Equitable (EQH) 7 Feb 242023 Q4 Earnings call transcript

Hello, and welcome to the Equitable Holdings, Inc. Full Year and Fourth Quarter Earnings Call. [Operator Instructions] I would now like to turn the call over to Erik Bass, Head of Investor Relations. Please go ahead.

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

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

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

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

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

we're a client rates continues that favorable over strong fixed interest demand will for decade. In ahead today's best the for well environment our flows. company and provide about financial rates see for morning, Holdings. you tell in story our a momentous we to investments, private of an excited lead our Retirement inaugural markets stabilization XXXX hosted the business, Equitable targets. AB very Management, growth road higher fifth demographic and and to income updated as joining and In thank for trends a marked year anniversary Good as public providing We're Equitable resurgence celebrated and call. optimistic for are interest a Investor Asset in Day to

desire Investor need the making benefit morning, for an continue on Finally, we're client provided strong inflows should to initiatives the Robin our and XXXX. provide we're financial strong over Americans' it our focus turn Equitable Then, Wealth from against outlook results AllianceBernstein. I'm Management on Nick talk momentum about to going and strategic seeing our at business and then to and at update financial and Day will Onur both progress is and attracting commercial to the advice. This for

during a year to non-GAAP $X.X operating were reported were on compared is or Slide elevated X% basis. first year. results items, XXXX's primarily returns which X claims alternative billion which our share, $X.XX, the adjusting Full prior year. After to quarters below and EPS on investments X. the $X.XX due per earnings mortality Turning up X% per non-GAAP up of to is share notable lower year-over-year expectations, operating was for

outlook operating in minutes. this the past that growth in rates in touch on earnings in on for fourth put to few headwinds encouraged short-term returned we we're bode expect will and normal While our stabilization Strong more XXXX. more accelerate Robin pressure improved EPS interest non-GAAP returns, to year, a and alternative equity levels detail quarter. mortality in well markets

testament and the manage and with results business diversified generation. spread-based long-term retirement $X.X of cash flow, earnings. of delivered Equitable's We continue of business to which XXXX, in In to and we consistent guidance. cash billion is mix strength the fee drive line underlying to

items. strong generation and the to XX% subsidiaries, us a or shareholders. At to XX% returned Importantly, of XX% noninsurance flows to holding from The non-GAAP now enabled return operating which combination operating of is notable XX% position this from non-GAAP to equates earnings, predictable and cash our XX% come Investor $X.X to company billion to raised Day, for cash up year, to the we payout shareholders of earnings capital of consistently we IPO. over at target past which after ratio capital adjusting XX%

controlling billion our we new XXXX, Equitable, has a approved ratio authorization, buyback we in periods uncertainty. of during controllables, on noninsurance Board and with payout line the towards volatility already is ahead expect our which particularly guidance. At the capital to businesses Looking have ourselves and also I to $X.X to capital-light pride flows. important and cash increase continue mentioned shareholders returning in shift macro

organization. the and include optimize to manage AB for across Equitable actions examples footprint taken both other expenses and estate the to real Some the

were to in continue our our the general financial at and targets, account Day are commercial businesses. AB's also repositioning capabilities Investor drive from compelling markets. Also take by our supported of We incremental advantage outlined portfolio to achievable which private yield strong growth in by

management very in are wealth pleased momentum in fee and out progress private the platform. as as retirement growth ongoing with We the building markets AB's well organic higher strong

strategy, XXXX highlighted competitive are which further We progress against X. edges principles, the and strong into financial a in want will our But on to and on momentum reminder highlight our minute. targets provide growth a brief I Slide heading first,

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strong up and You in flows. are sales net show seeing this our

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new shareholders XX% billion of in conviction all grow cash share capital target to track to helps XX% a non-GAAP we view achieve In generation, share ability to our flow XX%-plus remain which laid by to operating cash ongoing over value XXXX. creation narrow on to on supports for XX% for addition, This consistent leads repurchases with driver as ratio annual earnings of to plan of annually the XX% and XXXX, XX% cash we key range payout business non-GAAP target our Day, increase and a Investor This outcomes. operating earnings we we per by drive over $X prioritize of through to this. our generation value well deployment and strong time. At volume out IRRs

educators by compared Turning XX% with new today. present AB were VNB value in against Investor X. highlight want realized wealth, I $XXX we are year AUM, XXXX. driving K-XX making value we offset up business, which the of growth to leading tailwinds, Day retirement In is of of to Investor rates business Slide we our net projected from of equity by more which million billion is generated business drove million the represents core commitments. In up to Day. In than and although and the flows also market Retirement, outflows billion, we're maintain write Management, had closed $XXX year-over-year retail in $XXX strong XXXX, Asset at XX% inflows future our year-end record tailwinds. $XXX progress cash to driven the interest in institutional. in these market and net positions private We higher in RILA net AUM AB seeing market. The the inflows ahead

few XXXX, years, While Research the the half in 'XX. material still over we of first margins modestly expect joint Bernstein versus next the close helped venture of declined by the improvement

businesses, million investments is initiatives. on being the with favorable savings delivering $XXX AB our want of to quarter puts achieved track added $XX make our $XXX us $XX growth We Starting investment well million million our expenses, which we 'XX. basis by stakeholders, track also of exceed have fourth everything Nashville in money meet yield continue to from value and our of million portfolio for do, or illiquid XXX employees. of our fourth we XXXX. In allocations of investment quarter good, we including new we XXXX. In income to increased points a target, policyholders, strong all in General grade, and on we're the strategic realize make of to force our yields, combination and were on target above incremental The savings sure its investors relocation to also progress Account, spread-based for $XX net our in million total through

with of example. We continue a the being headquarters year people, invest this in to great our new opening our

designed of the Investor strategy. to growth noninsurance is and enjoyable wellness, progress This environment. to S&P laid the month, I provide a work I'm flows. To and see our its will And productive sheet to Nick recognized over Equitable pleased employee collaboration confident raised against and progress now Day. more balance additional focus our space for creating Equitable's rating a Onur to new strategy at feel turn Our strong updates Holdings up, on externally. acknowledging and targets with I on growth successes and in and being out cash we A-, sum

Mark. Thanks,

good business, individual mentioned, value record and in Mark and retirement our with As sales core in we're momentum new of seeing retirement strong flows business. growth

We $XX broker-dealer and business growth the peak XXXX, advisers non-wealth they million and driving million Retirement are for also XX tailwind running market of and demand growth on nearly scaling count earnings continued boomers a to in distribution see ahead our growth increase a we we XX% in year-over-year Equitable assets XX, accounts, this advice of productive to and Management the rate, in both X% in Management wealth grow of for billion our seeking majority earnings baby from the financial advisory RILA reoccurring leadership In our $XXX to is billion. their differentiator with advisory of under the XXXX. Higher indicator be the is is Equitable of nice reach business are business. We're plan good to the focus planner Given an organic our putting is to time very investors at XXXX, ahead now retirement strong well have platform. These well assets fee-based advantage the planners of a earnings position needs. In A given independent than provided ability demographic them by tailwinds advisers Wealth organic on sweeps. of in $XXX increased $XX XXX. increased plan Investor $X is with administration. key Management XX% interest growing critical which, annual a changes help advisers resulted Day. segment, of to making business, and Wealth hitting retirement billion year-over-year leading wealth American inflows, X,XXX in with of more combination take Xx rates number our provided net who to investment financial X% planners. short-term positioned the our a cash with advisers market with revenue Wealth by to fastest-growing personal and age top XX% had meaningful platform. We're in progress with AUA

growth strong for the earnings we could some Fed income. fee cuts pressure in rates year, AUA see bodes the in well While if this growth

to which Now our third want seed of to I the future turn pillar growth. strategy, is to

include on the annuities capitalize to BlackRock. ago new new in for our market business, Act lay X.X continue foundation in invested institutional within market passage a we with approximately and opportunity reported positioned there catalyst, in-plan SECURE trillion for of We with $X default to partnership X.X XXX(k) target partnership insurers. as which decade funds, developed guarantee annuity opening a Group trillion a in of safe assets are up the harbor existing date Today, substantial the providing in this Retirement. XXX(k)s first the served to mover implanted through $X date AllianceBernstein, target our offering and options. The We're in over with is well

We committed see clients. onboard XXXX expect in inflows to BlackRock work initial XX to they as from

on time, over it it pass will Onur? growth for potential AllianceBernstein. to next Onur over the we in years. I'll few While for take the update significant an now see market

Nick. Thanks,

asset distribution the to its well global performance. and coming diversification believe poised channels solid across growth is platform, positioned asset from competitive and industry for global standpoint, investment and continue We AB in a management is years, given classes

In by While well slowing institutional not peer in to have the grew last AB years, on we outpacing grown group. we retail XXXX, and was this immune year, the X past strongly U.S. both X% key are business. Fixed and sources continued both private demand organically average municipal wealth, who our into new Income the XXXX, which offshore has in high-income strength taxable and retail in by market driven share of year. gains over markets,

addition, total billion growth our we platform, strong $X.X AUM. which saw XX with has activity in In of funds now

of currently pipeline $XX at XX% platform continues billion base. for fee our AB markets markets X% supported be to of strategic representing over Equitable up AUM institutional our to the account. ahead, year-over-year Private area of an growth private general by with $XX as capital billion from Looking deployed sits year-end, with

further headroom seeing credit also and for is growth. business has for strong Wealth Private private Our demand

real of several $XXX have lending commitments. in to and loans $XX NAV ceded in to business, strategies raising renewable third-party by CarVal XXXX. Areas estate and fundraising XXXX billion We middle historically been market market successful target continue these of flagship commercial AUM debt, of strategy. AB well we secondary, XXXX, as billion private capital Equitable, in European energy, and we strategy included including our by lending mortgage Equitable's driven are new a by as In ABPCI, inflows

to brand global recognition platform look growth, continues AB. our leading seed future we of to As in distribution areas differentiate with Asia

We our are have fund to strategically 'XX. recently our with presence license focused a business launches operate are in in and to wholly China expected our EMEA on owned first growing Asia in obtained proud and mutual product

trillion $X general of us nonaffiliated business. $XX the to continue approximately managers. In market asset insurance insurance in trillion experience to with grow see third-party this Equitable, to of nearly our also are XX partnership positions as We substantial with assets, account years management which a outsourced global well in opportunity

XX have contribute who across markets. over and insurance manage we space experts private public We to dedicated capabilities significant spanning globally, with in this the assets

the insurance year, the team the management asset risk. was investment were We also insurance of asset our awarded Alternatives risk. team by asset of insurance year For straight Manager second by Year awarded

become Our strategic opportunities insurance, top partnerships asset targets. it progress management Robin? enterprise discuss will provider and financial over cards to now growth. I to drive we against turn additional and evaluate a will is Robin for our to aspiration to of site and time

upstreamed X, we Slide this XXXX, against $X holdings, flow we to XXXX. In we targets Day. target which progress billion Star, earlier Investor North the the to producing Cash that billion provided of that guidance out company generation and enterprise discuss I remains cash by On holding in line $X.X is annually our at year. with will financial Onur. level our Thanks, laid we

we earnings Mark above free through target. ratio enables earlier, high dividends. billion reported consistently This payout to cash operating of capital and buybacks of to XX% in flow to returned as strong our noted to XX% our XXXX, Our us return shareholders. And non-GAAP $X.X the XX% equates end

adjusting below earnings non-GAAP CAGR below after a elevated mortality of was due up alternative share basis claims X% per increased for on and XX% to is EPS items. target growth through reported Finally, XX% and investment plan operating our notable primarily non-GAAP X% to This XXXX returns.

headwinds strong and earnings our which, of with market fourth momentum both growth quarter We these XXXX, expect drive equity to ease improvement should organic in coupled meaningful in per share.

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

consecutive minus $XX $XX affected the expectation, guidance share in results most returns our actuarial the This in Solutions million, to per key the consistent experience. Across you strong were see million item there biggest management after would that quarter, versus quarter, assets earnings some line mortality markets. I'd strong that with performance million impact Corporate $X.XX a by which to Protection first year-over-year sequentially flu with AB and per collected results claims, We in $XX quarter, experience in but the but $X.XX earnings an earnings helped upper driven earnings some few tends quarter X% appendix, line Retirement total with by administration be due wanted with quarters earnings AllianceBernstein, and a provided segment tax in our in have a grew results in in investment the but in with is the on been drivers. Alternative elevated Other. Mortality returns pull $XX by fourth across adverse touch Solutions, under the quarter. seasonality also in remind normal expect a XXXX. to resulting in historical fourth favorable of for guidance to several update, reduction and and and fourth Group expectations of was alternative to also lower had end we of and the briefly for fees Equitable have added forward share. to range. We're equity adjusting improvement Protection and segments, continued detailed I million pleased season. AllianceBernstein the at following winter

versus Wealth flows. This it of addition, bodes million the had separate advisory the loss hedges little results billion, a Management $X.X Retirement average attracted net and and in were the to quarter. Shifting XX-year due the We of as impact fee flows income, XXX In income. account rate in million lower points. fourth but net quarter, on basis quarter, our reported by for third growth primarily well future had fourth treasury nearly $XXX the earnings as balances $XXX quarter declined to interest Individual net

As a mismatching creates our liability in net change while volatility a as reminder, account of interest account the statutory is accounting the hedge rate of the in risk using in uneconomic in general OCI. avoid value up GAAP to change the an the general income we in shows capital. This to a reported value portion

cash income and to ended year, navigate of provided this full with markets positive flexibility the earlier in above and we target. both which $X our This liquidity $XXX the when provides play For the ample with minimum $X.X year. We sensitivities at with is appropriate. year line million Holdings, billion, billion offense reported of us well uncertain we net capital

expect Lastly, RBC XXX% of a combined within XXX% to our above our ratio approximately XXX%, year-end to to XXX% NAIC report insurance we company, target.

Slide X. to Turning

A- of asset these over cash the stemming with noninsurance an point management value. our derived from with guidance. flows contract asset The our from important to of in of more gives company statutory shareholder our more reinsurance a uses completion based In York by of transaction which in XXXX, future calculating to prior retirement roughly were wealth from dividend with moving as for peers our wealth cash to and half more stability upgrade businesses management and an to flows strength cash high internal flows a percentage quality capacity. S&P drive and many us cash from flow our reserves this Arizona, predictable. sources of We cash Our generation $XXX view model. the $X.X flows. of management, New story to we million called the billion generation cash holding Holdings the of rating half week is management this line and differentiated Over strong announced validation approach Equitable also the diversified out cash of and continues business RBC of versus our NAIC specifically asset our of our our and company. This confidence cash makes differentiation upstreamed

shareholders. In cash $XXX fourth strong enables generation return the million, to we to Our million including capital consistently share repurchases. of quarter, $XXX us returned

reducing For million the year, spent we $XXX outstanding on by shares X%. buybacks,

repurchase this earlier generation we continue and Looking ahead, of billion on return. focus $X.X additional cash to capital our week approved authorization Board an as

attractive the us higher of generating market. a sales. XX. on earn The on great returns to highlighted consumer capital higher is and also strong is combination favorable the retirement demographics attractive driving in are is We enable products margin and business, demand to This we be for rates and new our Slide to allocate yields advice on time which new

years the Equitable, has X value past a stable amount of in business despite relatively deployed. a in For resulted new of capital this record

This economic represents strong is over business of generated value value to a discuss narrow will pricing cash range of will future for business the of present disciplined a As business capital. outcomes, and reminder, Slide of flows XXXX. continues outlook the above sales. cost beyond by XX%-plus new new Equitable value IRRs be new in value for business a our time. On I produce new which XX, of and the

XXXX, than per share by a did faster factors. a at pace non-GAAP few in expect earnings driven in We to grow it XXXX

our reduced relative elevated XXXX, to mortality by expectation. normal share in earnings First, non-GAAP per $X.XX

of will in million we our earnings term, anticipate of be as $XX mortality roughly in do forward be to the was it business in million $XX the in the $XXX not the magnitude Protection Solutions life While older block, XXXX. We continued believe $XXX we same range million XXXX it to for or age pull given to million some project per quarter. in to near

a As business to of the range we profitability we of earnings options the discussed last improve volatility. to reduce quarter, are the and exploring

of account. investment Alternative general the equity approximately returns alternative share by in equity XXXX. $X.XX earnings reduced below-plan of comprised Next, non-GAAP per X% investments total

We rates, the equity helped expect in and in well decline quarter market holdings. our for which private by equity bodes a improve returns strong to interest XXXX, fourth

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are at strong AllianceBernstein with higher a businesses, XXXX annual across $XXX equity should Additionally, in million estimate fourth XX% starting markets income the particularly in drive impact XXXX, our move have we earnings. Retirement and in markets Wealth quarter, a will on We fee higher Management. base. This asset

continue we the control controllables investment improvements make and strategic additional saves. income expect net and on drive initiatives productivity progress to to Lastly, to our

$X ratio reliant repurchases an less Similar share will come us expect RBC-based to XX% flexibility payout of dividend remain cash gives of XX% to to helping dividend to the capital. We company operating reduction growth. XXXX, more dividend per a of XX% generation share to roughly billion our from New come Turning billion regulated we by entity. Arizona's our majority non-GAAP of and And cash to cash. This earnings a meaningful drive should we deliver our earnings, we continue flow in formula. to cash the us XXXX to dividend from of makes expect of generation supported a the of and cash. formula, holding on ordinary the sources. $X.X Due approach use forecast $X.X Share Arizona strong count, billion. target York attractive noninsurance

into level macro new The its S&P yield. With portfolio XXXX peak, year. are while interest below Mark? XXXX. above will for closing Lastly, their heading the turn to XX% our And money back backdrop for continue now the we call well average rates I to be over Mark yields have favorable remarks. above a ended that,

solid in Thanks, delivered Robin. results business In XXXX. closing, Equitable

earnings ratio line headwinds, full year we our operating with in target. payout XX% non-GAAP our generation was While our to near-term still cash and faced achieved some guidance, XX%

We our also shareholder XX% the delivered S&P Index. a the total by announcement December return, inclusion in of helped XXX

to I'm Looking importantly, also new retirement businesses, the with in forward, delivering particularly on income. record wealth now I'm across of on up we'll environment, and pleased remain current excited Equitable open the improve for financial which both enhance capitalize the Investor about the and growth in ability our for shows momentum that, our at to actions We're guidance growth outlined we we and, to the Day. With line investment opportunity management confident our net margins on value strategic flows and business. favorable questions. deliver

Jefferies. with from Your Kamath Suneet Instructions] of line the first question comes [Operator

mean, update given the the are Robin, I give can earnings that an on assuming that anything include but guidance Solutions, solutions line, impact of maybe you're that I'm considering. doesn't guidance just Protection you us that you've considering? you guys for

an the timing? either an expect And what then terms earnings maybe solution? or thinking flow you cash extent to about in implement So on should we you're of impact update the

the segment. the notable In is you Solutions. and in Protection for quarter, of returns, That majority as challenging fourth call, a to was for that the items, if adjust of end year segment also earned alternative the the both excess guidance. lower the mortality get on upper which XXXX reflects which million, $XX heard allocated So

at with in and coverage But well if we were encouraged as Focusing both claims, look just last results reinsurance claims in and in quarters were X as on by quarter mortality, line. expectations this look was you gross line line. were at the

our So were in and this growth last claims quarter. expectations line quarter with

to experienced that biggest pull are we've of haven't the as said, yet, older in quarter the fourth But mortality higher seen anything season. the age in forward in do first to on expect watching forward flu call, as the continued impact mentioned and but we we in from watching I the claims. we're the due pull optimistic XXXX, tends we're We -- that be the seasonality

million the to exist. still to expect $XXX million do we $XXX So for guide XXXX

provides value being we just all on it think could for sure on us for make table we're we're going -- to long anything, But, of cognizant not XX% Now the term to flow this our to additive our going expectations. of encouraged we into not are the are that reviewing results rush smallest shareholder options noise the cash to businesses, are year be earnings. one the mortality that has mentioned, of in But term by the returns. That improves and to we're profitability said, comprising And it last ultimately, Therefore, economic mortality you for we're improve options over long as and reduced to earnings as is we quarter. shareholders. from the all returns met this improve business.

it. Got

I then valuation would a retirement. back come to to just segment, Obviously, And in and pretty Okay. low argue the it's I individual wanted getting biggest your market.

typical that bit VA changes think quite companies. the than So given and the you've all risk different a profile is I made,

I risks about getting just a still that that's a lack thereof that's to of think talk lot retained? would I not in this tail business. you've of market. in retirement the kind are Because be what business And little bit something individual think helpful or the it in the risk the biggest attention

proud really We're business. of Sure. this

tail away and is Venerable the you the that's legacy been in $X.X of this it's business, business shift net in the reducing flows see business, The portfolio. core the the mostly over has tremendous slide, journey a growth, appendix for As organic strong earnings. we biggest a in billion transaction. This in on Nick was the it's shift spread-based time risk the to across through mentioned I retirement time primarily And on board, quarter. Mark, the gone mean, the call made -- as that

duration, So the we're biggest we what into It's from generating that but the it's credit cash spread-based cash know, business, growth SCS more Holdings risk as over flows short as quality. And is The that that you a ALM improve Retirement for earnings to high Equitable we the portfolio, manage matched, cash and this comes over flows. we that will conservative in driver have really is to risk. And time, business. generate strong is And flows biggest through product. continue time.

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

in think My same right, to can know up, anything we've what guys a going conservative. the cash be cushion still pretty during year. I just through end 'XX at on stands, target? want want is at could But the plan return don't capital based this the guys capital out out, HoldCo? first healthy that you with think right? question, change -- you down to remaining to the 'XX, at laid going this parent And discussed cushion cause Robin, that past trying you're some as And take to point Just you that to you and

Sure.

just on that. to we think And reported of I XX% cash guide. And going XX% guidance, basis. out last in the let's HoldCo some dipped basis, to continue higher a a our X XXXX, on into we on year normalized paid for second. over on of We focus XXXX end payout do the

we'll to we to be at in more and if We stock of strength uncertain opportunity expect noninsurance cash market that tailwinds opportunities us XX% cash to and the represent XX% utilize the the billion some continue, asset be and be we'll that to ratio gives generation And as think our the buy look overall there flows offensive wealth. $X.X And to payout markets, $X.X business that XX%. model, strong in well. from both of coming I sources, cash. But can and billion see we navigate of strong to

us flexibility the at that we provides HoldCo. it the So want

continuing seen transactions have some in legacy large transactions. And another right, Is doing up thoughts done obviously the the then there there, legacy you updated on sector We've half maybe guys potentially transaction of back build blocks? last kind your with within of any year.

and tremendous primary retirement we'll these growth. Obviously, that's continue earnings run right shareholder that capital is that's kicks value, of than The returns something U.S. see opportunity for good legacy for in runoff to and It's off it. But we're market, provides role. value, type us. look us. where up shareholder we block less of will maximize to looking always with again, focus small. at now it XX% We're is in cash allocating it the a see. was available, if our and We It our

So optimize is we that's focus look we if for to obviously, that's something cash our growing to always attractive But flows. primary shareholders. portfolio the see

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

was industry there Certainly, and SCS growth question generally. as great products well. RILA the you've First and has had on

by do secular what interest of more the Just rates just think product curious come product about is and you influenced RILA it's sensitive demand for extent rates you not think do do level point? the for down? is product back Or really interest really demand at if to it's this that

not They're boomers got in demographic a think majority time by highlight Look, is great getting they've to of retirement. the structural Nick. years. we're the XX entering on both I This Yes. forces, it's expectations with living the to I changes average driven be just different market baby XX peak would longer, and

we say, contributing add, amplified that demand shift going geopolitical So volatility that's by, would asset forward. on. I the uncertainty I to see given would that's going structural the

So it's a great in be buffered annuities. time to

the market XX As environments. product the seen pioneer think in this rate rate over in an expansion and interest launched consistent low our you've interest years, both that and high growth, business and the of I market

per rate your be on understand I'm get interest Fed closer rates change. we what million just starting to And in then question of wealth just to as the rates? I you guidance understand the the it able point from short-term disaggregate $XX interest to -- the basis Are cut but rate a that? XX $XX better the to to to trying sensitivity of could rest just trying the in business, sensitivity understand business short-term million

Yes.

primarily, think sensitivity that revenue the rate, you. I that's the with cash gave we sweep Fed

or plus XX So better that the $XX that's, primary points would interest yield. basis to Fed basis points, minus The $XX of plus XXX of short-term think a our I XX million is rates. minus earnings, non-GAAP rate is cash points sensitivity. basis after-tax XX-year or sweep of sensitivity exposure about That's to proxy million the for

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

associated was like for the that more comments we good. going that around had is something that York. for is will from very think New I to year, looks with cash wanted the the Like a foreseeable XXXX? about should mean, that heard ordinary calculation Or check, overall York the nuanced on New future? I the dividends it forward? certainly, something Arizona. I number mean I flow I still sounds question just bit And This from come First the formula.

to understand want dynamics underlying discount want So to just there. I but I that, the don't

flows about RBC-based will insurance of deal of XX% have moved come cash intern where wealth liabilities on that to reinsurance and over asset we based with more be The our businesses, approach. transaction than to formulas. from dividend an and our Arizona, don't More XX%

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we holding is to We cash continue as the generated. why our strategy that's to at and the and prefer take the you companies seen company. cash out lot to we in that's as consistent you've possible, of company. the So -- want of flow the time, cash holding cash as see a take out we it and much have as And over insurance that --

Understood.

to it's sounds me that more something is like specific dividends? this to So XXXX

Correct.

Got it.

and but mean, magnitude just about build? on that opportunity initial about board us I XXXX. us clients think think in that can you Okay. group Follow-up the of coming that impactful how And clients, years? on over you of that Can that I are mean, will is? help few the it help is an next I the think is we how BlackRock about just had should

is This Nick. Sure.

as This XXX(k) is asset the both and Act the emerged in the as SECURE leading of managers options of companies, passage call, insurance the First, that, that's opportunity of time we [indiscernible] highlighted would with I capturing default record qualified trillion XX% roughly we keepers say, over that. stages with initial see long-term solutions. is the significant, this offering market market represents $X over

year. They lumpy will large supported to We from with then in, additional but in fashion expect by a deposits get flows come recurring over BlackRock this premium.

the So part overall, solve we're excited about this retirement U.S. the of long-term view prospects solution emerging the to crisis. as and

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

the cash suggest authorization? generating capital you're how what should -- a your about about is on billion implies, How guidance just at get free it directional flow better to you if the or bit quarter, is are return on we comment think in a at level First the thinking similar at help bridge up, if you would probably it, directionally, ballpark. Obviously, that return, on level. above billion this million a to it your planning you're planning Because wanted look that? buybacks level? just Can you're $X.X sense I at quite least that on, million that? so, what run what stepping staying can you buyback $XXX you Just $X.X really $XXX

have. expire, mind in to buybacks. us. more. we we've consistent see that's If authorization timing. were the higher earnings if will we us IPO, ended we've to authorization the had. But have That think ratio. Since always return then what can $X provides so in provides And payout the good itself, been I are doesn't ultimate guide important are The it the most maintaining the billion and we'll share us of that higher, higher, and ratio markets markets provides flexibility have HoldCo is earnings cash guidance that coming is of the we flexibility. higher up the in the And number XX% payout XX%

the is a to protection I annual it Is of going range to to because If you. Or see reinsurance pay to have $XXX protection? of about think about fair will think that we you million go level approaching down how to Got understand how guidance. reduces potentially million likely for the just finding earnings the $XXX The to you're assume volatility. -- narrowing? solution Robin, the do like level obviously, that? you dimensioning want the you're the just follow-up

Yes.

do find some reinsurance, at band by now, expect years. But we assume when to future. the it XX options. you economic looking it's Protection trying measuring that Solutions lower what fair into so for economic it's that trade-off you're the provides did it we economic potential an be earnings cost. up most Life value is a could earnings of translate giving that the may to against. But tailed, that into we're if narrow are businesses think what would range But in earnings lower for XX long may And -- would something That I or to not translate shareholders. we're we're base. cost

more. you. Got in I And if sneak could just X

has the concerned started issues on estate occurring multifamily. people spreading we'll to market, be were seems concern get created been real to call office have some now and Just about and NYCB commercial it other had whole you've they -- it that here, with

think and perspective you market exposure Just CRE? curious that to your might worse things view, have what market broader if for you a going a guys broader if are from mean to get

some market on to the I'll mainly as equation portfolio it Yes. could the well. our challenged all on and -- location broader but obviously remains like primarily again, matter. quickly Maybe it's across, use more broader Look, give matter. anything just space the dip see across are, into structures we you market, where and office on what and of does about on in And buildings you more multifamily. But really specifically type equity real estate, debt details you're

can't these as insurance just owns think sometimes the of own So banks by the company what are securities of headlines, always what different capital well. quality, the you about the nature

X% account. We're about on represents portfolio operating portfolio our office Class general the It's Equitable, with solid total A of high-quality pretty results. a For buildings.

properties and maturing actually our us loss CECL that to from It of up XXXX which as for statutory we have. The also think year internally up which XXXX We portfolio quarter, We that loan that's bodes the in at, maturities, results just and to resolved only LTV year-end, and X.Xx was valuations. than but plan. XX%, loans was from at year-end and capital reflected the the last I the delinquent that looked coverage debt-to-service was all improved in successfully we was operating that went mortgage GAAP overall reflects X fourth higher have at ratio. the metric included income our our office XXXX. slightly of It's X our the end well. X.Xx I in lower and due had year, of

So we and comfortable continue our portfolio be cycles. our ability to loan overall through with manage to very

mentioned, should I though. forward. going as the market and QX some peaking that, is help the that said rates in QX, of you challenging, with in fundamentals business As But the

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

first just I flows. question a AllianceBernstein on had

been X pretty managers the on been, quarters think, comments have X upbeat, the asset and pipeline last negative quarters, the X last of had other I but flows have have similar issues. Your many

strong what views materializing in assume moving we on your some there's rates into the So weaker around? should pipeline until stability inflows if Or are flows rates? keep

Onur from AllianceBernstein. Definitely, our sales we prospects. remain confident about

continues to net our flow into break business you If components, our consistently. X business retail its

in ex-Japan the a sales income of last had into carrying U.S. lot market new worth we seasonal like our share. Similarly, with capturing the the If et have as outflows well, which fixed skews you private X retail, other net individuals. over organic years, the towards have for net have grown the opportunities X look we And retail quarter as strong franchise segments tax in and momentum last although Japanese years. franchise. year. ultra-high harvesting, cetera, cost such net flows some equity then been at larger we they Asia And And high worth on wealth, fourth had

to flows business. wealth our we We believe terms have private going in X we're consecutive the organic in proprietary been for years. And of net structurally, benefit

predict we to space. the mandates. recent institutional few performance where challenges hard is individual lumpy Again, strategies very the think of idiosyncratic in outflows a from some partially I more influenced by had it's

view, the that alts. both our the creates towards net strength growth year-to-year in of long-term So confident which a as our heavily remain distribution you skews engines, well as if private we fluctuations or from in take structural pipeline, quarter-to-quarter flows. But a perspective

rate alts the As the underlying points, XX raises that Xx channel in private basis and that's you to the fees. embedded fee know, pipeline

that revenue of realizations embedded in terms have we since a third deployment disruptions pipeline. We pipeline first the quarter. realizations came Actually, were the the and look down. our quarter, in more But in at of you than fourth lot we growth that quarter also pipeline. so huge in So nice, the added did we of if to pipeline the don't expect

good which see right to as the into deployments, as fees it's additions turns So both well away. realizing the

following Okay. individual on And life. just up

better couple aberration? more volatile have to confidence Your were be Or prior weaker margins been part to and continue have of going do to still you better that. obviously of results they in was the last an the Do of the term? XXXX you short quarters, forward, results in like early expect

continued And we've COVID high We seasonally that's season, in well. lingers expect year do pull short million some the in in as the forward term that's also full guidance QX, reflected $XXX for a flu our given. that $XXX to million

see could continued you there. So some experience

a So far, is for though, high mortality. season peak we generally haven't seen but anything, that

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

Your And that of around seems EPS or assume down? imply so, interest go by 'XX guide include Does much? if that how $X.XX. rates to

as year-end, fund Fed curve interest and our forward we for projections, the when of rate take guide of rates. the All -- we

X% as And interest forward rates in the point return guidance and And you to X% the curves, then our want in of related as sensitivities the well. dividend provided equity equities, a it cash numbers. at the I'd short-term we to we what's also you So if with appendix, sweeps. embedded then to yield look assume an

does to to negative can And my when that the is, like? the question policies certain guess Equitable one, I won't by Or then approve novate? consent? risk that so, is a they policies move? consent is And to would Arizona, have look policyholders what novating there if any quick

vary to process novation, state. can expect -- through years. take It's approvals by overall We we going Yes. just the novation over now, state X which

provide states consent. negative Some do allows

been is approved to states were regulators. Iowa consent already policies Some process New also the by reinsured the needed. York that undergoing has and We're novating Venerable. This of provide

aligns helps peers to our So provides it flexibility state. that's our financial forward. And think going good we in broader and us us strategy and

comfortable quite that different a have, we're and but process we there cumbersome state-by-state. process, is -- So but state-by-state, it are rules with the

what Just they approve one. don't if I quick happens a the mean, policyholders if to? have

Then majority But the we like York would policyholders today are some internal expect over. the the of on and majority policyholders they'll novate their in they operate of stay should reinsurance. New

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

up that. wider market correctly, On Is if more product, -- was like about looking just function you're the a and that SCS distribution, the the of numbers seem XX%, to you at I'm productivity. double it seems RILA

leader. You're already market the

sort of whether of I'm gains can you've kind the you seen? share So market curious sustain

articulated. Look, articulated that Nick. positioned We Over Day, on reasons we share years, track disproportionate we were record. is a XX you space got market. that value capture this the This pioneer a of think we've Sure. the in Investor well in to for the as we're

Our portfolios. needs advisers, how of innovation our that's both are, as understands is our privilege new distribution, continue highlight would we is get and well segments. I new our advantages thinking to this well to this more have innovation third-party advisers that as as what on into part for, to as integrate of advisers Equitable a our innovation product drives given are in looking as portfolio one continuous client Equitable through leverage we this and on the what feedback the

is market. inflows the Does some you noncore dynamic exempt a the tax in more become Or there net channels inflection where in Then that the described by outflows offset Group Retirement, continue? inflows point prominent? the

Group of our tax the I positive exempt we is our for Within $XXX corporate is new or quarter, core and $XXX tax institutional. enrollments Retirement channel client driven highlighted, flows by million, say million, channel for had our contributions. and you comprised X business, what would channels, renewal as Mike, Yes, exempt year, the

of more grade better advisers educators plans with slots. scale are to retirement to that our advisers the and payroll of work teachers, that we retirement. serving we're proud As from benefit provider contribute X,XXX And #X kindergarten X,XXX XXth the supplemental prepared over XX% for

we we a we inflows. had result, good see would consistent strong organic that, ROAs. In and in -- expect flows, the corporate As continue market, to growth

in in highlight older as about of reminder, these needs, given solutions look sort to advisers, distinct model where meet is here as of their the start and institutional prepared Equitable be XXX(k) we confidence channel, lumpy. consumers individual as 'XX. see model noncore with saw to and the in we remarks in the we the which outflows our we'll function see highlighted Those Group Retirement step XX% but some we've into got highlighted, As holistic blocks. I will you that large, outflows in changes the a this from reported of flows would questions, worksite translate

Citi. from line Ward your final And comes Mike question of the with

you've what wondering seeing announcements, demand maybe of think and different to forward? post just through about Fed January just the how going I products was should been terms that guess, between trying individual? December, in think levels of annuity we the kind I

protected looking move continue and buffered Look, Yes. demand through stories they fact to annuities the reasons for both the grow, people retirement structural we see the for that are their journeys. for equity

dynamics. Traditional driven there, also structural those that demand by continued was see So growing a overall, [indiscernible] we question?

Yes. Well, yes.

And ensuring a secure solutions, future. It's then, it's part equity everyone part people that and look, income we having allocation protected of retirement the a Yes. portfolio strategies. are of solutions provide to is provide, income for longer and we critical broader the tax secure living apparent

So we see continuing structural demand to grow.

sustainable we value. an create to can in parts continue market value of focus that the bring We on edge where and

it. between thinking kind the protection, of group then life about for maybe mix and non-mortality just And Got benefits.

been pretty growth. You've good posting

side consider growing ever a you're and non-mortality if Just bolt-on type on that there? you'd working like wondering how add

as employee the that because shorter We've about covered. tail talked risk love portfolio. we XXX,XXX over duration, market product earlier our it's benefits We lives Yes. to grown lower and it's in

It's a from breakeven. good small still through. we've few growth So seen come years away a part,

rise. But to As its threshold flexibility need provides us I capital the high to HoldCo accretion be at it's mentioned, shareholders. we situation to offensive, have because again, the had a to

capital of -- Asset allocation then on the M&A, And focus be is HoldCo, through. the given accretion first levels of threshold was was those it's need. to and a more probably again, would see but come that accretive are Management we we that probably high in properties primary it it shareholder Wealth So

you. today's Thank will joining. We conference you thank call. conclude This for

lines. now disconnect may your You