HMN - Earnings call 3 2023 | Horace Mann Educators Corporation

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Operator

Good morning and welcome to the Horace Mann Educators third quarter 2023 investor call. [Operator Instructions]Please note that this event is being recorded. I would now like to turn the conference over to Heather Wietzel, Vice President of Investor Relations. Please go ahead.

Heather Wietzel

Thank you and good morning, everyone. discussion third Mann's results. Horace to of quarter our Welcome supplement earnings presentation. Yesterday our investor and we issued release investor Copies are available website. on the investors page of our Zuraitis, Financial Executive Vice Chief call. formal President Bret today's Marita Executive Conklin, remarks Officer; on President will Officer and Chief give the and and the Ryan to presentation for us in Marita, Act as to that our Weckenbrock, I includes Reform have Steve forward-looking McAnena.Before defined Mark Desrochers, Matt want Securities With and Sharpe, turning today of statements we Mike Q&A, Litigation Greenier Private it over note XXXX. any cautions investors performance. statements company uncertainties The and and not that future forward-looking of include guarantees risks are These forward-looking assume we update statements and them. are based current expectations, obligation to management's no on our we materially our to factors may news some variety use differ and results Actual SEC measures. prepared due filings.In described remarks, a of release non-GAAP in which are Reconciliations are measures the measures most available now comparable over in to of GAAP turn to supplement.I'll Marita. call investor these the our

Marita Zuraitis

quarter Last Horace Thanks of Mann's Heather, of sales premiums everyone. bottle. diluted hello, diversified strength segments. $X.XX rose and reported business night, three strong Net core again the across product with per written earnings share, highlighting X% third all we

segments In capabilities benefit be Benefits division, million. growth on back-to-school of new capture return We years.In where distribution was the seen in market. to the even sell Our of & season. over near we to and partnerships. to XX% expect in outlook we first and the as Supplemental of of employer-sponsored are $X.XX these Benefits our to severe and and & employers coming third full the $XXX remain outsized & strengthen quarters line, convective invest we expect strong individuals, more instead this activities talk level, strategically third high we will because our details in The will in clear successfully increase drive the XX% from profitable continued we executing year investment All XXXX. across our net business strong sales seeing Life to of in Group the benefited quarter a the line for despite casualty, on profitability, to later line use to plans doubling that benefit achieve in progress the districts, Supplemental over storm in a of retain property year to package in a are This take to at confident record Bret core make sales activity and about both to were of segments more navigate advantage earnings.In EPS efficient provide income year.School $X.XX.We our able robust return new equity a call, a in growth and and enrollment country. with educators. our more timing. the expectation, was are benefits Retirement easier fall, ability divisions with This last during on our quarter we particular, larger Group attract This to to group third of technology these offerings share to progress process segment making enrollment delivered but staff. fully plan the a continue education we impact

to the core level school of grown retail of pre-pandemic in efficiencies years X from we in to to individuals, business, of our XXXX.In began terms fully with the In have returned the acquired where sales.In being benefits further the at we a direct run sales International we the has Life partnership are long business. NTA's with educator access nearly since the others realizing their video highest we of addition addition, back who directly community affiliates built XX-month In since the on this niche, to interactions. we selling new worksite in XX% are local its their served combination with trailing Association business history to of rate division, with has NTA grow Firefighters,

up support in event educators For than educators in X,XXX open retirement re-establish example, South financial individual back-to-school to This improved Mann new options more understand relationships leveraging Besides showed Dakota our the to agents was in in state, City, quarter-over-quarter. when projects lead to helping be wellness I for the to was see with classroom increase through territories. at school spoke including DonorsChoose.We're placing the able a and its school in retirement those again agents offer Horace year with Rapid can educators. contributions XX% their in-person key myself workshops to sales excited August. to access, this in I

also cost profitability. new so we embed ratio sequentially. are have return the offices as earned to and In increases Property of pre-pandemic average and while better gaining supporting our cost in beginning rate we the the growth.Now inflation Casualty XX% combined the increases an will and they program in of an loss emerging towards moved of Since continue turning rate currently to improved business be to ensure learn our for we inflection in the to address combined agents nationwide implemented in third the quarter are continuously auto, we frequency levels.In targeted to ratio the this of growth growth XX% to established re-evaluated traction But to sales planning address additional premium We return nationwide. strategy XXXX, the path to & late XXXX, trends. loss business can to point plan have with average ahead that XX% reached on

non-rate with the along before, is environment actions to noted rate property have track I challenging. underwriting targeted on profitability.As us keeping actions are Our

increased and costs address frequent with more weather is associated the severe Our events multifaceted. plan loss the to

modeling. quarter, we product filed our last enhanced As additional said strategy rate, changes and includes

a renewal values of rate, In accurately more impact also to range reflect coverage to to use replacement have to premium make to XX%. guard actions adjustments the addition costs.These we brought current XX% inflation to on

weather. on we continuously We in XXXX. similar environment with quarter, as conditions loss in reevaluate well have process. roof like last frequency premiums to in renewal implementing of This noted settlement quickly to the areas reacting are we we are changes As and adverse cost expect ensure deductibles age impact of a to we product trends.In higher an terms as changes updated higher particularly changes, includes addition,

are through We modeling decisions also provide impact more localized integrating and new sophisticated This severe the storms. portfolio underwriting in tools into making assist insight convective us to optimization of actions. rate will

how our fits combined deliver to into expect our me healthy P&C XX% XX% to of a revisit continue by take property ratio target to to long-term step a business back strategy. long-term XXXX.Let We

in for return for goal attract Mann Horace momentum property customers the to book solutions We on and we we the offering are agent.In life, our to with across program as increasing this is but of business provider and we are all multi-line our provide a and is meet country, loss to the market, retention. Advantage educator school customers, terms auto to relevant rate that their their local home this partnership niche doing and fact, Mann have for customers for addressing trusted creates of trends, more adding the throughout and auto for remarkably of policyholders our enhancing cost to As that current for ease stable is Horace value year, value features customers.While stages. to a enduring educator believe life on the and in Even households. rate teachers' of sponsored are property both the benefits, new another maintaining the casualty adequacy Educator coverages are needs, the year, the a limits at seeing carriers cross-sell events. the theft sales we unique our are such reason we impact our One past needs over

our solid long-term objectives. We progress are making towards

a dividend. delivers consistency, operational and solid Our sheet compelling diversified balance business a

executing our strategy are & We segment. the the to address performance Casualty on of Property

that a helps prepare bottom school our Life do. have and educators. a together, today the and center exceeding districts of Our same solutions keeping what Mann successful to Benefits distinguish quality our and business the to terms & committed and help business they we top educators at in attract we us tomorrow. help with solid, the of remain Supplemental education our Retirement to offers staff And time, retain At for both is everything protect is line.Taken Horace complete and segment contributor Group expectations steady community

care Teaching value of our Just taking as announced the we in are educators this conjunction what our for why XXXX, like do; national These who the day.In succeed, Foundation. week, nation's serve helping clear. a the Excellence multiline communities as with we of year X approach NEA we lives awards a our and winners to the they Horace is those serve children their Mann reminder of dedicating to do every

The recover business, customers and the can I'll from the confidence value gives and the supporting with with that return needs XXXX.Thank XX% call the strength that, earnings value creating us all of potential of to we And our combined are for proposition, approach stakeholders, over meeting equity turn our of our of our on you. in Bret. a helping shareholders. our our employees agents loss, We

Bret Conklin

quarter joining P&C. written with was seeing core I'll Overall, Retirement by loss contributions walk through highlighted the due business businesses, in by to to earnings.Now for model you and the weather call moment. like of elevated a everyone, & Benefits the across segment we of value actions supplemental rate and our take Thanks, This discuss today. non-cat largely our the as premiums are the we our I'd details Marita rose of activity effect. XX% for strong third that and the quarter implementing evidenced sales starting cat segment's are third country, momentum which Group the across performance, and diversified total business Life to the

most auto. confident from in see year-over-year in pleased premiums written first in is X% XX% the increase auto to quarter up remain growth quarter. the improved business quarter in again very third outlook, largely The our stable the and where states property lines.Turning we're to both New average in second in to XX%, and coming pricing the and retention we're in

return in moved auto, first the the ahead premium the reported ratio of believe the auto we last growth reached the As combined third since quarter. The was point quarter the of combined quarter for have we've we Marita ratio to lowest inflection profitability.Earned late mentioned, cost XXX.X%, loss in year. in growth

look to positive we our moderated, addition, vehicle inflation achieve targets. is repair In replacement a and has cost as which

actions ratio.Turning continue to long-term target that to to XX% of designed to XX% our property. get to a are rate will take us We combined

Third quarter XX% were year-over-year. average up premiums written

and bolstered rate plan aggressive that rate to well actions non-rate adjustments coverage also as continue as very to be address Our profitability. increases remains countrywide inflation values by

pretax, and million most of weather reflected quarter states quarter. prior XX XXXX.Third several Louisiana.In with first XX.X in states We as quarter South.Further, to underlying cat for the renewal Midwest combined prevalent storms the cat non-cat In losses addition, increase no implementing year. in XX including weather the was severe losses across there property the were and had wind Total schedules and non-cat losses. the $XX challenging compared ratio. $X.X were Montana, million of including from of $X.X of impacting ratio our in total, and to of new XX.X% events, well also weather North roof declared loss of XX Dakota adding million X/X activity About came weather are business hail the states a non-cat points Utah, Minnesota cats, segment the as settlement cat convective

we address that to In our overall in combined weather XX% modestly target to are the quarter, lowered to that modeling product trends to of million our refinements this process XX% our the losses rate, our this $XX core earnings to and changes confidence track on P&C to expectation are and and $XX expectations achieve long-term between due we ratio these loss underway segment million. bolster unchanged of remain business.Although level significant addition

$XX We Life year higher prior for ratio improved in or points the to with segment million & adjusted by ratio. contribution and the the target on mortgage full XX%.Turning combined loss $XXX million are our core The cat at returns longer Net Retirement. reflecting loan increased strongly investment interest about remains to XX.X the be the still would million. The combined income environment assuming term rate XX% overall to XX% to compared continues commercial $XX funds. year, perform to earnings at segment

compared result, the the credited than portfolio addition, reserves, rate.As Year-over-year, the on investments annualized fixed remain target our program. mortality limited total as Interest our bps net segment, a costs. our quarter net last change XXX spread the to offset lower reflected similarly income annualized XX% interest In mortality total rose to the although quarterly in of costs bps business contribution partnership run annuity a above change reflected earnings agreements rose stable, offsetting meaningfully our interest XXX higher return reserves for net in third funding FHLB higher from more the and from generated expense.For floating the investment benefit backing the rate expenses, year.

net which the noncore business persistency remained and flat believe the fund Advantage, but had for segment. also up lower with portfolio this quarter retirement activity the remains XX% Retirement consistent was than total X.X% for account is mutual at a creates sales due third deposits opportunity cash $XXX were us.We to good annuity our to XX.X%, Persistency in For prior non-qualified million quarter. surrender long-term another the Life for XXX(b) year-to-date we year business business, value with platform up annualized portfolio, contract account in fee-based that quarter, persistency very last were which strong, our for core year. for

look educator relationships, to & and Retirement stable to we very pillar be Life progress.The We a for with continue a as solidify are with the to initiate opportunity growth. segment sales of and pleased for way Life continues earnings

continuing to remains let and typical spread levels. diversification million $XX at XXX to a Group million, earnings result, with we Benefits & where the longer-term returning targeted the me for bps to higher ROE to turn we more expect As value capital-intensive core growth, LP this Supplemental are quarter to The this higher XXX of less be earnings XXXX returns segment bps.Now range business. to see to the segment $XX fourth for continue

were the with rate.We business, supplemental total XX% up and have million million, earned growth up last the our continue sales in expect to charges contract Sales XXXX and pre-pandemic $XX were of in segment year. and beyond. $X.X premiums quarter of worksite Third run to over direct moved XX% accelerate ahead products,

LP progress XXX% made P&C benefit remaining fluctuate, a quarter for from long-term aligning the completed line environments with that quarter, of in quarterly to period invested record line million interest it benefits investment from debt limited year's to to in the expectations.As increased earnings and contributions core our a we the our in managed the $X.X on this on noted continuing first new The municipal to for net remains highly investments, expectation third exceed liquid third the portfolio, in reserve annual again value million book yields of core $XXX with fourth the segments, between adjusted interest, funds unrealized to XX%. below a both our and of fluctuations this million portfolio sales talk targets for you. schools and of and The in target quarter.Pre-tax The previous ratio the that, level and focused fixed growth returns start path premiums quarter year securities rated in and Both sales to levels. and to on capital and with strong rates and is long-term $XX.XX, yields have quarter employer-sponsored segment to closer be to adjusted X products quarter remain sales debt to product districts us current towards fully LP value ratio gaining last Heather. income the September $X.XX strong up assets.Total business. concentrated L&R we contract to book and ratio financial appropriate years. expect to for remaining to is partnership worksite for portfolio utilization agency partners.For money The net written earnings ROE. EPS corporates, back compared to expected quarters, stronger $XX results potential core favorable the expect adjusted earnings with and distribution with our on portfolio. the employer-sponsored core overall XX similarly for book be income expected more deposits, This record L&R a of adjusted limited Adjusted range to as product A+ the continue $XXX $XX.X adjusts intrinsic added rose coming securities, net the performance end, as investment full investment months.Our contributions partnership direct proceeds benefit strong ahead mid-September. with we reflect quarter we million was finally, our maturity strong our to shareholders.Thank on commercial XX, repay investment benefit historical net we million, excluding million, a XX%, attributable benefited to and at on per with from the with X.XX% will We $X.XX or solid of I'll patterns expected unusually net For recessionary rate managed profitability the a employer-sponsored accelerate just continue benefit investment we the remaining reflecting $XXX XX.X%, segments, to loan the materialize MBS income agency quarter book value value strong was positioning from yield to quarter credit through we the to Benefits was portfolios. discount our of turn mortgage continues is I progress higher strength Supplemental to after investment segment, quarter, the net losses ratings.In was year and typically third significantly, a use but XXXX of The environment, a nearly benefit strong access third was for senior reminder believe our target $XX seasonal line, well our at are worksite. And over of to business income remaining turn remeasurements were the segments portfolio summary, it guidance income providing full $XXX with full index-eligible anticipated shows next were XX.X% the XX% of year's likely objectives we facility the Due about in P&C at the $XX quarters $XX.XX. $X.XX.More in in outlook total and the & $XX line increased returns core our net our blended QX.At in value we net for are in million sale range for million.Before million ratio to the were full with over to basis rose year investment proceeds from issuance total balance returns used unchanged share, core all an investment-grade last at ratio Group earnings operating to this sales year when in revolving million

Heather Wietzel

questions. Thank Operator, you. we're ready for

Operator

Instructions] from first from question [Operator Sandler. John Our comes Piper Barnidge

John Barnidge

you distribution the the suite? the your benefit truly that normal, meeting strong quarter. how to Maybe and growth group with products diversification presents insurance in of has of the was worksite in really returned a educator the about of that insureds and kind talk Can supplemental all kind opportunity now

Marita Zuraitis

said about they educators choose. any before. the a we this way think time the spent in amount with start script it's We absolutely We us want the because think the it to journey right We've I way in question fair their world. on of

of those at we've products the we on a a this also to We quest were about want strengthening when we the infrastructure. our back, advice been And at do either while looked modernizing going to our at sale.So, educators, they're talked of exactly some relevant point or point, to that. that trusted know adviser a distribution, need

perspective. rate this The P&C ways and industry whole is us. So environment. have certainly to into for conversations from that in think, with there. the and educators today, The we start broadened have is is an earnings the I auto broadened clear the educators.The these helping portfolio, coming more solutions dealing our reason mentioned, We've diversification to quarter with that their line you've is we current journey benefit with product the

the inflection quarter, the just all And for is and for a we're the dealing us industry, for through saw we're outsized point with You cats that the of you It's saw the facing P&C lines of us. clearly us. come third in this the while of good issues the industry. the diversification quarter.But that us quarter other X with but addressing, benefit rest business the very are in quarter sign

So him about going you thought how it about we're additional of core really segment.Steve growth, think finding to Mann, -- Horace journey talk educators Steve and their see thought about I'm our over next growth that household little good with bit with about we to count how increased start we about and have a how forward. about the I going phases feel we our to the Steve? growth turn thinking as agenda in

Steve McAnena

Marita. Thanks, Great.

I to spend think just kind talking I and I'll want of about future, give context today. sort the a of before about a little talking second

today I life navigate for comments, focus our warm profitability.So approach resources P&C her think means opening emphasizing cross-sell. the around keeping really we're the me, we engines equipping retirement. to Marita rate them with restore agents that to on We're helping is environment, in growth as said

bit of growth sort for adopted a to, months, multiple today we're positioning about new healthy, is that kind which very give meaning sense few the want you a approach at so them tomorrow, we during the how we're consumers profit adhering is the are think I today channels to we've but I keeping it of when If we healthy, be. force as that accelerate are disciplined, little agency For know journey. context shopping thinking right, we by well, using spoke Bret i.e., things, agency been and just of I pivot underwriting.So, to to strong where go time a is from things, our their when and can of force me, solid, our here business having looked results evidenced that's to

means for to to and shopping most want And they digital actually consumers they want with that to is generally when person. quoting. what buy policy, that a But use do so want the speaking,

is good And what doing out build for that's forward.And is trying doing and as go agenda growth we so context X our what things. for we're we're what to

generation. lead is First

we capture forms means would have a thing us really kind what factory. turning Mann, using obviously, into it's educators tactics digital, For of me, marketing of that lean to Horace is And non-digital drive any to can with do.The complemented you is use be them you leads and drive already you, make you what appropriately. agents receive to but them to second sure

So really for means we need quoting us, is that capabilities. our what digital to enhance

the large to So and leads signaled the their able begin third that but really And it fraction then we a to journey converting of them.And know end earlier, they to want people kind drive offline. leads. is be online, I quote this of

that have and we time ensure are the the have completed that really get to to process strong is quotes So sale. right online convert analytics we right means that to agent what to the at

sustained grow where we Horace our channel. for we're you access things behaviors we book. call the their be lead because because will when about: thinking We agents I'll be we're our agents get working are they sense because be what a with lead they obviously, we everyone. think integrating of as will us and by just agency that want. lead go wrap thinking win win-win forward, get capture, for Mann how complements really together, really a aligning saying and them center profitable it believe that It for online are conversion. those And volumes.So gen, educators And for about that, win will it. a therefore, X for they So a will be leads hopefully, gives channels, consumer that It digital, can win sort will

Marita Zuraitis

Steve. he in comment turn through Yes. all so Benefits great. that that was that pretty going Supplemental over seeing & we're it Matt come numbers That and Matt? We're we're on building Group can some about capabilities strong segment. to the growth area. that Thanks, I'm excited this to

Matthew Sharpe

that one Marita ways educators their Horace comments question, over ways. through for that through with The Thanks mentioned worksite, of benefits those worksite years the variety to ability the in the is made the past choose addition a packages her John. their those the start worksite And the and of needs address in few that whether employers offer. we've to their direct package that Marita. seen consumers business gives through at acquisitions Thanks, the the Mann of consultants they're journey at of the and individual benefits it it our supplemental they're on a continues that or lot products business coming And the offers district. an employer coming the regard.Our employee of independent work their sides the on our level. back through to on benefit grow basis that growth to both beyond with in house direct pre-pandemic we've of through us

as the Marita the do. and job And in going in momentum particularly the the in the community great of alongside have and mentioned customers short-term serve side in of to disability they have long-term their the side, disability, serve who to products the book benefit done a partners employers script. tremendous continue individual firefighters, employer benefit expanding group on We adding what both distribution our then we segment also educator others our segment, supplemental in our on that employer paid platforms either reach package through in by the or the our

Marita Zuraitis

Matt. how retirement Thanks, exciting engage And with so also book see have to educators the journey solid enrollment. and we'd many us. ways Historically, more do. their And now start them about a garage it's we or always continues through the started them whether to through with relationship for their to XXX(b) talk to

reach in for increase for overall like and not educators from an more walking that's way we to households it's the ways us, we're So We away used converting have to just start. into us.

John. about I answer, right thanks but long it's to So think And the it. we for apologize way question, think the the for

John Barnidge

the greatest business about case? then Can that. is the very greatest new where of that Appreciate price have the the price states appreciate was inversely, script, had some talked you And the That greatest states where give that true, the confidence adequacy. in answer. is I examples growth, In where is needed. you where maybe helpful. in you some adequacy states

Marita Zuraitis

But to a imagine we John. a can in can state. -- of I by turn the minute. lot work at almost it Mark it is you over it's rate are, when adequacy in a states as are Thanks, you to look your all

an this even a weekly, on we turn the Mark this hourly restrictions, team product specificity as over monthly, maybe to we need that And it And put does to do We to drill to little strong said in excellent actuarial place. it we work provide that have I'll a you think daily, unfortunately, rate have there. a on basis. the we relates have well, it may a I But basis. state-by-state that

Mark Desrochers

Thanks, when our Marita. at current have that, I early, we time. to part we in at by our time the most be and look of going environment looking year, rate costs what forward view a get the rate from we that and need Sure. Yes, moving to loss of states our are are adequate think we mid point that at next

at there, some adequate X, on ourselves can be the of necessarily is always, might get environment.What in some there. regulatory we line rate will actually you get think a next us is, auto we're then I and specifically, get in how property filing in the with July, going after in constructive Georgia have as adequacy business once, we say can earlier, soon part several hopeful submitted had over discussions if at June and that that, in are when might we property challenges we about was to at and rate at look and within but The get and of to sight filing time our we're with limitations today, through like resolution California with next an make horizon The our couple departments. write that we where ability we believe we business. to I would that, California regulatory going most we as writing our for get then look we we're much year, towards places rate we the first, to terms there rate as filing.So, range. get of be in auto had we be weeks line.And so, when I that remain of in reaching adequacy, mind a the we're pretty talk of given headway that the know, to late able some of XX% think back there's rate mean able places, work in feel of next XX% doesn't because the we'll to concerns the an quarter to the we've or we extremely And that And point middle do comfortable we about filing the that the it think outstanding we good that through both we

Marita Zuraitis

actuarial requires and recently that number, a science, requires say And years doing flexibility. -- dynamic and that is would the in I Steve good and he Mark but many but seen. the mentioned Mark. this also that Thanks, this in most the meeting it that I think space, I won't I we've had probably dare P&C environment say

current So you rate and when all I looking mitigate, for certainly, much take rate they trends we get all push, we on how more. and at then to continue that.And remain know then time, about have our talk these it if data, think take you the maybe we is is to based will less. flexible plans we If in XXXX worse,

circumstance, added a really carriers have good have certainly I market, because dynamic and particular we still not being or or a of we educator.And a way. got use maintain scale We've can third-party we've specific environment the this harder stable third-party a of those P&C in strategy. our partner our use that flexibility talked that carriers robust when state, as relationship but good about think we in with third-party also potentially of in in a we

appreciate the So question.

Operator

question next from Shields Our from KBW. comes Meyer

Meyer Shields

your related successes recruiting recruitment. first So, entering I in in get of terms teachers on questions, an trends and both in was to agents new of Horace the to hoping all, I what just seeing update, workforce Mann. you're guess, terms X of

Marita Zuraitis

question. about before. Thanks this We've for the talked

is previous educators. we The new attract I of us through. tend it's chose when what to don't gives think our they state or ability in really opportunity those seminars, teachers.When think retirement carry access Mann. the for Meaning necessarily the entering more attributes teachers more to clear the But to an get for as in and retirement the the they about system. teacher new the club. teachers we why think retired have system, education we schools, about across new that also kick to programs teaching agents the shortage not teacher to out it do the we for the good odd profession country that good is have But Horace way,

on call, it last ability to I one the recruiting and even our recruiting, only of We pandemic agents to front, we actually before, the about expand to our post prior stronger the have.So, who numbers during that the the our believe not become were believe, exclusive good license to pandemic. agents pandemic. on very attract than said that As they relates we producers the and are not the if already full-blown this, feel ability difficult strength agents, attract I and recruiting it but was size agent

Let's face And But worksite. do in a that's be normally the you would to more when way can't sales. do little difficult the the you everything with worksite, in it. sales to proposition, this the during And to as attract and coming where value about the now feel numbers. well learned growth that's our we good ability stands. we We're pandemic in that through agents

Meyer Shields

and they certainly a time. us.Matt but think right? can how pricing do, start you helpful and where spend exactly thought little and I Yes, mean, hold where state-by-state that our because by mentioned to where product we that's that.Yes, see they for in a that I I right. that's very over by the do to it on of I control what diversification what our we agent guess And lead tailor wanted where isn't agents us means about exclusive state with more emphasize states that's we guess, naively having done that. don't needed what our with, with What agents basis, gives engage their you need that's off, system really these understand it, captive be a educators, if geography, to time, We their you to the cross-sell. I

put where that difficult particularly recruiting geography, where you've might a got if you in we agents, be So hire agents, not we geography. obviously

solutions So well. is there we address to were good can having have a by XX% conversations the give more environment these ways, more the in, and and on geography. educators, feel with about really as geography more And up would do And number, considering that a that we future products, expect agent year-over-year. we recruitment, to you

Meyer Shields

Okay. No, helpful. very that's

I'm passed not good there's The how at just or terms discretionary from offsets of think expense really level how advertising because second doing you're more How like but -- back of ton P&C, in we like business of about question, back, thinking we expense how of the carriers. pulling that much spend should I'm ratio, when a rises which we more ratio look thinking it's and the other the you're quarter, move the much that normal? to get in was to like should

Bret Conklin

one actually, get I I wouldn't is overly excited with usual, quarter. Meyer, Yes, Bret. as this

You're right.

hovering look would XX.X%. we the to, for I think XX%, months, ratio on we're if for area guide is the right XX% typically expense at a around it basis XX.X% But year-to-date was around X stand-alone which XX%, to you the the basically just below the quarter.

expenses don't So change. I going -- I philosophy our is really wouldn't think with to

I than in I we're of of what the have balancing can down railroad on not the to bit fact strategic we're will, need I where the we're But going focusing where about forward on a run are as and little we talked we growth initiatives XX.X% a don't the we same going the may expenses doing between think I a what would say, X the X to strategic first if good expense expenses probably current that ship, than being or be that where the out think they any that balance and to need orders think the you profitable it's about environment higher we've to initiatives. today.So to ratio. early focused XX% at the in growth focused good run on quarter time, the set expenses And kind also spend. steward very differently last think years, of the job specifically, typical it's to we then go other you continue

Marita Zuraitis

a contact we would capabilities. we about they yet of for it time, funding We as center. these Yes, things as diversification that relates Life lot. really What initiatives consistent us and we talk of and X about underway, right. remain do of a have on very the how funded and Bret, a intended become we and customers with were strategic the We brought talked ratio do modernization. cross-sell expense in mentioned we spend that what the well us our we have on it The said. consistent what it blowing front implementation remaining for that's inexpensive, really We we but made a implementation acquisitions I These think excitement we are consistent, spend.So, what as disciplined consistently. spend.So, How changed at doing of it hasn't Bret Bret's in the spend educator major but way also what record pretty isn't said. have website, commitment stays if we Guidewire you the they systems track we that on Steve far info.And in changed, in that changes our as least over a about engage and based to we're we that some the lot budget, without especially Pro will are while are to will. what doing how consistent digital investments and has data

Meyer Shields

No. Perfect.

Operator

from Peters Greg from James. comes question next Raymond The

Sidney Schultz

is for easing Greg. any pressures vehicle have injury? mentioned and This there? moderated. other Can the seeing bodily driving if of replacement areas repair the moderations prepared is costs on comment comments, you're in In seeing what you you're you Sid on like just And

Marita Zuraitis

answered to turn I Mark. he that that over has for can all us. I know this question of Yes,

you. let Mark? him answer we'll for So it

Mark Desrochers

Sure.

coming repair down. pricing is is cost the the pressure think I we a time at so losses of it look and fact Offsetting continued and when repair little coming used in cycle it we're in the that the primarily vehicle labor -- bit seeing is time. the total to car of costs, is costs down, on terms parts, index

of the of it's impacts definitely a from systems stubbornly I'm we are So think still high maybe down now. mid- are open the single-digit.On moderated from -- what double-digit to seen in like kind things seeing we're operational the ago and inflation injury mid- year say trends still moderation some low on of But severity, were mid- where I of terms we've fully injury overall, the social side, rental spending sorry, more but vehicles all high slightly money is I to to that. court severity high, into a would and as we

are some seeing we impact So there.

side. on So definitely remaining a physical injury little bit the some higher but the damage side viewpoint on optimistic

Marita Zuraitis

rate be Thanks, it are but Mark's those in contemplated may Mark. all filings. obviously And obvious, things

Operator

our concludes for closing any conference like This session. I to Wietzel the remarks. turn would back question-and-answer to over Heather

Heather Wietzel

I today. it's Thank you, a and thank everyone, time. know for joining us you, busy

JMC free coming doing Piper the further, be weeks. week and next back everyone So reach we if just let to for you step know, meetings with want talk over And out. will want to conversations. to and arrange feel We'll both

opportunity chance another an conversation. for have that's So extended to a

So great day. have a

Operator

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

disconnect. may You now

Horace Mann Educators (HMN) 3 Nov 232023 Q3 Earnings call transcript