Slide 1: Earnings Results Quarter Ended June 30, 2024
Earnings Results Quarter Ended June 30, 2024
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements This presentation may contain forward-looking statements. Information on factors that could cause results to differ materially from those projected in this presentation is available in our Form 10-K for the year ended December 31, 2023, as may be modified by subsequent For
Slide 3: Financial Highlights
Financial Highlights GAAP Financial Results ● GAAP results reflect the Company’s decision ($ in millions, except per share amounts) Q2 2024 Q2 2023 % Change to exit the Senior Health business Revenues $803.4 $688.4 17% ● Core results were strong with adjusted net Net income $1.2 $144.5 (99%) operati
Slide 4: Distribution Highlights
Distribution Highlights Sales Force ● Sales force up 6% year-over-year to record Distribution Q2 2024 Q2 2023 % Change 145,789 life-licensed representatives Recruits 96,563 86,124 12% ● Attractiveness of business opportunity led New life-licensed representatives 14,402 12,638 14% to a 12% increase i
Slide 5: Production Highlights: Term Life Insurance
Production Highlights Term Life Insurance Production ● Issued more than 100,000 new life ($ in billions) Q2 2024 Q2 2023 % Change insurance policies, up 4% year-over-year Issued life insurance policies 100,768 96,953 4% — Middle-income families continue to face higher cost of living pressure Product
Slide 6: Production Highlights: Investment and Savings Products
Production Highlights Investment and Savings Products Production ● Strong demand for mutual funds, variable ($ in billions) Q2 2024 Q2 2023 % Change annuities and managed accounts drove 29% Total product sales $3.1 $2.4 29% increase in investment product sales year-over- Client asset values(1) $105.
Slide 7: Insurance Proceeds & e-TeleQuote Exit Transactions
Insurance Proceeds & e-TeleQuote Exit Transactions ● GAAP results included several non-cash items related to the ETQ exit, which are excluded from adjusted operating results — $128 million write off of remaining goodwill balance — $126 million write off of long-lived intangible and other assets — $3
Slide 8: Operating Results: Term Life Segment
Operating Results Term Life Segment ($ in millions) Q2 2024 Q2 2023 % Change ● Operating revenues up 4%, driven by 5% Direct premiums $840.7 $823.3 2% growth in ADP Premium ceded to IPO coinsurers(1) ($201.6) ($216.7) 7% ● Benefits and claims ratio of 57.4% was Adjusted direct premiums (ADP)(2) $639
Slide 9: Operating Results: Investment & Savings Products Segment
Operating Results Investment & Savings Products Segment ($ in millions, except as noted) Q2 2024 Q2 2023 % Change Sales-based revenues $101.2 $75.0 35% ● Operating revenues increased 22%, Asset-based revenues $132.8 $113.3 17% while operating income before taxes Account-based revenues $23.7 $23.1 3%
Slide 10: Insurance & Operating Expense Highlights
Insurance & Operating Expense Highlights ● Adjusted insurance and other operating ($ in millions) Cons* Life ISP Sr Health Corp expenses of $150 million grew 6% year- Q2 2023 Consolidated Insurance $142.3 $57.7 $41.5 $8.3 $34.7 over-year & Other Operating Expenses * — $3.0 million due to growth in t