Financial Data and Key Metrics Changes - The company reported a core EPS of $1.70 for Q1 2025, a significant increase compared to the prior year, marking a record first quarter [6] - Core earnings reached $45 million or $1.07 per share, reflecting a 73% increase over the prior year [19] - Total net written premiums and contract deposits increased by 7%, with total revenues up by 8% [20] Business Line Data and Key Metrics Changes - The Property and Casualty segment showed strong performance with a combined ratio of 89.4%, improving by 10.5 points over the prior year [7] - In Life and Retirement, earnings were below the prior year primarily due to higher mortality, which was within expected actuarial ranges [8] - Individual Supplemental and Group Benefits segment earnings slightly increased, with net written premiums of $67.6 million, a 5% increase over the prior year [25] Market Data and Key Metrics Changes - Individual supplemental sales surged by 61%, while auto sales increased by 8% and annuity net contract deposits rose by 6% [10] - The company experienced a 40% increase in website visitors, contributing to strong new business sales [11] - The auto rate increase of 14.5% in California went into effect in mid-April, with a property increase of nearly 20% set for July 1 [20] Company Strategy and Development Direction - The company aims to achieve a shareholder return on equity above 10% for 2025, focusing on sustained profitable growth [6][16] - Investments in omnichannel distribution capabilities are expected to drive continued growth and profitability [10] - The company is committed to supporting educators and local communities, as highlighted by their Corporate Social Responsibility efforts [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong financial foundation and ability to navigate macroeconomic uncertainties [15] - The company anticipates continued strong performance in the second quarter, despite historical trends indicating it is typically the highest quarter for catastrophe costs [38] - Management emphasized the importance of their multiline business model in delivering consistent earnings across various economic environments [29] Other Important Information - The company reported a total net investment income of $116 million, a 10% increase over the prior year [9] - The annualized pretax investment yield on the portfolio was 5.09%, with core new money yields at 5.51% [27] - The company has returned $7 million to shareholders through share repurchases year-to-date [14] Q&A Session Summary Question: Could you talk about the run rate earnings power of the Life and the Supplemental Group Benefits segments? - Management indicated that the Life and Retirement business experienced a mortality blip, but overall performance is expected to normalize [33] Question: Could you talk about the cat activity in Q2 2025 year to date and also remind us how we should account for seasonality going into the second quarter? - Management noted that Q1 saw California wildfires with an ultimate loss of $3.7 million, and they expect the second quarter to be their heaviest for catastrophe costs historically [36][38] Question: Were there any new school districts added that drove the growth in individual supplemental distribution? - Management confirmed that there were no new districts added, attributing growth to strong activity from benefit specialists [41] Question: Is there any consideration for increasing reserves for supplemental group benefits products due to macro deterioration? - Management stated that current utilization trends do not indicate a need for increased reserves, and they remain confident in their expectations for group benefits [49][50]

Financial Data and Key Metrics Changes - The company reported a first quarter core EPS of $1.7, a significant increase over the prior year and a record for the first quarter [5] - Core earnings of $45 million or $1.07 per share represented a 73% increase over the prior year, with a core return on equity of 10.6%, reflecting a 4.9% improvement [17] - Total net written premiums and contract deposits increased by 7%, with total revenues up by 8% [18] Business Line Data and Key Metrics Changes - The Property and Casualty segment showed strong performance with a reported combined ratio of 89.4%, a 10.5 point improvement over the prior year [6] - In Life and Retirement, earnings were below the prior year primarily due to higher mortality, which was within expected actuarial ranges [7] - Individual Supplemental and Group Benefits saw earnings slightly above the prior year due to lower policyholder benefits utilization and higher segment net investment income [7][22] Market Data and Key Metrics Changes - Individual supplemental sales increased by 61%, auto sales were up by 8%, and annuity net contract deposits rose by 6% [8] - The company experienced a 40% increase in website visitors, contributing to strong new business sales [9] - The auto rate increase of 14.5% went into effect in mid-April, with a property increase of just under 20% set to take effect on July 1 [18] Company Strategy and Development Direction - The company is focused on driving sustained profitable growth through investments in omnichannel distribution capabilities and enhancing agent productivity [8] - The launch of Catalyst, a proprietary customer relationship management system, is aimed at improving sales force efficiency and customer experience [9] - The company aims to achieve a shareholder return on equity above 10% for the year and is on track to meet its 2025 goals [5][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic uncertainties but emphasized the company's strong financial foundation and ability to adapt to various economic environments [12][13] - The company is confident in its ability to deliver record core earnings in 2025 and maintain a sustainable double-digit shareholder return on equity [14][28] - Management highlighted the importance of supporting educators and communities as part of their corporate social responsibility efforts [11] Other Important Information - The company reported a total net investment income of $116 million, a 10% increase over the prior year [7] - The annualized pretax investment yield on the portfolio was 5.09%, with core new money yields of 5.51% [25] - The company has returned $7 million to shareholders through share repurchases year-to-date [12][27] Q&A Session Summary Question: Could you talk about the run rate earnings power of the Life and the Supplemental Group Benefits segments? - Management indicated that the Life and Retirement business experienced a slight mortality blip but overall performance is expected to normalize [31][32] Question: Could you talk about the cat activity in Q2 2025 year to date and how to account for seasonality? - Management noted that Q1 saw California wildfires with an ultimate loss of $3.7 million, and they expect the second quarter to be the highest for catastrophe costs historically [34][36] Question: Were there any new school districts added that drove growth in individual supplemental distribution? - Management confirmed that there were no new districts added, attributing growth to strong activity from benefit specialists and a favorable comparison to a light sales quarter in Q1 2024 [40][41] Question: Are there plans to increase reserves for supplemental group benefits products? - Management stated that current utilization trends do not indicate a need for increased reserves, and they remain confident in their expectations for group benefits [46][49]