Slide 1: Third Quarter 2018 Earnings Results
Third Quarter 2018 Earnings Results November 13, 2018
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: Third Quarter 2018 Overview
Third Quarter 2018 Overview ▪ S&P 500 up 7% in the quarter Favorable capital ▪ 10-year Treasury rates increased 20 bps markets ▪ October more challenging – hedging program in place ▪ $130 million returned to shareholders during Q3 $ Increase in share ▪ $443 million remaining of initial repurchase au
Slide 4: Third Quarter 2018 Financial Highlights
Third Quarter 2018 Financial Highlights Total AUM grew 3% from September 30, 2017 to $668bn Non-GAAP Operating Earnings1 increased to $693 million, or $1.23 per share ▪ Excluding actuarial assumptions update, Non-GAAP Operating Earnings increased 38% to $524 million, or $0.93 per share Strong perfor
Slide 5: Strategic Priorities
Strategic Priorities Non-GAAP Operating Earnings growth is expected to result in Non-GAAP Operating ROE in the mid-teens by 2020 5-7% Target Non-GAAP Operating Earnings CAGR $2.2-$2.3bn $1.9bn1 Tax reform GA Optimization Productivity Growth Strategic priorities GA Optimization Productivity Growth $1
Slide 6: Third Quarter 2018 Consolidated Results Summary
Third Quarter 2018 Consolidated Results Summary Assumption update impact1 Non-GAAP Operating Earnings Non-GAAP Operating Earnings Financial Highlights Per Diluted Share2 $m $ Non-GAAP Operating Earnings of +73% +73% $693 million, including $169 million favorable impact from actuarial 693 1.23 assump
Slide 7: Third Quarter 2018 Actuarial Assumption Updates
Third Quarter 2018 Actuarial Assumption Updates Impact on Operating earnings by segment and consolidated Net income Operating Earnings Impact Actuarial assumption updates $m except $ per share Pre-tax Post-tax1 Per share Operating Earnings: Individual ▪ Individual Retirement: favorable Retirement 59
Slide 8: Net Income to Non-GAAP Operating earnings
Net Income to Non-GAAP Operating earnings Third quarter 2018 impacts ($m) 195 (409) 693 (169) 524 968 435 (496) 1 2 Net Income Assumption GMxB hedging All other Income tax Non-GAAP Assumption Non-GAAP (loss) updates1 adjustments2 expense Operating updates Operating Earnings (operating) Earnings (exc
Slide 9: Individual Retirement
Individual Retirement Operating Earnings Key Drivers $m Assumption update impact1 ▪ Operating earnings primarily benefited from higher fees and net investment income, reflecting growth in +33% separate account and general account assets 434 ▪ Growth in FYP driven by deepening relationships with exis
Slide 10: Group Retirement
Group Retirement Operating Earnings Key Drivers $m Assumption update impact1 ▪ Strong operating earnings growth primarily due to higher fee income on increased account values and +58% stable expenses 134 ▪ Net outflows driven by higher surrenders and seasonally lower renewals in the 403(b) market 85
Slide 11: Investment Management and Research
Investment Management and Research Operating Earnings Key Drivers $m ▪ Increase in operating earnings mainly driven by: o Higher base fees due to growth in average AUM and a higher portfolio fee rate realization +113% o Higher performance fees primarily due to higher 96 fees earned on two funds o Lo
Slide 12: Protection Solutions
Protection Solutions Operating Earnings Key Drivers $m Assumption update impact1 ▪ Operating earnings growth attributable to higher net investment income from GA optimization and stable n/m operating expenses 137 ▪ Lower baseline DAC amortization ▪ Higher annualized premiums driven by sales growth f
Slide 13: Capital Position and Management
Capital Position and Management Target payout ratio: 40%–60% of 2018 Non-GAAP Operating Earnings to shareholders on an annualized basis Commenced execution of capital management program $73m • Dividends paid during the third quarter ($0.13 per share) • $57m in share repurchases during the third quar
Slide 14: Key Financial Targets
Key Financial Targets Maintain strong balance sheet while delivering disciplined financial growth AXA Equitable Holdings Non-GAAP Op. Earnings growth Payout ratio1 Pro Forma Non-GAAP Operating ROE 5-7% 40-60% Mid-teens CAGR through 2020 by 2020 (after tax reform) AXA Equitable Life AllianceBernstein
Slide 15: Third Quarter 2018 Earnings Results Appendix
Third Quarter 2018 Earnings Results Appendix November 13, 2018
Slide 16: Line item impact of assumptions update
Appendix Line item impact of assumptions update1 Individual Group Protection Three months ended 9/30/2018 ($m) Total2 Retirement Retirement Solutions Total revenues (24) (24) Policy charges, fee income and premiums (24) (24) Total benefits and other deductions 59 43 131 230 Policyholders' benefits (
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 September 30, 2018 2017 (in millions) Net income (loss) attributable to Holdings $ (496) $ 10 Adjustments related to: Variable annuity product features1 1,403 507 Investment (gains)
Slide 18: Reconciliation of Non-GAAP and Other Financial Disclosures
Appendix Reconciliation of Non-GAAP and Other Financial Disclosures EQH Pro Forma Non-GAAP Operating Return on Equity (ROE) Three months Ended or As of Twelve Months Ended or As of (in millions USD, unless otherwise indicated) 09/30/2017 12/31/2017 03/31/2018 06/30/2018 09/30/2018 06/30/2018 09/30/2