Brighthouse Financial (BHF) 8 Aug 242024 Q2 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the Brighthouse Financial Second Quarter 2024 Earnings Conference Call. My name is Victor, and I will be your coordinator today. [Operator Instructions] As a reminder, the conference is being recorded for replay purposes. I would now like to hand the presentation over to Dana Amante, Head of Investor Relations. Ms. proceed. may you Amante,

Relations good you Call. to Chief and were Officer. Materials can our all Chief the night and encourage and website. Quarter to President hear you released Financial Spehar, from XXXX Ed Financial and review Investor on found Earnings for these be Officer; of morning. you, our our Brighthouse We materials. Today, Welcome of Second last section will Thank Executive today's Steigerwalt, call Eric

will the the David today Chief call Officer. we Myles a remarks, Underwriting; period. Also us Marketing for Rosenbaum, our prepared with question-and-answer Product Investment and to and our Following Officer; open of Distribution and Lambert, discussions John up Head Chief here Rosenthal, in participate are our

to differ our call that results begin, from Before federal discussion within meaning like may we include of call update Brighthouse the today's on no The to Financial's anticipated undertakes may the discussed result to laws. statements of discussed SEC. I'd information results of Information materially risks filings this securities today's actual the as time in company from call. uncertainties only the statements August X, a forward-looking forward-looking with as obligation today, XXXX. the and in Financial's during Brighthouse on any note speaks time described

Reconciliation found and over as results, to measures. that GAAP measures by our based on supplement. basis of CEO, Steigerwalt. statutory in comparable definitions filing the and of now not the non-GAAP are generally management related And are historical Eric the these call, this measures on our including earnings most to financial presentation principles, call discussing due turn will statutory directly used may I'll we slide timing statements. And the also accounting to the preliminary finally, statutory-based certain financial release, During references be to non-GAAP measures a known certain be accepted measures of

thank and call. morning you, to Thank you everyone, the for Good Dana. joining

While first quarter preliminary many were developments, had earnings Paycheck including annuities, of statutory positive received the record BlackRock's deposits adjusted second LifePath sales Shield our disappointing. strong the through results, results our flagship and

statutory modestly perspectives provide is low or our XXX% in capital the on was end XXX%, change or target to risk-based normal remarks. more few at details and during estimated our his estimated ratio, like RBC to will between XXX% the below which range markets. of and and in Our combined provide I would Ed prepared XXX% capital statutory a RBC of ratio

our combined capital. strong, second performance Shield variable of company. In and in holding decline approximately the risk said liquidity the statutory million resulting a and XXX% by in ratio declined driven position the by but quarter, strategy RBC capital have at and in companies insurance founded ratio of maintaining substantial conditions, combined on target Brighthouse past, our our coupled the business, the an annuity management financial VA XXX% $XXX with position remained defined total at liquidity was As as strong RBC we and capital at life the adjusted underlying market between normal a or

However, liquid XX. June liquidity holding we $X.X maintained assets as of of robust with the a company position, have billion at

X the to To reinsurance remains our we number pleased designed opportunities, this unlock been are and results next range of efficiency, engaged statutory we strong, a position capital the restore ratio XX improve our to specific not which in the year. within capital have including and capital are While liquidity to with months. target end, RBC actively that initiatives,

Importantly, capital we shareholders. strong that believe continued and capital return to liquidity our position supports

that on business progress we derisking our year-end MetLife. business, value our be over has risk with our way, separation the position basis, from XX% we tactical our value in pandemic approximately plan, decreased roughly to our continued the before driven growth company same period. Along XXX% on Shield to pleased spread-based by and interest lowering risk the rates XXXX, by from and below our XXXX equity tolerance has Although the primarily strategic we account a year-to-date results account made the the were an interest Since grown since to also annuity moving in when X%. have variable by over are continue rate company substantially by XXX% long-term derisked

second were turn expenses through continued million, to period the progress in bringing with our $XXX year-to-date is strategy. XX quarter, let approximately executing the X% June to me expenses focused on our compared million, lower Now same XXXX. which In corporate corporate $XXX

increase XXXX, and of expect to to full we full We expenses expenses. years. expense anticipate be still evaluate management to corporate continue several XXXX XXXX than of half expenses generate to While lower committed expenses we in year and manage year next the areas remain the savings disciplined improvement corporate over to potential second additional

of I'm that of our said proud sales. distribution franchise. I've to before. and success Moving the distribution

XX% by FIA annuity sales. sales sales, registered Shield a FIA market our SecureKey was record sales level with driven exceeded remain growth first the in $X.X of of a second increase by further insurance an complementary our million and the XXXX. life index-linked offset XXXX consistent product, total increase the sales over last half XXXX We $X.X were record $X suite through which in quarter. annuities, XX, launched deferred period or first total in our of were annuity over and annuity year the sales contributing The half the fixed of annuity was fixed with in indexed the which results quarter diversified The in and Year-to-date, annuity for billion, billion billion, $XXX lower exceeded in same Shield XX% to the of sales leader annuity Shield and June in same demonstrate XXXX. Also products. Year-to-date, period a November.

a new on year. went in deferred reinsurer to of our transition we annuity for we That call, effect expected June sales quarter this as As earnings lower product. second be this quarter we mentioned to first into fixed

over million this end product first the approximately the month, about the Paycheck as at innovative our with LifePath which in example, life extremely time. our the were new quarter, insurance in of excited Shield an products an same am sales $XX refreshing Last on we steady we April. XXXX. I million, solution. period and to record year-to-date our with our of sales insurance launched SmartCare with compared received insurance increase focus along second also to life of launched and sales, XX% continued to through quarter am deposits over $XXX In growth both we million, pleased $XX BlackRock's product, that the contributed of of newest our our iteration continue Life annuity enhancements suite. I of

contribution associated plans the We be to expect LifePath solution. as basis inflows with quarter-to-quarter a on implement Paycheck uneven defined

So we quarter, third do much expect in expect but we activity more activity quarter. not in fourth the the

date. with LifePath We Paycheck's success to the launch and are thrilled

$XXX stock In we million repurchased X. of stock, $XX year-to-date through repurchased X, through common August an addition, with additional in of quarter repurchased $XX million million our August common second and the

within initiatives successes we RBC believe unlock capital to continue efficiency, closing, common have our supports We stock a to of capital the capital specific the our quarter, range shareholders and improve months. the next capital had XX that we returning to strong repurchases. In underway ratio commitment X our many in to return and while position to number through to target designed liquidity

we years to course, the to managed our volatility, and and continue changes, expect successfully last a many through have execution, challenges and over global the related macroeconomic disciplined regulatory several significant several years, focused the have accomplished future. last over pandemic. progress We in a of With that we amount

are to focused some our look year. I will We quarter I have forward second to on discuss we a detail. later our on over call financial that progress now the executing, results place updating Ed in strategy you to turn more in and this

change preliminary Thank you, with a and good adjusted and and the in earnings. commentary of results quarter with our second on will then I capital close morning, in begin review our statutory Eric, the everyone.

lower RBC As our XXX% end risk-based which of the or to between range combined Eric modestly was below in XXX% our be of to at XXXX, mentioned, estimated normal XXX%, is conditions. and XX, as of XXX% ratio market or target June capital statutory

or of Our primary as of $X.X by total loss normalized the $XXX or we business the $X The annuity driven our statutory a performance of had in Shield and a X from of quarter statutory statutory June down factors. approximately capital, XX, million and TAC, adjusted as XX, quarter. billion was were results variable result the at March combined billion in VA

quarter-to-quarter, refers linked to the indices. for accounted the have Basis quarter. risk, of to the loss normalized in account risk corresponding funds market XX% which almost and as basis separate performance of the before, difference said First, the between fluctuates hedges various we statutory

of XX% the accounted relative to Second, the of the in movement, approximately hedges quarter. Shield for loss liability equity underperformance

on sheet. profile, which associated a new risk hedges are and reflect discussed anticipated managing We all that the our the and balanced VA the statutory implementation complexity combined risk now future basis XXXX have we post seeing at quarter with requirement additional first of to achieved Shield a year-end earnings the call, on I on balance

a stand-alone new to address all initiatives action We issues, of hedging these that number have underway for month and designed business. last Shield is implemented was one specific

contribution to earnings a the XX% Finally, loss annuity normalized for as risk this strain to dynamic normalized on capital now business. quarter. for Shield a of associated most company existence statutory historical new reduces the with the and the statutory provided with in sales because as earnings discussed capital earnings, Shield approximately are first contrasts benefit call, a public a business we where This the by of Shield quarter or from position new variable in accounted our offset of

related unlock these we underway one As of Shield and initiatives initiatives to and efficiency, specific new improve a number have capital Eric capital said, is of designed business. to

While modestly liquid remains of company XX. $X.X our below June holding lower was target as or at our ratio end robust of the liquidity range, our of assets with billion RBC position

charges. to structure have XXXX, debt and no most nondividend until maturities solid flows with We the fixed of capital a company holding our that cover annual

Adjusted in average earnings higher the and seasonal There Moving underwriting above which notable quarter were lower were a approximately the items run margin driven $XX rate, corporate include second no strong and quarter. to items, adjusted by earnings in expenses. million our quarterly results.

as quarterly favorable run of were rate rate per $XXX first quarterly adjusted earnings less and million adjusted second higher was notable were above and expectations adjusted quarter. million of $XXX expenses lower lower million severity favorable versus claims margin the Corporate expectation. of compares were quarter run second in and compared Net the XXXX $X.XX with average sequentially. average in underwriting quarter which of earnings quarter XXXX with of claim were or volume items of and our quarter than our claims first the the in XXXX. The Second share, were $XXX earnings

of in higher lower to segment margin of million loss were markets. strong are quarter. segment margin Annuities Turning million the quarter. income sequentially. Corporate we million sheet Other normal the RBC a the XXX% a and $XXX to adjusted results earnings by higher annuities, higher segment. underwriting Adjusted higher reported $XX wrap higher of committed balance to reflect ratio an investment for segment a adjusted On net underwriting $XX in million, reported underwriting sequentially. The in sequentially. To results partially in and the lower of a sequential expenses reflects margin. a sequential XXX% runoff our by which earnings results & a and basis, reflect The income, tax $X offset fees the benefit in up, adjusted Annuity reflects net income earnings Life investment higher

to Our improve for repurchase our turn capital would your to capital execute like confidence efficiency our to to the position in questions. ability to plan that, reflected financial the and continue share in is program. With I over unlock initiatives on operator call our and

Research. Our Instructions] will question the from of line come Carmichael from Autonomous [Operator first Wes

bit Ed, a little could more seen between and cap risk. a this pretty I volatility bit on was stocks quarter your we've in little comments more smaller XXX. divergence equities And basis you in the significant hoping talk about a S&P

to if the sense going be ongoing I'm term. just get trying a think of drag that's you So in an near to

Wes. Yes,

believe positive our it that we either answer is or no work So will question continue, risk, long reason expect would to but there is is term. the because be from suggest this negative the quarter-to-quarter basis that that term long and volatile it no to to

forward. something results, of So would stat this positive the or biggest quarter the going where was either it had not norm as is be it But the a driver I forecasting loss. that we negative

helpful. That's Okay.

the Now other...

Just one last thing to say.

Wes. Sorry,

move Just given clear around. we that don't guidance be quarterly can though, it's to precise about a stat on be norm to because have feel that appropriate earnings that never number we

stat, multiyear norm it's our when focused more so outlook cash been flow are And that in statutory provide of disclosures that in nature. on context long-term we we the for the free

bit initiatives sales are you point. on I but a Yes. reinsurance, more capital, about little Got it. including in at like it this talked think some Shields And capital sounds also your consuming

So Or lever? gross is maybe that continue expect insurance to use the would to just and new sales a business? you grow on

Sure.

with start accomplish me think I we're conceptually trying let maybe So what would to initiatives. with these about how

the and as mention we benefit both reinsurance the value will all that initiatives franchise harm at, and business. company. mentioned as new long-term and did all the of are So as it are we not in generation to we force well They near-term capital looking of

We're excited as We're is our and excited would the Paycheck there of comments what well. Life examples. question to our very you as the we Shield is to very product. on accomplish, no. And answer change two growth the LifePath about, like So view any our about about in answer heard

no there growth our is slow in So to business. intention core

is thought the to took in Our range actions narrow similar the process back we outcomes scenarios. to market XXXX for of

environment the that in looking made over of it material there's all we're significant an good latter when we interest years, of favorable sense So years. in environments favorable some to today, near flow more a projections were adverse rates improvement flows you've at in a the the outcome -- in cash scenario. What looking cash part cash we statutory a with we to upside seen the And up lot, free is in more create 'XX in flows environment versus a much decided trade much term. of been and those out it show in always our the at disclosures

today. to create is the future do flows trading profile better we're some what cash to about generation statutory a of here cash in trying think So strong the

as user. about sales, the conceptually. to what had that's generator So company new we've When of would capital clearly think impact about from I one this gone is historically talk capital way versus a public you because has it change this Shield a a a

right I'll that we're notion Eric. are we're to the that here. I here XXX% because just us comfortable both earlier the now. got want buy duty. holding But stock the it's hedging slightly below get in efficiency, we've were mean, so will in the year, ratio program billion $X.X the will overly which me help serve but We're will want and these That in. not the back we I company. tying Wes, us to before to changes on the second in course, started They initiatives, doesn't concern XXX% here. to mean initiatives, also material, at XXX% only said, that add now continuing quarter. work These they will back to already because to operate our to at. restore double capital feel we XXX% to of RBC be initiatives as we these obviously, I it

line next the Evercore. Tom from Gallagher Our question from will of come

going think months will you X reinsurance these to take think do to it take for contracts? or to question Will first begin you is, sooner? XX how to those do it's happen The long it execute

Tom, it's Ed.

would combination So get obviously, to markets be these second XXX% of our of year, what the results expectation combination range is would volatile, us normal our I those in initiatives anticipate by year-end. two the from we can to mean, in of the of but the back and they target our XXX% half

I'll previously. and we're they on when right? this. we've a happen. will So these We to started of not dependent got Tom, just them any it's Eric. Look, one, number add initiatives, happen

later quarters. the could come to of come but initiatives of expect these sooner I on the than of the reinsurance over online including various coming some initiatives Some

to X is the and now. basis a neutral flow. the okay, ballpark, implement you I'm elevated going What Got Just normal have cetera, risk, if do One rate and this helpful, some then fully arrangements, And some result. said, free you just, you. let's reinsurance guys. then you I et a would it's after future assume these? get expect you just down hedge results, to a That's the other of and you questions, looking for of I to calms could. minute after volatility execute be for these the going precise the to run But point forma It's be? flow what that if not level pro cash cash generation is number. And reduce expect

Yes, Tom, it's Ed.

happening next statutory we versus last first to back we're a was in to that. transition for the free were disclosure the in out where cash of there Part results. that modeling made year, going on was half it So couple do because the it it 'XX And put to schedule LDTI, sense it things updated of us more of September of to long-term we our this in-house provided plan in normal year. of flows -- fully part

kind out. To it's to that plan you we this think put challenging. I view So a of free cash at give point, flow normal of

record, you the average under a of there you just of stat I look think fair historical see amount that will a million if norm earnings $XXX at but has been year. the volatility, is

heading to $X which billion a was change. made Now risk is into equities in positioning had big of in large rising that from right? after a environment. we dividend what was we sense the benefiting a by XXXX we year profile that benefited from And rates XXXX, stat, also to norm driven and We took XXXX, when was years, rate reflect thought made I in derisked which a about think on when X big

disclosures the put those out are there's fluctuation. average September. we out that a years. September. in those that again, X -- over That's have the we amount I'd But of see you'll in say we fair So And been put

we that flow be we But think where you give to in it's today. that the I number don't of given a fact me so are careful And be that now would not cash of advance possible the are I for work. free would right appropriate.

it back I guidance I on Shield. And my basis this most volatility? question there? Okay. final make is And volatility about Are question said by sort quarter well. something of you just we hedging framework that Shield the stand-alone new the VA was hedging. can doing into we'll What you are level that's I of do RBC see need based hedging greater new driven both of of for and is, the a I volatility? creating what then confidence performance -- given as about both going loss improvement changes there But on sales is the on guess the forward? had VA, to you Shield breakage less and about something your that what's heard stand-alone guess your

Tom. Yes,

So let of there I there, take a questions -- are me couple in think.

just start risk anticipated this about system of this that I'd Shield what it pursuing saying multiple off and is that So a statutory complex we emphasize this have somewhat book now talking by to point that profile requirement avenues to years. between we balanced more address was we're have and and business and for for the been have we VA. And desired, here inflection new

we been from lose very that moving fact the has we we sight accomplishment. a we when where today are separated type that the of So MetLife risk had significant of to shouldn't from

So it this that complexity, requirement. some statutory have level has especially entailed we new of now

done We on statutory complex Shield sources we than few focused more a a the because that and work on do and say that new in we're I'd VA about based so requirement. together situation manage industry statutory. we've of the fact And things have others

it, relative has over it growth in of response VA, mean significant size time situation different create do growth I'd what's I out for that it's been have always a there's of which a legacy So most some block. the say is Shield Shield of us. I'd changed given given in that now that different slightly talked just also that the Wes' lot we to does I about in versus is VA, question. a in no fluctuations results. our and point --

this capital our The growth of Shield norm Shield example other consumer. net quarter the quarter liability. Shield and to $XXX as this Shield give funding about million. capital to, If you hedges we in just the well about volatility impact earnings generator net to our we've this of stat going thing talked from that by think as to results, a take some we a That about in equity want the of, hurt the this I norm of with relative performance impact stat the an

would we capital And to we change million. you the If fluctuation, same the go go about capital. reason quarter Shield is with have the this impact and that had quarter this net been for back for consuming have generating would $XXX Shield over time had because you from that

a to that that's a taking driver we pronounced you're little and are certain why seeing So volatility mitigate more actions bit to it. of it's try

then And hedging? helpful. just change from that to you. you Got super on then And you anything think that's VA need

don't I you for that pursuing think it know as we simple, are Yes. simplifying. avenues here but that I -- It different is would will be the never I simplified. know, simplicity, say idea making

And think driver be how to risk going the of so we overall. that, that's key manage a I

come next question line Greenspan from Our Wells from of Fargo. Elyse the will

the guys right provide up of away? not program can the capital choosing why And details A, I to buyback not, shore some to pause or more with a help I obviously I guys, RBC just on you my first guess, take guess guess, parent. have position just you then did capital at a downstream you good question, amount B, here? Why not

I'll something probably to Elyse, want add think is and start, Eric to I going here.

first operating capital of on return company. plan the isn't all, our dependent from Just cash off, starting

Life decision which half, think from up how today second likely we'll that's plan, out this plays year. mean, Brighthouse off important our later But take seem I see So given we the it in point that say doesn't the that final half Insurance we an before performance Company. a make. our is would of I to make I first would money

due reliance points on with XXXX. and debt to fixed no coming equivalent no cash charges at have until XX We RBC cover the holding company the of

the the conservative I where are I've with have insurance first a life is don't cash we that half company. combination with we holding holding initiatives years, the say approach the to change would So at of we said company today play are where where repurchase the of We we and on a our feel are where think position need things with always should for we reason with are because that where that the cash, to are results going company out.

Obviously, we Elyse, going normal it's at what said. just statutory debt we look, until we below earnings, and both about Ed operate imagine. range the are need to targeted Ed the way add, and initiatives just now. sort with any can about. We're to don't where position, $X.X as the I would agree a I that just due just But stand talked Eric. the okay? company reason range, our I 'XX, to downstream we I be, that capital we work billion we're coming happy hedging slightly with now, slightly below holding talked on our and to operating specific anything not right no generally right where you want am operate see I that going of the initiatives from

between the us, two think answer. there's I So the of

and the block potential sounds to follow-up, play in at earlier from call deals. like in that And of there's some initiatives obviously then my it just multiple right, reinsurance response comments here the terms in questions, of your

you think year? in should some -- that look half, it range the get as end the your back I and some benefit to expect there's the you but back to regardless, is way the sounds I like guess, about that guess, business of that, potentially right from in it before transactions see, multiple within RBC we regardless So just

there think the happen couple certainly, reiterated to see mean, and XXX% as That We'll Look, seem some about to mean XX range never to to know. never in way operated way. weeks. I in don't his saying we this, back our have said, here. I X that. don't this it look, want that comments Ed getting will to when to XXX% should months plays a out. course and well, transactions. I appropriate I be be of Multiple, I cavalier just just do spoken of I've that doesn't We've how

we throw of saying, within be I in think the our comfortable is end range to that did. I prudent range we're to do. think out within to But going before target before I range I'm can there Do year? And possibility we year-end? to like target our Yes, feel X one more fruition XX a it's So I initiative months. is. a of the be just coming there than

I think that answered your question.

bit let to about I on more this transactions just, add rather I would initiative I I focus just focus word Elyse, you broadly on So lead transaction. long me some think thing the of versus one a initiatives suggest little and than on time because encourage like and this to because would sort transaction think -- some just would

will question from of line the Suneet come Jefferies. next Our Kamath from

were sort I Like here Going think these to X of externally. back sort we've were of surprise? build you a this thinking, it pieces seen of might not in And relatedly, take what then sort pieces then TAC of the that as came to RBC quarters, a happen? for guess of past about And we've to some surprise okay, a guess this, us, the the you you? what decline in sort what could happened I put before down as you a RBC back the did it initiatives as I step the minute. for issue RBC bit quarter, How least had us your in to here of is, question second to volatility confident first at another a come surprise to quarter, start third that up? are spike. obviously,

by stat so call saying XX% loss that this roughly Suneet, anticipated. something was what that start not would of be I I would off would norm

risk, but time, anticipate basis that anticipate X. we it's do we Now, over

negative. that And was it throw would in is it the that why of So I XX% here. performance

said what we've in in now the The last I And other that were fourth little concerned it's go capital about about of because the look to specifically were our be we handle made doesn't environment allow But about the make with Shield consumer. time, capital as a would couple the share this -- more is your in volatility buyback seen for I've talked I given at would decision XXXX a that quarter weeks. the bit today doing of back little that cut margin, guess, I that to comment on at from half. unsettled question we if contributor and we much say the to gone market you a a that to we credit. seeming

about Now obviously, say, we're that, but that to I with us. I in wouldn't it's little show weren't the you credit But worried spend, for overly probably in about bit excited we motivator market. don't was you, that assume be a premature. at think, a that was fine, a significant to market. gains if Again, profile, bear it if surprising modeling in we our concert look equity credit, would our substantial

down been on what Now I I say market normal big be would conservative we than strategic we're to for tactically have equity our that But moves not hoping would that. consider positioning. more

earnings some us XXXX. stat cost and has that in year-to-date So XXXX norm

it. Got

Okay.

volatility. market against positioned better So

significantly Ed, talked Like have you I RBC Shield LifePath sales? are capital in with that where X I think the level Is the of consumption at then, past, terms just LPP higher now And its and guess, that is you own? now to that about in now? on and Shield points. we consuming we Okay. due Paycheck capital, have what strain you're

are efficiency is with I as say initiatives a Suneet, efficiency, these that that we side the the that we specifically that would capital definitely we've at referred on Shield, capital of look considering Yes, to. factor

costs in. I talked the level is if Or seasonality? corporate higher that second related of considering? And in some you're these more you just the expenses The half, that about that just at one could to throw initiatives Okay. that some is

Suneet, it's Eric.

talking second costs first You're slightly higher about than half being half?

I said. Yes, you that's what think

companies. fourth of Yes. I situation I a mean highest, the lot in the and know that's is generally, our quarter

X think of could quarters. I good So of I to that's yes, say, we've mean, would be I bit little maybe initiatives, some the respect but had a mostly just very seasonality. it with

expenses corporate to we've the respect The ever was that second lowest quarter had. with

belt higher. So we'll it's we're second think be that. -- matter generally expect you while half crazy. what, to it the going know a I have in expenses don't I tight But keep And no to little our

move are year. half as We the about going the incredibly into be second of expenses to we disciplined

I So it just call seasonality. would

will Our line Wilma from Raymond James. question next Burdis from of come

little a trajectory is for talk you noted, on Could quarters? BlackRock bit the lumpy. I about But color little a there could give the bit you any understand flows? coming you

two, pretty in gave quarter but bringing We more expect lot just are lot on expecting in quarter insights third after I companies the is enough Obviously, still It's We're we don't quarter. next this the new Sure. Eric. for fourth. a and of after do new. a here we the quarter you But have those.

just talked in? lean buyback, but about pace? you're And any know you've continuing, lot maybe there the Is I but will a any be I talk Okay. any possibilities could then to the pullback there you about even know -- or

great answer a began about that. without I my microphone Sorry on.

said the least assume reasonable that I the the in So have been respect we're buybacks. on going future. But think to with the past, not be it's to at it's foreseeable what forward-looking to doing have roughly we for we same as

forward-looking. we've not would been I just Wilma, add, Yes.

We have been that have said historically opportunistic. we

line Our will of come question from Krueger from next Ryan the KBW.

been that internal reinsurance, that into, part questions but external initiatives revolving the around you're have initiatives is looking think On most reinsurance potential the I the of also looking you're into? of

of couple things. a so Ryan,

reinsurance at a efficiency, First Brighthouse we captive, Delaware. our already capital Reinsurance of with of all, believe, Company lot have we

So we captive our structure. in are benefiting from a

of that always avail I without structures necessarily structures we ourselves. The creating ourselves thing say second certain of is I reinsurance characteristics options. the is would The we thing believe considering we final attractive that the state the the are and looking market can today, would of say different at

Hopefully, structure talking especially feel those exist of Given our the impact if you have period where you a you're material the in we've reasonable on as the also where and this. already of something we about, versus some talked where idea that's them to type sense head in of to structures lever about in consider expect today that the like effort can creating initiatives a the time marketplace. lead involved is of gives you they time,

target on buffer to or company. charge company, maybe like Can at holding what liquidity then coverage think where you the some And minimum holding help sense give about Xx minimum of you'd be anything like us you fixed you something us it it. Got the can just the there? to whether have

Yes. Ryan, again. it's Ed

about maturity basis, have based market of now cash the low situational. happening markets I for to that target be terms to to that's examples you're a XX we're I've talking have are you buffer beyond right? billion because happy what years, XX RBC slightly in out to in a normal I of at might that minimum we have of this we're amount position debt is you going going given in as it's which at a maturities, give might of target the is to of end very XX if than think want the an past very the the is different you the what where in don't So company in holding are you a debt repeatedly Because good to have. below the months, maturity with right here what be happening example. Where XX sitting months, debt if quarter over fact the range And remind idiosyncratic the be we're environment, we because on, have be $X.X nice said of cash on to it's people points next or

number, coverage frequently for say some the at give don't charges, past, referred cash comments but in look I fixed So today relative have about we said to, my to that minimums a charges. others And and I'm in not will that need right? fixed holding when they going I've you company to these talk

is fixed charges have we runoff taken entity. those of Insurance of from consistently Life most have also that We the England New up amount a covered flows, Company, nondividend by money which and

will from [Operator Barnidge Piper Sandler. line the Instructions] of Our John from next come question

sensitivity talk exposure you about your can question, first My to please? floaters should rates decline,

catch Could that. quite didn't we repeat it? you just John,

your or Yes, decline, sure. sensitivity please? about should rates talk you exposure floaters to Can

it's John, John.

floating floating short-term rate back rate generally Our or assets liabilities.

be impact minor. margin really from rates short-term net any So should declining

Great. Shield, there of opportunity the that you're but some to capital Paycheck? partnerships follow-up management on strain the asset an external exploring? And Is I that my question. executing alleviate don't external now for then partnership an just Okay. for brought maybe know, opportunity not LifePath reinsurance about beyond just

John, it's Eric.

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call like the not any the closing any in for to now Dana to remarks. I further turn I'm over Amante queue. questions showing would back

Thank joining Have call a you, Victor, day. great the and thank today. you, for everyone,

you Thank This for in conclude conference. the participation program. your today's does

You a may have now great Everyone, day. disconnect.