Globe Life (GL) 8 Feb 242023 Q4 Earnings call transcript

Hello, and welcome to Globe Life Inc.'s Fourth Quarter 2023 Earnings Release. My name is Melissa, and I will be your operator for today's call. Please note, this conference is being recorded. [Operator Instructions] I'll now turn the call over to Stephen Mota, Senior Director of Investor Relations. Please go ahead.

you. Thank everyone. morning, Good

our today Officers; Svoboda Financial Tom Chief Brian Majors, call our Officer; Matt co-Chief our Mitchell, and Officer; Executive Kalmbach, Strategy Counsel. are the and Frank Darden, Mike General Joining our Chief

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

non-GAAP contain terms measures. see of GAAP our also Some for the these may release earnings of measures. turn website Frank. and Please and over now comments our to to call I discussions will reconciliations

Stephen, year per income XX.X%, or million reported income a to you, increase fourth $XXX $XXX is good XX on million, $X.XX ago. XX% the was for return share $X.XX the per On share basis, In share, quarter ago. quarter, a GAAP $XX.XX. is was share per from Net compared and Thank or net operating value an a book morning, December or and everyone. year through $XXX $X.XX million, of equity per

our and revenue to life our between and underwriting by margin is per accumulated equity is divisions, value Income grow year quarter for and National million, revenue return to increased premium other $XXX and was from from X% AOCI, of both quarter premium midpoint a underwriting X% between margin share at year Life ago. In XX% the up to X.X% expect on the as ago insurance comprehensive December XXXX, book and also Excluding up operations, American premium grow life from XX.X%, X% of income, X% $XXX we XX strong year In $XX.XX, X.X%. guidance a life growth in or ago. our the million. fourth driven Liberty

premium, in XX% XX%. be of the life underwriting we to percent a of range As anticipate margin to

guidance revenue million, $XXX At was grew $XX to X% XXXX, X% In to around In expect to the insurance, and X%, grow be a to million. our premium, grow of to up premium to margin and of X%. health percent health XX%. for and premium to health year midpoint underwriting XX% health X% as underwriting XXXX, expect the we between margin full X% we

quarter, expenses for Administrative pension decline were in to from year other costs. $XX due employee-related million ago, X% the primarily a down and a

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

administrative ago. will marketing quarter approximately premium, to Matt administrative modernize XXXX X.X% we premium we on for comments XXXX, expenses over expect to now we operations. how the as the fourth In a turn operate. For I were expenses X% of be technology investments in year call his due year, to the transform of continuing to primarily compared X.X% and than higher

sales double-digit last am I well had initiatives and agent XXXX, Thank X% in growth sales to a has quarter and the agent the pleased At Income from ago, American retention the in the for in ago. of accelerated to see put build count agent fourth for count. ago the life average count million, at X% million, we the up bodes as Income agent strong year to the up the growth life from XX,XXX, growth you, half growth, margin net end quarter X% from year underwriting of recruiting primarily Frank. fourth XXXX. American quarter $XX place million. In in over Life, to continue of sequential growth were $XXX XXXX. momentum premiums sales up year XXXX, was and which in were of quarter to agent XX% $XXX up life The to a due but each producing was year

quarter life life X% the was National, count. million. the from to growth the from made up where up over growth from Liberty XX% to which is increased agency to we X% $XX average just and due underwriting in for progress ago. agent $XX has $X up through up X% life $XX in net and field reflects technology training premiums activity the their at The growth margin life million, and past few progress. generate premiums the and quarter in Net provided agent continues ago the part Liberty and The million, feedback Now which due count year in new to premium year XX% and to sales past the annual sales quarter in growth significant were allowed no years, XXXX over ago a has health implemented sales fourth primarily million, sales was activity count years, are several life producing to over XX% strong agent going year X,XXX, agents track to XXXX today. granular both grew more to were this

Now fourth which Family million, year increased increased premiums X% million ago. $XXX health increased to due up higher XXXX. and productivity million. the from agent a health X% margin count year-ago $XX to average Heritage, quarter sales agent Heritage. Family quarter over XX% Net XX% grew to At producing counts was underwriting $XX health for is during X,XXX, The the and to

management Family agent For count year middle a producing increased from with on recruiting, to average emphasis ago. year XX% the continue will Heritage growth. on the additional XXXX, full focus

to due compared at Life, ago flat at $XX underwriting year Now direct-to-consumer life on our were In increased direct-to-consumer. Globe premiums $XXX million declined million, to costs. while division life quarter to acquisition the to margin X%

primarily million, our spend to not inquiries we have quarter, XX% Net from as ago down which $XX on reduced sales declines is due that year campaigns marketing customer profit did in the objectives. were certain life meet

maximizing advertising this by We sales associated distribution rising on the underwriting the dollars new margin costs focus with continue on to managing and new acquiring business.

of provides direct-to-consumer critical margins, support and brand to addition agency business the the generating leads. channel at new our through business In to sales generation profitable impressions

General American Agency. United to On

premiums and $X year the year health to compared the ago margin to million, $XXX quarter at were due million. policy from Net the underwriting million, due Medicare flat the quarter Health million ago up costs. strong quarter group businesses. both ago which over both is individual down $XX higher to year and the acquisition supplement in health was were $XX activity sales Here, obligations approximately XX%

Projections.

talk about business. me on Let trends we based the our experience with seeing are and where we the headed are that

growth; full We as are double-digit year trends follows: to single-digit growth; at expect low Income be life at the Income in double-digit be for Family expected producing Heritage, growth; Life, Net growth; sales Life, the Liberty follows: for agent the average growth. American relatively year low double-digit full low American low XXXX Liberty at direct-to-consumer, National, double-digit as also National, high flat. XXXX to and count

American for low at health growth; United Net double-digit full growth; to year Family sales Agency, as Liberty mid-single-digit XXXX expected are also to the growth. Heritage, be low- low double-digit National, General follows:

discuss item. the before Now call turning like back X over I'd additional Frank, to to

During related XXXX, of Income its to pending against publication online litigation agents. American arbitration an Life state articles posted an general and X

Although topic questions provide be litigation following will statement. to not we we'd the today, and comment do generally the on like on taking limited any pending not

an of Income. made company Income and to to allegations American to prompt and as on litigation external agent's In litigation independent engaged third with XXXX, impartial and conduct sales This the appropriate became the a soon allegations, by took action investigation. American an contractor prior investigation. the thorough agent party aware relates as former Income based American that

we results litigation. inappropriate American Life's continue business And not Income or Life brought made overall allegations Life's and behavior. dispute do take not be and any will American Globe harassment, litigation unethical conduct or to about practices, defend to in agency Income material We we We vigorously concerning tolerate do seriously this against operations. such believe the attention the allegations our to

agency independent reporting concerns, the department numerous sales Income American or an to contacting raise hotline. agents Life provides for including directly third-party utilizing ways company's

We have to address processes such them. when learn concerns we place of in

to I'll strive turn call in level back Globe report provide We and with company's highest concerns. and all to Frank. Business integrity also to Life, to and accordance to the at training and to about ask we how want review now emphasize I includes of ethics the anti-harassment levels organization. Ethics, agents our of which that Code at mandatory Conduct act and information provide agents the antidiscrimination of

Thanks, year income less million the investment as now investment year required to year only ago liabilities. invested ago turn Required X.X% partnerships income up by the also primarily up The but slightly from increase rates from growth than we and maturities, is which or Matt. higher operations. commercial due impact assets, was average $XX million, net growth X% We'll define Excess investments. fixed up investment ago quarter. $XX to policy was over higher in the investment X% nearly the is in from interest interest, income, the interest mortgage loans, $XXX limited million, quarter. average Net across short-term the million quarter, $X supplemented

the X% we net favorable year interest rate environment of in to income assets. X% investment our invested to steady full between the and grow and For expect XXXX, the combination due growth

required in approximately at addition, income midpoint X% we anticipate the excess guidance, for In will of investment in our interest XX% resulting XX%. of growth to year, the grow around

yield fourth of and of Now in and $XXX fixed of We rating years. XX invested investment financial investment-grade we average industrial BBB+ the life average regarding an quarter, sectors. yield. in invested average the an primarily maturities, our an In million X.XX%, at

also philosophy. at to approximately of produce with average and investments in in are investments investment mortgage commercial have invested loans return are line maturity an our our of office additional yield they We involved loans over expected cash characteristics direct $XXX investments, our commercial and that limited conservative None mortgage million fixed expected properties. cash debt-like partnerships These X%. in

the and X.XX%, from points the fourth the fixed third X yield the of fourth up X was quarter. For basis quarter from XXXX portfolio, entire maturity basis quarter up points

also the was XX, portfolio December of yield As X.XX%.

maturities, of investment fixed a the are portfolio cost. Now an ago. billion, A-. is including amortized $XX.X fixed Overall, rating $XX.X as maturities billion Of $XX.X Invested fixed rated at are regarding average of our with the total investment-grade A-, maturity year portfolio. billion assets same

net investment a of market billion has average loss the higher on unrealized current holdings. our $X Our than position being portfolio book due fixed to rates approximately maturity yield

years. by and is mostly extend relates beyond interest have are we loss that concerned position unrealized maturities XX with and not rate-driven we bonds to entirely As the noted, currently historically

investments and, intent our more the ability hold the to importantly, maturity. have to We

rated ago fixed from compared comprised the portfolio Bonds maturity to the XX% BBB of XX% quarter. year

to relative securities is exposure ratio high derivatives, to residential mortgages, our CLOs asset-backed as have little or by other we held this peers, our peers. no higher-risk assets and such While equities, common

our to many BBB the risk-adjusted, securities We that to direct do we securities equity or regardless investments returns fluctuations any believe generally due interest in Additionally, capital-adjusted insurance have part the of rates equities. other estate in not companies, markets. acquire exposure or ability best real to we unlike provide hold maturity to private equity

in a total investment-grade low our below million of at percentage The yield full bonds expect bonds yield $XXX maturities billion we an million guidance, at commercial is midpoint maturities remain cash Below and XXXX, to characteristics mortgage fixed fixed X.X%. an $XXX $XXX X.X% At loans year investments of approximately X.X%. limited year the debt-like invest average to with million in the for estimated approximately of investment-grade ago. partnership approximately to $X.X of compared and average and

are policy to As net future has this operating driving investment positive we by interest benefits income no since higher up see as income a pleased we rates with on said to they sensitive. are impact before, our not impact interest

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

Frank. Thanks,

and average First, with few year year the program, the Globe approximately with for repurchase $XX these share a liquid ended liquid company stock fourth for of position. assets of repurchases and $XXX.XX. available XXX,XXX quarter, let our parent of total The common share shares me cost the million. the of $XX discussing The capital million a minutes Life was In $XX began Inc. million. price spend approximately assets liquidity repurchased

the average For cost of share million X.X an $XXX $XXX.XX. full year, of million price total at shares for a we purchased

shareholders to payments dividend company the million approximately shareholder $XX Including XXXX. returned during million, of $XXX

assets cash during in to The received subsidiaries, the flows by we full the as will the define million and held from company's the for parent and return excess parent to results parent dividends In company paid the flows, will the it, generate by dividends shareholders addition its the primarily cash approximately debt. to less liquid to parent parent, excess XXXX. year We flow $XXX from excess is interest anticipate company's repurchases. be share million available of the through $XXX on form cash its

primarily to be XXXX, higher XXXX are anticipated primarily higher Excess as thus cash flows providing received due XXXX. dividends to to increase million sufficient were in the losses is than higher life parent estimated those of XXXX offset XXXX to anticipated compared in to statutory to in for reason realized earnings in XXXX, this in claims $XX due are favorable The which XXXX. approximately than in

to the $XX to of expected using So million dividend payments. form available the million parent approximately million the of we our in assets $XXX million be million $XX approximately $XXX $XXX anticipate to to liquid in million of $XX generated flows anticipate $XXX of million plus excess having liquid XXXX, the to cash shareholders in of XXXX, distributing to which we assets

information use the other will possible. from after and in that company year as return believe share new the As cash subsidiaries should efficiently insurance mentioned excess or anticipate repurchase future new modernize transform as available cash by sufficient on XXXX. to parent insurance generate our share we provide over and during alternative our to shareholder is other of and primary technology to program The share will sales, shareholders received support needs. payment operations -- the alternatives. capabilities investments amount the within maintain is operational previous made We still our remaining their noted long-duration the fund Thus, substantial well the as capital after yield acquire our have use parent's dividends. as of calls, operations our the levels to best continue assets the targeted It our to cash that repurchases flows be cash be we repurchases other

ratio targets insurance of action million our $XXX ratings. company earnings during $XXX our goal is occur million to our to In consolidated current subsidiaries, regards repurchases will year. range With maintain we estimate of the to Life approximately the guidance, levels level to support capital in our share to levels XXX% the Globe capital RBC our necessary a at XXX%.

consolidated the XXXX. calls, our As RBC ratio at discussed was XXX% on previous end of

since For not finalized, not financial is are ratio statutory yet XXXX, consolidated known. statements our RBC our yet

final the being additional RBC be However, XXXX range the made. will of anticipate capital middle any targeted we contributions ratio slightly our without above

obligations the Now current with regards to policy quarter. for

included results available previous financial XXXX have quarters we -- have on our operating on we of the As for discussed XXXX LDTI calls, within and in the information historical under summary each under supplemental website. the

that the channel. exhibit remeasurement an gain loss or distribution included we addition, In details by

health made of quarter. XXXX. on noted also quarter in changes were assumption assumption the were As made previous third calls, the and No changes life in fourth

loss In addition to indicates the impact of assumption changes, the experience remeasurement gain also or fluctuations.

obligations experience our were million fourth of fluctuations in claims experience health $X persistency. the policy primarily mortality of to lower related to obligations obligations, gain of lower For life resulted of result life policy remeasurement favorable favorable when assumptions and quarter, million versus a and expected. compared policy $XX The

lower $XX full segment experience-related obligations the the life million remeasurement For assumption lower encompassing $XX million of of and policy Life year, and gain policy health for changes resulted both fluctuations, the obligations. in

$XX quarter row remeasurement a with second than the gains is greater million. life This in

it as the encouraged And Recent to recent quicker trends, half continued favorable expect update few in above the inform trend. should Recall the if assumption quarter short-term we recovery currently to mortality indicate extent to first our will over mortality trends in the experience, endemic The assumes continues, life in third levels continue, -- XXXX, years. by current assumptions. assumption. our endemic slightly as may XXXX. of XXXX gains pre-pandemic our levels next mortality returning they are would remeasurement a mortality the well than We

respect to earnings our guidance So with finally, XXXX. for

'XX. representing in previous earnings X.X% share The my midpoint range. back year and be of will the will the now full range recent at trends to estimate our are turn growth is of net XXXX, mortality than the $XX.XX in diluted I favorable $XX.XX comments. the the higher operating per we Matt. to midpoint $XX.XX, call For reflects guidance Those continuing

comments. our Those Tom. are you, Thank

call for the now open will We up questions.

Instructions] from with [Operator Jimmy question comes first Bhullar JPMorgan. Our

remeasurement the when or experience in in you gains terms actual on variance your and of reflecting What's on losses? gains So quarter entire experience, remeasurement given the any the policy first, a in quarter portion given are only gains. of it in the just you see related

full experience the versus valuation what and the we assumptions had quarter that reflect actually claims in difference what you our in incurred from Jimmy, between we occurs. expected lapse it

Okay. But then when unlocking just not your you're any annual you review? happens assumptions that do

Yes.

Our plan is the to in unlock third quarter. assumptions

quarter fourth quarter in that also good updates experience and third fourth as make So development we've X assumptions. for experience continue that of decision of We'd XXXX. first in seen would the quarter. before the -- like experience to XXXX see see half then quarters underlying a we it instance, like mortality to we that to our the to moves into And inform the -- of our

an that the least impact Okay. a claims. and uptick you disenrollment at Sup Med as it And claims any seen? health And seen raising few you've because much Med seem potential business, expect seen, in Med on result. then a in what health sales do a Advantage of Sup from like It on of they're insurers Advantage plans? Med is have doesn't as not But prices plans. significant And uptick you've

Yes.

and the Med year. little our XXXX a that some into group Just business, our on seen XXXX. for increased side. over reflected our increases the in Sup, group so we projections from experience claims subsided later trend then course rate We've our more for a trends have but those bit on And rate the of individual in -- both

to continue will trend rates and into build we're seeing year. So the that actually, we following monitor whatever for regularly

second question your related was think I then, And sales. Jimmy, to

moving impact and us. little had the we've Medicare the past, bit a Advantage on mentioned into you that in people plans, as saw As of

that the XXXX more increased you've there plans. cost disenrollment is perspective the sales be offering extent there side mentioned, to some from those a trends out costs you're by competitors seeing is or, might as from So

could that a be tailwind think I supplemental for product. for our us

really is going keep in and over to of goal coming period time. a that see and we pressures Our steady competitive market, long

from is really short-term and to ride keep of achieve price So goal what want out and dislocation. our to for kind fluctuations of the some steady ultimately we market

in And lot hasn't if rule proposals? any the if more. rule the on scope been the just Tri-Agency's any health business a of impact And plans. benefit your that? on changed about confusion from There's Are one I expect Okay. could products ask of your limited do you of initial

Well, the Tri-Agency plans, in health right? have those that primary short-duration the we any of rule, in our we It was plans supplemental some target So did also products don't portfolio. do health there's comments be a broad to whether from employers, And of sell. but been spectrum been it's rule. And that unions, of quite themselves. Tri-Agency constituents, companies reaction -- -- bit that bring a

something So very actually upon we'll But in it day, the that And in efforts. to of happens we're comes come that marketing to end really that don't to expecting the as we ruling. out waiting make see out significant having what our what see We're a we April. rule. at make, depending to need within the changes impact overall

John Our with Sandler. Piper next comes question from Barnidge

updated your maturities? you talk disclosures. Could see I real outlook for your you maybe 'XX estate commercial about

Yes.

of $XX our use, million $XX Of have about loans commercial XXXX, $XX that For we about million office million of about of is buildings, which million about mixed total then of mortgage we and maturing. $X is have direct office.

now kind what course, kind of exposure this is right next of the year. office hotspot, of think is maturing you here So

below over we've Of those do that total, $XX about and optional maturing XX% -- LTV at. average, we have some on any continuing million. about a XX% $XX LTV it's of have And then looked $XX between million million, have what's so a X, in do extensions. about And those on

good into a those So beyond. on of could it's 'XX get portion or extended

around short My environment? floaters? assume follow-up talk Can question. What does the you or sensitivity the to the outlook rate about end

of the asset on Sensitivity particular Yes. rates class? this

the for within net just I'm income. generally outlook investment No, talking

benchmark. the over see It's we're of -- basically course XX kind our kind we taking benchmark, we mostly kind on the rely of Yes, Okay. XXXX, of of year.

the bit well. the course you now, right see the to as we of of being spreads stable, the I a little the tight. so are But do expand year drifting that over probably course as relatively Currently, year. but downward And extremely expect over know, that

we our the And so guidance, little And we're due It's maturities spread. around declines in a largely the XXXX. to lower into for in had to it's expecting built X.X%. fixed our bit than be

at look 'XX, our little you was If average. bit over on a benchmark just

over Over getting the point It's X%, course on fourth were investments. during really nearly up XXX of little the tightened the we spreads basis here quarter. those a year, but

higher expect don't at time, we least at point spread continuing that XXXX. in So this into

Thank answers. the you for

Krueger Our KBW. next question with comes from Ryan

question on Income. First was American

up become And productive, at look to I -- average on? XX%. Is agents full X%. it it the disconnect there be curious what that if year sales was? producing more agent year was XXXX, trained think the I or first going just up for needing to else But were something

year. really Yes. And of in I accelerated just look is agent of think to at the the the count half last things X the growth

So at growth if X.X%. QX of basis, X.X%. then was from in sequential And you QX QX a XX% that just QX a XX% and kind over perspective. was look was

really well perspective. of So accelerated XXXX which growth year, bodes the agent very from in the a the last count half

the there agents getting bit productive. past, a of onboarded, lag as little usually, in about trained we've be a will those talked new and So from

productive agents agents. than experienced newer Our more are more

And so guidance. should as we XXXX sales about thought into that forward our carry

So we timing generally look at a that of little lag. as bit a

look count time, directly a you period a look related things, looking growth -- a year long or count of is start over a when multiyear you it One if at, or basis. you on the sales if agent at of to

is within sales CAGR our growth other, of generally agent Our our our -- X% as and an growth. our all agencies, example, count across each X-year

think a it on So we really about basis. long-term

Income. quarterly here is but where it talk XXXX very calls, about I on bullish we think a course, I'm the basis Of for to out American on going on come

the but where at LDTI get back trying it was this How you seeing I'm maybe look where population I the to had does a I remove mortality? on know trying is it of this even kind if to point to XXXX? in question -- equation. to of still it and look pandemic company, excess stepping the did sense relative is for some from a way, the And at just then before mortality fully pre-pandemic mortality. though mortality don't back And

Yes.

So in was the gains first year, The of the than saw second year. remeasurement half lower the in quite a of quite mortality bit a bit were higher. the half we

does So fourth a to seem that's And mortality third there kind quarter. the change much be to of quarter, it's really happened levels. kind coming in and closer the third at looking pre-pandemic of

time And fourth all period. with takes fully want the similarly claims would paid develop see more to little of quarter that quarter, and to adjudicated fourth get the -- from we a bit to the for

claims to see into pre-pandemic make and sure to those levels. getting to like develop I'd close and actually sustainable. But fairly QX it's we'd at that continue So it's point, QX this say

our have what dropped had quickly to more assumptions than mortality seems excess anticipated. much that So

fourth I One bit think said, seeing issue across generally thing But all clearly that the -- here seeing across we're early with seeing higher And then the definitely it I as the a would look pleased we as add and really the that little third we all were we're what was we Tom into in year. or it are to quarters. was And that improvement years. in higher distributions. it is the it,

the end continues a that couple I as that out clearly little we've favorable. overall quarters we here And that fashion mortality, in was plays year. next and at is kind of a fluctuation or that had bit of see said, Tom think just in of kind broad-based here if want improvement to it the itself if over a the of the it it's see So which how

see out. we'll So how that turns

with Our comes from next question Jefferies. Suneet Kamath

more about little guess plan a on acceleration recruiting productivity? of focus keep and shift I 'XX. gas of think kind in the maybe foot You the to we on 'XX, is the talked second there as in or bit pedal about half an the

I'd when say we're such those have on agents of is more toward of lot the longer, our there a we perspective. productivity experience. byproduct have a to it of then growth, have a -- really training. natural a fact more from of trained going focused would getting still kind be significant that off -- in more But shift they're not is foot retention. better, gas recruiting the and They've been a And take

is in our that the and results So really on productivity. the retention focus training higher

And so over just half year, the we've had real considering the growth our this that's accelerated of focus. last

in Income, The see trends I'm continuing other And XXXX. have up really been to thing throughout is our agent in move to agent pleased XXXX. retention fact, American than trends higher our retention are

So from disconnects some there during were obviously, level, a pre-pandemic pandemic. the

coming put and it kind And and through of where are that XXXX retention at we stats hiring the So we in Income seeing perspective. in that we from going up our are vintages in happy across that American I'm different -- we're were look at prior. place numbers very to those see a the efforts all retention

as bode going very that's to think performance I So well. XXXX well for

midpoint. going capital? assets the as on sort range, looks buffer, ratio at above be -- level is your Got it. And comments, company holding of to just keep that there about liquid based you the a as of slightly I excess we in then to think maybe Is like think just RBC it the your want a

keep, to range $XX for the million million parent liquid tend our We $XX company. of kind to target Yes. assets at is

up? like in. looks like doesn't but tipped bump your one little And unpack I sneak income, a just drivers? you Okay. could seem 'XX investment EPS that up it's curious outlook you Can more bit. just It caused maybe it. if some Got just what It of the

gains tried continuation potential what guidance reflect just and of of what a is the No, in assumption gains in we've as Yes. QX. those biggest life we've see our we is driver the as reflect to change is in well What impact XXXX. remeasurement to in segments remeasurement seen continued QX as the range potential

embedded That's it. in already? outlook Got your

outlook. in It our is embedded Yes.

with comes question Our James. Raymond from next Burdis Wilma

high sales the there little tailwind segment? now? guide or market is the I a growth, you've what's know the in had talk driving you bit about strong attractive market any count agent but in Can that's the health more very anything right about

driven Heritage, on agent XXXX. it's sure, Family in based count. Well, on out a for We CRM rolled system

of on Family exclusive included the we side. continued Heritage that on positive productivity recruiting So see momentum the agencies, helped side. all our Overall,

to of good market good very that had side, So XXXX. -- growth anticipating Sup times, that Sup QX lumpy, A a what was individual both well. have anything then Med but strong very market that in individual kind the very as sales our on strong is there Don't group those the side. we and side different the QX, suggest be see recruiting was in see sales experience that we would group can should and the is there. And was we're of forces. lot out Med but in Clearly, on nice

back other adjust is earlier, what sometimes in competitive depending on sales. kind our our out with the beneficiary mentioned we're the to of of what and to and that and market the steady are highly pricing changes pricing on Medicare tailwinds -- accordingly. a Again, And targets market, additional folks and that's others get I've some do. there, marketplace pricing profitability extent price course objectives that that's depending so could Supplement see We

on follow-up a then And Suneet's question.

life how throughout we should XQ? mentioned the in think the the end year? you'll back the through guide that about because coming Should higher review weighted towards think that You we of that Or about being some through. includes it coming mortality

of extent quarter. and in remeasurement we little would quarter, quarter. The would bit update, to higher, quarter the because In the first just continue make seasonal be usually gains third second mortality assumption is in flu. first that the an that Yes. a And

And a mean quarter. I bit first to see a we -- so mortality we little other deaths. higher may see is that little in would we it expect still the thing COVID expect

COVID out there. is So still

We expect XX,XXX the deaths in next XX,XXX that we'd year. see U.S. to U.S.

be second should little third bit still the revisit We'll well. see, And remeasurement I assumptions that's So and the as a gains a quarter. in if quarter first fourth think reset But continue, and trends expect quarter. in remeasurement will those lighter. you the to factor probably quarter

ISI. Evercore with Gallagher Tom from is question next our And Instructions] [Operator

follow-up the to Life. gains. was on in when gains Just on at big heard on margin you And XX% if Wilma's remeasurement -- had XX%. correctly, a The XX% XQ, that remeasurement you I guide question so

a little Is because -- bit trending. deferred through the it's be it So benefit them is going Or just you're to you're or terms part like emerging 'XX? where of here the it's that's in midpoint that underlying of gets gains is at profitability actually that piece get little better? to? least So a Or gains better of above and at assuming the remeasurement that little earnings you been of really it that are least looks a those you've in the amortization experience through guiding deferred that? themselves getting some

kind kind about, We you that, the fourth where of the time, say, as at was where of XXXX, that it's kind you have say, would fourth in in had right? Tom, on would quarter -- a have I the what set margin will, of the in point XX% think had for if would of That a long-term from in is of of basis. midpoint about expected you a at that have you the been which the we we -- expectations, would quarter. that where that margin Life overall

And talked we and a we having overall higher continue expenses. our And as a business commissions. capitalize Life expense higher and amortization so on remember, we renewal had little little about to had amortize we higher

favorable saw in a remeasurement the gains offset And was in so that bit of that of was with 'XX, little that and we really drag a XXXX. some

in a -- 'XX and -- So 'XX and bit less that than if we will, margin between 'XX. saw between overall you increase, little X.X%

in in seeing that So remeasurement margin improvement that margin, mortality what in just expectation overall for is what anticipating you're that that from I improvement XXXX. we're and gains think

So that's what's really driving that.

amortization course So itself Income. we American we're better that -- we'll over probably in increase of both margins remeasurement really next to amortize And to to few end higher which is the in and X.X% course little the at still going as manifest of combination capitalize bit a the year. commissions, renewal to between then continue representing mortality, that up higher really about over going those gains the X% especially the talked have expense amortization. We've the having of our years

helpful. That's

favorability expense drag of you underwriting? bit when maybe obscured due to of a level So the little which think -- the less has

correct. That's

'XX, not a had future time? had some it year just period that remeasurement back that meaningful? I a In like at I -- earnings, And such there's will Now favorability is want meaningfully the sure meaningful to thinking gains, gets because that you amortized earnings Is correctly, of you where getting of though. it that I'm particularly where about half over deferred -- is that make of long back and through significant piece that all? experience Or the then amortized improve of believe. like

It really over of out period long is spread time. a

need in So is set it's benefits. for and the over percent to obligation future premium that reflected we of ratio to pay spreading aside time that the out

So over Yes. quite out period time. of spread long it's a

The ratio, business. life conversion about just business, the if and XX% But the on of average. because you've good That of share And amount so writing way exploring I to EPS ratio intensity a million XX% XX% improve just is for just recognize to repo of live the Globe solve that thought willing industry if ways then just insurance dividends $XXX GAAP look like the all? the just your -- And the when that industry for the at a could. free is XX% I than guidance Or something one cash 'XX, to curious only that's you're -- updated guidance. and faster in midpoint. consumed capital flow company is of I more, And going about it's if average growing with? a to commission have conversion to below I at at the new

mean continue that us really the I differences they're that that what really making those make conversion at articulate that cash those a to what understand is look up we're years, investments earnings that are Yes, for if then statutory make -- -- in GAAP and as need what seeing really Tom. we thing as taking from our sure something that that long drags between we're the that of portion that's that our to XX% we means we're to businesses, having but see where we can XX% sure good the that a term, that's we growth that we good as we flow a technology to to agency conversion. portion continue as growth setting our making well What perspective proving are a as entails. Because -- stack future, cash is for seeing flow the investments right? in of and clearly driving earnings related those that's

also to can at conversion a we little get take order in can that something closer have we'd make there of a in -- want look but defaults are are there, sure look then take really But we the like had we're -- we XX% a to that not And capital taking ways to -- probably drag and of addition, in it's would bit better a if at XXXX. -- we we to that had that get the -- manage the to where what the losses we rate. that and we sure had to

XXXX. bit little a on here, drag conversion a that's flow So in cash a

a some see on we go-forward And headwinds, basis. so if we'll where that what of really get looks like those past --

to questions, any turn have no Stephen like for further back to we call remarks. Mota over the closing As I'd

joining morning. you Thank this our All for us comments. right. were Those

to again We you quarter. next talk will

very today's Thank you That much. conference. concludes

disconnect. now may You