Charlie Lederer

Charlie Lederer asked for a geographical breakdown of the improving product environment, the commercial/personal mix in TWFG's M&A pipeline, and the outlook for contingent financing.

Answer

Gordy Bunch, CEO, Chairman, and Director, TWFG, noted that the market softening, which began in Q2 2025, is widespread with reduced rates and increased capacity, except for California. Cat-exposed hurricane geographies are relatively soft. He stated that M&A focuses on cultural fit, portfolio quality, and accretion rather than a specific commercial/personal mix, with recent acquisitions being majority commercial and the future pipeline being mixed. He expressed high confidence in achieving full-year contingent income projections.

Charlie Lederer asked for quantification and trajectory of new Connected Living partnerships (reverse logistics, Best Buy Geek Squad), the expected investment spend for next year, and the outlook for capital deployment in 2026 given the increased buyback guide.

Answer

CEO Keith Demmings stated that both new Connected Living partnerships would begin contributing positively to EBITDA in 2026, with current year investments tapering off. CFO Keith Meyer emphasized Assurant's strong capital position and balanced approach to capital allocation, including organic investments, M&A, buybacks, and dividends, with more detailed 2026 guidance to follow in February. Demmings also mentioned expectations for continued growth across all three businesses and a higher corporate loss in 2026 due to a new program.

Charlie Lederer inquired about the expected impact and trajectory of new Connected Living partnerships (reverse logistics, Best Buy Geek Squad), future investment spend, and the implications of the increased buyback guide for 2026 capital deployment.

Answer

Keith Demmings, President and CEO, stated that both new Connected Living partnerships would contribute positively to EBITDA in 2026, with investments tapering off. Keith Meier, CFO, emphasized Assurant's strong capital position and balanced approach to capital allocation, including organic investments, M&A, buybacks, and dividends, promising more 2026 guidance in February. Demmings also noted consistent double-digit growth in renters, fueled by renewed and new PMC partnerships.