Slide 1: First Quarter 2018 Earnings Results
First Quarter 2018 Earnings Results June 20, 2018
Slide 2: Note Regarding Forward-Looking Statements
Note Regarding Forward-Looking Statements 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 identified by the fact that
Slide 3: AXA Equitable Holdings
AXA Equitable Holdings One of America’s leading financial services companies Our mission Since 1859, we have been providing advice and solutions that help our clients retire with dignity, protect their families and prepare for their financial future with confidence. Our heritage Our more than 12,100
Slide 4: AXA Equitable Holdings: Two Well-Established and Iconic Brands
AXA Equitable Holdings Operating through two well-established and iconic brands All figures as of 12/31/2017, unless otherwise noted NYSE: EQH Mkt cap.: $11.8bn¹ 100% 65% owned owned² NYSE: AB Mkt cap.: $8.0bn³ Employees & c. 8,600 c. 3,500 Advisors # Clients 2.8m4 2.6m5 AUM6 $211bn7 $554bn Financia
Slide 5: Completed Initial Public Offering
Completed Initial Public Offering AXA Equitable Holdings IPO was priced at $20 per share on May 9, 2018, and EQH began trading on the New York Stock Exchange on May 10, 2018 Milestones completed in 2Q18, not reflected in 1Q18 results Raised $3.8bn in long term debt primarily to repay internal loans
Slide 6: Recent Developments
Recent Developments ▪ Corporate tax rate decreased from 35% to 21% Tax reform ▪ Uplift to 1Q18 results ▪ NAIC variable annuity capital reform Increasing regulations ▪ Fiduciary proposals ▪ Rise in interest rates Macro economic factors ▪ Return of market volatility 6 | 1Q18 Earnings Presentation
Slide 7: First Quarter 2018 Financial Highlights
First Quarter 2018 Financial Highlights ▪ Total AUM of $665bn ▪ Strong Non-GAAP Operating Earnings1 which increased to $464m from $304m ▪ Fully executed on strategic priorities including issuance of debt and launch of IPO ▪ Maintained strong capital position ▪ Solid performance from retirement and p
Slide 8: Strategic Priorities
Strategic Priorities After tax reform, Non-GAAP Operating Earnings growth is expected to result in Non-GAAP Operating ROE in the mid-teens by 2020 5-7% Target Earnings CAGR1 $2.2-2.3bn $1.9bn1 Tax reform GA Optimization Productivity Growth 2017 2020 ▪ Target return of capital to stockholders equal t
Slide 9: First Quarter 2018 Consolidated Results Summary
First Quarter 2018 Consolidated Results Summary Non-GAAP Operating Earnings Non-GAAP Earnings Per Share 1 Financial Highlights $m $ Non-GAAP Operating Earnings +53% +53% +53% ▪ Driven by higher AUM and operating earnings in Individual Retirement, 464 0.83 due to improved variable annuity hedge margi
Slide 10: Variable Annuity Risk Management
Variable Annuity Risk Management Illustrative funding level Hedging program Rates ▪ Hedging program protects cash flows and Favorable Moderate stress Severe capitalization across a wide range of scenarios Fav. ▪ Hedging program performed as expected CTE98 during a volatile first quarter, with hedge
Slide 11: Individual Retirement
Individual Retirement Operating Earnings Key Drivers $m ▪ Operating earnings benefited from: o Increase in revenues due to higher account value o Improved VA hedge margins +78% ▪ Net flows decreased due to outflows from pre-2011 360 fixed rate block partially offset by inflows to newer, less capital
Slide 12: Group Retirement
Group Retirement Operating Earnings Key Drivers $m ▪ Operating earnings increased due to positive net flows and equity market performance, combined with lower operating expenses +29% ▪ Continued positive net flows, given increase in 76 gross premiums, reduction in surrenders and 59 withdrawals ▪ Gro
Slide 13: Investment Management and Research
Investment Management and Research Operating Earnings Key Drivers $m ▪ Operating earnings increased as double-digit revenue growth outpaced increase in expenses +153% ▪ Segment revenues increased due to positive mix shift toward higher fee products, higher average AUM and 81 strong performance fees
Slide 14: Protection Solutions
Protection Solutions Operating Earnings Key Drivers $m ▪ Operating earnings declined driven by higher DAC1 amortization costs associated with LRT2 ▪ Higher annualized premiums due to increased sales of -41% employee benefit products 39 ▪ Gross written premiums declined driven by lower 23 renewal pre
Slide 15: 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 Non-GAAP Operating ROE 5-7% 40-60% Mid-teens CAGR through 2020 by 2020 (after tax reform) AXA Equitable Life AllianceBernstein Target ca
Slide 16: First Quarter 2018 Financial Highlights
First Quarter 2018 Financial Highlights ▪ Total AUM of $665bn ▪ Strong Non-GAAP Operating Earnings1 which increased to $464m from $304m ▪ Fully executed on strategic priorities including issuance of debt and launch of IPO ▪ Maintained strong capital position ▪ Solid performance from retirement and p
Slide 17: First Quarter 2018 Earnings Results: Appendix
First Quarter 2018 Earnings Results Appendix June 20, 2018
Slide 18: 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, 2018 2017 (in millions) Net income (loss) attributable to Holdings $ 168 $ (290) Adjustments related to: Variable annuity product features 212 291 Investment (gains) losse