Equitable Holdings, Inc. · NYSE:EQH
Equitable — Merger or Acquisition (February 2025)
15 slides from Equitable's merger presentation, Feb 24, 2025
Slide 1: Individual Life Strategic Transaction Review
Equitable Holdings Individual Life Strategic Transaction Review February 24, 2025 Equitable
Slide 2: Disclaimers
Disclaimers This presentation contains forward-looking statements. Words such as “expects,” “believes,” “anticipates,” “forecasts,” “intends,” “seeks,” “aims,” “plans,” “assumes,” “estimates,” “projects,” “should,” “would,” “could,” “may,” “will,” “shall” or variations of such words are generally pa
Slide 3: Equitable's growth strategy is focused on three core markets
Equitable’s growth strategy is focused on three core markets Retirement Asset management Wealth Management □ High return on capital businesses □ Attractive secular growth dynamics □ Strong synergies across businesses □ Market leading positions with a clear right to win Life Strategic Transac
Slide 4: Individual Life Insurance is not a growth focus for Equitable
Individual Life Insurance is not a growth focus for Equitable U.S. Life Market Dynamics Equitable’s Life Business Market is dominated by mutual insurers Low return on capital in-force block Most products are capital intensive Historical earnings volatility due to high face value policies wit
Slide 5: Life transaction delivers strategic and financial value
Life transaction delivers compelling strategic and financial value ● Reinsuring 75% of in-force individual life insurance block to RGA on a pro-rata basis Transaction overview ● AB expects to continue managing approximately 70% of the general account assets ● Total value of over $2 billion from posi
Slide 6: Transaction furthers Equitable's strategic journey since IPO
Transaction furthers Equitable’s strategic journey since IPO 2018 (IPO) Today 5-7% Non-GAAP EPS growth 12-15% Non-GAAP EPS growth 40-60% Payout ratio 60-70% Payout ratio $716bn AUM/A1 $1.0tn AUM/A2 2021: De-risked balance sheet through Legacy VA transaction 2020: Delivered 2023: Completed 2025: Life
Slide 7: We are enhancing our focus on key growth businesses
We are enhancing our focus on key growth businesses Operating earnings by segment (post-tax)1,2 GR GR GR 14% PS 21% 23% 7% PS AB 8% IPO 15% IR 36% (2017) IR 39% 2024 IR 41% 2027F 20% 26% AB AB 28% 5% 7% 10% Legacy Legacy WM WM c.17% c.50% c.60% Cash Generation from Non-Insurance Entities 12017 opera
Slide 8: Significant synergies between Equitable and AB
Significant synergies between Equitable and AB Strong alignment of interests between firms AB manages $132bn of Equitable assets, including two-thirds of the General Account and one-third of Separate Accounts1 Equitable seed capital investments enable AB to scale new investment platforms like Pr
Slide 9: Integrating insurance and asset management generates value
Integrating insurance and asset management generates value AB receives steady net inflows from Equitable’s general account Equitable provides permanent capital to fund Private Markets growth AB provides Equitable with steady non-regulated cash flows Equitable benefits from investments that e
Slide 10: Transaction releases capital and is accretive to shareholders
Transaction releases capital and is accretive to shareholders • Over $2bn of value generation1 Balance sheet • Adds 75-100 points to the combined NAIC RBC ratio • Post-close targets: 400%+ combined NAIC RBC ratio, 30% leverage ratio • Expected GAAP net loss at close • Limited impact to Non-GAAP oper
Slide 11: Tender offer will increase Equitable's ownership of AB
Tender offer will increase Equitable’s ownership of AB Key Terms Details Total tender size Up to $1.8 billion Tender price $38.50 per AB Holdings unit Tender premium 8% above the closing price on February 21, 2025 Tender period Expires March 24, 2025 If the tender is fully subscribed, our AB ownersh
Slide 12: Accelerates progress to deliver on investor day targets
Accelerates progress to deliver on investor day targets 2023-27 Financial Targets $2bn 60-70% 12-15% of annual cash of Non-GAAP Non-GAAP generation by 2027 Operating Earnings Operating EPS CAGR Transaction impacts • No change to $2bn cash • $500m incremental buyback • Accretive to 2025-27 generation
Slide 13: Compelling opportunity to create shareholder value
Compelling opportunity to create shareholder value Transaction is accretive to Enhances focus on Retirement, AM, WM 2027 financial targets Expands earnings contribution from AB1 Reduces earnings volatility from mortality Increases non-insurance cash generation1 Accretive to Non-GAAP operating EPS Ac
Slide 14: Appendix
Appendix Equitable Holdings Individual Life Strategic Transaction Review
Slide 15: Appendix A: Use of Non-GAAP Financial Measures
Appendix A: Use of Non-GAAP Financial Measures In addition to our results presented in accordance with U.S. GAAP, we report Non-GAAP Operating Earnings and Non-GAAP operating EPS, each of which is a measure that is not determined in accordance with U.S. GAAP. Management principally uses these non-GA
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