Equitable Holdings, Inc. · NYSE:EQH
Equitable — Q4 2019 Earnings Presentation
33 slides from Equitable's earnings presentation, Feb 26, 2020
Slide 1: Equitable Holdings Financial Supplement Fourth Quarter 2019
Ac EQUITABLE HOLDINGS Ce L Equitable Holdings Financial Supplement Fourth Quarter 2019
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 10
Slide 3: Consolidated Financials and Key Metrics
Consolidated Financials and Key Metrics 4Q19 Financial Supplement 3
Slide 4: Key Metrics Summary
Key Metrics Summary For the Three Months Ended or As of Years Ended or As of (in millions USD, except per share and O/S share amounts) 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 Change 12/31/2018 12/31/2019 Change Net income (loss) $ 1,999 $ (709) $ 430 $ (316) $ (841) (142.1)% $ 2,154 $ (1
Slide 5: Consolidated Statements of Income (Loss)
Consolidated Statements of Income (Loss) For the Three Months Ended Years Ended (in millions USD, unless otherwise indicated) 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 Change 12/31/2018 12/31/2019 Change Revenues Policy charges and fee income $ 943 $ 931 $ 941 $ 929 $ 937 (0.6)% $ 3,824 $
Slide 6: Consolidated Balance Sheets
Consolidated Balance Sheets Balances as of (in millions USD, unless otherwise indicated) 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 Assets Total investments $ 81,333 $ 82,948 $ 86,901 $ 94,717 $ 93,340 Cash and cash equivalents 4,469 5,129 4,734 4,471 4,405 Cash and securities segregated, a
Slide 7: Consolidated Capital Structure
Consolidated Capital Structure Balances as of (in millions USD, unless otherwise indicated) 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 Short-term and long-term debt: Short-term debt AB commercial paper $ 521 $ 540 $ 443 $ 303 $ — AB revolving credit facility 25 — — 80 — Total short-term deb
Slide 8: Operating Earnings (Loss) by Segment and Corporate and Other (1/2)
Operating Earnings (Loss) by Segment and Corporate and Other (1/2) Three Months Ended December 31, 2019 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 in
Slide 9: Operating Earnings (Loss) by Segment and Corporate and Other (2/2)
Operating Earnings (Loss) by Segment and Corporate and Other (2/2) Year Ended December 31, 2019 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 10: Assets Under Management and Administration
Assets Under Management and Administration Balances as of (in billions USD, except for Equitable Headcount) 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 Assets Under Management AB AUM Total AB $ 516.4 $ 554.7 $ 580.8 $ 592.4 $ 622.9 Exclusion for General Account and other Affiliated Accounts
Slide 11: Sales Metrics by Segment
Sales Metrics by Segment For the Three Months Ended Years Ended (in millions USD, unless otherwise indicated) 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 Change 12/31/2018 12/31/2019 Change Insurance Operations Individual Retirement First year premiums and deposits $ 1,931 $ 1,879 $ 2,093 $
Slide 12: Business Segments: Operating Earnings Results and Metrics
Business Segments: Operating Earnings Results and Metrics 4Q19 Financial Supplement 12
Slide 13: Individual Retirement - Operating Earnings (Loss) and Summary Metrics
Individual Retirement - Operating Earnings (Loss) and Summary Metrics For the Three Months Ended or As of Years Ended or As of (in millions USD, unless otherwise indicated) 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 Change 12/31/2018 12/31/2019 Change Revenues Policy charges, fee income and
Slide 14: Individual Retirement - Select Operating Metrics
Individual Retirement - Select Operating Metrics For the Three Months Ended or As of Years Ended or As of (in millions USD, unless otherwise indicated) 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 12/31/2018 12/31/2019 Sales Metrics First Year Premiums by Product: SCS $ 1,088 $ 1,106 $ 1,302
Slide 15: Group Retirement - Operating Earnings (Loss) and Summary Metrics
Group Retirement - Operating Earnings (Loss) and Summary Metrics For the Three Months Ended or As of Years Ended or As of (in millions USD, unless otherwise indicated) 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 Change 12/31/2018 12/31/2019 Change Revenues Policy charges, fee income and prem
Slide 16: Group Retirement - Select Operating Metrics
Group Retirement - Select Operating Metrics For the Three Months Ended or As of Years Ended or As of (in millions USD, unless otherwise indicated) 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 12/31/2018 12/31/2019 Sales Metrics Gross premiums: First-year premiums $ 390 $ 329 $ 358 $ 332 $ 469
Slide 17: 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 Years Ended or As of (in millions USD, unless otherwise indicated) 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 Change 12/31/2018 12/31/2019 Change Revenues Net investment in
Slide 18: 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) 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 AUM Roll-forward Balance as of beginning of period $ 550.4 $ 516.4 $ 554.7 $ 580.8 $ 592.4 Sales/new acc
Slide 19: Investment Management and Research - Net Flows
Investment Management and Research - Net Flows For the Three Months Ended Years Ended or As of (in billions USD, unless otherwise indicated) 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 12/31/2018 12/31/2019 Net Flows by Distribution Channel Institutions US (3) $ 3.7 $ (3.1) $ 1.0 $ 6.6 $ (1.
Slide 20: Protection Solutions - Operating Earnings (Loss) and Summary Metrics
Protection Solutions - Operating Earnings (Loss) and Summary Metrics For the Three Months Ended or As of Years Ended or As of (in millions USD, unless otherwise indicated) 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 Change 12/31/2018 12/31/2019 Change Revenues Policy charges, fee income and
Slide 21: Protection Solutions - Select Operating Metrics
Protection Solutions - Select Operating Metrics For the Three Months Ended or As of Years Ended or As of (in millions USD, unless otherwise indicated) 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 12/31/2018 12/31/2019 Sales Metrics First Year Premiums by Product Line: Universal Life $ — $ — $
Slide 22: Investments
Investments 4Q19 Financial Supplement 22
Slide 23: Consolidated Investment Portfolio Composition
Consolidated Investment Portfolio Composition Balances as of (in millions USD, unless otherwise indicated) December 31, 2018 December 31, 2019 Amount (1) % of Total Amount (1) % of Total Composition of investment portfolio Fixed maturities, available-for-sale, at fair value $ 46,279 53.9% $ 66,343 6
Slide 24: Consolidated Results of General Account Investment Portfolio
Consolidated Results of General Account Investment Portfolio Years Ended or As of (in millions USD, unless otherwise indicated) December 31, 2018 December 31, 2019 Yield Amount (1) Yield Amount (1) Fixed Maturities: Income (loss) 3.86 % $ 1,732 3.68 % $ 2,019 Ending assets 46,447 62,687 Mortgages: I
Slide 25: Additional Information
Additional Information 4Q19 Financial Supplement 25
Slide 26: Deferred Policy Acquisition Costs Rollforward
Deferred Policy Acquisition Costs Rollforward For the Three Months Ended or As of Years Ended or As of (in millions USD, unless otherwise indicated) 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 12/31/2018 12/31/2019 TOTAL Beginning balance $ 6,736 $ 6,745 $ 6,018 $ 6,080 $ 5,787 $ 5,919 $ 6,7
Slide 27: 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 and, for certain prior periods, Pro forma Non-GAAP Operating ROE, and Non-GAAP Operating ROC by segment for our Individual Retirement, G
Slide 28: Use of Non-GAAP Financial Measures
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 29: Reconciliation of Non-GAAP Measures (1/3)
Reconciliation of Non-GAAP Measures (1/3) For the Three Months Ended or As of Years Ended or As of (in millions USD, unless otherwise indicated) 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 12/31/2018 12/31/2019 Net income (loss) attributable to Holdings Net income (loss) attributable to Hold
Slide 30: Reconciliation of Non-GAAP Measures (2/3)
Reconciliation of Non-GAAP Measures (2/3) Pro forma (1) As of and for the Twelve Months Ended As of and for the Twelve Months Ended (in millions USD, unless otherwise indicated) 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 Net Income to Pro forma Net Income Net Income (loss), as reported $ 2,
Slide 31: Reconciliation of Non-GAAP Measures (3/3)
Reconciliation of Non-GAAP Measures (3/3) Pro forma (1) Balances as of Balances as of (in millions USD, unless otherwise indicated) 3/31/2018 6/30/2018 9/30/2018 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 Equity Reconciliation - Quarter-end Balances Total equity attributable to Holdings $ 1
Slide 32: 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 33: Analyst Coverage, Ratings & Contact Information
Analyst Coverage, Ratings & Contact Information Analyst Coverage Firm Analyst Phone Number Bank of America Merrill Lynch Ian Ryave 1 (646) 855-2926 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 Sc