of of at of fixed the fixed is XX%. $XX.X $XX.X fixed investment-grade with fixed investment-grade the unrealized end cost. maturities to as BBB to investment-grade below compared are total the investment-grade quarter bonds A XXXX. rated of at Overall, Of also ago. are X.XX%. bonds entire to $XX.X first rating average of minus year-end and compared portfolio, of portfolio points X.XX%, equity excluding rated including XX of the XX% of yield as a is yield million minus was portfolio below maturity maturity compared million BBB the XXXX. XX% billion Bonds is first XX maturities, A down was XXXX. percentage billion fixed an March below the a gains are net maturities Invested quarter plus were year basis at X.X%, maturity For The bonds fixed assets of

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

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

guidance the average the the assumed yield XXXX, fixed for is new of maturity X.X% midpoint money our year. full at For

income Life balance see would in In longer for environment. going like or to current the under rate we Globe accounting rates forward, we the asset limited since not expect in to higher next our have the GAAP a X% of [indiscernible] impact year our noninterest less X sheets years. we interest impact is drive average can new rules, as rates sell statutory Unfortunately, protection interest on lower price While will portfolio lower somewhat of per than investment volume turnover over pet an products. the

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

Thanks, Gary.

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

of addition dividends subsidiaries, less generate excess parent the these from higher parent earnings. results million, million $XXX and available statutory final it, we to to cash assets we than the In parent on the Life's beginning to hand cash assets its around the We have XXXX. on in indicated will of our share dividends and quarter, price XXXX the $XX.XX. range the as from during cost XXX,XXX anticipate liquid Globe common define including reflective the excess to the be Life debt primarily flow, at company expect flows distributable parent of cash will first an $XXX million by flow in of previously our Globe the to paid excess in year, the paid at Thus, $XX average $XXX company year. currently XXXX million the shares stock million $XXX interest the of shareholders. of to In assets, at received The company's total a the Inc's. parent of repurchased

million million spent price average Thus, an full we in $XX.XX. to had X.X $XX at far the shares repurchase So of an to average today, $XXX we purchase price for shares have million XXX,XXX through spent at year $XX.XX. of April,

million so parent million of of far to XXXX. the have we $XXX spent available $XXX repurchases the assets will approximately million the $XXX year, for remainder to this Excluding on

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

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

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

over consolidated This end sufficient to million As XXX%. our ratio, the have has At excess RBC noted calls, million of on assets parent, be XXXX, the of at ratio consolidated company approximately XXX% needs. this capital Life a to available RBC required of consolidated with capital, At insurance previous of $XX the action we XX, target Globe was targeted our RBC liquid of at RBC $XXX December ratio range to level our subsidiaries along in capital capital expect fund million the low amount to the $XXX XXX%. future that provide XXX%.

a from do credit We downgrades, our this expected end additional our any the not tests. course investment in on RBC due and downgrades million low $XXX some to capital require of continue notch time. losses investment of several parent on primary up ratio downgrades required model our we our losses, As the the would insurance could significant In anticipate driver To case, estimate capital to $XX approximately relates potential year. needs calls, impact the expect previous additional to from credit to million we be portfolio, although we that of to of discussed NAIC of in stress time With the capital XXX%. XXXX companies increase capital. maintain potential normally to amount One changes base over of scenarios of targeted

downgrades, In time, referred At commonly related factors, needed changes capital additional factors create the as addition investments, XXXX. this know the to could will from the what for CX for RBC not portfolio do NAIC factors potential to final capital investment further we need the to be. in

aggregate, are more available company normal low testing not is reevaluate has assets. and our that to the required exceed still ample statutory support factors we line liquidity negatively Bottom million statutory able our cash normal get are are adequate the the important determine cover returned scenario may by Once and parent equity that be additional repurchases. capital Life is related interest to note new once - share of million. have investment of factors, to additional new fixed our worst-case our markets, rates the levels, get level any will comfortable downgrades to capital we that make to our CX the the required able all basic we amount parent capital additional $XXX retained products. have cash or than to to the would to given to we company reserves reserves In impacted the is believe under scenarios. protection flow $XXX that Globe It are we However, not that

of provide on through this this the of year. I'd additional our results. this that determine first assets amount will liquid our share be alternatives, the liquid excess the best to on we anticipate such At parent. relating assets comments available We the should we that use At few appropriate higher shareholders of to at first cash level end like of quarter the holding Depending would time, a retained repurchases. COVID-XX of time, amounts return through impact to excess We'll then determine remain. any likely our

million quarter. death our Gary, the the of the million claims of paid at we primarily approximately the noted income, approximately million include quarter. of American its And COVID The in X.X% less COVID incurred income XX.X% benefits approximately premium amount roughly policies million claims death X COVID slightly of X% benefits important note March percent the incurred in $XXX,XXX quarter. slightly XXXX. its $X life COVID direct-to-consumer first total quarter death policies in division, in March total very Liberty $X since benefits comprising total over is or the is first death of COVID of sold actually small XXXX. to quarter It As through of This XX was quarter incurred an to estimated for approximately beginning premium of sold or at National, a over $XX than to its due XX, declined premium. in $XX benefits by the only for related anticipated underwriting This million that margins

the drug Alzheimer's in in is emerge occurred circular obligations began relating and heart primarily claims causes COVID some adverse year. conditions, we the development This nonmedical saw those and overdoses. both last of medical to also and continuation that adverse other of to related to a addition to In non-COVID quarter, developments death,

we as While as individuals difficulties are for pandemic health as believe of deaths the death the adverse the to had isolation whole. not and timely the population directly related many Increases have Health a the stress. U.S. non-COVID well COVID in in receiving to start elevated pandemic the been since due National the of for claim, the have care Center also the by and CDD a effects noted Statistics

the each insured obligations evident the impact our in higher of While been of U.S. middle-income direct-to-consumer has distributions. distributions, non-COVID causes represent in more we more experienced whose our our higher non-COVID other population from channel, broader these than deaths closely

adverse COVID the We experience the In premium, to margin emerge of the anticipated also contributed of death related the the a U.S. death had quarter margin evidence death, to addition in significant of deaths last in and year. to to non-COVID as non-COVID quarter. underwriting number lower given started percent expected a higher lower since the

As we the channel will the will that currently of second premium XX% in this be the the of underwriting claims over margin year with closer remainder COVID, adverse believe the direct-to-consumer to half XX% moderate to of and the for experience year.

guidance earnings with Finally, XXXX. respect for our to

policy to While quarter first than lower recent higher were COVID substantially earnings quarters non-COVID and obligations. due

Since the operating now the first anticipated anticipate for in and have claims close the drop COVID share COVID We earnings year. remainder quarter. seen peak fully of per of a off deaths The very we were sharp our expectations. quarter the to XXX,XXX we believe

midpoint substantially in occurring of the still We the believe deaths of U.S. the that course at COVID quarter, reasonable estimate remaining deaths quarter. is our anticipated the over XXX,XXX all second XXXX. a As with guidance, approximately noted of last we

As roughly these recovers, believe again. as continue quarters, also to year disruptions will to higher in we that cease, and to are the we of obligations incur the of prior care to U.S. XX,XXX With the deaths. in life $X more economy the claims million will levels over estimate of respect we death, causes every revert able for non-COVID socialize course normal COVID from health people

share expected our the higher health by repurchases. causes from As premium favorable are be income higher impact claims offset to non-COVID and previous compared policy obligations of guidance, to experience, favorable

midpoint of to $X.XX, such, the the my I $X.XX ended XXXX Those are call As keeping the overall are narrowing Larry. to XX, comments. for $X.XX guidance year we to the range our while at back turn for will December now XXXX.

Thank you, our Frank. Those are comments.

will up for We call now the questions. open

[Operator Instructions].

Barnidge first Piper Our from with Sandler. question John comes

Your life color year what there in uplift there? you you a year? guide direct-to-consumer like add some Can conflict last that following with put think up onetime this don't 'XX. sales for was XQ Was through is

think don't onetime I uplift. a it's

we had X. year, that last If and the comparable you a first look quarter year, because a sales pre-COVID. in were real QX was of And increase we in percentages flat at in last and X is QX, easy our fairly

increase So XX% of X% is sales X% while think those to reasonable negative against comparables XXXX. the we for X first quarter, in and a in guidance had we our X, QX, in plus

COVID then the run 'XX death the it about rate And there follow-up, what way half substantially seen we've given first the comment to a in in quarter? my what of being sense remaining any us is for might XQ give Okay. to your all

Yes.

the around the XX,XXX there of Right first the quarter, the think deaths. year half of in XXX,XXX about so then COVID the and now, second deaths - quarter the over XX,XXX over COVID remainder anticipating year. I around second we're was in

question JPMorgan. next Bhullar, Our from comes Jimmy

On margins your your on echo my big on call. not a It's but. ex-COVID. on comment life There's line,

them, question But you less that these of reasonable Because elevated. Obviously, and it's in people that goes stuff, you're and away on guidance get beyond opioids it related might I that as care. to but to hospitals getting if is off. difficulty if said that to COVID, stuff. stay having your think improves assuming or burdened think it's assume to they I get look is more My harder easier are some continue? you

to be to continue drag little your for beyond pandemic results the that lease could well a the So bit? a as

medical on Yes, the larger non-medical while opioids in - respect some of Jimmy. really and seeing I seeing causes, X that I and We're seeing say, you over side other, will. the of is we're really, the more we're seen the would them as really with historical the is some that be, trends, whether it said, to we've increase hard if circulatory elevated

I those So causes some more a us that some little death, that multiple comfort from gives non-medical. what of while including seen increases we've think of in bit that's

able those As and several opens for to procedures normal areas. the will we'll medical months back now medical to that up back more back has and be subside, access opened levels the and that, get up in to

alcohol Frank And Jimmy, it the less is XX% of fronts. claims - claims. are the those intense I was be non-COVID. medical those Whereas talked Over would medical has about, drug's that in

you've agent And sort big but we've in and maybe you've to the over time about of of past had think step-up your on that ability services lot could decline the recruiting not opens lot seen think back in the go economy your normal you've year? big sales you retain do Or actually way easier over the sales, hired year? then departures the of agents hired in you see a back, you you'll a with past I retain of of like, of because the the all things agent an recruiting think if these, a because problems and Do the agency a the count, industry. up sales many and your and pandemic, what that the to obviously,

given the activity. think XXXX, I American last management see recruiting particularly will QX QX to in middle I recruiting income, we'll continue increase year, QX, and to think in continue growth of the

Also And of again, new American who to most particularly our recruit previous 'XX, underemployed want the agents with of increases, return X levels number income, historically doubtful XXXX low agents. better producing opportunity. agents low, extremely of the Remember, to jobs. it's and all we agencies sales think the given in many unemployment we to their were stay would I when company. are and a looking that these or continue recruit during grow the believe for

And just talked selection on enacted well, being in about and lastly, you Have you've this - to I'm processes the then enacted the adverse strong. pandemic? in Okay. avoid as sure been sales you've your past Can you from the or you've seen you've of talk past over to what avoid processes seen about sold you year? whether level what - of are adverse might selection? have policies claims And some the

for a adults. shift in Yes, what little as in Jimmy, the bit have policies a we the the also policy change amounts. fake all applications looking not we do amount between issues. some American our take they state XX. looking are do - issued again, the underwriting, of we're number monitoring and various And there a We're fake older we're age last look direct-to-consumer, seeing well the have seeing, as year, putting the exposure apply on some any are change purchase amounts, The really to to no changes at but by of And done higher changes been the not overall of higher geographies distribution at, over a seeing trying a limitations older that there's And significant some is where some just seeing are they both the respect some shift pandemic there limiting in toward especially at marketing we're we're especially we lines. by seeing that income, net - before there's and really and some the lot monitoring any the in really individuals the we're higher higher that, or really at of we on and in maybe incidence. really we're the on then we're to pandemic, seeing can with at, we across - From applications been can't limitations the individuals to ages, we've looking seeing are in more and changes for groupings. different

limit So to in that both and marketing X, only mentioned issued been as the the through at so And since doing notes I the experience, $XXX,XXX. my actual our process, policies about to there. that things have March some far that underwriting look think I for we've exposure seen have XXXX, we - since again, claims totaled XX try

American and and Income so Liberty the distributions. all and that's And different of inclusive - that's both

very the a small additional the small the overall marketing incremental incremental course, policies. percentage of in a - it's of So And - come costs. very those

there business. mortality, than So that bit we through paid little profits for expected more additional to of on be it's additional but a

of the selection. just a at serious rate add addition, to the highest product all in juvenile we're is to want the the illness a in I that ages. that and is, insurance It's while of older sales life the than incident mortality increases have at gives at sales us and direct-to-consumer products, across channels adult increased higher confidence further experiencing not

Instructions]. [Operator

on question Research. Bass comes Erik next Our Autonomous from

would margin line your And the for sticking expectations a three give the of businesses? think more I detail hoping is guess business could by on was I a margin you of target underwriting normalized what the kind then little for you of bit remainder on year. main kind life business. the the

see As I'll over we've lapses, that the impact at that on time higher. think what we - about tend about a talked claims, policy I a of XX% as for and is that life saying non-COVID gradually think, And whole. makes being again, had And saw to National, claims the be, probably get of a by a the XX%. we've and we seeing the to that that an some the non-COVID little around bit really some as has obligations addition talk - well do about the will, for normalize to whole, full as the of are the of life we're direct-to-consumer, XX%, some we the course over We year, we XX% somewhere will be year to year quarter. closer full for and we the we improving then the At American XX% to the - - course around in income, think, and about that first around individual for year. tend anticipate of will businesses, and for in Liberty the margin

So normal quarter really to X of give the improving each percentage the that premium. again, of over percentages margin in those as year course by the the by back a we fourth pretty lines, to close overall able we're see to and of anticipating margin underwriting

Got returning should to a XXXX hopefully, level to it. to look margin And normal as about, seeing think in we pretty XXXX?

is think at it That's about when levels. it, what we're is those about we anticipating

on And can getting And activity have any in people are benefits and terms then we've had more just in seeing any pickup utilization? you're reopening the of side, vaccinated? you kind seen of you health talk about is in changes maybe

Yes.

far, Sup to I normal in both normal we starting - at the this utilization, see time. mean, Med of levels of pretty on activity especially we're lines pretty So levels are point in that seeing

Got it.

is So the more persistency the - better amortization? margin lower favorable and

That's correct. That's of what's really that. driving most

Crédit from Our question next Andrew Kligerman, Suisse. comes

would some a the XXX a the claims. guesstimated I XXX drill policies life have And I what down more. been normal. little area. does globalize policies of I was something to unfavorable insurance around And want kind I thoughtful was above thanks wondering bit around around doing many math to for mortality. how in answers outstanding have

have So area? is the second just And the question, of the how in many policies a life enforced assessment? decent do part you that

don't say, as you. have believe in frankly I I front I Yes, and - of to

have I [indiscernible]. life enforce think XX policies we million around

enforce. million XX

year apply this? a type And this the have this deviation I would of first far you quarter like might favorable, last I range is of any to actually the really you if is standard unusual. correctly. how I normal was of out modestly mean, recall say, to so mean, that

to kind So dollars, - what other how know, the than this? any unusual of was way you

COVID And talking you're the to just about with general claims of [indiscernible]. some the or respect

the it's No. sorry, to outside when I'm I'm XXX of estimating I talking close non-COVID, on norm. was non-COVID policies,

mean, activity tend it's kind time I I - with head, and of we a Yes. what to it the size but off I it activity, don't business. in time. mean, and an here that from - we of last I - think percentage the have mean, is right is quarters few it's claims over just think my comes the - not to I of the overall - we've seen definitely, growing top increase about

can occasion. of fluctuations You'll I'm out would see higher on but is But see numbers, ranges way the time claim overall it a have from seen little say, is might you of some just where bit not have our going what typically that that will in of fluctuations. something that some we we that see terribly, and to those to to time. maybe - you than is normal in It the

in me like Yes. shouldn't that It third I mean let mean, seen Am just well. this seems about just another you. way? quarter nowhere thinking come run very to - a it's have of we were the trend, reverse. going then that fourth and thought and well as the by I if I quarter out and right could

a bit seeing we what emerging. being X-month that's popped and pandemic, claims from about, at toward we was back we're corresponds claims it get really of of experience, think the looking able do to with timing here data more the I here a our some see seeing in and the started the kind talked - little why end get of we're up it's obviously, really and always to And it lag Well, of as that. or X- there we've

- relating And paying the some more seeing what that claims gives actually us did - in fluctuation indication we're of we're and where XXXX. overall it's late that to these that we're occur pandemic. a the were death that's seeing But of some

to that causes exactly really down where up higher of recall or having short may back we then period ended your of forget subside just we some XXXX, through periods You those a I went time. XXXX drop non-medical tenants of and at well the point, and as year kind deaths and

time. will take from place that So to time

as vertical carrier build competitor you more Is I I behalf of want that insurance your at to to another that sales Very could of underwriting? it you a direct-to-consumer helpful. providing your last life fraction then Life look just tiny And out X as one. Globe operation, Medicare the company. something sell Supplement, intrigued, Is channel. opposed that through a extensively? And might on where was a acquisition oriented Medicare of of Insuretech your data

is direct-to-consumer are group channel currently group The edit. and sales sales hard to

expand past, and expand sales forward, in successful health tested obviously, very sales exploring with we've that through we're they and We our direct-to-consumer In Through with our to individual particularly should greater the - had channel. try direct-to-consumer go channel our Supplement. haven't branding operation. those Medicare continue to success, We've as and been that. agency you how efforts

of I we'll carriers from on try distribute Medicare that life to at other sales our don't explore agencies, to but will direct-to-consumer would think So to Supplement other our continue carriers behalf detract and we individual sales. look

Krueger, next from KBW. comes Ryan Our question

amount your of Did mortality have the quarter first this of year? so. disclose saw the also you excess may expectations you non-COVID dollar I amount full that the the in and missed for

Yes.

the million than ran so what that full anticipated of the from of probably $XX kind $XX we around for the first For million year, than anticipate anticipated, X% about first it initially. quarter, had more roughly premium in about higher we what just we quarter. And

$XX X - the in about it expectations, first if inclusive think it was will the including about year, entire year, million will, full and $XX the be million I for our is quarter. that totally for you

kind occurred if obligations, So anticipate half of extra again, have about we what first will will, the quarter. of you of total in

of full due it the probably then obligations you so at of the entire - think what X.X% X.X% quarter, to X.X% of for and - about X% kind now we expect is in that's was kind year. between look and some I drag so, the And premium why a of about or first

Got it.

some you was You your that expect buyback offset buybacks this. give partial mentioned level Can updated in to of that on commentary higher XXXX? you a

Yes.

we're the million. at looking million midpoint at of guidance, again, $XXX cash that $XXX our in So that excess to flow

kind prices course the were price a is we That's high level able it's first have bit just in expectations were than bit our and on little of the kind had the That share that we not midpoint, quite a little different wasn't - quarter, was around that repurchases. of year. the - - at the that. some kind And look were back a midpoint more. January as to but that's of actually, we in we not the of over that of into then so average what actually built purchased then our at it, And And overall but higher little lower we bit than we for prior projections. where

of So that. benefit of and kind the

That a we shares helps bought the of more getting the well. back what we benefit over So anticipated. just as had than that so course few the of year

of you'll $XX $XX thinking in QX target beyond just then last your get above for one. to available but liquidity? need million for you as for So downstream And XXXX? be Do the how year, might factors, that could end parent much you you is buybacks are you company the this anything - million still that, that's determine updated the

to of think year, I bit we'll that's likely and kind where we'd end we're probably, be at of into get kind as but take that's closer focus that target little more Yes, think in looking the we situation the of comes a Again, that the this I retain. forward of look thinking. that to a

Evercore. comes next Tom from The question Gallagher,

a on follow-up last to question Just capital plan. management Ryan's

additional million There's $XXX would be million of $XXX balance getting that's deployment? Or meaningful you at, you $XXX I for thinking buybacks about don't capital that you portion more know, we out I some looking XXXX? mean, an the But looking some timing staggering extra using of the I million are are in used $XXX about imply are of million with resources through that think buybacks? of at million. when to the dividends - the realistically, I of out. total presume the $XX know So year. And balance, with to issues minus going

Yes.

$XXX $XXX have you, you million, XXXX, when you're say, as let's of million. about and what share buybacks, or of XX We've the excess of the already let's high million just pulling kind that with out, of remainder think for $XXX million range the back $XXX say flow million. you at just So cash $XXX if mentioned for bought our end

so various got capital that this that's year, about leaving - about million for that's remaining million for you look. $XXX And there where So really remaining to have needs. that's we'll $XXX then out

we'll the needs CX year. So type progressed the we of see what have downgrades over and capital how from

be that's - north in think clearly what would of excess, necessary. we we would Now have where

period have with depends return, to we're able how I over end - we time probably up XXXX. clearly so but and Tom, if that's if tail into bigger of depending upon And on - chunk that something where come think, that we would is, that clarity a and a it back much

entire sometime I focus out it of be XXXX, we'd there a much think to think do trying probably in it end very we'd the I early is. depending probably spread year. XXXX. on than over it But It's on earlier returning how

Okay. of of the, in That's philosophy company $XX terms And million just buffer. helpful. the then holding I guess,

be holding would that now. are able but - over I not you is give seems Xx your curious $XX stability million. $XXX practice industry hold plus think it to common be standard not the be annual $XX your hold guess which to your common million over than dividend coverage expenses I And dividends, interest that think annual of just would lot I is to confidence million and why a less Is interest you'd for much, you. expense? flows cash interest that for

Tom, is raised the COVID it I out is year. Yes. going was some issues. than that testability And ago. the [indiscernible] no as raise shift what [indiscernible] had to free a in would lot - flow did cash it we several the pretty not we normal consistent something years million had here we have turns really we over liquidity that world adjusted we $XX year, But more like. we additional be This we decided. past And level

as going much think be it's to but don't need the go see Frank is we we saying million. along, I evaluate would don't you're that it's as We'll that as keep talking So to I about. $XX think

every our when I would minus having we having at It of agree. is, And Yes. $XXX really in or some plus year that excess flow. cash the look million, each comfort and

every great that, it access us comfort the pool if mentioned, we those of gives payment dividends fact, we'll you and interest creates in. that of we, we a funds, that as can have that new go need year that liquidity after and So the in over

just it on negative final I And the make you indirect-COVID Okay. was $XX - to it. I the in understood said mortality, XQ? just sure want then The non-COVID million question, sorry,

Yes. That of kind we than had higher what was anticipated.

again, So we anticipated we some had the COVID trends seen the deaths. higher anticipated We at had of end And the year. higher. the of

quarter, we we first So had million amount a decent we see more the did obligations anticipated. what higher in $XX but of than anticipated about

it. Got Okay.

to is like I So was But relative million. $XX sound - right? if I normal, And million relative to that returning $XX expectation. estimating to that to about was say if

about Correct. sound right. does That

queue We time. have this no at further questions in the

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