Slide 1: Equitable Holdings First Quarter 2024 Earnings Results
Equitable Holdings First Quarter 2024 Earnings Results May 1, 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: First quarter 2024 highlights
First quarter 2024 highlights Building earnings growth momentum • Non-GAAP operating earnings1 per share of $1.43, or $1.43 per share after adjusting for notable items2 • Non-GAAP earnings per share growth ex. notable items2 of 18%, above the 12-15% annual growth guidance • $974bn AUM/A, up 13% vs.
Slide 4: Attractive growth opportunity in the U.S. retirement market
Attractive growth opportunity in the U.S. retirement market Growing US Retirement Income Need • Aging population that is living longer • Shift from DB to DC plans limits safety net c. $35 trillion U.S. Retirement Market AUM1 • Consumers lack income to meet retirement needs Approaching peak retiremen
Slide 5: Equitable meets retirement need with integrated business model
Equitable meets retirement need with integrated business model Distribution through 4,300 affiliated advisors and 14,000 3rd party agents Distribution via BlackRock and AB Individual retirement Group retirement In-plan guarantees Tax-efficient accumulation and income ✓ through innovative capital-lig
Slide 6: First quarter consolidated results summary
First 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 $ +18% +13% AUA 21% PS 1.43 974 8% 864 1.21 IR 39% $491m 16% 788 882 AB 7% 9% 92 76 WM Legacy
Slide 7: Growth momentum supported by market tailwinds
Growth momentum supported by market tailwinds Spread income, net interest margin $millions Fee-based revenue, $millions Individual Retirement Group Retirement Retirement1 Asset Mgmt. Wealth Mgmt. Base Fees2 Advisory Fees +26% +8% 259 +8% 206 667 723 +18% +48% 379 411 90 127 150 61 1Q’23 1Q’24 1Q’23
Slide 8: Capital management driving shareholder value
Capital management driving shareholder value Consistent capital return Delivering on 60-70% payout ratio target1 ▪ Returned $326m to shareholders in the 1Q’24 Dividends Share Repurchases including $253m in share repurchases ▪ Intend to increase quarterly dividend to $0.24 $326m $315m $315m from $0.2
Slide 9: First quarter 2024 highlights
First quarter 2024 highlights Key messages 2027 guidance Cash generation $2bn Building earnings growth momentum of annual cash generation1 by 2027 Payout ratio 60-70% Consistent capital return to shareholders of Non-GAAP Operating Earnings2 EPS growth Delivering on growth strategy 12-15% Non-GAAP Op
Slide 10: Appendix
Appendix Equitable Holdings First 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 6% 3% Structured Credit 18% Baa 31% Corporates 49% $101bn 1 1% Other Fixed Maturities $75bn 18% 66% Mortgage Loans Aaa, Aa, A 4% 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 GAAP Carrying Value Private Equity 995 941 877 820 825 857 850 934 1,462 1,670 1,824 1,874 Real E
Slide 14: Individual Retirement
Individual Retirement Operating Earnings, adjusted for Notable Items1 Highlights $m ▪ Growth in Operating Earnings adjusted for Notable Items1 229 driven by higher net interest margin 204 ▪ Net inflows of $1.6bn were higher year-over-year as strong sales outpaced the increase in outflows ▪ Net inter
Slide 15: 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 124 growth in fee-based revenue 97 ▪ Net outflows of $132m with tax-exempt channel FYP up 50% YoY and 1Q’24 net
Slide 16: Investment Management and Research (AB)
Investment Management and Research (AB) Operating Earnings, adjusted for Notable Items1 Highlights $m ▪ Operating earnings adjusted for notable items1 decreased as higher base fees were more than offset by increased expenses and an elevated tax rate 99 97 ▪ Net inflows of $0.5bn, with active net inf
Slide 17: Protection Solutions
Protection Solutions Operating Earnings, adjusted for Notable Items1 Highlights $m ▪ Results consistent with typical seasonal pattern of higher Life and Employee Benefits claims in the first quarter 46 47 ▪ Gross mortality claims and reinsurance coverage consistent with expectations; pull-forward in
Slide 18: Wealth Management
Wealth Management Operating Earnings Highlights $m ▪ Operating Earnings increased primarily due to higher distribution and advisory fees and increased interest 43 income on cash balances 32 ▪ Advisory net outflows of $175m, primarily attributable to an advisor departure in the quarter ▪ Total AUA of
Slide 19: Legacy
Legacy Operating Earnings, adjusted for Notable Items1 Highlights $m ▪ Operating Earnings adjusted for Notable Items1 decreased primarily due to lower GMxB fees as the block runs off 64 52 ▪ Net outflows of $659m in the quarter driven by market performance and runoff of business 1Q23 1Q24 Account Va
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 March 31, (in millions) 2024 2023 Net income (loss) attributable to Holdings $ 114 $ 177 Adjustments related to: Variable annuity product features 319 861 Investment gains (losses),
Slide 21: Impact of notable items by segment and corporate & other
Appendix Impact of notable items1 by segment and corporate & other Q1 (2024) reported Alternatives adjustment Actuarial & Model Updates Mortality vs. plan Expenses Tax Rate Q1 (2024) adjusted After-tax Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax True-up After-tax Individu
Slide 22: Impact of notable items by segment and corporate & other
Appendix Impact of notable items1 by segment and corporate & other Individual Group Protection Corporate & Wealth Wealth Mgmt Three Months Ended 3/31/2024 AB Legacy Segment Consolidated Retirement Retirement Solutions Other Management Elimination Total revenues 2 (2) - 7 3 - 2 - 11 Policy charges, f