CINF earnings name for the interval ending December 31, 2024.
Picture supply: The Motley Idiot.
Cincinnati Monetary (CINF 4.17%)
This autumn 2024 Earnings Name
Feb 11, 2025, 11:00 a.m. ET
Contents:
- Ready Remarks
- Questions and Solutions
- Name Individuals
Ready Remarks:
Operator
Good morning, and welcome to the Cincinnati Monetary fourth-quarter and full-year 2024 earnings convention name. [Operator instructions] Please observe, this occasion is being recorded. I might now like to show the convention over to Dennis McDaniel, investor relations officer. Please go forward.
Dennis E. McDaniel — Investor Relations Officer
Howdy. That is Dennis McDaniel, Cincinnati Monetary. Thanks for becoming a member of us for our fourth-quarter and full-year 2024 earnings convention name. Late yesterday, we issued a information launch on our outcomes, together with our supplemental monetary package deal, together with our year-end funding portfolio.
To seek out copies of any of those paperwork, please go to our investor web site, buyers.cinfin.com. The shortest path to the knowledge is the quarterly outcomes part close to the center of the Investor Overview web page. On this name, you may first hear from president and chief govt officer, Steve Spray; after which from govt vp and chief monetary officer, Mike Sewell. After their ready remarks, buyers collaborating on the decision might ask questions.
At the moment, some responses could also be made by others within the room with us, together with govt chairman, Steve Johnston; chief funding officer, Steve Soloria; and Cincinnati Insurance coverage’s chief claims officer, Marc Schambow; senior vp of company finance, Theresa Hoffer. Please observe that a number of the issues to be mentioned at this time are forward-looking. These forward-looking statements contain sure dangers and uncertainties. With respect to those dangers and uncertainties, we direct your consideration to our information launch and to our varied filings with the SEC.
Additionally, a reconciliation of non-GAAP measures was supplied with the information launch. Statutory accounting knowledge is ready in accordance with statutory accounting guidelines and due to this fact, is just not reconciled to GAAP. Now I am going to flip over the decision to Steve.
Steve Spray — President and Chief Govt Officer
Good morning, and thanks for becoming a member of us at this time to listen to extra about our outcomes. Our hearts exit to these impacted by the L.A. wildfires. You have misplaced houses, treasure belongings, a way of neighborhood, and in probably the most devastating instances, family members.
I additionally need to thank the primary responders who put their lives on the road, our brokers for his or her help and partnership, and naturally, our claims associates who’re working tirelessly to assist our policyholders with fast wants and longer-term plans. Earlier than I share extra particulars about our present estimate for this disaster, let’s dive into how we carried out final 12 months. Working efficiency for the fourth quarter was very robust and plenty of key areas confirmed enhancements. We’re additionally happy with efficiency for full-year 2024, due to the very good work of our associates offering service to brokers who we contemplate to be one of the best within the insurance coverage enterprise.
Our fourth-quarter outcomes in comparison with the identical interval final 12 months included a greater mixed ratio and glorious development in premiums and funding revenue. The end result boosted internet revenue, and we had double-digit development in working revenue. Internet revenue was $405 million for the fourth quarter of 2024 and included recognition of $107 million on an after-tax foundation for the lower in truthful worth of fairness securities nonetheless held, an unfavorable swing of $931 million from the identical interval a 12 months in the past. Internet revenue for the 12 months rose 24%.
Non-GAAP working revenue for the quarter elevated 38% to $497 million and rose 26% for full-year 2024. Our 84.7% fourth-quarter 2024 property casualty mixed ratio was 2.8 share factors higher than a 12 months in the past. It introduced the full-year mixed ratio to an excellent 93.4%, 1.5 factors higher than 2023. The complete-year enchancment included a disaster loss ratio impact solely 0.2 factors decrease.
Our 86.5% accident 12 months 2024 mixed ratio earlier than disaster losses improved by 1.9 share factors in contrast with accident 12 months 2023, together with 5 factors of enchancment for the fourth quarter. We reported one other quarter of robust premium development, which we imagine its worthwhile development as our underwriters diligently use pricing precision instruments to help their threat segmentation efforts on a policy-by-policy foundation. Estimated common renewal value will increase for the fourth quarter have been just like the third quarter of 2024. Business traces moved barely decrease within the excessive single-digit share vary and extra and surplus traces remained within the excessive single-digit vary.
Our private traces section was additionally just like the third quarter with private auto within the low double-digit vary and home-owner within the excessive single-digit vary. New enterprise development produced by companies representing Cincinnati Insurance coverage continued at a pleasant tempo. Practically one-third of the expansion for the 12 months was from companies appointed because the starting of 2023, reflecting our technique of appointing further companies the place we establish acceptable enlargement alternatives. Coverage retention charges in 2024 have been just like final 12 months, with our Business Traces section up barely however nonetheless within the higher 80% vary.
Our Private Traces section remained in the same place of the low to mid-90% vary. The general end result was consolidated property casualty internet written premium development are rising 17% for the quarter, together with 15% development in company renewal premiums and 23% in new enterprise premiums. Subsequent is a short overview of efficiency by Insurance coverage section for full-year 2024 in contrast with 2023. Most metrics additionally improved on a fourth-quarter foundation.
Business Traces grew internet written premiums 8% with a wonderful mixed ratio that improved by 3 share factors to 93.2%. Private Traces grew internet written premiums 30% and improved the mixed ratio by 2.9 share factors to 97.5%. Extra and Surplus traces grew internet written premiums 15% with a 94% mixed ratio. Though that was 3.4 share factors increased than final 12 months, it is nonetheless fairly worthwhile.
Each Cincinnati Re and Cincinnati International have been additionally very worthwhile. Cincinnati Re grew internet written premium 7% with an 85% mixed ratio whereas Cincinnati International’s development was 8% with a 73.6% mixed ratio. Our life insurance coverage subsidiary additionally improved its outcomes with a 21% enhance in 2024 internet revenue and time period life insurance coverage earned premium development of three%. These robust outcomes mixed to convey our worth creation ratio and above our goal of 10% to 13% on a 5-year common foundation.
Our fourth-quarter DCR was 1.8%, and we reached 19.8% on a full-year foundation. Internet revenue earlier than funding positive aspects or losses for the 12 months contributed 9.9%, increased general valuation of our funding portfolio and different gadgets contributed to the opposite half. Earlier than I flip the decision over to Mike, I am going to present our present estimates of monetary results associated to the latest California wildfires and an replace on our 2025 reinsurance program. We estimate first quarter 2025 pre-tax disaster losses of roughly $450 million to $525 million internet of reinsurance recoveries.
That features roughly 73% for our Private Traces Insurance coverage section, 24% for Cincinnati Re, and three% for Cincinnati International. We reinstated the relevant layers of our main property disaster reinsurance treaty protection and can seed further premiums to our reinsurers. Cincinnati Re will obtain further premiums from treaties reinstated. The estimated internet impact of first-quarter premium income is a lower of $50 million to $60 million.
To maintain this occasion in perspective, had the wildfire impact occurred in 2024, we imagine we might nonetheless have earned a modest underwriting revenue. On January 1st of this 12 months, we once more renewed every of our main property casualty treaties that switch a part of our threat to reinsurers. For our per-risk treaties, we elevated our retention for the property treaty to $15 million, whereas retention for the casualty treaty remained at $10 million. Different phrases and circumstances for 2025 are pretty just like 2024.
The first goal for our property disaster treaty is to guard our steadiness sheet. The treaty’s might change this 12 months is including one other $300 million of protection, rising the highest of this system from $1.2 billion to $1.5 billion. We once more retained the entire first $200 million, then retain 56% of the subsequent $100 million, 25% of the subsequent $100 million and roughly 14% of the subsequent $1.1 billion. Now let me flip the decision over to chief monetary officer, Mike Sewell, for added highlights of our monetary efficiency.
Mike Sewell — Chief Monetary Officer
Thanks, Steve, and because of all of you for becoming a member of us at this time. Funding revenue reached $1 billion for the 12 months and considerably contributed to our improved working efficiency. It grew 17% for the fourth quarter and 15% for the total 12 months 2024 in contrast with the identical durations of final 12 months. Dividend revenue was down 4% within the fourth quarter, pushed by third-quarter gross sales of fairness securities from beforehand disclosed rebalancing of our funding portfolio.
Bond curiosity revenue grew 28% for the fourth quarter this 12 months. Internet purchases of mounted maturities securities totaled $1.1 billion for the quarter and $2.5 billion for the 12 months. The fourth-quarter pre-tax common yield of 4.93% for the mounted maturity portfolio was up 45 foundation factors in contrast with final 12 months. The common pre-tax yield for the whole of bought taxable and tax-exempt bonds throughout 2024 was 5.66%.
Valuation adjustments in combination for the fourth quarter have been unfavorable for each our fairness portfolio and our bond portfolio. Earlier than tax results, the online loss was $136 million for the fairness portfolio and $350 million for the bond portfolio. On the finish of the fourth quarter, the whole funding portfolio internet appreciated worth was roughly $6.7 billion. The fairness portfolio was in a internet acquire place of $7.2 billion, whereas the mounted maturity portfolio was in a internet loss place of $553 million.
Money circulate along with increased bond yields proceed to learn funding revenue development. Money circulate from working actions for full-year 2024 was $2.6 billion, up 29% from final 12 months. Relating to expense administration, our goal is to steadiness spending management efforts with investing strategically in our enterprise. Our 29.9% full-year 2024 property casualty underwriting expense ratio was in step with 2023 in whole and for every main expense class.
The fourth quarter ratio was 1.4 share factors decrease than final 12 months primarily as a consequence of decrease accruals for company revenue sharing commissions along with premium development outpacing the rise in employee-related bills. My subsequent matter is loss reserves, the place our strategy stays constant and goals for the online quantities within the higher half of the actuarially estimated vary of internet loss and loss expense reserves. As we do every quarter, we contemplate new info reminiscent of paid losses and case reserves. Then we up to date estimated final losses and loss bills accidentally 12 months and line of enterprise.
Throughout 2024, our internet addition to property casualty loss and loss expense reserves was $1.1 billion, together with $998 million for the IBNR portion. We skilled $236 million of property casualty internet favorable reserve improvement on prior accident years that benefited the mixed ratio by 2.7 share factors throughout 2024. For our industrial casualty line of enterprise, there was no materials reserve improvement for any prior accident 12 months in the course of the fourth quarter. On an all-lines foundation accidentally 12 months, internet reserve improvement throughout 2024 included a good $369 million for ’23, favorable $63 million for ’22, favorable $5 million for ’21, and an unfavorable $201 million in combination for accident years previous to ’21.
My ultimate feedback spotlight our capital administration actions. For full-year 2024, we returned capital to shareholders by way of $490 million of dividends paid along with share repurchases. Shares repurchased totaled 1.1 million shares at a mean value of roughly $113 per share, together with an immaterial quantity in the course of the fourth quarter. We imagine our monetary flexibility and our monetary power are each in glorious place.
Mum or dad firm money and marketable securities at year-end totaled $5.2 billion. Debt to whole capital remained beneath 10%. And our quarter-end e book worth was at a file excessive $89.11 per share with practically $14 billion of GAAP consolidated shareholders’ fairness offering loads of capability for worthwhile development for all of our insurance coverage operations. Now I am going to flip the decision again over to Steve.
Steve Spray — President and Chief Govt Officer
Thanks, Mike. 2025 marks the seventy fifth anniversary of the Cincinnati Insurance coverage Firm. Over that point, we have come to know the significance of stability, consistency, and monetary power. We perceive that we’re within the enterprise of accepting threat.
We plan for it, we value for it. We spend appreciable effort and time centered on appropriately balancing development and profitability by way of geographic and product diversification, pricing threat administration. Nobody expects to expertise a catastrophic loss reminiscent of these thought by the individuals who discovered themselves within the paths of Hurricanes Helene and Milton or the California wildfires. Nevertheless, it is within the aftermath of those occasions that Cincinnati Insurance coverage can shine assured in our monetary power.
Our claims associates can deal with delivering quick, truthful, an empathetic service. On the identical time, we’re able to construct worth for shareholders. The board not too long ago bolstered their confidence in our technique by declaring a 7% dividend enhance payable in April and paving the way in which to increase our streak of accelerating dividends to 65 years. As a reminder, with Mike and me at this time are Steve Johnston, Steve Soloria, Marc Schambow, and Theresa Hoffer.
Gary, please open the decision for questions.
Questions & Solutions:
Operator
[Operator instructions] Our first query at this time comes from Michael Phillips with Oppenheimer. Please go forward.
Mike Phillips — Oppenheimer and Firm — Analyst
Thanks. Good morning, everyone. I simply need to begin off, I suppose, Steve, need to get perspective on higher-level query on the outlook for the reinsurance sector within the aftermath of California. I suppose how do you see capability because the 12 months progresses? How do you count on Cincinnati Re to reply? After which possibly how you can translate into sort of premium for 2025 for that section? Thanks.
Steve Spray — President and Chief Govt Officer
Yeah. Are you speaking particularly on Cincinnati Re or Seeded Re?
Mike Phillips — Oppenheimer and Firm — Analyst
First all of your ideas Sure, simply your ideas in the marketplace typically broadly for the trade, the way it responds. — after which sort of drill right down to the way you guys — it seems to be going to be some alternatives, the way you guys would reply and what does that imply for Cincinnati Re?
Steve Spray — President and Chief Govt Officer
Yeah. Perhaps I am going to begin with simply the reinsurance market to your query, Mike. First is I believe the reinsurers appropriately, the final couple of years, I believe, have proven simply the trade itself has proven an underwriting revenue. I believe that is good.
That is wholesome. All of us want that. I am going to converse particularly for Cincinnati Insurance coverage. We have simply received such long-term relationships and partnerships with our seeded companions, our reinsurers and speak to them frequently, clearly.
We count on to pay all of our losses floor up plus the reinsurer’s margin over time. We’d like them wholesome. They know that. We have traded with them that manner over time, and that will not change, no remarks there.
Cincinnati Re, they are going to keep the course. You heard extraordinarily worthwhile 2024 inception so far with Cincinnati Re. — could be very worthwhile as nicely. They plan for CAT.
That is what they do. Their losses on — particularly on the California wildfires have been inside expectation. They usually’ll proceed all year long with their 2025 plan. No change.
Mike Phillips — Oppenheimer and Firm — Analyst
OK. Thanks, Steve. Subsequent query is I requested, I would not classify your Morelli publicity typically on your firm is tiny, however it’s actual not outsized. However a query associated to kind of umbrella.
In Private Traces, I believe this quarter — in Private Traces, I did not see numerous change in declare connectivity in that two to 5 layer. However greenback quantity did transfer up. So one thing is there, 10 plus $25 million, $35 million of loss within the two to 5. Any shade you’ll be able to add on something in 1 / 4 particularly that will assist justify that further quantity of {dollars} in that layer after which extra broadly after the quarter, something you are seeing in umbrella extra layers that will trigger any considerations? Thanks.
Steve Spray — President and Chief Govt Officer
Thanks, Mike. I recognize the query. Now taking a look at 1 / 4 for umbrella, whether or not or not it’s industrial or private. I believe it should it should sort of mislead you just a little bit.
I believe you bought to drag again to extra of an annual quantity. There’s simply — the frequency with umbrella is clearly very low. It is a severity line. There’s inherent volatility in it.
So we have a look at each single massive loss we have now in each line of enterprise we have now and search for tendencies, whether or not or not it’s by state, by brokers class of enterprise, that is — clearly, I am talking to industrial. We do the identical factor for Private Traces as nicely. So we do not see something in that industrial e book — or excuse me, in that Private Traces umbrella e book that causes us any concern.
Mike Phillips — Oppenheimer and Firm — Analyst
OK, Steve, thanks and congrats on the quarter. Admire it.
Steve Spray — President and Chief Govt Officer
Yeah. Thanks a lot, Mike. Admire it.
Operator
The following query is from Gregory Peters with Raymond James. Please go forward.
Gregory Peters — Raymond James — Analyst
Good morning. I need to return to the touch upon loss. May you present some perspective on — I believe you mentioned $50 million to $60 million of reinstatement prices what the gross loss may be or what you are pegging for utilizing on your gross loss quantity? And — simply attempting to determine how far up the tower you went.
Steve Spray — President and Chief Govt Officer
Yeah. Thanks, Greg. And as you’ll be able to think about, that is an lively, nonetheless an lively cat. And for proper now, our vary, our internet vary that we’re offering you is our greatest estimate of final loss and we’ll simply follow that internet vary of the $450 million to $525 million — simply not there’s so many shifting elements proper now, Greg, simply offering a gross quantity is — we’re not able to go.
Gregory Peters — Raymond James — Analyst
And may possibly pivot away from that then and simply I do know the — there was a name not too long ago with insurance coverage regulator and the governor and a bunch of insurance coverage firms. And it looks like there’s some motion to creating — permitting extra charge exercise in householders to compensate for the fireplace threat. Are you able to speak about what your perspective is of that market on the lookout for as soon as we get by way of paying all of the losses.
Steve Spray — President and Chief Govt Officer
Yeah, positive. One factor I would level out for the Cincinnati e book is 77% of our home-owner premiums in California at this time are on a non-admitted foundation. On the admitted facet, I do not — I believe it is fairly nicely documented. I do not assume it is any secret that California is a difficult market.
We have nice brokers and policyholders, and we need to help them. as you’ll be able to think about additionally, after — I simply talked about any particular person single massive loss and likewise after any cat occasion, we do dive as an organization and objectively have a look at every part, whatever the occasion and decide if there’s classes discovered, there’s all the time classes discovered. However there’s something we have to do in altering our technique shifting ahead, if something. We’ll clearly do this right here with California and with the wildfires, and there is simply numerous — as you’ll be able to think about, Greg, there’s numerous shifting elements with this as nicely.
And sure, the regulation charge surroundings and issues of that nature, there is a lengthy checklist of issues that we’ll have a look at. However I believe proper now, we’re actually centered on paying claims pretty, empathetically nose to nose. And the teachings discovered, though we’re taking a look at them actively — that may take just a little longer to actually formulate if we’ll make any adjustments going ahead.
Gregory Peters — Raymond James — Analyst
OK. I am going to pivot away from that line of query. Simply my query broadly in is there’s — within the industrial traces market, possibly within the private traces market ex-California, only a rising sense that the pricing cycles sort of peaked, possibly it is moderating value will increase aren’t as strong and a few situations are happening. Are you able to remind us and simply give us a snapshot of the place you have been on the finish of the 12 months? And I do know a part of your e book has multiyear insurance policies.
Are you able to give us a snapshot of the place these insurance policies reside and what the proportion of the whole was?
Steve Spray — President and Chief Govt Officer
Yeah, positive. In order we simply talked about on the — for the foremost traces of enterprise, industrial property, common legal responsibility, and auto have been within the excessive single-digit vary. Work comp is down within the mid-single-digit vary. That is been — that is been fairly nicely documented.
So we’re nonetheless seeing charge in e book. However I believe the purpose estimate or the typical, Greg, simply would not — it would not inform the story for us. Our underwriters on the desk stage working with brokers utilizing the precision — the pricing instruments that they’ve. So there’s a big share of our e book of enterprise.
And as you recognize, we’re a package deal underwriter, that will simply for example, might get a flat enhance. And there’s a share of our e book, it is albeit smaller, might get 20% or 30% being is that we’re in — we’re underwriting and pricing coverage by coverage, threat by threat. So we’re nonetheless seeing charge come into the e book, the speed from final 12 months, 18 months in the past was nonetheless incomes into the look. So I believe right here all through 2025, you may nonetheless see charge coming into that industrial traces e book.
Gregory Peters — Raymond James — Analyst
Thanks on your solutions.
Steve Spray — President and Chief Govt Officer
Certain. Thanks, Greg.
Operator
The following query is from Dean Criscitiello with KBW. Please go forward.
Dean Criscitiello — Keefe, Bruyette and Woods — Analyst
Hello. I needed to start out and kind of dive deeper into the reserve putting, each within the industrial auto extra and surplus line section. I used to be simply kind of curious like if there’s anything you may present on kind of the accident years that the strengthening from? And what kind of tendencies you are seeing in these traces?
Mike Sewell — Chief Monetary Officer
Sure. Thanks for the query, Dean. That is Mike Sewell. So sure, you are keying in on a few factors there.
So on the non-public auto, it is actually, I believe our case incurred for a number of the legal responsibility coverages which might be in there. We’re displaying an upward development. And I might say that these have been principally for the 2023 and the 2022 accident years principally — in order that’s the place you noticed just a little little bit of reserve strengthening there. After which because it pertains to the excess traces, our case incurred are there.
They have been simply — they have been simply materializing better than what we had anticipated. E&S is about 90% casualty, not less than of our e book. So it is actually sort of just like the trade averages that we’re seeing with inflation, and so forth. So extra prudent reserving was there.
And as I indicated, we added $998 million of IBNR. So for the general e book, a few third of that went to industrial casualty. So simply prudent reserving, watching what we’re doing, and being according to our course of. So thanks for the query.
Dean Criscitiello — Keefe, Bruyette and Woods — Analyst
Sure. Received it. That is sensible. After which simply rapidly on the industrial property like present accident close to ex cat misplaced ratio.
It appeared abnormally low this quarter? Or is there another shade you may present on and why the profitability was so robust this quarter?
Steve Spray — President and Chief Govt Officer
Certain. Dean, that is Steve Sprague. Sure, we’ll take it. It — however what’s driving that was only a drop in massive losses has drove absolutely the lion’s share of these industrial property outcomes.
However I might be — you may get volatility with these massive losses quarter to quarter. We have had it the place it is gone the opposite manner. So once more, I desire to take a look at the sort of the total 12 months — our groups, I would be remiss if I did not speak about Business Traces underwriting groups working with the brokers and underwriting that industrial property e book. it was operating a little bit of a temperature.
And so simply as we all the time do, all fingers on deck with threat choice and pricing segmentation received us in a great spot there.
Dean Criscitiello — Keefe, Bruyette and Woods — Analyst
Received it. Thanks.
Steve Spray — President and Chief Govt Officer
Thanks.
Operator
[Operator instructions] The following query is from Michael Zaremski with BMO Capital Markets. Please go forward.
Unknown speaker — — Analyst
Hello. Good morning. It is Dan on for Mike. If I may simply return to including to industrial casualty, IBNR, you are still including to these ranges 12 months over 12 months, possibly rather less so in magnitude in 2023.
However are you able to simply speak in regards to the loss value inflation development that you just’re seeing now and the way that is modified all year long? Thanks.
Steve Spray — President and Chief Govt Officer
Certain. Mike, Steve Spray once more. Sure, as you recognize, we do not disclose a selected loss enhance. However possibly I am going to hit this just a little broader too, is we really feel — we really feel that our charges, our premiums, once more, that is on a potential foundation, every part we do with ratemaking is potential that our pricing is exceeding or matching loss prices.
And the one one caveat on that will be with the employees’ compensation line of enterprise.
Unknown speaker — — Analyst
OK. Thanks. After which possibly simply on the casualty development. How a lot of that will you say is a response to since these contractors, trade publicity? Some friends have talked about this trade as being overly uncovered to social inflation.
Steve Spray — President and Chief Govt Officer
Yeah. I can not say that we have now seen the development enterprise, not less than the enterprise that we write, Mike, overly uncovered to social inflation. A variety of the social inflation we see is into the umbrella of auto — industrial auto losses. We do again to the development piece.
We do watch intently, and it actually will depend on the jurisdiction you are in or the venue in development defect claims is usually a problem occasionally, and possibly that is what they’re referring to. However for our development e book, which might be small to mid-market, significantly commerce contractors and such, with that blend of enterprise, — we’ve not seen — I can not say we have seen the social inflation into our development e book.
Unknown speaker — — Analyst
OK. Thanks. Then additionally simply on staff’ comp, you talked about that is the one line of enterprise the place you are seeing development above pricing. Simply there was an acceleration of reserve leases and comp this 12 months.
Are there any ideas to possibly adjusting that choose going ahead or taking some extra of the excellent news upfront?
Steve Spray — President and Chief Govt Officer
Properly, that is one thing that we speak frequently right here with the actuarial workforce, they usually’re looking at it on a regular basis. So I haven’t got something to report on that, Mike. Clearly, I have been speaking in regards to the deterioration of labor comp pricing for — I do not understand how lengthy now and calendar 12 months smart, the outcomes proceed to be favorable. So we’ll take it.
However your level can be nicely taken so far as simply understanding and possibly taking a special view of it. We’ll go away that within the fingers or in discussions with the actuaries.
Unknown speaker — — Analyst
Thanks.
Operator
This concludes our question-and-answer session. I wish to flip the convention again over to Steve Spray for any closing remarks.
Steve Spray — President and Chief Govt Officer
Thanks, Gary, and thanks all for becoming a member of us at this time. We sit up for talking with you once more on our first-quarter 2025 name.
Operator
[Operator signoff]
Length: 0 minutes
Name individuals:
Dennis E. McDaniel — Investor Relations Officer
Steve Spray — President and Chief Govt Officer
Mike Sewell — Chief Monetary Officer
Mike Phillips — Oppenheimer and Firm — Analyst
Gregory Peters — Raymond James — Analyst
Dean Criscitiello — Keefe, Bruyette and Woods — Analyst
Unknown speaker — — Analyst
