Joel Hurwitz • Dowling & Partners Securities, LLC

Answer

EVP & CFO Tracy Tan explained that mortality has been favorable for over ten quarters and is stabilizing at a lower level, suggesting a potential change to long-term assumptions in the Q3 review. She attributed the ISP margin pressure to higher variable growth-related expenses, commission true-ups, and increased investment in technology to support strong sales volume.

Ask Fintool Equity Research AI

Answer

Ramy Tadros, Regional President - U.S. Business, confirmed that the regional market was a significant contributor to the 9% year-to-date sales growth in a competitive but rational market. Eric Clurfain, Regional President - Latin America, attributed LATAM's success to strong, diversified fundamentals across its six key markets, with growth coming from all channels, particularly its regional embedded insurance digital platform, 'Accelerator'.

Ask Fintool Equity Research AI

Answer

Ramy Tadros, Regional President - U.S. Business, highlighted that the regional market was a very important contributor to the 9% year-to-date sales growth in a competitive but rational market. Eric Clurfain, Regional President - Latin America, explained that LatAm's strong double-digit constant currency growth is broad-based across its six markets and diversified channels, with particularly rapid emergence from digital ecosystems and embedded insurance partnerships via its Accelerator platform.

Ask Fintool Equity Research AI

Answer

Executive Ramy Tadros explained that the nonmedical health ratio was in line with expectations, as Q1 is a seasonally high utilization quarter for dental. He noted that disciplined underwriting actions taken on January 1st renewals position the business for a gradual decline in the ratio through the year. Executive Lyndon Oliver attributed the 41% constant currency sales growth in Other Asia primarily to the addition of new bank partners in China and strong performance from face-to-face channels in Korea.

Ask Fintool Equity Research AI

Answer

EVP & Global Chief Risk Officer Jonathan Porter attributed the individual life results to large claims volatility, noting that year-to-date performance is in line with expectations. EVP & CFO Axel André explained the VIF credit was a process pursued with rating agencies, which are now a co-binding constraint with regulatory capital, and that further opportunities for VIF recognition exist.

Ask Fintool Equity Research AI

Answer

CFO Axel Andre confirmed a 6% VII return is assumed in the 2025 run-rate targets and clarified that while some unrealized gains are non-operating, all realized returns ultimately flow through operating income. CEO Tony Cheng described in-force actions as a normal, though lumpy, part of business where teams work to enforce treaty rights, and he expressed hope for some positive outcomes by year-end.

Ask Fintool Equity Research AI

Answer

Chief Risk Officer Jonathan Porter explained the mortality update reflects recent experience and long-term views, with an expectation for excess mortality to continue for another 4-5 years. CFO Axel Andre clarified the $136 million charge is an accounting write-off of a reinsurance recoverable asset, which will be offset by future earnings benefits of approximately $20 million in 2025, growing over time.

Ask Fintool Equity Research AI

Answer

Amy Friedrich, President of Benefits & Protection, stated that while full-year growth will likely miss the 6-9% target, she expects improvement as brokers react to competitors' high dental renewal rates, favoring Principal's bundled offerings. Regarding Post Advisory, President & CEO Deanna Strable and Asset Management CEO Kamal Bhatia explained the divestiture is part of a strategy to reduce capability overlap, will have an immaterial impact on earnings, and does not change medium-term targets.

Ask Fintool Equity Research AI

Answer

CEO Deanna Strable acknowledged the dynamic environment but emphasized the company's resilient, diversified portfolio and strong Q1 start. Interim CFO Joel Pitz added that while market volatility impacts fee revenue, the company is actively managing expenses and benefits from dissipating FX headwinds, keeping the EPS target achievable. Pitz noted that expense levers include reduced travel and delayed hiring, aligning with their historical practice of matching expenses to revenue.

Ask Fintool Equity Research AI

Answer

President of Retirement and Income Solutions Christopher Littlefield noted that while prioritizing profitable revenue growth, RIS flows improved due to healthy recurring deposits and record retention, though VAs with GMWB saw outflows. For 2025, he expects withdrawal rates to stabilize but flows to be impacted by strong 2024 equity markets. On real estate, President of Asset Management Kamal Bhatia sees an early, volatile recovery with rising transaction activity. Interim CFO Joel Pitz added that PFG expects improved VII returns in 2025, with real estate gains recognized upon sale, likely in the second half of the year.

Ask Fintool Equity Research AI

Answer

CEO Dan Houston provided a high-level endorsement of the business. An executive, Amy Friedrich, clarified that year-to-date growth remains strong at 7.5% and the quarterly slowdown was primarily due to the absence of lumpy Paid Family and Medical Leave (PFML) sales seen in the prior year. Regarding dental, Friedrich noted that while the loss ratio improved sequentially, it remains elevated due to inflation. She confirmed that consistent pricing actions are underway, with over 90% of the block repriceable annually, and expects the loss ratio to continue declining.

Ask Fintool Equity Research AI

Answer

CEO Gary Bhojwani attributed the additional DTC strength to strong production from the direct sales force and successful experiments with third-party partnerships. CFO Paul McDonough explained that while there was a reversal of the Q1 impact, overall statutory income was moderated by alternative investment performance. He noted the resulting 378% RBC ratio was by design, aligning it closely with the 375% target.

Ask Fintool Equity Research AI

Answer

Chief Financial Officer Christopher Neczypor confirmed that the lower expenses are a direct, sustainable result of efficiency actions taken last year, with savings being reinvested into high-growth areas like the Group business. On disability, he attributed the strong performance to both lower incidence rates and strong recoveries but declined to quantify the specific contribution of each factor, noting they are somewhat linked.

Ask Fintool Equity Research AI

Answer

CEO Heather Lavallee explained the Voluntary growth moderation was due to tough comparisons against large, non-repeating case wins from the prior year. Jay Kaduson, CEO of Workplace Solutions, affirmed the business pipeline remains strong. Regarding retail wealth, Lavallee confirmed that modest, pre-forecasted investments are underway to hire advisors and enhance technology. Kaduson added that Voya is building on a strong foundation to capture the growing demand for holistic workplace advice.

Ask Fintool Equity Research AI

Answer

CEO Heather Lavallee explained that the higher voluntary loss ratio is a deliberate strategy to increase client value and product utilization, not a reaction to competitive pressure. Regarding disability, she confirmed Voya will continue its long-standing reinsurance partnership to manage long-tail risk, while in-sourcing leave and short-term disability administration to control the customer experience.

Ask Fintool Equity Research AI

Answer

Executive Rob Grubka confirmed the participant growth momentum is in both recordkeeping and full-service segments, supported by technology investments that enable scale. On Stop Loss margins, Grubka stated that while commissions are a factor, Voya leverages its scale and operational discipline to manage overall expenses effectively, and the company remains confident in its ability to achieve the 77%-80% loss ratio target.

Ask Fintool Equity Research AI

Answer

CFO Elias Habayeb attributed the Q1 expense increase to seasonality from equity grant vesting and payroll taxes. He noted the voluntary retirement program has an $85 million one-time cost, with savings partially reinvested and the full run-rate benefit expected by early 2026. CEO Kevin Hogan highlighted that advisory and brokerage assets grew 5% year-over-year to $16 billion and emphasized the large opportunity to convert 1.6 million in-plan-only customers to broader advisory relationships.

Ask Fintool Equity Research AI

Answer

CFO Elias Habayeb provided a new quarterly run-rate earnings expectation for the Life business of $110-$120 million, with the first quarter typically being seasonally weaker. CEO Kevin Hogan reported that the new RILA product had a strong start, with over $90 million in applications by year-end, and he expects to gain market share as more distribution partners come online.

Ask Fintool Equity Research AI

Answer

CFO Elias Habayeb explained the negative call and tender income was a limited event caused by a specific bond, purchased at a premium, being called during the quarter. President and CEO Kevin Hogan addressed the PRT outlook, stating the pipeline remains very strong despite no transactions in Q2, as the company focuses on full plan terminations which occur episodically.

Ask Fintool Equity Research AI

Answer

CFO Yanela Frias explained that the benefit from strong PRT sales was more than offset by an internal expense allocation shift, lower income on cash balances due to rate changes, and an accounting refinement. CEO Andy Sullivan commented that the PRT market remains robust long-term, with no impact from recent litigation, though he expects a normalization in transaction volume in 2025 due to market volatility.

Ask Fintool Equity Research AI

Answer

CFO Robin Raju attributed the quarterly spread noise to decreasing short-term rates on floating-rate assets, emphasizing the year-over-year growth trend. Regarding Bermuda, Raju confirmed the entity is set up and operational, providing capital management optionality, but offered no further specific updates.

Ask Fintool Equity Research AI

Answer

CFO Robin Raju reiterated that the MVA impact is subject to quarterly noise from multiple factors and advised using the historical $15 million average for modeling. Regarding Group Retirement, he attributed the strong results to high earnings leverage from equity markets and a 12% year-over-year increase in spread-related income, noting the business is stable and this performance should continue.

Ask Fintool Equity Research AI

Answer

EVP Chris Pyne explained the drop was anticipated as the market normalized post-COVID and confirmed that tech-enabled platforms do improve persistency by making Unum's services more integral. CFO Steven Zabel and CEO Richard McKenney emphasized that the ultimate goal is top-line growth, which was strong, and that current persistency near 90% remains a healthy level.

Ask Fintool Equity Research AI

Answer

CFO Steve Zabel updated the voluntary benefits guidance, stating they would now peg the benefit ratio closer to the mid-40s but remain confident in the line's returns and earnings power. Chris Pyne, Head of Group Benefits, confirmed that sales aligned with strategic capabilities were critical to winning new business, particularly in the upmarket segment where leave management solutions are a key focus.

Ask Fintool Equity Research AI

Answer

CFO Steven Zabel updated the forward-looking benefit ratio for the VB business to the mid-40s, a modest increase from the prior 40-43% target, while affirming confidence in the segment's returns and earnings power. Chris Pyne, head of Group Benefits, confirmed that sales tied to strategic capabilities like leave management and HCM platform integration were critical drivers of new business wins, particularly in the up-market segment where these solutions are highly valued.

Ask Fintool Equity Research AI

Answer

Chris Pyne, head of Group Benefits, expressed confidence, citing a strong pipeline with an uptick in both the number and quality of RFPs, particularly in the large case market where Unum's capabilities are resonating. He noted that while persistency has been strong, there was a slight increase in market activity in 2024, which could put some pressure on the book but also creates new sales opportunities.

Ask Fintool Equity Research AI

Answer

Virgil Miller, President of Aflac U.S., explained that U.S. sales faced tough comparisons and were impacted by a strategic adherence to underwriting discipline and a slower-than-expected recovery in dental sales following a system implementation issue. CFO Max Broden clarified that the Japan margin outlook is affected by lower expected floating rate income in 2025 due to anticipated rate cuts, noting that the company's interest rate swap hedge is currently out-of-the-money and not providing a benefit.

Ask Fintool Equity Research AI

Answer

Koichiro Yoshizumi, in charge of Sales and Marketing in Japan, explained that the new Tsumitas product (asset formation + nursing care) is driving growth by attracting younger customers and enabling cross-selling of third sector policies. He noted that marketing for the 50th anniversary will focus on the unique value of their cancer insurance and concierge services, with a new product planned for next spring. For medical insurance, a rebranded product with unique coverage is showing a gradual sales recovery.

Ask Fintool Equity Research AI