Corebridge Financial Inc (CRBG) 2024 Q2 法說會逐字稿

Good morning. Thank you for attending today's Corebridge Financial's second quarter 2024 earnings call. My name is Jennifer, and I'll be your moderator today. All lines have been muted during the presentation portion of the call, with an opportunity for questions-and-answers at the end. (Operator Instructions) I would now like to pass the conference over to Isil Muderrisoglu with Corebridge Financial. Isil, please proceed.

早安.感謝您參加今天的 Corebridge Financial 2024 年第二季財報電話會議。我叫詹妮弗，今天我將擔任你們的主持人。在通話的演示部分，所有線路均已靜音，最後有機會進行問答。（操作員指示）我現在想將會議轉交給 Corebridge Financial 的 Isil Muderrisoglu。伊希爾，請繼續。

Good morning, everyone, and welcome to the Corebridge Financial earnings update for the Second Quarter of 2024. Joining me on the call are Kevin Hogan, President and Chief Executive Officer; and Elias Habayeb, Chief Financial Officer. We will begin with prepared remarks by Kevin and Elias, and then we will take your questions.

大家早安，歡迎收看 Corebridge Financial 2024 年第二季財報更新。與我一起參加電話會議的還有總裁兼執行長 Kevin Hogan；埃利亞斯‧哈巴耶布 (Elias Habayeb)，財務長。我們將從凱文和埃利亞斯準備好的演講開始，然後我們將回答你們的問題。

Today's comments may contain forward-looking statements, which are subject to risks and uncertainties. These statements are not guarantees of future performance or events and are based upon management's current expectations and assumptions. Corebridge's filings with the SEC provide details on important factors that may cause actual results or events to differ materially from those expressed or implied by such forward-looking statements.

今天的評論可能包含前瞻性陳述，這些陳述存在風險和不確定性。這些陳述不是對未來績效或事件的保證，而是基於管理層目前的預期和假設。Corebridge 向 SEC 提交的文件提供了可能導致實際結果或事件與此類前瞻性陳述明示或暗示的結果或事件存在重大差異的重要因素的詳細資訊。

Except as required by the applicable securities laws, Corebridge is under no obligation to update any forward-looking statements if circumstances or management's estimates or opinions should change. And you are cautioned to not place undue reliance on any forward-looking statements.

除適用證券法要求外，如果情況或管理層的估計或意見發生變化，Corebridge 沒有義務更新任何前瞻性聲明。請注意不要過度依賴任何前瞻性陳述。

Additionally, today's remarks may refer to non-GAAP financial measures. The reconciliation of such measures to the most comparable GAAP figures is included in our earnings release, financial supplement and earnings presentation, all of which are available on our website at investor.corebridgefinancial.com.

此外，今天的言論可能涉及非公認會計準則財務指標。這些指標與最具可比性的 GAAP 數據的調節包含在我們的收益發布、財務補充和收益演示中，所有這些都可以在我們的網站 Investor.corebridgefinancial.com 上找到。

With that, I would like to turn the call over to Kevin and Elias for their prepared remarks. Kevin?

至此，我想將電話轉給凱文和埃利亞斯，讓他們聽聽他們準備好的發言。凱文？

Thank you, Isil, and good morning, everyone. I am pleased to report strong operating results for the second quarter, once again demonstrating the Corebridge Financial value proposition. Our diversified business model, strong balance sheet and disciplined execution continued to create shareholder value as demonstrated by the growth in our earnings and cash generation.

謝謝你，伊西爾，大家早安。我很高興地報告第二季強勁的營運業績，再次證明了 Corebridge Financial 的價值主張。我們多元化的業務模式、強勁的資產負債表和嚴格的執行力繼續創造股東價值，我們的獲利和現金產生的成長證明了這一點。

Through the quarter, our four market-leading businesses capitalized on attractive market conditions and strong customer demand to drive growth and create value.

在本季度，我們的四家市場領先業務利用有吸引力的市場條件和強勁的客戶需求來推動成長並創造價值。

Turning to slide 3. Corebridge reported operating earnings per share of $1.13, a 9% increase year-over-year. Our run-rate operating EPS, which adjusts alternative investment returns to our long-term expectations grew 12% over the same period. Our collective businesses generated $11.7 billion of premiums and deposits a 17% increase year-over-year. This is the highest in over a decade for Corebridge, reflecting strong customer demand and the benefit of our broad suite of products and services. Corebridge also delivered 5% growth in aggregate core sources of income.

轉到投影片 3。Corebridge 報告每股營業利潤為 1.13 美元，年增 9%。我們的運行率營運每股收益（根據我們的長期預期調整另類投資回報）在同一時期增長了 12%。我們的集體業務產生了 117 億美元的保費和存款，年增 17%。這是 Corebridge 十多年來的最高水平，反映了強勁的客戶需求以及我們廣泛的產品和服務套件的優勢。Corebridge 的核心收入來源總額也實現了 5% 的成長。

All three sources, base spread income, fee income and underwriting margin, each increased. Reflecting our ability to deploy resources where customer demand is the greatest and risk-adjusted returns are the most attractive. Our strong balance sheet gives us the flexibility to both invest in our businesses and return capital to shareholders. We proactively manage both sides of the balance sheet to maintain a sound capital and liquidity profile.

基本利差收入、費用收入和核保保證金這三個來源均增加。反映我們在客戶需求最大、風險調整後回報最具吸引力的地方部署資源的能力。我們強大的資產負債表使我們能夠靈活地投資於我們的業務並向股東返還資本。我們積極管理資產負債表的兩側，以保持良好的資本和流動性狀況。

We are committed to returning capital to shareholders. And in the quarter, we returned $575 million through a combination of dividends and share repurchases. Since the IPO, we have consistently demonstrated our ability to support robust sales while delivering attractive returns to our shareholders and maintaining balance sheet metrics in line with our targets. We are also continuing to improve our operating leverage.

我們致力於向股東返還資本。在本季度，我們透過股利和股票回購的方式返還了 5.75 億美元。自首次公開募股以來，我們不斷證明我們有能力支持強勁的銷售，同時為股東提供有吸引力的回報，並保持資產負債表指標符合我們的目標。我們還在繼續提高我們的營運槓桿。

General operating expenses are lower by 6% year-over-year after adjusting for the international life divestitures. This reduction, which is driven by the benefits of Corebridge Forward, our expense and modernization program has been achieved during a time of record growth for the company.

經國際人壽資產剝離調整後，一般營運費用較去年同期下降 6%。這一減少是由 Corebridge Forward、我們的費用和現代化計劃的好處推動的，是在公司創紀錄增長時期實現的。

Expense management will continue to be a contributor to financial performance as we developed important capabilities through the execution of Corebridge Forward. We expect to leverage these skills beyond this program and have shifted to a focus on continuous improvement to further enhance operating efficiency.

隨著我們透過執行 Corebridge Forward 開發了重要的能力，費用管理將繼續為財務表現做出貢獻。我們希望在該計劃之外利用這些技能，並將重點轉向持續改進，以進一步提高營運效率。

Additionally, I am pleased to share that we began ceding premiums to our affiliated Bermuda reinsurer in July having received all the required approvals. Corebridge is firing on all cylinders and executing on the plans necessary to deliver on the commitments that we made at the time of the IPO. This includes generating a reported ROAE of 12% for the first half of 2024, achieving the lower end of our target.

此外，我很高興地告訴大家，在獲得所有必要的批准後，我們會在 7 月開始向附屬的百慕達再保險公司轉讓保費。Corebridge 正在全力以赴地執行必要的計劃，以兌現我們在 IPO 時所做的承諾。這包括在 2024 年上半年實現 12% 的 ROAE，實現我們目標的下限。

Moving to slide 4. Corebridge is dedicated to helping individuals take action to plan, save for and achieve secure financial futures. Through this purpose, our four market-leading businesses drive long-term growth and value creation. Our addressable markets are significant and each benefit from strong tailwinds and given a large and growing retirement aged U.S. population, the life insurance protection gap and growing need for retirement solutions.

轉到投影片 4。Corebridge 致力於協助個人採取行動來規劃、儲蓄和實現安全的財務未來。透過這一目標，我們的四項市場領先業務推動了長期成長和價值創造。我們的潛在市場規模龐大，考慮到美國退休人口數量龐大且不斷增長、人壽保險保障缺口以及對退休解決方案不斷增長的需求，每個市場都受益於強勁的推動力。

In the second quarter, Individual Retirement enjoyed strong demand for its products in particular, fixed and fixed index annuities. We have long been a leading participant in these markets, offering a broad range of income and accumulation-oriented solutions through our extensive distribution platform. We continued to enjoy strong growth in the bank channel but also saw significant growth in our broker-dealer channel, reflecting the success of our strategy to support the unique needs of each major distribution partner.

第二季度，個人退休產品的需求強勁，尤其是固定年金和固定指數年金。長期以來，我們一直是這些市場的領先參與者，透過我們廣泛的分銷平台提供廣泛的以收入和累積為導向的解決方案。我們在銀行通路持續保持強勁成長，但我們的經紀自營商通路也取得了顯著成長，這反映出我們支持每個主要分銷合作夥伴獨特需求的策略的成功。

Individual Retirement produced quarterly sales of $6.8 billion, up 68% year-over-year, led by our fixed annuity products. Fixed annuity sales were $4.1 billion, significantly higher than any quarter in recent history. Concurrently, we saw the fixed annuity surrender rate declined to the lowest level in five quarters. The combination of these two trends contributed to general account net flows in the quarter of $3 billion. Year-to-date, Individual Retirement general account net flows of $3.6 billion have already exceeded all of the Individual Retirement general account net flows produced in 2023.

在我們的固定年金產品的帶動下，個人退休業務季度銷售額達到 68 億美元，年增 68%。固定年金銷售額為 41 億美元，顯著高於近期歷史上的任何季度。同時，固定年金退保率下降至五個季度以來的最低水準。這兩種趨勢的結合使本季的一般帳戶淨流量達到 30 億美元。今年迄今為止，個人退休一般帳戶淨流量為 36 億美元，已經超過 2023 年個人退休一般帳戶淨流量的全部。

Touching briefly on our other businesses. In Group Retirement, we continue to expand our range of offerings to serve the growing demand for in-plan and out-of-plan solutions. We are optimistic about the potential for our out-of-plan business, which reflects the increasing need for advice in response to the aging of the population at a time of unprecedented generational wealth transfer. Capitalizing on this opportunity, we once again increased out-of-plan sales which now comprise 37% of total premiums and deposits and expanded advisory and brokerage assets under administration by 12%.

簡要介紹一下我們的其他業務。在團體退休方面，我們繼續擴大產品範圍，以滿足對計劃內和計劃外解決方案不斷增長的需求。我們對計劃外業務的潛力持樂觀態度，這反映出在前所未有的代際財富轉移之際，為應對人口老化而需要的建議日益增加。利用這一機會，我們再次增加了計劃外銷售，目前佔保費和存款總額的 37%，並將管理下的諮詢和經紀資產擴大了 12%。

In Life Insurance, recently, we have been outpacing the market. And in the second quarter, we delivered sales growth of 13% over the prior year. This reflects, in part, the success of our automated and accelerated underwriting practices. Also, last month, we announced the name change of our long-standing direct-to-consumer Life Insurance business to Corebridge Direct. We are proud to have put the Corebridge name on this business.

在人壽保險領域，最近我們一直領先於市場。第二季度，我們的銷售額比去年同期成長了 13%。這在一定程度上反映了我們自動化和加速承保實務的成功。此外，上個月，我們宣布將長期直接面向消費者的人壽保險業務更名為 Corebridge Direct。我們很自豪能夠在這項業務上使用 Corebridge 的名稱。

In Institutional Markets, starting with GICs, conditions were favorable in the quarter, and so we issued $1.8 billion, demonstrating our strategy of being a more regular issuer following the IPO. Additionally, we continue to work through an attractive pipeline of potential pension risk transfer opportunities.

在機構市場方面，從擔保投資證開始，本季度的情況良好，因此我們發行了 18 億美元，這表明了我們在 IPO 後成為更常規發行人的策略。此外，我們繼續努力尋找一系列有吸引力的潛在退休金風險轉移機會。

Moving to slide 5. Across Corebridge, execution continues to be a priority, and I am happy to announce that we received approvals from our regulators during the second quarter to begin to see new business to our Bermuda entity. Bermuda provides access to an attractive regulatory capital framework that is aligned with how we approach balance sheet management. Utilizing our Bermuda-based entity presents opportunities for us to leverage our new business origination capabilities more effectively and deploy capital more efficiently, both creating value for shareholders. In July, we initiated our first flow reinsurance facility focusing on fixed and fixed index annuities written through our Individual Retirement business. Our Bermuda-based entity is one means of optimizing capital efficiency, and we continue to explore others.

轉到投影片 5。在 Corebridge 中，執行仍然是優先事項，我很高興地宣布，我們在第二季度獲得了監管機構的批准，開始為我們的百慕達實體帶來新業務。百慕達提供了一個有吸引力的監管資本框架，與我們的資產負債表管理方式一致。利用我們位於百慕達的實體為我們提供了更有效地利用我們的新業務發起能力和更有效地部署資本的機會，從而為股東創造價值。7 月，我們啟動了第一個流動再保險設施，專注於透過我們的個人退休業務承保的固定和固定指數年金。我們位於百慕達的實體是優化資本效率的一種手段，我們將繼續探索其他手段。

Corebridge has achieved much over the first half of 2024, and we believe our strategy continues to drive an attractive return profile. Our diversified business model, strong balance sheet and disciplined execution enable our insurance companies to generate significant cash flows. Year-to-date, our insurance subsidiaries distributed $1.1 billion to the holding company and Corebridge has returned $961 million to shareholders. This has resulted in a payout ratio of 70%, and we remain firmly on track to meet our full year target.

Corebridge 在 2024 年上半年取得了巨大成就，我們相信我們的策略將繼續帶來有吸引力的回報。我們多元化的業務模式、強大的資產負債表和嚴格的執行力使我們的保險公司能夠產生大量現金流。今年迄今為止，我們的保險子公司向控股公司分配了 11 億美元，Corebridge 已向股東返還 9.61 億美元。這使得派息率為 70%，我們仍堅定地朝著實現全年目標的方向前進。

Our financial position is strong and our results reflect the earnings power of our franchise. With positive momentum across our businesses, we are well positioned to further grow earnings and cash flows while maintaining our financial flexibility. We will continue to execute on our strategy and optimize our capital to strengthen our franchise and generate long-term growth and shareholder value.

我們的財務狀況強勁，我們的業績反映了我們特許經營的獲利能力。憑藉我們業務的積極勢頭，我們有能力進一步增加收入和現金流，同時保持財務靈活性。我們將繼續執行我們的策略並優化我們的資本，以加強我們的特許經營權並創造長期成長和股東價值。

We are pleased with the results we have achieved to date and remain excited about the opportunities for the future. We look forward to welcoming Nippon Life as a shareholder following regulatory approval.

我們對迄今為止的成果感到滿意，並對未來的機會感到興奮。我們期待在監管部門批准後歡迎日本生命成為股東。

To our colleagues at Corebridge, thank you for your commitment and professionalism. I am so proud of what you have accomplished and your ability to consistently execute.

對於 Corebridge 的同事，感謝你們的承諾和專業。我為你所取得的成就和持續執行的能力感到自豪。

I will now Thank you, Kevin. I will begin my remarks this morning on slide 6, where I will provide an overview of our key financial results for the quarter. Corebridge reported second quarter adjusted pretax operating income of $859 million. Our operating earnings per share of $1.13 grew 9% year-over-year on a per share basis. We delivered run rate to operating EPS of $1.21, a 12% improvement on a year-over-year basis. This includes an $0.08 increase from aligning alternative investment returns to our long-term expectations.

我現在要謝謝你，凱文。今天早上我將從第 6 張投影片開始我的講話，我將概述本季的主要財務表現。Corebridge 報告第二季調整後稅前營業收入為 8.59 億美元。我們的每股營業利潤為 1.13 美元，年增 9%。我們的營運 EPS 營運率為 1.21 美元，年增 12%。其中包括將另類投資回報與我們的長期預期保持一致而增加的 0.08 美元。

Year-to-date run rate ROE of 13% has grown over 200 basis points since our initial public offering and is within our target range of 12% to 14%. The strength of our financial results for the quarter was driven by growing diverse sources of income, asset optimization, expense efficiencies and capital management.

自我們首次公開募股以來，年初至今的淨資產收益率為 13%，已成長超過 200 個基點，處於我們 12% 至 14% 的目標範圍內。我們本季財務表現的強勁表現是由收入來源多元化、資產優化、費用效率和資本管理所推動的。

Moving to slide 7. Our assets under management and administration grew 6% year-over-year to $394 billion. General account assets grew 8% over the prior year as a result of higher new business volume. And at the same time, separate account assets and assets under administration grew 4%, benefiting from improved account values. The investment portfolio of our insurance companies delivered net investment income of $2.7 billion a 10% improvement year-over-year.

轉到投影片 7。我們管理和管理的資產年增 6%，達到 3,940 億美元。由於新業務量增加，普通帳戶資產較上年增長 8%。同時，受益於帳戶價值的提高，獨立帳戶資產和管理資產成長了 4%。保險公司投資組合實現淨投資收益27億美元，較去年成長10%。

Base portfolio income increased 12% over the prior year as we continued to benefit from growth in general account assets and higher new money yields, which were 130 basis points above roll-off yields in the quarter. Base yield increased 22 basis points year-over-year to 4.82%. The Corebridge investment portfolio is diversified and high-quality with an average rating of A.

由於我們繼續受益於普通帳戶資產的成長和更高的新貨幣收益率（本季比滾存收益率高出 130 個基點），基本投資組合收入比上年增長 12%。基礎收益率年增22個基點至4.82%。Corebridge投資組合多元化且高品質，平均評級為A。

From a credit perspective, our portfolio inclusive of commercial real estate exposure is performing as expected. Asset originations continued to benefit from our internal origination capabilities as well as our partnerships with BlackRock and Blackstone.

從信貸角度來看，我們的投資組合（包括商業房地產）的表現符合預期。資產發起繼續受益於我們的內部發起能力以及我們與貝萊德和黑石的合作關係。

Given our market outlook, we accelerated the origination of attractive assets in the first half of the year. We originated approximately $19 billion of high-quality assets for the general account roughly 58% more than this time a year ago, demonstrating the capabilities of our asset origination model.

鑑於市場前景，上半年我們加快了有吸引力資產的培育。我們為普通帳戶發起了約 190 億美元的優質資產，比一年前同期增加了約 58%，證明了我們資產發起模式的能力。

As part of our active management, we continue to reposition the portfolio to better align our ALM profile, improve return on capital and enhance credit quality. Year-to-date, Corebridge has sold $4 billion of assets. This includes $900 million of below investment grade credit without any impact to future earnings.

作為主動管理的一部分，我們繼續重新定位投資組合，以更好地調整我們的資產負債管理狀況、提高資本回報率並提高信貸品質。今年迄今為止，Corebridge 已出售了 40 億美元的資產。這包括 9 億美元的低於投資等級的信貸，對未來收益沒有任何影響。

Variable investment income declined over the prior year, broadly driven by alternative investments. Positive returns in traditional private equity and hedge funds were partially offset by mark-to-market losses in real estate equity annualized alternative returns were approximately 4% in the quarter, which is below our long-term expectation of 8% to 9%, but better than recent quarters.

可變投資收入較前一年下降，主要受到另類投資的推動。傳統私募股權和對沖基金的正回報被房地產股權按市值計價的損失部分抵消，本季年化另類回報約為 4%，低於我們 8% 至 9% 的長期預期，但好於最近幾個季度。

Looking forward, we believe real estate equity returns may improve from the lows of the first half of 2024, while initial information for the third quarter indicate some potential losses in our hedge fund portfolio as well as on call and tender activity.

展望未來，我們認為房地產股票回報率可能會較2024 年上半年的低點有所改善，而第三季度的初步資訊表明我們的對沖基金投資組合以及隨叫隨到和招標活動可能會出現一些損失。

Turning to slide 8. Our businesses at Corebridge create multiple and complementary sources of income. Our aggregate core sources of income grew 5% year-over-year, driven by an increase in each of the three sources. Base spread income grew 3% over the prior year, driven by general account portfolio growth and sustained higher new money yields partially offset by higher average cost of funds as a result of surrender activity.

轉到投影片 8。我們在 Corebridge 的業務創造了多種互補的收入來源。在這三個來源的成長的推動下，我們的核心收入來源總額比去年同期成長了 5%。受普通帳戶投資組合成長和新貨幣收益率持續上升的推動，基本利差收入較上年增長 3%，但部分被退保活動導致的平均資金成本上升所抵消。

Fee income improved 8% over the prior year, driven by higher account values along with our growing advisory and brokerage business, which has increased assets under administration by 12% year-over-year. Underwriting margin, excluding variable investment income and the sale of our international life business improved 4% over the prior year, driven by more favorable mortality experience. The combination of our diversified market-leading businesses working together powers our earnings growth.

由於帳戶價值增加以及我們不斷成長的諮詢和經紀業務（使管理資產年增 12%），手續費收入比上一年增長了 8%。在更有利的死亡率體驗的推動下，核保利潤率（不包括可變投資收入和國際人壽業務的銷售）比上年提高了 4%。我們多元化的市場領先業務的結合共同推動了我們的獲利成長。

Here are a few highlights. Individual Retirement grew its sources of income by 7% year-over-year through a combination of spread and fee income. Base spread income increased largely as a result of general account asset growth driven by strong new business volume. Spreads from the new business continues to be attractive but are tighter than the spreads on the in-force. And surrenders are more concentrated in blocks with lower cost of funds, both of which put pressure on the portfolio's overall base net investment spread. As such, we expect marginal compression in the future.

以下是一些亮點。透過利差和費用收入的結合，個人退休金的收入來源年增了 7%。基礎利差收入大幅成長，是由於強勁的新業務量帶動了一般帳戶資產成長。新業務的利差繼續具有吸引力，但比有效業務的利差更窄。而且退保更多集中在資金成本較低的區塊，這兩者都給投資組合的整體基礎淨投資利差帶來了壓力。因此，我們預期未來會出現邊際壓縮。

That said, base net investment spread was flat on a sequential basis after adjusting for notable items in the first quarter. As we discussed during our February 2024 earnings call, we expect base spread income on a dollar basis will continue to grow, notwithstanding some spread compression.

儘管如此，在第一季的重要項目進行調整後，基本淨投資利差較上季持平。正如我們在 2024 年 2 月財報電話會議上討論的那樣，儘管利差有所壓縮，但我們預計以美元為基礎的基本利差收入將繼續增長。

Fee income, which accounts for 30% of Individual Retirement sources of income increased 10% year-over-year.

佔個人退休收入來源30%的手續費收入較去年同期成長10%。

Touching briefly on our other businesses. Group Retirement generated consistent earnings benefiting from the balance between spread and fee income. Fee income grew by 7% year-over-year, while base spread income declined driven by the impact from net outflows as our older age customers transition from asset accumulation to asset distribution.

簡要介紹一下我們的其他業務。受益於利差和費用收入之間的平衡，集團退休業務產生了持續的收益。手續費收入較去年同期成長7%，而隨著老年客戶從資產累積轉向資產分配，受淨流出影響，基本利差收入下降。

Life Insurance benefited from favorable overall mortality experience, with our domestic business reporting an underwriting margin ratio of 36.5% for the second quarter of 2024, and up 130 basis points over the prior year. As a reminder, with the sale of the UK life business this quarter, Life Insurance's financial results now purely represent our domestic business.

人壽保險受惠於良好的整體死亡率體驗，我們的國內業務報告 2024 年第二季的核保利潤率為 36.5%，比上年上升 130 個基點。提醒一下，隨著本季英國人壽保險業務的出售，人壽保險的財務表現現在純粹代表我們的國內業務。

Institutional markets produces income from spreads, fee and underwriting margin. Base spread income increased 8% year-over-year, due in part to the significant growth in our PRT and GIC portfolios. We continue to expect meaningful opportunities to further expand this business, which we believe will lead to ongoing growth of reserves and earnings.

機構市場透過點差、費用和承保保證金產生收入。基本利差收入較去年同期成長 8%，部分原因是我們的 PRT 和 GIC 投資組合大幅成長。我們繼續期待進一步擴大這項業務的有意義的機會，我們相信這將導致儲備和收益的持續成長。

Our financial results for the quarter demonstrate the benefits from our multiple sources of income as well as the ability to improve efficiency while also growing the balance sheet. On that point, general operating expenses for our Insurance businesses and parent company were lower by 6% after excluding the sale of our international life business. To date, more than $280 million of savings from Corebridge Forward have earned into our results.

我們本季的財務表現證明了我們多種收入來源的好處以及在擴大資產負債表的同時提高效率的能力。在這一點上，扣除出售國際人壽業務後，我們的保險業務和母公司的一般營運費用下降了 6%。迄今為止，Corebridge Forward 為我們節省了超過 2.8 億美元，為我們的業績帶來了回報。

Moving to slide 9. Corebridge continues to maintain a strong balance sheet while our sound financial performance and consistent cash flow generation delivers value to shareholders. Our holding company liquidity remained strong at $1.9 billion, and our Life Fleet RBC ratio is above target. Distributions from our Insurance companies were $500 million in the second quarter, bringing the year-to-date distributions to $1.1 billion, a 10% increase over the prior year.

轉到投影片 9。Corebridge 繼續保持強勁的資產負債表，同時我們良好的財務表現和持續的現金流量產生為股東帶來價值。我們的控股公司流動性仍然強勁，達到 19 億美元，我們的 Life Fleet RBC 比率高於目標。第二季保險公司的分配額為 5 億美元，使年初至今的分配額達到 11 億美元，比前一年成長 10%。

As a reminder, in the quarter, we received $550 million in net proceeds from the sale of our U.K. business. Corebridge delivered $139 million of dividends and $436 million of share repurchases to shareholders in the quarter, bringing the year-to-date payout ratio to 70%. As of July 31, we repurchased over $250 million worth of shares, bringing our share repurchases to approximately $940 million over the first seven months of the year. We're disciplined with our capital management and expect to distribute the remaining proceeds from the sale of our UK life business to shareholders during the second half of the year.

提醒一下，本季度，我們透過出售英國業務獲得了 5.5 億美元的淨收益。Corebridge 在本季向股東派發了 1.39 億美元的股息和 4.36 億美元的股票回購，使年初至今的股息率達到 70%。截至 7 月 31 日，我們回購了價值超過 2.5 億美元的股票，使今年前 7 個月的股票回購額達到約 9.4 億美元。我們嚴格遵守資本管理規定，預計在下半年將出售英國人壽業務的剩餘收益分配給股東。

In conclusion, our diversified business model, strong balance sheet and disciplined execution continue to create shareholder value as demonstrated by the growth in our earnings and cash generation.

總而言之，我們的多元化業務模式、強勁的資產負債表和嚴格的執行力繼續創造股東價值，我們的獲利和現金產生的成長證明了這一點。

With that, I will now turn the call back to Isil.urn the call over to Elias.

這樣，我現在將把電話轉回給 Isil。

Thank you, Kevin. I will begin my remarks this morning on slide 6, where I will provide an overview of our key financial results for the quarter. Corebridge reported second quarter adjusted pretax operating income of $859 million. Our operating earnings per share of $1.13 grew 9% year-over-year on a per share basis. We delivered run rate to operating EPS of $1.21, a 12% improvement on a year-over-year basis. This includes an $0.08 increase from aligning alternative investment returns to our long-term expectations.

謝謝你，凱文。今天早上我將從第 6 張投影片開始我的講話，我將概述本季的主要財務表現。Corebridge 報告第二季調整後稅前營業收入為 8.59 億美元。我們的每股營業利潤為 1.13 美元，年增 9%。我們的營運 EPS 營運率為 1.21 美元，年增 12%。其中包括將另類投資回報與我們的長期預期保持一致而增加的 0.08 美元。

Year-to-date run rate ROE of 13% has grown over 200 basis points since our initial public offering and is within our target range of 12% to 14%. The strength of our financial results for the quarter was driven by growing diverse sources of income, asset optimization, expense efficiencies and capital management.

自我們首次公開募股以來，年初至今的淨資產收益率為 13%，已成長超過 200 個基點，處於我們 12% 至 14% 的目標範圍內。我們本季財務表現的強勁表現是由收入來源多元化、資產優化、費用效率和資本管理所推動的。

Moving to slide 7. Our assets under management and administration grew 6% year-over-year to $394 billion. General account assets grew 8% over the prior year as a result of higher new business volume. And at the same time, separate account assets and assets under administration grew 4%, benefiting from improved account values. The investment portfolio of our insurance companies delivered net investment income of $2.7 billion a 10% improvement year-over-year.

轉到投影片 7。由於新業務量增加，普通帳戶資產較上年增長 8%。同時，受益於帳戶價值的提高，獨立帳戶資產和管理資產成長了 4%。保險公司投資組合實現淨投資收益27億美元，較去年成長10%。

Base portfolio income increased 12% over the prior year as we continued to benefit from growth in general account assets and higher new money yields, which were 130 basis points above roll-off yields in the quarter. Base yield increased 22 basis points year-over-year to 4.82%. The Corebridge investment portfolio is diversified and high-quality with an average rating of A.

由於我們繼續受益於普通帳戶資產的成長和更高的新貨幣收益率（本季比滾存收益率高出 130 個基點），基本投資組合收入比上年增長 12%。基礎收益率年增22個基點至4.82%。 Corebridge投資組合多元化且高品質，平均評級為A。

From a credit perspective, our portfolio inclusive of commercial real estate exposure is performing as expected. Asset originations continued to benefit from our internal origination capabilities as well as our partnerships with BlackRock and Blackstone.

從信貸角度來看，我們的投資組合（包括商業房地產）的表現符合預期。資產發起繼續受益於我們的內部發起能力以及我們與貝萊德和黑石的合作關係。

Given our market outlook, we accelerated the origination of attractive assets in the first half of the year. We originated approximately $19 billion of high-quality assets for the general account roughly 58% more than this time a year ago, demonstrating the capabilities of our asset origination model.

鑑於市場前景，上半年我們加快了有吸引力資產的培育。我們為普通帳戶發起了約 190 億美元的優質資產，比一年前同期增加了約 58%，證明了我們資產發起模型的能力。

As part of our active management, we continue to reposition the portfolio to better align our ALM profile, improve return on capital and enhance credit quality. Year-to-date, Corebridge has sold $4 billion of assets. This includes $900 million of below investment grade credit without any impact to future earnings.

作為主動管理的一部分，我們繼續重新定位投資組合，以更好地調整我們的資產負債管理狀況、提高資本回報率並提高信貸品質。今年迄今為止，Corebridge 已出售了 40 億美元的資產。這包括 9 億美元的低於投資等級的信貸，對未來收益沒有任何影響。

Variable investment income declined over the prior year, broadly driven by alternative investments. Positive returns in traditional private equity and hedge funds were partially offset by mark-to-market losses in real estate equity annualized alternative returns were approximately 4% in the quarter, which is below our long-term expectation of 8% to 9%, but better than recent quarters.

可變投資收入較前一年下降，主要受到另類投資的推動。傳統私募股權和對沖基金的正回報被房地產股權按市值計價的損失部分抵消，本季年化另類回報約為 4%，低於我們 8% 至 9% 的長期預期，但好於最近幾個季度。

Looking forward, we believe real estate equity returns may improve from the lows of the first half of 2024, while initial information for the third quarter indicate some potential losses in our hedge fund portfolio as well as on call and tender activity.

展望未來，我們認為房地產股票回報率可能會較2024 年上半年的低點有所改善，而第三季度的初步資訊表明我們的對沖基金投資組合以及隨叫隨到和招標活動可能會出現一些損失。

Turning to slide 8. Our businesses at Corebridge create multiple and complementary sources of income. Our aggregate core sources of income grew 5% year-over-year, driven by an increase in each of the three sources. Base spread income grew 3% over the prior year, driven by general account portfolio growth and sustained higher new money yields partially offset by higher average cost of funds as a result of surrender activity.

轉向幻燈片 8。在這三個來源的成長的推動下，我們的核心收入來源總額比去年同期成長了 5%。受普通帳戶投資組合成長和新貨幣收益率持續上升的推動，基本利差收入較上年增長 3%，但部分被退保活動導致的平均資金成本上升所抵消。

Fee income improved 8% over the prior year, driven by higher account values along with our growing advisory and brokerage business, which has increased assets under administration by 12% year-over-year. Underwriting margin, excluding variable investment income and the sale of our international life business improved 4% over the prior year, driven by more favorable mortality experience. The combination of our diversified market-leading businesses working together powers our earnings growth.

由於帳戶價值增加以及我們不斷成長的諮詢和經紀業務（使管理資產年增 12%），手續費收入比上一年增長了 8%。在更有利的死亡率體驗的推動下，核保利潤率（不包括可變投資收入和國際人壽業務的銷售）比上年提高了 4%。我們多元化的市場領先業務的結合共同推動了我們的獲利成長。

Here are a few highlights. Individual Retirement grew its sources of income by 7% year-over-year through a combination of spread and fee income. Base spread income increased largely as a result of general account asset growth driven by strong new business volume. Spreads from the new business continues to be attractive but are tighter than the spreads on the in-force. And surrenders are more concentrated in blocks with lower cost of funds, both of which put pressure on the portfolio's overall base net investment spread. As such, we expect marginal compression in the future.

以下是一些亮點。透過利差和費用收入的結合，個人退休金的收入來源年增了 7%。基礎利差收入大幅成長，是由於強勁的新業務量帶動了一般帳戶資產成長。新業務的利差繼續具有吸引力，但比有效業務的利差更窄。而且退保更多集中在資金成本較低的區塊，這兩者都給投資組合的整體基礎淨投資利差帶來了壓力。因此，我們預期未來會出現邊際壓縮。

That said, base net investment spread was flat on a sequential basis after adjusting for notable items in the first quarter. As we discussed during our February 2024 earnings call, we expect base spread income on a dollar basis will continue to grow, notwithstanding some spread compression.

儘管如此，在第一季的重要項目進行調整後，基本淨投資利差較上季持平。正如我們在 2024 年 2 月財報電話會議上討論的那樣，儘管利差有所壓縮，但我們預計以美元為基礎的基本利差收入將繼續增長。

Fee income, which accounts for 30% of Individual Retirement sources of income increased 10% year-over-year.

佔個人退休收入來源30%的手續費收入較去年同期成長10%。

Touching briefly on our other businesses. Group Retirement generated consistent earnings benefiting from the balance between spread and fee income. Fee income grew by 7% year-over-year, while base spread income declined driven by the impact from net outflows as our older age customers transition from asset accumulation to asset distribution.

簡要介紹一下我們的其他業務。受益於利差和費用收入之間的平衡，集團退休業務產生了持續的收益。手續費收入較去年同期成長7%，而隨著老年客戶從資產累積轉向資產分配，受淨流出影響，基本利差收入下降。

Life Insurance benefited from favorable overall mortality experience, with our domestic business reporting an underwriting margin ratio of 36.5% for the second quarter of 2024, and up 130 basis points over the prior year. As a reminder, with the sale of the UK life business this quarter, Life Insurance's financial results now purely represent our domestic business.

人壽保險受惠於良好的整體死亡率體驗，我們的國內業務報告 2024 年第二季的核保利潤率為 36.5%，比上年上升 130 個基點。提醒一下，隨著本季英國人壽保險業務的出售，人壽保險的財務表現現在純粹代表我們的國內業務。

Institutional markets produces income from spreads, fee and underwriting margin. Base spread income increased 8% year-over-year, due in part to the significant growth in our PRT and GIC portfolios. We continue to expect meaningful opportunities to further expand this business, which we believe will lead to ongoing growth of reserves and earnings.

機構市場透過點差、費用和承保保證金產生收入。基本利差收入較去年同期成長 8%，部分原因是我們的 PRT 和 GIC 投資組合大幅成長。我們繼續期待進一步擴大這項業務的有意義的機會，我們相信這將導致儲備和收益的持續成長。

Our financial results for the quarter demonstrate the benefits from our multiple sources of income as well as the ability to improve efficiency while also growing the balance sheet. On that point, general operating expenses for our Insurance businesses and parent company were lower by 6% after excluding the sale of our international life business. To date, more than $280 million of savings from Corebridge Forward have earned into our results.

我們本季的財務表現證明了我們多種收入來源的好處以及在擴大資產負債表的同時提高效率的能力。在這一點上，扣除出售國際人壽業務後，我們的保險業務和母公司的一般營運費用下降了 6%。迄今為止，Corebridge Forward 為我們節省了超過 2.8 億美元，為我們的業績帶來了回報。

Moving to slide 9. Corebridge continues to maintain a strong balance sheet while our sound financial performance and consistent cash flow generation delivers value to shareholders. Our holding company liquidity remained strong at $1.9 billion, and our Life Fleet RBC ratio is above target. Distributions from our Insurance companies were $500 million in the second quarter, bringing the year-to-date distributions to $1.1 billion, a 10% increase over the prior year.

轉到投影片 9。我們的控股公司流動性仍然強勁，達到 19 億美元，我們的 Life Fleet RBC 比率高於目標。第二季保險公司的分配額為 5 億美元，使年初至今的分配額達到 11 億美元，比前一年成長 10%。

As a reminder, in the quarter, we received $550 million in net proceeds from the sale of our U.K. business. Corebridge delivered $139 million of dividends and $436 million of share repurchases to shareholders in the quarter, bringing the year-to-date payout ratio to 70%. As of July 31, we repurchased over $250 million worth of shares, bringing our share repurchases to approximately $940 million over the first seven months of the year. We're disciplined with our capital management and expect to distribute the remaining proceeds from the sale of our UK life business to shareholders during the second half of the year.

提醒一下，本季度，我們透過出售英國業務獲得了 5.5 億美元的淨收益。 Corebridge 在本季向股東派發了 1.39 億美元的股息和 4.36 億美元的股票回購，使年初至今的派息率達到 70%。截至 7 月 31 日，我們回購了價值超過 2.5 億美元的股票，使今年前 7 個月的股票回購額達到約 9.4 億美元。我們嚴格遵守資本管理規定，預計在下半年將出售英國人壽業務的剩餘收益分配給股東。

In conclusion, our diversified business model, strong balance sheet and disciplined execution continue to create shareholder value as demonstrated by the growth in our earnings and cash generation.

總而言之，我們的多元化業務模式、強勁的資產負債表和嚴格的執行力繼續創造股東價值，我們的獲利和現金產生的成長證明了這一點。

With that, I will now turn the call back to Isil.

現在，我將把電話轉回伊西爾。

Thank you, Elias. As a reminder, please limit yourself to one question and one follow-up. Operator, we are now ready to begin the Q&A portion of the call.

謝謝你，埃利亞斯。提醒一下，請限制自己提出一個問題和一個後續行動。接線員，我們現在準備開始通話的問答部分。

Thank you. We will now begin the question-and-answer session. (Operator Instructions)

謝謝。我們現在開始問答環節。（操作員說明）

Elyse Greenspan, Wells Fargo.

伊麗絲‧格林斯潘，富國銀行。

Thanks, good morning. My first question is just on Bermuda. Now that you guys have started ceding business there. Could you just give us kind of the lay of the land, what you expect to see and how we could see that transpiring? And then can you help us think through the capital efficiencies that you could see from ceding more business to Bermuda?

謝謝，早安。我的第一個問題是關於百慕達的。現在你們已經開始放棄那裡的業務了。您能否向我們介紹一下情況，您期望看到什麼以及我們如何看到這種情況的發生？那麼您能否幫助我們思考透過將更多業務轉讓給百慕達可以帶來的資本效率？

Yeah. Thanks, Elyse. Look, we think of Bermuda as an extension of our capital management tool kit. We have an existing entity that has capital -- and we did begin ceding part of our very robust fixed annuity and index annuity new sales. We have several opportunities as we advance with our Bermuda strategy. We can see flow reinsurance on additional products relative to new business, those that are attractive in the Bermuda environment.

是的。謝謝，愛麗絲。看，我們認為百慕達是我們資本管理工具包的延伸。我們現有的實體擁有資本，而且我們確實開始放棄部分非常強勁的固定年金和指數年金新銷售。在推動百慕達策略的過程中，我們有很多機會。我們可以看到相對於新業務的其他產品的流量再保險，這些產品在百慕達環境中具有吸引力。

And ultimately, we can also create in-force transactions in terms of portfolio reinsurance opportunities. And so right now, with the robust fixed and indexed annuity sales that's helped us support those sales, but we see Bermuda as a long-term extension of our capital management strategy.

最終，我們還可以在投資組合再保險機會方面創建有效交易。因此，目前，強勁的固定和指數年金銷售幫助我們支持了這些銷售，但我們將百慕達視為我們資本管理策略的長期延伸。

And then maybe my second question is picking up on that. You guys had pretty strong on fixed annuity sales in the quarter. Can you just kind of comment on the outlook on that you would expect from here over the balance of the year and into next year as well?

也許我的第二個問題是關於這一點的。你們本季的固定年金銷售相當強勁。您能否簡單評論一下您對今年餘下時間和明年的展望？

Yes, sure. So the second quarter conditions were very strong for both fixed and indexed annuities, in particular, fixed annuities. These products are very valuable to customers as part of a long term savings plan. And we've seen advisors very supportive both in the bank channel and also the increasingly active broker dealer channel.

是的，當然。因此，第二季固定年金和指數年金的狀況都非常強勁，特別是固定年金。作為長期儲蓄計劃的一部分，這些產品對客戶來說非常有價值。我們看到顧問在銀行管道和日益活躍的經紀交易商管道都非常支持。

And ultimately, customer demand is driven by crediting rates, which reflects where yields and spreads are, but also where customer expectations of the future are. And during the second quarter, the first two months side rates were rising and high. That started tailing off towards the last month of the quarter, we were able to leverage our responsive pricing and the tremendous distribution access that we have in and executed effectively in that environment.

最終，客戶需求是由信用利率驅動的，信用利率反映了收益率和利差，也反映了客戶對未來的期望。在第二季度，前兩個月的邊際利率不斷上升且很高。這種情況在本季最後一個月開始逐漸減少，我們能夠利用我們的響應式定價以及我們在該環境中擁有並有效執行的巨大分銷管道。

We benefited from some operational improvements that we made last year to support the volumes and attractive assets were available. So we feel good about our execution during the quarter. We may not always have quarters in the retail business such as that. But if the customer demands are consistent and markets are supportive, certainly we have the opportunity to be able to participate. And I think you have to look maybe broader than just focusing on one or two products.

我們受益於去年為支持數量和有吸引力的資產而進行的一些營運改善。因此，我們對本季的執行情況感到滿意。我們可能不會總是擁有這樣的零售業務。但如果客戶需求一致且市場支持，我們當然有機會參與。我認為你必須把目光放得更廣泛，而不僅僅是專注於一兩種產品。

You know, since the second quarter of last year, we've enjoyed increase in the overall level of production, but we've been able to support this growth while strengthening the balance sheet and delivering on our capital returns. So we feel good about our execution, and we'll continue to respond as conditions evolve in the future.

你知道，自去年第二季以來，我們的整體生產水準有所提高，但我們能夠在加強資產負債表和實現資本回報的同時支持這種成長。因此，我們對我們的執行情況感到滿意，並且我們將根據未來情況的發展繼續做出反應。

Thank you

謝謝

Ryan Krueger, KBW.

瑞安·克魯格，KBW。

Good morning. I had a higher-level question on both Bermuda and your comments on continuing to explore other efficiency options. Should we think of these things as enabling you to grow more while continuing to achieve the targeted 60% to 65% payout ratio? Or is there actual potential upside to the payout ratio because of these actions?

早安.我對百慕達有一個更高級別的問題，以及您對繼續探索其他效率選項的評論。我們是否應該將這些事情視為使您能夠實現更多成長，同時繼續實現 60% 至 65% 的派息率目標？或者由於這些行動，派息率是否有實際潛在的上升空間？

Hey, Ryan, it's Elias. So as Kevin said, listen, we look at Bermuda as another tool in our capital management strategy. And what you see in the way we use it in the second quarter is to fund in an efficient way, the higher growth, which is all going to contribute to higher earnings and higher distributable cash flows over time, which is kind of important to how we think about our strategy.

嘿，瑞安，我是埃利亞斯。正如凱文所說，聽著，我們將百慕達視為我們資本管理策略的另一個工具。你看到我們在第二季度使用它的方式是以一種有效的方式提供資金，更高的增長，隨著時間的推移，這一切都將有助於提高收益和更高的可分配現金流，這對於如何實現更高的收益和更高的可分配現金流量非常重要。

And you've seen in the past, we're very active on how we manage our balance sheet. And we see other opportunities to Bermuda which we got the first one in place, and we're now considering what's the next step on how we further optimize our regulatory capital.

您過去已經看到，我們非常積極地管理資產負債表。我們看到了百慕達的其他機會，我們已經有了第一個機會，我們現在正在考慮下一步如何進一步優化我們的監管資本。

Yes. Okay, thanks. And then up with with Nissan becoming in large shareholder, do you see any strategic and opportunity with them beyond them being just a passive shareholder in the company?

是的。好的，謝謝。隨著日產成為大股東，除了身為公司的被動股東之外，您認為他們還有什麼策略和機會嗎？

Well, thanks, Ryan. We are looking forward to welcoming welcoming them as a shareholder when the transaction closes, subject to the various regulatory environments. I mean DuPont is tremendously successful in their market and we'll have opportunities to begin to engage once we have concluded those regulatory approvals. They understand the industry. They're very supportive of our strategy. We believe our values are aligned and we're looking forward to welcoming them as an investor.

嗯，謝謝，瑞安。我們期待在交易完成時歡迎他們成為股東，但須遵守各種監管環境。我的意思是杜邦在他們的市場上取得了巨大的成功，一旦我們完成了這些監管批准，我們將有機會開始參與。他們了解這個行業。他們非常支持我們的策略。我們相信我們的價值觀是一致的，我們期待歡迎他們作為投資者。

Okay. Thank you.

好的。謝謝。

John Barnidge, Piper Sandler.

約翰·巴尼奇，派珀·桑德勒。

Good morning. Thank you for the opportunity. Your free cash flow conversion targets, you've done a pretty good job at hitting them with Bermuda. Do you see an opportunity to raise those as that end need becomes a bigger part portion of the portfolio you mentioned as long-term extension of the capital management strategy? Thanks.

早安.謝謝你給我這個機會。您的自由現金流轉換目標，百慕達在實現這些目標方面做得非常好。您是否認為有機會提高這些資金，因為最終需求成為您提到的作為資本管理策略的長期延伸的投資組合的更大部分？謝謝。

So John, it's Elias. So listen, the way we look at it is, as I said earlier, we see it as another tool in our capital management strategy that enhances our financial flexibility. And then we just started leveraging the view that support new business, and we've got some other ideas we're going to pursue over time that will grow over time, distributable cash flows as well as going to grow earnings from our insurance companies.

約翰，是埃利亞斯。所以聽著，我們看待它的方式是，正如我之前所說，我們將其視為我們資本管理策略中的另一個工具，可以增強我們的財務靈活性。然後我們剛開始利用支持新業務的觀點，我們還有一些其他想法，我們將隨著時間的推移而追求這些想法，這些想法將隨著時間的推移而增長，可分配的現金流以及我們保險公司的收入將會增加。

If you look at our -- what we're doing from a capital management for 2024, putting aside the proceeds from the UK, we're focused on delivering 60% to 65% payout ratio. That's what we've done in the first half of the year, and that's our focus for the second half of the year. And the proceeds from the UK would be extra on top.

如果你看看我們在 2024 年的資本管理中所做的事情，拋開來自英國的收益，我們的重點是提供 60% 至 65% 的支付率。這是我們上半年所做的工作，也是下半年我們的重點工作。來自英國的收益將會更多。

Thank you for that. You mentioned first, my follow-up. You've mentioned other levers to improve capital efficiency beyond Bermuda. Can you maybe hit on those a little bit? Thank you.

謝謝你。你首先提到了，我的後續行動。您提到了百慕達以外提高資本效率的其他槓桿。能稍微談一下這些嗎？謝謝。

Yes. Thanks, John. So look, I mean, we're always seeking opportunities to increase value and to optimize the portfolio, including exploring pro forma transactions. And any transaction clearly has to be accretive on a risk-adjusted basis. And we look at that from a couple of different lenses, including the franchise impact, managing credit risk, other considerations.

是的。謝謝，約翰。所以，我的意思是，我們一直在尋找增加價值和優化投資組合的機會，包括探索形式交易。任何交易顯然都必須在風險調整的基礎上實現增值。我們從幾個不同的角度來看待這一點，包括特許經營影響、管理信用風險以及其他考慮因素。

And we also look at the multiple differential as part of that economic equation. It was last talked about, we prioritized a few international transactions that were right in front of us generated a lot of shareholder value there, and now we're enabling Bermuda. And so that does present us the potential and we continue to explore transactions both internally as well as potentially externally.

我們也將多重微分視為經濟方程式的一部分。上次談到，我們優先考慮了一些就在我們面前的國際交易，這些交易在那裡產生了大量股東價值，現在我們正在為百慕達提供支持。因此，這確實為我們帶來了潛力，我們將繼續探索內部和潛在的外部交易。

We are aware of the markets and have engaged and in some discussions go further than others, but we'll continue to evaluate and prioritize all the options. We see Bermuda as an important enhancement to our availability of options. And to the extent we have anything to disclose, we'll disclose it.

我們了解市場並參與其中，並且在某些討論中比其他討論走得更遠，但我們將繼續評估所有選項並確定優先順序。我們認為百慕達是我們選擇的重要增強。只要我們有任何需要揭露的內容，我們就會揭露。

And John, it's Elias. If I can add to what, Kevin, as you know, since the beginning since the IPO, we've been focused on creating shareholder value and capital management has been one of the ways we've done it, but I think you've seen the progress we've made on organic growth where we grew our spread income by almost 30% since the IPO.

約翰，是埃利亞斯。如果我可以補充一點，凱文，正如你所知，自首次公開募股以來，我們一直專注於創造股東價值，資本管理是我們做到這一點的方式之一，但我認為你已經我們看到了我們在有機成長方面的進展，自IPO 以來，我們的利差收入成長了近30%。

You know, we focus on expense management where we've reduced our expenses by about 11% as well as the work we've done on the asset side of the balance sheet. So in addition to capital, all those remain levers available to us, and we continue to be focused on them, creating value for our shareholders.

您知道，我們專注於費用管理，我們已將費用減少了約 11%，並且我們在資產負債表的資產方面所做的工作也是如此。因此，除了資本之外，所有這些仍然是我們可以利用的槓桿，我們將繼續關注它們，為我們的股東創造價值。

Sumeet Kamath, Jefferies.

蘇米特·卡馬斯，杰弗里斯。

Great, thanks. And we noticed that the sequential change in the fixed annuity crediting rate was up pretty dramatically. And I guess how much of that was the roll-off of some legacy old business versus just competitive pressures in terms of new business?

太好了，謝謝。我們注意到固定年金發放率的連續變化非常顯著。我猜想其中有多少是一些遺留舊業務的下滑與新業務方面的競爭壓力相比？

Yes. Thanks, Suneet. I think a couple of things relative to the fixed business. First of all, we did disclose some one-timers in the first quarter and in the fourth quarter of last year. And when we look beyond the impact of those ours, our nominal spreads were essentially flat on a sequential basis. And you know, we did see very strong growth in the second quarter.

是的。謝謝，蘇妮特。我認為與固定業務相關的一些事情。首先，我們確實在去年第一季和第四季披露了一些一次性的情況。當我們超越這些影響時，我們的名目利差環比基本持平。你知道，我們確實在第二季看到了非常強勁的成長。

The growth in the general account of at $3 billion. And as the business earns in, we do expect spread income to continue to grow, albeit at a slower pace. As you know, we moved quickly at the beginning of the change in the market, and we were able to take actions relative to the in-force and repositioning the asset portfolios and what we're seeing is is that the cost of funds on new business is higher than the overall in-force portfolio.

一般帳戶成長30億美元。隨著業務獲利，我們確實預期利差收入將繼續成長，儘管速度較慢。如您所知，我們在市場變化之初迅速採取行動，我們能夠採取與有效資產組合相關的行動並重新定位資產組合，我們看到的是新資產的資金成本業務高於整體有效投資組合。

And what we're seeing in surrenders are the lower cost of fund businesses. So that is creating a creep effect in the cost of funds and so on. Nominal spreads themselves may have peaked, as we'd indicated before, and there may be some marginal spread compression going forward, but the margins are locked in on the in-force and we price new business according to what's available now, we expect spread income to continue to grow, even though there may be some marginal spread compression.

我們在退保中看到的是基金業務成本的降低。因此，這會造成資金成本等方面的蠕變效應。正如我們之前指出的，名目利差本身可能已經達到頂峰，並且未來可能會出現一些邊際利差壓縮，但邊際利差已鎖定在有效的範圍內，我們根據現有的情況對新業務進行定價，我們預期利差會增加。

Got it. And I guess on that base spread income growth, I mean, I guess, do you need sales to be sort of at this level, which is and pretty incredible level of sales in order to see that. I'm just trying to think through what the drivers of that growth in base spread income are.

知道了。我想在基本利差收入成長方面，我的意思是，我想，你是否需要銷售達到這個水平，這是相當令人難以置信的銷售水平才能看到這一點。我只是想思考基本利差收入成長的驅動因素是什麼。

It's to life. There's two drivers for the growth in spread income. So one is new business. No, we don't need it to be at the level you saw in the second quarter to continue to grow. The second thing is on the in-force portfolio. And we shared with you in our earnings deck, the kind of the delta between where new money is coming into the portfolio and where money is exiting the portfolio. So we had a 130 basis point differential.

這是為了生活。利差收入的成長有兩個驅動因素。一是新業務。不，我們不需要它達到你在第二季度看到的水平來繼續成長。第二件事是關於有效的投資組合。我們在損益表中與您分享了新資金進入投資組合和資金退出投資組合之間的增量。所以我們有 130 個基點的差異。

So that kind of higher reinvestment rate, which still has a healthy cushion relative to what's leaving our portfolio, that's another tailwind for the growth in our spread income. So those two will be the tailwinds going forward, and we expect that to continue to driving spread income into the future.

因此，較高的再投資率相對於我們投資組合的剩餘資金仍然具有健康的緩衝，這是我們利差收入成長的另一個推動力。因此，這兩者將成為未來的推動力，我們預計這將繼續推動未來的利差收入。

Okay.

好的。

Tom Gallagher, Evercore.

湯姆‧加拉格爾，《Evercore》。

Good morning. First question is just on the spike in fixed annuity sales. Was that caused by any new product that was launched? Or was that an existing product that really accelerated during the quarter? And how do you feel about the margins in those? Because I think whenever you see something like a product that's considered somewhat of a commodity like fixed annuities go up so much. There's going to be some skepticism that it's a good profit margin. But can you talk about how you feel about the profit margin on those sales?

早安.第一個問題是固定年金銷售的激增。是因為新產品推出造成的嗎？還是該現有產品在本季真正加速發展？您對這些產品的利潤有何看法？因為我認為，每當你看到像固定年金這樣被視為商品的產品時，就會上漲很多。有人會懷疑它的利潤率是否很高。但您能談談您對這些銷售的利潤率有何看法嗎？

Yeah. Thanks, Tom. We feel good about the profit margin on the sales. We manage the pricing in our fixed annuity business with great discipline. We have the ability to reprice all of our in-force products essentially every day if we had to, during the pandemic, we were able to do that, and we're very focused on kind of the micro cycles of competition.

是的。謝謝，湯姆。我們對銷售利潤率感到滿意。我們以嚴格的紀律管理固定年金業務的定價。如果有必要的話，我們基本上每天都有能力對所有有效產品重新定價，在大流行期間，我們能夠做到這一點，而且我們非常關注競爭的微觀週期。

And historically, fixed annuities is one of the businesses where our production has varied quarter-to-quarter according to where our customer demands are at a given time in the second quarter just happens to be a period where the customer demand was very strong. Part of that is where crediting rates were. Part of that, I think, is where investor expectations were. And a lot of it was that advisers, both in the bank and the broker-dealer channel see the great value of these products as part of a long-term investment plan. So the conditions were very attractive in the second quarter. We didn't change any of our pricing philosophy and the margins continue to be attractive on new business.

從歷史上看，固定年金是我們的生產根據客戶需求在特定時間每季都有變化的業務之一，第二季恰好是客戶需求非常強勁的時期。其中一部分是貸方利率。我認為，部分原因在於投資者的期望。其中很大一部分原因是銀行和經紀自營商管道的顧問都認為這些產品作為長期投資計畫的一部分具有巨大價值。所以第二季的條件非常有吸引力。我們沒有改變任何定價理念，新業務的利潤率仍然具有吸引力。

Got it. So Kevin, no new product that was just the product that was on the shelf and it sounds like you think industry demand really probably picked up and you were just catching your share. Is that a fair way of thinking about it?

知道了。所以凱文，沒有新產品只是貨架上的產品，聽起來你認為行業需求確實可能會回升，而你只是抓住了自己的份額。這是一個公平的思考方式嗎？

No, I wouldn't necessarily think of it like that, Tom. I think we have a very strong distribution partnership with some significant distribution partners. And we were able to mobilize that capability in the second quarter in response to the demand. So it's not just a matter of where the market was. It's our business model relative to having multiple products, having multiple channels being able to focus our capital where the risk-adjusted returns are most attractive at any given time and then having the distribution platform to be able to put that to work.

不，我不一定會這樣想，湯姆。我認為我們與一些重要的分銷合作夥伴建立了非常牢固的分銷合作夥伴關係。我們能夠在第二季度調動這種能力來回應需求。因此，這不僅僅是市場在哪裡的問題。這是我們的商業模式，涉及擁有多種產品，擁有多種管道，能夠將我們的資本集中在任何給定時間風險調整後回報最具吸引力的地方，然後擁有能夠將其發揮作用的分銷平台。

And just taking a step back from the fixed annuity business for a moment. I mean, our entire business model reflects that opportunity. And so the fixed annuity sales kind of stood out in the second quarter, if you look at the previous couple of quarters, we've enjoyed growth from various products and various channels in response to that market demand.

暫時從固定年金業務退一步。我的意思是，我們的整個商業模式都反映了這個機會。因此，固定年金銷售在第二季度表現突出，如果你看看前幾季，我們就因應市場需求而從各種產品和各種管道中獲得了成長。

And so that's how we look at it. There was a very strong quarter in fixed annuities. If those conditions were to repeat, we would anticipate being able to deliver a similar performance that we'll be continuing to respond to where the opportunities are the greatest, going forward.

這就是我們的看法。固定年金季度表現非常強勁。如果這些情況再次出現，我們預計能夠提供類似的業績，我們將繼續在機會最大的地方做出反應。

Okay. Thanks you.

好的。感謝您。

Wes Carmichael, Autonomous Research

韋斯·卡邁克爾，自主研究

Thank you. I had a similar question along the line of Tom on MYGAs. But Kevin, you mentioned the cost of funds is higher on the overall portfolio versus new business. And I totally get that. But when we think about new business, are you expecting kind of pressure on the cost of funds going forward, all else equal, including like interest rates? I guess I just think about new entrants coming into the market, more companies continuing to focus on strategies like Bermuda, so do you expect that would kind of push up the crediting rates on these products going forward?

謝謝。我在 MYGAs 上也有類似 Tom 的問題。但是凱文，您提到整體投資組合的資金成本高於新業務。我完全明白這一點。但是，當我們考慮新業務時，在其他條件相同（包括利率）的情況下，您是否預期未來資金成本會面臨某種壓力？我想我只是考慮新進者進入市場，更多的公司繼續專注於百慕達這樣的策略，所以你認為這會推高這些產品未來的信用利率嗎？

So Wes, I just want to be clear on something. It's actually the cost of funds on the in-force is lower than the new business. And that reflects the fact that a lot of that in-force was originated at a very different interest rate environment. And so what's causing the creep and the cost of funds is actually the flowing in of the new business. Now what I'll say is, based on where rates and spreads are, the margins on that new business continue to be very attractive. But that is what's causing the creep in the cost of funds.

韋斯，我只是想澄清一些事情。實際上，現有業務的資金成本低於新業務。這反映出這樣一個事實，即許多有效的利率環境都源於一個非常不同的利率環境。因此，造成資金成本上升的原因其實是新業務的流入。現在我要說的是，根據利率和利差，新業務的利潤率仍然非常有吸引力。但這就是導致資金成本攀升的原因。

As the environment continues, I mean, I think even there are some reductions in base rates, particularly at the front end of the curve. I believe that the demand for the fixed and fixed indexed annuity products is going to continue to be very strong. Because as the nominal crediting rates where products are now, these are something that are very attractive and very important to supporting a long-term savings plan as part of its asset allocation.

我的意思是，隨著環境的持續發展，我認為基本利率也會下降，特別是在曲線的前端。我相信對固定和固定指數年金產品的需求將繼續非常強勁。因為作為現在產品的名目信用利率，這些對於支持長期儲蓄計劃（作為其資產配置的一部分）非常有吸引力且非常重要。

Got it. And then I think on my follow-up, just on retail annuities and shelf space, you mentioned strong distribution, but are there any opportunities that you see in the near term to kind of get on the shelf with some wirehouses or even some agencies where you expect that could be meaningful in the near term?

知道了。然後我想在我的後續行動中，就零售年金和貨架空間而言，您提到了強大的分銷，但是您認為在短期內是否有機會與一些電線公司甚至一些機構合作，在這些地方您認為這短期內會有意義嗎？

So we are already on the shelf. We believe that every major distribution firm available and the broker-dealer channel, in fact, is an area, we saw significant strength in the recent quarters. And that is an area where there's almost a new generation of advisers that are discovering the value of these products as part of an asset allocation, an important part of our recent growth has been the broker-dealer channel, which includes for us the wirehouses.

所以我們已經上架了。我們相信，事實上，每個主要的分銷公司和經紀自營商管道都是一個領域，我們在最近幾個季度看到了顯著的優勢。在這個領域，幾乎有新一代的顧問正在發現這些產品作為資產配置一部分的價值，我們最近成長的一個重要部分是經紀自營商管道，其中包括我們的經紀商管道。

(Operator Instructions)

（操作員說明）

Joel Hurwitz, Dowling Partners.

喬爾·赫維茨，道林合夥人。

Hey, good morning. A quick one on VII. So you guys only called out the unfavorable alternatives, but it looks like there was further VII pressure in the quarter, including negative call and tender income, just what was that about what you see in the quarter there in non-alternative VII?

嘿，早安。關於 VII 的快速介紹。所以你們只提出了不利的替代方案，但看起來本季還有進一步的第七壓力，包括負面的呼籲和招標收入，那麼你們在本季看到的非替代方案七是什麼呢？

Hey, Joel, it's Elias. So yes, we had a situation where we had a bond that was purchased during the pandemic when rates were really low, we purchased it at a premium, and it had a call event on it in the quarter, hence, why we had a loss upon the call.

嘿，喬爾，我是埃利亞斯。所以，是的，我們遇到了這樣一種情況，我們有一隻債券是在大流行期間購買的，當時利率非常低，我們以溢價購買了它，並且它在本季度發生了贖回事件，因此，我們為什麼會虧損接到電話後。

Okay. So just a onetime or there?

好的。那麼只是一次性還是那裡？

Yeah. I also signaled in my script that looking at the third quarter, we expect another one in the third quarter. But I would look at those as kind of more limited than necessarily a run rate.

是的。我也在劇本中表示，展望第三季度，我們預計第三季還會有另一場比賽。但我認為這些比運行率更有限。

Okay. And then can you just provide some more color on your PRT outlook for the second half? And just what are you seeing in the overall competitive environment in that space?

好的。那麼您能否對下半年的 PRT 前景提供更多資訊？您在該領域的整體競爭環境中看到了什麼？

Yes, sure. On pension risk transfer, the pipelines continue to be very strong. We did not have a transaction in the second quarter, but we focus on the full plan termination space, and there were no significant sized full plan terminations in our market in the second quarter. But the pipeline continues to be to be very strong and across the institutional markets business, actually, we feel great about our position that conditions were very good for guaranteed investment contracts in the quarter.

是的，當然。在退休金風險轉移方面，管道仍然非常強大。我們在第二季度沒有發生交易，但我們專注於全計劃終止空間，並且第二季度我們的市場上沒有大規模的全計劃終止。但通路仍然非常強勁，而且在整個機構市場業務中，實際上，我們對我們的立場感到滿意，即本季度擔保投資合約的條件非常好。

We engaged in some issuance there, and we continues to see good growth in the structures as well so that the pension risk transfer is going to be a little volatile in terms of when we land transactions, we do focus on floorplan terms and the $500 million to $1.5 billion range. There's plenty in the pipeline, but they don't land every quarter.

我們在那裡進行了一些發行，我們繼續看到結構的良好增長，因此當我們進行交易時，養老金風險轉移將會有點波動，我們確實關注平面圖條款和 5 億美元至 15 億美元範圍。還有很多正在醞釀中，但不是每季都會落地。

Okay. Thank you.

好的。謝謝。

Mike Ward, Citigroup.

麥克沃德，花旗集團。

Thank you, guys. Good morning. Just curious with the gears moving in terms of deconsolidation and internally for you guys with the Bermuda arrangements. Curious how you see your business mix today? Specifically kind of how do you weigh external risk transfer opportunities or business mix changes going forward?

謝謝你們，夥計們。早安.只是對百慕達安排中的分拆和內部方面的進展感到好奇。想知道您現在如何看待您的業務組合嗎？具體來說，您如何權衡未來的外部風險轉移機會或業務組合變化？

So thanks, Mike. We believe we have a very strong position in the businesses that we've chosen. We have 4 market-leading businesses that are at scale and able to perform. We've worked hard to hone that portfolio over the year, and we're focusing on what's right in front of us. In terms of opportunities for optimizing the portfolio, whether they're internal solutions or external solutions, we're equally actively exploring where those opportunities may be. And weighing them against other opportunities we have to generate shareholder value.

謝謝，麥克。我們相信，我們在所選的業務中擁有非常強大的地位。我們擁有 4 家市場領先的企業，這些企業規模龐大且有能力執行。一年來，我們一直在努力完善該產品組合，並專注於眼前的事情。在優化產品組合的機會方面，無論是內部解決方案還是外部解決方案，我們都同樣積極探索這些機會可能在哪裡。並將它們與我們必須創造股東價值的其他機會進行權衡。

We are aware of what the market conditions are. We're aware of what the opportunity is in terms of transaction multiples. And we continue to focus on prioritizing the most important transactions in front of us.

我們了解市場狀況。我們知道交易倍數方面的機會是什麼。我們繼續專注於優先處理我們面前最重要的交易。

Thanks. And I'm sorry to keep going back to this annuity sales question. That's certainly a positive result to see growth, right? But just looking at the Limra data and industry sales actually declined in the quarter. So I think we're just kind of trying to square this away. And I noticed in an earlier question, you mentioned some operational improvements that you made last year to support volumes. So was that part of it? Or was there a new distribution that really contributed to this growth, while others seem to see their sales decline?

謝謝。我很抱歉繼續回到這個年金銷售問題。這當然是成長的正面結果，對吧？但僅看 Limra 數據，本季產業銷售額實際上有所下降。所以我認為我們只是想解決這個問題。我注意到在之前的問題中，您提到了去年為支援銷售而進行的一些營運改進。那麼這是其中的一部分嗎？或者是否有一種新的分銷管道真正促進了這種成長，而其他分銷管道的銷售額似乎正在下降？

But I can't speak for what others strategies. Maybe I can speak for what ours is and that is is to respond to market opportunities to maintain our pricing discipline and to maintain a distribution platform that we can that we can flex on after the tremendous volumes of the first quarter of last year, we did make operational improvements.

但我不能代表其他人的策略。也許我可以說我們的是什麼，那就是響應市場機會，維持我們的定價紀律，並維持一個分銷平台，我們可以在去年第一季度的巨大銷量之後靈活運用，我們做到了進行營運改進。

We increased our capacity and flexibility, which started coming online in the third quarter of last year. And so we were able to support the volumes of the second quarter without any unusual service issues or backlogs or anything or anything like that?

我們提高了產能和靈活性，並於去年第三季開始上線。因此，我們能夠在沒有任何異常服務問題或積壓或類似情況的情況下支援第二季的銷售？

I think that was part of it, but really it's where our distribution partnerships were and where the customer demand was. And also we never issue liabilities that don't have an asset strategy to support them and assets were available and attractive in the second quarter to support that to support that growth. So we're pleased with our execution at that time.

我認為這是其中的一部分，但實際上這就是我們的分銷合作夥伴關係和客戶需求所在。而且，我們從不發行沒有資產策略支持的負債，第二季資產可用且有吸引力，可以支持這種成長。所以我們對當時的執行感到滿意。

I wouldn't necessarily look at it as a quarter that you would expect to always repeat, we respond to the opportunities of any given quarter. And if you look back at our production in fixed annuities, it is it's never been linear. It is in its capital markets, our transaction and we respond to it in the form of a capital markets business.

我不一定將其視為您期望總是重複的季度，我們會對任何特定季度的機會做出反應。如果你回顧我們的固定年金生產，你會發現它從來都不是線性的。它存在於其資本市場、我們的交易中，我們以資本市場業務的形式對其做出反應。

Okay, thanks.

好的，謝謝。

Thank you. That will conclude the question and answer session today. I will now pass the call over to Kevin Hogan, CEO of corporate financial for closing remarks.

謝謝。今天的問答環節到此結束。我現在將把電話轉給企業財務執行長凱文霍根 (Kevin Hogan) 致閉幕詞。

Okay. Thanks, everybody. Thanks for joining us this morning. Thanks for the questions and have a nice day.

好的。謝謝大家。感謝您今天早上加入我們。感謝您的提問，祝您有美好的一天。

That will conclude today's call. Thank you for your participation. You may now disconnect your lines.

今天的電話會議到此結束。感謝您的參與。現在您可以斷開線路。