Equitable Holdings, Inc. · NYSE:EQH
Equitable — Q1 2022 Earnings Presentation
21 slides from Equitable's earnings presentation, May 10, 2022
Slide 1: Equitable Holdings First Quarter 2022 Earnings Results
Equitable Holdings First Quarter 2022 Earnings Results May 10, 2022 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 Strong net inflows across all businesses with solid underlying results • Non-GAAP operating earnings1 of $548m or $1.36 per share, up 1% per share YoY • $856bn AUM, up 4% YoY; net inflows of $12bn across asset management and retirement2 Fair-value management leads to c. $1.6
Slide 4: Unique retirement, asset management and advice businesses
Unique retirement, asset management and advice businesses ► Affiliated distribution enabled pivot to capital-light products representing c. 85% of first year premiums in the quarter ► $750m capital commitment to CarVal, furthering progress on $10bn of seed capital1 from Equitable’s General Account t
Slide 5: Growing earnings and cash flows
Growing earnings and cash flows Non-GAAP Operating Earnings1,2 (post-tax) IR GR AB PS 10% 7% 15% 20% IPO 2022 48% 14% $1.9bn3 65% $2.5bn4 22% Cash flow generation (post-tax) Retirement Asset Management Affiliated Distribution 6% 3% 26% IPO 2022 31% $1.2bn5 $1.6bn 71% 63% 1Non-GAAP Operating Earnings
Slide 6: Interest rate assumption supports positive LDTI book value adjustment
Interest rate assumption supports positive LDTI book value adjustment Interest rate assumptions for Life peers1 impacted by LDTI EQH LDTI estimated equity impact at transition EQH Life insurance peers impacted by LDTI 12/31/21 adjustment Within AOCI (<$2bn) Q1 market changes2 3.5% Interest rates 10
Slide 7: 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 +2% +13% $548m, or $1.36 per share, increased 1% from $1.35 in prior year 602 615 1.53 1.36
Slide 8: Individual Retirement
Individual Retirement Operating Earnings, less Notable Items1 Highlights $m ▪ Venerable transaction unlocked $1.2bn of value in Q2’21 but reduces run rate earnings by c. $180m per annum 367 307 ▪ Operating earnings less notable items1 decreased, primarily due to lower fee and net investment income a
Slide 9: Group Retirement
Group Retirement Operating Earnings, less Notable Items1 Highlights $m +7.4% ▪ Operating earnings less notable items1 increased due to higher fee 149 revenue and lower expenses 139 ▪ Notable items1 of $1m with higher net investment income from alternatives offsetting a DAC update ▪ Net inflows of $5
Slide 10: Investment Management and Research (AB)
Investment Management and Research (AB) Operating Earnings, less Notable Items1 Highlights $m ▪ Operating earnings less notable items1 growth driven by higher +12.4% base and performance fees partially offset by higher expenses 136 121 ▪ Gross sales of $41bn in the quarter, up 23% YoY, with $21bn of
Slide 11: Protection Solutions
Protection Solutions Operating Earnings, less Notable Items1 Highlights $m ▪ Operating earnings less notable items1 increased due to higher net investment income and fee-type revenue 96 ▪ Notable items1 of $(61)m with higher net investment income from alternatives partially offsetting elevated morta
Slide 12: Fair value management supporting capital return
Fair value management supporting capital return Strong capital position in volatile markets Consistently delivering on 50-60% payout ratio Dividends ▪ Returned $461m year-to-date including repurchases of Share Repurchases $279m in 1Q22 and $112m repurchases accelerated into 4Q21 $500m Venerable buyb
Slide 13: First quarter highlights
First quarter highlights Strong net inflows across all businesses with solid underlying results • Non-GAAP operating earnings1 of $548m or $1.36 per share, up 1% per share YoY • $856bn AUM, up 4% YoY; net inflows of $12bn across asset management and retirement2 Fair-value management leads to c. $1.6
Slide 14: Appendix
Appendix Equitable Holdings First Quarter 2022 Earnings Results
Slide 15: Net Income to Non-GAAP Operating Earnings, 1Q22
Net Income to Non-GAAP Operating Earnings, 1Q22 $m 573 (601) 568 8 548 Net Income VA Product Features All other adjustments1 Income tax expense Non-GAAP operating earnings All figures $m Description 1Q22 GMxB accounting asymmetry: • GMxB hedging (144) • Static hedge cash option cost 0 VA Product Sho
Slide 16: Investment Portfolio Overview
Investment Portfolio Overview General Account Investment Portfolio Fixed maturity portfolio <Baa U.S. Treasury, Gov’t and Agency 9% 4% 14% Baa Other Fixed Maturities $94 $73bn 0.1% Short Duration 35% bn2 Corporates 54% Fixed Maturities1 15% 61% Mortgage Loans Aaa, Aa, A 3% 4% Policy Loans Alts. & Ot
Slide 17: 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) 2022 2021 Net income (loss) attributable to Holdings $ 573 $ (1,488) Adjustments related to: Variable annuity product features (601) 2,267 Investment (gains)
Slide 18: 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) 6/30/2020 9/30/2020 12/31/2020 3/31/2021 6/30/2021 9/30/2021 12/31/2021 3/31/2022 Total Equity Attributable to Holdings Total equit
Slide 19: Impact of Notable Items by segment and corporate & other
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) March 31, 2022 March 31, 2021 Non-GAAP Operating Earnings $ 548 600 Post-tax Adjustments related to Notable Items: Individual
Slide 20: Impact of Notable Items by segment and corporate & other
Appendix Impact of Notable Items1 by segment and corporate & other Individual Group Protection Corporate Three months ended 3/31/2022 ($m) Retirement Retirement AB Solutions & Other Consolidated Non-GAAP Operating Earnings 293 150 136 35 (66) 548 Pre-tax adjustments related to Notable Items: Actuari
Slide 21: Impact of Notable Items by segment and corporate & other
Appendix Impact of Notable Items1 by segment and corporate & other Individual Group Protection Corporate Three months ended 3/31/2022 ($m) Retirement Retirement AB Solutions & Other Consolidated Total revenues 6 6 — (9) 4 7 Policy charges, fee income and premiums — — — (17) — (17) Net investment inc