Slide 1: Third Quarter 2021 Earnings Results
Equitable Holdings Third Quarter 2021 Earnings Results November 4, 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: Third Quarter 2021 Highlights
Third Quarter 2021 Highlights Strong results in retirement and asset management businesses • Non-GAAP operating earnings of $818m or $1.94 per share; up 56% year-over-year and 13% sequentially on a per share basis • $871bn AUM, up 17% year-over-year, supported by $7.1bn in net inflows, equity market
Slide 4: Uniquely positioned to capture value chain
Uniquely positioned to capture value chain Robust business model with retirement, asset management and affiliated distribution Industry leader in Premier investment Affiliated distribution retirement and income management capabilities serving 2.3m clients History of product innovation 65% ownership
Slide 5: Third Quarter Consolidated Results Summary
Third Quarter Consolidated Results Summary Non-GAAP Operating Earnings Non-GAAP Operating EPS Financial Highlights $m $ Non-GAAP operating EPS increased +44% +56% 56% from $1.24 to $1.94 driven by: 818 1.94 ▪ Increase in net investment income due to higher pre-payments and 568 1.24 alternatives and
Slide 6: Fair value approach to assumptions positions us well for LDTI
Fair value approach to assumptions positions us well for LDTI 3Q21 Assumption Updates Equitable GMxB reserving assumptions are robust ► Strength of actuarial assumptions reflected in nominal 3Q21 impact to financials NAIC Framework EQH Framework (Standard Projection) ► Non-GAAP Operating earnings im
Slide 7: Individual Retirement
Individual Retirement Operating Earnings Highlights $m ▪ Venerable block unlocked $1.2bn of value in Q2’21 but reduces run rate earnings by c.$180m per annum 371 316 ▪ Operating earnings increased, excluding Venerable block transaction, primarily driven by higher net investment income and equity mar
Slide 8: Group Retirement
Group Retirement Operating Earnings Highlights $m ▪ Operating earnings increased, driven by higher net investment +49% income and higher fee-type revenue on higher account values 192 ▪ Notable items1 of $43m with higher NII from alternatives and prepayments, $16m, and assumption updates, $27m 129 ▪
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 +29% higher average AUM offsetting increased operating expenses 134 ▪ Gross sales of $32.3bn in the quarter, up 10% year-over-year, 104 led by record sales in the retail
Slide 10: Protection Solutions
Protection Solutions Operating Earnings Highlights $m ▪ Operating earnings increased, driven by higher net investment +214% income and higher fee-type revenue on higher account values 160 ▪ Notable items1 of $59m with higher NII from alternatives, prepayments and lower reserve accrual, $43m, and ass
Slide 11: Strong capitalization and liquidity enabling capital return
Strong capitalization and liquidity enabling capital return Continuing to execute on capital Delivering on 50-60% payout ratio plus management program incremental $500m from Venerable transaction Dividends ▪ Returned $1.4bn to shareholders year-to-date, Share Repurchases including $534m in the third
Slide 12: $1bn financing transaction and restructuring secure cash flows
$1bn financing transaction and restructuring secure cash flows Delivered on permitted practice, restructuring and reserve financing, significantly mitigating Reg. 213 impacts December 2020 June 1, 2021 June 30, 2021 August 2021 Reg. 213 effective Venerable close Received SA fund administration for N
Slide 13: Third Quarter 2021 Highlights
Third Quarter 2021 Highlights Strong results in retirement and asset management businesses • Non-GAAP operating earnings of $818m or $1.94 per share; up 56% year-over-year and 13% sequentially on a per share basis • $871bn AUM, up 17% year-over-year, supported by $7.1bn in net inflows, equity market
Slide 14: Appendix
Appendix Equitable Holdings Third Quarter 2021 Earnings Results
Slide 15: Net Income to Non-GAAP Operating Earnings, 3Q21
Net Income to Non-GAAP Operating Earnings, 3Q21 $m 10 (35) 818 116 672 55 Net Income VA Product Features Assumption update All other Income tax expense Non-GAAP adjustments1 operating earnings All figures $m Description 3Q21 GMxB accounting asymmetry: • GMxB hedging 117 • Static hedge cash option co
Slide 16: Investment Portfolio Overview
Investment Portfolio Overview General Account Investment Portfolio Fixed maturity portfolio <Baa U.S. Treasury, Gov’t and Agency 4% 15% Baa 10% Other Fixed Maturities 33% Corporates 53% $92bn 2 0.2% Short Duration Fixed Maturities1 $71bn 15% 63% Mortgage Loans Aaa, Aa, A 3% 4% Policy Loans Alts. & O
Slide 17: 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 September 30, (in millions) 2021 2020 Net income (loss) attributable to Holdings $ 672 $ (779) Adjustments related to: Variable annuity product features (1) 172 1,620 Investment (ga
Slide 18: 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) 12/31/2019 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021 6/30/2021 9/30/2021 Total Equity Attributable to Holdings Total equit
Slide 19: Impact of Notable Items by segment and corporate & other and by category
Appendix Impact of Notable Items1 by segment and corporate & other and by category Three Months Ended Three Months Ended Non-GAAP Operating Earnings, less Notable Items, ($m) September 30, 2021 September 30, 2020 Non-GAAP Operating Earnings $ 818 568 Post Tax Adjustments related to Notable Items: In
Slide 20: 2021 Actuarial Assumption Review
2021 Actuarial Assumption Review Line item impact of assumption updates on Operating Earnings1 Individual Protection Three months ended 9/30/2021 ($m) Group Retirement Consolidated2,3 Retirement Solutions Total revenues (28) (28) Policy charges, fee income and premiums (28) (28) Total benefits and o