EQH - Earnings call transcript Q1 2021 | Equitable Holdings, Inc.

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Operator

Good day and thank you for standing by. Welcome to the Equitable Holdings First Quarter Earnings Call. At this time all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Jessica Baehr, Head of Investor Relations. ahead. go Please

Jessica Baehr

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

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

Our materially differ indicated statements. forward-looking such results from or may by those expressed in

the information. safe our So harbor on you I'd like of additional to Slide presentation to for refer X language

Joining call Equitable and Robin Equitable Officer; today's of Dibadj, me Executive Raju, Chief Head President and Ali Lane, Strategy. Financial President on AllianceBernstein's Pearson, Mark is Officer Chief Chief Officer of Holdings; of and Nick Financial Financial; our

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

Mark Pearson

resulting passed number by has our improving, XX-month first good times. in confidence with of plans. time. optimistic new one-year extraordinary Since the thank the looking in here of People the least, with were morning, $XXX is outlook and inside the infections high year assessing turn more can the for future over challenging quarter and I'm so a now clients. with this you, and up resilience virus XX% you share the late momentum to feel, Thank beginning and relations in anniversary the Jessica, I non-GAAP lives and first digital COVID-related entering are the then, are Slide strong million momentum. you high. in consumer earnings XXXX. pleased for been U.S. of U.S. positive per pandemic, economic our deaths $X.XX changed X, been to QX, of shown hope all-time connect Equitable hope Please your crisis highlights at was year. to a to an health capabilities quarter share, U.S. together innovation and or are company. to the earnings the These the reaching and and report these It's peak in some and again of where in a are reached we continuing and that We've It's brighter previous reflecting safe Sadly, once I a healthy. operating first priorities our joining families It call. when and of come of all the remain goals, have to the Equitable. stay people their

first Our earnings subsidiary, well XX%. distributions by growing performed particularly AllianceBernstein, and with quarter

net equity are management and quarter. markets by $XXX under this to flows good supported up Assets year-over-year strong billion, XX%

pre-COVID levels. remained business. we policy, runoff to company management $X.X with Capital continues quarter, in fixed our business. positively Total billion the our the back $X.X excluding the of the and how balance rate ratios activity thanks risk inflows cornerstone is flows business New net in trend GMxB billion, now economic manage to sheet legacy to were net strong, of

an of the shareholders the incremental repurchases of Venerable, on a dividends annuity risk close transaction million our variable $XXX million reminder, the and profile share first quarter. $XXX And track with deal. we to the improves in second reinsurance which close repurchases. following through quarter We returned to as Our in landmark Venerable remains expect

growing and capital-resilient focusing position, on continue focus by and value to on driving maintaining leadership shareholder innovation, our businesses. most we our client longer-term Importantly, engagement

market, Now our X. innovation, view. capabilities have one billion we key and have will our Retirement, of Today, Group market, a of driving attractive Educators' number GMxB two low In and increased long-term quarter. where in VA are has detail solutions value, reach buffered over our confidence we enablers first provide had and we business positions the product number assets. grow. of we $XX of legacy more Despite retirement look-forward a turning annuity are the to this we supplementary Slide In provider shareholder assets, in ALM are distinct which that in our I K-XX number on sales of give have SCS approximately excluding competition, intensive. Through matched and $XX the leadership in billion broad our ability in distribution now number capital player block, the product fully markets. to us record

the past evidenced IUL market, accumulation benefiting We on the premiums protection up VUL digital our engagement the the In XX% year. quarter. continue are from Life pivoting to to by teachers profile, in here build-out our of improve with our risk we the VUL in business,

net for XX% with to With under channels benefit first continue inflows advice, the assets investment the research of heritage We quarter. in quarter. from $XX to billion of respect our business to AB, grown wealth all active businesses, across totaling up and our has nascent in AB's ingenuity, management $X.X billion

these virtual advice more in advisors clients times. meetings have well and to benefiting seeking Our pivoted complex from

division over Our significance now Employee years. enrollees to in XXX,XXX grow and will continue next the grown has few Benefits over to

approach satisfactory persistency of loss won. resulting accounts ratios, strong technology-enabled we've is in Our

embedded throughout who the business. of ceding by the from commission and our from reduce portfolio our the reinsurance growth and combination targeted risk inorganic VA tail and our build-outs. discipline and backed economic VA to grow Venerable our are two will legacy approximately rigor Financial $XX of hallmarks our AB, acquisitions, remain transaction to Apollo, The team We to of are risk with CTEXX organic continue billion positive now soundness This including team capital. lift-outs as growth business inside well reserving. committed grow of continues as validates alternatives a business

predominantly improve positioned. investment-grade is reallocate $XX in and conservatively will remains corporates general the returns. invested illiquid Our At time, risk-adjusted appropriate account assets we more to billion to

manager unique a having and strong is Equitable asset operations strong within and structure insurance corporate Our Holdings. a

We create better for virtuous have risk-adjusted afford the the multiple time, alternative at strategies high and shareholders. same general AB managing yield, and in here account businesses cycle new a see our to for

value-generating unique Equitable Our the that importantly, the risk [Technical and approach remain implementing Difficulty] for and strategy provide stable agile enablers, shareholders. across our our methodology most working confidence we're will and organization

strategy do only being our demands a that force that quality in we and run our know course, we on very the of good. Of part success for any talent not our of depends but we the best well, people, that business

Let we financial just, thriving Slide me purpose live important page. has in X. detail sustainable never Please But people achieve on the provide lives. next better difference. more we more and a to want order and resources helping wellness the make also to more society, have to turn build been to the help Equitable's

So in addition these environmental, to we first time social the to using earnings and for our results, our are QX present governance financial call progress.

an this We will with ESG Environment. year. follow this up report starting annual

amounting risk AB XX% especially the offering collaborate goals. into University's to with ESG portfolios companies by has to approach portfolios. their our quality to to impact. overall committed billion account has and of sustainability now aligned around management. management. $XX returns Approximately a are partnership which And our are the in purpose of opportunities integrated are presence under assets scientists that climate of of us to of factors and corporates Columbia Our improving XX% investment general investment-grade also promote with of Institute, Difficulty] UN for enables investment assets AB in Earth And AllianceBernstein's their investing into ESG under portfolio an is process we [Technical climate improve to established renowned with integration

our and and culture. Social, to where in we stronger skills we by equip particularly live groups. our underrepresented foster diverse with to among aim fully build inclusive economic future, people a work well-being more holistic aspire workforce We communities to people disadvantaged needed for and invest the fostering growth, the promote and and

equity equity, by and support we've late, the Of build-out. a in the racial of During and this of for and foundation saw invested our supported within over during including working, with employee also did of of incorporating of hours Today, We've design progress enterprise completed. COVID healthy this Gold our the remote training CEO communities. have to we programs to it. the framework, work of Charlotte rather fully but importance the processes, taskforce rollout of inclusion, wellness made campus a agile working one-third is workforce XX,XXX our down also with agile Certification of fostering evidenced not accelerating creation on redesign slow we a working, environment, thinking crisis, our people period programs support disadvantaged the we've WELL better diversity, developed

Chair, set of Finally, newly Equitable, risk governance. security articulated leadership, and IPO business governance for of policies, We information an robust opportunity standards protections. our took strong to independent experienced clearly highest diverse the Board and the principles listed the including

have differentiated sector. with sustainable the framework insurance We management an risk ourselves more robust for also advocate as a and

Additionally, interest compensation balanced we seek to through a stakeholder management align with scorecard.

pass Equitable ESG all profits. materialize now As continue it progress, quarter to to to efforts results. in our first by front I'll Robin? opportunities Robin through our bridging walk the of and excited I'm

Robin Raju

Mark. Thank you,

on XX% for net capital share, Non-GAAP Non-GAAP increased to segment primarily billion, attributable I positive to markets to quarter, first the revenue fee-type quarter year strong share balances repurchases. investment strong and quarter. operating million were will first up earnings higher supported program. $XXX alternatives, share our by prior results $XXX before on $X.XX AUM to the providing by earnings our consolidated increased and for in increased separate million account Turning operating equity review detail Slide income per X. by and per flows. more driven from results management the $XXX

GAAP the asymmetry is the was and the accounting $X.X by hedging Moving net GAAP which a our liabilities, in billion line We with results. expectations. reported primarily our in loss quarter, economic in of driven between to which

interest Equitable reminder, ratio. In which expected we means bets program managed full XX% as our our we with a and liabilities. fair a take not is economic As rates, effectiveness hedge hedging performed quarter, a on value on do the basis,

Our continued our and strong economic underpin results. prudent risk framework management to

death higher in segments. Moving Individual X% the sales business SCS strong separate versus fees. on prior of I account quarter of higher reserves growth XXXX. and $XXX million earnings and to quarter due the to assumption of down impact were X. the Operating offset begin from with on This updates Retirement from first will year claims both the Slide

XX% billion, in equity strategies, solutions depth for our and as with resonate premium and distribution sales which were product Net versus current looking quarter, protected continuous attributable clients, our from block to year direct record prepare to and in-force. outflows breadth in improved our rate driven continues offerings $X.X reflecting First innovation. with is SCS on the our of expected inflows by for fixed de-risks retirement. by sales further prior they structured line of capital-intensive expectations capital our offset

$XXX net quarter, higher plan Retirement in the to flows continued up We appreciation increased deconversions values the gross quarter, corporate and trailing revenue higher inflows on months. terminations. account line operating higher tax by in positive to driven in million, reported Slide XX net related market Despite in Group markets primarily we Turning prior experienced earnings premium due billion the supported year our Account prior outflows quarter, alternatives X. XX% by year to approximately with and income fee the and over of XXX(k), exempt by values. versus on year-over-year $XX.X

up an X% effectiveness of see model increase relationships demonstrating the clients. strength tax-exempt and in to our our contributions, engagement of with renewal continue year-over-year, digital advisor We the

by AB of first channels. AllianceBernstein higher active higher million, of strong deliver basis. of a strong prior flows. to by with $XXX AB's of due outperforming the Total of net active yield. XX% a the base positive operating active $X.X $XX end remains alternative quarter provider to across income adjusted net under strong virtuous strong market quarter two-thirds were to a inflows gross AB's capital permanent and which of operating channel, inflows business, and were five-year reported which with year-over-year, supporting these up driven all net Equitable's growth billion contributed attributable generated the in on sales, of Slide inflows. factors equity expenses. cycle average continues a the X. flows performance margin results the quarter of to in the delivered general In up This date year AB in and second retail AB's AB distribution XX% performance turning on three billion up AUM lower quarter, and XX% approximately XXth is Equitable Now for quarter and earnings positive operating Strong led quarter fees Overall, on primarily end. strongest Both risk fixed to has $XXX of the to alternative with investment the to the billion management assets AUM net billion, equity quarter, at consecutive $XX at account first sequentially, the from sales grown XX.X%. platforms

million, to We the Solutions XX. million Protection unfavorable $XX earnings largely by $XX of down quarter, year Moving in on prior reported Slide primarily operating to COVID. due from mortality experience, driven

impact While $XX we the at COVID-related XXX,XXX quarter. with were remain deaths net our excess we U.S. are the We per U.S. $XX by claims. about million distribution to had but ongoing earnings of the record in higher COVID-XX, XXX,XXX encouraged end lower guidance vaccine death million the claims to by efforts, of in see excess saddened first driven

from offset XX% by Benefits the year-over-year, this and Annualized year-over-year. momentum year-over-year. variable life Benefits XX% Employee business, reached IUL quarter, up the prior pivot up XX% enrollees, in which away XXX,XXX written gross is universal were year was Our which driven But up up business, versus continued our impacted by year-over-year. our product, interest-sensitive premiums XX% Employee premiums

Turning and assets of and resiliency XX. We strong I company holding to well highlight balance capital the cash liquid well our our remain minimum like would above the sheet. with to billion, strength $X.X financial million position, our $XXX demonstrating Slide our of at positioned and target. liquidity

of management shareholders, share $XXX And to intend capital dividend million to increase second to returning including our $XXX the in million $X.XX execute we to repurchases. our quarterly quarter, per continue We share. program,

of reinsurance we transaction, legacy repurchases execute our $XXX reminder, a addition close of XX% the to payout in in XX% plan million As target. an incremental ratio following share to VA to XXXX, the

ratio in our a between position strength reflecting RBC with and the Holdings strong billion. XXX%, line Our is cash of $X.X financial at combined evidenced by target XXX%

turn to Venerable back As Mark quarter, our VA closing our which now remarks. mentioned, for we With with close call I reinsurance the transaction strengthen will that, second track Mark the further remain sheet. on balance will in to

Mark Pearson

you, Robin. Thank

quarter. would Before to opening I up the questions, from highlights reiterate like to this

First, activity. another quarter strong by new supported we've robust had business

capital to range shareholder managing our position VA approach legacy well business the that, to the on economic value we leverage With to a fair wide Our of keeps strong and through horizon, transaction the us with our positioned close open to continue I'd questions. commitment our like economic finally, scenarios. ahead, And looking line to for to strength deliver on long-term providing manage value.

Operator

Wells question first with the Elyse from The Instructions] comes [Operator line of Greenspan Fargo.

Elyse Greenspan

thanks. morning. first is capital Hey, on question return. Good My

assuming, for top the just And that how year should stock capital the above think You $XXX on was. kind of to just function return assuming that? more about QX. come target XX% and where that to that? guys maybe the XX% views payout came just XX% we relative on obviously, of would in rest I'm in a the give the the XX% price you of of was million some Can to the

Robin Raju

we're here. capital our company. It's the and $X.X cash pleased Elyse. holding with billion at you, with liquid Robin position of assets No, Thank

we As shareholders, you back QX, be saw XX% full for our to we million in ratio to expect XX% $XXX returned to the within payout and year.

as quarter you to [indiscernible]. $XXX we've we'll to us payout know, the addition and in XX% with of active date. we market market, we're additional the to million momentum ratio, announced, an to In the But and in at we'd that the deal, be seen returns have pleased XX% Venerable share as close expect keep like every to the

Elyse Greenspan

over in to you from talked AllianceBernstein, and about through kind thinking just of stake, the question, of helpful. went size COVID. kind whether of guys would That's with off as year, mentioned putting past change uncertainty stake the given Okay. my second And your we look have the discussions you we if back then your to

the stake that out, with have there's it thinking might this of through terms what might into about just rolled other in line that do you're right, updated coming do you like, being that you and of Now side some back sight come of you the seems with of decision? thoughts kind kind to how when of thinking of kind vaccines

Mark Pearson

for Mark thanks it's Elyse, the Hi Pearson, question.

important all about XX% extremely I it's flows channels. Firstly, us think AB, to on levels whenever business well, up traveling three we earnings, record acknowledge is for talk the across

very we're happy with So very, in the investment AllianceBernstein.

Equitable, For very there our a nice stake obviously, gives access us capital-light to business.

to are seed for have teams investor And than commercial propositions provide cash anchor investment clients enables put think and together we We business. as us the And are an non-regulated we on more out them. which AB's more, together offerings We alternates flows side, that coming obviously and of better many our we're competitors. value the through capital for build well. to for combine expertise, seeing

would Yes, XX%. So holdings big is look imminently. announcement you time traveling. very, with us but is at how investment AB we're business we've we're Don't to happy time, expect happy the done, in We look to business with from any to time very from how the our do at very which to do just what It's we performing. time. from our us expect and

Elyse Greenspan

for color. Thanks Okay. the

Operator

comes next Dally from Stanley. Nigel Morgan line the question of with The

Nigel Dally

morning. Good

another So on capital. question

regards you've three change the to issue to say, the necessarily months I back? getting discussions able the hasn't had to how back it number DFS the to one regulation list, with potentially Just was, issue completed at but your Regulation arrive any that being it been wanted priority, to a top the in is of transactions [indiscernible] solution with and that – preliminary of the know is where confidence from XXX. at the come the

Robin Raju

Nigel. morning, Good

discussions discussions we to and transaction, deal. on DFS them. the that's It's Venerable a with this remain point for with priority been our derisking the where know, on you significant focused As has

And that XXX as well. always, we'd economic we we aligned is on started want with closely the that economic DFS, what as have on what hope manage it's come an we Reg with an DFS and business preliminary We the the as basis. is solution wants how to discussions

Nigel Dally

space. does the crowded, to pricing second just sort just helpful. that seem a That's the from [indiscernible] you're getting of annuity on It Okay. think into participate or any it's are question, seeing Then price? more overall buffered they I base the pressure like getting little

Nick Lane

This that. take Nick. is I'll

to space. be First, we're the proud pioneers founded annuity that buffered the

is And continuing that advisor I peak core boomers we client as for pie validating, with entrants are competitor As asset said, retiring. think, by driven the view we to class. grow, consumer baby the product the that need demand and an

As with to market continue value, to continue we record sales leader, the and XX% range affiliated differentiated shareholder we're products, privileged our and well up for I not SCS. think, to space of to we'll third-party our our XX-year led distribution, manage $X.X that there saw, With out a capabilities, that providers and share, given focus delivering, record billion market track and in you on meet our positioned said, demand value. generating of our

Nigel Dally

That's the great. Thanks. color. Appreciate

Operator

question Gallagher Tom the line EVR. comes from of with next The

Tom Gallagher

the gating Rob, manageable negative guessing negative capital of return would and over-hedged the is to you to keep for to If a Venerable Or Good for cash know a become you? think do impact the that's which I'm RBC short-term statutory for up mix, is just from statutory interest through interest rates that the flow guess constraint, that capital relatedly, a excess and the rising, will which deal? happens year, freeing realize for economics, the on situation scenario be continue hedging And morning. likely rates have anyway. impact on balance if I I your Question and you're positive accounting I purposes.

Robin Raju

Tom. you, Thank

Statutory basis, and we on mentioned, mean, economic. not business. has the value interest fully we go It interest the how which the the that's things to not you an rates. is we economic rates manage hedge reversion X.X%, so like business assume As fair to manage

our may RBC is RBC When time, volatility and we over-hedged decisions to one those we That's thing ratio. time on capital from in manage the on but returns, cause make not ratios. all rates a basis, we RBC. ratios, that statutory though, increase, capital think So it economic return and we we're on necessarily look economic at, dictates about that as what our interest

Tom Gallagher

an So Robin, plans you pulling be up capital on return, you don't for this freed full to see Venerable is say it from the that the having deal? fair amount expect impact to including

Robin Raju

on Correct. manage the economic we an Capital RBC, Equitable but basis. at deployment decisions look We economics. at are through made

Tom Gallagher

Got sort annuities it. just big I we any you guess, guarantee, Can claim being Venerable? that's crystallized claim my how about block part higher the – sense of payments, that this of And of the the a also that And death follow-up benefit on when to the was? of death that quarter. adverse give us the is block variable Thanks. is, transferred the benefit for think payments most

Robin Raju

Yes. Sure.

GMxB saw in and this a COVID deal, Individual a claims is quarter one-off higher part we of the that you U.S. with result. the As this the The and situation expect as that the fixed associated we death see U.S. did have majority overall it, business. this in the affect legacy in and improve Retirement, of in as do vaccines mentioned, a you saw quarter impacts that as rate the The hope of we is this Venerable benefit

Tom Gallagher

that? was million or $XX ballpark? I give in a for $XX size like of And the the does million can estimating sense Robin, you sound that

Robin Raju

$XX with the guidance size. $XX well. – million U.S. guidance to as We protection not it we as – overall, Protection this about you, did that XXX,XXX we mean tell guidance to that when total I the within we as would gave million I gave, disclose for the falls links long maybe deaths, think the

Tom Gallagher

Thanks. Okay.

Operator

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

Jimmy Bhullar

good Hi, morning.

And you've several pretty the flows business. retirement just question the I had years. a past first, in on So over had strong Retirement

were XXX(k) understand talk more more and it whether if you market? quarter business Or a on is you flows retirement of about an views reasons are your aberration? what and as on small quarter, But the the could trend they And you given of this negative. This – that. focus whether your I consider for

Nick Lane

Great. is Nick. This

is by SME as outflows said, business our in and the participant Difficulty] terminations [Technical you First, deconversions corporate planned segment. in the driven

as activity. gain to flows, positive I our million continues the market, $XX we as business, economy continue that quarter In you is have view to. the the resumption to XXX(b) Robin a for think stated, normal steam, which to alluded tax-exempt we

are by increase. to continue in X% back our to reopenings, Teachers forward. reentering given nature encouraged by renewal led of [Technical But amplify we activities And we going the school and there more foundational levels greatly today the increased be appointment digital return plus are virtual than out pre-COVID our levelized meetings, usage our setting, we think busier school of digital advisors capabilities, the next disjointed expect ever. We in year. we we tools once those will see start a our the presence Difficulty] X,XXX

proudly the remain committed and So serve teachers. we

Jimmy Bhullar

terms just your timely Okay. And in of fashion, think able much be quantify capital? impact assuming I give a on solution what's you range but to able not or deployment of you then on something? could in And fairly DFS, with or York that does confident the XXX, you're ability to on how constrain Reg you'll New that a if you're a the reach

Robin Raju

the the come is, always had we've a Yes, we I economic that's and years. Jimmy, issues more with We as that's believe over wants manage business. up them New New and good York and how dialogue always, with discussions on – would York, any what good say reserve,

across that solution. we'll we're we'll a with the have continue to come them, good comfortable with and So discussions

take a we don't we we mentioned, have it be if as believe address As well. could in but solution, have a actions to we management would that place you've problem, it

So concern return. we don't capital on big a have

Jimmy Bhullar

as You've last to does of as the pretty and if been going more of be if expanding are be actions. the going the – one and case, are or so in markets forward, dividends M&A of – some you I much the interested source, And more in so more we just ask what on other capital is of the that And acquisitions? buybacks equation Thanks. well might like Okay. through fairly you're consistent – should assume use could one? active sort like forward than How going past? you into a come

Mark Pearson

assume be now. Yes, XX% held to has our It's can ratio, which you for payout Jimmy. that we'll XX% three, consistent four Thanks years well Mark. fairly with

us. You'll remember, to M&A from any listed establish the expect We wanted do a Jimmy, management we M&A we significant IPO, said when get ourselves time at wanted went as team of out credibility or to and with on investors, We're like and be supporting three-year Alternative's so now, think we've look businesses, I area past would – well. do done we in but capital-light of it that opportunities, the the not mark at the and buyout. that AB activity

management wealth now Benefits business and has been business growing Employee XXX,XXX. nicely, Our is at

my in to look never but would we We're big assured the look And in it will please, not about we're financially comments make is But, misinterpret it's So opportunity. announcement. remain at anything. we something not, anymore, prudent category don't at. looking as of be we would any at very and disciplined

Operator

The the Credit Suisse. with comes next from line of Kligerman question Andrew

Andrew Kligerman

that the I than quarter morning. first, guess, $X.XX, good quarter. Hi, so we estimated, had was at came nice $X.XX better really in

roll providing see competitors where of kind a foundation. we your at this quarter it's look where next forwards, of and then as quarter can are Some going

just So as what was this forward? that? at that what I so the what dissect help impact, in could impact grounding expected? get look then could PFBL, offsetting less do going you we the is $X.XX, you the And number a Could COVID-XX, you was the above right Alt what

Robin Raju

per well. with quarter share income We a it that's think was a $X.XX investment result. It strong – It result Andrew. overall Thanks, good is behind number. strong as strong growth, AUM

We've on we'll probably further transaction you as guidance the us overall, to with XX% X% return expect wait can by I some the Alternatives, Venerable terms that Alternatives come get the in on think to as out want will of impact the But an that I'd after On highlighted annualized segments, before. overall. till guidance to an basis. of segments

Andrew Kligerman

Okay.

I'm details? you're without number into a kind of reading base that that $X.XX comfortable as Robin, getting with So the kind of

Robin Raju

Correct.

Andrew Kligerman

and number looking you $XX second Okay. death – all-time And million, death Retirement. high. the think also if a a it the benefits at impact are earlier, of quantitative I asking then the is me in million this maybe markets was $XX a the one strikes Tom benefit, you're thought death little was What benefit kind pure

that guess highs it risk there net there's why be what as as so there, markets something material high? amount of be would I result, all-time So why So I'd a be if the death curious be might and would real to – I no a missing impact? are

Robin Raju

Yes, two things.

Equitable guidance COVID. As related I guidance mentioned for on of And that lower call, it's the claims with aligned overall we've probably to are end that early on overall. given the the

wouldn't read Individual expected above any you on we came I too negative reserve in sooner So expected, this we in future, in the and specific we the just the the when fees death what accelerated, higher less claims In have earned so than gave. Retirement claims much the from what's that's causing number quarter. segment, I death for what

Andrew Kligerman

Rob. Thanks Okay.

Operator

The next question comes Suneet from the with Kamath Citi. line of

Suneet Kamath

then on portfolio Difficulty] What time are assets. by for you the portfolio when an yield improve you size is us? amount of of liquid the you the talked thoughts the timing moving on into that? Can to to about opportunity allocate? opportunity And right maybe [Technical some the looking less that

Robin Raju

the provided. and transaction of are this overall. in we there change we want make teams, talked invest private to creates with to business incremental as third-party guidance to we probably providing assets they see see public with classes. probably And in comfortable Sure. I'd market IPO, Suneet. where with able done that their credit Since primarily what overall announced when some invest wanted that good the date. we seed, to about we the on of we space, grow in from AllianceBernstein, illiquid moving Venerable that space. on assets. link But will do we returns space, guidance they've yield, they're asset opportunities alternative the we the good in more And that and we've returns continue virtuous and cycle when alternative that's to then, sure Since risk-adjusted with the We guidance post AllianceBernstein. We'd again, income together bring million was corporate. But – $XXX to and gave quality us treasuries the to Thanks, – we get and the GA evaluate

Suneet Kamath

I that That deal. potentially And quarter not but wondering, Venerable have it lifetime asked updating I on just think the cash could derisking strike at about just those at me provided provide last know thought it. the So Robin. that to on deal? some is your with in then transaction? I'm the on does IPO? flows quality the it's retained market the same includes of an sense. any but given to that the that, the involved appreciating, book wanted just So you Got time of it time, before the I of call, book included be derisking transaction, reinsurance terms transparency book much thoughts exercise, the that may the versus the you makes this How that get

Robin Raju

Yes. Thanks, Suneet.

company, significantly CTEXX risk really and As reduces deal, transaction we're the in it's to quarter. the it expect the us. overall, the in you and mentioned, a reduction, XX% Venerable we for close with happy second It landmark deal,

overall transaction gave, flows already on cash the better guidance on for just but becomes as flows in the the forward, Venerable the cash point to overall. I what we'd hope LDTI gives implementation, disclosures guidance. out. will again and additional we terms guidance provide want And economic, that with evaluate book, it that's what of not the we'd Going all I more segments post VA,

Suneet Kamath

would endorse I that. Yes,

Thanks. the market. that to think really I helpful would be

Operator

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

Ryan Krueger

Hi, good morning.

XXX, was Or XXX not you think management you question Robin, actions include primarily Reg are was you additional there a think if I that follow-up. wasn't other reinsurance could if that? that can changed, that you Reg have take. beyond things it revised? Does for said First you do

Robin Raju

XXX, wants discussions the with the to Look, reserve actions going we manage economic DFS a to have We've more discussions a shift to evaluating, continued of today. Reg right a – get the set Venerable them business we're positive as that the we're resolution with but we're DFS. that on transaction, going to management – we comfortable like have to focus and we we're

now But to don't we too want into more I'm to because we're make to with economic get the So good is that more believe we'll economic. the solution that if actions take actions management hopeful much to we those I a get sure come reserve on DFS. details don't, alignment ready overall. we'll

Ryan Krueger

And on sense you makes not the any give ratio the have RBC in in then are That can embedded today? on included program us the sense. VA, what the status, back portfolio on gains you that of the treasury VA hedging

Robin Raju

in investment portfolio gains treasuries. about $X on of It's the the billion

that a rates the billion did decrease but about in rise it's bit, today. interest With $X

Ryan Krueger

in that up one. billion any the is Thanks. there transaction could pretty last close And sneak before happen then freed Venerable adjustments one or I'll locked the $X.X in? that from to amount Are

Robin Raju

fully It – there's of the should Venerable the overall. be we transaction impact – no hedged economically,

those numbers. So with we feel comfortable

Ryan Krueger

you. it, Got thank

Operator

This call. concludes today's conference

disconnect. may You now

Equitable (EQH) 8 May 212021 Q1 Earnings call transcript