Earnings call transcript Q1 2023

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Operator

Good morning or good afternoon to all and welcome to the CNO Financial Group’s First Quarter 2023 Earnings results call. My name is Adam and I will be your operator for today. [Operator Instructions]

I will now hand you over to your host Adam Auvil to begin. Adam, please go ahead when you are ready.

Adam Auvil

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

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

we conference referring be press call, in to During contained yesterday’s will this information release.

was release Form section Media morning’s obtain section yesterday. also is You of presentation website website in our a the available can Investors filed of by visiting the X-K our and This in at cnoinc.com.

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

statements. that substitutes Forward-Looking materially presentations to be GAAP may for of number you as remind me which contain are factors, measures. comparable actual today cause we different subject than Let not a number which Today’s of be measures, any considered forward-looking GAAP the Statements those to make should directly contemplated results most a the by

reconciliation appendix. will of the in the a to GAAP measures measures non-GAAP You find the corresponding

be XXXX Throughout quarter specified, referring first the between presentation, we XXXX. to changes will making performance comparisons made any and first be quarter otherwise and unless comparisons, will

And that, I to the will over with call Gary. turn

Gary Bhojwani

us. morning, Good Adam. for joining and thank Thanks, you everyone

capital posting $X.XX, results. a solid per earnings resilience are earnings our model and in to balance We production and and off business positive were start results. our operating to XXXX, Operating earnings, share strength, stability

margins, growth investment income, period. alternative of is overall by to underperformed as the fee business solid insurance health and the results prior product fundamental new demonstrated and even The money as increasing results solid rates year compared strong

Supplement premium growth nearly solid Medicare worksite including and Advantage, worksite health, consumer and insurance across results We all product Medicare sales. balance products, posted divisions. Supplemental and agents sales strong our in delivered recruiting agent X%. an field Medicare Total both annualized new up production including annuities, and categories, Life direct-to-consumer was Sales both

management. and target position liquidity levels above capital our resilient disciplined ratios and capital Capital remained underscoring

weather to deliver well investment Our investment income. high remains market consistent to turmoil quality positioned portfolio and

January, per the LDTI, duration share new LDTI. up We associates accounting was many Effective significant GAAP culmination we adopted excluding the across represents over organization $XX. This recognize from for long our a and their hard implementing of value Book initiative. the multiyear transition for diluted thank and AOCI CNO insurance contracts. dedication XX% work to standard to

in our slides. Turning X scorecard will metrics of integrated to I quarter growth up two product the diverse division model. and Four were broad for five next Slide scorecard. of value distribution our the in demonstrating our the portfolio each discuss growth

the with on X. division Slide Beginning consumer

sales are in We of in consumer production up product up very performance X% all lines saw growth the year-over-year were We Bankers and Life sales agent Life with nicely. pleased quarter. the and health X%. our channel map quarter. was was Life in for up the divisions. nearly Life the sales

Our direct-to-consumer strong comparable. against channel generated record Life a sales up X%

seventh the this solid with Life. is growth consecutive spend conversion quarter live policy for business. This rates to growth of distribution and Efficient DXC for continue enhanced advertising sales

products. the Supplemental of double-digit health third up these for sales quarter XX%, were growth

record Medicare posted in fourth momentum the period. building from annual the on growth quarter business Medicare quarter Our enrollment sales

D As broad which a a Medicare offering and of Medicare business approach Supplement for products and we Advantage collect fees. that includes we reminder, our Medicare to Part third-party drug manufacture prescription plans

Medicare this competitive to in consumers for well received year launched XX% up was be map the market. The last Supplement we plans Supplement continue that quarter. Medicare new more important by

growth third-party Medicare fee were This quarter. of revenue contributed sales to up the XX% Advantage XX%. for

drive reminder, revenue MA a As in policies and are not fee reflected MAP.

Enhancements portfolio enabling to growth. double-digit Medicare are our

Policy platform strategic the through My carrier platform’s Health that plans technology investments available our capabilities. Advantage We continue to add makes in and Medicare are

with help of footprint XXX in offices ready than Medicare enrollments. communities, knowledgeable we operate national branch a local With to more agents

build Our potential earning cross personal customers relationships sales. and needs with with develop opportunity to assist agents the future our

so industry. prevalent strong mitigate churn the of much to the us relationships allow These in

Our complete service unique a a our important ability marry of to who the agent virtual and remains sales mile key last differentiator. person connection established with in force

premiums Annuity X% XXth of comparable to growth. captive is of distributing this expected remains quarter period within persistency were exclusively primarily through collected our our consecutive agents. due model of our ranges, products Annuity annuity

assets year-over-year X% and were to Client equity volatility billion down in market advisory ongoing due brokerage to $X.X values. and declining

trend billion were our accounts of up values, prior annuity importantly, inflows with with nearly net entrust assets. More positive their $XX Combined quarters. from continuing and account new this clients our us

to fifth accelerate of recruiting continued our agents. recruiting up and consecutive quarter XX%, was Agent

X% As we success, a point agent inflection which an our result of for count, up the ended recruiting achieved this quarter. in producing sustained

calls, As meet for takes in to time counted previous producing shared new I have to levels be agent. as production it agents a

force to We begin recruiting are meaningful prospects the year. balance pleased the on to into bullish We remain in see translate agent producing agent agents increases for our in of count. increases

strategies recruiting agent return support a growth. continued Our force to

These our include referral recent to coaches. agent our program and recruiting proven enhancements online

environments. more Software resulted successful labor traditionally has market recruiting in

solid. Veterans productivity remains agent retention and

count available number to prior securities environment. customers our Our X% of from registered assist professionals in economic today’s agent increased year, the challenging expanding

growth. this small of consecutive Turning of off or quarters four worksite sales and to of quarter. Division albeit X quarter XX% last This base. a Slide performance. Xth were our is Three XX% more, growth the Insurance had up the

Leading customers to counts Producing were employer stable. indicators up of persistency of the these is XX% of employee trend the up within positively. remains our was and strong, agent groups employer health existing continue recruiting Retention XX%. business

our worksite our in regional employer strategic national the recruiting and worksite the our both deepening priorities agent markets, We and accelerating momentum. optimized squarely remain on capabilities under of focused advancing brand, integration

to to serve customers our through We ability also invest and offerings. continue service product in

Now. to with greater uptick half received as have they the be second hybrid connect our The continues It introduced attendance to the technology. in by a experienced In including Optavise meeting employers we and an wherever platform race, of of video employees, last over gives or the well we our phone. agents by result enrollment ability employees platform are, year, and

And over turn will with Paul. that, I it to

Paul McDonough

everyone. you, and good morning, Thank Gary,

I our of in results XXXX reflect the would to Yesterday, the words recast standard. of quarter, a few financial on the financial the say quarter adoption LDTI. fourth commenting accounting supplement new Before our we to implementation posted regarding like

The impact were the on previously balance sheet re-measurement with we estimates period and in-line had transition of earnings the over the provided. on

or results, As stat’s no a capital on reminder, LDTI flows. impact has financial cash

the I implementation gratitude team. second the from beginning and call the my also Gary’s CNO would to like of expressed to comment

standard, under forward. We are well-positioned not new the but to operate smoothly just first quarter efficiently close going also the for and

X. on Slide Turning to highlights the financial

pretax for loss changes, million, of just loss by nature. are of both million, derivative, which $X a business and largely driven quarter embedded was by a fair Our the relate in turn of under was $XX primarily non-operating in net driven income of market reserve $XX benefits, accounting of risk non-economic which and both to the which value liabilities our annuity for GAAP million

the gain our decline of quarter per per was $X.XX the or a Conversely, or $XX components net share, variable investment a the period, $X.XX in million for million operating income. driven share $X of prior than by income year lower

for the prior the our year period, were with also to but elevated Expenses expectations quarter. compared in-line

XX.X% Our projected unchanged between at expense XX.X%. full-year ratio and the is for

and margin basis, by or with or insurance $XX are increased X% very year-over-year, million in income rate $X XX%. a fee million quarter. On run pleased by the results we increased product the Notably,

We in diluted X% deployed contributing capital reduction quarter $XX the to in on average of year-over-year. outstanding million share repurchases weighted a shares

XX.X%. For equity ending on XX, was March the XX-months XXXX, return operating

business, driven flat margin individual X, growth Turning supplemental annuities the was Life year-over-year, and and pluses by growth the minuses in lower product line and mortality largely lower growth to annuity with product insurance total Slide fixed within category. and also health. and and each The in were reflects margins by growth mortality by product in health indexed in

up money to quarter quarter unallocated XX. XQ the is to investments, of in year-over-year. exceeding net X.XX% with period, yield X.XX% up the in rate new the year quarter This points consecutive basis in Turning and yield. third improvement, prior the sequential both X.XX%, increased improvement sequentially first and The rates in Slide X.XX% year-over-year the which This marks and quarter, of in quarter from average XXXX. the the money two new fourth was

is nevertheless declining is insurance net important yield, X% income allocated investment an together product, net point up inflection in growth years growth While of with after the to it was in and small, which liabilities, in improvement contributes quarter. the to

products decline in FHLB by income quarterly fell the and to growth the and and assets, Investment decline allocated in decline not general account Notably, call investments. return mitigated from and a was a also by and the income the alternative programs income. driven from the on FABN in part prepayment contribution in investments quarter,

of rating comprised investments with of average new AA- of an million average approximately three-years. duration $XXX and an assets, Our

and detail XX investments on in are summarized new of presentation. XX this Our more slides

At to reflecting $XX quality with several Slide rating values up driven an grade Approximately down end investment single maturity X% rated XX% Turning interest primarily at of was quarter our rates. higher XX. reflecting billion, average last totaled our fixed assets actions our end, year-over-year, portfolio declining invested quarter of by quarters. A market over and the

as is single down crisis up These well to and served BBB the the banking as economic last well basis to XXX securities broader points. XXX yield points. recent allocation or allocation A is continue In basis down relative The is position downturn. to higher XXX XX-months. the high basis rated allocation and points, actions The potential during

has media I that should Given briefly. equity the commercial real amount estate touch research in of and the thought, received I an attention that recently, on market

securities, are in our of backed loans. X.X% that assets commercial note will X.X% are commercial and mortgage in You mortgage investment

presentation. We these in have of investments included XX XX this some and metrics Slides on

risk that positioned in significant The loss tilted structural metrics. allocation a our stress is of that conservatively with key also messages scenarios. mortgage property extreme are And limited protection rated is types one content second, allocation and our toward number CMBS highly commercial lower loan number across with

$XXX quarter to is consolidated XXX%, our liquidity ratio RBC XX. was end, Turning million. At Slide Holdco

We continue to liquidity. XXX% and to RBC, manage Holdco million targets this of $XXX the

Turning to XX. Slide

Investor is we full-year want an update captive at to our the as Reinsurance formation from Bermuda this for back provide on I unchanged plan Company. of outlook do summarized shared Our on February in a what slide our Day.

portion We time this a business, treaty in index Company. of continue to the a to approval in to will from cede Bermuda work we we our treaty, annuity regulatory quarter the operations process, initiate our the intend fixed this to conclude expect which year. Under third through U.S. of

to approvals, excess increase to flow on million cash reinsurance inception by $XXX to the of all Contingent Holdco regulatory necessary treaty. expect $XXX initial million at we the

when will We deploy judicious capital, logic in the same how that historically. discipline we that be and we have and certainly applying

impact capital and it process. But this means appropriate what approval the ahead assured, might to approval don’t dimensionalize thought by Regulatory be. at is we to nevertheless of the we get no want was stage

turn with will And to that, I Gary. it back

Gary Bhojwani

Paul. person. Exchange. see February, held Day In you the Investor we York New at so nice many our to Thanks, was in Stock It of

were also to We able virtually. who join those appreciate it

remarks the meeting, this I CNO growth my At with is opened comment. story. a

years again on macro was and our several economic by The pivot the delivered display sales this of the growth are momentum. of strong growth our performance After resuming navigating in both uncertainties, divisions. to pandemic we quarter

solid fund flow to and free both have cash We growth capital return.

remain position Our liquidity balance and capital sheet, strong.

of sustainable look we and long-term remainder strategic the focused steady generating execution are growth, XXXX and squarely As profitable that value. beyond, on on we our consistent accelerating shareholder to priorities

of and for CNO Group. you Financial in support your thank We interest

open We Operator. up will it for questions. now

Operator

line Ryan please question Stifel. Instructions] comes Krueger open. go our is [Operator today first And you. from Thank your from ahead, Ryan

Ryan Krueger

potential thanks, My the capital benefit just to transaction. question rules. $XXX Hey changes some million And already on to was Bermuda proposed $XXX want good impacts. to is that I Bermuda expected million those There confirm their incorporated morning. first

Paul McDonough

Paul. might we range but through of Good be morning, are specific is certainly them don’t Bermuda impacts Honestly, the has impact rules new sort The still what the to of expect Ryan. the presented. material. It potential that we incorporates working be,

Ryan Krueger

of that that likely of Okay, you potential thinking or use cushion? return great. a to follow-up, build potentially of the would would you capital a you capital the as further to then most about a to up, be shareholders like additional how And are piece use freed

Paul McDonough

think way we always the about if capital Ryan, I which to we you excess look historically. have, what continue think at we done will So that have

the on appropriately deployed and thoughtful are margin. We

Certainly, to excess we to it shareholders. used capital return have

But will do So said, I of I right would anything it. would component be imagine we that not away. a as

it, and we way will it the about have approach We historically. same think again

Ryan Krueger

great. you. Okay, Thank

Operator

Eric question next Autonomous. from The comes Bass Eric. from

ahead. go Please open. is line Your

Eric Bass

impacts affected about you. any or flow could timing a Thank at Hi. level talk more was and I hoping by seasonal you all And quarter. curious excess the of to bit holding was capital this company generation issues? the this if cash little

Paul McDonough

Sure. Hey, Paul. good morning, Eric. It is

be So for side. that million quarter range low expect the the the emphasize the cash to flow in we the I bit full-year would to excess million. XXX cash a the flow XXX was on of in

side two that really quarter. that to pushed it There are in things the the low

The Holdco it positive. and of cash. first is was category tends in largely the to the subsidiaries. slightly flows other timing This million between a It of to minus quarter, $XX intercompany in basis, the the differences sources neutral full-year is cash be on operating

second and other holding And in quarter, bonus then typically expenses, the thing is that March. by payments is first company higher primarily the made driven are in annual

was the and quarters. in subsequent quarter expect we it XX that in minus to million So would improve

Eric Bass

thinking bankers the enforced I then fixed can be seated helpful. is new And of you. sales? of all the That go forward Thank release kind guess, policies a approximate that it. about the is Bermuda respectively, annuity Got initially the to and what pro re-insure the then size cap. of use a plan Life as on would benefit the to percentage benefit of capital we liabilities on follow-up

Paul McDonough

So Eric, again. Paul it is

So fixed currently indexed book, And years. issue that are proposing translates which the $X have value force more force the XXXX on XX% and billion. about annuities, in to of an recent in we seed to account of about the

business. do the the to to amount XXX% new take respect up business, necessarily proxy. I at propose as of With inception a we new wouldn’t the freed seed

there I parts. moving are think more

into as that provide are this, stage, of appropriate declining we this some size disclosure. We but to will we at get certainly

Eric Bass

just could one. quick I one you. in If sneak Thank

Just to in on based should range range for think the in VII $X of guidance VII EPS normal $X.X of year? an the lower the level we first factored quarter your of or expectation of being a

Paul McDonough

So based year. on of for really it balance quarter the the for plan the is actuals first and

get does reverts in back presume we it first low quarter, the presume VII the quarters. all it that So does mean subsequent that not but income to the in

and off notably lows resulting seasonal down, Life that guidance expenses expense in improves XX.X XX.X. in and and between margin assumes ratio also trend It first the full-year that our quarter

Eric Bass

Got it. Thank very much. you

Operator

from line comes your ahead. Piper from Barnidge is please question Next go John John open, Sandler.

John Barnidge

you it really, how for year. for looks in balance the Good thinking is know with second, of stick the very we much. morning, seasonality that with Can first guidance talk strong we about a you. like quarter? the there the I If really the be you thank waiting quarter. income Thank should is the

Paul McDonough

in plan I as variance Eric’s in John, The to first with in-line income. returns lower guidance the pretty only quarter, just actuals material our balance offset year. partially expenses in to first straightforward. of So higher on The question. for shared all quarter the fee plan really response the is was and It the is based for our the were our Notably, by expectations. quarter plan first

explains in seasonality margin subsequent of that some the do is expect Life be So the There higher quarter. first if some you math, clearly quarters to to earnings we than that.

we in expect trend alts again, the to to subsequent down mentioned, mentioned, to we mean as As revert I expect and I quarters. expenses

John Barnidge

the you was like about income growth talk the in enrollment some driving without device drivers follow It in fee through the strong the Can seems improved good quarter. rates? there with

Paul McDonough

Yes.

much the income the quarter, fee Advantage driven primarily so the So was in quarter the device. Med app sales actually in by not by

John Barnidge

supply recruitment agent market. trends And be looks for the coming There the for the then, in market you have sectors any it one with as Are to Thank is last like propensity better different in labor Okay, referrals answers. the softening that agents. seeing labor increasing you great. a one, been shifts? where is

Gary Bhojwani

certain And we Gary. have agent found that targeted seen we another, things I one other perspective us. agents specifically or more sector certain particular is one. to approaches, or say, doing What and wouldn’t us more this will John, are we have I referrals online. to opportunities take we Yes. a deliver have

We there. same are playbook the still with tweaks and here following

to think agents see conclude I layoffs, industry. said, experiences more a is that industry reasonable coming from we particular might it that All more if

I yet. is it play we that haven’t fair But think a theory. seen

John Barnidge

you. Thank

Operator

please your Capital is ahead. Mark Next Dwelle question open, line Markets. from RBC Mark from comes go

Mark Dwelle

good Yes, morning.

are quarters last the just couple lag the hang time The translate recruitment. lot the agents been on kind quotas recruitments up ramping is? what of productive targeted delivering do of question on the when You whatever get is between time right the And or recruitment. a when metric building normal last they people these you into the or

Gary Bhojwani

Gary, question. is this Mark, Sure. the thanks for

to different agent productive what words, as just remind a one question, metric. be your thing. may I answer other count In Producing X. of I than GAAP a want we agent everybody is count defined Before Brand not

always is standards we in various got it So out are remember laid we define terms have that a agent. producing that to important how of

But they really see between difference when we That your again, that the kick to somewhere three-years answer make up, productivity I is to ramp start the to we XX first one past think XX. where see to see a months is, really is in and notable then question, in. start really XX-months, if we timeframe, it it

Mark Dwelle

helpful. us, some at greatest are the where of helpful. is of be this all, area and you you putting then CMBS, together is turning data? vulnerability that that and look what this, at see loan those When appreciate most book sit you disclosures that it to definitely back the to you the would as had first would concerned, set And the Thanks for related of look you you

Eric Johnson

commercial thank pretty you you I has which see it CMBS, ahead of look feel market. mortgage pretty low your a terms basis a whatever good for to mentioned, When question. what looking I the is the morning. is very first, strong in lies Yes, Erick rated loss content. portfolio developments set is data, This highly at Johnson, this of of I at

most has which occurring of on $X maybe probability the deterioration XX a values, billion conservative XX in bucks million that in we XX% NAIC Even XX-years. they scenario, a scenario, using lose property over think X% million, portfolio

that is So portfolio the fairly even demonstrates inherent constructed scenarios, that of credit a support. in with I the a well think probability lowest lot

tilted at no look current, LTV, very we current mortgage which amount, lower around low very risk of commercial no you If some around loan spaces, a constructed, data delinquencies, portfolio, which very loans, are are DSCRs conservatively restructured maturity. you properties gave amount absolute toward

some nine is be be think still do of those both have those for there I fourth game, and inning - five areas, a we think in all So inning to innings. the in while we play going are to prepared I to next

I emerge prices we strong to basis, a environment. have underwriting quality or got, what opportunities becoming from just baked deliver into that losses once the pricing have levels what the but not know, higher think we CMBS very trades, stable and a loans is are severe pretty you where and results find conservative

to So be got, we this we emerge an for area the what innings later I also protect the opportunities, upside the may thoughtful, have of look game. we into as be which have where will but get think

Mark Dwelle

the Thank your that. with Thank you you. thoughts to I on for tend color, agree very much additional would

Operator

Instruction] And ahead. [Operator our open. Please Evercore. from is from Tom, next go question Gallagher line comes Tom your

Thomas Gallagher

you a new cash benefit? to annual seeding XXX% follow-up, the then one-time that beyond benefit of immediate Reinsurance much of as being and part maybe out on do million to flow new $XXX Paul, $XXX is, come versus of to you how amount of business FIAs up. business how Thanks. expect that this the would the that is much of what the Can Bermuda cap million follow-up on kind from of have expect in force split kind freed for you a

Paul McDonough

morning, Sure. Tom. Good

recent force. to million seeding XXXX book. roughly which on is again, is and in force XX% years, in is XXX entirely more issued XXX the it that And of So million the

we from would the seeding expect So impact which we not of which have of in third the treaty, the the business, sometime new at XXX% expect sized we quarter. begin inception we

incremental lift which we there, directionally quantified. So is haven’t some there

relief we is do as some deeper business certainly new so from But this structure. get with into will We this. strain there

Thomas Gallagher

this effect I by of assume And of yes, strain ongoing you. then on XQ? would Got more benefit XQ to we you expected. business benefit ongoing the kind based willing be will going get in positive guess is there dimension that should to and after in you terms the - be then an I what new is

Paul McDonough

we think I will. probably

than We will do today. we know more

We will have modeling spent more time it.

to some activity begin have real it. We with will

prepared dimensionality to So give I strain we of the business to with new would imagine be this relief some structure.

Thomas Gallagher

And for then Eric question another for a Great. follow-up, Johnson.

a money mortgage direct new are So investments it direct was quarter looked assume not X.XX% those loans, investments at MBS. resi a small like loans in Were talk allocate to And then into asset think for I I XX% yield. lot to is in mortgage those of you your it the residential right that little bit expect because can class, would about, you you to continue now? fairly

Eric Johnson

our morning in question. Good allocation, get I probably thanks now change loan mortgage bigger. the for asset is some residential Today one overall can of and percent that think

I Although X% Why high at the below say remain will this? it do end. think I probably

an environment One, it risk even in the in peaked is quality. think is flat to good of and has declining, terms probably I credit HPA return where consumer a

are that much last in buying is I Higher period, been market middle loans, the prior for really you more the because, LTVs non-QM, the FICO, in non-conforming what relative a getting LTVs. posture it is is the in underwriting much FICO been XXXs, the in middle - think to lower, have where conservative we year in the XXs.

be very low for content And loans of what a the home XX year points, XX would a XX would XX basis basis points a and really we year to basis in expect normal bad points. in characteristics those to loss historically

corporate bond, So, if XXX you loans single points. to they extra carry weighting, capital but is basis are that pay these - probably A a a akin

investable plenty room and make to to alternative. have an the be relative yield you still wrong, of So excess

losses quite a with experience years, doing has points. it in our have them, in-line and been expectations for of of been our the And now we number good with basis

feel overall performance. So as this area an we additive to our that is

and for the us, margin, product and times providing are the markets where but outlet. at market mainstream other a non-QM not not the in is It

at buy can You these worked price well. pretty and out on good good a terms it

Thomas Gallagher

you. Thank sense. Makes

Operator

please is The line Daniel go Daniel next open, your ahead. from question is Bergman Jefferies. from

Daniel Bergman

good It XXXX start, the levels for blow could a looks typical of itself hoping level I more quarter. slowly main little holding color Thanks, like morning. RBC To this despite ratio dividends the paid a company moving on year-end to pieces was provide you from the this quarter.

on So you get main the would for ratio be first call any the drivers can the great? in quarter

Paul McDonough

would Dan. of morning as impacts in RDC. typical it sort Good I describe

So expectations drivers are in income the line main statutory side then dividends. their any impact from investments, and and which with low the were to

the category flows sources between to basis. negative a be of So parcel which really XX flow cash cash really context, the of it main Holdco cash, in quarter, the other to are intercompany is neutral full-year low that cash in sort two on repeat the quarter and I And flow. would is and and part Holdco OpCo positive excess tends in to push they drivers just of the to end, in the that the of just

then And period obviously, the a is thing. in that expenses Holdco payment, annual bonus seasonal include the

quarter we subsequent expect trend So to in that that XX the would was down million quarters. in and

Daniel Bergman

the quarters. maybe then came margin bit, the earnings And bit just below a they in or running have quarter and recent gears little shifting Supplement Medicare little a in been

to of impact Any or this an versus drivers main mean, factors? utilization, forward is from some any kind seasonality the be came quarter, pandemic how give color post way much and other going way dimension I of on the saw there you LBJ the can would post to very think business helpful. what on earnings of power So higher about you

Paul McDonough

So there component is a it. seasonality to

driven for typically the quarter, margin shrinking the Supp. period. in quarter by to is as decline experience block, period first of things, compared quarter the two current and Supp is year claims the size the really lowest the prior year the Med first Year-over-year The Med primarily better in

of We but normal in to on for certainly a pre-COVID were volatility, in within that range still high Med back end back volumes of to observing claims the pre-COVID bit are the range that quarter levels. Supp

Daniel Bergman

is you. Got helpful. it. very That Thank

Operator

[Operator Instructions] further this time. no We questions have at

back concluding remarks. So to I hand any will for Adam

Adam Auvil

Thank have investor you, out operator any day. rest you of today’s further for call. the and participating you in to great questions, team Please thank reach a and your have if all relations

Operator

much attendance. today’s concludes you very Thank call. for This all your

disconnect your lines. You may now

CNO Financial (CNO) 2 May 232023 Q1 Earnings call transcript