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- **Record Q3 EPS growth**: Core EPS of $1.36 (+64% YoY) driven by 40%+ sales growth in Supplemental and Group Benefits.
- **AI efficiency gains**: GenAI automates 20-30% of customer care tasks, reducing administrative costs and turnover.
- **Strategic investments**: $3-$7M Q4 donation to educators, expanded agent network, and new cancer coverage product.
- **Financial strength**: Full-year EPS guidance raised to $4.50-$4.70, supported by $65M catastrophe loss assumption and 15qtr+ core yield spread benefit.
- **Sustainability focus**: 1.5pt expense ratio reduction target over 3 years through scale-building investments.

**【CEO Summary Section】**
- **Record Q3 core EPS of $1.36**, up 64% YoY, driven by strong growth across all segments.
- **Segment outperformance**: Individual supplemental sales +40% QoQ, Group Benefits sales nearly doubled QoQ, Life sales +16%, Retirement deposits +9%.
- **AI-driven efficiency**: GenAI automates 20-30% of customer care tasks, reducing administrative burden and turnover-related costs.
- **Strategic investments**: Expanded agent network (+30% benefit specialists), new cancer coverage product, and partnerships with Teach for America and Grand Canyon University.
- **Shareholder returns**: $20M repurchased YTD, $43M dividends paid, with $57M remaining under buyback authorization.

**【CFO Financial Commentary】**
- **Q3 core earnings**: $57M, up 64% YoY. Full-year guidance raised to $4.50-$4.70 EPS, reflecting $65M catastrophe losses and $473M-$477M net investment income.
- **P&C performance**: Auto combined ratio 94.9% (improved 3pts YoY), Property combined ratio 83.1% (vs. 90% target). Pretax catastrophe losses $10M Q3 vs. $91M YoY prior year.
- **Expense management**: $1M annual savings from legacy pension termination, ongoing process improvements (e.g., straight-through processing).
- **Investment strength**: Core fixed income new money yield exceeds book yield by 100+ bps, 15th consecutive quarter of spread benefit.

**【Q&A Highlights】**
- **Policy growth trajectory**: All segments show YoY growth (auto +4%, Property +8%, Life +16%), with retention rates above 80% across P&C.
- **Q4 guidance breakdown**: Implies $1-$1.20 EPS, reflecting seasonal auto frequency, $3-$7M Foundation donation, and strategic investment acceleration.
- **Supplemental lead management**: Uses external partner for lead gen, focusing on educator-specific products (e.g., cancer coverage) with 25.4% benefits ratio.
- **Catastrophe outlook**: 2026 cat losses expected to align with long-term averages, with non-rate actions (deductibles, roof schedules) mitigating volatility.
- **Expense ratio reduction**: Aiming to lower expense ratio by 1.5pts over 3 years through scale-building investments in distribution and infrastructure.

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