Equitable (EQH) 1 May 242024 Q1 Earnings call transcript

Good morning. My name is Dennis, and I will be your conference operator today. At this time, I would like to welcome everyone to the Equitable Holdings First Quarter 2024 Earnings Call. [Operator Instructions]

I would now like to turn the conference over to Erik Bass, Head of Investor Relations. ahead. go Please

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

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

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

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

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

call Mark. over turn I now will the to

today's call. earnings. quarter morning, thank for the to into higher Holdings in beginning translate you Good and our delivered strong momentum and first I'm growth Equitable joining results, organic that pleased businesses is

management to also dignity. and and earnings supportive solutions, is of delivering will live we AllianceBernstein, a fulfilling and with Equitable and This management while lives flows growth help continue value to retirement, future see wealth Equitable clients enabling which asset in for business, by new Across trends strong our environment. demand generate favorable on strong our helped mission retire macro cash drive and demographic to our

X. Slide to Turning

EPS non-GAAP were in on the offsetting XX% quarter, which prior year. million, up and to $X.XX, basis. non-GAAP or was notables is per quarter earnings adjusting operating a the were for notable after share, also per year-over-year items operating which is First $X.XX compared share $XXX up XX% There

we accelerate headwinds discussed experienced saves and ongoing to growth the quarter, account and investment lower easing benefits adverse XXXX, last by As organic alternative expect mortality in XXXX. driven EPS growth, from optimization productivity from and strong non-GAAP general in returns

You annual continue saw and growth that this we forecast to to quarter, XXXX. XX% XX% through EPS

billion. AB both assets in from Looking increased under should which and administration, forward, $XXX growth management Equitable benefit XX% year-over-year and to

remains income. tailwind In addition, and rate environment sales retirement the favorable for a interest investment

first we Equitable XX% the million at also guidance. of This continues the quarter, to payout ratio $XXX $XX of XX% our bought end upper million of a in stock back and equates consistently XX%, And paid of dividends. return capital. to total to common

providing continue this of the growth environment. remains company, We billion ended $X.X the asset $X.X quarter ample billion wealth to cash assets returning cash generate billion and roughly liquid coming take of with Equitable and of on in to flexibility advantage holding to capital both from $X.X at with half XXXX, and of the management. attractive track

strategy. growth our to Turning

expand growth businesses. see spread-based our in inflows a in which Robin billion, $X.X deposits to and our businesses our organic we growth of core although strong will to higher-growth momentum into by year-over-year product, driven good products. rate. another on retirement, RILA annualized scaling across Sales were later all this XX% and seeing net continue be continue with up we're presentation. emerging We had our X% translates quarter business, In while largest

mandate. a the market also private strategies. strong, solid continue low-fee result closed and AB's points in XXX positive, management, large private were asset very at sits majority XXX very active an venture the April currently inflows which research on wealth pipeline passive joint Retail Bernstein institutional billion of net The strong had AB basis. overall by to billion, loss expansion on annualized partially will flows quarter. also being In margin in with the basis $X.X $XX.X to net of a X, with flows slightly of be offset

earnings Wealth track ahead to target, by fee-based XXXX in organic and our helped strong markets continue investment management well of accounts. growth favorable

compared past prior advisory outlook XX% due to departure than quarter, the Over year, $XX organically. and the year growth quarter, up adviser AUA business recent has slightly remains group X% with grown is earnings the this trend an but the lower to XX% the This billion. up strong, to

license launched future China also We've growth. first seed earlier and made fund strategy to received year mutual March. our AB its good its this on progress in

initial received to in-plan BlackRock's guarantee Paycheck the growth be flows excited April we offering continue about LifePath in from opportunity. Additionally, and

over the U.S. discussing market call I Please Equitable turning couple Robin, like minutes I'd Before and a of retirement to Slide X. to growth spend to for AB. the see and the turn opportunities

most the the and globe, seen market I've by a U.S. had reasons. of across working far businesses for is the in the attractive few I've privilege retirement

First, huge over size market trillion the largest XXx nearly next of assets, the $XX it's market. a with of

a for that longer, is an retirement solutions. necessitates living of clear market need population which there's private a higher savings. aging Secondly, has The level U.S.

need people to traditional defined which not income, own. to this figure convert has The individuals. not Americans that pensions their to their plans shift of means savings lack to will also security are how most equipped do that out defined savings need, Social to contribution and meet into something is burden from the on transferred lifetime benefit

this a Solving critical and for the presents is Equitable's to challenge need central country mission.

amongst X.X By XX the have a baby projected We trillion, to is boomer turning largest U.S. through XXXX, retirement $XXX with are of gap developed far by Americans the million XXXX. peak the every year for reaching period countries. retirements,

and our engage to our Equitable advice-driven with retirement capture starts this combines on Turning ability with to management, proprietary our focus wealth management. distribution and us enables X,XXX It product intergenerational to Equitable whether careers needs. and has business clients to integrated actively their I'd wide tailored retirement agents access model AB to starting reach and model are wealth unique a to This clients income XX,XXX Slide retirement. like transfer over of their in relationships. or provide X. affiliated positioned advisers range are through to they opportunity the solutions, of and producing how asset manufacturing all third-party midst savings, through just on that directly targeted

We value strengths, the provider of allowing by having Group opportunity of and an retirement growth grow against with retirement From proposition X In Retirement providing downside a capital. the and protection our offer RILAs plus believe generate decline. compelling income registered also to perspective, our the potential are Retirement, to RILAs. while Individual attractive XX% annuities, index-linked spread-based, have RILAs consumer on In Equitable's returns we to leading us range that product, IRRs focus chosen offer businesses, a have market distribution we a leverage on narrow of segments Individual or capital-light are partial compelling outcomes. market

Over the last X% to of segment generating XX few segment over months, market new strong next fastest-growing growth spread the be the delivered annuity Retirement business. and our income of value has organic higher LIMRA years. the Individual while projects RILAs

a advisers through supplemental This are where We across for specific We a a XXX,XXX teachers dedicated needs. that providing educators. today, growth savings provides with understand Equitable's the in steady X,XXX work X,XXX competitive retirement real market school worksite is educators' with distribution And operate districts. we market also advice model leader advantage. over K-XX

define very we plans sit decumulation assets to are plans. the trillion by a guarantee of Act easier in-plan add today. The $X for of contribution about XXX(k) Finally, sponsors excited to option makes emerging market. passage annuities the it XXX(k) placing plans inside in SECURE plan Over

So tremendous and with market. April. AUM Paycheck its managers has has in opportunity and the XXX(k) billion offerings LifePath and received we BlackRock up of inflows $XX fund XX for this both target-date BlackRock initial signed leading for AB, currently represents us our plans, Equitable solution, a in industry. asset with

the Beyond can that outliving innovating all real risk people across are proud that address the we from can a savings. protect social to their we working We and understand. opportunity, need Equitable are of business AB, them very

from as one Equitable's AB currently assets. do Despite most most benefits account retirement general of savings $XXX retirement inflows. capture X% challenges those in the spread-based average growth retirement also products over years, peers. the greatest AB we as AllianceBernstein. everything annuities, better And like in assets, directly market the is than asset will and third-party much continue grow $XXX of billion billion it in management growth Equitable. annual of active we the over has facing RILAs manages delivered Underpinning past manages AUM in-plan for X of organic AB AB to industry,

able a and to U.S. huge and believe Equitable is in Equitable asset together, unique privileged across in is being all market truly product it retirement distribution, position. opportunity, management. growth presents manufacturing Putting I participate The a

over it our Robin to results go in I'll to more through turn now detail.

highlight a quarter $X.XX the Equitable Holdings $XXX in for to million reported per earnings the Turning of operating quarter. up I will Slide share, results year-over-year. or On consolidated X. XX% non-GAAP basis,

offset was as reflected While year-over-year $X.XX and non-GAAP notable of ex X% the and of repurchases ongoing a these the we're and notable favorable we basis benefits also XX% is seeing items, This markets one organic another, couple had sequentially share. in a items EPS results. per up strong growth, on share

core earnings with a want are to year-over-year in items the line in on included in of expectations. I appendix, fundamental was our but basis are the across indicating businesses, healthy trends company. by segment there each Details a Operating few highlight. increased Mortality

had in been we was which the claims has temporary the assume We've view now that winter in elevated the the where first our impacts experienced X forward. flu half line with As XXXX pull to due of first claims consecutive quarters our season. a expectations, from mortality a higher supports in reminder, quarter

also $XXX new expectation still to X.X%, benefit $XXX improved to $XXX year, Annualized million higher year-over-year. basis. in quarters. Investment on over earnings general to operating which is of above with still to For relative assets the the yields, a and full basis investment alternative XX% our income quarter. growth volatility net we income up were some continues the returns the Protection was from in million, expect Base points recent quarterly million X% yield which were money portfolio below account but XXX Solutions

rate first in quarter, year line We Turning for tax a the XX% our with consolidated guidance. to of reported full taxes.

rate to of expected Our year the benefits. insurance below XX% for of full the is due XX%, tax timing tax a rate segment refund had which approximately

the hand, which is had guidance year elevated tax XX%, On the other XX%. of full of our slightly rate a AB in above quarter

offset XX% outlined administration by income year-over-year as under from targets and impact management. and in quarter track management assets net our against than Net and and interest higher enhancement $XXX productivity of Total in was more inflows the strategic execute markets. by driven tailwinds increased on and Investor achieve higher yield year-to-date was equity million Day rates market the the retirement to X% the equity account to our wealth at continue We general priorities. and remain benefit

quarter of $XX deployed billion platform. of commitment our billion we to end, AB's $X.X Private As Markets

$XX basis. billion AUM AB's annual Bernstein research the the We In the earnings improved during and first expect XX%, an inflows an improved net deploying margin by the to growth have services XXX to transaction SocGen. operating operating to impact of margin joint adjusted quarter, by billion $X.X quarter. commitment in but finish supported first XXX AB's April, This points on on second will the quarter. the closed basis In immaterial with go-forward in AB of venture active

business supported retirement robust spread-based reflects into interest Retirement Turning sales. products a year-over-year Group Retirement. are to This of Spread growth Slide up the in combination XX% sales rates shift in income XX% flows, is and towards earnings. tailwinds in and translating and equity Individual in X. up higher net more retirement market by driven our The RILA

crisis. RILA shareholders annuities As has different economic variable risk very products provide for pre-financial a profile reminder, and good a than returns the sold

investors still BAs all ] lump to together. [ tend Unfortunately,

every are purely invested from address So to products. like product product All a perspective, I duration we a short a minute the deliver The based matching. product date option rates tight the XX%. average enable weeks least annuities. is a similar retirement we and general solutions. costs, fully need of RILA consistent of interest a X spend account, fixed IRR in and We hedged to it at the and market the ensuring current our at the protected And maturity spread-based equity fixed client exposure highlighting want can why ALM on time assets is issuance. reprice RILAs for

a growth and are key has RILAs driver have now in Finally, Individual Equitable required for a fixed product investment been for this capital roughly AUM, net capital and less half than light Retirement margin. annuity. of of XX% the of account RILAs higher

actions yields higher seeing and account taken we're allocating general addition, from enhance private by to of In the managed to our AllianceBernstein. rates assets more by portfolio we've benefit interest

growth Looking account stabilize. assets growth general expect income forward, we track spread in to spreads roughly in as

an assets. Retirement rate growth over the had this spread-based look past year. is Individual at faster if even organic X% And you

we as accelerate general Retirement, note benefit Paycheck second also expect Group inflows the the manages account In account from assets important of have begun the to growth in directly LifePath It's Equitable's this quarter. to BlackRock's the portfolio. vast majority general growth AB, which in that

in margins are With the will XXXX. $XX Private markets billion, billion growth expect Markets AB's private to we support and time. help rates boost These to AB's to assets billion by this $XX fee of over business grown Equitable, and $XXX the reach has and high-margin

spread-based block are that fee-based have products, in-force income market strong still from in benefiting policies retirement towards new we of separate shifted business accounts more sizable returns. and While a has generate

are Similarly, current levels. fee-based seeing management. levels, or build average fees charged revenues in they continue for above and to we growth if healthy markets based year-over-year at AUM remain wealth Since should are AB on

currently earlier, X% noted the we alt in year our to to be in We as recovery income variable full quarter, investment expect results I as XX% with to similar X.X% annualized delivered portfolio some coming quarter range. our this quarter a second Finally, returns target slightly below first saw return.

to consistently to Turning shareholders. cash to continues return predictable Slide Equitable flow X. generate capital and

share payout approximately at the X% end XX% upper million, XX% During accretive to an XX% continue to non-GAAP Buybacks form return, which reduced guidance. a we and over quarter, equates we earnings our operating of last our the count to returned capital ratio be of the $XXX XX by first have months.

to at $X.XX pending quarterly plan in payout dividend approximately also maintain cash May, $XXX million. our common dividend the shares approval, on which will We increase annual Board to

liquid closed above holdings, the $X.X quarter We assets remains with at cash target. billion and minimum which of our

NAIC-based subsidiaries insurance of fund to year the capitalized. cash gives ratio flexibility payout ample upstream are growth, RBC ended ratio and over capital meet also of ratio RBC Our our an a and We well combined This commitments. with XXX%. us XXX%

forecast this to coming billion We and billion $X.X generation of $X.X management about continue with to that cash year, our from asset XX% wealth of businesses.

cash Bernstein is million flexibility is $XXX equalization the pay AB to payment of down Holdings provides which to AB financial joint future. position, impact Finally, venture, transaction from received There a no but closing research used more this debt. Equitable in the

for me over turn Mark let remarks. Now the back to call closing

'XX first Robin. Thanks, higher delivered to adjusting beginning items into first translate as results increased quarter both EPS, across XX% Equitable organic in which notable growth momentum periods. is strong non-GAAP after for versus businesses quarter our

half on payout on We XX% ratio in with also for track coming delivered XX% cash of billion target are approximately businesses. $X.X XXXX, and our $X.X to billion noninsurance of to from generation that

deliver guidance. and well This asset our the we've environment and and a confident ability chain in Equitable's the seen take on best value to capture Looking for growth to full over XXXX in remain is distribution, leaves it. of positioned to management ability decade, across manufacturing us advantage growth strategy ahead, well I unique our financial

We'll now for open line the questions.

Instructions] is Kamath Suneet [Operator line from question Our with the of first Jefferies.

flows. start Retirement wanted net the with to I Individual

RILA? Can a you is I just rollover demand into color in be XXX(k) we've Are probably annuities are would of think from? level on color where that that some terms seen other funds? that these highest some time. the Just Or helpful. in this these long is are second provide rolling coming

that talked they from are demographics coming equity is We the Mark are that This Nick. These chapter for life. or continued as looking XXX(k)s stories. demand is their dates protected pre-retirees structural of out This about. target coming the see of retirees Sure. next approach

net of As LIMRA. the Mark XX% to according the that We up highlighted, and in this flows. is segment year-over-year near-record relative show the sales fastest-growing to a increase market saw

a to the market, to growing capture this in As in a believe privileged pioneer we're demand. we continue position

of a pioneer Given in market. are innovation, our history this we

through demand. distribution third-party both capabilities demand XX,XXX asset management advisers but That's of sellers the is to other active not and networks that meet having Our privileged distribution plus Equitable the through just the AllianceBernstein. the

possess, emerging. these share a others that's the assets So we're few in are we capture disproportionate of position a to and believe value privileged

Got it.

Okay. for I makes my That question this second Robin. billion then guess at sense. And you're billion of expecting cash year. $X.X another holding so company, $X.X the or

you target of what billion seems at like feel that to do drawing going So think to it that's plus. that It unless $X some about some well knock comfortable that target down for of point just you you're as $XXX be excess, to redeploying capital. going traveling of mean especially million? time that north we I start

Suneet. capitalize highlighted with about Sure. gives the be growth at We payout capital us It on delivering confidence XX% ratio also billion just environment holdco. attractive $X.X while target. that position our strong Thanks, feel we'll good XX% Nick that the to to able the

we funded rest Retirement, at Keep At pipeline a BlackRock strong That's the same launch end LifePath in Individual the business we the out of we payout mind, new paid of for earnings. Paycheck the sales the quarter, operating XX% a of higher record level in during our new of of have our including the product. year, ratio. time, and the

be us higher markets to offense us expect to as directions. draw to we holdco down to ratio. the defense of the continue pay cash prepared that but quickly out on as both And know both So beyond can move also in the naturally on the we end continue want we

position. we'll in way, strong pleased either but prepared act to we're be capital be the So to

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

to gone it mortality affirmed like the guidance on My I elevated has Robin, Protection the year. of... couple at least away for know sounds first $XXX the million was million for you Solutions. last $XXX question And

you -- I'm Elyse, go. sorry yes, there you are

Sorry. Yes, thank Go ahead. you.

I my about was sorry, Sorry, asking apologies. Solutions. Protection

$XXX full And that under just year it's that a to thing know So of you business. a forward the in quarters of that the the the $XXX guide, reinsurance from no mortality potential million. obviously, past, perhaps good looking given consideration reaffirmed past? But X for the mentioned into you mortality now perspective. longer million pull earnings been I is is

Thanks.

And slightly do line year, the to the was So due full being highlighted see normalize from challenging pleased a $XXX the us, which we typically consecutive $XXX we mortality seasonality X we call, our with worse in after expectations. But we that's that the of quarters in quarter, claims to net should expect first to we've our XXXX, as given. on in million flu. were basis for year reflected guidance for full million and the

potential the On have noise evaluating our protection multiple to we to business. constructive are reduce for for and discussions the reinsurers and continue improve quarter-to-quarter options reinsurance, profitability in

continue is continue business for the this reevaluate we next to for our guidance increase longer few mortality volatility and we'll to XXXX. see for margins quarters, over to continue goal Our time. term if consistent And the reduce over

then were Flows AllianceBernstein. positive you And in guys billion on quarter. the And institutional is second my question pipeline. $XX.X highlighted

get the of that this trying for you business a and rest over Just year. this trajectory to inflows the just of sense expect

the line. Was Onur, you're on clear? that

active net Yes, income flows of a billion private of you was This We alternatives. speaking supported Onur net by in and QX. strong in flows a $X.X billion fixed from strong flow AllianceBernstein. $X.X very quarter are Sure. had right. in

launches. our we expect our year, flows the in of as rest Japan the In several side, continued retail. franchise mini U.S. franchise both to This And well terms new into includes have fixed see franchise. income fixed then Asia, of in income as alternative taxable our on we product the

then just product We CarVal And have we our the first retail. for U.S. soft flagship had launching fund. the in in semi-liquid close

result, a rest private the expect and to year. fixed of we as the alts income So flow those into continue

positively. we the is which to equities, that, particularly outflows, U.S. the in In a outflows equity our flow couple institutional, lumpy unpredictability presence of the inflows there, both always of franchise, had and successful there's Japanese given continues further a past. But on and very nature

environment, equities more with we strong of although is definitely Japanese uncertain fuller mixed franchise. like valuations strength the macro see areas some So and our

the So good overall, as which feeling so well gives what second optimism the year. pretty in rest us quarter have quarter, seen the past for about the of far as we

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

question expense that should the start uplift AB from was that XX% SocGen was first you onetime XXX- XQ benefit? transaction. -- My XXX-basis-point on margin The with Is out back the margins. if we more to around the

I'll you. to it pass Jackie,

Thanks, factor QX the the starting Robin. the margin onetime with out research if back which Yes, you Bernstein starting onwards. included margin of in benefit, the you and Q before the the annualized services where -- factor XQ obviously we That's is so the from XXX-basis-point removal XXX- benefit. full in

like would That as all a point, the imply low it. XX% Got else equal? margin of starting Okay. kind

that's correct. Yes,

already insurance Got -- Or you that? in it. a was there statutory GAAP to for it And litigation the quarter, impact then a an capital? like had did Was million that your that $XXX Okay. basis. have looked was of on established reserve least cost that at impact

Sure. take that. I'll Thanks, Ryan.

the So that just are billion. The issue raised age XXXX increase face of in that $X.X of XXXX on XX just value cost for on issued XXXX. over that $X to policies were we Those with and and between policies was had total older. amount Equitable COIs million insurance,

So sizable. pretty

accruals that don't years, impact to get to Over litigation the expect go-forward last the this the made and expect accruals half time we've we any and process we've have, back guidance. we we no obtained, few roughly and value at additional that during our of

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

understand I to it impact? stat in that not it but you said million, clarify, Or was is $XXX not thus stat well? is the Or far, that stat as impact a just go-forward, as nothing well? you say there a did -- Robin, is

to we balance well. stat million, also, It in value is. $XXX the of reflected total the increase, the through the $X.X well, that's billion sheet that our accrued under as It's as but obtained policies

the Can the close and just weak then Group of future going then of your on on And that expect related talk and also about on margins? it. what's there business. and that the you the impact drivers you Retirement Got revenues

To Group slots plans This school provider in XX% our institutional, to start, is that districts advisers X,XXX line: corporate retirement barriers in serving tax-exempt, is Retirement Mark referenced, of business, our X which #X as is Nick. business we're segment. comprised worksite In Great. and the reported tax-exempt supplemental X,XXX K-XX value XXX,XXX entry. with in and over strong teachers work contribution advisers. in higher with with levels, have The teachers consumer and that resulting

In year tax-exempt, last when we a flows in XX% quarter, based line with activity the first the saw that COVID. first in schools post positive premium year reopened up on from fully

So consistent continuing we with growth organic, would solid that expect margins single-digit area. in steady,

have higher industry, Similar on impact flows. net an the to interest rates had

the receives corporate coming rates. primarily other line which and in Group then investment sleeve, market, the our account saw balances concentrations older-aged outflows from driven discontinued by broader Retirement general guaranteed we higher that higher equities had options and higher Within asset clients

being within clients note in the the fiduciary standard. XX% And change the as the of as participant within of roughly retirement needs intended I from income. Equitable are that XX% products were would under using product driven, a advisers, outflows, their other retained outflows lines remainder, for

our the business the would confident and flows tax-exempt. So to in institutional in BlackRock with earlier organic the call. finally, given line, expect referenced Mark growth And we AB see that our of remain new we partnership in emerge

I products negatives any majority comment of But your rule? rule DOL the to able impact the on from weren't affected. business? lastly, of of the your sort then positives just are realize and/or And on you

Sure.

some rule the adjustments, minor there While were no material had changes.

views our impact result, changed. the on a as So haven't

on channels. Currently, securities Equitable, channels. products distribution broker-dealer XXXX-XX. Reg As advisers the nonregistered under standard Equitable nonregistered fiduciary that you focus the mentioned, we SEC on registered registered we sell PTE impact see At companies operates through and through already BI biggest

we impact. see a don't material So

industry concerns and that With the consumers. to impact the has on process broader the said,

going we and we'll be So situation. expect the litigation forward, to continue monitor to there

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

this modest we LifePath just Paycheck flows First and to retirement the move on is expect be BlackRock to in question this this incremental? on Or needle rollout. group more XQ? Should going is

of It's very on in-plan Tom. bullish opportunity. Look, Mark the Thanks, business, our Pearson. this we're part guarantee

Act in the easier sponsors makes long-term to a for As We're it significant potential there. you us know, to And give going option in decumulation SECURE it's growth very there. bullish. add

received from BlackRock the we flows have. partnership already We've

have market with the We will at the start And out they there BlackRock to we from end been over of have plans told in of commitments billion QX. report $XX target-date and that XX those funds. know AUM

those of receive an and start allocation plans, clients we above. for year of will remainder this So XX aged to the

think year, will It bit bullish we'll time terms will come net flows. to to this take be little on I So though. of meaningful But see it as flows, it earnings a in and to we're contribution meaningful start through it. a of very on

insurance charges. That's to good the color, of Mark. And then Robin, Ryan's I question, on follow-up just as cost a wanted to come back,

I it. sure I understood to make just want So

from you was benefit of you and referencing back. on expect $X.X said you're So -- that the it billion you gave the ultimate block half got repricing you

and million for clarity just related a COI? already the has cumulative you of or can we all to COI litigation something pieces? the seen of have So -- bit provide Or Like that of $XXX hit? the repricing of XXXX like charges X little that

Yes. Sure.

in So when we $X.X the PV made the XXXX, increase the total time was increase value, value that at the billion. of

further matter, And which $XXX the guidance. few related back. quarter. expect to We last this the been not expect in first accruals to million, see we was don't any in impact accrued get $XXX total, we and what to million of go-forward do any it's years, Over we've roughly

next Dowling Your & question is from Partners. the Joel of Hurwitz with line

pretty forward? interest Despite the sizable spreads I earlier, in the do some see improvement discussed even quarter-over-quarter. net as that just of on up account And you the follow flow that to moving general wanted was color on year-over-year I was there. any significantly group. and sustainable pressure guess margin up

Sure.

retaining for the line. business, business equity group in -- that earnings, of million I comments mean, leverage bottom great we're up strong this markets, Nick's quarter growth the have XX% operating see in was I So the $XXX and fees to we year-over-year. say earlier, those to to

So pleased through coming growth with side. earnings group the we're in overall very

improvement they in that net capabilities fluctuate the well. segments, investment a income of so Remember, We've continue could net income grow the seen through good investment to from to different is as we allocated of the expect AllianceBernstein. do But to lot quarter-to-quarter.

business quarter the benefited the tax. group from well, as favorable In

So tax, to Retirement the $XXX some think good a million of I alts net the mentioned, the about the of number is for of in Group million business. $XXX probably

Any terms flows? another then compare And business does And in have? follow-up how of Okay. what other you the to of then That's profile product. And return on way initial Retirement the business? can that the that that April that is the Group BlackRock helpful. business, you dimension

not the We're going going quarter. to to forward. the to flows. it be the wait Sure. business of But as Retirement expect to Group We'll accretive Mark second we ahead mentioned, get

of the longer-term returns serving spread to of in highlighted in capturing see to is the terms to similar it other meaningful would client going need retirement on In flows call. and in marketplace. see products the term the but potential the we perspective, U.S. that business, I over -- you're the When of we think Group Retirement this Mark relative the long demand real when market that

impacting net about bullish ahead see term. it But want to come flows. see to near in earnings of cash really don't it it, the through we're start don't So or opportunity, get you'll in the

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

the about a potential and management talk of scale little valuation bit availability wealth you deals? Could

share necessarily but it focused to always said, market the in pretty We're good in that being opportunities on that look time. specifically high this on relative and -- we're bringing on smart alternatives we on on active, look in be at experienced deploy. the international, the the to and it's up don't That's AUM see experienced them. shareholders and we you year-over-year at That M&A U.S. and we valuations hires. as side accretive wealth to leverage we see to continue buybacks deals, being to numbers market, think headcount at -- hires We're have we're Yes. where

in the term. we'll So concentrate where near that's

growth the M&A, through alts asked targets. get about coming the of that group to just order that remember, our in with business the something and deliver AllianceBernstein, just And we through in business, I see the to -- BlackRock isn't we in individual when want business mind keep questions M&A need we like

plan we're performed an growth. we'll it's but Our such will where option our prioritize be time. to getting an and option, continue because good organic growth tremendously, That's just has M&A

Can later you the expectation outlook then normalize just on provide little a little bit them bit the alternative in for 'XX? a in investment to more and returns color XQ for

in on returned alts the quarter. an So basis first X.X% annualized

pressure equity, returns rates We due second caveat expect being increasing. to under the The been quarter. real similar some in estate that's

outperform full as maintain will expect to the continue slightly XX% we to the long X% For these still be our the below equity. as as to funds real relative growth year, to levels at equity markets estate

It's So the asset over class annualized we're on long an the quite term. returned comfortable with XX% basis.

So it's to in X% XX% that long-term given. guidance the we've

Your next question Bob is with Stanley. Huang Morgan line of from the

driven first by XXXX. maybe quarter question is the that things Obviously, first strongest fee was nature. and that's since income my So NII, of higher Retirement. Group result probably on The

Just should macro given forward space? how power about going we you picture, environment, flow earnings term for that just And is? the how broader earnings that durable the broader trajectory think think longer do

Look, Equitable it earnings growth sustainable. retaining The growth the is seeing through as good Nick higher premium, advisers. first seen XX% mentioned We've that saw in we're flows year I we across surrenders, slightly but in -- almost it of terms time. earlier, we're of

that continue BlackRock we we material, LifePath risk-adjusted there's mentioned, good And the then deliver earnings. business. product to as top leverage year-over-year. I invest equity And in see growth and in there continue more on becomes and over time, As good have as upside that, of up higher well. We're continue to we'll if XX% markets operating in returns, yields

Or rule. are I follow-up But on is the under fiduciary between DOL channel. My products standards. Great. any that that BI there sales on already side impact Reg have sold earlier for an if about well? know rules impact on would of operate the under -- curious you as AllianceBernstein you're AllianceBernstein things talked Equitable proprietary distribution that the are

the but answer in jump can is Onur there, no.

Nick. Onur. you, Thank Yes.

our versus validate, any based don't we on the yesterday. Just ruling change to DOL business on based the assessment, in initial trajectory see material tomorrow

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

that the the of account of just Is earnings is we business, value regardless What's bit. value? Earnings relationship there? -- the the down. In terms were legacy taper see what a actually kind happens the of up to should assets, in little account continue relationship

Sure.

run business legacy to the off. So continues

in outflows saw You the with guidance. our quarter million. of line That's per in $XXX $X.X billion annum

continue as XXXX, the that under well strong income, less going X% than higher more by cash course. In it we'll It reserved. off you're from expect account see off. earnings to going so flows to it benefit quarter, value despite fee to markets immaterial to pretty run will it's then that's will So get be continue help but to of run and equity normal

think -- of what allocation -- to of then on they the in-plan say, allocation more is emerges when then some folks you opportunity to idea sort and plans? of... way go into level kind are and to the of you're these perhaps And real Is mode, shift early annuity-type you you or you the those kind it do maybe the that products, there's about anticipate growth, decumulation as that the that give

this Yes, Nick. is

Let of on color bit you that. a me little give

is First, work let's as get retirement. roughly which and LifePath is as start to the the AB's income closer of $X there's $X allocation way Paycheck the and towards funds. market, consumers product XXX(k) allocated The trillion an trillion target-date guaranteed market, towards annuities product consumers broader

when would annuities, -- turns a LifePath that within they and allocated the participant roughly XX. starts Paycheck, in specifically, or would towards be build XX% So a XX, age consumer

that. link and payout. then opportunity fees the economics the is would the annuitize, managing if of to And off both they assets an So annuity those

an asset how inflows come target-date as the So this that's on class portfolio. would within both think remapping. The a I will about

saw that's and converts it they over that as grow then in consistently X comes lumpy. We plan with the will time. case So receiving why years ago a AB

Mike question Your Citi. of the from next Ward is with line

LifePath time, you over could in with potentially, that exclusivity it? has Or the other partnerships wondering funds? or similar retirement of kind any contracts opportunity On like just BlackRock, if with receive interest do or

help on and as the well. partner product going We're the to them there BlackRock Yes. develop with We're happy on relations them, the specific and have with help to product. another LifePath not comment

we market the first In reminder, with years in have AllianceBernstein, addition, was partnerships ago. who XX

on this with and types pleased with different that, need retirees. of to others continue for offerings So retirement serve to we'll we're work quite income U.S. for

guys Okay. that business you the that you business And business group think insurance in and or strategically. wondering the about do just protection, growth of investing think about how then how

segment It's investing to in time. on growth seeing the breakeven I'll in Well, come we soon. we're protection highlight business. point in we're this that at across actively the that of some Nick let numbers expected and

see good we prospects. to So continue

Nick, do some highlight want of you the numbers? growth to

to we're say technology, Yes, relative our powerfully is our within our a would yes. disruptor positioning I simple. and line, new Benefits Employee

We continue to see strong growth there.

up to the alluded First Robin a year gross have And premiums It in breakeven continue as XX%. to then not-too-distant to, we were grow future. this. expect will

are And concludes for further Thank questions. XXXX you Call. Earnings First no this the There joining. with Holdings that, Equitable Quarter

You may now disconnect.