Equitable (EQH) 9 Feb 232022 Q4 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 Fourth Quarter and Full Year Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator

of you Head conference. begin Investor Muderrisoglu, may Relations, your Isil

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

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

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

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

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

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

prepared I to Mark their call would the remarks. over like for Robin now and to turn

call. year, is and earnings the On fall now. Good the strong despite markets, within joining performance after in results important is X% notable for share, share a adjusting bond XX%. control $X.XX X, particularly and XX% markets down values Managing saw our for thank or highlight items, morning equity per XXXX's turbulent down which year. I what will you were Slide operating today's from Non-GAAP $X.XX per

of incremental one $XX of realized million schedule, and $XXX general account net our savings ahead target, achieved expense investment year have income We million.

to three. down core inflows inflows $X.X end in had management asset period addition the company We $XXX total billion business and compared at XX% a with quarter wealth to of retirement billion, of billion in $X.X the management but our year million strong $XX up in in under with X% year-to-date, in $XXX management. were Assets billion

mortality reported year. the experience quarter, hedging continue. full expectations. elevated we better experience year in fourth our in management reversed the see of million $XX and benefits economic favorable our this program While than was did The And overall, mortality our earlier

accounting cash have combined and $X share. end This We growth billion XXXX, at the our XX% XXXX returned non-GAAP of holdings earnings our top $X.X of payout Post end ratio we are flow billion. the of cash at a in range. billion XXX%. shareholders, the to the earnings, increasing guidance of XX% LDTI was $X.X year generation adjusted to of at and we RBC of XX% changes, operating free to cash expect our In XX% guidance payout per operating of

benefit its improving orientated asset retirement continued general well. year $XX and points XXX increasing advice flows from extremely helping business values. increased and over for products, We management momentum up the demand billion. see with in Seth businesses. retirement AB, asset We pressures on navigating his over industry-wide team total the to and are At premiums and our the fee year, CarVal annual the Investors, and account completed margins new of by our over We've both rate shift acquisition the AB's mix Interest benefiting rate X%. the in year basis X%

have business new rate than strong yields average sales, the resulted the higher record in value rises, On for year. the XXX points with new yield. general money combined account, basis interest portfolio are And

management our shareholders. highlight retirement, businesses. unique asset Turning significant we and leverage our to stronger are opportunity for and to Slide synergies X. drive We businesses This across demonstrates the advice together have value

account $XXX through capital XX% with XXX(k) supports of private deployed coming the income growth nearly our higher insurance markets platform, meaningful acquisition year-end, institutional lifetime in of the Similarly, CarVal AB's commitment general solutions our business our in billion with Investors. of year. AB's see million impact of supporting $XX from business Equitable's premiums and yields As have in we to the

forward, from passage X.X SECURE opportunity the benefit this the Looking a Act. as to of largely we untapped see

Turning advice. to

to core our approximately proprietary our Advisors addition realize this sales premiums of billion delivering continue benefits force We Equitable rate. markets, management $X.X In year, sales. the of premium billion XX% $XX supported of with we in $XX.X the to X% retirement XX% wealth falling And are our compared growth to up strong delivering retirement, despite in billion retirement year. prior a inflows, organic

We strong new also and rates. of interest business value from record delivered rising sales the benefit

pressure, with remained strategies, $XXX $X.X organically active industry, excluding last for income the along management. rates performance from redemptions the Flows wealth in million putting AB's Despite under performance active expected rising a story consistent outflows and year, the across retail pressure total relative asset billion in Japanese but fixed markets, the short-term with to saw AXA. inflows, on for by with year Turning strong, performance fifth and and the is seven. grew growth AB this in U.S. municipals, and private organic business the equities driven

on markets billion, markets on XX% the up pipeline. the to brought acquisition year, resulting platform and a healthy focus institutional and fee CarVal, the improvement a $XX Importantly, AB's strategic rate in of private our X% private

net In product segment in and advisors higher opportunities we and around X% second over organic was accounts, growth up year and to cash AB best business multiple a investment meaningful Equitable, leading capabilities, next to breaking which delivered XX% model. rate out track teams in and after year Wealth for billion were wealth $XX.X challenging look business, prior of see sales, Through advisory our X% the forward year. to our X,XXX We markets, record AB's this further of productivity providing in XXXX. a disclosure record our management of importance advisors inflows, fee-based driving long-term growth our quarter, Despite transparency sales building $X.X we over billion our in reported flows. earnings Management attracting internal third-party and

results fourth quarter year and from discuss detail. call in I turn over Robin? will Robin more the now the to to the

Thank you, Mark.

items share to billion X. for non-GAAP We after adjusting earnings Turning reported per operating and over Slide in notable in $X.X year, the this period. $X.XX $X billion

mentioned, As results to offset ahead achieving our partially impacted earnings the rebalancing, target plan. were prior $XXX market million of execution year, general compared by which account of headwinds, our income year our of performed expected continued as Mark a incremental by

target In on in and addition, $XX we savings million XXXX. achieve of as in our realized track net expense retirement year-end, $XX of our million remain businesses to

we million in AllianceBernstein savings XXXX ahead, from our with also benefit to Looking relocation. in expect $XX Nashville at associated

results. segment to Turning

business individual solution had achieve with for portfolio the a value. record performance, we the offer and of reported during of us Individual we items. strategies, the this premiums Total negative after $X.X new adjusting start markets. Retirement, operating the with year, same Results buffer In have clients. In businesses XX:XX helping at a demonstrated would that sales market for volatile rising the were their demand client record XXXX, XX% XX%. billion up all-weather for portfolio strong return our absorbed, demonstrating capital significant a year fully earnings the benefit reflect if the we provide Our X% bought continued XX% SCS year-over-year. of But structured an these rates, individual been notable impact of up with solutions

with variable after floating allows part the us of were VAs. market and market most premiums our a XX% Equitable year-over-year. notable for up to competition Retirement, which In with and differentiated profitable across distribution, heavy items $XXX fixed operate retirement the RILA's products, Group operating with our million in In earnings rate is total through adjusting

inflows, serving benefiting the advice tax-exempt market. our channel, primary to the and over is Advisors schools the Our from across America. market differentiated teachers K-XX educators delivered in exempt Equitable net provides XXX,XXX educators Tax

the This introduced year Equitable in-plan also subsidiaries. demonstrates retirement between with retirees guarantee The long AB fulfilling us channel allocation. so allows managed to through secure We segment, which an synergies our Retirement the they solution our institutional income that can and to an product clients managed provide lives. allows within to income live AB this benefit Group XXX(k)

associated business XXX(k) expect need to to SECURE at in ABX And us from nearly flows continue the XXX large earlier retirement income see year. we Act million the growing the retirement address benefited Our in this plan to market. premiums for enabled with the

Operating from management. the AXA low positive flows fee AB were full excluding growth. for earnings its million. XXX fourth benefited consecutive asset to organic Turning Net year redemption. year, were active of

ability line challenged market. their of and equity the with AB’s the remains Long-term to XX% to of Equitable. remain growth, last in permanent leveraging profitable continue distribution broader While of we deliver capital And in with was from and income short-term performance five the years. strong outperforming performance strength confident XX% organic fixed over

this were Protection million XXX In notable operating after earnings year. items adjusting Solutions, for

year first compared In prior and we’ve oriented shift lives XX% growth the strategic continue X% We with year. offerings accumulation premiums and from now, our strong to up to with employee up VUL total and XX% towards in premiums up benefit covered year-over-year. X% benefits, seen XXX,XXX year our premiums

Taking business to our our coming Protection Group and on XX% back, with a shifting Management we make Asset from mix continue progress step of earnings over businesses.

enhancements forward in our disclosure highlight will our we businesses. look Additionally, two to to further that the making of XXXX value

spread our First, which we is run continue will Retirement our core legacy segment the business, oriented between to Individual which more business, will split off. and

to And a see Corporate shareholders. the of delivered. going when cash a attractive to XXX our break it’s business a flows, due faster and are with This we from business out, long-term overall offers generates Other. free the you’ll Equitable Management business that growth unit strong cash Holdings out in and new Wealth our part growth proposition for an is segmentation Together Second, annually. it has break we business million growing value in the organic continued

XXX X, mortality, $X.XX operating results I’ll a lower million basis, share than a quarter. third quarter on our which highlight provide company earnings primarily of the elevated due We on and lower to a the reported to Slide XX% Adjusting year-over-year for non-GAAP for non-GAAP per share, or quarter, XX share, per total notable returns per alternative further down $X.XX earnings million or a the quarter. XXX share of million in operating per are detail the on in basis. comparable items in moment Turning

in results. a XXX markets We basis. million net point-to-point loss GAAP higher quarter the driven to on equity reported Turning by a

Looking being better matches forward, our our which be liabilities fair to net LDTI will hedges. reduced valued, volatility GAAP due post economic income

We on have appendix. and drivers provided the updated more in sensitivities detail

market continued ongoing with strong Quarter as volatility was momentum lines. our was movements, market line end of business by offset in across partially all AUM

light model, which Our account its fees of from should be results business values. quarter our majority a of earnings based off considered for the in derives of

basis. Our earnings markets sequential equity an both reflect and annual on lower average

said, product, XX a has which billion and spreads continued demand benefiting from also leading the are our account earnings generates general we for interest and by based spearheaded That higher SCS rates spread value.

half second generating of investing account and year. we’re our investment Within yields And of result in net of value, a X% we’re the the levels flows. income future will as record new general money well, business new which in cash higher

I’ll experience quarter versus chart accounting we dive put deeper quarter perspective, shows better mortality for mortality two in On fared results. GAAP last COVID-XX page this to Slide each the guidance. over years the our reserving X, after has actual The in our how fourth into this what expected our on

can back As assumed our GAAP we what see, eight looking in than you reserving. quarters, experience our better is

the claims was primarily million higher than saw driven flu the age than is was earlier and expected, due Mortality which In quarter, by at fourth flu-related saw larger policies. we XX likely elevated older historical which cases trends. fourth we higher peak frequency, quarter to

clients Protection our which reminder, affluent VUL through As business higher primarily amounts. have our serves mass face a policies,

volatility, for generate the guided Therefore, the take cash over of is policies does into of our you’ll the these based the the shareholders. accounts not double reserving life but these contract. and collected digit some for IRRs fees GAAP off see policies account

Over expected. reserve we the favorable year, our results. has for long more the XX And our full term, than been year mortality better favorable after was past our in even expectations. the In it XX was mortality million XXXX, accounting GAAP more million quarter than fourth

mortality in with is preliminary performing line year-to-date Additionally, expectations. should results, have

expect million quarter but guidance do with with comfortable Protection volatility we forward, Solutions. earnings XX our are Moving per

X. Slide to Turning

the XX% a of five years. return our than to return in since economic Throughout span X.X less in the with At end shareholders. shareholders markets includes more us million total brings over adjusted to despite fourth or XXX enabled are items XX% to the million resulting volatile per quarter, non-GAAP in cash free shareholders of which to to XX% share management our billion our in cap XXX billion consistency return capital for notable X than continue the due able flow nearly basis management and we repurchases our XXXX. prudent to guidance, our on a to health return This Our initial operating capital IPO capital of a of year, the earnings of pandemic of return business. we of our higher market

share shareholders. enabled holding highly a return ability RBC company We basis, movements. to year by at ratio the the X On match with closed XXX% to free XXX% cash targets. flow translates our and cash generation their of the and per was the to each strong program above of capital billion This our a this over hedging organic market respective effective of

In January, of conditions XX-year April. refinance we upcoming to to took market million in our advantage XXX issue note of maturity a

not new due meaning we forward, comes until need XXXX, Looking our will next in then. maturity any refinancing

no authorization total approved date. additional has X of Board Earlier share this which week, repurchase an our authorization million XXX expiry billion, Directors repurchase in bring of our

business our and flows. Lastly, predictable us generate more flows cash and enables towards model capital-light mix cash unregulated a stable continued to shift

expect Looking subsidiary in forward, of dividends we billion X.X XXXX.

will be the moves LDTI Our changes closer impacted accounting the by cash accounting flows upcoming cash not flows. as to

As result, post XX% to guidance our a payout LDTI. XX% to increases

now Mark? will for turn closing the back I to remarks. call Mark

deliver a value management, we our markets. consistently strong we continue to year, value closing, In Robin. capital despite delivered this turbulent Thanks, protect shareholders. fair to performance Through and

have We our cash billion generation $X.X XX% strong XX% a position volatile LDTI. expected market capital supports post and a year of increased this of through target payout to our maintained

and leader in we asset the pricing, continued be market, sound, and our can remain products. momentum Additionally, economically a seen retirement demand in RILA management as in

subsidiary our mix platform to for growth. provide favorable with continues a value strong a shift driving and their proposition private AB While markets clients

that We and employees, of course bringing our results will continue the Equitable to to our relentless shareholders. clients, commitment best of benefit deliver in our order

to in of early And supplement, Looking the LDTI ahead results. forward, we on May that accounting hosting first to an April, further quarter provide be we a pleased we and changes restated businesses our will in Day announce will provide early ahead. reflecting financial insight our are opportunity Investor

now With questions. will we that, open for line the

from of comes question first Ryan Your the Instructions] from [Operator line KBW. Krueger

is open. line Your

Hi, good question was My cash free first on flow. morning.

$XXX my assumed the about XXXX and the sensitivity think $X.X levels, still are million year-end is that's will at up. XX%? question I markets then billion first follow per flat I And

for billion into year-end additional we're free it. XXXX. Good and Yes, of going of provide the doesn't morning, levels Ryan. sensitivity cash based to pleased That's $X.X any market the guidance built on flow market forward have

Our cash million we to sensitivity the that market XX% previously, provided of $XXX of flows remains.

as when flow You've had XX%. seen we result, a cash this from $X.X that subsidiaries. we And billion, last billion year $X.X operating is that our free declined year give guidance the markets can

year And be Got current more impact it. the sensitivity or would next year? the

impact of would some some it – it XXXX. impact would XXXX would this It and of

XX% prior insurance of you now As the than less from part, the the on recall coming formula. based flows which year's cash are is dividend company,

in So to flows that cash sensitive less will be XXXX.

is you you've completed any now on then you to give – that can the potential there of that here? general expect repositioning upside from further NII? it. And And more Got sense account repositioning,

Yes. the finish target one We're to year advance XXXX. $XXX million pleased from

think to I forward, continue to general from expect in can benefit you higher us the yields account. Going

period. As I coming the current in mentioned with we're from above and the call, at high Mark X% new yields money benefiting in yields

our continued SCS And product. time, with so over along earnings from flow the that growth will through

in In $X XX% capital addition, or to AllianceBernstein. $XX date, billion committed the we've billion of completed to

the $XX continue platform, will the with million, today. is complete upside upside additional private an we along to build additional markets once at which billion So we AllianceBernstein approximately there as that, be to $XXX

environment provide on guidance from more more come Ryan, business continued to benefiting May. to Investor in growth. continue we guidance rate we'll the see and Day – And the So the rising upside

the Your next line question Tom comes ISI. Evercore from of Gallagher from

Your line open. is

Good morning.

look results, income earnings, is income negative of going volatility on net Slide LDTI around If to I but to XX. want that. question First million at $XXX $XXX Robin, how of to I just operating XX%. net XQ says, it had is interpret million. under you decline confirm

we of directional about on spread been what you it have going accounting, If – new would new the overlaid the – forward? XQ give would indication? should new the you kind you results, some expect think accounting and math can If

Yes.

So our moves to LDTI, forward LDTI GAAP to going guidance Equitable you value, equity we Slide for will you under net in is see movements. as on income what going tried that based point reduce closer I'll fair is accounting provide just to the sensitivity as And forward. XX,

equity X%, had by if $X old increased would adjustment billion in the we under a So GAAP income. the markets net negative accounting, have

flow $XXX designed the cash the increase in on million. growth and free on full value, forward, major That's get April, X.X%, equity year we report back is going the quarterly LDTI see be fair difference Now a in assumption to once going liabilities equity in as to our adjustment our the still closer basis will markets if numbers basis time our well. forward. program protect And the to supplement on financials hedging going updated a the as you will financial move

That's helpful, Robin.

I income right looked Does an and that some you – using negative precision of just almost indication. use would been math the rule number, thumb this of net to have a again, me, $XXX million million that you? for I – a spread that at translating just sound not I'm quarter, income minimum, to positive $XXX here, gave if about net presume. So just looking I at If directional I'm

point, LDTI it XXXX, GAAP under would proof would gain old LDTI, the as give year. accounting me net value been well be moves income that to fair can The positive if our to at income LDTI that economic you as financials, $XXX less to income income. closer $X.X have positive a going net should That go does I been about right number forward sound And under net for billion the model. you that goes I million about our the post it's to negative back a have look under think full year. Under net point full as volatile QX to

was really helpful. other Did deal? performance. that And would and drove the strong there RBC? generation That's another XXX% hedging mentioned items? and one-off there Or I could Was have capital else you organic expected. hedging? came AAT I in, If Any reserves? in know ended all release RBC what more anything Was just organic above sneak I one that you at reinsurance capital it

Yes. growth as able position, The as ended XXXX, remained through the reflective of one-time $X the to year, Reg. the cash of at capital actions reserves and the were in the we quite coming you all redundant our businesses. in And XXX the No mentioned. strong, we've at Holdco, of came at we billion in that within organic RBC That's items. time, same mitigate taken. XXX%,

proud accounting actions economic So we're position of quite issues. hedging program to uneconomic our It the stand. we'll that reflects management we capital take address and

Thanks. Okay.

the JPMorgan Your comes Jimmy of from line from next Securities. question Buller

line is Your open.

couple good a questions. had of I Hi, morning.

asking from think, quarter. better last or were down terms environment your the And XX% the into conditions? First, uptick fairly buffer companies And the market. on them other given in in are annuity just SCS seeing you lot market. competitive are the like about sales, year, gotten while seeing just rational? I It absolute an Or strong that sense, competition this you an of have in and act fact partly seems a

Yes. Nick. This is

Robin record benefits but We're net First, we quarter in interest Mark in little fourth business soft, a and following our saw and record And and/or as was give and flows. economics rate the highlighted, the value positive as improvement reasons. on new we like year, higher you our helps to highlighted volume, full pricing we where yes, flows, for over consumers. focused for a of the really value $X play environment billion sustainable positive the we the

need Comparatively being main lower the is different and of is are as There advisor risk fixed market over and entry to result, by enhance dynamics annuity see the going competitive advisors. distribution crowded. RILA the sold space as consumer of our to make registered they the to the nature And credit can We dynamics players are The non-registered the the distribution XX being product. value. speaking, increasingly given fixed our belief a create players. given annuity margin sell be fewer to players First, is dynamics. cost

that is consumer really proposition. second The value

that on in our Fixed a would are privileged protected have the the potential. on gives cover are market Equitable the note. need the means which deliver I is of to or principal And upside say, value finally, don't players are players We RILA pioneer proposition chase client advisors and more annuity specifically understand sales deep to whereas focused launching X,XXX protection, buffered Advisors strength relationships, over which focused distribution, more we costs. equities, are

and we current We So structural demographics. on where to of positioned well play. we longer-term capitalize volatility we're think the the markets like the

would, minus guess, I expect Okay. for which And you than, flow, cash million main tap and need so, I significantly this billion the buybacks into is do be cash then liquidity on to of dividends? capital should and buybacks to keep? your source the and you flow you to well, that higher around do given guidance? which expect think, be free as Holdco expenses your assume going – $X.X or what Or So XXXX? we $XXX Holdco free Is

Sure.

flow during guidance post LDTI billion of the our cash as as think XX% top we I proceed Holdco that have of payout be $X.X on basis how XX% generation a flexibility going ratio that on our the earnings the free year. is subsidiaries, to we well So to from only on depending not have

Holdco. we quite the of cash comfortable, feel So the we're quite happy with upstreaming and from

buybacks, the liquidity into that's be coming terms is company? holding Holdco the limited would up existing possibility you your well? in Or But as cash from a tap to of Okay. those there

limited. not it's No,

forward. comfort LDTI to As give on we're that of both XX% how I with said, guidance we'll to you should going XX%, proceed going stick that and

you. Thank

from of next comes Your from Ward Citi. Michael line question the

is line Your open.

annuity objecting is purely core wondering, the I'm look any be going you breakout, to All legacy? as include you should it legacy might it traditional right, spread-based think about way is guys. SCS might segment we And further the to derisk VA? thank segment or in just

Yes.

as billion in quarter. $XX our Retirement Individual we the of So break about business, fourth out AUM it's

about the $XX AUM. general be has leading business in Within billion that a account core will our SCS product

business In VA, addition, be continue related floating outside annuity business downside rate VA will protection and variable legacy was interest financial which our legacy businesses as breaking product. written crisis That's to go be pre-financial be legacy the and help. And we I rates. that in runs to think off along AUM. should runoff by feel able our at only crisis, distribution a The time And total XX% more that we're going franchise to as to our has the is strength getting portion out forward. better have over clarity And management, we wealth you'll those we think with today variable value in we by business how for our providing reminder, appropriate value as overall. as our of of that the Investor don't annuity though Day and today that

there? derisking any activity thanks. the Great, – related further and to And considering legacy,

optionality shareholder We'll co-mingled that between always value. the work us if give to non-New those we New the time thought continue shareholder policies A policies. it over York We'll drove And and look York. value at options should on separating over are to drive reminder, long-term.

And thanks. management – then wealth one so was Okay, second breakout. my on

of sense operating segment? Any earnings generation. from earnings cash – annual of million expected $XXX that mentioned You

that be but in on so We'll that's the out we earnings. our have LD you'll QX in Day, Investor – financial LDTI of only also the supplement the to results, the provide in ahead also to segmentation segmentation, we'll earnings, through going show but operating able will break more be released not our April, modeling details

thanks. Okay,

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

Your line is open.

with timing Michael is the transactions? And the Kligerman, an of first Is I that conversations a in about New on Andrew. that separation very question Robin, business. York reinsurers how something that’s having you okay. update around that, then, dialogue? along? And sort are with maybe coming conjunction It’s my that’s potential active guess of

In to you we York on We retirement. Thank already going were York New focused that. uneconomic you, new resolved with and XXXX, individual be is question. our know as Andrew. your the of these Appreciate addressing businesses Andrew, non-New on business first our focus separating Reg We’ve done a between XXX. policies. and – in with XXX% it XXXX,

of outside then being separating for that policies. New That New operational notifications, business a York cetera. does now non-New work business the of take we’ll work, year And this York client It’s written on at. lot time. et

time So optionality and that over provide should that’ll us take some time. then

Andrew. legacy the no to Mark, anything. annuity on to side, on see verbal guess I need the It’s of it. we do open keep We’ll course

last we reserving de-risks through [ph] hedging, get continue we I our free of that growth showing we are and portfolio and that buybacks and can the through from where right in out we our have the as think seen COVID suspend we’ve show cash year what year didn’t we XX% in to it. the cash flows,

positive to market that money Andrew, did needed pay would now. else we to seed someone the Venerable a there deal, remember, the when for if So we prove you that and was

it. looking sensible at to not to But something open is that we and do need we’re economically not to. going So we’re don’t

it position really. So on that’s the

Okay.

it sounds… So just

off It’ll run naturally It’s like off year. over time. at X running a billion

Okay.

it So New you’re the out you’re very York thoughtful by and… just those blocks way in being like sounds separating positioning

it it we’re flow the is – But and if cash as causing on us or that we’ve terrible And would – consistently isn’t seen there’s generation giving exactly. for before. it’s pain us Yes, was course you volatility, shareholders generating act of we through. the cash coming

a we burning bridge. So feel don’t it’s

But was take it. if we’d there on do deal something there was to a We attractive, have it. that

I Group sense. get the quarters range And had It that. benefits million was are Q-over-Q, of seven headwinds earnings market thought million, component to would’ve the kind rate Maybe effect. down dragging rate of in a but lot an spread in that XXX environment to drag. at – seen Retirement – the the would’ve the over the relative real prior equity a offsetting benefited a the million. I Makes just substantial XXX But quite shifting of XXX bit line to

driven color little two what’s last going decline a forward? maybe in over kind you of the coming So the those how earnings see and on quarters

Andrew. Sure,

Group in came rate at that have business. a AUM at we Retirement million in quarter. going the level So forward business run in about that XXX good of That’s that the

is go what’s is made really over you And component it coming you that when drives the quarters, along with in alternative addition, AUM variation. difference If the back big eight markets. income a down see the

to guidance. normalize we the end reminder, a As bottom our of alternative

X% end. end the low XX% on the So and we the on normalize high

we’re that’s higher quarter, to have be happy in as it’s when from big over impact power all the quarter the million In there, a well. deal momentum see you’ll was in look you yield see going first certainly earnings that from the to at X sensitive of it our investment Atlantic But as The Global like quite well businesses, So did delta but And equity fourth the is business. the with time. roughly time. we the we’ll benefit markets. just over you

you. Thank helpful. That’s

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

open. line is Your

Thank you. Good morning.

with getting internal New non-New Just your done, that in-force mechanic York reestablishing Arizona an York a reinsurance quick follow-up from entity? is of agreement on separating one

work But think process separate an of our to Arizona to It’s New we states New across have. we continue part to certainly can regulator, regime non-New York of economic other XX operate with York to practice York in from it York. in good to The the it’s the the outside policies business is We’ll New the policies will the operate those easy same and regime. policies not prudent company board. so the York that New separate operate it’s and reinsurance

think earlier, mentioned it’s good prudent do to just mention so. we as practice So, we and

that insurer would filings York in we’ve Also reviewed you Okay. lead first like fourth then accumulated it New XXXX XXX and nine organic appears million And it the dividend Equitable growth statutory sounds had XXXX. the ordinary quarter. have surplus in through of statutory strong about capacity months the

cash imply than would So flows potentially regulated coming that greater subsidiaries. of from your XX%

source to from regulated of in room any in is the X.X of With funds XXXX? return there billion subsidiaries, excess

LBTI post to that billion to shareholders, earnings, our again X will flow share. reminder, cash we we since we’ll free is IPO, that, Sure. capital so XX% The for always XXX% to guidance return stick when do XX% that’s returned per prudently

few industry down program. in never that the shut one has the that We’re

over it’s not but since it’s to that only do returned so. a consistent So cash and continue and we’ve time IPO, lot stable will been of

time The a are York we coming the Wealth A subsidiary now and AllianceBernstein, then our of company. is contracts file is more, entity we’ll piece subject New over prudent it The is also which stares to finalize by about and with from we New consistent of [ph] XX% billion. but investment K less cash, and formula, support XXX regulated which million there’s now, the the expect than the management Management always sub. time the X.X more, And if that to capital should in we dividends from to business be returning coming the it’ll York the we continue have big shareholders.

Thank you.

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

open. line Your is

thanks. Yes,

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

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Yes, thank you much. very

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final Goldman comes from Scott Sachs. the your Alex from line question And of

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got. Got Thank That’d it. be I helpful. you. That’s all

Thank today’s for your call. conclude participation. you conference does this And

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