EQH - Earnings call transcript Q2 2021 | Equitable Holdings, Inc.

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Operator

Good morning, and thank you for standing by. Welcome to the Equitable Holdings Second Quarter Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] Now I would like to hand today's conference over to Head of Investor Relations, Isil Muderrisoglu. Please go ahead.

Isil Muderrisoglu

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

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

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

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

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

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

Mark Pearson

for Thank morning, Good and earnings thank our you, second quarter you call. Isil. joining

Delta management extraordinary those of of months, of economic the some last variant. of been made and need That the we including we second and the XX have and over the there today, While we know the team business. our our will watch pandemic efforts returning have were quarter delivered said, of course, possible the by Equitable strong continued to signs is we present normalcy, as all over, vigilant results not to especially consistently be

results which There Slide to the quarter. are X. Turning highlight points our X for

by supported robust results strong net flows. Firstly,

strong per Our XX% were Equitable from up a non-GAAP basis, earnings $X.XX or share operating AllianceBernstein. of on second year-over-year driven performance million share both by $XXX quarter and

as middle billion $X.X the flattering to lockdown QX meaningful at by from quarter-over-quarter strong billion, increased quarter last of of net Operating year this the a because XX% premiums quarter. and markets. well first more year. positive year-over-year another strong in management to are These are flows this attributable to equity management XX% at year. to $XXX as were under of AllianceBernstein driven ago it assets robust Perhaps time momentum look is Assets and year inflows up are up we this the under X% COVID comparisons earnings

Venerable variable shareholder the We Second transaction reinsurance highlight, with to we pleased annuity to very continue in were our of returns. optimize June. landmark announce close

balance value. this a transaction capital derisked $X As billion unlocking more significantly XX% of our reminder, by economic sheet, than reducing CTEXX and

with Our an opportunity also AllianceBernstein relationship us optimize risk-adjusted with to provides returns.

further them private committed illiquid bonds investments. billion private out $XX alternative provides This to a and We to build of general have account AB's help number platform our a placement benefits. of

yield will investors account, multiple attract general and additional second, which EQH uplift use to will the boost and and for other revenue fee businesses for receive First, incremental will capital third-party higher in build shareholders. this earnings, AB

risk have business business. economic we XXX not does remains our of REG manage how impact on received Understandably, the XXX. regulation. questions of Equitable, the At all. management we Regulation Thirdly, economic the solvency impact cornerstone the of this the framework at

us the statutory and York, permitted in with responsive to reserving. be to return we However, practice. have and XXX is tell domiciled They applies unintended pleased New the received dividend measures this defers the redundant been have X not have to would that impact these York New required we years. hold And we you We've our if very shareholders DFS. New of been ratio practice I'm issue, can over domiciled were State. are of could outside address a closely to requiring as of consequence reserves RBC and The Reg York permitted working amount we solvency to the by driven

take to holdings, Our of approximately of can actions And management feel reserves. will XXX accounting million to RBC value allowing economic $XX actions maintain continue provide actions practice we basis. statutory at to solve the balance at uneconomic technology-enabled to issue restructuring shortly. this as manage in targets savings capital billion comfortable end net management and our position period. take practice by during I $X.X reduce the pursue reinsurance us such further continue to period agile an want at to XXX%. deliver will DFS cash on the we payout economic flows X-year to of new future our stands value. to continue with and the corporate not And impair our XXXX. drive Reg combined like our on any the our with permitted to Robin permitted second This actions strong announcement we ratio highlight we of will XX% workforce and for quarter, business emphasize, an and enables the more fair incremental details this XX% to permanently other final can redundant and we management on deliver the is With sheet expense capabilities, long-term work of and this

well-being can ability their with fulfilling XX% lives. AB, and so our us clients to target and combined mission income an to investment business to long delivering AB, mix in synergies growth incremental we achieve leveraging classes million shift EPS X% These while capital resilient XXXX. our confidence additional more With with a pursue the secure by our towards of help they new $XXX on more give move in illiquid financial asset targets to

us competitive X. distinguish main as to markets with Turning and over strategic target of relationships X,XXX confidence continue our value. to us distribution shareholder would initiatives have The to our we a long-term than I model highlight differentiators give third-party drive advantages. to like that and equitable Slide more can in leader we that X,XXX strength where continues advisers

for we year billion $X.X annuity #X on to focus buffered gap in provider, record our Group to quarter [indiscernible] the the variable market. continue provider are $XXX second million, are of K-XX line market continue pre-pandemic to business, and now solutions. of in #X retirement the premiums solution with look bridging SCS as the business And #X Retirement annuity the clients the premiums provider the posting supplemental educators As first we of has were accumulation In our Gross retirement $XX.X assets. billion in levels.

to teachers As other continue engage digital to remote in capabilities this our and advisers clients environment. leverage with

positive of net positive strategic XXth its with their flows including retail quarter active results produce In to channel. partner, continues addition another consecutive in contributions to equity as solid AB a quarter this of strong flows,

institutional $X.X Second $X.X retail wealth billion billion, positive private quarter in and billion. channel, equities, and of net $X.X of multi-assets flows Net each by active were municipals. $X.X were billion, primarily flows by of primarily driven driven

of AB's and assets rated X XX% X-star U.S. of were XX% rated or Morningstar. Importantly, by Luxembourg rated assets

We momentum also continue our to quarter. would businesses, business in Wealth focus I to on this the nascent growing continued and Management like highlight our

clients markets, Assets is see under between advice engagement planning net and we by and equity advice. advisers positive financial strong our up flows they seek as their and XX%, to continue supported and

with In offering society, allows a transaction. to portfolio believe our critical strengthen profits close last component our announced the bridging delivering additional of to inaugural force the sustainable investment we of contributes doing and our us for value work are Equitable July, our This on I yield referenced quarter, portfolio of to ensure for remains investment good. the As that a impact teams purpose. delivering is shareholder we financing

to Managing X. Slide would $XXX from our driving AB create shifted to value million achieved with separate for AllianceBernstein. year. ahead take in At few I last million corporates managed with our time account about better as portfolio Turning an we talk moments the other, as a of with enhanced in shareholders. We like incremental align billion the the saw opportunity achieved treasuries dislocation the each U.S. account XXXX and we we $XX Equitable general we $XXX during our to market of target peers. target to XXXX public our opportunistically announced for this of of additional assets, portfolio a of IPO, income schedule U.S. synergies to ultimately and

economic liquidity assets and structured further portfolio. look capabilities, our We we capture sacrificing optimize Leveraging investment private investment our without premium risk to by a shifting of continued quality credit management to book. framework utilize alternatives from to AB's to the corporates public our

these issuances. we a XXXX optimization are result efforts, income targeting As through FABN incremental and of general million further by of account $XXX

general are we attract for and billion AB's earnings potential committing help greater out driving in additional build addition, third-party of AB account assets capital, EQH. turn higher $XX and businesses multiple In to

a has which has to private an growing today, alternatives by Xx evidenced AB of proven billion commitment initial As over since track $X platform. billion, its $XX grown record of

the to I'll leverage AB we through Robin? synergies to drive ahead, Looking it our to Robin now pass unique walk to of will results. our second value quarter shareholders. continue for relationship

Robin Raju

Thank you, Mark.

per million focus $XXX continued forward, alternatives. business resulting $XXX and to from on impact for general increasing from fee revenue to will from Venerable XXX. but Slide benefiting short-term capital positive in in quarter, we the expect to per and million of were strong performance up $X.X $X program. has Keep flows or claims buyback markets onetime impact the share, XX% impact by earnings or patterns assets results resulting share, positive on increased and quarter. $XX on a for us, quarter from versus new annual from attributable in Non-GAAP operating The management expense the economic second our the which segment to an from performance review by onetime performance $X.XX driven the prepayments, program year detail alternatives. resulting net for share before our share per investment prepayments the consolidated X. of reflects positive strong $X.XX higher net negative items, account of for higher for due growth were deal business. earnings in will GAAP. annum $XXX million per Turning quarter. second operating from year operating prior and per $XXX or the and over unlocked quarter, we value billion, supported increased mind, second to quarter $XXX have share XX% strong to per on approximately billion notable results, by the the of million for deal $XXX and million or our $X.XX the our time strong in repurchases decrease income Non-GAAP impact reflects prepayments equity the XX% to management. prior The AUM in I investments, going $X.XX primarily increased share, earnings strong alternative million strong providing flows, billion, Normalizing more non-GAAP Venerable per updates quarter million notable these quarter The $XXX the of quarter Reg

was Moving million to results. the GAAP the which between GAAP accounting liabilities. in in We $XXX gain by asymmetry driven primarily our economic reported hedging and quarter,

our of $XXX With in to of we per the expect a million legacy billion $XXX range annually annuity this hedging close $X of reinsurance million reduction from annum. a variable asymmetry transaction, to

static to program million $XXX Additionally, per to our our the approximately In $XX option decreased hedge effectiveness. with budget by performed XX% our as annum. $XXX hedging related expected, program million quarter, million to

reminder, a hedge interest bets means which on manage value we fair basis, take we liabilities. full our to not economic a do As and rates on

on were operating earnings net begin Non-GAAP business from from Individual income resulting year earnings Slide and XX% of higher revenue higher offset the Venerable I versus by up is X. values. the fee with prepayments the the the closed driven account will June by alternatives segments. higher transaction, investment slightly on to Retirement which lower Moving million prior X. and $XXX quarter, on This

annual distribution, this our mentioned impact earnings limited we line transaction, to improve approximately per outflows attributable solutions of over by last the stronger is is on remain to current our of rate equity The year annum product impact $X.X we in the premiums driven year. equity improved basis, quarter, clients. our $XXX comfort transaction. I higher related The and following expect expectations segment. XX% guidance for the first observed segment year capital-intensive should which earlier. expected the transaction and first quality of record billion sales our reflecting give Net there While In of earnings were our the million, markets by net depth our of to to and our record Venerable billion on fixed in breadth Venerable million this in-force. capital as the for distribution our is by strategies. over million the is deliver block structured further the expect prior by This decade, innovation. economic a in strongest quarter, with an inflows validated quarter year secure well of in and offset premiums offering continuous sales driven Combined of $XXX $X.X versus derisk differentiated our $XXX from with protected we On investors to reserving income and positioned flows segment,

with Retirement operating remained net of the of improvement line at $XXX XX% $X.X positive levels, net revenue in year Turning resilience to earnings on account led outflows business by market up increased investment by billion pre-pandemic X. from quarter, first XXX(b) on Gross to strong net the versus values premiums We million, higher increased to income prepayments model. due appreciation. higher continued our Group Net prior higher million, from and and in alternatives approximately the $XX fee year-over-year by $XXX reported business, flows Slide values. Account experienced in inflows an highlighting driven million, our quarter.

We renewal our in up clients. an year-over-year, X% relationships see adviser the of continue to with our contributions, increase strength demonstrating

active flows. AllianceBernstein on positive which of across quarter-to-date will in equity higher flows AB lower $XX driven the global in core the deliver $X X/X In distribution AB's million, $XXX In were performance billion turning inflows retirement large XX% fixed sequentially, mandate, driven expenses. higher AUM, Strong sales AB's a up the customized quarter to of billion inflows rate equity increase net institutional global channel. to by second grew income billion, billion to a net by and quarter, fees channel, straight equity net of net basis. operating and factors operating consecutive the performance XX.X%. assets concentrated flows up retail strong positive XX% a led on including earnings and year $X.X asset of primarily strong quarter a under the XX% average primarily more these XXth Slide of on of stronger and and the billion. $X.X positive $X.X at outperforming a billion, inflows. Total active of X- were by X% in in base assets reported to the X quarter operating This AB all $XX.X channel, billion and X-year quarter, were gross to or net growth Now net pipeline prior of from the up market and sales the management to second generated mandates. the seventh margin record $XXX second channels, year-over-year, end addition with quarter, attributable year-over-year to net the continues adjusted Both fee quarter in inflows a attributable contributed of of be with inflows strong X.

better we mentioned, and for commit Equitable. deliver general company risk-adjusted as asset Mark between businesses grow synergies AB's insurance we yields As higher like company management the $XX the of and to capital billion multiple the account

$XX to primarily prior operating on revenue net mortality limited and We the quarter. loss higher COVID-XX up year, We of higher Solutions Slide driven related year in experience $XX with prior to impact from higher earnings million, the income in the quarter, compared had values. on Protection by million account a Moving fee reported to improved XX. investment

interest-sensitive our up variable Delta the our million shift from up our variant which strong as premiums life prior $XX Gross products. year year-over-year guidance We U.S. million, to driven X% XX% less Employee light $XX they is year-over-year, growth XXX,XXX quarter. $XXX prior million by business, of to in product, increased highlighting and universal though, particularly continue primarily Benefits of our to up XX% This conditions to in the deaths. was and evolve, monitor maintain per

to XXXX We with in quarter. employee XXX,XXX continue up to employee premium $XXX year compared enrolled sold per our see per and year-to-date business average strong premiums growth already $XXX employee year in Benefits year-over-year per XX% Employee full enrollees. to approximately the exceeding Further, prior results is

million segment, expect guide to some earnings continue towards quarter. in we per volatility this in approximately While we operating $XX

a XX. assets minimum well We our the holding strong Turning We target. of and the with capital quarter $X.X above position. company, closed million billion liquid to at in cash remain Slide $XXX

us price the economic reinsurance million, our allows have significantly balance billion which Also, seat sheet a derisked closed board. as part reminder, and $X June transaction the Venerable, to on a X, we equity value. of unlocked approximately As holding Venerable's with which transaction, a the X% on of a of for purchase stake Venerable in acquired company $XXX parent

$XXX after quarter, shares their including capital this We residual exchangeable AXA to of May. million, in And $XXX settlement mandatory return continued held have million to of in returned bonds we shareholders. the by

we track target this XX% $XXX the year, We July. in million to payout the additional on deliver as accelerated plus Additionally, of $XXX of remain to purchases million transaction. XX% ratio our share part Venerable

have earlier, said share delivering on target which final Reg will our us York New XXX payout practice continue reserves, we more DFS allows ratio. on the from Mark to the As the redundant on received permitted slide. detail I

closed XXX%. combined quarter RBC our impact target range we which XXX% with approximately second Reg of minimum XXX of a the XXX% ratio inclusive is the initial Finally, to of above

subsidiaries. $X has to over the would of Turning operating our mitigating hold redundant approximately to the our thus New phase years, a and the update regulation practice offsets outside impact reserve. to An from business the Slide capacity billion plan This of reserves we're uneconomic impact our received XX. an and initial dividend for mitigate of the from allows York if that on State. creates redundant to impact X I York the required it's be no impacts to permitted need unintended economic reserves DFS our provide Reg us on statutory us not in like XXX. We impact would that that redundant to domiciled purely New a

in As our capital through XXX management quarter payout ratio billion our maintain and actions. at there strong with a to the Reg any cash impact from minimal the result, without is second of holding, we $X.X XXXX sufficient have a position

on Looking about ahead, our up the we XX% year-end, will restructuring our increase internal have New of To begun by flows targeting internal subsidiary. from which XX% date, annum we cash from over flows reliance implement of redundant to decrease approximately restructuring, next half can an an York Concurrently, unregulated through complete, is increase per years, financing. external working with which unregulated million the that $XXX reinsurance and on the of of we solutions will internal cash in approximately X release internal accelerate reserves. are dividends

We are business of also going of target end through insurance this products a impact any with of outside utilizing new XXXX, our entities approximately of XXX Regulation our on forward of structure distribute York non-New by XX% mitigating York to the New sold XX-month business.

are are advocate not as practice permitted York for reacted a the reserves framework. that we pleased for the Although we continue DFS we for reserving redundant economic department more with pleased a requires, quickly a New need to

actions, As towards principles management core our unchanged. additional work we remain

the XX% to I'll pass on deliver to payout it ratio now Mark. basis, to long-term our continue XX% will economic and We business economic on generation. on an manage to focus value back shareholders

Mark Pearson

Thank you, Robin.

second questions, on reiterate the like Before for some would line opening our up to I your quarter results. highlights

another driven by we First, delivered quarter, and solid performance new business strong flows. have

landmark reinsurance proud meaningfully to to strengthens transaction, have we our in our shareholder alignment strategic returns, closed which VA balance Second, are our optimize sheet. with priority

Equitable AllianceBernstein billion further earnings drive potential a between We both and to for with upon commitment build $XX AB are to to companies. continuing higher synergies

position are our we and to growth, redundant of reserves to ratio. strong our long-term the that, our reaffirm new questions. capital the businesses lastly, capital payout management to on execute your practice resilient continuing with and Reg permitted GA us targets. target Third, allows actions, along XXX open to our shift drive supported I'd line for and by like expense strategy With And to

Operator

Wells will Instructions] line of first come Elyse Greenspan [Operator question the And our from Fargo. with

Elyse Greenspan

capital the question first on side. My is

update. wanted just get an to I So

the as have since well. deal at also looking Venerable spoken guys You about M&A

you're what on so. or of seeing the update the quarter on an over side last things deal Just

Mark Pearson

market for We the question. to of like deals you Elyse, a the Pearson. it's lot place growth as question. bolt-on Obviously, is capabilities. in add your the Thank behind way and of possibility Mark a activity accelerate

side. M&A. of of to us our and on alternatives obviously, consistent we interest and remain be with management areas supporting So would benefits build-out strategy, the open employee the wealth But for AB

So look. continue to we

economic have our be I with shareholders. sense But us, nothing value can to importantly, most assured, really our brief long-term creation for That's us would you position. today. -- We think on compliment the you that no to need make always provide and you strategy

Elyse Greenspan

And get additional really strong just was SCS in to hoping color, some the I quarter. just sales were then the

as you there? Just environment initial seeing balance think you well? competitive what are how thoughts should the trend over year, sales the Just in from do the of even XXXX

Mark Pearson

want take you that? do Nick, to

Nick Lane

Sure. Thank you.

we As sales. record in of Mark by quarter and the Robin $X.X our led stated, billion SCS saw sales

We continue consumer there. see to strong demand out

grow. demand to pie a net it focus And class positioned, continued the validates us continue competitors We network, forward. it to to going expect We is are distribution our profitable growth we well the because and asset believe positive strong space be given on for to entering allows the advisers.

Operator

Stanley. our next of from will Nigel And Dally Morgan the with come line question

Nigel Dally

little why addressed, excess with the resolved? large still yet make of So capital not now a the with has buybacks you resolved incremental least Reg uncertainty buybacks. sitting Reg natural aggressive to released on at is It shareholders is that of only seems be of in being of back uncertainty process the the more question more from sense economic it XXX amount return or Wouldn't which to the half capital, like the XXX you're been now a transaction. that of Venerable

Robin Raju

to continue economic and XX% on Robin for Thank payout to for shareholders. consistently basis Most your to XX% an deliver importantly is It's you, Nigel, manage question. here. us

to as to XX% this up, shareholders. million of XX% our as of result top a As more year, of top you capital over on gets that to time, on capital And continue Venerable $XXX know, normal we'll the return we payout, freed committed deal.

Nigel Dally

is of getting the outcome in follow best block. relative the up are fundamental a -- but reserves guess, I what are view change economic on there, capital Or that permitted in regulation. practice that, your to been would just have a the DFS, the [indiscernible] to that's Is still for encouraging, appropriate possibility? guess I differences

Robin Raju

Sure.

we was DFS with I the intentioned think -- think XXX. Reg well

However, And other that's don't good, in relationship approved we it Overall, clearly through practice, deal any They this economic. Reg that have the see permitted to unintended intend reserve has now. other comparable to they with consequences turn it's is staff health Venerable any been indicated level a they DFS and state. pandemic. and the the all us XXX at the don't

on work for reserving and economic ratio RBC continue future. the we'll shareholders $X.X over term. the this us of to importantly, most But framework So I with payout more medium them long practice, XXX keep the cash, billion a to short, in enabled the and our permitted with think

Operator

And come the of Jimmy question line our next will from JPMorgan. Bhullar with

Jimmy Bhullar

And I than weak is actually and business few quarters the through down I of your flows year peers. the teachers the more of understand exposure. of they've given much they're the a last versus So different, years, been of And and this fairly had think healthier have year last through the Retirement year. But both the your makeup question Group business. I most most been stable on

the businesses. you But because on is I going business? your what think had some if So of weakness for could what's talk seen last outlook mentioned about small just there you quarter, you and

Nick Lane

is Great. This Thanks, Jimmy. Nick.

retirement we the up busier our technologies across tax-exempt investment to to given $XXX is in well ever. which strong and our there. In teacher, surrenders. to in reported, net be continues improvement remote did sector million deconversions. and saw expected segment, which an business, XXX-plus-thousand had flows broader group our some our we improvement Teachers And improvement SME, renewals, I quarter-to-quarter. clients. deeper In we That saw we we're X%. go is think positioned than continue are resilient. planned As quarter, We we see in our corporate Last saw

So our we look business. at

digital strong. has our an the us is We is for tax exempt given the our we're and think SME opportunity I penetrate see continuing core core to future, space. --

Jimmy Bhullar

years, overall New the the York? about the impact the you're And Or in few that into force? that still increase York, impact next that New on through you're some talking phased on Okay. And account? XXX is with resolution selling in that over initial as already business taken is should

Robin Raju

I business place by yes, to into as our already that's presentation, outside Jimmy, we plans taken York in XX% write the of -- of XXXX. New of the mentioned, in end account. about next But have

So we continue to shareholders. remain well perspective to as us imports, new earlier, position here up positioned on capital along on mentioned the capital I practice business strong permitted and our the with sets a to deliver

Jimmy Bhullar

more then between the And some capital solution, of up is solution, are increases it, find it -- in to capital and because gets that you tied of But obviously still tied time. tied -- regulations released. in differences then But over gets up states. then a able because if barring a then it's

Robin Raju

That's right.

Operator

from Kamath question line the And will with next Suneet our Citi. of come

Suneet Kamath

to circling Maybe back XXX to start.

how against this And a over you of next Robin, New event? take than outlook to Is York is of long that it it XX, about you talk years? couple take I on just So to things? some longer execute for of the going the your dividends sub mentioned, can that? Slide sort from strategies those XXXX, guess, 'XX these Or of could

Robin Raju

Thanks, Sure. Suneet.

from always $X.X upstreams key the think subsidiaries. billion is, as of received I a holding company our historically, we've

we're of put to And subsidiaries, to We that they that unregulated some of XXXX, a we'll actions well should expect management flow XXXX be transaction, continue flows time reinsurance taking. it be make cash cash Any period. unregulated position completed the that -- have but us XX% in expect for we'll result as that at year-end. from should the more us should if future. look to The as XX% from management by of the shifted the economic actions sense for the

Suneet Kamath

on clear, be billion the you're to on an annual $X.X basis? just So focused still

Robin Raju

Correct.

Suneet Kamath

impact Got neutral? these Or of actions it. is sort earnings earnings taking? it there from any is And any of that you're

Robin Raju

actions our the the economic GAAP that we not balance no all impair purely of is mean I any basis. impact redundant the on stated Reg of on or of the economics XXX statutory, sheet an management No. will reserves take and

Suneet Kamath

Got second for or Okay. And guess, my both. or either then it. Mark question, I Ali

you So to a of you've can't of with so just way has Or about of the think Equitable, lot But scale both Equitable that combination private you they client in the advisers. business obviously, X And done business. a partnership have different sort a really the about those to is AllianceBernstein scale using talked the Is guys trying to general up one there the AB think that X? of clearly, operations? of account. wealth things any terms sort of some management about are managing

Mark Pearson

Ali, want to that? a be It go from good hear would to do you you. at have

Ali Dibadj

Suneet. Sure. Hi,

So okay, to bit things complementary couple complementary in and about. think being set a little is what client There served of there think clients it overlap, One it thing. what on is one average. terms are are products is -- a certainly is, being some are but of That's served. a I

that income on. Now client perhaps you to hand, to thinking or certainly across the through on trying like stages, one and progress we're levels something offers capitalize that the opportunity that's and

net from what you'd AllianceBernstein to the on ultra-high at that a there on point. which are model X going something working So intune a firms on more opportunities, happen something It's the but cohesively are there. and any, to than Equitable mean side. more the do cetera. On little are offer different we from a point to is through haven't products is to worth aren't the those we also et It's that client might client, the capitalized this segmentation perspective, be adviser side. hand, other point, right? bit portfolio different, your the wealth second more up at and what that private doesn't quite perhaps That opportunities There perspective, thinking

So going the is, there's we forward yes, short looking answer quite but it and to we're trying it's to fleshed forward. something haven't out opportunity, do

Operator

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

Ryan Krueger

guess, increase on, any cash I Could more unregulated you to you're what provide the detail flows? specifically doing

Robin Raju

been unregulated focus for flows. on increasing since Sure, Ryan. a It's key cash IPO us

next This from account that going now forward. mutual the of for service the business New new And New what we're step. outside for the both past You another saw upstreaming enables the taking business York, services in insurance in but us that we're administrative in be do of specifically, the it funds also And us doing, providing we'll AB the to subsidiary separate York our the by holdco. units holdco. outside we're selling

So specifically, that were and independent we're the for second they in board the mutual accounts, by underlying the separate contracts funds administration their of the service quarter. providing our mutual funds approved

Ryan Krueger

this be the in this on life then block? be of And Or and it. would external internal reinsurance, more on could Got terms focused annuities? potential

Robin Raju

I do be an think we number anything on basis, that economic one. will

the to and going all impacts a reserves we're at And that perspective, take annuities. serious look look an aspect, related second makes economic consider sense The and redundant actions. blocks from Reg if we'll something in-force life XXX, to

Ryan Krueger

one quick, I expect $XXX this, be a but do to segment year? around Just last you losses million still may have missed annual corporate

Robin Raju

an on other. quarter, as That's annual $XXX right. but some for basis our That's in this and expectation. obviously million saw There's corporate you seasonality,

Operator

our from line question Thomas come the And next Evercore. with Gallagher of will

Thomas Gallagher

NYDFS, guess, is from that, I Just the so was X-year some phase-in? requesting and early Or apart different already, X-year the from questions Equitable? to the you granted practice on that -- that use XXX. XXXX. was that the this it books permitted something to on Is The in just

Robin Raju

Sure.

$X economic as the XXX aligned risk hedging. reduced transaction, it company, unlocks part of reserve economic it as Reg in value, Tom, significantly So accelerated the wasn't through the billion Venerable but of the

through it and reserves align allows permitted and period rate acceleration So over an get result. a those hedging, phase in the interest X-year to practice redundant we basis a as economic that on defer our us that specifically to better

Thomas Gallagher

Okay.

what, Robin, then? impact so reflect $X this the about of be XXX Would the of would this of $XXX million initial billion RBC far so XX% at that in RBC XXX And point? reflected the is your

Robin Raju

Reg No, that of the impact the it reserve permitted minimally year of you because received. half practice did as XXX

the increase do transaction, of year. as XXX see You impact as from the result Reg a of Venerable half but minimal

Thomas Gallagher

you. Got

be year-end when to through? you start a to event going coming see impact So that's the

Robin Raju

Correct. be $X part [indiscernible] will a of That billion the

Thomas Gallagher

look? of that the subs down XXXX? $X.X to full would expect the that to XXXX? still be just is billion billion then by on would the to annual -- the of you how then be XXXX timing you you back to to to only you you get AB? And presume dividends expect -- And is Okay. access said And get. $X.X to from at going holding is draw still still plan expect Or company would the the for I

Robin Raju

right. That's

As you New remember, York. last company year, we took X dividends in out of the life

going support $X.X in result cash but expect we billion there $X.X shareholders. actions our strong taking. cash the As year, XXXX, ratio forward we're existing unregulated upstream more from for upstreams mainly about The payout And flows to still management of coming a billion, consistent are of a as the is this result, that position a then AllianceBernstein.

Thomas Gallagher

billion to think to to it dividend change flows position to you But from do $X.X where bit expect holding billion so Or some take I back a you'll in $X.X is be restructuring. XXXX? company? Robin, a I of longer? guess, up where But on going be this the, potentially probably based they back or know you would getting come the is of in normal going to you're

Robin Raju

under out normal in more to XXXX. all more Yes, well. $X.X market conditions, have equal, providing cash to flows unregulated certainty expect I'd million No. But as

Thomas Gallagher

announcement, if your is going impacts any you anything that so, on then in buy have sell is portfolio? the then going crystallizing that's potentially And you And to could. billion Will work? gains securities? is result The one public higher-yielding about it's statutory liquid, current there I way that corporate and to think work less that going you. when of is if the one, just I bonds final way redeployed $XX if investments, -- Got this the would AB to

Robin Raju

Sure.

we from funds is reallocation that billion of alternatives earnings call, businesses Mark risk-adjusted Equitable a majority AB billion AB areas. us the and $XX -- also with that for by well. building returns completed And company third-party the and and one enhance XXXX. Ali goes upon major well of private and and the the build So that with can synergies pleased the expect we're out AB this as I them. insurance credit as be $XX enables to between The and really the give multiple builds mentioned firms with higher is it this as on public corporate We illiquid -- to into

Operator

the our And line this come Benguigui Tracy Barclays. last from question morning with of will

Tracy Benguigui

in your York of Financial is percentage non-New force, Life written versus Equitable most New entity. York Look, policies that your for your Co. York out of with VA policies? reserves us VA of was New Can Insurance what you share within

Robin Raju

from majority split, as sits non-New the policies life of We company the York split but today, we that. but in is that the it haven't shared shared haven't exact

Tracy Benguigui

correctly. Okay. And my I question. guess I'm to thinking about to want this that I next dovetails make sure

You mentioned reinsurance. internal

a it Arizona So to York under reinsure New policies that how is non-New written was your structure? entity York your entity on to feasible captive

Robin Raju

in I York. and external specific to that reinsurance, evaluating, addressing details looking we basis, as I value think judged shareholder at both New reserves that will internal these we're want that do everything we go I economic while into long-term mentioned. deliver on any but our be redundant we're can don't against ensuring one

Tracy Benguigui

quick I follow-up then there. one Okay. guess maybe And just

Venerable about Just looking that differ? to a could deal? at we similar external block Should your Or think reinsurance. size

Robin Raju

we depends value differ. receive the could block we out. for it economic on always It It that cut that any could be similar,

Operator

Equitable Second that that, participation your We ask with Thank Quarter and Holdings Earnings today's please will And you. appreciate disconnect. conclude we you Conference Call.

Equitable (EQH) 7 Aug 212021 Q2 Earnings call transcript