Kemper (KMPR) 30 Oct 232023 Q3 Earnings call transcript

Good afternoon, ladies and gentlemen, and welcome to Kemper's Third Quarter 2021 Earnings Conference Call. My name is Lesser, and I will be your coordinator today. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time.

As a reminder, this conference is being recorded for replay purposes. to Kemper's host Relations. Vice like call, today's now Guerra, Karen President would introduce for your conference I for Investor Ms. you may Guerra, begin.

discussion remarks Chairman; from Joe Good welcome and make Kemper's President XXXX Officer; operator. everyone, session. Executive Lacher, covers Interim Matt This Hunton, by of opening Officer as Chief Kemper's President Vice and results. Chief hear you, a quarter Camden Vice our We'll you'll Auto. Financial followed Thank and provide afternoon, and third our Brad afternoon, President to and and around Kemper President Executive of results context third to few Kemper's quarter Q&A a Senior

President Boschelli, During Executive presentation, President Kemper's our the earnings be our and Flynn, earnings the our markets Investment Chris by and will Kemper's today, and portion of After the release we Chief closed presenters and call, Vice of issued our P&C division. Form XX-Q. President financial Executive Kemper published Life. and President Officer; supplement and of Executive Vice President John Duane interactive Vice joined Sanders, Kemper's

You in section the can website, our find these of documents kemper.com. Investors

may today the harbor Litigation statements and conditions. company's the of future of within contain the its results safe include, Securities XXXX. meaning operations Reform financial not the of Private These of to limited forward-looking provisions Act statements discussion are Our but outlook and

these actual condition Our from differ statements. financial future results and materially may

that may earnings Form risks these release. additional XXXX quarter XX-K refer on information third our statements, our For impact forward-looking please and to

all financial the accordance presentation defined In required where financial to and measures our earnings to measures supplement, with This we non-GAAP afternoon's GAAP reconciled believe investors. non-GAAP we rules. discussion earnings and release, SEC meaningful also financial includes in are

I All of each stated. be references will period now kemper.com. over to the comparative these Investors turn find website, Joe. unless call can corresponding documents otherwise XXXX will the of to the our section in You

us joining grouped to several everybody, Good thank communicate perhaps Karen. and afternoon, today. Thank key We're points you, for buckets. you, best X today, going into

trend our results. favorable the underlying is First in

Our our underlying and improved inside was guidance. range of ratio sequentially combined the prior

results, it's the development. Second, outside additional year prior reserve including current year happening underlying

together is on risk earnings. and Third long-term to and capital generate long-term initiatives, our improve enhance which made progress distributable liquidity our cash and our our reduced strategic the ability strong stable, flow

And lastly, full XXXX are we reaffirming our guidance. year

Page to move X. Let's

at X.X the the pleased point further as improvement Looking P&C results. with profit actions the hold. our underlying combined from in sequential Specialty improvement take ratio We're benefits

We have confidence forward. in look further we improvements as

personal in August, California marginal increase each had quarter. increase next earned in the in impact its will a XX-point rate the auto effective meaningfully expected, of quarters. only impact As the X third earned

improvement all This so for rate, from more the ratio incremental along profit full for significant other with in benefits our the loss and a tailwind provides actions earn XXXX. quarter fourth year improvement additional

lesser Moving which an Florida recent to largely results. year's or the injury the and the industry protection and bodily property Prior our PIP, second in injury year was a personal trends extension underlying development big topic. current quarters, extent, development patterns by recent has What's happening driven from in outside to issue XXXX. been reserve damage of of

completed make are financial on Reflecting further produce and benefits. exceed continue programs X. to or our on on get their we We'll Slide All and we strong third initiatives. major the on our targeted time strategic topic, when discuss to our to track drivers be operational progress

home as from necessary exchange writing is during on auto a pleased was The me the and the approvals expected. levels. received modest premium business albeit our business actively Let and that all very moving quarter, has We're comment at highlights. exit few preferred reciprocal expectedly

capital our core This businesses. on growth profitable support action return and will enhance in our

We This optimization; on Bermuda financial further benefits liquidity our operating additional and capabilities from me structure expense the meeting highly remain last or long-term Kemper's focused finally, value. leads savings shareholder and with We these significant expect cost of the to returning enhances to profitability initiatives. each the realize the our Advancing topic. we're initiatives in expected exceeding quarter profile. and business maximizing to fourth

We are XXXX our guidance. reaffirming financial

volatile than We industry dynamic continue auto that. believe equal expect being or to XXXX to ROE a frequently insurance environment the And I about still seen. ever has most greater spoken I've XX%. this personal and the

X, be And turn or While I'll ahead we optimistic at what's persist to a believe will to now about least for Brad. this for the we Kemper. year continue over call

I'll X. on Joe. Page begin you, Thank

quarter another profitability. we us return pension positioning had settlement development, year for results, progress As catastrophes. is Joe of prior improved to underlying highlighted, this Offsetting and

quarter, per comprehensive consolidated of our income loss the the $X.XX remaining the and operating net adjusted specialty $XX related of business other or net the below loss in we line reported loss share a million net and net Last million operations. now net loss noncash termination business $X P&C catastrophes that announced of is to of diluted obligations, $X.XX. Preferred a charge included development, were loss and The recognized had included we adverse as consolidated For exiting AOCI. we and adjusted was the and million. $XX of previously noncore accumulated The which auto operating a quarter, result, pension

pretax of catastrophe million in loss $X million, net a generated approximately $XX business The losses. including

have reserve to PIP a Page property development from few increased severity the up periods reserve Florida and drove ago. X/X X/X XXXX litigated of PIP attorney details through claim strengthening. injury frequency coverages years from on Today, damage representation X. PIP bodily changes mainly prior policy XXXX. year resulted reserve from of activity, claims and Turning roughly

will claim mainly the policy damage in our property periods claims reflected to On We more XXXX. injury bodily representation see and these elevated this activity reserving. for claims, continue second remain reporting half to and and anticipate we closing lines related internal related with during time of have extended

Joe As noted, environment the volatile.

exceeding X, we and have these producing recognized X our strategic X their trends on track completed are short-tail or in These initiatives. and be to and update prior targeted we provide an pages confident given benefits. year financial operational the nature business, are on on However, reserves. of emerging our time, current

launched As you we optimize the know, to continue and project Bermuda XXXX, in the we initiative.

$XXX to dividends flexibility in million, up from the previously This the life company. in quarter, be for value expect fourth $XXX to continues paid as million financial indicated. parent the We create and to

This quarter, a was termination, finalize our is termination pension which and to previously expected our underway project, recognized we expenses. which $XXX we recognized charge We the the of from shareholders' release exit XXXX. risk in and announced P&C wind-down and also business. $XXX the to million million included related by noncash to multiyear of approximately tail XXXX $XX AOCI in million neutral therefore equity. is quarter, and Preferred The end capital our process Last reduced is another

quarter. by we writing states. expected we populate is million from reduction already Next, and Growth next policies legal was effort, are approval business $XXX achieved year, And as select premium up this realized over X. in established exchange previously track savings we roughly directly reinsuring to of Page run finally, and into began cost our Exchange Illinois in goal entities new Kemper which Over new to to on produce Reciprocal ramp on The projected initiatives onset our XXXX. the plan is the XX% have to by intended rate receive the their the in to Since writing of exchange. be benefits. of third Kemper expand

We call first disclose of to reciprocal the financial plan reporting. quarter special host a structure to topic XXXX during and the

Moving to Page XX.

intercompany of the investments. the end capacity have company lending are capitalized significant liquidity. Our resources quarter, consisting and and insurance $XXX had At of well liquidity revolver companies holding capacity, million cash and of of we

We from Bermuda least million in expect be by bolstered parent $XXX to liquidity fourth optimization. the quarter our at

liquidity dividends our and and operating support pay payments. to healthy balance interest company us subsidiaries enables Our holding

operating We need continue capital to this dynamic ongoing the and navigate have environment. to liquidity

the for XX. annualized pretax to Net and X.X%. yield $XXX million, our Moving book equivalent Page quarter was investment is income

Lastly, Specialty our to to environment. rising in rate asset continues now the liability approach turn to to interest will discuss results call P&C the the business. Matt I a over produce intended management

everyone. Thank you, good Brad, and afternoon,

and business. closed ongoing an Specialty combined which restrictions, and including by was actions, business a in offset result the partly our quarter XX sequentially and was of Page third improvement underwriting earned points This severity to ratio P&C points new X.X incremental Moving underlying of rate X.X seasonality. We with year-over-year.

expect And we We to accelerate loss while and in forecast, to actions loss trends cumulative the the California remain the our anticipate profit quarter trends. fourth this increases exceed it elevated, continue year. they and to have XX of Earned August benefit rate stabilized. in of due rate part to effective in of points in XXXX,

with observing hard persistency renewed we California, creating remained favorable retention. premium in are market as conditions, policies rates, higher at line especially periods, prior in We

of points rate X filed the we XX% quarter, an book. This additional on of

needed. rate forward, the segmentation Going filings across make as we and will business

Specialty hail events. P&C of a wind catastrophe moderate losses, observed and driven level tropical quarter, This storms by

rate commercial ratio to Our remains underlying continued quarter, strong. and the with the we vehicle combined XX.X%, as are third positively impact and profitability loss underwriting pricing performance. actions continuing project In

the test modest business buying are we to incremental selectively on quarter and mentioned amount second behavior. of call, to As a planning clean write new new cohort customer

as trend. remain We hyper target achieving on Page outpace to cumulative will Moving continue returns focused XX. loss to actions

balancing writings. and tools will thoughtful enhanced business analytics profitability and addition, underwriting new a In enable of

business. over 'XX. I to to anticipate profitability the the environment, life in dynamic despite turn Finally, we ongoing achieving the target call now Joe cover will

Matt. you, Thank

XX. and distributable Consumer capital issued year strong business over on Turning for prior strong, to remained our $XX quarter. operating up for Life the million returns persistency and improved Net stable. income flow. sequential was demand quarter slightly for Page to The third business Life life is products and cash our continues were Profitability generate policies the quarter.

made change the to margins. an X are the financial in to targets; entire it like generate our One, on turn confidence team strategic are for executing target I'll value. to thank and California reaffirming increasing long-term delivering ongoing improving you strategic questions. and our and on ROE now impact closing, specialty returning guidance or priorities loss initiatives Kemper to Page our over of next shareholder highlights quarters, of XXXX on our commitment Operator, dedication for reinforcing an solid quarter, our To Two, exceed over meet we ratios. or progress expected consistent and XX% The their In all our for greater. to to rate reiterate I'd to we combined for underlying auto, financial schedule XX. Turning while three,

Thank you.

moment your question. now begin Instructions] question-and-answer the [Operator will for We session. One

Your first James. from Greg Raymond question Peters from comes

in I'll of basis I'll and top a and policy declining it's start the off increases, the Good afternoon, you that on written have rate year-over-year drop you count might competitively your Can policy rate other substantially book. guess contributing premium? and or I with deploy sequentially. couple might count factors a how specialty talk start . -- in your how, be first the to line everyone. be about I as questions, disadvantaged and the

in This our Greg. start is you business new jump This Greg, Joe. driven, Sure, business Matt, largely a I'll with is thoughts. more by and or our take new reduction in on constraint policies. can

pre-pandemic are rates and where or they consistent slightly from up even retention Our were levels.

business So driven by this is new curtailment. the

reintegrate first. We the Matt and start will in likely business, and of to fourth new as mentioned the some quarter restart that into

test what business what and lapse if driven our seeing of we're is problem and the ratios rather earn business new with up. improve. let underlying another slowly as driving rate we're start We'll a the that's criteria watch quarter on But rates competitive than in will, you this constraining loss seeing and underwriting system, largely

that. to on add quick a Just

So as higher you a nonstandard rate. turn a bit specialty know, customers at of

So on business, force new you leak policies little you're going don't in to you see more. bit put naturally, as a

stickiness. quick it's and on rate, a comment Just the

periods. We persistency are policy versus actually prior slightly seeing elevated

as next of of Joe lack force balance and written a have renewal rate book couple a higher new that our we'll function But really we as the at mentioned, and levels the in sticking rate. is policies we at business converting over of So as that coming is in drawdown months. forward it's point, at earned higher this in the move

Okay.

or cells you to your answer in mention the desire -- system. prepared did this start Just growing on your test certain in remarks,

to combination where are, new perspective ratios look improve to combined of before going some probably bunch reported provide start they of that's your margin but you that, ratios, business, how Joe. additional because writing curious on Just with kind want you a the

slowdown. a not we going a business. say we add a to we to and Greg. were the did bunch we remotely write going say bunch, said were We business did to of not new amounts got -- were significant We're Sure, we modest grow were new of We've close going very new to incremental to start Those business. some not words.

the were some you point it's or quarter business test sort at that, them way fourth a business, we're how quarter those stages, in of the early in work. first is how probably underwriting the about thinking what to new If add as off filters of how the some take of we into going to off, business book comes its XXXX criteria performing that modestly underwriting level,

of about things carriers is and and One know have before, are things the going view we've market to you a of consistent how you when talked work. underwriting appetite, a

it. hardens we and we do that, we we market put underwriting different around what want is filters the we're open price or and happen What believe As find business the bit, do and will up to going test restrictions a you when points, the people different will little marketplace move know to differently.

of every through. what actually come and we a see perspective look what to watch come behave and from we're like and weeks couple through that a so -- And in and did process every day, what every expected. coming week, perspective, what's performance through going profile it

I've again, used And this analogy.

If a bit you you of everything got week go back eat the and don't you stomach before. the did little flu,

that of renewed Brad a improve. and mind diet what There to with do Applesauce renewal XXX% newer probability the the restarting to well. process. are a ratios continuing while underlying out the to We're at -- loss is new going when continues in, not ratio. rates start -- diet It watching restricted rice, our business the -- of some high where so combined the be will new will business and the continues comes You the in that, rates that it is bananas, to perform have have we're at of really our book

things noticed, you've think expense heard the before, of ratios. I about One talk us you've about think

business higher and a Our overall a in expense, decline there's and new because contra is expense little business partly there's decline of bit business new because fees are that in than they they're in new as a ratio partly some charged business are renewals. on

reopen So the underlying we ratio, loss profitability. and to we're watching the testing its and reverts will that new as normal ratio hit expense business, underlying that that target back knowing that

and again, forward days fourth is we're we I'd there if be what the roll a or to of expect, quarter, XX So changes And underlying underlying expect we some be time, at as loss ratio. same incremental watching in not massive growth testing we're a having about going There'll our there. the results we're in new the conversation it. what amount business to massive and be

that's answer, your business think of I did you miss... In does. it I at Yes, said some the isn't renewing Is Or renewing rates? new right? the that

the renews, hasn't the some profitability so rates. it our -- gets yet, it's new now still rate, right it the at As of business but doesn't old renewed

new not the all where is at would to it So of business, of level of speak be. we higher if started it rate all business,

better perspective full from on its by the be is should base business the the the adding that adding target in-force think now. a -- right slightly, actually lifetime we So opening and cohorts we're we're filter return

to question. hog Last floor. want don't the I

numbers $X.X And down quarter. were the million, going the the how the balance So million. end third billion these question, source company just just to what of the slide your marketplace the then see just was at total I'm $XXX decks of second on we to company concern Page sheet, looking gone $XXX liquidity, see million the liquidity. parent It's last X down when it pivot in parent quarter, to the to the from in $XXX investor has in on XX, again a like

helpful. map you say, you're of as how uses and the adequately Can give us cash capitalized. couple a you that reiterating how evolving the of of because quarters, sheet see keep that be you of look sort balance forward, So we see road you next over might

Sure, Greg. This is Brad.

mainly third company. levels. where are Bermuda related from we at life look It a took of $X.X-ish correct. you billion historic cash the kind quarter was elevated the up we the of optimization, was of You versus dividend had that to When XXXX, end

it it a to We in we're liquidity company a $XXX the So QX $XXX of million. and and between million at The was end reduction capacity. in our holding decline down at was QX, in look split revolver from year. last elevated about cash

approximately. at million So we're $XXX

to the that of have As we as plus we year you'll up been Slide than much due slide XX, million higher to relates forward, be they you increase $XXX look ratio -- on you'll the of another is expect to end optimization if historically. this by to see Bermuda the it the RBC look that notice, effort, right will

life RBC X,XXX-plus the for company. see You'll ratio

dividend overall. take cash we'll and that extraordinary so ordinary quarter, the this And increasing

So liquidity. billion-plus it in will be $X

about months, -- $XX about a about $XXX in and uses [ think typically, of sources in ] million interest million $XX expense and dividends, in million we $XX year expense cash, XX we our $XX million. next over As million the other about items to spend

So extend think usage, when about $XXX of several out multiple liquidity, we plus times, $X you can for covered in we million billion that years.

is -- you if that you of And losses, this the of enough. needed? I to are unable Fair subs have Is do to way point? the at of . you out of capital capital any the quarters subs still from Or several pull -- there dividend a correct? assume up are because any

subs, We particularly cancel the pull all out capital life the of company.

Yes, is Joe. Greg, this

timing And the weren't Brad Just billion of end was XXXX $X.X on to the be That of -- really the a life ] than that in that the RBC in before quarter, as world, third. in and have and I $X,XXX we ideal period [ rather company. of time quarter In done you driving would inside an the the was going was a fourth when the it wouldn't surge it's billion. the anomaly people look at an XXX-plus focus out, the anomaly. moved earnings $X.X pointed it's actually

at I cash of combination between where them. definitely is the would those terms moving look in to So encourage in and forth you back

Your comes Brian from next question from Meredith UBS.

of couple them A here.

the business I certain position a good said you've row, quarters your I gives more personal look, had address was personal X could business, mean auto you reserved rapidly you on auto on in things kind development. adverse little Are there last give now development if if And Brad, -- bit very what that reserve going X you're in commercial Are you in know the of your that a just going adverse a you adequately? First, there, for you're then that topic, and confident seeing confidence now? also reserve trend short-tail a you as on for auto years. down what's the but you comfort? grew

And challenges having I commercial auto. companies are other know their with

book maybe and address maybe you that different your that's or So is something, well. why can as

Yes.

and vehicle combined Let me that I'll there. underneath on items. cost do The It's ratio remember containment some commercal a and I X is DCC do the defense $X it's in running reverse, the commercial BI Brad maybe tag just and And that's will was then Matt well strong there. combined as vehicle, -- underlying these team million ratio. quick and The a a related very still on and that, PYD.

underlying about XX-month over If rolling period, you look at profitability you feel there. the it any good

doesn't lot that angst. So us X of cause a

our year development there. Brian, of of related half on the A the up activity to was created the It about and this really prior year little cleaning reserves, lot XXXX. comfort that we is there. just DCC of second saw a bit

a business. have we tail so And short

reserved. in that, we As further from we're away we have confident get what

frequency seen we've Additionally, increased related to of PIP, claims.

through, higher litigated today, we're the when an claims time, in severity total of necessarily think acceleration And amount but about we've everything we to at in can. increase claim, point reserving severity total for not of that higher think a we see claims. due higher captured -- this what reserving coming We we're we

to think approach management best the occurred think previous what we've expect over not we taken is forward. occur only a it a has what we Now estimate, but to years, we going but practical

to the on legislative they of first maybe not third quarter are of related quarter we're changes reflecting benefits in the -- XXXX. in PIP, any Additionally, the that

preferred. And capital some situation. that your the the . quickly, around that given Got going don't that in if company. here things And will I I recipe. start holding you roll in at business my mentioned question, that that some of going the all to soon? second then to ability going know back know impact you're relatively to also just reinsure fund reciprocal you. turning you're then out to to just going going some capital Is at release in kind with the require the I'm curious

at Yes. impact It won't any all on have reciprocal. the

or exchange or Let's to of earnings remember policyholders going either even itself effectively the from this. those capital to We're alone. note that there reciprocal. by the that there capital the a -- policies is notes surplus any with not The through give surplus generated come actual off contributions is

the $XX giving So which number, we're I'm pay would note required a us assisting of loan, we to gave a back. extent to exchange a with say will us let's that making be be it million equivalent -- the and $XX it the million let's up surplus

something doesn't reduce do reinsured business written business If again, new reinsuring X parent be -- our company making into can capital going in into we to That decided we that up illustrative. What holding effective or state we reciprocal. to XX process. was take in the January the can Georgia. in be all I'm the that is the as reciprocal

be providing be to and -- new surplus on over, the premium that. note capital to be would Kemper business. paper capital would on for the capital starting for become transfers written the that any to wouldn't write company, business new able reciprocal because need we hold for XX, into Kemper actually actually January relief the a that would It parent And reinsured the

not hurt restrict relieve helps doesn't and the capital actually it us. issue the So situation

That right. Yes. That's

disposal. that Joe flexibility capability I'd is we thing other our Brian, here to is actually think more at know The what gives is I tool us or add, have articulating the it

with doesn't Eventually, Corporation. it supplying when get Kemper benefit for go notes. potential release out only X and additional as be and third-party exchange the can matures, have we reciprocal which to capital well, Additionally, provides surplus the Kemper

wind One out to in of reasons a topic that quarter. earnings series of do and slides of an these. helps sort we're that. some to first special spending up on the reciprocal in It's X with call of time lay hard going a the We'll the

If will imagine you transfers required at as go can the exchange up, that see exchange capital the premium down Kemper to going we into down, up inside shareholder naturally this, business go go at required Kemper over premium exchange. happen what and never you're Corporation to go capital time is inside exchange will give the capital the

process time So it ships. these for because those a why statements and it. does will things little down as But move of back read complicated starting really little it sit to short first of the see And it model and as going release to help that's through. it to to little a actually how more and numbers a we're in period our are show transitions that everybody forth, the ultimately this quarter bigger goes get make a as to financial capital

last then And quick you. X Got here, just X Joe.

at profitability specialty personal third point it quarter, us remind And target I'm you target or and profitability it . can is. business? second then assuming whatever your in in your is what said You some is XXXX,

targeted that view We've the year plus year. give XX% typically we target has we're a there next ROE going generate don't We next Yes. will combined to or a be low to provided definitely guys XX% ratio a cycle. be our -- double-digit over ROE a you guidance

more achieve in zone if that at our So targets range, and And the rate we're if you tried we it. trend. math, ratios earned that in did that lower underlying little that, had quarter, [ just you that. to are will in said loss could has of the auto the combined specialty point the year. to we've of offset combined obviously California earned rate from for the third that that, of reasonably you but year, and on through expect XXX.X very that expect out a early end running reasonably the in ] inside than ratio little would

of continue improvement the we'll over combined to And quarters. provide next ratio couple

very I careful and we've been think that. about describing that

plus. to and the should At provide new time, start a same So will continue its penalty sort course that ratio. Those might you the will have way more combined improve target of that a writing would will combined ratio be business ground of a little converge that of X hold the new business and our bit not year. we'll what that the in will over excess see produce

Piper from question Newsome Sandler. Next comes Paul of

Always ask . you just that can driving reduction about Was revolver holding helpful you company of Could the capacity? on at liquidity call. the just piece tell in I the other the what's changing? -- that the that's

million last that to Yes, a upped million. from bringing year. that's driving it covenant, sure, covenant revolver our a I'd that did $XXX Paul. We're $XXX hitting leverage and down. highlight, we -- We did we

the we're $XXX below today. slightly so million And

at liquidity roughly concern. how historical a stand don't million So look $XXX that. shrunk the have of over any in and no that's if we've last I from and at you concerns year where actually with business we perspective new it plenty

doesn't it's right? preferred business, that segment. non-core you're revenues to to Is below right? it obviously, on operation consolidated through and they discontinued the -- out basis operations. Am line, the for line, like but below this just the discontinued like all technically at accounting being The topic. looks running It look expenses as treated Different you're Great. like are a the it's gained were am line should it separate I I as breaking . Or wrong, a as not right? it that before. going

cetera. on would operations. have deal It's or to is be discontinued really the ops have we a a that's Technically something noncore the below line. table, sold et

So planned. operations. it's as down It's noncore being wound

to that, from see provide as we'll you. try was noncore this think can I to $X operations information possible much You as quarter. it million

cetera, included we forward. et catastrophe think it as also of segment but a you losses, won't see about I million $XX going

It will revenue, example, be the... premiums for in the consolidated include will number. from like this consolidated

it noncore things, net standpoint. You a into detail like X from in standpoint, the those component any income see all -- won't is premium investment of operations. getting lumped a of any

So insurance, are think about think all so taking comper previously a preferred segment. X to components of that about line. those truncated -- being

seeing discontinued that I wrong there. I just business exit this, exit, passenger think the you're on net performance or part you're we're accountant, auto. the it but but so if issue And of to ops, it's the know know didn't down, on Paul, sale Brad's. I private impact all we the on not of shutting an adding the I'm

part the discontinued it we So that of that's ops. advice we move getting is were to was, of I think, some why can't

but thinking we I'm about wouldn't show fine. for situation, modeling discontinued firm noncore, is will total total it you're like think just up like then. from that's your And on it if perspective a show doing consolidated in in up a sounds revenue because U.K. revenue I in op right. was Which revenue, if total just it modeling or the it considered --

the it it take and definitely can the come of through. pieces We will Paul, line, you help how off modeling with

So ROE. a variation last this question, I'm giving lot. the of The XX%-plus

bit, lower on quarter, sort year losses if example. because a a is communicate for the I don't that I'm the it we've thought asked fair? of coming in for the thoughts on question you that's decided next . because the think essentially of know in I the pushback quite Or incurred that be capital this Any up call. that? this is or Do so I'd reduction So of, expectations the to may getting not earnings

Yes.

were to XX% We've we we're doing said generate a of plus a trying that a preannouncement. little we get how -- we did I think in simpler stuff. going to communicate we're Paul terms ROE,

running the And where limited attention to simply on all a around what -- I trying actually understand GAAP ability trying press just to business our pieces are. nuance. release describe not of plus. doing. lot we're XX% and in try there's So of we're a ROE to a a And to basic there's every sort we're calculation with things be we're It's a of sticking

statement. trying math there, be in a hide everybody Halloween, in -- looking I weren't you're we And weren't There's describing it. to the maybe is ghosts, trying for of in understand because to it's different a but it something simple to trying We was signal.

at questions Joe Mr. further no proceed remarks. with Please time. are There your this closing Lacher. Instructions] [Operator

the joining again you, the Thank quarter . call for or fourth for you Thank to results. the quarter we forward look Thanks. fourth you, our And to today operator. speaking and questions. everybody, in

This you concludes participating. Thank today's for conference call.

now You may disconnect.