Globe Life (GL) 23 Apr 242024 Q1 Earnings call transcript

Hello, and welcome to the Globe Life Inc.

First Quarter Earnings Release Call. My name is George. I will be coordinating today's event. Please note, this conference is being recorded. Instructions] [Operator

to today, like Relations. call to over go I'd Stephen turn Mota, host Mr. sir. Investor Senior your ahead, now the Director Please of

Thank morning, you. everyone. Good

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

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

Some non-GAAP to earnings of our of measures. may our for terms these comments also GAAP measures. Please discussion website and contain see reconciliations and release

I will now the over turn call to Frank.

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

or income, accumulated other equity of and is XX.X% value return Excluding comprehensive per XX $XX, AOCI, year up a ago. on is book March as share XX% from

you regarding take on short like have inquiry, to time to of attack the DOJ address many moment company, recent by we'd the a continue, we Before a litigation may and against the seller. of questions company dismissed the ahead

most. in-force, shareholders. we us products, our protection our over we of that further the to of time. business XX sustainable value model our will stood value continue company's the And today, provide for customers long-term strive to be we and as growth need generate policies XX test the earnings discuss over when our millions there customers million years, of For has With

level and that levels strive the you our at accordance ethics of and Board Globe Life, its highest assure organization. of want Directors all in integrity act the to We to management of with

review present of our the of company's While given we we believe of what of integrity operating international can and seller's overall the and commitment appreciate, the you of the ethically, demonstration misleading its seller's to of Committee company as investigation out the in law to subsidiaries, initiated short has a retained conduct we the picture assertions review and independent the WilmerHale, Audit the a short firm, Audit an say. in the independent false ongoing limited nature can for DOJ's by respect are Committee, reportas the the claims

we possible. taking to this is additional extent not issues may address today, questions have our you to For any be the although questions reason, intent understand these we on will

when and as updates provide will We appropriate.

and September of On was tolerate, business fraudulent the X as First, brief on on a Court the the record, the case we States allegations prejudice. the on XXXX, demand and Western the which, with X, want independent the XX, of contractor of claim independent update for former a the dismissal the of claims that claimant prejudice, contractor. the arbitrator as or a After for District relief discussion United with XXXX dismiss panel. The XXXX. After X.X Renee the filed neither an Zinsky, agent, participated included March and of before the you District her selection lawsuit arbitration status many April provide she begin purported sexual practices, night we years dismissed the harassment to of know, which lengthy to by scheduled claimant in sales without misclassified of arbitration X, filed claimant of on any Pennsylvania decided panel the and obtaining litigation, hearing affirmed hearing, was the to the payment.

and On available Income the more Pennsylvania. publicly to and sales Also in those filings detail, And to The March and and with DOJ. fully sell Attorney's are cooperating of process District subpoenas, is the in has responding Income late noted the Income company interested. were asserted These Global Office not these DOJ in from the an are the The XXXX, XXXX, policies. have court received Western licensed which documents any matter American been not with Life investigation. contemplated Life X-K, or claims filed contracted organization respect that Income agents for related governmental Global the American for is this made addressing by legal in and American the X-K currently sought any authorities. of received the are XX, subpoenas our certain insurance company Arias who to U.S. aware practices allegations foregoing subpoenas company American the Form in against to by proceedings

does and be this evaluating not are were and possible While management made we still reasonably will believe in to not is either that no now, company. or material subpoenas believe the assurances can it received, the result when the probable investigation matter, did liability

the request did XX-K. As from such, DOJ in the the disclose existence not of Form the company its

additional We matter light now to of are regarding you in raised. have that recent this providing been questions information

Matt?

company investigation the subject attack Thanks, lengthy were a Most recently, the on seller. and Frank. of both the litigation by short DOJ's the a

about company we generally Life revenue. report and reports how instance, Income. insurance facts picture been lawsuits and believe of seller's have dismissed and lack this misleading publicly, Global a overall sources, we the of stated demonstrates on litigation, that false short and allegations in it a fundamental the In proven operates present mischaracterizes business understanding and to life anonymous our have relies we of many As American report and believe the not

monthly. statements, collect long-duration we due life premium revenue insurance and the policy Life have As when reports audited payments of revenue premiums Globe the annual contract health the our disclosed are in and financial matches the we and for holder. products over from recognizes from closely life cash Therefore,

year $X.X available billion. American the at the same financial of essentially Income's history compared section supplemental to the collected and income of website. as Investors GAAP premium on premium fiscal in is A during reported example, payments included information were XXXX, GAAP Income's premium our the collected its premium American For reported

report only filings, our have calculating disclosed are and and control policies public Income, underwriting the And we first been in ability quality our keep policies pay customers in time. policies net after the sales canceled as of their to business for Fundamentally, success our through that their Now net rigor policies and processes. over on after when exclude our continue who sales they we and XX days underwriting selling issue. premiums depends to our American

year-over-year. have do business, so of continued Now to this builds a we solid book and

GAAP over website. premiums in-force page that Financial received year. American for life total In first of Other from XX% Income's our X and fact, Reports policies Financial the of year in renewal over are see under our the Information section have premium Please Investors been

more offer company. a who paid agency an income future. agents make policies, American agents structured hierarchy, by above protect designed better their tomorrow the XX,XXX independent the help office financial sell to Now commission by the override products writing families receive has whereas Each than working to agent

scheme There of there monthly premium to require is While the to is is the no continue. a premiums. policies hierarchy, for policy pyramid pay as third-party the there no customers payer

pay realizes stood model time. American when test this revenue note these of profits customers premiums is to in their only the and time the and common has business important over is Income It industry.

agents, providing of for for most, long-term and as business our shareholders, opportunities consistent integrity financial well job with generated owners employees our build We have principles security. matters protection value providing in with when and growth, as small to practices our financial a while history customers it business

for and the contractors inconsistent Globe persistency. Income place and with monitoring or data that are American has and businesses. including lapse seriously, assess and others, and among the to to independent each Life data potential unethical are business relevant and unethical their Notwithstanding Now deter misconduct, identify agent internal these has independent trends agency processes individual related company's regarding agent identify values, are agents agent controls and detect offices to fraudulent takes practices, policy conduct monitors actions measures to including, independence, metrics in

disclosed all amount and include for determining processes filings American by have state are must our financial lapse Income information disclosed policy our count are valid also supplemental to we annual appropriate license in Agents premium background These quarter their a suitability have the our quarterly agents. prospective Now rates each the issued provided. a rates with and in-force controls own on who lapse one's phased regulatory who licensed contract departments checks agent. be of insurance, in insurance

validate hesitated indemnity new alleging including sale to practices complaints to agency or the warranted, disciplinary and customer, the legitimacy a fraud, investigating agents has including the other notice these and American for And against allegations. has to regulatory Income Income verify termination not group dedicated assurance owners misconducts, responsible quality complaints of has business bodies. Income appropriate and raised, actions are calls when where controls conducting to unethical including to applications. deceit, American the American take

prohibiting on the based litigation. cause of a when and, seller's on an company's investigations. the violations relies short appropriate, companies Indeed, for This The by where complaints former harassment. they are review, employee is investigate terminated who, pending internal received allegations matter sexual was report following independent the subject heavily authorizes policies of

dismissed test also These lawsuit are that The prep by by an Texas. contains lawsuit of Income schemes. on does bribes test contract executives. not kickback regarding allegations filed aware was report U.S. prospective This exam we're District prep bribery licensing the any based to the a District of Court for or was company and claims insurance not any American to the recommend kickbacks and agents, Eastern with companies or company.

we and clear guidance this the our to based incorporate this providing and today make the want information business will our we on at of view the on knowledge Additionally, call be that time. projections current have we

to operations, to call Now respect back over I'll our insurance Frank. the turn with

was increased ago. million, our revenue Life operations. million. to year-ago Thanks, the X% life $XXX Matt. for X% first from underwriting year from a margin quarter In insurance up $XXX the quarter Premium

we For year, grow and by and premium life National of both grow guidance, to American the between the life X.X% our strong Liberty and between growth margin divisions, X% expect to at our midpoint and revenue driven in underwriting Income X.X%. X% premium

As of grew margin million. X% to anticipate XX% $XXX underwriting and XX%. underwriting to up insurance, margin In premium premium, of X% $XX health the to we life in percent to a be health was million, range

premium between midpoint year, health as the expect and full of X% year, health underwriting grow XX%. our around premium, margin to XX% At and we around X%. we of the expect to revenue a guidance be percent the for X%, to to For grow

finalized final various we which disclosure, minimal will final rule to sell The supplemental plans rule health business. health our as additional and, therefore, implement products impact consumer Tri-Agency we The with to was an regarding the requires required.

quarter, $XX the expenses Administrative a year up ago. million were from for X%

X%, consistent compared to our were expenses As a administrative with expectations percent year ago. of premium, X.X% a and

administrative transform, we premium, year, how X% to the XXXX, approximately continuing to we modernize For expenses due technology and expect we investments operate. and be primarily of as higher in than

call the operations. turn now the over to will his Matt marketing I quarter comments for first on

you, Thank Frank.

American the were year-ago which over First, was due let's to discuss premiums were in quarter to ago underwriting count. quarter primarily X% from and up Income XXXX, American life In life sales up agent X% first a At margin growth Income year the life to quarter, is Life. $XXX XX% $XX million, million, up million. of Life, net $XXX

agent growth is agent count strong the of third for a Income American year quarter in that fourth This XX,XXX. sales XXXX. for This up was quarter producing in another builds first from and ago. and is and average we achieved on the quarter The count XX% the

agent life National, $XX X% X% was up margin to were the life over Liberty health million, X% up $XX million, and and $XX declined year year XX% to Net quarter sales ago to due net increased primarily premiums to million. from underwriting a up At were quarter sales $X life million, ago count.

we a been our the on control has and policy report after quality Now processes. underwriting sales reminder, as through

investments previously have we to discussed, continue we technology to business. make in As enhance our

quarter. business at platform which the of end Liberty implemented the our life and underwriting for business National, investments we these new is of One a first toward

issues system this slowed fee of policy result implementation, down. our a As ] [ temporarily

see business of the amount from department Now the the to the XX% that from to field prior-year underwriting is pleased up I'm submitted quarter.

our for agent average transition up first system, from finalize XX% Now of ago. throughput anticipate count a X,XXX, The will we as year return to norms. new our policies this the quarter producing historical to was I

National. continue count be the strong We Liberty proud agent at to of growth

due increased producing on Average health premiums to health year-ago management agent investments were agent middle to quarter increased Heritage, underwriting and is for the to by million. Net in a Family count year focus million, increased At enabled X% Family million, margin to XX% the $XX health flat this continues was growth. ago. to over $XX agent up count our $XXX and quarter approximately sales Heritage productivity X,XXX, and technology. first from XX%

XX% Direct discuss life we this is have Direct life to due And campaigns million, ], underwriting to at let's to primarily million, have not while $XX decline year-ago Now the our as premiums to down the were Life, Net from Globe flat that inquiries profit ago disclosed [ division objectives. customer margin were did million. $XXX to Consumer. quarter. on year reduced quarter marketing life spend X% sales certain increased Consumer lower compared In as meet $XX at our we previously

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

critical impressions our provides of leads. generation to channel the sales Consumer support through to Direct and business the brand agency Additionally,

Agency. Now American let's discuss General United

increased margin $X Here, ago $XXX to premiums individual business. health X% from quarter activity underwriting is sales quarter, the to million $XX at ago year Health year-ago strong the X% year the million the over the million, in supplement Medicare down $XX up over quarter. were due million. health approximately Net

projections. Now let's discuss

the we At for agent on XXXX National, our single-digit we producing that trends be follows. and Liberty seeing the annual growth. growth. low as experience business, our average trends are based At Now to mid-teens Heritage, Family with count expect

Net XXXX to follows. be are life sales expected for as

Liberty sales National, down. National, Heritage, expected for growth; low to United American For mid-single-digit mid-teens to be double-digit low follows. Liberty Net growth. to Family growth; as Consumer, mid-teens General growth. Agency, are Direct XXXX health slightly

the year. are of agent Now events, we recent for based remainder on count on impact the very actively evaluating projected the AIL's and sales

we seen not a date, on to Now our pipeline. significant impact recruiting have agent

trends of muted As recruiting is experienced our should business impact any by have on produced a negative the sales. majority agents, XXXX

over of we business, growth full what than respectively. that agent estimate X our Income we noted the in come American especially growth our and the and today the the from be premium premiums have Life's should sales at AIL in-force in sales second XX% it midpoint account, into of on greater year earnings, been addition, to average year low of a and guidance, know count since That In impact have half for the taking the mid at single knowledge digits be digits, for year. diminished that said, policies single of

sales count are our of acknowledge does growth first guidance a quarter, the of sales this moderation growth to and and possibilities or regarding significant of lower. estimates in including range Due remainder We count be could and sales the these The assume agent higher our agent reasonably severe earnings of the growth, for guidance scenarios. range year. contemplates a the sales

to back will I turn now call the Frank.

Matt. Thanks,

was investment quarter. investment million, the $XX $XXX investment due quarter. operations. We the which increase will from invested was the to year-ago as now Excess net assets. interest, turn The define or $XX income continued year-ago growth the is strong $XX required average Net in million income, from to XX% million less million, investment we only up income up

investments Higher and fixed limited rates to liability. year-ago interest Required over up higher policy contributed quarter, maturities, loans, average across is the partnerships same in also growth as mortgage increase commercial rate. X.X% the interest short-term the

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

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

million we financial the XX invested $XXX in yield. Now and yield an maturities, of of in life average fixed and investment-grade This an the expected years. opportunities in industrial at invested primarily investment of In regarding higher average first than X.XX%, sectors. average was advantage the A-, amount We to quarter, our rating an take of market.

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

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

March and commercial fixed XX, cash of first yield mortgage partnership, yield was As portfolio earned X.XX%. tax quarter effective the the our the equivalent was X.XX%, the loans rate limited Including on from yield maturity

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

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

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

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

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

our regardless We or believe to returns capital-adjusted exposure the relative part equity While and of securities acquired this high our other such in real rates residential peers. BBB CLOs or fluctuations securities mortgages, that have assets we asset-backed hold in ratio little as estate the to ability is to equities, no maturity equities, we derivatives, markets. generally due securities our interest risk-adjusted, higher-risk provide peers, held to by best to

maturities below of investment-grade Below year remained X.X%. compared bonds The $XXX million, to to at low grade $XXX bonds fixed total percentage ago. is investment a million

of at to fixed billion an X.X%, million approximately $XXX approximately with of X.X% mortgage billion to invest the investments expect to in for At average characteristics, debt-like average an the at in guidance, we commercial X% of our expected to million maturities limited XX%. loans $X yield full and to partnership return $XXX year, $X.X and midpoint cash

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

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

Thanks, Frank.

and assets available spend with assets me let repurchase began million discussing First, our liquid million $XX slightly million, $XX share the of program, million approximately capital than had few higher position. liquid $XX quarter the the and a with Parent we of to minutes year liquidity that ended historically targeted. $XX

quarter, to company repurchased a dividend lower solely shares million repurchases the In $XXX.XX. million $XX The acquisition Globe of total price cost evaluation for at during payments during reached. the we quarter first was to the the is the a XXX,XXX potential of of Inc. paused the Thus, $XX had than first returned first shareholders share on $XX the shareholder conclusion quarter, XXXX. of until almost stock common of share approximately company an approximately the average Life of for including million wherein acquisition repurchases quarter share amount anticipated, due of we

the have to decided repurchases continue not possible. to We such, as soon and, as pursue intend acquisition as

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

to liquid to XXXX million flows than end be are the of $XXX remainder approximately in during million generate liquid XXXX, earnings which of of cash $XXX payments. approximately XXXX. $XX the million higher to the for in in dividend the Excess to of $XX $XX along million we assets million XXXX, as with due of has assets million estimated distributing to the primarily available of expect remainder we the cash available those compared higher to Including the XXXX, $XXX XXXX shareholders parent at to statutory in anticipate flows of quarter, $XXX our excess to in million company the to form

efficiently alternatives. yield share shareholder At will provide on as will repurchases calls, this cash flows over believe As we to alternative excess payment other use of dividends. parent possible. the of to return Thus, previous that time, the anticipate our mentioned we or the be use continue after -- we investments best cash other repurchases our as primary shareholders share over

some approximately the remainder share the we anticipate the At midpoint they $XXX repurchases our current third and fourth million our that anticipated to the repurchases consider occurring of favorable, we quarters. flows and of That consider conditions, will of the cash market clearly year, earnings with million should may $XXX in and guidance, said, in portion for of and second XXXX. approximately X/X quarter remain excess accelerating into accelerating XXXX

at our to with levels capital Now our insurance subsidiaries. respect

Our ratings time, the over end levels goal Globe XXX%. the consolidated had, current $XX RBC At to to ratio, consolidated action-level meet the XXX% capital maintain of a subsidiaries our target XXX%. is was Life to needed company million approximately support necessary in RBC this At XXXX, of low XXX%. of ratings. amount the consolidated RBC to of at range our our targets -- ratio our that of end capital

Now current with the regards to quarter. obligations policy for

have or information details supplemental by distribution we the the our we loss exhibit within included that calls, discussed on on website As prior gain available an financial channel. remeasurement

in the assumptions XXXX, life been and the quarter and intend made life reminder, year. first this a the both to our quarter of updates we long-term assumption since. third quarter of third As period No XXXX, and of in updated changes there in our and update the health were health assumptions, to no assumptions have we in

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

fluctuations assumptions obligations to policy of in gain and to life our $X The experience were $X related mortality remeasurement quarter obligations first resulted obligations. of of policy lower XXXX, persistency. the of health when favorable lower and million compared million policy For life

of life quarter were the to of high year. than life due is XXXX the gains remeasurement XXXX, we the seasonally which last the sorry, the half in part -- in expected, As in first half lower of quarter rest claims this versus believe first

encouraged short-term be remeasurement life trends future the to endemic our policy by of recent well experience. mortality our of third continue and obligations experience to mortality update encompasses first possibility through half quarter earnings recent gains inform in range We trends assumptions. the XXXX. favorable guidance the The as as the The of XXXX will XXXX

last As endemic should assumptions they on mortality trends, we next the a recovery years. our levels pre-pandemic levels assumes currently slightly noted assumptions. our call, indicate if our continue, Recent few mortality than returning quicker to current they over above

XXXX. guidance to respect with earnings for Finally,

to point as diluted year greater net reflects than anticipated our in estimate For midpoint $XXX the The range full and recent of from of $XX.XX earnings previous midpoint million share repurchases million will our of the the a investment $XX.XX growth guidance we XXXX to at per addition $XX, in XXXX, operating results, the range. and discussed higher representing earlier. impact be is income to in share $XXX XX.X%

return my comments. back Matt. call are the now Those I'll to

we'll the Tom. you, questions. are and call open Those now comments, Thank our for up

of Bhullar is coming Our JPMorgan. first Jim from Instructions] question [Operator

process be your regulator, completed, giving Or something that, or Would on updates? a be assume get going So if we is just out earnings to from first, investigation? terms filing? you other actually events? put -- the a more your you'd then rough of what's going once in idea around going is it should scheduled a calls investors forward WilmerHale question or timing on request to of had I what's And the a

will filing. investigation providing updates X-K channels. we'll happening put that in more that. as it Otherwise, through our needed, from through that of some normal be are out If be obviously, updates there's appropriate term. the type will be WilmerHale near material any we'll the And Jimmy, on an

it so? even term, slower? to or a Or or trying like quarter faster near sense. some -- Just And is one it get is

I we going time think really frame have that. specific the earlier, not ongoing as don't respect activity, We're in comment. mentioned to on of a

are realize sales the are far And you're of of you've terms implying other your policies on where from affected or have business weeks in agents, -- of the not but parts I is gone aspects any of retention seen a you've of thus period, impact of then there far, or of on and been over or other short thus persistency what's that impact X Okay. an you're impact too couple -- longer an past that where business seen short affected. weeks? on your business term But either the term

Yes.

As I've earlier impact. mentioned we're an really not ] seeing in the remarks, is [

we're would I place seeing first agent think and pipeline, not the up there. The an it would in show be recruiting impact

As well limited as from a customer perspective, we received very input from that.

days, XX,XXX day. or X. X And X X, has a to in we're receiving For point that calls. XX,XXX early the about trend reference, we receive Recently, calls been of

an from on thing, as now receiving our also agent X agent the same topic. line well call-in We just calls minimal have and to as we're well, field this

it away or Or on week? blackout is And buybacks, on goes later expiring next today or is your that the tomorrow? that

course open goes be able away it just we're to start the buying Jimmy, Yes, shares. back normal that in to tomorrow

[Operator from Instructions] Our next Ryan coming question coming is Krueger KBW. from

first strains. My year? free you new the from I'm new trying -- quantify business your what is, business a question in cash help strain amount flow of can capital typical can guess us the I you on you quantify do in-force versus free cash help that, generate is, the please? typical you trying Anything of separate to can to flow to understand amount I'm given

strain channels, rule actually of agency On lines thumb thanks kind of given prior sales. we a for that, to calls, the in XX% along Ryan, of XX% I've increase about the of any for question. expect those statutory

same as that had we in a work way would So reduction if the sales.

frame reference good gives determining that for of you So a that.

in Got what be? But free higher That's the sales flow sales. -- of how sense about if had no much Can change cash new for all? your you it. at what would give any you

thumb Yes, the same of rule works.

would be following that increases had statutory cash yes. flows an current excess be be flows. no in those the half And year, in earnings parent, important if of So sales, at then to would the in is the note would increase to we which in -- the excess parent basically thing year, cash about the

And transaction be it where consider where is valuation value transaction trading? that will trading it. your versus stock may depressed and then take portion monetize in additional given you multiple, differential your reinsurance you currently currently buyback but in-force be the an stock into some Got existing to looking the is of to to capacity maybe temporary, price would to then of the in-force like on able get a lead advantage your to

Ryan. Yes,

I look of think that how That take we at look some would that one that if various we for -- generate see the be makes or of might sense. we will and opportunities just into. financing a would options

Okay. sense commissions commissions Great. how business? the And give you or Can or any you then renewal just in meaningful pay of vast the year. between that of kind renewal one size the majority last commissions versus mix first paid one. year quick trying to on first Just

year that to want here. off I be to commissions, don't I I with Ryan, say, the say do it want I that. to have do of majority right is careful the first top want that but

look Yes, to at renewal filings are than I'd I less there. we would think and statutory renewal some commissions of commissions could mean But I I premiums. renewal think XX% agree. the insight our get

of reference. be that good a frame So might

to Autonomous move Carmichael from Wes now We'll Research.

in of about Does your buyback bringing remarks potentially the maybe or decision back that regulators? depend and any on prepared XXXX. outcome accelerating the review WilmerHale by talked You

And that are today, in to able looking No. I at obviously, timing the just we're we're well. resources know for -- what as conditions to at accomplish of market mean the buyback. we be looking

to than less we clearly shares, for if buying value. very have book good be an that so opportunity We return And that's for a and believe our back a shareholders money. good very that our answer

that even balances of pro kind year, of as the we when historic the we our course methodology that typically, Now over our timing our you dividends to over -- from out, years. of the the subsidiaries, kind of has the of buyback receive some kind time. We rata and that, of use our course help been get over of know, CP we

kind else things XXXX ratably would as the throughout being of And remainder the so liquidity we available. becomes doing that equal, all be of

be being of to timing just we'll to just fund depending the those. opportunities that looking so some accelerate And of at able on and

And repurchases it. you guess were part the ] of the quarter. out that press Got blacked mentioned release I for [ of

you You could maybe was potential confirm, that on you talked would can color that But provide a acquirer just any of And about be the bit. something? helpful. more little Globe

should acquirer. No, enough were enough of January, we into to it's the our Early period reached an respect transaction the where thought repurchasing ourselves in be at shares. were we the a to decision material looking we to that would Yes. we we put opportunity a that and happen, with be where going actually probable blackout

his in comments, noted Tom As considering we're that longer opportunity. no

-- anyway the material Of course, period time during have to the and around we're normal where a knowledge not because such. knowledge month prior call our April, of during earnings of blackout we in that we're -- -- here

So I've and that be to mentioned then out tomorrow. as -- Jim, of as coming we'll

coming from Sandler. to Piper We'll Barnidge John move now

expense the The admin cost include of the guidance WilmerHale for investigation?

what I estimate that would everything overall be that of overall given. have say guidance would our know of included in today the we we

And did you cause repurchase some Just you transaction sizing period? few get that to at. what trying looked the a at Beazley when Okay. years looking then during a that of were ago, blackout

just It was did. It shorter period a time. of

come Greenspan will from coming from Fargo. question next Our Wells Elyse

you deal. when was potential M&A the I because longer you a My your to was you price walk stock made the where walk you the decision? first Or did choose away property? question, in were no function of it on because guess, also guys interested away is Did

of did up as a walking We stock primarily of the price result we're end away today. where Yes. at

best As if got for we and at the and toward will, to you did acquisition the be what that interest. best to decision able shares being shareholders the looking shareholders, funds, our funds purchase to in give be our the utilization highest -- risk-adjusted would best our repurposing of returns of we the own make any our would

have looking I And like are hold quarter? try guess, we properties, that on to the attractive? I buyback, remind might some mean, sounds you perspective, an for just you as like then a in us can been you with just But maybe guys M&A at from a what it get of guess, the you find obviously, while I deals. would sense

Yes.

as opportunities we markets. middle We the look like our at typically far As in M&A goes, are that income market.

also We profile, we that of in the distribute the profitability like products the of those. form risk the profile

life supplemental So or health basic protection products.

from direct-to-consumer perspective. opportunities We exclusive or also like a distribution

up, business M&A through is think we our opportunities. as And model, the we framed about that's look that's so as lens current

from Wilma to go James. Raymond now We'll coming Burdis

the cash Could excess a the drove guide? little XXXX up bit you prior talk versus what flow about

bit parent. we Yes. was just a bit dividends seeing earnings Wilma, from to a it We're little the little finalize higher XXXX. really statutory the higher earnings subsidiary as

just in When fully for Yes. think the February. of timing really our XXXX statutory completed some don't that, time blue we book get about until

have the it So quarter call. that time that after -- the will we at first

that favorable And what saw add we I mortality fourth think is third XXXX quarter consistent I'd and well. as the that's results the of with in

following And you a forward bit could XXXX on excess Got to bringing question, -- flows. amount talk how little just earlier you. quantify or that way up work? any about there you maybe about talked Is can some that cash an

on over to And about flows, really over there that isn't. We'll our cash a to take time. the at share we and update give Right of that more clearly changes next look should just we'll situation, price our just on think able and now, the time as be look at in where have we call. Wilma, availability

Our next question from from Gallagher will Evercore coming Tom ISI. be

at Curious by like why here the DOJ on just the involvement question there's subpoena. a first, any all. DOJ Just

regulators, state considering sales just insurance just of of regulators? of is perspective the of here? But Just stand-alone? I insurance subpoena it thought Or insurers a there on federal practices going in not -- on what's life -- body. kind with any was that any coordination is domain And

you related an earlier just what that's thereof. our prepared in we of said earlier, the As activity remarks the refer DOJ to I'd back I've the mentioned ongoing subject and matter. to our impact of assessment

we just opportunity it cash a excess would equity the follow-up finance you what the the of just I then And sense uses Or using it. was for on have blackout, just message it assumed is -- since flows, a were with on it? should that question want decision to looking to would been have cash material, Okay. here ahead guess of M&A I you for M&A? was at, to get excess a flows not go the

matter of that think just regardless looking a we at make should be don't of equity, how I Tom, of not at were looking better would Yes, necessarily. We use funds. it, -- with a was assumption necessarily you financing it those

from Bob Morgan coming now Huang We'll Stanley. move to

is regarding my lapse question So rate. first

lapse and And run Understanding lapse what year's -- continues So lapse if generally But of just rate look Income, are rate year-on-year. the from higher rate American talk rate you quarterly is fluctuations. expectation maybe same inch the XXXX, moving normalized further, you a for maybe quite lapse drivers at maybe right, higher just quarter? to the from about what basis, statutory rate the as has can since a are this American last Income? for we bit driving talk can there versus higher quarter about

were lapse similar. see higher past in Yes. first anything that point, other they than had -- don't rates fluctuations. lapse that year quarter. as this quarters AIL the uptick we At for been have the were the We've -- The had rates, in

in first mentioned, there than other tends rates, be to is seasonality of as kind addition, lapse quarter little you quarters. In a in the higher some

rates, lapse the that's of I of business. renewal the change a really function mix think a in On

for there's been As second, fourth the period as have generated those the over sales we'd have of a -- we a that which higher years, tend that recent to on long and for in than time. have business bit rates lapse third sales more durations, books more little in place

think at I are this impacting AIL that are things point. those rates So the lapse

Okay. Got it.

essentially lapse it's Got necessarily a like rate change, So something abnormal. normal not it.

question, So liberty it. that the compliance the But probe, organization relationship, the lot previously, not sales and terms to you negative asking third-party distributor about the of is of and of DOJ there the headlines revisit my how given current a from it's DOJ you're that know and the there management structure, your I to Is think people just so for a change, need speak? nature, a about to second procedures, given maybe most something going discuss forward? for of distributors been that at need things compliance risk have in

unethical said, have agent we As we take very conduct seriously.

actions. these deter and detect we that measures have We

update function continue processes evaluate and We that those necessary, as we're as intended. to controls our our and also continually comfortable

And place, now, and of evaluate that on in pleased as investigations that have field. in issues for the So with research we the we we're issues have mentioned, the as known. they and identification teams I've processes become dedicated conduct

We'll to now from Suneet move Kamath coming Jefferies.

a various comment if the of your I was agencies. to wondering on you could sales concentration bit your channels in

from how organization, Aria channel, You concentration, just AIL. as much how had on a distributors sense in comes some us Can mentioned data and as much Organization premium well of that top like the each that you couple that give of represents?

of Sure. for so maybe new first our about production. or X% it's Arias,

is come and with have the we And I that individual And of those contractors owners agents. in an things mind that's part agency One that basis contracted routine agents as several important are practices. us. keep organization our of hundred all to is a of on just of normal think go are business

might terminate us agency earlier, it's they you retire, owners for that I occasion, we other interests. have imagine, pursue As mentioned as on And necessary one. to

business So and transition we keep ability agents over long have for to with our those us producing contracted they're practices who business us.

in just organizations so overall larger our at look different larger agencies. agencies And we in our the sometimes,

agency they're really again, sometimes there's those XX-XX that owners of et cetera. partnerships, along Sometimes kind are multiple involved, falls -- But the rule.

great place to feel we've deal like transitions I so got with they're in And necessary. as processes

go -- And -- ahead. would is that sorry, that

of add Matt, at sales, Income to to say, is going overall. American part X% was I that, that Life to about X%

Yes. American Income Life's sales. new

you think guys. you of of big to kind organization there? when feels other a that like is I X%, get to And that like X% what that the distributors number to that in just have about overall the Or want -- is that a relative sense you

than of rule and kind have at gets when -- involved that the the said, I our owners, it around of larger partnerships ones. we and then looking to one that XXX individuals back of agency in Like start It's we XX-XX like. more over

XX% produce XX% probably our about or And new top sales. of our so simplistically, XX%

of track. I'll a those agency organization career individually us. are of And their work and charge their in with But contracted with individually that a way those to, own reminder, time agents through us just us are our go -- owners are period contracted agents an stay of over back as with those that

third in whole But Got then, And here it. I are guiding embedded there quarter sounds guiding gains. to like It you a still sounds assumption review like way that that's guess, that of remeasurement true, the you And in If kind you're it or sort if -- quarter. anything size little also positive. some I'm the that impact with on not? could there's don't yet wasn't guidance the I should confused that. of is any be your know

-- information gains with to guidance an assumption due reflects our have our -- and a remeasurement losses The guidance the range or that our Yes. we of and the of expectations regards to kind our change. now

trends. back if look quarter sizable. the quarter the were gains, remeasurement And you to fairly monitor third fourth those to and continue we think I

a first We to lead other had to little in first because the the flu of higher usually quarter. just mortality lower season expected and things be quarter bit and RSV that

we the some when of So to go about of into assumption changes we the third those inputs think are quarter. kind how

a from from JPMorgan. follow-up have calling now We question Jimmy Bhullar

related Just your buybacks wanted share you of couple things to as assuming follow price well? for up guidance. guidance in your on updated lower a Are to the

related driven The really and guidance, investment our Yes. to than the remainder by was increase about less half was price, think income, $X.XX changes. to if are. We the little price share I a share lower

as the are annual assumption actuarial assumptions in it gains, review, big remeasurement that's Any of the or clear your well of in assumptions, as that the not? well. then And those underlying part seems in they as sort are guidance your changes

They're reflected in our range, Jimmy.

emerge. making to make what today estimate the as guidance trends, where know upon again, best So as think we we're will trying we're and our based far we

up a possibilities. we're not, mean in Yes, remeasurement at know change not whether Jimmy, experience, course, whether up lead there not, of quarter. worse to all it's continue -- I or whether we some assumption that's having assumption So way, the early any we which or and other overall all if end We're to the or range. third of if that still could as an goes to looking range, that the or have gains embedded be change obviously, coming various too would right? in

abuse our do overall population if then things. other pre-COVID, deaths, look And CDC we still higher with that to and has data, They're of drug at and they're running than some your close improving, to but they in type book yet. book same is haven't recently long-term the Are gotten back noticing to been you well? your running as pre-COVID Or levels? pre-COVID

peak down deaths back for vehicles Even levels. are and the off bit disease, Yes. be homicides Where we I'd to improvements it's to we've pre-pandemic particularly -- heart come bit. to quite little still improvements seen say, some in causes seeing motor seem significant have but it's continue not running are a some some elevated. a for, still and drug-related higher, say

sort dollar But deal bigger. doing of could you're been a Because past? this I'm not like then lot lot larger in you're size, the but done of recently, is assuming -- type this And I'm were lines sure about, you the than talking comment. in business of don't deals past I lastly, a and what of you've if you've deal was done seems just was multibillion on terms this along this that along it able that But distribution. terms have mix to the in the remember in a

comment can't ] we've It a -- I you mean, of one that kind just obviously, specifics. -- say, them done any here Jimmy, bit was I some Yes, material would it about little of enough. really than bigger recently. was [

a while, And Direct an I'm further. see assuming postage for and continued I'll more. sales high been have part that, then probably higher or if do, one There incremental of up from of is talk just they that right? inflation costs costs. postage just you'll impact going ask and that, sales Response is Okay. weak weak

over as it And muted time are channel, come getting It's the sales an digital do but to more what watch have increases accordingly. and our of closely does through planned the impact. postage adjust we be Yes. more

probably channel. directly mind, growth is to the in also perspective. Consumer be activity the sales. for As from our sales I've support Direct would But in keep the guidance to to mentioned, attributed just agency all the not is important the down very That slightly our it's Consumer sales a year doing Direct to reflected of

from We of James. Wilma this Raymond time have Burdis another follow-up question,

a one. Just quick

about the could related EEOCs earlier I I that off or? kind of From to seems think am like claims. everything harassment Tom way the the -- it there Is it investigation DOJ I read, be mark investigation. asked sexual to

Yes.

is the remarks, documents practices to licensed by who contracted insurance in were subpoena we As our mentioned agents in Organization to sell American sought prepared sales certain the policies. related Income Arias

And percentage you. more then the for been that that figure you it policies any trends guys talked from Have been has over in-force Got you X Okay. premiums one, in other than about noticed a bit stable? or little pretty have the time of year.

the information financial I stable. Really data, on the did supplemental to mean been the at on your would you data website. put look attention and the that point we pretty I

those and and Life Income, breakdown renewal and And whole, got between as American first so then on both and XX for a well. we've year it's Globe data years' years worth of XX a there as premium -- out

nature just shows think the I our that of business. really stable

and think and X, periods. our each XX X% you business, you In-Force XX look through is and at it Life I has our our As years on -- I of this think X%. if years business. premium years, at growing a that those well. in X, if you continue I go over at about probably the bit And XX same look business, back look to go look grown And of And that are rate first the it's little versus at it's and and you And pretty if premium just schedule renewal our go consistent. premiums earned basically you year kind back under as at look

cash of premium on consistent stable, monthly really -- growth. stable, a very over consistent least in And a as bit which, Matt mentioned of Income, his growth of that, is collections, basis. little collected And it's turns at are American cash showing comments, just it a XX% it's those into that's we So talked year at the strong, our we've basis. many of less year in our But flow over than statutory on, Life generate about years Globe that years, again, and a operations over $X flow that on out. cash is support for billion operations and operating the total consistent where stable

So time. consistent the trends on those are pretty over

Thank you very ISI. Tom We'll much. Evercore of back now go to Gallagher

the new on on the how investment And to XX% said of to expecting some money expected you much side, looking invest clarify again? Just you a money you on those? what expand returns asset strategies. alternative-type are to Can something classes follow-up X% you types were just when you mentioned yield in into

whether -- a it's million commercial about other half debt in Yes. the year. really non-fixed have X-year is spending types or to during That's what $XXX mortgage that -- more And of million commercial are is within well commercial characteristics, in -- mortgage those strategies LP loans about some would as investments $XXX is, strategies, they of it commercial in that we there's are which infrastructure what then maturities transitional of anticipate loans. underlying other debt-like be in as have them. -- And

half those. quite, and So respect with half relatively not to close it's to probably

it. Got

So categories? transitional are infrastructure main estate real and X the

Yes.

isn't you're out if to [ ] be next obviously, this of drag, for and not I flow, cash curiosity, just capital And for looking CX to but free charges. a husband And free improve that there's of a going flow, year? higher year's presume cash somewhat

Yes.

mortgage the So loans, not on commercial the case. that's

-- are risk-adjusted into a that little end RBC. as about they taking talk in a we having if account returns. Obviously, do we're LP up you and higher with look capital-adjusted Now the lot we structure, a

if investments for you we're are that lift, and BA pay that on an So to we make make having getting little capital. appropriate charge, when additional -- look we that will, RBC getting as that these that sure and a schedule look at we at put

there's private strategies. just clarify, just MetLife. that. will Goldman, and of one looking also are credit them, we're JPMorgan, of there's And LPs, at we're Infrastructure is some managed in PIMCO, piece outside, I'd just by keep partnering these of I some Ares, straight credit all mind, -- with And

we're helping have several we are investing So -- through. had different these to that partners

Autonomous follow-up another time have Carmichael Research. of question, this We Wes from

one American Just on Income.

quarter. to the press I growth, said is is a low just midpoint negative what your actually of slowdown anticipating last curious, that count And you're that seeing guidance from agent And litigation? are I you guess think you're slowdown And that's I'm up expecting show digits. you on and mid-single sales think yet? or from I

Like I mentioned recruiting earlier, pipeline, it really our up first. in seeing I show not where is which think it'd we're

any tell, count So down to we're sales we revised single-digit concerns. on to too hearing growth of it's much slightly disruption early but just And related again, the mid-single-digit side. from the the just field and not really side on sort to low agent growth or

what's there just out days. of be cognizant early to it's trying So and

to turn Thank over will gentlemen, conclude today's Ladies Thank back for additional remarks. that closing session. and call any question-and-answer I you, or Stephen you. sir. the Mota

we these for to are talk this will again and you Thank right. you comments, joining quarter. our next All us morning,

today's your concludes that you for gentlemen, attendance. and Ladies call. thank We

and You may day, a good Have goodbye. now disconnect.