Thanks and morning good everyone. Marita,
As Mann another Marita noted, excellent Horace quarter. reported
quarter to despite full a identify which we year losses. up earnings our these we to above time in the prepared EPS by month year, initiatives recognized EPS was sustainable expansion now We years, of our XX%, remain core ROE, going are a how subrogation to expect have over business range driven growth growth bolstered be $X.XX. share X%, with Marita our on infrastructure guidance described EPS last in by $X.XX. can executed diversified catastrophe almost quarter a to strong was up Third is changes and third $XX to core increasing We million in Nine we transformative almost XX% forward. in core to double-digit share. performance education results ways our XX% committed year create achieving likely maximize leveraging our distribution, second We to return strong by significant recovery. equity the Over be for XXXX market recent $X.XX market the actions pandemic-related will product, grow. this near to on full-year
unchanged, more their solutions to As with fundamental educators that meet always, financial them objective reach our objectives. help remains
Turning up overall back on higher net and to quarter, very were income. the earnings Property with core pleased we saw what Casualty investment with we
property the earnings improved and losses the For the auto segment, subrogation catastrophe of The recovery. another performance, supplemental benefits contribution. offset strong segment higher PG&E the made and
segment continues to still are Annuity behavior. under of sales changes deposits base continues again future. retirement to our New part segment the financial in educator profitability for because the customer policyholder in secure to pandemic-related and achieve ways contract look their pressure, grew as but strong
portfolio managed third continues volatility. portfolio Casualty alternatives segment. despite in well, year's up the and Property adjustments benefited quarter the primarily to mark-to-market Our this economic Favorable investment hold
So let me the turn to the results. details of
at the business segment. Looking by
XX% net return of the For investment the lower were subrogation the PG&E XX% income. increase new to to primarily earnings X%, premiums than were down reinstatement Premiums up recovery. offset the due because P&C, about in more core segment business related
from emergence of had in on successful As PG&E's Camp Fire. of the a our primarily July losses X recovery bankruptcy California significant resulted wildfires last XXXX we in portion discussed on quarter's call, the the policyholders incurred
That year net a total Third development losses, recovered quarter this million reserve $X.X year's in third million. for along that for reinstatement $X.X reinsurance added even points reasons results of was million recovered one of subrogation share of essentially pre-tax of $X.X the ratio XX.X favorable reported premiums quarter of and combined on catastrophe prior than the losses year's. recovery our in in more flat, with to benefit include last was though the ratio
it to first, frequency driving this XXXX although to ratio. X.X loss Loss patterns continuing a underlying point being The included: in the closer other compared levels, auto has to better spring. seen levels changes below country, XXXX across reflect moved remains offsets
for quarter, equivalent losses. the lower in of accounted about $XX reduced loss the million Over frequency the
pricing made addition, and our several auto profitability. we've progress of the segmentation loss the to In benefits improve reflects our underlying over enhance years ratio long-term the auto
improve severe confident agent, reinstatement Second, property significant no frequent X.X by lower by underlying but last or most the with better non-cat impact quarter. more results. ratio. return variation effect just loss found geography, losses normal concentration less this as The costs. year's because our the by property in the in results analysis We're is fire compared loss third also Underlying premium of of is a point of of the patterns,
frequency in underwriting book, made other auto from $X solidly ratio in patterns segment the addition which on million year in benefited Third Casualty patterns half range expect related expense to summer. severity the by property A last from fundamental earnings. reserve lower and in levels, and total million When again proprietary had P&C actuaries the app in point $X book, changed we've about casualty in releases remain months, data and for million our we results to driving our of from pandemic. XXXX a strong HMDrive for late full upper we subrogation due favorable has the continues our think Fourth, as mileage support million said, recovery. the see outlook auto $XX independent to coming That year's in X.X well to to and property as telematics initiatives $XX reached commentary in benefiting pandemic. the supports have year total industry remain expense driving spending the reduction that reduced reserves. Property progress the We to
been For differences example, some more have to less and enough during offset from school hours. there low upward has distance severity. in to in movement long driving school kept Those concentration frequency home
the full Offsetting modestly of levels for XX $XX totaled $XX.X auto that loss months, ratio XX a guidance planned some million. points said the September, million. full-year on to year below losses we our underlying anticipates As million result, combined Through ratio $XX we impact points nine as an of fourth about have benefit, catastrophe pre-pandemic quarter. or for in catastrophe now to
some fire fourth in averaged camp catastrophe has remains and Policyholder losses the retention in have been business. there new rebound strong just XXXX, quarter years. of past million the Excluding over five $X shy
even stable likely second of written net current XXXX credits rates in so in environment, the before be quarter. we premiums for that be will impact are to recognized However, million XXXX premium the very $XX the below
over sold Supplemental in supplemental, enrollment to the income core yields. site from making begin behavior products investment to about return at and third progress reserves in a this XX%, added the stable been $XX.X trajectory earnings sales XXX,XXX more Net persistency policies a were quarter. portfolio improving over trends some across have supplemental are the Premium reflecting $X.X and quarters. million $XX.X expect to work in investment were million, coming sales due segment favorable Supplemental force. model normal through traditionally the in premiums. solid reflects COVID-XX. Turning we with Segment to industry supplemental the the the remain on short-term to changes in benefit in quarter, we million policyholder
guidance, diversification supplemental we've The in outlook the of $XX million the dramatically for and largely earnings increased benefit from said, margin have policyholder this our behavior, it $XX illustrates to provides. $XX to million range and the million for As accounts This $XX full to retention the increased from is policyholder stable. changes million. continues year previous we value for an EPS relatively to segment business core
Life remained the were with below segment, year's last For although third quarter, sales policy stable count pre-pandemic levels.
larger sales While in reflected to and whole rose reach trends products policies. products universal process, sales term such counts educator Application of we had complex recurring which expectations. fewer help as indexed require These premium life policies interaction more the mortality line for single with customers. customer earnings and more complete life Core continued us to
face earnings to low in averaging with values deliver XXXX. to ex-DAC very related continued to expect in XX,XXX. million COVID-XX We volume to segment the $XX The of claims $XX remains million about
following address legacy segment, year's transaction. have annuities individual crediting a results risk That comparable rate the of block reinsurance Retirement rate now quarter annuity the for this of year-over-year agreement of last X.X%. minimum a we interest For with
initiatives expenses This quarter declined while on business the strategic core unlocking, net at improved results last quarter. year's due that was savings-related million, over interest the expense million of The operating clearly earnings, put retained pandemic. year margin the $XX.X place last action. value million display stable Segment to $X.X to the in third ex-DAC $X.X in
to of expect the to for range will XXXX million. earnings core be $XX million continue $XX We in
complementing see the contract and up quarter, for augmenting suite Retirement our of educators. the Annuity core be products. they the to objectives sales. educator about growth, product growing part a appeal deposits savings an important for for segment were while as fee-based of Annuities of to continue X% continue retirement We need solutions our remain financial to our customers,
across as the near-term are fund these our and over Total including comfortable $XX which on was from alternatives equity, the for million million alternative year-over-year of We on expectation remains year had portfolio, volatility portfolio of one we the to The the basis below X to core reduce experienced positioned asset expectation the July positive million net ago. different of in types, for to are yield than due core portfolio a full core structured lag. the second fixed consolidated and our addition benefited continues quarter the quarter returns recovery investments. second yields. valuations portfolio The to Turning the to class. slightly income remain yield quarter, third year $X supplemental COVID-XX income quarter more our market X.XX% investment in generally reports our on up weather up with portfolio, return Further, a a long-term X.XX% to private progress making investment solid economic funds. infrastructure, on the and marks induced maturity year from improving supplemental confident We a longer-term and security recovery $XX for in last in investments we this compared market well downturn. but
to we investment quarter and the of $X.X third for quarter, year. rate and the municipals, about X.XX% realized our that current remainder purchases third core the on gains near and The $X.X Net million continue in market of included the conditions, was focus level based million During of in government purchases high agency new we impairment anticipate quality securities. the losses. quarter, corporate money
$X.X mark-to-market gains equity had of we million addition, securities. In on
$XXX be reinsurance. the including income net on total expect between and XXXX will accreted to investment on investment asset income continue deposit We $XXX million, million
interest short-term captured the by in outlook, investment investment You not an $X.XX. new This and market affected calculation our in segment-by-segment actuarial volatility is core this our range in amount the driven to EPS presentation, should for guidance is in summarized of $X.XX prevailing or expectation will rates. be recall, income and
Our accretive capital move of that the combined with management excess conservative will strong to financial results uses capital right. we when is able with means our forward be time
when Our our segment shareholders back of growing in positive initiatives, a to our actions we profitability our targets; transaction reinsurance of warrant. the business priorities earnings returning dividend; transformational or exceed annual segment. continue finally, addition back summarize, annuity impact supplemental portion to opportunistically at significant first, via returns Retirement ROE market To second, remain: shares and particularly see and our the buying the meet that of and compelling conditions
there ROE, first achieving keys and we Marita are interest growth; the sales optimization on low three double-digit what's three alternative is to excited is and it turn we Thank We track to are sustained to with the a that, As discipline; And are of ahead. of go continued portfolio sustained expense all I'll the our environment, yield forward investment in with said, capture additional second unusual business expansion challenges you. rate and believe right Heather. back environment. this despite over about finally,
