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Planet Labs PBC (PL)

Participants
Lance Black Senior Vice President and Treasurer
Rich Bielen President and Chief Executive Officer
Mike Temple Vice Chairman and Chief Operating Officer
Steve Walker Executive Vice President and Chief Financial Officer
Phil Passafiume Senior Vice President and Chief Investment Officer
Call transcript
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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Protective Life Corporation 2021 Company Update Call. At this time, all participant lines are in a listen-only mode. Please be advised that today's conference will be recorded [Operator Instructions]. I would now like to hand the conference over to your host, Lance Black, Senior Vice President and Treasurer. ahead. go Please

Lance Black

Good XXXX Sarah. welcome Protective to Thank Update morning, Live Corporations Company Audio Life you, and Webcast.

today's and As Sarah Senior be Treasurer Protective serve and facilitate will said, I'm Vice Lance President Black call. as of

While we to members us our of with would team are introduce that some leadership today. settled, get I like

Executive President and and Bielen, Steve Vice Steve financial Walker, Temple Officer; Passafiume President our will Executive Chief Chief Chief Protective’s First, Passafiume, company Operating CFO, Officer; and Walker, and your will Rich on providing Phil then Officer; provide cover Mike investment covering outlook. with portfolio. and This have Mike an financial opening retail Vice Phil Rich President Officer. Chief Chief XXXX finally, President Temple, Officer, update Financial and for our Vice business our and morning, session and will our overview. After Chairman informative an our Investment Executive by Rich, you, XXXX close Bielen's Senior results we beginning agenda

I'd site our accompany is to submit currently me on email questions lance.black@protective.com. will question webcast our with a today's at being today to remarks follow submit available to end please is question. presenters lance.black@protective.com. the me available us, email discussion. We investors.protective.com. prepared to all like Web presentation answer The point to a a please of remarks Again, available your at a take you presentation there out our question, to To help at from link at

of presentation page. of browser. Once the toward required is no available a your for learned that there PDF in As download find this, I when investor.protective.com www testing you this also file bottom just

and statements which Finally, today's future events events materially expectations express and/or may includes differ from Actual expectations. results. forward these results of presentation looking

Those recently factors results risk filed please Web section of and affect refer the most information available that uncertainties subsidiary, our factors are the on primary Protective to for other more company's For the Insurance be to about our operating could reports Company. annual risks, report our future site. Life

to report Our financial statements annual XX-K. discussion also in on Please recent included non-GAAP our financial Form our in most 'XX measures. consolidated includes refer

CEO. use please discussion to to the Page statements me in materials. this I please a Rich questions presentation will For the of throughout and as emailing President of the the me complete to forward-looking a regarding refer presentation submit presentation, meeting at Bielen XX Again, any over by With lance.protective.com. turn that, reminder, Protective's

Rich Bielen

good everyone. Thanks, Lance and morning,

I just you want say to everyone. First, start, to before thank we

fine you Birmingham employees come property know, I appreciate of reaching We had Nashville area of couple some have was the our just As There and everybody us. out many storms but of tornadoes there some have is recent safe where of result employees there area, storms. in family were southeast, the and is the the up a Protective rains in number a all are and did out, in on who injuries as reaching Good were damage and checking were minor everybody no have everyone appreciate but members flooding injuries. family. news a I the we through that

And so this like really kick I off. to

crisis know year began of that All the us COVID, about a ago.

like without we a saying year to that no so talking other. where XXXX about was want it are really And And today. I and start goes

is put that our up XXth deal ingenuity to thought hit to us is philosophy it making were in this -- And many to move our now and a connected be personal we events things one And encountered because and stay management and very When our my move uncertainty there working thing to absorb we able that our allowed unexpected. you, pandemic The journey from some of of home think forward. with position as has America's culture focused protective XX% all was strong challenges I that to year on We to of out the keep culture expected. this most forward really us of the company, of sure of insurance to unexpected moving or us a ability company. a for most the could call in I we've on one employees. of the prepared of quickly. with immediately business always think the things with getting came never important have the All we it I of of strong really that And done. That and whether risk matter one about absorb was very ramp days. employees become communication on

challenged things. And three on so we early teams on, really remain focused our to

it frankly, return bulk claims and optimistic year, the move pass employees And organization. doing possible And early know of delivering making and a the absorb. managing to were going to was The to in for the I'm the offices low to of the the was enabled have June. had even lot think by environment could of the And really we communities food became you'll shown in what back end, donating and first building once fall. was that proud the to that and wasn't much serving still ultimately, that what's promises supporting the phase of June, period In our that banks ingenuity, quickly, to so I'm really resilience, sites hope, to from and last I This COVID crisis But our in is efforts, forward. we leadership of I so our community future. everyone's lot to customers, were to to core our we're of We're a core today us said here team to uncertainty. this going that that initial able the local have by focus hear the pretty we apparent March to the rate we and moved our I by light imagining wouldn't COVID for us plans have strong to on flexibility in the a teams. our begin summer. and a there's Today, our midst continue uncertainty, of

those and it's that's we continue the very and focus focus And to As to future, important we're look for scale. the us, big we scale the that I very on of efficient thing on growth organization we a think organization competitively. to forward bear, continue to very employees think it products growth can our also price that we the move efficiencies our I bring growth. in important is that so on to both the and we for

as the people. also with a number paid reminded in about very the was as in When our going country. we people I mission we're And that's that, the this looking more so your forward. focus list move that off. a about at in optimistic And a to and we has face of do that I'm unique the that as of just clear work of the really possibilities year ever numbers, protecting than am purpose. company, number talk the We to our It's pandemic, our review accomplishments. XXXX important business

little significance challenged we promises. more I we mission over $X.X the now year things have us I'd few in our people XX came our a asset trillion of the insurance shows And I'll our in million we billion to Last and shy where XX.X to the a protect that helping over years we make we you the dollars bit think remind to had in people. force. that at customers that organization number of life transaction customers. protect It's recently force. it Revolos year, Across at insurance annuity end industry. ago of when insurance term than And long $XXX one beneficiaries. we're over more divisions, like claims a While I've acquired on XXX,XXX add to in life see in grows billion paid through million protection everybody those

XX I've we're have claims those here. years of in emails that may business long so and a policies ago, or Some beneficiaries term been from purchased gotten

Importantly, had that It were $XXX one difficult customers for included during most people to in that X,XXX by claims work impact world's shows paid years. number significant COVID-XX. the over million a of our who impacted

to X,XXX employees. achieve Some over learn team hired actually our a This surprised future in that goals. our need we XXX help may be growing us and really to to our over a and investing was the testament building positions we year for last talent frankly to commitment

campaigns and businesses we committed we're others. organizations. our Through educational always, the These our fundraising frontline provide justice help social to was to foundation, offer $XXX,XXX we testament. supported more. to just XXX to and and and COVID-XX matching thought contributions, serving raised much to areas. some serve youth causes that and As I a food community to advanced employees’ ran thing contributions right banks community in We And give experience workers, relief doing

our grew it the to what year, Importantly, and when our business scale, more mission that about we're opportunity growth our it's for we people. for teams exceed points, shows the of opportunities end our data provide assets our billion. Together, by talk communities. to and and about these all billion customers, of and And $X.X the serving $XXX and really for equity the the now protection but shareholders are is grow

organization. a really we're proud the in as end, so year And of an was that XXXX

have focus to had that distribution to so We're team this And and the We're the move and the upholding our lot greatest that's focused what one institution. have into on values we're us talented more for forward. the for not remind earnings the us integrate legacy to here. growth, channels, the ability its where really fostering people XXXX move old And all customer seventh and focused at deals deal, an that only the just but new on officers outline beginning is a brought on priorities distribution the advantage not culture I the it's forward continuing only priorities acquisitions. that inclusive with are it's organization. to we talent we've everybody is getting And history. meeting the acquisitions base, integrate a a competitive new capability going a there's in and believe the CEO which the year As remaining and culture. recent members. products in I is believe corporate of we I integrating and But diverse little and talk year, a bit and empowered of while customers the every teams, our strengths, but pursuing our decades channels year our We of on first now. and broader about I continue those people and and we'll I'm serve invest of do XXX

improving We this in experience we an and distributor light Enhancing priority our occurring of all will profitability. term are over rain enable still accelerate the all headwinds when think we COVID is dealing to us us expertise we than navigate but the changes are Another operational behaviors that long industry current the earnings the that ever, the is risks, with have and last and know from our leader. And position think important we environment. frankly, of lower and recognize changed as customer of financial more environment our year.

so the customers. in to to continue know And we expectations addition employee evolve

adoption the we have our have I this And so smarter within One model. something adoption these employees environment. with we the and are that to digital, better focusing reach, important, adaptable just is continue had balancing changing business work digital decade. well place getting we're familiar then digital and priorities these that hope show I organizational starts do an something tools, quick and these digital already our last tools, us as the say that them employees building and of to we think for things we saw enablement. March allow We I'm our we employees, adopt all finding customers and to customers saw our from allows confident ways ever with respect and adapted past while customers as and human share forward. June, is and unique protection in momentum, we’d to with a the thing know move who more how frankly, resilient in than our you more faster we continue agile and pace on will this to effectiveness. goals it the and with seen but a us we've we And people. our and to many in believe through organization would year touch with I finally, a to And we this us we're focusing achieve distributors really to are or protect of have our believe But balanced in

term Our virtuous at of the core remains strategy. cycle our long

Our our opportunities. retail lines in help a create scale, provide Mike acquisitions some a relatively stable the as businesses enhance in earnings these periodically organic the retail our stream, more on and Temple provide to of business and the provide growth recent force deals seen going we've retail in growth detailed earnings later update is us while presentation.

very, DNA to on to history I'm a It's and continue acquisitions there long Acquisitions our So are our consolidating no enabled going critical industry to grow expertise. that and us future. secret compete and is to here. we're a expertise focus acquisitions our and very fundamental the to in has

history, transactions. our $X created opportunity for abundance have we've approximately an deals course of closed Over These invested billion us. XX and of the

a see earnings have on our us reach highly environment to the business acquisitions of to a growing. something is technology but been talent markets have a do we're and organization. us the business. this We term and the integrating contributes can new importantly, of prior recognize to pride ourselves segment resources history in long I you bringing long competitive, being both allowed We and These has businesses. unique that chart, do on significantly As the partner successfully good deals while believe

a going continue on And focus growth so to acquisitions we're to driver. as

but the a that's in work on is bit an the the an diligence, When in a to do done negotiating also the upfront. deal organization. a the tremendous tremendous amount at little give of work of to you deals, a look side, we of update just lot bringing When locating, wanted there's I integration. of on work acquisitions, there doing closes, what Now due amount successfully integration is just those

transaction acquisitions. I we update share the I'll that in And close so we But to year everybody and Liberty want the quick already billion billion doing closed recent So remind one. Liberty after then in doing in plus transaction $X with that a XXXX. with plus status did that integrated of with closed another back we transaction on a XXXX $X XXXX, Great Liberty, we and our most in that actually later and came West Mutual,

of is and positive on And serving transaction. already topic XX and been and And investment At be benefit who by and is of results doing or great we always May we're actually, we right we've we know distribution new within Division, activities thing, our I seen, in completed the minds this integration we've part next year, people's months expect much values opportunities deal and a those closed people through very company, complete to new to expect so. integration brings We many Asset The the sustainability. from is Protection driven, this working for community XXst some seen year. the the this as are. as retail scale, the we've delivering are diversification This financial business Revolos opportunities. beginning of

this work. sustainability so guide And helps our

our On and the sustainable in environment of energy increased home investing, our use we've renewable office.

against investments general racial renewed And this seen green we crisis you track portfolio in have an been we that Also we comments use may recently, work had forward. country. our always have to and may last social even comments investment insurance us account diversity within on with the my going a driving or organization. of focus summer focus and third light is had my and Our we've Americans. on ESG media, recently in in were regarding seeing, the bonds. diversity the of focus on diversity you believe committed prior party recent seen and summer the had events a crisis, also we've have world last through the being don't peer be Many the to And and inclusion know lens. portfolio crimes includes the in believe But continue inclusion important will Asian the in and the to of in inclusion. a to We events, events we committees review our

Alabama announced with continue high Business from in underserved partnership succeed. Diversity we the fund to focus with school connect help Bridge students to recently, them So helps of Program, and the mentors which University communities to

very think to be will this I order think help. the and on, that, it's important program we because great like in a to system, to to into they going people have bring exposure program what's get

all goals. completed [D&I] in know managers is our have You inclusive believe which important our training, now leadership advancing critically we

important. increasing that work I the that of populations. and We're XXXX think think of equity on also proud our to focus very does. funding talent our starts foundation I'm I XX% developing within recruiting top the organization. In over is for diverse the and everything organizations through went very at diversity our focused advance minority

ways then adopted identify to a difference. continue OpEx, ago corporate We guidelines. long also governance corporate governance board can and our know we And make

trainings a all throughout have number the year our for of employees. We of

and sustainability the a of also And prepare to with our It's a decades call review -- principles, opened other to to been stability. proud many to the strategy, proud and strength with I unexpected deal cross and roadmap side. that the do meets important is on that. help old, and very out is We're our have try us an for to being around many to remarks organization to of framework, we've also communications We think forward. we then always I many XXX the We're why our you of ratings. for now going come financial years my event, our come. very regularly time We're around functional we're ESG committed our long as we focus metrics, on team go

stability strength financial We're agencies, and four proud stable. our outlook we're our highly all rated and in currently so discipline. of And by that is

forward, As what we we like look see ahead. we

of pandemic we have and earnings for will obviously I record us in growth. has think future. the strong The continue XXXX, optimistic that delivering some but about we're headwinds have to a brought headwinds

balance a We high management. low portfolio, and have sheet with strong disciplined a liability very quality asset portfolio asset a product risk

Dai-ichi. financial is future we to And a about I'm Steve growth Our are to the over have and the company. of Walker we And in that, with it supportive share going strong strength our the excited parent and to robust turn review. overall,

Steve Walker

Thanks, expected Rich I our on Protective’s on in going I about plan XXXX will XXXX I'll to strong of review, financial give update will cover plan financial include mortality the and results good I results. talk some an forward. everyone. financial finally, Protective’s morning, position. to areas impact that the four Today, metrics summary financial COVID-XX And a quick This provide demonstrates plan. our and

acquisition Going acquisition respect in operating After year acquisition financial mortality. offset $XX balance mortality, XXXX on the million, our and million along excess due XXXX, tax had adjusted XXXX in one including to the a to a pandemic, for Great this which life income elevated from decrease In was mortality full income and well the favorable settlement, sheet with results. than as representing segments XXXX. the with segment, COVID annuity impacted the segments to COVID-XX as acquisitions. mortality operating $XXX West more time retail closing

from strong the $XX the at reported driven only participating negatively result in expenses. lower protection down by from mortgage XXXX lower earnings loan a record loss due and XXXX to had earnings this in by value million improved pandemic. Asset Stable here ratios slightly economic impacted income and was XXXX

decreased portfolio primarily year $XXX an commercial in these portfolio of losses We've very accounting our GAAP by of loan the on $XXX new that economic on for at Looking projections good The We history that a and as negatively due long is commercial reserves this experience impacted on credit mortgage point. million, million the loan do it the loss income having result reserves loan on come net the a allowance were standard increase of prior will implementing to CECL. the pandemic. through portfolio. not at believe low based this financials reserve the versus XXXX had

We income the portfolio, sector also fixed losses primarily higher experienced in in the elevated credit impairments bonds. energy from

Moving XX. on Slide to

The of look million plan $X shown despite you it income, million unfavorable adjusted XXXX variance favorable only Great and If Net $XXX pretax the this the favorable reinsurance time our $XX favorable. West by caused at slide operating plan was and Protective’s major driven are of up was and offset was excess operating variances transactions. income pandemic. by sheet headwinds on created The to $XX million $XXX impacting million only to Mutual unfavorable million, by Mortality income after was tax totaling million true claims Liberty final $XXX by balance on our on settlements largely COVID-XX. plan. one

The here other. other offset variances largely shown each

from primary be about on financial results. slide overall mortality XXXX. Protection COVID-XX and segment, XXX% In elevated acquisition expected for Division XXXX Now at year the update. impact This financial calls to shows actually the COVID-XX full Protective’s the for

an at Looking size an and of over average years XX,XXX was about and XX of the policy to policies. mitigate age to reserves earnings of the impact claims, higher impact the over This old, insured COVID policy average with to insured help due held policies years. Protective’s age XX average

would COVID-XX. an XXXX, not do Beyond have we of without projected have that due to than pandemic expect deaths occurred deaths would acceleration pre we lower

division result our as second partners distribution of our half sales, adapting remote retirement a experienced in at they selling Looking the the sales to products. strong of of year

below our from reduced impact GAAP XXXX mainly XXXX, Asset have due been people recession in Loss due nicely driving rebounded pandemic follow year service model our XXXX impact March scenario. the the to of our protection and of plan. sales home. staying ratios April lower at in overall positive but decline on to sales contract XXX% and investments The car industry ending well new full on were claims,

currently, granted they were billion primarily in We million at $X.X XXX the coming $XX loans XXXX the did after on energy XXXX have look you in tax our unpaid If that mortgage modifications were and impairments, $XXX of XXXX sector. to we Year are XXXX. as in March And XXX% target above well of down XXXX. XXX%. relief at available XX, pandemic remains under have million our RBC despite end our capital increased loans on the balance of loan

excess mortality in deaths in We based expected our and in XXXX impact Two trials authorization actual from include XXXX impact over that versus XXXX. million This Going there did XXXX expected from of FDA. on is vaccines from XXX,XXX Slide projected to is reduced our apply XX, final the XXX,XXX earnings was US expected Currently, complete to the pretax to $XX.X vaccines plan. continue being are mortality for impact to impact be in three COVID-XX US. weeks are phase to and use in administered the the be more XXXX. are the next several COVID-XX emergency

claims did plan coming COVID-XX daily as our and well from update US terms was you to March deaths continues our the and come significantly since have through results cases, of level. see financial December in mid-January hospitalizations vaccine COVID-XX. you elevated We So in peak spike see US in news. as down so see in our deaths the and rise just in below quarter as fourth are

we from expect flu including mask distancing. people offset of However, result a measures are taking wearing current a moderate season and some social as do

In offset for replacement years there's potential a flu for uptake. mentioned few vaccine favorable there is in season Also addition, as this the additional earlier. next I deaths been

vaccine still rollout that virus uncertain the ultimate uptake variants of percentage vaccine highly given outcome is and Of logistics, are new course present.

several significant can chart. past Protective the a the growth on this experienced that basis shows robust going on move that see across over growth next has years slide, GAAP experienced XX I'm Now, and to measures. the you this we've to

current annual and balanced earlier driven by by Assets The a recently. discussed execution growth, have we've relatively been very and transactions equity provide provide been whereby double. of more Great lines periodically robust. growth organic the Rich period at than the our acquisitions XX% is and retail growth earnings management, a and as in seen model strength stream unique This over rate growth scale West prudent and growth at opportunities not compound our Liberty grown retail of revenues and this our create expense has risk business has have enhance stable financial earnings Mutual

generation in growth acquisitions. significant this to support capital strong annual this this this If you Statutory adjusted is comes sales at X% capital foundation. of financial shown over of our growth capital capital our next deployment strong look from retail net force in period of over from seven chart, Compound chart. despite in the investing billion total period and $X.X shows acquisitions growth

that slide. capital are to time. do from well Looking and for end XX% and matched XXX% XXXX XX%, next limit RBC of capital our we this XX% to in target capital a stresses us to the debt next of demonstrates very bid years. at XX% at force over We next at risk at up a RBC the that's several XXX% We target and liabilities XXX% with debt with assets ratio our below slide risk absorb target. in chart excellent current The XXXX allows ratio Protective ended shows Protective’s liquidity limit The and to year XXXX. XXX% do management. a

liabilities on and of are next focused a flow assets liquid fully maturity liquid and until laddered with also by debt total Our [ALM] of is a program duration our not portion has matching. portfolio backed XXXX. The our Protective cash combination

of of that the a We as of years. are have all in the lot diverse sources cash that liquidity strong acquisitions operating of the our off done over a result we've very provide coming flows company force flexibility,

collateral have bank We other corporate has and term loan sufficient source, borrowing borrowings have home Protective securities. the and $X liquid include to we treasuries available credit also with US to have us. bank access short cash, significant in federal of billion to that line assets

the about final of talking slides Now to Protective. set for going I'm to pivot my financial XXXX plan

years. does several you this in the to very third plan level product a case and financial we that on granular we modeling XXXX actuarial sourced quarter, last is on this over system have projections plan, the combined If with this go in the in in are and our in have XX, level When Protective business from our capability projection The are records homed based prepare force Slide plans. summarized force retail developed using primarily policy grouping. new robust

business from projection based plan and and update We actual plan analyze projections our models. sales our New are variances and model on each forward. product going quarter level reforecast

new Looking this the at shown are slide, and reinvestment treasury rates in these flows coming are they that and in our cash we invest reinvestment plan, not assumptions on also our reinvestment rates would from from expect rate force. in to on sales

XX, projection are when standards. the and and to That was in capital of average XX was continue that with period then Our four basis projection of a that to actual time. is for period as using a we points. three treasury over term revert and XX out Long the for year level longer planning model XX remaining a current rates term of And rates. rate period at that low right and we based rules, a then in rates We that our in year reserve based over terms accounting methodology this for as the assumptions on trailing the state start six keep XXXX. were we ending current years out average August a averaging month long

each sensitive. In XXXX shows detail for in of our plan for sales, for business, cover with Temple sales billion million hit and sales. goals this we the retirement $XXX this just a more on here. protection and coming continued I'll less sales I'm in separate businesses is move focus sales interest driven the our to highlights we'll our will XXXX account less assumption XXXX, products plans our strong X% XXXX division. term $X which going retail plan sales chart protection, interest and $X.X billion Mike assumes some Now to on plan division, XXXX of by but by by to in our for from later sensitive is growth expect growth sales

back be to Asset by is $X billion balance, in protection is million notes. increasing Revolos a account billion XXXX. contracts new funding in be agreement selling This contracts to is of plan replace off rolling will this and $XXX XXXX accomplished XXXX primarily the plan $X.X million of sales, stable The XXXX. is part we by that really acquisition from the driven $XX value XXXX. early This of closed

at plan $XX XXXX $XXX tax financial looking from down million that Now The operating XXXX income is plan. million actual. GAAP our is our XXXX after

out to tax after present West onetime in XXXX. would Great did obviously to Liberty Mutual transaction, final not XXXX related $XX settlement and include be an Just which point the million

to XXXX plan earnings future did some lower We earnings years. We interest investment earnings This something in during expect material higher the our of XXXX impact rates expectations going by consolidate but mortality negatively costs impact in plan. near The provide XXXX a captives it which lower term interest rate benefits did from in continue in and XXXX be some in and did reduce by XXXX positive our pandemic reduction and environment. to that the is affected our forward. from caused XXXX funding our income lower has economic

XXXX, future does and earnings acquisition Revolos the integration million and years, at does provide costs earnings but XXXX strong in XXXX. protection, into Looking reduced plan asset it our going growth $X term about transitions due and long some XXXX very to

excess with continued growth to opportunities will of capital build meaningful billion the RBC XXXX. our potential This allow capitalize at a $X.X us acquisitions. on for XXX% above end expected of will plan We

year plan earnings to Now you our section, XXXX. show chart in model this deploying I'm for a actual, period. the including XXXX our projection just This and trend does plan show XXXX four last in XXXX excess just any over and include this not to year XXXX business actual. my also capital It includes acquisitions this does GAAP -- XXXX our going and three This model. move slide

year projection look However, compound to to over do years provide three growth at would deploy over annual we we With our the this program as over can we plan of roughly that to and the our the XX% available part were at quarterly model to next capital couple XXXX business to what take if excess overview And Temple think period. a our in the retail is forecasting lead our to results. process turn do of now Mike that, going questions I more I'm end.

Mike Temple

Steve Thanks, everyone. morning, good and

strong complements through combination M&A growth retail As our scale. goal mentioned, business to our create franchise Rich overarching is operating a a and that of

our starting our results So retail outlining this business of priorities. you our an focus to on my I'm I'll our and to business and XXXX growth update a progress with going on recap morning, then scale shift retail provide line

that. So starting drivers with and the sales growth for

year-over-year newly XXXX the channels. sales driven growth, for by plan addition of XX% distribution called acquired Our

As growth different five left the industry addition was in where added anywhere and of XX% plan over last on the channels market for down This year few growth new above came The levels. XXXX the the distribution X% the driver across we've sales chart can you that sales see segments. from a on actual XXXX XX% were the above of occurred industry despite years. strong our primary challenging XX% to

as which which then we can the premium where from side as bank well channel, channel, Ameritrade. you right benefits single excited a sell had insurance, last whole primarily. that which First, Liberty our large we've be a we transfer TD and see more was products or and is And we annuity life sell group P&C three hand executive agent Schwab associations on about, then would really acquisition. added channel, of we're a where COLI And channel channels Charles BOLI, advisory example

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strong significantly a In target, above profit new so year fact, business our the we ended year for sales results.

scale. on Moving to

for outlook important growth, continue slow for rates we actively and to it's interest the low our Given critically manage expenses. industry long that

that if at we maintain important expenses and margins competitive X% organic our products. that manage instance, to is offer below it's our growth For then to X% at level industry

track on our You progress. monitor can we see expense to in left the chart the several metrics

temporarily of chart measure. beyond. in good we've There percentage points that or some XX%. listed of efforts. ratio an were last them of progress a to them successfully strong about lower an make line as is expenses is right continue completed further years three gray the be is there. transition rep are the once lowered One But expect The as several Starting can see mention news are the this XXXX integration on hand our consolidators, with I'll the over We we to systems blue Transition shows and side. This you can capabilities achieved. elevated expense during few. conversion the active unit and operating ratio those critical. drivers X difference approximately expense costs

to employing US us So that's automation business. Like other how a space only we but in and tools M&A the we're our in transform big digital how driver businesses, we scale customer not journey. for in compete our achieve

refocusing and team to three to mentioned share of XXXX. to Notably over Birmingham, shorter term I Rich six expense Louis pandemic. will to will the we opportunities. workforce. of the our industry But improved of and of quarter higher in of turnaround By resulted year service closed customer we expand example challenges last end last priorities would scores. year this our the utilized Cincinnati as XX customers, our work retail that unique footprint. Slide is in will year, on has outcome place of A St. a our a saw and during announced summer. times it long savings this for better presents our lower our This for our costs experience. XX% XXXX. claims plans our course year, improvement AI for claims fourth lead offices the volumes area. productivity this Shifting sites, while office employees the core completed, our was transforming. lot they that us shows is have footprint customer manage For in The once virtual set and One in business take our Last

and the market influx competitors For portion private sales products, some or new traditional have challenging even management in the for divest some exit same restrict conditions players of example of asset time, significant noncore of At long In entrants. markets certain cases businesses. in low we've some seen interest equity the rates led interested particular to a business.

These fixed opportunities present with in space. has both our us this been threats. structural and particularly annuity So changes new

adapting is team the environment. our see can you So to

distribution growth year interest new our We less the channels from we in manage options our where higher expand and want to new Revolos we sales as leverage more sensitive margin business from retreated shift mix So where see competitive as distribution have areas a and this to deteriorated products, well returns our our have including perspective. acquisition. to competitors plan our retail conditions

to be to ratio West top experience priority this completed We on this this for expense that's to further a significant expect Rich said by office completing Advancing distributor year. the improve quarter to as pre plan last want And customer scheduled our about and We finally, We the that year year. in our we integration of to Great employees half of the remains summer. increase back a us. build adoption back saw falling to digital pandemic practices. second in versus bring

So each optimal we're workplace need continue of that to improve of to that return and going briefly our our can In experiences. to sales division technology office and I'm so to goals going to COVID committed our use the and to in employee combination embedding distributor in to post technology will we're balance priorities. In remote we short, that emerge want and and workers three is customer, summarize next our the office. slides,

XXXX growth insurance planning of to forecasting to Steve sales with life decline X% Protection X%. plus LIMRA a the comparison is this As we're X% Division, US a In starting for from mentioned sales year. range

plans compare overall forecast. So market favorably our to the

increased survey hand side. their they've without consumers Our actually priorities The with of demand protection to on and We higher to pandemic We're over for are saying life the maintain been that likelihood sensitive app want today our also division seeing term our increased top through has product, Since this Steve insurance time account term some first typically leadership. awareness reporting buy. running XX% in they're right maintain our come in our forecasts. often permanent with term XX to have year, And our mentioned, roughly are. this market life products XX% interest than counts less buyers want start we sales. position general app for counts above as

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and includes electronic electronic we'll to applications package our new e-signature of our invest and The and is digital promote plus business underwriting focus So Velocity platform Velocity policy voice delivery. continue in platform, which our capabilities. accelerated

Moving on next the to slide.

Our retirement division explanation. goal sales require little

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growth that industry we're to a forecast this sales decline a So XXXX essentially sales annuity adjusting flat one opportunity, to XXXX X% from and year-over-year targeting range levels. LIMRA time anywhere for X% for versus increase division. US

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in this So share to our market to next expect grow year. segment continue we

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it’s accretive next As few scale it'll bringing us be earnings ultimately talent new and and to Rich over years. mentioned the

Passafiume prospects who it the start. I'll portfolio. our to I for year, want that off integrating priority a key is successfully business to XXXX. Phil early So our while Phil? for I'm we're and you very With turn is going this by a beyond. through us that, still investment growth bullish and in walk it's to saying close strong over on XXXX to

Phil Passafiume

you for everybody Sure, greatly you, and great. We thank today. time appreciate it. Mike Thank your

your XX, general a market is a what start turn consistent that overview been Page strategy If has prudent to I many on extremely have out you we want very just over cycles. presentation with and investment that

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of securities approximately So billion result $X crisis. during XXXX, we COVID a as the in had downgraded

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a have diversification. to disciplined and approach ratings We

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to basis year's last basis last So that investment XX X for and US compare year's, is points core if ETF. which you that ETF, approximately grade points

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Let’s turn to Page XX.

mortgage looking commercial portfolio. Just at the

you at debt portfolio value average $XX.X is size marked X.XX currently side, on loan on is and see breaks table at respectively. strong down The hand $X.X The and that the left statistics XX% billion. ratio coverage a The the a basis. times could million. the very On service portfolio average overall approximately GAAP remains loan to

right type. grocery box on is drugstores retail portfolio again by focus the side could we see primarily XX% the big retailers. you On and and of hand portfolio composition stores, property

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XXX unpaid than loans in and we've during So to XXXX, once of $X.X more you representing billion imagine. had we can modified balance some touch those principal as

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really going to XXXX. as this and affected down these mortgages no we're relationship our ironically, And a So ability and monitor process and expected, review commitment back issues. to with our lot go of major touch borrowers and gave us the strengthen during trading

over will I to hand with that, So Lance Black. it

Lance Black

Thanks, me Phil. to you reach might Again, at email any such out via with lance.black@protective.com. just questions as as questions please a have, reminder

them we're kind around the compress looks come kind into pipeline on going all M&A the into start a questions one questions from private here. Everything several what to focused Rich, activity We that's and I'm have with received We've competition here gotten and of and try what I’ll like, space? from our equity to you. few of

Rich Bielen

I've overview. about Okay, well, some recently on Lance. quick talking been also give actually of kind this. panels industry I'll And a thanks,

consolidating they're and the think I at, seeing at back, So and not will things know, really scaling. really reengineering franchises ago. good first, they're of what when there they number scale, life comments is I in If that do we're number about industry. XX is what we look of companies of at happening what but my is what growth people years have really were years their looking look XX half a that I good you talk probably today this is one a remind you everybody, the

piece a of seen Blackstone off to and and obviously, which more to you've smaller So their Allstates Re. Wilton life business most selling the recently annuity now recent

on You with saw them Assurant Liberty that management was our for focus asset Mutual sell more P&C and business. that the on Preneed West, retirement own Even and the was focus transactions Great business. to a more a focus

across are the industry you of strategic board. companies the really a repositioning So seeing in

bolt-on some may For things year. have like They we to look of us, I unique look types vary XX XX opportunities also retirement would and can probably vary of that a protection. They for at different space, probably the opportunities. features. us asset we maybe some a protection with variety can space say from in

So looking we're constantly in the marketplace.

but is the it also seen, Protective? you've they about Well, we just everybody ask [APD] closed one just As extremely need active a where's Revolos year. try I and but remind we for when frankly,

competitors also on or their More the can transactions, the you at our created than our rethink there time. introduction out So recently that there some those whether of private some supply to also then we scale in seen companies find actually us want that opportunities, it's executive I if from West XX it's products, we've maybe and that in business it’s P&C blocks, in we focus to that whether can business. will three equity tried not product on pick I where we've build fits our we of the up model. retail the if opportunity. Great see accessing opportunities us. only benefits some transactions, and also before. closed will And are that pure close more think talents there look frankly, talked Revolos say just But Liberty business help were we and to the one we're XX allowed asked to also right competition distributions, blocks Everybody force me from focused just whether at having agents all distribute about last some of some it's currently competitors I our the distribution us have to or gives Mike about not but And same say and gives today not

And a but then to deals. success. term the everybody, done think So remind just in integrating to a long, programmatic on the this key we've time. really a that's getting and to we deal it's going not long way We for long continue I'll just be competitive our focus

Lance Black

rates. stress Steve, you testing question our but do we had of Can earnings also interest briefly what assumptions there? spoke rate to a you the around about for you of reinvestment, address kind

Steve Walker

interest nine run in XX required Lance, testing. and that top points to shock scenarios grade curve going the other that which company very clarify One have Lance. reinvestment some looking credit we of that found we number a the on basis on adequacy for in that current XXX and rates we our what equity regulators, part it of yield do to as of way we inverted surpluses, those is value in want Sure and that. in is rate cushions mention we we our to present we to a with looking I'll points Protective we're from curve. rate Life we the we the our run Insurance part catastrophe basis shock in also assumption to we mortality rate asset at of clarify not cash the mentioned. that through terms I hedging XXXX. as interest flow a for And and in at under the assessment post long our an And our the Other do interest top to of wanted annual scenarios did XX long forward. do severe our rates the make company of And keep each of year of crisis is that a level up in we entities is statutory years variable testing items reserves thing measure XXX large pandemic and of performs down where from I as each losses clear including use start we risk rate rate stresses for we basically Annually at forward rate, there's entities. year the years thing markets then for projection statutory our And with that in term follow how a four asset just adequacy I all testing our term plus we do any capital. do or But three then between solvency that. end own of annuities.

only that's do under provides For is that a up as points some that about the point instantaneous XX now we hedges the statutory accounting XXX result impact and our in losses -- and RBC basis move a causes up. of negative impact [BMXX], rate RBC but pop

number our worst management part do of those tests scenario normal of a that's So as but we overtime risk process. our stress

Lance Black

for the our Mike, around we term you Steve. and division. asset focus had a strategy protection long for thanks question Okay,

Mike Temple

Lance. Thanks

the start a little bit just business. APD me let about talking So by

from XX% as Steve's reported So our good earnings. as first about for APD it's you diversification of tell can Protective,

may You to a market player know estimate in not market. we're XX% we XX% top actually five We share. this have

We also demographics. have some favorable

plays auto consolidation, industry roughly XX% slowly from strength. New growing vehicles our continue see it's we And to contract which contracts been acceptance has service sold expect today approaching to XX%. competitive on to

strong future in the to business seasoned and So we're about the in a prospects for excited management committed we're for this short got We've this team business. future. place foreseeable

Lance Black

Okay. Thank something might else up question. be you, last our And shows unless this Mike.

to free lance.black@protective.com. you more any relationship. Rich anything interest? and that with general else Dai-ichi again feel to of we've we addressed had one question impact a this their us then reach if divestiture but our Janus In out have yet to haven't you, for from me specifically their around investment So

Rich Bielen

Great with to owners. but significant to they in the that on billion global incredibly it's question actually for typically supportive their dividend not support us. so it. is is transaction us we that. the $X think and first, York their West there's pay provided continue Well, call of think traveling many did represent with between to us capital great have contributor. on with the ago, of and I'm they of and They've of million now meetings to of I to obviously a that million was XX% direct Japan probably to pretty move their has XX% between Adjusting to for closed we're additional light of now on us it’s we I to the My as a will capital the COVID amazing incredibly everybody a actually the we somewhere approximately of that close they're and years They XXXX contribution, continue both about transaction, -- time. New in point, office at $XXX us this past gone grow. are Tokyo I plus goal when in that for we earnings support their forgoing long provided the been tune the tell Dai-ichi for so $XXX COVID Dai-ichi We real six annual any proof leadership transaction if and with continuing supportive affect relationship

company. in continue platform company little They they Where here want of they of for to supportive. the grow. us XX% to and stake, them of investment sense speak growth board in the for them a minority be the be the States. XXX% but for than in them different really United to want have seat, the of own less case position. I continue was a So us they looking Protective, to they have had They are that don't Janus for did to a that kind The but the

Lance Black

purposes to we everyone further that product and you I them And We questions our webcast your directly know not may there don't on Protective we would thank come today. just did -- no to have for then your the relationship that been that the us was have I that, very have We of that, investment do And strategy. not impact there's joining occurred much relative regardless really store of other own. have in for our but guess offerings participation. may customers, interest fact not Well, any in. appreciate that use in

You a Have may now great Thank you disconnect. very much. day.