Robin Raju: Sure, so we’re, we’re about 80% of the year through and getting to our $10 billion for the year. And so we have confidence in that. And then we have another $10 billion commitment to AB’s business. And as you know, the big, the big pride, there is AB growing that to almost $90 billion by 2027. And it being 20% of the revenues at AllianceBernstein. So, that’s the big prize for EQH. Obviously, as our business grows, we have to hold capital for the risk that we take. But this is coming with the growth in our overall business. And we’re not fundamentally shifting the mix that we see. So we don’t see significant capital constraint as a result in the movement of the general account. And so for — historically, if you look back, for every dollar that we put in into AllianceBernstein, they’ve grown $4 worth of third-party money. So, we think it’s a great value proposition for shareholders without constraining capital.
Suneet Kamath: Sorry that’s the capital requirements on the privates are not materially different than what you guys were holding before?
Robin Raju: Now, if you look at our business mix today, in terms of what we have in private credit, and what we have in alternatives that mix in the general account isn’t shifting significantly from now to 2027. So it’s, it’s coming, a lot of it’s coming from growth in our underlying business.
Suneet Kamath: Okay, got it. Thanks.
Operator: Your next question comes from the line of Tracy Benguigui from Barclays. Please go ahead.
Tracy Benguigui : Good morning. Going back to protection in your comment that growth claims were 10% reinsured versus your 15% average to the lower reinsurance recovery have anything to do with risk recapture? Maybe under YRT treaty?
Robin Raju: No, it’s just a function of lower high face amount claims in the quarter.
Tracy Benguigui : Okay, got it. And just wondering on the comment about normalizing going forward, do you think that the face amounts might be lower or is your normalized recovery dependent upon the comment that you need to add more reinsurance or reduced retention limit?
Robin Raju: No, it has nothing to do the actions that we take, if you look in the appendix, we put a slide in for the protection solutions business. And it shows the historical reinsurance coverage that we had. And on average, we’ve been about 15%. And in the quarter, you can see it sticks out to you at 10% in the quarter. So, we’d assume that we get back to that historical average, just based on the mix of business that we have. And that should put us within that $50 million to $75 million guidance that we’ve given.
Tracy Benguigui : Okay, did see that? So, your comment was just based on your track record? So just to be sure that your capital returns this quarter exceed your 60% to 70% payout, because of just nuances with GAAP accounting, like higher DAC, that doesn’t translate to statutory cash flow generation?
Robin Raju: That’s right. And in the quarter on a reported basis, we paid more than the 60% to 70% payout ratio on a normalized basis, we paid at the higher end of that range. And continue to see returning cash to shareholders is a great way to drive value, given where the stock trades today until we’ll continue to return capital to shareholders as we see fit.
Tracy Benguigui : Thank you.
Operator: Your next question comes from the line Wilma Burdis from Raymond James. Please go ahead.
Wilma Burdis: Hey, good morning, the assumption review, could you just go into a little bit more detail on the assumption review, it is interesting to see a favorable assumption review, especially it seemed like it was related to lapse in utilization?
Robin Raju: Sure, I would take the assumption review in aggregate the way I look at it. And in aggregate, the net income impact of the assumption review across all of our business was $4 million at the end, and that’s what you should expect. Because that’s how we manage our assumptions. We manage on a conservative basis; we move to emerging experience. And we do not want to surprise investors with negative unlocks that are large, they’re distracting. And they’re not represented in our core business. So, if you look across every single business line that we have, we update assumptions on an annual basis and move toward the merging experience. So, you’re going to see ins and outs within every single assumption, but at the end of the day rounds to a very small number.
Wilma Burdis: Thank you. Well, could you talk about the opportunities to acquire wealth management teams versus the ability to grow organically?
Robin Raju: Sure. Our model is distinct because we both bring in new people into the industry and grow them into wealth managers, we’ve amplified that through our experience advisor initiatives, which would be looking for a supported independence model. The opportunity for a differentiated device model, the platform that gives them open architecture to a full suite of fee based recurring investment products plus our strength of a retirement platform. Year-to-date we’ve recruited roughly 80 advisors on the experience side so we’d see traction on that side.
Wilma Burdis: Thank you.
Operator: Your next question comes from the line of Maxwell Fritscher from Truist Securities. Please go ahead.
Maxwell Fritscher : Hi, good morning. I’m calling in from Mark Hughes. I joined a little late so I apologize if you’ve covered this but in wealth management, you’ve had positive year-over-year sales growth and advisory after contractions in the first two quarters of the year? And strong growth in brokerage and direct. Is there anything in particular you’re seeing there that you could share? I know you had just mentioned recruiting but anything else?
Mark Pearson: Yes, structurally in the industry, you’ve seen with interest rates up people move cash into fixed maturity options, which are more on the — which aren’t fee-based investments. So, that’s shifted some of it from the fee-based investment to the structure maturities. As Robin highlighted, we continue to see growth and our recurring fee-based investment accounts in terms of positive net flows. And that continues to be a growing percentage of our AUM.
Maxwell Fritscher : Thank you.
Operator: Your next question comes from the line of Michael Ward from Citi. Please go ahead.
Michael Ward: Hey, thanks, guys. Good morning. Maybe back to the regulatory landscape. I know the focus has been on the DOL. I think I saw that SEC priorities for 24 might include variable annuities too just wondering if you had any, inklings or communications on what they’re interested there?
