Financial Data and Key Metrics Changes - Adjusted operating earnings for the second quarter were $350 million, supported by strong performance from spread products and higher yields in the bond portfolio [17][19] - Adjusted operating earnings per share was $4.87, with an adjusted figure of $5.12 after accounting for notable items, reflecting a 5% increase from the previous year [20] - Total adjusted capital exceeded $5.3 billion, a 5% increase since year-end 2024, with risk-based capital estimated at 566% [13][34] Business Line Data and Key Metrics Changes - Retail annuity sales reached $4.4 billion, a 9% increase from the first quarter and a 4% increase year-over-year, driven by RILA and fixed annuity sales [7][19] - RILA account balances increased by nearly 80% year-over-year, with sales approaching $1.4 billion, up 16% from the previous quarter [6][20] - Variable annuity net outflows improved, totaling $2.2 billion, down 27% year-over-year and 39% from the first quarter [11][19] Market Data and Key Metrics Changes - Average retail annuity AUM grew to $249 billion, up from year-end 2024, supported by strong separate account returns [22] - The company experienced a 9.4% return on separate account assets, contributing approximately $19 billion to AUM [45] Company Strategy and Development Direction - The company remains committed to a balanced capital management strategy, focusing on disciplined investments, maintaining a strong balance sheet, and consistent capital returns to shareholders [15][32] - Jackson is exploring opportunities for risk transfer and potential M&A to create new streams of capital generation [55][74] - The company aims to enhance its product offerings and distribution capabilities to meet diverse market needs [62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong capital generation and ability to support future growth initiatives while returning capital to shareholders [14][29] - The need for financial security in retirement is emphasized, with a focus on providing flexible protection and income-oriented solutions [15][37] Other Important Information - The company launched a new digital experience for financial professionals to enhance service and support [11][12] - Jackson was recognized in Barron's annual 100 Best Annuities Guide, highlighting its commitment to product innovation [12] Q&A Session Summary Question: Excess capital position and potential uses of capital - Management reiterated the philosophy of generating excess capital first, then returning it to shareholders while maintaining a strong balance sheet [41][43] Question: AUM levels and equity market impact on earnings - Strong equity market performance contributed to AUM growth, with expectations of solid margins despite some variable expense components [45][46] Question: Strategic considerations for business remixing and risk transfer - Management is open to strategic partnerships and risk transfer opportunities that enhance shareholder value while maintaining a diversified product mix [50][55] Question: RILA product features and competition - RILA sales momentum is strong, with competitive offerings including income options, positioning the company well in the market [61][62] Question: Managing RILA and legacy VA risk - The company manages RILA and legacy VA business separately, leveraging natural offsets in equity risk for efficiency [72] Question: Potential for inorganic growth using Brook Re - Management sees opportunities to leverage Brook Re for M&A transactions, enhancing capital generation and free cash flow [74][83]

Financial Data and Key Metrics Changes - The accident year combined ratio improved to 94.6%, resulting in an underwriting profit of $5,600,000, a significant increase from $96,700,000 recorded last year [6] - Net income for the quarter was $10,300,000, consistent with last year's results of $10,100,000 [12][13] - Book value per share increased from $47.85 at March 31 to $48.35 at June 30 [12] Business Line Data and Key Metrics Changes - Gross premiums grew 18% over 2024, reaching $109,900,000, excluding terminated contracts [7][16] - Wholesale commercial premiums increased by 8% to $69,100,000, with average rate increases of about 4% [17] - Bacon Express premiums grew 27% to $12,400,000, driven by organic growth [18] Market Data and Key Metrics Changes - The overall premium growth outlook for 2025 is positive, with expectations of 10% growth [19] - The non-cat loss ratio improved to 50.1 in 2025 from 54.1 in 2024, indicating better underwriting performance [15] Company Strategy and Development Direction - The company is investing in technology and expanding underwriting capabilities through organic growth and selective acquisitions [10] - A new policy rating and issuance system is expected to be rolled out to agency partners in early 2026 [8] Management Comments on Operating Environment and Future Outlook - Management noted that while there are growth opportunities in certain segments, there are also emerging price competition in small commercial lines [23] - The company expects to maintain solid premium pricing in line with loss inflation [19] Other Important Information - The company received approval for $100,000,000 in dividends from its insurance subsidiaries to bolster liquidity [9] - Discretionary capital was reported at $265,000,000, supporting growth in the Agency and Insurance Services segment [20] Q&A Session Summary Question: What is the nature of the corporate expenses related to business development? - Management explained that they are looking to expand agency operations and have been reviewing various opportunities, which involves some due diligence costs [22] Question: What is the outlook for the overall E&S market? - Management indicated that while there are growth opportunities in certain segments, there is increased price competition in small commercial lines [23] Question: Will administrative expenses continue to grow? - Management stated that while they are engaging outside contractors for reviews, any significant increase in expenses would likely coincide with closing transactions [28][30] Question: What is the exposure to new fires in California? - Management confirmed that initial reserves for California wildfires have remained stable, with no significant new exposure identified [31] Question: What are the return on equity targets for the next few years? - Management expects returns on equity to reach around 12% for the insurance operations and 8% to 9% for the holding company, with a focus on reducing the expense ratio [34][35]

Financial Performance Highlights - Net earnings for the three months ended June 30, 2025 were $174 million, while core net operating earnings were $179 million[3] - Diluted earnings per share for the three months ended June 30, 2025 were $207, and core net operating earnings per share were $214[3] - Property and Casualty net written premiums for the three months ended June 30, 2025 were $1803 million[3] - The annualized return on equity was 150%, and the annualized core operating return on equity was 155% for the three months ended June 30, 2025[3] Property and Casualty Insurance Segment - Underwriting profit for Property and Casualty Insurance was $113 million for the three months ended June 30, 2025[5] - Net investment income for Property and Casualty Insurance was $179 million for the three months ended June 30, 2025[5] - The combined ratio for Specialty Property and Casualty was 931% for the three months ended June 30, 2025[3] Balance Sheet and Capitalization - Total assets as of June 30, 2025 were $30669 million[3] - Shareholders' equity, excluding AOCI, was $4648 million as of June 30, 2025[3] - The book value per share, excluding AOCI, was $5574 as of June 30, 2025[3] - Total principal amount of long-term debt was $1498 million as of June 30, 2025[14] Investment Portfolio - Total cash and investments were $16049 million as of June 30, 2025, with fixed maturities representing 66% of the investment portfolio[16, 20] - Average yield on the overall portfolio, net, was 450% for the three months ended June 30, 2025[17]

Core Insights - American Financial Group, Inc. (AFG) reported second-quarter 2025 net operating earnings per share of $2.14, exceeding the Zacks Consensus Estimate by 2.9%, but reflecting a 16.4% year-over-year decline due to reduced underwriting profit and lower returns on alternative investments [1][8]. Financial Performance - Total revenues for the quarter reached $1.8 billion, marking a 3.2% increase year over year, driven by higher property & casualty (P&C) insurance net earned premiums, although it fell short of the Zacks Consensus Estimate by 9.2% [3][8]. - Net investment income decreased by 2.1% year over year to $184 million, which was above internal estimates but below the Zacks Consensus Estimate of $188 million [3][8]. - Total costs and expenses rose by 4% year over year to $1.7 billion, attributed to higher losses, loss adjustment expenses, and commissions, yet this was lower than the internal estimate of $1.8 billion [4]. Segment Analysis - The Specialty P&C Insurance segment generated $1.8 billion in net written premiums, reflecting a 7% year-over-year increase, supported by new business opportunities and favorable renewal rates [5]. - Net written premiums in the Property & Transportation Group grew by 10% year over year to $759 million, although this was below the internal estimate of $853.3 million [6]. - The Specialty Casualty Group saw a 2% year-over-year increase in net written premiums to $765 million, also falling short of the internal estimate [6]. - Specialty Financial net written premiums rose by 12% year over year to $279 million, again below the internal estimate [6]. Underwriting and Profitability - Pre-tax core operating earnings for the P&C Insurance segment were $273 million, down 14.4% year over year [7]. - The underwriting profit for the Specialty P&C Insurance segment decreased by 24.5% year over year to $114 million, with lower profits in Specialty Casualty and Property and Transportation Groups offsetting gains in Specialty Financial [7]. - The combined ratio for the Specialty Group worsened by 260 basis points year over year to 93.1%, influenced by a deterioration of 250 bps in Property & Transportation and 480 bps in Specialty Casualty, despite a 630 bps improvement in Specialty Financial [8][9]. Capital and Returns - As of June 30, 2025, AFG had total cash and investments of $16 billion, a 1.2% increase from the end of 2024, exceeding internal estimates [10]. - Long-term debt remained stable at $1.5 billion, unchanged from the end of 2024 [10]. - The book value per share, excluding accumulated other comprehensive income, was $55.74, down 0.5% from the end of 2024 [10]. - The annualized return on equity for the second quarter was 15%, contracting by 300 basis points year over year [11]. Dividend Policy - AFG paid cash dividends of 80 cents per share during the second quarter [12].

Key Takeaways LMND posted Q2 loss of $0.60/share, beating estimates and narrowing from the prior-year loss of $0.81.Revenues rose 35% YoY to $164.1, driven by higher premiums and investment income.Q3 revenue guided to $183-$186M; 2025 revenue outlook at $710-$715M.Lemonade, Inc. (LMND) reported second-quarter 2025 net loss of 60 cents per share, narrower than the Zacks Consensus Estimate of a loss of 81 cents. In the year-ago quarter, LMND had incurred a loss of 81 cents per share. This year-over-year impro ...

Financial Data and Key Metrics Changes - The company generated adjusted operating earnings per share of $2.46 in the second quarter, a 13% increase over the prior year [13] - Net income was impacted by investment losses and severance expenses, with $18 million incurred in severance expenses during the quarter [14] - The company added approximately $200 million of excess capital in the quarter, totaling approximately $400 million year to date [14][22] Business Line Data and Key Metrics Changes - Retirement segment generated $235 million of adjusted operating earnings in the quarter, representing a 1019% increase over the prior year [15][16] - Investment Management achieved adjusted operating earnings of $51 million for the quarter, a 2% increase year over year [18] - Employee Benefits reported adjusted operating earnings of $69 million in the quarter, up 15% over the prior year [20] Market Data and Key Metrics Changes - The company surpassed $1 trillion in total assets across retirement and investment management businesses, with nearly 10 million participant accounts in retirement [9] - Total defined contribution net inflows reached approximately $12 billion in the second quarter, bringing year-to-date net flows to over $40 billion [9][17] - Investment Management generated approximately $2 billion in net flows in the second quarter, contributing to nearly $10 billion year-to-date [10][19] Company Strategy and Development Direction - The company is focused on driving strong organic growth in retirement and investment management, successfully integrating OneAmerica, and improving margins in employee benefits [25] - A partnership with Blue Owl Capital aims to expand access to private market investments, enhancing retirement offerings [11][46] - The company plans to resume share repurchases targeting $200 million in the second half of the year [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities ahead, emphasizing a disciplined approach to margin improvement over growth [13][34] - The company is focused on executing near-term priorities while generating consistent strong free cash flows [24] - Management acknowledged uncertainties in the healthcare industry but remains committed to prudent actions regarding reserves and pricing [31][59] Other Important Information - The company has returned over $40 million of capital to shareholders via common stock dividends [22] - The integration of OneAmerica is on track, with a target of $75 million in operating earnings for the year [11] - The company is enhancing its lead management capabilities in employee benefits to strengthen its competitive position [12] Q&A Session Summary Question: Insights on Stop Loss business and future expectations - Management indicated that stop loss remains a high priority, with a focus on prudent actions across reserves, pricing, and risk selection [30] - The targeted loss ratio for the January 2024 cohort was reduced from 93% to 91% based on claims experience [30] Question: Capital return expectations and OneAmerica impact - Management confirmed plans for $200 million in share repurchases in the second half of the year, while addressing the capital needs related to OneAmerica [36] Question: Blue Owl partnership and its implications - The partnership is expected to expand access to private investments and enhance product offerings for retirement plan participants [46][47] Question: Medical stop loss and risk selection - Management acknowledged the uncertainty in the healthcare landscape but remains focused on disciplined pricing and risk selection [59][61] Question: Voluntary benefits business and premium decline - Management noted that while voluntary premiums are declining, the overall strategy is to bundle solutions to drive member engagement and retention [71][72]

Financial Performance - GAAP earnings reached $168 million, translating to $234 per share[8,9,10,11] - Adjusted Operating Earnings, a non-GAAP measure, amounted to $350 million, or $487 per share[11] - Free cash flow stood at $290 million[11] - The company returned $216 million to shareholders through dividends and share repurchases[11] Capital & Liquidity - Jackson National Life Insurance Company (JNLIC) estimated risk-based capital (RBC) ratio was 566%[11] - Holding company cash and highly liquid securities exceeded $700 million[15] Sales & Flows - Retail annuity sales increased by 9% compared to the first quarter of 2025[12,13] - Fixed and fixed index annuity sales totaled $470 million[30] Investment Portfolio - The investment portfolio totaled $49 billion under U S GAAP[62] - The statutory investment portfolio totaled $48 billion[67]

Financial Data and Key Metrics Changes - The company generated adjusted operating earnings per share of $2.46 in the second quarter, a 13% increase over the prior year [11] - Net income was impacted by investment losses and severance expenses, with $18 million incurred in severance expenses during the quarter [12] - The company added approximately $200 million of excess capital in the quarter, generating approximately $400 million year to date [12][21] Business Line Data and Key Metrics Changes - In the Retirement segment, adjusted operating earnings were $235 million for the quarter, representing a 1019% increase over the prior year [13][14] - Investment Management generated approximately $51 million in adjusted operating earnings for the quarter, a 2% increase year over year [15] - Employee Benefits adjusted operating earnings were $69 million in the quarter, up 15% over the prior year [18] Market Data and Key Metrics Changes - The Retirement and Investment Management businesses surpassed $1 trillion in total assets, with nearly 10 million participant accounts in retirement [6] - The company achieved approximately $12 billion in total defined contribution net flows in the second quarter, bringing year-to-date net flows to over $40 billion [14] - Investment Management generated approximately $2 billion in net flows in the second quarter, contributing to year-to-date net flows of nearly $10 billion [16] Company Strategy and Development Direction - The company is focused on driving strong organic growth in retirement and investment management, successfully integrating OneAmerica, and improving margins in employee benefits [23] - A partnership with Blue Owl Capital aims to expand private market access and enhance retirement offerings [8][42] - The company plans to resume share repurchases targeting $200 million in 2025, while also investing in wealth management and automation [21][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities ahead, despite challenges in the healthcare industry impacting the Stop Loss business [11][30] - The company is prioritizing margin improvement over growth in the Stop Loss segment, with a cautious approach to pricing and risk selection [30][60] - Management highlighted a healthy pipeline and strong retention rates in the retirement business, indicating a solid outlook for the remainder of the year [90] Other Important Information - The company returned over $40 million of capital to shareholders via common stock dividends [21] - The integration of OneAmerica is on track, with a target of $75 million in operating earnings for the year [9] - The company is embedding industry data and medical trends into pricing for employee benefits to enhance competitive positioning [19] Q&A Session Summary Question: Insights on Stop Loss business and future expectations - Management noted a reduction in the reserve levels for the January 2024 business based on claims experience, with a cautious approach for the January 2025 cohort due to early development [27][28] Question: Capital return and impact of OneAmerica - Management reaffirmed plans for $200 million in share repurchases in the second half of the year, while addressing the capital needs related to OneAmerica [33][34] Question: Blue Owl partnership and product development - The partnership is expected to expand access to private investments and enhance product offerings, particularly within target date funds [42][44] Question: Voluntary benefits business and loss ratio expectations - The loss ratio improved to 47% in the quarter, with expectations around 50% for the back half of the year [63] Question: Medical stop loss and pricing strategy - Management emphasized a disciplined approach to pricing and risk selection, with expectations of higher medical inflation in 2026 [56][60]

Financial Data and Key Metrics Changes - UFG reported a record net written premium of $373 million in Q2 2025, with a 14% growth compared to the previous year [7][8] - The return on equity reached 10% through the first half of the year, marking a significant milestone in the company's transformation [8] - The combined ratio improved by 9.2 points to 96.4%, with all components contributing favorably [8] - Net investment income increased by 20% year-over-year, driven by sustainable improvements in fixed maturity income [11][22] - Net income for the quarter was $0.87 per diluted share, with adjusted operating income of $0.90 per diluted share [24] Business Line Data and Key Metrics Changes - Net written premium in the core commercial business grew by 20% in Q2 2025, with gross written premium exceeding $400 million for the first time [12][13] - Rate achievement for the second quarter was 7.6%, with retention improving almost five points to 86% [12][13] - New business production surpassed $100 million for the first time, with double-digit increases across all business units [15] Market Data and Key Metrics Changes - The catastrophe loss ratio for Q2 was 5.5%, significantly below historical averages and expectations [9][19] - The underlying loss ratio improved by 1.3 points to 57.6%, reflecting strong earned rate achievement and moderating loss trends [8][16] Company Strategy and Development Direction - UFG is committed to executing its strategic business plan to achieve superior financial and operational performance [11] - The company is focused on improving risk selection and pricing to enhance profitability and competitive positioning [14][35] - UFG has made significant improvements in its catastrophe management, leading to better risk profiles and lower loss ratios [20][38] Management's Comments on Operating Environment and Future Outlook - Management noted that while competition remains strong, they are confident in their ability to grow despite rate moderation in the market [34][35] - The company is optimistic about maintaining favorable trends in catastrophe loss ratios and overall performance [39] Other Important Information - UFG declared and paid a cash dividend of $0.16 per share to shareholders [24] - The company issued $30 million of Series B notes as part of its capital management strategy [24] Q&A Session Summary Question: Trajectory on improving expense ratios - Management acknowledged a decline in non-variable underwriting expenses and indicated a good run rate for the next few quarters [27][29] Question: Visibility into positive reserve development for the second half - Management stated they are not in a position to predict future reserve developments but hope trends will continue [30] Question: Competitive environment insights - Management noted a competitive market with some moderation in rates, but expressed confidence in their risk selection and pricing strategies [34][35] Question: Differences between reinsurance and primary business - Management indicated that the reinsurance business has seen some pricing deterioration and mentioned non-renewal of treaties that did not meet profit expectations [36] Question: Catastrophe management improvements - Management expressed confidence in their improved management of catastrophe exposures and the positive impact of recent underwriting guidelines [38][39]

Core Insights - Major U.S. stock indices experienced a decline of nearly 1% on August 5, 2025, due to weaker-than-expected services data and ongoing tariff uncertainties, particularly with Trump threatening tariffs as high as 250% on pharmaceuticals [1][10] - Despite market volatility, low-leverage stocks are highlighted as safer investment options during economic uncertainty, with specific companies recommended for their strong earnings growth and low debt levels [2][10] Market Overview - The U.S. stock market is currently facing challenges due to tariff-related uncertainties and weaker economic data, leading to a lack of confidence among investors [2][10] - The recent wave of corporate earnings that exceeded estimates has been overshadowed by tariff concerns, impacting overall market optimism [1] Investment Strategy - Investors are advised to consider low-leverage stocks as a protective measure against potential economic downturns, with a focus on companies that exhibit solid earnings growth and lower debt-to-equity ratios [6][9] - The debt-to-equity ratio is emphasized as a critical metric for assessing financial risk, with lower ratios indicating better solvency [7][9] Recommended Low-Leverage Stocks - **NatWest Group (NWG)**: Collaborating with Google Cloud to enhance growth, with a projected 20.1% sales improvement for 2025 and a long-term earnings growth rate of 10.9% [15][16] - **Zions Bancorporation (ZION)**: Reported a 9% year-over-year increase in net interest income, with a 5% expected earnings growth for 2025 [17][18] - **Luxfer Holdings (LXFR)**: Achieved a 5.8% increase in adjusted net sales and a 25% rise in adjusted earnings per share, with a long-term earnings growth rate of 8% [19][20] - **Kingstone Companies (KINS)**: Declared a quarterly cash dividend, indicating strong financial health, with a projected 37.9% improvement in both sales and earnings for 2025 [21][22] - **Ingredion Inc. (INGR)**: Reported a 1% increase in adjusted operating income, with a long-term earnings growth rate of 11% and a 1% sales improvement expected for 2025 [23][24]