Equitable (EQH) 11 Feb 222021 Q4 Earnings call transcript

00:04 Good morning. My name is Brent, and I will be your conference operator today. At this time, I would like to welcome everyone to the Equitable Holdings Full-Year and Fourth Quarter Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question-and-answer session. is Isil pleasure Muderrisoglu. It call turn XX:XX to over Instructions] now to my today’s [Operator Please ahead. go

regarding XX:XX rules Thank Materials present information you. at like Holdings subject can full-year to Good and found today ir.equitableholdings.com. morning and and fourth be certain disclosure. some begin, to XXXX is welcome XX:XX quarter note Before forward-looking earnings I our that we call. on for regulations we call and today’s SEC website to would Equitable the of

Our may those in results differ materially expressed statements. or from forward-looking such indicated by

of presentation, I the portion in Relations prepared So, Chief I’d release, Mark Mark their that principles, may measures. also our is Safe Slide me like presentation to Equitable generally supplement. Financial language President non-GAAP certain GAAP remarks. like known be of Chief call call accepted of would the our Lane, financial XX:XX and of today’s to website found directly AllianceBernstein’s Dibadj, Pearson, to refer measures President Joining will slide Raju, you Investor X Financial; Ali XX:XX on earnings Harbor over to and and our definitions now Officer the are this our Nick for of be and accounting Financial Head discussing During XX:XX and measures comparable financial Chief on information. non-GAAP of turn these additional Strategy. related Reconciliation on as Officer not on measures Robin the to Executive Officer; Robin Holdings; we most and call, Equitable based for

Good joining morning, Isil. and everyone, Thank for today. thank our call XX:XX you you,

and planning, business the to meet asset need a for income retirement are exists management. that We protection,

affiliated to subsidiary asset these these our two past the AllianceBernstein. provide of we Holdings franchises, and our is The amplified. the premier have management Over have ability we advice retirement needs unique. of to Equitable distribution, We leading needs have XX:XX meet pandemic, been years

Our capital clients to realities proven and shifting the are equity strategy low well economic suited interest both operating of low Slide building and $X.X We a you were to year-over-year. has was XXXX $X.XX billion rising as businesses non-GAAP XX% on X, meeting be XX:XX can share, or amplified intensive needs sustainable shareholder and earnings see rates record managing up of our to to markets. values. year, per

$XXX of assets the management in operating earnings $X.XX non-GAAP four, XXXX management up to The per a $XXX sheet had businesses is in-flows tailwinds holdings, earnings also resulted net and growth in this operating year. under quarter $XX or core resulted robust. organic over asset market AB XX% For remains retirement of contributing and share. Strong million million were particularly our record. to strong XX:XX $XXX in of billion, with year balance which XX% billion an all-time going in XX:XX benefit combined prior

an of into legacy billion approximately an $X.X a XXXX. repurchases billion repurchase share quarter. have program returning return successfully ratio executed We our cash XXXX to in capital RBC at billion $XXX incremental the We company. of $X.X including holding shareholders, on our XXX% million and with $X.X board week, a reinsurance XXXX transaction, for associated repurchases VA share authorized and the our million of accelerated of program Earlier this $XXX XX:XX fourth

course X.X the As subject in billion coming in consistent market. return to an we to deliver deterioration expected no continue with significant capital the of year

industry. close LDTI XX:XX welcome economic industry to XXXX, and across will of accounting we context term economic in different is across model. the because further implementation ahead, Looking is it comparability our transparency bring in The our often the changes referenced

value impacts hedge; Firstly, important, about understand been LDTI. curve is can based investors is the needs and actual because this what on and to that the economic For We experience. know setting fair have means more using things: is XX:XX what forward that of you actual assumptions two reserves interest eager reserving secondly, us, I economic think rates

Our only us rates, for economic no to approach to accounting interest not aligned strong where proposition well changes, upcoming the the transition. our we bets make and reserves,

year-end, As the impact anticipate AOCI. $X If stands a within the mean it implement be XX:XX today, $XX.X would we value, less which of transition today to at than adjustment to billion would billion. book LDTI GAAP

that general milestone investors provide releasing part way our has report Equitable XXX a sustainability to we our for course, public good quarter. closer do XX% fourth $XXX but the need assets, been as years, culture for the coming company, a get July, adopt to a inequalities incredibly am achieved of principals XX:XX I show their billion all respective for further now few force inaugural than to of meet and the business implementation. the always we will needs been societies amplified address Lastly, details and is into in the responsible in past as In the and another to that months, as of XX:XX of Conducting We while factors process. ourselves significantly for AB’s in more of proud Equitable’s investment. ESG we investment help account of stakeholders pledge has the and As XX% $XX billion integrate of some UN’s of year-end, EQH totals years.

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business, in XX% assets retirement only transformation the of of legacy to our today. result our amounts VA retirement a As

subsidiary, approximately continue The multiple tremendous to our is certainty our progress businesses build in flows through for two shifted XX% entity. We we higher company. general operating not last growth. of drive the the our a out business AB’s only the Within high saw in-force launch productivity priorities rate record of our improves made income In billion on equity become $X.X the cash our XX:XX retirement cash remain XX:XX and away risk-adjusted X strengthens diversified in amounted efforts We alternative gross mix improved $XX XX:XX internal investment our annual retirement action, the billion, have from regulated our but AB also XX% to space. new to billion structured return Equitable restructuring. Financial between flows interest more non-insurance to operating synergies retirement QX $XX year. market. to account, have and of to businesses up strategies growing generated shifting companies. execute addition commitment leverage from Today, player dependency through the fast product. innovative Overall, XX:XX investment result, and sales and guarantees sales of protected continue wider SCS the from we living quarter capital we earnings another a to from benefit as further sales, to Number We this

of and XX:XX of mover XX in management $XX in XX% net Equitable income Xx billion strong recognition alternatives billion private past an a XX:XX Growing brand performance year future and out as rate announced the inflows our has AB Asian all expansion. to seed a investment revenue this to with represent AllianceBernstein wealth. billion area be subsidiary assets This the Our a XX% of see looking Equitable. and generated and across a per fee Asia now future, Today, has a proven its strategy. XX% X% particular AUM with fees. XX% early equity investment We strong this investment of underlying is AB growth. our asset attracting was year. capabilities. looking organic outperforming an of resulted AB the and of markets. retail, a track of fixed a within growth $XX effect three to investment record has in Importantly building strong differentiation and channels, institutional, Advisors distribution initial we XX:XX annualized of businesses has of We'll a and from cornerstone commitment day. multiplier X%

the Equitable Firstly, growth within Financial. are they of source major revenue

XX:XX XX% the this our towards combined In business Within important under efforts our capital-light dealer premiums they since highlight XX:XX an continues retirement, force are dealer Slide things: increase with mix XXXX, in favorable by asset over billion, Advisors, billion] contributes growth X, businesses. been on time, VA retirement on mix. $XX to and we've decreased XXX XX% markets. and retirement the XX% XX% May in managers We changed the shifting towards substantially by key have the delivering Equitable the solutions to to and like the of past gross billion has I At business less as full-year journey be briefly strong XX:XX has [ph]. advice $XXX sales affiliated of our our advice We’ve a capital-light our broker transform would now benefiting improvement Our year. wealth to from advice business, XX:XX business to driven as flows, we've and valuable grown [$XX core our sales year, than management. Our with now same two to inflows. prior well XX, billion. to legacy $XX business XX% broker grown done Secondly, to On assets over of IPO clients

XX:XX or grown a now increase significantly benefit and is fee Finally, total a managed AB Advisors XX% holistic are At total revenue. since with are growing has AllianceBernstein, to for high annuities. AB plan. guarantee meeting financial under grown the billion AUM XX:XX XX% longer differentiated dependent exposed needs Equitable IPO and has no wealth We assets management. in to based living nearly clients’ of retirement through accumulation XX% Equitable $XXX AUM

our for improve and approach Key see the we Robin XX,XXX metabolism a are organization portfolios an more framework remote in XX:XX diversity, purpose, agile our practices. At will design stakeholder of adopt the is also assets which markets. building following our is working, mentioned since trust, implementation recently industry everything upcoming in address report to up to purpose. And including thinking over we website. X. with as pleased have in invested framework this belief this ESG the the There strong a were organic and was lot a with through report, XX:XX Turning supporting inflows seeing growth in billion already now momentum, that We to Slide growth the I've be of in strong can ESG net accessed investment under in are profits decisions, result, in XX.X equity XX% favorable factors this robust and though year. block, on with and are our AB hours raise bridge upholding to Equitable training As time which representation. Robin? can release with advice, inclusion our the in clients LDTI inclusion all people Underpinning our inside using we our page. to have equity, XX% to we up report. of XX:XX we XX:XX sustainability IPO, critical advocating the

XX:XX Mark. Thank you,

We GAAP the of are are LDTI how we for and comparability I and very like upcoming will changes On bring supportive would into X, for beat we insights economics XX:XX additional closer to the transparency to our industry. Slide value adoption. will reform, which and well-positioned provide accounting how improve fair

Before I do to highlight. points key that, there

expect current that shareholder AOCI we of also year-end be was balance, which impact equity year-end. the our to impact than account the flow conditions. First, AOCI, taking expect as lower primarily will through into XX:XX billion will We market X

through factors, which And I are competitive interest provide estimates and liabilities. year-end to approach assumptions. to of and credit Equitable’s the early or the enhanced managing in disclosure, primarily summer LDTI additional our to economic economic attributable value to we risk spreads will position their NPR. will the Second, the our approach standing impact company's conservative uneconomic Under XX:XX non-performance details. strong some actuarial through third, through aligns now LDTI in GAAP provide fair today, due accounting XX:XX go the an support Our market. business, drivers setting well intend own the assumptions rate our

example, reserves, hold For is credit own the counter to company's decreases, as and is required the intuitive. company vice more spread which versa,

to shifting over sensitivity now NPR this LDTI non-economic in based potential and reflected our spreads AOCI. the transition is between date AOCI, If market net limited conditions. time, increased NPR movement impact earnings, While Turning credit to transition it income. transition the date, gains anticipate is credit would to some of XX:XX by there a currently the improved the have in impact We XXXX. retained now ship and year-end net income seen on spreads XX:XX we before from

forward Equitable of the for our few which from in our increasing how favorable the compared two-thirds, value to positions While industry conservative us SOP those reserves assumption account rate currently for is is change and impact that GMDB, the upcoming year-end. our This GMIB near was reserves curve, X.XX% offsetting XX:XX had GAAP mitigated X.X% interest to largely offset The due fair items. first of low accounting well rate of demonstrates interest a as assumptions peers. to

The Our spreads. second is our to the the future to current discount proposed LDTI discount discount reserve impact discount takes SOP curve, minimal rate. LDTI the rates aligning a credit into from account as rate, and similar is forward XX:XX

the backing is the hedging earnings reflected impact the that economic this We peers. the our when and of value economics. earnings. record in no cash the be industry book strategy GAAP well. Finally, year will less will the mentioned, in to including to the for a economic to management to expect excluding expect where and and confident economic current XX:XX business. good accounting Now, impact meaningful between taking [indiscernible], our LDTI XX:XX our between liability better in our line total risk asymmetry for transition impact understand will let further fair economic income the really is validation I excited to exceptionally between XX:XX given that and disclosures movement to transparency Slide and for full-year results illustrate in with a additional be As hedging the help our X. a to non-GAAP Under be investors we reduced operating mismatch retained sharing net majority are and retirement may GAAP XX:XX forward an will different economic for such our more had we GAAP of early MTR XX:XX AOCI approach business the we are more liabilities. performing look AOCI, regardless. We than Under turn about future rules, how of but approach be I'm at Equitable detail expect investing managing the significantly to strength AOCI assumptions balance items this me companies. they and Equitable’s a our LDTI, hedging a and change We on our our summer, our accounting value, creates asset flows,

AUM billion mix supported earnings record billion operating These and our this to in X.X life Adjusting a Mark As billion year, items of net X.X operating earnings X.X addition, items the billion. to to mentioned, strong businesses. non-recuring inflows equity we segment, results shift to approximately of continued non-GAAP our year. reported up XX:XX earnings for capital full-year in reflect year. XX growth billion less markets were XXX reported the our favorable Turning notable this individual retirement by

increased of the VA the year-over-year. transactions, Excluding earnings have impact legacy

capital-light the leadership XX:XX significantly For with recall, we XX:XX another this our billion, sales since shareholders were sustain VA we you prior billion billion finished our in of X imports. the we SCS mix over offerings XX as the As the close for haven't strong, and and transaction year, monetized of record legacy record de-risked fourth level our up Further X.X supporting drive XX% the strong The is performance full-year, which market. successful year first RILA the team in a with the sales quarter. setting premiums XXXX. position year continued of

We renewal AB advisory markets. with XX:XX asset We In XX% the enhance earnings in leveraging and of first premiums, technology Holdings, X.X X% And Equitable XXXX earnings year-over-year operating capital-light to of the advice for to has growth XXX this our to Group with by premiums, fall. year-over-year. said, client continue half be respectively. up from help with approach year-over-year educators. continues this the benefit as million, growth their up gross districts differentiative ensure year our XX% X,XXX up dreams. economically solutions to achieve to to million, XXX of retirement be That equity over and schools innovate less school to Retirement, our reopened a XX:XX In our sound worksite to engagement. continue were see of reported we XXX,XXX the We strong up continued benefit driver billion items XX:XX management. see clients in-demand continue benefit and to model access operating hybrid supported XX% in notable began premiums second we of over as both and year

capital-light Asia to is AB fixed drive across that inflows organic delivering improved Importantly, products addition, of In now capital-light of of momentum from the earnings to year. quarter, continues over market. million in-line With XX:XX on performance [BUL] outperforming mix accrual which year-over-year and quarter per approximately which for positive XXX the income over impact approximately less the support we up to retirement year past is were of COVID fourth assets results with benefited continue one-third fee in more of to positive in And active Since institutional, net towards Our only five guidance. litigation as while compared segment one-time XX% items billion drove over increase also in solutions, pivot higher income, over over the growth represents attributable benchmarks treatment have profile of investment leadership accumulation to continued Adjusting the in respectively a year. management XXX in XX% more the in accounting right XX:XX AUM per XX:XX our continued inflows with XXXX continued supported clients. AUM strong to XX%, and hand quarter, equity to results growth, earnings XX% operating liability year, notable we AB XX:XX by We the net in side the a finally, XX% the on share equities, as and to today. non-economic we channels. year success XXX both our million asset fair the base basis. capital-light a to this in to revenue quarter. the protection private million, Let highlighted AB’s notable me income, quarter product. revenue to fourth our and in premiums two-thirds net [ph] XX:XX and earnings our year quarter performance fixed a in GAAP $X.XX the business turn non-GAAP growth, businesses. now performance operating which XXX and position benchmark first X. by of remains shifting improving XX% that or premium hedging share, with total XX% of net we XX.X consolidated compared this AB’s in Turning Slide retail, And were Page with a a year. their XX% XX:XX higher wealth our periods, by of their see to mortality partially XX% performed of to strategic million a offset XXXX. expected outperforming XX% reported testament The strong income adverse from hedge effectiveness the In XX:XX X, longer-term on for prior and of with fees, quarter, first past XX% GAAP program. this up have IPO, value up to

AUM LDTI implementation market we record just strong to in our few of of billion, flows net discussed asymmetry. accounting the will asset led positive equity of by by of was which I and billion, much look ago, quarter minutes a a business. management XXX fourth XX:XX this supported As X eliminate XXXX, forward

our to us alternative insurance holders. the days] from delivering growth generating policy good capital billion multiple account a progress committed support to in and while deploy enables [productivity yields build to risk-adjusted XX:XX This this high at business. million in continue for XX year. XX of invested strategic million AB, we AB general [ph] have and subsidiary Equitable’s favorable And synergy yield our enhancements made priority We against in XX business

potential about excited XX. the for alternative the Turning Slide AB’s We XX:XX in to future. business are

closing Throughout XXX us June that with cash above billion shareholders million X.X quarter. to repurchases capital quarter. by and to last and XXXX returned VA the increment closed at positions successfully million our occurring liquidity of respective return company, enabled reinsurance year million, year, of in on fourth holding our XXX% X.X year, which into capital of transaction of strong XXXX supported we targets. returned management legacy We in strong RBC XXX billion a deliver XX:XX well the of we the ratio fourth an was and of accelerated XXX with the a program. Our their each the This

non-GAAP towards business subsidiary giving coming expect return X.X flows, us has increased Our us target, holding company to repurchase XX:XX billion from we support Further, billion now our to successful to cash under it strategy. to approximately returns, our management In our conditions. with up back XXXX, of strong entities. a a in capital-light and normal our model authorization financial internal on allows in to we continue stated dividends Mark. shift our restructuring XX% X.X capital confidence pass dividends position non-regulated I'll unregulated market as lead board earnings execute capital delivering XX:XX to consistent to from XX% our operating XX% capital

XX:XX you, Thank Robin.

some from results. fourth quarter highlights questions, your would full-year to reiterate to like and turn our I we Before

capital First, societal and strong services products markets. return equity model, enables results, for another position to XX:XX our we delivered consistently and asset need advice, us by year drives unique the of our and our Second, shareholders. retirement, strong pairing to supported business management and capital record

realities, framework us result, we economic and our for our implementation. positions to the which be is practices force XX:XX by Aided your a transition billion for robust deploy we strong approach, new in to lastly, total that, with economic to LDTI targeted value a open billion being return for year-end. aligned Third, $X.X well $X will continue like our to as is expect Equitable be X.X committed questions. XX:XX line advocate impact of for capital to a industry fair this a As repurchases announce to year. billion And I'd to of XXXX economic AOCI, are for LDTI authorization we good, within pleased and

from Your of the [Operator Elyse line question comes XX:XX Wells with Greenspan Instructions] Fargo. first

line Your open. is

XX:XX On just depending you it would the the between think returns, billion authorization should cadence capital be year, the just your Thank we the active upon share X.X price? and more you. how for us about gave quarters

XX:XX Good Elyse. question. morning, for Thank you the

capital As so you recall, we that accelerated allows be us XX% the to XX% to year allows flexibility repurchase our under XXXX. gives we [hundred returned conditions. of deviations the us X.X that consistently us the included market billion program normal and that well. XXXX the counting billion to [ph] board price execute future that see share adjust any X.X And return million] in Expect against market as to the authorization the we're if year, us share in to authorization to towards board approved and throughout this continue

that you plus would that then XX% relative as to forward the at target, X.XX] [X.X to that you And you on within XX:XX thinking XX% XX%, [ph] to look the about XX% pull putting [indiscernible] correct?

That's XX:XX right.

then there mortality, Okay. with of elevated terms just you solutions, XX:XX this with you million in think could protection some on XX basis. quarter more an see And you have you running been quarter. – of had earnings said, around with last guys And I below were adjusted

mortality period? earnings given the at trajectory for we should in how about elevated a think that probably lease protection solutions we're just bit little just for longer So,

Sure. XX:XX

the mortality a alternative the normalized benefit, volatility The productivity the from [ph] what XX mortality and debt you the million Difficulty] the down rebounding] benefiting of that business saddened years. That's the the increased XX around as said COVID elevated quarter. evolves. [GA if earnings the in a a we're ran With last and that COVID debts. to that guidance to the guidance, basis, we've look [Technical expect quarter. million, know we result you on million related we about XX XX or U.S. In continued we by quarter, normalized up XX:XX excluding million done related So, XX:XX continued throughout for

color. for Thanks Okay. XX:XX

Your is KBW. the next with Ryan of question line from Krueger

is line Your open.

ask good be comment Difficulty] Hi, for LDTI any it the operating XX:XX GAAP thing I [Technical give Thanks Can on earnings? for impacts. there? and more I'll guess, morning. impact how [indiscernible] impact one may potential the you greedy

XX:XX Sure, Ryan.

I first me earlier. by emphasizing Let start mentioned what

some through the Our have well to balance approach across for other of fundamentals business the the continue we our fair model. operating earnings approach wait a of as limited business – impact our the with economic on expect setting strong it will The value approach based have EQH. to under in assumptions fair to of details economic we you and to earnings the on LDTI, business our managing LDTI, us and economic grow XX:XX value till allows the ongoing all to transition this our to and lines our aligns see

can the remaining Got then XX:XX you it. And XXXX? and by offset end the mitigate to an Thanks. you that could think if you get give [indiscernible] impact, update on your of efforts

XX:XX Sure.

basis cash took and we where the x] X.X and will to unregulated reinsurance in primitive unlock to accretive recall, which redundant economic continue So reinsurance the flows are X XX:XX that be by billion [indiscernible] company completed be drive cash forward the during practice the So, the from in it XX% closed restructuring, billion regulator, we allowed going started of insurance an billion flexibility year. billion and the flow is as to over [triple That reserves action of years. to internal on about value will they value external decreasing going and several if forward. us gives next the the opportunities of It you transaction, shareholders. December, and significant explore to time us just phased remaining receiving [ph] of X

adamant be we continue table the that to to as year about the continue goes and and on targeting all address expect are by. We pursuing it to options

XX:XX Thank you.

question from next with Your Gallagher is XX:XX Tom Evercore.

Your is open. line

XX:XX Good morning.

guess, back go haven't you any taken a things what generation to I comment period and know non-insurance things for, second I out, dividends can if organic CX to the and movement – and that but [Technical capital if estimated I happened you're Rob, you been question, First going of on, and quarter, but Difficulty] like time? there's on lot of over curious other insurance both

Sure. XX:XX

generation from and statutory strong There that So, organic very change things a are capital a the few basis. again, fundamentals during are business year.

As you recall, as company. I a Difficulty] just mentioned [Technical holding to

you see [Technical the year-end. So, an the as perspective [Technical continue impact resolved. an should RBC in XX still unregulated cash generation an making rest bring shift RBC to translate the holding XXX exclude and in company, charges total Difficulty] insurance company. But accounting Difficulty] to then to [Technical increase XX:XX of point reform X.X about to Difficulty] see that to up the an to cash our to the about company. basis and on if general flows posted the is exclude we no the as that strong in annual XXX did flow the had capital holding AllianceBernstein CX billion that we a during million mortality, year, of From and It

is XX:XX [Technical Difficulty] Got helpful. What it. your That's

XX:XX it's the and be call, [Technical our As all subsidiaries, expect I mentioned Difficulty]. in billion of the going across X.X we to

it. Got XX:XX

that will clear? how you million year-end stat, be XXX over So, allowable dividends still based not think do the but on normal or is

X.X XXX few total a as number [Technical XX:XX That's million Difficulty] weeks In the billion. expect. we'll Difficulty] what I that have [Technical bringing

the you impact XX:XX Got Difficulty] of it could, implementation be be you one book last go from that were sensitize interest meaningful? you I much do if And I to what levels one year-end but XXXX to implement [Technical initial or using today? difference value just all, at will it use period make mentioned year-end could the X you was it mark mentioned, if than would Difficulty]? XXXX, down, the so, if you the LDTI you that a then, [Technical rate if And when initial you. from market when less we XXXX assume you that rate would billion,

XX:XX Sure.

So, good Tom, LDTI again, value. the it's about thing fair

we probably the three year-end, to of sheet. at balance three to credit equities, benefit where billion what moves less the today, specific and interest biggest So of rate and sensitive value X we the it's as lower the fair said AOCI the impact industry. our spreads. that's be we've that that's we and are than sensitivities, – elements. period. number point sensitive but hedge The is sit to transition, It we XX:XX to it of across it's where as it that had balance, rates, year-end, of those is it Those that Overall, will

we'll numbers updates in continue give those always They're and offset the the balance have Keep be we to we year believe, So, business. as liability mind; the within XX:XX progresses. to gains that AOCI potentialize that derivative move. may going

great. Okay, XX:XX Thanks.

question next Andrew is Credit Your Suisse. with XX:XX from Kligerman

Your open. line is

good XX:XX morning. Hey

could think or new SCS the product you maybe stands buffer quarter in this out that's competition another growth, of this you if for most some XX% in just color current the little is up So, plugged individual sales year-over-year. retirement, given could, there was a terms the I feature give incredible Wondering robust driving growth? SCS volumes, outstanding that's that behind distribution

XX:XX Thanks question. Andrew the for

to here, let’s you and little heads our have all We’ll pass Robin today Nick. a it commercial rest up Lane bit Nick of of We he lines. give

Great. Mark. XX:XX Thanks

know our are strong, and positive distribution strong well for you beginning First, sustaining third-party differentiated as results with Equitable year, another SCS, from that? is partnerships? the Advisors, consistent our relationships. both quarter. and million core the as XXX up there what been for as X.X XX% elevating you the First billion record is We've Sales mentioned position,

to that [ph]. as such functionalities As we in new space past, relative the in innovate [to highlighted to we direction] continue

we're position consumers So, will to these maintain markets. that our help confident we going forward volatile continue navigate and

more a you give functionalities mentioned that? could XX:XX You on new direction, dual color such as little

Sure. relative perception XX:XX clients the their enhancement to markets. the address segment to of Dual is direction an the can

we you on as are been from and provide perfectly and our a and leader in. ALM feedback upside matches but segments these clients potential new protection, upside getting all with advisors what to we've downside protection, looking So, know, they're invest

XX:XX given [ph], XXX? legacy, looking in talking remaining at are product with you its housed level of the maybe New the with XX% of the what VA in very interest move did for Are it? [Reg legacy XXX business on VA, are legacy block potential, there for you what Ask solve the you solutions areas, it and XXX] look you to Is understand York? for looking as what's And working retirement you areas different is areas solutions? at possible individual potential only that to Reg to this

Andrew. Sure, XX:XX

if to economically to further drive as way to started all other in a it it VA reserves, redundant there we we'll everything we think look, well, across opportunities transaction. I opportunities for being execute the the is continue that, can across always products table shareholders. we're but XX:XX the relative That's where are XXX is, the AUM external accretive lines internal and with to needs accretion have there but that are the about will If economically address don't think we forth accretive gains economic that on address why to but XX% looking book. at an We transaction. as certainly reinsurance to be have reduce legacy just

Yeah, I XX:XX accretives. Thanks. like

question with XX:XX comes Barclays. from Your of next the Tracy Benguigui line

Your line is open.

you. morning. XX:XX Good Thank

Sorry. Lost little connection a the bit.

Bear me. on. with Okay. Hold

XX:XX clear, Tracy. You're through coming

XX:XX Okay. Yes.

perhaps and, of [indiscernible] So these to are help curious offering talked in competitors the But or in I’m buyout proportion economics your way of ones your efforts on others one policy thoughts can past, of [indiscernible] that producing the if expensive. holders show appetite capital reserves? about the program, less you annuity holder payments Reg on redundancy to XXX reduce I they business intensive could accelerate any heard if

Tracy. Sure, XX:XX

that were we majority potential over that that a that buyout here along of Venerable accretion of as back and years ago us we're annuity external utilized We've that index utilized the funds. AUM know, passive to playbook transaction. You actions one Those focused policies we were already de-risking XXXX. de-risking been and key So, XX:XX moving with legacy deployed at to successful first in de-risking internal and for XX now for as executed really levers drive really that opportunities shareholders. can reinsurance on had the the led legacy

we've or think the years. over programs ten buyback I had XX:XX last three

successful now. moved at reinsurance acted on it's We're been bit we’re on. we've other aware but So, looking something we've in of, for us, a It's ways to de-risk.

it's there's XX:XX the XQ the do your has losses pass the on I'm [indiscernible] wondering your been to seen going you wanted little higher any of upon the individual versus if end into asked range? maybe longevity in the with of If you from is age already, range. a this running bottom a anything share, a that COVID to to shift offset Great. quarter, retirement? received also XQ. you more Thank And what could a bias you. touch are benefit losses, just bit if if population, you older cohort, we've bit but little a particularly, I know now

of that products our shows with XX:XX age to in offer forward. that for the the Again, the you comment saw the you earlier, we the many do middle going Sure. as people many needs so and and for it emphasize, are I just some full-year, the which see mortality as we we'd protection the exclude we pandemic debt market and policies, [ph] to I by we be we want our was fact in but where COVID quarter, that mentioned guidance impacts XX:XX older to fourth the older U.S. we interact have quarter third are American but that's Holdings that quarter, also saddened Equitable clients to providing have to to age] elevated did that have, to if versus that expect in the we In [big provided exposure benefit of consumers. still

are maybe see the on you of offset, Okay. then XX:XX And that? longevity any

not did We quarter. the in XX:XX

you. Thank XX:XX

with question XX:XX Scott line comes from Your next Goldman Sachs. Alex the of

open. is line Your

morning. XX:XX Good

question had reinsurance market. on the is flow First I

and you as made some about increase the third comments potential view I'd I like do potential view deals. interested new think popping there some lever your and how to already on conversion? a just parties seems in block that up you flow there's cash reinsurance it market be using

you, Sure. XX:XX Thank Alex.

Nick as very that mentioned know, efficient, and and today the all for it generate good are products shareholders. earlier, value write economic – capitalized, we You

essentially and products levers, So, on because that some in write an our that economically current one of as we have think matched. we when someone about The are value assumptions them are of shareholders that found, experience we ALM we benefit flow to their we'd opportunity the is based else. to for passing shareholders XX:XX reinsurance consider today be

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so, believe fully value that for we And want they and products we the today retain that to in shareholders. our in generate we those write the

we I guess, a and XXXX? move capital us specifically it. that's see there help a and variable wage of Got And for were inflation, on Thanks. just standpoint, benefit through follow-up, companies the you just should some annuity if I rates but if as in generally, obvious expect thinking to can and think more I XX:XX from higher, to anything know think expenses, about inflation pressure an

it's Mark. Alex, – two Yes, things. obviously Thanks XX:XX we

Firstly, to to and we’re our it inflation. really productivity focus will Hasn't watching any making expenses be XXXX, we sure up on improvements that but of identify hit offset the can end closely. and us alert

you explained, this that Alex I we've So, got and has some to offer, to SCS as help know and the assets, products Nick about just talk that look think like all-weather offers attracted the products. real can consumers that of and things consumers. in be though, direction can on AB of the the types products ultimate we thing the of dual you to if XX:XX internally say right at is other of some

we at it ways. three So, look

share sheet with balance them we we’re XX:XX say, comes, our [indiscernible]. first, if us you economically making sound secondly, as products productivity As help then sure other to clients well. thirdly it inflation on can per And and and for offset helping what

So, that's of how think inflation. we

XX:XX Thanks.

XX:XX J.P. from with Your next of line Jimmy question the Bhullar is Morgan.

Your line is open.

a I couple questions. had morning. Good of XX:XX

any settlement increase guess do of any and how pay the the retirement First, disclosure, SEC any of this? sort on to but your on impacts that going competitors either from fine on else, you impact that something expect whether but then ongoing fee you I see with greater disclosure you're this leads business, or ongoing on business or a comments maybe you pressure to – group

Mark. it's incorporated Jimmy, that industry Thanks wide investigation. SEC Yes, been on with XX:XX we've

been that's a on know, little you As here. for while

their us And on be Obviously, our as and around if SEC to would on we fees we course, statement. this it it accounts fully I agree quarterly proud really we're than perspective. as end we our teachers XX:XX charges If we in cover? can. advice. teachers. know it The of receive like possibly more principle think as you retirement transparent what to fee the in be It disclosed as as disclosure the don't you XX% go. you settlement peer we service the buy we we of of that as up are does say, should who settlement companies the at our is the into And get our we one. offer XX:XX with in of account give, income, some very our like advice we covers and reached Look, well look that aware advice clearer and teaches also clear have, on you those statements

a to teachers. really there’s So really, benefit

if of solutions. addition, course, the teachers safe do harbor investment We loan getting gets forgiveness. help inside them In help them to market right have the into funds, funds They funds, with guaranteed their too we with rocky. access

Jimmy, justify can this fees [indiscernible] are at look we very confident we way and our teachers. the think we we benefits I So, We see the do. that do

terms in product of And you and general, are some lot that a out with more the products as SEC then obviously features on there's was, seeing of crowded on being a other they're market well? companies the than you just offering be in rational it or the so lot conditions, that of a market – and similar buffer benefits the them come but are and is aggressive Okay. companies XX:XX terms, have other annuity

this is pricing seeing rational Nick. Great, XX:XX there. we're Currently out

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the anybody copy And and remember, product, Advisors agreements but Equitable our distribution we XX:XX have. they can't copy through affiliated can our that third-party you Jim

are that’s differentiator us So, the and in what makes market. that's win

XX:XX Thank you.

of Jefferies. the from with line Kamath XX:XX question Your final Suneet comes

open. is line Your

that that make of to Thanks. the there, wanted saying of of block VA you maybe earnings? Is I'm earnings that XX:XX I right. on about Slide XX% just to Great. total a pie legacy third ballpark? individual company start this retirement kind X Are basically sure chart is the lower reading in

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to the right that's it right look way probably So, at now.

anyone handle been Okay, guess And the Robin, is to early how I about think profile on is about got this you're going like people individual summary, us biggest Is always Because that's disclosure, think it a new sounds to else excited I on leading risk in an XX:XX lot sentence I just that, me, your guess shed towards? a people heard kind valuation that it. a source better life of like that going provide to the the just same of business? get what when of upside if retirement the your the I this use haven't your in of block. company you're and is words the in view more LDTI

Yes. XX:XX

that's right. think I

those can argue basis, pricing, We we interest a on particularly being XX:XX but rates, to to the current two two look, should should we one it needs but Is decide I capital take, their to think we put should that not into And sentence, price, number be argue, one, issues change teams why that it you strongly be would to think hidden think that's every management but people less by XX:XX hedged accounting earlier. It insurance question they real accounting have have they companies back properly. rational that we secondly, rationally. say disclosed is to pricing? there's to and have company shouldn't We Of don’t. high disclosed reversion It's you liabilities go very Excitement course, to economic would who wrong. want there Jimmy’s than [indiscernible] is use words the that pricing be system. the are normally risk where accounting where Suneet. want but up book as can such.

leads or are of about what's us we We disclosure make That's it. is best you informed excited saying way, we're saying so can that are choice. probably the but should why and The economically recognition a only not to way investors happening. better comparability it the disclose an

maybe sneak in one And more Got it. real quick. Okay. XX:XX I’ll

segment, really the management Just growth or the organic but on we account the growth. we growth, can't can value AUA see see wealth

sense and maybe how you organic the give can in maybe So, the just that growth looks over business past tracked years? us what few a of it's

We're the question. segment. very we’re with seeing Wealth the the Management for Thanks progress Great. pleased XX:XX

As you all now XXX we [saw [XXX%]] true] we're [ph]. at with to our and X XX we highlighted billion as ranges of gross had XXXX, target sales, billion expressed VA segment meaningful In AUA originally disclosures, aspirations billion. we've these enhanced about got when and the

Thanks. I'll Alright. XX:XX follow-up.

call. thank XX:XX There today's are gentlemen, no further participation. this you Ladies This questions time. conference concludes and for your at

You now disconnect. may