Slide 1: Equitable Holdings Third Quarter 2022 Earnings Results
Equitable Holdings Third Quarter 2022 Earnings Results November 3, 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: Third quarter highlights
Third quarter highlights Solid performance through continued market headwinds • $716bn AUM down 21% year to date, down 5% in the quarter • Non-GAAP operating earnings1 of $498m, or $1.28 per share, down 2% compared to Q2 on a per share basis • Positive impact from Q3 assumption update as economic re
Slide 4: Business model meets client needs and grows shareholder value
Business model meets client needs and grows shareholder value Strong retirement net flows Diversified asset management Increased demand for advice $4.8bn in premiums,1 up 6% YoY, with record AB not immune to industry-wide outflows, $2.4bn in broker-dealer gross sales, with value of new business $6.6
Slide 5: Third quarter consolidated results summary
Third 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 $498m, or $1.28 per share, decreased -23% -15% 34% from $1.94 in prior year 660 1.56 511 1.
Slide 6: Prudently managing capital return to deliver value
Prudently managing capital return to deliver value Strong capital position in volatile markets Consistently delivering on 50-60% payout ratio Dividends Share Repurchases ▪ Cash & liquid assets of $2.0bn at Holdings, supported by $0.9bn insurance company dividend in July $349m $70m $295m ▪ Returned $
Slide 7: LDTI adoption benefits Equitable and the industry
LDTI adoption benefits Equitable and the industry Same No impact to cash flow generation1 as hedge program well-aligned; cashflow conversion Cash Flows will increase Same Proven first-dollar program targeting economic liability, with supplementary program Hedge Program protecting statutory capital i
Slide 8: Third quarter highlights
Third quarter highlights Solid performance through continued market headwinds • $716bn AUM down 21% year to date, down 5% in the quarter • Non-GAAP operating earnings1 of $498m, or $1.28 per share, down 2% compared to Q2 on a per share basis • Positive impact from Q3 assumption update as economic re
Slide 9: Appendix
Appendix Equitable Holdings Third Quarter 2022 Earnings Results
Slide 10: 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 2Excludes previously announced $3.9bn AXA low-fee redemptions
Slide 11: Individual Retirement
Individual Retirement Operating Earnings, less Notable Items1 Highlights $m ▪ Operating earnings less notables1 decreased primarily due to lower fee income on lower average account values partially 338 offset by increased NII associated with SCS 298 ▪ Notable items1 were $28m reflecting $11m of assu
Slide 12: Group Retirement
Group Retirement Operating Earnings, less Notable Items1 Highlights $m ▪ Operating earnings less notable items1 decreased primarily due 149 to lower fee income on lower average account values and lower NII from lower alts and prepayments 117 ▪ Notable items1 were $(17)m which include $(28)m from ass
Slide 13: Investment Management and Research (AB)
Investment Management and Research (AB) Operating Earnings, less Notable Items1 Highlights $m ▪ Operating earnings less notable items1 decreased primarily due to lower base fees on lower average AUM 134 ▪ $6.6bn2 of net outflows, ex-AXA redemptions, with $0.8bn of 94 inflows in AB Private Wealth sup
Slide 14: Protection Solutions
Protection Solutions Operating Earnings, less Notable Items1 Highlights $m ▪ Operating earnings less notable items1 decreased primarily due to lower NII from lower alts and prepayments 101 ▪ Notable items1 were $(8)m which include $(6)m of assumption 64 updates and $(2)m of one-time items ▪ Gross wr
Slide 15: Net Income to Non-GAAP Operating Earnings, 3Q22
Net Income to Non-GAAP Operating Earnings, 3Q22 $m 398 (59) 498 273 (114) Net Income VA Product Features All other adjustments1 Income tax expense Non-GAAP operating earnings All figures $m Description 3Q22 GMxB accounting asymmetry: • GMxB hedging (1) • Static hedge cash option cost 0 VA Product Sh
Slide 16: Investment Portfolio Overview
Investment Portfolio Overview General Account Investment Portfolio Fixed maturity portfolio U.S. Treasury, Gov’t and Agency <Baa 7% 4% 16% Baa Other Fixed Maturities $98 0.1% Corporates 53% bn2 Short Duration Fixed Maturities1 36% $75bn 16% 61% Mortgage Loans Aaa, Aa, A 4% 4% Policy Loans Alts. & Ot
Slide 17: 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) 2022 2021 Net income (loss) attributable to Holdings $ 273 $ 672 Adjustments related to: Variable annuity product features (114) 172 Investment gains (lo
Slide 18: 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) 12/31/2020 3/31/2021 6/30/2021 9/30/2021 12/31/2021 3/31/2022 6/30/2022 9/30/2022 Total Equity Attributable to Holdings Total equit
Slide 19: 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) Sep 30, 2022 Sep 30, 2021 Non-GAAP Operating Earnings $ 498 $ 818 Post-tax Adjustments related to Notable Items: Individual R
Slide 20: 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 9/30/2022 ($m) Retirement Retirement AB Solutions Consolidated & Other Non-GAAP Operating Earnings 270 134 94 72 (72) 498 Pre-tax adjustments related to Notable Items: Actuaria
Slide 21: Impact of Notable Items by segment and corporate & other
Appendix Impact of Notable Items1 by segment and corporate & other Individual Group Protection Corporate Three months ended 9/30/2022 ($m) Retirement Retirement AB Solutions Consolidated & Other Total revenues 3 3 — 27 2 34 Policy charges, fee income and premiums — — — 23 — 23 Net investment income