KMPR - Earnings call transcript Q1 2024

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Operator

Good afternoon, ladies and gentlemen, and welcome to Kemper's First Quarter 2021 Earnings Conference Call. My name is Ina, and I will be your coordinator today. [Operator Instructions].

As a reminder, this conference call is being recorded for replay purposes. I would now like to introduce your host for today's conference call. President Development Vice Investor Kemper's Marinaccio, of and Corporate Relations. Michael Mr. may begin. you Marinaccio,

Michael Marinaccio

Thank welcome Chief President you'll Kemper everyone, of afternoon, Executive Executive Chief you, Good operator. Vice Camden, Brad and and Lacher, President quarter Kemper's Auto. Matt results. Executive Kemper's Officer; Joe President our XXXX of to Officer; This and from afternoon, and President hear Vice Kemper's and Financial first discussion Kemper's Hunton,

quarter provide make by results, few first remarks around We'll followed to Q&A context a session. a our opening

For be any After Claims filed Chief of closed earnings Executive presentation and Kemper's issued President portion our Form the our presenters interactive and Kemper's we John published Kemper's of Investment the and President markets joined Executive financial Vice Officer, Boschelli, today, our our call, P&C; and Kemper will release Sanders, President Quinn, Executive SEC President XX-Q and Life; Duane and earnings by Chris supplement. Officer. Vice Vice Chief

find can Investors these our of You the website, kemper.com. documents in section

today the future contain and include, Private the the condition. within harbor statements Act safe and may outlook limited forward-looking the operation of of Litigation not to, XXXX. are meaning These provisions but Reform of results statements of company's its Securities discussion financial Our

actual Our these future statements. materially may differ financial condition results from and

XXXX to For and information on additional our release. risks these forward-looking Form XX-K our quarter that please refer impact statements, may first earnings

to release, we have GAAP measures includes accordance measures supplement, investors. non-GAAP believe also all presentation our This SEC financial reconciled rules. in required non-GAAP defined earnings we meaningful discussion earnings with are financial afternoon's where In and and financial to

the of website, can our of section You Investors these in each documents kemper.com.

XXXX otherwise be now references to I call over the will will comparative to all periods Joe. unless corresponding turn the stated. Lastly,

Joseph Lacher

we're this everyone, progress for thanks results with noting start I'll by afternoon, us that quarter. Michael. the we've you, joining made today. pleased Good overall, our Thank and and

Specialty P&C exceeding business, profitability in margins. to significantly deliver our target now where continue We improved we're

activities policies on we continued to business to as expansion return to are and in business midyear. new new While track decline, by typical affected, force rates initiated our more

business our As a results becoming With apparent. and underlying balance, levels and becoming return pricing the will are our in value we franchise more clearer trend consistently competitive and underlying normal story be visible. advantages strength of creation believe loss more new long-term the to simpler,

Let's into jump move results. X to and Page

a Overall, $XX we of tangible of delivered ROE net XX%. and over and over income million annualized XX% ROE

a That exceeding achieving sequentially, and in or improvement. point our underlying We generated this is our of underlying combined our once that are of combined P&C X.X target again, once we're -- ratio. point a exceeding quarter fourth consecutive again ratio business. improvement XX.X% returns. pleased improvement the XX% year-over-year Specialty target We're XX.X a

spend our the target more that provided is We historically, has going about acknowledge a modest ratio. me confusion, later ROE Let Relative Brad consolidated a demonstrating now. to I'll caused not we've consistent comment recognize this we life a long-term P&C quarterly continue to and business, deliver time and later. in on specific specialty fixing further little only that volatility, call. returns. that to while talking this combined we're some target

offer highlights lack in into dig the moment. thereof, Shifting this at made or specialty We're On a and that we'll P&C that, minds this significant investors' progress greater much I'm overriding in going quarter. growth aware issue to the few production. area to PIF the during acutely rather an on perspective. hit is We detail. most significant

and potential growth. Throughout profitability XXXX, new a committed we underwriting exclusive nearly deliberately foregoing focus to on restoring business

results, had business did business ratio. will, this had our sub-XXX fourth been When a it optimism clear read initiated the combined outlook, the we we As new quarter engine, we was you margin new discussed that about we delivered if until expansion. and accomplished not quarter, with last we

on points our the you new since two execution shift. driving realized decision PIF going to January. the are There switch to will business that quickly: expanding have late We're business in the benefit; help business nature in more only prudent second, quarter consider and did and ability new confidence on we're XXX% not the in interpret immediately. the to was stabilize X see expansion from analogously of our made a mid-February, similar to of stick first, We utilizing. half expansion This key turn began light why new numbers we flipping the and a

to year first from stalling. go fifth without year don't You

resulted perhaps of early X.Xx quarter XXXX first represented quarter written, volume. apps business first moving in and growing through the fourth This The new nearly second year. by

about second For did business many the basis, the first we of new we a April, apps quarter wrote approaching Xx suggests the quarter quarter. month of the all run in first volumes. as this as roughly On rate

takeaway, business The X gear. have unit that moving X% between and subject and will generated third follow, new seasonality the traditional midyear. engine will be In perhaps might patterns. prior growth pandemic to as the PIP business This through this the we Growth stabilize XX%. to quarters confidence characterized fourth disruption,

We allow deliver for expect our XXXX results advantages and will us beyond. to similar competitive

is apps detail profile the business metric to ] stabilization. speed through For going a short new of [ new to XX. on more Matt time, PIF help X we're a to go measure more going Slides you responsive and

last been or either As their require not given initiatives we've this much quarter, updates to of profiling nature, been so on strategic discussed the long-term completed there's discuss bulk have frequent quarter. less the those

consistent as an early over corrected With the remain to Within we're a targeting P&C committed and midyear. Specialty business, last one business with our I'll profitable cycle. target successfully now you a ratio double-digit overall hope year. return ratio. traditional major are long-term leave turn combined then stabilize much growing our profile We're XX sharing that to it low more the and and you PIF throughout ROE by Brad. declining leave profitability confidence expected will We exceeding that, possible. our We've combined we delivering today growth addressing challenge to I'll We to as thought. next a

Bradley Camden

begin I'll you, Thank our with results. consolidated financial on X Joe. Page

want the reviewing Before metrics review first evaluate performance quarter our guidance. to our results, I we use a to take reaffirm moment our and to

presentations, to from the changed. metrics recall premium not generate low share deliver with return These prior value and you we double-digit in higher. a grow strive line If have equity, on per book market or growth

For are XX% XXXX, metric. guided higher, to and we return of reaffirming on we've equity or this a

combined P&C for not that run term. combined messaging, a how our will as we interpret mentioned Specialty guidance, of business. Joe target business, As but we long To for we ratio help this XX not business Do over ratio. the simplify now provided providing target a the historically the have rather are

is achieve combined to Our ratio our better maximize or growth. and goal target

to first results. Moving quarter

and and initiatives, As business quarter benefits such to operating Joe positive highlighted, we second of program optimization of quarter this a cost solid improvement a structure profits. actions outcome. delivered straight completed realized and underlying fourth as the Rate our led underwriting consecutive strategic several of

$X.XX For income the consolidated $XX.X of net quarter, diluted and million we had $XX.X per net operating $X.XX diluted or share. per share million of income adjusted or

X P&C's XXXX equity XX.X%, a in towards underlying improvement ratio ROE trended loss on benefited X.X PPA of the while combined business consolidated from our elevated. offset Specialty strong was point This or rate the severity Frequency the trends. better. return points within guidance primarily achieving sequential earned step helped approximately seasonally in improvements of XX% by normal remained Annualized first favorably, drive results.

including operations, million, net approximately $XX Moving [indiscernible] current reported income of in preferred P&C $X losses. noncore the to generated business, year catastrophe which is million

to related And matters. $X.X lastly, specific Specialty P&C adverse prior million several development was litigation

X. Page to Turning

Our consisting intercompany of insurance company capacity quarter, of liquidity. revolver approximately capacity, well significant lending companies and the parent At holding billion have the liquidity and capitalized company sources $X.X was are cash and investments. of end

to liquidity subsidiaries healthy company holding and balances as payments support operating Our interest allow needed. us dividends and pay our

well life improve the preferred P&C continues and capital helping to ratios. levels. P&C to capital be business continues Our its wind-down improve in the Operating to are business profit business capitalized

year. from capital $XX over the released business we to of over mentioned, anticipate released of million previously million As first be preferred was we exit the $XXX this quarter. capital in

to continue reducing We sheet on our debt-to-capital focus and balance our metrics improving ratio.

As expect XXXX our when leverage maturity late XXXX, February ratio. $XXX debt reduce we address our we down million of pay million $XXX least help to debt to at we mentioned in

to pretax equivalent Moving our lower returns Net portfolio Page book reduced annualized from and X. investment the quarter was income million, $XXX was net income yield the We alternative our X.X%. investment prior quarter. investment for on

operating generates income stable high-quality We our our support and with maintain to continue liabilities. portfolio is aligned businesses to investment that a

to call the I'll over to Matt now business. Specialty P&C turn discuss the

Matthew Hunton

you, and everyone. good Thank afternoon, Brad,

passenger comments auto our P&C Specialty business. Page start both to vehicle. in with for commercial and private Moving X overall I'll

combined target ratio XX%. underlying trend. quarter For in year-over-year. XX.X improvement X.X This we incremental closed first XX.X%, the improvement of exceeded the actions of and again, with sequentially a benefit an outperformance a an segment, loss representing against our cumulative our profit the point of resulted Once point

reported Our a of business XX.X%. strong combined underlying PPA ratio

rate, We have tailwind. additional remain will a unearned which

an XX.X%. combined of generated underlying business ratio CV Our

Our to specialization and underwriting value. continue discipline create

production. to Turning

goal stabilize support are There to explicit factors several is Our to goal. near-term levels. this that PIF help will

products our and is First, demand agent customer strong. for

the retention And our most availability. comes new policy from business stable. finally, impactful remains Second, opportunity re-expanding

can business details acts metric uncharacteristically be an added our evaluating is measure years periods changes, and change seasonality. dramatic business volumes X last a stable valuable two Page provide therefore, have temporarily change. into rolling accounts PIF policy as level It's because in trailing to slides. helpful in in effort for believe a in of trends. in activity The identifying indicator. multiple and, In we've X-quarter relatively a we new PIF more of new metrics it Year-over-year insight new force X and swings times

Year-over-year a PIF masks of responsive fourth policy our is significant in measure The X measures activity. were of in-force periods base effectively It quarter it more XX%. constant evolving. sequential underlying the quarter trend the quarter approximately In how at of is quarter's and change, the XXXX dynamics. decline

this quarter sequential our X.X% to PIF in noted, points slowed quarter fourth from by quarter. X.X% As decline the X.X

here. improvement minus by basis, business expansion. clearly our an minus from represents Progress new this was XX% to driven On XX%. more is annualized an visible It

Page for XX In turn more business highlight business Let's apps apps. Here, are the trending. new detail we how chart, shows bar new to this

of underway. re-expansion new the is highlighted, writings Joe business As

to the demonstrates our reopening. than pace by beginning quarter rate. PIF second the chart new the And Xx increased fourth were quarter or total the On rate QX. on of of about business approximately a of apps in to greater relative to equal have new business pace of the on represents our basis, month line This QX. April, is be new trajectory The Apps run the business volumes. quarter X.Xx

see, levels. are approaching first quarter can As second the XXXX of run quarter XQ rate the you and the

This PIF midyear. gives us by great confidence in stabilizing

We off. XXXX. level activity late unit expect lower early don't year, app seasonally volumes likely part Given the the of until significant in sequential will growth

Let's and this shift level. back a gears bring up

Our our line long-term XX remain expectations. Both to goal better us is We loss writings in and our the these advantages market ratio growth. better in competitive of are advantages, business to or maximize position achieve environment. performance and navigate combined ongoing effectively profile the a new than to confident or

conclusion, midyear. call I'll now a confident progress we're to closing continued to are business life where our PIF Joe PIF In in turn decline, comments. with the to overall by and quarter achieving over cover despite the and happy stabilization

Joseph Lacher

Matt. Thanks,

was Turning quarter. to levels. pre-pandemic was our Mortality $XX on income with operating Page Net first line the million Life for in business XX.

place As to business. continued expected, this modest on the pressure environment inflationary

compared new historical slightly business Although last the in levels first to were quarter overall persistency trends, down remained of with year. line

highlights earn Turning the midway combined results. targets, In new underlying we XX. of with underlying to to of rate quarters. we improvement few led and the quarter, overall XX.X%, through The business our the is fourth expansion delivering profitability the exceeded quarter to initiated ratio in and improved quarter more P&C next for consecutive Specialty over delivered business our solid reiterate closing, Page by

expect PIFs as throughout midyear to rates up We to new continue see XXXX. stabilize ramp business

business Life our continues to produce Lastly, stable earnings.

growth enabled storm the shareholders out intrinsic profit improvement with weather and we're the all to PIF. stakeholders. ability promises to clearly several Effective to our company, on stronger achieve to of to of our target While our Kemper we're come our has profitability, actions, to continuing combined the long-term value focus a results with quarter the providing completion dedicated delivering and of our successful execution initiatives, for on pleased strategic stabilizing and attractive

I'll now not could the Kemper our back strong to questions. without been efforts This dedication entire of Operator, it and to take have team. accomplished turn you

Operator

Instructions]. [Operator

Raymond Your from first line of question Peters comes the Gregory James. from

Charles Peters

Good afternoon, everyone.

the first I'm with stabilize guess, looking just being the reconcile being pivot seems you So might it information the additional and I'm in we run trying thanks to apps. rate that you Xx like on I in to business the at as charts was production for I expect what type PIF digesting actually color It the to in quarter. with quarterly that the fact provided that new was of -- PIF. first that actually up half. the

So the maybe of some math you can there. help me with

Joseph Lacher

Sure, issue seasonality a Greg. question. you is auto and the new The relatively Matt significant relative to I'll And too. Thanks amount specialty Joe, in is jump for this of get in buyers. start

If you it about the might think started you x. if far be, that

is quarter second bigger. The probably XX%

a and XX% maybe is quarter smaller smaller hair fourth The first. third X/X the quarter that or is than

second the to a quarter average first in third fourth. compared surge and So a in definitely the the there's quarterly and than bigger

a rate. new business write So what will will happen is at we greater

new it a of business looked the the be apps. because get seasonality a in year-over-year there's in that at the -- a about business of the will historically available apps the reasons one may same maybe We process. quarters rolling amount more but PIF element. That's X That's write we've marketplace, of new you

So change going the very with that's apps. at need tamps out PIF sequential look new and Right of business much look at the you seasonality really to you need to increase now, the it effect. the on

as to may it trying is be you second, a might with that early significantly. were be analogy use that late our we annualized give April What year. was to comfort third you up That saw

new the percentage business, the a through we number. increasing As of move will count comparable available continue an maybe have to gears

going quarter, So that you're second steady wind see quarter. up in will for the may premium the What just to up be written holding is double fourth direct digits. low

much that the up second higher half be the of than will for It year.

of You'll and see first growing the in count quarter next earned next premium quarter year. PIF in growing year the first

you particularly but line the business should as view give this XX, app at look look line. So Page new you that on a bars, the not

relative business had rate You been it in comparable year can late beginning see the force the of the to where very policies at is a in the to XXXX.

are in next back Premiums in premium PIF growth help? premium and to Does first half and premiums, that of the written next then of growing quarter, the written year be earned year. going significant the quarter

Charles Peters

Page That does. XX. were looking you at chart was as have talking, the actually I And you that on

start auto you're moving associated some margins, As running clarification there's your business. reconciling penalty new pieces, growing And or different new your just further sort of typically, you're target with the business specialty at going to that's that.

surprises again. should So you've markets I guess the started the first as marketing question, any business new up two, how [ your ]? when up new open about we and inside penalties you spigot And negative think opening business

Matthew Hunton

first I'll then Greg, for question and flip take this Matt. the is to second. the of part Joe it the

they to approach the through. come mentioned of re-expansion we're the business, we're to as how of we're as terms of that you dynamics we market reopening a In taking methodical new guys dynamics, the loss ensure terms in understanding that

speak, As that normal through expected we're as working priming through. working the we're pump, operational efforts so to

profile, volumes, loss expectations. everything in better of of performance, in than in, terms or coming is in In terms line terms of

in So is nothing surprises. there, line in to have this see what in time. no no note to Everything right we Absolutely surprises. would at with expected coming point

Joseph Lacher

that second from expansion at Matt. team through is on moving Absolutely, reiterate Yes. surprises to we're all what And very with thoughtfully piece, no that. the I seeing. The XXX% negative protect

overall Greg, -- on I the benefit think is new points maybe what got to from slowing or business X the might we aggregate X was suggest business you, combined I aggregate ratio. down the new

of full the business. probably new aggregate penalty we ratio on come roughly -- combined aggregate order. to when back same the will get Over is that So the in

this going the expands, comes combined it we're be happen year, it's that that will as the all will So happen right news off calendar -- now. what and a -- XX-plus at not running came again, on ratio to good news -- that bad

to year now described of and XXX% reversing X%. room reversal, some the in margins penalty running earn rate We of at actions. roughly quarters X% loss There as that of have more those non-rate business that. earned that's that right cover an a X year trend of the contemplated will, is enough in the we'll if rate we XX that you the new absolutely is re-adding or we're additional points what inside a than over or against

contemplated exceed do target combined It's that we in this course comes the of as It's in rate contemplated earned or in. the confidence over took. contemplated will meet how and rate next it's the we year our we year that. that and into XX with

Charles Peters

-- new is the percentage final on of it just guess at and skewing legacy Any match as there geography? ask running I'll just let is up any is I does on basis? you're the Okay. book geography. question a opening Or business, others what

Matthew Hunton

as is Yes, as we talked back we reopen, about again. going a we it's Matt I little this think lumpy on. be to turn things bit

-- we we And normal line. so and one they And states get of percentage may outside that's running, there's maybe as in back other see production then distributions. increase state, in up come

But the expecting patterns be and lumpy, further historical our long-term, geographic Short next in continue few opportunities. the distribution past. in what we've to to of quarters, work. term, generally, we've to we'll we look similar over as course what diversification we're for of very patterns, seen the terms in seen similar

Operator

from And next your line the of Piper comes Sandler. from question Paul Newsome

Jon Paul Newsome

But time. that great. bit as been be or thoughts Is it's go of surprised in and forward. prospectively A the the be given actions as would different any would all as changing over has any company increase given we little it changes rate helpful non-rate additional retention I in reason stable retention. on focus little why the there change be a business new would in been was the that there

Joseph Lacher

high-level this give a That's on fairly forward. in then is Joe. stability answer, performing. expect overall And retention. at you we're I'll going Paul. seeing a how once. what we'd Overall, That's I'll it's double-click consistent Sure,

to couple going slightly the of double-click of on business book I'm Now have. will, we if a it. different segments you Imagine, of

trying be of and X X very Some have for tenure. might this SRXX. might somebody to lapse. a then They months, business They months policy parts the an short-term run get

X have this around stuff months. life X, business policy There's a Some of people think X, tend longer. to nonstandard only A business longer of around years. that in for being was X auto X parts much lot of parts of stays times, or our my that's

-- segment of and a expected As have consistent as little long running we those new we think a business would around in for that of environment, the of -- almost those when very the those each of little In churn as book this retention, a some segments. what bigger they're a total reduce Each a is to percentage we of and term. those the mix longer, are some of not book. faster that the hang

So exactly slightly in them are that segments as as very will but change expect operating total, we consistent. the and

hard slightly go them retentions views. soft In now. soft market, different a get and you This see hard a to see very In down. markets, you up in right go hard much a tend market, markets, market you is

fully XX the the not the and describe be forward hard of that measuring seeing months would market. a recognizing generally of PIF as mix, what we're we in roll the in going the consistent, So you What benefits change. we modest next benefits I of seeing the market. for retention expect but there's XX, to over benefits mix is a we're We're as hard

Jon Paul Newsome

the earlier And everything could California as is more how particularly but of are you've talk as but Maybe you went or other competitive of states within question, just Farm [indiscernible]. expectations about more there's standard contemplate California know in I rates was write Texas. extremely much. not you about -- is rates, Goosehead not raising are talking standards, State more obviously realize less well, you that out being maybe sort there's raising on whether and lots probably out the business, and today. And thinking big some world. competitive the the obviously, that's more everyone the I about -- second competition. are folks don't they mutuals The environment. some A

Matthew Hunton

Paul, obviously, this is Matt. varies texture quite Yes, bit there the state. a by

opportunity. companies potentially, the than more more taking markets, less You players, one larger would think marketplace, dynamics our -- rate that longer competitive little market, bit supply larger our getting seeing we're as a of we adequate have bit a California, creating what are fewer little in there especially market and seen normally about in that hard

said, over large which as to we and us their getting back lesser more rates to is to market a adequacy the they've is state, been competitive. That outlook. for carriers a relatively continue coming Florida, get line, big expect is in Texas, are which a but competitive that approved the degree, in state

there the more as Over adequate in last the confident business carriers and new their few quarters are price. more

And we similar, an see not marketplace. And marketplace. elastic It's pre-pandemic. so Florida dissimilar seen smaller operating operate along is very with would have Texas how our we competitive Florida to a very It's states.

the board, for a a it's generally, state. it but that hard underneath by across of So with But bit varies the market characterize as state. texture a would -- us, we sits by bit bit

Operator

from from [Operator Kligerman next question of Andrew Instructions] the TD. Your line comes

Andrew Kligerman

afternoon evening. Good a with little out Maybe me slides bit. or help

in remarks, on earned you've the in X%. mentioned the rate I that you've of -- quarter think the

as me there's imply the maybe another corner, in right-hand the -- XX, points look to I at look graph to I As it at in year. the XX the go that would

points. then But I mentioned think, XX you Joe,

for rate that And next of So we new the part that rate in differential? see could And that? kind X is A as of And do then increases a as B you over you quarters? the clarify maybe even quantify I what can guess is, see throw cadence speak? are you I'll on in Part you filing earning of

Bradley Camden

X-part miss question, know. to Brad. I Happy is on C, something, This B, let A, help. if me And the

rate we've about of that XX the We the the total got X rates earn quarter, in XX the points that then on X, for year, to at the rest chart for of Looking Slide right-hand for year. means of a in XXXX, and earned first in. points upper have we

earn second quarter, I then would about answer of in your that will the and and that earn tell QX. QX question? that of will rate you remaining half in Does the

Andrew Kligerman

perfect, And quantify rate? just you are Brad. that? could That's And new filing then you for

Bradley Camden

the we to rate at We're course. find states to to keep certain with earned big of told do We'll to have, normal trying always our part what's additional what where with adequacy look that rate When was in we going we say up trend. seeing trying up as indications, you're to I and looking you, file loss trend. loss -- indicative part catch But so gap we're continue And We've done that's and for need that, close. just on rate. now of right?

We we'll had the second first file year. back points the for need smaller in in of a the rate the as quarter, half and in trend our we little then states And X X indicate. as

Joseph Lacher

forward. it hold think, might filing trend that is I as what the loss encourage think profit would is get to result. is and what trying the we're what rate about is we're going this might as margins rate a to that matches Joe. The I you I describe way on And ground maintenance Andrew, mean

a allow us in what rebalance to get So to displayed rate trend excess profit for shows that non-rate the to should of Page to be actions the loss and believe be X They designed grow. us organization allowing moving to rate forward the a going we've will rate and spot in around. things get margins sub-XX required holding materially back or at to adjust actions you just that be in and them we to the combined shouldn't in growing keep below

view. was loss point, me a now, told months from have you one if Because X trend we'd

now, was we'd was X X, trend If we'd for be was from X. we'd but looking have points, one. you one, told it for another, me it If X looking loss months be

Andrew Kligerman

makes a Got it. first And somewhat looks chart just to severities. quarter indeed wrap you've significant. Slide on showing up That like got sense. And was it XX,

there just is that to rate you with for need question So are some to maybe pricing were up you you the And what that is, XX%. trend. keep always answering

a few number that said You times.

Joseph Lacher

-- So not a things. trend Those can of go price are in they're and that loss to of a digits. they're What of consistent themselves moving. certain indices with loss components would annualized annualized Slide on described of roughly saw pure to how are XX you items their see we severities trend. we're describe intended is is severity couple last continue high what I increase be intended single informationally, sense to to That's an quarter. that basis, give seeing of you you are some to and

question. to there. plus level. They're you There's somewhat we're trying to normal some modest not or by your around somewhat that minus volatility coverage, but point. it always X state, varies aggregates generally That that by exactly I'm varies remember it of the And roughly how phrased second part

is with target to let are always astute economically were better. to XX.X%. equations to to it when it times that being make XX. to a a pricing astute be asking, or You pricing we We're There are run might

no it percent and would might competitive and be There PIF when still bad we a XX%. were XX get could reason at be actually answer. times There might new enough will people let handle produce it more we to we be and grow example, claim it. operationally more a would actually be couldn't of x If price business, an try as write run combined. to to a fastest to a That the hire set

else. a running X% the If bad XX, should and something shrinking a XX%. answer, customer service experience, we deteriorate were economic provide profitability long-term at that's You move bad customer we bad back towards

to get 'XX Does have environment 'XX, that to the years or market on and What we've of trying would conversation have been much little as probably early be trying to last that are. got couple possible, on where help? a I'd been you as XX So bit what roughly is you, managers we're how that. good we And in operators to the and system. system to the the the had depending going and tell long-term grow 'XX, in conditions would with a we're and describe we shock moves around

Operator

UBS. line And question your comes from of from the Brian Meredith next

Brian Meredith

and on hear I'm fact I'm you progress on. I there. put new can just comments actually only comment you that reciprocal the to curious, about didn't And any increasing could maybe I that business, actually new wondering, the know Joe, that reciprocal, business just process the accelerate can kind of you're

Joseph Lacher

We there. push than something other populate Brian. in could reciprocal with could business Sure, the reinsurance. new We

is business. with populate to strategy Our it new

not best think that's the what to the continuing are the ways there prudent, it are various that. way operate. in balance that's various we're for things don't not the that's populate is to So and to accelerate trying trying sure us to and I It all do, I'm process. given to

to -- continuing write of going going it's at is new see be to new some quarter-to-quarter this going going is There's bit of it. category it's is business change to a have in to view much for X, before Not least X, increasing business, have to This little likely X to volume new it's quarters. penalty. a We're because a business long-term the there.

of bit underwriting business before grows. new little renewal not gets not It's that be likely may those it sort a to making, neutral on profit. -- This get It hovers of got actually produce to doesn't. produces a some and some making they volume until thing profit, second little the comes underwriting be it's and the renewing while an for some

on. kids. money, little really to suck going They like a going XX-day they This conducive a it eventually of I it's little resources they're there. just updates. then to bit some and little is for and while, while get analogy then get to job move of isn't a is lot productive a little take having And it make bit was the using with And a

interest. to continue but quickly a them I question. we We'll of We're good the you, give understand those as it's can, trying reasonably to balance. but as keep in moving to pieces all

Brian Meredith

you second guess, give going And reshaping it force things up, with happened my geographically. about question, of and kind back ramping I the given to get then are portfolio in you we're now does thinking what's policies or

are some you about? in more doing to in going possibly portfolio that? maybe sure result, you're thinking so that How heavy Is having a something that's restrictions your make not forward. As California

Joseph Lacher

echo going you and of you Sure. three to little I'll And do give history in I'm going said you remind an order. Great, earlier, I'm point this great Matt bit forward. some going thoughts. of were what then a question. to

when If in we in think XX%. past specialty in we were the were the percent XXXX, not-too-distance you got I hit, XX-some our this pandemic here, back team in business. When go auto California

We portfolio diversifying rapidly. have actually very been systematically and geographically the

other were That look. we California, by that a backwards geographies but doing by more shrinking And is growing not rapidly.

think reasonable the Forward, not because geographic we're grow we something because and in shrink will other operate but balance, to of thought will result. a necessarily places there's continue that finding to naturally trying process we with other to opportunities

ends is guess maybe California range that XX% in XX%, Our best overall.

what quarter. Now and Matt before, middle said this is the bucket, echoes we what said which last

Texas. than we're markets, As the California reopening and items and in new -- pieces may re-expanding new a or as there's competitive see recover Florida with business you faster and lumpiness different business growth more

change California. may Florida, actually faster than go You And see that a Texas, may month-to-month. little

actually normal, it you is in. we last how in over harbor, course moving the while little rebalancing. of have terms that's we're a days, We That XX expect, sometimes of if that chop the the will, watched in

any give over to reprimed kind next picture you quarterly kind system trying going or of of months we're that not and while or we're the target any to rebalanced. get really of the monthly profile So X

As we way and 'XX. work through our 'XX

right than to expect faster growth some I Texas California corner diversifying top of and us what was by other away growing it going look rapidly. that other we to that Page fully you I'd was faster than to to effectively some described very would X pre-pandemic, growth in something in showing to similar even some back Florida geographies, growth places California, the more that from and that which and in expect

Operator

And Raymond your from Peters next comes question line the of Gregory from James.

Charles Peters

Okay.

investment discontinued, portfolio in business? the be get results -- then One, I would I but know alternative on second preferred to the question quarter. around first have the I follow-ups. two progress So the And it's runoff the

we Just for wondering should if the of balance in the result saw quarter, that type year. portfolio of first expect out is we the of what that the

Bradley Camden

this Brad. Greg, is

bit business, is not going planned, On as if a than quicker the preferred expected. runoff the little

bit a we year $XXX better. track, this maybe indicated on the is million So little

plus million to $XX So this go left year.

on XX that's the investment alternative Page of I supplement. portfolio, On think the

in QX That's there, you to few about million, QX think there's If a was down look a returns. it to -- average $X.X investments. related I

the that I run be don't to forward. going expect rate

though, of a $XX million million, range. I'd thing that core fixed income out, has high other quarter the The point quality the portfolio, the very $XX in been stable

Operator

Joe to I'd are Lacher closing There back to remarks. for time. Mr. like at the turn questions no conference further this

Joseph Lacher

and where direction operator, described, it, you, little excited Albeit questions moving which as bit Hopefully, -- that, for quarter. next And I look your a direction. of with and your again you, recovering. to I forward thank bit with a in it's speed we're is and pit the little all to think feeling about enthusiastic better the the the Thank of speaking do. it's and we today. work it's I know Thanks. right about going everybody, with you

Operator

conclude you does participating. our conference that Thank And you. for Thank for today.

all disconnect. may You

Kemper (KMPR) 1 May 242024 Q1 Earnings call transcript