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CEO Margi Tooth acknowledged that while seasonality typically lifts costs in the first half, a mild deceleration was observed this quarter. CFO Fawwad Qureshi added that guidance for the second half assumes a continued 1% abatement in inflation and noted a 60 basis point favorable prior period development in Q2. Regarding the food initiative, Mr. Qureshi explained the gain was from exchanging preferred stock in a partner, Baystride, for intellectual property, which is a critical foundational element for the nascent food business.

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CFO Fawwad Qureshi clarified there was an adverse reserve development of $1.7 million (70 bps) in Q1. He also stated that the company is now over 3x overcapitalized versus the required amount and is focused on monetizing this surplus. CEO Margi Tooth added that pricing and cost of care trends are in line with expectations.

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CEO Margi Tooth confirmed that rate increases are expected to remain above 15% but will be lower than in the past two years, which is what 'normalization' refers to. CFO Fawwad Qureshi explained the goodwill impairment was due to a delayed product launch in Europe and a strategic pause on expansion in Poland. He clarified that the write-down reduced the goodwill for the Smart Paws acquisition to zero, and most remaining goodwill relates to the Aquarium acquisition.

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CFO Fawwad Qureshi explained that the company's excess capital nearly doubled to $139.9 million, driven by NAIC factor changes (risk lines 4 and 8) and retained profits. Regarding the material weaknesses, he confirmed the company is in the final 'operate' phase of remediation, with increased fixed expenses reflecting these investments, and expects an audit opinion in February with the 10-K filing.

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EVP & COO Stephen McAnena reported that Individual Supplemental sales growth was broad-based and sustainable, while the Group Benefits business, though lumpy, had a strong outlook for the second half of the year, evidenced by a record July. CEO Marita Zuraitis clarified that recent P&C growth is still overwhelmingly from the core educator customer base, as initiatives to expand into adjacent channels are still in their early stages and not yet meaningfully impacting results.

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Stephen McAnena, EVP & COO, explained the supplemental sales growth was due to strong execution by benefit specialists and a comparison to a light Q1 2024, noting 12-month rolling growth is around 12%. Regarding reserves, Ryan Greenier, EVP & CFO, stated there are no current plans to increase them for macro factors, as utilization trends show no cause for concern and the educator market is historically resilient. Marita Zuraitis, President & CEO, added that an increase in utilization was already contemplated in their plans.

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President and CEO Marita Zuraitis emphasized that Horace Mann's strategy remains focused on its educator niche and is not based on being the lowest-priced option, highlighting strong retention. Executive Mark Desrochers added that while they offer a bundled product suite, they remain mindful of property volatility. EVP and CFO Ryan Greenier noted the target for the property line is a combined ratio of 90% or lower. Regarding underwriting changes, Mr. Desrochers confirmed they are seeing positive impacts from new deductibles and roof schedules, which contributed to favorable prior year reserve development.

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President and CEO Marita Zuraitis and Executive Mark Desrochers highlighted strong auto sales momentum from increased agent productivity and digital investments, projecting policy growth in late 2025. Executive Steve McAnena detailed the worksite segment's strength, noting record individual supplemental sales and stable fundamentals in the group business. CFO Ryan Greenier stated that while commercial mortgage loans show early signs of stabilization, it is too soon to predict if future marks will become gains, though the second-half income forecast is nearly achieved.

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CEO Glenn Williams confirmed that a combination of cost-of-living pressures and general economic uncertainty has led to a "wait and see" attitude among middle-income families, impacting term life sales. He affirmed that these financial pressures do create a tailwind for recruiting, as people seek supplemental income opportunities.

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CEO Glenn Williams commented that the U.S. and Canadian economies and business dynamics are very similar, and he expects results to be similar in direction, noting that Canada's distribution and term business has been exceptionally strong. Executive Nicole Russell stated that the stock repurchase program is designed for consistency and predictability, not for timing the market, and affirmed the company's confidence in its announced $450 million program for 2025.

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CEO Glenn Williams stated that predicting the duration of consumer financial pressure is difficult but could take a year or more to ease after inflation normalizes. He confirmed that increasing operational leverage through technology is a top priority, with significant investments planned in 2025 to simplify processes for clients and representatives, thereby improving efficiency and completion rates.

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CEO Glenn Williams explained the Canada Life partnership will replace a runoff segregated fund product, re-establishing Primerica in an important market segment. He described the mortgage business as a unique tool for debt consolidation, which frees up client cash flow and serves as a 'door opener' for broader financial planning conversations, making it valuable even in a challenging interest rate environment.

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CEO Chris Blunt explained that the sidecar provides 'multiple billions' of AUM capacity, depending on the product mix, and is a key part of F&G's strategy to become a more capital-light, higher-earning business. He noted that while this model will increase free cash flow, the current focus for capital allocation remains on high-return opportunities like owned distribution and flow reinsurance, rather than substantial dividend increases. President & CFO Conor Murphy added that the sidecar enhances their toolkit, likely increasing the focus on FIA sales.

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CEO Christopher Blunt explained that while it has taken time to get the RILA product onto platforms, they are consistently adding broker-dealers and believe it can become a billion-dollar business. He noted that the owned distribution slowdown was roughly half due to a strategic investment by a partner and half from a temporary industry-wide slowdown, both of which have since rebounded. CFO Conor Murphy added that there is no change to the company's RBC expectations or its target of remaining above 400%.

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CEO Christopher Blunt explained that the organizational changes are a 'divide and conquer' strategy to manage the company's rapid growth and increasing complexity, especially in offshore reinsurance. Regarding PRT, Blunt stated that F&G has not seen a meaningful impact from lawsuits, attributing this to their straightforward U.S.-regulated structure and focus on the $100 million to $1 billion deal size. He affirmed the PRT pipeline remains healthy but noted F&G has other avenues like the FABN market to deploy capital if needed.

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CEO Chris Blunt explained that flow reinsurance decisions are opportunistic, based on capacity, partner quality, and accretiveness, rather than a specific target, and he remains optimistic about its availability. Regarding owned distribution, Blunt stated that while they are bullish on the opportunity, the focus is on strategic partnerships, not just scaling for size. He acknowledged the asset is performing well and could potentially become a standalone entity in the future.

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CEO - Workplace Solutions Jay Kaduson explained the Blue Owl partnership will expand access to private investments for retirement clients, initially through CITs in managed accounts and target-date funds. CEO - Voya Investment Management Matt Toms added they will co-develop products focused on strong risk-adjusted returns. Regarding Edward Jones, CEO & Director Heather Lavallee noted it was a key benefit of the OneAmerica deal. Kaduson elaborated that the new selling agreement will drive full-service sales and expand Voya's distribution footprint.

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CFO Michael Katz explained the severance was part of normal course expense management and was not concentrated in any one area, with no further large charges anticipated. Matthew Toms, CEO of Investment Management, stated that while Sconset Re is a client, its contribution to Q1 flows was not outsized, as the assets are primarily in private strategies that take time to fund. He emphasized the quarter's success was driven by broad-based demand across multiple channels and products.

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CEO of Investment Management Matt Toms estimated that the majority of Voya's 70+ insurance clients, which are often mid-to-small sized, do not have sidecars, representing a growth and advisory opportunity. Regarding variable investment income, he acknowledged it is difficult to predict but suggested that current market conditions could support a return toward the company's 9% long-term average assumption.

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Executive Michael Katz noted the OneAmerica portfolio is conservatively positioned, offering opportunities for reinvestment over time. Executive Rob Grubka highlighted ESOPs as a key cross-sell capability from OneAmerica to Voya's book and the potential to engage OneAmerica's 800,000 new participants via retail wealth management. He added that the focus with Benefitfocus is currently on a successful open enrollment, with broader cross-sell opportunities to be leveraged in the future.

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An Aflac Japan executive confirmed that the MiRyto product launch was completed in April with its rollout to Japan Post, making it available across all channels. The executive also stated that the typical product refresh cycle is about three years for cancer insurance and two years for medical insurance, subject to regulatory approval.

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An Aflac Japan representative confirmed that the 'Miraito' product was launched in March and rolled out to the bank channel and Japan Post in April, making it available across all channels. The representative also stated that the typical refresh cycle, subject to FSA approval, is about three years for cancer insurance and two years for medical insurance.

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Max Broden, CFO, confirmed that the most significant remeasurement impacts occur in Q3 when actuarial assumptions are annually unlocked. He noted that gains in other quarters are smaller true-ups but reflect a long-term trend of favorable claims utilization. Alycia Slyck, SVP and Global Chief Actuary, reiterated that the annual unlocking of assumptions in Q3 reflects all experience to date.

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Virgil Miller, President of Aflac U.S., clarified that while the dental product was available, earlier service issues eroded broker trust, leading to a 33% sales decline in Q4. In Japan, Koichiro Yoshizumi detailed the upcoming cancer product launch, and CEO Daniel Amos confirmed a typical pattern of a brief sales dip before a new product launch, followed by strong growth.

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EVP and CFO Max Broden and Global Chief Actuary Alycia Slyck confirmed that the unlock incorporates all current experience and future trend expectations, which are reviewed annually. Regarding reinsurance, Max Broden stated the GAAP unlock is unrelated to the Bermuda strategy, as it has no impact on U.S. statutory or Japan FSA reserves, which are the basis for such transactions.

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President Jim Zelter acknowledged that realizations are below expectations but noted Apollo's DPI is ahead of the industry. He believes monetizations will increase with market appetite but suggested new products, not just IPOs, are needed to solve the PE overhang. CEO Marc Rowan added that Apollo's 'purchase price matters' discipline provides more exit flexibility, contributing to their outperformance on DPI.

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CEO Marc Rowan agreed that larger firms have a distinct advantage. He stated that serving the large distribution channels for individual investors, traditional asset managers, and retirement services requires a scale that smaller firms cannot match. He believes the largest firms will garner the majority of assets, provided they maintain high origination quality, and positioned Apollo as one of those firms.

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EVP & CFO Axel André clarified that the VIF credit captures the embedded value of the existing business using current assumptions and does not reflect any changes related to GLP-1 drugs. He stated that it was too early to comment on the upcoming Q3 actuarial assumption review.

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Chief Investment Officer Leslie Barbi stated that new money rates in the current quarter are similar to Q1, as lower base rates have been offset by wider credit spreads. She also confirmed that RGA's private asset platform continues to find attractive opportunities and maintains a good pipeline, leveraging its 20-year history in the space.

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Chief Financial Officer Axel Philippe Andre and CEO Tony Cheng explained that the value of in-force represents the present value of future profits and is also viewed as a form of capital recognized by rating agencies. Chief Investment Officer Leslie Barbi clarified that PACT is one of many strategic partnerships within a broad asset platform that provides a competitive edge and helps scale RGA's asset management capabilities.

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President and CEO Tony Cheng confirmed that while the primary use of capital is for business growth, opportunities on the asset side, including acquiring stakes for private asset origination, are considered. He also explained that RGA already exports successful strategies globally, citing an example of a final expense product concept moving between South Africa and the U.S., emphasizing the strength of local teams in adapting products to local consumer needs.

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Craig Larson, Partner & Head of IR, and Scott Nuttall, Co-CEO, framed it as a very interesting, albeit long-term, opportunity. They emphasized it's about giving individual investors access to higher-performing asset classes, similar to institutional plans. They see target-date funds as the likely first entry point for alternatives. Nuttall noted that while the quantum and timing are unknown, the opportunity is entirely incremental to their current plans and that KKR is well-positioned due to its brand, track record, and partnership with Capital Group, a major target-date fund player.

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President of Retirement & Income Solutions, Christopher Littlefield, acknowledged more competitors in PRT but noted the pipeline for the second half remains to be seen, with an expectation to land within the historical $2.5B to $3B range. EVP & CFO Joel Pitz explained that Q2 VII was improved but below the run-rate due to low real estate transaction activity, which is expected to pick up in the second half of the year.

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CEO Deanna Strable stated that while the company continuously assesses its portfolio, it has the right portfolio to deliver on its strategic objectives and does not require further major changes. On sector exposure, President of Retirement and Income Solutions Christopher Littlefield noted PFG is not a large player in the governmental market. President of U.S. Insurance Solutions Amy Friedrich was more definitive, stating the Specialty Benefits business is "simply not a player" in the government marketplace as it does not align with their business model.

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Executive Christopher Littlefield responded that while the withdrawal rate was up year-over-year, it was down sequentially, and he does not expect significant changes, though small rate shifts can have a large dollar impact. CEO Dan Houston stated that he does not foresee any large, additional severance adjustments on the horizon, although the company continuously seeks efficiencies.

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CFO Paul McDonough clarified that the improved expense ratio was primarily due to better operating leverage from strong business growth, not lower dollar-based spending. On long-term care, he noted a continuation of the favorable claims experience seen in recent periods, though he expects trends to normalize closer to pre-COVID levels over the long term.

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CFO Paul McDonough acknowledged the reversal could occur within 2025 but might extend beyond, reaffirming that full-year earnings guidance remains unchanged. CEO Gary Bhojwani expressed bullishness on Optavise Clear, a new Worksite product that consolidates services and adds new capabilities like Medicare advocacy, noting positive early feedback from brokers and clients.

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CFO Paul McDonough explained that share repurchase capacity for 2025 can be estimated by considering the free cash flow guidance alongside the year-end excess cash position. CEO Gary Bhojwani added that a significant geographic expansion opportunity remains, particularly for the Worksite division, which has a much smaller agent footprint than the Consumer division, noting that growth is being balanced with expense discipline.

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CEO Gary Bhojwani stated that the decision to retain 100% of new LTC business reflects strong confidence in the product's performance. CFO Paul McDonough added that this will improve earnings and ROE over time. Regarding Bermuda, McDonough confirmed they are exploring ceding other liabilities to the platform, pending regulatory approval. He also noted that while the recent restructuring will improve run-rate expenses, specific guidance on the expense ratio for 2025 will be provided in February.

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Chairman & CEO James Cracchiolo cited institutional lumpiness and a retail slowdown in April for the redemption pressure, though he noted a subsequent pickup in gross sales. He explained that the company consistently invests in technology and AI, which drives efficiencies and productivity, allowing them to reinvest savings into strategic areas like recruiting, rather than viewing it as a direct trade-off.

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James Cracchiolo, Chairman & CEO, explained that institutional outflows were lumpy and retail redemptions rose in April, consistent with industry trends for active managers. He elaborated that the company continuously invests in technology, AI, and automation, which drives productivity and allows for the reallocation of resources to fund growth initiatives like competitive recruiting, viewing it as an ongoing transformation rather than a direct trade-off.

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CFO Walter Berman described the RPS earnings as 'solid and predictable,' stating the company feels comfortable with the book's performance due to its investment strategy. Chairman and CEO Jim Cracchiolo addressed retail engagement by highlighting product initiatives, including rolling out more active ETFs, focusing on SMA model delivery, and launching new products like an interval fund. He noted that while gross sales were up, higher redemptions impacted net flows, reflecting a broader industry trend.

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Executive Walter Berman indicated that the fundamentals for Long Term Care are on a good trajectory for continued profitability, without providing a specific earnings number. Executive Jim Cracchiolo explained that while a digital alternatives platform has been built, adviser adoption is in its early stages but is expected to grow over time.

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CFO Walter Berman and CEO Jim Cracchiolo clarified the analysis was focused on reinsurance transactions for the LTC block, which could have included transferring some life insurance books as part of a deal, but not a full sale of RiverSource. Regarding AWM expenses, Jim Cracchiolo noted that volume-related distribution costs are embedded in G&A, which remains well-managed due to re-engineering and efficiency initiatives.

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Head of Product and Underwriting David Rosenbaum stated that he expects 2025 net flows to be at or higher than 2024 levels, driven by fixed rate and Shield annuities coming out of their surrender periods. Chief Investment Officer John Rosenthal commented that the company is continuously working to optimize its investment portfolio to improve returns but did not provide specific details on current initiatives.

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Chief Investment Officer John Rosenthal stated that the company does not provide a specific breakdown of outsourcing fees but noted that investment management agreement (IMA) fees are the majority of the overall investment expense number found in their financials. He declined to specify the concentration of assets, stating only that they use about a dozen world-class outside managers across various sectors.

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CEO Eric Steigerwalt stated that optimizing the investment portfolio is a possibility and not excluded from their strategic review. He noted that the company has generally avoided buyouts due to distributor disruption and historically low take rates, making it an unlikely path. Regarding the scope for deals, Steigerwalt confirmed they are looking at everything but must prioritize based on the 'art of the possible' and degree of difficulty.

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President and CEO Keith Demmings explained that while there is uncertainty, the guidance pragmatically assumes tariffs remain for all of 2025 and that the impact is manageable. CFO Keith Meier detailed mitigation strategies, including the 'inflation guard' feature in Housing and significant risk-sharing in Auto. Regarding the expense ratio, Mr. Demmings clarified that after normalizing for reinsurance and cat-related costs, the underlying ratio was relatively flat year-over-year.

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President and CEO Keith Demmings confirmed that lessons from Housing, such as driving operational efficiency, are being applied to Auto but did not anticipate major reserve releases. CFO Keith Meier added that Auto's improvement will come from earning in rate increases. Regarding cross-selling, Demmings acknowledged it as an opportunity, citing examples of working with banks in the U.K. for mobile protection. Meier noted that strong performance in one area, like with Chase, creates positive internal references that facilitate expanding relationships.

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CEO Andy Sullivan positioned organic growth as the top priority but called inorganic growth an important tool for maintaining market leadership, emphasizing a disciplined approach. He confirmed that PGIM has introduced interval funds combining public and private assets, viewing it as a key opportunity, though it is still in the early stages and will take time to impact results.

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Chairman and CEO Charles Lowrey responded that while organic growth is the priority, the company remains open to selective M&A for PGIM, emerging markets, or to add distribution and scale, including through Prismic. Vice Chairman Rob Falzon clarified that there is no specific plan to 'warehouse' liabilities; rather, Prudential's core businesses naturally generate a significant and ongoing pipeline of opportunities for Prismic.

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Yanela Frias, Chief Financial Officer, confirmed that the VII pre-announcement will be included within the existing AUM disclosure, not as a separate release. Caroline Feeney, Head of U.S. Businesses, highlighted partnerships focused on enhancing the customer enrollment and claims experience, such as one with Evolution IQ that uses AI to improve disability claims evaluations, positioning the group business for continued profitable growth.

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Caroline Feeney, Head of U.S. Businesses, explained that growth in the group channel is primarily driven by the execution of their diversification strategy into smaller case sizes and supplemental health products, rather than just employment trends. Andy Sullivan, Head of International Businesses and PGIM, outlined the strategy to focus on select emerging markets in Latin America, Asia, and Africa. He confirmed that while organic growth is the priority, the company is open to programmatic M&A to accelerate its presence in these markets.

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Mark Till, CEO of Unum International, described Poland as a strong, growing economy and noted that while the U.K. has a more difficult backdrop, it remains a positive opportunity. EVP Chris Pyne confirmed that Unum continues to see natural growth from wages and employee additions at historical levels during renewals.

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CEO Rick McKenney and Chris Pyne, head of Group Benefits, detailed that Unum's competitive moat in leave management stems from decades of experience, deep expertise in the associated disability claims, and significant investment in integrating with client HR ecosystems. CFO Steven Zabel added that these investments are funded within existing operations. Regarding market dynamics, management noted that while large case sales were exceptionally strong, the core market also saw double-digit growth, driven by platform integrations and bundled solutions.

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CEO Rick McKenney identified Unum's moat as its decades of experience in both leave and disability management, combined with deep integration into key employer HR platforms. CFO Steve Zabel added that these investments are funded by ongoing operations. Regarding market dynamics, management noted that while large case (National Client Group) sales were exceptionally strong, the core market also saw double-digit growth in the quarter, demonstrating a healthy balance.

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CFO Steven Zabel described the LTC block as having a multi-decade runoff but emphasized the company feels confident in its ability to manage the book effectively. Chris Pyne, head of Group Benefits, explained that Unum's multiyear investments in platforms like HR Connect and Total Leave create a robust, integrated offering that solves major problems for large employers, leading to a higher sales close ratio.

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CEO Kevin Hogan stated that the company has seen no impact from litigation on the PRT pipeline, which remains strong. He confirmed that the capital regime change in Japan is a significant development that could create opportunities for Corebridge's Institutional Markets business to act as a reinsurer, an area the company is actively exploring.

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CFO Elias Habayeb stated that while the Bermuda strategy enhances financial flexibility and will grow distributable cash flows over time, the focus for 2024 remains on the 60-65% payout ratio, with U.K. sale proceeds being additional. President and CEO Kevin Hogan elaborated on other levers, mentioning the continuous exploration of accretive transactions, both internal and external. Habayeb added that organic growth, expense management, and asset optimization remain key value-creation levers alongside capital management.

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CFO John McCallion indicated that while real estate fund returns are improving, their expected returns are typically lower than private equity, so their relative contribution to VII should remain consistent with their risk profile. He also noted that while the move to an economic framework in Korea is favorable, it doesn't necessarily change the broader business outlook across Asia, but rather aligns the regulatory environment with MetLife's internal management approach.

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