CNO - Earnings call transcript Q2 2021 | CNO Financial Group, Inc.

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Operator

Good day and thank you for standing by. Welcome to the CNO Financial Group Second Quarter 2021 Earnings Call. All participants are in a listen-only mode. After the speakers presentation, there will be a question-and-answer session. [Operator Instructions] I will now hand the conference over to Jennifer Childe, Vice President of Investor Relations. ahead. go Please

Jennifer Childe

Bhojwani, Good us operator. earnings thank all from you call. McDonough, and Thank Financial Chief CNO morning Financial joining Officer. Gary remarks include on presentation XXXX Executive Group's for Officer; Today's Paul you, will and Chief second conference quarter

available presentation, we leaders have and question other also the the answer Following business will for period.

of will can our Form contained in the release, you obtain During morning's release also information Media at presentation this our in yesterday's available Investors website to and section conference cnoinc.com. this in a be referring was filed yesterday. call section visiting the we website by is X-K press of the

XX-Q posted our expect website file We X. on and to on Form our August or before

non-GAAP made forward-looking of you'll which non-GAAP to a statements statements. the materially between the will most to subject to comparisons XXXX. to quarter a Today's second which directly factors, I'll any it different by contain today unless performance that, XXXX be results turn of the any presentations, in be that measures throughout over referring are Gary. than of reconciliation measures making a make you GAAP measures, the to number we measures, corresponding we forward-looking should comparable to presentations cause not specified remind may otherwise and actual second considered and will the appendix be contemplated be me find comparisons GAAP the quarter changes those And Let number with

Gary Bhojwani

and us. morning thank everyone joining for Good you

growth level. over pre-pandemic levels XXXX activity of both over second areas. a significant share XX% remains the earnings XX% items Sales XX% in was we X, the represents strong quarter growth XX% to up we Total or Slide Life Turning have operating which excluding relative per reported prior of XXXX to of and up periods. Health period $X.XX, NAP and and number exceeded in

activity. remain ongoing underlying solid excluding from boost in and collections Premium which our deferral of medical repurchase expected. benefited COVID health well results margins our performance strong as investment share alternative Our also performed care impacts margins continued

liquidity cash $XXX We holding also to remain the ratio quarter company the and in dividend. returning combination million of and RBC conservatively shareholders and capital XXX% at $XXX of Our while ended a with through share repurchases positioned. million an

wealthier profitably, middle-income priorities, We strategic right implementing strategic services, transformation to the continue market January execute the we products to younger and and in our specifically deploying initiated business use. within to our excess highest and against launching well expanding that consumers XXXX, growing successfully capital new slightly to the best its

fueled X%. growth Turning in were $XX in quarter accounts, for This and strong, investment field grew Overall broker to agent fueled party of X inclusion advisor instituted. up million, channels. in were and results. advisory up reflecting third and which as continued X, client assets appreciation. net registered restrictions solid collected remained X reflected base XX%, premiums year-over-year by sales prior up up of life NAP and within year-over-year, to were the the our Life persistency reflects Scorecard, year-over-year. grew XX% to Total assets full pandemic, prior sales premiums client in home premiums. premiums customer and continued of asset collected and were Supplement market was Sequentially period up up our collected annuity Medicare both new year-over-year up Life to health to case of were quarter offset pandemic Client our the by XXXX sales and as X%. will expected XX% second at DirectPath over were $X.X our the Annuity value direct relative X%, was dealer first when the all revenue the growth stay lower our inflows first fee and almost to quarters metrics Growth XX% consecutive health XX% of growth which the billion brokerage scorecard momentum consumer Slide by exclusive

to on Consumer Slide Turning our Division X.

leverage sales We program. continue to our cross-channel

the both and rates, period our sales hybrid sales product Our which Direct period. were Life were climbed up of enable XX% through the supported costs over XXXX. same results significant virtual to engagement model quarter and record reflecting supplemental Leads XXXX sales from X% field prior the Within care in of service with and this and sales in agents sold prior over were line lead year-over-year and consecutive of field life and XX% total the production to sales life direct health, the XXXX. up improvements our saw and sales for Life has product. with quarter second products second healthy growth. exclusive benefited by initiatives consumer $XX agents sales that million sales. our level XX% of health period the channels. generated the over field local multiple our led our growth These to acquisition health the be over exclusive XX% quarter over growth. to in conversion long-term to business customer from consumer six Life our quarter comprised

policy, Supp up quarter. first supplement Advantage Medicare the in up sales over XX% were quarter. Medicare sales third-party the second challenged. Our remain modestly sales were Med

Medicare market discussed Medicare from towards a is experiencing as away quarters, in previous shift However, secular advantage. supplement and our

to are with implications our Among ability Consumer selecting of this to Consistent to continue Medicare customers to and expand with preferences. quarter our both area. were sales This vaccination the validate things, will a our significant for transformation our consumers a increase. going to virtually. profound initiated in of virtually completed with We as customers agents have geographic we communities how engage steady and and forward. needs interact first and in roughly health our January across connect held It rates we change life Division broader XX% positioned the in Medicare is and XXXX. Consumer Supplement we meet business change further re-open to even invest Advantage offerings well ensure continue other

As compared premiums to I number of and X% annuity grew up year and size the The up as collected new prior annuity XX% the mentioned accounts rose annuity XXXX. XX% XX%. versus were average policy

our Our annuity be products index of portfolio continues by well received to market consumers. middle

a contributor quarter Our growth guaranteed recently our plus second sales lifetime annuity force. income was key launched annuity to

billion the insurance current can second strict we shifted assets conditions. transactional of values. XX% brokerage our for regularly in This Client environment Unlike reviewed to quarter, products We tend grew customer Of is to fundamentally deeper $X.X be and nature other and manage course, advisory and assets continue our growth, now sequential. profitability. to account rates combined relationship macro and reflect and with $XX.X sales X% in Participation are and discipline annuities our which pricing investment create the year-over-year and balance base. sales terms growth billion we on The products some have clients. maintain our annuity relationships. customer with longer-lasting to

over in agent including continue agent years we new count agent period time. we more recruiting reap on the overall recruiting producing rely resulted force personal agent agent shift approaches our relative This down referrals. with We several ago. recruits, periodically in We of stable. agents likely the the are to however, was fewer heavily producing Sequentially, new remained is to the slightly the succeed now our initiated more strategy appoint targeted that count to our year-ago increased X%. and us but stay benefits

then X%. Improvements up was force quarters growth. agent driver registered count significant agent important for and more become in have sales licensed growth securities our we Our runway productivity recent had in agent future of

the as sharply to compared Slide to were period. in the quarter X, Worksite year-ago sales second Turning Worksite Division. our up in

levels capture persistency. We to pilots expect sales improves. remains and new of new programs business our new customers progress. services to Retention workplaces groups, stable when target employee of to continue Ongoing approach existing and strong with XXXX also employer offer continued levels to access

our count to we and recruiting up year-over-year during producing Recall the X% XX% was that sequentially. due Our restrictions. workplace agent pandemic slowed agent

market. is we XX% pre-COVID recruitment down support agent count referral levels, remains help agent levels levels field program. result to to designed and years return Feedback program rolling to X our the is DirectPath and us a generated veteran behind a Fee very XXXX Relative helping than from more have a has than the business can for up is to in Division driving agent our been the productivity successful now the been nearly instrumental our products remains production services be to our agent are sales This force. strong. doubled force levels, unique As among count been and X%. veteran Retention quarter combination to program. pre-COVID are from rebuild overall Consumer due recent bring to similarly expected in our worksite acquisition. agents strong with boost to are revenue These out surrounding who have we the more of momentum agents

early to also both in with business continues over DirectPath retention, generated XXXX grow. realizing metrics. Along client various are between pipeline increases successes cross Benefits We the Web Design and sale XXXX these and strong double-digit and

free $XXX robust to share us buybacks. million million including quarter Slide to Turning return flow shareholders the enabled $XX second cash our to X, in in

We our annual dividend the consecutive May. ninth increase. in X% also raised

repurchases and role. to of allocation critical a form important to that, unchanged. highest component investments our deploy organic capital it to turn strategy share XXX% remains with best over over strategy Our capital We and And an while use play intend also our inorganic I'll time, Paul. excess of its

Paul McDonough

good and everyone. Gary morning Thanks,

up alternative ongoing financial quarter and results underlying items. the insurance strong highlights. Turning solid up favorable disciplined investment related XX% COVID net for XX% to Slide and X,operating significant were margins per performance earnings impacts, reflect continued year-over-year share On excluding management. the capital The

capital XX we last repurchases to Return expenses shares allocated average X%. million the products. four in quarters, XX, But June ending and by the to excess XXXX equity period. year of not to at have basis points reducing on some months products allocated the outstanding XX share on compared $XXX of prior the deployed weighted Over improved

incentive expenses increased completed half adjustments items to over hand. continue agency prior agreement of restrictions the and in care our related on targeted June In XXXX the the transaction the year. long-term in sequentially other period, and significant conclusion management also in first COVID the reflect due earnings investments driven $X XXXX. efficiency in to general, a related million and continued Excluding discipline expenses expenses by on operational by The accrual the services XX, both one to reinsurance about related outperformance the reflects increase growth expense compensation lower to transition year XXXX hand of

prior the quarter were compared impacts $XX items. COVID period. to million million or X% $X in insurance in million unfavorable Net to XX, was in quarter significant up $XX second margin, favorable year product as Turning the Slide the excluding

quarter due portfolio. Excluding COVID the The across favorable our to care. stable offset reflect impact COVID care health continued unfavorable impact COVID net claims continued in expectations. products, impacts impacts by in margins products. impacting the life and in deferral quarter our quarter long-term product mortality primarily favorable partially This solid remained of particularly in the care Medicare experience our supplement exceeded the favorable of the and The in COVID related was

call As in did earnings to in that demand an quarter. April the the outlook in not spike including to claims that initial normalize begin claims second that we healthcare the would provided materialize our quarter, on due pent-up assume

which of in translated our million other XXXX of favorable Regarding Recall our annuity mortality second annuities COVID, in that we quarter saw impacts. unrelated block to positive $XX the to margin.

this As but which regular time- handful we a basis. structure noted on expect time, in policies, from on to-time large settlement the from block, terminations not of a this we at resulted

essentially we prior and investment flow a growth as the to where variable period. flat components allocated gain investment portfolio to in Slide related on liabilities $XX the net a that was decline reflecting alternative increased XX, which income loss in million products our through in Investment current and in period is income alternative a our income report offset X/X products Recall by assets of year yield. was allocated Turning mostly the not the to investment period the and in lag. investments a solid portfolio that on

first Our new first treasury quarter. general, quarter for the up in a money the rate the tightening higher versus quarter in spread second our was of average from continued offset the lower and by in quarter quality rates partially reflecting underlying continuation of X.XX% sequentially bias

average Our period. duration of assets, in rating single of years. billion This new an higher investment and an A prepayment average with new maturing reflected $X.X XX investments reinvestment assets level the of level and comprised of of of a activity higher

the of in presentation. earnings detail summarized and XX are Slides investments new Our on more XX

BBB Turning to our investment Slide rating average maturity of portfolio invested approximately allocation XXX XX.X% an of A. year-over-year points, comprised billion, single basis grade down rated single of income XX, year-over-year, up at to fixed A quarter points assets totaled holdings with sequentially. both is up is The This basis fixed $XX allocation sequentially. XXX our rated XX% end, maturities our X% and

BBB may recent grade quality managing and returns our modest over We our the asset-backed are alternatives, to CLOs We extent risk-adjusted portfolio allocation our a to an or actively suitable in develop. up increase attractive securities. bias opportunities balance to with time investment optimize emerging market securities,

or trailing of Slide a month generate of quarter free second cash or XXX% income with excess the in the XX strong million income to of cash XXX% operating to we and the to XX, basis. on holding million continue operating Turning for $XXX $XXX flow quarter flow company

at our of ratio to excess to the quarter consolidated RBC XXX%. relative approximately Slide XXX%, $XX XXX% Turning target range of is high end to end, million represents capital XX, of which our

Holdco by this the $XXX million, in target results operating strength excess up end Our grew capital million million portfolio. the returning $XX quarter of minimum approximately our our the of and from recent at shareholders which XX after $XXX This quality our Holdco investment to million. liquidity liquidity quarter reflects of to primarily $XXX quarter, $XXX Even XX to March capital bias excess June an capital of was the our in represents of relative in year. million

adverse with and as doing most we updating we well we to uncertainty would through COVID believe target momentum COVID or our capital to our to quarter that this sales past scenario Turning levels, reason, is a case it first unlikely risks downside longer that we've Instead, continuation in no seen In upside had a very continues, related formal we recent single our forecast future XX, been fall case any X that liquidity Slide quarters. for and below the of base cause scenario to the expect are a forecast. scenario the of forecast, year. running

modest expect and XXXX. balance of for insurance margin related in modest in mortality of a deaths morbidity unfavorable COVID the XXXX on net assumes a We from the to claims After our do This due the and spike product favorable this a impact the health beginning When net not COVID claims begin deferral worsen that half if impact when that our product care is care. spike to of uncertain. and and year normalize. quarter brief actually in third pent-up highly health occurs demand and second actually normalize

trend. seen So enough but the health in establish that far nothing a our we persisted claims pandemic have long during some intra-quarter to has volatility

of how On several largely the number impacting uncertain the material the and also next delta products side will additional the impacts for in COVID mortality variant potential see recent us from an from here. infections again, COVID of death our the given exactly the our is quarters event of or unfavorable, rise for the represents we favorable capital life from risks will one the forecast evolves, not believe, earnings however But it liquidity we is it that. for to Certainly variants. or biggest evolve

rate the rates, Assuming current than environment long is allocation. term with economic lower of expect X% this will certainly outlook. asset forecast downside expect more in X% the growth income upside the a of relatively shift the both shift be in near some in to yields term annualized and no and more in lower at general, net product interest results revert variable we those to allocated by up assets and mean flat in interest we reflective in our given likely investment offset potential investments to quality alternative remain In to point return the actual but over between base

Web earnings fee also year income. to DirectPath our modestly expect fee the we Med Growth third distribution contribute of income improve business. to prior of Benefits inclusion We economics the in and will Advantage be Design favorable to the grow that as and party unit

related year some generally for this volatility. be our in some quarterly with We of quarter items for quarterly the diminishes will And the first to time. levels the year allocated consistent and and liquidity not with our And of closer capital balance allowing which to ex-significant uncertainty over expect to point capital it of allocated the Gary. finally levels certainly target at manage we is expenses reported as some excess COVID reducing turn expect that, I'll to over back our

Gary Bhojwani

Thank you, Paul.

this diversified the in and making half priorities met pre-pandemic has the transformation we've success. organizational our strategic Division and of or pleased results the division strength exceeded steady first Worksite is performance quarter healthy generated of and model and our underpin year. execution with the consumer that business are meaningful The of progress. The We our

shareholders. squarely for interest flows of advantages we upon thank half take and for on that remain care business safe. we growth healthy continue building in the and momentum, health long-term maintaining cash to CNO value our the and year, the stay to of As second those enter your competitive profitability, including and optimize focused our our your eligible support please for you We stay vaccinations are managing

questions, up now open it will We for Operator.

Operator

line B. first from [Operator Colin Johnson question with Riley Securities. Our the Instructions] comes of

Colin Johnson

otherwise slower to Why been on care as then a expected expected consumer? Just of if been may despite quarter, resumption why that in of abate part favorably have maybe the in place. we insight that first things had to the deferral have the be that care wondering would as fact might the that reopen of taking any contributed coming quarter, given and seeing the we further

Gary Bhojwani

anything theories. hard I to of I'm to with you we've theories Yes I some don't a of the but short know, question. the we've share seen. Colin, to fast, The heard you for is being and point happy have we would bunch that got thank is answer

First still consumers is, back go afraid see some doctors. to to are their

conditions have Some conditions health consumers would otherwise those have they on passed. but care

explanation. consumer from seen that at of answer fewer that they passed. tell seeking short There haven't result to to anything are I've care what know would a the of in people health variety care of now least more see gone I claims have benefit here's doctors our things We then seen Some as happened. do with, exactly and says can that terms is the I the perspective, other unfortunately what our have that a results themselves exactly underlying are you health theories what but

Colin Johnson

that's then at of And helpful. premium. thanks, looking Okay, annualized kind new

I think this about longer we're half and digital. with upside that. to to second that be the speak Health NAP room is you think to the that now so equilibrium term quarter of number presents Do might respect Life or there that percentage, the more maybe

Gary Bhojwani

I think Gary. This is more. there is

I you The the one room there be of on depends want is thing how upside define think I some about that. more to transparent it. this on to

our I that. the increasing line interactions we shareholders, that was with this describe to digitally. that virtually, all because we is share an but but in of but next of there expect bottom takes what is And say our quickly come they If you to they also happen let's you is table. of number not sitting or from for completed that's So Was happy characteristics. answer to interaction. relationship more digitally, in I evolve expected with can of And Zoom much you place you're this are At email. product our is to kitchen we particular digital watching interact than place level. product take a in to all do there some over you the policy at kitchen others some do questions buy interaction because the cannot, one locally, we you differentiating person an both. our exclusion I that of to want your sitting table one Iowa but the That's sell a that the the agent in agent as meet person things to do the that but of paperwork a and can agent that call Iowa, that city complete is consumers can agents we in who the

consumers that will the want continue of of both but the answer short some that I want we expect So digital interactions number to is grow.

Colin Johnson

Thank follow-on. And the just as you.

do sales in digital any So - person. digital number - the on that of rises, expenses potentially sale could sort impact one think you positive versus operating of have

Gary Bhojwani

given overtime remember training. so over can to a should they agent will, the help think because that in technologies I the productivity area part important be increase investing near I the it's certain in time to and we're able broader term, it to want over geographic cover that us. should and time definitely emphasize

time for all take to will this way you its it that? want to Paul, So anything through. work add do

Paul McDonough

where growth that business our continue will operating I sustain over The potential from which only a position base, as the time, now and we're think ROE. I'd the to expense thing to at leverage is say we improve has grow get that better grow earnings and

Operator

question next from with comes Your Partners. the Hung-Fai line Dowling Lee of and

Hung-Fai Lee

the A in earnings annuities, and Paul, quarter. at for the specifically for margin fixed annuity very they were question looking index strong

some there normalized numbers for be for benefits so was wondering the provide what terms and market Just running if you quarter some can this of the the in color going through would FIA. margin of to sort

Paul McDonough

morning Sure. Good Hung-Fai.

the conditions reflective the improvement is impacts. in creating sequential favorable option of So market margin annuities

to higher equities, volatility option situation value derivative bit created where assets a lower down in drill the more to embedded increases the And lower just and treasuries value just reserve. So in of the is trends the expect to trends an phenomenon, moderate clear, the and QX it's we really be QX that accounting conditions. on moderate would market favorable will, this between depending if you

is a longer of run of rate. point look disclosure rate terms if term of run couple our last would there noticeable to the over and at underlying of years sort you trends, I sort that I think In just

Hung-Fai Lee

is how the of impressive of DirectPath color existing that to Can some versus you growth, and growth business. what's terms adding which year-over-year. fee driver in question provide fee-based second the your revenue very was XX% growth related your was My much up for from

Paul McDonough

seeing growth related and revenue in are Advantage is WBD. distribution driver biggest of the to the DirectPath also but from we Med fee Yes,

Hung-Fai Lee

quarter as kind revenue higher used that and But first about. to fee quarter normally --. million-ish. and we tend fourth $XX So be - of quarters think your to be

now because second the you're think we should about with had So million now. seasonality? $XX quarter How

Paul McDonough

should follow during enrollment the Med is I will fee think skewed QX, seasonality income. QX, period policies the annual Advantage expect continue you sell enrollment the period which we remember shelf the annual into to because this

Hung-Fai Lee

But so is come the to going run $XX the forward now low new quarters. million - seasonality rate

Gary Bhojwani

of QX and DirectPath, includes certainly it Yes, year it distribution. quarter on MA this WBD and and full of a

Operator

Your next question comes from the line of Zach Byer with Autonomous Research.

Erik Bass

This Bass. is Erik actually

do of any First, to have the the an factors for CX result you you estimate will new adopting ratio this. NAICS your range RBC of impact as target and changes make RBC a

Gary Bhojwani

morning, Eric. Good

of the all pro impact as some XX, new capital. factors XX of CX $XX that the new a So equal, we million is investment and to we points translates how think couple that by sort to points that's of portfolio are in about our could as about about June There which do the the things on else RBC, of forma basis XX risk of points improves arbitrage it. the factors

I involving, with about capital speculation models some own thinking seen I've of think our drive doing how reduce it's companies RBCs, we're their that simply the community some in to it. analysis will analyst the some internal in process we're target

our XX whether to they will to future that. reduce less as helpful than also some of to by understand or entire the will So it call on think this continue I'd to be adjusted a dialog RBC how our with reduce something come sort formally think target question better like amount about - it. the agencies rating back I to either

this, on the come forma that's but to all more equal So pro impact. else

Erik Bass

noted, I kind sales nice and - had your And obviously earnings. back should growing moving block And translate level you earnings in-force a the pre-pandemic is maybe into levels to start most now Are as the so a to recovery. in consumer you if sales growth. of faster this were products. for organic business. then sales And mean are at of

Gary Bhojwani

Yes.

now think sustainable with we I begin and base our the business But think operating is flat, we're leverage and expense to at we're block grow relatively certainly But continue it looking profile. been I backwards. better sort that as point will going that that's we forward. at growth in-force think a So and has get to of our with

Operator

Next John Piper from line Barnidge comes of Sandler. question with the

John Barnidge

the for opportunity. you thank Yes,

You're the bit, a - you're at a million clearly good little bit cadence about on but how stock you $XXX return obviously but thinking in down talk quarter, about year, can a for buybacks the the of declined capital the more link year. little balance

Gary Bhojwani

and John, sure. the start question. I'll Paul Thanks I'll to this and let more is any wants thoughts level share some out. details Gary. you high Yes, if then for give I'll us him

So some have of long-term of this for those call. participants this been in you who

factors. incentive terms of hold capital. we no our comp capital, is Some excess my everything you this from going in don't if before to a at of have heard repeat But we and look hold just of one, thought to have be few you've a Number plans any what me excess to process. I would incentive else, incentive remind of you

one and to chair but then at we quarter and transaction. I've on analysts XX with was the us to talked and least single CEO, judge didn't by been quarter, asked now,XX the stock of the at time benefit LTC capacity since not actions going back provide am the fund our everyone have I to realize historically think our we of quarter hindsight except have shareholders bought And XXth to declined one specific during instead our every words. our guidance, which the We of in I've I my quarter been I all about CEO,

in terms of we So are again, I ask our now. our where you not to by actions judge right us words

the COVID with I of that and like like the fact positioned position. half first the about in I terms despite all like way, even fact I still return where we're simple able nice, were quarter. our we that the we're quarters and conservatively think to that I this capital. that in terms our DirectPath the uncertainty first quarter certain of invest a particular the money a and year well abilities of in given million really in really to $XXX amount nice the growth. We and of acquisition as quarter second technologies $XX million XXXX to were in made as some shareholders despite investments able we both in

specific that members think the of that is the to into of amounts factors is As in how this about surprisingly quarter, Not the any the given the we management, one believe we analysis price. thing well is the book is we at when the benefit book say doesn't above versus value different. book of shares XX% GAAP value, buy value. value that XX% but The intrinsic reality of change

buy prefer stock book us us. to but how any of I XX% because of at book because shareholders it's see on accounting think XX% and our when company benefits the the in belief treatment at more of not just it would the long-term commentary of say

acknowledgment think view trading So when simple is happen saw lower I buy when a trading stock that's the stock not anything wouldn't you stock QX QX meaningful, accounting the cheaper it's the on QX want is to of greater we'll to value recognition million that the into And the more i.e., stock emphasize, and QX small treatment $XX more we'll the at trading. of buy, book, read the buy higher is from what I is rather our more to I it's the than a between an commentary will and of less. the intrinsic firm where discount nothing so delta

John Barnidge

fantastic thing. That's Okay.

Gary Bhojwani

wants Paul part, add case you want In to to?

Paul McDonough

it. captures that think I Yes,

Gary Bhojwani

got John. you Okay,

John Barnidge

expected. greater than about into you're you the how thinking Can to the to Fair persisted in how and initially follow-up. level each quarter progressed tailwind it talk the then rating claims third quarter? about month say And run maybe a

Paul McDonough

of it's to month-to-month and Yes, it's you been speaking a but for said has going more now, we more it's a third in is quarter, month next pandemic, levels, down we'll normal have going levels trend relatively normal it's John from within and Paul know, quarter for There think up our next not any in certainly more the stable. begin up there the I'd trend broadly see. some line, as we than persistent outlook back a year, row, towards towards product over in individual course to been year you going might an a back it's say the month the the then volatility up

spike it also see there think reasonable we we have I I doing that that mortality and assumption consumers possible but we've so by to my the but spike impact our a get words, know necessarily begin have where that not, what, see doctor's other case I in same probably and you And that and death. another If back think In mean say, infection need spike you material another the that's to death, office infections don't if will scenario doesn't far. may seen behavior death it's spike do base and in expectation. is again in that. consumer a holds

what So may I things guess I'd just I emphasize look that exactly know to that evolve uncertain and like. very actually pretend how wouldn't is

Gary Bhojwani

so hearing the quarter. especially Gary. we a is send you're feel and next a obligation this to indicated The that's for trying because surprised think in keep try from we I back we we will have like back row, we us, wrong signal Paul is a that didn't, as it don't don't and to say we But what hey thing thought that John, row. position The third take simply quarter they know, our reality we've that, only add been been think now a to I'd for come we've in know. come three the claims conservative

Paul McDonough

the that you to trying as come going I would just likelihood even is to as be we're back. it's know actually odds know, but conservative began. We how how don't to give

John Barnidge

assumptions a helpful. on they've based side ball it's one and an going it's other the a to these That's average. been get, further all like ping-pong have on land I you of

from luck. that's appreciate I questions, my of best So all

Operator

question next line Ryan comes with from Your KBW. of Krueger the

Ryan Krueger

recruiting little recruit. your in talk from terms of conditions. the in challenges peers some recruiting some of to some you've know shifting hoping about about have labor a was trends sort talked could of bit away, you due been of I also I shifting the tight

So just there. hoping some commentary I for was

Gary Bhojwani

to and single CEO, ability other Yes, other been get help. Thanks groups the I labor worried out I've leaders, it for market to of the industries expressed not the to industry now labor. is how CEO I've industry tightness the that's right a with both and talked over get in other know question. difficult concerns business involved insurance about Ryan, handful don't a of Every within has regardless there of

is on exception because that don't they basis for - could no absolutely more they are don't make our they argue we agents trend will difficult if So One us kill in work remember regard. a even of that that they some commission anything - sell money.

count we Now lucky, we that of and are couple topline a an years we productivity our and of on. a even recruits much. very focus targeted raw early in idea started on de-emphasize ago, would of have terms business. to recruiting number in on, grow move a agent if Frankly, more but very, absolutely make support that we hitting tenure our programs try quite to difficulties and just as so instead got benefit our with didn't those the

So strategy. we're consistent our staying with

this started I And years a that luck, out pure think again, of in really few strategy ago. environment. we just is good

that into we're we're path. well that to So on going stay

to challenging, am need You'll grow that agents on look productivity, And can could you both right our no continue tenure. continue those will less at we metrics, you more and to but to focused reasonable job of be emphasize see do do I focused it. numbers, the see continuing to if us will done on a question time but of that course we've pretty productivity about that on

Ryan Krueger

comment and seen through last seen life gone if can benefit through any the particularly at and then the that life in persistency in I you've business And the trends maybe, pandemic, of the you guess all years persistency. you've couple now. you've health on

Paul McDonough

on pandemic minuses large and our driven the a Good portfolio volatility persistency product across margin. here and remains by little stable the some relatively been has consistent there The through experience. relatively with But morning. pluses pre-COVID that Yes. it's has and really

Operator

are there closing this no Childe remarks. time the At further turn for to questions, back over call I'll Jennifer

Jennifer Childe

you much for in very forward speaking participation to look call and soon. your again we with the Thanks

Operator

gentlemen, disconnect. and ladies now you, you Thank may

CNO Financial (CNO) 1 Aug 212021 Q2 Earnings call transcript