Aflac (AFL) 1 Aug 242024 Q2 Earnings call transcript

Good day, and welcome to the Aflac Inc.

Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I'd now like to turn the conference over to David Young, Vice President of Investor and Rating Agency Relations. Please go ahead.

Good morning, and welcome. us Inc. joining for you for Aflac Thank

Second Call. Quarter Earnings

at your I I for you Stock briefing to X. While on our New want December Exchange analyst us mark attention, join also have York to your financial the calendars

and Chairman, Dan President our Incorporated, Then of update materials and President of and supplement and current Max our Aflac results provide United and our also States. operations in capital Broden, the Now will Amos, an These of an Vice in provide on earnings CFO Incorporated, we are this topics financial CEO on investors.aflac.com. liquidity. morning, the financial Executive overview results will Aflac with Japan release and addressed and posted

also In addition, includes for the Max XXXX. outlook provided about his which update, information quarterly video

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

Virgil Lake, Chief of of Masatoshi Life we're President Q&A President Representative Director, Global and Aflac joined Insurance President Global Aflac of Director, Officer, Miller, Representative Aflac Japan; Charles by Brad U.S.; Aflac President and and Dyslin, For also Investment Koide, today, Investments. International; Chairman

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

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

now of includes available is over on to certain Dan. mentioned and I As release call earnings non-U.S. measures. I'll GAAP the the reconciliations hand earlier, investors.aflac.com

United per the long-term another continue months States the and believe for generated that first products new months. to the we're shareholders. good broad We create believe Incorporated diluted will for to up and $X.XX up our our time, At the share were joined to for X share for and quarter and need Japan, in $X.XX earnings earnings value and XX.X% On perspective, morning, strategy the basis, distribution strong the for months, earnings $X.XX. From we of in X growth David, sector products quarter product an States you the third both results. XX.X% profitable Aflac glad with before is and Net the for strategies. we we've called continued $X.XX, solid you, first has were Thank were with we've offer quarter been and as us. very cancer and our we X Japan, adjusted a per diluted operational than stronger like the insurance or United WINGS. ever focus Japan. Beginning to it on same products delivered

began This option. year our continued and products. Post the strategy insurance X. offers nursing on to policyholders formation customers designed an younger asset product core while introducing with sell in June introducing new attract fiscal We've new including It opportunities life also them products, insurance continued of in sector was channel. Japan, third improvement to cancer component Japan through we which the As saw Tsumitasu, our launched we care

delivering his distribution I'm Overall, the Japan, record for with to efforts. Koide-san quarter. Being to support second an provide how and each margins channels, consumers. continually and Japan financial for team hard increase buy channel. element insurance optimize a partners profit pleased the continue help sales opportunities great job where sold alliance in consumers Japanese banks, very to X.X% a in agencies, with done broad early, turning remains quarter. have work to of very our We'll around to protection our and their the our pleased drove network While sales including have of still which product, the strategy growth we're want this agencies important of

This We Turning life, group and welcome growth absence voluntary a to and management sales benefits. as the the disability a achieved benefiting individual good quarter, U.S. in growth is for X% result period. we to enter tends more the growth second focus half time, enrollment the At heaviest stronger to by on discipline. continue we same the year the of profitable underwriting that exercising be a from

address. we've in value policies benefits. of certain improve realize Additionally, increased We to management, policyholder. disciplined policies for We've the expense the believe approach customers the our remain strong value Max related continued to persistency will which also benefits their the as will and

to the the enhance policyholders we doing focus Their continuing efforts the platform. very our and of proposition to profit his with the curb to profitable contributed margin second strong Virgil team and dental I'm year, and the As value we're pretax vision of growth, the enter quarter. what second on Overall, the for expense XX.X% balance half are optimizing pleased for ratio.

defend strong to our capital commitment as job capital Bermuda. establishing well great cash deployable reinsurance yen his We've platform with a Max weakening turn it and produce I'll performance the been investment in our income investment continues Now losses as prudent to minimal leading our years liquidity with flow net ongoing recent impairments. to pleased and done to to has take very proactive in against as our management. steps portfolio's team and

to the strong responsive to make to second capital XX repurchase. We and continue efficiencies. record this and of the with investing to intend the declared long-term pleased and strength liquidity our committed while Board We prudently $X.XX. shareholders. As of $XXX path dividend, of to dividends policyholders both our balance it. we consecutive the promises of needs tactical insurance us $X.XX record behalf quarter million company, to our primary and being capital policyholders, track tactical growth dividend repurchased maintaining of extending this remain dividend driving preserve continue the our flows. I'm This tactical first capital record is quarter managing an deployment. on and that our and and a our to record financial years during intend increased growth supports our it shares track approach we of treasure balanced cash to ratios on responsibility We share when the set to of strength the operating and committed third XX% where XXXX fulfill capital quarter We in remain to the in a continue our

sales XXth the to business of team, Japan. In promised, in with of employees value us customers need stewards when be we the our goal in and the they doing management distribution of United insurance just our dedicated there States continue as Our year best November, celebrate our products providing Being business. in supplemental the we policyholders and for this underpins most, Japan.

seek our long-term the a protect more detail reminded We're company has offering our and cover States, founding Max? our Stock the life on since XXth one us Exchange. promise publicly well is toward to to the traded in New as our York underlying Additionally, than and from growth, cost. in come now world. partner. our June, financial individuals hardships celebrated we covers. important the that that while to we thing Max relevant families in It's changed strength United the policyholders. I'll even the health the in the year makes XXXX, insurance more results. still advances work with continued and of products approach deliver we not in partner. We potential the turn over markets care We Aflac on to our environment themselves medical have positioned insurance complex Today's largest not achieving financial incredible that also incredible best believe of has that ensuring Japan that growth ever health X program in believe to for our business as produced to

as I on Thank quarter update you, Dan, Aflac me provide joining and a for the results of for thank Incorporated you XXXX. financial second

million $X.XX from quarter, to in gains and quarter. FX adjusted diluted the per impact In remeasurement increased For a with expectations. reserves negative XX.X% on earnings variable $XX investment above our quarter, this return ran year-over-year income long-term totaled the million share $X $X.XX

received earned X.X and We these JPY results and decline spread payment, transaction paid-up and declined to approximately currency gains quarter increased reflects adding from share, $XX including policies. view a reinsurance million fourth internal we per This as our make-whole ROE foreign our Adjusted to value with translation capital. share premiums adjusted segment. was losses, of impact the billion or X.X the impact quarter earnings. the acceptable XX.X%, the the an $X.XX per cost book adjusted our X.X% Overall, Net JPY of XXXX, Japan negative a in for X.X%. billion from executed in quarter solid. Starting negative also

it This to in XXX cancer be to XXX our third benefit XX somewhat leading XX.X%, ratio X.X%. Japan's quarter, to QX total down basis up Long-term which the in billion the but elevated, is in year-over-year, ratio up points trends to underwriting favorable At and gains benefit in is remeasurement addition, for were a In approximately time, within as deferred continue was XX.X% change experience. Persistency XXX at favorable treatment XXXX. to and positive remained profit relates liability. place, hospitalization be in ratio from a with expectations. our the impact impact the solid continued We was rate XX.X%, benefit of came policies line declined points of expectations. there points in the year-over-year. points force sector Lapses basis experience persistency same estimate basis JPY basis from with year-over-year. X.X

and hedge investment from Japan in up FX compared good for yen and by the of points ratio continued XXXX year-over-year, to very costs, a pretax expense driven impact from was transactions in higher basis alternatives Japan Adjusted result. call on second primarily net terms favorable down the quarter U.S. disciplined basis our XX.X%, income up on lower in yen income. The was was mainly quarter dollar XX.X%, Our XXX XX.X%, portfolio management. margin expense terms, XXX points in allowance year-over-year, expense reinsurance investments by return

XX profitable earned Turning year-over-year from encouraged We're signs X.X%. results. on Net early increased persistency Persistency and premium remain focused to our growth. U.S. by will points basis up driving was XX.X%. to efforts

higher that basis in total by year rebounded XX.X%, the remeasurement our quarter. gains QX mix long-term than utilization benefit and expectations. depressed ratio pandemic driven a in ratio than in estimate impacted came are the We from levels gains at and remeasurement product more has XXX the by with XXXX, points line ago. lower during basis Our Claims XXX points benefit now

to first in benefit XXX tend and Our expenses higher year-over-year, down management. driven second expect XX.X%, was in We expense the would U.S. in points by the improving platforms half from expense scale the primarily and seasonality stronger basis half. ratio

solid group increased scale is by disability, businesses total forward and to our grow ratio we'd and this to income our portfolios. with of direct-to-consumer dental network vision with expect a higher yields expectation, initiatives, fixed impact by net driven X.X%, investment expense and these both good This growth Profitability the and and as improve was our their XXX rate points. U.S. in line in very on the result. a mainly basis Our life and was margin up decrease going in also pretax profitability. Adjusted segment XX.X%, U.S. alternatives

estate with Our loan stands real watch than $XXX total list currently. million less of $X approximately foreclosure billion, in at process commercial

of $XX million result associated loan current increased moved these our estate CECL in a and had of this valuation with by into As owned. foreclosures charge-offs. We marks, six reserves loans real nine net loan these properties we quarter

reflect maximize We not true which why believe and ability does to confident in continue this to our is portfolio, of manage economic of them cycle that ownership recoveries. we're market take these intrinsic value assets, distressed our the current our through the

corporate an net million point These higher higher REIT. Our in volume these line the of purposes perform positive of to well, corporate losses investments negatively of tax quarter. below middle line. impact to at continuing platform, line to continue $XX we the than investment secured last net portfolio investments outcome the senior lien to and $X with in tax impacted pretax build with $XX associated year, million, our at income date, the million investable bottom our are The this expectations reinsurance line market our performing first volume Inc. investment a I'm out U.S. with net for income Aflac a by recorded was credit GAAP to cycle. In our a due investments in pleased with expectations. We're gain $XX assets performance. Aflac was credit To loans lower for and segment, well and credit Adjusted million. and tax the of

at Japan. minimum remains X,XXX% finalized, within million. our external with company ended position And roughly well estimate This the SMR we release an $X.X in RBC capital and leverage our stood both billion quarter. balance. XXX%. shocks. U.S. of which impact not $X.X combined were with and greater than Unencumbered our XX%. be monitor, as These to expectations Our XX.X above cycles to and impairments FSA well strong, to is XX% the limited actively strong corridor quarter manage stress while billion, $X holding liquidity and ratios, million capital or JPY Japan And below is leverage are statutory to we we billion earnings as a withstand XX.X% credit our impairments $XX and capital. Adjusted in were above of

we with in hedging terms. We and XX% of the stock denominated is our our As the movements to cost in of tactical now part capital meaningful leverage and to how of relative QX, our program own IRR we turn call David. capital. protecting these on the our in of with strong Thank a hold our sheet This in risk-adjusted be deploy U.S. value order dividends balance Aflac ROE the of fluctuate intentional capital continue in will approximately in good of offering million to debt $XXX We'll the enterprise paid yen/dollar flexible million deployments. over manage rate. drive economic dollar Japan and repurchased spread $XXX to and yen, you. I'll

We'll you, first Max. question. [Operator now Thank the take Instructions]

[Operator & Please Dowling first Partners. ahead. with Instructions] question Joel Hurwitz comes from The today go

had compares what product Japan new that opportunity how return to do about the sector the sector happened can it and guess third you cross-sell very talk you in that, strong the sales. I first in just is then product product? June on So the see And there? that launch targeted

Thank Max might you. take that.

Yes.

profitability. product on start me Let

well, GAAP has margins core our third product obviously on up business we've So is we business. on business then significant that when an IRR sector of gap sector new higher third as than very, the at post it very reinsurance through we or our lower sector this And to basis, But look lined reserves. returns from different brings expect third the strain basis, too associated this attractive business. very us with higher than a lens, our it reinsurance not core because at a

cross-sell the products? third And the opportunity sector there with Okay.

I cross-sell think the That as lifetime, travel we've gives as both product obviously, to younger this And an through with that opportunity it relationship. customer where, opportunity clientele. cancer will medical evolve well. that time over then a targets to build we their us and

time, clients, get to those the there over the and So but then I both good also over Tsumitasu a opportunity for cross-sell us to lifetime, think clients. younger the is medical cancer to product new

who that Japan writing set Aflac this I it does to than the but Thanks. explain an better, remember, policyholders. income able say of have with it's product, is, important maybe TSUMITAS may disposable we're potential older a younger group less

product. whereas we and product product supplemental or we'd start X up in product, group, offer more. would or third so the a might And another the With with in sector follow which putting this TSUMITAS later, be the then older product. TSUMITAS And our so add and by year

work Japan, thing towards we believe, we're policyholder we'd for you doing things the right of promised building one And here as doing. the us. which, it's is different So that of course, we is base, Aflac

comes with The question JPMorgan. Jimmy Bhullar next from

Okay.

just question ratio both expense in and the the businesses. First U.S. Japan on the

it's years. best past think I it's the the several in been

of So discretionary by wondering how the other in maybe being that is timing and savings and -- versus expense sustainable much or advertising? of just driven actions timing by spending driven

Jimmy. you, Thank

segment. this And a that higher out year. half guidance have seasonality a Japan XX%. that Aflac specifically is number. having I'd operate Japan to think Japan. we'll with range turns quarter Let the in the XX.X% me term, We've I range little bit in within for We very XX low a overall long And to the XX% that Japan some the spend. with start tend Obviously, of is second call

with spend advertising have that. some promotional lot we'll a sales of that, activities So around including and associated

that So therefore, range. we'd for up I'd end to expect year in that the of the that full end XX% lower XX%

would highest For of the second also as And sales expect well. in caution our the that half. has you please the very comes the expense I'd year There fourth have mind good level in quarter control, had U.S., to where expense the in I'd activity, differences we every spend also especially that spend keep timing are first with increase half.

includes Group our now. platform. includes in ratio a ZEB tends ] right not overruns group have And extent, be therefore, U.S. expense business, the the expense business fourth the number we're includes at -- This businesses our scale. quarter still our to with our to business. and are of businesses Life So some time, Vision It Disability Dental running that highest. Over also we've and [ and our it Direct-To-Consumer and those

longer expense that and really reach then no have in they'll ratio, come overrun. scale, that As those we'll businesses expense down

caution -- they're particular the I to ratio. expect time about those XX% to of expense in over range our very second we're in the U.S. year, think means that half the expense when quarter. is and first XX% to expense management I'd control you of you and So the pressure downward But But in the with there for the that full ratio expense be U.S. still for the inside would pleased

But seen And in then And or as any the some seems have it seeing or the environment? of past you on gone in to Japanese few companies a are talked And about up competition the what months Dan in what for is cut adjust years? lot rates competitive in prices the you've you just the the Okay. Japan, different it for last like few over call. maybe that. last than team, Japan

to you like would take that? Yoshizumi,

Japan. charge the sales Yoshizumi. for in in Thank I'm [Interpreted] question. of you everyone. I'm Good morning,

So the as market. third have entered our you've sector competitors mentioned,

they're years XX And or ago. years a maybe different environment totally their is or And the with reasonable products. that competitors very so X launching ago low-priced compared

on to needed our is policies and a concept in each enter from our customers in all sell change. Aflac our solely this history is providing the sake year values launch the illnesses Aflac, environment in just what thinking into that as that change, by lower of XXth treatment for we times times based anniversary And lowering product the insurance and methods products at lowering we've the or the excuse is not appropriate customers to products Japan. -- in the the trust have at because prices, about me. And and However, this our

sold data We'll as most products Now that's the March is provide in XXXX. to to for is third we That's can XXXX products. recording Japan Aflac publicized that sector continue according the me. April aim so appropriate #X customers company -- all what well #X between most and position. customers the in for been And to for our our maintain policy

comes with question John Sandler. next from The Piper Barnidge

question Japan. the first in on is first My new distribution with product sector

is Your and introduced product customer in product. customer the the closest of doesn't new base target I Have know much that early have for existing an existing June. identified is a customer was product. how this you that one

They're Yoshizumi, second. translating, Koichiro please? X And give us

young to [Interpreted] know. as offering is there of Japanese increasing strongly it a product is middle-aged systems and reason government why Japan. in customers, well this customers as is to market we've accumulation let target sales. And result choose and the This paid this And to encouraging various that premiums. needs asset the citizens is new customers. to is that product is product really heightening can And that in all, that, is very large are I first customers their why that. well, Japanese would and attention launched after and of accumulation existing asset in our of once pushing the Japanese citizens to government needs Yoshizumi asset taken the of and go Japanese so is order our middle-aged selling again, very And allow respond attracting Japan. the do kind various after the you target options your and follows. Well, me products And reason as by And the is they is number are because up young question. customers answer We've our continue a say our our formation

sales death can use paying that For or our receive example, kind this nursing cash touch care agent accumulation. And converted or and with through go will and benefit so. We've customers more opportunities customers, have already after with these as can there salespeople be asset our our benefit trained will to there about customers, talk the sales value for pattern, do and be cash our our products. policy customer third this premiums, to of be we off we've the points discussions to to sector more as established

ultimately So sales sales TSUMITAS third our way our using at to young for Because would is and a company by purpose by by time. doing we're to middle-aged each our centering product new this sales on all launching first really products times that needs sector increase and product, sales. third that as sector is on the me. sell sector That's increase third of sector the period product, is hook. of of And customers based and

Very broader? helpful. product? My talk it follow-up the is plans XXth on mainly Or that? distribution, this to related about Could anniversary is you

it's This not I just company sector mentioned, third And is as but since TSUMITAS, we're mainly a products. [Interpreted] sell about Yoshizumi. just that again

So to sales. be for customers. be in gifts having to anniversary, customers, -- increase our cancer campaigns touch our order offer selling to And insurance XXth example, our points the for with for pushing we'll we'll

no We also that concierge have. competitor other have service a

proportion only of for a agencies our Anniversary Aflac agents XXth That's line maximum. the We've years. at so team, pleased with there's large happy sell about as these a through and the video sales past do sell to And for what this a website, together like concierge very and appeal We, support sector And have And services. anniversary. sales and third agents products. a celebrating we're agencies these agencies and service for me. big to with agencies commercial momentum planning would agents extremely is are the of all to that to our worked in these large and and sales TV sales XXth Aflac number XX

Evercore ISI. Tom The with Gallagher Instructions] comes next [Operator question from

response This question, of just product I you're all sector questions clear, John's I'm TSUMITAS the assuming Is products. that the would existing product, not be have TSUMITAS In in that already Aflac follow-up be want this to to customers Aflac couple product customers. brand-new Japan. selling correct? A to third on

Correct.

is thrust is we mentioned by sell wants new someone it because to them certainly the to acceptable Max, But if Our margin on very this will profit was product. write buy, to customers. as

And so yes, that our to we'll want it is We what working younger push. not wants is we're take But anyone the towards. customers it. buy

have do keeping Dan, are in-force selling of cross-sell customer a opportunity. that to the track then -- does limit base where you sure that situation, lot there And make you the sales a would this of doesn't monetizes the a become kind of and force obviously, because

we're. Absolutely,

cutting talk can was more Max can a cover too. through translation they just little it. bit about and the that Now more, That

track that we closely. Tom,

numbers it's We'll an publish what important know track those we necessarily publicly, we but keep are. factor not So that those of.

The Nick next question Fargo. comes Annitto from Wells with

in quarter a wanted the the to sales came on know bit. year in U.S. touch guidance. light just little a I I relative the full to

overall get something to wanted on the guidance the in for thoughts just there I So year. hitting your the of confidence

U.S. This is from the Virgil Yes.

is -- Let balanced I quarter me strong think the the big thing U.S. the approach. big because for say that the of takeaway very

one higher benefit ratio. but -- sales to put lowered negative that intentional, just earlier, of had saw increase our some an heard from we in intentional heard expense margins going That point in more XX.X%. My not we quarter, drove ratio was We a on actions of and value had our heard that XX persistency. QX. We You X%, our U.S. pretax basis of of we what led in we've points from up hands the the customers. and highest from some and came an saw in years XX earlier, into Max you knew was points Dan the in we is then premium of the into to increase that

mentioned business only claims. changes this I we've That profitable where actually in make business, people higher that we Continental to ZEB quarter, that churn. American to less formerly was are wanted focus to earlier lot ] group We filing [ our that made has go that sure benefits, previously Second business. of bought. -- we're a really business more bringing And a

impact. that would have we knew an So

So expecting of in this of target I'm expected. also -- the seasonality, we'll buy push see the We're year. bills. stronger second our on earlier, that to scale, X% some but half a is what to stronger from stabilize what products is But we the A Max PLADS. performance right in I going mentioned call going actually it's see making lot to platform. mentioned second disability life better from new a huge to with the a before vision with see dental performance property. I bought investments we We're we're half that and and all that the that

to some a announced manage also the partnership us with help to bringing We that with SKYGEN excellence that's operational table property.

what veteran we've with see higher all broker PLADS the with them, from performance half And -- with of with a our sales agents yield driven partnerships, and so in the push and second stronger good year-over-year then continue all, I'm higher the expecting on we'll the our property, and in dental year.

make to And I want a just comment.

U.S. products. is better. to we work complicated of in of and of long best U.S. seen they've of into future. I our company realize quarters training team think I to years one the brought kudos the they just our for Virgil And to is right need in to I got because I a business lot think air. term, as be that in expense And the have do terms operation switched the that we've prepare brought we're up hard more the balls they're They're a things, down ratio, going doing. business. to loss for think And go other the stronger doing their we one best we've and us much the the ratio, certainly the people all the they

I more X% that we we it compound that X% yes, So as than more X%, profitable bigger is had -- move than want cleaner, and you much business promise I forward. should the normal I'm sales, it's but is a because

trends get recruiting to to guess U.S., I levels. with bit I touch still a helpful. go way a the on there? to said can you of pre-pandemic That's sticking back just know have you you

be just on it would thoughts So recovery good get the your to there.

in came second the In on came first recruiting, very up the strong. Yes. with negative quarter, we quarter though,

look I leading conversion going for rates think that second forward where half. I mentioned, and the pre-pandemic, and continuing us if in increase. I look for the you back we're see productivity. we're better what invest XX% going we're going and we're over But kind today, you of a recruiting, quality go higher trend at to

very to turn this see leverage that we're to expect the to local what what to get recruit, is and And it's then to XX,XXX. then second with got brokers some our out we on an is what recruiting and our them trying recruited did agents, them really across the average right then bringing us. productivity telling I'd week seeing we people efforts path of going story. process, ultimately career the year, to drive we agents, the about we pleased What be do I'm same better support we for a now to Last we quarter. headquarters into call that a we bigger country. message from actually year. over local continue from and factor producers. We've in in Aflac leverage the nomination You people listen really and going national

fourth the Some third of and also. quarters efforts will definitely continue those in

Evercore Tom comes next from question The with ISI. Gallagher

have over to follow-up quarters? in June next expect bit third I this going been sold are over rollout the product the of rolled of sales wondering the as Clearly, percentage rollout quarters are because think going you sector, of near how Can you same you distribution couple much it's we just to gets as Would is you third to question. see that sector I going guess, think third in hang out, there all out, slowdown do you see a next rollout your think How a term, about how this here? a about So the being the big sales success. had through I'm a to couple you while a just go? this sector? playing to talk do TSUMITAS think I little larger become seems

some very and an from hand around And me it total for because it's with I'll caps to reason spread We have returns not also off do kick producing product. standpoint, Let details. margin significant why, -- our to from explicit cost IRR Yoshizumi-san profit standpoint over and a any from the more this it i.e., us, it's for a a capital. good both then of

#X that do we it that we're player quite product much third product. That third very So to this a in make is sector third this to as We actually our strong of still about sector being and the lift want we said, can franchise. marketplace position sector and want sure we believe a our that bit in company, exceptionally sell how Japan. keep

details help the give the the product. And So this product. can of that timing rollout you Yoshizumi-san the of in context some is of more terms of full

This Yoshizumi, answer like you. your I'd Thank to [Interpreted] is question.

quite customers June this to sure from on. But sales. to. And role. a we've that second big as a serve that preparation did product our as And easy a that to be should that will be result, result, reason talking for talked the big was agents visit certain easily agents since sales about sector the beginning be products. the our not is third products of other prepared first and really the why of play about a been it successful selling, their level to And products. to June customers beginning to And agents because the same level sales volume, that's -- because third mean big July we're and role our launch earn distribution has as working would this why sell about agents expecting channel a this to and sales. been to in to fully a of be needed are we practice talk kind preparation products a kind to the as they of of they about talking TSUMITAS own of sales all, sector sales full this And cross-sell record what the because to launched third difference once to able need -- record is we between to easier And was quarter. And result how been that we're is -- product. a the has sell product been can as that them really agents its launch, First this selling, we at sector TSUMITAS. able of talk our new this And sector big TSUMITAS start very product, our where its how where product make will customers, it should for was we've on product the we've X, hit made such of this the the on the feature reason for those

TSUMITAS as all expecting own, that, certain sell for have volume me. well. its to to third we're That's on what sell but sector is products level top on certain of So to a

month, to want it is we introduce no to come in with not product is you've always is. as of I've is a whatever new when What the couple levels others. off. And one the It we unusual X/X that. of Number show it But comments. This we seen matter what we normally spike said spike. make and Dan. we've that I the have down, said, We're first don't a show will a is product, is, then he it a a expect and period. spike new

So keep mind. just in that to

numbers in were that is numbers thing other the the The past. small

few other is. it other it's there's also, so new here as a different that we're have. margins nothing we well levels. very as about products our And pleased to find get products way excited makes it were But percentage And that than a than to me from that of that to any and look that the makes it's bigger a profit acceptable able think normally doing

do been part. do find do that to it, haven't appreciate to and been this, way help could he it. very we to we we And credit, So able given but been to able a this. has do his We've Max's wanting much on

we ask. characterize it, to that but And that want XXXX years, the the not think is I Tom, XXXX. sales to through I you there differences. a different had that this I'd are ask, is question wanted address in And how WAYS from X you main did

of new we'll business is more important sector for business. first very that core a because is The one that's and interest much this this do product, rate-sensitive frequent third more repricing product our than

that more make that very IRRs The you the some sure this together, we get all now other strain can business of one -- in relieve back that take utilizing we'll higher. is frame and reinsurance time new And WAYS management significant of the makes piece that if that distribution channels. XXXX. different XXXX of of much that third that is a And to we we're that that had the the were diligent very, is from what through sales have

great, Max, was stole it. That's my followup. you appreciate

Apparently it's teamwork.

The next Dowling question Joel Partners. with comes from Hurwitz &

quarter. I wanted investment sizable yield net make-whole in particularly have the in a income VII slightly [ the seemed to from first adjust ], to for just dollar Even pretty favorable the portfolio. Japan and I touch U.S. it on step-up the in if

implied think on level is And in sustainable? Just -- QX any that? color what guess, I that the do normalized NII the you drove

Thank Fed compared very, remain benefits solid the year. rate question. Dyslin. half very things sometime Joel, and were a you've that, that you ways, attractive, highlighted, us remain for have pointed out, significant likely in historical even very very including of to We that attractive do our did drove that we this fall. as the levels, are this think quarter adjustments several and few to a is Short into second Besides the Brad floating sustainable you rates portfolio. with back that there the cut short the rates

we public some bonds moved some portfolio. some switch the tactical a pretty capture with sizable portfolio yield trade. to took also We actions It We in our opportunities. around year, few did a things early in the was

also credit advantage accelerated spreads We private portfolio. in and deployment of took some structured attractive our

think we tailwinds half second in So things the the of through going continue second that these quarter, us carried to the are year. the have

good there we're course, risks, half. well Now but second of a think have positioned pretty and we are should

Very helpful. persistency. U.S. I just then on And one had

from some by So Max, your prepared seeing? signs the just drive the do you're And put initiatives can guys I persistency guess in early the in are much improvement place. you you what guys you that of encouraged remarks U.S.? think in you how you mentioned that in

when -- that have from that would basis put earned time net if over translate exact an anything on even that number you the not going like I'm you economic impact that, get to say but meaningful something is premium. into additional I'd XXX points

over time. that drive So continue it's something we'll to

that be somewhat persistency The around business. driven that, other you will aware to thing of jump want is of mix I by

it is So U.S., gradually our the in-force in changing.

much, well going see applies also, to higher our than over Vision persistency then of our improved business Life rate have has Disability thing more and in-force, business persistency. Dental and you're should a which as So proportion an Group the to as our same a clearly much average. And time,

important all businesses but be will improve component impact mix we're the way underlying they So the the an and driving persistency, as then well.

well. improved So business impact over time, the as and business is persistency obviously what then we're both that by driving mix

sort that you as colors of that more some on give So out time, well. we'll, call over and

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

the for us you financial join on and to or joining you'll all at on hope be our Thank York you, the morning. briefing. Betsy, able for I Stock thank this New Exchange analyst our us at December morning X webcast

the reach any We you've out If to Relations follow-ups, hearing forward Agency please you. from and look Rating additional to you. Investor team. Thank

The today's you attending concluded. conference now has for Thank presentation.

of by that live the present marked spoken [Interpreted] You were interpreter an may are this on transcript call.] now disconnect. [Portions