Ҵý

Ҵý FINANCIAL ANNOUNCES SECOND QUARTER 2023 NET INCOME OF $1.04 PER SHARE AND CORE INCOME OF $1.13 PER SHARE

  • Net income up 49% to $283 million versus $190 million in the prior year quarter; core income up 34% to $308 million versus $230 million in the prior year quarter.
  • P&C core income of $374 million versus $317 million in the prior year quarter, reflects higher investment income and record high pretax underlying underwriting income, partially offset by higher catastrophe losses and lower favorable net prior year development.
  • Corporate & Other core loss of $46 million versus $78 million in the prior year quarter.
  • Net investment income up 33% to $575 million pretax, includes an $83 million increase from limited partnerships and common stock to $68 million and a $60 million increase from fixed income securities and other investments to $507 million.
  • P&C combined ratio of 93.8%, compared with 91.0% in the prior year quarter, including 3.1 points of catastrophe loss impact compared with 1.8 points in the prior year quarter. The underlying combined ratio was 91.1% compared with 90.8%, in the prior year quarter. The underlying loss ratio was 59.9% and the expense ratio was 30.9%.
  • P&C segments, excluding third party captives, generated gross written premium growth of 12% and net written premium growth of 9%. Excluding currency fluctuations, gross written premiums grew 12% and net written premiums grew 10%. P&C renewal premium change of +7%, with written rate of +5% and exposure change of +2%.
  • Book value per share of $32.22; book value per share excluding AOCI of $44.86, a 5% increase from year- end 2022 adjusting for $2.04 of dividends per share.
  • Board of Directors declares regular quarterly cash dividend of $0.42 per share.

CHICAGO, July 31, 2023 /PRNewswire/ -- Ҵý Financial Corporation (NYSE: Ҵý) today announced second quarter 2023 net income of $283 million, or $1.04 per share, versus $190 million, or $0.69 per share, in the prior year quarter. Net investment losses for the quarter were $25 million compared to $40 million in the prior year quarter. Core income for the quarter was up 34% to $308 million, or $1.13 per share, versus $230 million, or $0.84 per share, in the prior year quarter.

Our Property & Casualty segments produced core income of $374 million for the second quarter of 2023, an increase of $57 million compared to the prior year quarter driven by higher investment income and record high pretax underlying underwriting income, partially offset by higher catastrophe losses and lower favorable net prior year development. P&C segments, excluding third party captives, generated gross written premium growth of 12% and net written premium growth of 9% for the second quarter of 2023 driven by renewal premium change of +7%, including rate of +5%, exposure change of +2% and new business growth of 11%. Excluding currency fluctuations, gross written premiums grew 12% and net written premiums grew 10%.

Our Life & Group segment produced a core loss of $20 million for the second quarter of 2023 versus $9 million in the prior year quarter primarily due to long term care policy buyouts.

Our Corporate & Other segment produced a core loss of $46 million for the second quarter of 2023 versus $78 million in the prior year quarter driven by lower net prior year loss reserve development and higher net investment income.

Ҵý Financial declared a quarterly dividend of $0.42 per share, payable August 31, 2023 to stockholders of record on August 14, 2023.


Results for the Three Months
Ended June 30


Results for the Six Months
Ended June 30

($ millions, except per share data)

2023


2022(a)


2023


2022 (a)

Net income

$ 283


$ 190


$ 580


$ 485

Core income (b)

308


230


633


528

Net income per diluted share

$ 1.04


$ 0.69


$ 2.13


$ 1.78

Core income per diluted share

1.13


0.84


2.33


1.94



June 30, 2023


December 31, 2022 (a)

Book value per share

$

32.22


$

31.55

Book value per share excluding AOCI


44.86



44.83



(a)

AsofJanuary1,2023,the ҴýadoptedLDTIusing the modifiedretrospective methodapplied asof the transitiondate of January1,2021.Priorperiod amountshavebeen adjustedto reflect application ofthenew guidance.



(b)

Managementutilizes thecoreincome (loss)financialmeasure tomonitor theҴý'soperations.Pleasereferherein to the Reconciliation ofGAAPMeasures to Non-GAAPMeasuressection ofthispressreleaseforfurtherdiscussionofthisnon-GAAP measure.

"We produced strong results in the quarter with double-digit top-line growth and continued excellent profitability. Core income increased by 34% in the quarter and net investment income was up 33% with significant increases in LPs, common stock, and the fixed income portfolio.

The all-in combined ratio was very strong at 93.8%, with pretax catastrophe losses of $68 million, or 3.1 points of the combined ratio, and 0.4 points of favorable prior period development. The P&C underlying combined ratio of 91.1%generated arecord $200millionof pretax P&C underlyingunderwriting gain.

In the quarter, we achieved very strong production performance with 12% growth in gross written premium ex captives and 9% growth in net written premium. Renewal premium change was 7% for P&C overall and 11% in Commercial, which was up 2 points from the first quarter. Retention remained consistently high at 86% and new business was up 11%, similar to the first quarter.

With the strong top-line and bottom-line results in the first half of the year and improved investment returns, we areoptimistic about our opportunities through the remainder of 2023," said Dino E. Robusto, Chairman & Chief ExecutiveOfficerofҴýFinancialCorporation.

Property&Casualty Operations


Results for the Three
MonthsEndedJune30



Results for the Six
Months EndedJune30

($millions)

2023


2022


2023


2022

Grosswrittenpremiumsex.3rdpartycaptives

$ 2,986

$ 2,676



$5,710

$5,130


GWPex. 3rdpartycaptives change(%yearover year)

12

%





11

%




Netwrittenpremiums

$ 2,513

$ 2,296



$4,760

$4,319


NWPchange (% yearoveryear)

9

%





10

%




Netearned premiums

$ 2,234

$ 2,037



$4,367

$3,977


NEPchange (%yearover year)

10

%





10

%




Underwritinggain

$ 138

$ 185



$ 268

$ 341


Netinvestmentincome

$ 332

$ 227



$ 633

$ 462


Coreincome

$ 374

$ 317



$ 720

$ 638


Lossratio excludingcatastrophesanddevelopment

59.9

%


60.0

%


59.9

%


60.0

%

Effectofcatastropheimpacts

3.1



1.8



2.7



1.4


Effectofdevelopment-relateditems

(0.4)



(1.6)



0.2



(1.0)


Lossratio

62.6

%


60.2

%


62.8

%


60.4

%

Expenseratio

30.9

%


30.5

%


30.8

%


30.7

%

Combinedratio

93.8

%


91.0

%


93.9

%


91.4

%

Combinedratioexcludingcatastrophesanddevelopment

91.1

%


90.8

%


91.0

%


91.0

%

  • The underlying combined ratio increased 0.3 points as compared with the prior year quarter. The expense ratio increased 0.4 points driven by higher employee related costs. The underlying loss ratio was largely consistent with the prior year quarter.
  • The combined ratio increased 2.8 points as compared with the prior year quarter.Catastrophe losseswere $68 million, or 3.1 points of the loss ratio in the quarter compared with $37 million, or 1.8 pointsof the loss ratio, for the prior year quarter.Favorable net prior year development improved the lossratio by 0.4 points in the current quarter as compared with 1.6 points of improvement in the prior yearquarter.
  • P&Csegments, excludingthirdpartycaptives,generated grosswrittenpremium growthof12%andnetwrittenpremium growthof9%.Excludingcurrency fluctuations,grosswritten premiumsgrew12%andnetwrittenpremiums grew10%.

Business Operating Highlights
Specialty


Results for the Three
Months EndedJune30


Results for the Six
MonthsEndedJune 30

($millions)

2023


2022


2023


2022

Grosswrittenpremiumsex.3rdpartycaptives

$ 961



$ 973



$ 1,847



$ 1,858


GWPex. 3rdpartycaptives change(%yearover year)

(1)

%





(1)

%




Netwrittenpremiums

$ 825



$ 832



$ 1,613



$ 1,603


NWPchange (%yearover year)

(1)

%





1

%




Netearned premiums

$ 812



$ 794



$ 1,609



$ 1,566


NEPchange (%yearover year)

2

%





3

%




Underwritinggain

$ 74



$ 93



$ 154



$ 181


Lossratio excludingcatastrophesanddevelopment

58.6

%


58.6

%


58.5

%


58.7

%

Effectofcatastropheimpacts



0.1





0.1


Effectofdevelopment-relateditems

(0.3)



(1.2)



(0.2)



(1.3)


Lossratio

58.3

%


57.5

%


58.3

%


57.5

%

Expenseratio

32.4

%


30.4

%


31.9

%


30.7

%

Combinedratio

90.9

%


88.1

%


90.4

%


88.4

%

Combinedratioexcludingcatastrophesanddevelopment

91.2

%


89.2

%


90.6

%


89.6

%

  • The underlying combined ratio increased 2.0 points as compared with the prior year quarter due to an increase in the expense ratio driven by higher employee related and acquisition costs.
  • The combined ratio increased 2.8 points as compared with the prior year quarter.Favorable net prioryear development improved the loss ratio by 0.3 points in the quarter compared with 1.2 points ofimprovementin theprioryearquarter.
  • Gross written premiums, excluding third party captives and net written premiums both declined 1% forthesecond quarterof2023.

Commercial


Results for the Three
Months EndedJune30


Results for the Six
MonthsEndedJune 30

($ millions)

2023


2022



2023


2022

Grosswrittenpremiumsex.3rdpartycaptives

$ 1,604



$ 1,321




$ 3,044



$ 2,527


GWPex. 3rdpartycaptives change(%yearover year)

21

%






20

%




Netwritten premiums

$ 1,329



$ 1,134




$ 2,517



$ 2,135


NWPchange (%yearover year)

17

%






18

%




Netearned premiums

$ 1,120



$ 974




$ 2,166



$ 1,878


NEPchange (%yearover year)

15

%






15

%




Underwritinggain

$ 42



$ 69




$ 83



$ 117


Lossratio excludingcatastrophesanddevelopment

61.5

%


61.5

%



61.5

%


61.5

%

Effectofcatastropheimpacts

5.2



3.0




4.7



2.4


Effectofdevelopment-relateditems

(0.5)



(1.8)




(0.3)



(0.9)


Lossratio

66.2

%


62.7

%



65.9

%


63.0

%

Expenseratio

29.6

%


30.0

%



29.8

%


30.3

%

Combinedratio

96.3

%


93.2

%



96.2

%


93.8

%

Combinedratioexcludingcatastrophesanddevelopment

91.6

%


92.0

%



91.8

%


92.3

%

  • The underlying combined ratio improved 0.4 points as compared with the prior year quarter, reflecting the lowest underlying combined ratio on record. The expense ratio improved 0.4 points driven by net earned premium growth of 15%.
  • The combined ratio increased 3.1 points as compared with the prior year quarter.Catastrophe losseswere $59 million, or 5.2 points of the loss ratio in the quarter compared with $29 million, or 3.0 pointsofthelossratio,fortheprioryearquarter. Favorablenetprioryeardevelopmentimprovedthelossratioby0.5points inthequartercomparedwith1.8points of improvementintheprioryearquarter.
  • Gross written premiums, excluding third party captives grew 21% and net written premiums grew 17%forthesecondquarter of2023.

International


Results for the Three
Months EndedJune30


Results for the Six
MonthsEndedJune 30

($millions)

2023


2022



2023


2022

Grosswrittenpremiums

$ 421



$ 382




$ 819



$ 745


GWPchange (%yearover year)

10

%






10

%




Netwrittenpremiums

$ 359



$ 330




$ 630



$ 581


NWPchange (% yearoveryear)

9

%






8

%




Netearned premiums

$ 302



$ 269




$ 592



$ 533


NEPchange (%yearover year)

12

%






11

%




Underwritinggain

$ 22



$ 23




$ 31



$ 43


Lossratio excludingcatastrophesand development

57.9

%


58.5

%



57.7

%


58.6

%

Effectofcatastropheimpacts

3.1



2.8




2.9



2.0


Effectofdevelopment-relateditems



(1.8)




2.5



(1.0)


Lossratio

61.0

%


59.5

%



63.1

%


59.6

%

Expenseratio

31.2

%


32.1

%



31.5

%


32.4

%

Combinedratio

92.2

%


91.6

%



94.6

%


92.0

%

Combinedratioexcludingcatastrophesanddevelopment

89.1

%


90.6

%



89.2

%


91.0

%

  • The underlying combined ratio improved 1.5 points as compared with the prior year quarter. The expense ratio improved 0.9 points driven by net earned premium growth of 12% and lower acquisition costs. The underlying loss ratio improved 0.6 points as compared with the prior year quarter.
  • The combined ratio increased 0.6 points as compared with the prior year quarter.Catastrophe losseswere $9 million, or 3.1 points of the loss ratio in the quarter compared with $7 million, or 2.8 points ofthelossratio, fortheprior yearquarter.Therewasnonetprior yeardevelopmentinthecurrent quartercomparedwith1.8pointsoffavorable developmentimprovingthelossratio intheprioryearquarter.
  • Excluding currencyfluctuations,grosswritten premiumsgrew12%andnetwrittenpremiums grew10%forthesecond quarterof2023.

Life & Group


Results for the Three
Months EndedJune30


Results for the Six
MonthsEndedJune 30

($millions)

2023


2022(a)



2023


2022(a)

Netearned premiums

$ 113


$ 118



$ 228


$ 238

Claims,benefitsandexpenses

375


342



716


680

Netinvestmentincome

229


201



443


413

Coreloss

(20)


(9)



(23)


(4)


(a) As of January 1, 2023, the Ҵý adoptedLDTIusingthemodifiedretrospectivemethodappliedasofthetransitiondateofJanuary 1,2021.Prior period amountshavebeenadjustedto reflect application ofthenewguidance.

Excluding the impacts of long term care policy buyouts,yeartodate2023underwritingresults aregenerallyinline with expectations.

Corporate&Other


Results for the Three
Months EndedJune30


Results for the Six
MonthsEndedJune 30

($millions)

2023


2022



2023


2022

Insuranceclaims andpolicyholders'benefits

$ 29


$ 57



$ 22


$ 49

Interestexpense

30


28



58


56

Netinvestmentincome

14


4



24


5

Coreloss

(46)


(78)



(64)


(106)

Core loss decreased $32 million for the second quarter of 2023 as compared with the prior year quarterdriven by lower net prior year loss reserve development and higher net investment income.The currentquarter includes a $28 million after-tax charge related to unfavorable prior year development largelyassociatedwithlegacymasstortclaims comparedwitha$51million after-taxchargeinthesecondquarterof2022.

NetInvestmentIncome


Results for the Three
MonthsEndedJune 30


Results for the Six
MonthsEnded June 30


2023


2022



2023


2022

Fixedincome securitiesandother

$ 507


$ 447



$ 1,004


$ 887

Limitedpartnershipandcommonstock investments

68


(15)



96


(7)

Netinvestmentincome

$ 575


$ 432



$ 1,100


$ 880

Net investment income increased $143 million for the second quarter of 2023 as compared with the prior year quarter. The increase was driven by an $83 million increase in income from limited partnership and common stock investments and a $60 million increase in income from fixed income securities and other investments.

Stockholders'Equity

Stockholders' equity of $8.7 billion improved 2% from year-end 2022 primarily due to net income partially offset by dividends paid to stockholders.

BookvaluepershareexAOCI of $44.86 increased 5% from year-end 2022 adjusting for $2.04 of dividends per share.

As of June 30, 2023, statutory capital and surplus for the Combined Continental Casualty Companies was $10.5 billion.

AccountingStandardsUpdate

In August 2018, the FASB issued ASU 2018-12, Financial Services-Insurance (Topic 944): TargetedImprovements to the Accounting for Long-Duration Contracts (LDTI). The updated accounting guidance requires changes to the measurement and disclosure of long-duration contracts. For the Ҵý, this includes the run-off long term care business in the Life & Group segment. The Ҵý adopted the new guidance effective January 1, 2023, using the modified retrospective method applied as of the transition date of January 1, 2021. All prior period amounts have been adjusted to reflect application of the new guidance. While the requirements of the new guidance represent a material change from legacy accounting, the new guidance does not impact capital and surplus under statutory accounting practices, cash flows or the underlying economics of the business. Additional information regarding the Ҵý's adoption ofASU 2018-12 and the impact to historical financial results is contained in the Ҵý's Q12023 Financial Supplement, furnished on Form 8-K, on May 1, 2023 with the Securities and ExchangeCommission.

Aboutthe Ҵý

Ҵý is one of the largest U.S. commercial property and casualty insurance companies.Backed by more than 125 years ofexperience, Ҵý provides a broad range of standard and specialized insurance products and services for businesses andprofessionalsinthe U.S.,Canadaand Europe.Formoreinformation,please visitҴýat

Contact

Media:

Analysts:

JenniferVaupel,847-224-2464

RalitzaTodorova,312-822-3834

Conference Call and Webcast/Presentation Information

Aconferencecallforinvestorsandtheprofessionalinvestmentcommunitywillbeheldat8:00a.m.(CT)today.Ontheconferencecall will be Dino E. Robusto, Chairman and Chief Executive Officer of Ҵý Financial Corporation, Scott R. Lindquist, ExecutiveVice President and Chief Financial Officer of Ҵý Financial Corporation and other members of senior management. Participantscan access the call by dialing (844) 481-2830 (USA Toll Free) or +1 (412) 317-1850 (International). The call will also be broadcastlive on the internet and may be accessed from the Investor Relations page of the Ҵý website ().A presentationwillbeposted andavailableontheҴýwebsite thatwillprovide additionalinsightinto the results.

The call is available to the media, but questions will be restricted to investors and the professional investment community.Anonline replay will be available on Ҵý's website following the call. Financial supplement information related to the results is available on the investor relations pages of the Ҵýwebsite orbycontactinginvestor.relations@cna.com.

DefinitionofReported Segments

  • Specialty provides management and professional liability and other coverages through property and casualty products and services using a network of brokers, independent agencies and managing general underwriters.
  • Commercial works with a network of brokers and independent agents to market a broad range of property and casualty insurance products to all types of insureds targeting small business, construction, middle markets and other commercial customers.
  • International underwrites property and casualty coverages on a global basis through a branch operation in Canada, a European business consisting of insurance companies based in the U.K and Luxembourg and Hardy, our Lloyd's Syndicate.
  • Life & Group includes the individual and group run-off long term care businesses as well as structured settlement obligations not funded by annuities related to certain property and casualty claimants.
  • Corporate & Other primarily includes certain corporate expenses, including interest on corporate debt, and the results of certain property and casualty business in run-off, including Ҵý Re, asbestos and environmental pollution (A&EP), a legacy portfolio of excess workers' compensation (EWC) policies and certain legacy mass tort reserves.

Financial Measures

Management utilizes the following metrics in their evaluation of the Property & Casualty Operations.

These ratios are calculated using financial results prepared in accordance with accounting principles generally accepted in theUnited StatesofAmerica (GAAP).

  • Loss ratio is the percentage of net incurred claim and claim adjustment expenses to net earned premiums.
  • Underlying loss ratio represents the loss ratio excluding catastrophe losses and development-related items.
  • Expense ratio is the percentage of insurance underwriting and acquisition expenses, including the amortization of deferred acquisition costs, to net earned premiums.
  • Dividend ratio is the ratio of policyholders' dividends incurred to net earned premiums.
  • Combined ratio is the sum of the loss, expense and dividend ratios.
  • Underlying combined ratio is the sum of the underlying loss, expense and dividend ratios.

Renewal premium change represents the estimated change in average premium on policies that renew, including rate andexposurechanges.

Raterepresents the average change in price on policies that renew excluding exposure change. For certain products within Small Business, where quantifiable, rate includes the influence of new business as well.

Exposure represents the measure of risk used in the pricing of the insurance product.The change in exposure represents thechange inpremiumdollars onpolicies that renewasaresult of thechangeinriskofthepolicy.

Retention represents the percentage of premium dollars renewed, excluding rate and exposure changes, in comparison to theexpiringpremium dollars frompoliciesavailable to renew.

New business represents premiums from policies written with new customers and additional policies written with existingcustomers.

Gross written premiums ex. 3rd party captives represents gross written premiums excluding business which is ceded to thirdpartycaptives,including businessrelated tolarge warrantyprograms.

Development-relateditems representsnetprioryearlossreserveandpremiumdevelopment,andincludestheeffectsofinterestaccretionand changein allowanceforuncollectiblereinsuranceanddeductibleamounts.

Underwriting gain (loss) represents net earned premiums less total insurance expenses, which includes insurance claims andpolicyholders'benefits, amortizationof deferredacquisitioncostsandotherinsurancerelated expenses, pre-tax.

Underlying underwriting gain (loss) represents underwriting results excluding catastrophe losses and development-relateditems.

Statutorycapitalandsurplusrepresentstheexcessofaninsurancecompany'sadmittedassets overitsliabilities,includinglossreserves, as determined in accordance with statutory accounting practices.Statutory capital and surplus as of the current period is preliminary.

The Ҵý's investment portfolio is monitored by management through analysis of various factors including unrealized gainsandlossesonsecurities, portfoliodurationandexposure tomarketand credit risk.

Reconciliation ofGAAPMeasures toNon-GAAPMeasures

This press release also contains financial measures that are not in accordance with GAAP.Management utilizes these financialmeasures to monitor the Ҵý's insurance operations and investment portfolio.The Ҵý believes the presentation ofthese measures provides investors with a better understanding of the significant factors that comprise the Ҵý's operatingperformance.Reconciliationsofthesemeasures tothemostcomparableGAAPmeasuresfollow below.

Reconciliation ofNetIncome(Loss)toCoreIncome(Loss)

Core income (loss) is calculated by excluding from net income (loss) the after-tax effects of net investment gains or losses. The calculation of core income (loss) excludes net investment gains or losses because net investment gains or losses are generally driven by economic factors that are not necessarily reflective of our primary operations. Management monitors core income (loss) for each business segment to assess segment performance. Presentation of consolidated core income (loss) is deemed to be a non-GAAP financial measure.


Resultsfor theThree
Months EndedJune 30



ResultsfortheSix
Months EndedJune 30

($millions)

2023


2022(a)



2023


2022(a)

Netincome

$ 283


$ 190



$ 580


$ 485

Less:Netinvestment(losses)gains

(25)


(40)



(53)


(43)

Coreincome

$ 308


$ 230



$ 633


$ 528


(a)AsofJanuary1,2023,theҴý adoptedLDTI using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts have been adjusted to reflect application of the new guidance.

Reconciliation of Net Income (Loss) per Diluted Share to Core Income (Loss) per Diluted Share

Core income (loss) per diluted shareprovidesmanagementandinvestorswithavaluable measureoftheҴý'soperating performance for the same reasons applicable to its underlying measure, core income (loss). Core income (loss) per diluted shareis coreincome(loss)on aperdilutedshare basis.


Results for the Three
Months Ended June 30


ResultsfortheSix
Months EndedJune 30


2023


2022(a)


2023


2022(a)

Netincome perdilutedshare

$ 1.04


$ 0.69


$ 2.13


$ 1.78

Less:Netinvestment(losses)gains

(0.09)


(0.15)


(0.20)


(0.16)

Coreincome perdilutedshare

$ 1.13


$ 0.84


$ 2.33


$ 1.94


(a)AsofJanuary1,2023,theҴý adoptedLDTI using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts have been adjusted to reflect application of the new guidance.

Reconciliation of Book Value per Share to Book Value per Share Excluding AOCI

Book value per share excluding AOCI allows management and investors to analyze the amount of the Ҵý's net worth primarily attributable to the Ҵý's business operations. The Ҵý believes this measurement is useful as it reduces the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates.


June30,2023


December31,

2022(a)

Bookvalue pershare

$ 32.22


$ 31.55

Less:Pershareimpact ofAOCI

(12.64)


(13.28)

Bookvalue pershareexcludingAOCI

$ 44.86


$ 44.83


(a)AsofJanuary1,2023,theҴý adoptedLDTIusingthemodified retrospectivemethodapplied asofthetransitiondateofJanuary1,2021.Priorperiod amountshavebeenadjustedtoreflectapplicationofthe newguidance.

CalculationofReturn onEquityandCoreReturn onEquity

Corereturnonequity provides management and investors with a measure of how effectively the Ҵý is investing the portion of the Ҵý's net worth that is primarily attributable to its business operations.


Results for the Three Months
Ended June 30


Results for the Six Months
Ended June 30

($ millions)

2023



2022 (a)



2023



2022 (a)


Annualized net income

$ 1,132



$ 762



$ 1,160



$ 970


Average stockholders' equity including AOCI (b)

8,696



9,352



8,637



10,055


Return on equity

13.0

%


8.1

%


13.4

%


9.6

%

Annualized core income

$ 1,233



$ 924



$ 1,266



$ 1,058


Average stockholders' equity excluding AOCI (b)

12,063



12,122



12,148



12,316


Core return on equity

10.2

%


7.6

%


10.4

%


8.6

%



(a)

As of January 1, 2023, the Ҵý adoptedLDTI using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts have been adjusted to reflect application of the new guidance.



(b)

Average stockholders' equity is calculated using a simple average of the beginning and ending balances for the period.

Foradditional information, pleaserefer toҴý'smostrecent10-KonfilewiththeSecurities andExchangeCommission,aswellas the financial supplement,available at

Forward-Looking Statements

This press release includes statements that relate to anticipated future events (forward-looking statements) rather than actual present conditions or historical events. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include words such as "believes," "expects," "intends," "anticipates," "estimates" and similar expressions. Forward-looking statements, by their nature, are subject to a variety of inherent risks and uncertainties that could cause actual results to differ materially from the results projected. Many of these risks and uncertainties cannot be controlled by Ҵý. For a detailed description of these risks and uncertainties, please refer to Ҵý'sfilingswiththeSecuritiesandExchangeCommission,available at

Any forward-looking statements made in this press release are made by Ҵý as of the date of this press release.Further, Ҵýdoes not have any obligation to update or revise any forward-looking statement contained in this press release, even if Ҵý'sexpectations oranyrelatedevents, conditions orcircumstanceschange.

Anydescriptionsofcoverageunder Ҵýpoliciesorprogramsinthispress releaseareprovided forconvenienceonlyandarenotto be relied upon with respect to questions of coverage, exclusions or limitations.With regard to all such matters, the terms andprovisions of relevant insurance policies are primary and controlling.In addition, please note that all coverages may not beavailablein all states.

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