Slide 1: Equitable Holdings Second Quarter 2022 Earnings Results
Equitable Holdings Second Quarter 2022 Earnings Results August 4, 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: Second quarter highlights
Second quarter highlights Economic management protects balance sheet through market uncertainty • Strong financial standing with combined RBC ratio of c. 440%, above 375-400% target • High quality investment portfolio built to withstand volatility, 96% investment grade with average credit rating of
Slide 4: Fair value reserving & hedging protects capital in volatile markets
Fair value reserving & hedging protects capital in volatile markets Equity market and interest rate movements by time period S&P 500 10yr UST 2H’19 1H’20 2H’20 1H’21 2H’21 1H’22 RBC Ratio 500% 415% 410% 450% 440% 440% HoldCo Cash ($bn) $1.3 $2.1 $2.9 $2.5 $1.6 $1.3 Capital Return $0.3 $0.81 $0.4 $0.
Slide 5: Unique retirement, asset management & advice businesses
Unique retirement, asset management & advice businesses ► Leveraging synergies between Equitable and AB to drive growth, with nearly 50% of $10bn capital commitment1 deployed ► CarVal acquisition brings Private Markets to c. $54bn; future growth supported by $750m commitment to AB CarVal from Equita
Slide 6: Second quarter consolidated results summary
Second 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 $526, or 1.31 per share, decreased 23% from -19% -10% $1.71 in prior year 658 1.48 1.33 ▪
Slide 7: Economic risk management protects balance sheet
Economic risk management protects balance sheet Economic reserves Dynamic hedging program Static hedging overlay ▪ Economic liability reflects ▪ Future & swaps-based, targets ▪ Options & swaps-based, emerging experience economic liability targets CTE98 ▪ Interest rates based on the ▪ First-dollar he
Slide 8: Fair value management supporting capital return
Fair value management supporting capital return Capital allocation driving long-term shareholder value ▪ Closed Carval transaction utilizing efficient funding by using AB units as currency ▪ Upstreamed $930m, maximizing financial flexibility to consistently return capital return Strong capital posit
Slide 9: Second quarter highlights
Second quarter highlights Economic management protects balance sheet through market uncertainty • Strong financial standing with combined RBC ratio of c. 440%, above 375-400% target • High quality investment portfolio built to withstand volatility, 96% investment grade with average credit rating of
Slide 10: Appendix
Appendix Equitable Holdings Second Quarter 2022 Earnings Results
Slide 11: Explanation of footnotes
Explanation of footnotes Page 3 1Fixed maturity portfolio average credit rating, excluding treasuries, as of 6/30/22. 2Non-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 rec
Slide 12: Individual Retirement
Individual Retirement Operating Earnings, less Notable Items1 Highlights $m ▪ Operating earnings less notable items1 decreased, primarily due to lower fee income attributed to lower account values and lower NII 365 from lower alternative income and prepayments 293 ▪ Notable items1 of $19m primarily
Slide 13: Group Retirement
Group Retirement Operating Earnings, less Notable Items1 Highlights $m ▪ Operating earnings less notable items1 decreased, primarily due to -10% 154 lower fee income attributed to lower account values and lower 139 NII from lower alternative income and prepayments ▪ Notable items1 of $8m primarily r
Slide 14: Investment Management and Research (AB)
Investment Management and Research (AB) Operating Earnings, less Notable Items1 Highlights $m ▪ Operating earnings less notable items1 decreased, driven by -20% lower base and performance fees on lower average AUM 126 ▪ Closed CarVal acquisition, bringing Private Markets AUM to 101 $54bn, including
Slide 15: Protection Solutions
Protection Solutions Operating Earnings, less Notable Items1 Highlights $m +84% ▪ Operating earnings less notable items1 increased due to lower PFBL accrual, partially offset by lower NII from lower alternative income 79 and prepayments ▪ Notable items1 of $(22)m primarily reflect favorable mortalit
Slide 16: Net Income to Non-GAAP Operating Earnings, 2Q22
Net Income to Non-GAAP Operating Earnings, 2Q22 $m 1,728 (1,924) 719 3 526 Net Income VA Product Features All other adjustments1 Income tax expense Non-GAAP operating earnings All figures $m Description 2Q22 GMxB accounting asymmetry: • GMxB hedging (1,436) • Static hedge cash option cost 0 VA Produ
Slide 17: Investment Portfolio Overview
Investment Portfolio Overview General Account Investment Portfolio Fixed maturity portfolio <Baa U.S. Treasury, Gov’t and Agency 8% 4% 15% Baa Other Fixed Maturities $96 $73bn 0.1% 36% Short Duration bn2 Corporates 54% Fixed Maturities1 60% 15% Aaa, Aa, A Mortgage Loans 4% 4% Policy Loans Alts. & Ot
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 June 30, (in millions) 2022 2021 Net income (loss) attributable to Holdings $ 1,728 $ 123 Adjustments related to: Variable annuity product features (1,924) 1,193 Investment (gains)
Slide 19: 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) 9/30/2020 12/31/2020 3/31/2021 6/30/2021 9/30/2021 12/31/2021 3/31/2022 6/30/2022 Total Equity Attributable to Holdings Total equit
Slide 20: Impact of Notable Items by segment and category
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) June 30, 2022 June 30, 2021 Non-GAAP Operating Earnings $ 526 $ 758 Post-tax Adjustments related to Notable Items: Individual
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 June 30, 2022 ($m) Retirement Retirement AB Solutions Consolidated & Other Non-GAAP Operating Earnings 274 131 101 101 (81) 526 Pre-tax adjustments related to Notable Items: Ac
Slide 22: Impact of Notable Items by segment and corporate & other
Appendix Impact of Notable Items1 by segment and corporate & other Individual Group Protection Corporate Three months ended 6/30/2022 ($m) Retirement Retirement AB Solutions Consolidated & Other Total revenues 15 — — 1 — 17 Policy charges, fee income and premiums — — — — — Net investment income 15 —