Equitable Holdings, Inc. · NYSE:EQH

Equitable — Merger or Acquisition (October 2020)

15 slides from Equitable's merger presentation, Oct 28, 2020

  1. Slide 1: Equitable Holdings Legacy VA Reinsurance Announcement

    AXAUSCS\2019\11. Project Sputnik (Sep-2019)\1. Presentation\31. Investor Messaging\Sputnik Investor Presentation v55.pptx Equitable Holdings Legacy VA Reinsurance Announcement October 28, 2020 Equitable

  2. Slide 2: Note Regarding Forward-Looking and Non-GAAP Financial Measures

    AXAUSCS\2019\11. Project Sputnik (Sep-2019)\1. Presentation\31. Investor Messaging\Sputnik Investor Presentation v55.pptx Note Regarding Forward-Looking and Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Refor

  3. Slide 3: Landmark transaction creates significant value for shareholders

    AXAUSCS\2019\11. Project Sputnik (Sep-2019)\1. Presentation\31. Investor Messaging\Sputnik Investor Presentation v55.pptx Landmark transaction creates significant value for shareholders First of its kind reinsurance transaction for VA policies • Significant reduction in required capital • Validation

  4. Slide 4: Key transaction benefits

    AXAUSCS\2019\11. Project Sputnik (Sep-2019)\1. Presentation\31. Investor Messaging\Sputnik Investor Presentation v55.pptx Key transaction benefits Strengthens the balance sheet 64% reduction in reserves and capital required to meet CTE98 tail risk exposure Unlocks value to Equitable $1.2 billion unl

  5. Slide 5: Transaction rationale for legacy VA divestiture

    AXAUSCS\2019\11. Project Sputnik (Sep-2019)\1. Presentation\31. Investor Messaging\Sputnik Investor Presentation v55.pptx Transaction rationale for legacy VA divestiture 1 Validation Transaction validates reserving levels and active risk management approach 2 De-risking Significantly de-risks legacy

  6. Slide 6: Transaction validates Equitable's prudent risk management

    AXAUSCS\2019\11. Project Sputnik (Sep-2019)\1. Presentation\31. Investor Messaging\Sputnik Investor Presentation v55.pptx 1 Transaction validates Equitable’s prudent risk management Economic approach to risk management… … drove a positive cede on our riskiest business $bn ► Validates statutory reser

  7. Slide 7: Significantly de-risks Equitable's VA exposure

    AXAUSCS\2019\11. Project Sputnik (Sep-2019)\1. Presentation\31. Investor Messaging\Sputnik Investor Presentation v55.pptx 2 Significantly de-risks Equitable’s VA exposure Net amount at risk (NAR) CTE98 required capital to cover tail risk $bn Pre-transaction Post-transaction $bn ▼ 44% ▼ 64% 22 19 ▼ 5

  8. Slide 8: Transaction structure provides meaningful protections

    AXAUSCS\2019\11. Project Sputnik (Sep-2019)\1. Presentation\31. Investor Messaging\Sputnik Investor Presentation v55.pptx 3 Transaction structure provides meaningful protections Protections Pro-forma structure Ongoing premium / claim payments Significant trust overcollateralization with ✓ daily top-

  9. Slide 9: Attractive valuation of c. $1.2 billion

    AXAUSCS\2019\11. Project Sputnik (Sep-2019)\1. Presentation\31. Investor Messaging\Sputnik Investor Presentation v55.pptx 4 Attractive valuation of c. $1.2 billion $bn $1.2 $0.1 $0.3 $0.8 Statutory Surplus Ceding Commission2 Tax Benefit Total Value to EQH Released1 1 Includes statutory surplus of Co

  10. Slide 10: Accelerates capital return with modest pro forma impact

    AXAUSCS\2019\11. Project Sputnik (Sep-2019)\1. Presentation\31. Investor Messaging\Sputnik Investor Presentation v55.pptx 5 Accelerates capital return with modest pro forma impact Capital Impact Accounting Impact1 500m ▪ Non-GAAP operating earnings additional share repurchases impact of c. $150m, de

  11. Slide 11: Key messages

    AXAUSCS\2019\11. Project Sputnik (Sep-2019)\1. Presentation\31. Investor Messaging\Sputnik Investor Presentation v55.pptx Key messages ✓ First of its kind reinsurance transaction for VA policies ✓ Substantial value created for shareholders ✓ Focus remains in pursuit of value accretive growth Legacy

  12. Slide 12: Appendix

    AXAUSCS\2019\11. Project Sputnik (Sep-2019)\1. Presentation\31. Investor Messaging\Sputnik Investor Presentation v55.pptx Appendix Equitable Holdings Legacy VA Divestiture Announcement

  13. Slide 13: Transaction overview

    AXAUSCS\2019\11. Project Sputnik (Sep-2019)\1. Presentation\31. Investor Messaging\Sputnik Investor Presentation v55.pptx Transaction overview ▪ Divests pre-crisis legacy variable annuities block backed by $12bn of general account assets through a reinsurance transaction and Corporate Solutions Life

  14. Slide 14: Overview of transaction structure

    AXAUSCS\2019\11. Project Sputnik (Sep-2019)\1. Presentation\31. Investor Messaging\Sputnik Investor Presentation v55.pptx Overview of transaction structure 1 Transaction Steps EQH Venerable 1◼ Equitable sells 100% of stock of 2 Corporate Solutions Life Re to Venerable 3 2◼ Equitable receives cash an

  15. Slide 15: Overview of accounting impact

    AXAUSCS\2019\11. Project Sputnik (Sep-2019)\1. Presentation\31. Investor Messaging\Sputnik Investor Presentation v55.pptx Overview of accounting impact ► Reinsurance accounting treatment for the transaction leads to deferred reinsurance cost • No impact is recorded at time of closing; cost is amorti

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