Slide 1: Equitable Holdings Second Quarter 2024 Earnings Results
Equitable Holdings Second Quarter 2024 Earnings Results July 30, 2024 Equitable
Slide 2: Note Regarding Forward-Looking Statements and Non-GAAP Financial Measures
Note Regarding Forward-Looking Statements 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,” “assume
Slide 3: Second quarter 2024 highlights
Second quarter 2024 highlights Strong earnings growth momentum • Non-GAAP operating earnings1 per share of $1.43, or $1.52 per share after adjusting for notable items2 • Growth in non-GAAP operating EPS ex. notable items of 20% vs. Q2’23, above 12-15% annual guidance • $986bn AUM/A, up 11% vs. 2Q’23
Slide 4: IR Day scorecard: tracking towards investor day targets
IR Day scorecard: tracking towards investor day targets Cash generation1, $bn Payout ratio2 EPS growth On track to 2027 target Delivering high end of target range Momentum building 80% 20% 19% 2.0 75% 12-15% CAGR Target 15% 60-70% Payout Target 1.4-1.5 70% 1.3 68% 67% 67% 65% 10% 9% 60% 5% 55% 3% 50
Slide 5: Delivering against investor day commitments
Delivering against investor day commitments 1H’24 KPIs Progress since IR Day +21% AUM CAGR Retirement $141bn AUM1; $3.8bn net flows; 6% organic growth Defend & vs 5-7% target grow core businesses $770bn AUM, $1.4bn net flows; 0.4% organic growth +190bps adj. op. margin2,3 Asset Management 1H’24 adj.
Slide 6: Second quarter consolidated results summary
Second 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 20% +20% +11% AUA 1.52 986 PS 887 12% 1.27 IR 38% $525m 806 893 16% AB 7% 7% 80 94 Legacy W
Slide 7: Strong growth in spread and fee-based income
Strong growth in spread and fee-based income Spread income, net interest margin $millions Fee-based revenue, $millions Individual Retirement Group Retirement Retirement1 Asset Mgmt.2 Wealth Mgmt.3 +17% +9% 264 +9% 226 742 678 +20% +4% 369 401 83 134 161 80 2Q’23 2Q’24 2Q’23 2Q’24 2Q’23 2Q’24 2Q’23 2
Slide 8: Capital management driving shareholder value
Capital management driving shareholder value Consistent capital return Delivering on 60-70% payout ratio target1 ▪ Returned $325m to shareholders in the 2Q’24 Dividends Share Repurchases including $247m in share repurchases ▪ Cash & liquid assets of $1.6bn at Holdings2; $326m $325m $315m $315m combi
Slide 9: Second quarter 2024 highlights
Second quarter 2024 highlights Key messages 2027 guidance Cash generation $2bn Strong earnings growth momentum of annual cash generation by 2027 Payout ratio 60-70% Consistent cash flow and capital return of Non-GAAP Operating Earnings EPS growth Delivering on organic growth strategy 12-15% Non-GAAP
Slide 10: Appendix
Appendix Equitable Holdings Second Quarter 2024 Earnings Results
Slide 11: 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 12: 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 5% 3% Structured Credit 19% Baa 31% Corporates 49% $106bn 1 1% Other Fixed Maturities $79bn 18% 66% Mortgage Loans Aaa, Aa, A 3% 4% Policy Loans Alts. &
Slide 13: Alternatives portfolio has produced strong returns over time
Alternatives portfolio has produced strong returns over time Historical Alternative Investment Portfolio Annualized Returns $millions, pre-tax 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1Q24 2Q24 GAAP Carrying Value Private Equity 995 941 877 820 825 857 850 934 1,462 1,670 1,824 1,877 2
Slide 14: Individual Retirement
Individual Retirement Operating Earnings, adjusted for Notable Items1 Highlights $m ▪ Growth in Operating Earnings adjusted for Notable Items1 driven by higher net interest margin 224 236 ▪ Net inflows of $1.9bn were higher year-over-year with strong sales, up 23% YoY ▪ Net interest margin increased
Slide 15: Group Retirement
Group Retirement Operating Earnings, adjusted for Notable Items1 Highlights $m ▪ Operating Earnings adjusted for Notable Items1 increased primarily due to growth in fee-based revenue 127 103 ▪ Initial institutional net inflows with over $500m in FYP from BlackRock LifePath Paycheck in 2Q’24 ▪ Net in
Slide 16: Asset Management (AB)
Asset Management (AB) Operating Earnings, adjusted for Notable Items1 Highlights $m ▪ Operating earnings adjusted for notable items1 increased primarily due to higher base fees and lower expenses 101 ▪ Net inflows of $0.9bn, with active net inflows of $1.3bn 89 driven by continued momentum in Retail
Slide 17: Protection Solutions
Protection Solutions Operating Earnings, adjusted for Notable Items1 Highlights $m ▪ Operating earnings adjusted for notable items1 on track for $200m to $300m annual guidance 77 76 ▪ Gross mortality claims and reinsurance coverage consistent with expectations ▪ Annualized premiums up 16% year-over-
Slide 18: Wealth Management
Wealth Management Operating Earnings Highlights $m ▪ Operating Earnings increased primarily due to higher advisory and distribution fees 42 44 ▪ Advisory net inflows of $1.5bn supporting 6% organic growth over the trailing twelve months ▪ Total AUA of $94bn, up 17% YoY, with nearly two-thirds in fee
Slide 19: Legacy
Legacy Operating Earnings, adjusted for Notable Items1 Highlights $m ▪ Operating Earnings adjusted for Notable Items1 decreased primarily due to timing of certain fee accruals 48 43 ▪ Net outflows of $672m in the quarter driven by market performance and runoff of business 2Q23 2Q24 Account Value and
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 June 30, (in millions) 2024 2023 Net income (loss) attributable to Holdings $ 428 $ 759 Adjustments related to: Variable annuity product features 79 (65) Investment gains (losses),
Slide 21: Impact of notable items by segment and corporate & other
Appendix Impact of notable items1 by segment and corporate & other Q2 (2024) reported Alternatives adjustment Actuarial & Model Updates Expenses Tax Rate Q2 (2024) adjusted After-tax Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax True-up After-tax Individual Retirement 234 2 2 - - - - - 236 G
Slide 22: Impact of notable items by segment and corporate & other
Appendix Impact of notable items1 by segment and corporate & other Individual Protection Wealth Corporate and Three Months Ended Q2 (2024) Group Retirement Asset Management Legacy Consolidated Retirement Solutions Management Other Non-GAAP Operating Earnings 234 123 101 67 44 41 (116) 494 Pre-tax ad