Earnings Call Transcript - CNO Q4 2025

Operator, Operator

Hello, everyone. Thank you for being here and welcome to the CNO Financial Group Fourth Quarter Earnings Call. We will now turn the call over to Adam Auvil, VP of Investor Relations. Please proceed.

Adam Auvil, VP of Investor Relations

Good morning, and thank you for joining us on CNO Financial Group's Fourth Quarter 2025 Earnings Conference Call. Today's presentation will include remarks from Gary Bhojwani, Chief Executive Officer; and Paul McDonough, Chief Financial Officer. Following the presentation, we will also have other business leaders available for the question-and-answer period. During this conference call, we will be referring to information contained in yesterday's press release. You can obtain the release by visiting the Media section of our website at cnoinc.com. This morning's presentation is also available in the Investors section of our website and was filed in a Form 8-K yesterday. Let me remind you that any forward-looking statements we make today are subject to a number of factors, which may cause actual results to be materially different than those contemplated by the forward-looking statements. Today's presentation contains a number of non-GAAP measures, which should not be considered as substitutes for the most directly comparable GAAP measures. You'll find a reconciliation of the non-GAAP measures to the corresponding GAAP measures in the appendix. Throughout the presentation, we'll be making performance comparisons, unless otherwise specified, any comparisons made will refer to changes between full year '25 and full year 2024. And with that, I'll turn the call over to Gary.

Gary Bhojwani, CEO

Thanks, Adam. Good morning, everyone, and thank you for joining us. CNO once again delivered excellent quarter and full year results. We are growing and investing in the franchise, growing operating earnings and improving profitability, all at the same time. Our performance remains consistent and repeatable, underpinned by strong execution and a focus on the underserved middle-income market. We achieved and in most cases, exceeded all of our 2025 guidance, including improving our operating return on equity to 11.4%, excluding significant items. Building on our sustained momentum, 2025 represented one of our best operating performances to date. We delivered our 14th consecutive quarter of sales growth, our 12th consecutive quarter of growth in producing agent count and our most productive year ever for both our Bankers Life and Optavise captive agencies. For the full year, we delivered record total new annualized premium, up 15%. We set production records across both divisions and in multiple product lines, a clear sign that our model is meeting the broad-based needs of our middle-income consumers. Our exclusive middle market focus and our last mile captive agent distribution model create our durable competitive moat. This difficult-to-replicate model is a clear competitive advantage and a catalyst for profitable growth. I'll cover these results in more detail in each division's comments. Our consistent sales momentum is driving earnings growth. Operating earnings per diluted share was $4.40, an increase of 11%. Earnings continue to benefit from strong insurance product margin and investment results, reflecting growth in the business and expansion of the portfolio book yield. New money rates have exceeded 6% for 12 consecutive quarters while maintaining portfolio quality. Paul will go into greater detail on our financial performance. We ended the year with a robust total capital position after returning $386 million to shareholders, an 11% increase over 2024. And for the 13th year in a row, we raised our quarterly common stock dividend. Book value per diluted share, excluding AOCI, was $38.81, representing a 7% compound annual growth rate over the past 3 years. Additional highlights from 2025 include a second reinsurance transaction with our Bermuda affiliate, continued strong capital position and free cash flow generation and an all-time high share price. Turning to Slide 5 and our growth scorecard. 2025 was a record-setting year, and nearly all growth scorecard metrics were up for the quarter and for the full year. As a reminder, our growth scorecard focuses on the 3 key drivers of our performance: production, distribution and investments in capital. I'll discuss each division in the next 2 slides. Paul will cover investments and capital during his remarks. Beginning with the Consumer division on Slide 6. Our Consumer division delivered an exceptional year capped off by our 13th consecutive quarter of sales growth. 2025 also marked the third consecutive year of record production by the Bankers Life agent force. For the full year, we delivered record total NAP up 15%, double-digit growth in life, supplemental health and Medicare Supplement and record growth in annuities and client assets in brokerage and advisory. Life NAP was up 10% for the full year, led by record direct-to-consumer life sales, up 20%. Our targeted measured approach to the D2C channel benefited from technology-driven productivity enhancements and diversifying our direct marketing away from television to include more web, digital and third-party channels. These non-television lead sources generated over 70% of all D2C life sales for the year. Total Health NAP was up 22%, which marks 14 consecutive quarters of growth. Supplemental health was up 15% and long-term care was up 4%. Our field force delivered another exceptional performance during the Medicare annual enrollment period. Medicare Supplement NAP was up 49% for the full year and up 92% for the quarter, our best Med Supp quarter in 15 years. Medicare Advantage policies sold, which are not reflected in NAP, were down 3% for the year. Our results reflect a growing shift in consumer preferences from Medicare Advantage to Medicare Supplement as many of the leading MA carriers pare back plans and benefits reversing a decade-long trend. Medicare remains a flagship door opening product for us to meet and serve more customers. Total Medicare policies sold were up 5% for the year. With approximately 11,000 Americans turning 65 each day, we expect overall demand for Medicare products to grow and to help us expand the total number of households we serve. Record annuity collected premiums were up 9% for the full year and up 3% for the quarter, our 10th consecutive quarter of growth. Collected premiums in the quarter totaled $508 million and in-force account values were up 7%, exceeding $13 billion. Our captive distribution and the long-term relationships that our agents establish with their clients add stability to our annuity block. We delivered our 11th consecutive quarter of brokerage and advisory growth. Client assets in the channel were up 24% over the prior year, totaling more than $5 billion. For the full year, total accounts were up 12%. When combined with our annuity account values, our clients now entrust us with more than $18 billion of their assets, up 11% from 2024. Improving agent productivity fueled our sustained sales momentum in 2025. Producing agent count grew for the 12th consecutive quarter and registered agent count was up 8%. The Consumer division delivered another outstanding year. We expect that same focus and momentum to carry into 2026. Next, Slide 7 and our Worksite Division performance. Worksite insurance sales have never been stronger, with 2025 representing the best production year ever for our worksite business. We finished the year with record full year insurance sales, up 15% and record fourth quarter insurance sales up 13%. This represents our second consecutive year of record production and 15th consecutive quarter of NAP growth. Full year highlights included record life insurance sales, up 36%; hospital indemnity insurance, up 41% and accident insurance up 11%. Strategic growth initiatives contributed significantly to our Worksite NAP performance in 2025. Our geographic expansion initiative delivered 11% of the NAP growth for the year, and NAP from new group clients was up 23%. Producing agent count was up 7%, driven by recruiting up 10%. This marks our 14th consecutive quarter of growth in the agent force. Our previously announced exit of the fee services business within Worksite is progressing on schedule and should be largely complete in the first half of 2026. We are already seeing the benefits of streamlining our focus on core insurance business. As we enter 2026, we remain confident in our ability to execute and continue to grow the business. And with that, I'll turn it over to Paul.

Paul McDonough, CFO

Thank you, Gary, and good morning, everyone. I want to highlight the financial performance presented on Slide 8. Our results for the quarter and the year showcase our capability to achieve steady and profitable growth. Operating return on equity, excluding significant items, was 11.4%, a marked improvement from the 10% return on equity in 2024 and progress towards our target of 12% by 2027. Operating earnings per share, excluding significant items, increased by 10% this quarter and 6% for the year, driven by strong performance in both insurance product margins and net investment income. Our full year operating earnings per share, excluding significant items, was $4.02, surpassing the high end of our initial guidance. Additionally, our full year expense ratio of 18.9%, excluding significant items, was better than the anticipated low end, reflecting enhanced operating leverage as we grow. The effective tax rate on operating income was 20.6% for the year, below our guidance of 22% to 22.5%, benefiting from tax strategies implemented in the fourth quarter, including tax credits and reduced state tax impacts. We utilized $320 million of excess capital for share repurchases this year, an increase of 14%, contributing to an 8% reduction in our weighted average diluted shares outstanding and reflecting robust free cash flow generation. The quarter and full year demonstrate the operational momentum we have maintained. On Slide 9, total insurance product margin, excluding significant items, rose again this quarter, sustained by outstanding sales performance across both divisions and most products. This growth, along with stable claims trends, drives higher margins across the three product categories. 2025 highlights our diversified product portfolio, where regular fluctuations across product lines consistently lead to stable and growing total margins over time. Moving to Slide 10, net investment income remains strong, marking nine consecutive quarters of growth. Allocated net investment income grew due to a 4.1% increase in average net insurance liabilities and improved yields on allocated investments, resulting in a 6% rise for the year. Non-allocated net investment income reflects various component fluctuations, while the quarter's strong performance was supported by alternative investment income that met yield expectations and a $12 million special dividend. Total net investment income is underpinned by disciplined portfolio management, steady asset growth, and durable yield performance, all supporting solid earnings fundamentals. In the quarter, we issued $400 million in FABN and $750 million for the full year, continuing to achieve quality risk-adjusted returns, with intentions to maintain this program as conditions allow. Our new investments during the quarter amounted to approximately $1.6 billion with an average rating of A and a duration of six years, detailed further on Slide 22. The new money rate stood at 6.11%, marking the twelfth consecutive quarter above 6%. On Slide 11, our investment portfolio remains high quality and liquid, ending the year with a record $31 billion in invested assets, 97% rated investment grade, with an average rating of A. The portfolio's performance reflects our consistent approach to quality and is well-diversified. Our commercial real estate and private credit portfolios are performing as expected, aided by conservative underwriting and proactive risk management. On Slide 12, we concluded the year with a robust capital position. Our consolidated risk-based capital ratio was 380%, with a target range of 360% to 390%, allowing for normal fluctuations. This aligns with our descriptions to rating agencies and regulators regarding our risk management. Holding company liquidity was $351 million, exceeding our minimum of $150 million due to strong free cash flow and a reinsurance transaction announced in November. Our debt to total capital remains within our target range of 25% to 28%. Overall, our capital position is strong, offering flexibility for growth, maintaining financial resilience, and supporting disciplined capital deployment. On Slide 13, our initial guidance for 2026 indicates we aim for a 200 basis point improvement in operating return on equity through 2027 from a 2024 ROE of approximately 10%. Our 2026 forecast aligns with this trajectory, focusing on enhanced profitability while sustaining our growth momentum and capital stability. We anticipate operating earnings per share between $4.25 and $4.45, reflecting an 8% increase at the midpoint from our 2025 results, assuming a stable macro environment and consistent investment returns. We expect our expense ratio to fall between 18.8% and 19.2%, indicating stable operating leverage amid ongoing investments to support growth. As in previous years, we expect some seasonality, with the expense ratio starting higher in the first quarter and decreasing as the year continues. Fee income is projected around $30 million for the year, primarily in the first quarter, with minimal contributions in the second and third quarters, and the remainder in the fourth quarter. The effective tax rate is estimated at approximately 22.5%. We anticipate free cash flow between $200 million and $250 million, facilitating ongoing capital deployment while upholding a strong balance sheet and investing in our growth initiatives. You may remember that in 2025, we initiated a three-year investment in technology modernization, totaling approximately $170 million. This initiative is on track and on budget, having expended about $20 million in 2025, with an expected additional $75 million in 2026. It's important to note that our free cash flow guidance accounts for this investment. We expect to maintain a risk-based capital ratio within the 360% to 390% range and a minimum holding company liquidity of $150 million, along with a debt to total capital ratio of 25% to 28%. Now, I'll hand it back to Gary.

Gary Bhojwani, CEO

Thanks, Paul. Turning to Slide 14. CNO once again had exceptional full year results. We achieved and in most cases, exceeded all 2025 guidance metrics and delivered one of our best operating performances on record. Consistent, repeatable results continue to drive our momentum. We're growing and investing in the franchise while also growing earnings and improving profitability. We enter 2026 with a strong capital position and a path to achieving our 2027 ROE target. Thank you for your support of and interest in CNO Financial Group. We will now open it up for questions.

Operator, Operator

Your first question comes from Suneet Kamath from Jefferies.

Suneet Kamath, Analyst

I wanted to start with earnings emergence, and maybe this one is for Paul. As we think about the strong sales that you guys have generated over the past couple of years, I'm assuming there's some sort of lag between kind of when you write the business and when it sort of fully earns in. So I was just wondering if you can maybe give us a rule of thumb in terms of sort of how long does it take to kind of hit the target returns that you're pricing for?

Paul McDonough, CFO

Sure. Suneet, I appreciate the question. So it depends by product and the duration of the product. I guess what I'd emphasize is that we are hitting our target returns across our product portfolio. And the guidance that we've provided is capturing how earnings are emerging based on the sales trends over the last few years. And given our continued sales momentum and how that translates to earnings, that gives us confidence in our ability to meet the ROE target in 2027. And as Gary has emphasized on a number of occasions, that's not the endpoint, right? The expectation is that beyond 2027, we would continue to see ROE improvement.

Suneet Kamath, Analyst

Got it. And then I guess maybe for Gary, just wanted to get a sense of how you're thinking about the environment. We're seeing layoffs. We're seeing bad job numbers. On the one hand, it creates an opportunity for you from a recruiting perspective. On the other hand, it could create challenges for your target market. So I was just hoping you could walk us through your thoughts on that. And then do you have an expectation for producing agent count growth in 2026?

Gary Bhojwani, CEO

Yes, good question. I'll start with the last question first. Do we expect to grow producing agent count? Yes, we will continue to grow it; that's our expectation. While I believe producing agent count growth is important, it is secondary to agent productivity. Ideally, we aim to increase both the number of agents and their productivity. However, if I had to choose, I would always prioritize productivity. In simpler terms, we expect the agent count to grow in 2026, but my main focus is on productivity. Regarding the overall outlook, I must first acknowledge that I am not very good at predicting things like interest rates or the weather. If you want to know what is unlikely to happen, just ask me for a prediction. Having said that, I believe 2025 was a year with significant uncertainty, and I still feel that way. There are many variables affecting interest rates, geopolitics, and more. It’s tough to predict, but I genuinely think that 2025 and now 2026 have been some of the most uncertain times I’ve experienced as a CEO. That said, we have observed job numbers and reports of more layoffs. This typically assists us in recruiting, but it also makes consumers more cautious about discretionary spending. What this means for us is that while agent counts may increase, sales of products like Medicare Supplement, which tend to be more stable in economic downturns, should remain reasonable. However, sales of discretionary products like annuities, life insurance, and long-term care could become more challenging in a tougher macro environment. Despite these challenges, it's important to remember that every day, 11,000 people turn 65, and they often lack alternatives for long-term planning. This presents us with an opportunity, although the pressures and headwinds are certainly increasing. Was that the level of detail you were looking for, or is there something I missed?

Suneet Kamath, Analyst

No, that's great. If I could ask one more question, Paul, I believe you mentioned in the last call that it was reasonable to expect about one Bermuda transaction per year. I just want to confirm that this is still the case and that there hasn't been any change in that thinking at a high level.

Paul McDonough, CFO

Yes. So Suneet, I guess I'd say that we're very pleased to have completed our second treaty in Q4 of last year. We continue to work to further grow our Bermuda operation. But we won't share any specific plans as to not to get ahead of the regulatory review process. Our guidance does not contemplate any additional treaties beyond the two already in place for 2026. But I think, as I said last time, the cadence we've been on should be a decent indication of the cadence going forward.

Gary Bhojwani, CEO

Suneet, I agree with Paul's comments. I would just like to emphasize one point. We enjoy really good relationships with the regulators there and frankly, in the U.S. as well. And I think part of the reason we have those good relationships is because we're very respectful of their process. We never want to make any predictions that would seem like we're getting ahead of them or their processes, and that's why we don't build those types of things into our projections. We will be working to do what makes sense and what's smart and so on, but we also want to be respectful of the regulatory process.

Operator, Operator

Your next question comes from Wilma Burdis at Raymond James.

Wilma Jackson Burdis, Analyst

Growth in '25 was strong at kind of high single digits or maybe, I guess, low double digits. But I realize this has been a result of multiple years, Gary, that you've been focused on positioning the business for growth. But is this a sustainable level? Anything unusual in 2025? Or I suppose there could even be some upside, right, with Medicare Advantage issues, tech investments, that kind of thing. So maybe just give us some color.

Gary Bhojwani, CEO

Yes. To answer your question, Wilma, let me provide an overview on a product-by-product basis. We anticipate a decline in our Medicare Advantage sales due to current market conditions, which is unrelated to CNO. Conversely, we expect our Medicare Supplement sales to continue increasing, as more of the 11,000 seniors turning 65 each day are likely to purchase these plans compared to historical trends. For other products, prediction becomes more complex. As I mentioned in my discussion with Suneet, macroeconomic conditions will significantly influence discretionary consumer purchases. We've managed to navigate through these challenges thus far, bolstered by favorable demographic trends. However, if we experience greater challenges, such as a rise in layoffs, discretionary purchases may slow down, and we will feel the effects of that. Overall, we're still quite confident in the guidance we've given regarding return on equity and earnings, recognizing that we may see variability across different products. We do recognize the potential macroeconomic challenges ahead.

Wilma Jackson Burdis, Analyst

And then could you help us think through any impacts on Medicare Advantage distribution fees? I think that there's some actuarial component there that's based on the churn. And we've all heard about Medicare Advantage and some of the issues there. I realize that those underwriting issues don't apply to you guys, but could impact the churn. Is that reflected in the '26 outlook? And maybe if you can give us any additional color.

Gary Bhojwani, CEO

Yes, this is Gary. We've incorporated our expectations for Medicare Advantage volume into our projections. I anticipate continued pressure in that area. It's uncertain whether carriers will prioritize compensation, reduce benefits, or take other actions during this process. Overall, I believe Medicare Advantage will face significant challenges. This reinforces our confidence in our model, as we can meet the needs of consumers seeking this option, but we are certainly placing greater emphasis on Medicare Supplement, which we prefer.

Operator, Operator

Your next question comes from Jack Matten of BMO Capital Markets.

Francis Matten, Analyst

Maybe just one on capital deployment. I guess, given the end of the year with about $200 million above your holding company target. I guess, are you thinking you'll bring that down closer to your target level by the end of this year? And any perspective or thoughts on potential uses of cash would be helpful.

Paul McDonough, CFO

Jack, it's Paul. I would just emphasize that there's really been no change in how we think about deploying excess capital. On the margin, we return it to shareholders through share repurchases, absent more compelling alternatives. We also think there's some wisdom to being somewhat measured in how quickly we take down the excess. So without providing specific guidance, I think the past practice here should be a good indication of our future behavior.

Francis Matten, Analyst

Got it. And maybe just on the unallocated NII. I know there's a lot of things that go into that bucket, but wondering if there's any kind of directional outlook you can provide for that line. I mean I know you called out a $12 million special dividend. If we back that out, is that something close to what a normal run rate that you expect?

Paul McDonough, CFO

Yes. I would point you, Jack, to the detail in the supplement that breaks down what flows through NII not allocated. Certainly, the dividend in the fourth quarter of this year and the fourth quarter of last year is sort of off trend and not something that we expect to be repeated. We may see more of that, but it's not kind of run rate. The one thing that's fairly volatile has been at least the last few years is the income from alts. And certainly, the sequential trend has been good there over the last few quarters, particularly in the fourth quarter of this year, where the yield was actually slightly better than our long-term run rate of sort of 8% to 9%, something in that range. So I wouldn't necessarily predict how that's going to play out over the next 4 quarters. But our guidance does presume that it's generating that long-term return.

Francis Matten, Analyst

Got it. And I guess one more and kind of a follow-up on the Medicare dynamics. I guess I know for Medicare Supplement, you capture both distribution and the underwriting economics. I guess is that then more or less or the same on like an ROE basis versus Medicare Advantage where you really are only counting with the distribution economics of that. Just wondering how we should think about how that plays into your financials and ROE profile.

Gary Bhojwani, CEO

Yes. Economically, frankly, we're indifferent. There are pros and cons to each as an example, with the Medicare Advantage, you get to recognize the income sooner as an example. But the high-level thing you should take away is, economically, we're really indifferent, and we've designed it that way intentionally. All that said, operationally, I have a strong preference for the Medicare Supplement, number one, because we manufacture it and distribute it, so we control the entire chain, if you will. So that isn't an economic commentary. That's just about the business. Second, typically, not always, but typically, Medicare Supplement consumers tend to be of higher net worth, and they tend to have a greater ability to buy other products. And I want to emphasize with that, there are some really strict rules about how you can market to consumers when you have a Medicare relationship and so on. And we, of course, follow all of those rules. So I don't want that to get misinterpreted. But the bottom line is, in the context of those rules, we do better with consumers that have a Medicare Supplement because they typically have a greater net worth and typically have a greater interest in talking to us about other products as well. So that's the reason for the preference.

Operator, Operator

Your next question comes from Wilma Burdis at Raymond James.

Wilma Jackson Burdis, Analyst

Just a couple for you. Are you seeing any dynamics in the investment universe that might influence a shift in allocations to higher-yielding assets in order to just continue to have a good yield given proper risk management with interest rate decreases and ongoing tight spreads.

Paul McDonough, CFO

Thanks for the question. Eric, I'd invite you to offer your perspective on that. We may have lost Eric.

Gary Bhojwani, CEO

I think Eric is having some technical difficulties.

Eric Johnson, Investment Officer

I think right now, we're largely running back what we did for the second half of last year, which was pretty successful, which was largely around sustaining good portfolio quality, supplemented with some small tactical add-ins around the edges that really produce some yield in the portfolio. I would not expect us to be changing necessarily our risk parameters currently. I don't think spreads continue to be very tight. I don't think there's a particular space right now where you're being rewarded for that. That would include the software space, that would include the BDC space as well. Very closely monitoring those areas for opportunities should it arise. But currently, I don't think the valuations have cheapened enough to attract our money. So running it back, I feel good about how things are trending right now. And it will take a little bit more juice in the orange for us to change that.

Wilma Jackson Burdis, Analyst

And then just one last one. Is there any elevated sales benefit that you're seeing from annuities products as a result of the increased health sales, specifically in Medicare Supplement? Or is it just kind of normal course growth?

Gary Bhojwani, CEO

I think it's mainly normal course growth. Now that said, we had really strong Medicare Supplement sales, and that, of course, helped us consistent with my earlier comments, the Medicare Supplement consumers typically have a better cross-sell ratio for us, again, within the context of following all the rules that are out there. So we benefit from that. But in terms of that ratio growing where there was a greater level of cross-sell, I wouldn't say so, no.

Operator, Operator

Your next question comes from John Barnidge from Piper Sandler.

John Barnidge, Analyst

My first question is sticking with the investment portfolio. What's the exposure to software in the investment portfolio as you broadly define it?

Eric Johnson, Investment Officer

John, this is Eric. I hope you can hear me clearly. We see this as an opportunity if it presents itself, rather than a concern. I have a background that includes memories of Polaroid and Kodak, which taught me that the software business is always at risk of disruption. This understanding has guided our approach to investments in this area. Currently, we have around $250 million in software investments, which accounts for about 60 to 70 basis points—a relatively small figure. We have a strong focus on software that caters to enterprises instead of small businesses or consumers, with a particular emphasis on mission-critical software, systems of record, proprietary data repositories, and cybersecurity. I believe we are well-positioned, and should the market reward some risk-taking here, we will be ready. Expanding on this, if you examine our alternatives portfolio, it's quite similar in private credit, which has an allocation of about $1.4 billion. Less than 10% of that is exposed to software, and very little of it involves direct lending. The majority is structured, providing good credit support and margins. Thus, we have strong safeguards in place. In private equity, approximately 15% of our holdings—which amounts to over $400 million—is in software, roughly translating to about $70 million. If we were to face a significant downturn, bigger than what we've seen in private equity or even private credit, it might dampen returns from alternatives, but I don't think it would completely undermine them. Overall, I believe we’re in a solid position, with the capacity and partnerships to capitalize on emerging opportunities. I will stop here but am happy to elaborate on anything you wish.

John Barnidge, Analyst

It was very helpful. My next question for Gary is about the 11,000 people turning 65 each day. You've positioned your company well to benefit from this trend through recruitment and productivity. I'm trying to understand how we expect this number to rise to 12,000 and then potentially decline to 10,000. How long does it take to move from 10,000 to 11,000? Also, can you elaborate on your product positioning for those individuals reaching 65?

Gary Bhojwani, CEO

Yes. Thanks, John, Sorry, I'm getting a lot of echo. A couple of comments. I believe we hit the peak. It's either 2030 or 2035 when the number of folks turning 65 starts to go down again. So we're within 5 to 10 years of that peak number, if memory serves correctly, but we expect it to grow or hold stable until then. And even when it starts to come down, it's not like it's going to go from 11,000 down to 2,000, it's going to gradually reduce again. So it still represents a very significant opportunity for us. So we view this as something that will be there for quite some time regardless of what's happening with Medicare Advantage versus Medicare Supplement. The reality is that anyone who turn 65 is going to at least look at these products. So we expect this opportunity to continue for quite some time.

Operator, Operator

At this time, there are no further questions. I will now turn the call back to Adam Auvil for closing remarks.

Adam Auvil, VP of Investor Relations

Thank you, operator, and thank you all for participating in today's call. Please reach out to the Investor Relations team if you have any further questions. Have a great rest of your day.

Operator, Operator

This concludes today's call. Thank you for attending. You may now disconnect.