Wes Carmichael

Wes Carmichael followed up on the possibility of obtaining early reciprocal jurisdiction approval for the Bermuda entity, inquiring about plans to accelerate the pace of reinsurance and the expected increase in excess cash flows for 2026 or 2027.

Answer

Tom Kalmbach, CFO, and Frank Svoboda, Co-CEO, stated that early reciprocal jurisdiction approval is possible but contingent on regulatory consent. They clarified that no benefits from this are factored into the 2026 plan, with potential distributions expected towards late 2026 or starting in 2027, aiming for annual cash flows to the parent of up to $200 million over time as the reinsurance block expands.

Wes Carmichael inquired about the details of the initial Bermuda reinsurance transaction, including its size and scope. He also asked about the possibility of obtaining early reciprocal jurisdiction approval for Bermuda, plans to accelerate the pace of reinsurance, and the expected increase in excess cash flows in 2026 and 2027.

Answer

Tom Kalmbach, CFO, detailed that the initial Bermuda reinsurance transaction involved approximately $1.2 billion of statutory reserves, established in 2025 to ensure audited financial statements for 2026. He confirmed intentions to incrementally reinsure more new and in-force business in 2026. Tom Kalmbach and Frank Svoboda, Co-CEO, stated that early reciprocal jurisdiction approval is possible but subject to regulatory consent, which could enable additional dividend distributions, likely towards the end of 2026. They anticipate working towards an annual increase of up to $200 million in parent cash flows by 2027 and beyond as the reinsurance block grows.