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Q3 2007 Horace Mann Educators Corp. Earnings Conference Call - Final
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| Copyright: | CCBN, Inc. and FDCH e-Media, Inc. | | Source: | FD (FAIR DISCLOSURE) WIRE | | Wordcount: | 5516 |
OPERATOR: Good morning. My name is Caretta and I will be your
conference operator today. At this time I would like to welcome
everyone to the Horace Mann Educators Corporation third-quarter
earnings conference call. All lines have been placed on mute to
prevent any background noise. After the speakers' remarks there will
be a question-and-answer period. (OPERATOR INSTRUCTIONS). Thank you.
It is now my pleasure to turn the floor over to your host, Mr. Dwayne
Hallman, Senior Vice President of Finance. Sir, you may begin your
conference.
DWAYNE HALLMAN, SVP, FINANCE, HORACE MANN EDUCATORS CORP.: Thank you.
Good morning, everyone. Welcome to our third quarter 2007 earnings
conference call. Yesterday after the market closed we released our
earnings report including financial statements as well as
supplemental business segment information. If you need a copy of the
release it is available on our website under Investor Relations.
Today we will cover our results for the third quarter in our prepared
remarks. The following senior management members will make
presentations today and as usual will be available for questions
later in the conference call.
Lou Lower, President and Chief Executive Officer; Pete Heckman,
Executive Vice President and Chief Financial Officer; Doug Reynolds,
Executive Vice President, Insurance Operations; Frank D'Ambra, Senior
Vice President of Life & Annuity; and Butch Joyner, Senior Vice
President of Marketing.
The following discussion may contain forward-looking statements
regarding Horace Mann and its operations. Our actual results may
differ materially from those projected in the forward-looking
statements. These forward-looking statements or made based on
management's current expectations and beliefs as of the date and time
of this call. For a discussion of the risk and uncertainties that
could affect actual results, please refer to the Company's public
filings with the SEC and in the earnings press release issued
yesterday.
We undertake no obligation to publicly update or revise such
forward-looking statements to reflect actual results or changes,
assumptions or other factors that could affect these statements. As a
reminder, this call is being recorded, and it is available live on
our website. An Internet replay will be available on our website
until December 3, 2007. Now we will turn the call over to Lou Lower
for his comments.
LOU LOWER, PRESIDENT, CEO, HORACE MANN EDUCATORS CORP.: Good morning
and thanks for joining us. As we reported yesterday, Horace Mann
recorded net income excluding realized capital gains and losses of
$0.42 per share for the quarter. That EPS result was equal to prior
year and consistent with our expectations. Despite a benign hurricane
season for the Continental US, we did experience significant levels
of non-hurricane related catastrophe losses. This was an active
quarter for other wind and hail events, which exceeded similar
weather activity last year. However, the negative impact of weather
on our property casualty results was more than offset by favorable
results in life and annuity, helping to produce another solid quarter
of profitability.
Turning now to individual segment highlights, third quarter auto unit
sales came in below our expectations; similar to what we discussed
last quarter, the decline from last year's strong sales performance
and true new units was largely attributable to the fallout that our
coastal risk reduction initiatives have had in Florida. In other
states we are not immune to the competitive auto environment, while
we've been able to maintain attractive pricing in our target educator
market, the lack of shopping on the part of consumers presents
challenges on the growth front.
Despite a quarterly decline, year-to-date sales growth in P&C,
coupled with improving retention, has resulted in continuing PIF
growth compared to prior year, led by growth in educator policies.
That, in turn, has translated into written premium growth of 2%
excluding the impact of the expiration of the NEA liability policy,
which we discussed earlier. In addition to catastrophes, property
casualty margins were pressured by a quarterly deterioration in
property ex Cap margins, reduced favorable prior year development,
and to a lesser extent, auto frequency. We continue to be pleased
with the performance of our claims initiatives and the favorable
impact they are having on auto severity control. But we do recognize
the need as we move toward next year to take moderate level of rates
where appropriate.
In our life and annuity segments pretax operating income continues to
outperform prior year for the quarter and year-to-date; combining the
two segments were up 26% for the year. As you may recall, annuity
sales got off to a slow start in the first half. We've made up some
lost ground in career agent sales this quarter, which increased 32%
sequentially and 3% over prior year. Including the flow business,
annuity deposits increased 10% compared to the third quarter of '06
with account values growing 8% over the last 12 months.
Spreads for the fixed business continue to improve while variable fee
income has increased, as well. From a balance sheet perspective,
property casualty reserves remain strong with continuing favorable
prior year development, although at reduced levels in the quarter.
The investment portfolio is performing as expected with minimal
watchlist concerns and insignificant exposure to subprime and Alt-A
mortgage issues. Ex FAS 115 average invested asset growth of just
under 5% helped to drive the year-to-date increase of 7% in
investment income. Our key financial ratios continue to strengthen,
providing a strong capital base for future growth with book value per
share ex FAS 115 up 14% year-over-year.
And speaking of capital, a month and a half ago we disclosed that our
Board authorized a $50 million share repurchase program. No purchases
were made between the time of approval in September and quarter end.
The program I would characterize as being opportunistic in nature and
at least through the end of the third quarter we have kept our powder
dry given the uncertainties and volatility in the financial markets.
And now for some further elaboration on the financial picture, here
is Pete.
PETE HECKMAN, EVP, CFO, HORACE MANN EDUCATORS CORP.: Thanks, Lou, and
good morning. On balance, the third quarter was a good one for Horace
Mann. Consolidated operating income of $0.42 per share was consistent
with our expectations and with prior year. Property and casualty
earnings were down in the quarter due to increased catastrophes and a
lower level of favorable reserve development. Also the current
accident year ex cat combined ratio was up about two points in the
third quarter compared to prior year, primarily due to increased non
catastrophe weather in the property line.
Offsetting the prior year comparison in P&C were some excellent
quarterly earning results in our annuity and life segments. With
income in both of those lines of business well above prior year and
better than our expectations. Expanded investment margins in both
segments, as well as double-digit growth in annuity contract charges
and favorable life mortality were the key drivers. Premium growth was
positive in the quarter and continued to gain momentum. Consolidated
premiums written and contract deposits were up about 1% on a reported
basis versus prior year, but up approximately 4.5% adjusted for the
expiration of the NEA professional liability policy in the current
period.
Similarly, reported P&C premiums written were down almost 4% in
the third quarter but increased 2.2% on a comparable basis, excluding
the impact of the EPL policy. Expense management results have also
been positive, although prior year comparisons were favorably
impacted by a bonus accrual adjustment in the current period and the
litigation settlement charge incurred in the third quarter of last
year. We expect a normal seasonal uptick in our fourth quarter
expenses, but the year end ratios should remain relatively comparable
to full-year 2000 levels.
And finally, in terms of the investment portfolio, total net
investment income is running slightly ahead of our expectations with
increases of about 5% in the quarter and 7% year-to-date. The
portfolio quality remains high with a double A- overall rating. As I
mentioned last quarter, our subprime Alt-A exposure is insignificant,
comprised primarily of two $5 million AAA rated securities, with a
total unrealized loss of $1.2 million at September 30th. The small
realized capital loss in the quarter reflected a $300,000 impairment
of two fixed income securities of a single issuer in the paper
industry.
And now, let me turn it over to Doug Reynolds for more detail on our
P&C results.
DOUG REYNOLDS, EVP, INSURANCE OPERATIONS, HORACE MANN EDUCATORS
CORP.: Good morning. Let's start with the combined ratio and some of
the drivers behind it. The total combined ratio in the quarter was
96.7, up 5.5 points over prior year third quarter. And looking at the
calendar year results, the major driver was less favorable prior year
development and more catastrophes. These two items account for about
3 of the 5.5 point difference. Total catastrophe costs of $10.3
million were about $3 million more than last year's third quarter.
In addition to the ISO recognized catastrophic events, late summer
weather, namely wind and hail activity in the Midwest, drove up our
non catastrophe costs in the quarter. Year-to-date the calendar
combined ratio was up 3.5 points with an increase of just under 3
points on an accident year basis. Looking at the two major lines, our
current accident year and auto, excluding catastrophes was better by
0.5 point for the quarter but up about 2 points on a year-to-date
basis compared to prior periods. Overall, we have continued to
control severities in virtually all coverages. However, frequency is
higher than what was expected on a year-to-date basis.
We continue to improve the quality and distribution of our P&C
policies in force. Our percent educator, percent of business in
preferred underwriting tiers and the percent of tri-line business
continues to increase. The percent of our customers using electronic
funds transfer and our unique auto payroll deduction program are also
increasing. Voluntary auto policies are up almost 1% or about 4000
units from a year ago. Auto educator policies in force increased
almost 5% or about 18,000 compared to a year ago. Continued favorable
retention ratio results and improvement up 3/10 over prior year
supports our positive policy growth.
Turning to property, accident year combined ratio excluding
catastrophes, is up a little more than 9 points for the quarter and
up about 5 points year-to-date. Although the overall accident year
combined ratio and normal catastrophes is still very good, it is
higher than expectations. The primary driver has been much more
active weather patterns, producing high levels of non catastrophe
losses. Frequencies, excluding catastrophes, are up approximately 15%
in the quarter and about 7% on a year-to-date basis. Severity showed
increases in the quarter but is down on a year-over-year basis.
Property policies are up slightly, 4/10 of a percent, or about 1000
over prior year. This includes the impact of our coastal reduction
policy and specifically reducing approximately 2000 Florida policies
over the past year. We are beginning the next phase of Florida
nonrenewals targeting an additional reduction of 20% of our Florida
properties over the next year. To support our Florida agents we have
partnered with another Florida domicile property company and are
working with other carriers to provide outlets for property business
to assist in our exposure reduction programs while allowing our
agents to meet the needs of their clients.
From both a pricing and product perspective we continually look for
ways to differentiate Horace Mann from the competition in the
educator community. We now have our pricing program designed for the
educator market, the educator segmentation model approved in 30
states representing 70% of our countrywide auto premium. The
continued expansion of our auto payroll deduction program is a top
priority. This quarter, about 11% of our true new auto units were
written on payroll.
We are also introducing identity theft resolution services as an
endorsement to our property policy this quarter, and we are providing
this product to educators at no additional cost. And now, let me turn
it over to Frank D'Ambra for his comments on life and annuity.
FRANK D'AMBRA, SVP, LIFE & ANNUITY, HORACE MANN EDUCATORS CORP.:
Thanks, Doug, and good morning. As Lou indicated, we have seen
continued improvement in career agent annuity sales during the first
nine months. Total third-quarter sales met our expectations, though
year-to-date comparisons are still impacted by the slow start and an
anticipated decline in independent agent sales as a result of our
narrowing their focus to 403-B and qualified sales. Total annuity
sales decreased by 1 million in the third quarter and 12 million for
the nine months, the bulk of which is attributable to reduced single
deposit business. However, total annuity deposits year-to-date grew
by 7%, driven by an increase in recurring deposits which is a key
benefit of our 403-B market focus.
Our total policy count continues to grow slowly with cash value
retention in the 91 to 92% range. Total annuity assets under
management increased by more than 8% compared to a year ago with
fixed annuity assets increasing 4% and variable annuity assets
assisted by strong market performance increasing nearly 14%. Third
quarter pretax income for the annuity segment was $7.8 million, up
$3.2 million compared to the prior year exceeding our expectations.
Quarterly earnings benefited primarily from improving interest
margins and increased contract charges and fees, as well as a small
contribution from favorable DAC and VIF unlocking. For the nine
months pretax income of $20 million represented a $6 million increase
over 2006 with the drivers being improved interest margins and
increased contract charges and fees.
Turning to the life segment, third quarter individual life sales were
flat with 2006, and total sales for the first nine months were
comparable to those experienced last year. Third quarter and
year-to-date premiums in contract deposits for Horace Mann
proprietary products were also comparable. In terms of the bottom
line, life pretax income for the quarter was $8.4 million, up $2.4
million compared to the prior year exceeding our expectations.
Quarterly earnings benefited from increased investment income and
favorable mortality experience. For the nine months pretax income of
$19.6 million was a $2.6 million increase over 2006 reflecting growth
in investment income and favorable mortality experience.
As you would expect, the new 403-B regulations are currently being
digested by the marketplace. During the interim period between
regulation issuance and the mandatory compliance date of January 1,
2009, school districts may choose to place a hold on participant
transfers and some have already done so. Such action could
temporarily depress single deposit sales while concurrently
increasing retention for firms in the 403-B market. The decision to
place a hold on transfers is made on a district to district basis. If
a hold is imposed, it lasts until the district lists the hold or
implements their plan documents, whichever comes first.
We are working with each of our school districts to secure approval
to permit participant transfers in advance of plan implementation to
benefit participating educators, as well as minimize the impact on
our annuity sales. Given the economics of the annuity business, a
short-term decline in single deposit sales would have little impact
on our income expectations. And now to discuss the marketing results
and progress on the ABM initiative is Butch Joyner.
BUTCH JOYNER, SVP, MARKETING, HORACE MANN EDUCATORS CORP.: Thank you
Frank, and good morning to everyone. I would like to begin my
discussions this morning by framing the third quarter as one of
challenge and opportunity. The challenge is clearly reflected in the
decline we realized on our auto and property insurance sales as
compared to the prior year's third quarter. The opportunities,
however, are manifested in the strengthening sales of our financial
services lines, as well as the continued success with the
implementation of our Agency Business Model or ABM.
First, let's turn to property and casualty sales. Combined auto
sales, new and add car units were off by 6% in the quarter compared
against the third quarter 2006. This reflects in part the general
softening of the auto insurance marketplace. Of greater impact,
however, is the effect coastal underwriting actions have had on
property and casualty sales. To illustrate the impact of these
actions, consider the effect in the Florida market where significant
coastal actions have occurred.
On a total auto unit basis about one-half of the 6% decrease in third
quarter occurred in the state of Florida. Looking at the
all-important measure of new auto customers to Horace Mann, about
three-fourths of the deficit is attributable to the Florida market.
In spite of the impact that Florida has had on a year-to-date basis,
auto and property sales are up modestly over prior year levels. For
the first nine months total auto units are up 2% with sales to new
auto customers increasing 3%. Property unit sales have grown
similarly by 2%. When we exclude the impact of properties risk
mitigation actions in Florida, our total auto unit sales climbed 4%
through the first nine months with sales to new auto policyholders
gaining 6%. Property units excluding Florida are up 8% year-to-date.
On the financial services side of the house, the third quarter
demonstrated an uptick in annuity sales by the Horace Mann agent
distribution channel. While we reported sales declines by captive
agents in the first two quarters of 2007, the third quarter showed a
3% increase over the prior year. This is particularly encouraging
given the decreased opportunities in 2007 from state retirement
programs that allow teachers to privatize a portion of their
retirement funds in 2006. These programs contributed to a significant
growth in rollover annuity sales for us last year. When combined with
Horace Mann annuity sales by independent agents, total annuity sales
premiums still lagged by 2% during the quarter and 8% for the first
nine months.
Sales in the lifeline of business gained momentum in the third
quarter with target sales premium increasing by 9% over third quarter
2006, and we are now up 4% for the year. As reported, we have
experienced a reduction in our agent count. We ended the third
quarter with 797 agents, down 4% compared to the same point in time
one year ago. This is due in part to reduction in hires resulting
from an increased emphasis on quality and building readiness for the
new agency business model. This strategy is bearing fruit as
evidenced by the auto unit productivity of agents who are in their
first 24 months. Auto productivity for these new agents in 2007 is
23% greater than their company peers in 2006, and while our agent
count has declined an increasing number of agents are employing
license support, expanding our points of distribution. By the end of
September 228 licensed producers were employed by agents. This
represents a 22% increase during the third quarter 2007 and nearly
doubles the number of licensed producers since January first.
As we continue the transition to our new Agency Business Model, we
expect that over the intermediate term the agent count will continue
to decline marginally, while our total points of distribution
increased as a result of the growing number of licensed producers
supporting those agents who adopt the new model.
So now let me update you on the progress we've made with implementing
ABM. As I previously described, ABM is about a new approach to
distribution, making it far more entrepreneurial. Part of the
strategy calls for moving agents into outside offices supported by
license support staff. And we continue to gain momentum on this
thrust. Agents increasingly realize the benefits to their sales
operations under the new model through significant sales lift and
increasing revenues.
Through September 121 agents or 15% of the sales force have completed
the agent business school. Of these agents more than 60% have fully
implemented the model by securing commercial office space and
employing license support staff. As a group, these agents have
experienced a marked lift in their sales levels in all lines over
their prior year sales levels. Of particular note is the increase in
sales of agents who have graduated from the agent business school
when compared to those agents who have yet to attend the school. By
years end we expect 25% of the agency force to have graduated from
the agent business school with another 25% scheduled to attend in
2008.
While we are still in the early stages of the implementation of ABM,
the results are well in line with our expectations. We anticipate the
Agency Business Model to gain even greater traction as more agents
attend the school and migrate into the model. With that, I will turn
it back over to Dwayne.
DWAYNE HALLMAN: Thanks, Butch. And that concludes our prepared
remarks. Caretta, please move to the question-and-answer session.
OPERATOR: (OPERATOR INSTRUCTIONS) Bob Glasspiegel, Langen McAlenney.
ROBERT GLASSPIEGEL, ANALYST, LANGEN MCALENNEY: Good morning. I guess
your decision to try to be opportunistic on share repurchase is
getting rewarded today. Is there any sort of -- with the stock down
over 10% -- is there any restriction on you buying back stock on day
of reporting?
DWAYNE HALLMAN: (multiple speakers) Bob, no.
ROBERT GLASSPIEGEL: So you could be buying today if you chose to?
UNIDENTIFIED COMPANY REPRESENTATIVE: Yes, that's correct.
ROBERT GLASSPIEGEL: California, you gave us a sort of we feel
comfortable for now sort of commentary. What are your claims on the
fires todate, and you said I guess it won't be material with what you
know, as of today. But maybe give us some information on --.
UNIDENTIFIED COMPANY REPRESENTATIVE: Yes, I think first off we are
obviously being a little careful with it because it is still early in
the process. We have people out there on the ground from our claims
standpoint. We are into all areas; some of that will depend, at this
point there has been one catastrophe named the Witch Fire. We fully
expect some of the other fires to also be named as catastrophes. And
the other part of our reason behind that is, as you know a couple
years ago we strengthened our reinsurance program around catastrophes
by adding an aggregate of loss coverage for catastrophes. And based
on what we've had so far this year, we are close to moving in and
being able to utilize that coverage.
ROBERT GLASSPIEGEL: Can you remind me the details on that?
UNIDENTIFIED COMPANY REPRESENTATIVE: Yes, it basically for any cat
loss it covers once you cross the $21 million mark, the next $19
million comes under the catastrophe egg, and it goes from dollar one
on a cat loss but caps out at $10 million per catastrophe. So if we
are at the $21 million mark and we have a $10 million catastrophe,
the aggregate would kick in and cover that full $10 million.
ROBERT GLASSPIEGEL: What is your retention on that layer?
UNIDENTIFIED COMPANY REPRESENTATIVE: $21 million.
ROBERT GLASSPIEGEL: No, on the $10 million.
UNIDENTIFIED COMPANY REPRESENTATIVE: 5%.
ROBERT GLASSPIEGEL: Okay. And no numbers on claim count at this
point?
UNIDENTIFIED COMPANY REPRESENTATIVE: No, well, we obviously have
some. But it is not something we want to share today. They do
continue to come in, although I will tell you that they have been
slow. Certainly from this standpoint, if you recall from fires a few
years ago, we would be seeing substantially less from a claim count.
But as I said, I've got to have the caution that it is still early in
the process. But it is fairly slow in developing at this point.
ROBERT GLASSPIEGEL: You said the auto frequency was up and prices are
flat. Are we going to just sit and wait to see whether this is a
trend that continues before we start to reflect increased frequency
of pricing?
UNIDENTIFIED COMPANY REPRESENTATIVE: No, actually the pricing is on
the auto side is up a couple points this year. We would obviously be
taking more in the pricing area as we move through the rest of this
year and into 2008, and we've already begun that process. I will tell
you that in the future as in the past, it is a little bit more
focused on the non educated than the educator. But no, we would not
be waiting for that to happen.
I would also point out that the frequencies are up obviously a little
bit more than we expected on the auto side as we were expecting it to
remain relatively flat in 2007. But we also are seeing good controls
around our severity results, so that is mitigating some of the
frequency increase that we are seeing. And on an accident year basis
we are right where we would have expected to be.
ROBERT GLASSPIEGEL: Last question. Recruitment. I thought last call
or press release you said that you hoped to grow for the year and now
it looks like you are backtracking on that. What has been the sort of
biggest impediment at growing your force?
UNIDENTIFIED COMPANY REPRESENTATIVE: I think a couple challenges that
we've given our field managers is one, to place a high degree of
emphasis on quality of new hires. And our new hires are down
slightly, but as you heard in my commentary, the productivity of
these new hires is up substantially over hires from the past. And
secondly, we want to hire agents that can transition into the new
model, and that is a different profile than the agents that we've
hired in the past. But at the same time, we've seen a rapid growth in
the number of licensed producers and to the point that today we
actually have a larger number of licensed appointed sales people with
Horace Mann.
ROBERT GLASSPIEGEL: That's a good answer. Thank you very much.
OPERATOR: Dan Farrell, Fox-Pitt, Kelton.
DAN FARRELL, ANALYST, FOX-PITT, KELTON: Can you just talk a little
bit about the DAC adjustment that you had in the quarter? How much
was that?
UNIDENTIFIED COMPANY REPRESENTATIVE: The net effect for the quarter
was about $300,000.
DAN FARRELL: Okay, so pretty small then.
UNIDENTIFIED COMPANY REPRESENTATIVE: Yes, minimal.
DAN FARRELL: And then I apologize if you mentioned this in your
remarks, but could you just go over the spread numbers again, what
the annuity spread numbers were versus past quarters?
UNIDENTIFIED COMPANY REPRESENTATIVE: The overall spread that we are
realizing on our assets is improved over the course of this year by
about 15 or 20 basis points. And that is a reflection of rates moving
higher, as well as all the new business we are selling, we are
getting our price for spreads in those sales. So that is contributing
to the improvement. The actual number at this point in time is at 141
basis points.
DAN FARRELL: Okay, great. Thanks. And then just one last question.
You gave some of the sales numbers ex the risk mitigation changes
that you made. Can you just split what the premium number would have
been on a gross basis ex that?
DWAYNE HALLMAN: I don't have that available. I have to get back with
you on that number.
DAN FARRELL: Great. That's all. Thank you.
OPERATOR: (OPERATOR INSTRUCTIONS) Rohan Pai, Banc of America
Securities.
ROHAN PAI, ANALYST, BANC OF AMERICA SECURITIES: Good morning. First
question has to do with the P&C insurance expense ratio. It seems
to have declined both year-over-year slightly and also sequentially.
Is there anything seasonal in this, or was any kind of initiatives
that were put into place?
PETE HECKMAN: In my comments I indicated that we did have some
favorable prior year comparisons primarily driven by litigation
charge that we took in the last year's third quarter. So the prior
year comparison is something that is somewhat artificial. We
traditionally have an uptick seasonally in our expenses in the fourth
quarter, so we would expect to see an expense ratio in P&C a
little bit higher in the fourth quarter than it has been running. But
as I said in my comments, we are generally not expecting the ratios
to be much above the full year 2006 levels.
ROHAN PAI: Okay. Thank you. And second question had to do again with
the fixed annuity margin. It seems up, it is the second consecutive
quarter. And you mentioned that this higher pricing and improved
rates. What are your expectations going forward for the margins in
this business?
UNIDENTIFIED COMPANY REPRESENTATIVE: There are two elements that
contribute to that obviously. One is the overall yields that we are
generating from our portfolio, and then the second element is the new
business that we are selling at the price for margins. We're going to
continue to sell at price for margins. So as we do that and that
becomes a larger component of the block, that will help drive an
improvement in the overall yields for the block as a whole. As far as
the yields that we are getting in the marketplace, those have
improved over the course of the year, and although they have kind of
plateaued I think at the moment. So as we see some of the investments
we have that mature rolloff and maybe get invested at slightly
improved yields, that will help us. So we are looking for some, I
would say modest improvement in that number going forward over the
intermediate-term.
ROHAN PAI: And I guess the final question has to do with the premium
growth expectations. How do we model in the loss of the EPL policy?
What is the impact going forward? I think this quarter there was an
adjustment. Will we see a decline in future quarters, or is that a
onetime type of a thing?
UNIDENTIFIED COMPANY REPRESENTATIVE: The way we had booked that
premium was we booked all of the written premium at the renewal date,
which is in the month of September. So September of '06 would have
had approximately $8.5 million written premium for that policy, which
is not in the third quarter '07 numbers. The premium, that premium is
earned then ratably over twelve months but the written impact is all
onetime.
ROHAN PAI: Okay, so it is I guess in future quarters it would be a
more normalized type of --?
UNIDENTIFIED COMPANY REPRESENTATIVE: Yes.
ROHAN PAI: Thanks for the answers.
OPERATOR: There are no further questions in the queue. I will turn
the floor over to Mr. Hallman for closing remarks.
DWAYNE HALLMAN: Thank you for your time and attention today, and we
look forward to speaking with you again at the end of the next
quarter. Have a great day.
OPERATOR: Thank you. This concludes today's Horace Mann Educators
Corporation third quarter earnings conference call. You may now
disconnect, and have a wonderful day.
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