Oct 22, 2026 earnings call — Quarterly results and business update
Company reported net income of $361 million and said total premium revenue grew 7% in Q3.
Revenue $1.6B (est $1.6B) · EPS $4.84 (est $4.90)
Key quotes
"For the quarter, Evri realized an underwriting loss of nearly $16 million"
"In the third quarter, we completed new reinsurance cessions, which reinsured a portion of new business, and in force life insurance policies issued by American Income to Globe Life Re."
"For the full year, we expect health premium revenues to grow by around 15% and underwriting margin to grow in the range of 4.0% to 4.5%."
Analyst Q&A 10
assumption updates in guidance
Q (Ryan Krueger · KBW): How much of an assumption review benefit is embedded in the 2027 EPS midpoint? Also questions about Evri and United American margins and strategy.
A: Management said they built a range of scenarios into the guidance and expect to see remeasurement gains each quarter that will indicate assumption updates. They cited about $20 million of actual-to-expected remeasurement gains in Q3 for the life business and said margins for health in 2027 were factored into a 20% to 24% range.
"The ranges reflect what we expect from just overall, obligations as well as assumption updates No specifics." — Thomas Peter Kalmbach (CFO)
Evri market fit and buybacks
Q (Wilma Burdis · Raymond James): Do market synergies and product suite from Evri justify the losses so far? And is buyback a good use of excess cash flow in 2027?
A: Management said Evri gives market synergy with United American when selling to brokers, but it is a startup with lumpier early results and is expected to be a small part of overall health underwriting dollars. They also said excess cash flow is the source for dividends and buybacks, they expect continued dividend capacity from reinsurance to Bermuda, and feel comfortable with current excess capital levels.
"And the nice thing I like about this business is that we can reprice Evri year upon renewal for experience that we are seeing and we anticipate, as well as if we need to, we can non-renew a group." — James Matthew Darden (CEO)
CMS claim delay and Evri claim types
Q (Randy Binner · Texas Capital): Why did CMS claim delays happen, when will they normalize, and what are typical high-severity Evri claims?
A: Management said two Medicare issues caused reporting delays: corrected billing rates and reissuing of Medicare IDs, and they believe the medical ID issue was largely resolved after IDs were issued in April 2026. For Evri, high-severity claims are things like cancer and heart attacks, with individual claims over $100 thousand and reinsurance kicking in above certain thresholds.
"we feel like that is pretty much gone through the system that those medical IDs were issued in April of 2026" — Thomas Peter Kalmbach (CFO)
timing for CMS and Evri outlook
Q (Andrew Kligerman · TD Cowen): Will the CMS issue linger into Q4 and evaporate afterward; will Evri be cleaned up by 2028? Also, how can Evri compete with big incumbents?
A: They said the Medicare ID issue mainly impacted Q3 and should normalize; its effect will be included in rate filings for 2027. On Evri, they expect pricing and growth in groups to moderate volatility, priced to be profitable, but allowed for the possibility of losses in 2027; greater scale should reduce high-severity claim impact into 2028.
"The you know, additional claims that we really saw as a result of the Medicare ID issue really, you know, impacts Q3." — Frank Martin Svoboda (CEO)
Bermuda dividend and life margin Q4
Q (Joel Hurwitz · Dowling and Partners): What is the expected Bermuda dividend in 2027 and what drove the increase in 2026 capital projection? Also, what is life margin expected in Q4?
A: They said they found excess capital in subsidiary entities when reviewing 2026 positions, keeping RBC within target ranges. For Bermuda distributions, they expect something in the $150 million range (subject to approval). They also gave a Q4 life margin range in the high 40s to low 40s area.
"But we would expect that to be somewhere in the $150 million range." — Thomas Peter Kalmbach (CFO)
which blocks to reinsure to Bermuda and NII growth
Q (Suneet Kamath · Jefferies): Which blocks (life vs health) make sense to cede to Bermuda and any limits on reserves ceded? Also, will net investment income growth lag required interest growth?
A: They said they continuously review opportunities and have not set firm limits, but want to keep a balanced amount of reserves in the US for liquidity and operations; initial plans contemplated around 25% of statutory reserves but they will continue to evaluate. On investment income, they said net investment income growth is likely flat to slightly declining, driven by distributions to the parent reducing average invested assets while required interest grows.
"it is probably flat to maybe just slightly declining depending on kind of the nuances of where that falls within that." — Frank Martin Svoboda (CEO)
Evri premium size and underwriting discipline
Q (Tom Gallagher · Evercore): How big are Evri premiums and groups now and next year, and what underwriting controls avoid being selected against?
A: They said Evri premiums in Q3 were about $11 million and they assumed around $100 million annualized premium next year with roughly 50 groups (about 30 now). They also said they are being disciplined in underwriting, turning down over 70% of cases they reviewed and using pricing, reinsurance, and the option to nonrenew to manage selection and volatility.
"We had over 70% of the cases that we are looking at that we turned down declined to quote." — James Matthew Darden (CEO)
productivity across agencies and recruiting
Q (Maxwell Fritscher · Truist): Are productivity improvements seen only at American Income or across other agencies, and any update on recruiting environment?
A: They said productivity gains are visible across American Income and Family Heritage, while Liberty is more consistent with agent count growth matching sales. They described recruiting as strong and robust, with many people attracted to the opportunity and their training/licensing pipeline allowing recruitment of inexperienced candidates.
"we see that as strong and robust." — James Matthew Darden (CEO)
drivers of 2027 EPS growth
Q (Pablo Singzon · JPMorgan): How much of 2027 EPS growth comes from buybacks versus operating earnings; and will Evri pricing and scale get the book back on track?
A: They said midpoint EPS growth about 7% with roughly 5% to 6% coming from share buybacks and 1% to 2% from net operating income growth. On Evri, they expect both pricing actions and larger group volume are needed to reduce volatility and regain credibility, likely improving toward end of 2027 into 2028.
"Actually, probably in that range of 5% to 6%, probably coming from share buybacks." — Frank Martin Svoboda (CEO)
size of reinsurance and excess cash flow outlook
Q (Wesley Carmichael · Wells Fargo): How big was the recent reinsurance cession and does reciprocal approval change long-term excess cash flow expectations?
A: They said the Q3 reinsurance transaction was about $275 million of reserves and that new business reinsurance to Bermuda is also significant, especially for American Income Life new business. They gave a 2027 excess cash flow range around $850 million to $950 million and said Bermuda benefits could increase the run rate over time absent other capital needs.
"The reinsurance transaction that we did in the third quarter was about $275 million of reserves." — Thomas Peter Kalmbach (CFO)