MDWT - Earnings call transcript Q3 2021

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Operator

00:02 Hello, everyone, and welcome to the Midwest Holding Q3 twenty twenty one Conference Call. My name is Charlie and I'll be coordinating the call today.

You will have the opportunity to ask question at the end of the presentation. [Operator Instructions] 0:18 I will now hand over to your host, Tom Bumbolow, Head of Business Development of Midwest Holdings to begin. Tom, please go ahead.

Tom Bumbolow

welcome call. Holdings and twenty quarter afternoon, earnings one Good to third Midwest twenty XX:XX Tom Head is This Bumbolow, at Midwest. of Business Development

me issued Minnich, our will Michael Joining Officer, release, Georgette President presentation announcing Co-CEOs Yesterday Financial twenty today's Founders, evening, twenty XX:XX and earnings Midwest and be Chief Salem QX well financial as our Mike results. Nicholas. as our our and for one

the can investor will we this a be reference website found which https://ir.midwestholding.com. on page During today's call, at relations copy letter, our of of

to forward-looking that will While that our this and Securities also information today's call financial discussed has call encourage related from statements will Business remind based obligation you performance, XX:XX on and no reflect with opinions XX-Q, this undertake assumptions. we outlook, of statements management's a information call, and we result date forward-looking and form of as I the as Exchange new current document, revise Commission. financial include about matters items of within this beliefs filed performance, our through to Before reflect to comprehensive our These for to occur. that differ may that expected been more materially are uncertainties various operating results subject Forward factors looking we read are which and you those goals to the which other developments want our today. could risks actual statements described our and cause XX:XX to from begin,

our In number risks results. business addition, of impact may and that are financial we significantly a subject to

our discuss I be A you available we'll replay of under during materially non-GAAP results XX:XX Midwest see the form the performance. to our on of from investor measures also conference the discussing like remind call, that section. that company's differ some our risk actual where a in relations For call you the would could website this once will will factors factors, please description statements. more review cause again, detailed discussion to of XX-K

You our the Salem historical of the turn quarter. With measures measures GAAP in to in release can Michael earnings XX-Q. over now results reconciliation share XX:XX to third find the to call I'll Michael? those in the nearest comparable that,

Michael Salem

good for Thank XX:XX you afternoon, everyone. us today. and joining Tom Thanks,

to to Holding quarter results. you report pleased be are We with Midwest third on

We continue progress to we making the be the are proud company. of in

asset are We and distribution, operations. aspect each business, products, management, executing our including across of technology

that achieved We year When positioned track well on XX:XX growth, twenty double-digit with finish the growth. for and solid years. hundred are to is line twenty performance this out top year-over-year two two have last one we future will growth we expect premium set a done, and over percent that's

institutional we exceeded percent expect of relationships. will production, total reinsurance We of our that eighty upwards three

of target, short will and short doing long-term ourselves premium approach. growth disciplined sustainable will for ours growth. forecasting our are While is difficult fall company twenty term one work While we important remains we competitive, twenty maintain the a market like we for high our position XX:XX to

products service technology operations. We customer with have profitable strong leading and

I'll And enormous we time over our straight happen of opportunity. in at a turn and take the isn't We that, with don't and expect in market line, it to twenty supposed Nothing pass I share perspective. XX:XX points term ability over reach long to of annum. put in capable our about to less to right be committed, Mike, It to and success but the aligned advantage premium things billion five of two doing I to right our market to ourselves a we Mike. some Before have what annuity easy. of individual with are we Our are basis to place than dollars is is confident share easy. minute want this per the our XX:XX target take we're stakeholders

Mike Minnich

Michael and afternoon, good Thanks, XX:XX everyone.

agents year build well our and geographic fifty launched expanded reinsurance as offering. solid as the continue our an almost with invested footprint the reinsurance XX:XX innovative successfully commission percent We of we in last and capital six capital reinsurance percent our our returns. to product strong new asset products, In product, foundation, side, broadening by insurance and in we've growing the channel the with our and alone, and free have our by On reach fifteen partners asset entered products RIA alignment on insurance our solid

side, deep a Additionally, bring investors a syndicated a our innovate we relationship management with strong distributed income pipeline. institutional reinsurance will to institutional managers reinsurance for asset product and differentiated asset us to that both income individual we product multiple We developed investors. continue be pipeline a that built of have have XX:XX a income new asset On product.

Going channels will distribution accelerate new growing and continue our insurance forward, innovative enhance index and products, including geographic we acquisition. adding to options, entering footprint, which can income we through our

this as CFO. now of financial XX:XX to and operations, Midwest our with Georgette. we welcome our have incredible which with brings as joined relations. you. reporting it leader Midwest all XX:XX accomplish that, to team investor continue as strengthen and Georgette We culture, to turn people And were to to I'll her. and decade a of success thrilled in over will President committed and Nicholas, talent able of recently are who because new such We Georgette

Georgette Nicholas

a quarter joining XX:XX the today. at settle to here everyone and I'm twenty I point portfolio loss into to my The look with point as be increase three all five five pleased over of Revenue by million us dollars thank you speaking net Thank market time, for Midwest Holdings. company's twenty highlights able you, the the you role forward report with five on Mike to one. for revenue. dollars one point in of million third I million to financial from was performance, in from growth dollars the continued driven year. service last income in XX:XX down asset quarter, of and eight investment along was loss fee an net

hundred by one nine to dollars were Our are the point million premium being the competitive down fixed and percent by Written eleven strong, quarter. impacted in market. seventeen annuity premiums year-over-year volumes remained but

hundred to the end one, third MYGA, Investment the period, two attractive included twenty investments were twenty and up quarter quarter December for in to two prior volume the to in gain dollars revenue point in point to million percentage two of last income bringing expenses metrics point ceded dollars fee of product and thirty Invested annuity loss year fee to team twenty the growth Investment compared income dollars twenty. premiums losses quarter the The to our prior three operating million to at XX:XX the forty one dollars, one of provided seen from and Service million six year. dollars uses excess manage at to quarter, XX:XX twenty. was third-party of was and a of the have credit Ceded whom earned Revenue our respectively. of purchased XX:XX the cash reinsurers thousand. the income on are grew to point five and asset sixty four at twenty to The million dollars hundred thousand point in service dollars flat third compared during hundred compared point assets four point twenty the mix. from net with And net and percent the to Net are for to investment our management fifty a risk bonds of two million two metrics management one towards the certain twenty yields some one swap and on well as profiles. eighteen us deployment generated as dollars and increase XX:XX and two nine our from that one point investments million hundred compared list of closer loans increased mortgage and forty compared business. dollars expenses other due hundred a eight investment clients of We twenty six total the of six of as reinsurers. return twenty million from of million quarter one third services nine assets derivatives in one the of million not prior fifty year. retained was quarter five four percent return thousand two investment of revenue six overall income for dollars year. to quarter million in thousand realized revenue monitor of for ceded income consist percent targeted dollars, embedded increased hundred investment

We are in were opportunities also received the one, five fees to million the twenty in on evaluate for of capitalize point the quarter million of twenty three quarter amount us. We of compared point dollars reinsurance, XX:XX in of front dollars twenty. third twenty to four third which the investing six

our will of million dollars of for dollars market quarter twenty twenty the million allowance, other management We third with along in expense and administrative the to XX:XX now two mark in compared expenses nine dollars one, general which salaries, three stock-based point non-cash these of questions. exclude G&A. Included one one non-cash of prior quarter operating the expenses, for and expenses the thousand for compensation line we million eight dollars year. mainly is open hundred option benefits our GAAP to and derivative point For totaled

Operator

Piper Sandler. John John, first Our Instructions] from [Operator open. your you. line Thank XX:XX now of question is comes Barnidge

John Barnidge

question. my taking for Thank afternoon. good Hi XX:XX

can are year? rate The the the new? first going reinsurance eighty talk and for relationships many CV you about of institutional still How are one, that three about be to comment percent hitting those

Michael Salem

occurred another the for third and them of we're quarter. already was purposes is here the So, in transaction second XX:XX American one in the Republic that expecting quarter. effectively fourth statutory transaction has It the quarter in

continuing. and is new be one would two that So

John Barnidge

twenty outlook And now about Okay. around to Thank from you. the how Can of six XX:XX talk influences seven we're maybe the weeks your given outlook sales then for double-digit that? through sales you twenty just away revised year. that growth that for

Michael Salem

Yes. XX:XX

sales, we work So for to continue are have twenty on two we the twenty build twenty done. one to that twenty expecting

continue respect us One progress some on With well respect twenty further delay our to management changes of XX:XX channels. to the expecting premium some of as and to increase for was twenty we're that expecting our in on we the get that twenty hindered twenty which distribution -- the say expect state two. are did but track back expansion. to production board as one to our thing expansion, We changes, with has

much MYGA the in RIA did while We don't mention fee we that an us that we for how produce. expect help to So, years we that know come. launched based will will exactly production that channel, do

innovate on XX:XX products new six MYGA indices So us new year this Additionally, has in RIA in good been past some as to channels on that we twenty the our successful for to continue well And situation did are should we're as expecting [indiscernible] area quarter launch in as year, put we add three fourth products twenty us. two. to products. a into continue here launch the mentioned, going

Mike Minnich

Yes. kind that. XX:XX just I wanted of to to add

Just the growth kind gotten very stepping to are John, but really that Understanding year, we as of second do expected a company. be we're temporary. haven't half consider of the with back, where we the that we happy we in

can do. As we and to the to there to long based that this term and reach Mike we'll mentioned, to get continue pulling is we Obviously, and something continue are management targets. board year. had scale delays levers premium changes state that are on expansion some of our a number We that pull

as be to comments, that that acquisition And in materially accelerate we to We more entire also successful through there's mentioned next year. opportunity process. expect our

growth, companies going opportunity a through were quarter and third rising in a we the The on the new year that way expansion. in state very there's products, not are going a and set. marathon sustainable business two competitive out environment to levels is year And believe XX:XX into, should really sprint. really was some we're outlook based there we the very I on of think say that launched coming to we're pricing. hasn't our seven our it all disciplined some step for this our is that be where industries that the we positive product. And term December stay our aid it growth is of we So strong like would necessarily be think opportunity for at Additionally, changed not recently long FIA but

positioned the we the is come. really well in are growth very to market So going and

John Barnidge

comment technology XX:XX around the Can up. we touch that accelerated, maybe that Is shells about brought really question thereof? last is or distribution combination the you capability M&A, a it is

Mike Minnich

assets forty a and is as if but mean right a something our instantly find that opportunity, kind XX:XX about Yes. of plus that move line, I spoken we'll nature That don't shell, know acquiring expansion. there just above. being would or license on be we're state that is footprint. I acquisition. capable that expands of very this the to look of looking we that we said, geographic analyzing big before, main something in think or really we'll distribution we're I the other an acquire potential may at think technology, be to other manner that the but all I But objective of things

John Barnidge

you Thank XX:XX much. very

Mike Minnich

XX:XX Thank you.

Operator

XX:XX Thank John. you,

Our next question JMP of from Matt Securities. is line open. your Carletti comes Matt now

Matt Carletti

Good thanks. Hey XX:XX morning.

be any means of kind you it have you others You QX? maybe versus you're into that all your covered help a if competitive market so during ask Is you to what transitory? a across just competitors you're seeing? kind seen it trying bit. on change in the than believe some of spots far a more but there will with during you geographies? conditions Is granularity can of what I I to saw QX get actions with you they John, lot Have more to kind of us what little in little what seeing Kind could of dig

Mike Minnich

I the to about that think on products products. for will it, our And competitive because is environment, Look, our for demand products, and our capacity reinsurance side that but the thanks model are seeing you set also the and for really income Matt. if right, we question, reinsurance a environment, up I going it's competitive think the Yeah. XX:XX to think business be

So we over environment. I for nature is competitive a kind a the on I mean business it around takes but environment you board. the time, more The that a competitive really exactly across transient thing. is not around It do month and an quarter, growth the of sorts is turn model positioned those a positioning is well year and it strong other companies it that takes within What of our be eye. one our think planning quickly, really of business just takes ourselves are

that So we done. do as example business. limited twenty channel something Growing two, now, very channels prospects that's an we going channels, just what and environment. within the into term the well in distribution that a lever into about to is can Right I then channel. expanding really pull We're is and continue should the build positioning to competitive we'll excited IMO very look we're pull. of channel something that long the we have twenty mean distribution one, that beyond we new as And out RIA has that we've our other that that as

think So, going environment. stay extremely competitive that we well within we're competitive, it's but we think to positioned

Matt Carletti

Great. helpful. you. XX:XX Very Thank

Operator

today's no [Operator further time, XX:XX currently this Instructions] have concludes At This questions. call. we

You may and have now disconnect your a lovely lines day.

Michael Salem

XX:XX Thank you.

Midwest Holding (MDWT) 12 Nov 212021 Q3 Earnings call transcript