Midwest Holding (MDWT) 15 Mar 212020 Q4 Earnings call transcript

Good afternoon. Thank you for attending the Midwest Holding Inc. Q4 Full Year 2020 Results Call. [Operator Instructions] I would now like to pass the conference over to your host, Tom Bumbolow, Head of Business Development with Midwest Holdings. Thank you.

Mr. proceed, may You Bumbolow.

welcome XXXX Holding, Tom Earnings Development of and and Bumbolow, Fourth Full Business Midwest. at Year Presentation. here to afternoon, Inc.'s Midwest Quarter Head Good This is

results. Mike be for me and Salem announcing as Havranek. Earlier Officer, today's Letter Chief will this issued financial Minnich; Joining year our afternoon, XXXX well as Stakeholder Midwest presentation Founders, co-CEOs Michael Financial Debra our and our our fiscal

found on During we be of reference which our letter, of this copy Investor today's a the website call, will ir.midwestholding.com. page Relations can at

which document, this more performance, Securities the reflect While to on quarter will items Commission have call Exchange encourage and XXXX, for also information discussed read evening. financial been within our filed XX-K that annual report fourth Form for with about our this you comprehensive the we of

assumptions. Before discussed I management's related goals matters based which that these remind on as forward-looking you our and of call, reflect date statements obligation are today's the that and operating we occur. new forward-looking our this that as statements want include financial undertake of developments beliefs revise result and opinions this of performance, outlook, a no to to will begin, to business current information may we call note on Please

differ statements subject from expected materially to cause those risks, to actual uncertainties various our and described Forward-looking results are could other factors that and today.

of a that results. our to addition, significantly number and risks we subject are In financial business may impact

we under Relations mention will some measures this call, our discussing of on could would the to from once where will like the our these XX-K results in more non-GAAP For the you that that differ conference again, also risk of cause of discussion please a available be remind you to Midwest statements. A replay detailed a will review performance. Investor during actual section. I materially factors, description our company's call website see Form factors

the measures historic Michael? GAAP reconciliation Stakeholder Michael can XX-K. And in of our and You to over those Letter measures turn comparable Salem. the the find call I'll to nearest that, with

you key today's vision XXXX excited Thanks, begin, our of incredibly time an to pleased our share share was Midwest's be and On pandemic. year sharing Thank year extraordinary large results we're everyone. strong. Tom, and unique call, were our full and strategic good fourth our joining In part environment, drivers the is growth. To ourselves a quarter of afternoon, for will NASDAQ-listed Despite Mike for as to found company. first I results just reviewing that performance us. well platform. overview our we and year as public This for of an challenging Midwest. a I'm confronting global third in operations, our this because in as

technology-enabled, platform. what approach done is investors institutional the managers management do unique existing and to complexity built: fund getting connect We to of begin the up, who to are just that of remove company goal asset made you returns. by of inefficiencies those to seeking to proud life other us, have model the uncorrelated with I'd and we mission built insurance asset and For retirement services-oriented their we cost from are. annuity has no we from discussing This something our who of with liability directly truly seeking quickly to ground like and and individuals know correcting reimagining Midwest end-to-end innovative. Today, value are it today's chain. a before: the is was

a taken narrowly invested and to we innovation not designed improved to missing an the technology, and being are model Notably, is our institutions. supply now. Midwest, focused, technology, or protect customer that instead for legacy and of on Midwest innovate is the time why other opportunity global the existing the through bureaucracy creating benefit transformation, the life and serve end-to-end one chain one while our experience recognize mutual the We value. insurance the digital customers new built of why stagnant, critical prioritize is interest industry approach. has does interests. At simply In industry So have an but customers by of the strives a annuity hindered value now? and capital seeking for the Incumbents different interest of group midst both to opportunities by remained in

dictates. and partners; low-cost provides reinsurance allows alternative XXXX and reinsurance our Capital, able and quickly comprised the Re, value improvements customers infrastructure. By for us our tightly value Our m.pas, solution, as integrated market carrier, markets-based our chain, businesses: costs, policy the asset our operating is and products and we're provides company, reduce both controlling administration to products; Life, of best-in-class highly insurance management capital X solutions source integrated manager, new annuity and and our annuity scalable American continually our platform efficiencies us Seneca to and identify develop capacity. life reinsurance a drives

reinsurance, a asset Our to accounting platform business, is operations, experts: better of team powered by professionals, want a stakeholders. our serve needs long-term the all for and and management, our tax collaborating interdisciplinary customers value of unique technology, generate to build

is results a we people. our today. And are And discuss Minnich We business. call like we wouldn't to team, evolving an We've to ahead, to to platform risk. and that, I'd to years landscape this our different. architecture open XXXX. people the turn to approach sheet supported and developed talented Our market business for is over extremely the on balance without with the for say our strategy We've capital-light group always and avoid where built Mike it be it's adapt to deliberate of be by

XXXX year Midwest. an for incredible was Michael. Thanks,

our otherwise allowed and challenging architecture to perform open industry. technology Our year was what advantage very in for the us a

the to strong deliver takes the positioned and well as growth exit are recovery hold. We we pandemic

at for Let's numbers our look XXXX.

last that expect to significant is fixed to year. million recovers. growth market to XXXX. annuity strongly premiums Our the XX% grew in we growing $XXX contrast XXX% annuity the in $XXX market And over down continue million strong from as This was

budgeting million of XXXX. $XXX are premiums We in annuity

our we importantly, business the continue flexibility, was and forward-thinking to of our profitable, operational revenue, made Founded allowed safely with Regarding years margins mind. Three principles innovation, on first built platform. million. ago, and expand. revenue $XX.X in significant environment adjusted disruption. we approach and expect to we our investments leverage grew fully to transition our scalability And to and platform work-from-home in XXX% us technology-first the employees minimal with cloud-based quickly annuity into a This our

in was working Our rapid a growth virtual uninterrupted while environment.

Our business designed model to sustainable. be was

any remain model, paid insurance sources infrastructure multiple add. insurance We're capped the architecture capital, product relevant assets providing the for environment. to simply happen for fees open in an and of and business required we we distribution As to value being

is specifically recognize this the opportunity. industry else but our legacy capitalize beginning was As incredible recent would events any nobody value built from the on model, without indicate, to to of ground the the a in implemented continued our future, mind, Having our to speaking minute initiatives of I squarely is want designed and for model on and disruption. With spend focus XXXX. insurance the about that growth, innovation up

and take in accelerating. a foremost, as Interest and flows First from and develop Midwest are asset investors advantage we in execute partner. value-added our positioned is activity reinsurance is on annuities to managers fixed uniquely these other pipeline. of continuing capital to

Additionally, products continue launch to new we and solutions. will

X-year to product. MYGA We are pleased our that launched announce new today, we

expediently, and team prior our leveraging As product do to launches, assess to and the industry able were with this analytics platform's talented meet we needs.

core are our Finally, capital. seeking expand investments distribution our upon invest insurance competencies. long-term build our strategically to access to in reinsurance also products initiatives, we continuing These both new and of to

in We the are into have differentiation over leaning momentum, more focus which questions. into our plan lowering our carry will We platform with and process. this conclusion, believe incredible we while partners the to run. In a serve point as costs for up to deliver open complexity that, long it key we'll forward XXXX. And for industry we of

Carletti Matt first Instructions] question [Operator The with JMP. is from

the block on I how you recent kind from does had the hoping of for target comments the direct of additional Mike, partnership And gone, of current some reinsurance then more the in those kind help mentioned that's following terms side, both of you kind then you your expected question, a expand increasing kind to $XXX us And understand for second of on there million about space? of be to on of What transactions IPO in with partner could reinsurance what you premiums needs partners? Kind support demand. of encompass that kind or can of as was part insurance that and the 'XX. partners side of a done the numbers?

our model transactions kind as to bring more partner I'd problem. pipeline, ever really the it's the No to that get with seen value bringing partners we're bringing with And achieve in been the partners about a strong fairly and good that for them as attention the per years. business in We're quickly. feel marketplace, to reinsurance say online, that and new reinsurance more our quite you're multiple our to seeing X X the to annuity deliberate of to Sure. being really to it. respect With we've looking block year, we it's and like long-term pipeline, through support business terms partners targeting we're respect that. or being we quite able in of potential

back in -- just the The question, Okay. model MYGA or the be the would quarter, one and can other split year, you it. my Very then can of question, into greater one. helpful. written a provide premiums Great. And I if just FIA either quarter

roughly competitively XX% the or I production been quarter-to-quarter FIA the and exact more don't XX% which will in depending number But marketplace. off-hand, vary MYGA on we have are running pricing products a have we that but at production.

back just And so to reopen mobility as just kind and just of a in just do activity Okay. I question, XXXX, economy front on you expect COVID give on of guess, look reversion at had perspective And just should end. if a forth then bit in mean the from think the we little environment just, us in that? XXXX? people's as impact we I last the could, what buying the 'XX, one you Can your

our numbers interesting, itself up. were suffering industry as that our that our of that and the market aware would dramatically. were think in will the I perspective, when you volumes was from depths whole expect we COVID because a we really increasing the in experience, not our that were see we pick can as It's

a back QX, which be to recognizing had picking rates that back from bit into experiencing. were the to was pace and we going of terms our going the industry volumes, In up been similar maintain able at we

Piper The question with Barnidge from is next John Sandler.

were nature? onetime on about planning of nature was talk that other 'XX Congrats operating the first related or Can in XQ in offering onetime in to your the call. expenses you how much

Sure.

certainly, come expenses had we well related think, company, we NASDAQ-listed public the expenses I a to as some be as as offering. So to ramped up on

expect our expand. for And based to add would on we I of expenses but opportunity think forward, margins continue is as expect to strong future. we a go what really we investing would to very very, the kind

further can expansion talk your And state a about pathway Okay. then ratings outlook upgrade? you to for a and

Sure.

the were to X- your a generally So we watch question, X-year review A.M. put positive offering. second That is by Best on following cycle.

-- we are at expecting on effort. So be the to very which on Michigan, that that would well We be momentum our just that business state we what this worth pace as and the would be expect of us. supportive to working as and continue our to in And as execute about is current the think we of expansion, that front. And company the year the offering strategically plan, we XX% continue have. capital added that timing we'll growth the additional will all state expansion

are to it remarks. back management now time. [Operator will team the closing additional questions I this at There no Instructions] pass waiting for

stakeholders, we advantage we all and you listeners thank the Midwest, about that. opportunity are to committed determined and very of at to you, and and Thank and our excited we're have take

coming of the many forward you. care. Thank And take weeks. look to speaking So to you in

Thank you.

concludes That day. Full of QX Holding Results rest Midwest Enjoy Year Call. the your Inc. the XXXX