Thanks, Marita, and good morning, everyone.
on second profitable to more our earnings noted, double-digit Marita improve to the progress return growth, the $X.XX will generate demonstrated core As making consistent initiatives drive are earnings of long-term ROE. we and together clear key which quarter
some cat are underlying with Retirement to risks. third segment line reduced that profitability reflected That we results closed quarter, transaction. the quarter. to X, Overall, the on losses announced strong, transaction in our also July on rate we interest with year the when used guidance. purchase reinsurance in full P&C In the that was reinsurance were transaction capital results that reinsurance new acquisition and supplemental begin estimates exposure of provided the The very so provided we NTA. will the consistent reporting the we our
after-tax items RGA, booked a transferred We realized in to I'll on onetime that were investments the that gain minute. review and several we recognized $XXX million
up the was environment. grew unrealized result, unrealized the XX% a portfolio gains, on reported interest rose As as retained value, and given book X%, gains excluding book total significantly value rate
quarter. which and moving dive XXXX. into offer more will this our segment to has a guidance for I our results review P&C I'm Life additional few parts going Retirement, also I insights to before
As increasing we $X.XX. modestly the to in EPS noted we're guidance year XXXX release, full our to $X.XX
ratio $X over earnings segment, and with year, lower the the beginning last were the XXX.X% million of points of $XX reflecting core improved reported XX Property while for points. million combined over Casualty cat The losses, X ratio quarter, combined improved a loss So versus underlying last year.
will half of the the noted, delta the as likely Marita strong year in be underlying half very comparing year-over-year XXXX second to moderate As we'll a second result.
factors we actions underwriting underwriting better very on due returns by implemented underlying other performance have P&C underwriting our driving in primary alternatives and to increase increases strong income rate a complemented were The was XX% portfolio. performance. investment the The
was The book. single underlying the of seeing improved We're same quarters. In to combined averaged here trends ratio recent in increases in just we the as across auto, auto increases For points cost. to X.X middle file ratio ahead quarter, us keep the over combined These the XX.X%. to digits loss XXX%. the rate continue
somewhat Severity to historical compared frequency remains is moderated although elevated and lower. levels, has the of the increases pace
the expect We driver will basis we profitable on remain XXXX. underlying an of ahead is be of in for a underlying key auto objective and year points to a since Net ratio improvement ratio improvement the of that our cumulative ROE. X of loss full
tied ratio reason geographies to weather In primary a rate for past points cat higher Property, ratio than and in over X cat and increases Homeowner the improved years with in improved points the many the loss contribution we X.X the improving XX were points. few saw the underlying almost improving more profitability. combined the non-cat the quarter,
We underlying to full X-or-so expect XXXX. ratio continue to the improve loss over property points year
believe year. in is we above but In business positive are the Overall, accelerate from targets, key expect premium beginning rate slightly are retention low and see we over single-digit in trends that to net time. increases drive written for new increase will in total, our will XXXX, a down this geographies profitability
with Underwriting divided favorable expense releases, our The results auto. line ratio benefited evenly was in million and in Property between from $X reserve XX.X%, target.
line cat most XX the the expected, of range the year our $XX of we in were from year's for points we we're X with on late million the about losses That's losses a half provided what across QX in for update XXXX last full June. million had and, cat ratio. at With about half estimated combined cat losses country storms full to quarter in X.X on first guidance year losses. in pretax, second spread than lower $X as track million, of $XX cat to
was Our losses. half pattern typically result the ratio strong total see cat XX.X%, in seasonal first the we the a year combined of considering for
auto the and Our in underlying target high for ratio underlying for the below remains XXs, ratio the ratio the P&C business property with an XXX% full XXs. low combined combined for year the the combined in
Life the Turning to segment.
quarter. recurring Second even strong quarter year's second premium were products with sales last of
Our continue sales can continued their work we growth. help see and more to how expect to life the insurance customers our agents families, to well-being financial of of contribute
with year. result core investment As earnings million were $X.X compared a last lower $X.X net of million income,
expect to of continue year, For to excluding the double we with million digits. earnings, sales year growth the full in DAC million, $XX $XX full unlocking,
turn details various with segment, the our of transaction financial to being the want I walk statements. in to reinsurance the Before through Retirement reported RGA how are and I the aspects
with variable of earlier morbidity transaction capital-intensive for X April rate which effective this modified the for rate minimum the or transaction required which XX% risk annuities XXXX transaction total annuities, particularly individual was way up fixed coinsurance The accounting accounts to about ideal NTA a approximately consideration contracts legacy $XXX an are and that deposit for redeployed primarily represent into mortality was block agreement annuities, treatment business total, into a higher-margin make was taking written the method the because structured as The XX,XXX annuities in that separate functionally investment capital was the and our for The and of The million, the X.X%. released address do crediting remainder. the how transfer business. The of is interest risk. was the annuities not the coinsurance was. of
consistent terms, On with variable return. assets agreement The are be the being deposit annuities the offsetting fixed investment liabilities. continue reinsurance. while balance asset remain reported separate receivable reinsured in account quarterly, on sheet, to in an total will as now accretive The will liabilities reinsured a annuities with be will included the along reinsurance the adjusted policy transferred
policyholders results annuity net operations Total is based to are the entry On the the all related includes investment Fee calculated variable reduced on income is annuities of offsetting accrued responsibility and related flows to from of charges RGA the an fees investment income the statement, the accrete is for reported, Interest on the on to block accreted not assets. asset deposit income income for reinsured RGA. transaction annuity cash which anticipated by the to to income, ultimate to transferred block. be and the credited effective income. from continues reinsurance the specific based the yield accreted to on reinsurance
illustrate block, investor of retirement our results showing reinsurance supplement, we the more metrics, the are ongoing In of clearly some operations. excluding to the
onetime several core transaction the quarter, had not associated also that included significant This are with in we items earnings.
gains of realized to trusts that was the investments after-tax had First the by million transferred managed dedicated on the $XXX RGA. we
million Retirement was with write-off Second the legacy of goodwill $XX old associated segment. the
write-off offset unrealized excluding these X% as the book gains. value, portion of As a result realized a of noncash gains, items, two goodwill rose the
traditional annuity portion than $X.X lower. a billion we've at fixed XX% Turning XX, assets management. to and minimum the had of annuities business, we of in of the rate crediting the retained under Retirement X% had More June retained fixed
crediting As X.X%, a from the result, to our average X.X% rate fixed before annuity transaction. down dropped
We of variable and also annuities. million have $X.X annuities index fixed billion $XXX of
the sales assets to financial administration Annuities and products. $X.X deposits this were again important under in our growing assets an addition annuities, X% be they income. suite Annuity fee our our of our business, fee-based educator while quarter. complementing generate recordkeeping as appeal continue advisory brokerage, In to billion product set include which customers part of to of the of objectives up
rate I'll deferred basis for the in net with annualized XXX quarter, the from retained points lower crediting block benefiting average compared but XXX low the talk the spread points first more spread be quarters. was The interest in net XXXs quarter the on basis the annuities. fourth expect interest rate interest a about third environment in we in the moment, of will and fixed
earnings, unlocking primarily due of or quarter included the $X.XX said million transaction, reinsurance write-off block. what retirement $XX DAC is the in write-off million the when announced Unfavorable excluding with to reinsurance we expect million. XXXX This remaining year with for DAC onetime associated $XX results. the we share balance was Consistent the per of full $X to DAC we unlocking, core after-tax
to quarter, quarter $X.X of in will excluding in the million the unlocking Retirement $X new quarter, of $XX.X third reduce of earnings capital DAC million segment transaction. approximately per purchase core yields. quarter the quarter by current in million $X.X for redeployment net rate at retirement in NTA core the Retirement Beginning from income investment earnings second down earnings a the reinsurance were million further first run about per because
assets these portfolio assets that the to our look assets support of $X.X the billion Life which align Retirement, and of and $X.X investment is So supporting the at with remains unchanged. Casualty. let's strategy, transfer remaining billion $X investments. After with of RGA, billion Property
million segment improve of With in over NTA, $XXX about time. beginning supporting the of addition the portfolio that process repositioning have the to We're risk-adjusted we'll also in returns QX. supplemental
was at down year-over-year X.XX% Pretax portfolio second to close years, prior the yield essentially was X the on slightly from periods. Duration in unchanged quarter.
the to portfolio The with available overall and remains spread-widening Our investment-grade allocation will portfolio future. in have improve liquid the quarter new a rate of highly consistent of rating in also returns A+. and the prior sizable basis of would was that The high-yield event. securities money credit second securities corporates, with be to continues rating was a XXX of in to opportunistically average This around periods structured event the an investment high points. redeploy very
year-to-date million of from over to returns the on investment $XXX alternative June at Retirement. with $XX.X $XX led portfolio was million net up P&C XX, for income Income investment Better-than-expected was fair investment XX, and million. value The March returns alternatives higher about portfolio the XX%.
challenging increase this environment. in to asset continuing the to response We to yield class are allocation
XX yields, will reinsurance environment, now interest reduction of pressure and even Fed the more the anticipating rate basis we low are a valuable. point transaction The sustained further making recent timing
new We rate X%, our portfolio second be now expect of also yield. for the current year half closer our money to the to below
million income XXXX. portfolios, around $XX $X rate income be or QX. the on managed reinsurance We minus, The on accreted be $XXX million plus the for investment for of year asset million, investment expect from net including reported run go-forward full should NTA, of to the deposit quarterly within investment
million with net roughly a guidance line investment previous $XXX should our full be the for As year. of XXXX income total result, in
our results. back Turning consolidated to
about to P&C in morbidity-based should will earnings Mortality- represent cats. and said while Retirement XX% of in XX%, we June, grow normalized about to XX%. forward, As businesses going declines about
while range. to we core increase of the credit. core should interest each EPS fourth $X Supplemental due For $X by per $X.XX segment the of rate with million quarter, run quarter the expense quarters, are will earnings XXXX, about the to and the to in comfortable line corporate to million $X.XX on expenses add new million third In $X additional
have current X, was noted as release, debt-to-cap we $XXX of the our and on consistent outstanding ratio with ratings. the in credit As August of our million XX.X%, line we about
All XXX our by subsidies above or our at target RBC of insurance be year-end. will
on should continued of the mix P&C digits summary, growth of higher and discipline. business several sales profitability expense leverage benefits ongoing move years. In including our retirement improvements, underway, improved closer organic products our accelerating to initiatives Marita about in double spread-based initiatives talked next fee-based and the ROE over the to
even million and bringing rate forces ROE. benefits also together continue operating X.X beyond and about products NTA's distribution Horace incremental after-tax $X of XXXX. the We point will adds run expect earnings Approximately in to Mann's
some All Horace excited about to efficiencies also generate capital. we in, our excess infrastructure. combined Finally, synergies stand ability gain to Mann's we're and through
that to on uses. for includes a conditions warrant. This focusing compelling when growing our opportunistically at returns shareholders targets, of via back the earnings returning intent portion Our significant annual our shares above business capital and ROE dividend or remains market back at unchanged, most buying accretive
Horace improving ahead an stronger, with increased shareholder diverse Mann moving even level capacity. We're earnings is capital-generation with of more base and ROE. value driving an
higher-return less needs the staying market. our into of mission, the are businesses to fundamental redeploying education We capital-intensive serving true while capital and
the future our continue, expect holds Mann. Thank we're about and We will progress for excited what you. Horace
it over with Q&A. to back And that, I'll Heather turn for
