Equitable (EQH) 14 May 222022 Q1 Earnings call transcript

Good morning. My name is Chantal, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Equitable Holdings First Quarter 2022 Results Conference Call.

As a reminder, today's conference call is being recorded. [Operator Instructions] Isil Muderrisoglu, Head of Investor Relations.

conference. your begin may You

Thank you. Quarter can Equitable First welcome found morning, Earnings Call. and ir.equitableholdings.com. XXXX at call our to Materials on Holdings website Good for be today's

present to begin, we some information and and SEC I to like regulations today Before note regarding forward-looking is disclosure. would of that the certain rules subject we

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

to additional So of the to I'd you safe X for refer on our language presentation information. harbor Slide like

on our me Mark President President Officer; Joining Controller Bill call today's Pearson, Officer, Chief Equitable Lane, Financial and and and is of Officer Accounting Siemers, Holdings; Chief Chief AllianceBernstein's of Nick Chief Executive Equitable Financial; Robin Interim Raju, Financial Officer.

be earnings portion discussing based are be definitions would to GAAP may Investor also over website, turn directly measures remarks. supplement. Robin During measures these accounting Reconciliations principles, their the slide most to related now we prepared and certain release, on as accepted in I like for measures this not non-GAAP measures. call Relations non-GAAP comparable financial and known our of of will and that generally presentation Mark found the financial on to call, the our

morning, our Thank joining Thank you, Isil, and good today. call everyone. you for

under at interest On million non-GAAP and year-over-year, rising $X.XX businesses cash share, flow Robert over the and the of backdrop free Holdings against operating results earnings assets Our financial Slide results X% generated net EQT for of management. X% $XXX high-level handing retirement, inflationary in I X, a Equitable inflows will first the post up highlight a a positive in pressures resiliency advice strong quarter asset look detailed quarter. of provide increase to of or range reflecting per continues the generation. overview our before management and broad markets, to turbulent rates,

of confronting AB enabled growing advise AB our future flows, we of retirement Venerable those IPO. earnings nearly quarters an management, quarter in last demand claims exceptional earnings X/X even for block first reflected items of Adjusting increased comparable $XX June retirement pandemic, policies. year-over-year, and the greater who non-GAAP per uncertainty. a our the the our reminder, businesses, asset this basis. the death operating are our and protect We to flows to year-over-year though per from our diverse on address still share, excess reinsured net legacy realizing to straight positive net earnings the X% his in $X.XX quarter, XXXX share and to we Seth As reinsured by positioned the XX% team. showing well a onetime impressive With quarter, quarter. up was since Americans and financial relating of net flows highest quarter net year-over-year and flows remain adjusted added fee economic principally a XX.X%, both post were of X positive billion rate an another with in in had margin increase ongoing to of

equity recent is And quarter. With in the MorningStar XX% it value seen XX% encouraging dramatic versus period. our have peers, see benchmarks the outperforming style the in of of shift their outperformed products we quarters, our over X-year to assets

free of shown up approximately flow free across our $X.X flows ability track cash to in since variety to period generated to XX%. approximately XXXX. a are capital COVID in excess we generating for same: we've dividend the of generate and businesses, our Furthermore, our capitalization, a Based remains XX% is IPO the an management competitive capital market to cash today's through a through fair stock market-leading balance in sheet, strategy pay billion invest XXXX, on apply buybacks. Our market values yield shareholders economic on Cash return scenarios.

higher that of gave $X flows. have have we billion update with transition year-end the This no X.XX% In increase. interest impact than levels, of AOCI our positive value at is balance changes. in assumption risen we've been long-term the April, LDTI and fact, book first to our estimate an using as LDTI neutral. in also long-term to actual stakeholders. accounting interest February, all LDTI And to We our market that value GAAP value for the end the At quarter XXXX we cash that create would within Equitable book rates would to a in end levels, adjustment value would, was reflects our quarter guidance be impact, book adjustment are rate reserves. continues the

Our of by of in EPS distribution CAGR to to and businesses. asset our range growth EQH. is retirement, leading long-term guidance diverse XX% businesses unique X% management affiliated supported is This

demand sustainability with AB approximate I'm also now In report longer will our be duration productivity reaching for to alternative portfolio that upgraded recognized income quarter, our private illiquid our the finance will and we Combined CarVal have will in CarVal, BBB efforts expertise origination with rating In and have addition, capabilities add we has $XX well higher the placed to our quality, initiatives meet more an in credit, AllianceBernstein and platform to to acquire specialty which general to asset markets energy, Investors, the pleased incremental from through investment progress transportation. distressed billion investment and private MSCI and growing investments. account agreement strategies. A. expanded shifting renewable

Turning X. to Slide

asset to in is CarVal premiums which retirement, and more of The affiliated between committed for $XX strengthening strategy higher-margin and Our XX% than quarter. from operating improving to markets of $XXX risk-adjusted across billion returns acquisition private allocated Financial CarVal account general Of X efforts synergies businesses. be distribution and has companies. pivot AB's example good of will our million products, the Equitable businesses EQH towards grow a differentiate its our this, platform. strategies, accounted management drive our capital-light to higher-multiple,

market. billion we This custom $XX having perfect full $XXX of and a asset We are fund AB retirement example target in secure benefiting both by value management and the closed participate a in businesses. a date business Retirement Group in from how is our the our early chain resulted million income moves receiving allocation.

proud traction a AB annuities their been partnership into to early and and guaranteed need, which we stream social positioned to are delivering participants years, personalized Synergies in an are and grow years solutions. offering allows income gains our funds sponsors with we date be income has their an retirement the SECURE AB for solutions incorporate to XX during secure with years. meeting important income We Act, Through XXX(k). guaranteed innovator in-plan Obviously, working income are now. ability providing Equitable as post the lifetime BlackRock, well their target

Turning businesses. our to

most amounting to our of approximately earnings significant free Our retirement continues business X/X XX% cash flow generated and year. to contributor, of in be a

unlocked account the the of of last Following at which today year, $X.X transaction value, billion quarter second $XXX stand billion. values in Venerable

As this with in year's a reinsurance, legacy up Retirement, both derisking business mix Individual with change and our quarter today XX% net a sales expected new legacy result of outflows, of has and more a expected legacy retirement inflows program, quarter capital-light the outflows. our with VA sales new Group less offsetting in first strong sales a than and had account value decade-long in over products. positive prior and XX% coupled than We

continue category, in products. strategies we Our strongest be we record structured leader on saw and continue to sales In month product, capital the its for in Protection RILA to see life market March. demand our Solutions, of our

nearly are year-over-year are First total XX% up billion. up $X to period premiums and year XX% gross the same premiums over

AB's managers Equitable performance or quarter stars strong. net and as responsible remains end, total delivered Luxembourg and and focus AB's Investment performance worth growth private our record. the earnings these of of grew $XX for clients, higher markets $X grew high a of X billion flows continues outflow growth, our per This the continued our X%. We of still U.S. Offsetting the Overall, its the XX% fee products with story. in quarter both Active has XX investment bucking quarter. on to momentum with the XXX-plus April in outflows in-force deaths grew operating XX% in of seen And year-over-year, of early year Holdings more is $X the row COVID and quarter guidance. advisors the taxable AUM to was the over show Despite million end up XX% annualized million worst turbulent rated fixed $XXX remain in in for U.S. billion in standout industry-wide inflows assets realized AUM. is AB wealth have of XX% our municipals $XX on last XXX,XXX while by basis distribution continue component MorningStar. assets to preliminary significant on of net net and income a X trend. million post-tax of net was we closing month Equitable at a saw sales positive affiliated of broker-dealer organic up markets, favorable average the AUA drive becoming in Strong fixed see excess seventh, results face X% excess billion in ninth the billion, for and year-over-year the years. continue quarterly a as gross mortality $XX quarter $XX mortality rate equities indications returns of a and our guidance quarter impact within income. to were within

see through continue to holistic planning advisor focus an increasing force. our X,XXX We life on strong

the we who As X,XXX advisors planning have our life completed quarter of initial of have holistic the over training end, program. phase

IPO. expect and engagement X, for in planning. certification a recently flows our and On with earnings global enabled and positioning value a life Throughout pandemic cash program flow rates, earnings, record show has fair cash rising protected generation growth the period, return we Columbia increased We with coaching interest for our advisor capital and also inflation, to economic Page this shareholders. strong since holistic in management in policy launched volatile now University consistent program, partnership demand us this and low

$X.X generated XXXX, earnings free in billion a track the And are also flow for We to approximately on yield XXXX. XX%. billion IPO on IPO up generating our over XX% since by cash businesses Cash our cap, $X.X time we billion from grown our have is the end of in at market $X.X XX% quarter of today. based

reinsured XX% over we increasing last the block flow, $X.X with also flexibility. to to return be Importantly, absent returned of year we cash billion remainder value, monetized expect cash total, thereby to from increased last million which financial the nonregulated approximately to this of of year, $XXX flow We've an Venerable additional earnings our the time. the capital legacy leading generate our

rates, credit interest higher commercial benefit Equitable and new impacted balance we in While our not businesses the the widen. the stronger guarantees we markets financial long-term we dependent focus profits. rising growing money markets, turbulent and credit we certainty protecting value consumers optimistic and is interest clients as our value and We and spreads value. orientation, markets to rates sheet cash to promises that ability are yields markets retirement equity about These of can paired planning the with are of manufacture generate only the recognize is of Further, remain our and enabling by vigor firms like not from our that to of on rise business fair our equity guarantees. remind our on and condition macroeconomics immune positioned flows. our The from make of

industry. equitable ability call We holdings our is Robin? value the Robin that on further will to flows now I cash continue generate turn our the for to to details results. to best the and indeed, believe way

Thanks, Mark.

disclosed Before was on estimated $X balance value adjustment our adjustment transition be estimated X. year-end, moment within would our AOCI approximately our I would Last Slide billion. for like book discussing a spend quarter, highlighting the we which LDTI results quarter, at to

basis interest mentioned, forward from the X% quarter the to X.X% XX the nearly Mark with increased XX-year as rates of curve As increasing in and up end. significantly quarter points

quarter industry valuing the the result, fair of our under our a our conditions, report benefit SOP end. estimated of a to the impact minimizes increasing of LDTI GMIB end curve leading LDTI X.XX% GAAP market also that adjustment is pleased positive. assumption value to book April near month book low As value I'm to reserves as of neutral LDTI forward interest adjustment as rate

and value value at the our is more appropriate better represents Today, alignment current sheet the risk. interest Our remain interest deliver value GAAP GAAP incorporate put fair making beyond forward market view appropriately approach, the is rates transition model, the a interest rate interest reserves. the economic Companies and next X assumption assumes curve rates interest we actual a between highlights the Fed means will their more Within into our We higher X If balance own higher choose an rates flows than resolve. reflects well bets continue reserve on our approximately aspect based The less expectations. LDTI reserves. due expect to they in interest to can market rates. have important years. as positioned bet increase hold to hedging managing manage adjustment rate currently interest of returns to the Equitable on market in-force and reserves, and economic positive will forward in our the believe stable in with more above discretion we curve curve, assumptions our making fair and that assumptions than forward be the is rate on trying companies over book cash believe reserves turn upcoming shareholder which rates capital without to levels. for that times our may can we future program XXXX increase and and LDTI assumption

shareholders see economic more a a between and result, net income, match should reflecting assets expect consistently liabilities. As positive our to

notable DAC on period, our to $XX average management in year-over-year higher to results to providing primarily non-GAAP in offset for by capital or Adjusting were before I the the the higher items earnings earnings detail for our Adjusting items by quarter higher XX% notable per which out $X.XX called quarter updates our for operating quarter attributable first a consolidated up in-force, and We will Slide on share, results primarily basis. notables, AUM. mortality partially Turning of elevated income. $XXX review alternative was program. were our share million this increase and per in million on fee driven income more X. segment year-over-year

approximately of million to Turning the a retirement and markets of increased over businesses. effectiveness our prior quarter, results. billion $XXX management supported hedge this program to net XX%. GAAP positive income net by We and equity strength reflecting hedge asset of continued performed and with $XXX expected reported flows as quarter, our year AUM favorable

account is money end. increasing should credit rolling our for higher natural and our spreads assets business yields widening new points with approximately tailwind portfolio from of Our This quarter than benefiting and rebalancing off benefit rates general a as basis the XX creates program.

yield million our XXXX make expense run anticipated reach $XXX million of initiatives, already realizing to target our We million our than expect We've of $XXX million enhancement target continued achieved. rate earlier net target. with also $XX our to progress $XX on

agile meaningful Looking the and optimize X ahead, our from to we an we next expect years as the estate reap real realize workforce. benefits footprint savings over

Individual the to with begin I X. Moving Retirement on business segments. Slide will

notable an June As operating impact $XXX unlocking million to items, billion the of in of the primarily adjustment our while with for for transaction. operating of a earnings resulting Venerable Venerable million over year-over-year, lower closed were Adjusted per associated $X.X due the in VA in $XXX reminder, last the transaction value year, quarter, annum. risk reducing to X/X legacy earnings

product products protected from our quarter of resonating inflows guaranteed We suite continue reported to interest benefit Individual see income demand for structured protected $XXX month continue the year to partially the clients of Retirement, by weather strong market Individual in tax-efficient during differentiated with our a up flows March. of reporting a #X in legacy we our offerings with We sales as from period with investment $X distribution business. maintained equity, quarter, in volatility and premiums net positive million rates. and rising were we capital-light billion in increase equity and all $X.X RILA Retirement XX% the record Total first offering, position prior strategy runoff sales, our year the billion, year-over-year. product offset VA in XX% capital also of our the In and

model, X,XXX third-party to see the the our and continue testament rational partnerships. is affiliated our pairs advisors targeted to our selling We market in distribution success with pricing continued RILA which

the Importantly, focused price business, on flows. business measures cash new to of and creating present value value volume. maximize our not the is of only risk-adjusted build products our new strong value, which activity We

to quarter, of rates returns which levels, value record have new at increased in over will time. be As interest shareholder continues improve the our future business

our plans, Group Slide inflows X% the reported of income primarily access business market, unique up for driven to flows quarter million, $XXX driven revenues. given synergies Retirement lifetime and earnings our retirement proof by providing retirement XXX(k) operating in lifetime serve versus less fee on management Turning between business, and prior AB's We not margins channel AB's million another subsidiaries. distribution items X. is of quarter, year our the This expenses both point lower $XXX to is from on were net a notable retirement the income strategies. today. benefits by of higher a did from significant business provides manufacturing. our asset model, which EQH Furthermore, large Positive

driven quarter, year affiliated pre-pandemic year-over-year, Our positive outpacing the to we first quarter is up market sales. In by inflows industry-leading reported first our with XXXX levels, distribution. X% which returned tax-exempt net premiums

leadership the over our advisors, K-XX serve. market continued to needs a X,XXX Our Equitable in XXX,XXX testament the educators specializing is of in we retirement educator's dedicated

on primarily XX. an million, quarter. turning AUM in $XXX up year-over-year, higher increase Operating average fees earnings to on AllianceBernstein XX% driven base performance Now were and Slide the by fees in

to years. equity fixed peers outperforming the and fixed strong interest periods, performance retail, and assets strong Equity across is institutional gross strong billion X- XX% $XX of is wealth channels. outperforming $XX of a period with of respectively. were X-year relative of of income income remained strong which quarter, The moved Total year-over-year, leading assets basis and fifth the performance rates with X-year of quarter and maintained outperformance the consecutive assets fixed significantly flows investment While the income and including long-term in billion. stronger $XX on performance retail XX% over XX% we their retail higher billion outperformance XX% over private over in X sales, XX% over up X-year XX% outperforming sales to with sales

$X gross $X Our growth. $XX wealth inflows consecutive retirement of Institutional X/X with the billion represents favorable year approximately assets X% private fee-based the mandate, positive billion end were up at net markets. channel which prior net and $XX X% the gross the growth XX% reported sales and this billion reported supporting annualized to $XX management from of of a inflows net including organic billion, channel, of the billion quarter for of quarter sales organic The Total under seventh revenues, year-over-year. and $XXX quarter, up billion, billion inflows in quarter record AB's last months, of $X.X XX including attributable year-over-year

Importantly, growth of annualized AUM supplemented by fee was this X% rate period, over X% organic growth. a

many world. It's clients confident accumulation We was of see XXX,XXX the to important million expect premiums that less earnings to make pandemic been earnings Equitable's the April. $XX year in their this Solutions XX. XX% Moving current billion up less now, saddened Protection for to across over to revenue within we the expect guidance, with higher some interest-sensitive in up shifting of death mortality due products per quarterly for $XX decreasing year, excess hard in potential made our quarter. XX% the over value. and million, to difficult U.S. we Gross second over operating lives investment We guidance Through to by the mortality. we've in higher operating will need. earnings as driven with account first end premiums in were up need primarily on continue U.S. written items seeing maintain preliminary better quarter, the U.S. deaths are and strides were were in do quarter We million, products of notable with mortality higher fee significantly these encouraged years million million $XX towards impacted so which an X prior year Slide net our $XX to at quarter, believe first over our of We COVID by $XX reported but forward, and $X volatility guidance debt VUL estimate prior and serve income COVID but we remain are times be times our March, going claims deaths. XXX,XXX continue there life year-over-year. during

Turning to XX. Slide

the Our support to of business management our fair management continues capital program. value

support $XXX an significant million and quarter our million made have increase. $X.XX accelerated capital progress $XXX to increase Returned to repurchases our per into return, $XXX we quarterly date. million We XXXX towards XXXX. per the quarter that at To first including targets of management of fourth capital to share our XXXX intend additional $X.XX of further shareholders, share to repurchases were share dividend

IPO, since XX%, dividend We demonstrating of consistently have strength sheet our the balance business our increased our up model. and financial

cash generation, earlier, our financial flow at also to support consistent businesses which continue of billion quarter cycles. billion on distribution, holdco, aligns market annual of management XX% to the management the from ratio. with And which closed in with IPO. up strategy payout capital various maximizing $X.X capital deliver of our diverse asset $X.X to We benefit to return flexibility cash mentioned at $X.X We and shareholders affiliated continue resulted XX% who in our billion expected retirement, have our as from our

continue to Lastly, with associated make progress Reg. redundant we XXX. on the reserves

reserves actions remaining pass to it expect I'll back of We Mark. the half in to the mitigated XXXX. second for announce now redunded

Thank you, Robin.

from quarter. I Before like to we would to highlights the turn questions, some reiterate your

model business and with quarter distribution. and in contribution our an our retirement from net complementary increasing asset our inflows from management strong First, benefits businesses, the affiliated

been, growth ever our with management or economic fair lastly, well drive business to our on and accretive And of asset preparing impact the which program continues pairing approach, us action sheet unique result model, retirement for decade, our protecting is alignment no our management hedging the and long-term flows. LDTI cash our to to than over it is toward value last more today balance Second, has shareholders.

force execute for to good as acting the profits open X% investment deliver to initiatives expense on as purpose your our a our With and to and Going XX% forward, against questions. growth. committed I'd we for to that, EPS we remain like to bridge line

first from Our with Ryan [Operator question Instructions] Krueger comes KBW.

guess you to probably impact? the -- all Reg. year in would of the the on at XXX actions obvious first. take I'll you mitigate is I can the potential half one Robin, ask the there expand that second

thanks the question. Ryan, for

be As we've mentioned of last in reserves to XX% address in the past, through second external remaining to to ability actions resolved make it. of the work continue redundant either our we're Reg. remaining that to mitigate We've action in we The in or the internal will reinsurance. the to And confident year to we've progress it and XXX. taken half quarter continued first address the parallel year.

give then the And volatile Okay. on know give you don't you basis color I performance on a given market -- quarterly, more ratio it. statutory more any can give Got RBC environment? the on can color you any the

Sure.

is hedging what But we quarterly, disclose could X our in tell we these we work As times. during completed you have control reminder a well process. haven't you and I programs mentioned, just that do don't volatile that place

CTEXX. the risk curve. we Both to rates protect to And that That's exceeded with where in the of given And invest on fully the to allows The second to out statutory coming gives have the us flow strong to designed one management equity and that we liabilities companies. $X.X our helps have programs we XXXX program and fully these guidance the efficiencies. today in the first continue on hedge and performed associated and well us market us the asset the XX% new generation comfort cash business interest the one where we've hedge hedge the forward the guarantees. is economic insurance profitability billion

Tom question comes next Gallagher. from Our

question $X.X would expected that you business whether that cash first from that's comment on actually X. come flow Or million Slide your normalized is a flows some expect free that to release from My looks capital your Can of you there? sustain? distribution or is result to like $XXX business. of from not cash It billion is

distribution is from That's on Sure, products approximately business expect distribution normal expect from and times. And flow billion, business. $X.X these advise volatile you continues grow million we'd to run profitable we sell to $XXX Tom. could as right. That during our rate that help the a generation the Of coming cash affiliated clients expect business. our continue to the

Reg. a -- $X Got that of and on permanently Is Or we that just as Robin, think impact XXX. then locked you. And about being that -- from should the billion sort is in? in sliding just have if how weak to market? were the scale given markets $X we change, would to that change that might potentially and lately that mark particular, number billion been

Sure.

for the in $X $X context we which for market the half actions year. and but we number anticipate just the look mitigating $X the So Tom, good redundant everyone, of second it's some billion have think billion billion movement, took that's I of reserves, XXXX, of the through already addressed we a still number in would remaining relation to CTEXX, in because we at it the in

one I if just slip could And more Okay. in.

actions? assume things billion of Or looking extra the the standpoint? from do up freeing would where that, strategic legacy including $X we more, on On to other here initiative going or you're of block be that Reg. XXX to capital, a you with that's should risk stop transfer kind VA

we'd not Sure. All do we good That's deals when right like that in and is we we $X economically our are look. with retirement annual with accretive, runoff certainly a we about business an time, is only that take legacy business, look how a do economic basis. should to VA need if Over we be AUM deal. We look position basis. a or at on again, billion the the an on of can XX% being at deal if now accelerate accretive that,

Our Credit Suisse. question with comes Kligerman next from Andrew

come. that. markets a markets the on segment, number a the seems to to assuming could playing sense And I are you notables. kind rate know that happen, $XXX you equity maybe where sense big seasonality. of earnings But run didn't But to Robin, like had earnings base I got the retirement I'd be barring in you've get if individual Retirement on might that number? a -- of savings in of give of expense obviously, often, forward? could know equity a us role just million going the kind ex where there's decline Individual some you some now of it

me equity The time, adjusted imagine, billion reduced to mind, unlocks best. segment but earnings the as by should $XXX $X.X can benefit Sure. the that the highest benefits. Difficult Venerable. sales. based QX Andrew, in you for charged $XXX risk are fees ignore and the fees Venerable and million, on this but seasonality those by excludes markets QX try during The million I'll of run rate X/X, you that per keep quarters when value, of historical charged annum. generally charged On are expect perspective, on fees are a annually, for

risk in record importantly, And AUM cash as the More see, profile Retirement the the $XXX generation billion new levels. the the on business at you business strong. returns can and of are remains

so trajectory of really we're And excited about the that business.

that, tens smaller? in with the a magnitude should seasonality, kind of mean, of much few it there? be about seasonality of And Any or Robin, I the in millions thinking I something framing

this time, we much QX probably detail ignore. I probably provide QX, it something to seasonality, that this But Yes, I equity can't especially time. is that That's provide as given the can that's that I be see market at higher. the at about as expect what volatility would

it. Got

appears we billion-type pipeline for through second $XXX the AllianceBernstein have to income be a that? Retirement been more inflows? and question that just flow would What's like then see relationship. on that these -- $X.X million Group more of lifetime And into could Okay. And than

have benefits said there margins Yes, perfect Andrew, of business and example the from model in the I it's our getting having we Robin think is chain like also asset you the question. Thanks Mark. for both from management. if full the this value script, as a retirement

expect to You should that And AB is lumpy. before the XX area when I'd large. for of this working way And is now, be in Act. comes, has been thing one SECURE it say this will there type on it years business like

sure. for But reputation So AB we're it market have for, the deserved and lumpy. will be excited it's and something it's That's in a Equitable about future. something

comes Cava Stanley. with question Nicole Della from next Morgan Our

It's Nigel Dally.

capital I would I on be that solution a you more to up catalyst think is follow be the may where for on prefer on in environment aggressive a a Reg. still sheet buffer this When point? to higher XXX. are in management, high. is on be excess just capital to hold for that our very capital market at balance you we wanted place, me. to Or

Venerable we the within healthy model, the flow business overall. to based Reg. which we economic Sure. it XXXX. up after how internal we've That's account cash $X.X doesn't generated since at distribute see cash continues on the remain the levels $X.X It's necessarily IPO into way that transaction. billion from is flows. our strong taking or XXX, in XX% The dictate billion

we cash of XX% with XX% payout IPO continue feel our proven about We'll good we cycles. that of to business. out the really and regardless continue we've So generation market flow to the since pay that

cash expectation you to another as And just one year? that how at change be AB, from much your getting that The would this likely does Great. flow. on cash acquisition

not. me One, just talk first. acquisition It about the does let

to Equitable We in close Investors, meaningful. bring markets for of in helps on platform support AllianceBernstein's top acquisition the general million that, billion are $XXX QX. early of private scheduled CarVal up On to excited to account will it with It investment. the $XX makes bring

for the out go platform So third-party AB will it's risk-adjusted benefit then a as better new will win-win policyholders return account and this with and because money raise well. general from

a So business higher at it AB. supports us building multiple

deal business, Over prospects perspective, from on But brings the cash accretion that, EQH long that about an we're excited neutral the franchise term, from the the flows. AB. to is the so an term, short over impact no perspective,

next question Kamath from with Jefferies. comes Our Suneet

X% that go the addressed earlier. wanted the affiliated you and flows to back cash from distribution the to So I

numbers, is that's there the earnings disconnect flow if produces? is So a Or earnings the the and generates? cash can that, flows sort we there between cash the that of business that, some way about business that that think

of business to platform growing anything you on cash excited It of we're about business. expect add expect the we and been business of that flow cash between Nick, an is perspective? that billion Number guidance fee-based don't Look, us, you you that million from differentiation generation. AUA, gross want $XXX one, can we for today, $XX a to talk And give that today sales. generation. underlying a billion investment to flow that $X much it's oriented

as investment the flow advisors, due clarify, the we cash just in Yes. base see a through creating managing products fee-based as forward. I sell insurance well fee We Equitable of growth in products. would investment as stream overall revenue growth supporting portfolio, the going the but

think terms quarter, higher up despite a that's lower. was what Obviously, I in cash the billion. going $X.X the than billion, I guess I that markets it's you generation, believe which of touch just said last then are fact the $X.X And Okay.

impact? is the despite to because So of understand Or really on component market the weaker that maybe driven of want Is increase the that number last lack in what explains that resilience the Is just off results? of going year's what's of a markets? this statutory kind and there?

Suneet. Yes,

gives I the mix business the or transaction The legacy over flow cash up as we best more of capital the IPO, in will the think VA reducing I drive That's of flows. use. flows mentioned, it shareholders think XX% cash the that free you look for focus, the way term, for continue to us our and long risk-oriented at generation drive from be billion, is shifted business we light. $X.X to cash confidence

comes next Instructions] question Our Tracy Benguigui Barclays. [Operator with from

that remarks, your billion to imply you guide is today, In XX%, but you cash your read where your actually yield cash flow, prepared but billion flow would billion. your $X.X market free $X.X mentioned free of is $X.X your cap that from prior given

missing? wondering I'm just So I'm what

the probably cash number end, the in free you was that if looked is at best script that, give. XX%, yield to the flow as think number we of at quarter I thought the

we right, volatile spot markets, proposition Yes, higher Equitable and of $X.X quarter So a billion end. is more at cash investors. for a took you're as yield flow attractive today, making free the

Since to hedge it. your $X.X effectiveness, back received a in permitted hedge credit billion reflected under And reviewing practice, Reg. due like it surplus looks also disclosures, that just XXX. your you your funds. to amount your is Got DFS' and special recognition in

I my change is, hedge your effectiveness that credit? So question recent does guess hedge

when We've DFS, $X which XXX, allowed from taken you in announced that impact, Tracy. the practice the that Reg. permitted us in to action, we of first if received recall, year. we and No expect XX% billion this we resolve to defer was, What total half reserves. the redundant of a the second

Okay.

more that's static, So offset? that

the that how our yes, The market, $X XXX, effectiveness it we hedge, to not reserve. that's perform no of deferral maybe hedge Tracy, limiting impact it. effectiveness -- economically on. versus of to That's quote that yes, the an part we volatility had related -- Hedge Reg. billion. the Yes. in economic target we just economic has It's in that's is which the

earnings, dividend Okay. coming may Equitable mentioned you as think your sources. Should down, capacity? capacity no you And then XX% you distributable that Financial about nonregulated I draw $XXX of your XXXX on and year, that from fully had in from last million ordinary

to That's correct. the $X.X billion. within The the dividends, so the to -- in do support dividend we formula allows plan quarter upstream us and to second

Mark from comes Truist. Hughes with question next Our

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for to an we going economic remain more and we period of create profitability dislocation. help resilient Americans continue highlighted, Robin As during confident be able portfolios will to that sustainable forward basis manage on this this

on Robin, associated then contemplated reinsurance. external X% that, Reg. numbers with the EPS you talked guidance? And in or internal XX% it's to the cost XXX, I about Any assume

EPS take resolve we that here we -- right, the That's X% we minimal, but would guidance, second we'll be in economically our most have in option XX% and the speak is it compensated about look in Mark. to half. to everything accretive Anything that is

We conference have today's end reached call. question-and-answer the concludes of session. the This

now may You disconnect.