Slide 1: Full Year and Fourth Quarter 2023 Earnings Results
Equitable Holdings Full Year and Fourth Quarter 2023 Earnings Results February 7, 2024 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 2023 highlights
Full year 2023 highlights Solid 2023 business results and cash generation despite headwinds • Full year non-GAAP operating earnings1 per share of $4.59, or $5.13 per share after adjusting for notable items2 • Full year cash flow3 of $1.3bn, in line with 2023 guidance, with over 55% from non-insuranc
Slide 4: EQH value proposition leads to compelling 2027 targets
EQH value proposition leads to compelling 2027 targets Strategy Competitive edges Financial principles how we will drive long-term value what sets us apart how we manage the business Defend & grow core businesses Premier investment capabilities Market neutral balance sheet Scale adjacent businesses
Slide 5: Delivering against investor day commitments
Delivering against investor day commitments Growth Progress 2027 Growth Drivers Initiatives Defend & Retirement $154bn AUM1, $5.3bn of net inflows; VNB of c.$460m 5-7% AUM CAGR grow core #1 rank in RILA and K-12 403(b), #5 in VUL 5-7% VNB CAGR businesses $725bn AUM, up 12% YoY 350-500bps Asset Manag
Slide 6: Good initial progress against our growth strategy
Good initial progress against our growth strategy Growth Initiatives Progress 2027 Growth Drivers Scale $3bn of net advisory inflows, 7% annualized organic growth adjacent Wealth Management $87bn total AUA, up 20% YoY; $55bn advisory AUA $200m+ earnings businesses 750 wealth planners, up 7% YoY, foc
Slide 7: 2023 scorecard: tracking towards investor day targets
2023 scorecard: tracking towards investor day targets 2023 progress Cash generation $2bn $1.3bn, in-line with guidance of annual cash generation by 20271 Payout ratio 60-70% 72% of reported non-GAAP operating earnings of Non-GAAP 65% adjusted for notable items Operating Earnings2 EPS growth 12-15% E
Slide 8: Fourth quarter consolidated results summary
Fourth quarter consolidated results summary Non-GAAP Operating Earnings, Non-GAAP Operating EPS, Assets under management adjusted for notable items1 adjusted for notable items1 and administration GR $ $bn AUM 19% +20% +13% AUA PS 1.34 930 12% 826 1.12 IR 37% $479m 17% 754 843 AB 7% 8% 72 87 Legacy W
Slide 9: Capital management driving shareholder value
Capital management driving shareholder value $1.3bn cash generation1, in line with plan Delivering on 60-70% payout ratio target2 Wealth Management Retirement (Asset Management) Dividends Share Repurchases Asset Management Retirement (Regulated) $315m $315m 11% $304m $286m $77m $74m $78m $72m 43% 20
Slide 10: Capital invested in new business delivers 15%+ IRR & strong VNB
Capital invested in new business delivers 15%+ IRR & strong VNB Value of new business (VNB): Capital allocation drives future cash flows $600m $600m $540m $475m $475m 2019 2020 2021 2022 2023 Capital $450m $400m $500m $500m $500m Deployed Note: figures rounded 4Q23 Earnings Presentation 10
Slide 11: 2024 outlook: momentum building
2024 outlook: momentum building • Mortality expected to improve from 2023, but still anticipate some pull-forward of claims Improved EPS • VII to normalize by YE’24; forecast 2024 return modestly below 8-12% target range growth • Higher AUM levels, driven by organic growth and strong equity market r
Slide 12: Full year results position us to achieve 2027 targets
Full year results position us to achieve 2027 targets Full year results 2027 guidance Cash generation $2bn Solid business results and cash generation of annual cash generation1 by 2027 Payout ratio 60-70% Good progress against strategic initiatives of Non-GAAP Operating Earnings2 EPS growth Growth m
Slide 13: Appendix
Appendix Equitable Holdings Full Year and Fourth Quarter 2023 Earnings Results
Slide 14: Explanation of footnotes
Explanation of footnotes Page 3 1Non-GAAP operating earnings equals our consolidated after-tax net income attributable to Holdings adjusted to eliminate the impact of certain items; Please see detailed Non-GAAP reconciliation in Appendix 2Non-GAAP Operating Earnings adjusted for notable items; Pleas
Slide 15: Updated macro sensitivities reflect business mix shift
Updated macro sensitivities reflect business mix shift 2024 total company sensitivities Retirement business shifting to spread-based AUM Individual and Group Retirement Account Value +/-10% = c. $150m after tax Equity market Non-GAAP Operating Earnings impact1 22% 27% Interest rates +/-50bps = c. $4
Slide 16: Additional guidance for 2024
Additional guidance for 2024 2024 guidance $200-300m per annum Protection Solutions operating earnings with some quarterly volatility from mortality Corporate & Other operating earnings $(400)m per annum 8-12% long-term annualized return Alternatives 1Q24: mid-single digits return FY24: return sligh
Slide 17: Conservative, high quality investment portfolio
Conservative, high quality investment portfolio General Account Investment Portfolio Fixed Maturity Portfolio U.S. Treasury, Gov’t and Agency <Baa 6% 4% Structured Credit 17% Baa Other Fixed Maturities $99bn 33% $74bn 50% 1% 1 Corporates 18% 64% Mortgage Loans Aaa, Aa, A 3% 4% Policy Loans Alts. & O
Slide 18: Alternatives portfolio has produced strong returns over time
Alternatives portfolio has produced strong returns over time Historical Alternative Investment Portfolio Returns $millions, pre-tax 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1Q23 2Q23 3Q23 4Q23 2023 GAAP Carrying Value Private Equity 995 941 877 820 825 857 850 934 1,462 1,670 1,707 1,731 1,
Slide 19: Individual Retirement
Individual Retirement Operating Earnings, adjusted for Notable Items1 Highlights $m ▪ Operating earnings adjusted for notable items1 increased 211 primarily due to higher net interest margin, partially offset 188 by higher DAC amortization ▪ Net inflows of $1.5bn were higher year-over-year as record
Slide 20: Group Retirement
Group Retirement Operating Earnings, adjusted for Notable Items1 Highlights $m ▪ Operating earnings adjusted for notable items1 increased primarily due to higher net investment income and higher 109 98 fee income, partially offset by higher interest credited ▪ Net outflows of $135m primarily attribu
Slide 21: Investment Management and Research (AB)
Investment Management and Research (AB) Operating Earnings, adjusted for Notable Items1 Highlights $m ▪ Operating earnings increased primarily due to higher base fees on higher average AUM and higher performance fees 94 100 ▪ Net outflows of $1.8bn, with net inflows in retail partially offsetting ne
Slide 22: Protection Solutions
Protection Solutions Operating Earnings, adjusted for Notable Items1 Highlights $m ▪ Operating earnings adjusted for notable items1 increased primarily due to higher NII and better mortality 68 58 ▪ Gross mortality claims and reinsurance coverage consistent with expectations, pull-forward in mortali
Slide 23: Wealth Management
Wealth Management Operating Earnings Highlights $m ▪ Operating earnings increase driven by higher advisory fees and increased interest income on cash balances 45 ▪ Advisory net inflows of $544m results in full year organic growth rate of 7% 23 ▪ Total AUA of $87bn, up 20% YoY, with over 60% in fee-
Slide 24: Legacy
Legacy Operating Earnings, adjusted for Notable Items1 Highlights $m ▪ Operating earnings adjusted for notable items1 decreased primarily due to lower net investment income 67 ▪ Net outflows of $643m in the quarter, in line with 41 expected $2-3bn annual run-off 4Q22 4Q23 AUM and Trailing 12 Month N
Slide 25: 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 Year Ended December 31, December 31, (in millions) 2023 2022 2023 2022 Net income (loss) attributable to Holdings $ (698) $ 62 $ 1,302 $ 2,153 Adjustments related to: Variable annui
Slide 26: Impact of notable items by segment and corporate & other
Appendix Impact of notable items1 by segment and corporate & other 4Q23 reported Alts & pre-pays vs. plan Actuarial & model updates Mortality vs. plan NII/derivatives adjustment Tax rate 4Q23 adjusted After-tax Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax True-up After-tax
Slide 27: Impact of notable items by segment and corporate & other
Appendix Impact of notable items1 by segment and corporate & other Individual Group Protection Wealth Corporate Three Months Ended 12/31/2023 AB Legacy Consolidated Retirement Retirement Solutions Management & Other Total revenues 6 13 - 27 - 1 (45) 3 Policy charges, fee income and premiums - - - -
Slide 28: Impact of notable items by segment and corporate & other
Appendix Impact of notable items1 by segment and corporate & other Individual Group Protection Wealth Corporate Twelve Months Ended 12/31/2023 AB Legacy Consolidated Retirement Retirement Solutions Management & Other Total revenues 7 27 - 72 - 8 (24) 91 Policy charges, fee income and premiums - - -