Financial Data and Key Metrics Changes - Adjusted operating earnings for the first quarter of 2025 were $376 million, reflecting a 13% increase compared to the previous year [5][14] - Adjusted operating earnings per share rose over 20% year-over-year, with reported earnings per share at $5.1, adjusted to $5.2 after accounting for notable items, marking a 25% increase from $4.16 in the prior year's first quarter [6][17] - The estimated Risk-Based Capital (RBC) ratio increased to 585%, well above the minimum requirement of 425% [29] Business Line Data and Key Metrics Changes - Retail annuity sales exceeded $4 billion, up more than 9% from the previous year, with variable annuities sales increasing by 9% to $2.7 billion [7][18] - Sales of the RILA product reached $1.2 billion, supporting diversification in top-line growth [18] - Advisory sales increased by 28% year-over-year, with an annual run rate exceeding $1 billion [11] Market Data and Key Metrics Changes - The company reported a healthy and profitable book of business, generating excess capital and maintaining a strong liquidity position with over $600 million in holding company liquid assets [11][30] - The company noted that the demand for variable annuity products remains strong, particularly among retiring Americans seeking asset growth and guaranteed income [8] Company Strategy and Development Direction - The company aims to continue delivering on its financial targets while positioning itself for long-term profitability, with a focus on the annuity industry and providing flexible protection and income-oriented solutions [12][34] - The company is open to evaluating inorganic growth opportunities, emphasizing the importance of comparing potential acquisitions to share buybacks and balance sheet strengthening [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating market volatility, highlighting the effectiveness of their hedging program in stabilizing capital generation [25][32] - The company remains committed to serving financial professionals and their clients, focusing on helping Americans grow and protect their retirement savings [36] Other Important Information - The company announced a second-quarter cash dividend of $0.80 per common share, reflecting its commitment to returning capital to shareholders [12] - The company reported a consolidated net hedge loss of $134 million in the first quarter, but noted that their hedging program has provided stability in non-operating results [21][22] Q&A Session Summary Question: Interest in acquiring in the annuity business - Management acknowledged past successful bolt-on acquisitions and stated that any future opportunities would be evaluated against the value of share buybacks or balance sheet strengthening [40] Question: Strategy regarding spread-based products - Management indicated that they approach the market with discipline and are open to ideas and opportunities to enhance competitiveness, while noting growth in sales of spread products [43][44] Question: Fee-based advisers selling more annuities - Management highlighted the importance of providing choice to advisers and the growth of the RIA space, emphasizing the development of modeling and financial planning tools for fee-based advisers [52][53] Question: Impact of capital in April at Brook Re - Management described the impact as modest and reiterated their focus on maintaining sufficient capital above regulatory levels [58][60] Question: Sensitivity to market rates and potential capital contributions - Management explained that scenarios requiring capital contributions would involve high volatility combined with deep equity stress, similar to past financial crises [68][70]