Suneet Kamath

Management said core is closer to 70% of AWM earnings, a differentiator versus peers who rely more heavily on cash earnings.

Attributed the uptick to a combination of the value proposition and selective package adjustments for the right advisers.

Jim strongly agreed. Huntington chose Ameriprise after extensive evaluation. Comerica partnership was working well before Fifth Third acquisition. Growing technology costs make outsourcing to Ameriprise more attractive for banks.

Walter confirmed core same-store growth is solid. The variable is attrition from aggressive recruiting and Comerica. Jim emphasized organic productivity across 10,000 advisers is the true profitability driver.

Walter confirmed 4-5% organic growth is appropriate annual measure. Seasonality will cause quarterly fluctuations but the organic driver remains consistent.

Jim described early but strong adoption across both channels with reasonable number of accounts opened. Still early innings, advisers are sampling then increasing activity. Recently added managed SMAs.

Jim described excellent relationship with Comerica, strong reviews from all levels. Walter noted ~$15B in assets. Contract has protections. Will work through M&A implications.

Jim explained two practices went RIA, cited checks being given. Emphasized overall position is strong with 90 recruits, good pipeline, and solid organic business.

Jim confirmed organic growth from existing advisers remains the primary driver. Q2 had extra lumpiness from Liberation Day, tax payments, and competitive recruiting dynamics.

Jim emphasized Ameriprise is the #1 best-performing S&P financial since spin-off. Board confident, succession planning in place. No dramatic strategic pivots planned.

Jim described Signature Wealth as a comprehensive UMA with flexible sleeves for stock portfolios, institutional, and rebalancing. Allows Columbia models alongside other providers.

Walter said NII should be improving based on shift to fixed rate, portfolio mix changes, and adding liabilities onto the balance sheet.

Jim acknowledged cash levels remain elevated due to still-high short-term rates, expects gradual normalization with pickup in fixed income products.

Walter explained bank repositioned to 87% fixed, absorbed 100bps Fed cut, grew deposits $2.3B, and adjusted crediting rate in January.

Oliver credited scale, distribution, product innovation and execution for Asia sales strength, with momentum continuing into July despite yen volatility.

Tadros framed PRT as lumpy and jumbo-driven; H1 lighter but H2 pipeline stronger, reaffirming 3% to 5% full-year retained balance growth.

Lyndon confirmed comprehensive review completed, secondment practice discontinued. John added it is an industry-wide issue with no impact on business results or sales.

Ramy cited favorable CDC data, potential COVID pull-forward and GLP-1 effects. Noted any pricing impact would flow gradually over years, not quarters.

Ramy Tadros confirmed AI-related employment actions are incorporated into PFO outlook and assumed to continue in 2026. Offset by growth from new coverages, sales, enrollment participation, and strong one-one results. Diversified book across employer sizes and geography provides resilience.

John McCallion acknowledged multiple factors in dividend capacity including solvency ratios and retained earnings but confirmed no constraints on Japan dividend capacity. Healthy position on retained earnings. Japan reinsurance done over the past decade primarily through Bermuda entity but not a majority of the book.

John McCallion explained Bermuda presence provides capital efficiency for certain products. ESR ratio of 170-190% uses prescribed rules with no company-specific adjustments. Japan has dividended $4B to holdco over past 5 years, consistent with economic framework MetLife has always operated under.

John McCallion explained Chariot Re is used holistically to augment total retirement platform growth, not on a deal-by-deal basis. Temporary earnings impact of $15-20M per quarter on the $10B deal, expected to be offset as capital is redeployed through other growth.

Michel Khalaf reiterated Chariot Re is intended for MetLife-originated liabilities in the early years, not third-party business. Completed $10B initial transaction on schedule and expects more to come.

Ramy Tadros explained dental is in line with expectations after rate actions, disability incidents and recoveries on track inclusive of July data. Pressure came from accident, hospital, and critical illness all moving in one direction simultaneously, unusual but not macro-driven.

Ramy Tadros explained jumbo PRT sponsors are well-hedged through liability-driven investing with limited equity exposure. Volatility may cause temporary timing distraction but won't change the underlying pipeline of transactions.

Michel Khalaf confirmed April buyback pace was intentional with no blackout impact. Reiterated Q1's $1.4B shouldn't be used as quarterly run rate. Capital priorities unchanged: organic growth first, then inorganic, then returns.

Michel explained Cherry Tree will initially source MetLife-originated liabilities including PRT and Japan liabilities, with potential third-party later.

John McCallion explained core spread stabilization after interest rate caps rolled off and provided forward spread outlook of 106-108 over near term.

Deanna reframed the budget as 0-10% of annual free cash flow plus low-leverage flexibility and divestiture proceeds, not implying being out of M&A.

Christopher said participant count (14 million covered, top 3 in 401(k)) is the key scale measure and PFG is at scale.

Chris described focus on existing Principal participants under $1M investable assets. Not building storefront locations. Seeing nice results: retail individual customers up 11% year over year, increased roll-ins, higher deferral rates. Partnering with advisors rather than competing for high net worth. Supplementing with enhanced technology.

Amy confirmed wage growth healthy similar to last year, employment growth moderated slightly but aligned with expectations. Uncertainty creates static effect where employers and employees hold steady. SMB owners historically more optimistic when uncertainty clears. Not seeing big lag effect but monitoring monthly.

Chris described focused approach on existing Principal 401k participants under $1 million in investable assets, serving over 100,000 new advisory customers in last year. Partnering with advisors rather than competing for high-net-worth clients. Working on shared economics model.

Deanna noted no meaningful AI impact on employment growth which remains positive and stable. Well-being index survey of SMB employers showed 85% expect stable or growing staffing, 95% expect stable or rising wages. Diversity of 180,000 employer block provides resilience.

Chris shared key metrics: 90% plan sponsor adoption of advisory services, double-digit increase in advisory and retail customers served, nearly 20% increase in roll-in transfers. Long-term build with 200 salary-based advisors launched Q4 2024. Still early but good green shoots.

Joel cited Q3 credit losses of only $8M after tax, below modeled long-term run rate. Kamal noted no direct exposure to recently troubled names, very high selection ratio of 1 in 7 deals, and low leverage vehicles. Cautioned industry-wide risk from entities deploying large capital quickly.

Chris described advice solution rollout from Q3 2024 with nice success. Shift from education-only to advice provision. Growing both total participants and savings amounts per participant. Some AUM shows up in other parts of organization.

Chris cited improvement across all drivers: strong fee-based transfer deposit growth, strong asset retention, SMB flow resiliency. Withdrawal rate stabilizing though dollar amounts up 4% versus 7% AV growth. Some fee-based outflows converting from VA to spread-based RILA.

Amy shared survey of 250 SMB customers: targeting supply chain adjustments and pricing changes rather than staffing cuts. Average SMB customer in business 30 years, experienced multiple cycles.

Chris confirmed converse would play out. Emphasized managing for revenue and profit not flows. Expects margin in top half regardless of market conditions.

Chris sees promise in converting 401(k) savings to guaranteed income but adoption still early. Expects innovation over next 1-2 years in the space.

Deanna: inquisitive about M&A across all businesses, high bar (cultural/financial/strategic fit), low leverage ratio gives flexibility. But organic growth sufficient for targets.

Del Frias framed the $750M as a comprehensive simplification providing capacity to reinvest in growth, directing analysts to the operating expense ratio and PGIM margin as the measures of success rather than a fixed bottom-line ratio.

Del Frias characterized top quartile earnings growth ex-VA as around high single digit but stressed they are not setting a new earnings growth target today given execution timing and the POJ sales resumption.

Sullivan defended returns noting segment mix differences drive benefit ratio comparisons across industry. Confirmed returns exceed cost of capital and group is a focused growth area.

Sullivan acknowledged recent exits are early evidence and promised greater detail on August call. Signaled more focused capital deployment and business mix shift ahead but deferred specifics.

Andy explained 90 days based on time to make meaningful progress on 4 actions. Voluntary decision but consulted with JFSA beforehand. Will not resume until comfortable with internal compliance environment, potentially extending beyond 90 days.

Andy confirmed Gibraltar review is underway, concluding in a few months. Only impact so far is modest pressure on life consultant recruiting. Committed to ensuring every operation in every market and channel is conducted properly.

Yanela emphasized decades-long private credit track record. Portfolio largely private placements with strong covenants, consistently outperforming equally rated publics during downturns. Growth in private credit has been modest.

Yanela quantified VA runoff at $10-15M AOI impact per quarter compounding to $100-150M annually. Crossover point coming as new product account values grow. Japan surrender impact expected more moderate beyond 2025. Core earnings growth in retirement already visible.

Andy attributed market share fragmentation to 5-to-25 competitor expansion. Committed to disciplined pricing and seeking best returns across broadened product portfolio. Individual retirement earnings improvement will come from legacy VA runoff replacement with less complex products.

Yanela explained AA view based on internal frameworks and active rating agency dialogue. ESR levels maintained to provide cushion enabling AA levels after cyclical stress. Board approval of formal target planned later this year.

Andy differentiated legacy GUL in runoff from go-forward products. Cited mortality-longevity balance, deep underwriting capabilities, trusted brand, flight to quality, and strong sales as reasons to keep the business.

Yanela quantified $100M 2025 earnings impact. Most contracts beyond surrender charge period so no offsetting fees. Andy added proactive mitigation: 20% of sales from products launched in last 24 months, 30% yen-based, added distribution and service staff.

Caroline provided thorough response covering industry dynamics, product diversification, and competitive positioning with 5 products over $1B in sales.

Rob explained Japan third-party opportunity is accelerating due to ESR regime, with dedicated licensed team stood up and second transaction closing building credibility.

Virgil Miller said U.S. results are near the lower end of expectations but he expects a stronger, fourth-quarter-weighted second half, with group products up 7.1% and dental and vision up 47%.

Yoshizumi attributed the sequential decline to launch timing for Anshin Palette in late December, with first-half sales still exceeding the prior year and momentum expected to continue.

Dan pushed back, characterizing reinsurance as an add-on strategy built methodically over time, not a replacement for core growth. Emphasized evolution over revolution.

Virgil gave granular breakdown: group up 12.4%, buy-the-bill up 25%, dental/vision property up 52%. Core agent business flat to slightly down but investing in recruitment and conversion.

Virgil reported no material economic impact on recruiting or sales. Career recruiting up for the year with 16% conversion rate. Noted 22 million Americans affected by ACA changes driving 10.5% direct-to-consumer growth. Dan expects 2026 to be a good year.

Max attributed higher US benefit ratio guidance to three factors: active endorsement/benefit increases on cancer and accident products that were too low post-pandemic, plus mix shift as higher-benefit-ratio group products become larger share of in-force.

Virgil confirmed strong Q4 pipeline and consistent expectations. Attributed individual weakness to lower average weekly producers, with overperformance in group offset by underperformance in individual. Focus on rebuilding Aflac Nation recruiting.

Virgil said dental recovery is 2 years behind original projections. Key metric: every $1 dental sold pulls $0.85 in VB sales. Dan added deliberate exit from unprofitable SIC 5-6 classifications (high turnover industries) also reduced headline sales.

Max explained three ESR versions and confirmed Aflac uses regulatory model with USP giving ~30 point uplift. Internal model approval expected to take considerable time.

Max confirmed lapse/reissue within expectations with no spike beyond normal levels for a product refresh. Acknowledged possible Q3 uptick due to lag.

Max sized the put option program at 40-45 ESR points of FX risk protection, confirming current ESR estimated at around 250% as of the morning of the call.

Virgil said agents had been selling other carriers' dental products when Aflac's was unstable. With 23% dental sales increase in Q1, agents returning to Aflac. Comp incentives tied to recovery.

Kalmbach expected assumptions not to reset fully to current favorable mortality, so some remeasurement gains should continue beyond the Q3 update, with ongoing gains and losses each quarter.

Kalmbach outlined Indiana reciprocal-jurisdiction approval and BMA sign-off as next steps, expecting modest, recurring Bermuda subsidiary dividends starting 2027 rather than an accelerated release.

No significant consumer pushback observed. Average premium per sale holding steady (not trading down). Renewal persistency resilient, policies affordable at $40-60/month and embedded in budgets. Historical pattern: sales and recruiting can actually benefit from economic stress. Agents work harder (extra calls) to maintain income.

Agency channel protected, high barriers to entry, agents generate own activity, not competing for active shoppers. DTC more exposed to competition from new entrants; explains low single-digit growth guide. Positioned for AI advertising platform evolution (participating in betas with major platforms). Over 50% of target market uninsured, not a market share game.

Long-term assumptions set conservatively at prepandemic levels. Recent experience is more favorable but management wants sustained evidence before moving long-term assumptions further. Potential pandemic pull-forward effect creates uncertainty.

Extraordinary dividend of $80M from subsidiary, received in 2025, supporting elevated Q4 buyback activity ($170M planned).

Actively pursuing resolution, not passively waiting. No new inquiries from either agency in 2025. Informal process makes public conclusion difficult. Goal remains communicable resolution.

Company anticipates communicating conclusions but can't handicap timing. Noted government distractions may slow process but could reduce regulatory burden long-term.

Cited resilience through 2008-2010 and 2020-2021 with double-digit agent and sales growth. Premium per policy up in Q1 vs prior year. Policies affordable at $30-60/month.

Guidance range captures both favorable mortality continuation and reversion scenarios. Q4 results plus Q1-Q2 2025 experience will inform Q3 2025 assumption update.

Priority is Bermuda but open to interim transactions that bridge the gap. Bermuda gives some benefit in 2026, real benefit in 2027 with reciprocal jurisdiction.