Slide 1: Second Quarter 2021 Earnings Results
Equitable Holdings Second Quarter 2021 Earnings Results August 5, 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: Second Quarter 2021 Highlights
Second Quarter 2021 Highlights Strong results supported by robust new business flows • Non-GAAP operating earnings of $758m, or $1.71 per share; up 74% year-over-year on a per share basis • AUM up 22% year-over-year to $869bn, supported by strong net flows of $6.1bn and equity markets Delivering on
Slide 4: Driving long-term shareholder value
Driving long-term shareholder value Build on leadership Scale emerging Optimize risk-adjusted positions businesses returns ▪ Broad distribution reach: ▪ AB alternatives ▪ Venerable transaction • Individual Retirement – record SCS sales of $1.9bn • $21bn of committed capital • Closed in Q2’21 • Group
Slide 5: Synergies between Equitable and AB
Synergies between Equitable and AB Equitable AB Enhancing risk-adjusted return Building higher multiple businesses • Phase 1: Reallocated UST to public • $5bn investment enabled growth of AB private corporates to align with US peers alts. platform by four times to $21bn1 • $160m target achieved in 2
Slide 6: Second Quarter Consolidated Results Summary
Second Quarter Consolidated Results Summary Non-GAAP Operating Earnings Non-GAAP Operating EPS Financial Highlights $m $ Non-GAAP operating EPS increased +68% +74% 74% from $0.98 to $1.71 driven by: 758 1.71 ▪ Increase in net investment income due to higher prepayments and alternatives 451 0.98 ▪ In
Slide 7: Individual Retirement
Individual Retirement Operating Earnings Highlights $m ▪ Operating earnings increased, driven by higher net investment +18% income and higher fee-type revenue on higher account values 414 350 ▪ Notable items1 in the quarter of $49 million due higher net investment income from prepayments and alterna
Slide 8: Group Retirement
Group Retirement Operating Earnings Highlights $m ▪ Operating earnings increased, driven by higher net investment +90% income and higher fee-type revenue on higher account values 171 ▪ Notable items1 in the quarter of $17 million due higher net investment income from prepayments and alternatives 90
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 +37% higher average AUM offsetting increased operating expenses 126 ▪ Net flows of $6.2bn driven by inflows across all channels, 92 including $6.7bn of active net inflow
Slide 10: Protection Solutions
Protection Solutions Operating Earnings Highlights $m ▪ Operating earnings increased, driven by higher net investment +75 income and higher fee-type revenue on higher account values 63 ▪ Notable items1 in the quarter of $20 million due higher net investment income from prepayments and alternatives ▪
Slide 11: Strong capitalization and liquidity enabling capital return
Strong capitalization and liquidity enabling capital return Taking action to enhance financial flexibility Delivering on 50-60% payout ratio Dividends ▪ Cash & liquid assets of $2.5bn at Holdings Accelerated Share Repurchases 504 Share Repurchases ▪ Successfully de-risked balance sheet through close
Slide 12: Permitted practice on Reg. 213 redundant reserves
Permitted practice on Reg. 213 redundant reserves Reaffirming our commitment to target payout ratio Mitigating actions ensure cash flows are maintained •1 Strong HoldCo cash position of $2.5bn supports capital Core principles unchanged management program through 2022 Maintain financial flexibility •
Slide 13: Second Quarter 2021 Highlights
Second Quarter 2021 Highlights Strong results supported by robust new business flows • Non-GAAP operating earnings of $758m, or $1.71 per share; up 74% year-over-year on a per share basis • AUM up 22% year-over-year to $869bn, supported by strong net flows of $6.1bn and equity markets Delivering on
Slide 14: Appendix
Appendix Equitable Holdings Second Quarter 2021 Earnings Results
Slide 15: Net Income to Non-GAAP Operating Earnings, 2Q21
Net Income to Non-GAAP Operating Earnings, 2Q21 $m (387) (171) 1,193 758 123 Net income VA Product Features All other adjustments1 Income tax expense Non-GAAP operating earnings All figures $m Description 2Q21 GMxB accounting asymmetry: • GMxB hedging 1,019 • Static hedge cash option cost 36 VA Prod
Slide 16: Investment Portfolio Overview
Investment Portfolio Overview General Account Investment Portfolio Fixed maturity portfolio <Baa U.S. Treasury, Gov’t and Agency 4% 16% Other Fixed Maturities Baa 9% 33% Short Duration Corporates 52% $90bn 2 1% Fixed Maturities1 $69bn 15% 63% Mortgage Loans Aaa, Aa, A 3% 4% Policy Loans Alts. & Othe
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 June 30, (in millions) 2021 2020 Net income (loss) attributable to Holdings $ 123 $ (4,019) Adjustments related to: Variable annuity product features (1) 1,193 5,722 Investment (gai
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) 9/30/2019 12/31/2019 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021 6/30/2021 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 June 30, Non-GAAP Operating Earnings, less Notable Items, ($m) 2021 Non-GAAP Operating Earnings $ 758 Post Tax Adjustments related to Notable Items: Individual Retirement (49) Group Retirement (17)