Retirement Segment Performance - Retirement segment's total first year premium (FYP) and deposits reached $22,361 million in 2025, up from $20,922 million in 2024, and $15,806 million in 2023, representing a growth of 6.4% year-over-year[30]. - Registered Indexed Linked Annuities (RILAs) contributed $15,366 million to FYP in 2025, an increase of 7.8% from $14,254 million in 2024 and a significant rise from $11,334 million in 2023[30]. - Total net flows for the Retirement segment were $24,855 million in 2025, compared to $23,293 million in 2024 and $18,139 million in 2023, indicating a growth of 6.7% year-over-year[32]. - The Retirement segment's average value (AV) by market as of December 31, 2025, was $174,885 million, up from $151,198 million in 2024[35]. - Equitable Advisors accounted for 38% of individual annuity FYP in 2025, while Third-Party Distribution represented 62%[36]. - The Retirement segment includes a spread lending program that generates spread-based income through Funding Agreement Backed Notes (FABN) and collateralized borrowings[35]. - The company offers a suite of tools and services for retirement plan participants, enhancing client engagement and education[28]. Asset Management Overview - Asset Management business reported approximately $866.9 billion in assets under management (AUM) as of December 31, 2025, with institutional clients representing 41% of AUM[48]. - Total Assets Under Management (AUM) reached $866.9 billion in 2025, up from $792.2 billion in 2024, representing a year-over-year increase of 9.4%[65]. - Institutional AUM grew to $354.2 billion in 2025, compared to $321.4 billion in 2024, marking a 10.4% increase[65]. - Retail AUM increased to $356.4 billion in 2025, up from $334.3 billion in 2024, reflecting a growth of 6.3%[65]. - Private Wealth Management AUM rose to $156.3 billion in 2025, compared to $136.5 billion in 2024, indicating a growth of 14.5%[65]. - Actively Managed Equity AUM was $278.0 billion in 2025, up from $263.4 billion in 2024, showing a 5.2% increase[66]. - Total Fixed Income AUM reached $295.8 billion in 2025, compared to $281.1 billion in 2024, representing a growth of 5.5%[66]. - Average AUM by distribution channel for Institutions was $337.6 billion in 2025, up from $322.9 billion in 2024, a growth of 4.5%[70]. - The average AUM for Retail was $343.5 billion in 2025, compared to $315.3 billion in 2024, reflecting an increase of 8.9%[70]. Financial Performance - Total revenues for the year ended December 31, 2025, reached $4,593 million, a slight increase from $4,559 million in 2024 and $4,261 million in 2023[75]. - The net revenues after interest expense for 2025 were $4,530 million, compared to $4,474 million in 2024 and $4,153 million in 2023[75]. - Distribution revenues for 2025 were $818 million, an increase from $727 million in 2024 and $586 million in 2023[75]. - Investment losses for 2025 were reported at $(31) million, compared to $(13) million in 2024 and $14 million in 2023[75]. Employee and Organizational Insights - The company has approximately 8,000 full-time employees, with 4,500 employed by AB as of December 31, 2025[201]. - 89% of employees reported feeling confident in balancing work and personal lives, indicating a strong sense of psychological safety within the organization[215]. - Equitable's NWOW methodology has transformed the organization, enhancing agility and responsiveness to market conditions since its full implementation in 2024[208]. - The company focuses on four wellness pillars: physical, emotional, financial, and social, to enhance employee well-being and organizational performance[210]. Regulatory and Compliance Environment - Equitable Financial is subject to New York's insurance laws, which limit sales commissions and certain marketing expenses[116]. - The NAIC's Risk Management and Own Risk and Solvency Assessment Model Act requires insurers to maintain a risk management framework and conduct internal risk assessments[129]. - New York's Regulation 213 requires insurers to carry statutory reserves for variable annuity obligations that exceed NAIC standards, potentially affecting dividend distribution capacity[137]. - The NAIC's macro-prudential initiative includes an annual liquidity stress-testing framework for large U.S. life insurers[132]. - The Dodd-Frank Act established the FIO within the U.S. Treasury Department to monitor the insurance industry and recommend designations of insurers as non-bank financial companies[160]. - The SEC adopted rules requiring the recovery of erroneously awarded compensation as mandated by the Dodd-Frank Act in October 2022[162]. - The NAIC adopted a disclosure standard for insurers to report climate-related risks, applicable to those with over $100 million in direct premium[178]. - The NYDFS issued guidance in November 2021 requiring insurers to integrate climate risk into governance and risk management processes[175]. Market and Economic Factors - Equity market declines and volatility can negatively impact the business, potentially decreasing AUM, AV of annuity and variable life contracts, and AUA, which would reduce revenue from fees[223]. - The variable annuity business is particularly sensitive to equity markets, with sustained weakness potentially decreasing revenues and earnings[223]. - Interest rate fluctuations can adversely affect investment returns and results of operations for retirement and investment products[224].

Financial Data and Key Metrics Changes - Full-year non-GAAP operating earnings were $5.64 per share, or $6.21 per share after adjusting for notable items, up 1% over 2024, with growth held back by elevated mortality claims [7][8] - Full-year organic cash generation was $1.6 billion, consistent with guidance, expected to increase to approximately $1.8 billion in 2026, and on track to reach $2 billion in 2027 [8][25] - Assets under management and administration ended 2025 at a record $1.1 trillion, up 10% year-over-year [8][18] Business Line Data and Key Metrics Changes - In Retirement, net flows were $5.9 billion in 2025, a 4% organic growth rate, supported by record RILA sales [9] - Wealth Management saw full-year net inflows of $8.4 billion, a 13% organic growth rate, with the number of wealth planners increasing by 12% [9][21] - AllianceBernstein experienced overall net outflows of $11.3 billion, but its private markets business increased AUM by 18% to $82 billion [10] Market Data and Key Metrics Changes - The retirement segment's net interest margin increased 2% sequentially, driven by growth in general account assets [19] - The adjusted operating margin for AllianceBernstein was reported at 33.7%, at the upper end of its targeted range [13][21] - The company expects mid to high single-digit growth in pre-tax earnings for the retirement segment in 2026 [28] Company Strategy and Development Direction - The company is focused on refining its business mix to emphasize U.S. retirement, asset management, and wealth management as core growth engines [5] - A life reinsurance transaction with RGA freed $2 billion of capital and reduced mortality exposure by 75%, supporting growth in asset and wealth management [11] - The company aims to achieve $150 million in expense savings by 2027, with $120 million already in run rate results [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2027 financial targets, citing solid momentum entering 2026 and reduced mortality exposure [6][31] - The company anticipates continued growth in assets under management and advice, supported by healthy organic growth trends [16] - Management acknowledged competitive market conditions but remains optimistic about the company's ability to execute and capture growth opportunities [5][32] Other Important Information - The company returned $1.8 billion to shareholders in 2025, including $500 million of additional share repurchases [8][24] - The full-year payout ratio was 68% at the high end of the target range of 60%-70% [8][14] - The company ended 2025 with a combined NAIC RBC ratio of approximately 475%, above the target of 400% [25] Q&A Session Summary Question: Insights on private credit portfolio quality - Management indicated that private credit constitutes about 16% of the total general account, with minimal exposure to software, which is only 1% of the total [35][36] Question: Competition for advisors in wealth management - Management noted that organic growth is strong, with a distinct model attracting new advisors, and emphasized disciplined hiring practices [40][42] Question: Addressing valuation gap between AB and Equitable - Management acknowledged the valuation gap and emphasized the focus on growing the business and improving execution to close the gap [45][48] Question: Mortality exposure and potential reduction - Management discussed the manageable nature of remaining mortality exposure and the potential for further reductions through strategic actions [49][52] Question: Retirement segment commission and distribution expenses - Management explained that commission expenses are expected to normalize over time, with earnings growth anticipated to exceed commission expenses [55][56]

Financial Data and Key Metrics Changes - Full-year non-GAAP operating earnings were $5.64 per share, or $6.21 per share after adjusting for notable items, up 1% over 2024 [6][7] - Full-year organic cash generation was $1.6 billion, consistent with guidance, expected to increase to approximately $1.8 billion in 2026 [8][25] - Assets under management and administration ended 2025 at a record $1.1 trillion, up 10% year-over-year [8][18] - The company returned $1.8 billion to shareholders in 2025, with a payout ratio of 68% excluding incremental buybacks [8][24] Business Line Data and Key Metrics Changes - In Retirement, net flows were $5.9 billion in 2025, a 4% organic growth rate, supported by record RILA sales [9] - Wealth Management saw full-year net inflows of $8.4 billion, a 13% organic growth rate, with a 12% increase in the number of wealth planners [9][22] - AllianceBernstein (AB) experienced overall net outflows of $11.3 billion, but its private markets business increased AUM by 18% to $82 billion [10] Market Data and Key Metrics Changes - The company reported strong momentum in the private markets business, with a target of $90 billion-$100 billion in AUM by the end of 2027 [10] - The institutional pipeline for AB ended 2025 with $20 billion, indicating strong future growth potential [10] Company Strategy and Development Direction - The company is focused on three core growth engines: U.S. retirement, asset management, and wealth management, aiming to refine its business mix [5] - The life reinsurance transaction with RGA is expected to create a more valuable company by reducing mortality exposure by 75% and freeing up $2 billion of capital [11][15] - The company aims to achieve $150 million in expense savings by 2027, with $120 million already in run rate results [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2027 financial targets, with solid momentum entering 2026 [6][31] - The company expects EPS growth to accelerate in 2026, driven by reduced mortality exposure and strong cash generation [15][16] - Management highlighted the importance of maintaining a disciplined approach to expenses and capital allocation to support growth [48][88] Other Important Information - The adjusted book value per share was $33.84, providing a more meaningful valuation than reported book value [19] - The company expects a total company tax rate of approximately 20% and segment tax rates of 16% for retirement, 26% for wealth management, and 28% for asset management [29] Q&A Session Summary Question: Insights on private credit portfolio quality - Management indicated that private credit constitutes about 16% of the total general account, with minimal exposure to software, which is only 1% of the total [35][36] Question: Competition for advisors in wealth management - Management noted that organic growth is strong, with a focus on recruiting experienced advisors and maintaining a disciplined approach to hiring [40][42] Question: Addressing valuation gap between AB and Equitable - Management acknowledged the valuation gap and emphasized the importance of focusing on business growth and execution to close it [45][48] Question: Mortality exposure and potential for further reduction - Management discussed the impact of recent claims and indicated that while the remaining exposure is manageable, they will explore options to further reduce it [49][51] Question: Retirement segment commission and distribution expenses - Management explained that commission expenses are expected to normalize over time, with growth in earnings expected to exceed commission expenses [55][56] Question: Cash flow conversion and underlying drivers - Management confirmed that cash generation is improving, driven by higher asset and wealth earnings, and emphasized the importance of cash flow as a key metric [65][68]

Financial Data and Key Metrics Changes - Full-year non-GAAP operating earnings were $5.64 per share, up 1% from 2024, with notable items adjusted EPS at $6.21 [5][6] - Full-year organic cash generation was $1.6 billion, consistent with guidance, expected to increase to approximately $1.8 billion in 2026 [6][12] - Assets under management and administration reached a record $1.1 trillion, up 10% year-over-year [6][17] - The company returned $1.8 billion to shareholders in 2025, with a payout ratio of 68% excluding incremental buybacks [6][22] Business Line Data and Key Metrics Changes - Retirement segment net flows were $5.9 billion in 2025, reflecting a 4% organic growth rate, supported by record RILA sales [7][11] - Wealth Management saw net inflows of $8.4 billion, achieving a 13% organic growth rate, with a 40% year-over-year increase in fourth-quarter earnings [7][20] - AllianceBernstein (AB) reported overall net outflows of $11.3 billion, but private markets business AUM increased by 18% to $82 billion [8][9] Market Data and Key Metrics Changes - The company experienced strong momentum in the private markets business, with a target of $90 billion-$100 billion in AUM by the end of 2027 [9] - The retirement business is expected to see mid to high single-digit growth in pre-tax earnings, with spreads stabilizing in the second half of 2026 [26][70] Company Strategy and Development Direction - The company is focused on three core growth engines: U.S. retirement, asset management, and wealth management, aiming to reshape its balance sheet to be more capital light [4][10] - The life reinsurance transaction with RGA is expected to create a more valuable company by freeing up $2 billion of capital and reducing mortality exposure by 75% [10][14] - The company aims to achieve $2 billion in annual cash generation by 2027, with a strong focus on organic growth and maintaining a disciplined approach to expenses [12][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2027 financial targets, citing solid momentum entering 2026 and reduced mortality exposure [5][28] - The company anticipates EPS growth to accelerate in 2026, driven by strong cash generation and reduced volatility from mortality claims [13][14] - Management highlighted the importance of maintaining a disciplined approach to investments and capital returns while focusing on growth opportunities in attractive markets [88] Other Important Information - The adjusted book value per share was reported at $33.84, providing a more meaningful valuation than reported book value [18] - The company achieved a 33.7% adjusted operating margin at AB, indicating strong execution on margin initiatives [12] Q&A Session Summary Question: Insights on private credit portfolio quality - Management indicated that private credit constitutes about 16% of the total general account, with minimal exposure to software-related risks [32][34] Question: Competition for advisors in wealth management - The company reported a 12% growth in wealth planners, emphasizing a disciplined approach to hiring and targeting specific advisor practices [36][39] Question: Addressing the valuation gap between AB and Equitable - Management acknowledged the valuation gap and emphasized the focus on growing the business and improving execution to close this gap [42][45] Question: Mortality exposure and potential further reductions - Management discussed the impact of recent mortality claims and the prudent guidance for future mortality assumptions, indicating manageable volatility [46][48] Question: Commission and distribution expenses in retirement segment - Management explained the increase in commission expenses and the expectation of earnings growth exceeding commission expenses over time [53][54] Question: Growth potential of the FABN program - The company expressed optimism about growing the FABN program, which has shown attractive IRRs and contributes to retirement earnings [60][61] Question: Cash flow conversion and underlying drivers - Management confirmed improving cash conversion rates, driven by higher asset and wealth earnings and capital release from legacy blocks [64][66] Question: Competitive dynamics in the RILA market - Management noted the growing demand for RILAs and the company's commitment to maintaining disciplined pricing and strong IRRs despite increased competition [79][81]

Equitable Holdings Full Year and Fourth Quarter 2025 Earnings Results February 4, 2026 Equitable 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," "assumes," "estimates," "projects," "should," "would," "could," "may," "will," "shall" or variations of such words are gen ...

Core Insights - Equitable Holdings, Inc. reported a revenue of $3.74 billion for the quarter ended December 2025, reflecting a decrease of 5.4% year-over-year and a surprise of -7.2% compared to the Zacks Consensus Estimate of $4.03 billion. The EPS was $1.76, up from $1.57 in the same quarter last year, resulting in a positive surprise of +0.64% over the consensus estimate of $1.75 [1][3]. Financial Performance Metrics - Retirement net flows were reported at $1.26 billion, below the average estimate of $1.48 billion from two analysts [4]. - Total asset value in the Retirement segment at the end of the period was $163.86 billion, compared to the average estimate of $177.11 billion from two analysts [4]. - Wealth Management advisory net new assets reached $2.15 billion, exceeding the average estimate of $1.89 billion from two analysts [4]. - Total Wealth Management ending assets were $122.01 billion, slightly below the average estimate of $122.15 billion [4]. - Retirement segment revenues were $1.67 billion, slightly above the average estimate of $1.66 billion from three analysts, representing a year-over-year increase of +70.4% [4]. - Revenue from Retirement investment management, service fees, and other income was $186 million, slightly above the average estimate of $185.87 million, with a year-over-year increase of +97.9% [4]. - Policy charges, fee income, and premiums in the Retirement segment generated $435 million, significantly lower than the average estimate of $810.18 million [4]. - Retirement net derivative losses were reported at -$9 million, worse than the average estimate of -$2.03 million, but showed a year-over-year change of +80% [4]. - Net investment income in the Retirement segment was $1.16 billion, matching the average estimate and reflecting a year-over-year increase of +74.3% [4]. - Policy charges, fee income, and premiums in the Retirement segment were $328 million, exceeding the average estimate of $312.96 million, with a year-over-year increase of +47.1% [4]. - Corporate and Other segment revenues were $557 million, significantly below the average estimate of $845.64 million, but represented a year-over-year increase of +148.7% [4]. - Wealth Management segment revenues were $548 million, surpassing the average estimate of $523.73 million, with a year-over-year increase of +13.9% [4].

分组1 - Equitable Holdings, Inc. reported quarterly earnings of $1.76 per share, exceeding the Zacks Consensus Estimate of $1.75 per share, and up from $1.57 per share a year ago, representing an earnings surprise of +0.64% [1] - The company posted revenues of $3.74 billion for the quarter ended December 2025, missing the Zacks Consensus Estimate by 7.2%, and down from $3.95 billion year-over-year [2] - Equitable Holdings has underperformed the market, with shares down about 6.2% since the beginning of the year, while the S&P 500 has gained 1.1% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $1.81 on revenues of $4.13 billion, and for the current fiscal year, it is $7.88 on revenues of $16.83 billion [7] - The Zacks Industry Rank for Insurance - Multi line is currently in the bottom 38% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

Financial Performance - Net income attributable to Holdings decreased by 75.9% to $215 million for Q4 2025, compared to $892 million in Q4 2024[7] - Non-GAAP Operating Earnings for Q4 2025 were $513 million, a slight decrease of 0.4% from $515 million in Q4 2024[7] - The company reported a diluted earnings per common share of $(4.47) for Q4 2025, down 74.5% from $2.74 in Q4 2024[7] - Non-GAAP operating earnings for the year ended December 31, 2025, were $1,741 million, down from $2,004 million in 2024, reflecting a decrease of 13.1%[15] - For the year ended December 31, 2025, consolidated operating earnings were $1,741 million, a decrease from $2,004 million in 2024, representing a decline of 13.1%[21] Equity and Capital - Total equity attributable to Holdings' common shareholders fell by 104.7% to $(1,142) million as of December 31, 2025, from $58 million a year earlier[7] - Total capital returned to common shareholders in 2025 was $1,764 million, an increase from $1,316 million in 2024[7] - The debt to capital ratio (ex. AOCI) increased to 38.3% as of December 31, 2025, up from 27.2% a year earlier[7] - Total equity attributable to Holdings decreased from $10,277 million in December 2024 to $9,968 million in March 2025, a decline of 3.0%[18] - Total equity attributable to Holdings decreased to $5,138 million as of December 31, 2025[74] Revenue and Income - Total revenues decreased by 9.3% year-over-year to $3,277 million for the three months ended December 31, 2025, compared to $3,615 million for the same period in 2024[11] - Total revenues for the consolidated segments amounted to $3,741 million for the three months ended December 31, 2025, compared to $3,948 million in the same period of 2024, a decrease of 5.2%[20] - Total revenues for the year ended December 31, 2025, increased by 13.0% to $6,204 million compared to $5,492 million for the year ended December 31, 2024[29] - Policy charges and fee income fell by 31.8% to $435 million for the three months ended December 31, 2025, down from $638 million in the prior year[11] - Policy charges, fee income, and premiums totaled $3,214 million in 2025, compared to $3,667 million in 2024, showing a decrease of 12.3%[21] Investment Income - Net investment income increased by 7.7% to $1,288 million for the three months ended December 31, 2025, compared to $1,196 million for the same period in 2024[11] - Net investment income for the consolidated segments was $1,311 million for the three months ended December 31, 2025, up from $1,228 million in the same period of 2024, an increase of 6.8%[20] - Net investment income for 2025 was $5,283 million, up from $4,850 million in 2024, indicating an increase of 8.9%[21] - Net investment income improved significantly to $48 million for the year ended December 31, 2025, compared to $27 million for the previous year, marking a 77.8% increase[33] Assets and Liabilities - Total assets rose to $318,312 million as of December 31, 2025, from $295,727 million as of December 31, 2024, reflecting a growth of 7.6%[16] - Total liabilities grew to $316,524 million as of December 31, 2025, up from $292,179 million as of December 31, 2024, marking an increase of 8.3%[16] - The account value balance at the end of the period for the General Account reached $98,909 million, up from $79,376 million at the beginning of the period, reflecting a growth of 24.7%[31] - The total asset value at the end of the period was $176,166 million, an increase from $152,213 million, representing a growth of 15.8%[31] Shareholder Metrics - Weighted-average diluted shares outstanding decreased by 8.2% to 289.1 million in Q4 2025 from 324.8 million in Q4 2024[7] - The ending common shares outstanding decreased from 309.9 million in March 2025 to 283.3 million in December 2025, a reduction of 8.6%[18] - Non-GAAP Operating ROE (TTM) improved to 25.6% for the year ended December 31, 2025, compared to 22.4% a year earlier[7] - Non-GAAP Operating Earnings per common share for the year ended December 31, 2025, was $5.64, down from $5.92 in the previous year, reflecting a decrease of approximately 5%[67] Market Performance - The S&P 500 index value increased from 5,882 in Q4 2024 to 6,846 in Q4 2025, representing a growth of 16.4%[22] - The company’s total AUM/A increased from $1,020.5 billion in Q4 2024 to $1,120.6 billion in Q4 2025, a rise of 9.8%[22] - Total assets under management (AUM) increased to $866.9 billion by December 31, 2025, up from $792.2 billion, indicating a growth of 9.4%[33] Segment Performance - Operating earnings for the Asset Retirement segment reached $410 million for the three months ended December 31, 2025, compared to $385 million in the same period of 2024, representing a 6.5% increase[20] - Operating earnings for the Wealth Management segment were $160 million for the three months ended December 31, 2025, compared to $161 million in the same period of 2024, a slight decrease of 0.6%[20] - Operating earnings for the Corporate and Other segment for the three months ended December 31, 2025, were a loss of $123 million, a 57.7% decrease compared to the previous quarter and a 131.3% decline year-over-year[44] Flow and Premiums - Total first year premiums and deposits for the year ended December 31, 2025, reached $22,361 million, up from $20,922 million in 2024, marking an increase of 6.9%[30] - Total renewal premiums and deposits for the year ended December 31, 2025, were $2,659 million, compared to $2,579 million in 2024, representing a growth of 3.1%[30] - The net flows for the Asset Management segment were negative at $(11.3) billion for the year ended December 31, 2025, compared to $(2.2) billion in the previous year[33] Ratings and Credit - Equitable Financial Life Insurance Company and its subsidiary received an A rating from A.M. Best and A+ from S&P[95] - Equitable Holdings, Inc. has a credit rating of bbb+ from S&P and Baa1 from Moody's[95]

Group 1 - Equitable Holdings (NYSE:EQH) is recognized as one of the best financial pure plays under $100, with a bullish rating initiated by Mizuho Securities analyst Yaron Kinar, who set a price target of $66, indicating over 37% upside potential from current levels [1] - Kinar's positive outlook is attributed to a strong preference for life insurance businesses, where Equitable Holdings has a significant presence through a comprehensive suite of products, including Variable Universal Life, Indexed Universal Life, Term Life insurance, and Annuities [2] - As of December 30, Equitable Holdings received coverage from 8 analysts, with 6 assigning Buy ratings and 2 giving Hold ratings, leading to a median 1-year price target of $63, which implies nearly 31% upside from the current market price [3] Group 2 - Equitable Holdings is a leading financial services firm in the United States, providing retirement plans, wealth management, insurance, and protection services, along with a diverse array of products [4]

Core Viewpoint - Equitable Holdings (EQH) has shown modest performance over the past year, with a gain of approximately 4% [1] Group 1: Company Performance - The company is actively repurchasing stock and has undergone significant business transformation through a large reinsurance transaction [1] - Mixed results have been observed throughout the year, indicating variability in performance metrics [1] Group 2: Analyst Insights - The analyst has over fifteen years of experience in making contrarian bets based on macro views and stock-specific turnaround stories [1]