Slide 1: Full Year and Fourth Quarter 2020 Earnings Results
Equitable Holdings Full Year and Fourth Quarter 2020 Earnings Results February 24, 2021 Equitable
Slide 2: Note Regarding Forward-Looking and Non-GAAP Financial Measures
Note Regarding Forward-Looking and Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “intends,” “seeks,” “aims,” “plans,” “assumes,” “estima
Slide 3: Full Year and Fourth Quarter 2020 Highlights
Full Year and Fourth Quarter 2020 Highlights Strong 2020 performance, fulfilled all IPO commitments • Managed through turbulence with disciplined risk management and fair value approach • Achieved all financial targets and strategic priorities laid out at the time of IPO Delivered earnings growth an
Slide 4: Demonstrating strength through achievement of IPO targets
Demonstrating strength through achievement of IPO targets • Disciplined risk management framework; managing to economic realities • Trusted leader in resilient sectors delivering innovative solutions to clients Equitable’s competitive • Distribution strength across affiliated advisors and institutio
Slide 5: Positioning the business for the future
Positioning the business for the future • VA reinsurance transaction reduces risk by 64%1, with limited impact on earnings Improved risk profile • Pivoting to capital-light products; 85% of products not interest-sensitive • Enterprise agile rollout: one third of organization complete Productivity •
Slide 6: Full Year 2020 Financial Summary
Full Year 2020 Financial Summary Non-GAAP operating earnings1 of $2.3 billion or $4.99 per common share2, up 5% per share year-over-year Total AUM of $809bn, up 10% year-over-year Solid business segment performance: • Operating earnings of $1,536 million Individual Retirement • Strong SCS demand cul
Slide 7: Fourth Quarter Consolidated Results Summary
Fourth Quarter Consolidated Results Summary Non-GAAP Operating Earnings Non-GAAP Operating EPS Financial Highlights $m $ Non-GAAP operating EPS increased +15% +20% 20% from $1.37 to $1.65 driven by: 748 1.65 ▪ Increase in net investment income due 653 1.37 to higher alternatives income ▪ Increase in
Slide 8: Individual Retirement
Individual Retirement Operating Earnings Highlights $m ▪ Operating earnings increased due to higher alternatives +13% income and growth in SCS account values 442 392 ▪ Notable items1 in the quarter of $73 million due to equity market impact on DAC and higher net investment income ▪ FYP improved 19%
Slide 9: Group Retirement
Group Retirement Operating Earnings Highlights $m ▪ Operating earnings increased due to higher alternatives +52% income and fee-revenue on higher account values 166 ▪ Notable items1 in the quarter of $23 million primarily driven 109 by higher net investment income ▪ Net flows improved by $26 million
Slide 10: Investment Management and Research (AB)
Investment Management and Research (AB) Operating Earnings Highlights $m ▪ Operating earnings growth driven by higher base fees on +8% higher average AUM and lower operating expenses 131 141 ▪ Notable items2 in the quarter of $9 million due to lower COVID-related expenses ▪ Net flows of $3.9 billion
Slide 11: Protection Solutions
Protection Solutions Operating Earnings Highlights $m ▪ Operating earnings declined, including notable items1 in the -55% quarter of $7 million, related to unfavorable mortality due to 129 COVID and PFBL reserve accrual ▪ Partial offsets include higher account values and an increase in alternatives
Slide 12: Strong capitalization and liquidity enabling capital return
Strong capitalization and liquidity enabling capital return Robust capitalization and liquidity Delivering on 50-60% payout ratio ▪ Returned $1.1bn to shareholders, including Dividends $400m of repurchases accelerated into 4Q19 274 Repurchases from market ▪ Executed $170m ASR in January for 2021 pay
Slide 13: Full Year and Fourth Quarter 2020 Highlights
Full Year and Fourth Quarter 2020 Highlights Strong 2020 performance, fulfilled all IPO commitments • Managed through turbulence with disciplined risk management and fair value approach • Achieved all financial targets and strategic priorities laid out at the time of IPO Delivered earnings growth an
Slide 14: Appendix
Appendix Equitable Holdings Fourth Quarter 2020 Earnings Results
Slide 15: Net Income to Non-GAAP Operating Earnings, 4Q20
Net Income to Non-GAAP Operating Earnings, 4Q20 $m (818) (635) 3,439 748 (1,238) Net loss VA Product Features All other adjustments1 Income tax expense Non-GAAP operating earnings All figures $m Description 4Q20 GMxB accounting asymmetry: • GMxB hedging 2,150 • Static hedge cash option cost 19 VA Pr
Slide 16: Net Income to Non-GAAP Operating Earnings, FY20
Net Income to Non-GAAP Operating Earnings, FY20 $m (74) (888) 1,503 2,302 2,409 (648) Net loss VA Product Features Assumption Updates All other Income tax expense Non-GAAP adjustments1 operating earnings All figures $m Description FY20 GMxB accounting asymmetry: • GMxB hedging 1,228 • Static hedge c
Slide 17: Investment Portfolio Overview
Investment Portfolio Overview General Account Investment Portfolio Fixed maturity portfolio <Baa U.S. Treasury, Gov’t and Agency 3% 13% Other Fixed Maturities Baa 7% 35% 5% Short Duration Corporates 55% $95bn 2 Fixed Maturities1 $72bn 14% 62% Mortgage Loans Aaa, Aa, A 2% 4% Policy Loans Alts. & Othe
Slide 18: Impact of Notable Items by segment
Appendix Impact of Notable Items1 (including Actuarial Assumption Updates) by segment and Corporate & Other line items Individual Group Protection Corporate Three months ended 12/31/2020 ($m) Retirement Retirement AB Solutions & Other Consolidated Total revenues 14 11 4 6 35 Policy charges, fee inco
Slide 19: Impact of Notable Items by segment and category
Appendix Impact of Notable Items1 by segment and corporate & other and by category Three Months Ended Twelve Months Ended Twelve Months Ended Non-GAAP Operating Earnings, less Notable Items, ($m) December 31, 2020 December 31, 2020 December 31, 2019 Non-GAAP Operating Earnings $ 748 $ 2,302 $ 2,357
Slide 20: Reconciliation of Non-GAAP and Other Financial Disclosures
Appendix Reconciliation of Non-GAAP and Other Financial Disclosures EQH Non-GAAP Operating Earnings Three Months Ended December 31, Year Ended December 31, (in millions) 2020 2019 2020 2019 Net income (loss) attributable to Holdings $ (1,238) $ (946) $ (648) $ (1,764) Adjustments related to: Variabl
Slide 21: Reconciliation of Non-GAAP and Other Financial Disclosures
Appendix Reconciliation of Non-GAAP and Other Financial Disclosures EQH Non-GAAP Operating Return on Equity Balances as of (in millions USD, unless otherwise indicated) 3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 6/30/2020 9/30/2020 12/31/2020 Total Equity Attributable to Holdings Total equit