Equitable Holdings, Inc. · NYSE:EQH
Equitable — AXA Equitable Holdings — Q1 2018 Earnings Presentation
29 slides from Equitable's earnings presentation, Jun 19, 2018
Slide 1: Financial Supplement First Quarter 2018
Financial Supplement First Quarter 2018 ______________________________________________________________________________________________________________________________________________________ Page 1
Slide 2: Table of Contents
Table of Contents Consolidated Financials and Key Metrics Page Key Metrics Summary 4 Consolidated Statements of Income 5 Consolidated Balance Sheets 6 Operating Earnings by Segment 7 Assets Under Management and Administration 8 Sales Metrics by Segment 9 Select Metrics from Business Segments and Cor
Slide 3: Consolidated Financials and Key Metrics
Consolidated Financials and Key Metrics ______________________________________________________________________________________________________________________________________________________ Page 3
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) 3/31/2017 6/30/2017 9/30/2017 12/31/2017 3/31/2018 Change 3/31/2017 3/31/2018 Change Net income (loss) $ (197) $ 698 $ 90 $ 682 $ 291 (247.7)%$ (197) $ 291 (247.7)% Net income (loss) a
Slide 5: Consolidated Statements of Income (Loss)
Consolidated Statements of Income (Loss) Three Months Ended Year-to-Date (in millions USD, unless otherwise indicated) 3/31/2017 6/30/2017 9/30/2017 12/31/2017 3/31/2018 Change 3/31/2017 3/31/2018 Change Revenues Policy charges and fee income $ 956 $ 935 $ 970 $ 872 $ 972 1.7%$ 956 $ 972 1.7% Premiu
Slide 6: Consolidated Balance Sheets
Consolidated Balance Sheets Balances as of (in millions USD, unless otherwise indicated) 6/30/2017 9/30/2017 12/31/2017 3/31/2018 Assets Total investments $ 76,274 $ 78,265 $ 81,782 $ 78,883 Cash and cash equivalents 6,187 6,446 4,814 6,091 Cash and securities segregated, at fair value 1,078 789 825
Slide 7: Operating Earnings by Segment
Operating Earnings by Segment Three Months Ended March 31, 2018 Investment Individual Management and Protection Corporate and (in millions USD, unless otherwise indicated) Retirement Group Retirement Research Solutions Other Consolidated Revenues Policy charges, fee income and premiums $ 540 $ 64 $
Slide 8: Assets Under Management and Administration
Assets Under Management and Administration . Balances as of (in millions USD, unless otherwise indicated) 3/31/2017 6/30/2017 9/30/2017 12/31/2017 3/31/2018 Assets Under Management AB AUM Total AB $ 497,875 $ 516,600 $ 534,939 $ 554,485 $ 549,468 Exclusion for General Account and other Affiliated Ac
Slide 9: Sales Metrics by Segment
Sales Metrics by Segment Three Months Ended Year-to-Date (in millions USD, unless otherwise indicated) 3/31/2017 6/30/2017 9/30/2017 12/31/2017 3/31/2018 Change 3/31/2017 3/31/2018 Change Insurance Operations: Individual Retirement First year premiums and deposits $ 1,862 $ 1,940 $ 1,610 $ 1,683 $ 1
Slide 10: Select Metrics from Business Segments and Corporate and Other
Select Metrics from Business Segments and Corporate and Other ______________________________________________________________________________________________________________________________________________________ Page 10
Slide 11: Individual Retirement - Profit and Loss Statement and Summary Metrics
Individual Retirement - Profit and Loss Statement and Summary Metrics Three Months Ended or As of Year-to-Date or As of (in millions USD, unless otherwise indicated) 3/31/2017 6/30/2017 9/30/2017 12/31/2017 3/31/2018 Change 3/31/2017 3/31/2018 Change Revenues Policy charges, fee income and premiums
Slide 12: 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) 3/31/2017 6/30/2017 9/30/2017 12/31/2017 3/31/2018 3/31/2017 3/31/2018 Sales Metrics First Year Premiums by Product: SCS $ 1,074 $ 1,076 $ 832 $ 799 $ 775
Slide 13: Group Retirement - Profit and Loss Statement and Summary Metrics
Group Retirement - Profit and Loss Statement and Summary Metrics Three Months Ended or As of Year-to-Date or As of (in millions USD, unless otherwise indicated) 3/31/2017 6/30/2017 9/30/2017 12/31/2017 3/31/2018 Change 3/31/2017 3/31/2018 Change Revenues Policy charges, fee income and premiums$ 59 $
Slide 14: 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) 3/31/2017 6/30/2017 9/30/2017 12/31/2017 3/31/2018 3/31/2017 3/31/2018 Sales Metrics Gross premiums: First-year premiums $ 338 $ 354 $ 305 $ 390 $ 343 $ 338 $ 3
Slide 15: Investment Management and Research - Profit and Loss Statement and Summary Metrics
Investment Management and Research - Profit and Loss Statement and Summary Metrics (1) Three Months Ended or As of Year-to-Date or As of (in millions USD, unless otherwise indicated) 3/31/2017 6/30/2017 9/30/2017 12/31/2017 3/31/2018 Change 3/31/2017 3/31/2018 Change Revenues Net investment income (
Slide 16: 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) 3/31/2017 6/30/2017 9/30/2017 12/31/2017 3/31/2018 AUM Rollforward Balance as of beginning of period $ 480.2 $ 497.9 $ 516.6 $ 534.9 $ 554.5 Sales/new accounts 19.0
Slide 17: Investment Management and Research - Net Flows
Investment Management and Research - Net Flows Three Months Ended (in billions USD, unless otherwise indicated) 3/31/2017 6/30/2017 9/30/2017 12/31/2017 3/31/2018 Net Flows by Distribution Channel Institutions US $ (2.3) $ (0.8) $ 0.5 $ 1.6 $ (5.6) Global and Non-US 0.4 2.0 0.9 1.4 2.8 Total Institu
Slide 18: Protection Solutions - Profit and Loss Statement and Summary Metrics
Protection Solutions - Profit and Loss Statement and Summary Metrics Three Months Ended or As of Year-to-Date or As of (in millions USD, unless otherwise indicated) 3/31/2017 6/30/2017 9/30/2017 12/31/2017 3/31/2018 Change 3/31/2017 3/31/2018 Change Revenues Policy charges, fee income and premiums$
Slide 19: 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) 3/31/2017 6/30/2017 9/30/2017 12/31/2017 3/31/2018 3/31/2017 3/31/2018 Sales Metrics First Year Premiums by Product Line: Universal Life $ 2 $ 1 $ 1 $ 0 $ 1
Slide 20: Investments
Investments ______________________________________________________________________________________________________________________________________________________ Page 20
Slide 21: Investment Portfolio Composition
Investment Portfolio Composition Balances as of (in millions USD, unless otherwise indicated) 12/31/2017 3/31/2018 Amount % of Total Amount % of Total Composition of investment portfolio Fixed maturities, available for sale, at fair value $ 46,941 57.1%$ 43,484 54.0% Mortgage loans on real estate 10
Slide 22: Results of General Account Investment Assets
Results of General Account Investment Assets Three Months Ended Three Months Ended Year Ended (in millions USD, unless otherwise indicated) 3/31/2018 3/31/2017 12/31/2017 (2) (2) (2) Yield Amount Yield Amount Yield Amount Fixed Maturities(1): Investment grade Income (loss) 3.64%$ 396 3.67%$ 374 3.64
Slide 23: Additional Information
Additional Information ______________________________________________________________________________________________________________________________________________________ Page 23
Slide 24: 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) 3/31/2017 6/30/2017 9/30/2017 12/31/2017 3/31/2018 3/31/2017 3/31/2018 Deferred Acquisition Costs Balance as of beginning of period $ 6,045 $ 6,026 $ 6,101 $ 6,114 $
Slide 25: Use of Non-GAAP Financial Measures (1/2)
Use of Non-GAAP Financial Measures (1/2) In addition to our results presented in accordance with U.S. GAAP, we report Non-GAAP Operating Earnings, Non-GAAP Operating ROC by segment for our Individual Retirement, Group Retirement and Protection Solutions segments, Book value per share, excluding AOCI
Slide 26: Use of Non-GAAP Financial Measures (2/2)
Use of Non-GAAP Financial Measures (2/2) Non-GAAP Operating ROC by Segment We report Non-GAAP Operating ROC by segment for our Individual Retirement, Group Retirement and Protection Solutions segments, which is a non-GAAP financial measure used to evaluate our recurrent profitability on a consolidat
Slide 27: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Three Months Ended or As of Year-to-Date or As of (in millions USD, unless otherwise indicated) 3/31/2017 6/30/2017 9/30/2017 12/31/2017 3/31/2018 3/31/2017 3/31/2018 Net income (loss) attributable to Holdings Net income (loss) attributable to Holdings (290) 608 (
Slide 28: 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
Slide 29: 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 Lynch Jay Cohen +1 (646) 855-5716 Barclays Jay Gelb +1 (212) 526-1561 Citi Suneet Kamath +1 (212) 816-3457 Credit Suisse Andrew Kligerman
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