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    Francis Matten • BMO Capital Markets

    Francis Matten's questions to Lemonade Inc (LMND) leadership

    Francis Matten's questions to Lemonade Inc (LMND) leadership • Q1 2025

    Question

    Francis Matten inquired about the subrogation benefit from the California wildfires, asking if the rights were sold and if further recoveries are possible. He also asked about plans to recoup the California FAIR Plan assessment through rate increases.

    Answer

    CFO Timothy Bixby confirmed that Lemonade sold the subrogation rights for the Eaton fire, recognizing an approximately $8 million impact, with the substantial portion of total subrogation now accounted for. He added that the company plans to recover as much of the FAIR Plan assessment as is allowed, up to the 50% limit, over a two-year period.

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    Francis Matten's questions to Lemonade Inc (LMND) leadership • Q3 2024

    Question

    Francis Matten inquired about Lemonade's cash flow outlook, specifically when it expects to be consistently positive excluding synthetic agent financing. He also asked for the rationale behind maintaining the full-year EBITDA guidance despite a Q3 beat and questioned the drivers of the wide delta between the gross and net loss ratios in the quarter.

    Answer

    CFO Timothy Bixby explained that net cash flow is expected to be consistently positive going forward, with operating cash flow turning consistently positive by the end of 2025 and EBITDA by year-end 2026. He clarified that the Q3 beat was due to a favorable, non-recurring CAT impact, and the Q4 guide reflects more typical assumptions and high growth spend. The gross-to-net loss ratio gap was attributed to CAT events being excluded from quota share reinsurance and a one-time large loss from the pre-acquisition Metromile book.

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    Francis Matten's questions to Prudential Financial Inc (PRU) leadership

    Francis Matten's questions to Prudential Financial Inc (PRU) leadership • Q1 2025

    Question

    Francis Matten asked about individual retirement sales trends in April and the drivers behind strong growth in the Group Insurance business.

    Answer

    CEO Andy Sullivan declined to comment on intra-quarter sales trends, emphasizing a long-term view. CFO Yanela Frias attributed the strong Group Insurance results to momentum in life and disability, price discipline, and a successful segment diversification strategy, particularly in the under-5,000-lives market, leading to an improved benefit ratio and a positive outlook.

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    Francis Matten's questions to Prudential Financial Inc (PRU) leadership • Q4 2024

    Question

    Francis Matten sought clarification on whether headwinds from new business strain and runoff impact GAAP earnings or the cash flow ratio. He also asked if the international growth outlook assumes a normalization of surrender rates in Japan.

    Answer

    CFO Yanela Frias clarified that her comments on headwinds from strain and runoff referred specifically to the impact on GAAP core earnings. Andy Sullivan, Head of International Businesses, explained that the international earnings growth outlook is driven by favorable spreads, sales momentum, and expense discipline, which are expected to more than offset continued near-term pressure from surrenders in Japan.

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    Francis Matten's questions to Aflac Inc (AFL) leadership

    Francis Matten's questions to Aflac Inc (AFL) leadership • Q1 2025

    Question

    Francis Matten asked about the early sales performance of the new cancer product launched in Japan and the competitive dynamics within the broader Japanese medical insurance market.

    Answer

    Daniel Amos, Chairman and CEO, and Virgil Miller, President of Aflac Incorporated, expressed confidence in the product strategy. Masatoshi Koide, President of Aflac Japan, reported that the new cancer product, launched in March, is progressing as expected with a positive start across all channels. Koichiro Yoshizumi, an executive from Aflac Japan, added that despite a competitive medical market, Aflac expects to maintain its #1 share by leveraging its brand history and new product offerings.

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    Francis Matten's questions to Equitable Holdings Inc (EQH) leadership

    Francis Matten's questions to Equitable Holdings Inc (EQH) leadership • Q1 2025

    Question

    Francis Matten from BMO Capital Markets questioned the risk to the full-year cash flow guidance and asked about the long-term strategy for its ownership stake in AllianceBernstein.

    Answer

    CFO Robin Raju stated that current market conditions place them at the lower end of the $1.6-$1.7 billion guidance range but expressed comfort with it. CEO Mark Pearson said he was pleased with the increased 69% ownership in AB, citing synergies and the value of its public currency, but confirmed no current plans to increase the stake further.

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    Francis Matten's questions to Equitable Holdings Inc (EQH) leadership • Q4 2024

    Question

    Francis Matten of BMO Capital Markets inquired about the drivers behind the 2024 increase in Value of New Business (VNB) and the accelerated progress in the Wealth Management segment.

    Answer

    CFO Robin Raju credited the VNB growth to strong, capital-efficient sales in the individual retirement business. Nicholas Lane, President of Equitable Financial, confirmed the Wealth Management business is ahead of its 2027 earnings plan due to strong net flows and rising advisor productivity, and that they will reassess targets once the current one is met.

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    Francis Matten's questions to Unum Group (UNM) leadership

    Francis Matten's questions to Unum Group (UNM) leadership • Q1 2025

    Question

    Francis Matten, using the name Jack Matten, asked what drove strong statutory earnings despite GAAP pressure and questioned if the alternative investment income outlook was at risk without a market recovery.

    Answer

    CFO Steven Zabel clarified that Q1 GAAP results were close to expectations, so the underlying statutory earnings were also in line with the annual plan. He explained the low alternative investment yield was due to a reporting lag, not market performance, and the full-year outlook does not depend on a market recovery, but on receiving a full year of reporting.

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    Francis Matten's questions to Unum Group (UNM) leadership • Q4 2024

    Question

    Francis Matten asked for details on the elevated LTC incidence rates and the drivers behind the improved outlook for U.S. statutory earnings and international dividends.

    Answer

    CFO Steven Zabel explained that elevated LTC incidence in Q4 was consistent with Q3 and is expected to moderate in 2025 as claim inventories normalize post-pandemic. The improved 2025 Closed Block earnings outlook is driven by this expected moderation and better anticipated yields from the alternative investment portfolio. The step-up in overall capital generation is a direct result of expected top-line growth flowing through to statutory earnings with consistent, strong margins.

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    Francis Matten's questions to CNO Financial Group Inc (CNO) leadership

    Francis Matten's questions to CNO Financial Group Inc (CNO) leadership • Q1 2025

    Question

    Francis Matten of BMO Capital Markets asked if CNO expects a consumer shift from Medicare Advantage to Medicare Supplement given industry margin pressures, and inquired about the drivers of RBC ratio variability.

    Answer

    CEO Gary Bhojwani stated CNO is well-positioned for any shift, as it manufactures Med Supp but only distributes MA, making a shift to Med Supp favorable. CFO Paul McDonough explained the RBC ratio was impacted by timing issues, including an increase in non-admitted assets and the statutory accounting for FIA hedges, which created a temporary adverse impact due to declining equity markets.

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    Francis Matten's questions to CNO Financial Group Inc (CNO) leadership • Q4 2024

    Question

    Francis Matten of BMO Capital Markets inquired about the drivers of the 2025 excess cash flow outlook and the factors that could lead to results at the high or low end of the range. He also asked about the long-term outlook for the expense ratio following the IT initiative.

    Answer

    CFO Paul McDonough attributed the cash flow guidance to a balance of organic growth and business investments. He identified the pace of growth, the economic climate, and investment portfolio risk as key variables for the range. Regarding the expense ratio, McDonough expects it to decline in the long run due to operating leverage, though it may remain flat in the near term because of pressures from the tech investment and costs related to exploring new Bermuda reinsurance sessions.

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    Francis Matten's questions to Principal Financial Group Inc (PFG) leadership

    Francis Matten's questions to Principal Financial Group Inc (PFG) leadership • Q1 2025

    Question

    Francis Matten of BMO Capital Markets asked for a forward-looking view on RIS fee rate drivers and the outlook for the pension risk transfer (PRT) market amid volatility.

    Answer

    Executive Christopher Littlefield reiterated the guidance of 2-3 bps of annual fee compression in normal markets, driven by pricing and product mix. He clarified that a move to spread-based products impacts the total revenue rate, not the fee rate. For PRT, Littlefield expects another strong year, similar to 2024, as plan funding levels remain high. CEO Deanna Strable added that plans considering PRT are typically de-risked, making them less sensitive to equity market swings.

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    Francis Matten's questions to Principal Financial Group Inc (PFG) leadership • Q4 2024

    Question

    Francis "Jack" Matten of BMO Capital Markets asked if the international pension growth outlook had changed beyond the announced resegmentation and FX impacts, particularly due to the Hong Kong transaction. He also requested commentary on the trends impacting net cash flows in the Investment Management segment.

    Answer

    Interim CFO Joel Pitz explained that the 2025 outlook for international pension is similar to 2024 on a constant currency basis, with reported results drawn down by FX, but expects continued margin expansion. President of Asset Management Kamal Bhatia highlighted strong non-affiliated flows in Investment Management, driven by a diverse client base and geographies, including a $2 billion credit mandate win. He noted momentum in private markets and expects it to continue.

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    Francis Matten's questions to Corebridge Financial Inc (CRBG) leadership

    Francis Matten's questions to Corebridge Financial Inc (CRBG) leadership • Q4 2024

    Question

    Francis Matten from BMO Capital Markets sought a detailed breakdown of the 18 basis point sequential drop in Individual Retirement base spreads and asked if the guided 5-10% dividend growth is a good long-term proxy.

    Answer

    CFO Elias Habayeb clarified that the majority of the 18 bps compression was due to the impact of Fed rate cuts on the concentrated floating-rate exposure in that segment. He also confirmed that a 5-10% annual increase in dividends from insurance subsidiaries is a fair baseline assumption for the next couple of years, driven by disciplined capital management.

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    Francis Matten's questions to Primerica Inc (PRI) leadership

    Francis Matten's questions to Primerica Inc (PRI) leadership • Q4 2024

    Question

    Francis Matten asked for quantification of the cost-of-living headwind on Term Life sales and its influence on the 2% growth guidance. He also inquired about ISP redemption rate trends and potential future pressures.

    Answer

    CEO Glenn Williams explained that while the headwind is difficult to quantify precisely, it is a known factor creating resistance, which is incorporated into the conservative growth forecast. Regarding redemptions, he noted that while smaller redemptions rise in tough economic times, the overall rate remains low and stable because most assets are in long-term retirement accounts, a trend he expects to continue.

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