Equitable (EQH) 1 Nov 232023 Q3 Earnings call transcript

Good morning, my name is Krista, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Equitable Holdings Third Quarter Earnings Call 2023. [Operator Instructions] I will now turn the conference over to Erik Bass, Head of Investor Relations.

You may begin your conference.

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

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

or information. of to results harbor the Our in language materially our forward-looking such on from differ by may X presentation safe additional for statements. expressed Slide those indicated Please refer

Pearson, Mark Financial President Chief me President business. on and is Joining Head AllianceBernstein's Robin AllianceBernstein's Chief call of Onur Officer our of Siemers, of Wealth Holdings; Officer; Global Officer; and Equitable Chief Bill today's Executive Lane, Financial Client Interim Erzan, Private Equitable Group Raju, Financial; Nick and

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

provides asset chain: and overview us Good to promising we of of combination higher X our the call. today's capitalize time distribution. On best these present thank life third given well morning, allows a Slide business for well industry management; and favorable quarter. the over backdrop seen Product as the unique X, in interest trends, you This for demographic model the is components the to for particularly growth which all joining a positioned manufacturing; and on insurance is Equitable insurance we've value and of an rates decade. Equitable monetize tailwinds

tax modestly below returns, $XXX in which X% earnings notable for to our operating quarter, items non-GAAP were higher lower but in to share a quarter detail down and expectations. which X% in per the this million per more elevated compared few and Non-GAAP compared on alternative XX% year the of minutes. up $X.XX XX% year-over-year, up is touch Adjusting second quarter last a rate. sequentially. Robin earnings or third period, operating Third share, included will $X.XX, mortality was up

benefit and flows result better businesses to in outflows and we for X, demand We nearly products. In capture margin to with than $X peers. our record with management in Quarter but billion the continue retirement $X.X net most for not in Management, were wealth to offerings investment were Asset immune advisers, buffered industry-leading inflows from our the X,XXX a us our enable quarter, flat and combined momentum supported in of retirement distribution annuity quarter, which industry-wide active proprietary pressures in both billion by for a

Turning to capital.

remain Our billion businesses guidance date a leads holdings to our to more the which and predictable cash $X continue approximately of for Year-to to deliver diverse for flow. have ultimately generated sources we on billion of year. $X.X cash track earnings,

it our of flow from half makes now than predictable. Importantly, cash comes entities, more which more nonregulated

XX% million end cash return at quarter shareholders. in to or of to come generation to track Our cash billion $X to returned $XXX the position million ratio over and payout in continue support meaningful our We and holdco target. of XX% $XXX above on capital high putting the us year-to-date,

narrow the operating range results annual quarter minimal reflects impact of review, results also with benefits first framework. Our the conservative the third reflect designing approach accounting outcomes. to products our assumptions to of assumption setting LDTI under and The our a

productivity across against initiatives. our Investor yield at our profitable, our Day, on focus these strategic driving organic and to including outlined continue growth priorities enhancement executing businesses, We

a at money experienced XX levels and are towards rates higher plan earnings. We on supporting Americans with new prior earnings for our over to of in interest and earnings per revenue have rates, account, day. In to our our demographics XX tailwind our each put Higher are years over also turning million Wealth segment to shift XXXX us the levels in product XX% general interest also $XXX benefiting business annum. we spread-based double yields been retirement favorable XX,XXX our Current from continued operating balances ahead Management over haven't quarter. year the which interest furthers with RILA for higher target growth cash of rate demand relative

interest of more a touch I'll higher On on favorable X, bit the detail. in Slide rates impact

our that price means often a equity dollar have the our and to we first market hedge bet are means made making rate we've on direction which we products. about We exposures This talked we market-neutral interest not when guarantees balance the clients. that of exposures markets on sheet,

As and markets a to volatility and enables drive consistent past ultimately us generation capital years. This result, our and RBC interest despite in rates has the return over a cash remained comfortable significant in few narrow shareholders. to range

rate While provide of the growth from movements, our interest sheet a earnings is meaningful outlook. rates balance and tailwind higher impact neutralized to our

offering attractive to clients, sales is more evidenced record of product by net and consecutive flows. quarter retirement our Our second

our record for Importantly, a mean rates XX% of higher and also business. above value better we're shareholders and IRRs new economics generating

Wealth higher are investing Management reminder, and we're is retirement wider driving account, net sales strong income our points at spread. yield, which money basis business. portfolio benefit XXX our and new above general levels In a our investment As AB also that

are we earnings a cash Management realizing on in strong revenue year-over-year benefit also supporting Finally, with Wealth increased growth. sweeps

$X.X against our the strategy. we across In X. reported strong continue seeing with execute net Slide of we our X% organic Turning We a record billion Retirement, quarter a to as growth typical $X.X billion businesses results highlight year-over-year, up strong in Retirement Group were we inflows, are quarter, to in industry-leading quarter growth retirement premiums XX% our rate RILA year-over-year. product $X.X with with in led the in third up premiums, seasonality results offsetting segment. Total individual billion our annualized XX% by

was growth account commitment of offering and the U.S. our institutional with flows XX has of active modest nearly with enhanced date continue drive private also our and have to positive from and of an mandates we income channel alternatives retail $XX CarVal, XX% XX% attributable our taxable markets Management, channel, Investor $X billion additional quarter fixed were more income AB's in for industry XX end. last flows and of X- to Day billion billion $XX flat and in passive income of Organic and year-over-year significantly billion. The platform to nearly of AUM markets fee active XX% Equitable's commitment of net as performance May, growth committed the in organic at The initial deployed at $XX been comprise remains to municipals remained grown pipeline in billion and quarters. Fixed in the $X.X capital the acquisition billion to billion growth the In offset bringing peers. than outperforming cumulative our X-year private quarter Asset retail of outflows private over $XX.X the unfunded AB $XX strong equities. outpacing base. relative In and to Total assets fixed with strong outflows periods. general the with

inflows. X% year-over-year of last in Our XX $XX over segment, the Net organic under Wealth and growth drove annualized XX% fastest-growing assets growth reported business the with administration, tailwinds quarter, portion billion. inflows is months our of the $X.X Management in which market net now billion

Increasing seeing earnings productivity of in key business. I lever the benefiting is operating quarter. and it this quarter While productivity, drive momentum we over also will margins, up the second updates interest now turn to to X% to wealth adviser additional Robin on higher encouraged the we to higher rates, by provide year. management which this are from are improved was a adviser compared Robin? are

Thanks, Mark.

touch $XXX for share on to results quarter. of were basis. Turning $X.XX will $XX the On non-GAAP a Equitable and per operating a in share, after-tax million million operating XX% or XX% earnings adjusting million, quarter $X.XX for share, reported items on $XX $XXX basis, Slide the assumption third I up up of X. After year-over-year. a Holdings earnings non-GAAP consolidated of comparable million per unfavorable or year-over-year per update favorable notable the

Under billion we have eligible positive per S&P we ensures net remain indices. generated of share. that quarter income This every also has income. into net inclusion in We $X.X for resulted LDTI, reported or $X.XX

in While the through outlook with forward. pleased consensus expectations run business. thinking business, came moving This our quarter. third major how the we're below growth walk and going rate view the you underlying of the EPS was noisy quarter X, pieces And momentum for I'll across our the about on Page and a power earnings

across to the X. the items are X Turning There enterprise. affected that results Page

First, below alternatives our million normal and prepayment were income expectation. $XX

results were our equity by represent the an in had portfolio XX% the as continued quarter solid equity which X% weakness return real Our of alternative portfolio. private alternative the annualized estate investments, of in offset

low XX% our of As a X% expectations. to reminder, the we end to normalized return normalized

forward, performance expect Looking recovery XXXX. fourth similar in further in project in we quarter returns but the

we our reflect philosophy, limit experience million changes unlocks resulted management the The our assumptions. emerging investors. in which our $XX adjustment. into for Second, quarter, update surprises like value third XXXX model changes made completed large This and assumption some which modest in favorable fair incorporates

was Lastly, the our in consolidated XX%, tax quarter above the rate expectations. XX%

the had an we quarter, drove rate. true-up, which dividend higher deduction received This unfavorable

a XX% tax and each the rate can rate taxes to business. around While for XX% continue bounce insurance estimate quarter, we consolidated a tax

few our we were gross million which about best this viewed mortality a to range. affected due claims We our that only per coverage. in for we of higher quarter, of but of estimate million about $XX earnings segments quarter, items the wanted Adjusted a coverage claims quarter million gross below lower $XX claims to XX%, was the to million Overall, higher to would highlight. Protection move $XX quarter, but specific had million are business our quarterly end over of at net the to updated to after-tax second But near reinsurance. higher this I earnings In time. our term. power We had Solutions our and $XX reinsurance on $XX earnings have of less near-term as business than million close this segment typical also still been $XX were variance. than came that guidance covered expect XX% expected a assumptions expected by

from I quarters, cash this the pull-forward also note, impact few account we underscoring a we a for a As from related increased since has the statutory endemic for minimal to would mortality reminder, adjustment adjusted already on update, conservative block. assumptions the had assumptions modest COVID expect mortality. some our in we assumption generation continued positive while our have actuarial a next drag and that the

straight second ways demand and reinsurance cash for and reduce solutions. earnings our driven sales by bodes which by equity In growing as retention for income continues generation. delivered Moving such to segment, quarter SCS. billion, consumer protected Retirement, highlighting Solutions net well forward, Individual momentum and record we in more Protection billion, in of product, growth limits. net the flows, flows adding secure be the the the spread-based reducing RILA This we a explore will earnings $X.X volatility $X.X or Individual sales were future Total Retirement to in were

However, with have quarterly one improves higher to policyholders the rates. to is we've as amortize DAC, some the is we $X dynamics going this we that roughly be into GAAP us million Under forward. seen factored the terms which our lapse in-force our There higher assumptions. expect activity and requires we near-term expense accounting, of block, in amortization interest more increased can offer,

While mentioned block this on earlier, much the as for bigger X we're flows impact near-term earnings I things. One, is earnings, and have record emphasize we growth this net seeing will a time. modest would a over in headwind

to earnings of due related lower the This a seasonality expense, level bullish business Wealth noncash commission lower summer being is business. cash teachers projected related to collected sales. in the change be XXX(b) $X that of corresponds million we a months. on we is the for amortization Group DAC Management, this Individual with Retirement the Overall, in our very during flow outlook no to quarter for off Secondly, continue Retirement. In

wealth third as earnings the you a for quarter. Going million some of in the quarter. But fourth to think seasonal about assume on run we $XX forward, rate results management viewed the better pressure should

of to is million $XXX of is Finally, quarterly on Corporate worse loss $XXX due which and a than rate roughly our Other, we normalized run million some timing This of expenses. expected generated

our our confident controllables. through at EPS control a remain XX% Across to we all XX% annual in As continue to grow to rate backdrop, we ability XXXX. businesses, the

our of plan target yield environment. ahead are million helped the general achieving for We the by higher enhancement $XXX rate account

rate of and target on capture expense million $XX savings Additionally, year. this we're ahead savings schedule $XXX of expect million our run to

for we and Finally, in Across for X a businesses, as provides contribute the our projection XXXX, are Mark touched higher ahead rate all business. flow. of running will cash retirement well on tailwind environment to earnings earlier, new which strong future D&B

to Turning Slide X.

diverse Let's our dive earnings deeper consistent into cash generation. that sources to the lead of

flows, last Our to and management the earnings time, deliberate earnings expand to wealth shrink higher-quality our management same years and while in business to led for also actions over retirement our and business grow our have core X consistently to the mix. cash reasons. and retirement a convert At meaningfully private block, cash legacy asset us grow markets we flows our X shifting markets

neutral. to sheet is First, our remain capitalized ensuring the earnings through strongly markets. is enables balance market stable and volatile business hedged, cash and tightly This our

company businesses investment and through holding these are of directly $XXX the Second, from flows million to contracts. unregulated our go management the cash

cash deeper of I'll flow. operating our year our over X are our flows program. converts point management us and of is the same significant a time, The the me This much result, since flows XXX% and that nearly cash enabled wealth earnings XX% the XX% cash leads to other in $X.X more billion higher where our payout cash business increase management this earlier retirement percentage demonstrating slide shift capital asset to to consistent This unregulated our businesses XX% of in our XX and flows their we a increase time. This have to durability of quality of IPO, our earnings. next a year. anticipated retirement this players comprise dive target than industry. At into business As to in quality high-quality remaining

Turning to Slide X.

$XXX million reduction. we to million generation returned includes quarter, of Our count strong $XXX cash $X which share continues an value. drive the shareholder repurchases, resulting million, share In in

after X.X our the the Over a subsidiary. we our returned At outstanding billion have by company to billion same taking reducing shares the time, cash dividend last increased from holding shareholders, XX to X%. months, $X insurance

the markets. the gives position earnings, $X.X business management being dividends value believe than company XX% paying cash investment we fourth defense. offense our free the operating we wealth XX% rather upstreamed be remain the continue an on we cash quarter, non-GAAP an Holdings from us also retirement Year-to-date, expense, flow investor expect will of of we unregulated yield. us From company. opportunistic we distributable out enables our dividends free $X holding It will confidence year. In that represents target a Equitable perspective, AllianceBernstein, our have volatile $X.X cash and proposition. interest XX% in to Our confident receive of flow, presents to to play that management billion and to billion contract with hit to and generate excellent even After paying for the billion which

to closing billion cash Our call to organic turn Mark I strong $X expect XX% businesses XXXX. With Mark? for have remarks. and increase the potential growth back now will that, we generation by by to

we management benefit combined with both billion wealth of in businesses, from momentum Thanks, quarter. Robin. the to net a our retirement continue in and inflows In $X closing,

Our material position capital review with conservative balance and assumptions resulting assumption no remained impact. robust sheet in

as generation focus to tailwind capitalizing Day driving while rates. With target by and We cash return outlined financial across the for at on of consistent billion provided our track continues HoldCo that, businesses Our growth open we line to now end Investor remain we support the interest to tracking of high XX% our the at guidance continue we'll higher to ratio. XX% questions. position on for $X or our cash on above payout shareholders, the capital

[Operator Instructions]

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

Solutions. first Protection question is My on

to to mortality And slides, is guys elevated. in expected know the So being similar still remain the results in fourth pointed I alternative the sequentially. if if you quarter, to QX

reinsurance fall does in all there there on the to I'm Or So together. still is quarter, trying just that Or the I'm side? $XX that that normalizing when that in million million is fourth imply to would you piece something target? missing $XX below there?

Thanks, Elyse.

put the the some in protection fourth to us continue pull to we come million expect of for in the guidance. range That to $XX through. of would So forward quarter, million $XX the see

We some Solutions. of over Protection near expect And the as alts term that range well. obviously, continue the would come against to in that then

lower basis, normalized million. from are be the end of basis, when at range as long alts should considering third quarter, as remain so $XX normalized end of on the the of a as that And at or lower range you a the see, we at give to $XX the we midpoint. you we million comfort, In

noted, normalize momentum some improvement We're flows you we'd overall pull well. But that the quarter claims. we see on flows We what going XX% again, did range XX% in as than continue in the and businesses. see coming has our and versus and in strongly at continue see of cash forward reinsurance across actually we expected. no and the expect good reminder, to gross forward But to impact as grow the to lower a historically cash the the

went was And color this net product just income then feature had quarter. I a can for some impact quarter. the give billion you VA around under would smoother LDTI, the there be what like to on thought in on line that, there $X.X that

Sure.

post straight the we've as mentioned this So LDTI. seen seventh the on call, is I net quarter we -- that income positive

interest so And with program, hedging there. hedge rate some see and side. comforted and do we're account general the to positive we continuing the our results On on

versus the purposely to consistent we product volatility, flowing statutory return. so can the liability we the through that VA general avoid and capital have So through then flows do account AOCI and features

interest LDTI. for relates given So it as sensitivity to should with the line rates be that we've in it

Tom line from Your comes next Gallagher of question from EVR. the

block volatility, comment reinsurance to not an can your about impact? pricing Or segment? a you little to protection you of lower not on that bit what earnings lower much expect would likely reinsurance, in you're you would up see what on like? purchases on have considering following considering there? talk just your it is is to additional Robin, the the --

for protection, Tom. not Sure, business. with the Look, happy obviously for not we're -- we're results the

being And so at by first Certainly, -- of higher if a we'd of of a historically of before had That's in And our hope a some part year. you previously limits mitigate the to next it peers, therefore, in point IPO. volatility on to the hopefully we've us we half are subsidiary that exploring the to look business. options relative mitigate results. retention big company function

have Obviously, those limits. and so we you're volatility, And giving long-term economic retention to explore reduce up we we if returns. give up the some

the trade-off that discussions continue that's in But those with we're we'll assessing to and trade-offs. reinsurers assess. So

Okay. And on but it I and -- thoughts on new either just how any retirement any early, might Labor know industry Equitable? the this out yesterday, Department of or proposal came initial it's that impact

Nick. Sure, Tom. is This

the from considered digesting initial still almost are for reading, With that pages. all from DOL the us XXX ERISA fiduciary We activities. plans said, the XXX(k) will be is that main rollovers

this private is fiduciary any does compliance it align in SEC to with of rights this with not best spirit, and firms include existing while different rule. the have since iteration, their XXXX revamped And in stay rules. aligns majority XXXX, in a the What interest actions. And of processes

The index be interesting language for annuities this fixed sell be also like scope. biggest pulling impact to appears products covered. There's that nonsecurity will licensed now the robo-advisers nonregistered insurance industry? in some agents does What that mean

investments given the material we've made impact and no the changing For Equitable, landscape. we see

in Reg As securities registered or products product, are today not channels. standards. product higher XXX(b) and plans registered sold a registered our annuity SEC fiduciary under operates reminder, advisers the individual broker-dealer Equitable through scope BI

XX-day to over review be to that specific continue do next provisions we'll industry will On clarity. the And forward, details. period. there the I more significant provide comments Going expect

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

business assume So flows in but market? little affected the in we first, the might until in a have the a equity near going business more question other just that this, assume are there your rates should are there's managers Or interest on that that improve suggest by asset bit and to the AB. Should flows we things stability challenging term? obviously, be in other in been things

is This Onur AB. Jimmy. from Thanks, Erzan

other As you quarter, active far. you been a environment. look pointed has better we which in our said, third it flows at if than was so were peers that flat, out, roughly the reported tough That

business. the cross-border We So we in pretty performance engines, And we we in the retail, were fixed growth and in about the X% U.S. at feel good income. top our look momentum. relative good when Munis [ about the equities taxable feel top on X% ]

institutional, actually organic annualized feeling institutional So about passive, including outflows led rate the in definitely equities to good growth even which those, of had X%. overall, an

-- that effective So very the our on feel of institutional and accretive. growth engines. the we billion, Xx our the definitely institutional rate we pipeline It's finally, remains fee business, at diversity in today and is confident $XX rate have so effective about strong fee the revenue

of keeps a we the So low on definitely low money feel strength products. have uncertainty the to market we cannot That towards lot skews flows and sidelines rate risk, said, and rates and the funds the the predict good fee about. investors

cannot feel in depending of on some ability but perfectly, to perform rate it So time there could well, terms the environment. growth definitely, sluggish our be confident

for and I it's your range obviously, still X And of you is the X results weaker the the you quarters, then, on that, the guidance time. gives the million the quarters? about been over for million estimates or in But have confidence there's right given your earnings $XX protection, varied some thought than should last reason, past Robin, think or to and lowering range several that what have $XX -- always

reinsurance the the I given into taking It's come -- at over come our in portfolio. you're range, in alternative last of end it our expectations on that a Jimmy, the lower the periods. did those few -- below basis Sure, But normalized account for even mentioned, right. for even

on because, volatility seeing confidence. and confidence honestly, a of of just Equitable reduce in answering gives to we're obviously Holdings. would generated the growing through actions going the we're here. come We're in the We that $X of $X.X back quarter-over-quarter. it's gross the billion claims questions range, also what seeing if of have to knowing had, went relying not volatility business we but and at been of So XX% that us reinsurance we end part we've to That's cash lower improved and the a range flows our at smaller explore cash flows. It's small billion about segment coverage

to So reduce going and back the on we forward we're get XXXX. flows growing look by to that focus XX% cash how

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

First one I had just the the fiduciary a quick comments follow-up on on rule.

I think you I thought right private enforcement in the was mentioned the of section action. no of private an mentioned -- I there there was noticed right that action.

X may read what there X with your think that on like interested piece of was? in or comment. Title of something, a Title And there be that I language versus your just but enforcement nuance

we would we'll time, with nuance, it this on more as At view that. Yes. but a be back details coming

Okay. Understood.

competition lagging you they there them? into to competition. Are pretty a able pricing. allocations more of competed had products with Are and that I think RILA private you traction environment on directly where had seeing more able just get and sort of they players? debt avoid in to pressure? from haven't, Is you I the still private to any some in the more question for Second some all channels, distribution coming Are strong equity starting any was the provide of

pioneer And of our to dynamics vis-a-vis being our a to had market, footprint, in both think given given record in we're uniquely third positive and there. Equitable flows disproportionate the of captured we a given Yes. the quarter capture At Competitive markets other privileged comments be distribution in Robin the terms our sales. a in edge party. advisers and this share space, terms innovation value we time continue the of made, and for

Nick, there market. it's the still annuity fixed X the nearly XX of in case the against players that players market it's sort in

So But the [ Alex we aware, we remains new at moment, the -- ] possible it very, don't very see pricing strong. are and entrants.

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

holding closing for one talked period target I comments, might lot at we payout XX% Mark, move clearly, in you above with the some about XX% way your you opportunistic So traveling is as that being Is into we of the have XXXX. And think see you capital capital. time of to a company.

quarter, We're you slightly this ratio. any but look that than changing particular if last actually higher we travel not in guidance, up did

accelerate I, does I as have now I that course, have think and enable as balance months we both look said excess mean, and us opportunities. cash we recent to XX most a healthy the did, with the we're very at Robin of sheet one or CarVal. was where and ago that build-out so in size. strategy an a we interested was That That remains of way area in really to in growing very the alts. in and our management distribution interested remain wealth

not the interested So say, them. price for at the very Suneet, our we'll be it's all in we looking at deal and right I But would accretion strategy. right where can see for our shareholders,

those remains it. businesses. see to it, strategy if accelerate a we sort will of way out to at build And we Our look

billion, it. sort the towards the of then private should about the the we in build-out think capital general sense. Makes And associated I guess, that how $XX about privates? think think marching of we account, I requirements with within you're Got that as portfolio asset growth

Sure.

billion of year about the XX% our through year. So getting and we're for to $XX the

And so AB at business. the And -- to have it to revenues of we big confidence have then that. XXXX by $XX billion big the commitment another and being AllianceBernstein. in $XX the there surprise XX% you that know, growing we almost as billion And AB's is

that growth have for the shifting that overall business with we price capital our mix the risk for coming the we is fundamentally our business, in hold big as and we grows, that's So we're EQH. Obviously, this to the take. see. not But

significant constraint the So movement in general we capital result of don't as see the a account. a

$X back, grown for that we money. -- in, of you AllianceBernstein, historically, every so dollar if And put worth they've for into look third-party

value a shareholders proposition think for great we without capital. it's constraining So

Sorry.

the the requirements materially holding privates were different you capital on guys before? So not are than what

No.

in the to mix in credit have If what general shifting at what now we in mix account our and today in significantly look terms we from isn't have private XXXX. that you of business alternatives,

So business. it's coming it's of -- our in a underlying growth from coming lot

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

that reinsured Did lower maybe versus to to claims risk comment reinsurance XX% back the treaty. in Protection Going average. under your YRT were do recapture a your gross XX% with have recovery anything

just a claims amount in quarter. No, of the function high base it's lower

it. face normalized or that on might just dependent is to reinsurance Or normalizing about you forward, do recovery Got retention Okay. the And the going your the add upon lower? need comment think comment more you be wondering limit? amount reduced

we with that the nothing No. actions do It take. has to

look in for can a we had. been in slide coverage about the Protection and historical the you sticks the and see that we've average, you appendix, business to at the it If on XX% it quarter, And put in XX% shows the quarter. you out reinsurance in Solutions we

assume $XX the that have. on average And we'd given. get put guidance historical us of we to just that million within mix back that business to that we $XX we've should So based million that that

Okay. I did see that.

comment your just track based your So was record. on

Correct.

Yes.

your generation? also It this quarter with doesn't like sure, XX% XX% your to accounting GAAP because payout translate Okay. exceed returns statutory to cash capital of to flow be nuances But just just DAC. did higher

stock a way the more a value, That's basis, at cash normalized On And and drive in of range payout where shareholders basis, reported paid continue as a XX% trades XX% returning to right. quarter, end great today. to the to to given paid ratio. the we we see than on the higher that

see to we'll as return so we capital fit. And to continue shareholders

Wilma question from the from James. Burdis Raymond of comes line next Your

utilization. into favorable assumption it bit in lapse to a was review. seemed especially it's the it The you assumption related and see review, go interesting a little to assumption more review, like Could just detail

the surprise review assumptions the our that how million assumption look to all to expect the We was they're business at net in manage with business. we that's in not because aggregate, way income conservative and unlocks manage why not basis. do and a review I that's Sure. emerging it. aggregate we experience investors assumptions. represented large, are core our move distracting We want on $X they're negative of the end, And impacts I in take and should across you our of would the at

So basis experience. single line look every emerging assumptions and move if We across an we that business on update annual towards you have.

So within the end it you're small very the rounds a ins to to at outs see number. day, going every assumption. single But of and

And organically? versus ability well, teams then acquire to could you Wealth Management the grow -- about to the opportunities talk

Sure.

our model them Our the we succinct and We've managers. be model. experienced bring initiatives, for into through looking them side. that which a Year-to-date, in would because the fee-based both advice for suite grow roughly we've industry our architecture people of new the is reoccurring strength supported on plus gives of platform. The a adviser investment our platform opportunity independence a advisers differentiated model, products, that XX experience retirement wealth into recruited amplified full open to

that on see traction we So side.

Fritscher the of Securities. from comes Maxwell line question next Your from Truist

I I'm little seeing there Advisory I there a growth in know recruiting, joined X this. had anything mentioned calling in you quarters I brokerage late, covered particular of else? anything year-over-year just Hughes. direct. can you're growth share? in the after in that you Wealth so year in but apologize and had you Management, Is strong and you've the for Mark contractions first if in But sales positive

aren't the Structurally cash into Yes. which options -- on people seen are more industry, up, with in rates you've the which interest fixed fee-based maturity investments. move

So some that structure the to maturities. fee-based investment it the of from shifted

terms see continues that AUA. we a flows, our As accounts growth reoccurring net Robin our investment and highlighted, of in to percentage of in positive continue growing be to fee-based

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

the I the the DOL. Maybe on landscape. back been to know has regulatory focus

of in for annuities too. 'XX the think priorities SEC I variable some include might

Just they're had you what communications there. wondering or if interested inklings on any

At on come to major the We'll have has focused of any back specific Reg BI annuity. push. implementation been the on to time, SEC been interpretations That's the variable that of you in regulation. this

it's know metrics. second Okay. then I the And on good really. just a guys flow net and the of some

areas asset be might sort through how some been declining like helping rates? think classes for this I'm credit I the strong What you to in dug these And guys how interest change, guys and you into of if point we of at is that. Day. a do kind the pretty have when Investor strategically get outlook of private wondering think

platform. outlook again AB. good alternatives Yes, feel we pretty about our it's for from private Mike, Onur the

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agnostic. rate pretty it's So

we believe will momentum the So continue.

today's for now conference you Thank you and concludes your may call. participation, This disconnect.