Brighthouse Financial Inc (BHFAO) 2024 Q3 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to Brighthouse Financial's third-quarter 2024 earnings conference call.

早安，女士們、先生們，歡迎參加 Brighthouse Financial 的 2024 年第三季財報電話會議。

My name is Michelle, and I will be your coordinator today.

我叫米歇爾，今天我將擔任你們的協調員。

(Operator Instructions) As a reminder, this conference is being recorded for replay purposes.

（操作員說明）謹此提醒，本次會議正在錄製以供重播之用。

I would now like to turn the presentation over to Dana Amante, Head of Investor Relations.

我現在想將演講交給投資者關係主管達納·阿曼特 (Dana Amante)。

Ms. Amante, please proceed.

阿曼特女士，請繼續。

Thank you, and good morning.

謝謝你，早安。

Welcome to Brighthouse Financial's third-quarter 2024 earnings call.

歡迎參加 Brighthouse Financial 的 2024 年第三季財報電話會議。

Materials for today's call were released last night and can be found on the Investor Relations section of our website.

今天電話會議的資料已於昨晚發布，可以在我們網站的投資者關係部分找到。

We encourage you to review all of these materials.

我們鼓勵您查看所有這些材料。

Today, you will hear from Eric Steigerwalt, our President and Chief Executive Officer; and Ed Spehar, our Chief Financial Officer.

今天，您將聽到我們的總裁兼執行長 Eric Steigerwalt 的演講；以及我們的財務長 Ed Spehar。

Following our prepared remarks, we will open the call up for a question-and-answer period.

在我們準備好的發言之後，我們將開始問答期。

Also here with us today to participate in the discussions are Myles Lambert, our Chief Distribution and Marketing Officer; David Rosenbaum, Head of Product and Underwriting; and John Rosenthal, our Chief Investment Officer.

今天與我們一起參加討論的還有我們的首席分銷和營銷官邁爾斯·蘭伯特 (Myles Lambert)； David Rosenbaum，產品和承保主管；以及我們的首席投資長約翰·羅森塔爾 (John Rosenthal)。

Before we begin, I would like to note that our discussion during this call may include forward-looking statements within the meaning of the federal securities laws.

在開始之前，我想指出，我們在本次電話會議中的討論可能包括聯邦證券法含義內的前瞻性陳述。

Brighthouse Financial's actual results may differ materially from the results anticipated in the forward-looking statements as a result of risks and uncertainties described from time to time in Brighthouse Financial's filings with the SEC.

由於 Brighthouse Financial 向 SEC 提交的文件中不時描述的風險和不確定性，Brighthouse Financial 的實際結果可能與前瞻性聲明中預期的結果有重大差異。

Information discussed on today's call speaks only as of today, November 8, 2024.

今天的電話會議討論的資訊僅截至今天（2024 年 11 月 8 日）。

The company undertakes no obligation to update any information discussed on today's call.

該公司沒有義務更新今天電話會議中討論的任何資訊。

During this call, we will be discussing certain financial measures that are not based on generally accepted accounting principles, also known as non-GAAP measures.

在本次電話會議中，我們將討論某些不基於公認會計原則的財務指標，也稱為非 GAAP 指標。

Reconciliation of these non-GAAP measures on a historical basis to the most directly comparable GAAP measures and related definitions may be found in our earnings release, slide presentation, and financial supplement.

這些非公認會計準則衡量指標在歷史基礎上與最直接可比較的公認會計準則衡量指標和相關定義的調節可以在我們的收益發布、幻燈片演示和財務補充中找到。

And finally, references to statutory results, including certain statutory-based measures used by management are preliminary due to the timing of the filing of the statutory statement.

最後，由於提交法定聲明的時間，對法定結果的引用，包括管理層使用的某些基於法定的措施，都是初步的。

I'll now turn the call over to our CEO, Eric Steigerwalt.

現在我將把電話轉給我們的執行長 Eric Steigerwalt。

Thank you, Dana, and good morning, everyone.

謝謝你，達納，大家早安。

Today, I will provide an update on the strategic initiatives that we discussed on our second-quarter earnings call followed by some highlights from the third quarter.

今天，我將提供我們在第二季財報電話會議上討論的戰略舉措的最新信息，然後是第三季度的一些亮點。

Following my remarks, Ed will provide more detail on our financial results in the quarter.

在我發表講話後，埃德將提供有關本季度財務業績的更多詳細資訊。

I am pleased to share that in the third quarter, we continued to make progress on our strategic initiatives designed to improve capital efficiency, unlock capital, and return our combined risk-based capital or RBC ratio to our target range of 400% to 450% in normal market conditions.

我很高興與大家分享，第三季度，我們的策略性舉措繼續取得進展，旨在提高資本效率、釋放資本，並將我們的綜合風險資本或 RBC 比率恢復到 400% 至 450% 的目標範圍在正常市場條件下。

As I said on our second-quarter conference call, we are comfortable operating below our targeted RBC range for temporary periods.

正如我在第二季電話會議上所說，我們願意暫時在 RBC 目標範圍以下運作。

The reason for that is twofold: one, we have a number of strategic initiatives underway that we are confident will improve our RBC ratio.

原因有二：第一，我們正在進行多項策略舉措，我們有信心這些舉措將提高我們的 RBC 比率。

And two, we had $1.3 billion of liquid assets at the holding company as of the end of the third quarter.

第二，截至第三季末，我們在控股公司擁有 13 億美元的流動資產。

Our strategic initiatives include reinsurance opportunities, along with actions to help simplify our hedging strategy.

我們的策略性舉措包括再保險機會以及幫助簡化對沖策略的行動。

We are working on multiple reinsurance opportunities, both in-force and flow reinsurance.

我們正在研究多種再保險機會，包括有效再保險和流動再保險。

We have been working on one particular agreement with a third party to reinsure a legacy block of fixed and payout annuities.

我們一直在與第三方制定一項特定協議，以對遺留的固定年金和支付年金進行再保險。

We are in the final stages and expect to enter into this reinsurance agreement before year-end.

我們正處於最後階段，預計在年底前簽訂再保險協議。

Pro forma for this reinsurance agreement, our September 30 estimated combined RBC ratio, would be at the lower end of our targeted range in normal markets.

根據此再保險協議的形式，我們 9 月 30 日估計的綜合 RBC 比率將處於正常市場目標範圍的下限。

In addition, we have made substantial progress on simplifying our hedging strategy.

此外，我們在簡化對沖策略方面取得了實質進展。

As we have discussed previously, the significant growth we have seen in our Shield annuity block over the past several years has resulted in a balanced risk profile for our annuity business but has also increased the complexity of managing our variable annuity or VA and Shield business on a combined basis.

正如我們之前所討論的，過去幾年我們的盾牌年金業務的顯著增長導致了我們年金業務的風險狀況平衡，但也增加了管理我們的可變年金或 VA 和盾牌業務的複雜性。上。

To address this issue, we started to hedge Shield sales on a stand-alone basis with the launch of our new Shield product in July, which we discussed on our second-quarter earnings call.

為了解決這個問題，我們開始在獨立的基礎上對沖 Shield 銷售，並在 7 月推出了新的 Shield 產品，我們在第二季財報電話會議上對此進行了討論。

We are expanding that approach in the fourth quarter to include our Shield Level Pay Plus product that was launched in August of 2022 and any remaining sales associated with our Shield product suite.

我們將在第四季度擴展此方法，以涵蓋 2022 年 8 月推出的 Shield Level Pay Plus 產品以及與我們的 Shield 產品套件相關的任何剩餘銷售。

Additionally, we are formulating a revised hedging strategy for our in-force book, which will now essentially be a closed block of business.

此外，我們正在為我們的有效帳簿制定修訂後的對沖策略，該策略現在基本上是一個封閉的業務板塊。

Despite the refinements to our hedging program, our overall focus remains the same, which is to protect our statutory balance sheet under adverse market scenarios.

儘管我們對對沖計劃進行了改進，但我們的總體重點仍然相同，即在不利的市場情況下保護我們的法定資產負債表。

At the end of the third quarter, we estimate that our combined RBC ratio was between 365% and 385%, and Ed will discuss that in more detail in a moment.

在第三季末，我們估計我們的綜合 RBC 比率在 365% 到 385% 之間，Ed 稍後將更詳細地討論這一點。

As I mentioned earlier, we expect our combined RBC ratio would be at the low end of our target range in normal markets, assuming the entry into the reinsurance agreement on our fixed and payout annuity in-force business.

正如我之前提到的，假設我們的固定和支付年金有效業務簽訂再保險協議，我們預計我們的綜合 RBC 比率將處於正常市場目標範圍的低端。

Also, at the end of the quarter, our holding company liquid assets remained very robust and were approximately $1.3 billion.

此外，截至本季末，我們的控股公司流動資產仍然非常強勁，約為 13 億美元。

We have consistently stated that it's appropriate for a life insurer to have a conservative cash and liquidity position at the holding company, and our recent experience illustrates why this is a prudent strategy.

我們一貫表示，人壽保險公司在控股公司擁有保守的現金和流動性頭寸是合適的，我們最近的經驗說明了為什麼這是一個審慎的策略。

Our substantial cash at the holding company also supports our common stock repurchase program.

我們在控股公司的大量現金也支持我們的普通股回購計畫。

In the third quarter, we repurchased $64 million of our common stock with an additional approximately $25 million repurchased through November 1.

第三季度，我們回購了 6,400 萬美元的普通股，並在 11 月 1 日之前額外回購了約 2,500 萬美元。

From the beginning of our share repurchase program, which started in August of 2018, through November 1 of this year, we have repurchased over $2.4 billion of our common stock, reducing our shares outstanding by over 50% over that time and since we became an independent public company in 2017.

自 2018 年 8 月啟動股票回購計畫以來，到今年 11 月 1 日，我們已回購了超過 24 億美元的普通股，在此期間，我們的流通股減少了 50% 以上，自從我們成為一家2017年成為獨立上市公司。

Along with our commitment to prudent financial management, our overall priorities at Brighthouse Financial have been consistent over the years and are focused on executing our growth strategy, which is centered around our complementary and competitive market offerings as well as our expansive third-party distribution footprint and efficiently managing our expenses as we recognize that being a low-cost producer is very important in our industry.

除了我們對審慎財務管理的承諾之外，Brighthouse Financial 的整體優先事項多年來一直保持一致，並專注於執行我們的成長策略，該策略以我們互補和有競爭力的市場產品以及我們廣泛的第三方分銷足跡為中心並有效管理我們的開支，因為我們認識到成為低成本生產商在我們的行業中非常重要。

We have continued to execute on this focused strategy which is demonstrated both by our strong sales results through the third quarter of this year and the year-to-date reduction in our corporate expenses.

我們繼續執行這項重點策略，今年第三季強勁的銷售業績和年初至今公司費用的減少都證明了這一點。

On a year-to-date basis, through September 30, our total annuity sales were $7.8 billion, consistent with the same period in 2023.

今年迄今，截至 9 月 30 日，我們的年金銷售額總額為 78 億美元，與 2023 年同期一致。

Sales of our flagship Shield annuity products have remained very strong at $5.8 billion year to date, a 15% increase over 2023 and a record level for Brighthouse.

我們的旗艦 Shield 年金產品的銷售額今年迄今仍保持強勁，達到 58 億美元，比 2023 年增長 15%，創下 Brighthouse 的創紀錄水平。

We intend to remain a leader in the registered index-linked annuity or RILA market with continued growth in our Shield sales.

我們打算透過盾牌銷售的持續成長，繼續維持註冊指數掛鉤年金或 RILA 市場的領先地位。

Additionally, we remain pleased with our fixed annuity sales as we continue to see year-over-year growth in our fixed index annuities driven by our SecureKey product.

此外，我們對固定年金銷售仍然感到滿意，因為我們繼續看到由 SecureKey 產品推動的固定指數年金同比增長。

While sales of fixed deferred annuities were down on a year-to-date basis, they picked back up in the third quarter as expected as we transitioned to a new reinsurer in June.

雖然固定遞延年金的銷售額年減，但隨著我們在 6 月轉向新的再保險公司，第三季的銷售額仍按預期回升。

We've continued to grow in the life insurance space with life insurance sales of $87 million year to date through September 30, an increase of 19% compared with the same period last year.

我們在人壽保險領域持續成長，截至 9 月 30 日，人壽保險銷售額已達 8,700 萬美元，較去年同期成長 19%。

I'm pleased with the strong sales results that we continue to deliver and expect further growth in both annuities and life insurance sales as we remain focused on providing a comprehensive and complementary suite of products.

我對我們繼續取得的強勁銷售業績感到滿意，並期望年金和人壽保險銷售進一步成長，因為我們仍然專注於提供全面和互補的產品套件。

I would also like to touch on our expansion into the institutional space with the launch of BlackRock's LifePath Paycheck product earlier this year.

我還想談談我們今年稍早推出的貝萊德 LifePath Paycheck 產品向機構領域的擴張。

As we discussed on our second-quarter earnings call, when we received our first deposits, we did not expect to see much activity in the third quarter as the inflows associated with LifePath Paycheck will be uneven on a quarter-to-quarter basis as defined contribution plans implement the solution.

正如我們在第二季財報電話會議上討論的那樣，當我們收到第一筆存款時，我們預計第三季不會有太多活動，因為與LifePath Paycheck 相關的資金流入將按季度計算不均衡（定義）貢獻計劃實施該解決方案。

While we expect limited activity through the end of this year, we do expect to see additional inflows in 2025, and we remain very excited about this product and its success to date.

雖然我們預計到今年年底的活動有限，但我們確實預計 2025 年會有更多資金流入，並且我們對該產品及其迄今為止的成功仍然感到非常興奮。

Along with the continued success in our growth strategy, we remain disciplined with our expense management.

隨著我們的成長策略的持續成功，我們仍然嚴格遵守費用管理。

Corporate expenses were $203 million in the third quarter and $610 million on a year-to-date basis, a 5% decrease year over year.

第三季公司支出為 2.03 億美元，年初至今為 6.1 億美元，較去年同期下降 5%。

As I have said previously, we expect an increase in the fourth quarter expenses as a result of typical seasonality.

正如我之前所說，由於典型的季節性因素，我們預計第四季度的支出將會增加。

We still anticipate full-year 2024 corporate expenses to come in lower than full-year 2023.

我們仍預期 2024 年全年企業支出將低於 2023 年全年。

In closing, I am pleased with all the progress we have made on our strategic initiatives, which are designed to create more capital efficiency, unlock capital, and return our combined RBC ratio to within our target range under normal market conditions.

最後，我對我們在策略性舉措方面取得的所有進展感到高興，這些策略舉措旨在提高資本效率、釋放資本，並將我們的綜合 RBC 比率恢復到正常市場條件下的目標範圍內。

While our work continues, we remain focused on continuing to execute on our strategy, and I look forward to keeping you updated on our progress.

在我們的工作繼續進行的同時，我們仍然專注於繼續執行我們的策略，我期待著向您通報我們的最新進展。

With that, I will turn the call over to Ed to discuss our financial results in more detail.

接下來，我會將電話轉給艾德，更詳細地討論我們的財務表現。

Thank you, Eric, and good morning, everyone.

謝謝你，艾瑞克，大家早安。

As of September 30, our statutory combined total adjusted capital or TAC was $5.7 billion, an increase of $300 million from $5.4 billion at the end of the second quarter.

截至 9 月 30 日，我們的法定合併調整資本總額或 TAC 為 57 億美元，比第二季末的 54 億美元增加了 3 億美元。

The increase in TAC is associated with our efforts to simplify our VA and Shield hedging program.

TAC 的增加與我們簡化 VA 和 Shield 對沖計劃的努力有關。

As Eric mentioned, we have expanded our stand-alone hedging strategy for new business, which creates a simplified approach for risk management.

正如艾瑞克所提到的，我們擴大了新業務的獨立對沖策略，這為風險管理創造了一種簡化的方法。

We began the process of managing our Shield product sales on a stand-alone basis in July with the launch of our new product suite.

隨著新產品套件的推出，我們在 7 月開始獨立管理 Shield 產品銷售。

We are expanding that approach in the fourth quarter to include our Shield product with lifetime withdrawal benefits known as Shield Level Pay Plus, and the residual sales of our old Shield product suite.

我們將在第四季度擴展這種方法，將我們的 Shield 產品納入終身提款福利（稱為 Shield Level Pay Plus），以及我們舊的 Shield 產品套件的剩餘銷售。

As part of this process, we have separated the annuity business into two categories.

作為此過程的一部分，我們將年金業務分為兩類。

The first is Shield new business, which represents approximately 95% of total VA and Shield sales.

第一個是 Shield 新業務，約佔 VA 和 Shield 總銷售額的 95%。

And the second is our in-force block of legacy VA and legacy Shield contracts, which, as Eric mentioned, can essentially be thought of as a closed block.

第二個是我們有效的舊 VA 和舊 Shield 合約區塊，正如 Eric 所提到的，本質上可以被認為是一個封閉區塊。

By hedging Shield new business on a stand-alone basis, we are increasingly reflecting all future hedges on the balance sheet today.

透過單獨對沖盾牌新業務，我們越來越多地在今天的資產負債表上反映所有未來的對沖。

For the legacy block, we are developing a separate hedging strategy and expect this work to continue into 2025.

對於遺留區塊，我們正在製定單獨的對沖策略，並預計這項工作將持續到 2025 年。

As a result, we can only reflect our current hedges for our legacy block on our balance sheet today.

因此，我們今天只能在資產負債表上反映我們對遺留區塊的當前對沖。

It is important to highlight again that while we are revising the hedging strategy, our focus on protecting the statutory balance sheet under adverse scenarios remains unchanged.

需要再次強調的是，雖然我們正在修改對沖策略，但我們在不利情況下保護法定資產負債表的重點仍然沒有改變。

For example, we would expect to see substantial gains from our hedging program relative to the VA Shield total asset requirement under an extreme bear market scenario.

例如，在極端熊市情境下，我們預期相對於 VA Shield 總資產要求，我們的對沖計畫將帶來可觀的收益。

The changes to our hedging program in the third quarter resulted in a positive impact to reserves benefiting TAC with an offsetting increase in required capital, and therefore, a muted impact to the combined risk-based capital or RBC ratio.

第三季我們對沖計畫的變化對有利於 TAC 的準備金產生了積極影響，抵消了所需資本的增加，因此對綜合風險資本或 RBC 比率的影響不大。

This benefit to TAC was partially offset by a normalized statutory loss of approximately $300 million in the quarter.

TAC 的這項收益被本季約 3 億美元的正常化法定虧損部分抵銷。

Normalized statutory results reflect the continuation of a negative impact from new business strain, which we anticipate will be less in future quarters as a result of hedging all of our Shield new business on a stand-alone basis.

標準化的法定業績反映了新業務壓力的持續負面影響，我們預計，由於我們對所有 Shield 新業務進行了獨立對沖，未來幾季的負面影響將會減少。

In addition, flow reinsurance is another initiative that could further reduce new business strain in 2025.

此外，流量再保險是另一項可以進一步減輕 2025 年新業務壓力的措施。

We also had a modest loss associated with the significant change in the interest rate environment in the quarter.

由於本季利率環境的重大變化，我們也遭受了小幅損失。

The normalized statutory loss led to the change in our combined RBC ratio, which we estimate to be between 365% and 385% at the end of the third quarter.

標準化法定損失導致我們的綜合 RBC 比率發生變化，我們估計第三季末該比率在 365% 至 385% 之間。

As Eric mentioned, pro forma for the pending reinsurance transaction that is expected to close before year-end, our estimated combined RBC ratio would have been at the lower end of our target range of 400% to 450% in normal markets at September 30.

正如 Eric 所提到的，預計在年底前完成的再保險交易預計在 9 月 30 日正常市場中，我們估計的綜合 RBC 比率將處於 400% 至 450% 目標範圍的下限。

Our cash position remains robust with holding company liquid assets of $1.3 billion at September 30.

截至 9 月 30 日，我們的現金狀況依然強勁，控股公司流動資產為 13 億美元。

We have consistently stated that it is appropriate for a life insurer to have a conservative cash and liquidity position at the holding company.

我們一貫表示，人壽保險公司在控股公司持有保守的現金和流動性部位是適當的。

And our recent experience illustrates why this is a prudent strategy.

我們最近的經驗說明了為什麼這是一個謹慎的策略。

Now turning to adjusted earnings results in the third quarter.

現在轉向第三季調整後的獲利結果。

Adjusted earnings, excluding the impact from notable items, were $243 million which compares with adjusted earnings on the same basis of $346 million in the second quarter of 2024 and $275 million in the third quarter of 2023.

在剔除重要項目的影響後，調整後收益為 2.43 億美元，而 2024 年第二季調整後收益為 3.46 億美元，2023 年第三季調整後收益為 2.75 億美元。

The notable items in the quarter were related to the annual actuarial assumption review and related model refinements, which had a net favorable impact on adjusted earnings of $524 million after tax.

本季值得注意的項目與年度精算假設審查和相關模型改進有關，這對調整後的稅後收益產生了 5.24 億美元的淨有利影響。

As part of this assumption review, we increased our assumed GAAP long-term mean reversion rate for the 10-year US treasury from 3.75% to 4%.

作為這項假設審查的一部分，我們將 10 年期美國國債的假設 GAAP 長期平均回歸率從 3.75% 提高到 4%。

We continue to assume that mean reversion occurs over 10 years.

我們繼續假設均值迴歸發生超過 10 年。

The increase in our long-term interest rate assumption as well as an actuarial model refinement related to expenses, drove a substantial benefit to adjusted earnings in our runoff segment.

我們長期利率假設的增加以及與費用相關的精算模型的完善，為我們徑流部門的調整後收益帶來了巨大的好處。

The total impact in the runoff segment from the actuarial assumption review and related model refinements was $570 million after tax.

精算假設審查和相關模型改進對徑流部分的總影響為稅後 5.7 億美元。

Our annual assumption review also included consideration of emerging experience and industry experience studies, which resulted in modest changes to our life and annuity segments.

我們的年度假設審查還包括考慮新興經驗和行業經驗研究，這導致我們的壽險和年金部分發生了適度的變化。

Excluding the impact of notable items, the adjusted earnings results in the third quarter were approximately $30 million below our quarterly average run rate expectation driven by lower alternative investment returns.

排除顯著項目的影響，由於另類投資回報較低，第三季調整後獲利結果比我們的季度平均運行率預期低約 3000 萬美元。

The alternative investment yield was 1.6% in the quarter.

本季另類投資報酬率為 1.6%。

As a reminder, we expect returns between 9% to 11% annually over the long term for our alternative investment portfolio.

謹此提醒，我們預期另類投資組合的長期年報酬率為 9% 至 11%。

The underwriting margin was in line with our quarterly average run rate expectation.

承保利潤率符合我們的季度平均運行率預期。

However, it was lower sequentially driven by normal fluctuations in the volume and severity of claims, net of reinsurance.

然而，由於索賠數量和嚴重程度的正常波動（扣除再保險），該比率連續下降。

In the third quarter, the runoff segment experienced higher net claims, which was partially offset by favorable net claims experienced within the life segment.

第三季度，徑流險種的淨索賠額較高，但部分被壽險險種中有利的淨索賠額所抵銷。

Turning to segment results.

轉向細分結果。

In the third quarter, the annuities segment reported adjusted earnings of $307 million, excluding notable items.

第三季度，年金部門報告調整後收益為 3.07 億美元，不包括重要項目。

On a sequential basis, annuity results reflect lower fees driven by seasonality.

按順序來看，年金結果反映了季節性驅動的費用下降。

Adjusted earnings, less notable items, were $41 million in the life segment.

壽險業務的調整後收益（不那麼引人注目的項目）為 4,100 萬美元。

Sequentially, lower net investment income driven by lower alternative investment returns was mostly offset by a higher underwriting margin.

因此，另類投資報酬率下降導致的淨投資收入下降大部分被承保利潤率上升所抵銷。

The run-off segment reported an adjusted loss of $107 million, excluding notable items.

不包括重要項目，徑流部門報告調整後虧損為 1.07 億美元。

The sequential results reflect lower net investment income and a lower underwriting margin.

連續業績反映了淨投資收入和承保利潤率的下降。

Corporate and other was flat sequentially with $2 million of adjusted earnings.

企業和其他業務與上一季持平，調整後收益為 200 萬美元。

In conclusion, we are simplifying our hedging strategy while pursuing multiple initiatives to improve capital efficiency and unlock capital.

總之，我們正在簡化對沖策略，同時採取多項措施來提高資本效率和釋放資本。

And we anticipate that these actions will have a positive impact on our combined RBC ratio.

我們預計這些行動將對我們的綜合紅血球比率產生正面影響。

We are confident in our financial position, which is a combination of our statutory balance sheet and cash at the holding company, and we continue to have substantial protection for adverse market environments.

我們對我們的財務狀況充滿信心，這是我們的法定資產負債表和控股公司現金的結合，並且我們繼續為不利的市場環境提供實質保護。

With that, we would like to turn the call over to the operator for your questions.

因此，我們希望將電話轉給接線員詢問您的問題。

(Operator Instructions) Suneet Kamath, Jefferies.

（操作員說明）Suneet Kamath，Jefferies。

Just want to start with Eric.

只是想從埃里克開始。

Eric, have you and the Board talked about bringing in more risk management experience?

艾瑞克（Eric），您和董事會是否討論過引入更多風險管理經驗？

And the reason I ask is, this is now I think four quarters in a row where the RBC has been under some pressure.

我問的原因是，我認為加拿大皇家銀行現在已經連續四個季度面臨一些壓力。

The peer multiples that we've seen in the market are materially higher than yours.

我們在市場上看到的同業本益比遠高於您的本益比。

It's one of the best environments we've seen for your business model, and we keep getting these RBC surprises.

這是我們見過的最適合您的業務模式的環境之一，我們不斷收到 RBC 的驚喜。

So I just wanted to get your thoughts on, do you need to bring in some more help just to get this thing back on track?

所以我只是想了解您的想法，您是否需要提供更多幫助才能讓這件事重回正軌？

Yeah.

是的。

Thanks, Suneet.

謝謝，蘇尼特。

It's a good question.

這是一個好問題。

We have brought in more help.

我們帶來了更多的幫助。

We brought in a number of external resources.

我們引進了一些外部資源。

And frankly, we've hired up in the last six months in the hedging area, finance area.

坦白說，我們在過去六個月裡招募了對沖領域、金融領域的員工。

So yeah, as we've reached sort of that delta neutral situation between new Shield business and the gross amount of Shield business that we put on the books, that we have, generally from a hedging perspective, hedged against the old VA block, which we've talked about for years now.

所以，是的，當我們在新的盾牌業務和我們記入賬簿的盾牌業務總量之間達到了一種增量中性的情況時，我們通常從對沖的角度來看，對沖了舊的VA區塊，這我們已經討論很多年了。

Now we're in a situation where we feel it is appropriate to refine that hedging strategy, and we have brought in a number of resources to help us do that.

現在，我們認為有必要完善對沖策略，並且我們已經引入了許多資源來幫助我們做到這一點。

We're making a lot of progress there.

我們在那裡取得了很大進展。

We still got progress to make.

我們仍然需要取得進展。

Ed, do you want to comment at all in addition?

Ed，您還想發表評論嗎？

Yeah.

是的。

Thanks, Eric.

謝謝，埃里克。

So I guess -- what I would say is echo everything that Eric said, when you look forward as a result of the things that we are implementing today, the key change we anticipate in the fourth quarter and beyond is less strain from new business.

所以我想 - 我想說的是呼應埃里克所說的一切，當你展望我們今天正在實施的事情的結果時，我們預計第四季度及以後的關鍵變化是新業務帶來的壓力減輕。

And just to step back for a second.

退後一步。

We have benefited from managing VA and Shield together historically.

我們從歷史上共同管理 VA 和 Shield 中受益匪淺。

It has been a benefit to our capital.

這為我們的首都帶來了好處。

Now that we have this balanced risk profile, it does necessitate a change.

現在我們已經有了這種平衡的風險狀況，確實需要做出改變。

And the biggest financial benefit that we see is less strain.

我們看到的最大的經濟效益是減輕壓力。

And I would also add the other significant benefit that is difficult to quantify, but I think is important over time is simplification of our hedging strategy.

我還要補充另一個難以量化的重大好處，但我認為隨著時間的推移，簡化我們的對沖策略很重要。

So if we talk about the benefit from strain management, it will be more pronounced in the fourth quarter and beyond for a couple of reasons.

因此，如果我們談論應變管理的好處，那麼由於幾個原因，它在第四季度及以後會更加明顯。

First of all, we talked about how we started hedging our new Shield product suite, which was introduced in July on a stand-alone basis.

首先，我們討論如何開始對沖我們的新 Shield 產品套件，該產品套件於 7 月獨立推出。

If you look at the new product suite, it was about 30% of our sales in the third quarter, our Shield and VA sales combined.

如果你看一下新產品套件，你會發現它約占我們第三季銷售額的 30%（即 Shield 和 VA 銷售額的總和）。

So it was still a small percentage.

所以這個比例還是很小。

If you look at our expectation for the fourth quarter, as I said in my prepared remarks, the expansion of the hedging of new business on a stand-alone basis, would equate to about 95% of our total Shield and VA sales.

如果你看看我們對第四季的預期，正如我在準備好的演講中所說，新業務對沖的擴張將相當於我們 Shield 和 VA 總銷售額的約 95%。

So we expect a significant benefit from that.

因此，我們預計會從中受益匪淺。

In addition, if you look in 2025 and beyond, we do see an opportunity to potentially enter into a flow reinsurance deal, which would provide further support on the strain side.

此外，如果你展望 2025 年及以後，我們確實看到了可能達成流量再保險交易的機會，這將為壓力方面提供進一步的支持。

And just to put some numbers on this, strain has been the most significant factor in the year to date related to our RBC ratio.

僅用一些數字來說明這一點，壓力是今年迄今為止與我們的紅血球比率相關的最重要因素。

So if you look at our RBC ratio, it's declined by between 45 and 65 points in the year-to-date.

因此，如果您查看我們的 RBC 比率，您會發現今年迄今該比率下降了 45 至 65 個點。

We estimate that shield strain is approximately 35 points of that decline.

我們估計屏蔽應變大約下降了 35 個百分點。

And that shield strain is defined as not just what comes through normalized statutory earnings, but also what goes directly to required capital related to asset charges.

這種保護壓力不僅被定義為透過標準化法定收益所帶來的壓力，還包括直接與資產費用相關的所需資本的壓力。

So it's fair to say that strain has been more than we had assumed.

因此可以公平地說，壓力比我們想像的還要大。

It's related to the complexity of managing these two businesses together and the fact that we have achieved this balanced risk profile.

這與共同管理這兩項業務的複雜性以及我們已經實現了這種平衡的風險狀況有關。

So this is the reason that we need to shift toward hedging new business stand-alone and then formulating a strategy just for this legacy block.

因此，這就是我們需要轉向獨立對沖新業務，然後專門針對這個遺留業務制定策略的原因。

Got it.

知道了。

I guess the follow-up then is absent the reinsurance deal, are you confident that you will be able -- based on what you just said, I think the answer is, yes, but let me just ask, are you confident that your RBC ratio has sort of troughed out here, again, assuming normal markets, and we're not going to have another sort of step back.

我想接下來的行動就是沒有再保險交易，你是否有信心能夠——根據你剛才所說的，我認為答案是，是的，但讓我問一下，你是否有信心你的 RBC假設市場正常，比率已經再次觸底，我們不會再出現某種程度的後退。

And if that's the case, Eric, have you thought about leaning in a little bit more in terms of the buyback, just given kind of where the valuation is?

如果是這樣的話，埃里克，你是否考慮過在回購方面稍微傾斜一點，只是考慮到估值在哪裡？

So let me start on that.

那麼就讓我開始吧。

We don't give projections of what the RBC is going to be.

我們不會對加拿大皇家銀行的未來做出預測。

And I know you understand better than most, that it is a complicated and conservative calculation.

我知道你比大多數人更了解，這是一個複雜而保守的計算。

And there are always elements that are difficult to predict.

而且總是有一些難以預測的因素。

So I think I would go back to, number one, with this pending reinsurance deal, we would see our pro forma third quarter and RBC ratio at the low end of our 400% to 450% range.

因此，我想我會回到第一，透過這項懸而未決的再保險交易，我們將看到我們的預計第三季和 RBC 比率處於 400% 至 450% 範圍的低端。

Secondly, we would anticipate that our strain from new business will be substantially improved from the experience that we've seen in the year-to-date.

其次，我們預計，從今年迄今的經驗來看，新業務帶來的壓力將大幅改善。

And you can see in the year-to-date, it has been a significant negative for the risk-based capital ratio.

您可以看到，今年迄今為止，基於風險的資本比率出現了顯著的負面影響。

I'll jump in for a second.

我先插話一下。

Maybe I'll just go back to your first question and then answer that second one, Suneet.

也許我會回到你的第一個問題，然後回答第二個問題，Suneet。

So Ed said a lot in his part of the answer to Suneet's first question.

因此，Ed 在回答 Suneet 的第一個問題時說了很多。

And I just want to maybe recap a little bit.

我只是想回顧一下。

Look, first of all, we are always open to help, always, okay?

瞧，首先，我們總是樂於提供幫助，總是，好嗎？

So that shouldn't be a surprise to anyone.

所以這對任何人來說都不應該感到驚訝。

I would suggest to you that if you've listened to Ed, my answers too, but some of Ed's answers over the last couple of quarters, this is about strain and it's about the complexity of managing the VA business hedging and the Shield business hedging together.

我建議你，如果你聽過 Ed 的話，也聽過我的回答，但 Ed 在過去幾個季度的一些回答，這與壓力有關，與管理 VA 業務對沖和 Shield 業務對沖的複雜性有關。

So this is not -- as all of you know, I think, if we look into the past, we took actions to derisk the company in a couple of cases, equity derisking and finally, a strategic position with respect to our interest rate hedging.

所以，正如你們所知，我認為，如果我們回顧過去，我們在一些情況下採取了降低公司風險的行動，股權降低風險，最後，我們在利率對沖方面採取了戰略立場。

So this is really focused on where we find ourselves today is the convergence of the focus on managing the hedging of Shield and VA together and the strain that we're seeing from Shield and business.

因此，我們今天真正關注的是管理 Shield 和 VA 的對沖以及我們從 Shield 和業務中看到的壓力的整合。

And I won't repeat that unless somebody asks again, what we're doing there and what we expect both in the fourth quarter and then in the first quarter.

我不會重複這一點，除非有人再次問我們正在做什麼以及我們對第四季和第一季的期望。

With respect to your second question, Suneet, we've been opportunistic in the past.

關於你的第二個問題，Suneet，我們過去一直是機會主義的。

All I can tell you is that for now, we've got a robust capital position at the holding company, and we are still buying back stock.

我只能告訴你，目前我們在控股公司擁有強勁的資本狀況，我們仍在回購股票。

Ryan Krueger, KBW.

瑞安·克魯格，KBW。

Appreciate the commentary on the new business strain.

欣賞對新業務壓力的評論。

I was hoping to focus more, I guess, on the in-force.

我想，我希望更多地關注現有的人員。

Ed, based on the numbers you gave, the in-force still had a negative impact on RBC this year.

Ed，根據您提供的數據，今年的入職仍然對 RBC 產生了負面影響。

I'm trying to, I guess, better understand why that's happening just given the growth in Shield that you've had over time and the runoff of legacy why the in-force would be still producing negative impact of RBC?

我想，我想更好地理解為什麼會發生這種情況，考慮到隨著時間的推移，盾牌的增長以及遺產的流失，為什麼有效的人仍然會對 RBC 產生負面影響？

And I guess to what extent do you think that can change as you simplify the hedging strategy?

我猜想，當您簡化對沖策略時，您認為這種情況會在多大程度上改變？

Yeah.

是的。

Thanks, Ryan.

謝謝，瑞安。

So I would start off by saying that if you look at our norm stat earnings, excluding these strain-related factors that we've talked about in the year to date, it has trailed our expectations.

因此，我首先要說的是，如果你看看我們的正常統計收益，排除我們今年迄今為止討論過的這些與壓力相關的因素，它已經落後於我們的預期。

And there have been a few different things that we've talked about over the course of the year.

這一年裡我們討論了一些不同的事情。

I would say that we talked about basis risk in one quarter.

我想說的是，我們在一個季度內討論了基差風險。

If you actually look at basis risk through the first nine months, it's pretty insignificant.

如果你真正觀察前九個月的基差風險，你會發現這是相當微不足道的。

So that's not really a driver.

所以這並不是真正的司機。

We had talked earlier in the year about some actual to expected in-force impact.

今年早些時候，我們曾討論過一些實際到預期的有效影響。

I believe that was in the first -- I think it was in the first quarter.

我相信那是在第一季——我認為是在第一季。

So this has not been -- I would say, it has not been a great year for norm stat, excluding strain.

所以，我想說，對於正常統計數據（不包括壓力）來說，今年並不是一個偉大的一年。

But again, we don't predict norm stat earnings on an annual basis because it is volatile.

但同樣，我們不會預測每年的正常統計收益，因為它是不穩定的。

And when we give you our expectations about statutory results, we always do it in a multiyear framework because that's the only way that I think it makes sense when you're talking about a number the way that we calculate it.

當我們向您提供對法定結果的期望時，我們總是在多年框架內進行，因為當您談論我們計算的數字時，我認為這是唯一有意義的方式。

It's important to point out that this norm stat earnings calculation, and you can look at the definition, is a conservative calculation relative to when we all think about things like adjusted earnings.

重要的是要指出，這種標準統計收益計算（您可以查看定義）相對於我們所有人考慮調整收益等問題時的保守計算。

So that's another point I think I'd add.

這是我想補充的另一點。

Got it.

知道了。

And then on reinsurance, can you give any more color?

然後在再保險方面，您能提供更多的資訊嗎？

It sounds like you're still looking at other in-force opportunities beyond the ones that you expect to complete before the year-end.

聽起來除了您預計在年底前完成的工作之外，您仍在尋找其他有效的工作機會。

Can you give any more color on what sort of things you're looking at beyond that?

除此之外，您還能進一步說明您正在關注哪些事物嗎？

Well, we've got a number of possibilities, Ryan.

好吧，我們有很多可能性，瑞安。

I don't want to really go too far into this.

我不想在這個問題上走得太遠。

In that, we've got a lot of negotiations going on, et cetera, et cetera.

在這方面，我們正在進行很多談判，等等。

But yes, in-force opportunities.

但是，是的，有效的機會。

And then as Ed has already said, flow reinsurance opportunities as well.

然後，正如艾德已經說過的那樣，再保險機會也會流動。

So we're looking at a number of opportunities.

因此，我們正在尋找許多機會。

And I highlighted in my comments, and Ed probably did as well in his comments with respect to a particular reinsurance agreement that we think will close in the fourth quarter.

我在評論中強調了這一點，艾德在評論中也可能就我們認為將在第四季度完成的特定再保險協議做出了同樣的評論。

John Barnidge, Piper Sandler.

約翰·巴尼奇，派珀·桑德勒。

Is there an opportunity to optimize the investment portfolio at all?

是否有機會優化投資組合？

I know you're looking at the liabilities, but is an IMA possible?

我知道您正在考慮負債，但是 IMA 可能嗎？

It's certainly possible.

這當然是可能的。

And when I think about my comments in the second quarter, John, we're looking at any number of possibilities.

約翰，當我思考我在第二季的評論時，我們正在考慮多種可能性。

So we would never exclude the investment portfolio from that list.

因此，我們永遠不會將投資組合排除在該清單之外。

So it's a good question.

所以這是一個好問題。

Okay.

好的。

And within that framework of not excluding anything, are you -- now that you talked about kind of the in-force block being considered a closed block, how do you think of the opportunity to do enhanced annuitizations or buyouts as well?

在不排除任何東西的框架內，既然您談到了有效區塊被視為封閉區塊，您如何看待增強年金或買斷的機會？

Sure, John.

當然，約翰。

Generally, we have stayed away from buyouts, and there's two reasons for that.

一般來說，我們不會進行收購，原因有兩個。

Many distributors do not love it, right?

很多經銷商不喜歡它，對嗎？

These are products that they sold to their clients for financial needs.

這些是他們出於財務需求而出售給客戶的產品。

And we have stood by those for decades, frankly.

坦白說，我們幾十年來一直堅持這些原則。

And secondly -- John, is that your microphone or is your microphone still open?

其次，約翰，這是你的麥克風還是你的麥克風仍然打開？

Okay.

好的。

There it is.

就在那裡。

Somebody maybe had theirs on.

也許有人穿著他們的。

And secondly, the take rate is really -- it doesn't really make a difference in the end.

其次，採用率實際上——最終並沒有真正產生影響。

So it's an awful lot of work.

所以這是一項非常艱鉅的工作。

It's very disruptive, and those are the two reasons why we haven't done them in the past.

這是非常具破壞性的，這就是我們過去沒有這樣做的兩個原因。

I'll say to you that, look, we're looking at any number of opportunities.

我會對你說，看，我們正在尋找很多機會。

But because of the reasons that I laid out there, that's probably not something that we would actually do.

但由於我在那裡列出的原因，這可能不是我們實際上會做的事情。

Okay.

好的。

And if I could get one more in.

如果我能再多帶一個進去就好了。

How do you view the TAM or total addressable market for the liabilities?

您如何看待負債的 TAM 或總潛在市場？

Is it the entire closed block essentially at this point?

此時它本質上是整個封閉塊嗎？

I mean, I think I got that.

我的意思是，我想我明白了。

Like what are you looking at as possible for any kind of deal?

對於任何類型的交易，您都希望盡可能做到什麼？

Is that what you mean, John?

約翰，你是這個意思嗎？

Yes, that's correct.

是的，這是正確的。

Yes, that's what I thought.

是的，我就是這麼想的。

Okay.

好的。

Again, we're looking at everything.

再說一次，我們正在審視一切。

I don't think there's any reason to exclude anything from the 100,000-foot point of view.

我認為沒有任何理由從 100,000 英尺的角度排除任何東西。

But then when you get into the details, we've got to figure out the art of the possible.

但當你深入細節時，我們必須弄清楚可能性的藝術。

We've got to prioritize because we can't have 30 things going on here.

我們必須分清輕重緩急，因為我們無法同時處理 30 件事情。

And so I think what I just said probably gives you your answer, right?

所以我想我剛才所說的可能已經給了你答案，對嗎？

We're looking at everything.

我們正在關註一切。

We're seeing the degree of difficulty in certain transactions or potential transactions and then we're prioritizing from there.

我們看到某些交易或潛在交易的難度程度，然後我們從中確定優先順序。

It's a great question, John.

這是一個很好的問題，約翰。

Alex Scott, Barclays.

亞歷克斯·斯科特，巴克萊銀行。

I wanted to see if you could provide some color on just norm stat earnings over a longer period of time.

我想看看你是否可以提供一些關於較長一段時間內的正常統計收入的資訊。

I get that you can't estimate it near term.

我知道你無法估計短期內的情況。

And I think there is still potentially a hockey stick down the line and it gets better.

我認為曲棍球棒仍然有可能出現，而且情況會變得更好。

So I'm just trying to understand like you guys, I think, for years were kind of pointing to a handful of years out in the future that, that would happen.

所以我只是想像你們一樣理解，我想，多年來，我們一直在指出未來幾年，這種情況將會發生。

I mean is there still an inflection to consider here?

我的意思是這裡還有需要考慮的變化嗎？

I mean, can you help us think at all around what that could look like and how much it could change from a reinsurance deal?

我的意思是，您能否幫助我們思考一下再保險交易可能會是什麼樣子以及它會帶來多大的改變？

Alex, it's Ed. So we do plan to provide the long-term statutory free cash flow disclosures next year.

亞歷克斯，這是艾德。因此，我們確實計劃明年提供長期法定自由現金流量揭露。

So I don't -- as I've said in the past, there's a lot of work that goes into it.

所以我不——正如我過去所說的，這需要做很多工作。

And so I don't want to say too much, but I will say that what we have seen historically, I would expect that we would still see.

所以我不想說太多，但我會說，我們在歷史上所看到的，我希望我們仍然會看到。

But it's been pushed out from where it was because we haven't seen the cash flows this year that we would have thought five years ago.

但它已被從原來的位置推出，因為我們今年沒有看到五年前所想像的現金流。

So I would expect to see a ramp-up because the old block of business, the legacy VA block does run off eventually.

因此，我預計會看到成長，因為舊的業務區塊、遺留的 VA 區塊最終會耗盡。

And so you will see capital benefits as you see the release of the CTEs associated with that legacy VA block.

因此，當您看到與舊 VA 區塊相關的 CTE 的發佈時，您將看到資本利得。

I think I articulated the basis for our strategy on some of these initiatives on a previous call.

我想我在先前的電話會議上闡述了我們關於其中一些舉措的策略基礎。

But I would say that if you look at the things we're doing today to benefit capital, there can be some give-up of free cash flow in those outer years.

但我想說，如果你看看我們今天為資本利益所做的事情，你會發現在過去的幾年裡可能會放棄一些自由現金流。

And we think that, that makes sense because the cash flows in the outer years look very strong.

我們認為這是有道理的，因為外部年份的現金流看起來非常強勁。

And so we sort of have taken a similar approach here on the time line of cash flows, like we have on the actions we've taken to narrow the range of outcomes under market scenarios.

因此，我們在現金流的時間線上採取了類似的方法，就像我們在市場情境下為縮小結果範圍而採取的行動一樣。

Where we're trying to flatten the line a little bit on the cash flows.

我們試圖使現金流量的線變得平坦一些。

So give up some of the capital generation in those out years to benefit capital generation in the near term.

因此，放棄那些年的一些資本生成，以有利於近期的資本生成。

Got it.

知道了。

Okay.

好的。

That's helpful.

這很有幫助。

The other thing I wanted to check on was just the product structure of Shield and whether it's being changed at all?

我想檢查的另一件事是 Shield 的產品結構以及是否有任何改變？

I mean I listen to what you're saying and when I hear Shield legacy block or a shield closed block, it makes me a little nervous that maybe there wasn't something quite right about that product beyond just combining the hedging program.

我的意思是，我聽了你所說的，當我聽到盾牌遺留塊或盾牌封閉塊時，這讓我有點緊張，因為除了結合對沖程序之外，也許該產品沒有什麼完全正確的地方。

I mean can you just help demystify is it simply like what you're talking about is just around the hedging or are there actually things about the product that needed to change?

我的意思是，你能幫我們揭開神秘面紗嗎？

Yes, Alex, it's Ed. It's the former.

是的，亞歷克斯，我是艾德。是前者。

It's around the hedging.

這是圍繞著對沖的。

It's not around any statement on the profitability or the desirability of the old block of Shield.

它不涉及任何關於舊盾牌區塊的盈利能力或可取性的聲明。

Although I'll just jump -- it's Eric, Alex.

雖然我會跳下去──這是艾瑞克，亞歷克斯。

I'll just jump in and say, look, that doesn't mean that we're not going to update the product with new features or new ideas, new ways that the products can be used.

我會插話說，看，這並不意味著我們不會用新功能或新想法以及產品使用的新方式來更新產品。

But obviously, I agree with everything Ed just said.

但顯然，我同意艾德剛才所說的一切。

(Operator Instructions) Nick Annitto, Wells Fargo.

（操作員說明）Nick Annitto，富國銀行。

A lot of my questions have been answered here, but I was just wondering if you could maybe give a little information on like if this reinsurance deal in the fourth quarter is going to be onshore or offshore, just to get an idea from like a timing perspective because I think we've seen a lot of these things kind of get pushed out and not really hit deadlines.

我的很多問題都在這裡得到了解答，但我只是想知道您是否可以提供一些信息，比如第四季度的再保險交易是在岸還是離岸，只是為了從時間上得到一個想法因為我認為我們已經看到很多這樣的事情被推遲並且沒有真正按時完成。

So any color there would be helpful.

所以任何顏色都會有幫助。

Nick, it's Eric.

尼克，這是艾瑞克。

Look, I don't want to get into any of that stuff.

聽著，我不想涉足這些事。

I'll just tell you that we're confident that it will close in the fourth quarter.

我只是告訴你，我們有信心它會在第四季結束。

I get why you're asking the question.

我明白你為什麼要問這個問題。

So hopefully, that answer works for you.

希望這個答案對您有用。

Yes.

是的。

That makes sense.

這是有道理的。

Then I guess going forward, like I appreciate the color on the new hedging program for the stand-alone Shield.

然後我想繼續前進，就像我欣賞獨立盾牌的新對沖計劃的顏色一樣。

But should we expect Shield sales to just continue at this strong pace?

但我們是否應該期望 Shield 的銷售繼續保持如此強勁的勢頭？

Or should we see a step down in the near term at all?

或者我們應該在短期內看到降級？

Or how are you guys thinking about that?

或者說你們對此有何看法？

So just -- I want to just say something when you say new hedging program, just for clarification for everyone on the call.

所以，當你談到新的對沖計劃時，我只想說一些話，只是為了向參加電話會議的每個人澄清。

The one basic thing that we have had in place from the beginning, and it continues, is that we have substantial protection on this balance sheet to protect ourselves against adverse market scenarios.

我們從一開始就採取的一項基本措施是，我們在資產負債表上提供了大量保護，以保護自己免受不利市場狀況的影響。

So while we are making changes, and we are looking at new business separate from this legacy block, I just want to make it clear that there is still a lot of protection, and we are still targeting a statutory max first-loss framework and that's just a key point to make so that we don't misinterpret what new hedging means.

因此，雖然我們正在做出改變，並且我們正在考慮與這個遺留區塊分開的新業務，但我只是想明確表示，仍然有很多保護，而且我們仍然以法定最大首次損失框架為目標，這就是這只是一個關鍵點，這樣我們就不會誤解新對沖的意思。

Let me pass it to Eric.

讓我把它轉給埃里克。

Nick, so maybe I'll answer this in a couple of ways.

尼克，也許我會用幾種方式來回答這個問題。

Number one, if you think about everything we've talked about here, obviously, we want to make sure that we have appropriate capital in the operating company.

第一，如果你考慮我們在這裡討論的一切，顯然，我們希望確保我們在營運公司擁有適當的資本。

As I said in my comments, we have, since the beginning, run with a large buffer up at the holding company, and we intend to continue to do that.

正如我在評論中所說，我們從一開始就在控股公司擁有大量緩衝，並且我們打算繼續這樣做。

And so there's 2 things that I think about.

所以我想到了兩件事。

Number one, making sure that our capital levels are appropriate, and number two, making sure that we can write new business.

第一，確保我們的資本水準合適；第二，確保我們能夠開展新業務。

So I think, buried in your question there a little bit is, do you intend to slow down sales?

所以我認為，在你的問題中隱藏著一點是，你打算放慢銷售嗎？

No, we do not.

不，我們不這樣做。

We're having a -- we had a very good October.

我們度過了一個非常美好的十月。

And given our 2 goals of having appropriate capital levels and being able to write new business, all these initiatives are designed to make sure we can do both of those things.

鑑於我們的兩個目標是擁有適當的資本水準和能夠開展新業務，所有這些舉措都是為了確保我們能夠做到這兩件事。

So I think that probably answered your overall question, Nick.

所以我認為這可能回答了你的總體問題，尼克。

Wes Carmichael, Autonomous Research.

韋斯·卡邁克爾，自主研究。

I just wanted to follow up around separating the hedging strategy for new business and in-force, and can you maybe just talk about the changes for the legacy block that you're contemplating?

我只是想跟進將新業務和有效業務的對沖策略分開，您能否談談您正在考慮的遺留業務的變化？

It sounded like it still maybe somewhat in flux, but I'm just wondering from a big picture conceptual standpoint, what you think makes sense there.

聽起來它可能仍然在變化，但我只是想知道從大局概念的角度來看，你認為那裡有意義。

Wes, it's early for us to provide you any details.

韋斯，我們現在向您提供任何詳細資訊還為時過早。

As I said in my prepared remarks, we are developing a separate hedging strategy, and we do expect this work to continue into '25.

正如我在準備好的演講中所說，我們正在製定一項單獨的對沖策略，我們確實預計這項工作將持續到 25 年。

And I know this came up yesterday on some of the calls.

我知道昨天的一些電話中提到了這一點。

If you look at the footnote on norm stat earnings when we show that the TAC was up by $600 million approximately and CTE98 was up by $1 billion.

如果你看一下標準統計收益的腳註，我們會發現 TAC 增加了大約 6 億美元，CTE98 增加了 10 億美元。

The related impact from that is just that as we are in this period of time developing this strategy, we can only reflect the hedges on our balance sheet for that block.

與之相關的影響是，由於我們在這段時間內制定該策略，我們只能在該區塊的資產負債表上反映對沖。

And that was the reason for the statutory change.

這就是法定變更的原因。

Now the net impact to RBC was insignificant.

現在對加拿大皇家銀行的淨影響微不足道。

I would anticipate that given that this block is like a closed block and so is running off over time that there will be some stability in the profile of the hedges that you have related to that runoff expected over time.

我預計，鑑於該區塊就像一個封閉的區塊，因此隨著時間的推移而流失，與隨著時間的推移預期的徑流相關的樹籬輪廓將會有一定的穩定性。

But other than that, I don't know that there is much we could say at this point.

但除此之外，我不知道此時我們還能說些什麼。

Got it.

知道了。

And I guess just since it's still in flux, I know you said 2025 for the free cash flow projections, but do you expect that to kind of push the timing out a little bit?

我想，正因為它仍在不斷變化，我知道您說的是 2025 年的自由現金流預測，但您是否認為這會稍微推遲一點時間？

I would say that we would want to have our strategy buttoned up before we would want to provide the statutory free cash flow projections.

我想說的是，在提供法定自由現金流預測之前，我們希望先確定我們的策略。

Yes, makes sense.

是的，有道理。

And then I guess if I can ask one more, just on the runoff segment, I think if we look at the core ex notables number, that was maybe a little bit below your run rate.

然後我想我是否可以再問一個問題，就決選部分而言，我想如果我們看一下核心前知名人士的數字，那可能比您的運行率略低一點。

Is there anything going on in that segment this quarter that we should think about in terms of run rate earnings power?

本季度該領域是否發生了我們應該從運行率盈利能力方面考慮的事情？

Yes, I don't think so.

是的，我不這麼認為。

I think if you look at our underwriting margin in the quarter, it was consistent with what we would assume to be a normal margin, but we did have worse than our normal assumption for runoff and that was offset by better than normal in life.

我認為，如果你看看我們本季的承保利潤率，它與我們假設的正常利潤率是一致的，但我們的徑流確實比我們正常的假設更糟糕，並且被生活中比正常情況更好的情況所抵消。

I think if you look at mortality in the year-to-date, it's generally been good.

我認為，如果你看看今年迄今為止的死亡率，你會發現整體情況不錯。

And this was another quarter that's consistent with what we would expect.

這是又一個符合我們預期的季度。

It's just by segment, there was some volatility.

僅按細分市場來看，存在一些波動。

We have a follow-up question from the line of Alex Scott with Barclays.

我們有來自巴克萊銀行的 Alex Scott 的後續問題。

I think it was mentioned during the remarks that there was a June reinsurer switch that occurred, I think it was like fixed annuities that improved sales.

我認為在演講中提到了六月發生了再保險公司轉換，我認為這就像固定年金改善了銷售。

I just wanted to see if you could unpack that a bit for us.

我只是想看看你是否可以為我們解壓縮。

Yes.

是的。

Thanks, Alex.

謝謝，亞歷克斯。

This is David.

這是大衛。

So we did make a -- we did change reinsurers earlier this year, that new reinsurance agreement was effective in June and I think what you saw is FRA sales rebound a bit in the third quarter as a result of that, combined with a strong overall market demand.

因此，我們確實在今年稍早更換了再保險公司，新的再保險協議於 6 月生效，我認為您看到的是，法蘭克福機場銷售因此在第三季度略有反彈，加上整體強勁的表現市場需求。

Okay.

好的。

And then final question for me.

然後是我的最後一個問題。

I just wanted to ask around the hedging program.

我只是想問一下對沖計劃。

I think at times, you all have kind of had some tactical posturing like one way or the other on rates or I think more on the rate side than equities with your hedging.

我認為有時，你們都在利率方面採取了某種戰術姿態，或者我認為更多的是利率方面而不是股票方面的對沖。

Just recognizing that rates have kind of spiked up here, particularly after the election, could you help us think through like whether you had any kind of tactical posturing on this quarter?

只是認識到這裡的利率有所上升，特別是在選舉之後，您能否幫助我們思考一下您在本季度是否有任何戰術姿態？

And -- just so that we have a good idea of how to think through marking for rates and how that could impact you?

而且 - 只是為了讓我們更好地了解如何考慮費率標記以及這會對您產生什麼影響？

Alex, it's Ed. So I wouldn't say we have any tactical positioning on rates.

亞歷克斯，這是艾德。所以我不會說我們對利率有任何戰術定位。

We had -- we definitely had tactical positioning on rates prior to 2022, and then we obviously did a lot of long-dated hedging to protect ourselves against low rates when the 10-year was between 3.5% and 4%.

我們在 2022 年之前確實對利率進行了戰術定位，然後我們顯然做了很多長期對沖，以保護自己免受 10 年期利率在 3.5% 至 4% 之間的低利率的影響。

What you saw, when we mentioned rates and the impact in the third quarter, we were really referring to the fact that while long rates, I think, dropped by, I don't know, 50, 60 basis points, don't hold me to that, short rates were down more like 100.

你所看到的，當我們提到利率和第三季的影響時，我們實際上指的是這樣一個事實：我認為，雖然長期利率下降了，我不知道，50、60 個基點，但不保持不變。

And it was that steepening of the yield curve that created some modest loss for us in the quarter.

正是殖利率曲線的陡峭為我們在本季度帶來了一些小幅損失。

And I would now like to hand the conference back to Dana Amante for closing remarks.

現在我想將會議交還給 Dana Amante 致閉幕詞。

If everybody could stay on just a second, I'm sure hanging up now.

如果大家能等一下，我肯定現在就掛斷電話了。

Believe it or not, it looks like we just were informed that all the necessary approvals were received on this reinsurance transaction that we talked about.

不管你相信與否，我們似乎剛剛獲悉我們談論的這項再保險交易已獲得所有必要的批准。

So we do expect to execute as of 9/30.

因此，我們預計將於 9 月 30 日執行。

And you saw the -- or you heard all the comments that Ed and I made during this conference call.

你們看到了——或者你們聽到了艾德和我在這次電話會議上發表的所有評論。

So with that, I will turn it over to Dana.

因此，我會將其交給 Dana。

All right.

好的。

Well, thank you.

嗯，謝謝。

Thank you all for joining today, and have a great day.

感謝大家今天加入，祝您有美好的一天。

This concludes today's conference call.

今天的電話會議到此結束。

Thank you for participating.

感謝您的參與。

You may now disconnect.

您現在可以斷開連線。