Equitable Holdings, Inc. · NYSE:EQH
Equitable — Q2 2018 Earnings Presentation
15 slides from Equitable's earnings presentation, Aug 14, 2018
Slide 1: Second Quarter 2018 Earnings Results
Second Quarter 2018 Earnings Results August 14, 2018
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. Forward-looking statements give expectations or forecasts of future events. These statements can be identif
Slide 3: Delivering On Commitments
Delivering On Commitments Raised $3.8bn in long term debt primarily to repay internal loans to AXA and ✓ purchase AllianceBernstein (AB) interest from AXA Purchased AXA’s remaining interest in AB on April 23, bringing AXA Equitable ✓ Holdings’ economic interest in AB to approximately 65% ✓ Merged pr
Slide 4: Second Quarter 2018 Financial Highlights
Second Quarter 2018 Financial Highlights Total AUM of $656bn Non-GAAP Operating Earnings1 increased 27% to $506m Strong performance across all business segments ▪ Individual Retirement operating earnings increased 30% to $399m ▪ Group Retirement generated continued positive net flows of $150m ▪ Inv.
Slide 5: Strategic Priorities
Strategic Priorities After tax reform, Non-GAAP Operating Earnings growth is expected to result in Pro Forma Non-GAAP Operating ROE in the mid-teens by 2020 5-7% Target Non-GAAP Operating Earnings CAGR $2.2-$2.3bn $1.9bn1 Tax reform GA Optimization Productivity Growth Financial Targets GA Optimizati
Slide 6: Second Quarter 2018 Consolidated Results Summary
Second Quarter 2018 Consolidated Results Summary Non-GAAP Operating Earnings Non-GAAP Operating Earnings Financial Highlights Per Diluted Share1 $m $ Non-GAAP Operating Earnings +27% +27% +27% ▪ Driven by higher AUM, improved GMxB margins, and increased net 506 0.90 investment income due to the 399
Slide 7: Individual Retirement
Individual Retirement Operating Earnings Key Drivers $m ▪ Operating earnings benefited from: o Increase in revenues due to higher AV o Improved GMxB results +30% ▪ Continued net inflows on Current Product Offering, 399 ongoing net outflows on mature Fixed Rate block 308 ▪ FYP trends improved compare
Slide 8: Group Retirement
Group Retirement Operating Earnings Key Drivers $m ▪ Operating earnings increased primarily due to fee income on higher AUM and improved net investment income from GA optimization +63% ▪ Continued positive net flows driven by higher 78 renewal premiums 48 ▪ Gross premiums increased driven by growth
Slide 9: Investment Management and Research
Investment Management and Research Operating Earnings Key Drivers $m ▪ Increase in operating earnings mainly driven by: o Increase in the company’s ownership of AllianceBernstein to 65% as of April 23, 2018 +59% o Fees increased due to higher average AUM and 97 higher portfolio fee rate realization,
Slide 10: Protection Solutions
Protection Solutions Operating Earnings Key Drivers $m ▪ Operating earnings growth attributable to higher policy revenues and net investment income from GA optimization +50% ▪ Higher annualized premiums primarily driven by 24 increased sales of variable life insurance and employee benefits products
Slide 11: Capital Position and Management
Capital Position and Management Target payout ratio: 40%–60% of 2018 Non-GAAP Operating Earnings to shareholders on an annualized basis Launch of capital management program… … While maintaining financial targets at June 30 Per share common stock dividend ▪ Estimated combined RBC Ratio $0.13 declared
Slide 12: Key Financial Targets
Key Financial Targets Maintain strong balance sheet while delivering disciplined financial growth AXA Equitable Holdings Non-GAAP Op. Earnings growth Payout ratio1 Pro Forma Non-GAAP Operating ROE 5-7% 40-60% Mid-teens CAGR through 2020 by 2020 (after tax reform) AXA Equitable Life AllianceBernstein
Slide 13: Second Quarter 2018 Earnings Results Appendix
Second Quarter 2018 Earnings Results Appendix August 14, 2018
Slide 14: 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 June 30, 2018 2017 (in millions) Net income (loss) attributable to Holdings $ 158 $ 608 Adjustments related to: Variable annuity product features1 280 (40) Investment (gains) losses
Slide 15: Reconciliation of Non-GAAP and Other Financial Disclosures
Appendix Reconciliation of Non-GAAP and Other Financial Disclosures EQH Pro Forma Non-GAAP Operating Return on Equity (ROE) Three months Ended or As of Twelve Months Ended or As of (in millions USD, unless otherwise indicated) 06/30/2017 09/30/2017 12/31/2017 03/31/2018 06/30/2018 03/31/2018 06/30/2