PRI - Earnings call transcript Q2 2020

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Operator

Hello. I would like to welcome everyone to the Primerica Second Quarter Earnings Results Conference Call and Webcast. [Operator Instructions] As a reminder today's event is being recorded. I would now like to turn the conference over to Nicole Russell, Head of Investor Relations. Ms. your begin may you conference. Russell,

Nicole Russell

relevant and Thank Relations Primerica's press section everyone. are materials to of our morning, quarter you, release, on earnings Investor with earnings operator, second our call. Welcome of call, investors.primerica.com. good A the today's to website, along posted copy

for Chief the today and Alison Williams; will questions. prepared Officer, remarks, and call Rand. our our call Executive Alison and Joining Chief we Glenn open will then up are our Glenn Financial Officer, deliver

some XX-K the call, may company forward-looking Reform our to duties comments During a of modified filings safe or statements actual those contain information. Form XX-Q these implied. any The reflect of subsequent list results filing statements from as our the to with that you harbor Act. We to revise update does assume in recent new refer Securities could for by expressed and to accordance not provisions risks or of Litigation uncertainties our differ cause materially Form most

measures, of are Reconciliations our I numbers be additional company's Relations the We will measures to into insight release earnings now the certain would operations. on to provide believe Glenn. which these at end included their call referencing like respective over we are to also non-GAAP GAAP site. available the the and of also Investor non-GAAP Web turn

Glenn Williams

a everyone, recap and our Nicole, COVID-XX share thanks, impacting joining will the for quarterly of you our business. us and results provide is you, pandemic Thank how Alison with today. I and

operating increase the income on year-over-year, including strength million, results second income in quarter and X%. was of year's continue year-over-year last business XX.X% resilience represents slide adjusted revenues per ROAE quarter. XX% following model, a also operating up while was were XX.X% the was to highlights quarter X% $X.XX, net compared which share reflect $XXX adjusted Diluted operating financial the shown up during and Second to three. Adjusted our

can slide the the quarter, provide our on see of an details the into you I'd update to on impacting four. dynamics which market going Before like business,

our demonstrating of model business have our flexibility is positives. the the insurance, with strength distribution lines needs emerging business investments of meet We the market. believe that mortgage disruption. First, in positioned us during unique The complementary our life entrepreneurial opportunity, COVID-XX business the combined its of to middle business

efforts to also XXXX early paying momentum environment. improvements in unique fundamental build this and are Our make off in

solutions We have seen financial extraordinarily consumers. interest high among Street our in Main

strong which are mobility, of reflected in period families the sales this results we in improve saw was limited action life During game to financial taking quarter. insurance plans many their the

field and and corporate action of a Our focus the level specific to leadership responded drive business. high to with plans environment have

of and to us only For also clients' it reach continue conferencing has the has across U.S. to needs, example, adding to web the and the model extend allowed not Canada nonresident face-to-face licenses. us allowed use of to traditional our reach efficiency through meet our

negative, and creates that positive While trends, We know and must lies both change, the managed. also about that monitoring ahead. recognize disruption headwinds these some potential we're excited uncertainty positive closely that be we're

quarter long-term to difficult between challenges is programs discussed we two assess. incentive second Last sentiment, market we the the beyond. key impact of and anticipating and our and addition, were distinguishing In forces temporary more the for of quarter, effectiveness client that

for back happy full U.S. to quickly I'm capabilities and are life ability paramedical of obtain traditionally underwriting products. to Canada, and providers First the the was disruption requirements our in report at XX% responded that our underwritten while about exams in they capacity, underwriting other in are our normal.

just in insurance licensing most remains discuss provinces. administrators responding in this issuance of impaired and processing licenses moment. life testing, how to the are I disruption discussed, we challenge and second states The permanent will a

challenges the the meet leverage that of positives. We of long-term delays, necessary will and current as some changes will we are the confident we

are However, the comparative numbers our in purposes. near for adjustments creating noise term, these in

as our within positioning field incentives such activities are training. and to this aggressively We recruiting during focus period of control our disruption on

begins to licensing. add incentives normalize, As process on we will the rebalance to licensing our permanent focus

Aided into by Now our recruits us this XXXX. the $XXX,XXX, into XX% May up our March weeks program, business as total beginning by became the delays and continue incentive April. on with incentive licensing program let's extended to during look $XX this quarter the the quarter at then We excitement slide The last created by were two five. distribution during in June licensing of segment, the incentive over of second field fee apparent. led

a creating to profile warm life occurs, license. the to we which increased training added markets energy where brings addition sales. recruiting that remain to training tailwind the of field to field, And also sold ensure enhanced recruits increased be without in a field that In ancillary program can engaged, products and our access our

date, As remains states have delays To by in licensing licensing normal licenses. process processing XX I to the earlier, compromised. temporary the process mentioned permanent responded issuing

those as time, permanent to early for success too of are at project possible as it's in We convert licenses temporary reopens. once our this to preparing rate But the licenses converting licenses. of many licensing us infrastructure to

due year-over-year. during the extended from of These new XX% number quarter. also our of expiring of In up crisis. issued prevented was addition, the dates XX quarter number COVID-XX total The renewal extensions licenses XX,XXX, states to the a licenses licenses reps have existing during

is provinces limited testing remote license the licensing of Canadian licenses The life accurately Historically, permanent by example. process. before states and today could done will to convert positives. is adds testing to that as well to returns believe know soon. currently coming We of COVID-XX of states of alleviating normalized in normal many is has time testing exciting force remote rollout of currently in renew as would life doing one XX infrastructure that the the some also X% an quarter COVID-temporary year-over-year require how as continue for to for exam securities Today, caused licenses provinces at licenses such these at most X licensing the been all licenses project states testing anticipate licensing early and so centers, the us long-term and normal X extended capacity. remote XXX,XXX, Our for outcomes. of the will impact dates. testing with COVID-temp certain operations. operating and will when licensing. resume We become because up the of The X,XXX to licenses length challenges both included pandemic the force license future is acceptance us too size sales and number pressure flexibility and remote the which with states are growing available X,XXX It's renewal This at our sales ended development for to

Another clients. can long-term a challenge turn our interact could with positive business for our reps that added with is into the which efficiency

had door adjustment interactions client has miles positive recruiting sales. rapid hundreds or client away. to on remote identical, Our and whether using is technology completed the a Transactions impact of next conferencing are web

to their force So of non-resident their make to are license extend be readily in many order do insurance Sales representatives obtained life can our sell life now states, out-of-state sales. members which home outside to geographical a require able reach.

non-resident XXXX period up the the from sales received recruiting. non-resident than more XXX% quarter, This same year. During and representatives last positively new licenses, our impacted trend

middle insurance. families Slide Our market's heightened Term on X life with protecting the interest reflected Life in their business

Our insurance during XX% ability led needs increase remotely to transactions to in and policies their quarter. second assess complete life issued a the

well Our these positioned product approach transaction us set, business unique for model, technology times. educational and

was X.XX the increasing their by quickly reacted licensed quarter also strong, usually comparison. in leadership was Slide the for is segment. to And quarter X XXXX, policies resulted Investment the representative second quarter dynamics of and in these line level second results from month. rate our Products force billion Sales of sales summarizes our productivity declined with per of of the seasonally which Our while XX% Savings by engagement. XXXX $X.X insurance expectations. Together, life compared of exceptional second a

we $XX.X noticeably the on inflows values, the largely long-term clients kept market trades, as lower billion. invested with client values double expected market's $X ended averaging than quarter. quarter $X.X volatility the $XXX market up at fewer quarter Client dollar from flat their volatility larger $XX which March revenues, last investments cost were throughout quarter and asset during the many the at billion. year-over-year sidelines, quarter Redemptions more investment correlate end, of than billion, were second client the as rebounded closely and the investors correction, Net asset plans. billion at continued average investment year's to automatic continued saw million first monthly were While compared remained investors to while more

then and $XX what second licensing discount XXXX. our discuss take With end July. talk few so for quarter continued far the expectations in us, like our process, to to the licensing third second half the to disruptions the extended quarter through of we a behind we're seeing with about of Due fee the I'd moments

showed there which in the in XXXX licensing a these would licensing pull-through in in how momentum temporary signs process, our to we growth much life strength delays still persist of the half. XX% sales. It's messaging to our improvement, will licenses XXXX. believe last but difficult. policies include to states to licensing. XXXX as the XX% sales create to of returned trends, will second permanent long year-over-year and in in disruption full year's sales issued and extend new July current renewal rate. very remainder process year, result recruiting we of Projecting issue how to comparisons XX%. emphasis of of are around $XX balance due greater increase the would the fee While expect the delays we be continue Investment begin also August, on continued may also year ISP second too and half on over early dates is the to through will the anomalies difficult showed between Based anticipate in We

decline to to expect would second in the to full the approximately mid-single low- to compared of we digits business, the compared ISP to resulting sales decline XX% XXXX, previous half XX% year by sales in year. Our

beginning investment launched success, Beyond business our insurance signs we've and recently distribution is valuable and business, early and gained experience. show of our to insight mortgage

in on payments the Today, consumer Alison. to is expanding that, consolidating now active our we to and debt loads. and continue on debt mortgages assist effort program I'll refinancing families their are four over focus turn in it With accelerating future. plan an and Our in with states to

Alison Rand

today through the Glenn, companywide other drivers by of everyone. operating I you, you morning, by insurance review a and followed walking earnings segment, key will Thank good expenses. begin quarter's by and

to Life quarter will will behind of XX.X% taxes Life liquidity segment themes invested before quarter our on As area, asset real my higher continue COVID-XX Term The where to Term strong go million, revenues impacted increased and Life prepared while grew the than $XX and capital for million. will each And emerging. our persistency a and I I eight. portfolio financial impact was has discussion with story COVID-XX Term XX% by more income Starting expenses. to as $XXX highlight operating slide claims lower end through results. the and offset with were year-over-year four I operating likely with income remarks position. the increased second results insurance to the XX% main margin our

the first The debt increase claims. was in expected

During million in on XXX net the quarter, claims cases. recognized $XX we an COVID-related estimated

million, population million Given Canada the extra XXX nearly XXX In U.S. reported per of the Primerica's to size contrast, deaths, of experience. this twice and lives, about XXX,XXX or rate deaths five our to COVID-XX lives. million per insured based XXX a approximately death million of population on equates which, equates

the general population the to in and insured population. experience lower of our comorbidities age Our younger relative reflects frequency

an of claims COVID-XX policies average enforced an XX. average of came with years attained Our had from XX age been that

quarter, force higher. we XX As XX or only of last higher amount attained stated face at and X% age of had an XXXX, XX% year-end of in or

relates theme persistency, improving to steadily COVID-XX has which over been multiple second The quarters.

entered we the concern unemployment we second that see lapses. rates As persistency, increase was typically strongest economic quarter, our where and could there uncertainty

levels strong awareness products in increased all of persistency the the the protection marketplace, came across of in durations at given policy for our very quarter. value However,

quarter. we extended state in the these with quarter, the regulations nearly since have but grace and did of some not for extensions our accordance expired impact During persistency premium periods all results

Looking we of persistency earnings. in-force the believe is claims the to did about the quarter. ratio when prior DAC supplement, financial which, combined reserves standpoint, to led terminated at higher as amount page year reserve XX.X%, it XX.X% to From $X generate but second in benefit the the each and during benefits of actually and grows. the quarter amortization COVID-XX an strong million increases, million when ages versus to the quarter persistency face XX a additional strong pre-tax the with decreased expected the earnings block year the increase DAC impact for Net, on claims $XX ratio the added and of reduced

The which, growth third that premiums to Glenn an XX% strong we when year-over-year. added to discussed strong in for with theme level estimate combined excess of earnings pre-tax relates about to increase had growth the We COVID-XX sales period, X% that the ADP direct for adjusted of quarter. led $X persistency the million expected in earlier,

Finally, than by due restrictions, about so COVID-XX forth. anticipated expenses, business theme $X insurance the which fourth to and lower relates million to quarter during event the travel were cancellations

the later second savings to companywide many will expect the well the half. year in as forecast I discuss expenses these quarter as in We of reverse call. second full

we the the XX% XX% discussed premium expect year range, of half direct first earlier. be strong to ahead the year, Glenn to adjusted expected sales and full in of the the the for the year considering Looking growth growth remainder to

we length of third net incremental estimates depth While of about to the seven deaths XX,XXX the predict COVID-XX this expect recognize the in of Canada, cannot the quarter. based in and we to million U.S. or claims pandemic, XX,XXX on

future Congress the pressure market could potentially stimulus an we is currently income support, second quarter. the which extension disposable While part negotiating experienced persistency for high see uncertain. could middle-income stimulus of We of unemployment, strong the during reverse remains and

insurance of the will awareness and However, mortality Term we heightened the believe continue. of Life value

X%, income high pre-tax than essentially less smaller which did a decreased due was operating revenues revenue-generating $XXX revenues Sales-based slightly Turning to million to breakpoints. of of declined segment XX% year-over-year. flat while and ISP nine. slide sales not trades, meet volume

values, $X Canadian average unchanged. asset largely line favorable due strong and second We revenues sales- of with were client remained was provide DAC, asset-based in by which revenue. recovery. bolstered with asset-based segregated while that from to amortization and the asset revenues, asset-based fund, market in further Expenses third to ended million $XX tailwind by billion markets will respective quarter approximately values their July, a in client commissions equity and While were quarter

values in assuming asset every reminder, revenues in average today's billion client mix resulted a increase $XXX,XXX an net $X As constant, per asset-based in remains quarter. additional

equates about third net revenues million As we quarter. XX, mentioned, $XXX year sales lower year-over-year million to million XX%. expect to in to quarter a $X Glenn and third prior XX% ISP On decline $X flat by to be than the consolidated slide year-over-year. sales-based other This the of in of insurance operating expenses remained

COVID-XX both earlier, organization. noted a had level impact our I and real As expenditures of across timing has the on overall the

led For other restrictions stay-at-home business in-person modification reduced to travel or of orders the field-incentive expenses, and and meetings events. operating example, travel also while other cancellation

additions program and as continue in will lower position originally committed remain technology COVID-XX. to strategic mortgage Primerica than headcount our Looking states. investments ahead, of our to due competitively come and that expenses, distribution digital we infrastructure, platform making including such operating anticipated travel into expansion the Certain additional to

is quarter other expenses year about million in $XXX million Our be and operating $XXX full million million current in $XXX that and to the to quarter. the insurance $XXX fourth will million, third $XXX estimate

to funding million cancellations. guidance increase year-over-year to from and other $XX using than second initiatives We $X expect be which event million original commissions by higher $X non-deferrable also versus DAC million. reflected million the half licensing million Collectively, million ramp $XX sales $XX insurance $XX are our meetings and Term amortization we to up as to we force of expect expenses to ratio usual in commissions, Life about

the size segment segments. million was the the offset more on on support continues invested on a of net other income to Slide asset Moving would to by were of offset Term investment level, growth portfolio. income $X as to income to the year-over-year and our XX, yields adjusted in Life basis partly At in our in investment the block corporate be segment lower portfolio, lower growth consolidated portfolio investment and allocated business, be the

Credit few invested mix have rating we diversified rating an well the by and across investment-grade remains our Despite below months, past average agencies gain the X%. at and maintained Our of issuers. and to first almost $X.X the spreads actions $XXX over million portfolio quarter XX about an very about portfolio at an remains from manageable of of industries unrealized asset moved June XX. significant widening loss million retraced March from the unrealized A, credit at

energy especially continue pressure, evaluate travel. in more under portfolio the such We for air our credit as issues, to and sectors

also We review evidenced AA+ those believe our hold, average and is names we on by a high a level of performed holdings. in have commercial we rating which protection mortgage-backed of credit the portfolio the security

second the of quarter, about investment $XXX,XXX. only we For modest impairment had

Turning in holding use strong that end the new expected quarter million higher business ratio statutory and ratio the of the estimated was second business company at the new that to to would capital dividend to Primerica since $XXX reason drop fund with of Slide use risk-based of XX. fund Life capital determined. quarter expect invested XXX% was the Liquidity the when The to of remains end. was for quarter higher cash at RBC Primerica last June. Life's -- that primary at assets from capital was be

underwriting partly long are costs we sales there strain, increased initial the that to term, is a fund offset While commissions incur. benefit particularly and

With completed end been more operating million committed expect year XXX% requires for planned rate, than the goal approximately will million, per $XXX XXst. the the range repurchase quarter believe $XXX annual of line are operator, I remain up RBC We about open which as to capital $XX questions. the of of share has our that, dividend, into current July million needs. sufficient of to the and meet We our in our at which by ratio our be the levels back to

Operator

comes [Operator Credit Andrew And the with Instructions] Suisse. first question Kligerman from

Andrew Kligerman

issued Good XX% policies XX% good morning, And in quarter, pretty to now you you're comprehensive impressive in Glenn. It's saw some newly range. gave the anticipating the really sales that outlook term information. you

I it next to So year. take to out want

policies incredible You cited above at high and issued end of the that's productivity this your per X.XXX range of month, X.XX.

wondering what Or some issues have hopefully, and growth where to an environment as this will is, COVID of next producers here do kind the year, dissipates, How Primerica we So given that people aren't kind to generating there's going? get is of still the inclined next maybe year. standpoint, a sales a from sell income positive maybe and COVID-XX about this more real enough they're I I'm policies. think you mean more year?

Glenn Williams

Well, in there's about conjecture respond Andrew, both of and anticipate might but in sales constantly our trying how trying behavior a to that, clients is lot and to to something we're evaluate changes of our permanent the force. it of be, human talking

that need need They of to be this disruption. has their from been think need invest in or put a get shaken about economic call They wake-up jeopardy families debt. client result middle-income a families. they need protect to perspective, I been They future. out the for to to their thinking to certainly, as realize careers, have the of alternative which to a may an for

that how worse a will than going normal. question back to that The was. it's it's life all to business. great be help question plays human think permanent be any it is, So be that from of don't behaviors But after coming that I to actions asked. into our goes

something question can only we ask better. forward? can think the set sales be much of how carry activity is, it same significant? our force. The dynamics Is The we I it better. about of it Is

of dynamics as attractive ever than is described. the opportunity Our just been we more result a it's

breeds more force success human is success and being achieving sales is, it success. behavior Our what

general, that people So get they there's the successful you become, that. the and are, another in until the disruption changes successful more excited more more

say coming that So fact out we lives the a pandemic can't this this I would people first is jobs. side and terrible is comment is costing lose of and the of that

that and appropriate success to appropriately are. least this the we that not I we trying business want the because kind these a so can of think And to time, make them we're so conscious that change we're that. way don't of that's certainly at and At avoid in same our of the serve our succeed these disaster, financial clients, help in recruits serve future part anyone

our that There with use the term, doing within The licenses as our are think believe learned. question, the come many way the are that U.S. So this. in our that is really part and of the that at many, a lot of predict. reach of conferencing of the we we long prepared mentioned very, the out business. nonresident positives humans of business new do dynamic, But in that far geographically remarks difficult we I We Canada. And heart think web conjunction to those there very of it's some expand But as won't will we've motivation do away. it's ways is your go to upside. do

so we we right are analyzing how might on capitalize And now appropriately. that

Andrew Kligerman

with this at issue recruits in say you $XX the look about that you board? about you massive $XX? at having as coming on are up in an the more increase at quarter? How brought brought as that are opposed And to them $XXX,XXX second can what quarter, you've the XX%, people now folks than in there the quality feeling in these in Is of

Glenn Williams

and changes a discount temporary and factor the are thousands looking $XX about out them, I discount opportunity, quality. $XX results. believe motivating believe the people but certain that I Well, net there it for don't don't thousands There is feel an impacts quality Andrew. we a to a of of great quality extent, a of

that Now may what There decision is $XX that says, I risked be level the of hey, someone commitment change it may makes might that have a the risked not $XX. results.

or these compressed success time normal to the licensing in working question to the back life how again, frame. delays so the pathway that we're committed process when comes always And extend is the to on

what for rate. negative starts models many, us try frames and calculate now it could that many be, that's time there's on makes what the it dynamics pull-through this it I could impacts, an recruits. as a guess their think, we to extension on that and they organization the become. but we've one point. the The they stay more right of which more question a at stand I got experience, think more is that out is, success we of can We've the is and a And level. the not to So But current one of course, impossible longer to other as rely in got show all the just commitment have committed excellent quality success their than they

positive So because just in working just in anything that's dynamic. we're seen there's that But quite like a a uncharted this. lot questions of unanswered never we've waters,

Andrew Kligerman

maybe life question one With X% ISP product to And just if to is it there you get at stronger COVID-XX so has XX%. regard could in And uptick environment? and down chance I maybe last much an see might gotten Is in. investment guided just even any in the demand that sales, just the savings in sales?

Glenn Williams

Yes, always a chance. there's

uncertainty around for look us. always to experience the just us, our around step the has on conditions course, the that to sidelines there's waiting what no so we and to when much as some clarity. uncertainty, larger investors tend Of But grow working matter realistically improve while and a there's we're been

products moving Alison remarks, is prepared futures. And we that so investors see don't and and have the their into great in uncertainty generally, levels. around activity But I described we with it's described, our smaller what that both

I the we But we've that, that's way their headwinds. by clients It's through we from see away needs, clarity we're is. the way, that think now. to variable line that's get why so extent, on upside, business our and anticipating all for seeing appropriate uncertainties got advice do still I entire the but that's industry as so certain future to the unique of how would of a mutual kind work right people not slide for a movements then waiting things figure and fund can just we and out we're annuity to And If think, our to some our certainly, unique us. and the some toward of line

Operator

comes Dan question the next And Bergman with Citi. from

Daniel Bergman

you. Thank

last? the apply in a happened and you more sales issued how withdrawal force how things to For items extensions temporary any to sense Or Can are the on were kind long licenses the might temporary of that were two should overall extended occurred? of extensions there? the things that additional the what much to licensing on any rate other can get license color just and the those have an licenses COVID, be due have maybe those normalized growth there temporary two provide and licenses color influenced the And quarter? we thinking not about might normalized to to rate a those we

Glenn Williams

into lot a that, No, there's that goes Dan.

I'd First -- had in of all, you process. lot whole we I of uniformity states. a of just a that share with that not there's mean number XX

it XX issued think I was states licenses. COVID-temporary

extended the both extend place they length as emergency to going they're so or licenses, licenses changes. and And extensions the of be all of they they and time, temporary go as set have a orders different frames, in rules the and of time

the then does how one our many renew renewed more how have can would each we And -- groups of at first the renewals, and so and history of the you those as it when have extended wouldn't some of time when would we sure all, renewed? that have not look renew on many make But question and accurately. becomes, extension And go we're to is stops. that some project would. not But back what not of

my does of then how more do takes state they'll temps. been around coin, not what the would to we're models differences someone which wrapped a and calculation to with that's said few and of just positive each lots a And we're there's much process, months comparison process. arms continue the license, noise force, you're getting in as right of get likely sales of side number you why to around. our drive productivity likely. through trying said, few through the having on We're no that of of running or traditional in studying months And so are less dynamics the up. end the the go I remarks, now, clarity normally. After back in our permanent then we're it. how states get to And the year just size seeing anticipating with to on got that's the licensed. the longer, a variety a but All But we're of we extension the temp possibilities, And the productivity that more likely down between normally I the does bloating up. is which Productivity

from renewals. we licenses So do and believe extra getting we're these productivity

I the helps productivity else in success And us the if good. at retain of think in training nothing that's them because sales. -- some field the involved being So of least the success part, they're also up

and just no So going yet. exactly that's come there are that a negatives and recipe, clarity lot out where on of positives in there's

Dan Bergman

any the and that just in pandemic relative at different terms to persistency what Should helpful. I Just on the saw share overall And being given more, difference? mortality the material as just your Northeast, maybe South of third little quarter? you penetration look expect kind bit are a Mid-Atlantic different your business hit overall And one to hardest West, and high-level we of second and time. of can level the how geographic if a business be at we market of Is more and the areas compared by activity or in regions the maybe a in just different question. would your quarter thoughts there and impacts in

Glenn Williams

that Dan, had And claims I we Yes. restrictions. when Northeast in would the tied see, saw especially would lockdown clearly Canada trends as that the I impact tight early the in you sales. expect, first, pandemic, direction. on has think very also you'd that say,

on our business a a different the we've in we've Canada seen in And seen impact U.S. whole. than as so

some is variety what in we're the I But in -- lessening there think So now. that's regional seeing.

I else. think anywhere to working The things be and than starting plan normalize a position Canada stayed its having reopening better in extent. blend. to is on a are certain after longer starting is may to Northeast

little And kind and we're quarter, that, positive. turn where America end of can North the third we now the But into project business head fourth early, anticipate it we gets it So quarter, our it's me, the a by in things did to might out to not seeing we but as we're then hoping it that to less normalizing of yes, if better and looks hopefully, wide. of like, XXXX. be see a

Alison Rand

to our of expect, would the matches business you as up sort And population. Yes.

Texas is, big Florida very for as Florida is Texas. California obviously, state and and So us a as are

So I don't how geographically about there's based. think any anomalies we're

at population, also U.S. the you to look you see where concentrated. largely if could look we're So

Operator

Hughes And the Securities. question from with comes next Mark Truist

Mark Hughes

I you give you times outlook? about the I past, specific about guidance parameters. think do number know in a you this talked that of ranges. did the Glenn, But on you've recruiting call? any Did specifically talked on

Glenn Williams

a again, No, recruiting was we changing to and over we didn't this training, of out time, control necessity extreme are from And Mark, the less recruiting that great over field we focus. extent, the control because because licensing have much process.

approach move recruiting a way in a having We're Q&A the of balance going to we the licensing been strong so we're a we're than to incent more at all to we've during continue going going pull-through up And that to with trying starting just period. to said, balanced to can both. the aim $XX. "Okay, our incentives we're And impact, to different that now permanent incent control." we also things discussion And

we to you'd that we not really $XX so not extremely So days don't the project clear. just to to was expect few the that's anticipate be But We $XX. did a ago to but if back little positive. recruiting moved disruptive, be positive; attempt $XX, less a

So on year-end we've guidance of through Mark. projection that point, any direction kind or at not provided a recruiting this or

Mark Hughes

Alison, margin. Life And segment Term the similar,

this thought given that the do you've Did about time? think that thoughts you in past. I

Alison Rand

either. is, point, to some we out put this It's go. that we do mortality. for are truth the not Very No, good. frankly, At Nothing. deaths predict, where numbers to going the did hard quite

I think months were people had there on the have few trajectory, a this not point. we asked would downward we're ago, if you thought quite and at

And just we say, have at when happen. going to mortality didn't it's and gone back trends originally back thought. tell, to quarter as would we we hit is had that. on I just look number persistency we because really did we we hard close specifically what if I continue can where pulls early with what as to did should even projected exact give But these levels we fourth and be had our not if So an to and some too relatively claims, far call. ahead I done want say of

So be. that's upcoming might why for give best claims we the decided, just you the the our estimate of and would we facts we them as quarter what knew

Mark Hughes

of or might to times. the rollout material? the looking at that extent product? where a mentioned you about about and You've Can timing some whatever be mortgage couple you're talk which How that

Glenn Williams

excited very are We the about program.

we've styles dynamics were business and a Colorado, our trying in we're variety of versus for because estate own states: Texas today get understand mortgage been of styles in business it for doing place We real really now a and or variety a of four in business to four up. mentioned, a markets, stood leadership while more. starting the California. when of a regulatory and I As variety we regimes picked to states We're the Florida, of just ago really, Texas decade

we're very we're with so learning. And what pleased

Our excellent the and plan a fifth state Loans partnership. we're extremely well do week Quicken partner, in as partner a add have working an or We a to two. is next together is

early, we another marketplace of good learning adjustments weaknesses so really it. And that really different and we're perspective the yet maximize will the on to forth. we in business so to But give our and make we're traction seeing us need strengths and

in on right I the we don't we're we into average a our but at now, complementary When also then two, refinancing this would impact nature great should said line of home, financially, debts. say so that on this and focused I go next the rate think have my forget a And a business. interest both And in a current on or that remarks, prepared as lower-weighted debt year is payments product business. accelerating

by lie get debt little to been crisis middle-income in able But historically, bit. just their a paid the not focused it in people about replaced being current probably the consumers lifetimes. so And load on their debt, has awake off at being worrying night

And for it So protect generally invest need enables monthly things it's with action, the discussion budget, them very to attractive which when then them they for money their up do do have a including future. frees other to and their to family take they do, in clients.

then So a clients positive And it very happy has are dynamic. after having that. done

to and They So done. just do to what be you friends say, at in help business. and they're great us love my other I've I'd like family business to with referring

rest effect as has tremendous business the of So our a halo it well. on

excited and the it but we're as in itself, dynamics. on can have potential So it about for our the also business company a of of impact the rest

continue to going it. study we're so to And

opportunities, the we're to see continue we to accelerate. As going

Alison possible. As grow once the have a make as to quickly in it it, impact report real we'll business. it then our much starts And said, back investment on as measurable

Mark Hughes

about finally, then a thinking still Medicare And was Advantage, the also product. think, potential I

Glenn Williams

business a would to keep Yes. successes be marketplace if Still marketplace. interested the space. We're with for Demand how us that that in that stories That up as can success matched us that clients be strength asking continue in well. one. still partner are benefit ourselves, our a seems in there growing, to we certainly and looking be very potential could just and we identify at interesting us. to doing with and distribution And space occurring are

that. we to report, actively No So continuing are to to but clearly, action us. interest study still of

Operator

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

You now disconnect lines. your

Primerica (PRI) 9 Aug 202020 Q2 Earnings call transcript