Mark Hughes: Yeah. Thanks. Good morning. In the Legacy business, the assets, the account value is actually up a little bit. Earnings were down. Is that relationship — should we just continue to see the earnings taper kind of regardless of what happens in terms of account value? What’s the relationship there?
Robin Raju: Sure. So the Legacy business continues to run off. You saw outflows in the quarter of $659 million. That’s in line with our $2.3 billion per annum guidance. So that’s going to continue to run off. It will be less than 5% of earnings by 2027, so pretty immaterial despite strong cash flows as it’s well reserved. In the quarter then you’re going to see it benefit from higher equity markets that will help account value and we’ll get more fee income but continue to expect it to run off under normal course.
Mark Hughes: Thank you for that. And then the — in-plan growth the — what sort of allocation are you — or do you anticipate to these plans? Is the idea that there’s kind of some level of allocation early on and then the real opportunity emerges when perhaps those folks go into decumulation mode as you say and maybe they shift to give you more annuity-type products, is that the way to think about it that you’re kind of…
Nick Lane: Yes, this is Nick. Let me give you a little bit of color on that. First let’s start the broader 401(k) market, the $7 trillion market, of which roughly $3 trillion is allocated towards target-date funds. The way AB’s product and the LifePath Paycheck product work is there’s an allocation as consumers towards annuities and guaranteed income as consumers get closer to retirement. So specifically in the LifePath Paycheck, when a consumer starts — or a participant turns 55, they would be allocated roughly 10% within annuities and that would build towards age 65. So the opportunity is both managing those assets and the fees off of that. And if they annuitize then the economics would link to an annuity payout. So that’s how I would think about this as an asset class within a target-date portfolio.
The inflows will come both on the remapping. So, that’s why it comes in lumpy. We saw that two years ago with AB receiving the case as a plan converts and then they will consistently grow over time.
Mark Hughes: Appreciate that.
Operator: Your next question is from the line of Mike Ward with Citi. Please go ahead.
Mike Ward: Thank you. Good morning. On the LifePath opportunity with BlackRock, just wondering if that has any like exclusivity in it? Or could you potentially over time receive interest or do similar contracts or partnerships with other kind of retirement funds?
Robin Raju: Yes. We’re not going to comment on the specific relations with BlackRock and the LifePath product. We’re happy to help with them, help them develop the product and have another partner on there as well. In addition, reminder, we have partnerships with AllianceBernstein, who was first in the market 10 years ago. So we’re quite pleased with that, and we’ll continue to work with others on different types of offerings to serve this need for retirement income for US retirees.
Mike Ward: Okay. And then just the group Insurance business and Protection, wondering how you guys think about investing in the growth of that business or how do you think about that business strategically?
Robin Raju: Well, we’re actively investing in that business. It’s in the Protection segment, at this point in time. I’ll let Nick highlight on some of the growth numbers that we’re seeing come across and we expected to breakeven soon. So, we continue to see good prospects. Nick, do you want to highlight some of the growth numbers?
Nick Lane: Yes, yes. I would say within our Employee Benefits line, we’re a disruptor relative to our new technology and our positioning is powerfully simple. We continue to see strong growth there. First year, gross premiums were up 16%. And then, as Robin alluded to, we expect to continue to grow this. It will have a breakeven in the not too distant future.
Mike Ward: Okay. Thanks.
Operator: There are no further questions. And with that, this concludes the Equitable Holdings First Quarter 2024 Earnings Call. Thank you for joining. You may now disconnect.
