the in Thank with equity earnings our our results operating you, on prior six, adjusted change Laura. the from I'll year's slide comparative quarter. levels begin drove first market lower where
in These and a of under factors In I rates account last rates interest spread of include derivatives change and the quarter derivatives. interest our other options our our from addition been flagged to long on credited contributing reduced from on year-over-year duration income higher part have VA operating lower income lower past. assets lower management, separate that fee income operating strategy minimum the have rate management protected fixed
and the in to commission adjusted positive income, offset Over short-term shifted earnings. investment block, higher increases from will expenses loss. net be offsetting this provided last time, mortality closed these income rising lower rates operating income. Given partial year, asset-based to impacts in investment on by have the Improved our
fees adoption approach This to on LDTI. reminder, did reflected we as guaranteed operating the not adjusted adjusted partly has profit from assumed below benefits attribution, earnings, a in a earnings. fee of a within impact approach operating taken our are is operating Jackson following negative adjusted As report included of guarantee guarantee earnings to all of believe we why conservative line, the fees no the with treatment definition
losses, due First shareholders quarter net attributable earnings. adjusted healthy partially from nonoperating operating XXXX adjusted year-end value to offset down by book to was hedging common
we've reinsured As basis, Laura general account GAAP statutory assets. withheld presentation on included both investment earnings or our assets mentioned, US appendix portfolio the and in excluding funds details the parties provide third breakdowns to of that additional
Valley banks for only First Bank, in near-term cycle, withheld provide and exposure first we banks. any transparency, during point to X% had regional Jackson's Signature potential no exposure exposure grade at a zero is assets. statutory ATXs Republic section expanded this excluding million the bank Suisse regional limited on credit and Bank funds smaller portfolio Bank around commercial basis, the Regional focus Credit specifically increased Silicon remains to to investment We had and securities we investment with exposure a with quarter. only the to greater exposure $XXX our on Given below to positioned mortgages. conservatively
notable the the Slide for in items seven first adjusted included operating outlines earnings quarter.
to market a need item this item meaning impact. only following DAC will quarter, last This amortization is LDTI, we expense partnership no that notable sensitive adoption we a As of longer as quarter. income noted limited not that notable for leaves for the movements,
The quarter the XXXX of to partnership period of year. included lower limited in income prior levels same compared the first
Results the of Comparatively been income comparative in earnings, of from returns a $XX well limited above lower XXXX, impact the million would current long-term one-quarter pretax were they benefit million creating negative limited with which had quarter partnership $XX quarter expectations. a on first investments $XX long-term of partnership a was lag expectation report have than to in matched the million.
effective the had than first tax to lower prior XXXX the quarter. In the items, notable addition quarter of year's rate a
larger earnings operating meant higher basis were tax current current on tax pretax were which dollar two rate. periods, that a than XXXX the had the a similar benefits quarter, the the quarter in these that First of effective case year period to reduction in
flagged from items difference, VA decline year's the A due prior XX% were rate crediting the notable the Adjusted the previously minimum was per portion regulatory requirement. both rates down option in this to quarter. the substantial of for from share and fixed tax first increase earnings
quarter weighted Additionally, share benefited first of count to activity through first quarter share the XXXX, to average due the share per quarter a diluted lower of current buyback XXXX. the from relative earnings
repurchased quarter have end one through May in activity XXX,XXX We since second of share continued over with the the shares quarter, X. our buyback
adjusted X changes hedging accounting includes to of our first Financial with values will Jackson loss $XXX not of that Slide assets. illustrates pre-tax under attributable GAAP to quarter Net million reconciliation our some the liability income pre-tax $X.X align earnings of the billion. operating in
accept the economics benefit in particular presentation hedging guaranteed for We volatility. GAAP the treatment focus well our has resulting under non-operating variable choose of This as and LDTI to of liabilities. changed the statutory the on position annuity business the as
calculated had guarantees LDTI, to as some as embedded valued current were derivatives Prior were assumptions. fair assumptions using insurance effectively we that long-term using contracts VA some that and market
we fair risk via MRBs, these and liabilities valued. now implementation, benefit effectively LDTI or guaranteed report as benefits market all Following are
in quarter. first total side Starting from table, result hedging loss based markets or fee benefits which significant hedge guaranteed can the These the stream you support a guarantees. $X.X the in the our in budget, a and the are of stream of the results account hedge stability when benefit guarantee providing chart, $XXX the was base our waterfall shown see million the on to left first of the resources fees the value, rather robust hedging calculated fee As of than billion to protecting quarter provides net decline. guarantee
down non-operating Consistent freestanding on in as S&P a the movements. to of X% billion rate quarter presented was up a with our in were equity on the $X.X and offset gains when derivatives practice partial loss from derivative liability hedging with was losses rates interest all align There with the guarantee hedges are a modestly. fees primarily result income
discounting Movements same explicitly to in impact of returns, equity the calculations future our offsetting. to a take we reflect do which flows, large the not of we and in were rates the liability as of changes on future gain, part the both which the equity small largely in that hedging, movements, impact in into the assumed It important cash as which account rate from note well MRB market rates MRB due net interest hedge. is provided
to movements expect to be Because when would associated assets. would net rise, interest it in interest larger the that hedging rates you be will being than impact equal. negative positive of rates decline, you hedge and this interest else rates means when MRB expect the That dynamic, all result have a
simplified net with of our of MRB assist the our change that provides the of a financial in supplement in of of To you includes that a components appendix roll section slide forward. detailed the analysis, the presentation, liability includes earnings definition each roll forward
third on changes embedded by to value. be loss to Non-operating losses impact minimal in AOCI a to results as primarily of withheld in from parties. adjusted can withheld $XXX are on reinsured include well account reinsurance also book the was period the due which to transaction, funds business million These derivative, items that net as income. net treaty from non-operating related period volatile within offset reinsurance includes This Jackson's investment the related a resulting funds an
capital do Furthermore, flow. not cash items these impact or our statutory free
a Importantly, to a result increases hedging net full in year. it the billion rates was XXXX, loss while the in quarter, $X year was benefit primarily interest approximately in this over due of calendar
Now, Retail ago, industry-wide are Variable consistent down annuities starting periods let's with a look annuity our segments slide sales year at business volatility. with of equity market X. versus prior on
While are total to annuity by continue XXXX. meaningfully annuity up supported Jackson's we sales, RILA first are significant which of down and are quarter and fixed VA fixed from sales as well, sales volumes produce indexed the
in XX% first this XX% as lifetime without to year. of percentage in benefits of quarter last from sales the our Overall, retail increased of quarter year total first a the sales
this and consumer market based to expect over We somewhat conditions vary on demand. percentage time
through lens products of viewed we $XXX of are flow net in a non-VA XXXX. the other gross sales million to in translated and the RILA nearly When first quarter net generating flow spread
to valuable provide efficiency diversification flows economic addition capital annuities, benefits. partially these offsetting outflows In in net net variable and
mix new of from sales strain. business standpoint remains the overall our Importantly, efficient
segment at primarily first result credited noted year's the on adjusted on account earnings Looking This Annuity the higher and prior for VA quarter. operating of pre-tax fee management was from down options, XX, interest are on the Retail reduced we earlier. our the under assets fixed income impact slide of
support variable earnings, our declining a Laura helped As and structure expense environment. has AUM in efficient highlighted,
As we payable, the the quarter impact of rate segment adjusted portion starting retail policyholders will interest disclosed in see annuity of our variable annuity a increase in from earnings to in last option. first minimum the have XXXX invested guaranteed on assets negative fixed quarter, operating the that the
interest, a quarter This compared on increase on yields. in as offsetting $XX driver invested increase higher benefit to based was effective that an they annually of at are to we five-year XXXX. the was reset rate first reinvested year note, was is key rate minimum XXXX. of credited in get first our time over is treasury the the It up the will which from This important assets the in and higher rates million
since with buildup Because As of the allows fixed $X.X first the $X.X our on sales quarter, we of in fixed contribute quarters of of have minimal the book, to end of billion up of we at value five are activity end built quarter. RILA AUM for age an billion value. account sales immediate surrender the growing to account launch. Similarly, of early and in first to indexed annuity the RILA
shown XX. other Our slide are operating segments on
investment higher from $X offset period, were quarter increased in values income. For down operating our and first credited for operating the $XXX partially segment, were derivatives million $X.X sales net totaled Pre-tax billion. losses higher were institutional and interest account earnings of million year by prior on $XX adjusted the million as
business. remain GAAP since is and stabilize the provides value is cost-effective diversification earnings business what The generation. exhibited to committed benefits statutory capital We of is through to broader our than our it helps institutional
Blocks Life a and Lastly, first adjusted the losses mortality. quarter larger offset improved our on compared reported quarter operating year Annuity operating derivatives, loss to by partially Closed reflecting prior segment
benefits. some future Under segment experience LDTI, quarterly in we now this additional due policy the to update have for volatility will
it a given small in net positive be would can a any figure overtime. this quarter, to While or we expect negative number to
basis, gain million. You quarters where million gain and $XX to this on only from last loss of a ranged of $XX in million $X to our a can see supplement the cumulative totaled a financial of a five
capital XX, our quarter position. Slide first summarizes
to million to strong gives in a As Laura million we $XXX start million. which year pace shareholders our quarter, target us first the capital us $XXX on to year return puts full the and $XXX to mentioned, our of returned achieve
We the which remained X.X quarter, active share $XX buybacks or first during million. in shares totaled million
repurchase share remaining million had of Xrd, on we As $XXX May our authorization.
Net end quarter at quarter. holding from quarter began RBC XXX% we this our equity preferred operating and tax the including ended within XXX% million liquidity $X.X related the of within distribution over billion the of company with our target the offering. importantly, of we remain range in proceeds and And impact, the range, deferred asset $X to company
would helpful environment quarter. it macroeconomic think the the review to be first I during
While would the equity way. simple and a rates spikes interest indicate volatility of markets along both point-to-point view interest fairly tranquil pullbacks rates period, and a exhibited markets rapid multiple and significant equity with
Index the market's was the banking This part which was its measured In by to to highest the as among reaction outperformance the period. in handful crisis XXXX led to market companies. the since MOVE fact a concerns to the interest due financial volatility in sector, at of concentrated XXXX level in rate
As our diversified managed a actively underperformed the account well. result, this as case more in index and diversified was separate highly respective funds their
of positive on types RBC over our a ratio in isolated quarter, the or mean these While time. revert to an disconnects to tend can they have negative impact
is our point annuity as by of Another flows block. in very a the is cash healthy measured to important that projected book consider variable position the
discussed hedging we've may lead create surrender asymmetry between position value, reserves past, flooring the the these an cash a assets. in reserves out to of which As at this and statutory can
hedges embedded experienced The healthy I with combination that drove not rose, the remain. which volatility first by equity still were flooring in noted the books as the offset extreme cash elevated We reserve quarter markets in earlier, losses during flows on releases.
the due reflect value to the results full However, conservatism statutory in the economic rules in CSB to limit the our ability floor.
items from knock-on impacts on a total RBC Additionally, which further adjusted effect deferred these admissibility, asset the tax in had the decline capital ratio.
deferred realized, capital our not eventually allow position. fully tax these is and statutory assets believe to be that them economic us the conservatism we does current in recognize in but that value accounting However, there will
mean required update the markets and Higher which declined CAL, to parameter lowered the reversion capital equity from or materially our year-end.
the our and rate volatility. was heightened fees guarantee spend market hedge the collected interest quarter despite equity Importantly, within this
the previously by expenses have short-term interest rates of hedging discussed, volume both see our rates instruments stay driven higher the term this longer rate and way. we within As continue the in is rates. environment hedging of book, to protect of of used limits, key hedging benefits are driven in the And driver a necessary is which cost interest which risk we the to to our by
of of the at issuance was be to $X.X our November, in Our our that the end This million time. senior continues minimum buffer. retire our intend which holding to we $XXX company excess boosted over was that by prefund cash position first effectively quarter billion well to quarter at the first coming during and in maturity preferred debt helped
Following that are maturities retirement, level until capital debt comfortable absolute we our have and and no structure. debt with overall XXXX of
renewed year early, revolving also extending term the of facility February credit XXXX. a We proactively our to
in Our our return managing and strong capital position gives our supports flexibility business. us targets
back I now will Laura turn over remarks. it for closing to