Slide 1: Equitable Holdings First Quarter 2023 Earnings Results
Equitable Holdings First Quarter 2023 Earnings Results May 4, 2023 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: First quarter highlights
First quarter highlights Solid results across our Retirement1, Asset and Wealth Management businesses • Non-GAAP Operating Earnings2 of $364m, or $0.96 per share, down 22% vs. 1Q22 and up 10% vs. 4Q22 on per share basis • $864bn AUM/A, down 8% vs. 1Q22 and up 5% vs. 4Q22 supported by core net inflow
Slide 4: New segments highlight the value of our business model
New segments highlight the value of our business model 5-yr CAGR What’s included 1Q Contribution to Holdings AUM/A Capital-light: Individual spread-based RILA, $79bn of account value ($38bn RILA) Retirement fee-based floating-rate VA, 38% of Non-GAAP Operating Earnings adj. for notables1 8% investm
Slide 5: Unique retirement, asset management and advice businesses
Unique retirement, asset management and advice businesses ► Leveraging synergies between Equitable and AB to drive growth, with over 70% of $10bn capital commitment1 deployed ► Continued growth in RILA benefits both Retirement and Asset Management with over 90% of SCS account value allocated to AB ►
Slide 6: Insurance sector has been underperforming the S&P 500
Insurance sector has been underperforming the S&P 500 Q1 share price performance Industry topics in focus As of 12/31/22 – 3/31/23 20% EQH S&P 500 best proxy for 1 Credit quality Life peers1 15% S&P 500 fee-based businesses Our general account and balance sheet can Banks2 withstand a severe shock &
Slide 7: Credit: EQH can withstand future stress events & recover quickly
1 Credit: EQH can withstand future stress events & recover quickly High quality general account portfolio, supported by strong capital position Independent test: stress scenario Stress with similar corporate credit and real estate losses as GFC Peers1 EQH Credit stress test 39 pts 33 pts 96% investm
Slide 8: Real estate: we have high quality CMLs with strong fundamentals
2 Real estate: we have high quality CMLs with strong fundamentals Conservative GA with well diversified commercial mortgage loan (CML) portfolio Multifamily 35% Ag. Loans $97bn 15% 17% $17bn Retail 2% Mortgage General Portfolio Account 13% Industrial 28% 2% 5% Office Hospitality Other CMLs are an at
Slide 9: Lapses: limited liquidity risk due to structural policy features
3 Lapses: limited liquidity risk due to structural policy features Bank deposit accounts Market value adjustments ✓ Reduced benefits in falling markets No adjustments Client profile ✓ c.98% retail total client balances >50% uninsured deposits1 Tax-advantaged assets ✓ >70% qualified total client bala
Slide 10: First quarter consolidated results summary
First quarter consolidated results summary Non-GAAP Operating Earnings, Non-GAAP Operating EPS, adjusted for notable items1 adjusted for notable items1 Financial highlights $m $ Non-GAAP Operating Earnings of $364m, or $0.96 per share, decreased 22% from -23% -18% $1.24 in prior year 594 1.48 1.21 ▪
Slide 11: Prudent capital management delivering shareholder value
Prudent capital management delivering shareholder value Strong capital position in volatile markets Consistently delivering on payout ratio target Dividends Share Repurchases $295m $286m $275m ▪ Returned $286m to shareholders in the first quarter $75m including $214m in share repurchases $72m $75m $
Slide 12: First quarter highlights
First quarter highlights Solid results across our Retirement1, Asset and Wealth Management businesses Resilient balance sheet with 96% of fixed maturity assets rated investment grade Strong capital and liquidity position consistently delivering on payout ratio New segments highlight the value of our
Slide 13: Appendix
Appendix Equitable Holdings First Quarter 2023 Earnings Results
Slide 14: Explanation of footnotes
Explanation of footnotes Page 3 1Includes Individual Retirement, Group Retirement and Protection Solutions segments 2Non-GAAP Operating Earnings equals our consolidated after-tax net income attributable to Holdings adjusted to eliminate the impact of certain items; Please see detailed non-GAAP recon
Slide 15: Individual Retirement
Individual Retirement Operating Earnings, adjusted for Notable Items1 Highlights $m ▪ Operating earnings adjusted for notable items1 increased 204 primarily due to increased NII associated with SCS offsetting 200 lower fee income on lower average account values ▪ Notable items1 were $4m reflecting l
Slide 16: Group Retirement
Group Retirement Operating Earnings, adjusted for Notable Items1 Highlights $m ▪ Operating earnings adjusted for notable items1 decreased primarily due to the Global Atlantic transaction, lower NII and 139 lower fee income on lower average account values 97 ▪ Notable items1 were $8m reflecting lower
Slide 17: Investment Management and Research (AB)
Investment Management and Research (AB) Operating Earnings, adjusted for Notable Items1 Highlights $m ▪ Operating earnings adjusted for notable items1 decreased primarily due to lower base fees on lower average AUM and 136 lower performance fees 99 ▪ Net inflows of $0.8bn, or $1.8bn of active inflow
Slide 18: Protection Solutions
Protection Solutions Operating Earnings, adjusted for Notable Items1 Highlights $m ▪ Operating earnings adjusted for notable items1 decreased primarily due to lower NII 109 ▪ Notable items were $81m primarily reflecting excess mortality and lower NII from alternatives 46 ▪ Gross written premiums up
Slide 19: Wealth Management
Wealth Management Operating Earnings, adjusted for Notable Items1 Highlights $m ▪ Operating earnings adjusted for notable items1 were flat year-over-year with higher interest income offsetting lower 32 32 fees on lower balances ▪ Net inflows of $1.4bn partially offsetting market headwinds ▪ Continue
Slide 20: Legacy
Legacy Operating Earnings, adjusted for Notable Items1 Highlights $m ▪ Operating earnings adjusted for notable items1 increased primarily driven by higher NII offsetting lower fee income 60 64 on lower average account values ▪ Notable items1 were $4m reflecting lower NII from alternatives ▪ Net outf
Slide 21: Investment portfolio overview
Investment portfolio overview General Account Investment Portfolio Fixed maturity portfolio U.S. Treasury, Gov’t and Agency <Baa 7% 4% 14% Structured Credit Baa Other Fixed Maturities $97bn 2% $72bn 35% 52% 1 Corporates 17% 61% Mortgage Loans Aaa, Aa, A 4% 4% Policy Loans Alts. & Other Average portf
Slide 22: 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 March 31, (in millions) 2023 2022 Net income (loss) attributable to Holdings $ 177 $ 530 Adjustments related to: Variable annuity product features 861 (616) Investment gains (losses
Slide 23: Impact of notable items by segment and category
Appendix Impact of notable items1 by segment and corporate & other and by category Three Months Ended Three Months Ended Non-GAAP Operating Earnings, less Notable Items, ($m) Mar 31, 2023 Mar 31, 2022 Non-GAAP Operating Earnings $ 364 $ 499 Post-tax Adjustments related to Notable Items: Individual R
Slide 24: Impact of notable items by segment and corporate & other
Appendix Impact of notable items1 by segment and corporate & other Three months ended 3/31/2023 ($m) IR GR AB PS WM L C&O Consolidated Non-GAAP Operating Earnings 200 89 99 (35) 32 60 (81) 364 Pre-tax adjustments related to Notable Items: Actuarial Updates/Reserve — — — — — — — — Mortality — — — 77
Slide 25: Impact of notable items by segment and corporate & other
Appendix Impact of notable items1 by segment and corporate & other Three months ended 3/31/2023 ($m) IR GR AB PS WM L C&O Consolidated Total revenues 4 9 — 19 — 5 9 47 Policy charges, fee income and premiums — — — — — — — — Net investment income 4 9 — 19 — 5 9 47 Total benefits and other deductions