Equitable Holdings, Inc. · NYSE:EQH

Equitable — AXA Equitable Holdings — Q3 2018 Earnings Presentation

32 slides from Equitable's earnings presentation, Nov 13, 2018

1. Slide 1: Financial Supplement Third Quarter 2018

   Financial Supplement Third Quarter 2018

2. Slide 2: Table of Contents

   Table of Contents Consolidated Financials and Key Metrics Page Key Metrics Summary 4 Consolidated Statements of Income (Loss) 5 Consolidated Balance Sheets 6 Consolidated Capital Structure 7 Operating Earnings (Loss) by Segment and Corporate and Other (1/2) 8 Operating Earnings (Loss) by Segment and

3. Slide 3: Consolidated Financials and Key Metrics

   Consolidated Financials and Key Metrics 3

4. Slide 4: Key Metrics Summary

   Key Metrics Summary Three Months Ended or As of Year-to-Date or As of (in millions USD, unless otherwise indicated) 9/30/2017 12/31/2017 3/31/2018 6/30/2018 9/30/2018 Change 9/30/2017 9/30/2018 Change Net income (loss) $ 106 $ 627 $ 337 $ 261 $ (443) N/M $ 630 $ 154 (75.6)% Net income (loss) attribu

5. Slide 5: Consolidated Statements of Income (Loss)

   Consolidated Statements of Income (Loss) Three Months Ended Year-to-Date (in millions USD, unless otherwise indicated) 9/30/2017 12/31/2017 3/31/2018 6/30/2018 9/30/2018 Change 9/30/2017 9/30/2018 Change Revenues Policy charges and fee income $ 953 $ 883 $ 966 $ 964 $ 951 (0.2)% $ 2,810 $ 2,881 2.5

6. Slide 6: Consolidated Balance Sheets

   Consolidated Balance Sheets Balances as of (in millions USD, unless otherwise indicated) 9/30/2017 12/31/2017 3/31/2018 6/30/2018 9/30/2018 Assets Total investments $ 78,265 $ 81,782 $ 78,883 $ 76,828 $ 78,942 Cash and cash equivalents 6,446 4,814 6,091 6,833 4,777 Cash and securities segregated, at

7. Slide 7: Consolidated Capital Structure

   Consolidated Capital Structure Balances as of (in millions USD, unless otherwise indicated) 6/30/2018 9/30/2018 Short-term debt AB commercial paper $ 515 $ 398 AB revolving credit facility — — Total short-term debt 515 398 Total long-term debt 4,407 4,408 Total short-term and long-term debt: [A] 4,9

8. Slide 8: Operating Earnings (Loss) by Segment and Corporate and Other (1/2)

   Operating Earnings (Loss) by Segment and Corporate and Other (1/2) Three Months Ended September 30, 2018 Individual Inv Mgmt and Protection Corporate and (in millions USD, unless otherwise indicated) Retirement Group Retirement Research Solutions Other Consolidated Revenues Policy charges, fee incom

9. Slide 9: Operating Earnings (Loss) by Segment and Corporate and Other (2/2)

   Operating Earnings (Loss) by Segment and Corporate and Other (2/2) Year to Date September 30, 2018 Individual Inv Mgmt and Protection Corporate and (in millions USD, unless otherwise indicated) Retirement Group Retirement Research Solutions Other Consolidated Revenues Policy charges, fee income and

10. Slide 10: Assets Under Management and Administration

    Assets Under Management and Administration Balances as of (in millions USD, unless otherwise indicated) 9/30/2017 12/31/2017 3/31/2018 6/30/2018 9/30/2018 Assets Under Management AB AUM Total AB $ 534,939 $ 554,485 $ 549,468 $ 539,800 $ 550,400 Exclusion for General Account and other Affiliated Acco

11. Slide 11: Sales Metrics by Segment

    Sales Metrics by Segment Three Months Ended or As of Year-to-Date (in millions USD, unless otherwise indicated) 9/30/2017 12/31/2017 3/31/2018 6/30/2018 9/30/2018 Change 9/30/2017 9/30/2018 Change Insurance Operations: Individual Retirement First year premiums and deposits $ 1,610 $ 1,683 $ 1,619 $

12. Slide 12: Select Metrics from Business Segments

    Select Metrics from Business Segments 12

13. Slide 13: Individual Retirement - Statements of Income (Loss) and Summary Metrics

    Individual Retirement - Statements of Income (Loss) and Summary Metrics Three Months Ended Year-to-Date (in millions USD, unless otherwise indicated) 9/30/2017 12/31/2017 3/31/2018 6/30/2018 9/30/2018 Change 9/30/2017 9/30/2018 Change Revenues Policy charges, fee income and premiums $ 531 $ 556 $ 52

14. Slide 14: Individual Retirement - Select Operating Metrics

    Individual Retirement - Select Operating Metrics Three Months Ended or As of Year-to-Date or As of (in millions USD, unless otherwise indicated) 9/30/2017 12/31/2017 3/31/2018 6/30/2018 9/30/2018 9/30/2017 9/30/2018 Sales Metrics First Year Premiums by Product: SCS $ 832 $ 799 $ 775 $ 999 $ 1,064 $

15. Slide 15: Group Retirement - Statements of Income (Loss) and Summary Metrics

    Group Retirement - Statements of Income (Loss) and Summary Metrics Three Months Ended Year-to-Date (in millions USD, unless otherwise indicated) 9/30/2017 12/31/2017 3/31/2018 6/30/2018 9/30/2018 Change 9/30/2017 9/30/2018 Change Revenues Policy charges, fee income and premiums $ 51 $ 77 $ 64 $ 70 $

16. Slide 16: Group Retirement - Select Operating Metrics

    Group Retirement - Select Operating Metrics Three Months Ended or As of Year-to-Date or As of (in millions USD, unless otherwise indicated) 9/30/2017 12/31/2017 3/31/2018 6/30/2018 9/30/2018 9/30/2017 9/30/2018 Sales Metrics Gross premiums: First-year premiums $ 304 $ 390 $ 343 $ 352 $ 344 $ 997 $ 1

17. Slide 17: Investment Management and Research - Statements of Income (Loss) and Summary Metrics

    Investment Management and Research - Statements of Income (Loss) and Summary Metrics Three Months Ended Year-to-Date (in millions USD, unless otherwise indicated) 9/30/2017 12/31/2017 3/31/2018 6/30/2018 9/30/2018 Change 9/30/2017 9/30/2018 Change Revenues Net investment income (loss) $ 9 $ 28 $ 3 $

18. Slide 18: Investment Management and Research - Select Operating Metrics

    Investment Management and Research - Select Operating Metrics Three Months Ended or As of (in billions USD, unless otherwise indicated) 9/30/2017 12/31/2017 3/31/2018 6/30/2018 9/30/2018 AUM Rollforward Balance as of beginning of period $ 516.6 $ 534.9 $ 554.5 $ 549.5 $ 539.8 Sales/new accounts 20.0

19. Slide 19: Investment Management and Research - Net Flows

    Investment Management and Research - Net Flows (in billions USD, unless otherwise indicated) 9/30/2017 12/31/2017 3/31/2018 6/30/2018 9/30/2018 Net Flows by Distribution Channel Institutions US $ 0.5 $ 1.6 $ (5.6) $ (0.7) $ (1.2) Global and Non-US 0.9 1.4 2.8 (7.3) 1.0 Total Institutions $ 1.4 $ 3.0

20. Slide 20: Protection Solutions - Statements of Income (Loss) and Summary Metrics

    Protection Solutions - Statements of Income (Loss) and Summary Metrics Three Months Ended or As of Year-to-Date or As of (in millions USD, unless otherwise indicated) 9/30/2017 12/31/2017 3/31/2018 6/30/2018 9/30/2018 Change 9/30/2017 9/30/2018 Change Revenues Policy charges, fee income and premiums

21. Slide 21: Protection Solutions - Select Operating Metrics

    Protection Solutions - Select Operating Metrics Three Months Ended or As of Year-to-Date or As of (in millions USD, unless otherwise indicated) 9/30/2017 12/31/2017 3/31/2018 6/30/2018 9/30/2018 9/30/2017 9/30/2018 Sales Metrics First Year Premiums by Product Line: Universal Life $ 1 $ — $ 1 $ 1 $ 1

22. Slide 22: Investments

    Equitable EAN foldings Investments 22

23. Slide 23: Consolidated Investment Portfolio Composition

    Consolidated Investment Portfolio Composition Balances as of (in millions USD, unless otherwise indicated) 12/31/2017 9/30/2018 Amount % of Total Amount % of Total Composition of investment portfolio Fixed maturities, available for sale, at fair value $ 46,941 54.2 % $ 43,779 52.3 % Mortgage loans o

24. Slide 24: Consolidated Results of General Account Investment Portfolio

    Consolidated Results of General Account Investment Portfolio Nine Months Ended Nine Months Ended Year Ended (in millions USD, unless otherwise indicated) 9/30/2018 9/30/2017 12/31/2017 Yield Amount(1) Yield Amount(1) Yield Amount(1) Fixed Maturities: Income (loss) 3.83 % $ 1,280 3.87 % $ 1,229 3.77

25. Slide 25: Additional Information

    Equitable 2AM Holdings Additional Information 25

26. Slide 26: Deferred Acquisition Costs Rollforward

    Deferred Acquisition Costs Rollforward Three Months Ended or As of Year-to-Date or As of (in millions USD, unless otherwise indicated) 9/30/2017 12/31/2017 3/31/2018 6/30/2018 9/30/2018 9/30/2017 9/30/2018 Deferred Acquisition Costs Balance as of beginning of period $ 6,111 $ 6,090 $ 5,919 $ 6,245 $

27. Slide 27: Use of Non-GAAP Financial Measures

    Use of Non-GAAP Financial Measures In addition to our results presented in accordance with U.S. GAAP, we report Non-GAAP Operating Earnings, Pro Forma Non-GAAP Operating ROE, and Non-GAAP Operating ROC by segment for our Individual Retirement, Group Retirement and Protection Solutions segments, Book

28. Slide 28: Reconciliation of Non-GAAP Measures (1/3)

    Reconciliation of Non-GAAP Measures (1/3) Three Months Ended Year-to-Date (in millions USD, unless otherwise indicated) 9/30/2017 12/31/2017 3/31/2018 6/30/2018 9/30/2018 9/30/2017 9/30/2018 Net income (loss) attributable to Holdings Net income (loss) attributable to Holdings $ 10 $ 483 $ 214 $ 164

29. Slide 29: Reconciliation of Non-GAAP Measures (2/3)

    Reconciliation of Non-GAAP Measures (2/3) Three Months Ended or As of Twelve Months Ended (in millions USD, unless otherwise indicated) 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 9/30/2018 3/31/2018 6/30/2018 9/30/2018 Net Income to Pro forma Net Income Net Income (loss), as reported $ 708 $

30. Slide 30: Reconciliation of Non-GAAP Measures (3/3)

    Reconciliation of Non-GAAP Measures (3/3) Twelve Months Ended Twelve Months Ended (in millions USD, unless otherwise indicated) 12/31/2016 12/31/2017 12/31/2017 Net Income to Pro forma Net Income Net Income (loss), as reported — — $ 1,257 Adjustments related to: Pro forma adjustments before income t

31. Slide 31: Glossary of Selected Financial and Product Terms

    Glossary of Selected Financial and Product Terms Account Value (“AV”) - AV generally equals the aggregate policy account value of our retirement and protection products. General Account AV refers to account balances in investment options that are backed by the General Account while Separate Account

32. Slide 32: Analyst Coverage, Ratings & Contact Information

    Analyst Coverage, Ratings & Contact Information Analyst Coverage Firm Analyst Phone Number Autonomous Research Erik Bass 1 (646) 561-6248 Bank of America Merrill Jay Cohen 1 (646) 855-5716 Barclays Jay Gelb 1 (212) 526-1561 Citi Suneet Kamath 1 (212) 816-3457 Credit Suisse Andrew Kligerman 1 (212) 3

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