Horace Mann Educators (HMN)

Heather Wietzel VP of IR
Marita Zuraitis President and CEO
Bret Conklin EVP and CFO
Mark Desrochers SVP, Head of P&C and Corporate Chief Actuary
Ryan Greenier Chief Investment Officer and SVP
Meyer Shields KBW
Gary Ransom Dowling & Partners
John Barnidge Piper Sandler
Greg Peters Raymond James
Call transcript
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Good morning, and welcome to the Horace Mann Educators Second Quarter 2022 Investor Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Heather Wietzel, VP, Investor Relations. Please go ahead.

Heather Wietzel

Thank you, and good morning, everyone. discussion second Mann's results. Horace to of quarter our Welcome supplement, earnings presentation, Investors Yesterday, website. our investor page and our the we issued on announcement, investor available copies of are Executive Executive give will formal remarks and Chief Financial call. the and today's President and Chief Zuraitis, Bret Marita Conklin, Vice on President Officer, Officer; Retirement; Matt for Property Weckenbrock Mike & have Supplemental and Greenier Group Investments. Sharpe and on Ryan us With we Benefits, and Casualty, on on Q&A, Mark on Life Desrochers

them. to Reform management's it note forward-looking cautions turn to These XXXX. statements over and and statements forward-looking today in I want our include GAAP differ of based The news any assume our obligation results available to In filings. factors, no over comparable we of I now expectations, includes our performance. measures. uncertainties that forward-looking these call are most Before in are are measures are statements the Reconciliations current Marita, presentation due variety to release described turn which we Private Actual update Act company defined release. in our I'll use and some guarantees as not that news prepared to future the SEC on a Marita. our risks Securities non-GAAP measures to investors Litigation of of may remarks, and materially

Marita Zuraitis

$X.XX full-year in guidance loss performance. anticipated night, revision performance, a second-quarter operating our core results core this made we and preannouncement better-than-anticipated Last $X.XX. of of reported to morning, minor we we Heather, everyone. the good EPS upward on range Thanks, and near breakeven due to to Based ahead a segment our to

events impact described, bottom on announcement line from preliminary was external our our the disappointing. As

sustainable we the ROE. to high double-digit goal ROE resume a of be as XXXX expect trajectory towards We our our digits single in

core million clearly worksite illustrating actions base adding value $XX.X our recent operating quarter. also new with Our in benefited division, while the our earnings the we've diversifying from to strategic in years, taken of earnings results

me each of external challenges the individually. cover Let

First, was catastrophe activity storm outsized.

for Our the losses average were quarter. XX-year second nearly double our

second XX% catastrophe is multi-faceted since five strategic catastrophe our reduce It The our full-year a we represented and ago. completed years quarter. exposures coastal about our typically load heaviest shift quarter has to of

However, in states Plains hail wind experienced Midwest second high quarter, the year's this and and unusually activity. thunderstorm

example, underwriting storm in caused believe in light breadth crossed to Minnesota communities that damage and Pennsylvania. closely. Texas severe of programs although the the were For one this issue, do we mitigation events In that the quarter, dynamic risk not an May monitor country exposure from our major and of to in the magnitude concentrations risk

Second, damage inflation continues parts injury treatments. higher costs inflation as P&C well physical pricing to labor costs driving towards of rising increased because of severe more due are resolution trends the impact is and accidents and claims rates Industry-wide sector. as claim to higher utilization timing, significantly medical

in underwriting loss described quarters, we've and proactively needed have we costs. been rate recent address rising actions As where to adding taking

trends. auto premiums. our XXXX, almost auto policies. of as through The to address Keep are in the high representing current XX% XXXX low we single and rate is range the of mind, market plan reflects will in states remainder in adjust into X-month evolving our and Our XX% of increases needed plan double-digit rate dynamic to well policies

coverage inflation trends premiums and delays. risen accident largely quarter, strategy quarter systemic pandemic-related it average open adjustments because years from are is due because that are remain also this year's became auto, also our that reserves clear values. recent X% affecting over have last auto proactive almost strengthening industry-wide property second We claims Like to these to pricing of

Said lastly, to maintain step the additional and remarks. as DAC I adjust And weather overall note later positioning rising impact another XX needed environment in equity in for the the on property average mid-teens way, that back some unfavorable in DAC track underwriting of Bret unlocking to Given unlocking. But the activity over months. record. our the portfolio has the will detail will pricing briefly to want we've we a to been rising filings, weakness historically his markets to investment and for premiums that will profitable, been XX expect level rate discuss our led rate support that we time. book to next

several the factors next to economic actions Fed We taking market benefit years volatility. the from is and other substantially expect to over address the inflation behind the equity

objectives confident our long-term our position high-level an our market in a up growth a product in outlook. goal the rate, ever temporarily and long-term over ago. rate new implemented as acquisition strategy PDI culminated of offerings, for quarter infrastructure, to XX% shareholder and our to Madison basis progress we customers XXX the plus For of To external our of educator is nearly ourselves to double-digit to money to our points share second been of our care portfolio of To bring ROE in portfolio a the January. example, long-term strengthen as from year modernize core Life transformational impact X.X%, value, accelerated market distribution, floating our our was multi-year remain expanded sustained although view, of We back enhance National this and taking our by phase interrupted achieve towards as in to events. has committed a

focused have our into or products the individually with and they As the needs provide our respond potential Under we whether educators need, divisions, Mann have educators school we districts. to to maximize to the capability retail purchased of to now their the employer. and Horace umbrella, through operations a two worksite, result, aligned

to as for progress up beginning So we're to the segment turn over the implement initiatives strategic earnings in momentum prior continue and in were we growth XX% see me Worksite with let we seeing division metrics. year, worksite. Core each sales continued

for line, pre-pandemic quarter move we our second Madison which National added that towards of million sales, last XX% expectations this year, was quarterly over in acquisition business. year's with steadily the benefits Second supplemental as back voluntary contributed consistent $X.X quarter employer-sponsored The sales grew with levels.

do fluctuate business, across optimistic It's two early As in by product leveraging work, by year acquired Mann third educators to stronger districts school divisions. of growth fourth, have we're in we more an good the supplemental benefit than worksite out, quarter this particularly second for the our to our typical companies. providing the products Horace benefits and employer-sponsored leverage generally second aside, group with enthusiasm first districts. and further their marketing looking quarters and of of employees. timing retail needs And preliminary and We aligning of and quarter, of complementary our opportunity with encouraged the the about sales expanded strength to meet further reinforcement remain as interested geographic the We of the future district about relationships businesses. the comprehensive

we're side each On house, seeing progress the our priorities. the steady growth of of four strategic retail in

the typically of auto even similar the the since May year First, as we've to auto to school with the highest demand come fall with sales out June auto pre-pandemic was stronger off slowly sales was and and industry line, trail April was access for pandemic May, sales we're of disruption, best returning as greater began. educators from levels. month even down, start though since sales to the XXXX. April winds growing In than the pandemic

with auto insurance, are multiline but That's include to often carrier, life our savings customers a are relationships products. why insurance, As an policy geographies appropriately. grow we start auto priced we with with and and property leading where

half bodes successful With accelerating cross-selling on The overall the is unmet needs. level strength well to a particularly and of It's out Through a to acted consistently annually, has conversations retention. care this of of grown year. customer agents sales of to on XXX% XXX,XXX make these center our new second and educator the structured execute those wanted our the over priority we our in monoline customers. incoming interactions customer coming identified certain calls for our of approach, first

build a run with the forward. to lot on educators is to manner distribution operations that to capabilities efficiently evolution will going work and is of a identification they our growth our in be third multichannel focus prefer. the our ensure The continue priority household to year, This support and capabilities digital connect us infrastructure to integral

we center of the must decision our discussions, and maintain interaction. service do. training, distinctive educator in we facilitate the importantly, every We mindset most at internal keeping everything every and and Finally recognition around

strategies as nearly the education ongoing Informing service our Of the the out. to team each course, to clearly reliable X and as preferences after across claims customers our business, research is of prompt, the educators, our propensities there storm are examples but employ work better storm. market that process P&C districts at them. all quarter well of understand of the the nation's these buying million in-depth step in and They compassionate, delivered second of stands the

existing We processes. market add build knowledge sales education our and continue to our learnings those into

engage agents our upcoming are educators back-to-school season. the ahead, Looking to excited during with

environment Likewise, to us. planning. more personal focus the financial schools educators we to are have the pandemic able behind academics cautiously dynamic, and their Although to being on about more of optimistic worst is the time allocate with lives

virtual traditional We utilizing strengths the shareholder scheduling our remains two journey, years. both economic skills and cycles of we driving over are a value seeing meetings, our varying learned Throughout through positive signs past in-person growth the events terms and in priority.

our detail, discuss will capital-generating more strong. in Bret As remains capacity

educators, In the shareholders with $XX and shares, building will turn we programs, enrolling of and from first increases for used projects, to to highest solutions open our authorization do sponsoring months Bret. strategy. community year, over that partner of work best, This education, annual is a to classroom to day. is you. the which repurchase. the educational the activity in continue million since In every be Today, relationships. Thank we We benefit our year, to closing, to with And seven providing educators in repurchase confidence XXXX, there there on school capital as XXXX, million share remaining dividend I'll challenges over to XXXX level $XX opportunistic schools our as the and face board support return almost repurchase XXX,XXX provide that, the May. financial call new help is to testament the participants we what a

Bret Conklin

Based loss per good our the EPS core updated came slightly guidance share. in our ahead Marita, morning, $X.XX earnings share. we on core our $X.XX results, $X.XX External quarter, diluted with per the on events to impact a full of although range preannounced Thanks, diluted XXXX year to significant and everyone. at had

million. into as be our remarks. and detail through a let ROE for digits outlook We by go expect later were of we significantly results sustainable a Casualty run high & in cat trajectory segment toward considerations first, Property ROE. inflation briefly But core the I'll XXXX on loss my more segment. me $XX.X with resume affected and in our results double-digit single each losses of the guidance to the goal

In impacts strengthen to quarter addition X.X% for premiums new written policy initial written increase counts and flat up for to policies leading continue the the of pricing the were rise, actions, continue retention sales to were average of and should premiums Total X.X% to rate improve. auto for slightly and property. up as relatively our

We are XXXX. earned this looking premiums in later in forward to year this momentum reflected total seeing or early

the quarter of to key underwriting results. turn let's So second the drivers

our First, million. second to XX million our announcement, for year-to-date points well July losses bringing $XX and the were above combined $XX contributing of catastrophe quarter to line XX-year in losses, the $XX.X losses with cat XXth cat ratio, million, average

wind the the loss in thunderstorm, contributed Our Plains auto last concentrated ratio as PCS from hail states. point to by events losses of events, quarter, the primarily and events Because in more than about year. severe XX losses cat designated one Midwest inhale the cats were

for losses. also guidance. would XX-year second losses and contribute will see second-half XXXX outsized of did cat note we from cat July. Our for cat This million updated is line the guidance average with million in that not $XX previous between in half losses unchanged $XX assumes pretax, our I

impacts and towards severe of with inflation recent is second trends also year. inflation. more The factors, auto we've earlier loss by treatments. Over accidents late of in line driver medical and other driven XXXX the industry seen loss experience, we utilization including higher cost industry months, this In severity increased additional began addressing

recent address these As to to despite near higher prices pre-pandemic worth in we that months. miles Marita gas It's and changes noted, implement continue rate levels driven trends. noting underwriting other are

this investment In also recent of that accident Third, we not effect historic for the $XX the portfolio because returns. million has from annual $XX had inflationary LP been of results, quarterly partnership delays. If you've LP limited the quarter, be have claims average year pandemic-related P&C P&C of effect recognized settlement million, reserves segment of last net there earnings on year's can was swung earnings as the segment level an level to the accident year's systemic closed last as by below the would segment years been returns, assume from seen outsized income we breakeven strengthening trends but $X by pretax. in volatile. our the million around prior second period-to-period

Our million full-year as core P&C earnings guidance the we July. segment $XX said for for million, to $XX is in

were fees Life while core on Core to earnings equity as higher up unlocking market to were up and Retirement. lower declines X.X%, Turning earnings XX.X%. as led adjusted accounts. asset-based and charges The DAC well

related account of level we than the fund partial DAC unlocking there on a lower the future originally performance. However, as was separate offset was anticipated to assumption

year's expectations. spread and Life achieve at our threshold net costs in mortality to reflecting our comfortably Life our last investment strong return to quarter. the steady double-digit a year. were and market While consistent returns. rising impacting below quarter continued spread XXX sequentially, in a above below up in a declines although a with full-year was pace, slightly quarter remained fixed annuity our second sales Retirement are year equity. both the on strong is Persistency line continued perform bps business operationally, from equity last The The interest ago, outlook,

fund solid segment. long-term another fee-based platform Retirement the mutual this had we also creates quarter believe We opportunity Advantage, for for business that

level slightly the full-year investment XXX outlook the segment be bps. XXXX for million net updated L&R million $XX to of the Our $XX of the below will for earnings core spread anticipates full-year

While are first and charges the with declines of expectations, reflects expected outlook consistent be costs the half also market effect DAC actuarial unlocking mortality to and revised equity on fees.

segment. Group let Now, me Benefits supplemental and to turn

are Overall, brings. results You'll comparisons recall well, added the that Xst useful. about to effective performing is and January this it performance this less its XXXX were business some the National's potential excited we of makes earnings of year, Madison in which diversification

further. products contract see segment this segment, as $XX.X and quarter, profit for over employer-sponsored charges bps rise with lines. to XX% National's voluntary earnings And income quarter with second of this It's supplemental Net Core which would million. the in XXXX. book up yield than very products and portfolio. $X.X CML X% in of million, million yield were that portfolio for GAAP our premiums already earnings versus million, integration, funded, were XX%. million of second quarter by the core of we've reflected of line increased full of Sales January are Sales seamless effective adjusted employer-sponsored persistency been Amortization $X million portfolio an XX% products addition second Madison another XX%. the up the employer-sponsored nearly investment year LP Madison remaining For the combination prior earned commitments XXX for our represented this under core more strong added expect quarter. Xst. the at intangible $XX.X a $X.X to of increase accounting voluntary and National with reduced pretax earnings this segment purchase and for for the assets $X.X product The expectations in we second margin were pretax by reflects

expected XX% assumes to share after million assets Our products about the move about year. XX% full-year full-year to $XX levels, claims intangible or and be for Amortization utilization closer is leading benefit $X.XX products. voluntary of employer-paid outlook for of ratios for per approximately pre-pandemic will tax to

Before the give to LDTI update guidance. new investments, I I turn to an accounting want on

no for or capital statutory are cash long-term earnings, statutory the required does them. the pay standard of structure As to our on year-end, earnings economics, our the of it we None or or impact flow. Furthermore, we not or underlying what in product maintain has mentioned the customers, we past future impact at or amount purposes. products or to educator regulatory ultimately either claims changes they change us the pay

reviewed X/X/XXXX.The reserves effective reserves we on areas. of impact and GAAP However, underlying will be rates. it guidance date in using to discount as we for fall transition largely policy of When those to be be current book adopt does the standard reported applying businesses, January transition the the require cash Xst, will assumptions, three XXXX, the value flow revalued updated and impacted

these First, to future liability Number a rate liability rate shareholders' question There portion have due continue for we by is after recent to be X/X/XXXX, of effect Also, using discount a to reduced benefits in an market $XXX called excludes we rate. that adjusted to that no interest that equity equity will adjustments million unrealized new This two, the LDTI, due of in of impact we when increase shareholders' date. on the the transition the the we to for discount our that increases thirdly, of revaluing to the adjustments to material an will is changes discount of relevant largely In policy included provide recouped equity million. investor summarizes $XXX amount a the adopting impact benefits. plan And appear your gains. the The make It well due of expect table be benefit largely assumptions. rate elimination to that in risk includes shadow and DAC Monday. presentation for the total, the reserves appendix assumption as as as to XX-Q areas reference. be impact adjustment. file will

annualized average returns, in managed expectations. on X% given with updates of were our investment looking performance We ahead our return strong of a track consolidated right but continue and our income which the volatility this on LDTI portfolio impacts work range. income segments, aspects market I've various will year. net was investment LP historic offer the XX.X%, on the later returns at on further implementation of mentioned the for portfolio, and are

$X.XX consideration, guided portfolio the funds core average million reflects of we LP to range a equity losses. balances to expected pressures. of be XXXX portfolio years $XXX half. are guidance LPs to is to XXXX's the organization, end in all achieving the from managed presentation so to $X.XX. fixed investment efforts $XXX contain from has of the LP because segment's pressure. money adjustment year over returns I at earnings presentation upward most million. portfolio that have core portfolio cat historical positioned able core core take because segment with below segments. second of release are the We our factors and to exposure the distributed last withstanding investor characteristics, stronger for lower mentioned between declines, into rates. to largely XX%. while segment EPS unfavorable of volatility total remarks. returns We've elevated portion modest more supplement to we while how QX likely that over our well be to The educators under equity related in the and earnings disclosures now the effectively for for comparison The illustrate in of past the the external continue made on This portfolio the the equity-like take Due to in market the high-quality see investor When LP is still outsized the when made serve each added opportunities back, some exposure of is new several to Stepping portfolio and income P&C low Mann The the advantage guidance of portfolio to my diverse to strong net for markets the are expect year to to now income a and add However, more Horace

view fundamentally our long-term unchanged. of potential Our remains

ROEs target term. average to long the and double-digit EPS XX% sustained continue over annual We growth

shareholder million We in to we what annually pay capital expect excess at in dividends. generate to above $XX continue least

million to strong priority growth, to shares average $XX.XX Since committed returns of used the May. stock opportunistically and million our been start $XX providing of board price at of an the authorization XXXX. While XXXX, We almost in transaction has since activity its continue a will we XXX,XXX be highest supported to repurchase shareholders. at National the to repurchase we our closed new by from $XX is are Madison

dividends I'll more than to board paid of pay you. in March, the in million shareholder with dividends, to second in year. reflecting X.X% the million the Heather. half have it turn $XX $XX declared by that, cash We and expect in And back approximately Thank increase the another

Heather Wietzel

Thank questions. we're you. Operator, ready for


today ahead. go will be from [Operator Instructions] from And the KBW. Shields Please Meyer first question

Meyer Shields

Thank average I if hope ratio One, a sort I math don't that's seeing brief this catastrophe well. you. make that sense at to response it rather of reflect above running rate guess, and But hot Good inflation yet. Wouldn't sorry, in than one not think morning. I line? anticipate - quite is to as question. loss we're second-half levels mathematical a we're

Marita Zuraitis

looking look there, And at cat every the do recent XX-year you a X- most property a mean per from at increased has we claim perspective, plan averages. year whether level and year that higher. We

take consideration things of of estimation would supply the So some we chain, material increased into that an for example, for costs, anticipated for we example.

that for and Remember about the the to planning saw in see our the our pretty coming our there our for we think we that with small need that quarter of XX-year trends do second quarter biggest the continue year, for the But second is So the for will you double when what this it. nearly be number small. put numbers have included would many our get longer us, But second us. would would a next extent to that by year plan be tell far reflect when quarter trends Obviously, year full Sure. be that. average we those quarter together to originally, it cat. tends

would if was it first would a to smaller the the half. number creep, be it was that on So extent there a it much be than

Bret Conklin

to is to just what Yes, just This Marita Bret, shared. add Meyer.

half my $XX $XX cat planned I million. remarks, our think about being to in second I million talked

July. that bucks. anything XX% out And prepared So remarks of a couple my just didn't a million throwing we it's in also I outsized in increase, see mentioned

Marita Zuraitis

a comment, his the to steal but i.e., maybe bit, of need are I But in. seeing so has some Mark we materials And little thunder, I'll actual too, would of Yes. off come we level cost add won't a probably and lumber.

it not clippy So was it the maybe in be as half. first might as

Mark Desrochers

Yes. changes perspective just of say in us example, and lumber, terms gives the seeing in. is going what for I that I was of some in that like the the year. thought second be half over of going had when year, put inflationary forth for original plans quite is the what cat trend our trend This the Mark. to to to jump would we're in our originally the plan things we we similar

Meyer Shields

Okay. I very unrelated helpful. No, Ryan. all that's Completely question, guess, for

kind a the lower As impact into period that move rates, alternative of how interest investments? higher we to - I'm of sorry, does allocation

Ryan Greenier

the Thanks limited about portfolio. AAA, And we price commercial floating higher group segments. is a have originations that But retirement, well credit rates Those primarily the how is in and moves new for of you strategy. generate for if little put improvement portfolio interest impacts of supplemental, the to that, will, Marita rates that of I are portfolio Ryan. million her funds widening impact AA as CLOs, a in a the return reprice, $XX that said the at think XXX funds. life loans. sizable up. bit allocation, bode typically of that high benefit will you digits question, in see on in pretax rates a move allocation rate. they primarily the for That's could The us. for Meyer. of in us, a in as XX% private it rate. as higher those the mortgage a to To and for Higher is remarks, biggest basis those more high-grade, And rate within perspective, This loans on is about When core and private single interest environment point partnership about floaters XX% credit,

Bret Conklin

This basically class. LP that on Meyer. of and that would kind of be we're June, comfortable around yet. but the of about. X% shared that's X% everyone I the would the to allocation talked we level Bret. add And our quite to the that we're be is that would that and portfolio CMLs with we're at total also We not about have that level with allocation as Yes, asset CMLs XX%,

So to I wanted just add that.

Meyer Shields

That's you Okay. so perfect. Thank much.


next come Ransom the & go Gary with Please will And question Dowling Partners. ahead. from

Gary Ransom

to night and I wonder property. morning. realize that was good wondering I wanted told us us I it manifested could was X you guess you last ask didn't the auto. understand XX about favorable When if development in it Yes, X, over how But that really adverse I until in was help you something the then that of course the in second contributed damage physical the the the of quarter, side? any more first on changes Obviously, particularly and quarter. it saw describe quarter. you you maybe in have second delays you've saw and note in I if might could what seen subro

Bret Conklin

This Gary. Sure, is Bret.

we line. right, the tune favorable the were you that they you specifically noted reputation and reserve we loss conservative at And Mann. as some would different by follow prior did we've a in heavier year, say, offset that on BI is releases last in homeowners, set levels. than years, X-plus I we're the the level, up than additional And And million. things those so. not for years prepared obviously, in comments. settle the you remarks to when Horace property it, it those a 'XX second maintaining actually how think Let and were these up, aware did two well to anticipate vast the we we've our accident for you're of if certainly it others them open $XX long-standing say, they not last current the would reserving I coming But development were developing that and years And conservative to that I me the where that. even issue start, and And wants in looking no are separate probably related seeing with was and obviously related think auto and they I where, favorable thing would pay new Mark strengthen pressures I altogether, were to majority in about think quarter, when any obviously, say a obviously, 'XX the of That's a inflationary go if in reserves mainly claims to had had said, yes, trend. claims through that

felt do. thing we prudent So the just to

there. set half to you're strengthening at and well don't quarter, levels. if Mark, of so same did the upper maintain add let range, that second wanted I we reserves that we in know anything us think that basically you basically we're I the those the aware,

Mark Desrochers

I return I of mean I was a key is Bret mean many pandemic, during in the what seeing some involved the receiving in things like treatment, have levels involvement. where see think No. part of lot and that. through, a to I those think claims packages you're I think slowdown open, higher in industry we've there all of that points. And treatment, hit finally much starting the seeing seen, now older come attorney demand that is we're the on more you're are these increased

little of and extent, manifestation to I a think we've second why more so in it some that. acknowledging recognizing see the the first had it quarter but this bit of probably quarter started that's kind to in

Gary Ransom

there - I about nothing the damage. damage So was significant ask physical physical about I Is side? correct on going am to

Mark Desrochers


happening - but getting physical a you it, the that's that's asked with and it. the damage obviously, in still the are anticipate sub, getting really side, reserve is a slower, bit what's We still development. factor the On not about subrogation when little we

Gary Ransom

on don't and across sounds you're are that yes, yet industry universal it. with I interesting It's because the reported though it's are have all - saying, so a far, effect the Okay. a And I experiencing differences companies even the little what only see everybody some it understand like checkered. bit - just

any don't So in widespread that the I context, you're seem I certain view environmental don't have do you how know, in seeing? Does certain it is know board? what it Or or coming perhaps states of regions? across

Marita Zuraitis

Mark. go - mean I ahead,

Mark Desrochers

in just We to close percentage this claims When terms I the it the their what I'm of environmental. sorry, we in look of to pretty of an is going side. of key Marita, still are kind extent, say, rates see liability patterns peers of the was open. in slowdown think at I similar some

macro believe of And what a most seeing everybody to experiencing so is to I that extent. is we're some effect have that

Gary Ransom


I to describe start year? little But marketing share I too of mentioned little new any school teachers, getting early the coming is normal to was everything you there's I with on. a it's back you the if activity up, bit subject know to just If going you're could of that or could metrics that think with you're really doing. the Okay. change Maybe anything suggest upcoming year a to us you wondering the kind to I and the have

Marita Zuraitis

as maybe for and where when have. for that as for at script Yes, pattern, similar what are they July we teachers, our that made. remarks to our I'd script, July seeing seeing of we early it in, on that. I appointments We small than put July, to they've like momentum a following ramped mean our pandemic, in you rallies track customers being absolutely. it's said We of look and we're back tends keep sure, the back-to-school the and pretty I of would base activity. on agents this a And they to things to have like well. can back-to-school some that learned try our is, And activity opportunity up there, some we in keep leads. bit vacation continued track us, in we're about what and give time the with know touch and that quite levels during where our that agents get good say, of we're to for be a are holding had strong. the We those pre-pandemic to we use looks is And our long tell mean may and more But activity. little I imagine we've good feel in our you is back-to-school all a salespeople time. color we of more you have month, July, look July pulled the we numbers quiet seminars to

So are we all of that direction. pretty all metrics I the would pointing good a say follow in

Gary Ransom

in unfold is guess might that sales, it next year And maybe about how I rates about is businesses to - this new I'm in - think we growth - it's when and trying I those And the year think what's we can guess perhaps a versus and the What much into trying third think change what - happened? and expect growth quarter. ago. about just and actually to happening how actually happening has fourth now was how much

Marita Zuraitis

to opened when us we us that did during that looks discussions a are the and are consumed lot environment that in about what supplemental momentum bond Retirement worksite the at see and product it closed, in good. are, so hybrid there. numbers, navigating other a access only those can the retirement look to that time parking always sales more during think much do Not doing in more world our do settled the we what of historically engaging quite but interest excited I'd food we to when would pandemic what a can and not educators works use down used allowed combine and mean, effect even I we if when use Zoom, change. about us. good it of being some pandemic-related have cross-sell other them and do environment really us. little I normally our as efficiency certainly get in trajectory. able significantly lots has way drove different we work take of around, and is with that to its did. pandemic mean, that in between new I did by when bit majority with you retirement. back seems being People not we be pandemic. what but schools you the distracted. and engaging issues as The us the conversations good. allowed Well, we for having and is the magnifying a I with We're year, behind The for things trucks a of environment. open, trying the up, students is They're it Take the say a mean We we this there's the all retail to that numbers at combine excited least time work tools and that more think site

Gary Ransom

all for That's commentary. good you Thank that.


from John will Barnidge from Please Piper And ahead. question the next Sandler. go come

John Barnidge

you assumptions charge an you talk very assumption first assumptions improvement much. that's experience Individual about My maybe and Life life change. question, was to go a actuarial Thank Can then mortality improvement earnings another reduced and It and life assumed forward. versus lapse experience? maybe provider lapse mortality related versus embedded reported for

Bret Conklin

life we Yes, John, start market. this if is or but sell referring on don't to that is I believe you're can wants the Bret. that product Mike and I carrier chime to even a in,

maybe there some at confusion pronouncement new to So specificity relate I the think of product does the that hand. could unique accounting versus be the

So another comment I up and assumptions. regular can't Obviously, our sit a we assumptions on on here company's basis. true

when customers comment But or sticky We as in it we've commented our haven't In that's any rates the in we're I on dramatic usually Mann. Horace think changes seen crisis. I the markets financial our can are past, don't, to lapse whether persistency relates aren't. and all mass the

John Barnidge

appreciate pricing around I maybe believe. I mix premiums, product program. that the XX% around And clarify a question difference. touching the auto of Bret,

- see would the in that seeing maybe you that that geographies out, areas rate? XX% can rating that aren't eventually remaining the Now Or pushed is it's time frame about XX%? being talk

Marita Zuraitis

take and that ahead one. go can you Mark,

Mark Desrochers

that rate obviously California. isn't Yes. The most seeing is significant area

been next think lot that filing published couple I going for one very We the several filing do be anticipate would we say last on given what's weeks going Obviously, recently we what's have other That company that of challenge. companies. on the in California in environment in to of in of XX% the I we represents days, a there. our the of weeks. a about last there's couple there, in our making a premium. anticipate made within have a the

I the in partner we have particular agency don't business we then luxury, to carriers we growth our restrict of to of the may geography. we get rate need that able that with business the be to we think, ultimately through general new However, need, And place when the necessary. if some partnerships other have

Marita Zuraitis

And need point. Mark But rate in rate. put if need, we the need push these that Mark. places hard. with we on our we a right, able restriction that in I'd not not get mean that carrier cover that's place growth business we that to new that need we need business say profitable to another that about This it rate restrict Yes, time, more this feel extent the writing might book, would that these in we We'll need said, to to growth. good rated. as trends right? out. rate, I start works over trends increases at be continue see that book and and business that and we're new not being we're is others all the how of we work educators, market A homogeneous that are. comfortable the California the of Marita. appropriately to may this the the able us of a we in at that niche, for business. But point. We're we'll the majority state, with business and its mean auto We're rate vegetated majority more We also really getting of we

John Barnidge

you your premium filing XX% - California you California XX% of Mark, company were about? that in Just Is rate represents that talking to clarify, what said premiums. of

Mark Desrochers

a company, California we That's is made the the company. days underwriting last few within correct. the One XX%. of two in filing anticipate the next similar and we We in premiums, weeks of XX% the initial other XX% and different have of the companies is premium California on few the California. other filing first about the

John Barnidge

Thank you Best very Great. much. of luck.

Marita Zuraitis

you. Appreciate Thank question. the


James. The ahead. from go Peters Greg next Raymond from question Please is

Greg Peters

morning. Good

premium the the the price of on follow-up through coming a months? see home do Just Approximately auto in Forma in you how XX pricing Pro next way much over to pipeline increase the XX question. and

Marita Zuraitis

Mark. you can Yes, ahead, go

Mark Desrochers


double-digit, the we the and would point, that other at quarters. latter will said the are that we think that get it, in of much point, talked how next this when going going in, just at about you auto or When California XX% on and what next And And side, that high a of at across in auto. as premium of in half we originally remember single call, So earn over anticipate now market rate we if system as is to fourth and are change. rates lot increase part in rate have to the quarter the that a year. these earn depend of about the couple year what will get we have expected on the we digit, half across into of about early in, we mid-single-digit that you to in rates half talked low the

As XXXX. a we've earnings increased that that to of number, out bit more mid-part the that pushes earlier little into

to We average and On the in card. we jump premiums past weather, side, year so the and anticipated this need ex-cat view think taking aggressive on talked the impact good of it in of script, we little low take property our up with on profitability approach be once we that to the weather. because feel what increases But digits. more overall through side the double almost we've a inflation to native seen of sort increased have two long-term the we our X%. the and the inflation rate we've continuing address on what given over issues really about I that about helped rate We've seen combination a been the address with inflation more increases and taken we had inflation

months, starting why next more XX property of push that's on so side. we And premium overall that XX mid-teens level the over to towards anticipate the to change

Greg Peters

has I so market answered. pivot with for guess I were challenge inflation, and issue. just the macro just companies retention labor become that to a questions going to Okay. other many broader tight I'm an A of retention, the employee lot had

there could seeing a the with give and you going your producer been or same also back agency Or same channel. employees levels cetera? maybe levels, change, not company step on Is Marita, it on retention internally has us retention producer some your So what's within but still the only perspective historical? of et

Marita Zuraitis


Mann think say it's retention Horace not Mann is But great but I People mission insulated our Horace because attracted vision, I Mann we at points our customers to record question. to key a one know know sound most a set And like that set value one and stay when of and Horace and immune. of deserved to proposition. are proposition. You I attraction planet, and come value of the on serve I the broken our the mission, people

to but not our sure. And our across than I peer stats that the the from see see open People set different at strong. retention proud And look regard. of I tide companies these But retention is stats is immune for be a in the what when bucking I'm position there. trends tends days. we're in little So we our we're make you quite and think a out we choices seen past, the bit count our little higher what across the U.S., have that

numbers I beginning agent to And trend are Our attract on we decent. numbers recruiting excited the our last to are agents mentioned about We're as new ability proposition. retention the think agent to up. our well, recently, also call value this

are and open imagine higher those to can agents of that difficult as kind pandemic-related see starting We're up. how well. we go now much beginning to as our access as during producers, and is You we're see a beginning see that back environment, don't licensed to numbers

the not retention hearing see immune, and our there numbers trends, seeing but in of insulated clearly, stack I'd marketplace. again, against we up the but what out most So we're

Greg Peters

Thank it. detail. the for you Got


this Ladies and Wietzel over turn I session. gentlemen, for Heather to concludes the to question-and-answer conference would closing our you. back remarks. like Thank any

Heather Wietzel

just or for also If our available conjunction today. obviously, firms out. meeting of be any and there's know month will let everyone, all feel free us in you, the I with joining next reach questions, five sell-side covering follow-up Thank to I'll next today we week. over two. with to investors be wanted everyone

with all out, dealing some that's with be big of to - free as make you're - have do feel along conference we in to at we many one peers, you've just figure KBW out. So September, got I know anybody events. our will we'll reach the highlight, of the however,

time. to and talking thank to forward look I for you So your folks


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

may You disconnect. now