The RBC ratio increased to 490%, reflecting a strong capital position, with management noting statutory restrictions limit the ability to deploy excess capital.
The company is evaluating options for capital deployment, including buybacks and dividends, to optimize shareholder returns while maintaining a conservative risk profile.
Management emphasized the importance of a strong RBC ratio for supporting growth and maintaining client and partner confidence, with ongoing assessments of long-term capital strategy.
Management is reevaluating their portfolio composition in light of the upcoming Worldpay acquisition, considering assets that may no longer align with the new strategic focus.
The company has already exited or announced transactions to divest over $550 million of revenue, aligning with prior plans but now influenced by the Worldpay deal.
There is an emphasis on using proceeds from potential additional divestitures to return capital to shareholders, maintaining leverage neutrality.
The reevaluation includes assessing vertical market exposure and the potential for further asset monetization to optimize the business portfolio.
Management indicated that some decisions made before the acquisition are being revisited to better fit the combined company's long-term strategy.
The company aims to accelerate capital returns and streamline its assets to support the integration and growth post-Worldpay.
Progress and Timing of the Assured Partners Acquisition
The company has completed responding to the DOJ's second request and continues engagement, with an expectation to close the transaction in Q3.
Some work streams on integration were suspended but are now being reinitiated, with management confident in their readiness to proceed.
The delay in closing is not expected to impact the initial accretive nature of the deal, and the company anticipates benefits from new geographies and client bases.
Dafinchi