Equitable (EQH) 3 Nov 222022 Q3 Earnings call transcript

Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Equitable Holdings, Incorporated Third Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks there will be a question-and-answer session. Instructions]. [Operator like Investor conference Relations. now Muderrisoglu, to turn of Head to would over the Isil I Please ahead. go

Thank you. call Good third on quarter morning website and welcome earnings our Materials to call. for ir.equitableholdings.com. today's at can found XXXX be Equitable Holdings

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

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

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

Chief call me on Raju, Mark Joining Nick Financial; Operating Chief and Financial Executive Financial and Burke, Chief of today's Lane, Robin Officer. is Holdings; Kate Pearson, of Equitable Chief and President Equitable President Officer; Officer AllianceBernstein's our Officer

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

in joining the time, same years. Good with morning their for bond third at XX and and markets thank remain today's returns challenging Conditions worst a call. quarter, you equities falling consecutive providing for

to conservative advice, integrated demands are protection these we our backdrop, can businesses been this earnings income, our to control. our sheet. we remain for uniquely with and Equitable and is has clients' While immune what robust, and need a positioned heightened. our markets, on balance meet ratios capital not focused are Against

Equitable earnings $XXX on equity Slide X, X% of quarter, down a bond per million Non-GAAP respectively, operating or markets $X.XX this declined and and global last the down the to With per were the share XX% from quarter assets basis. value by I XX% Holdings under year. share, year-to-date, XX% Turning quarter. management results highlight will this from

earnings reserving playbook. onetime quarter higher actual in is alternative impact recognize positive and our small market for expectations line lower offsetting Adjusting results our claims, spreads, partially as on our review with and emerging were interest rates, We Third a annual policyholder experience. benefited items, assumption this that weaker different fee and from based a income. market from wider pandemic-related requires with

saves under in AllianceBernstein operating by redemptions. asset multi-asset, addition overall AXA by improved Growth and our in account. We continue lower Pleasingly, excluding lower AB’s on more aggressively to reflected assets to mix. growing optimization outweighed of $X.X have anticipated performance the were fees strategy, CarVal as asset and our deep by on management outflows are by net through quarter, the declining investment conditions adjusted in in the Offsetting been fee we has not rates immune increased general taxable municipals financial conviction were with earnings to decline and redemptions in industry managing fixed our income channel alternatives, income prices, favorable expenses. driven compared equities. billion productivity QX growth also each and QX. of X% X%, the active additional was and

operating quarter, the excess management and of on of cash focus our this to repurchases. capital combination We including year, growth XX% in $X our payout billion with dividends shareholders us protect line earnings. organic to Our million third continues to a guidance strategy date enabling $XXX sheet, share through balance of in non-GAAP to returned to returning XX% and

our cash is hedging Supporting this capital target. at $X financial and we end, above As our of is billion flexibility quarter million held in $XXX strength which Holdings, philosophy. the

from guarantees the Our first VA dollar the impacts immunizes markets. of hedging program our

This quarter, offerings. more effectiveness reduced within income-orientated our by than XX% hedge our volatility

on general money points will new are Turning to yields the benefit earnings above time. portfolio income income XXX basis year, over yields and over net portfolio. now fixed portfolio investment With our this turning account, each our XX% of

all is and credit client XX% $X.X clients' we investment conservative. to holistic of securities, Our exposure to benefit and billion needs. investment subordinated inflows innovation, and retirement of our demonstrates relatively business environments. distribution, portfolio portfolio in is Equitable's integrated advisory account insurance alternatives. We CLOs general equity-like our limited meet have an market investment-grade and net alignment our with needs quarter third product across strong from

and volatile strategies times. structured continues participation downside to provides and client market RILA preferences upside the meeting Our lead capital in protection product, these in

also significant in results conjunction in life our benefits across design with our insurance our between aggregation greater product capital segments. have and We businesses. efficiency retirement capital This,

manage on we an basis. Importantly, economic

This resulted Some has based no mean on take on cash and flows the approach integrated actual our users turn fair increasing We since the loosely. bets of market our value in behavior. experience by emerging liabilities factors businesses or and assumptions on heroic XX% total policyholder IPO. external

and Turning were be our the $X.X IPO, results which billion. key a of time our in the bottom seen to waterfall of approximately quarter X, growth our we in can cash of Slide IPO, cash the the the breakdown from At at highlight slide. flows the flow since

company, $X economic into VA one Back thirds a cash supported with $XXX reinsured entering by This billion Our XXXX cash transaction the our of of of our dividend by flow and we two portfolios completed risk accelerated of that and October $XXX value. we be million legacy third tail in Venerable. guidance a reinsurance removed flows unlocked insurance will from our XXXX, in $X.X which for billion, million is July.

also of growth $XXX result, in million $XXX $XXX contribution AllianceBernstein’s year. to repurchases to equity returned have million management dividends million $XX $XXX an Since XXXX. $XXX flows. cash demand Individual outstanding cash additional wealth total our and period we Group organic our contributing shares returned to Retirement from in $XXX flows from segments. over incremental million. IPO, reduced seen and this stellar now shareholders share an Since performance with approximately coming for $X advice and increased flow added AB business billion an the million in As biggest we cash have from the market EQH IPO, million a increased with and million performance of Equitable's additional has We've the by

As shareholders. a result, lower per for in an flow flow cash XXX% up IPO, approximately since the free and shares in the our return growth cash long-term attractive free share outstanding, is

Our course, markets, over cash are, have been last of year. sensitive which to the challenged flows

our us with our However, hedging and XX% operating maintain to RBC and cash returns earnings. to program management have of shareholders enabled consistent ratios value XX% fair to

quarter, is our of our less X% product last value. what through spreads. we equity diversifying also new Turning $X.X businesses, rising our retirement are were credit even With to year. SCS is interest more to record billion Managing markets. this business control this sensitive earnings these sales compared quarter translated within rates, another which up Retirement in our into captures important

achieved have million million achieve target ahead income track our of investment on to and $XXX incremental our We remain $XXX goal of schedule. XXXX

of continue net to of expense savings quarter $XX thoughtfully as We million manage realizing end. expenses, a also

Management. Asset to Turning

billion in to As our positive which I deploying outperform continues in industry-wide a markets platform, outflows to remains improvement. was AB rate the capital mentioned support but peers. has to quarter seed immune of nearly year-over-year continues X% not XX% year-to-date $XX Equitable AB's helped support territory of growth commitment, and earlier, for the fee private the

quarter XX% in of our we While in pipeline $XX doubling advisory pipeline fee-based attributable near-term again the accounts. billion, reflects strong, investment above over to strong billion reported acquisition fixed product Management remains environment, income. benefit of to the challenging performance fee-based institutional long-term the our average sales, of in performance private a remained over equities Wealth in which in of with Within XX% CarVal. alternatives, and highlighting investment $X.X were business, AB's

down advice, year, markets as at on will more the now inflows for to to out the the generation. results to compared markets, distribution have prior own over turn the segment sources its Robin? closing we advice call we Subject value net I While quarter discuss in further break in billion, quarter transparency the affiliated benefited channel of our into assets from next planning detail. the weighed from providing demand to to Robin X% as quarter are under continues. $XX

Mark. Thanks,

million partially our per quarter X, sequentially lower share, total reported company We assumption of highlight notable offset operating from quarter. for the for which $X.XX $XXX XX% primarily earnings Turning non-GAAP share the in a or equity year-over-year will or non-GAAP $X.XX per $XX to were share the per per results million on basis, lower the in I operating comparable items a earnings the basis. Slide on markets of impact to share, $XXX quarter, due is update. down million Adjusting favorable by

in million should we considered features results, positive These of the quarter. GAAP to Turning income reported light $XXX net our of in two results in business. be

are accounts $XXX our market XX%, global adjust down impact. fees stock and are sensitivity year-to-date, line market-sensitive fee-based derived down bonds. XX% that hedging cash with First, our markets second, post-tax from that with given is bond having and in The plus most net and and minus of and our down equities effect client of million invested to or will we've businesses XX%. markets And of earnings the flows markets into

statutory by expected interest to program equity the levels. and The program held balance hedging changes market hedging fact first hedged economic is that immunizes sheet, well namely supplemented we our that hedging our VA up the which our of balance a updated guarantees program, results This position relatively can declines during base market continuously mutes as worked the as our severe on impact protection control, dollar to rate fees. market decline we due Our the as our program of sheet. protects our some in and

expenses. to Turning

continued into we retirement while Our track a our by benefiting in is more philosophy XXXX, see individual target business savings our opportunities. than sales observed new to resulted opportunities not net $XX achieve net business million which continuously to on and margin savings $XX seek distribution, date, where remain strong and in from but decade. This as efficiencies growth to with affiliated investment million we of investing

has rebalancing the Our spreads, quality. XXXX achieve in $XXX account to been without million going down wider credit million able program have $XXX these of target. With we general achieved improvements

our our annual by $X.XX incorporating which earnings emerging we experience our million our per avoid increased As into non-GAAP update operating reserving. mentioned assumption assumptions, surprises that reflects of $XX earlier, share. our in ensures This approach or

in a with that through is equity alternatives long-term clients times. with requirements result, for Quarter-end basis. generating declines AB in to of should approach. in alternatives continued our example within inflows our market evident $XX delivered by equities Individual We improvement income markets nine momentum in industry-leading that is which deliver protected I hold by is market a has line XX-month This solution our fixed product, equity $X NAIC fee As fee mentioned offset a higher business, partially and record quarters AUM year-over-year. in Equitable's growth commitment, resonates growth confidence solutions. investors’ another a and than the Retirement businesses, headwinds earlier, organic $X strong on volatility give by these inflows synergies, and VA in continues predominantly net to billion growth AB trailing alternatives billion active delivered of we strong with was which business. uncertain more supported our X% in straight our of as another reserves continued The SCS billion quarter multi-asset led net Equitable's during was

first in year. up immune rates, the Lastly, XXX through the economic is have and of impact sheet points months of the by interest down. rates both change nine increased Equitable's to over balance basis

benefit solutions. to margins with opportunities record over our manufacture new areas; However, flow through retirement time. in and income higher to This interest first, three in do from means cash higher we business, innovative rates products shareholders

record have GA investment portfolio the to above will in-force proved for into our upside. to achieve has And is with third, drives the our as These of net before low quarter value. which rise. value. allow X by This environment XXX interest additional yield to new floating rate Second, capital it and and of evidenced investors basis will shareholder million business year-end us areas investing how to to and management upside through another higher another been have value increased shareholder environment, XXXX exposure the increased target our our rate I interest runoff. in higher Individual three in approach of securities we to continued translate rate now long-term rates points Slide now quarter Retirement $XXX highlight in inflows turn record

a have balance to We and the approach uncertainties. given sheet prudent ongoing risk management macroeconomic

July, We to to credit, of then Holdco, share strong yield in to also insurance $XXX or enabled driving to million This type of its XX%. proposition As and portfolio value X% cash count our positions strong of is year-to-date, relative shareholders, such, both million shareholders volatility. with $XXX This billion includes share has believe to testament maturities hedging on macro return ratio brings another be This events. the a million the we XX% recession our by the by have fixed our appropriately for positioned capital capital dividend which cash to XX%. at returned XX% shareholders. high-quality equity, for higher program RBC a $X $X of XXX of capitalized or the $XX despite target payout our us of which total Equitable of $XXX our supported S&P end through This year-to-date investment to market our to of flow XX% quarter, peers well we is us reduce manage million grade. declining example In Equitable's is being free the repurchases. investment billion to the

resulted consistent our of return product value outcomes Our range capital fair delivers design has XX% hedging of in quarter. narrow over with conjunction by program, this is that program reducing hedging volatility supported in our

general an strong commercial housing. that cycles. highlight debt-to-service has to [ph]. times remain which and conservative XX% well AX is and account area allocated our is different The positioned mortgages, of the coverage credit loan-to-value which well credit portfolio of with current ratio, rating conservative environment for subsectors our to ensures diversified ratio across like accounts a Additionally, market resilient are portfolio One X.X in general multifamily a average

outside On Lastly, we total in by York of our upcoming our upstream our track to the retirement and of industry. an next individual Slide company. I our flows will entity regulated consistency are future and XXX% on LDTI will and the further cash ability distributed adoption New how it XX% This year-end. update holding to over for year Equitable provide our X, to both of products be products drive on benefits

adoption value-based key the is the of principles. of One many aspects LDTI of fair

As metrics reflect hedging unchanged our our GAAP fair means is value. remain flow a closer conversion to new measures flow and that unchanged, GAAP our to cash our for be new result, our Equitable's measure measures and operating will will are assets. the program better flows as new earnings be moves earnings to This while economic-based is cash cash to generation most of cash liabilities now The matches economic-based earnings higher driver as is the the new LDTI hedging aligned generation. consistent the will program that closer will mark-to-market, which

new Turning to our measures.

remove income First, there Since market-based liabilities. hedging some net income consistently indices prerequisite. for positive our better positive net less movements program net This inclusion will that and be fair a more already largest and be value, reflects the volatile. income barrier new is targets will a a our of consistently as will into

to approximately new higher year, measure cash $XXX to post closer adoption. more generation cash also aligned by closely to We $XXX that a economics. per million non-GAAP million and a moves earnings measure translating ratio new to be operating will LDTI introduced payout The

earnings. for at block as in legacy the change already fees than does our block minimal accrue to product is today, LDTI, the Our but the more Under is issuance. business economically we driver core will impact main expect priced it it legacy operating attributed

levels impact transition X.XX% value LDTI driven assumption. we industry to end our neutral zero Lastly, book GAAP or primarily expect be quarter interest at low market rate roughly by

LDTI to to use adoption. continue book ex is measure a AOCI we that value correct Additionally, believe post

ultimately providing required will value much for too new Equitable framework from investors LDTI, benefit explanation. standard, of shed insurance assumptions talking to throughout changes investors liabilities overall disclosure horizon able that increased investment stop a then focus remarks. compare much more I for of also and true business risks model into informed core will better frankly and it Mark on about And similar accounting cash more industry better reflect be company-specific will valuable market transparency accounting greater we is back well the understand through insurers this the Mark? decisions industry. closing the Through that an should law. NAIC The reserving the adoption consistent and is fair And so turn within now that the While life to positioned drive the think on and and economics movements. will flows. we the to can precursor

remains Robin. Thanks, solid quarter robust. a despite In closing, The balance market sheet headwinds. performance of continued

the we today have We challenges anticipated in for see prepared and markets.

showing designed control. what are resilience time the we We for our are on can we have and we focusing spending

in uncertainty. placed and meet investment, we needs these insurance, integrated advisory to model great means times uniquely are client of Our

We the the segment, retirement RILA fastest-growing market continue in market. to lead the

Our continues the footprint, Asian peers sector. to asset of and its position in management alternatives successful outperform and subsidiary platform growth well us AB strategies, its diversified

and a forward, deal uncertainty great and Looking there remains recession rising of losses. risk of credit

tools lot We Equitable be the line to will We better business of committed also questions. that to clients, continue prudently bringing uncertainty. we benefit to professionally. of our in employees, manage shall the relentlessly deliver for now We a continue manage have shareholders. shall open will and to and to this outcomes the that, With order best

[Operator Instructions].

line Our Elyse Fargo. first Please will with of go come the Wells ahead. Greenspan question from

your in Over and the your times. we're look in how just that that I billion question, you morning. would target. markets recognizing, uncertain good guys we're $X I right thanks, -- have and obviously now? Obviously, to, Holdco, you now balance you you My target that's manage some guess, closer at think to when down Hi, well right, first the do uncertain environment above said credit

Thanks Hey Elyse, it's question. Robin. the for

We despite bit. type we're XX% in ratio of S&P billion in in rate to of XX% our and consistent We having of have on in we buffer us cash flow quite volatility Holdco. conservative to the our the of enables a that's hedging program, rebuild better at our which We've a XXX return to it's trying capital also like XX% shareholders. a nature investment billion the over cash -- year-to-date, the this position of We the think a billion of shareholders end that market environment. $X portfolio, And conservative $X a the think of have as interest type this result, testament and it's to markets, environment. of declining that payout at $X have we this mind returned right, prudent. the You're to instead increasing cash higher position type Holdco of environment, don't to

then new, I the additional the That's of would side CarVal using deal -- transactions? helpful. And on M&A things, anything that guess, towards that, guess, guess, I consider I you might of following buffer some

it's Thanks question. of the Yes, Good success Mark. CarVal the morning Elyse, mentioned for you transaction. the

delighted businesses a the Kate the and mean, and capital-light We that. to it. EQH with integrating businesses transaction we it fits side. multiple and see as have and particularly team fabulous that are completing Seth in I strategy job the high towards shift on ultimate done

We said, this we it, Robin look would in and the are be be in look will always us we asset you management. expect to using areas professional mindful at market, anything but But shareholder in money we of as this on management wealth should able be opportunities would we market. will and and of obviously, look to being at. in The position for be prudent conservative very

gone. very, stage, So but with acquisition CarVal announcements this no the very has pleased at how

you. Thank

from line question of with Bhullar the will ahead. Your go JPMorgan Securities. come Please Jimmy next

morning. Hey, good

years, those doing a when past flows So well, even were gotten and had competitors very your not question you recently AB worse. had have of first, and obviously, over many two as strong the I on

few discuss of from sure not you of -- you're or what's this and put So have much strategy this region business causing if seeing of -- either views are sort what outflows either years? a any your from sort in on can of a concentration you the how relates last to might and

line hang Kate, Sorry, with just having a problem Jimmy, on. we're

Hi, sorry about that.

Kate on now, Okay, is thanks.

from side, quarter Overall, couple to client were we continue a this I They of to don't Kate think, the time we good up private specific we the institutional are flows. strength continues but more time wealth largely the on also Yes. see, immune some think Burke that there. And on had happen, here. to I peer to -- Where reasonable challenging It's were we in which mandates to equity side. then put versus active our group flows. retail, saw challenges related

this in that on confidence have we very think risk in positive environment, we to continue overall underlying Obviously, clients a volatile again, But are the well go flows So in I are think, we're business forward. we the have, future. going towards subject that looking going the to more be to to as to market. challenges positioned do

sort sort the assuming peers Okay. long recession as we're to results I'm an But your for going is flows, pattern? industry as there's environment that follow of of uncertain struggling are in a overall where and similar of

this to high Look, a same in But environment. have as are -- give to we're pipeline -- confidence group peer very billion three our some we the fee that in we we XX to highlighted, at is is rate. us highlight Mark we execute our our normal are -- versus subject at strong continue pipeline, the But yes, our same and as challenges. ability times subject to

that towards that that go-forward the we strength part pipeline, repositioning that highlights I basis. an continue to we'll think we've show a alternatives, on that done area of and anticipate time over in is that important

of things a totally -- point I'll things to the couple But the Yes, we couple from maybe immune absolutely it's Maybe Kate which add right, I it's differentiate of think Jimmy, in AB peers. from just if a view. I is Equitable be -- the framework, of Mark. markets. Equitable can't

presence, performance performance also income. equities and our strong fixed very strong on on side, long-term major Firstly, on the AB long-term

the a cadence build for synergies really in not then many and is the our differentiator marketplace. utilizing account, helping that's And out have alternatives the well. as platform the of Equitable's So years I us with over think executed general

we've got business execute the some I we to a can we outperform which in peers. we're means yes, model things tough think market, well, continue but if in So

the then schedule market And seasonality because Okay. on quarter. of and working part weakness business, as in you of seeing teachers mostly that or business negative Is underlying the in Retirement flows for that Group well? the were the this are the

Nick. to The yes, This $XX in million of is, the fundamentals school is year. is better our both our compared This back seasonality. saw and last them. serve of pre-pandemic answer tax-exempt that's driven a We access The of enhanced we is need investments improvement lot the short strong. an to levels. We're by business technology platforms to

exempt, year-to-date continue net our So we'll we in about that in of on core, million and that segment is build which tax have $XXX flows, positive momentum. to

Thank you.

question Krueger ahead. will Please of next with KBW. from the line go Your Ryan come

what's point? Robin, morning. at in this amount your floating of assets good dollar or portfolio investment that's percentage Hey, rate the

environment. so the rate. are this interest we're we in also floating some which a rate within liabilities purchasing earlier We did have floating Ryan, rate asset Hey year, start low securities on side,

this interest quarter, is the exposure And billion. environment us on upside $XX for of high that's million in approximately earnings. in benefited net the rate the $X So approximately

-- rates, new generating it's in upside value benefit enables GA kit time business rebalancing period. with from we tool to the that the So in and the this us have in our we're along another interest

market? plan Thanks. taking of things done actions, are being offset of of to there weaker more that expense you're And discretionary the that then expense some in of the are outside terms are impact that additional

Sure.

total our program. expense on we're So

that target are value have reinvestments for to day, an $XX on as million. we're a of in net we net our track support businesses that million million We again, achieved that's $XX by growth seeing we We've today. have the in XXXX. remain that We investing and the $XX business

New we leases by coming those York those leases, in which We lock have up restructured in help into And some the saves big area. XXXX us XXXX.

So take business needed, secure remains actions to we'll well additional earnings. positioned. the if And

efficiencies early the remains recognize track. million Nashville expense $XX they'll the AB That move. $XX to million In from on side, at addition, by in XXXX,

we're to we're net there good as trends of growth business So and to seeing, offset continue the a going the deliver inflation in result. are to some earnings levers

you. Thank

Stanley. Dally Your line Please next the question comes of ahead. Nigel from Morgan with go

Hey, for morning. that. thanks Good

an industry individual insurance. So have for been life low across lapses the issue

You very impact. did your actuarial little there was review,

can details sizable other why performing while you additional hoping taking charges? provide are So block companies your as well, some there is to

Sure, Nigel.

starts positions way it ourselves. Equitable managed business think the has with I the and

credibility, how based create As Mark the assumptions industry I because experience. mentioned in Equitable, still we earlier, believe in not if and that's you we and believe appropriate to on trust emerging Even we there's heard we should avoid surprises we why individual, impact positive any small and And updates for of all group, see assumption protection. Equitable's business, that's on our USG the have. across includes It you exposure quarter in investors. set

LDTI, So able everything emerging see disclosure. good their people a to where that going off the and is it thing is forward are We to benefits as to is you'll think the Nigel, the be relative avoiding for And and intentional. thing surprises set at the relates experience that's investors. in and for industry assumptions another disclosures LDTI wanted

to isn't So financial in that build the there statements more today. transparency

financial you'll belief in see statements that's teams So at assumptions on you in trust coming if be the Equitable, business. here but future, see now have say core accurate you they our what addition, that's And management to have what in how through. in able the we is set to in and the

Okay, got it.

Second question, to business point, new are much cash some have very your challenge could target? strong. and that individual sales absorbing strain capital How been free retirement XX% flow flows at those XX%

Yes.

interest importantly, value this $X that So we're sales quarter, high sales. rate business, billion record and more be continues on generating environment. the retirement been But to another of us see it's We the that the tremendous. in on flows excellent for

get the type not constrained long new are business it. continue new that achieve business. and that to we support support capital for as to We we'll as margins of able it. in that for And We're business, growth we these

Yeah, thanks Robin.

line the ahead. go of from Scott come Alex will Please Sachs. Goldman question next Your with

morning. from good know to want the to ask I accounting. what on I but you the move Hey, conversation, guys on accounting did wanted have I

fee just attributed around I differently. the anything that because it if want the decline you other on I operating annuities. defining make Just think to earnings, comparability I be versus to understand potentially that across And earnings the across industry. operating have to companies sure are in sounded apples-to-apples to think to see, what like the And I with I at able companies going does share looking is just wanted are fees I'm given actual do

Sure, Alex.

next talk So and upcoming we excited business, despite we accounting focus the effects in on into go very about about January are -- year. effect LDTI to that wanting not the accounting

to to of against. the old you're While and we it's that earnings mark-to-market, years the accounting change. as time the metric be as function, expect, that It's is there at And the have is liabilities to first wrong a different so the going old system not end new is industry same than should metric amortization, accounting it's we economics metric. perfect, the the value changes XX the fair in DAC in it the going business day. standard should manage to bring something result, the that's If the the of changing operating closer the across that as does

more for this and in the higher a individual expert operating in So payout comment cash. us because as financial bring companies post will other this closer on in we're Equitable, become we to to can't in LDTI. at I'm statements. confident resilient that earnings closer And industry us an cash, ratio moves which their But not will trust the results

ordinary the and as that flow, sort as I cash the be think York that have the dividend shaking reserves? terms just And XXXX, as the we actions some the out outs terms you see the considering, much and helpful. of ins the fund practice capacity, do where of you'd That's of in New in able York of to taken in company about insurance it. of extract New permitted you've redundant cash guess, well how you to Got

Sure.

So mentioned XXXX. as remain on $X.X the Mark track billion we earlier, for for

a $X.X that of that about unregulated. reminder, XX% As billion, is

coming the wealth we a with investment from of insurance So companies piece AllianceBernstein, that our services big have management business. our contract that and is

of So we cash chunk big point provide that flows. structured a it exactly certainty to on those to

track some given billion remarks. we've in -- the flows million prepared but dividend cash flows given our flow the by mentioned offset insurance in the specific that that that with cash. or nuances cash Going market we that $XXX finalized I in obviously we've to for given earnings environment, $X.X markets, it as the should formula, we markets. It's line on forward, be see, the impacted plus this current are sensitivity The impact cash expect operating be by That's has given sensitivity we XX% will There change with be February. billion and the on generation approximately my given. minus in should and $X.X in be company

Got thank you. it, okay,

line Your with of will Tracy Benguigui come go next question the from Barclays. ahead. Please

Good morning.

if wondering Just wanted meet evolving the know to I RILA seeing upon in competition if to specifically, could considering product preferences and you the risk the market, there's of changes you are any how characteristics touch client product. and the

Great. This is Nick.

We robust First, grow product on see as decade by in versus it had age solution fundamentals this highlighted, drivers strong fundamentals over products right and led economic core roughly our these had billion portfolios a for building pie demand shift the the need. of anchor amplified baby protection structural that that's volatile given The sales innovation. this continue ALM affiliated upside And times. by to to And times. products the given us does we not new sales value. the ago, downside continue our perfectly of we that plus anchored expect more to Equitable capitalize on Rob both quarter we advisers that continue economic with was XX with distribution to is in pioneered and our realities. boomers the When resilient is with million our privileged that business and allows and to meet profitable reality, another $X access about that need change. The segments these potential very third of the matched, RILA through the continuing of Mark history networks our a core meet these [indiscernible] to that We we to we innovate way. in which

those this is interest are but you are technical more It's rates that? seeing you a can a little question. amortize capital factor, think side, right the the maintenance because so given reserves now, And Okay, IMR, lot, where a can't I of bit short-term smoothing realized any on stat great. normally, gains. you on neutralize interest pressure

do us, general balance rates for a positive IMR those the with We unrealized assets interest obviously, have currently economically, within we maturity. to but losses No, have increasing. held account are being

we the think to So book value that's value ex-AOCI insurance okay appropriate why and companies. metric at that's look as we

Great, thank you.

go will with Kamath line the ahead. Jefferies. come Please Suneet question of from final Our

morning. Yeah, with to just thanks. wanted SCS product. Good start the I

market in than hearing less first of get that are product One that could the detail? But rates are few in you pricing things just And and pricing to with we've maybe innovated of of guys sense we years, and the move favorable late. to when the the this provide is maybe were that they maybe changed how over the you seen place. today that's returns in if the compares a past returns that the wanted

I the quarter, the and rates as quarters, by appealing certainly done mentioned margins. a a our as function, the through a of and great ever it's but we and rational consumers. record growing, more margins It's that Nick distribution portfolio this great this but highest that as the pricing. higher a consumers pie the for also earlier, it's for interest mentioned, and testament benefited individual a received to product, market, Suneet, that's to it's and last demonstrated product work Yes, great the the product even retirement well few shareholders, in in But business, become

million to $XXX that looks Got earnings this. to I X, LDTI but mean it I it. $XXX it I cash higher, get because I that's denominator understand guess are lower. sure flow want is like conversion make just Slide I is million. on the coming going your on free operating like down And seems

behind just if kind you guys understand to is, going in with the legacy expecting, the does it to transferring what's but clean get operating risk kind an remaining block, of $XXX on earnings this fact, that you? just block, give are also hit you million to pressure accounting of that exactly and million $XXX want that up maybe So any thought around

Sure, Suneet.

changed. to profitability result, economically, accounting on how cash flows. in of no the reminder, have standard nothing's issuance. some more statutory the is we mentioned framework in VM-XX, the liabilities million we've that new of adopted closer it $XXX base a to view The And I attributed allows accounting But and new economically. shortfalls a charges fees we As the my value to rider the product you the accounting as on how at -- business to cover moved impact similar the on the view is as which new main that the legacy accounting fees That's framework standard, The to to they cash, to changed. remarks. driver accrue $XXX were that million similar

moves natural So we create we're generation it closer it's a comfortable think quite stability per that the to with higher metric, And and forward. quite going share and it that will flow cash. cash

sense no offload your just that? makes to of legacy the then it whether on change view But block and

economic cash -- within flows is There's this cash to our blocks. is mean, how again, I flows profitability are just No. or change this and in accounting. no accounting reflected the the

Okay, thanks.

conference today's you that gentlemen, joining. and all for will Ladies call. We thank conclude

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