Equitable (EQH) 6 Aug 222022 Q2 Earnings call transcript

Good morning. My name is Rob and I will be your conference operator today. At this time, I would like to welcome everyone to the Equitable Holdings, Inc.

Second Quarter 2022 Results Conference Call. [Operator Instructions] Isil Muderrisoglu, Head of Investor Relations.

conference. your begin may You

Thank you. quarter can Equitable second 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 our President Officer; Joining and and call today’s Pearson, Officer Financial Equitable Lane, Operating Financial; Chief and is of Officer Officer. Kate Holdings; Chief Chief Burke President Nick Chief Executive of Equitable Robin AllianceBernstein’s Raju, Financial

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

balance a and morning. important shareholders. we our asset thought economic ensures Good today our to sharp it consistent returns to joining. you sheet Thank prices for protects With framework is in cash decline this year, highlight how

rate growth reported Individual not and and and AB outflows active across immune lines showing asset alternatives, are all municipals, income. these a segment. demand our fixed X% with Equitable resilience. Retirement sales but subsidiaries strong in their AB in record operating from equity see Our are to improvement offsetting values, We fee falling Equitable

to a XX%, inverted turns in X, fall our the a seen curve by that balance further markets attention yield and an naturally inflation, protecting sheet. quarter Slide has persistent equity to Turning

an with and as management quarterly closed at XXX%. target Our we are the RBC programs and ratio working hedging intended, above economic

average is of returned towards and We HoldCo quarter. the investment an ended capital $XXX is rating credit and relatively with $X.X strong of issuers million Our AX. the geared in billion of with portfolio conservative cash high-quality investment-grade quarter

million This Additionally, further subsidiary in insurance support target $XXX financial streamed will we the provides confidence our HoldCo. our flexibility to from XX% payout XX% up and July, around ratio. to

operating strong We maintain billion of reserves management associated first continue result $X.X the capital for and our flow quarter $X the we XXXX. year. billion $XXX X% a reflects from values year-end. guidance on the management. lower a reduction account lower continued our or in as assets to fees Non-GAAP with quarter under by Regulation progress performance, primarily and towards make to track cash of lower share, per remaining than were business mitigating earnings million This for $X.XX remain complete XXX Furthermore, and program, the redundant

portfolio Additionally, lower alternatives the generated year favorable quarter, our returns than but ago. a in

modest market outflows net end Assets of our retirement offsetting flows management wealth and quarter at and $XXX from draw-downs from the the billion, reflecting under management positive businesses, was AB. the

clients, perform values. RILA new top-selling markets, to quarter protection well Our the provides these and business record product, for and which sales saw downside continues in

a announced the the am we to since and assets CarVal pleased note billion raised completed also acquisition, We of management I CarVal $X under transaction. further

our program ensure our capital markets, Slide to deeper X, management program falling business our capital well, continues we are ratios. are our we While not and we into maintain and On healthy solvency management ratios. operations solvency dig performing immune to

cash aggressive our XX-year shows of times. never how of and and The HoldCo together S&P XXX%. companies tightening both protect treasury go a covers that pandemic, ensure more over product central both risk COVID capital in reliably We period, return reserving Over clients movements XXXX and X-year of much performance This the cycle. S&P no period the innate movements XXX our our been to and will deliver market important in green. irrespective come have shareholders. XX% Robin promises is in the predict into last down in conditions. broken economic which ability I some have shown this showing X clearly more year returned consistently the for that The the Recognizing fair has few half return here, rate bond Equitable. design, years through is $X.X detail the to is the designed you our the billion, bank segments, blue surplus philosophy we markets, one have but into RBC and values fallen more volatile dramatic ratio like inflation, today in value we This to of with XX down leave equity our hedging slide years. have would the below on to to worst half two had differentiators with is fall than in their results we first the on at in and treasuries the very of have Equitable’s and reported

portfolio, we for interest Equitable. we markets, dollar is and hedged and to cash this are arbitrary on on This as the economic equity some forward is unique hedging policyholder first again, our on the and rate secondly, actual balance not how our we And estimate; VA values. balance some estimate. based against is experience, as movements. reserves we sheet, not exposure how This our protect generation Firstly, is That management is sheet per immunize shareholders. interest to protect arbitrary based fair rates curve, they

sheet need business these in course, resilient a times, and robust a Of model. both balance we

Turning to X. Slide

each the management replicate. subsidiaries, both shareholders. and with we and distribution, other solutions synergies we provide clients offer that well asset pair businesses benefiting leading to participate hard value Our affiliated are retirement chain, in whole returns we for to and drive With

Retirement $XX capital commitment premiums, yield the In across initiatives private At additional business, deployed XX% generate businesses. the billion our our billion prior half over year. of have account synergy we we and AB’s support meaningful have reported multiple higher up total $X general year, markets in XX% to growth in We the business. nearly

in Our Individual, all to Protection above was year. posted that particularly since for continued new higher value our our have XX%, the highest record products. record billion IPO, for business. $X.X this up last segments drive want quarter Retirement inflows sales further need clients Net of a Group of highlight products the premiums I demonstrating core helping are and Retirement Individual our our business,

of million of for and and to income million Net investment target. $XXX expect our target to saves amount million, time. we productivity are XXXX our realized ahead have on we complete again, $XX incremental XXXX We $XXX track

market Turning billion institutional perform modest excluding conditions. net to low the of within asset quarter despite were fee business, the by AB’s well to to management, current outflows in AXA the flows many redemptions. $X.X peers, compared AllianceBernstein continues positive supported

immune organic contributed with private rate year. is multi-asset. offerings, AB is over in Quarter in AB two managed industry-wide growth fee While growth Notably, alternatives continues active XXth a of see has municipals, to the in which, consecutive along within prior improvement to our outflows taxable X% alternatives growth in not grow equity active quarter from and fixed equities, we income, organic actively strategies.

future XX% outperformed gives X peers us benefit our years. also and over long-term have of of This performance. funds strong equity the in confidence outlook. funds from income last We XX% fixed

growth. An completed for mentioned, CarVal supports additional the AUM further previously CarVal’s $X transaction March As AB July, business. Investors has billion of Equitable their to billion ability important markets in third-party AB platform. opportunity announcement the raise affiliated $XX is month. acquisition in for distribution. closed this in last private We of like our an between differentiator and now

cash XX% in which accounts. $X.X is average our On in We is fee-based year-over-year up broker-dealer assets sales, X%, under earnings continue flows to of supporting total flows. strong see a within advice basis with billion and advice

success Our I representing Robin of advisers, to the now detail. more premiums in over productivity will our pass Retirement results over Overall critical business, prior is a over X% of total in year. to our the XX% up quarter. to approximately go component

Mark. Thanks

lower highlight company the results for total million basis. $XXX XX% operating share, or for were non-GAAP will quarter. per share $X $X.XX X% per per Reported I in Adjusting million to results $X.XX quarter, notable in quarter. share, down X, Slide due the year-over-year earnings markets of to down sequentially, items primarily on Turning comparable were the a

the both year-over-year decrease driven primarily share in expected, earnings retirement our businesses. less As in management notable was revenue per lower asset fee and by

reinsured quarter impacted were was year the average of in movements that Overall, expectations results basis. year-over-year as the AUM within X earnings to market on block results Additionally, a Venerable. prior included months from our

by treatment which the $X.X billion in GAAP of GAAP GAAP income liabilities. our results, primarily reported to was this accounting non-economic driven Turning we quarter, net

down be our gain is GAAP can variance large versus in post fair liabilities This hedging economic the as mismatch next I also accounting will program. reflects movements the reminder, As expected transition a implementation and move that adjustment to movements LDTI confirm reduced the value. in were market to in assumption favorable on XX% movements industry asset combined the was impact our market partially support closer between our will GAAP our the our year, GAAP unintuitive, current over LDTI. conditions as continues flows AUM businesses XX and management as with last to X.XX% positive by net remains rate low positive months. Quarter-end offset interest value our a retirement book

strong needs position track flows shareholder to headwinds combined expense that Individual focus management, peers fee-based Retirement million target earnings, the may client the $XX which on execution general our are net Holdings during rebalancing million and to of $XXX we well Equitable This, target. we potential with results our remain Looking of our account and million business, on to has as efficiencies ahead, deliver achieve of support in program, value million, but in continue $XX we record savings mindful our times. impact achieved $XXX outpaced which these of asset and

hedge our would product Slide surprises the earlier but through the our Mark’s to strong and taken program, comments to for our XX investors. simple economic the capital portfolio Turning in to effectiveness expand ensure we to have a program X, our is position avoids also that hedged a on actions over years business, management on of testament last I both the like

reflect curves realistic fully XX-plus Over experience. reflect that reserves rates which approach, assumptions. interest of the in policyholder forward years This both prevailing behavior the last economic means that decade, to with aligned we assumptions an reserving incorporates and moved

a at impact do the As our other original product and the interest result, reserves. assumed our time assumptions of pricing not rates

be their base and to Our the always today, policyholders contracts. businesses, cannot not only our of hedged. Economic flows. returns, maximize new us generates VA ensures to the only but high assumes the of approach cash of peers, applies especially avoid new It write risk future legacy allows our the the market our will business risk-adjusted this we business both our integrity dislocation. in but from of it’s Furthermore, that leading that of confidence not and to Equitable reserving value case important reserves periods certainty differentiates taking strong all in

to with CTEXX, and of both simple, balance economic a to protect base hedges first interest program, predictable seek hedging insurance hedging, protecting static clients. the on sheet in dollar GMXT to won targeting Turning immunizing have the equity through by guarantees fully program to vanilla our fees believe supported our we we rate we the in daily on products. the though impact hedge rebalanced ratio simplest programs is statutory and our a portion that and by This instruments, markets We our provide exposure our RBC most plain market. portfolio approach hedging the liability our dynamic movements

and other management product to components effect key protecting risk factors. sheet, balance the value of are economic While design minimizes hedging fair our

than strides while support transition Starting Over XXXX, the in we income and last Today, we exposure shift over products XX%, protect introduced investments capital risk our to which towards meeting equity effectiveness, incorporating hedge that equity significant our needs and passive economic significantly for solutions. and new paired strategy market costs against in management. in in-force by passive risk XX% protected our turn made management, with equity extreme to reduces hedgeable manufacturing improves indices, client volatility instruments our business basis volatility decade, have XX% of is volatility. approximately to management more This accumulation, stability. of in hedgeable our in-force sound

for financial that in new better integrate with that fund tools business and protecting hedgeable have also returns shareholder elevated and clients passive, post We impact of new volatility, the XXX% shifted minimize product options designs indices and invest providing risk-adjusted of crisis interest.

space. led the economic our VA the addition, leading approach innovation XXXX new industry-leading in market within of to SCS our products, the RILA fastest-growing In creating category product, with

credit, edge in management hedging a at our us fixed solutions data, returns. in highlight this in generation capital will a consistent capital-efficient program management and met and cost allowing economic bench narrow of talented with allocation its ALM The to gives X, outcomes annuities product As a retirement of design shareholder is programs reminder, creating of our unique capital. philosophy, rich Equitable, product on and index driving combination I that and invest set now cash is deliver to perfectly capital with experience compete against value. deep capital conjunction lower how turn long-term Slide

strategic accretive impact be on Our retirement, Using device to its ability higher CarVal shareholders AB AB against return a for The to as we in fund over close returns to asset to deal and no against this that positive time. a EQA execute and today, capital of drive impacting without initiatives. will has management capital transaction continuing transaction our to businesses multiple return. affiliated growth generate demonstrates shareholders with execute our strategy

to more also is headwinds economic a given holding capital market continue outlook. flexibility, which excess challenging and We financial Holdings, maximize at important even

Our the retirement $XXX $X.X of dividend cash our to the year, million with other million our guidance for some impact lines. dividend This business business market market in our in $XXX target. million the was retirement of above gives annual our confidence us July flow equity the offsetting on from

deliver we $XXX result, the returning continue our repurchases. of to XX% million share quarter, payout which a to XX% $XXX As in million consistent target, included

This volatility the a strength RBC year the ability markets. our was value maintain despite half position at management our capital programs. Our reflects fair hedging in XXX%, of risk ratio highlighting to and strong

position position company. redundant from We capital end financial million to remaining $X.X quarter our on with addition, was at mitigate holding our and remain In of as cash upstreaming flexibility strengthened the of track billion $XXX year. retirement and consistent capital both be our are performance with to return robust fortunate our for and to supporting shareholders. business point reserves Reg. to capital XXX And associated this across we all business able strong lines,

objectives. we are against Mark? remarks. but market ahead, back execute closing Mark challenging to mindful will turn for conditions, now I of return are capital the Looking well-positioned call we the to our

Robin. Thanks,

quarter. I up the summarize for highlights Before like from the to we the open line would questions,

are First, unique economic and our and fair reserving our program Equitable value to sheet. hedging balance protect

We have XXX% a ratio and shown RBC of consistent as strong quarter end.

business a complementary advice our our I businesses across markets. for strong to position open retirement, to continue we and generation on generate these distributable value line year. activity flows. cash questions. our through Second, business to perform $X.X cash maximizing as would the turbulent and at we value new asset expected With that, We focus see Holdings, economic subsidiaries. like for cash strong With management new reaffirm billion the of of Last,

comes first from from the line Tom [Operator question of ISI. Evercore Instructions] Gallagher Your

open. is line Your

morning. Good

any didn’t ending during relative capital wanted result that that also at Just especially year. start that the good your to RBC concur XXX%, half generate of implies peers. would on the you it I first But a to with pretty comments some was the

business? and Is would And it of did kind the running that’s believe about $XXX going capital? at that still it underlying required the to and/or through if million thinking million higher breakage get be Any is annually? the think you talk of forward? power consumed around help what by So Can $XXX appreciated. hedge just earnings right, components want the to how normalized you this I understand in about

Thanks Tom. Good morning.

as effectiveness our hedging of of XXX% year robust half reflection economic of ratio a So, strength our and RBC the program. is

holding year-to-date, business the which offset. impact generate. Like adverse one-timers, was primary a The impacts positive capital several program maintain mortality hedge the which company. protection market stress to our cash by where market gains able generates. adverse flow the driver capital we upstream there solvency period, ultimately was that additional decreased But quarter, the and markets the are our the protected capital we hedge In it slightly impact the statutory are by half offset fees any recent and first and the the also and of our in negative As to base against XX%, year and movements. that

range, within of are and we remain target and the we million our have see the of we insurance consistent, cash we ahead, guidance still company. $XXX flows that annual within Looking

negative see then Are And either around or the this Reg. positive certain $X you parameters just scenarios where it. billion for to my is, markets? Got understand over give there that higher reserve Okay. market under follow-up I change will you want XXX. Can that where would some guardrails time? scenarios changing certain

Sure.

XXX, we Reg. you reserves. with So, as initially redundant billion $X recall, had of

Swiss As about with to of through last resolved that XXX we $X transaction Re. billion half of reinsurance year,

of operating solve the flows mitigate important the we markets the to remain for on mentioned in addition, But we move restructured XXX that’s we Reg. we Reserves fully between In above And to XX% you it’s required that And companies below track, similar for. movements we But with us cash but reserves unregulated. call, as the the time, have what reserves. now certainly CTEXX. offset the remaining. plan that’s the solve factor is VM-XX by need hedging the have would for XXX to $X billion over what and redundancy results. Reg. in to it, and reserve

that on And a could. I quick Rob, just if follow-up

Just say, have extra an market about $X there let’s be are is where will under will solve billion, conditions scenarios again. to we talking for certain that there you

for it I billion. you possible $X think that may under is concern reserve market this the But increases? that’s certain market fully the in solve conditions, the

longer no we the be the we confident $X with end on will fully billion this are ourselves end – and to redundant No, At concern at look, Reg. the reserves, have of will resolving XXX. resolving we this. focused year-end, we of are the

you. Thank Okay.

of KBW. Krueger from comes Ryan question next Your the line from

open. line Your is

the general question Good repositioning. morning. Thanks. on I account Hi. had a

the XX% NII but of the XX% achieved guided you assets. have about only of originally think upside, close I redeployed to

accurate? comment upside guess the that comment could you – to potential So, then you I you is the on, on upside guess NII I so, And target that can gave? if original

Sure, Ryan.

So, million. we year-end the rebalancing million targeted which by XXXX, $XXX of general we $XXX program, have achieved account

to this as point. of We and earlier that results good would $XXX higher expect So, million we a result spreads. rates do that finish

of be may XXXX. we on upside into top head there So, as that

$XX We the The separate billion AB, two your are question we $XX the go are and deployed, AB $XXX second to committed to want is commit but that to by the there XXXX targets. complete of million, that about don’t XX% part but we two billion together.

get only shareholders will not capital, the we $XX track delivering over value between company raising but the long-term. So, fully the benefits AB’s management strong deployed, in from to which for synergies effectuates billion additional into Xx of record and income, insurance company the the Xx and asset third-party

And Got comment any ULSG last exposure? color own could it. on your you assumption? Okay. versus then just give can trends your current on And you

Sure.

in deviations mentioned that we the as assumptions we economic to our minimize emerging in experience to presentation, in So, reserving. means manage our order management our large

for As our business are recent on all experience. based life such, assumptions policyholder of our the behavior

we is surprise adversely. investors never to objective Our want

exposure of large some ULSG, do our peers our while to Additionally, minimal. have exposure is

So, economic integrity we on remain reserving our the to reserves. quite focus in our confident due

Great. Thank you.

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

Your open. line is

Hey.

earnings. $X.X alternatives the of above when coming which XX% better. probably yet, be had even year to billion the it’s for half to the this it’s it’s that back mean to you the bad half. First And the talked coming bad back I range year. don’t about? relative consider one my XX% have the have mean all, you in going I some the estimates, deployment I being guys in retaining I that materially in capital on is The conversion you are in cash is of of

be got the XXX happen that what to have down, XX% believe that going allowing I end question of Reg. that guess the happen shouldn’t why allowing you is XX% despite So, to actually on, at above markets range? to could the And we what’s day? continue etcetera, is, to you that

our day of is Look, we how program, Alex, business. core at the the the the manage end hedging and

economic that sheet. able supplement to helps First the That’s comfortable markets to statutory why hedge million dollar It’s protect were and do felt and a in comfortable the then so. helps $XXX down to equity regulator of we strength upstream the felt balance and management. with do of our July because hedging protecting so, the

company, billion. than Our maintains guidance $XXX to more we we our continue have XX% still our million stay from we would $X.X expect and within XX% expect ratio. we because upstream retirement to And to guidance that the payout

a and maintain to cash and consistency always seen time, that have continue. is you to over will objective that returning in Our shareholders,

Got it.

you Second of had being of holding Should just it of dividend. goes think needed Reg. some on that in the any for that at because the put July quarter, position, is a end to I gave about internal the of or like we into liquidity the a a that is or it something used company obviously captive to to not question up potential gets possible solution be facilitate is XXX? solution, an Like, it picture? that

I the don’t see right that in now. picture

have I resolve in reinsurance we working are XXX, to call, internal external on continue, we options that mentioned we reinsurance. last As then Reg. the and two

of made progress on the have them in quarter. We both

the And So, XXX. confident we year-end. Reg. that Reg. resolve be we as solutions us behind will feel XXX to of have

Thanks.

line comes Wells Greenspan Fargo. Elyse next Your the question from of from

open. is line Your

closed thoughts you us might to in here your morning. from Can right, mentioned you your where in guys you that Good My you CarVal able that Thanks. first know right were using transactions, would the excess now question, finance? And and there without the capital now right ever you deal prepared to update on Hi. deals M&A that excess complete I remarks, actually if just be capital. deal. pipeline, using and any you on consider would just focus

Hi CarVal really On some I was spaces right. deal The deal are it you one. that side, asset private and the for in on AB really terrific take filled will Yes, blank Equitable. AB Elyse, it’s Mark. for side.

the you And being in able it some the recall, from of billion of We Holding our of to and raise have acquisition. of some date the units Equitable as we $X seen of the since power units. the CarVal funded to

So, that is it always now are we years, the not that said was X since opportunities we positive always well. years inorganic have the we growth. our But Equitable side said for X of on will as dependent have on Look, we look at sort IPO, strategy that.

we look – along we take as an a that intense our at area course which and CarVal for if solid just be supports be low The a very So, needed would strategy makes on it be areas that our in did, capital something we is out it’s interested sense, wealth something growing unit be comes That’s platform of would would management. where will got but interested strategy. we not something have where would benefits Employee at and alternate AB. our to-date.

they do we say, way it the we always is But accretive I would for a shareholders are areas look. as as well. in that So,

are IBNR And well? really COVID. Thanks. seeing deaths update second Can you seen what just with question, then favorable have of the of my we Okay. the give mortality you COVID us of was on releases off driven as some mortality slow. for Obviously, an in just was And number favorable the quarter.

that. Hey Elyse, I will take

that U.S. the the and U.S. see we through to decline and were maintaining related as to We deaths obviously continue but to million lower in is to uncertain So, U.S. with conjunction per upward. we $XX still on not U.S. in first to cases solely linked will COVID to the the mortality we we deaths COVID $XX our sharp trending But at are are our times. to are the XXX,XXX pleased But said, the million that was and COVID in continue rise, XXX,XXX with deaths. but COVID. favorability in quarter XX,XXX, deaths, that decrease the deaths surprised these clients support hospitalizations U.S. the favorable monitor trends experienced guidance

for the color. Thanks

line Your JPMorgan. Jimmy the of Bhullar comes question next from from

is open. line Your

Hey. Good morning.

So flows regulated weak be being billion that your guidance assume in pressured. to unregulated to But given subsidiaries, might cash would beginning stat impacted the the cash in the year next Robin, any despite Is that there still dividends capital have the RBC then increase $X.X of expected are despite would that year, weak, positive year, with this or year puts you have cash lack the probably stable subs and flow of in markets that still being changed. other next stat the are earnings mentioned the enough be taken it flow out, and of fair lower you impact extent than going that being or on hasn’t to at in takes no will the the earnings be your market businesses, negative?

Jimmy. Hey

we gave the to $X.X the $XXX the year, the are this than we billion, First, billion are businesses the our able are reason But retirement keep million we not still immune $X.X more up-streaming because is company. guidance in markets. to

exposed to from equity transitioned markets. have We means fee-oriented are to a capital-light we impacts business, which

but company as management by of will year So, feel for will both XXXX. of and be end markets, a get we asset to guidance it we the impacted better have certainly retirement for in terms the the

then capital year the obviously deplete unless to extent less And Understood. you out further. more, base you the want to flexibility take next

Correct.

holding the for down XQ used are in XQ that given the at overall this you your in that year to second we slowing strong buyback be is have or the obviously, environment? – cash dropped we year, about Should should half done the company the in amount the the a flow XQ and done for being given impacted lower of pace little assume capital bit buybacks year. buybacks buybacks? you not macro going – uncertain buybacks, at what on then or what XQ was you of have you have And below Okay. in last think the than How

Obviously, market to able the we additionally, Jimmy. balance maintain Thanks are and are first because our through pace. protect hedging buybacks Yes. sheet we hedging, hedging statutory But dollar we the that able environment around cognizant then the are at to of program, our us.

million So, to in our a free for year year-to-date of consistent to over which XX% relative our over returned guidance. On a provides we our dividends. program to we we as translates pace total value and the flow goal sustainable slightly $XXX hedging of to economic basis, a is cash management. to be to level This have That’s demonstrated also shareholders the and ahead due shareholders, including the at returns yield, for a that’s the have deliver significant a believe past. strength the market shareholders of

to capital So, to wouldn’t in XX% read we fully continue XX% I timing to to difference that return keep quarters, as shareholders. continue. expect too and committed we small the ratio remain between to will our and much pace payout

you. Okay. Thank

next comes question Andrew from Suisse. of from Your Credit Kligerman the line

Your line is open.

Good been variable in interest the with much Equitable’s interest and you the divesting this your Are what’s at stage? other annuity It’s getting you Venerable blocks, another on since of block of Hey. any did block. morning. time in some legacy transaction

Andrew, Mark. it’s

Robin year. confident XXX of focus our of the Reg. end Robin the been a priority indicated, we And reserves. the has been that That’s As us half for and by has mitigating that of this really been. for myself have said, as pretty redundant That’s we have where remaining the all has the remain team where solution will working.

Okay.

correct, then, there focus much not Mark? So,

dominant right. the moment, for the Correct That’s That’s us. factor been it’s Reg. at been XXX.

Can share $X.X at its at in year. premiums doing the billion, in in looking robust, about how competing? Got record terms and product market SCS first and pretty And just general think it. talk of interest a I is it’s then RILA Equitable that’s year, you market

We one. the as time. And solution grow, given that it’s shift demand volatility, then that’s structural their next for boomers current the take this solutions dislocation stage. baby protected continuing will see a I amplified enter by second, further equity first, market right life for Sure. really to

second over $X And anchored solutions have we developing realities, pioneer innovation focus, advisers, our decade privileged relationships. sustainable distribution our had over in ago a given Robin over and As this Mark got market record third-party our our edge well distribution a sales as our This is think highlighted, differentiated both platform. a we with and long-standing quarter economic Equitable we X,XXX continuous as and as billion.

you. Thank Excellent.

Jefferies. Your from next Kamath the line Suneet from of comes question

line Your open. is

morning. Good Thanks. Yes.

concept this healthy hedges have that of floored where of mismatch we Just back seen is this reserve One on out get individual of changes. retirement. and sort reserves, you some issue between with have sort companies blocks,

business? reinsurance, your as your position and that impact from that could – this your something wondering position block Just post evolves in reserve is capital

Hey as we a your and in of farther we we NAIC today, from block that could in Suneet, today. some becomes markets the highly today. point, more healthier are it’s equity as far that But the it could CSB Yes, sit are here – that doesn’t rise for much from be away point, be away is Equitable exposed something at period Robin. impact regulation certainly,

in bank. that wealth guess, either things we Okay. curious of And sweep it. establishment if is through wealth of one that then interest companies management, seen from this that a something sort opportunity Got guys to or the programs you the cash other have management do in rates of I rising – that’s year? an Just Is banks could do or leverage ahead?

help earnings I our that one. environment, from take it rising sweeps. does will Great. Nick. is a interest This In

benefit to expect we months, several next from the those. Over

net to adding Additionally, advisors earnings and our of generate power strong gross continue I the flows overall would say business. our AUA and to flows

you expect, is not material? the or Can that benefit it you quantify

quantify don’t this at it time. We

Okay. Thanks.

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

Your line is open.

$XXX above achievement million guidance. Nice you. your million $XXX [ph] OpCo of that’s dividend, Thank upstreaming

sources, your mix think the the year Just did dividend a if of would I and flow ordinary your cash am skewed it change is source million part towards in and total? was capacity, you XX-XX higher non-regulated? wondering I may dividend reaffirm questions this be since there. split, your that $XXX it a it cash guide a billion few special regulated guide dividend more was just above versus of that Was flow above $X.X and

Tracy. Sure,

up annual being companies. from we management that in $X.X million. the retirement our agreement ended $XXX company the different million. – to is our $XXX $XXX million, between our actual guidance dividend billion, earnings year, the To the back get So, then This to have AllianceBernstein the expect we have capacity investment ordinary and that the you add life formula for

So, we $X.X of be function billion regulated out yes, and a formula, over higher of year. our upstream year, the it’s But purely we cash XX-XX ordinary is what have that guide flows. and upstreamed. since of company, that’s percentage the our this slightly the long-term, This more dividend may

for enhancements. Got it. see optimization, if And on further room any you could GA comments

Yes.

As – in mentioned were achieved quarter. we I earlier, the we $XXX million

run made XXXX AB of the We we target which versus partnership was with in today rising of that $XXX Lifeco. delighted come we forced higher we have investing in We year-end million, and of the think ahead are up. will progress spreads of function a as rates are being and

upside, of be be but want current there. So, environment, too. is to with that certainly There are in are We progress. we risk the the out pleased probably credit cautious cognizant we may

names risk focused this that are we we credit appropriate So, and taking highly are ensuring on rated in time.

Okay.

of I earlier endemic more. mortality like COVID will COVID understand was sure point flu. one in just But a the will conversation wanted favorable to from that lower there I on an losses. function time be a it where be Just the pandemic, make

imagine quarter every see at So, then will COVID I we favorable mortality can to-date.

are I there like below trend. So, am there in that other if offsets wondering long ran mortality COVID

The to Yes, in COVID. our both mortality quarter. minimal us, COVID below though, of non-COVID and for them very was the ran

overall So, under, continue to the good came mortality and it non-COVID in through this related results is we month. on see

pleased are, volatility acknowledge million are segment, we Protection Solutions we the the mortality. but it for guidance and we with $XX where around our maintain So,

you. Thank

line of Your Hughes next Securities. question from comes from Mark the Truist

open. is line Your

Good Yes. Thanks. morning.

is much Do or of Your a impact or a still that volatility. experience Is have guidance bit the lot pretty see had perhaps that, the around that we given is million your a from $XXX pretty market different? mechanical on XX% that move. you mark, little

seeing, the are asset – based it across Hi still retirement we we still aligns and well. the guidance in on $XXX XX%, management No, believe million pretty Mark. what company. Yes. And we are

seen, behavior change And perhaps retirement either Okay. group an or any retirement you customer individual around then have maybe withdrawals.

I think you VA in about the talked lower legacy outflows block.

getting You inflows, SCS to product. clearly the particularly with more seem be

that behavioral base? of So, your customer changes of whether sort times whether consumer these thing, just curious stress, of any notice in inflation, in you sort

Nick. this is Yes, Mark,

I times, are it in to insurances think asset consumers I And these think looking of speaks for the and more resilient power class. portfolios.

in are demand at time. So, and of material new not terms seeing behavior we products, in for this we in-force are changes that seeing

Thank you.

further are call. conference Thank And does for today’s conclude This you at there questions this time. your no participation.

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