Shares fell 4.1% post-earnings as investors reacted to cautious flow trends and a timing-driven net inflow in Retirement, alongside margin pressure signals in Investment Management that may have tempered confidence in near-term growth.

• Adjusted operating EPS grew 13% year-over-year to $2.26 in Q1, reflecting solid execution across segments.
• Retirement segment reported $209 million in adjusted operating earnings, up 14% year-over-year, with margins holding at 39%, though first-quarter net inflows were timing-driven and below expectations.
• Investment Management adjusted operating earnings rose 12% to $46 million, with margins at 28.6%, supported by higher institutional and retail fees; however, investor caution likely arises from cautious outlook around flows and margin sustainability.
• Employee Benefits delivered improved earnings through disciplined underwriting and pricing, particularly in Stop Loss, targeting full margin recovery.
• Generated approximately $200 million of excess capital returned via shareholder distributions, maintaining capital discipline amid an uncertain outlook.