EQH - Earnings call transcript Q3 2021 | Equitable Holdings, Inc.

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Operator

Good morning. My name is Brent, and I will be your conference operator today. At this time, I would like to welcome everyone to the Equitable Holdings Third Quarter Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator like of the Investor now Işıl over Müderrisoğlu, Head Relations. to would call turn to I Please go ahead.

Isil Muderrisoglu

today’s found Thank you. XXXX for quarter Equitable Holdings can Good morning, and earnings welcome call. at our website on to third call ir.equitableholdings.com. be Materials

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

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

language you refer X to to on like Harbor additional slide our Safe I’d for presentation So, of the information.

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

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

Mark Pearson

begin management Thank businesses call the results quarter insurance and earnings strength by third of a you, business favorable is markets. distribution, you today. in and for reflected operating providing management thank present both third Product of strong our in Işıl. our key results Good would equity supported and innovation in resonate continues some management Slide quarter, the for shareholders. the continues X. well XXXX, value to retirement asset to morning, subsidiaries clients economic This our our for with I to record like to joining with generate and by everyone, asset highlights and across I our am on pleased and

per earnings up $XXX per up basis. share of share operating quarter third a million, were $X.XX XX% XX% and on year-over-year non-GAAP Our or sequentially

XX% increased the by management equity momentum flows our driven under to in continued markets billion in of businesses. and year-over-year capital billion, quarter $XXX light net Assets strong $X.X

progress reserves. I'm of highlight mitigation our pleased to XXX redundant the Regulation on Secondly, very

a support with uneconomic actions not domiciled received regulation regulation. with statutory of cash we permitted reinsurance on which secure we state. commitment this new delivered outside to reserves As Yesterday, transaction with are DFS, financing that these required future half-year unlocks a We practice reminder, phasing year if would New $X have that half-year, the approximately be Re, to York reserves. redundant of five XXX Swiss that flows. our provides a the half of us the the were which our New efforts, announced management value York Since of we a execute we via In of announced xxx offsets billion and these the

cash regulated we company billion also We XX% holdings – previously expect annual internal now and of cash restructuring have our our entity later actions balance the approximately now in – the and detail each insurance provide from year, generate from on our $XXX Robin our subsidiaries. million of is flows non-insurance from that announced call. comes these non-insurance completed subsidiaries of AB more $X.X will and

a changes LDTI that XXXX. and forthcoming ensures which our sound accounting products, framework economic robust fair position, adoption the capital we by are aligned closely look pricing forward compass of economic business. we be in Our of the steer to value to and continues the This

assets testament billion has much holdings. to impact The value We at update our fair $X management. and strong, capital and and reporting. of assumption transparent value our effectiveness quarter remains minimal position liquid had is with are The the very fair for of equitable annual results a in this cash

continue have to an $XXX and was transaction to deliver this point is million $XXX since the on returned our of these value in which and unique of Venerable IPO. deliver million returned peers, think ratio us last plus and We in XX% When XX% payout I has differentiating think retirement the chain reality insurance proposition And our segments, is a capture incremental consistently from detail we businesses to equitable Retirement, quarter. will the retirement shareholders. Management dividends which growing but to Asset the and target, our and of Distribution. page. the while highlight to from Collectively, on in naturally three form our final superior highlight like further and we we I full client the for been would our three business opportunity equitable billion equitable, value businesses; differentiates deliver outcomes to buybacks, the $X.X positions following model, shareholders capture Affiliated our

retirement turning insurance clients solutions to a more been help providing years and to for first, well-being financial secure So XXX now. has X, slide their life than business. our Equitable

We number economic of K the these one the in also in as the market. value innovation educate variable XX in number in the market the XXXX, our the ability number succeed, demonstrating in fair annuity the all annuity is holds living the and through product not in framework. Equitable businesses with Buffett the and variable XB have shape position for the variable market, XXXXs, just first our to position annuity a two benefit we XXXXs Today, but history market pioneering Underlying markets position one life creating play here. wider the of

capital businesses Over that interest more the and sensitive. efficient less last have decade, we to shifted are

billion historically enhanced is a operations rates around equity management. volatile a There renowned life three of year, and asset cash flows stable per strategic unique advantages despite markets. to ownership this. historic have were of globally Equitable $X our that XX% What subsidiaries interest by insurance low generated AllianceBernstein, our As is result, are

complex portfolios as such tools, volatility to investment expertise. our and wealth and First, capabilities, we design insurance attractive management need both are more develop our clients, model are able annuities buffered to for solutions and

have expertise. We that

impressive AllianceBernstein from our XXX%. since attractive capital a diversified has Secondly, – a been over provides AB returns shareholder have IPO business. of and The total very from returns return light delivered AB

under cash $XXX in This grown billion by received holding approximately have $XXX at $XXX which This approximately reflected period. shareholders. of company per flows, time enhanced to over IPO performance per that is benefits our million directly Assets year. annum have management million from million EQH to grown $XXX from the the

that are of flows regulated insurance entities. the cash Now, outside

serves equitable’s Finally, seed an into pillar policyholders benefiting Advisors business returns our the distribution. returns we AUM and model efficiency to there call approximately manage provide last for XX% capital risk And of stake two is, cycle million billion and us of sales of and virtuous source for improve to a better attractive enable both unique represents businesses. build past general year risk from alternative AB’s now the business. deliver affiliated announcement $XXX $XX grow quarter mix, Equitable AB. use . general capital certainty between ability weighted our AB benefiting adjusted account of of permanent to The we've are private the alternative our the course, revenues in from businesses in better The capital equitable equitable worth multiple shareholders. to final as shareholders account XX% and of to which synergies to of further utilize enhanced higher described AB and We seed in the our to-date and Equitable

Robin? in $XX.X and For XX benefit growth dedicated X,XXX assets leadership group XXX leverage in And forward, shareholder under these business driven by what through strong, value. differentiators a wealth continue our professionals to will retirement turn the is quarter Insurance, third of Robin position K management affiliated asset billion is management result to financial example, and to our the administration, remains drive up distribution Equitable sets dealer our year-over-year direct market I we'll primarily now educators advisors. cover of apart. to XX% looking our and long-term broker results.

Robin Raju

Mark. you, Thank

results Turning slide I will our quarter. the to third consolidated for X, review

detail…… more providing Before

Operator

I have unmute. It Caller, mute, information. your seems if some on please issues your name, we gathering you're please? Can have

Robin Raju

as at general one-time from continued performance account optimization and alternatives, our …reflecting impact prepayments. well favorable

to addition In account fee increased higher on values. revenue

alternative our in share. or in mentioned, year-over-year per of share. per a per share, minimal higher the earnings were of earnings the a highlight primarily resulted XX% driven and Other As Adjusting to $X.XX for or fair prepayments, $X.XX the $X.XX setting, items performance notable $XXX million will net page were on on up by impact $X moment items, I comparable million, impact a million approach basis. a Mark on which or a value earnings with quarter non-GAAP following non-GAAP the accounting notable $XXX in

the operating non-GAAP our between in gain was in results and impact markets, a a was in GAAP which hedging net strong equity earnings economic by income million Moving primarily the to asymmetry and accounting GAAP limited in liabilities. the resulting driven quarter, flat $XXX our

hedging management with and AUM Our billion, performed net the reflecting strength by $XXX equity hedge third program, as effectiveness of our businesses. of markets of and expected, billion, positive flows supported $X.X strong a increased quarter retirement XX% asset

briefly outcome reserving of updates X, our context in framework. slide to Turning economic the our review I'd like the to of assumption annual

LDTI model in is highlighted, prudent, As of incorporates also for and rates. positions upcoming approach us both interest but policyholder fair industry's in well behavior previously value realistic only our we reserves changes not terms This XXXX. the accounting

at $X align from impact updates attributable to million assumption $XX behavioral to non-GAAP and operating this made the adjustments only results, an our to from impact net experience. our evident assumptions impact emerging nominal year's million were As income largely the earnings further

reflect balance GMxB in we of exemptions. all our but fair markets continually approach also our to is value not As reserves, and appropriately sheet and capitalized remain we the is consumer capital protect experience believe ensures assumptions. emerging in our Further immunizes environments. our appropriate it our behavior It's evolve, reserving demonstrating integrity only

and As past, disconnected economic GAAP are illustrated statutory realities. assumptions under we've accounting interest the in from rate

uses we X% our economic approximately NAIC to to hedged framework. forward example, model, at in currently curve which quarter the compared the under a X.X% For

Difficulty] that sheet As as assumption, a the also lowest reality the percent are last the rise. are industry statutory for NAIC in not reserves generator. compared a aligned [indiscernible] scenario of the the to deeply to money among a represents surrender today's expect [Technical well which when dependent is the changes interest balance and approximately positioned more our at on in rates that points we basis will Further, policyholders with our result, guarantees XX This to reflects bets

Operator

is This the operator.

to your earlier. first please? and name, have of I unable the May was last [Operator instructions] information spelling gathered Your be

Robin Raju

Overall, Under to changes. antiquated stronger interest accounting the and and framework. aligns upcoming industry the equitable in results policyholder reserves rate behavior assumption on as position well

individual will the slide retirement segments, on to I Moving begin business with X.

of million marking Venerable and On legacy $XXX our in As closed basis, $XXX and annual June, earnings reducing a earnings. $X.X value, were transaction in impact in a operating reminder, reported resulting of two-thirds billion over the million. rates a

Excluding would strong Venerable negative the of offset items income notable primarily earnings income updates. driven equity net and favorable million $XX $XX Results transaction, million assumption higher by alternatives included year-over-year, markets. and by of have million from investment the often of including quarter, prepayments, $XX net in investment higher been

Turning $X.X position retail in the we portfolio. billion all-weather strong benefit Strategies billion. in to saw total Capital product of quarter to for our we Structured in continue business sales product This protected from segment our $X.X demand of equity where our one retirement new includes market, of another activity, and record sales consumer the number

activity and breadth Our business reflect and strength leadership the strongly our of position distribution.

quarter inflows of in net we million $XXX As the our more reported product. capital in a resilient result,

quarter first positive individual IPO. net flows since The in retirement an of

assumption higher from renewal of slide Turning versus premiums $XXX driven year-over-year. remained items, $XXX $XXX continued year by up $XX alternatives premiums quarter, of fee an retirement and premiums group in the million Results of of and prior and X% net persistency million the X. revenue notable increase million of pre-payment investment $XX driven net by strong XX% $XX up also with with to million, income from including Growth on We alternatives million year income first and earnings updates. year-over-year quarter, investment in higher operating values. account XX% reported on up million, include

line to were seasonality by the leading driven in closed As the withdrawals the the outflows XD four slightly with prior schools third years, values primarily business remained quarter, during quarter elevated Despite for X,XXX experience. equitable the dedicated, persistency historical thanks rates America our in resilient, at educators remain across to in helping XX% advisers over The high had to save retirement. net summer. for higher market, in with account business with

gross offsetting In slide sales Led Ab quarter turning of X% up the driven increased Now retail fees to were AllianceBernstein sequentially. up sales XX% expenses. up XX% billion, had an operating channel, on increase another higher up in $XXX AUM, third $XX.X operating quarter X. on year-over-year. year-over-year, million $XX.X in earnings base by record by primarily billion,

income billion inflows distribution inflows of net the net the and inflows over across was generated channel, flows all adjusted inflows fixed supported AB trailing with Additionally, year flows management a operating third contributed the to attributable of active equity three operating the Total performance flows is margin Asia. net to to net consecutive of Ab channel. billion market on active quarter or XX.X% positive net prior of and the month outperforming $X.X XX% strong basis. XX% attributable in retail are its flows a strong year $X.X a Net of AB the more by XXth one $XX over equity three clients and in end of performance $X.X quarter. of investment assets assets and This leverage net the that year five in billion at quarter and to of under US up year, billion retail from channels strong period. the XX in positive a a quarter $XXX over billion deliver continues the for strong

$XX updates. XX, on lower to the from values investment net notable million, $XXX on by and million reported prior attributable million items prepayments slide $XX of account million $XX higher earnings with quarter, income reserve solutions include we million income net revenue from accruals driven higher assumption operating of $XX from higher alternatives, Moving Results a in and in year protection and fee higher primarily investment the up to quarter,

continued shift We continue up up quarter, Annualized year-over-year, sensitive our variable year-over-year less premiums strong life employees. to benefits XX% universal generated $XX products. and the to now in approximately see sales XXX,XXX which employee quality our in our interest by with in XX% were premiums year-over-year, products premiums gross driven and highlighting XX% growth covers business, momentum million

of impact vastly new Going increased has benefit our and forward, earnings account the to million general of program rebalancing expected $XX per assumption sales of quarter. continued our improved value our update, business guidance

our XX, position to commitments. strong Turning and continues liquidity to to on capital our our deliver ability slide support

XX% with to cash $XXX closed ratio, we our plus and to-date incremental on on XXXX target to the XX% capital shareholders including billion to from of quarter, share program, VA buyback of deliver in $X.X minimum to assets holding leverage line our We In our of billion execute million target. our at continue with liquid stemming payout of to capital for and million this management our context quarter our executed close the $XXX management accelerated returning million $XXX track the program, returned repurchases. remain company, million an We above $XXX the on shareholders the and reinsurance $X maintained ratio transaction. well long-term we

on execute following reserve I’ll Our review the and restructuring strong which effectively to initiatives debt our as such enabled balance position has quickly and further financing, us sheet page.

we've on progress and from York redundant our XXX. mitigate reserve Reaching practice economic on delivering Turning financing Re. increase to the to with unregulated good restructuring a cash reserves action New a with plan billion made on to regulator permitted transaction Swiss now slide Reg. $X our flows, XX,

transaction we’ve consequences, transactions flows. any restructuring end we at thereby the mitigate such not in As of evaluating other following states. future securing became introducing Reg. cash the were June, began New be became permitted New companies XXXX, that of if XX Equitable, June, however, the York internal process a of at for and to redundant the unintended with Venerable the York we reminder, for XXX reserves reinsurance end binding domiciled XXX Reg. close of domiciled effectively would effective in the required Hence reach regulator

We restructuring In are report our moving company cash the entities. announced we pleased to of our we internal XX% out which flows account separate our completed come Holdings. actions, administration life ensures non-regulated approximately of to August, from

Swiss service coming actions, result to unlocked general these announced our flows to yesterday of billion AllianceBernstein reserves value, financing which investment flows, non-regulated addressing reserve have along redundant of Further, account from of the XX% Together, cash our QXX. in with with related approximately $X In moved entities. now addition, advisory the XX% XXX we approximately transaction remaining Re, a we Holdings. statutory cash

fair have aligns transaction our diligent and effective, impact earnings. redundant this nominal the the operating on model In with four the value been months Importantly, rate became will have non-GAAP in managing since reserves. we uneconomic,

long-term secure deep basis Mark managing closing cash at economic value comments. business generating flows our $X Our the to actions illustrate the actions to billion our Overall, and for cash subsidiaries. it I and shareholders. turn strong, for further our will back our from now sheet an our Mark? holding to-date of company commitment remains balance with future on to

Mark Pearson

Thank you, Robin.

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

strong need and by we and services the have delivered record quarter our businesses. for retirement supported management First, asset results strong a equity across by markets driven and our products

and announced financing Regulation our and further completed Second, $X our cash transaction restructuring flows actions internal newly billion impacts XXX. from mitigate secure

line Third, which are our distribution robust value us With the fair lastly, reinforces for which we our position full for on position our economic and Holdings commitments like our affiliated the your questions. our Equitable to value to And framework, chain employ consistently market. deliver that, key stakeholders. to to and continue business model capture I'd to differentiators open capital uniquely enables the

Operator

with [Operator question Wells first Instructions] Elyse Your Fargo. comes Greenspan from

is Your open. line

Elyse Greenspan

are you guys was just I accounting for impact you that you if financial some even expand or guys qualitative you impact that, Hi. you know, mentioned just some provide, on that they positioned you’re further understand I well would expect? have Thanks. help ready specific wondering could guys this that know and Good disclosure us to the first on give started LDTI details morning. quantitative if changes, My question, upcoming expect, to companies the

Robin Raju

It’s Good Robin morning, here. Elyse.

we've in reason in the our the fair XXXX. the being today. The mentioned really As accounting that the economic realities about value before, excited we're aligned business framework of to to changes they're managing

related how I for excited illustrated and as we forward. our positions and our And going we're believe we it so accounting the it change the rate assumptions, to manage well as business interest for behavior assumption, policyholder

out in detailed will the a of Day for with provide full elements more Investor We mid-XXXX. accounting change come investors. We'll

Elyse Greenspan

lot to look a additional guys you related about then guys Okay. transaction or second in going the forward? XXX capacity to my deal. should that into Thanks. Swiss following this remaining think And Re Did we address took you question, reserves of reinsurance redundant quarter the Reg how

Mark Pearson

Sure.

going So we We’ve cash are billion. York New QX reinsurance unregulated to actions ensure our the of unregulated with that, received quite $X flows in pleased we've Department. restructured five $X.X this us now And the XX% well to-date. practice with of We forward. remain the taken our permitted positions transaction subsidiaries that billion

and these We to in continue to taken helpful we've actions talk to-date. they've the us that DFS for been

of Going long-term forward, economic we assess we still we'll look importantly, shareholders. it but ensure to to deliver our most basis have value a to continue for on that an options we'll deploy, menu

Elyse Greenspan

Okay. Thanks for the color.

Operator

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

line open. line is Kligerman, open. Your Mr. your is

Andrew Kligerman

morning. good Oh,

around a $X and And Sorry. as triple transaction Thank $X billion annuity to guess transaction? you opposed why is is, timing questions. for I billion the taking question that variable a with maybe X my next the

Mark Pearson

morning, Good Andrew.

have one from permitted year billion New received your practice of for phase that meant timing. the $X The a address reserves. first regulator we benefit the redundant five we in me the let So on York

our business. action us that we take in aligned the the is any economics which to manage time and we it assess gives options ensure So to

have of reserves are options or balance As which evaluate we us reserves, with redundant the allows reserves redundant economic on having it that sheet. existing a result redundant additional to

that over in long-term. reserves having quickly So, us do for total reserves on what the which Re cost shareholders assess to redundant the good we XXX economic want and redundant we one more financing take Swiss at a can transaction, action to a allowed and was

the we have sheet. billion options at redundant have $X So menu mentioned, we're end I and that as day, we to pleased balance of the address we'll on that assess, of with the transaction the that reserves the quite

Andrew Kligerman

would on you Any sheet the deploy – just likely and balance sit for to Robin, long you a And time. and where capital? that agree Would like It's on with to thoughts that that? timing? not

Robin Raju

the unlock that should you assume the to that the would Correct. transaction we accelerate that $X going to the reserves reserves directly some are No, have billion XXX offset Reg. address from XX% quarter, XXX. the we’ll through in fourth the redundant of come that this Reg. of of redundant

Andrew Kligerman

I'm want would assume capital What you you I or – What deploying quickly do – you was so – would now? you time? meant Would meaning, would sorry, do that deploy shares? about back capital are that to buy an –what acquisition? I want that thinking take you your with Robin. and and to

Robin Raju

XX% No. delivering two See, committed you – our we is about think ratio. we’re on One things. to payout to should XX%

see you to this additional to the from probably an As million And have year, $X.X quarter $XXX we we on shareholders that. billion fourth go returned year-to-date. in

to assess As accelerate to for continue options drive XX% inorganic on options the first economic we’ll continue to to if value over we shareholders long-term. is deliver, deliver payout. the commitment our But to to the XX% market they continue for

Andrew Kligerman

billion into annuity $X.X just billion – versus on you lastly, And is a amazing jumping $X.XX this competition the sales Okay. know, a buffered market.

backdrop you've so So successful? and give you're little out on what could you there why seeing been a

Mark Pearson

you could one? take Nick, that

Nick Lane

Sure.

First, pie see overall I continue say would growing. to the we

driven think I by it's two factors.

downside protection given this period the First, providing it's instability. market upside a times that's with potential of product for right

Second the is equity of stories next looking as demographics fundamental approach phase. the for pre-retirees protected more they

XXXX in continues continue our to differentiator networks proposition affiliated privileged the be consumers. a relationships. value RILO deliver distribution and be of third-party the innovator to on have Our market we where strong to the We're proud to and our back

got sales confidence a quarter you we saw that and as So continue. will mentioned, record third we've

Operator

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

open. Your line is

Tom Gallagher

Good morning.

follow-up, deal. Robin to just First, this to understanding and of the mechanics

approved NYDFS? been this the First question by has

Mark Pearson

to December. New we expect Hey, close approved in has thanks, deal been the Tom. by the Department it and York Yes

Tom Gallagher

of you Reg. Robin, billion $X Okay. to offset going so the billion. correctly, the is half to $X if go I XXX And understood

annual from $XXX to this then so Is And the dropping going work? million should that to is effectively we about how million? think amortization $XXX

Robin Raju

right. the what that the billion reinsurance unlock $X have do the deal. And with quarter That's acceleration we in fourth that's we'll through this from

Tom Gallagher

economics options then you're – you the this, thinking remaining could are – trying that if do economics is right billion? if And you buffer it and do of a of for that? remaining you to thinking terms are that Or the Or bigger what are of menu are solve you're are can beyond the both – – if you solve just thinking just the – might shareholder $X about bigger than remaining would annuity bit is potentially or right? potentially Okay. it in billion? the the strategic address doing part it's, you to range $X – trying thinking in Reg. or and right, for the XXX something something whether little terms transaction you say a talk a or more something more block, I'm more and if friendly, your like were also will fill

Robin Raju

Sure.

on the know, Tom, over long-term. will basis we to economic – economics any for you will future So, ensure action drive the take that and as manage we business an shareholders

has lever. We from But us to over but if similar to that more. do options to going We have long-term would hurdle economic we have available can this to several it we'll option do forward. reserve to will for financing drive options look against, rate the were transaction pick the to meet pull XXX any economics shareholders to execute the that our

Tom Gallagher

one, raising to mortality elevated you makes sense already that if That expect over COVID impacts? than or just COVID to in would lower that – one to contemplate million some slip and near-term life $XX if the could perfect I guidance the be remains last confirm just does the

Robin Raju

Sure.

in leader the – $XX actions allows Difficulty] from first. and us progress let [Technical on So, to general life future higher made drive that interest assume assumes well, the on – our Three re-risking life two shifting the assume we is account the is made IPO higher of Advisors, the assumption guidance $XX earnings because a since [indiscernible] the impact by the the million yields business; million. rate We've higher supported us on mark persistency that good business. Equitable to on team to allows from three, took One business. the to we're pivot address for updates that margins earnings the away made run higher assumes in to be it volatile a and that had products market going sensitive positive that forward; me

us allowed come us teams the we future IPO taken with $XX to that and since work the and earnings actions guidance allowed So we've to had that confidence out million have in the provided.

lower as we've On we've the the the the front, of in COVID on past, you've been rate seen guidance given.

$XX We taking everything appropriate guidance continue to into million the stick though account. to that still as and feel is we

Tom Gallagher

you. Okay. Thank

Operator

line the Benguigui with of from comes question Barclays. next Tracy Your

open. is line Your

Tracy Benguigui

Good for morning. see probably as New less X fair would matters and another column you. on you, it your of value the be VM-XX your framework to strength Slide Reg. Thank demonstrates given domicile. York XXX helpful

And that XXX better older CTE which is you to looking went at newer to so you risk menu blocks in any makes more XXX potentially your economic the wondering of capital. newer blocks that framework. understanding no on under that Reg. trade that view only though I'm We're will you Reg. even risk, counterintuitive. So how earlier, intuitively you as rather the economic may than your your Robin, sense But you're older when for arbitrage economic. scenarios look of of work options, venerable at type weigh business, my those said

Mark Pearson

Tracy. Thank Sure. you,

to XXX. of uneconomic statutory frameworks the arbitrage we're Reg. company, different US a here As not or GAAP’s

economic the to to XX% shareholders. for value manage XX% is return priority business for first Our to and

frameworks itself other drive can driver that's not existing trying value any driving or economic to shareholders. really of of uneconomic our you that that assume value, are industry be to motivation address XXX to antiquated economic So Reg. action, today going the long-term for

Tracy Benguigui

way And since liquidity an the ability back, dollar from XX% loan your internal Am about to the deploy I about you payout? now XX not in really pay HoldCo. the OPCOES you the billion years to $X to XX% it. took it's it thinking I'm thinking your holding right company Got issue terms also, to billion this had that's

Mark Pearson

$X payout that annual there The the subsidiaries result which correct. XX% there we shareholders. billion for is of was That's that XX% of as $X.X cash today of is to we flows to have our support HoldCo, from receive at our the a billion ratio which

Tracy Benguigui

Right. internal XX a their being impede And doesn't that then structure ability, given year. loan term

Mark Pearson

Correct.

Tracy Benguigui

Okay. Thank for clarifying. you

Operator

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

open. Your line is

Ryan Krueger

Hi, good morning.

protection. in part on this loss the business loss that's recognition cause – of or to exist Is update you did is recognition? follow-up this First, still

Mark Pearson

Ryan. Thanks, Okay.

recognition, We but are that loss no basis. in still we had we on reserve accrued a that quarterly PFPL longer

made sales these a So forward. we general to assumption allow VUL account a us in less that have lower today – updates accrue and to we've rebalancing within that going business the the PFPL addition reserve

run generates as earnings So million $XX it of higher a rate result.

Ryan Krueger

management being taking business it. to that's And on reported generated this – earnings within you're on to the Got that wealth rough segment, – business? amount your by business grow corporate that the in you actions then any of point the at give update can some you're of

Mark Pearson

Advisors’ earlier distribution of mentioned model. and Mark with our proud supports business really there our We're the that's force Sure. built Equitable that position

do look, billion by that's so but generated operating of have business, earnings in that out $XXX that But into if to and investors. more to we look We're throughout year we haven't net for business. billion get disclosed business, significant you want the to AUA. of billion that earnings We for be $XX $XXX we pretty material. targeting really And can AUA break the so we that of future. growing operating to business try to flows the positive

Ryan Krueger

Thank it. you. Got

Operator

[Operator Instructions] from question Your Hughes Mark Truist. next with comes

is line open. Your

Mark Hughes

Yeah. Thank you. Good morning.

retirement, first has Or you the out is this new pointed think positive is off point quarter. by this in turned business of think your a you’re particular I the presumably corner? the positive had individual versus new maintain the net continue. in You definitely Do balanced that at expressed you've flows, sales that is helped and that'll it confidence quarter position flows, strong this net run to just the

Nick Lane

take that I'll Nick, is this Great, question.

be are and growth that's to product to our core continue expect growing out our there. by we strong retirement our footprint, address continuing to sales need flows in continue the core encouraged to as and continue we line you As that our new differentiators mentioned, in and see we the innovate distribution momentum

we we core business will going forward. to grow that are confident that So continue

Mark Hughes

into territory the it? positive more about that consistently, think is So way to

Nick Lane

I run the think business differently about blocks. our legacy and core positive more focus value Obviously, continue and economic on and think our to on basis, an we consistently. we

Mark Hughes

the initiative, any you've then update the so reduction had far? And any expense – on milestones

Mark Pearson

in – as we three Mark, growth. take long-term XX% million. in the Sure, to account of early to support General announced EPS that, year, was optimization, our the initiatives X% $XX I'll growth million. expenses that of you $X.X billion our we And quarter that rebalancing have in then second the with see our of of stage flows $XXX coming had the and business into overall. we It

and that our with good across and then through next and the over We expense on expenses variable expenses overall. to lower leverage to operating revenue track line three that in evenly expect you expenses, see the more aligned fixed On come coming years. remain

for initiatives. on all So three we remain track

Mark Hughes

you. Thank

Operator

conference gentlemen, Ladies today's call. concludes and this

now may disconnect. You

Equitable (EQH) 6 Nov 212021 Q3 Earnings call transcript