Thank you, Ellen, and morning, everyone. good
significant continued our our results by priorities. a our in than While strategic executing against handful were better items impacted of our quarter, demonstrating expectations, results were in overall the success underlying
on this I'm X areas going to morning. focus
results, of financials, provide quarter first a on an review segment our level and update capital. recap I'll First, including our
our on investment optimizing third, to our efforts portfolio. review operating And touch I'll I'll Second, model. our related
million adjusted the a morning, we stockholders with first $XX or operating common available start let's income So to reported per of recap quarter quarter. share. of $X.XX This
significant impacted in As opening items. remarks, noted few results our I were my by
operations call, million the during First, reduction we our head on was there made last from count as related a $XX quarter. to mentioned impact in the severance I quarter's other segment,
Second, legal a also there in accrual, was operations a impact from million $XX other segment. our
of Third, other of unfavorability, we Wealth drove a $XX Management our close sale in preparation items of balance tax-related million had Last, Annuities which business, the $XX operations. impact. primarily million the and true-up impacting a for had sheet
annualized from alternative was in investment to per $X an of million $X this Our or an delivered diversified share. $X.XX our after-tax more results approach or returns. alternative delivering return strong, quarterly targeted per our $XX solid Overall, negatively million. or be our investments below items $XXX the On X% than return In total, basis, risk-adjusted investment million portfolio long-term impacted our these benefiting by continued while results portfolio quarter share.
net reported factors. for turning was We for diluted predominantly to $X.X billion difference stockholders by driven quarter net X between common Now the income the $X.XX income to operating of The quarter. or and available per net income share. adjusted
First, rates from higher in nonoperating hedge equity performance, of positive favorable was inclusive income, the benefits movement to risk in resulting quarter. program within net market net driven by income there impact a markets interest in
Second, offset embedded in the corresponding positive or derivatives portfolio, there transaction. primarily comprehensive in the related value the to backing the a by This GAAP change the withheld fair securities of with funds AOCI. of through rates other insurance on driven agreement was higher income, the interest accumulated available-for-sale change Re impact flowing was the Fortitude
Now to segment turning the results.
of $XX quarter strong strategy of $XX million X.X%. with and our a by continued compared start diversification a the actions. Let's quarter management driven reported was with and book prior and of year a our in X.X% of operating to The margin of margin which improvement million income pricing execution of expense disciplined business, Group,
backdrop, unemployment results environment. continue Our Group macro supportive favorable from including interest a to a and benefit rate low
X% our Additionally, is business year-over-year, margin of on disciplined premium expectations and our which of expansion. with new Ellen noted, we reflective as of our and renewing supportive growth pricing line approach generated on in focus
continue loss driven lower X to improving while trends. have were incidents coupled benefit we versus Group percentage by the prior ratio continue variability of decreasing And the with quarter-to-quarter, results year XX%, this the quarter over quarter. mortality will results points as Life life to our pricing the see quarter, the was For actions,
was For roughly loss year-over-year. disability, by the ratio increasing points percentage X XX%,
and versus year elevated disability desired loss business our fundamentals within were results the in the quarter, longer-term strong claim short-term the our with overall underlying remain The were expectations. of range. incidents While and recoveries prior ratio drove disability line
The improving the Group results continued margin reflect for our execution Protection expansion to of strategy.
things. a towards look want second we I As few the to quarter, highlight
benefits the supporting we we result level record reported and back last second the quarter that While levels time the to strategic some environment low moderation been have underscored incidence led record LTD of seen we've record the year's taking, expected earnings, in actions since. towards at
this the business. quarter overall, results strength underlying So demonstrate our Group of our
While relative to our relative quarter the we this anticipate some upside of some in quarter next last to seasonal results results also year. we year, second our moderation quarter expect first
preparation year to unfavorable the quarter, balance sale compares of This from for the Annuities. income item significant favorable Wealth included business. prior which, million, reported $XXX tax-related $XXX in a included as items true-up sheet million turning earlier, of Annuities and our of $XX of I close to million. which in Management the resulting tax-related noted $XX Now operating a items totaling million
due year-over-year and in of wealth tax-related to significant and business, higher income. increased benefits balances account the the items, Excluding spread Annuities million improvements earnings average $XX management
increased markets in net an balances as sequentially ending equity higher than benefits increase Additionally, account from offset outflows. X% more
in of by for quarter outflows a increase factors. The driven was the combination
first impact now, all balances, The the well equal. second, year rates annuity case else a higher outflows interest in markets which being equity higher the And drive on fixed favorable was variable turn of for has of amount been outflows, the account total products. as over increases in
are reminder, a counterparties. our approximately is reinsured reinsured and XX% on or However, fixed ceded as block $XX business nearly billion surrenders reinsurance our to of Annuity
ago. balances and Lastly, now RILA XX% expanding total our than continue lines, as to like compared on balances X to almost years we product XX% focus of less spread account represent account spread
the improvement This reflects continued of continued quarter's this continued position earnings result balances, our business Higher account combined in ending our strength Annuities spread with margin, business. growth. underlying for
shifting balances. value rate $XX an driven crediting continued driven to by decline offset increase of Now primarily income year actions, from Services, and to fee Retirement million the $XX income stable in compared prior quarter. by account operating million Plan reported was which in outflows The partially participant higher
in throughout continue Base level third by for is rate stable compression persisted crediting while expected And quarter, rate spread the the actions participant-driven in total decreased driven quarter. before stabilizing to straight XXXX, and outflows primarily a XXXX. value
Average end-of-period billion, was XX% quarters as following balances account markets equity versus in Now flows, $XXX and as quarter of for were to turning balances. year positive for the account This XX% the driven result year-over-year balances well which the net increased up consecutive strength quarter. account outflows. quarter prior nearly by were the
the of confidence pipeline mentioned, us ability our our strength Retirement in our Ellen grow As gives to business.
to Life by million Lastly, an million turning reported operating an $XX as of operating to Re prior compared loss investment Life transaction impacts income. partially Insurance. rate improved Fortitude run the the of $XX the were offset quarter, in loss of year alternative
mortality. to Shifting
elevated have on net the somewhat our saw for driven mortality basis, expectations in this of were however, large in we amount relatively time case severity, a was majority the a was basis, life excess mortality While quarter results reinsurance. time small be with underlying generally by on when a by mixed. a line covered In come the in. space On block, claims you gross universal net of to pickup basis, a can which mortality from number
with side, quarter positive the in expectations. line us better-than-expected we mechanics variability Though first as Term results require in Overall, saw time. business. our over a of mortality Life's in LDTI were reminder, to On smooth the
in coming while Looking quarters, will results will our year. benefit seasonal over the the further the ahead, of support improvements actions mortality earnings expense remainder drive in
briefly company-wide on expenses. Touching G&A
rightsize diligently recent focused in quarters, continuing we base. I've to expense our mentioned on remain As
we that the large see a the important factors. to for improvement sequential impacts portion X the company due the During is improvement significant note It's excluding to the to of began overall. items, of quarter,
expense drivers, seasonal reduced with as particularly was Spark-related expenses. large investment in project. given volumes lower First, sales XQ lower compensation second, there associated infrastructure modernization that sales-driven And the
action spending on On an see to and underlying complexity. real we taking basis, unnecessary however, discretionary removing in are progress reducing organizational starting
XXXX begin that expect our in the the included second be outlook in years. coming will were want flow beyond. see we to cash provided driver progress last to the a of will the you this we quarter quarter, benefit and I and the in growing benefits of to for earnings We remind see free
the line RBC Let's an range ended with to in We in to with now year-end of estimated capital. the quarter turn XXX%, ratio XXX% XXXX.
which with While in there to are stability the markets, and legal many the stronger accrual always equity pieces moving severance. quarter, of is range any business underlying offset the of our results impacts the RBC given quarter by partially driven helps this benefit from
remains nature credit our where reflected which XX% investments, to results of once again investment high-quality the portfolio, grade. Moving
reflects disciplined credit want proactive investment and risk X provide management. Our positioning regular today. portfolio conservative our testing stress to on construction, portfolio I updates
on and performance. asset on of our efforts mortgage touch First, our our ongoing account then our investment general on the briefly expansion sourcing through capabilities; optimize commercial second, alternative our to portfolio; loan third,
with Starting account efforts. portfolio general our optimization
I continued enterprise high-quality time, us our maintain reduce our of has product the a duration portfolio. to same At earlier, mix to overall we As mentioned have allowed liabilities. the
result, structured In capitalizing add more maintaining incremental yield begun diversification leveraging our a to multi-manager so, opportunities maintaining asset have this, liquid unique by we've while doing to focused our on classic To similar yield while risk-adjusted source remains less on we strategy investment premiums. do As framework. returns. and assets incremental
During asset several mortgage incremental with managers of specialized we and the quarter, and relationships products expanded to loans. expertise management sourcing our provide structured
XXXX, in of relationships investment portfolio. supportive product be complement add our optimization expect we will ahead, investments see yield emerge time look to align earnings we well-positioned strategy that throughout competitiveness. with the we and take and incremental These value As portfolio, and expanding our to to continue view but to our credit
commercial our mortgage to turning loan Now portfolio.
invested conservatively positioned performed high-quality is loan It of our portfolio, overall and diversified an They X.X% an by average XX% geography. assets. total and just size have to mortgages represent positioned $XX and are size our extremely of conservatively loan representing invested assets. Office well. continue We with are has of million
of Importantly, debt-to-service the average and over coverage years. near-term ratios strong manageable have X.Xx next than on maturities remain more X
Additional in quarterly details portfolio on our investor found CML our can be presentation.
investments this investment below of expectation a quarter, X.X%. return alternative slightly on of X.X% performance. Lastly, Alternative our generated
the were from The real somewhat the returns Our They contributions the and with during and vintage the most to diversified achieve by limited sectors well is venture positive categories. reflected to broad-based our estate portfolio have sector of all and market to return that asset across impacted and long-term exposure negatively been underlying wide diversification of current in environments. strategy, our quarter variety portfolio remains economic environment. positioned continue a objectives
let points. closing, X reiterate me In
First, expectations, our quarter a underlying results results exceeded by impacted overall this significant our of were items. while handful
underlying continue the growth benefits earnings we the year, including different continue businesses our to and confident will we making. And while are will we are our that optimizing to emerge profitability increasing third, the actions to be stages are profiles, account on progress are line the and the financial with drive Second, taking pleased the from today taking, and their are longer-term with our expense we actions those throughout side of we optimization, in through general expectations. each of in continue
the turn me back let to that, With call Tina.
