Equitable (EQH) 3 Aug 232023 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. My name is Bhavesh, and I will be your conference operator today. At this time, I would like to welcome everyone to the Equitable Holdings’ Second Quarter Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator hand Relations. over now Equitable Tom Holdings Investor the will to call Lewis, I

begin conference. may You your

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

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

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

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

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

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

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

you from we initiatives. guidance and thank results strategic slide X. well today's and quarter morning, provide our five will Investor both our the May presented as second against Highlights XX, quarterly years. as joining Good next are On held our call. for strategy for progress go-forward Day our the and on Today, we

Holdings Equitable unique. is

value in all deliver management chain. enabling the to participate client retirement, superior returns asset and We of and advice, businesses, have integrated parts us

notable adjusting included period returns which elevated lower in million This or quarter, $XXX the earnings non-GAAP $X.XX items mortality. per and alternative share, operating for were

had quarter, inflows. share per We've compared up X% of record year with record of the and operating up net quarter Non-GAAP billion prior $X.X this retirement, was first $X.XX, year. quarter a in compared to is to X% which earnings

reported return outflows redemptions which outflows. demand holding million includes we a fixed billion pressure low May net management, of positive approximately to AB's for of in including income and as billion, to offerings, in our $X In asset with a fee here pre-announced flows April, generation X $XXX in active businesses from delivered to-date, of July. million Collectively, our insurance cash $XXX from have dividend entity offset June, equity

we confident achieve are Given our of our guidance progress, to generation this XXXX ability in $X.X billion. cash

a Our of to capital approximately combined with XXX% ratio as has ratio remained XXX% RBC resilient, of Company insurance quarter-end.

shareholders available at XX% Holdings enhanced We target We also returned cash. financial in-line repurchases, of $XXX ratio. payout $XXX XX% to billion with in million quarter, maintain continue including our flexibility $X.X with to million to in share the

over last come of over We compared non-insurance sources five flows have today, and taken regulated the meaningful cash optimize years structure, at XX% now capital only to XX% our actions to from IPO.

With forward. minutes. our the quarter, details few of in we further regulated will internal flows Robin, this transaction on stability reinsurance a provide more improve and moving cash completion the this of diversify

strategy in growth While our businesses. our can both progress early it we and good days, initial core report is against adjacent

have benefiting revenue times our XXX of to on this earnings Management compared quarter. the year-over-year and quarter our the quarter, were three continue average inflows XX% equitable net segment, XX% Wealth more planners Today, rates new X,XXX see prior higher of out in advice generate from In billion for accounts. sweep $X.X than who cash interest Operating we up with adviser. wealth demand to we advisors,

Strategic track our Investor progress from pleased against twice with intend including guidance rate to at a on at X% continues the the income year-over-year improvement billion, AB We're In now is account. AB. and grow initiatives general the following productivity XX% AUM, private incremental to last our up provided year, savings which and reaction markets, to a acquisition track, CarVal very fee are $XX we least of generating behind year. Day,

Turning to slide four.

investment is ensure greater three, generation business. economic strategy protect built premier capture to growth policyholders across drive a Two, us leverage platform competitive on wealth, AB third-party Our value capabilities; cash diversified our private to; through and edges, fair which and distribution profitable aligned management; through equitable margin advisors partnerships enables And new large One,

our All execution. of of this is record track underpinned by

we adjacent are We and are our businesses, All whilst core and live growth. good which growing defending the work. and future communities we in businesses, in forced scaling focused on for seeding ensuring

by an XX% We have non-GAAP XX% billion by earnings, defined goals, payout growth XX% non-GAAP a operating on XXXX, through of through of success our to deliver generate to generation to annual operating ratio EPS and XXXX. new increased rate to $X XX% cash to to increase financial XX%

On will highlight progress I slide we some against early five, strategy. execute as our

asset first and retirement to flow Our is and drive priority businesses. our over defend cash management core generated. XX% today of free grow These

two-thirds value putting track is generated businesses today. AUM business through conditions, strong approximately our forecasted $XXX $XXX us Year-to-date, market new in X% with of level half retirement current retirement core up and and to of business million. the generated XXXX over activity million new our earnings core of on we Our year,

X% with time up to asset points AUM a down combined we've AB, As a higher and this quarter, cycle, fees, quarter's is Bernstein compared lower services ratio. reflecting are this a challenging year compensation managers. from seen prior earnings year-over-year, revenues, performance is and lower margins basis Research for the XXX more At

points benefit by with close January, basis AB headquarters helping We of Research initiative. secure now XXX AB will of complete. we of venture of and this XXXX. relocation to Nashville points. The in in run-rate XXXX, of the Bernstein expect on to the to $XX full the XXX to annual from is completion track savings XXXX, million move the, million to of from is $XX X AB And savings realize its QX once deconsolidated, half expect joint first Equitable’s basis the SocGen improve margins

And build high multiple use capital synergy general capital a to is in important alternative initial to we bringing we announced help commitment. $XX faster AllianceBernstein. our growing in strategies May, billion $X.X billion. the deployed the we One commitment $XX have have billion $XX account To-date, total a of the further billion of

of grow is billion opportunity of XX% average, over strategy the rate constitute element we three have a $XX XX% management businesses. with a AB's been the pipeline AB. of faster markets rate. acquisition to at channel positive, to where are base. fee private is institutional alternatives our contributions adjacent the of now businesses fee times the year-to-date revenues scale at asset pipeline second that have as representing and These smaller private The CarVal Early from

growth leverage markets strong X% to and business QX, assets. a outsourced, annualized our in platform Management, is organic in focus $XX fee to good the operating based advisory Wealth now totaling increase In our and long-term provides technology given This quarter, X% grow billion. supported compared AUA is

us large build opportunities licensing final and AB's brand it's see In future. phase growing to opportunities order provide we market. footprint, the long-term success, important we serve In recognition asset seed we ensure and believe China's cycle, to in we would turn invest for on which and to will global slide of in enable to to are leveraging agreements Please strong Asia, six. domestic through the management, significant continue businesses that the their

benefiting positioned insurance billion manages to insurance billion AUM. AUM, grow the Equitable. from AB to is addition $XX managed with the XX $XXX years of approximately third-party uniquely also insurance relationship over of AB Today, leverage to Equitable, expertise, in assets, for third-party managing

Equitable leader We a corporate are also this last in optimistic retirement is this over from and benefited both million pioneering about year. prospects guarantees in-plan $XXX AB plans. for a category of AB ago, into the over and long-term Equitable, decade incorporating premium space,

to large our plans onboarding BlackRock our from benefit underway. for to the XX addition being partnership stands made onsource Equitable to-date In by with with AB, partner progress and

their We our bring delivering and inextricably contributing and business society to long improved like they through stakeholders each this earlier fulfilling our which to performance secure business also firms performance We ratings believe so focusing second help report live value meaningful sustainability our on released in disclosures outstanding mission our we resulted are year, demonstrating Sustainalytics. of to lives. linked And by our this clients that included financial progress. well-being and and can

within the rated quarter We industry. top have equitable recently in our

with mix, business we expect A towards have total after our seven. associated of further flows, with business and is to our cash be XX% our earnings shifted IPO of diversify X% earnings legacy our XXXX. today, IPO, X% nearly to to product lower strategy our less capital, than business meaningfully higher earnings slide its and we only to our Turning contribution since value orienting both of Since segments.

to over now turn into Robin? will quarter. I to provide the additional insights Robin,

Mark. you, Thank

the will to on touch Turning results eight, segment I quarter. for and slide consolidated

cash improved strategy, execute to Mark profile. As you light in mix we continue and just can which see our our highlighted, business capital flow

legacy show Our our of operating businesses. adjusted trajectories highlighting having similar for earnings to of notables million Wealth business those Management second our the business, a different non-GAAP quarter $XXX weight

While our management and grow. capital to retirement businesses light continue asset

we me first, the results. results go on Let turning to before segment deeper consolidated

retirement, SCS is the industry record from $X.X is Our core SCS continued This higher leading and of In individual record driven in had flagship year-over-year, strong net us total, retirement billion spread in mix. has yields predominantly two-thirds billion earnings of to led in flows income. benefit and sales, of higher to enabling the sales XX% generate retirement by $X.X outperformance quarter. for earnings our up growth businesses by account products. individual which the

the to retirement in quarter. beginning still were a I net nicely, than on $XX was inflows fourth due touch closed down earnings million teachers of mortality expectations to were led will this volatility, which higher the the long-term the Group first into market. year-over-year, than continue reinsurance it Taking expected we that our as earnings moments. tax-exempt business few which performed at quarter, K-XX Protection in but by our transaction see lower account,

of for Across that $XXX notables, new earned over million businesses, the have through the half on quarter. retirement for the of guidance Day. us of putting our full-year value generated in provided we the $XXX track Adjusting three $XX the solutions business year, million at for first protection we million Investor

mix AllianceBernstein of to earnings the our asset higher now which fee its to billion business. Moving AUM. $XX is in markets, continuing management strategies XX% shift quarter, this private of generated

Additionally, the sequentially, funding now place took after is some first which institutional quarter. XX% billion, the is even pipeline up in $XX

had the $X Munis] Munis inflows of in are executing of quarter. billion net and our in We also last [in on growing strategy (ph). Asia

X% Our by benefiting sweep the million $XX earnings emerging Wealth business adding accounts, mix sales insurance strong $XX and in our rates generated year-over-year, from cash quarter, this of improving Management and million of advisor asset demand advisors again Equitable the distributions distribution fee classes. revenue insurance client the and for which reflects year-over-year. differentiation includes our as investments both higher offerings, This holistic of

just business this of represents X% our legacy now earnings quarter. run-off Lastly,

net quarter Second outflows million, expectations. with in-line $XXX were

as generation cash Over block coming contribute this the this capital business will release runs years, off. and

share, and comparable X% $X.XX first up quarter. the that were million. at but returns our on operating X% long-term XX% the looking to items, total compared basis, million first income or per a item by Now consolidated positive is quarter, quarter, but expectations. to operating our down were million or million the by notable This a non-GAAP predominantly below the investment reported earnings year-over-year. $X.XX per share non-GAAP X% $XXX share, a in earnings of per in net of $XX after tax $XXX was impacted driven we alternative up results basis, on $XX were for quarter, year-over-year adjusting notable After of Results which compared

offset real were gains which experience our traditional equity and in declines portfolio growth in Our by strategies, estate private investments. equity

it let Now, pandemics trend a shift from $XX to speak notable the the which to continued item in the This endemic. mortality in quarter, higher million. resulted transitioned we of the in of heightened as volatility continued saw from COVID, more me

from is are consistent claims. we mortality future higher with older we insured age our of in which This we're the hearing what a believe pull-forward Specifically, seeing reinsurers. population, is

environment, typical expect million to mortality mean range would in point. a earnings, of $XX the we a standard have being $XX one results, we deviation $XXX which a In in center million with would would million

means the next near-term in pull-forward lower of on to the quarters, of this be which guidance range we as $XX we $XX to a few million would for would over end segment. to point the expect earnings Given claims, million the a

sheet guidance, near-term important cash It later However, balance higher only gap note to will claims, change conservatively time as not few will expectations pull-forward as free rate. exceed quarters, be there economic our in is will or our next a impact have more expect statutory positioned. of means flow $XX million claims conversion trend are and our this continues, limited reduced on cash they increasing if result solutions for of as we that to the years. are this short-term over protection This generation the

reported We income value GAAP closer net And brings to quarter. which now moving under demonstrates This to income in $XXX ability accounting the our positive to positive our of net LDTI, generate million fair industry. for results.

us reminder, criteria. inclusion meet a will in to as indices this S&P As all remain enable for now we eligible

something opportunity significant isn't we inclusion for can While it our provide shareholders. control, does

Finally, let strategy. we that's to the control, turn can execution me what our of and

to against enhancement program higher due fixed income in from achieve and benefit progress capabilities million are business strong track retirement Equitable’s underwriting on million We continue to yield to by a $XX incremental $XXX yields from income year-end. continues risk adjusted to AllianceBernstein.

for in by a at for million $XX Additionally, annual us well Equitable $XXX are on-track target. million position savings productivity expense phase year-end,

includes the us resulting $X million returned which return In quarter, to reduction. share to million capital count of a despite Turning volatility. nine, slide we enabled program has million market consistently $XXX $XXX repurchases, in capital our management

last value X% shares return our months, have capital XX outstanding the the program. demonstrating Over our reduced we of by

Day, which our actions generation. efficient wealth, increased Investor XXXX discussed our confident achieve XX% At these retirement, management today, light capital ability output the $X.X in payout asset XX% I by discuss is cash optimization of billion. that and we The in our businesses, And of increase are taken driven actions shift moment. we we more of addition a operating to to-date, guidance towards in was further non-GAAP to have will our An mix we to the earnings. to capital ratio

took year dividend. of dividend the out of this flow cash have we million the $X.X following strong These with million sources already of a as to-date. of at the In million nearly come The of from $XXX cash billion will remainder company. $X.X $XXX the billion quarter-end, July, Holding Holding Company flow the cash unregulated or cash total, to collected insurance seen we In July liquidity support upstream Company. flows with $XXX

was ratio to XXX%, RBC our reflecting combined half-year strong balance our Additionally, company insurance approximately XXX% sheet.

internal part ratios optimize our capital our April, two As our reinsurance strategy well-capitalized of to with entities transaction completed insurance us RBC enables in above to we target. have position, which

sheet underlying first market With select the product gains in The passive strong cash a tools. effectiveness despite assets, return over XX% hedgeable, our driven In program maintained of hedging highly our attributed capital throughout position are stops. quarter, create us being that to XX% success dollar can indices and positioning enables over value for few be design. summary, our incorporating to growth our program volatility shareholder balance Lastly, of efficient and in us by of assets our management flows. through capital program, while future

is to Turning capital dive of optimization efficient to reinsurance drive slide another our to Since milestone Company. in I'll Holding transaction, flow which path cash our internal deeper the XX, more to several on taken total our upstream HoldCo. dividends the also Holding have the the greater increase than of increasing we XX% actions while Company, consistency unregulated to flows to be to cash of the IPO,

AB First, directly Holding units the Company. out the include: AB bringing to actions insurance company, of dividends moving These

VA Company Venerable, Second, through transaction the and with our legacy legacy commission. a flows our positive cash de-risks which accelerated ceding landmark

This which of Third, a with to the cost. CarVal from cash the with retirement at our diversifying and bringing more moves Arizona was our insurance two straight cash of flows. based means and of Holding Fifth, leading Fourth, imports AB entities dividends the therefore different of secure our York transactions management internal New will firm, recent contract a funded reinsurance with and efficiently be acquisition company the into the our the our creation credit fees RBC come low Atlantic flows retirement asset transaction both entity Company. to private that out Global finally, long-term funding majority our SwissRe investment the investors, unit. And entity.

over moving they more have New these York move sources actions wealth capital our towards we with from asset flexibility activities, more expected is management cash taken progress will than two to much which Arizona, XX% to unregulated This further will that These forward from our once IPO. Coupled give optimization. policies Company the for to consistent flow we our years. of than innovating it HoldCo means dividends at non-New and be like were the take type us allowed to policies, York next Holding place

our our written business XXX% non-New entity. of Lastly, a of out York Arizona be will

New Ultimately, financial us enable While these of York entity our non-economic Holding is legal a most regulators, one sophisticated have business. elements enhance avoid Company. to the would our new it that some that we does shifting reflects to diversified structure services by into one actions like

program a We for enabling have our consistent return flows businesses, capital multiple capital light cash from shareholders.

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

In Robin. confidence billion management ability to-date, net $X.X closing, in this deliver cash businesses, and in million delivered $XXX XXXX record, us advice, our quarter, generation giving Thanks, our retirement, asset on and of including results integrated retirement strong inflows to guidance. our

capital remain to Second, balance value our testament and resilient, our fair management. sheet a ratios

to insurance $X.X of As deliver management our Company we billion of consistently capital as to XXX% and combined seek of flexibility our company RBC ratio approximately financial end, on Holding objectives. XXX% cash quarter support

Lastly, reinforce days, is XXXX financial while and growth and targets. achievable strategy it still business distinct our model compelling early

generation cash and ratio we XX% EPS XX% deliver drive XX% XX% billion, to our to $X to seek As growth. payout to grow on consistently

With that, open we'll the for line questions.

with Wells Instructions] Our first question line comes [Operator question. Thank Fargo. of the Please Elyse you. from go ahead Greenspan your from

dividend. very $XXX morning. $X.X above, billion, you right, that Thanks. you of guys first the guys the amount My have parent, following target. right, Hi. at we'll minimum That's a July high million question, right, Good capital -- obviously

to about etcetera, thinking and could to just, pick-up just, return year? capital at the see capital here? of level relative how level we return you a back perhaps also what Just the in in from given the markets, want half of just you parent are So have up volatile pick

Thanks Elyse. for the question,

to Holding the light we You're of to continue markets this unregulated at here these XX% time. right, important strong cash flows where to Company volatile flow, these is that capital cash as But ahead the today to businesses we the the of $X.X position at, more of us. note, that in billion uncertainty is have it's be sit benefit kick-up than still it and of

consistent keep payout As you be period capital to XX% want guidance. we the and return XX% throughout know, to our with, to

a on basis on paid paid-out normalized reported in out that that to And If guidance. guidance XX%. the of we on you quarter basis, higher a of even paid we end look within the XX%

We us expects consistent. to to a these well at time type be But prudent given we're to be So, the our environment think as buyback it's uncertainty in the going now. good right of stock evaluations.

And you mortality said, going of still protection you Thanks. color near-term. within be solutions could Robin, and in lot good a gave, then, on with that mortality, with what's elevated the

the expectation within few So, the saw quarter? is at next range of that over will that your around of least $XX million or this quarters mortality the level so guys be you

built Yes, the that results. GAAP in, is the that on we expectation

on age as XX is policies in this I seeing hearing with this the know, improve said mortality call, on really to are is XX well higher we've older over policies. to pandemic endemic, for but higher concentrated did which face that what the that VUL we're the the quarter, It we in add And book years. value seen still from insured we're few population, mortality elevated These from and quarters. reinsurers. the it on You aligns the COVID the, a shift

an pull-forward which of would So, claims good predominantly in acceleration these But, we a we're lot seeing the claims, ordinary that years. is historically. a we fees future policies, are represents what pay from collected which into of

our short-term to change GAAP a balance only say with sheet. is Not economic in I this what statutory our do would expectation. anything So, is

pull-forward the already under we're GAAP, maximum that and statutory, for we do, more but hold As reflects of deviations, can experiencing. reserves we to economic which higher and adverse claims we reserves hold under provisional accurately

pull-forward see short-term you're free this cash continues higher we mortality. does a Therefore, for going to volatility, the flow rate continue if this conversion and if see

Thanks, Robin.

Thank you.

with next your Please of Evercore. from go ahead comes question. the Gallagher question line Our Tom from

Good morning.

what a you said. on follow-up mortality I the question. Just heard Robin,

get you be from way. Is guess these a gap XQ get the that it But on up some for chance XQ. there it'll sounds a what I But better statutory you there about reserves and will the adverse heard issue I we there end over like expectation expectation perspective, a resetting also So, mortality? we said have and the near-term here pull-forward time. approach be GAAP review, persistent either the of some a charge as given this we not your -- a should actuarial could basis? charge in is assumptions the

going No rules I maximum you expect charge a for as material hold the just Tom, that can policies. Reminder, of should under expectation on reserves we forward. VUL GAAP nothing basis. mentioned, GAAP these you amount that

if we can't, more, maximum So, rules, GAAP amount. wanted hold the we we the to by even because hold

expectation. So, this of is just a pull-forward

material any shouldn't You the changes expect to the third mortality changes, in quarter. assumptions for

Got this this Robin, experience? worst predominantly is not higher, clarify, you're is just seeing unexpected the you. SGUL, VUL, And where the to

enforced our for the due those of majority that the XXXX, that's in VUL, We products. us. selling stopped of SGUL, is to Correct. economics small

These So, it's policies enforced XX predominantly to are years. that XX were all VUL.

tail-end So, of they're the at them. just

much to into a accounting experience under mortality much on current Okay. have has an actual Thanks. smooth Do the split rough the period on you if from final booked And I where one block expected How LDTI topic, earnings. this gets versus how of one your that? could. immediate perspective

really That's the smoothing. it's based reinsurers. our XX% and really these Again, on a policies where XX% in-force. smaller our hear impacts come No. see you through. what The percent which are part have policies those IRRs, good you'll we on what are we not of VUL those see, our, based where efficient as we see pull-forward just most volatility as the And, to from policies, capital a the business them. term of That's are, LDTI that

Thanks. Okay.

go Please next Our from line question comes your from the ahead question. Krueger with Ryan KBW. of

Management good morning. have question. thanks, Wealth I a Hi,

annual annualized earnings in the XXXX, think close $XXX $XXX million million. $XXX -- of million is you're to you run-rate it quarter to If got to I

ahead $XXX like seems you're to get pace So, to it nearly of million. the

as if current the think you you in just pace anything running of unsustainable are if ahead fact So, in you there. curious do results or

Yes. This Nick. is

peers, As growth we fee-based retirement client our in to, is like strong billion The with expect going or most positive rising benefited provided the attributed every net to from interest point historically increase to we've have sweeps accounts would XXX strong did relative interest growing $X.X sales. million FFR, rates, Management and advisory higher forward. capture, that. we flows a on you from guidance distribution mentioned, We've in for basis on performance on increase $X.X change decrease revenue earnings income a fees, either Wealth

given We operating wealth of with edge and the scale developing get to on our from differentiated model, think to take with the the LTL investment our track we're planners businesses. demand scale advice goals, our the record meet market we bring well-positioned and for advice retirement in growing our we track and the partnership

in this in then anything And was sales, Did drove the like big new or you volumes particular products there on that? anything uptick that Thanks. it. quarter? pretty SCS Got introduce

volatile to this baby As there's as we're amplified network we're innovation. environment our structural the to we as we accumulation in generation moves equity the think stories, well at times political capture given macro as our by demand in Investor for that share continue mentioned distribution both the seeing constant proportionate protected Day, to boom well-positioned and the

that last space. built but demand, this structural the emerging see we the as segments our decade in edge given over think update more I to it's we've continue we So,

And fixed this out those rate oriented very are there. to products that makes environment products competitive

to benefit So, for we better end the capturing from, we back shareholders. can then clients and the that offer rates yield we're on

So, it's both a sides. on win-win

I been a Mark we few our across institutional well, also, side momentum has But When as it, see now. retail for I distribution to channels at here. all our from think side. quarters us it's through the the I look Ryan, think of growth

So, lumpy us the is board, really one for encouraging it's across forward. with which not going It's distribution.

you. Thank

Thank you.

question. ahead next comes go J.P. of Our your Jimmy with Bhullar Morgan. line Please the question - from

morning. Hi, thanks. Good

question issue. first just the mortality the is So, on

Your results have obviously weak. been

a that and you just lot claims? a recently block, in What what been issue you've your of the of terms your it's of So, and of pull-forward have it's well. more pricing, to gives weak confidence structural terms peers collection in a not mentioned in related more as risk

Jimmy. Sure,

the there further enforced testing are and you you teeth see your multiple I think, diagnostic things your volatility One, stressing and a mortality. to them. have when of thesis do is block,

is validation higher reinsurers. most are do. thing The we on cash. just GAAP conservative ratio, continue things volatility. the Those all see It, the to a if No going statutory of through the of just this volatility important our that day. have impact to we're assumptions, is Second, because this is we payout at end

the continues. impact ways. there'll on cash see we'll works some this be Volatility gap no So, of volatility hope sides if both volatility. We both

So, we're again, looking forward to seeing both sides, but no impact cash. on

however you're and into industry-wide same you on dynamic is? any or looking to obviously be that you flows on, managers, flows environment weak pipeline more visibility or dependent the have overall the of half, the fairly And asset Any how as on, going are just been seeing for does AB, comments some then well. Okay. have it have is second on how

Bill. Go ahead,

Thanks, Mark.

we're outlook our No, of confident flows, the for pretty Okay. in the second year. half

was before, follows is half a through net despite, slightly as net SMAs second the had part have a $XX in we with flows XX% the private mentioned, areas $X mentioned have it in that retail with growing pipeline. billion (ph) growth in two-thirds segment. inflows outflows [muni] We're being strong of quarter. alts, hoping alts, Mark we second in plus several rate. As of is billion And, that the fee-based. a over Big We've the strong, of of annual in that, the

positive, continues, to that XX year-to-date, in billion a American of growth continue. the for that quarter, in row U.S. So, inflows retail, net organic In of income, quarters. the hoping we're second we're that of the last X% with looking XX billion net positive, we years organic quarters XX it's $X inflows been the of XX $X.X have growth. XX annual

increase the looking good growth its in in then, and for looking continue that markets rate alts, organic their we're So in is private then, momentum. that too. and And with pretty wealth, money investments to private

second pretty we're half the in So, confident the year. of

you. Thank

Thank you.

with the Our from go question ahead of Please next from question. Jefferies. your comes Suneet line Kamath

Thanks. Yes.

to circle to play Robin, Just and VUL more any of then of big long specificity how way age this you'd back policies, again mention over the block how on just a expect older period is time or to mortality. to is out? this what there

them five the expect $X.X years, Yes. it age guidance would that unfortunately, we gave cash I expect, of and at of older sum Investor our that's just into billion are of that Day Look, guidance we earnings These some gave our they XX over next the will we $X pass way and built policies, Investor to at up. that Day. years that we billion XX

seeing that's what forward. means, acceleration an So, is pull-forward we're those of debts, of a some of going just which earnings

think point it's prudently disclosed guidance of as it's included cash blocks specific reserved. really the acceleration our haven't and a statutory the only this guidance. it, size And in more you but already need, the books we've are earnings pull-forward to what only, gap I flow about We an again, way of think is of volatility

there acceleration gap cash we about result down are the to Got and it. And earnings of or this? denominator phenomenon, is gap free is improving a as generation when sort then cash because going some of lower, the the the flow that think related the of conversion or is

lower and are change earnings the as there's no statutory a GAAP result. the because just to really earnings It's

XX%. our saw really take in payout XX%. to is. ratio it's I the it basis in number, But in quarter, XX% quarter, close that the you the what And, normalized was on a that's reported So, to if the

end reflecting the a on the point. GAAP really fact paid that just a So, out higher volatility cash it's not we

it. Got Thanks.

you. Thank

line Goldman Our ahead Alex of the from question. next Please with question comes go from Scott your Sachs.

morning. good Hi,

First the or, flow question I if that And, had of around, amount sales it just is like, I'd said towards your the on, deployed seems the any the consumed objectives. of could hitting because you particularly saw growth you on that, strong way, cash individual color amount you're be interested in provide capital retirement. capital you another

you're more like have deploying, though than piece other in the you new other seems it the The business. is

So, the the if, also seeing I'd just environment there? and comments any quantify us that for competitive be you're interested on opportunity and in

The capital SCS light a is efficient, capital on leading XX% are That very that Alex. businesses the capital Thanks, we product write uses. structures. IRR

I and the it capital less for individual our in that dollar group than our we over that products $X.XX have per or in to we that shared think years, recall, retirement of, you hold every whether premium. retirement, If it's write, the hold These they're amount dollar of and we we change premium.

probably are that capital efficient $X.XX very $X.XX per they're products that dollar you So, fixed to if premium. compare to,

in continue because So, place. good we'll flows to we're generating generating playing We're returns, support right cash for shareholders. the and it's future the growth

under novation needed capacity I could dividend, York I us for million following the there. ordinary able all out Follow-up is is the at New frame be you to it. for of on how dividend you're much entity. of on, had York? capacity that Got comment still how will New $XXX the guess, And dividend much if

Sure.

we free million to dividend the have of our So guidance we'd we, -- need $XXX XXX%. include that XXX% maximum at with that billion. flow that million the to And, that's the close of out levels we million and to the of which $XXX take million cash so probably our July, to took HoldCo, out in that insurance RBC above $X.X keep the in-place. up-streamed July, unregulated We through aligns for could we assume $XXX total that ratings ratings $XXX

year-end. expect what So, should that's you on

where reinsurance the the internal the across We capital the also from York to quarter, support that, moved board. help completed, entity entity to as New I mentioned, we Arizona the in transaction,

dividend, expect continue to from unregulated management though, to going Wealth ordinary shouldn't What year-end. up cash you asset from AllianceBernstein, flows now capacity then dividend, business business, comes any should We're you is and So, the more retirement expect year-end. our year-end. the to which Management retirement business to the contract, flows now close from through cash to other see from

year-end. to So, that's unregulated flows from cash that another, in we'll total, $XXX of now million see

Got Thank you. it.

you. Thank

question go from your Benguigui line Tracy Barclays. question. the comes Please next with ahead Our from

quarter in and your in XX% earning of about $XXX reiterated earnings that in was million the Good equity were $XXX every impact. call, equity believe down the operating earnings. XXXX, markets XX% market, after that Robin, And morning. I million fourth sensitivity you so movement

billion $X.X $X.X your cash original became billion expectation ‘XX. flow So, of for

recovery we're in However, seeing equity market.

based market So, Could think is equity see I billion we year-to-date up moving on target? recovery? that upside it's of XX% $X.X

every Yes, continue the of from cash expect markets levels, million. markets saw, that these at year. And you as the with higher to provided. reflecting if sensitivity $X.X $XXX should from And, flow XX%. in-line is lower year last next our equity you a billion Tracy. about this guidance That we It's free we went $X.X equity billion year,

internal and I Okay. sources wrapping that flow transaction. up regulated a not between And, your congrats XX-XX cash reinsurance like split feel thing. is new on unregulated

in following sure, years. be shift more in composition meaningful you're just novation expecting So, two to your a that

Well, the XX% now. cash unregulated flow the where is of IPO. XX% It's it of, sits

And newer we between liabilities with the within retirement that company. strategy So, the we that cash regulated we flows. than stable and XX% that from should flows the that diversified York the means be cash more That's to Arizona the you because Arizona aligns well have then expect cash coming the really unregulated of as split entity shifted was it business, company the as New more moved, to important flows. from

York be New but been you As the will formula has the dividend RBC-based. Arizona historically more volatile, know, formula

more So, it cash provides for transparency from entities. flows more shareholders on and the the regulated consistency

claims, so the on quick aspect? of average these mentioned severity face large VUL, claims. real just amount And is can Okay. you the understand I What

face claims large When we're plus VUL, at million we amount. looking look on $X

Excellent. Thank you.

you. Thank

question comes your with next Hughes ahead Please of the Our Truist question. from Securities. line Mark from go

Good morning. you. Yes, thank

sort about China of talked just initiative the curious. You

thoughts goals. early early get around the approvals. gotten you've and asset do think up think When that'll I ramped any you some

Siemers, was we've we've Hi, a but of occurred but subject again. is geared application license, is Mark. that our This in been on our That hasn't an our waiting Bill first China. inspection, to for, ago. received approval yet. get which to up we're Currently, Yes, months few

which have timing done to the of it our license, to, fund slip release this into get this a of hoping, and, -- are but We this first might end next it's fund where subject year. year, the by

think And us pieces, at quite this, giving you if touched some but you year-over-year growth, I strong. maybe then look on the Management, the that. Appreciate obviously, the Wealth of in

speed accounts, earnings any aside impact? out took you was, rate of from interest what growth If the this improvement the sense the in cash

Yes.

had, I $XX think quarter. in we Mark, million of earnings Wealth Management the

$XX said from rate is think sweep of interest I the year-over-year, that I accounts. million coming

So, growth. out strong sweep account, even rate seeing still really in you're the taking interest

And and million as distribution our that's sales, from do. They're from I again, from coming or differentiates only products. so investment $XX the to not gets selling class. point revenue that really an that. was the think they insurance that's it what Management asset insurance Nick's revenue. that Wealth about selling really the business They're earlier, And

different So, that they can collect future they that sources of drive revenue have growth.

good. Very Thank you.

Thank you.

question ahead for Michael the of line today question. go comes Our final Please Ward from from with your Citi.

Thank you guys. Good morning.

technical a I is Venerable about AB where question, preferred assets the was general Just manager. wondering account the

Just that unquote wondering, to are maybe? recapture quote for allow Venerable agreement there any terms AUM could that in that,

No.

contract. AllianceBernstein into Venerable did the scheme. long-term for That's enter of deal, we an IMA a part IMA As

performed I think, that. AB well on

board, as Venerable their happy that of with that say they're AllianceBernstein. can think performance say so as well. well, I on being the I would

the rate we're that's institutional to expect billion fee for going to $XX So, overall perform to And, looking-forward improve well. going get And, AB of continue AllianceBernstein we to the funded. very flows forward.

anything was just or reinsurance changes, consider, and about the from de-risking it's not, how you or just, opportunities, if whether annuities third picking inbound keeps wondering with parties internal Okay. changed, there And it out the any has up. activity sort I of of potential think some life, then, if

on wondering any changes that just So, if front.

de-risking big optimize That trade we across about. to at or by But for was us. or the capital, individual if we're ways deal capital can board for the Management going we Look, just always look deal was set spoke to de-risking. us to Venerable deploy Yes. that all that AB the Wealth big

laid We'll always that we're in now focused a table on the really focused on for right this look and at the execution them, us. against but at Mark, on call there's point. executing that earlier strategy nothing We're out

on cash securing generation extremely job teams that Robin, management, focus on And I flows reinsurance, the going on, cash which robust the to delivered fair forward. the making capital massive and think well is a more it’s say, been internal has just

That's really been quarters. shareholder capital of issue couple last the big management in the value

Great. Thank guys. you, Okay.

gentlemen. Thank you, ladies and

As will conference we time, call. at conclude this today's Thank no have we you questions further participating. for

disconnect. now may You