Wilma Burdis

Wilma Burdis inquired about MYGA sales, specifically if there's a pivot towards index products given the changing interest rate environment, and asked for further color.

Answer

President and CFO Conor Murphy stated that F&G is seeing better relative returns in its core products, leading to a more selective approach to MYGA sales and a willingness to write less. CEO Chris Blunt clarified it's not a pivot but a consistent priority on FIA, RILA, and PRT, with MYGA volumes adjusted based on returns and reinsurer demand.

Wilma Burdis with Raymond James inquired about MYGA (Multi-Year Guaranteed Annuity) sales, noting a potential pivot towards index products, and asked for insights given the changing interest rate environment.

Answer

President and CFO Conor Murphy indicated that F&G is seeing better relative returns in core products (FIA, IUL, PRT) and will be more selective with MYGA, prepared to write less and deploy capital elsewhere. CEO Chris Blunt clarified it's not a pivot but a consistent prioritization of FIA, RILA, and PRT, with MYGA volumes adjusted based on returns and reinsurer demand.

Wilma Burdis of Raymond James asked for clarification on Trupanion's 2026 guidance, specifically noting that subscription revenue aligned with her model but 'other revenue' runoff appeared to be accelerating. She also inquired about the drivers behind the strong Adjusted Operating Income outlook. Additionally, she asked if recent veterinary price trends in January indicated any changes to the expected 15% annual inflation rate.

Answer

CFO Fawwad Qureshi confirmed that the 'other business' revenue decline has been consistent, with revenue ultimately expected to turn negative year-over-year, but noted its low margin profile limits significant impact. He attributed the strong AOI outlook to continued pricing leadership, accelerating gross adds, and ongoing expense management. CEO and President Margi Tooth stated that no year-to-date trends suggest a change to the current 15% veterinary inflation assumption, though they continue to monitor it closely.

Wilma Burdis from Raymond James asked about the 2026 guidance, specifically if the runoff in 'other revenue' is accelerating and for a walkthrough of the impacts on adjusted operating income. She also inquired if recent veterinarian price increases in January have altered Trupanion's expectation of 15% annual inflation.

Answer

CFO Fawwad Qureshi confirmed that the 'other business' revenue decline has been consistent, with revenue eventually expected to turn negative year-over-year, but noted its limited impact on overall margin due to its loss-sensitive profile. He attributed the strong AOI outlook for 2026 to pricing leadership, accelerating gross adds, and ongoing expense management. CEO and President Margi Tooth stated that year-to-date observations show no reason to change the current 15% inflation assumption, though they continue to monitor it closely, acknowledging industry pressures.

Wilma Burdis of Raymond James Financial asked for clarification on the $12 million 'other income' item that contributed to the significant net EPS beat. She also questioned how the company is thinking about future rate increases, given that margins are now at target but high inflation may persist.

Answer

CFO Fawwad Qureshi clarified that the income was a one-time gain from the exchange of preferred stock in their partner, Baystride, for intellectual property related to the food initiative. CEO Margi Tooth addressed the inflation question, noting a current deceleration trend. She explained that this trend is being factored into rate setting for 2026, which will lead to softer increases for members. However, as long as veterinary costs continue to rise, some level of rate increase will be necessary to honor the company's value proposition.

Wilma Burdis inquired about the potential impact of AI on Primerica's business model, particularly concerning salespeople. She also asked for more color on the distractions observed in the middle market, such as equity market volatility or changing political environments, and whether these pressures are beginning to ease.

Answer

CEO Glenn Williams stated that Primerica views AI as an opportunity to improve efficiencies and reshape workflows in both the home office and sales process, citing existing uses in licensing training and employee productivity. He emphasized that Primerica's relationship-based business model, with personalized service and human motivation, insulates it from AI's potential downsides. Regarding middle market distractions, Williams noted an easing of cost-of-living pressures as wage growth outpaces inflation, leading to more economic breathing room. He also suggested that people are becoming more accustomed to broader economic and governmental policy uncertainties, which could provide 'running room' for the term business, while ISP demand remains strong despite market volatility concerns.

Wilma Burdis asked about the potential impact of AI on Primerica's business model, especially concerning salespeople. She also inquired about the nature of distractions in the middle market (e.g., equity market volatility, political environment, financial pressures) and whether these are showing signs of easing.

Answer

Glenn Williams (CEO) views AI as an opportunity to improve efficiencies and reshape workflows in both the home office and sales processes, citing existing AI use in licensing training and employee productivity. He emphasized that Primerica's relationship-based business model and personalized service insulate it from AI's downside. Regarding middle-market distractions, he noted easing cost of living pressures are providing more economic breathing room, and people are becoming more accustomed to economic and governmental policy uncertainties, which may offer 'running room' for term sales.

Wilma Burdis of Raymond James Financial asked for the reasons behind the favorable expense results in Q2 and if there was a sustainable element to it. She also inquired about the company's efforts to grow its ISP-licensed sales force.

Answer

EVP & CFO Tracy Tan stated the lower expenses were mainly due to the timing of technology and infrastructure investments, which are expected to ramp up later in the year. CEO Glenn Williams noted that while growing the securities-licensed sales force is challenging, the company is seeing positive results from its efforts to provide resources and support for the licensing process.

Wilma Burdis sought color on Principal Financial Group's strategy regarding small divestitures in its international business. She also asked about the confidence behind raising the ROE target to 15%-17% and any dynamics that might support a higher or sustained ROE longer term.

Answer

Deanna Strable, CEO of Principal Financial Group, explained that divestitures are part of ongoing portfolio optimization, focusing on higher growth and return businesses, and expressed confidence that the current portfolio aligns with strategic and financial objectives. Joel Pitz, CFO of Principal Financial Group, stated that the increased ROE target reflects conviction in continued improvement, competitive positioning, a differentiated business model, and capital-light businesses, which enable investment in organic growth and capital returns to shareholders. Deanna Strable added that the new range reflects the trajectory of their businesses and recent divestitures.

Wilma Burdis asked for color on Principal Financial Group's strategy regarding small international divestitures and sought more detail on the confidence behind raising the ROE target to 15%-17%, including dynamics that might support a solid ROE longer term.

Answer

Deanna Strable, CEO of Principal Financial Group, explained that recent divestitures are part of ongoing portfolio optimization, focusing on higher growth and return businesses, and are expected to enhance strategic focus and be accretive to EPS and ROE. Joel Pitz, CFO of Principal Financial Group, added that the increased ROE target reflects conviction in the company's competitive positioning, differentiated business model, and capital-light businesses, which enable investment in organic growth and strong capital returns to shareholders. He clarified that the 92% free capital flow conversion was high, with a run rate closer to 85%.

Wilma Burdis inquired about the drivers behind the favorable loss ratios in Specialty Benefits and the outlook for the upcoming quarter.

Answer

Amy Friedrich (President, Benefits and Protection) attributed the exceptional underwriting results to strong performance across group disability (lower LTD incidents), group life (lower frequency), and a 100 basis point improvement in the dental loss ratio. Supplemental health and individual disability performed as expected. She emphasized focus on the small to medium-sized business market, pricing discipline, and growth in voluntary practices, which contribute to margin expansion. She sees more opportunities for profitable business ahead for 1/1 renewals.

Wilma Burdis inquired about the growth of spread-based balances in Retirement and Income Solutions (RIS), focusing on specific products, and asked about the drivers of favorable loss ratios in Specialty Benefits and the outlook for the upcoming quarter.

Answer

CEO Deanna Strable and President Chris Littlefield highlighted strong growth in Workplace Savings and Retirement Solutions (WSRS) GA products, disciplined pension risk transfer (PRT) in smaller segments, and RILA business for lifetime income. President Amy Friedrich attributed favorable Specialty Benefits loss ratios to lower LTD incidents in group disability, lower frequency in group life, and a 100 basis point improvement in dental, driven by pricing discipline and focus on the SMB market.

Wilma Burdis of Raymond James asked for the drivers of Principal International's strong performance and its sustainability. She also requested an update on the capital generation outlook for the remainder of the year and into 2025.

Answer

CEO Dan Houston credited strong leadership and an improving macro environment in Asia. Interim CFO Joel Pitz detailed record earnings and AUM for the segment. President and COO Deanna Strable-Soethout addressed capital, expressing confidence in meeting the full-year 75%-85% free cash flow conversion target. She noted that strong Q3 generation kept capital levels stable despite significant shareholder returns and expects a strong Q4.

Wilma Burdis asked about the step back in GICs and similar products in Q4 2025, questioning if it was due to the interest rate/credit environment or quarterly fluctuation. She also inquired about expected benefits in 2027 from reduced short-term interest rate sensitivity and any quantifiable cash benefit from changes in the derivatives program.

Answer

Elias Habayeb (CFO) attributed the Q4 GIC slowdown to rate environment volatility, emphasizing their opportunistic approach and noting the market is still active. Regarding interest rate sensitivity, he stated the derivatives program reduced sensitivities, expecting exposure from Fed easing to end in 2026, leading to lower exposure and earnings growth in the top half of the 10-15% range in 2027.

Wilma Burdis asked about the step back in GICs and similar products in Q4 2025, whether it was due to the interest rate/credit environment or quarterly fluctuation, and inquired about the benefits in 2027 from reduced short-term interest rate sensitivity and any quantifiable cash benefit from the derivatives program change.

Answer

Elias Habayeb, Chief Financial Officer, attributed the GIC trend in Q4 to rate environment volatility limiting windows, emphasizing an opportunistic approach. He confirmed that the derivatives program reduced short-term interest rate sensitivity, with potential Fed easing exposure ending in 2026, leading to lower exposure in 2027 and expected earnings growth in the top half of the 10-15% range, driven by business growth and improved operating leverage.

Wilma Burdis followed up on the improvement in pension risk transfer (PRT) volume and asked about the FABN environment, including lower flows and drivers like credit spreads.

Answer

CEO Marc Rowan reiterated that Apollo's strong asset origination in 2025, augmented by the ARI transaction for 2026, drives performance. He emphasized that having multiple liability channels is crucial, allowing Apollo to avoid unprofitable PRT transactions. He stressed that winning business is about capturing profitability, not just volume, and maintaining a principal's mindset ensures long-term business building over expedient, low-margin opportunities.

Wilma Burdis followed up on PRT volume improvement and asked for more detail, as well as insights into the FABN environment, lower flows, and drivers like credit spreads.

Answer

CEO Marc Rowan reiterated that strong asset origination in 2025, bolstered by the ARI transaction for 2026, drives performance. He emphasized the advantage of having multiple liability channels, allowing Apollo to avoid unprofitable PRT transactions. Rowan stressed that Apollo's principal mindset focuses on capturing profitability rather than just volume, even if it means foregoing certain business.

Wilma Burdis asked about Apollo's approach to balancing higher volumes against higher spreads in the current ultra-tight credit spread environment, and how this trade-off affects Athene's capital efficiency and Return on Equity (ROE).

Answer

CEO Marc Rowan emphasized Apollo's focus on 'excess return per unit of risk' rather than absolute spread, adapting requirements based on rating levels. He stated that Athene prioritizes adequate spread over volume to maintain capital efficiency and ROE, as the business is ultimately 'origination-constrained.' President Jim Zelter added that actions, such as upgrading CLO holdings, reflect a consistent view on credit quality over maximizing short-term ROE.

Wilma Burdis of Raymond James requested more detail on the 'other inflows' within Retirement Services, noting the mention of defined contribution plans, and asked about the outlook for this area.

Answer

CFO Martin Kelly identified the inflows as related to stable value products. CEO Marc Rowan elaborated on the broader strategy, emphasizing a push toward product innovation to create simpler, guaranteed lifetime income solutions. He described this as the 'Holy Grail' for the industry, aiming to eventually embed these options within 401(k) and other defined contribution structures.

Wilma Burdis asked about the sustainability of CNO Financial Group's strong growth in 2025, inquiring if there were any unusual factors or potential upside from Medicare Advantage issues and tech investments. She also questioned the impact of Medicare Advantage distribution fees due to churn and if this is reflected in the 2026 outlook. Additionally, she asked about investment universe dynamics influencing a shift to higher-yielding assets and whether increased health sales, particularly Medicare Supplement, were driving elevated annuity product sales.

Answer

Gary Bhojwani, Chief Executive Officer, explained that while Medicare Advantage sales are expected to decline due to market trends, Medicare Supplement sales should continue to rise with demographics. He noted that macroeconomic headwinds could impact discretionary purchases but expressed confidence in the overall guidance. He confirmed that expected Medicare Advantage volume and associated pressures are reflected in the 2026 projections, reiterating a preference for Medicare Supplement due to greater control and client profile. Eric Johnson, Chief Investment Officer, stated that CNO is largely maintaining its strategy of sustaining good portfolio quality with tactical additions for yield, without changing risk parameters given current market valuations. Gary Bhojwani clarified that while strong Medicare Supplement sales help due to better cross-sell ratios, the annuity growth is mainly normal course, not a significant increase in cross-sale ratio.

Wilma Burdis asked about the sustainability of CNO's strong 2025 growth, inquiring if there were unusual factors or potential upside from Medicare Advantage issues and tech investments. She also asked about the impact of Medicare Advantage distribution fees due to churn and if this is reflected in the 2026 outlook. Later, she inquired about investment universe dynamics influencing a shift to higher-yielding assets and any elevated sales benefit for annuities from increased Medicare supplement sales.

Answer

CEO Gary Bhojwani discussed product-specific expectations, anticipating decreased Medicare Advantage sales but increased Medicare supplement sales. He confirmed that expected Medicare Advantage volume is reflected in projections and that CNO prefers Medicare Supplement operationally due to control and cross-sell potential. CIO Eric Johnson explained that the investment strategy continues to focus on portfolio quality with tactical yield add-ins, not expecting changes to risk parameters due to tight spreads. Gary Bhojwani noted that while strong Medicare supplement sales help annuity cross-sells, it's mainly normal course growth.

Wilma Burdis from Raymond James Financial asked for an update on the investment environment and best opportunities since the recent investor session. She also inquired about recruiting activity, agent training, and the expected conversion to sales later in the year.

Answer

CIO Eric R. Johnson reiterated that the investment approach is 'steady as she goes,' with continued focus on opportunities in agency-eligible residential mortgage loans, CRE CDO triple-A's, and taxable munis to drive book yield while maintaining quality. CEO Gary Bhojwani commented on recruiting, stating they are pleased with both recruiting and agent productivity trends in the consumer and worksite divisions and expect the momentum to continue without any signs of a slowdown.

Wilma Burdis asked for an update on the investment environment and current opportunities. She also inquired about recruiting activity and how agent training is expected to convert into future sales.

Answer

CIO Eric R. Johnson reiterated that the company continues to see good value in residential mortgage loans, CRE CDOs, and taxable munis, describing the strategy as 'steady as she goes' while maintaining high quality and liquidity. CEO Gary Bhojwani added that the company is pleased with agent recruiting and productivity in both divisions, expects the positive momentum to continue, and sees no reason for it to slow down.

Wilma Burdis of Raymond James Financial asked for an update on the investment environment and current opportunities. She also inquired about agent recruiting activity and the expected conversion into future sales.

Answer

CIO Eric R. Johnson stated the investment strategy is 'steady as she goes,' continuing to find value in residential mortgage loans, CRE CDO triple-A's, and taxable munis while maintaining high quality and liquidity. CEO Gary Bhojwani added that the company is pleased with agent recruiting and productivity in both divisions, expects the momentum to continue, and sees no reason for a slowdown.

Wilmer Burdis from Raymond James Financial asked for an update on the investment environment and opportunities. He also inquired about agent recruiting activity and how it is expected to translate into future sales.

Answer

CIO Eric R. Johnson stated the investment strategy is 'steady as she goes,' continuing to focus on opportunities in agency-eligible residential mortgage loans, CRE CDOs, and taxable municipal bonds. CEO Gary Bhojwani added that agent recruiting and productivity remain strong in both divisions, with a continued focus on productivity driving sales momentum.

Wilma Burdis asked for an apples-to-apples comparison of the 2026 EPS outlook, considering the recent reporting changes for the Closed Block.

Answer

Steve Zabel, CFO, explained that the favorable outlook is driven by higher top-line growth expectations across core businesses, consistent Benefit Ratio levels, disciplined expense management, and significant capital deployment.

Wilma Burdis inquired about the key drivers influencing the group disability loss ratio and the underlying factors supporting the positive outlook for 2026. She also sought clarification on the 2026 EPS outlook on an apples-to-apples basis, considering the recent reporting changes.

Answer

Chris Pyne, EVP of Group Benefits, highlighted a favorable market receptive to Unum's leave management and HR platform connections, supporting pricing discipline. CFO Steve Zabel detailed Q4 drivers, including lower recovery sizes and reduced mortality in the LTD claimant block, which he considered quarterly volatility. He projected a 62%-64% benefit ratio for 2026, gradually gliding to a maximum of 65% over future cycles, driven by sustainable claims performance and active pricing dynamics. Regarding the EPS outlook, Steve Zabel attributed the growth to higher core business premium, consistent benefit ratios, disciplined expense management, and capital deployment.

Wilma Burdis asked why Unum reports earnings on its closed block and Long-Term Care (LTC) business, given that the block has historically lost capital. She also sought confirmation that her takeaways from the assumption review were fair: no negative cash impact, future cash generation from rate increases, and reduced risk of future charges by removing assumptions.

Answer

Chief Financial Officer Steve Zabel explained that reporting earnings for the entire entity, including the closed block and LTC, is a requirement. He noted that LTC is in closed block status for segmentation, and the focus is on cash generation/deployment, with no foreseen capital needs for the block. Mr. Zabel confirmed that Wilma's takeaways were accurate, stating that the assumption changes created less risk around less controllable assumptions (like morbidity improvement) and bolstered more controllable ones (like rate increases), which are expected to generate value and cash directly.

Wilma Burdis from Raymond James questioned why Unum Group continues to report earnings on the closed block and Long-Term Care (LTC) segment, given its historical capital losses. She also sought confirmation on her takeaways from the assumption review: no negative cash impact, future cash generation from rate increases, and reduced risk of future charges by removing certain assumptions.

Answer

Tim Arnold (Heads of Colonial Life and Voluntary Benefits Lines) explained that reporting earnings for the entire entity is a requirement, and they segment LTC as a closed block, focusing on its capital needs, which are currently none and not foreseen. CFO Steve Zabel added that while statutory reporting separates the closed block, GAAP requires segment reporting. Arnold confirmed Burdis's takeaways on the assumption review, agreeing that it creates less risk from less controllable assumptions and bolsters controllable ones like rate increases to generate value and cash.

Wilma Burdis inquired about the drivers behind the strong remeasurement gains in both life and health segments, and the expected future trends for these gains.

Answer

Tom Kalmbach, CFO, explained that favorable life mortality and lapse experience, along with positive health experience, are contributing to quarterly remeasurement gains. He anticipates continued life gains and an estimated $50-$100 million assumption remeasurement gain in Q3 2026. Health remeasurement gains are expected to be more volatile due to Medicare Supplement rate increases and unique reserve practices.

Wilma Burdis asked about the sustainability of strong sales growth, specifically if there are further tailwinds from branding, lead sharing, and sourcing efficiencies, and requested more detail on the drivers and expected trends of remeasurement gains in both life and health segments.

Answer

Matt Darden, Co-CEO, confirmed that there is still significant potential to unlock further efficiencies through ongoing technology investments in both agency and direct-to-consumer channels, aiming to enhance agent productivity and conversion rates. Tom Kalmbach, CFO, elaborated on remeasurement gains, attributing favorable life mortality and lapse experience to continued gains, with an anticipated $50-$100 million gain in Q3 2026. He noted that health remeasurement gains are more volatile due to the unique nature of Medicare Supplement and rate increases.

Wilma Burdis from Raymond James asked if M&A has become more attractive given the significant share buybacks and freed-up capital. She also inquired how the anticipated Q3 life reserve releases and ongoing mortality gains would flow through to earnings in future years.

Answer

Co-Chairman & Co-CEO J. Matthew Darden responded that while they remain opportunistic, share buybacks are still the most compelling use of capital. Executive VP & CFO Thomas Kalmbach and Co-Chairman & Co-CEO Frank Svoboda explained that while current mortality is favorable, the new baseline assumption is pre-pandemic levels. Future results will show continued gains only if mortality remains better than that baseline.

Wilma Burdis of Raymond James Financial asked if M&A has become a more interesting prospect given the significant share buybacks and anticipated capital being freed up. She also inquired about the future impact of mortality trends, asking how the expected Q3 reserve release and ongoing remeasurement gains would flow through in subsequent years.

Answer

Co-Chairman & Co-CEO J. Matthew Darden responded that M&A remains opportunistic and must fit their organic growth strategy, noting that share buybacks currently offer a compelling use of funds. On mortality, Executive VP & CFO Thomas Kalmbach explained that if recent favorable mortality experience continues, it would lead to further remeasurement gains against the new baseline assumptions. Co-Chairman & Co-CEO Frank Svoboda added that if mortality reverts to long-term assumptions, life margins would likely stabilize around 41%.

Wilma Burdis of Raymond James Financial inquired if M&A was becoming more attractive given the significant capital returns and future flexibility, and asked how the ongoing favorable mortality gains would flow through earnings in future years.

Answer

Co-Chairman & Co-CEO J. Matthew Darden responded that M&A remains opportunistic and that stock buybacks are currently a more compelling use of capital. Executive VP & CFO Thomas Kalmbach explained that since recent mortality is favorable to their new pre-pandemic baseline assumptions, continued remeasurement gains could emerge next year if the trend persists. Co-Chairman & Co-CEO Frank Svoboda added that long-term margins are expected to normalize around 41%.

Wilma Burdis asked for further details on Blue Owl's fundraising momentum in Q1 2026, seeking color on trends observed in both the retail and institutional segments.

Answer

CFO Alan Kirshenbaum referred to the earnings presentation, highlighting $42 billion raised in 2025, a record year for both institutional and wealth channels. For 2026, he noted a general stabilization in daily wealth flows and mentioned upcoming fund closes for Net Lease 7, GP 6, and Digital Infrastructure 4, along with continued growth from their wealth products, expecting similar fundraising levels to 2025.

Wilma Burdis asked for more color on Blue Owl's fundraising momentum in Q1 2026, specifically what they are observing on both the retail (wealth) and institutional sides.

Answer

CFO Alan Kirshenbaum noted that Blue Owl achieved record fundraising of $42 billion in 2025 across both institutional and private wealth channels. For Q1 2026, he reported a general stabilization in daily flows for wealth products, which is encouraging. He anticipates another year of similar fundraising levels in 2026, driven by ongoing efforts with Net Lease VII, GP VI, Digital Infrastructure IV, and their five wealth products (OCIC, OTIC, ORENT, ODIT, LLCX).

Wilma Burdis asked about Horace Mann's investment in the Supplemental and Group segment, focusing on sales, margins, and the trajectory of the benefit ratio, especially after favorable 2025 results. She also questioned how softening reinsurance pricing factors into the 2026 margin outlook.

Answer

Marita Zuraitis, President and CEO, expressed satisfaction with the momentum in Individual Supplemental and Group Benefits, citing record sales, increased agent numbers, strategic product development, and infrastructure modernization. Ryan Greenier, Executive Vice President and CFO, clarified the blended benefit ratio target of 39%, noting that Individual Supplemental's high-twenties ratio in 2025 was better than expected due to favorable morbidity, and that increased sales and normalizing utilization would move it closer to long-term averages. Ryan Greenier also explained that favorable reinsurance rates were used to increase property catastrophe tower coverage, resulting in flat total reinsurance spend for 2026.

Wilma Burdis asked about the investment in the supplemental and group segment, how sales and margins are playing out, especially after a favorable benefits year in 2025, and if the benefit ratio is expected to continue to rise towards the 39% blended guidance. She also inquired if the softening of reinsurance pricing factors into the 2026 margin outlook and requested further color.

Answer

CEO Marita Zuraitis expressed satisfaction with the progress in individual supplemental and group benefits, noting excellent earnings diversification and strong sales momentum (IS up 40%, Group up 33%). She detailed the strategic approach involving product relevance, expanded distribution, and infrastructure modernization. CFO Ryan Greenier clarified the blended benefit ratio target of 39%, noting that individual supplemental's high-20s ratio in 2025 was better than expected due to favorable morbidity, and that increased sales and normalizing utilization would move it closer to long-term averages. He also explained that favorable reinsurance rates were used to purchase additional coverage at the top of the tower, keeping total annual reinsurance spend flat year-over-year and incorporated into the outlook.

Wilma Burdis asked for insight into Voya Financial's loss pick for the January 2026 Stop Loss business, combining the 24% rate increases, 20% medical trend, and benefits from risk selection, and inquired about the factors contributing to exceeding the 2025 cash generation target, specifically if reserve releases on the 2024 Stop Loss business played a role.

Answer

Mike Katz (CFO, Voya Financial) reiterated that medical trend is in the high teens to 20% range, with continued improvements in risk selection. He stated that the ultimate loss pick for January 2026 will be determined in April after assessing Q1 experience, but the business is being priced to return to target loss ratio ranges. Heather Lavallee (CEO, Voya Financial) confirmed that reserve releases on the 2024 Stop Loss business had a net favorable effect on 2025 cash generation. She emphasized that exceeding the cash generation target was a portfolio story, significantly driven by the retirement business, successful OneAmerica integration, and investment management performance.

Wilma Burdis asked for insight into Voya Financial's loss pick for the January 2026 Stop Loss business, specifically how the 24% rate increases, 20% medical trend, and benefits from risk selection are being factored in. She also inquired about the specific factors that contributed to Voya exceeding its cash generation target for 2025, including any impact from reserve releases on the 2024 Stop Loss business.

Answer

Heather Lavallee, CEO, and Michael Katz, CFO, reiterated that medical trend is in the 'approximately 20% high teens' range and that risk selection continues to improve, particularly compared to the January 2024 block. They stated that the January 2026 business is being priced to be back within target loss ratio range, with a final judgment on the loss pick to be made in April after Q1 experience. Michael Katz, CFO, confirmed that net favorable prior period reserve releases for Stop Loss in 2025, along with overall EB improvements and expense management, certainly affected cash generation. Jay Kaduson, CEO of Workplace Solutions, added that the strong cash generation was a 'portfolio story,' significantly contributed by the retirement business (including the successful OneAmerica integration) and investment management.

Wilma Burdis of Raymond James Financial sought more detail on the Blue Owl partnership, including how the offering works, future product plans, and potential for other alt-manager partnerships. She also asked about the fee structure and economic split for these products.

Answer

CEO - Voya Investment Management Matt Toms detailed that the Blue Owl partnership will focus on co-creating solutions, likely via CITs, that offer strong risk-adjusted returns net of fees for retirement plan participants. He noted that while Voya's platform is open, the primary focus is on building with Blue Owl. Regarding fees, Toms explained the model is akin to traditional active management, where the value proposition must justify the cost, and that the fee structure is still in development.

Wilma Burdis asked if macroeconomic volatility generally benefits WisdomTree's diversified business or if it's more dependent on specific themes, whether the digital asset growth strategy focuses on educating new users or capturing existing ones, and if new product development primarily uses internal expertise or outside talent.

Answer

Jeremy Schwartz, Global Chief Investment Officer, and Jonathan Steinberg, CEO, emphasized WisdomTree's broad diversification across asset classes and geographies, making it resilient in various market environments, citing growth in thematics and commodities. Will Peck, Head of Digital Assets, stated the digital asset strategy primarily targets clients already familiar with operating on-chain, leveraging regulatory clarity and growing wallet adoption. Jonathan Steinberg, CEO, explained that new product development largely utilizes existing internal talent and expertise, noting the business's scalability, but also mentioned strategic investments in firms like Quorus and AlphaBeta for enhanced capabilities.

Wilma Burdis asked if there's a short-term interest rate level at which more cash build would occur, if LPL is approaching that level, and how the Q4 2025 rate cuts might have contributed to the quarter's cash build.

Answer

President and CFO Matt Audette explained that average cash balances per account have been stable at around $5,000, which he believes is the necessary level to manage an account, suggesting a bias towards stable to upward cash sweep balances as rates come down. He attributed the Q4 cash build primarily to seasonal factors like rebalancing and tax-loss harvesting, rather than individual rate cuts.

Wilma Burdis questioned if LPL Financial is approaching a short-term interest rate level that would lead to more cash build, and how the rate cuts in Q4 2025 might have contributed to the cash build in that quarter.

Answer

President and CFO Matt Audette explained that average cash balances per account have been stable around $5,000 for some time, suggesting these are necessary levels for account management, leading to a bias for stable to upward cash sweep balances as rates decline. He attributed the Q4 build primarily to seasonal factors like rebalancing and tax-loss harvesting, rather than individual rate cuts.

Wilma Burdis asked for more color on Ameriprise's Q4 2025 flow results and expectations for early 2026, specifically noting the recruitment of 91 advisors in Q4. Wilma Burdis also inquired about Ameriprise's future buyback strategy and the optimal use of its $2.1 billion in excess capital, especially in the current environment.

Answer

CFO Walter Berman confirmed good results in organic recruiting and retention, acknowledging seasonality but emphasizing positive traction in fundamentals. Chairman and CEO Jim Cracchiolo highlighted the company's opportunistic approach to buybacks, noting the strong Q4 capital return. He indicated that returning 85%-90% of operating earnings through dividends and buybacks is a good target range for 2026, reflecting investment in businesses and shareholder value.

Wilma Burdis asked for more insight into Ameriprise's flow expectations for early 2026, considering the recruitment of 91 advisors in Q4 2025. She also inquired about the future strategy for share buybacks and the optimal use of the company's $2.1 billion in excess capital, especially given the current market environment.

Answer

CFO Walter Berman indicated that organic drivers, recruiting, and retention are showing good results, but noted the presence of seasonality. Chairman and CEO Jim Cracchiolo stated that Ameriprise would remain opportunistic with buybacks and dividends, confirming comfort with capital generation in 2026 and reiterating an 85%-90% range for total capital return (dividends and buybacks) as a good measure.

Wilma Burdis inquired about the lower flow activity in the wealth management business, asking if it indicates an overheated market or irrational pricing. She also asked if potentially over-leveraged advisor roll-up operations could present future opportunities for Ameriprise.

Answer

Chairman and CEO Jim Cracchiolo attributed lower flow activity to a combination of factors, including strong client engagement, rebalancing, high cash balances, and the competitive recruiting environment, emphasizing Ameriprise's balanced, long-term approach. He confirmed that over-leveraged advisor roll-up operations absolutely present a future opportunity, highlighting Ameriprise's sound fundamentals, strong margins, and long-term investment strategy.

Wilma Burdis asked for more detail on Ameriprise's forward-looking recruiting strategy and inquired about how clients are positioning their portfolios, particularly regarding annuities and their willingness to deploy cash.

Answer

Chairman & CEO James Cracchiolo stated that the recruiting pipeline has increased and their strategy focuses on the firm's total value proposition, not just large financial packages. He noted that clients are showing continued interest in structured annuities and variable annuities without living benefits, which Ameriprise is focused on providing as complementary retirement solutions.

Wilma Burdis from Raymond James Financial asked for more details on Ameriprise's forward-looking recruiting strategy and how clients are positioning themselves, particularly regarding annuities and their willingness to deploy cash.

Answer

James Cracchiolo, Chairman & CEO, stated that the recruiting pipeline has increased, with a focus on the firm's total value proposition, including technology and support, rather than just large signing bonuses. He also noted that clients continue to show strong interest in structured and variable annuities without living benefits, driven by retirement and tax planning needs.

Wilma Burdis from Raymond James inquired whether any of the positive assumption updates in MetLife's Asia segment were ongoing.

Answer

John McCallion, CFO of MetLife, clarified that the positive assumption updates recognized in the Asia segment were generally one-time in nature.

Wilma Burdis asked about the forward timing and impact of the Mexico tax law change and whether any positive assumption updates in Asia were expected to be ongoing.

Answer

Eric Clurfain, Regional President of MetLife Latin America, explained that the Mexico tax law change, affecting health products, resulted in a notable charge in Q3 2025, with lesser impact in 2026 and little to no impact by 2027, as they adjust rates and implement management actions. He emphasized the market's resilience and the temporary, isolated nature of the impact. John McCallion, CFO, confirmed that the positive assumption updates in Asia were generally one-time in nature.

Wilma Burdis of Raymond James Financial inquired about the expected EBITDA improvement from exiting the international real estate business, the margin profile of net flows, the full quarterly impact of the Kontoor acquisition, and the strategy for recruiting advisory teams.

Answer

CFO Michael Harrington confirmed the real estate exit would remove a quarterly EBITDA drag of approximately $2 million. CEO Michael Tiedemann explained that the ROA on international inflows is accretive, while U.S. flow profitability varies by client size. He also noted the Kontoor acquisition's focus is on converting clients to higher-margin mandates and that Alti is actively pursuing recruitment opportunities where there is a strong cultural fit.

Wilma Burdis of Raymond James asked for clarification on whether recent hedging actions contributed to the modest increase in Total Adjusted Capital (TAC) in Q2. She also inquired about the company's appetite to continue its strong sales momentum.

Answer

Executive VP & CFO Edward Spehar clarified that the TAC increase was not due to hedging actions but rather a 'divergence' effect in the VA framework where reserves declined more than the total asset requirement in a strong market, muting the impact of the normalized statutory loss. President & CEO Eric Steigerwalt confirmed there are no changes to the company's new business strategy and that the third quarter was off to a nice start.

Wilma Burdis requested more detail on the progress of hedging the legacy block and asked about the mechanics of the share repurchase program, noting the activity in April.

Answer

CFO Ed Spehar explained the stand-alone hedging approach for new business but declined to provide specifics on the legacy block strategy to protect the company's market position. CEO Eric Steigerwalt detailed the recent repurchase amounts ($59 million in Q1, $26 million through May 6) and reiterated that the company does not provide forward-looking guidance on buybacks.

Wilma Burdis of Raymond James asked if recent earnings noise was deal-related and if results would stabilize post-transaction. She also inquired about the FABN program and any potential drag from deploying proceeds.

Answer

CFO Robin Raju confirmed that with the RGA deal closing and reducing mortality volatility by 75%, results should become more stable and predictable. Regarding the FABN program, he stated that the in-house capabilities of AllianceBernstein allow for efficient deployment of proceeds, enabling them to achieve attractive IRRs above 15% without a drag.

Wilma Burdis asked if the data breach during the quarter caused any pause in U.S. sales. She also inquired whether Aflac is exposed to rising cancer treatment costs and if this could increase the attractiveness of its fixed-benefit products.

Answer

Virgil Miller, President of Aflac, stated there was no material operational or financial impact from the data breach. An unnamed executive confirmed that Aflac is primarily exposed to the frequency of diagnosis, not the severity or cost of treatment, due to the fixed-benefit nature of its products. Chairman & CEO Daniel Amos added that Aflac updates its products to cover new treatments, which helps drive additional sales to existing accounts.

Wilma Burdis of Raymond James asked if the recent data breach impacted U.S. sales and whether Aflac's fixed-benefit product structure insulates it from rising cancer treatment costs, potentially increasing product attractiveness.

Answer

Virgil Miller, President of Aflac, confirmed the data breach had no material impact on operations or financials. An executive then explained that Aflac is exposed to the frequency of cancer diagnoses, not the severity or cost of treatment. CEO Daniel Amos added that Aflac continually updates its products to cover new treatments, which creates opportunities to sell additional coverage to existing clients.

Wilma Burdis of Raymond James Financial asked if higher costs from advanced healthcare treatments could eventually be offset by savings in life insurance claims. She also inquired about RGA's confidence in its reserving for the remaining weakness in the excess healthcare business.

Answer

EVP & Global Chief Risk Officer Jonathan Porter and President & CEO Tony Cheng agreed with the premise, noting that medical advances support their diversification strategy and could benefit long-term mortality. Porter also affirmed confidence in their current reserves for earned premium, while Cheng reiterated that the block is short-term and will be repriced.

Wilma Burdis asked about the outlook for mortality and the ability to reprice the Equitable block.

Answer

EVP Jonathan Porter noted encouraging trends in general population mortality and potential benefits from GLP-1s. CEO Tony Cheng explained the initial repricing using RGA's pricing assumptions.

Wilma Burdis asked about freeing capital from morbidity margins in Japan and why Prismic reinsured a recent block of business rather than a legacy one more punitive under ESR. She also asked if 2025 EPS growth would be at the low end of the 5-8% target range.

Answer

Vice Chairman Rob Falzon explained the reinsured block was a long-duration, dollar-denominated product that is strained under ESR, making it a perfect test case to build credibility for third-party deals. Head of International Businesses Andy Sullivan noted morbidity is within expectations. CFO Yanela Frias confirmed that due to near-term headwinds, 2025 results would likely reflect a greater impact from those headwinds than later years in the forecast period.