Aflac (AFL) 2 Aug 232023 Q2 Earnings call transcript

Good morning, and welcome to the Aflac Incorporated Second Quarter 2023 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note that this event is being recorded.

I would now like to turn the conference over to David Young, Vice President of Investor Relations. Please go ahead.

Jeff. you, Thank welcome. and Good morning Incorporated; This morning, related United about quarter Incorporated of on conditions will of on hearing will from and will our an Aflac operations discuss Global quarter in Chief Global the briefly be Aflac CEO Brad update to and Investments, and the Amos, remarks initiatives; Crawford, in Dyslin, President touch Dan COO investments. Investment the Aflac Chairman we the Fred Japan States and of key Officer, President provide and

Yesterday, release after investors.aflac.com. our the close, we and posted earnings to financial supplement

We on our slides commercial posted loans. same to of and estate site, middle market also updated under Financials real related investment details the

his current the In financial of Q&A addressing Broden, management addition, President for and joining call capital and along Max with following Vice video provided results quarterly our Executive and Incorporated, Max of this the CFO in us members will liquidity. segment the be US: executive update Aflac our of

Virgil Steve Miller, June Officer; Aflac Accounting Chief Global Aflac Chief Howard, Chief Roziere, and Officer Al and CFO Risk Actuary; of US. President Beaver, U.S.; of

President Charles We Chairman team from of and and CFO; Japan: joined Vice and executive and Executive our President management and Strategy. are Life Marketing Masatoshi Director Insurance Sales Representative Todd by also Aflac Koide, International; Daniels, Director members of of and Director, President Director; Aflac Lake, Representative Koichiro Alliance Yoshizumi,

within teleconference this forward-looking in the laws. of statements some are begin, we federal meaning Before securities

encourage XX-K materially annual Actual to we because differ of our our from materially factors report are they prove accurate that will various are risk could some Although they today. could we at impact on we discuss look that believe nature. in to these can Form the We those results. give assurance for reasonable, you no statements prospective be results

includes investors.aflac.com certain As release measures. available reconciliations earlier, and I the earnings on is GAAP of mentioned non-US

Dan. the I'll to now call over Dan? hand

on dedicated we tirelessly morning. allowed be employees they the as us. good most, business. distribution work our has our Glad there second quarter of you sales And XXXX, Reflecting the as management team, stewards joined us just to of need for to promised. policyholders when and David. you, us This Thank continued have

delivered We for first distribution the strategies actively numerous the initiatives focused very quarter products, the set Aflac growth. and new both the strong for six Incorporated Japan earnings stage remain and in future United States months. around to on

Looking our refreshed at Japan Endowment WAYS rollout the and from distribution in WINGS pandemic. positioned strides refreshed of Child operation cancer in products, for our and we channels success, continued the new recovering introducing By we insurance, Japan, great as have our policies. makes

Post and in and April. am which Company also our XXXX sales XX% Daido alliances, very a improvements increase Japan and Life I'm of with increase strategic versus Post through increase and in began our of the contributor a early pleased Insurance, This selling new in other agencies Dai-ichi cancer see sales our Life. product from to Japan sales second pleased significant premium new quarter Japan. in our reflects insurance XX.X% cancer a I

while moment. opportunities to through customers increasing out address We Endowment, Fred to also continue and in gain products, Child sector new WAYS a third sell will which also

as new medical strategy And encouraged our of us has anticipated product I'm by for progress our far, served the Thus launch well. our prepare mid-September product. we

where insurance. how buy want know it important the to to for to addition In our be customers is us products, we

Japanese financial protection alliance extensive to to help channels, Our consumers, agencies, more to network banks, are including distribution and working us hard we as channel. provide allow support of opportunities each partners,

from agents growth continued the improvements contribution productivity Turning and our to US, encouraged remain the I the initiatives. by of

through see success in growth brokers. time, veteran we're associates. our reengage At We the seeing same strong our continue to to efforts

provides policyholders no our enhanced lowers which benefits I'm value our additional that insurance which it people We products, very know cost. of persistency excited at benefits and when the increases our expenses. at our policy, protection experience cancer

it's I strong believe before that than is and been United both in the need Japan the for the ever solutions States. we products stronger and or offer

leveraging We and to opportunity with message this consumers. every are avenue share

always, prudent and As capital management. to we are committed liquidity

We investment in generate conditions. strong to remaining defensive results, position we economic monitor continue while as a evolving

years annual supported remain capital steps have and the In addition, flow cash committed taken strength by track yen. of We a to we of deployable and cash extending proactive weakening dividend recent in increases, to against capital our our flows. defend record

on we shares focused improve the At leadership with made repurchasing strength integrating investments same our our the market tactical growth in and to in position. the have time, approach, the remain we platform

as strong Overall, product and distribution sales that it strategy. very quarter, of with it's we favor. that especially Aflac say had I quarter as can a are number level. vast think of pre-pandemic its U.S. strong executed on momentum in a the to Japan nears our sales build been continued factors we Aflac

repurchase very the Japan strong company's XX.X% remain US and the quarter, margins and share very profit at ratios in last like our history. of in one capital in our was, biggest Plus, quarterly XX.X%. Pre-tax strong at remain the

So program turn the I'll over that, to with Fred? Fred.

Thank you, Dan.

on begin in me Let briefly Japan. by commenting conditions

in we Post, introduced As in well, rolled Having doing cancer WINGS, Japan to at our now with Japan refreshed all full group. Dan as now refer commented which are on the channels. product revised in strength WINGS Post this we out product, is

policyholders, is Consultation entire Yorisou care conscientious by cancer supported connecting provides services. Cancer cancer policyholders them in-force now with non-insurance services. our to including platform, platform This Our

a this perspective, to scores. has shown From market a receive research key our to dialogue promoter data net that platform we a meaningful marketplace. impact with positive and In alliances our partners, and the distribution is differentiator in continued feedback

of buyers attracting a age XX. the the sales WAYS of are product, third with driven rate customers sales our performance. refreshed and sales of of on of The cohort our concurrent deliver sector approximately to Child This Endowment WAYS younger approximately cross and XX% policyholders, younger XX%. new sell along Since continues launch strategy younger to of below of has

Looking forward, our launching product we mid-September. new medical anticipate

or last basic with needs, mentioned to quarter, and design younger who has both policyholders been upgrading to older existing As desire this policyholders coverage. product simplified appeal

product As through policyholders, sales the key and we natural our we and products renewal operating our is cycles, attracting lowering productivity, costs. younger driving to believe move simplifying new

to the we operations, of are revenue pleased Turning half pressure. the with ratio of expense XX% our in in below continued year first and traveling the face

and digital focused working actively new business customer claims. are increase applications, self-service We adoption to on

levels forward, drive per a adoption, we we look operating term anticipate of lowering long basis. the As on our goal investment digital of by with remaining expenses competitive to increased policy

first a vision, and as disability contributing quarter individual, the markets, second life dental similar all pattern to quarter followed with our US, the to Turning group and growth. consumer results sales and

a strong sales has voluntary modestly been Group from XXXX. down

encouraged by year. of remain we us quoting the that second believe activity positions we for a However, level of the half stronger

are of vision, XX%, a performance. consumer disability, are and building by up these smaller to sales markets beginning dental and material Our life more albeit base. impact off on a over platforms and and group platforms growth have In aggregate. produced

we With bundle the larger our focused are ability on build new and products largely behind voluntary stabilizing us, to scale, groups. with as brokers work platforms on core we leveraging driving

platforms particularly is more growth business, naturally development. absorbing investment life precedes are case intensive. in is expense and in We capital revenue the pace which pressures group ratio, that This of a our our but disability

efficiencies a some also we're term profitability, to making to into these As refining and platforms, exit drive operating business approach our settle long to decisions aggressively path we cases and opportunities we around we choose expense in pursue.

US. focus commented our on in Last product renewed quarter, the development on we

illnesses, up XX% is security, this and product the frequent critical the roughly cancer rollout. and refreshed Our of still most expectations product. and early we high families devastating their remains to cancer the stages Of have and all in for financial

new an we which important life life term is to voluntary group announced effort our of a overall product, sales. worksite week, Last increase and part

this sales product market in we is terms area cancer as a persistency. should opportunity. have improved that line where life contribute share We have to of this an lagged insurance, see Like product and

to and recovery in pleased to return the persistency. see growth premium a are earn US modest in We

in-force with utilization and objective core growth. We continue improved campaigns endorsements driving persistency the of sales, to revenue policies, wellness drive and to benefit through

Now, health current Dyslin bring the focus Brad? let portfolio a book. with going and to call over me the loan investment you turn our I'm to the pause on of on to Brad

Thank you, Fred.

we market direct we an middle the on update quarter's that estate lending quarter. our both continue provided last shared line on call, the During loan special expectations holdings. and with our focus last I of portfolios real to mortgage to portfolios in a report with perform these pleased am

Let me estate. with start commercial real

properties, As in exposure loans the our assets a is where facilitate local market. we short-term most reminder, to repositioning the rate of floating to transitional make

traditional more billion $X.X portfolio, about loans. held of loan comprises TRE longer rate in balance total billion, or with three-fourths term $X.X commercial the mortgage fixed our

million Our and at loan has of office remained watchlist constant $XXX consists entirely almost commercial TRE estate real approximately properties.

is property's negotiations to be follow closely. and workout very very dynamic The we a with these loans process complex, the owner for fluid, tend

a foreclosure watchlist the As and frequently negotiations as owner relatively updated gets flow. property our with ebb result,

of modest remained loans first also with total these value increase has from stable, However, the a relatively only quarter.

amount the of recognized quarter. value of crisis. portfolio, last occur, the our declines a to billion with quarter, this that of of mentioned additional half fair in foreclosure $X.X property reserves to the With $XX resulted brings XX the when million market the which value our million, those XX% of we our mark This property loan-to-value small assets. process to in commercial the loan points in XX%, average the reserves first must value total real to the and total XX%, range underlying is As of in price of about year $XX the the a drops accounting of result we financial carrying of of loan likely are in basis line is generally represents estate additional

we you our watchlist, million. decline expect million $XX XX% If very apply additional a of entire would reserves simply price $XXX across manageable

instead foreclosure the interest no on we from loan, accrue longer goes but proceedings, Once realize the into property net the property. operating income the

will investment impact of When this investment to to Given from this expect see income enterprise these NII. performance, do overall we change. in a we transitional nature the not decline net material a have properties, considering

we confident supporting of real the pressure While our in immune estate, industry from are commercial loans. property remain the the in not we quality

economics. liquidity maximize position ample be strong overall us manage downturn allow we the through as to our patient and to investor Our capital a

middle our am of to point for expectations a report for losses periods perform this difficult below pleased is loans this with quality for to exceeding and is to well our perform grade during purposely Recall the companies continues well exposure in outlet and built cycle. to was at I bias credit. primary our credit market portfolio investment

companies allowing risk growing leverage supportive non-cyclical of only delivering industries, is adjusted on modest in strong owned strategy returns. Our first by levels lien of sponsors,

Varagon that manager. Man is month Finally, last leading UK being acquired a Capital alternative by seen you asset may have the announcement Group,

part this client. as of a are position was we will in As transaction, equity major Varagon, announced, but remain our exiting

strategic capital, as three plus Varagon generated realizing part of great for be We times investment, X last middle are proven investor to us excited addition this of had billion in solid the Man over our partner Varagon on the $X and we invested performance strong loans to and on about a future managed Group. market years. the has returns terrific their

Varagon relationship Our in is classes current certain asset portfolio. strategic our a partners valuable our of strategic with accessing part role a other that specialized strategy have our and private for equity

additional on We the private these asset credit. look forward these of forms through strategy classes. in continue amounts significant presence creating execute continuing high to invest We an and ownership in important value-add to value to

it turn to Fred. me back Let

Brad. Thank you,

These As external approach produced taking a into strong upon began that that noted, to strategy opportunities as returns manager program we in have with minority our managers. out investments intend the interest select present matured themselves. disciplined we Brad expand this follow and building

week down remain loose of both economic Market ultra BOJ. policy Fed through and high. its as the recession, both while is maintain as to looking Japan go remain calm continues US The period Last Japan inflationary featured to inflation moves a and conditions and US economies and uncertainty by the monetary volatile the transition. avoid

and comments, to exposure in economic recorded have his our capital enterprise strategy, in through noted greatly reduced investment Max yen. As engineering, hedging, we the movements

economic leverage In strong conditions capital volatile addition, deployment plans. or a our in absorb places low and position us asset maintain naturally to weak

David? now back I'll it Q&A. take David turn to us to to

Thank you, Fred.

an ask a please allow getting questions, opportunity and question I queue want limit participants to that we question. now question. Before to Joe, one back yourself ask you the will a initial follow-up And, in to before we take first that to other take

Our first ISI. from Tom with question will Gallagher Evercore come

is gradual any two the Japan the of guess the have continued contribution building sales. Is you are to that related I out? It is, One see was growth do there? parts. encouraging slow ramp seeing in acceleration stronger to you question Japanese Post see or from it I signs how

sales, of line guess I soft. follow-up good bit were earned is, overall top was the premium while the there a in terms

you So, earned sales the premium what's allowing about not talk necessarily your can for translate? and and weighing expectations improvement that on to

let of Tom, me start a hand the to folks table making this And is then the to some Fred. off of me Let contribute. comments. just couple by I'll around

and First in we majority on results results. Japan don't the the as to in say the may the launch But can contributor sales quarter of you may specific our cancer based cancer saw that on our sales channels. some coming what results in of we in those of is was certainly increase product know quarter, the out the that Post the or comment alliance, you on remember,

the were up in from mentioned our in were that Japan cancer XX% Post. quarter, Japan the quarter the as can safely For second And was so. example, launched being sales around around assume And in majority Post, XX%. you of his without contributor we in or first in Dan comments, up

long Your begin view more efficiency the much still And take producing. the their continuation. more is question is there and term, channel agents then more Japan distribution Post cancer runway build that what and and they about product in in predominantly our on as is over

do think Post. upside a So, in there's we Japan of continuation that

in the the when is by an product, months it the early jump calming a sales commonly, case down. immediate followed However, in also launch have right you'll that, you

they'd just any color let and/or me to said. comment just like beyond turn But if to or Koide-san Yoshizumi-san add I what

[Foreign Language] This is Yoshizumi-san.

your regarding answer me question Let JP.

April Japan the Japan new [Foreign the products Post to that channel post The Language] into their Japan this Post we Well, nationwide Post launched Insurance company let was January company, since timing, And in towards April. offices. the Post cancer conducting entire me in as been as have about launched product the channel. mention throughout postal Japan well trainings

Post product. [Foreign support of Japan Language] We launch directly of trainings believe after steady has increase as that kinds offering as of a the well these our conducting result to the the do by them of sales us

Post each And managing at and Language] have sales [Foreign the second since level management we'll confirming be Japan these we quarter processes process and Aflac, each layer, the between at level. each been level

will solving issues offering what each is Language] to And are to at issues And a items checking those means on we try basis. we the [Foreign management that solutions we that identify on are a monthly and And where them basis. level. monthly also are these

Language] result well. will cancer believe [Foreign increase these, gradually a do forward As sales of as that of we going all

paid our to it. in so about Tom, and your revenue related into to and question agreement reinsurance obviously, was Japan to having that. second to think account both how Todd ask up take I'll policy, address

line from that as we when to We noise, to the deferred I bit that's one going liability to our benefits it's profit premium line. accounting. a little And as thing going think of move create to the was to in to not remember before. stable be had it that went LDTI earned

considering and still the the guidance of the Fred reinsurance And we for as up billion. we at When minus entered quarter. two into in caused that the premium in billion there. said, in earned the the right middle that for still X.X%. you at premium ¥X also the beginning But DPL, ¥X normalize those paid earned that year of in reduction is approximately impact factors about The was, about gave for again, the we're transaction range

a terms zero, for of at also growth a premium Post get to level channels to channel I is in earned of Japan pre-pandemic for we back replacing that it term, sort of business long get we you where an i.e. the back production distribution to all production restored need essentially have level. as to are if and get the look falling just levels us, to get add Tom, would off, to well,

next Alex will from come Scott Goldman And question with our Sachs.

ratios. that with of post. made run versus in levels, all the I on I and something benefit view the you're long interested that you whether seeing temporary, temporarily was potentially was just term for what maybe seen remarks continuing assumptions? that that's were is associated what you adjust in [indiscernible] are updated need being have you activity mentioned the video favorable had just and It on one depressed the utilization First the in that term the to is guys some your you potentially longer in claims comments that to

continued reason you're well, the we seeing adapt something that one, a policies – whoever. policies. on but after of has that we more to of that's at from things some This after run continue that nature tried year. place accordingly. it changes came to that anticipated mentioned where And and to policyholders is we things treatments to we when do have have one different kind Dan. year But trends over lower and than take [indiscernible] we're we more out, increased certain to seeing new and know year counter do. change monitor a with Todd as I benefits of outpatient And people But or rate encourage don't have to for some

hadn't talk been a US, If used you example. wellness great want to specifically about as that's The benefit much.

will improvement. a we really in have encouraged We're positive reflected like feel And manner. So that we that. seeing be that

he's something. I to around think Virgil? say Virgil if might touch on that,

focus Yes, in US. utilization be the our to continues

leverage policyholders coverage. of wellness We campaigns have a launched series our driving the really to

quarter going of to that continue we've about XX% that. during Fred the think which a over increase year. mentioned do utilization first in time that to wellness we're Dan And or seen the I started period,

less in and that savings to than has drive $X,XXX We out main average the demonstrate value. is there. Our American know thing

them benefit for event. And It them, help medical make a gets will helps getting of with regular catastrophic anyone save like some disease also, they're sure lives. to able there's get their to So and right any cancer. prepared treatment that checkups the be that unexpected diagnosed course,

see us going on So to And expect to forward. to continued push continue I we're going that. improvement

sort of normal the out expect of it, as of if utilization get about the pandemic. sort Alex, back to absolutely just you And utilization, US you of terms the point. to this of sort should at add in to level is think

utilization. we should on point. more expect off benefits still we're at we at of should run offer But, a that normal where think levels I the rebound majority vast little definitely, some the bit this

And so, what to, pre-pandemic alluded we products because as Virgil doing, for that we're have not enhancing utilization and levels. Dan are bounce back we our seen to

are And during fundamental local There's emergency happened definitely we services. is greater data, in-hospital rooms so greater of why some the in use of services differences facilities, Well, usage of that the than that use there that? have pandemic. less see rather outpatient

overall utilization us. All this for to claims leads of lower

you cancer. to stays, see hospitalization we the If it shorter relates Japan, especially go to of trends long as continue term to

We that's i.e. And But first increase. Japan we are the hospitalization more cancer, believe surgeries more we outpatient of as to services have seen well that because back normal as muted. in pretty driven levels. that diagnosis see diagnosis, greater bounce and still trends well use of by

lower is to these us benefit that mathematic the trends it of overall effect to in a ratio place. for if stay Overall, continue this leads

USD affects products different strategy as interested choices of on – side, in you making well in investment just rate I investing the if thinking follow-up it interest that environment, through investing? is emphasize yen rates. you're how on terms more may in A are you your was I between and Japanese all had as higher just

asset comment on allocation I'll let question. Brad the

the surrounding around of emphasis development product course, selling. refinement product, with and refreshment that comments, formation as cross call may we WAYS of to notably That's of some work relative continue on product the strategy and think on our working internally, I you and previous most know to asset we product Japan. WAYS from then, and and our business in training customers an what model, the

our only those in there's a – What is a long of helped types going as we've maintaining of in value past of also recovery recovery those Japan put products. types strategy products building because the recovery play and rates that course importantly, question mentioned, in – but reinsurance I'd Alex, economic not in Also, the into recent viability reinsurance as supporting with quotes, to is out no term of company. is

of supportive products. long some But those you formation that. asset rates attention before yes, strong way characterized as to there's of in products. pay So, profitability rise we a And can in rate the is see, as we to supportive go environment

You younger are can the you still engineering. cross and the experience business the cross that into fold policyholders we absolutely for into sell heavy need in some bringing And that sell future.

comments Brad, on…?

But rates Japan a of we activity, investment the is products. these biggest It's one face been since news. challenge. spread remains in rise of the certainly of yen we've And in terms attractive finding time welcome In had is that long kinds biggest issues levels. our

to We advantage find of take continue those we opportunities them. can when

is an We have we JGB of race to level been over And get the dollar risk. where it can the to get welcome, rising in pales we're in level of in relatively what still credit we finding think acceptable yields of some pretty what for yen definitely comparison able is assets. successful acceptable although a pickup

a strategy, always at but least to to not continue be in you big see there, shouldn't expect change we'll wholesale So active yet.

Suneet Our will Jefferies. from Kamath with next question come

reflected your under a your in in much these this thought to LDTI? My the in faster? while this you're how I But question benefits on making of some utilization, Japan under financial financials LDTI, in. if go reflected are feather comments take of these kind does like want I'm US. remeasurement and is My the concept seems statements to It right wondering, would in the quickly kind to direction. impacts that did get moving in was both back historically of get things

for each they've our come definitely run these And into our net historically. and reset because premium it's we they ratio remeasurements financials forward than done faster Suneet, quarter the reserves.

much quicker. you get it results into therefore, So, the

we that you you've to I that forward, going of – XQ is going forward? it saw benefits to benefits? expect more guess here them lower are so, now? baked more Should these these see decline some even trends with Or need get utilization to incremental in persist in and where we we

true-up And need forward, means reserves lower estimate. recent the and experience you is at utilization our for what the level, then in have We our reserves best you to an improved are to get future, that trend. for going adequate. that reserves our this to If stays

If you were the to then trends, worsening would opposite have occur.

is just persistency follow-up My that it fell in noticed on seen Japan. XX%, haven't in below I a just which is we something while.

Just new wondering is this product? the a if going Is that little unpack you related bit. lapse/reissue there can Or else cancer on? to something

I'll to But ask lot with Todd? your has introduction of much natural cancer question. Todd you own to comment It and a the answered replacement on pretty do it. activity.

we lower the first we and did reissue quarter. lapse quarter rate that that's saw And during a think typical. I than

launch we product, we a to new As expect wane that over time.

still somewhere reissue product the the lapse some and within did XX%. activity and in we running it's But being our Japan the during launched quarter. around it's have channel, Post With expectation,

When you an naturally and as definition, mature going have block lapses to And of sales get the have you running higher well. older more from lower it when lapses, increases. age block, by you're the than

economically cross it and for customer. because face to members, to activity customer them interaction engage. that cancer and the it's the like with of perspective. individual, we also team their add And that and brings the existing their our sell do policy their when it's time activity this thing in good is, cross we we overall we for if serves policyholder leads also of and replacing distribution have with a an family to face their with benefit it to And with do from between often policy agents promote that coverage proactively and our if it sell into that spending One But chance a best but allows the have partners because quality an – the clients. conversation, some cross really sell I'd older particularly notion Japan shops as in interest,

the side, that And can the lapse so, on to look as avoid it's you please or part realize important actually activity. strategy. actually we don't cancer particularly and It's of reissue And imagine. curtail

Because a of couple being Japan, we to a we President I things. and because think stellar such Aflac words it's important of for from performance Koide say Japan, here with him sales had have just

So, tell I'll you question, things us Japan. going how just Koide, would – in are the ask

results show, going newly the sales we extremely our As it's cancer called product that August WINGS, insurance in launched year last Language] well. [Foreign

Language] and We all year, [Foreign our Dai-ichi we has did it, a has somewhat sell in of its this of now then channels this April with then August through launch cancer, the progressive associates starting year January Post in year WINGS, product launched and had this [indiscernible] last introduced because and product. in Life Japan

will it become channel the recovered have activities society's distribution at during the Well, But active. active time. all things has the this Language] that Because [Foreign same Japanese sales surrounding been same new economic case launch, very product is product. time, obviously of new cancer the of the

well. these So been factors, think with product has extremely two the I

as our cancer new Language] And increased [Foreign well. has product competitiveness

this of is service, have our As is also by concierge support cancer somewhat for Fred mentioned earlier, Cancer sales the a as with it Yorisou well. having product, And service service called customers. integrated Consultation this which we pushing now our

[Foreign Language] medical in to And a product we're also competitiveness good preparing launch very with new September.

to all going as our well, more as channel, a sales. all these employees result are extremely So distribution do Aflac are people motivated in as our in things Language] well sales of channels that our all Japan [Foreign

Carmichael come Wells will with from next Fargo. question Our Wes

could trend maybe with your looks how any a expectation improving impact but in bit us on just like hoping a I'm and about little here for bit, maybe it's from lapse expense ratios. persistency you you the U.S. can It talk trends Aflac the in that help should

a bit think lapses. by I been that's elevated little

Virgil. is This

occurring see that Let you I'm me persistency rate. that's pleased stabilization the with first say with our that

in than conservative came go I It's a done this. at efforts XX.X%. points have last to mentioned few higher we after quarter, we about quite this QX, XX basis So year. in

data of of that's which what We hours we I scientists call, that really efforts XX have office at stood can a is the looking day do. team persistency, a up, really different been

come going I So see to that even you're to think more from that.

Today, more go event a doing find really surgical wellness. we a pushing what out within me say more about campaigns What us is mainly everyone which strategic would driving out I for going and wellness driven is that – did shotgun more policies around utilization. or claims. those a has reminding forward attack, notifications. see benefits call heard what you of is approach, QX earlier and We're those you'll What QX to those now was of in

if For have someone that to reaching benefits birthday, recently them got or utilize those to going we're they example, have. to remind married there out we be a

Overall, our to sales saw that happening US quarter really investments, growth to premium what's those persistency up the earned rate our what's We happened the toward is expenses increase growth about in with that's in plus initiatives. we now higher revenue. The XX% us. And That X.X%. earned growth our X.X% ratios. about second expense contribute was see drove still our premiums you balance right for right had higher the initiatives now. But did growth

in the in to wants to Let Steve any our US CFO me see come just ask he if Beaver, further.

that and metric. said it the around activity forward. in going add rolling will takes Max us a remember, his bend emerge expect, I'll expense persistency XX-month we the curve help lower do video, driving to time like ratio that, just But in

the basis was points. back on from quarter impact amortization ratio second expense XX Wes, about the higher-than-normal

basis earned a to the to premium you just I just XXXX, growth some to reinsurance that think of moves and think of was it and that. the points but question, is by net want roughly lapses. kind rest follow-up decline Just Tom's maybe impacted wanted clarify, of back X.X% wondering I it in into the reasonable Japan, kind X.X% transaction I XXX X-ish-percent then for for do related clarify, on full decline year in to your that XXXX? thoughts to on

was it just expect But overall. The will it to quite – be was the it level. up this in quite that from continue quarter. reinsurance going high will to this it I that impact The rather It's and deem year, quarter. we be impact, high impact volatile be to DPL a and the throughout at a paid I number would from running note

Bhullar next Jimmy Morgan. will from come Our question J.P. with

depressed a product upcoming that sort of product numbers in medical Should mid-September. that will for rolled we into be First, the that already out? is launch your on medical agents policies as well? question as waiting of in the sales Or of the be in new are going XQ just assume to

here don't Japan that. we in team have Why on comment our

the natural when question a So, a anticipation of new in later to in is Yoshizumi-san, come medical is, the product there year? there's pullback medical

I'll the [Foreign answer question. Language]

need we So the with cancer associates is soon, have gone year, will selling Language] what the product in cycle out we launched I since our that associates sales that me about [Foreign as are products let will multi-channel, product channel. launch our product to August medical cancer since around start we channel, And a year. talk In in go last a down. of the

product channel, cancer there cancer year insurance. sell channels Dai-ichi should at and look other on [Foreign only not impact Life Daido then be when will Language] that Post WINGS. been the it new And such Japan not launched medical they since as a have Life, But we any

Sorry, the there should launch. any impact medical on sales for cancer not be

we come time impact. any it with product, that Difficulty] always a new some out has [Technical

cancer, So medical. it's thing what. it's we're new affects If everyone as that the no to sell. standard, cancer. medical, a it's being it goes to taking easiest Because matter If a a new

new something And and always looks so, better. sparkly

all, But, be show going happen. that's constantly out the That's can that in upgrade things. competitors have part because we all such. come is to to to of new with why But system. that's we're always having So variation the

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think with already the for think you Or longer As other alliance term, Post, that it's beyond expanded other providers do being on given cancer? you view that got the likelihood the of of what's unlikely just your of some the products? they've the

our they're Those at largest never. that things any Well, are positive you remember shareholder. say going you ever I don't Fred, think And you've got forward. look comment? we'll that also

Dan. agree, I No,

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the not cancer line so, that And Post we're how activity now honestly, of quite and enrich within business. just do sales, cancer is focusing with overall Japan what on but expand we

can any So or the cancer out around I deploy assume comes of is think innovation line what you system. Post that certainly or anything we will developments business, the that that Japan within

from question of Bank Shanker with next our America. And come Josh will

management in support there Is the the Looking company? any growth it's the at turnaround the senior compensation at specifically favorable. US, in to turnaround very type growth premium

senior all Essentially, premium. have and on compensation management earned both employees, of based incentive it,

targeted? Can that that how a go into bit? works little is And you

specific levels? terms mean You in of

trajectory? the in Is it is long should think How a invested target? There's premium? grant. compensation above we about a company term growing Is a there certain how

short our our term, can outlined in you the proxy targets see it's and In there. MIP

for true and the business? that's both US And the Japan business

correct. is That

bonuses these when to you're happy. We happy, keep together where try our to – we're happy, to best you're Or happy. tied our we're

those, board a at important compensation part the you together, function will committee that of that look That's our under you if very So we see that. tie

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concept we of an is piece earned how essential compensate. So the of premium

earned for growth. earned a the and that is X% Josh, of premium XXXX X% that gave outlook you just premium remind CAGR to the year to XXXX we

I'm aware of that.

Our question will Hughes Securities. Truist next come Mark of from

Mark Hughes. on I'm calling actually of is Fritscher. This behalf Maxwell

count, just sequentially. at comp, right it environment now. to total X% up the a you X% like it what me was and and recruiting could for outlook tough On I an the looking or reduced agent recruited if market wondering labor give the looks though, year-over-year. like So looks

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the at up. for If six months, first so we're X% you sitting look about

a at strong actual If in you increase the agents XX%. about look QX we at career had themselves,

We year. about time we're I'll on sitting XXX number. So specific about got – of really expected be a more this than I

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average and conversions weekly X.X%, driving We to really producers. up then our year have first

producer them we're weekly them looking weekly them getting up average over again we average to quarter happen we're converted, then into for trying to quality what number do. pipeline, really So, the is turn productivity, X%. That's bringing we're into to drive and the We're producers. we're getting recruits,

will tell really major is for recruits, and we favorable them you don't see headwinds there. out those will of year. recruiting any the average I producers. remainder that them But So, We the get weekly take convert

to looking half forward Som second of an even year. stronger the

me period. that, tend for make post our selling can't have unemployment, we But come a recruiting the has for job the people we're And on because they past. record a Let with pandemic get south. comment for the track been about in high a to us to past remember

that Aflac. a people versus – bonus commission. they're business That's limited in that's all to a with not most working So on commission. salary Anybody prefer

point. So the that's first

on the other workplace, enroll. the difficult. at more when there unemployment, are to But have hand, more But high you recruiting people becomes

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to having these that. So, do things are happening, and we're

the that hard doing employees, kudos give their because would find team at job. see got is to to because out. considering tells tradition it's it And it we've the say, we're I've certainly to you been levels, it doing good lower Virgil waters little and that I pretty falls a I what a it, for they're uncharted doing of just way bit But the how

make comment. to So I want that

our Dan, point, we had that that numbers. into To baked

mentioned in with So year. that's when I And I have. in we you a on that's numbers won't going sure humongous to who see mean expectations. pretty our convert past, you well see used making what for the effort concerted us see QX, target say It's on we right? why these I we're we this

in earlier about president, Koide-san, few mentioned, our minute question, this a comments we Japan and add here like could we he the asked question our would to Columbus alliance. opportunities for Japan Post had expansion a the go as Dan to us Koide-san. If Post. next with before in Jimmy a morning just is today about And

[Foreign once Koide Language] again. is This

on doing Let little Japan me just Insurance. a add or with the we the group bit are Post Japan what Post

We areas. a doing are actually various of lot in collaboration

Post For working care example, are with Insurance the are on And that, Group some to of Insurance service on program the top concierge sales, also startup with also doing together insurance Japan area. nursing we apart acceleration from cancer we Japan Group. have Post

of So as area you well. can That's insurance see, Japan outside cancer we are group working with as Post all. the

I'd the Young back like David to our over any for concludes turn session. conference question-and-answer closing remarks. This to

concludes out thank all team good reach if That our wish relations to for this we to all joining you with continued morning. us speaking call. the Joe. forward you investor and have health. you, look and questions Please to Thank any Thank want you you I soon you.

you is today's attending conference Thank now much The concluded for very presentation.

disconnect your may now You lines.