Slide 1: Full Year and Fourth Quarter 2021 Earnings Results
Equitable Holdings Full Year and Fourth Quarter 2021 Earnings Results February 11, 2022 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: Full year and fourth quarter highlights
Full year and fourth quarter highlights • 2021 Non-GAAP operating earnings1 of $2.8bn or $6.58 per share, up 32% per share YoY Record results led by core businesses • $908bn AUM, up 12% YoY, supported by markets and net flows of $25bn from Retirement and AB2 Business model drives • Strong RBC ratio
Slide 4: Unique capital-light and robust business model
Unique capital-light and robust business model ► Transformed mix of our Retirement business with the VA transaction reducing legacy VA account value to c.18%1 ► Restructured business to increase unregulated cashflows to c.50% decreasing reliance on insurance company dividends ► $10bn commitment2 to
Slide 5: Significant business mix shift since IPO
Significant business mix shift since IPO Retirement Asset Management Affiliated Distribution Account Value1 AUM2 +9% 779 AUA $bn $bn CAGR $bn 554 +4% Equitable CAGR 159 Asia +17% 137 CAGR 83 Capital 64% 82% 44 Light Legacy 36% 18% IPO 2021 IPO 2021 IPO 2021 ► Legacy account value ► AUM growth of 40%
Slide 6: Amplifying our efforts to be an enduring force for good
Amplifying our efforts to be an enduring force for good Inaugural ESG report1 outlines how we bridge profits with purpose, while improving Americans’ financial well-being Environmental Social Governance Caring for our Investing in Building Upholding environment our people stronger stakeholder commun
Slide 7: Economic management of business positions us well for LDTI
Economic management of business positions us well for LDTI Conservative interest rate assumptions and stronger reserves limit LDTI transition impact Estimated transition ► Majority of the impact is in AOCI from non-performance risk as we move impact less than towards lower spreads vs. issue assumpti
Slide 8: We have shifted our earnings mix towards capital-light
We have shifted our earnings mix towards capital-light Non-GAAP operating earnings1 of $2.8bn At IPO: 2017 Non-GAAP operating earnings5, 6 PS Non-GAAP operating earnings less notable items2 and the legacy VA transaction were $2.5bn3 AB 7% 15% $908bn AUM, up 12% YoY, supported by markets and $25bn of
Slide 9: Fourth Quarter Consolidated Results Summary
Fourth Quarter Consolidated Results Summary Non-GAAP Operating Earnings, Non-GAAP Operating EPS, adjusted for notable items1 adjusted for notable items1 Financial Highlights $m $ Non-GAAP operating earnings of $649 +8% +17% million, or $1.54 per share, decreased 7% from $1.65 638 691 1.64 1.40 ▪ Not
Slide 10: Strong capitalization and liquidity enabling capital return
Strong capitalization and liquidity enabling capital return Successfully executed on 2021 capital Delivering on our 50-60% payout ratio and management program incremental $500m from legacy VA transaction Dividends Share Repurchases ▪ Returned $1.9bn this year, with $540m in 4Q including 2022 Acceler
Slide 11: Full year and fourth quarter highlights
Full year and fourth quarter highlights • 2021 Non-GAAP operating earnings1 of $2.8bn or $6.58 per share, up 32% per share YoY Record results led by core businesses • $908bn AUM, up 12% YoY, supported by markets and net flows of $25bn from Retirement and AB2 Business model drives • Strong RBC ratio
Slide 12: Appendix
Appendix Equitable Holdings Full Year and Fourth Quarter 2021 Earnings Results
Slide 13: Individual Retirement
Individual Retirement Operating Earnings, less Notable Items1 Highlights $m ▪ Venerable transaction unlocked $1.2bn of value in Q2’21 but reduces run rate earnings by c.$180m per annum 369 328 ▪ Operating earnings less notable items1 increased, excluding legacy VA transaction, primarily driven by hi
Slide 14: Group Retirement
Group Retirement Operating Earnings, less Notable Items1 Highlights $m ▪ Operating earnings less notable items1 increased due to higher +7% NII and fee revenue on higher account values 143 153 ▪ Notable items1 of $(36)m with higher NII from alternatives and prepayments partially offsetting litigatio
Slide 15: Investment Management and Research (AB)
Investment Management and Research (AB) Operating Earnings, less Notable Items1 Highlights $m ▪ Operating earnings less notable items1 earnings growth driven +39% by higher base fees, performance fees and a lower adj. compensation ratio 183 132 ▪ Gross sales of $39.4bn in the quarter, up 26% YoY, wi
Slide 16: Protection Solutions
Protection Solutions Operating Earnings, less Notable Items1 Highlights $m ▪ Operating earnings less notable items1 increased due to higher NII +80% and fee revenue on higher account values and lower PFBL accrual 92 ▪ Notable items1 of $(39)m with higher NII from alternatives and prepayments partial
Slide 17: Net Income to Non-GAAP Operating Earnings, 4Q21
Net Income to Non-GAAP Operating Earnings, 4Q21 $m (15) (103) 649 513 254 Net Income VA Product Features All other adjustments1 Income tax expense Non-GAAP operating earnings All figures $m Description 4Q21 GMxB accounting asymmetry: • GMxB hedging 764 • Static hedge cash option cost 15 VA Product S
Slide 18: Net Income to Non-GAAP Operating Earnings, FY21
Net Income to Non-GAAP Operating Earnings, FY21 $m 116 (17) (864) 2,825 4,029 (439) Net Income VA Product Features Assumption update All other Income tax expense Non-GAAP adjustments1 operating earnings All figures $m Description FY21 GMxB accounting asymmetry: • GMxB hedging 4,248 • Static hedge ca
Slide 19: Investment Portfolio Overview
Investment Portfolio Overview General Account Investment Portfolio Fixed maturity portfolio <Baa U.S. Treasury, Gov’t and Agency 4% 14% Baa 11% Other Fixed Maturities 34% Corporates 53% $94bn 2 0.2% Short Duration Fixed Maturities1 $73bn 15% 62% Mortgage Loans Aaa, Aa, A 3% 4% Policy Loans Alts. & O
Slide 20: 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 December 31, Year Ended December 31, (in millions) 2021 2020 2021 2020 Net income (loss) attributable to Holdings $ 254 $ (1,238) $ (439) $ (648) Adjustments related to: Variable an
Slide 21: 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) 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021 6/30/2021 9/30/2021 12/31/2021 Total Equity Attributable to Holdings Total equit
Slide 22: Impact of Notable Items by segment and 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) December 31, 2021 December 31, 2020 Non-GAAP Operating Earnings $ 649 748 Post Tax Adjustments related to Notable Items: Indi
Slide 23: Impact of Notable Items by segment and category
Appendix Impact of Notable Items1 by segment and corporate & other and by category Twelve Months Ended Twelve Months Ended Non-GAAP Operating Earnings, less Notable Items, ($m) December 31, 2021 December 31, 2020 Non-GAAP Operating Earnings $ 2,825 2,302 Post Tax Adjustments related to Notable Items