Equitable Holdings, Inc. · NYSE:EQH
Equitable — Q1 2020 Earnings Presentation
32 slides from Equitable's earnings presentation, May 7, 2020
Slide 1: Equitable Holdings Financial Supplement First Quarter 2020
EQUITABLE A@ Hovvincs Equitable Holdings Financial Supplement First Quarter 2020
Slide 2: Table of Contents
Table of Contents Consolidated Financials and Key Metrics Page Key Metrics Summary 4 Consolidated Statements of Income (Loss) 5 Consolidated Balance Sheets 6 Consolidated Capital Structure 7 Operating Earnings (Loss) by Segment and Corporate and Other 8 Assets Under Management and Administration 9 S
Slide 3: Consolidated Financials and Key Metrics
Consolidated Financials and Key Metrics 1Q 2020 Financial Supplement 3
Slide 4: Key Metrics Summary
Key Metrics Summary For the Three Months Ended or As of For the Three Months Ended or As of (in millions USD, except per share and O/S share amounts) 3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 Change 3/31/2019 3/31/2020 Change Net income (loss) $ (709) $ 430 $ (316) $ (841) $ 5,447 868.3 % $
Slide 5: Consolidated Statements of Income (Loss)
Consolidated Statements of Income (Loss) For the Three Months Ended For the Three Months Ended (in millions USD, unless otherwise indicated) 3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 Change 3/31/2019 3/31/2020 Change Revenues Policy charges and fee income $ 931 $ 941 $ 929 $ 937 $ 991 6.4 %
Slide 6: Consolidated Balance Sheets
Consolidated Balance Sheets Balances as of (in millions USD, unless otherwise indicated) 3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 Assets Total investments $ 82,948 $ 86,901 $ 94,717 $ 93,340 $ 96,216 Cash and cash equivalents 5,129 4,734 4,471 4,405 10,315 Cash and securities segregated, a
Slide 7: Consolidated Capital Structure
Consolidated Capital Structure Balances as of (in millions USD, unless otherwise indicated) 3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 Short-term and long-term debt: Short-term debt AB commercial paper $ 540 $ 443 $ 303 $ — $ 105 AB revolving credit facility — — 80 — — Total short-term debt
Slide 8: Operating Earnings (Loss) by Segment and Corporate and Other
Operating Earnings (Loss) by Segment and Corporate and Other Three Months Ended March 31, 2020 Individual Retirement (in millions USD, unless otherwise indicated) (1) Group Retirement Inv Mgmt and Research Protection Solutions Corporate and Other Consolidated Revenues Policy charges, fee income and
Slide 9: Assets Under Management and Administration
Assets Under Management and Administration Balances as of (in billions USD, except for Equitable Headcount) 3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 Assets Under Management AB AUM Total AB $ 554.7 $ 580.8 $ 592.4 $ 622.9 $ 541.8 Exclusion for General Account and other Affiliated Accounts (
Slide 10: Sales Metrics by Segment
Sales Metrics by Segment For the Three Months Ended For the Three Months Ended (in millions USD, unless otherwise indicated) 3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 Change 3/31/2019 3/31/2020 Change Insurance Operations Individual Retirement First year premiums and deposits $ 1,879 $ 2,09
Slide 11: Business Segments: Operating Earnings Results and Metrics
Business Segments: Operating Earnings Results and Metrics 1Q 2020 Financial Supplement 11
Slide 12: Individual Retirement - Operating Earnings (Loss) and Summary Metrics
Individual Retirement - Operating Earnings (Loss) and Summary Metrics For the Three Months Ended or As of For the Three Months Ended or As of (in millions USD, unless otherwise indicated) 3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 Change 3/31/2019 3/31/2020 Change Revenues Policy charges, fe
Slide 13: Individual Retirement - Select Operating Metrics
Individual Retirement - Select Operating Metrics For the Three Months Ended or As of For the Three Months Ended or As of (in millions USD, unless otherwise indicated) 3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 3/31/2019 3/31/2020 Sales Metrics First Year Premiums by Product: SCS $ 1,106 $ 1,
Slide 14: Group Retirement - Operating Earnings (Loss) and Summary Metrics
Group Retirement - Operating Earnings (Loss) and Summary Metrics For the Three Months Ended or As of For the Three Months Ended or As of (in millions USD, unless otherwise indicated) 3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 Change 3/31/2019 3/31/2020 Change Revenues Policy charges, fee inc
Slide 15: Group Retirement - Select Operating Metrics
Group Retirement - Select Operating Metrics For the Three Months Ended For the Three Months Ended or As of or As of (in millions USD, unless otherwise indicated) 3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 3/31/2019 3/31/2020 Sales Metrics Gross premiums: First-year premiums $ 329 $ 358 $ 332
Slide 16: Investment Management and Research - Operating Earnings (Loss) and Summary Metrics
Investment Management and Research - Operating Earnings (Loss) and Summary Metrics For the Three Months Ended or As of For the Three Months Ended or As of (in millions USD, unless otherwise indicated) 3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 Change 3/31/2019 3/31/2020 Change Revenues Net i
Slide 17: Investment Management and Research - Select Operating Metrics
Investment Management and Research - Select Operating Metrics For the Three Months Ended or As of (in billions USD, unless otherwise indicated) 3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 AUM Roll-forward Balance as of beginning of period $ 516.4 $ 554.7 $ 580.8 $ 592.4 $ 622.9 Sales/new acco
Slide 18: Investment Management and Research - Net Flows
Investment Management and Research - Net Flows For the Three Months Ended For the Three Months Ended (in billions USD, unless otherwise indicated) 3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 3/31/2019 3/31/2020 Net Flows by Distribution Channel Institutions US $ (3.1) $ 1.0 $ 6.6 $ (1.1) $ 0.
Slide 19: Protection Solutions - Operating Earnings (Loss) and Summary Metrics
Protection Solutions - Operating Earnings (Loss) and Summary Metrics For the Three Months Ended or As of For the Three Months Ended or As of (in millions USD, unless otherwise indicated) 3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 Change 3/31/2019 3/31/2020 Change Revenues Policy charges, fee
Slide 20: Protection Solutions - Select Operating Metrics
Protection Solutions - Select Operating Metrics For the Three Months Ended or As of For the Three Months Ended or As of (in millions USD, unless otherwise indicated) 3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 3/31/2019 3/31/2020 Sales Metrics First Year Premiums by Product Line: Universal Li
Slide 21: Investments
Investments 1Q 2020 Financial Supplement 21
Slide 22: Consolidated Investment Portfolio Composition
Consolidated Investment Portfolio Composition Balances as of (in millions USD, unless otherwise indicated) December 31, 2019 March 31, 2020 Amount (1) % of Total Amount (1) % of Total Composition of investment portfolio Fixed maturities, available-for-sale, at fair value $ 66,343 67.9% $ 70,321 66.0
Slide 23: Consolidated Results of General Account Investment Portfolio
Consolidated Results of General Account Investment Portfolio For the Three Months Ended or As of Years Ended or As of (in millions USD, unless otherwise indicated) March 31, 2019 March 31, 2020 December 31, 2019 Yield Amount (1) Yield Amount (1) Yield Amount (1) Fixed Maturities: Income (loss) 3.65
Slide 24: Additional Information
Additional Information 1Q 2020 Financial Supplement 24
Slide 25: Deferred Policy Acquisition Costs Rollforward
Deferred Policy Acquisition Costs Rollforward For the Three Months Ended or As of For the Three Months Ended or As of (in millions USD, unless otherwise indicated) 3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 3/31/2019 3/31/2020 TOTAL Beginning balance (1) $ 6,745 $ 6,018 $ 6,080 $ 5,787 $ 5,8
Slide 26: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures In addition to our results presented in accordance with U.S. GAAP, we report Non-GAAP Operating Earnings, Non-GAAP Operating ROE, Non-GAAP Operating ROC by segment for our Individual Retirement, Group Retirement and Protection Solutions segments, and Non-GAAP Opera
Slide 27: Use of Non-GAAP Financial Measures: Operating ROE and ROC
Use of Non-GAAP Financial Measures Non-GAAP Operating ROE, Pro forma Non-GAAP Operating ROE and Non-GAAP Operating ROC by Segment We report Non-GAAP Operating ROE, Pro forma Non-GAAP Operating ROE as well as Non-GAAP Operating ROC by segment for our Individual Retirement, Group Retirement and Protec
Slide 28: Reconciliation of Non-GAAP Measures (1/3)
Reconciliation of Non-GAAP Measures (1/3) For the Three Months Ended or As of For the Three Months Ended or As of (in millions USD, unless otherwise indicated) 3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 3/31/2019 3/31/2020 Net income (loss) attributable to Holdings Net income (loss) attribut
Slide 29: Reconciliation of Non-GAAP Measures (2/3)
Reconciliation of Non-GAAP Measures (2/3) As of and for the Twelve Months Ended 3/31/2019 (in millions USD, unless otherwise indicated) Pro forma (1) 6/30/2019 9/30/2019 12/31/2019 3/31/2020 Net Income to Pro forma Net Income Net Income (loss), as reported $ 1,108 $ — $ — $ — $ — Adjustments related
Slide 30: Reconciliation of Non-GAAP Measures (3/3)
Reconciliation of Non-GAAP Measures (3/3) Balances as of (in millions USD, unless otherwise indicated) 6/30/2018 9/30/2018 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 Equity Reconciliation - Quarter-end Balances Total equity attributable to Holdings' shareholders $ 13,364 $ 12,411
Slide 31: 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 Accounts
Slide 32: Analyst Coverage, Ratings & Contact Information
Analyst Coverage, Ratings & Contact Information Analyst Coverage Firm Analyst Phone Number Bank of America Securities Joshua Shanker 1 (631) 909-4041 Citi Suneet Kamath 1 (212) 816-3457 Credit Suisse Andrew Kligerman 1 (212) 325-5069 Evercore ISI Thomas Gallagher 1 (212) 446-9439 Goldman Sachs Alex