Slide 1: Third Quarter 2023 Earnings Results
Equitable Holdings Third Quarter 2023 Earnings Results November 1, 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: Third quarter highlights
Third quarter highlights Third quarter results reflect momentum in Retirement and Wealth Management • Non-GAAP Operating Earnings1 of $1.15 per share, up 16% vs. 3Q22 and down 2% vs. 2Q23 on per share basis • Continued organic growth with net inflows of $1.5bn in Retirement2 and $1.6bn in Wealth Man
Slide 4: Higher interest rates a significant positive for Equitable
Higher interest rates a significant positive for Equitable Consistent capital position despite volatile markets Higher rates = higher earnings & growth Market neutral balance sheet ‘locks in’ economics of Highest rate environment in over 15 years presents inforce guarantees by neutralizing rates sig
Slide 5: Integrated business model delivering long-term growth
Integrated business model delivering long-term growth Retirement Asset Management Wealth Management Net flows Private markets AUM Net flows $1.5bn $1.6bn $61bn $1.2bn $55bn $1.1bn 3Q22 3Q23 3Q22 3Q23 3Q22 3Q23 Record net flows and sales Continued shift to higher fee strategies Organic growth momentu
Slide 6: Third quarter consolidated results summary
Third quarter consolidated results summary Non-GAAP Operating Earnings, Non-GAAP Operating EPS, Assets under management adjusted for notable items1 adjusted for notable items1 and administration GR $ $bn AUM 20% +15% +10% AUA PS 1.30 860 784 11% 1.13 IR 38% $468m 17% 716 781 AB 7% 7% 68 79 Legacy WM
Slide 7: Noisy quarter for EPS, but no change to growth outlook
Noisy quarter for EPS, but no change to growth outlook Segments Description 3Q impact1 Guidance Alts & Insurance segments, Alts return of +6%, below $(20)m Similar in 4Q23, improving over time prepayments Corporate & Other expectation of +8-12% $(0.06) Assumption & Insurance segments, Modest benefit
Slide 8: Predictable cash generation with >50% non-regulated
Predictable cash generation with >50% non-regulated Non-GAAP Operating Earnings, adj. for notable items1 Cash generation2 to Holdings Nine months ending 3Q’23 On track for 2023 cash generation of $1.3bn GR Wealth Management 18% 8% PS 11% Retirement Asset IR 38% 3Q’YTD (Regulated) 45% 2023F 31% Manag
Slide 9: Capital management driving shareholder value
Capital management driving shareholder value Robust and efficient capital structure Delivering on 60-70% payout ratio target1 Dividends Share Repurchases Returned $315m to shareholders in Q3 including $315m $238m in share repurchases $304m $286m $78m $77m $224m $72m Cash & liquid assets of $2.0bn at
Slide 10: Third quarter highlights
Third quarter highlights Third quarter results reflect momentum in Retirement and Wealth Management Economic management supports resilient balance sheet and capital position Demographics and higher interest rates providing a tailwind for growth On track for Non-GAAP operating EPS1 growth and cash ge
Slide 11: Appendix
Appendix Equitable Holdings Third Quarter 2023 Earnings Results
Slide 12: Explanation of footnotes
Explanation of footnotes Page 3 1Non-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 reconciliation in Appendix 2Includes Individual Retirement and Group Retirement segments
Slide 13: Conservative, high quality investment portfolio
Conservative, high quality investment portfolio General Account Investment Portfolio Fixed Maturity Portfolio U.S. Treasury, Gov’t and Agency <Baa 6% 4% Structured Credit 16% Baa Other Fixed Maturities $99 $74bn 2% 34% 51% bn1 Corporates 18% 62% Mortgage Loans Aaa, Aa, A 3% 4% Policy Loans Alts. & O
Slide 14: Individual Retirement
Individual Retirement Operating Earnings, adjusted for Notable Items1 Highlights $m ▪ Operating earnings adjusted for notable items1 increased primarily due to higher NII and account value growth, 221 193 partially offset by higher DAC amortization ▪ Net inflows of $1.7bn were higher year-over-year
Slide 15: Group Retirement
Group Retirement Operating Earnings, adjusted for Notable Items1 Highlights $m ▪ Operating earnings adjusted for notable items1 increased primarily due to higher net interest margin 107 113 ▪ Net outflows of $175m primarily due to seasonality in K-12 educators offering ▪ Gross premiums of $817m down
Slide 16: Investment Management and Research (AB)
Investment Management and Research (AB) Operating Earnings Highlights $m ▪ Operating earnings increased primarily due to higher base fees on higher average AUM and higher performance fees 94 99 ▪ Net outflows of $1.9bn with active net outflows of $0.1bn, nearly flat and outpacing peers ▪ Retail infl
Slide 17: Protection Solutions
Protection Solutions Operating Earnings, adjusted for Notable Items1 Highlights $m ▪ Operating earnings adjusted for notable items1 increased primarily due to higher NII 62 53 ▪ Annualized premiums up 8% year-over-year in Life and 4% YoY in Employee Benefits ▪ Gross mortality claims improved versus
Slide 18: Wealth Management
Wealth Management Operating Earnings Highlights $m ▪ Operating earnings increased primarily due to higher advisory fees on larger average asset balances and higher 40 interest income on sweep accounts 22 ▪ Net inflows of $1.6bn, driving annualized organic growth of 8% in the quarter ▪ AUA up 16% YoY
Slide 19: Legacy
Legacy Operating Earnings, adjusted for Notable Items1 Highlights $m ▪ Operating earnings adjusted for notable items1 decreased primarily due to lower net investment income attributable 53 to lower assets as the business continues to run off 41 ▪ Net outflows of $554m in the quarter, in line with ex
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 September 30, (in millions) 2023 2022 Net income (loss) attributable to Holdings $ 1,064 $ 594 Adjustments related to: Variable annuity product features (4) (1,380) (675) Investment
Slide 21: Impact of notable items by segment and corporate & other
Appendix Impact of notable items1 by segment and corporate & other 3Q23 reported Alts/pre-pays vs. plan Actuarial & assumption updates Mortality vs. plan Expense items Tax rate 3Q23 adjusted Three months ended 9/30/23 ($m) After-tax Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax Pre-tax After
Slide 22: Impact of notable items by segment and corporate & other
Appendix Impact of notable items1 by segment and corporate & other Three months ended 9/30/2023 ($m) IR GR AB PS WM L C&O Consolidated Total revenues 2 5 — 10 — (1) 5 20 Policy charges, fee income and premiums — — — — — — — — Net investment income 2 5 — 10 — 2 5 24 Other income (1) (0) — — — (3) — (