BHF earnings call for the period ending September 30, 2018.
I would now like to turn the presentation over to David Rosenbaum, Head of Investor Relations. Mr. Rosenbaum, you may proceed.
Good morning, and thank you for joining Brighthouse Financial's third quarter 2018 earnings call. Our earnings release, presentation, and financial supplement were released last night and can be accessed on the Investor Relations section of our website at brighthousefinancial.com. We encourage you to review all of these materials, and we will refer to the slide presentation in our prepared remarks.
Today, you will hear from Eric Steigerwalt, our President and Chief Executive Officer, followed by Anant Bhalla, our Chief Financial Officer. Following our prepared comments, we will open the call up for a question-and-answer period. Also here with us today to participate in the discussions are other members of senior management.
Our discussion during this call will include forward-looking statements within the meaning of the federal securities laws. Brighthouse Financial's actual results may differ materially from the results anticipated in the forward-looking statements as a result of risks and uncertainties, including those described from time to time in Brighthouse Financial's filings with the US Securities and Exchange Commission. Information discussed on today's call speaks only as of today, November 6th, 2018. The company undertakes no obligation to update any information discussed on today's call.
During this call, we will be discussing certain financial measures that are not based on generally accepted accounting principles, also known as non-GAAP measures. Reconciliations of these non-GAAP measures on a historical basis to the most directly comparable GAAP measures and related definitions may be found on the Investor Relations portion of our website, in our earnings release, slide presentation, or financial supplement. And finally, references to statutory results are preliminary due to the timing of the filing of the statutory statements.
And now, I'll turn the call over to our CEO, Eric Steigerwalt.
Thank you, David, and good morning, everyone. I'm very pleased with our results in the third quarter of 2018, including our strong adjusted earnings performance and outstanding quarter-over-quarter sales growth. I also feel very good about our progress relative to our plans.
In August, our Board of Directors approved a $200 million stock repurchase program, our first as an independent publicly traded company, and significantly ahead of our base case scenario. I'm pleased to announce we repurchased approximately 982,000 shares in the third quarter, and an additional 523,000 shares in October, or approximately $64 million of our stock cumulatively. As of the end of October, we have utilized approximately 32% of the authorization.
I'm going to focus the remainder of my comments today around the progress we have made with respect to our top priorities for 2018. As a reminder, the top priorities are; first, we are focused on exiting our transition service agreements or TSAs with MetLife. Exiting TSAs supports our goal of reducing our overall cost structure as a stand-alone company. Second, we are enhancing our distribution platform and network, and developing new products that respond to the evolving needs of our advisors and the clients that they serve. And third, we are actively managing through NAIC variable annuity capital reform and growing our earnings power.
Let's begin with the TSAs. Exiting TSAs with MetLife and replacing them with more cost-effective solutions is essential to executing on our strategy. We began the year with 147 TSAs remaining, and we expect to end the year with approximately 85, demonstrating significant progress toward solidifying the Brighthouse operating platform.
Second, product and distribution. I am very pleased with our annuity sales results in the third quarter of 2018. Annuity sales of over $1.5 billion were up 43% quarter-over-quarter, our highest level of sales since we became a public company, driven by strong sales of our Shield product and our fixed indexed annuity. Sales of Shield annuities were $867 million in the quarter, up 33% quarter-over-quarter. The growth in annuity sales reflects the strength of our distribution relationships and the ongoing momentum from our branding initiatives.
We are continuing to see excitement from our long-standing distribution partners, but we are also continuing to see inbound interest from distributors with whom we do not currently have a relationship. And we're working with all partners, both current and prospective, to continue to make our distribution network as broad as possible as we help consumers in the United States achieve financial security.
In September, we broadened our annuity product offering with the launch of two new fixed annuity products. As interest rates rise, demand for fixed annuities increases, making this an important enhancement to our product portfolio. As part of the development of these products, we entered into a reinsurance agreement with a theme to launch products that are very competitive in the market. The early feedback from our distribution partners has been very positive.
Turning to life insurance, as we have discussed in the past, life insurance is an important market for us to be in, and we are following a strategy that we believe will help us reestablish a competitive foothold in this space. We have made good progress with the development of our forthcoming life products and are pleased that it has been approved in 46 states so far. We are still targeting a launch of this product by the end of this year.
Turning to our third quarter results, our key financial highlights for the third quarter are summarized on slide three of our earnings presentation. Adjusted earnings were strong in the quarter and improved from the second quarter. As we highlighted last quarter, the key drivers to improved performance in the second half of the year are equity market returns, investment results, lower expenses, and lower severity in universal life with secondary guarantees. All of these drivers performed in line with or better than our expectations in the third quarter.
Our corporate expenses were $242 million in the quarter, down $46 million sequentially and consistent with our expectations. Corporate expenses in the first 12 months post separation were approximately $1.05 billion, and we still expect to reduce these expenses by $150 million by the end of 2020.
We are also making necessary investments in our technology, infrastructure, and in our businesses. We refer to these investments as establishment costs. In the third quarter, establishment costs were approximately $87 million pre-tax.
Finally, we incorporated the new variable annuity capital reform framework and lower tax rate of 21% in our calculation of CTE95 and 98 during the quarter. Variable annuity assets were more than $600 million above the new CTE98 calculation as of the end of the third quarter. The result is in line with our expectations, given favorable markets in the third quarter. We anticipate providing our variable annuity capital level relative to CTE98 on a qualitative basis until we implement the new framework into statutory reporting, which we hope to do in 2019. At that point, we will likely transition to a risk-based capital disclosure.
To wrap up, we are very pleased with the results in the quarter and the continued execution of our strategy. Our sales and annuities were very strong and our operational performance in the quarter was very good, highlighted by improved adjusted earnings.
With that, I'll turn the call over to Anant to discuss our third quarter financial results in more detail. Anant?
Thank you, Eric, and good morning, everyone. Let me start with the third quarter results and provide some perspectives on the key underlying themes, beginning on slide four. Adjusted earnings excluding the impact from notable items were $314 million in the quarter compared to adjusted earnings on the same basis of $197 million in the second quarter of 2018 and $294 million in the third quarter of 2017.
The Annuities segment continues to perform well and results in the Life segment were strong. There were three notable items in the quarter lowering adjusted earnings by $44 million after tax or $0.37 a share. The notable items included establishment costs of $69 million after tax, a $121 million after-tax net unfavorable impact from the recapture of reinsurance treaties, almost entirely impacting the Run-off segment, and a $146 million after-tax net favorable impact to adjusted earnings from our 2018 annual actuarial review, which is done each year in the third quarter. The total impact to net income from the annual actuarial review was an unfavorable $32 million after tax.
Let me provide some additional color on our annual actuarial review. Over the last couple of years, including 2017, as our first year performing the review as a stand-alone company, our actuarial reviews have focused on two themes; first, harmonizing the assumptions between GAAP and statutory accounting, and second, updating our actuarial practices. This involved being informed by the richest possible set of data available in the market on client behavior, including the quantitative impact study, or QIS, conducted as part of the NAIC's variable annuity reserve and capital reform initiative.
These efforts resulted in Brighthouse being well positioned with what we believe to be prudent, conservative behavior assumptions. These assumptions include annuitization election rates of 2% for post-retirement age GMIB contract holders and 1.5% lapse rates for all deep-in-the-money living benefits. This year's annual actuarial review focused on three primary outcomes. First, reflecting the new NAIC rules for variable annuity reserves and capital in our management metrics of CTE95 and CTE98, resulting in alignment with the new framework. This includes lowering the long-term mean reversion assumption for the 10-year interest rate to 3.25%. Second, reflecting the new 21% tax rate consistent with the Tax Cuts and Jobs Act, resulting in a higher statutory total asset requirement. And third, performing the regular annual review of models and assumptions, thereby incorporating one more year of experience on all of our businesses.
Now I'd like to provide some perspective on four themes related to our adjusted earnings this quarter. The first theme is the investment portfolio. Net investment income was higher sequentially, primarily driven by an increase in alternative investment income, the investment portfolio repositioning that we started in the first quarter and growth in assets. Alternative investment income was approximately $19 million after tax or $0.16 per share higher than the four-quarter historical average for 2017 as seen on slide five. Through the third quarter, we have repositioned approximately $4.4 billion of treasuries into higher-yielding spread assets.
The second theme is the impact of strong markets on earnings. Separate account returns were approximately 3% in the quarter and above our base case assumptions by approximately 1.4 percentage points. This market outperformance relative to the base case resulted in higher fee revenues, lower reserves, and lower DAC amortization, adding up to a favorable impact to adjusted earnings of approximately $15 million after tax or $0.13 per share as seen on slide five.
Let me also shed some more light on the underlying fund mix in our separate accounts, which drives the separate account return. Approximately one-third of our funds are bond-like in nature, while the remaining two-thirds are across equity indices, including large caps such as the S&P 500 and NASDAQ, mid-caps such as the Russell 2000, and international funds such as the MSCI EAFE. Hence, our separate account return of 3% in the third quarter is consistent with this type of fund mix.
The third theme for the quarter that I would like to discuss is expenses. Corporate expenses were $242 million in the quarter, down approximately $46 million pre-tax sequentially, consistent with our expectations. On an after-tax, per-share basis, that translates to a $0.30 per share sequential impact.
The final theme for the quarter is life insurance claims. Third quarter results improved from the second quarter, driven by both lower frequency and lower severity of claims, and in aggregate, were in line with our expectations.
Now turning to adjusted earnings at a segment level, which exclude the previously mentioned notable items, adjusted earnings in the Annuities segment were $247 million in the quarter. Sequentially, results benefited from higher net investment income, lower expenses, and favorable taxes. Adjusted earnings in the Life segment were $50 million in the quarter. Sequentially, results benefited from lower expenses. Adjusted earnings in the Run-off segment were $35 million in the quarter. Sequentially, claims and expenses were lower and net investment income was higher.
As we've mentioned previously, claim results can fluctuate from quarter-to-quarter. We still expect the run rate of adjusted earnings in this segment to be in the $15 million area per quarter with possible variation quarter-to-quarter. Corporate and other had an adjusted loss of $18 million. Sequentially, expenses were lower and taxes were favorable.
In closing, let me provide an update on our balance sheet position and our variable annuity hedging as of September 30th. First, we feel very good about our capitalization levels, including a stock repurchase program in place, supported by excess cash at the holding company. Variable annuity assets were in excess of CTE98 by more than $600 million, reflecting the impact of both the new variable annuity capital reform and the lower 21% tax rate. Going forward, as we manage variable annuity assets at or above a CTE98 level in normal markets, in 2019, we will likely transition to talking about capitalization in the context of a total company RBC ratio basis, which will include CTE98 for variable annuities in that calculation.
Second, our hedging program is working and delivering results in line with our expectation for the market movements in the quarter. Third, statutory total adjusted capital was $6 billion or in line with the prior quarter. This reflects the existing variable annuity reserve requirements, which we expect to sunset with the potential early adoption of the NAIC capital reform for statutory reporting by year-end 2019.
Fourth, holding company liquid assets were approximately $600 million, primarily reflecting our issuance of junior subordinated notes in September, a capital contribution to Brighthouse Life Insurance Company from the issuance of proceeds, in addition to share repurchases in the quarter. We believe the capital contribution positions us well to begin reducing hedge costs further next year. And finally, financial leverage was approximately 23.5%.
With that, we'd like to open up the call for questions.
Thank you. (Operator Instructions) And our first question comes from Elyse Greenspan with Wells Fargo. Your line is open.
Hi, thanks. Good morning. My first question, so in terms of as we think about investment income going forward from here, you guys highlighted the repositioning of the investment portfolio. Is this quarter kind of a good run rate to think about going forward or any other one-timers other than the stronger alternative investment income you guys pointed to?
Hi, this is John Rosenthal. As Anant pointed out, this quarter benefited from higher alts, higher average asset growth and our repositioning. Alts was predominantly the key contributor to the increase. I think going forward -- as you know, alternative income is very difficult to predict quarter-to-quarter. I think having said that, we wouldn't expect alternatives in Q4 to reach the elevated levels that they reached in Q3. However, net investment income will continue to benefit from portfolio repositioning, higher asset growth, and investing at higher interest rates.
Okay. And then you guys -- the ROE picked up and the results were stronger in the quarter. Is it -- is the assumption that you guys still expect full year earnings to come in in line with that previous $8.50 to $9 per share range?
Good morning, Elyse. It's Eric Steigerwalt. So let me answer that question, and then I'm going to actually add a little, maybe longer-term strategic context for everybody. First, it's not that often that we have equity markets like October, but as long as markets do reasonably well for the rest of the year, I think that range is still appropriate. That's why we broke out the excess returns in the presentation for the third quarter so that you can get a sense of how slightly abnormal markets affect us. Now, obviously, we'll take a pretty good market to be at the top of the range.
More importantly, on our December investor call, we will talk about, like a longer-term base case earnings growth percentage, OK? And we expect that to be in the higher range than our current mid to high-single digits. So we'll talk about that in early December. And we're going to lay out our expense plans, our investment portfolio repositioning, and our product strategy so that you'll see the drivers of that EPS growth.
I might as well just add, because I know the question is coming here, with respect to assets above CTE98, post the third quarter, so post October, roughly where we stand today, we believe we're still well in excess despite the October equity market performance. However, again, it might be valuable to make a few strategic comments. As Anant said, and as we've said before actually, in the near future, in 2019, we intend to begin operating within a range of RBC levels, and I'm looking forward to discussing that with you as soon as we can. As I've said before, we intend to be a consistent returner of capital across market cycles, and all of our efforts are centered around being able to adopt to be a capital reform in 2019 to that end. So I hope I answered your actual question, but I thought that that additional strategic context might help everybody.
Okay, great. That's helpful. One last question. Corporate expenses, lower than what was applied by your run rate in the quarter. Is that -- should we assume that they will continue to go down from this quarter's level?
Anant and I are battling as to who gets the go here. So I'll start and you can jump in Anant. Look, again, strategically, they absolutely are going to go down. We are going to hit that $150 million goal, period. Obviously, there is quarterly fluctuations. Generally a lot of companies have higher expenses in the fourth quarter, but we're very focused on this, and it's a little bit different for us in that we are on a journey over time here to lower expenses year after year after year. So the third quarter is a reasonable run rate. It could fluctuate a little bit around that, but you're certainly not going to see dramatically higher expenses in the fourth quarter.
Thank you. Our next question comes from John Nadel with UBS. Your line is open.
Yeah. Hey, good morning. So Eric, you sort of touched on the October market decline, and my question was going to be how much volatility you expect that we could see in that capital level above CTE98 as you think about some of the drivers including equity market performance?
Well, John, as you know, the markets are going to move around. We all know that. Our goal is to be in a position both with managing the CTE98 sort of in any regular market environment and then having our CTE95 floor in more severe markets that little fluctuations are not going to stop, I mean, I'm assuming that you're headed toward capital return, and what happened in October will have zero effect on our share repurchases. We will continue to repurchase stock. I can follow up if you want to direct us further.
Yeah. No. I'll follow up offline to get maybe a little bit deeper into the weeds, but I guess that's what I'm sort of trying to understand. You guys have laid out at the spin-off that over time you would take on more risk, effectively your own deductible, if you will, and just trying to understand how much that whole theme may have changed as a result of the VA capital reform.
Yeah. I'll add a little; Anant, you can jump in there. Look, we put a couple of hundred million down into the operating company. That positions us even better with respect to that deductible going forward. So there is sort of two pieces to that, keep in mind. But secondarily, over time, I've said and I will continue to say, the goal is to be a consistent returner, OK? So I sort of think of like we're transforming the company. We've come a long way in the last couple of years. And as we continue to execute on this strategy, the goal is to be more consistent with respect to returning capital, and again, it seems to be the overall notion of your question.
Yeah. Understood. And then just maybe two quick ones, one for John and one for Anant. John, could you tell us what the private equity annualized return was in the quarter? And then Anant, if we look at the year-to-date effective tax rate on an operating basis, it looks like it's about mid-13% range. That's definitely below your high teens expectation. I'm just wondering whether this is more reflective of the level we should expect going forward, or is this just a matter of timing and we should expect the high teens rate as we look out to 2019 and beyond? Thank you.
I'll take the easy one. It's John. The actual return or the absolute return for the quarter was 4%. So the annualized return was about 16%, which is higher than we would normally expect, John.
And hi, it's Anant. On the tax rate, you're right. We came in on the lower end of our range. We actually expect to be at that lower end of the range for the rest of the year, but as earnings go up, we'll be at the upper end of the range.
Thank you. Our next question comes from Ryan Krueger with KBW. Please go ahead.
Hi, thanks. Good morning. I assume you'll give us updated variable annuity cash flow scenarios in the 10-K again this year. I was hoping to get some perspective on, I guess, how meaningful do those change or get impacted by the new NAIC VA reform? And then related to that, I guess, yields, I believe you said you'll reflect the 3.25% long-term tenure going forward as well.
Hi, Ryan, good morning. The answer to your second question is yes. The 3.25% long-term tenure treasury is already reflected in our numbers with our annual actuarial review this year. So when we say we are at CTE98 plus more than $600 million, that's already factored in. To your first question on sensitivities, we will update them as we update our 10-K, but let me take a step back adding on to the earlier answer and how we think about it. Our hedging strategy is not changed. We're doing exactly what we laid out, diligently executing it, and protecting the floor level while managing capital with an RBC range with 98 going -- CTE98 going into that calculation, which means we will grow our -- what we've colloquially called a deductible or asset -- or a shock absorber from $1 billion up to $1.5 billion and then up from there to $2 billion. We're on path to doing that. I'll take any follow-on, but I thought that would be helpful context.
Thanks. I -- separate question actually. In terms of the legacy SQL, do you see now that you could free up any reserves through either reinsurance transaction or renegotiating the captive with the regulator?
It's a little hard to hear you, Ryan, but I think your question was freeing up capital from the ULSG block. Was that what you said?
Yes, right. And I guess either through insurance or renegotiating the terms of the captive with the regulator.
Okay. So yeah, there is certainly a possibility it will happen over time because it needs regulatory approval et cetera. So again, like we've said many times, there could be potential opportunities. It's just one of the arrows in the quiver. It's not something that's going to happen tomorrow, but over time, yeah, there could be some capital potentially freed up with respect to the ULSG block.
Thank you. Our next question comes from Erik Bass with Autonomous Research. Please go ahead.
Hi, thank you. It sounds from your comments that you feel pretty confident about being able to early adopt the new NAIC framework in 2019. If you can, would this enable you to potentially contemplate an extraordinary dividend from BLIC in 2019?
Erik, it's Anant. We can do an extraordinary dividend even without early adopting it, but yes, the short answer is yes, and we feel very good about that.
Okay. And then Anant, do you have any perspective, realizing it's early on the new GAAP accounting standards that will come into effect and the potential implications for Brighthouse?
It is pretty early to talk about that. It's an effective date of 2021. What I would say is it does not impact our stat results. We don't expect it to impact our plans for capital return. We as a management team have demonstrated with VA stat reform that we can successfully navigate through regulatory and accounting changes. And finally, we believe we are very well positioned with a leverage ratio that's in the low to mid-20s, low relative to rating agency expectations for a single year financial strength rating. So we feel good about our ability to navigate things over time.
Thank you. Our next question comes from Andrew Kligerman with Credit Suisse. Please go ahead.
Hey, good morning. With regard to the $600 million plus in excess of CTE98 versus what was quoted as $500 million plus the last quarter, what if the market were locked in today where it is now down since the quarter started? Would you be back at the $500 million plus? Where do you think you would be?
Andrew, like I said before, I think on the first question, and I'm going to try not to get into this like on a weekly basis OK, but we would still be well in excess.
Okay. I'll leave it at that. And then with regard to the portfolio repositioning, how much more do you have to go? And what types of securities do you want to do with the remainder of this repositioning?
$4.4 billion pf treasuries. We're continuing to rotate out of treasuries and to spread assets. That's the predominant portion of our repositioning. And we will provide more details about the size of the program, its timing and the ultimate income pickup during our call next month.
I mean, is it more than $1 billion? I mean, what kind of spread assets are you looking at?
Remaining, more than $1 billion, is that what you're asking?
There's more to go, and we'll talk about exactly how much or relatively how much next month, and we're investing in our really high-quality, well diversified normal asset mix. So nothing unusual on the reinvestment side.
Okay. And Eric, just one last one. You'd talked last quarter about being measured and prudent in terms of the buyback, and certainly at $40 million plus, that was sort of a quarter of your -- or close to a quarter of your $200 million. And then you did that $300 million plus debt offering, so I thought you might accelerate that. Is there a chance you might want to accelerate the buyback as we move forward?
Okay. Look, it's worked pretty well for us during the period that we've repurchased. The stock has been up and down, and we've got pretty nice dollar-cost averaging there. I would expect it to be, just like we're doing now, a measured, but consistent repurchase plan.
Thank you. Our next question comes from Josh Shanker with Deutsche Bank. Please go ahead.
Yeah. Good morning, everyone. Curious if internally you have any goals around a timeline for turning to net positive flows in annuities. And if we were to think about losing $5 billion a year net flows of annuities that probably have higher capital charge, given that they're older vintages than the ones you're writing today, is that a capital and ROE positive event, losing those assets?
Yeah. Hey, it's Conor. Let me start on. I'm sure Eric may want to join in as well. So look, as we've discussed previously, we have a large book to begin with. Clearly, we had a good quarter in regard to flows. We're very pleased with the business that we're putting on both in terms of the quality of the business and the returns on that business. And as you know and as you acknowledged, much of what comes off is less profitable. So this isn't preventing us from expanding our profitable growth goals here.
Is it positive to lose those flows? Is that actually beneficial to you over time?
Much -- it's mixed. Much of it is. Now remember, some of the flows is just the normal course of what's happening (inaudible) annuitization. Some of it is surrenders, and a reasonable amount of those surrenders are positive to us because there are surrenders that are in the money, some of it is significantly in the money. So that helps us from a profitability and capital perspective.
Yeah, it's Eric. I would add to that. Look, I mean, we pray each day for lapses, OK, because over time that will affect your earnings growth, but the comment that I made at the beginning of this Q&A period, you're going to see pretty good EPS growth power out of Brighthouse in the December call, and that factors in the net flows, right, for years here. Having said that, there are some lapses that we prefer not to lose, but there are a meaningful amount that qualify for what you said, Josh, at the beginning of your question that in the end you'd have to say are sort of ROA or capital positive to us. So we're in a little different position maybe than some other companies here. So I hope that was -- we're trying to give you the balanced answer, but the answer to your original question is yes.
And is there an internal target for the idea of Brighthouse returning to a net positive flow company?
I don't have a target. Look, I've said this before. It's going to take a number of years, OK? Notwithstanding the fact that, as we just discussed, some of these lapses are actually positive for the company, but it's going to take a while. So I'm not ready to give out a target yet because we'd just sort of be a quarterly, while you're still a ways away from it. But overall, in December, you're going to see that despite the level of negative net flows, we've got some real EPS growth power here.
Okay. Thank you for the answers.
Thank you. Our next question comes from John Barnidge with Sandler O'Neill.
Thank you. I get it's a difficult thing to quantify, but some other companies did provide it last week. So maybe I'll ask the question this way. If last night was the quarter close, can you quantify how much of a headwind on an EPS basis the market would be to guidance?
Hey, John, it's Anant. No, we did give you the sensitivity, which was right, if you translate that, it'd be like $0.09 per 1 percentage point of separate account return. So I would just point you to that.
Okay. Thanks. And then how much of the growth in -- increase in fixed sales do you find benefiting from the market volatility versus maybe higher rates and better distribution? Thank you for your answers.
Yeah. This is Myles speaking. So if you take a look at sequentially, most of our growth has come from our Shield product as well as our FIA product that we distribute through MassMutual. If you look at the industry as a whole, in light of some volatility, you're seeing fixed products up. And as we mentioned earlier in the call, we just introduced two new fixed deferred products in September that we're optimistic we're going to be able to gain some sales traction with. So we like the fixed base; we're a player in the fixed base, and we're going to continue to focus on the fixed base moving forward.
Thank you. Our next question comes from Suneet Kamath with Citi. Your line is open.
Thanks. Good morning. So for Anant, on the CTE98, moving from $500 million plus to $600 million plus, over the course of the call, you talked about several pieces, changing the interest rate assumption, tax reform, VA capital reform and then a capital contribution. Can you help us think through sort of sizing those pieces as we think about a potential walk from 2Q to 3Q?
Good morning, Suneet. Happy to do so. So let's start with, we expected to be at CTE98 post VA reform, both the capital reform and the tax rate change, and making a capital contribution. We contributed $200 million down into the life company to that effect. We ended up with a better outcome with assets over $600 million above CTE98 due to strong business results. These were driven by two real factors. Approximately two-thirds of that came from market upside in the hedging program. So our hedging program is working very well. Frankly, over the last five quarters, we've had more than $1 billion of market upside by putting $1 billion of assets as a deductible. So that's really great results, a lot of that coming through this quarter as well. And the other third of the growth came from statutory net income, which, if you look at page 21 of the supplement, you'll see we had good core statutory -- returns and then market upside because of the hedging program. I can pause and take any follow-on you have on it.
And what was the impact of tax reform just on that CTE98 buffer?
Tax reform was actually a bigger driver, if you think about the assets above CTE98. It was actually closer to like more than half.
Sorry, more than half of what?
More than half of the impact of implementing VA reform.
Okay. Maybe I'll follow up afterwards. And then I think you had said that you maintained your lapse rate assumption at 1.5%, and I think there was some commentary around that being consistent with the study. But as I think about other companies, I think their lapse rate assumptions are less than 1%. So maybe if you could comment there, but also if you were to reduce the lapse rate to 1%, any sense of what the sensitivity would be in terms of required VA assets?
Sure. So you're right. As I said in my prepared comments, we've looked at not just one study. We've looked at every study that's out there and participated in the QIS as part of NAIC reform. We feel really good about our assumption changes on lapse, elective annuitizations and all of those that we've made. We hope everybody is actually feeling as good as we're feeling about it given the changes we've made. So I don't see us -- given where our data is and our experience is, as Conor and others mentioned, we have in-the-money policies lapsing, I don't see how we have to go lower than 1.5%.
Okay, but no sensitivity if you did?
It's sort of a hypothetical at this point of time, doesn't make intuitive sense because it's -- I don't see how the data would ever go there.
Thank you. Our next question comes from Tom Gallagher with Evercore. Your line is open.
Good morning. The first question is, you've been talking about how you're going to manage to a total RBC standard by the end of 2019, that's the goal. Right now I guess all we've talked about is VA CTE. What would a total RBC standard entail in terms of -- and the reason I'm asking is, obviously you have other businesses, other assets outside of VA. Would everything else, if you kind of characterize that separately, give you significant excess over the 400% RBC? If that's what you're going to be managing to or how should we think about that?
Let me start, and Anant, you can jump in. Hey, Tom, it's Eric. We're going through that with our Board now. So we're not going to get there until we adopt VA capital reform, but as you said and as I've said, we're hopefully going to do that for 2019. So we've got to come up with a range here of where we're going to manage the company with respect to RBC, and we're working that through as we speak literally. As you very well know, the VA capital reform makes RBC robust, right? So now you can sort of use that as a global metric for the whole company. So the idea is that we get to some sort of range that we will certainly make public where we want to manage this and that could give you some sense of if there's any dividendable excess capital at the operating companies. And then obviously, you'd take a look at what we've got at the holding company, and like many other companies, we hope to be able to give you a sense over time here of what we think our approximate excess capital position might be. Anant, you want to add anything?
I think you've covered it, but Tom, if you have any follow-ups, we are happy to take it.
Sure. So yeah, I guess just one follow-up to that. So Eric or Anant, at this point, would you say everything that's kind of measured outside of VA, is it -- does it look like it would be above -- would there be excess or it's not clear at this point? Just higher level, directional.
Yeah, Tom, it's Anant. We think of the company to be capitalized in the op-cos at like A rating level. So you should think of sort of RBC levels relative to that. And then going forward, as Eric mentioned, we'll be at 98, 98 plus, so we'll be at like $400 million, $400 million plus, and we need to come back to you guys on what that actual target is next year.
Okay. And then my other question is just on, Anant, I know you said -- you mentioned you're going to be shifting to lower hedging costs in 2019, is the plan. Would that primarily be focused on lower use of options? Because I think right now you're spending around $800 million a year on option premium. Is that the main area? Or would it be much more -- much broader in terms of how you would change the hedge program?
We would -- yes, we would grow the assets that act as a shock absorber from $1 billion to $1.5 billion in 2019. We're actually already working on that. And what it allows us to do is strike things to be a little more out of the money. So you still use an options-based program predominantly, but you go a little out of the money and you reap the benefits of that. And I'd sort of reiterate the point I made, the fact that we've had this option-based strategies allowed us to actually have the program allow us contribute $1 billion of upside in the last five quarters. That's really meaningful and we look to grow that.
Thank you. Our next question comes from Jimmy Bhullar with J.P. Morgan. Please go ahead.
Hi, thanks. Good morning. Most of my questions were answered, but I'm not sure if you mentioned what the impact of VA capital reform was on your assets above CTE98. How did that affect you? Can you quantify?
Good morning, Jimmy. Sure. So yeah, if the question is what was the impact of VA reform on our assets above CTE95 and tax, tax reform was a big driver of it. The combined impact of both of those was about $1 billion, driven majority by tax reform and then some amount by really the capital market changes, really nothing material other than those two to really call out, right? We went to 3.25%, and the biggest drop was coming from 21%. Net of that, we would have still ended up at CTE98 and we're at 98 plus more than $600 million because of the really strong business results for the two factors I gave in my answer to Suneet earlier.
Okay. And then on the Shield product, obviously you've seen pretty strong sales over the last several quarters. Are you seeing any impact on the business or are your expectations changing as competitors are coming out with similar products? Like Lincoln has a buffer annuity, many others are -- there are a few other companies that are thinking about coming out with something similar.
Hi, it's Myles again. No, we feel very confident about our current Shield product. Our advisors love the competitiveness of the product and its simple nature. We're continuing to bring on new distributors selling the product, further broadening distribution. And as always, we'll monitor the competitive landscape and we'll make changes if appropriate. We feel really good about our market position right now.
And then just lastly on buyback, so I think Eric alluded to this, but is it safe to assume that despite the market sort of volatility that we've seen recently that you're going to keep buying back stock in the near-term?
Jimmy, it is very safe to assume that.
Thank you. Our next question comes from Alex Scott with Goldman Sachs. Please go ahead.
Hi. First question was just on the GAAP changes to the actuarial review for variable annuities. I think you mentioned the election rate assumption is 2% now. Could you give us a feel for how that changed? I mean, that sounds kind of low, but I know annuitizations have been -- or elections of annuitizations have been pretty low. Just wondering like how much data you have on that and how big of a change it was.
So the good news on that, Alex, is -- great to hear your voice again. The good news is, there was no change on that. The data is coming in showing we're conservative relative to that and we actually made that change two years ago to 2% annuitization. So across-the-board, if you look at these assumptions, the data is coming in showing us we were proactive, we moved early, and were informed by the richest data available to make those changes. So really nothing material to call out with respect to actuarial behavior assumptions this year.
Got it. And then next question I had was just a follow-up on the hedge costs. I think the VA distributable earnings assumption -- estimates you guys have provided in the past suggest that maybe you'd get to a point where hedge costs were below the rider fees by, it looked like, maybe year four. So I mean, is that expected to significantly speed up? I mean, does that speed up to your two or three-year or do you think 2019 could be a year where hedge costs are actually below the rider fees?
Yeah. I wish they could be below the rider fees, but I think where we're thinking about them is, they're not going to be below the rider fees. They're just going to be in that $1 billion range, so slightly above the rider fees. So there is going to be some modest amount of drag from those fees, but still a meaningful amount of reduction, which will allow net income to emerge in addition to just operating income or adjusted earnings.
Last quick one. Did you guys say what adjusted statutory earnings were this quarter?
We did not, but they were around $700 million. Now, that's because largely our -- two-thirds of that coming from our hedge program and a third coming from core business earnings of around $200 million, which you can see in the supplement. So they were very strong, well above our plans, and in October, we would have probably given some of that back, but still a good year -- outcome for the year.
Thank you. And our last question comes from Humphrey Lee with Dowling & Partners. Please go ahead.
Good morning and thank you for taking my questions. Eric, in your prepared remarks, you talked about you expect the TSA would reduce to 85 TSAs by the end of the year. But as we think about the expense saves impact from these TSA terminations, how should we think about that for the fourth quarter and then maybe into 2019?
Sure, Humphrey. Good morning. It's kind of back-end loaded, to be honest with you. Like you're seeing expense decreases occurring here, and you're going to see more in 2019. The biggest piece will be end of '19 into '20 where we really get the leverage of getting off some of the largest ones. All of the smaller ones or even medium-sized ones are contributing to our ability to lower expenses like you saw in the third quarter. And again, there will be more of that in '19, but as you get near the end and into '20, then we get off the biggest ones.
Okay, so more good to hear on them. And then, I guess maybe shifting gear a little bit, so related to the recapture of the reinsurance in Run-off, can you provide some color in terms of the size of the recaptures? And then how should we think about the earnings impact or maybe the -- from a volatility standpoint, any colors you can provide would be helpful.
Humphrey, it's Conor. The size of the block is a $5 billion block from a (inaudible) perspective.
And I'll add into Conor's point of view is, as we moved this block of business really ULSG to Run-off in the fourth quarter of 2016, this is answering your point of view how to think about it on an earnings basis, it's all reflected now in the earnings. When we recapture a block of business, it changes our profit pattern, the present value of that change in profit pattern gets reflected in the reserves. There is no ongoing impact from it.
Thank you. And ladies and gentlemen, this concludes our Q&A session. I would like to turn the call back to David Rosenbaum for his final remarks.
Thank you, Carmen, and thanks to everyone for joining us today for our third quarter earnings conference call and for your interest in Brighthouse Financial. We look forward to speaking again during our investor outlook conference call on December 3rd, and again, thanks for joining today.
And with that, ladies and gentlemen, we thank you for participating in today's conference. This concludes the program, and you may all disconnect. Have a wonderful day.


In 2015-2016, Catholic Mission, Catholic Religious Australia and Catholic Earthcare Australia will host individual authors of The Francis Effect II book at public colloquiums across Australia. You are invited to come and participate in this opportunity to engage with Pope Francis' encyclical on ecology and creation, deepen your understanding of his challenge for each of us to protect the earth, dignify humanity and restore God's gift of creation.
Don't miss out on your chance to be a part of the discussion on how to incorporate Pope Francis' vision and challenge into your everyday life, in your work and in your community.
This colloquium will assist you to explore this vision, offering inspiration and practical ideas for caring for our Common Home.
The Francis Effect II Colloquium is a unique opportunity for any Catholic wanting to gain practical insight into how we might take up Pope Francis' challenge to become the generation of "humanity at the dawn of the twenty-first century [that] will be remembered for having generously shouldered its grave responsibilities" (LS 165).
It is for leaders within the Church and all those passionate about the mission imperative that calls us all to an ecological conversion to protect and care for all of creation.
Each participant will receive a copy of The Francis Effect II: Praised Be You – On Care for our Common Home, a book published by Catholic Mission, Catholic Religious Australia and Catholic Earthcare Australia in response to the Encyclical Laudato Si' - On Care of Our Common Home.


2 adult passes, free parking, free deluxe hot and cold breakfast, free WIFI, and 1 overnight accommodation.
Guests will receive one adult and one child admission to the LEGOLAND® Discovery Centre Toronto.
comfort & convenience at our Hotel in Brampton, Ontario.
Welcome to our Hampton Inn by Hilton Brampton Toronto hotel. Ideally located just west of Hwy 50 and Hwy 7 within the Greater Toronto Area, our friendly and inviting Brampton hotel is situated in Canada's economic and cultural center, just minutes from the Toronto Pearson International Airport. Have close proximity to the Embassy Grand Convention Centre featuring event space for up to 2,000 attendees. We are also within easy reach of many popular attractions such as the CN Tower, Rogers Centre, and Canada's Wonderland.
Stay at our convenient location near sporting venues for the Ontario Games this Summer and enjoy comfortable rooms at great rates.


This fall I had the pleasure of working with an awesome team of wedding professionals to capture some gorgeous images. I hope you enjoy these images as much as we enjoyed making them. The Homestead 1854 is an incredible venue in Plano IL. The Homestead is not only a charming setting but also provided all floral decor and food styling for this session. The Homestead is the perfect venue for anyone looking for a unique intimate setting as well as someone that can help you with absolutely every step in planning your special day. The Homestead truly does it all! Eclipse Salon provided hair and makeup and did a fantastic job. Gorgeous gowns from Complete Bridal by Bridal Boys. Thank you to my models Kelly, Christopher, Miguel and Alyssa. Thank you to my friends and fellow photographers who participated in this shoot. Please check out their beautiful work. Missy Donovan Photography, Ashley Klemm Photography, and KSB Photo.


The Blacksmith's Project Book presents 20 original intermediate and advanced projects for blacksmiths looking to further hone their skills and learn techniques from European master smiths. This book clearly explains the necessary steps and techniques for completing projects which include metallic fusion, damascening, chromatic finishing techniques, foldforming, patination, sculpture forging, and other interesting topics. The bonus 21st chapter is a fascinating essay presenting heartfelt thoughts on the restoration of old wrought iron.


Zylofon Arts Fund, a subsidiary of Zylofon Media, has partnered with Loyalty is Royalty and Eusbett Cinema in Sunyani, capital of the Brong Ahafo Region.
Speaking at a press launch in Sunyani, a board member of Zylofon Arts Fund, Nana Brew, stated that his outfit is interested in making the Brong Ahafo Region an entertainment hub.
"We want people going to the cinema to be a culture in this region. We are signing a memorandum of understanding today with Loyalty is Royalty (LIR) and Eusbett Cinema. We proposed a 60-40 agreement in favour of the producer with regards to proceeds from the cinema centre," he revealed.
"Any producer who wants to be part of this must have a good story. We want to see talents from Brong Ahafo on the national front. We want the next Jackie Appiah, Majid Michael and others to come from B/A," Nana Brew emphasised.
He said Zylofon Arts Fund aims to bridge the gap between up and coming musicians in the region—and the already-made artiste in the country.
"We will bring artistes for a big concert whereby artiste in the region will share a stage with them. We will organise workshops for them... It is our dream to let up and coming musicians in the region to collaborate with the already made artistes," the Zylofon Arts Fund Board Member posited.
Nana Brew charged Nana Wusu of Nana Wusu Production, a beneficially of the Zylofon Arts Fund in Sunyani to use talents in the region for his upcoming movies.
On his part, the Chief Executive Officer (CEO) of Loyalty is Royalty, Ernest Bennett, called on the media to support the programs of his outfit in order to unearth more talents in the region.
He stressed that the people of Brong Ahafo Region can achieve a lot of they come together as one people.


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Movie Dumpster
2.35 Season Two Finale
Play • 2 hr 13 min
Dread it, run from it...Season 3 arrives just the same. In time you will know what it's like to watch Pluto Nash...or Elves. To feel so desperately like you want to pull a bag over your own head like in Black Christmas. The hardest choices require the strongest wills, but we made it through 2019 and nobody got turned into dust or killed by an anti-matter wave. Do we feel good about our choices? Did we change our minds? Did Granny Van Daam run away with 2019 or will she play second fiddle to a growing roster of MDU wizards? So grab literally anything from this year's trash heap and get cozy on this brand spankin' New Year's day as we reflect on Movie Dumpster season 2! Cue flashback sequence.Support the show (https://www.patreon.com/moviedumpster)
More episodes from Movie Dumpster
Movie Dumpster Live | 2021 Year-End Wrap-Up
Welcome to the Movie Dumpster LIVE for our 2021 Year End Wrap-up episode! We're gonna be taking a look back at our 2021 slate and what's to come in 2022 for season 5!Support the show (https://www.patreon.com/moviedumpster)
4.25 Don't Open Till Christmas (1984)
Trashing Through the Snow comes to a close for 2021, along with our season four finale! Someone is running around London killing Santa Claus impersonators in the name of cleansing evil from the holiday season! After Kate's (Belinda Mayne) father gets offed at a Christmas costume party, Detective Ian Harris (Edmund Purdom) finally decides this is one Santa slaying too many. Will the Santa killer...er killer of Santas be stopped? Can the spirit of Christmas be saved? Will Dobby finally be released from the clutches of the MDU Wizards? Sharpen up that straight razor, count your cash-in credentials, and boogie down to some Caroline Monroe, because we're dropping you off a gift–but do us a favor and Don't Open Till Christmas!Support the show (https://www.patreon.com/moviedumpster)
4.24 Here Comes Santa Claus (1984)
Père Noël is coming down our chimney this week as Trashing Through the Snow jingles on! Somewhere in the MDU, a young boy Simon's parents mysteriously vanish in Africa and nobody has the heart to tell him that they are secretly Oscorp scientists being held hostage by a militia leader. Hoping to have them home for Christmas, Simon writes a letter to Santa asking for help and oh, by gosh, by golly does Santa Claus pull through! With the help of his Fairy Godmother Karen Chéryl and her magic wand, Santa takes a trek across Africa to find Simon's parents, come hell or high crocodile-infested water. If that wasn't enough, Simon and his possible imaginary friend Elodie travel to the North Pole (or Rovaniemi, Finland we guess), to make sure Santa doesn't back out. Oh and there's an Ogre living in the woods that kidnaps them and forces them to clean his house until he's ready to eat them! So hop on a flight to Santa's workshop, say hello to Phineas T. Prune while you're in town, and get ready for one song after another, because we're heading to France for J'ai rencontré Le Père Noël aka Here Comes Santa Claus!Support the show (https://www.patreon.com/moviedumpster)

redpajama_set_name: RedPajamaCommonCrawl


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San Bernardino Generation Now: Youth with a vision
San Bernardino Generation Now core members, from left, Alex Beltran, 27, Michael Segura, 24, and Fabian Torres, 24, sit in front of artwork they created as part of a beautification project at Seccombe Lake Park in San Bernardino on Thursday. (Photo by Rachel Luna/The Sun)
By Michel Nolan | michelnolan77@gmail.com | San Bernardino Sun
February 11, 2016 at 8:00 p.m.
They are San Bernardino's Generation Now, but they are also its future.
They are thinkers and dreamers, passionate about making a difference.
GenNow, a movement of some 17 college-age (some younger, some older) people, is working to make the city a better place.
Not just lip-service, but hands-on efforts.
You'll see them painting murals, cleaning up parks, "getting out the vote" by walking precincts, photographing the city as a pictorial narrative.
Why would college-educated young people, who have so much potential, bother with beautifying San Bernardino?
Because it is their home and they love it; they see the city's potential; and they want others to take pride in this former "All-America City."
Michael Segura, 24, one of GenNow's leaders, was born and raised here — attended Cajon High School and graduated last spring from Cal State San Bernardino with a degree in fine art.
GenNow is not an organization, he'll tell you — it's a "movement."
A groundswell of enthusiasm, a grassroots movement to make the city a better place, thanks to the efforts of people of all ages from all walks of life.
On Thursday, Michael, along with other GenNow leaders Alexandra (Alex) Beltran and Fabian Torres, joined me for a walk in the park — Seccombe Lake Park.
As an artist, Michael participated and helped organize the painting project at Seccombe Lake Pake, as well as festivals at Perris Hill Park and the "This is San Bernardino" windows project.
Fabian, 24, who is working on his masters' degree, is a photographer, and Alex went to USC and studied film.
They have a stake in San Bernardino and a vision for its future.
"We grew up in this city and we just love it — it's home," Michael said. "We have the vision to create a "new" San Bernardino, not like the past. It may incorporate some of the past, but it's going to be better. We do have to keep evolving with the times or a city becomes what San Bernardino became."
There's no innovation, no vision for it, he added. The group is trying to change the narrative, show the diversity and potential of the city.
"It's diverse but unified," Michael said.
When it comes to having a vision for the city, Alex said, it's good when people come together and have a sense of community. Like after the tragedy, when everyone had each other's back."
Michael's vision is for everyone to take an active role in their community and try to better their environment, get more educated on politics and policies.
"Mostly, it's unifying," he said.
Fabian said he hopes for a new cultural identity, based on unity, hope and love.
They exchanged ideas, sitting on a wall painted with murals by community members during the park beautification project last April and May.
In a way, the park has become a sort of thermometer for the health of the city.
Both are basically beautiful but need a little TLC.
The threesome would like to see the park utilized once again as a site for community events such as concerts, and as a safe place for families and friends to gather.
For that to happen, locked-up restrooms have to re-open, plumbing and electrical have to be restored and regular maintenance has to take place — trash pick-up.
"I feel it should be more of a cultural shift for the community," Fabian said.
"A lot of people come in to enjoy the park as it is, but they don't pick up after themselves. They feed the ducks and leave all the trash on the ground and that's what we find after they go."
That makes community members part of the problem.
"It's got to be everyone caring, the city putting in some effort, and community members taking ownership and being prideful of the park," Alex said.
Michael is one of the Mayor's appointees to the City Fine Arts Commission and believes the arts can make a huge impact on a city.
"You never see an art movement here, but we're helping bring that with other people. That does create innovation, and with that comes a new city, new ideas, a better community," he said.
Art can be a catalyst in saving a city, Alex added.
"It can change the narrative. Art helps people take more pride in the city. A lot of people shy away — they don't want to admit they're from San Bernardino but if we had more art, like murals, around the city, people would be more proud," she said.
Fabian agreed.
"Art helps build that pride," he said. "People living in San Bernardino should have more avenues for art, more documentation of what we're doing. I like to take photographs — it shows the people what we're doing and gives them a viable piece of how they can be a part of it, too."
People seem to connect to the murals when they see photos of them. They are more prone to come to the park and enjoy it.
Art is cool.
Michael is also a new member of the League of Women Voters. Because of GenNow's activity in Get Out the Vote, the group received a Citizen of Achievement Award last spring.
"Young people can affect the vote, but what we really have to change is culture — it's part of voting, civic engagement — it's bigger picture than just voting," Michael said. "That's really where we started."
For more information on Gen Now, go to their website, sbgenerationnow.com, or facebook, www.facebook.com/SBgenerationNow, even You Tube, www.youtube.com/SBgenerationNow.
Sounds like the future is in good hands with Generation Now.
Michel Nolan appears in The Sun on Wednesdays, Fridays and Sundays. Reach her at michel.nolan@langnews.com or on Twitter @MichelNolan.
Michel Nolan | Columnist


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HomeMarkets
FeaturedMarkets
Trish's Market Notes: $530M Short Position Against Tesla Revealed; Gold Rush Continues
By Trish Regan
U.S. stocks searched for direction in early trading on Tuesday as investors digested slower retail sales numbers out of Walmart and an escalating number of cases COVID-19 cases in Asia.
Investors are increasingly also worried about inflation expectations. That's why investors will be very much interested in the Fed minutes from its April meeting, which will be published on Wednesday.
And as inflation concerns rise, so does gold.
Gold Rally Continues – $2000 an Ounce Could Be Next
Gold increased to $1,870 per ounce, the highest it has been since January. The rally is fueled by the weak dollar, inflation concerns, and an underperforming economy. I predicted it would breeze past $1800…then I predicted $2000….and I'm sticking with that. Because, prices are still going up.
Lumber Prices Likely Staying High Amid Supply Constraints
The handful of companies that control a large portion of the lumber industry are not in any rush to open new mills, as prices of lumber soar.
Increased production capacity could help alleviate the shortage, but it would also eat into the record profits of the lumber industry.
Lumber prices are currently at $1327 per 1,000 bd ft. Prices dropped from an all-time high of $1670, but are still well above the pre-pandemic average of $400.
The consumers are left with the bill, as soaring lumber prices added nearly $36k to the cost of building a new home in less than one year.
Buffet Cuts Stakes In Financial, Energy, Drug Stocks
Today was the deadline for 13F filings. This is the opportunity for the public to see what the largest hedge funds are doing. In particular, how their positions have changed. And there were many surprises.
Warren Buffett's Berkshire Hathaway cut its positions in several financial, energy and drug stocks in the first quarter. Buffett's hedge fund sold 98% of its shares of Wells Fargo, 51% in Chevron and 37% of Merck, among others.
The company bought more than 4 million shares in insurance brokerage Aon.
Burry Reveals Massive Short Position In Tesla
A particularly interesting filing was one of Michael Burry of Scion Asset Management. Burry, also known as "big short," was one of the first investors which called the subprime mortgage crisis.
The filings revealed that he has a massive short position on Tesla, roughly equivalent to $530 million. Burry's Tesla puts correspond to roughly 40% of his portfolio in nominal terms.
Tesla's stock has had a rough year, amid slumping sales in China, supply concerns and Musk's Twitter escapades.
The safety of Tesla self-driving vehicles also raises concern, as a Tesla reportedly ran over more people, this time two policemen in Zhejiang, China.
Dollar Drops, Oil Hitting $70 Mark
10-year Treasury yields were little changed at 1.65%.
The Dollar Spot Index fell 0.4%. Brent crude rose 1%, above $70 a barrel.
Liberals want to destroy America. Their radical agenda will pack our courts, change the voting laws, and take away our constitutional freedoms. That's why is important to Join My Newsletter and get the news directly from me.
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Scion Asset Management
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And they said it wouldn't last! In 2006, as an early birthday surprise, Mrs. Suave gifted her Mister with an iPod, and Modcasting history was made. Now, a decade later, we raise frosty cocktails (make mine a double!) to toast ten groovin' and glorious years of Mister Suave's Mod Mod World. The Small Faces get us marching with "Tin Soldier." With this mod-nod to the past, we launch into a musical maze of word-play. The challenge: to get from Tin (traditional ten-year anniversary gift) to Diamonds (the modern ten-year offering), leap-frogging across a celebratory retrospective of Suave-friendly songs along the way. In this manner, we go from "Tin Soldier," to "Tin Soldier Man," to "A Man is a Man," to "Man at the C & A," and on and on to Diamonds. If you're inclined to Choose Your Own Adventure, forge your own path from Tin to Diamonds and let us know how your journey goes. I'd love to hear your list. --Mary, Queen of Cosmos.
Listen to entire list on Spotify.


Relational databases are data stores whose structure is based on how items of data are related to each other.
A key benefit to taking a relational view of data is to reduce duplication. For example, you might want to record data about people in a town. If you took a non-relational approach to recording this data, you would store the person's name together with their address, place of work, school and so on as individual data items. Where multiple people live at the same address or go to the same school, you would record the address or school details in multiple places. If the school name ever changed, you would have to update it in every data item in which it appeared, which is a time-consuming and error-prone task.
In a relational database, each entity such as the person, the school, the place of work is stored in separate tables and unique instances if the entity are identified by a Primary Key value. Relationships or associations between entities are defined in a database by the existence of Foreign Keys.
Each table has a Primary Key (PK) that uniquely defines each instance of an entity (or row) within the table. The Books table's PK is BookId, and the Authors table's PK is AuthorId. The AuthorId column in the Books table is a Foreign Key (FK), linking a book to its author. Book is the dependent entity in the relationship. It's integrity depends on a valid reference to an author. Author becomes the principal entity. Using foreign keys, you can link one author row in the database to many book rows. This type of relationship is the most commonly found and is known as a One-To-Many relationship.
Depending on the diagramming software that you use, the side of the relationship that has a multiplicity of 1 is normally depicted by a figure 1 or a key. The side of the relationship with a multiplicity of many is usually depicted by an asterisk (*) or an infinity symbol (∞). Multiplicity describes the potential number of items that can be found at one end of a relationship.
Both classes contain properties whose types can be mapped to existing database types - int, string but they also contain properties that cannot be mapped. There is no equivalent type in databases for the Book type or the Author type. Therefore they are viewed as navigation properties.
The definition of the Book class allows each book to have at most one author through the Author navigation property (a Reference navigation property having a multiplicity of zero or one), and the definition of the Author class allows each author to have many books through the Books navigation property (a Collection navigation property having a multiplicity of many). Together, they define a one-to-many relationship. The principal entity in a one-to-many relationship is the one that has the collection navigation property, and the dependent entity is the one with the reference navigation property.
The second most common type of relationship is known as a Many To Many relationship. The following diagram shows how this appears in a database diagram.
Note: While in previous versions of EF, this approach was sufficient to have EF generate the appropriate tables and form the correct relationships, in EF Core 1.0, it isn't. It is necessary to include an entity within the model to represent the join table.
In this example of a one-to-one relationship, each Author can have one, and only one biography.
One reason for implementing this kind of relationship is when you are working with inheritance. For example, you may have a Vehicle entity, with sub classes such as Car, Truck, Motorcycle etc. Other reasons include database design and/or efficiency. For example, you may want to apply extra database security to the dependent table because it contains confidential information (an employee's health record, for example), or you just want to move data that isn't referenced very often into a separate table to improve search and retrieval times for data that is used all the time.


Complete Application pre-admission and return with the documents indicated.
After covering administrative costs generated by this process of pre-admission, the applicant will be evaluated in the subjects to the degree that you have applied and be given a folder pre-admission information Institution, syllabi (EGB Elementary and Media, EGB Higher Secondary Education) and a small list of academic requirements to be delivered in the respective department.
When you have delivered documents (complete) requested in paragraph 3, the applicant will be taken into Initial 2 (3-4 years) and 1st. Grade Basic skills assessments and from the 2nd. Basic degree diagnostic tests on the date they are told.
Representatives and the candidate must be submitted to an interview with the Councilors (I) Student on the date they are told.Expect final results, which should be favorable, the applicant will enter the admission process.
– Official document identifying the country of origin of the applicant, authenticated by the Diplomatic Delegation of Ecuador in that country; or, duly apostilled before the competent official and student visa.
-Report Cards duly legalized in the Diplomatic Delegation of Ecuador where he made his senior year; or, duly apostilled to the competent official of that country. This requirement for those applicants who have completed their final year of studies in countries with which Ecuador maintains Titles Recognition agreement are accepted.
The American College of Guayaquil sponsored by Pichincha Insurance and Insurance LEC, want to communicate to you that your children have insurance that protects them in case of personal accidents. The physical integrity of their children is protected by us, and our commitment is to offer a wide network of medical centers, clinics and hospitals, where safely your child will get a quick and timely intervention in case of accident.
We have over 18 years of experience, we have 2 million customers, ensuring the most valuable human being: life, and therefore we invite you to know the coverages and benefits we provide for your child 24 hours a day, 365 days a year.
MEDICAL EXPENSES BY ACCIDENT: It will cover up to $ 5,000 for the cost of medical, surgical, ambulance, hospital, nurse and drugs prescribed as a result of an accident covered under this insurance. If the accident occurs within the school premises or outside, but in places where the student has been sent on behalf of the school to acts or events, the insured amount will be doubled.
STUDENT SCHOLARSHIP: If the student's representative died from any cause, the value will be paid to cover educational expenses of the insured.
HOSPITAL CREDIT: Hospital Credit will be awarded with prestigious medical institutions: Omni Hospital, Kennedy Alborada Clinic Hospital – Policentro, Hospitalcivar, Hospital Luis Vernaza, Santa Maria Hospital, and Children's Hospital Dr. Roberto Gilbert E.
ACCIDENTAL DEATH: Bodily injury suffered in an accident resulting in the death of the student, will deliver compensation of $ 10,000 to the beneficiary or representative.
TOTAL AND PERMANENT DISABILITY: If the student suffers an accident of some functional impairment that prevents you from lifelong perform their activities, the value of $ 10,000 will be awarded.
FUNERAL COSTS: The sum of $ 600 will be paid to cover funeral expenses in case of death of the student.
HOSPITAL CREDIT and this applies when the child requires emergency care. Once you have chosen the clinic, you will identify his client as a student of the American College and used this service must pay only the deductible amount ($ 40.00).
-LEC Insurance: 111- 6008243- 0992182103 2118270 ext Mr. Edgar Calderon. Hours from 9:00 to 18:00.
Insurance offices Pichincha Guayaquil: Av Francisco de Orellana, Edificio World Trade Center Tower A, Pisa 10. Telfs .: (04) 2118353.


How exactly does marriage change your legal and financial status? Find out about shared property, marital tax benefits, changing your surname and more before tying the knot.
Your wedding is near and it is an exciting and nerve-racking time leading up to the big day. Before you marry your future partner, it's important to not only understand your emotional commitment, but also the legal and financial repercussions of your union.
So how exactly does marriage change your legal and financial status?
Prior to walking down the aisle, you and your fiancé (or fiancée) must apply for a marriage license (also known as a marriage permit) allowing you to legally marry. This can be done by visiting your local town office or registry in the city or county that you plan to exchange vows in.
Proof of Divorce or Widowhood: This does not apply to those who are entering into their first marriage. For those who have been divorced or are widowed, you must provide valid proof of your divorce (such as a divorce decree), or a death certificate for your deceased spouse.
Age: In most states, the legal age to marry is 18. Some exceptions include Nebraska (19) and Mississippi (21). If you are under the legal age in your state, you must acquire written parental consent to have a legally binding union.
Blood tests: Though increasingly uncommon, some states still require engaged couples to undergo blood work to test for disease prior to union.
After you sign the marriage certificate at your wedding ceremony, your relationship status changes. You will now fill in "married" on legal and government forms.
If you are getting married, you may choose to take your spouse's last name, retain your own name, or devise another creative alternative. When you sign your marriage certificate, it does not result in an automatic name change. You have to bring your marriage certificate to all official institutions that keep records of your name to update information on your Social Security Card, Driver's License, bank accounts, etc.
Lastly, notify others of your new surname, including your employer, post office, school, landlord, doctor, lawyer, and accountant.
There are no legal consequences of retaining your given surname.
When you marry someone, you do not have to testify against them in court.
Marriage affects both you and your spouse's health care. As "next of kin", your spouse is responsible for making all health care decisions for you should you no longer be able to make them for yourself. Discuss your medical treatment wishes with your significant other and complete a living will to formally express your treatment preferences.
If you or your spouse have children from a previous marriage, it shouldn't legally impact your current courtship. New spouses do not have the legal obligation to support their step children. This is the responsibility of the biological parents themselves.
However, if you or your spouse chose to adopt previous dependents, given that his/her ex-partner has relinquished all parental rights, then you would be legally considered a guardian and therefore responsible for their care.
If you are engaged to be married, there may be a chance you have already started combining finances or bank accounts with your significant other. In any case, you should consider having a money talk with your partner to discuss your financial future.
A prenuptial agreement is used to protect your assets in the event your marriage does not work out or you/your spouse passes away.
By default, spouses are entitled to a share of the other's estate. To modify this entitlement, you must specify separate assets before your wedding day in order to prevent these possessions from being considered marital property upon death or divorce.
Once married, you and your spouse will collect shared assets known as joint or marital property.
In the event of one spouse's death, the marital property will be allocated to the surviving spouse. With divorce, joint property will be divided 50/50 unless otherwise stated.
One of the largest investments you will make as a married couple is your home. States governed under common law define property acquired prior to marriage as separate. For instance, if a real estate title is listed in one spouse's name, it is theirs. The real estate property can be left to their loved one if they choose to state this in their will.
If the property is purchased together, each spouse has equal interest in the property title under joint tenancy. With this arrangement, when one spouse dies, the remaining spouse may acquire their late husband/wife's remaining interest in the property through rights of survivorship.
States governed by community law (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington & Wisconsin) view money, property and debt accumulated during marriage as communal assets. Real estate is shared and when one spouse dies, their share, along with debts, is passed to the living spouse.
To prevent any disputes, it's important to review your last will and testament when you get married to ensure it reflects your current wishes. Without one, most of your assets will go directly to your spouse. If you wish to allocate a certain portion to your significant other, do so explicitly in your will, while also clearly specifying the other assets and/or gifts you want to leave to family and friends.
After marriage, you have the option to file joint tax returns or file separately. Whichever way you choose to file, the name on your Social Security Card must match the one on your tax return. If you have not reported your new name to the IRS, you must do so before filing.
You can determine your status as of December 31 of the tax year. For instance, if your wedding is in the following January, you can still qualify for single tax filing. However, filing a joint return has several benefits, including deductions, and borrowing personal tax credits to lower the tax bracket of a partner.
Alternatively, filing individually may also lower your tax bill. Be sure to consult with an accountant when determining your tax filing status as: marriage filing jointly or marriage filing separately.
There is also another option; if you and your future spouse are in business together, you may choose to form a family partnership and file taxes as a family business in which profits are distributed among each other.
You may have the ability to claim dependents, such as children, dependent relatives or even a spouse you've been supporting. If you claim your child as dependent, you may be eligible for a child tax credit.
Gift Taxes: Generally if one individual gives a money gift to another person, the receiver has to pay taxes on this money. However, married couples who exchange money gifts in their family are exempt from this tax law.
Estate Taxes: As long as you are an American citizen, your spouse can leave you with any amount of their estate – tax free. The same applies to you leaving behind a portion of your estate to them.
There are several advantages to sharing your life with someone. Among them is being listed as a beneficiary or dependent on various health, retirement, life and financial plans.
For instance, you may be entitled to your spouse's healthcare insurance, Social Security, disability benefits, as well as their employee benefits, retirement plan/pensions, life insurance policies, and more. If your spouse dies, you may still be able to collect their Social Security, pension, and other benefits if you were listed as a beneficiary.
In practice, marriage is a shared legal union in which you make sanctioned commitments to another person.
For that reason, it's important to understand the legal and financial ramifications of marriage, including planning your financial future together and knowing your legal rights regarding shared property should you happen to separate or experience the loss of your spouse.
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