Equitable Holdings, Inc. · NYSE:EQH
Equitable — Q1 2021 Earnings Presentation
17 slides from Equitable's earnings presentation, May 6, 2021
Slide 1: Equitable Holdings First Quarter 2021 Earnings Results
Equitable Holdings First Quarter 2021 Earnings Results May 6, 2021 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: First Quarter 2021 Highlights
First Quarter 2021 Highlights Strong results supported by robust new business activity • Non-GAAP operating earnings of $600m, or $1.35 per share; up 19% year-over-year on a per share basis • AUM up 27% year-over-year to $822bn, supported by net flows of $4.6bn and strong equity markets Fair value e
Slide 4: Driving long-term shareholder value
Driving long-term shareholder value Build on leadership Scale emerging Optimize risk-weighted positions businesses returns ▪ Broad distribution reach: ▪ AB alternatives platform, ▪ Venerable transaction on track to • #2 VA player1 – record SCS sales $20bn of committed capital close in Q2’21 • #1 in
Slide 5: Driven by our purpose to be an enduring force for good
Driven by our purpose to be an enduring force for good Caring for our • 70% of GA IG1 corporates aligned to UN’s global goals E environment • AllianceBernstein – $21bn in Portfolios with Purpose Investing in • CEO Taskforce to Advance Racial Equity our people • 20k+ employee hours invested to build
Slide 6: First Quarter Consolidated Results Summary
First Quarter Consolidated Results Summary Non-GAAP Operating Earnings Non-GAAP Operating EPS Financial Highlights $m $ Non-GAAP operating EPS increased +12% +19% 19% from $1.13 to $1.35 driven by: 600 1.35 ▪ Increase in net investment income due 535 1.13 to higher alternatives income ▪ Increase in
Slide 7: Individual Retirement
Individual Retirement Operating Earnings Highlights $m ▪ Operating earnings marginally declined as strong growth from -3% SCS sales and fee-revenue on higher account values were 373 offset by higher death claims 363 ▪ Record SCS sales driving first year premiums of c. $2.4bn in the quarter, up 24% y
Slide 8: Group Retirement
Group Retirement Operating Earnings Highlights $m ▪ Operating earnings increased due to higher alternatives +42% income and fee-revenue on higher account values 151 ▪ Positive net flows in tax-exempt 403(b) and 457 offset by 106 higher surrenders in corporate 401(k) market ▪ Strong renewals in the t
Slide 9: Investment Management and Research (AB)
Investment Management and Research (AB) Operating Earnings Highlights $m ▪ Operating earnings growth driven by higher base fees on +27% higher average AUM offsetting increased operating expenses 121 ▪ $6.5bn of active net inflows in the quarter with positive flows 95 across all channels ▪ Adjusted o
Slide 10: Protection Solutions
Protection Solutions Operating Earnings Highlights $m ▪ Operating earnings declined due to unfavorable mortality -16% experience related to COVID-19, partially offset by PFBL 49 reserve release and higher alternatives income 41 ▪ Strong gross premium growth in Employee Benefits, up 47% year-over-yea
Slide 11: Strong capitalization and liquidity enabling capital return
Strong capitalization and liquidity enabling capital return Robust capitalization and liquidity Delivering on 50-60% payout ratio Dividends ▪ Cash & liquid assets of $2.5bn at Holdings Accelerated Share Repurchases 504 Repurchases from market 74 ▪ Returned $504m to shareholders, including $430m of s
Slide 12: First Quarter 2021 Highlights
First Quarter 2021 Highlights Strong results supported by robust new business activity • Non-GAAP operating earnings of $600m, or $1.35 per share; up 19% year-over-year on a per share basis • AUM up 27% year-over-year to $822bn, supported by net flows of $4.6bn and strong equity markets Fair value e
Slide 13: Appendix
Appendix Equitable Holdings First Quarter 2021 Earnings Results
Slide 14: Net Income to Non-GAAP Operating Earnings, 1Q21
Net Income to Non-GAAP Operating Earnings, 1Q21 $m 376 (555) 600 2,267 (1,488) Net loss VA Product Features All other adjustments1 Income tax expense Non-GAAP operating earnings All figures $m Description 1Q21 GMxB accounting asymmetry: • GMxB hedging 2,348 • Static hedge cash option cost 11 VA Prod
Slide 15: Investment Portfolio Overview
Investment Portfolio Overview General Account Investment Portfolio Fixed maturity portfolio <Baa U.S. Treasury, Gov’t and Agency 3% 15% Other Fixed Maturities Baa 8% 34% Short Duration Corporates 52% $97bn 2 4% Fixed Maturities1 $73bn 62% 14% Mortgage Loans Aaa, Aa, A 3% 4% Policy Loans Alts. & Othe
Slide 16: 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, (in millions) 2021 2020 Net income (loss) attributable to Holdings $ (1,488) $ 5,388 Adjustments related to: Variable annuity product features (1) 2,267 (6,869) Investment
Slide 17: 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) 6/30/2019 9/30/2019 12/31/2019 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021 Total Equity Attributable to Holdings Total equit