[PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) Equitable Holdings' unaudited consolidated financial statements show total assets of **$287.4 billion**, net income attributable to Holdings of **$63 million**, and a significant positive swing in net derivative gains Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Investments | $118,908 | $116,441 | | Total Assets | $287,366 | $295,727 | | Total Liabilities | $282,872 | $292,179 | | Total Equity | $4,205 | $3,423 | Consolidated Income Statement Highlights (in millions) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total Revenues | $4,576 | $2,230 | | Net Derivative Gains (Losses) | $799 | $(1,376) | | Total Benefits and Other Deductions | $4,402 | $2,011 | | Net Income (Loss) Attributable to Holdings | $63 | $92 | | Diluted Earnings Per Share | $0.16 | $0.23 | Consolidated Cash Flow Highlights (in millions) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $158 | $31 | | Net cash provided by (used in) investing activities | $(1,199) | $(2,682) | | Net cash provided by (used in) financing activities | $2,228 | $4,945 | | Change in cash and cash equivalents | $1,200 | $2,284 | [Note 1 - Organization](index=13&type=section&id=Note%201%20-%20Organization) Equitable Holdings operates through six segments, with a **62%** economic interest in AllianceBernstein, and recently completed a reinsurance transaction and a legacy variable annuity novation resulting in a **$236 million** loss - The company operates through six segments: Individual Retirement, Group Retirement, Asset Management, Protection Solutions, Wealth Management, and Legacy[34](index=34&type=chunk)[39](index=39&type=chunk) - On February 23, 2025, the company entered into a master transaction agreement with Reinsurance Group of America (RGA) to reinsure a block of business, with the deal expected to close in mid-2025[37](index=37&type=chunk) - Effective January 17, 2025, the company novated certain legacy variable annuity policies to Venerable, resulting in a pre-tax net income loss of **$499 million** and a total impact loss of **$236 million**[38](index=38&type=chunk)[40](index=40&type=chunk) [Note 2 - Significant Accounting Policies](index=14&type=section&id=Note%202%20-%20Significant%20Accounting%20Policies) The company's U.S. GAAP financial statements consolidate VIEs, including **$2.1 billion** in CLOs, and were voluntarily revised to correct immaterial errors primarily related to reinsurance deposit accounting - The company consolidates various Variable Interest Entities (VIEs), including Collateralized Loan Obligations (CLOs), limited partnerships, and AB-sponsored investment funds[48](index=48&type=chunk)[51](index=51&type=chunk)[55](index=55&type=chunk) - As of March 31, 2025, consolidated CLOs had total assets and liabilities of **$2.1 billion**[53](index=53&type=chunk) - The company voluntarily revised prior period financial statements to correct immaterial errors related to reinsurance deposit accounting and other items to improve consistency and comparability[59](index=59&type=chunk)[60](index=60&type=chunk) [Note 3 - Investments](index=17&type=section&id=Note%203%20-%20Investments) The company's **$118.9 billion** investment portfolio includes **$78.0 billion** in AFS fixed maturities with **$7.7 billion** in unrealized losses, and saw net investment income rise to **$1.25 billion** in Q1 2025 Fixed Maturities AFS by Classification (in millions) | Type | Fair Value (Mar 31, 2025) | Fair Value (Dec 31, 2024) | | :--- | :--- | :--- | | Corporate | $48,937 | $49,351 | | U.S. Treasury, govt & agency | $4,754 | $4,288 | | Asset-backed | $13,885 | $13,699 | | Commercial mortgage-backed | $4,156 | $3,921 | | **Total** | **$77,997** | **$76,641** | - As of March 31, 2025, AFS fixed maturities had gross unrealized losses of **$7.7 billion**, of which **$7.6 billion** were in a loss position for twelve months or longer, primarily due to increases in interest rates and credit spreads[79](index=79&type=chunk)[80](index=80&type=chunk)[82](index=82&type=chunk) Mortgage Loans on Real Estate (Net of Allowance) (in millions) | Date | Amount | | :--- | :--- | | March 31, 2025 | $20,566 | | December 31, 2024 | $20,072 | Net Investment Income (in millions) | Period | Amount | | :--- | :--- | | Q1 2025 | $1,248 | | Q1 2024 | $1,210 | [Note 4 - Derivatives](index=31&type=section&id=Note%204%20-%20Derivatives) The company uses derivatives to hedge GMxB risks, with a total notional amount of **$118.0 billion** and net derivative gains of **$799 million** in Q1 2025, reversing a prior-year loss - Derivatives are primarily used to reduce economic exposures to equity market and interest rate risks from variable annuity guaranteed benefits (GMxB)[117](index=117&type=chunk)[118](index=118&type=chunk) Derivative Instruments Fair Value (in millions) | Date | Notional Amount | Derivative Assets | Derivative Liabilities | Net Derivatives | | :--- | :--- | :--- | :--- | :--- | | Mar 31, 2025 | $118,016 | $18,790 | $32,352 | $(13,562) | | Dec 31, 2024 | $116,484 | $21,814 | $38,927 | $(17,113) | Net Derivative Gains (Losses) on Income Statement (in millions) | Period | Amount | | :--- | :--- | | Q1 2025 | $799 | | Q1 2024 | $(1,376) | [Note 13 - Equity](index=75&type=section&id=Note%2013%20-%20Equity) The company declared a **$0.24** per share dividend, repurchased **5.0 million** shares for approximately **$253 million** in Q1 2025, and has **$1.7 billion** remaining for future repurchases - On February 13, 2025, the Board approved an additional **$1.5 billion** for the share repurchase program. As of March 31, 2025, approximately **$1.7 billion** remained authorized[280](index=280&type=chunk) Share Repurchase and Dividend Activity | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Shares Repurchased (millions) | 5.0 | 7.5 | | Average Price Paid | $50.55 | $33.86 | | Common Dividend per Share | $0.24 | $0.22 | - Total accumulated other comprehensive income (AOCI) attributable to Holdings was a loss of **$7.6 billion** as of March 31, 2025, an improvement from a loss of **$8.7 billion** at year-end 2024[287](index=287&type=chunk) [Note 16 - Commitments and Contingent Liabilities](index=80&type=section&id=Note%2016%20-%20Commitments%20and%20Contingent%20Liabilities) The company faces up to **$100 million** in reasonably possible litigation losses and utilizes FHLB and FABN funding agreements totaling **$6.9 billion** and **$7.1 billion** respectively for liquidity - The company estimates the aggregate range of reasonably possible losses from litigation and regulatory matters, in excess of amounts accrued, to be up to approximately **$100 million** as of March 31, 2025[297](index=297&type=chunk) - The Hobish v. AXA Equitable Life Insurance Company matter was settled in March 2025[299](index=299&type=chunk) Funding Agreement Balances (March 31, 2025, in millions) | Program | Outstanding Balance | | :--- | :--- | | FHLB Funding Agreements | $6,865 | | FABN Funding Agreements | $7,078 | | FABCP Funding Agreements | $850 | [Note 17 - Business Segment Information](index=83&type=section&id=Note%2017%20-%20Business%20Segment%20Information) Total operating earnings for Q1 2025 were **$421 million**, with Individual Retirement, Group Retirement, and Asset Management as key contributors, while Protection Solutions reported an operating loss Operating Earnings (Loss) by Segment (in millions) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Individual Retirement | $216 | $238 | | Group Retirement | $130 | $124 | | Asset Management | $126 | $106 | | Protection Solutions | $(17) | $44 | | Wealth Management | $46 | $43 | | Legacy | $24 | $33 | | Corporate and Other | $(104) | $(111) | | **Total Operating Earnings** | **$421** | **$477** | Total Assets by Segment (in millions) | Segment | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Individual Retirement | $118,123 | $110,358 | | Group Retirement | $50,353 | $51,269 | | Asset Management | $10,845 | $10,514 | | Protection Solutions | $41,725 | $41,583 | | Legacy | $34,955 | $42,373 | | **Total Assets** | **$287,366** | **$295,727** | [Note 20 - Revision of Prior Period Financial Statements](index=91&type=section&id=Note%2020%20-%20Revision%20of%20Prior%20Period%20Financial%20Statements) The company voluntarily revised prior period financial statements to correct immaterial errors, primarily related to reinsurance deposit accounting, impacting net income for 2023 and 2024 - The company identified and corrected an immaterial error related to the bookkeeping of ceded accrued fees in a reinsurance transaction, which impacted deposit accounting[350](index=350&type=chunk) - Other corrected errors include a pension liability overstatement, incorrect FX on FABN, and various modeling input errors for MRB and deposit accounting[350](index=350&type=chunk) - The impact on previously reported Net Income Attributable to Holdings for the full year 2023 was a decrease of **$19 million**, and for the full year 2024 was a decrease of **$27 million**[355](index=355&type=chunk)[366](index=366&type=chunk) [Note 21 - Subsequent Events](index=95&type=section&id=Note%2021%20-%20Subsequent%20Events) Subsequent to quarter-end, Holdings increased its economic interest in AllianceBernstein to approximately **68.5%** and redeemed **$279 million** of Series B Preferred Stock - On April 3, 2025, Holdings purchased **19.7 million** AB Holding Units for **$758 million**, increasing its economic interest in AllianceBernstein L.P. to approximately **68.5%**[375](index=375&type=chunk) - On April 11, 2025, Holdings redeemed and retired **$279 million** of its Series B Preferred Stock[376](index=376&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=96&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, noting strategic actions like the RGA reinsurance and AB tender offer, with Q1 2025 net income attributable to Holdings decreasing to **$63 million** and operating earnings to **$421 million** - Key strategic developments include the RGA Reinsurance Transaction expected to generate over **$2 billion** in value, the novation of legacy VA policies to Venerable, and a tender offer increasing ownership in AB to **~68.5%**[382](index=382&type=chunk)[383](index=383&type=chunk)[385](index=385&type=chunk) - The macroeconomic environment in Q1 2025 was characterized by U.S. equity market losses (S&P 500 returned **-4.3%**) and a lowered U.S. growth forecast by the Federal Reserve[388](index=388&type=chunk) Key Performance Metrics (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income Attributable to Holdings | $63 | $92 | | Non-GAAP Operating Earnings | $421 | $477 | [Results of Operations by Segment](index=124&type=section&id=Results%20of%20Operations%20by%20Segment) Q1 2025 operating earnings were primarily from Individual Retirement, Group Retirement, and Asset Management, while Protection Solutions reported a **$17 million** loss due to unfavorable mortality Operating Earnings (Loss) by Segment (in millions) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Individual Retirement | $216 | $238 | | Group Retirement | $130 | $124 | | Asset Management | $126 | $106 | | Protection Solutions | $(17) | $44 | | Wealth Management | $46 | $43 | | Legacy | $24 | $33 | [Liquidity and Capital Resources](index=149&type=section&id=Liquidity%20and%20Capital%20Resources) Holdings' highly liquid assets increased to **$2.3 billion** in Q1 2025, supported by subsidiary dividends and a **$500 million** junior subordinated debt issuance, maintaining strong liquidity Holding Company Highly Liquid Assets (in millions) | Period | Amount | | :--- | :--- | | End of Q1 2025 | $2,324 | | Beginning of Q1 2025 | $1,982 | - In Q1 2025, Holdings received **$226 million** in dividends from subsidiaries and used **$336 million** for share repurchases and common dividends[518](index=518&type=chunk) - The company issued **$500 million** of **6.7%** Junior Subordinated Debt Securities due 2055 in March 2025[292](index=292&type=chunk)[518](index=518&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=133&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in the quantitative and qualitative disclosures about market risk compared to the 2024 Annual Report on Form 10-K - There have been no material changes to the market risk disclosures from the 2024 Form 10-K[584](index=584&type=chunk) [Controls and Procedures](index=133&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective[585](index=585&type=chunk) - No material changes to internal control over financial reporting occurred during the first quarter of 2025[586](index=586&type=chunk) [PART II - OTHER INFORMATION](index=134&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=134&type=section&id=Item%201.%20Legal%20Proceedings) The company faces various litigation and regulatory matters, with estimated reasonably possible losses up to approximately **$100 million** in excess of accruals, and settled the Hobish v. AXA Equitable case - The company estimates the aggregate range of reasonably possible losses from certain legal and regulatory matters to be up to approximately **$100 million**, in excess of any amounts already accrued[297](index=297&type=chunk) - The Hobish v. AXA Equitable Life Insurance Company case was settled in March 2025[299](index=299&type=chunk) [Risk Factors](index=134&type=section&id=Item%201A.%20Risk%20Factors) This section refers readers to the comprehensive risk factors detailed in the 2024 Annual Report on Form 10-K and other risks within this report - The report directs readers to the "Risk Factors" section of the 2024 Form 10-K for a comprehensive discussion of risks[589](index=589&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=134&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2025, Equitable Holdings repurchased **5,012,985** common shares at an average price of **$50.55**, with **$1.68 billion** remaining authorized for future repurchases Share Repurchases in Q1 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2025 | 1,868,710 | $47.71 | | Feb 2025 | 620,370 | $53.27 | | Mar 2025 | 2,523,905 | $51.98 | | **Total Q1** | **5,012,985** | **$50.55** | - As of March 31, 2025, approximately **$1.7 billion** remained available for purchase under the company's share repurchase programs[590](index=590&type=chunk)

Financial Data and Key Metrics Changes - Non-GAAP operating earnings for the first quarter were $421 million or $1.30 per share, down 7% year over year on a per share basis, while adjusting for notable items, non-GAAP operating EPS was $1.35, down 3% compared to the prior year [7][20] - GAAP net income was $63 million in the quarter, lower than non-GAAP operating earnings due to non-economic hedging impacts [21] - The reported book value per share excluding AOCI was $27.62, while the adjusted book value per share including ownership in AB at market value was $39.96 [22] Business Line Data and Key Metrics Changes - The Protection Solutions segment reported a loss of $17 million due to high levels of large individual life mortality claims, which were approximately $80 million above expectations [8][23] - Retirement businesses produced $1.6 billion of net inflows, driven by momentum in the RILEH franchise and expansion of institutional offerings [8] - Wealth management business had $2 billion of advisory net inflows, with advisor productivity up 8% and a 12% organic growth rate on a trailing twelve-month basis [9] Market Data and Key Metrics Changes - The company experienced positive net flows across each of its three distribution channels, with total active net inflows of $2.7 billion [9] - The private markets business saw AUM increase by 20% year over year to $75 billion, with a strong pipeline [9] - The company noted that market volatility and tax payments pressured flows in April, but it remains well-positioned due to its diversified asset mix and global investment platform [9][11] Company Strategy and Development Direction - The company plans to close a reinsurance transaction with RGA, which will free up over $2 billion of capital and enhance focus on retirement, asset management, and wealth management [10][18] - The strategy emphasizes the combination of insurance and asset management to provide competitive advantages, with a focus on capturing synergies between Equitable and AB [17][92] - The company aims to maintain a strong balance sheet and predictable cash flows, leveraging its all-weather product portfolio to navigate market volatility [12][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate periods of macro volatility, highlighting strong underlying growth drivers and the need for retirement and investment advice [5][12] - The company anticipates that periods of market volatility will increase demand for its products, particularly buffered annuities [12][46] - Management remains optimistic about long-term growth prospects, driven by favorable demographic trends and a durable need for the advice and solutions offered [38] Other Important Information - The company returned $335 million to shareholders in the first quarter, representing an 80% payout ratio, and plans to increase its quarterly cash dividend by 13% [29][30] - The company has $2.2 billion of cash and liquid assets at holdings, up from $1.8 billion at the end of the fourth quarter [30] - The company is focused on maintaining financial flexibility and is prepared to take advantage of market opportunities as they arise [36][68] Q&A Session Summary Question: Can you size the extraordinary dividend planned for the holding company? - Management expects to take an extraordinary dividend of about $1 billion later in the year, following the $2 billion benefit from the life insurance company post-transaction with RGA [42] Question: Are you seeing incremental demand for your products given current market conditions? - Management reported robust sales in April, driven by demographic trends and heightened market volatility, with continued demand for their products [46][47] Question: What is the impact of seasonally elevated expenses and lower fee days on earnings? - Management indicated that the seasonal expenses and lower fee days had a pretax impact of about $10 million on individual retirement earnings, which is expected to normalize in the second quarter [50] Question: How do you view the leverage ratio and potential buybacks? - Management stated that any incremental buybacks would likely be accompanied by debt repayment to maintain leverage ratios in line with rating agency expectations [52] Question: What is the outlook for cash flow guidance given lower equity markets? - Management remains comfortable with the cash flow guidance of $1.6 billion to $1.7 billion for the year, despite being on the lower end due to current market conditions [91]

Financial Data and Key Metrics Changes - Non-GAAP operating earnings for Q1 2025 were $421 million or $1.30 per share, down 7% year over year on a per share basis [5][19] - Adjusted for notable items, non-GAAP operating EPS was $1.35, a decrease of 3% compared to the prior year [5][19] - GAAP net income was $63 million, lower than non-GAAP operating earnings due to non-economic hedging impacts [20] - Reported book value per share excluding AOCI was $27.62, while adjusted book value per share including ownership in AB at market value was $39.96 [20][21] Business Line Data and Key Metrics Changes - Protection Solutions segment reported a loss of $17 million due to high mortality claims, which were approximately $80 million above expectations [6][22] - Retirement businesses produced $1.6 billion of net inflows, driven by the RILEH franchise and institutional offerings [6][25] - Wealth management business had $2 billion of advisory net inflows, with advisor productivity up 8% and a 12% organic growth rate [6][25] - AllianceBernstein (AB) reported positive net flows across all distribution channels, with total active net inflows of $2.7 billion [7][26] Market Data and Key Metrics Changes - The company experienced strong net flows in individual retirement, with $1.4 billion in net flows and an 8% organic growth rate over the last twelve months [55] - Group Retirement had positive net inflows of $192 million, while Wealth Management advisory net flows were $2 billion [25][26] - AB's institutional pipeline increased materially by several billion dollars in Q1, indicating confidence in future flows despite market volatility [60] Company Strategy and Development Direction - The company plans to close a reinsurance transaction with RGA, which will free up over $2 billion of capital and enhance focus on retirement, asset management, and wealth management [9][34] - The strategy includes increasing ownership in AllianceBernstein to 69%, capturing more economic benefits and synergies between the two firms [9][35] - The company emphasizes the importance of providing retirement and investment advice, especially during periods of market volatility, to meet the growing demand for secure income solutions [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macro volatility due to a strong balance sheet and predictable cash flows [10][37] - The company highlighted favorable demographic trends, with 4 million Americans turning 65 each year, increasing the demand for retirement solutions [12] - Management noted that periods of market volatility enhance the need for the advice and solutions offered, positioning the company well for future growth [11][37] Other Important Information - The company returned $335 million to shareholders in Q1, representing an 80% payout ratio, and plans to increase the quarterly cash dividend by 13% [8][28] - The company has $2.2 billion of cash and liquid assets at holdings, up from $1.8 billion at the end of the previous quarter [28] - The company expects to close the life reinsurance transaction in mid-2025, which will provide significant financial flexibility [34] Q&A Session Summary Question: Size of extraordinary dividend from $2 billion proceeds - Management expects to take an extraordinary dividend of about $1 billion later in the year after the reinsurance transaction [40][41] Question: Demand for products amid market volatility - Management reported robust sales in April, driven by demographic trends and heightened market volatility [44][46] Question: Impact of elevated expenses and lower fee days on earnings - Elevated expenses had a pretax impact of about $10 million on individual retirement earnings, but growth in net investment margin is expected [48][49] Question: Leverage ratio management - Management indicated that any incremental buybacks would likely be accompanied by debt repayment to maintain leverage ratios [50][51] Question: Outlook for cash flow guidance - Management remains confident in the $1.6 billion to $1.7 billion cash flow guidance despite current market conditions [90][91] Question: Changes in ownership thoughts for AllianceBernstein - Management has no immediate plans to increase ownership beyond 69% but is pleased with the current synergies [92][93]

Financial Performance - Non-GAAP operating earnings per share were $1.30, or $1.35 after adjusting for notable items[8] - Non-GAAP operating earnings were $421 million, or $434 million adjusted for notable items, a decrease of 3% year-over-year on a per share basis[16] - The company returned $335 million to shareholders, representing an 80% payout ratio[8] Business Segment Highlights - Asset Management operating earnings increased by 19% year-over-year[8] - Retirement saw net inflows of $1.6 billion, driven by strong RILA and Institutional sales[8] - Wealth Management advisory net inflows reached $2.0 billion, supported by 8% year-over-year growth in advisor productivity[8] - AB active net inflows were $2.7 billion, with Private Markets AUM up 20% year-over-year to $75 billion[8] - Protection Solutions experienced an operating loss of $17 million due to excess Individual Life mortality[8] Capital Management and Transactions - The company purchased approximately $760 million of AB Holding units through a tender offer, increasing ownership to approximately 69% effective April 1[8] - The Individual Life transaction with RGA is on track to close mid-2025, freeing over $2 billion of capital[8] - Post-close of the Individual Life transaction, the company plans to execute $500 million of additional share repurchases, above the 60-70% payout ratio target[14] Balance Sheet and Liquidity - The company had $1.1 billion in cash at Holdings after AB and Series B preferred equity tender offers, with a combined NAIC RBC ratio of approximately 425% as of year-end 2024[8]

Equitable Holdings, Inc. (EQH) came out with quarterly earnings of $1.35 per share, missing the Zacks Consensus Estimate of $1.49 per share. This compares to earnings of $1.43 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -9.40%. A quarter ago, it was expected that this company would post earnings of $1.61 per share when it actually produced earnings of $1.57, delivering a surprise of -2.48%.Over the last four quarters, the ...

Table of Contents | Consolidated Financials and Key Metrics | Page | | --- | --- | | Key Metrics Summary | 4 | | Consolidated Statements of Income (Loss) | 5 | | Consolidated Balance Sheets | 6 | | Consolidated Capital Structure | 7 | | Operating Earnings (Loss) by Segment and Corporate and Other | 8 | | Assets Under Management and Administration | 9 | | Sales Metrics by Segment | 10 | | Select Metrics from Business Segments | | | Individual Retirement | | | Statements of Operating Earnings (Loss) and Summa ...

Company Overview - Equitable Holdings, Inc. (EQH) is headquartered in New York and operates in the Finance sector [3] - The stock has experienced a price change of -4.39% since the beginning of the year [3] Dividend Information - The company currently pays a dividend of $0.24 per share, resulting in a dividend yield of 2.13% [3] - This yield is higher than the Insurance - Multi line industry's yield of 1.56% and the S&P 500's yield of 1.73% [3] - The annualized dividend of $0.96 has increased by 2.1% from the previous year [4] - Over the last 5 years, Equitable Holdings has increased its dividend 5 times, averaging an annual increase of 9.51% [4] - The current payout ratio is 16%, indicating that the company paid out 16% of its trailing 12-month EPS as dividends [4] Earnings Growth Expectations - For the fiscal year, EQH anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $7.13 per share, reflecting a year-over-year growth rate of 20.24% [5] Investment Considerations - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [6] - High-growth firms or tech start-ups typically do not provide dividends, while established companies are viewed as better dividend options [7] - EQH is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7]

Shares of Equitable Holdings (NYSE: EQH ) have been an excellent performer over the past year, adding over 60%. The company has benefited from its ongoing transformation and strong capital position, which have enabled significant capital returns. This year, itOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an art ...

Financial Performance - The Individual Retirement segment reported a total First Year Premium (FYP) of $18,560 million for the year ended December 31, 2024, up from $14,226 million in 2023, representing a growth of 30.5%[36] - Gross premiums for the year ended December 31, 2024, were $4,693 million, compared to $3,806 million in 2023, indicating an increase of 23.3%[59] - Total revenues for the year ended December 31, 2024, reached $4,559 million, up from $4,261 million in 2023, marking a year-over-year increase of 7.0%[94] - The Protection Solutions segment's total reserves increased to $36,961 million in 2024, compared to $34,521 million in 2023, reflecting a growth of 7.0%[107] - Total net long-term outflows for actively managed investment services were $2.2 billion in 2024, compared to $7.0 billion in 2023 and $3.6 billion in 2022[90] Assets Under Management (AUM) - Total Assets Under Management (AUM) reached $792.2 billion as of December 31, 2024, up from $725.2 billion in 2023, representing an increase of 9.1%[88] - Average Assets Under Management (AUM) increased to $768.5 billion in 2024 from $680.3 billion in 2023, representing a growth of approximately 12.8%[91] - Institutional clients accounted for 41% of AUM, while retail and private wealth clients represented 42% and 17% respectively as of December 31, 2024[71] - The company’s total AUM by investment service included $331.7 billion in equities, $295.8 billion in fixed income, and $164.7 billion in alternatives/multi-asset solutions as of December 31, 2024[89] Product Performance - Structured Capital Strategies (SCS) contributed $12,205 million to FYP in 2024, an increase of 17.3% from $10,401 million in 2023[36] - The company introduced SCS Income in 2021, a new version of SCS that includes a GMxB feature, enhancing product offerings[34] - The company’s variable annuity products generated $40.654 billion in Account Value (AV) for 2024, compared to $36.470 billion in 2023, reflecting a growth of 11.9%[63] - The company’s tax-exempt AV increased to $29.519 billion in 2024, compared to $26.519 billion in 2023, reflecting a growth of 11.3%[63] - Variable Universal Life (VUL) annualized premiums rose to $223 million in 2024, up from $210 million in 2023, indicating an increase of 6.2%[103] Distribution Channels - Equitable Advisors represented 35% of the variable annuity FYP in 2024, while third-party distribution channels accounted for 65%[39] - The distribution channels for sales comprised approximately 66% through Equitable Advisors and 34% through third-party firms in 2024[64] - The total first year premium from third-party distribution increased to $793 million in 2024, a significant rise from $390 million in 2023[65] Market Strategy - The company targets affluent and high net worth individuals, with a focus on retirement income and tax-deferred growth opportunities[37] - The company aims to expand its presence in the tax-exempt 403(b)/457(b) markets, which represent 53% of FYP in the Group Retirement segment for 2024[60] - The Institutional lifetime income market accounted for 15% of the Group Retirement business, highlighting a diverse revenue stream[49] Regulatory Environment - Equitable Financial is primarily regulated by the Superintendent of the NYDFS, with oversight in all 50 states and territories[154] - The RBC of each insurance subsidiary of Equitable Financial was in excess of the required RBC levels as of the most recent annual statutory financial statements[179] - New York's Regulation 213 significantly increases the statutory basis reserves for variable annuity obligations, potentially affecting the capacity to distribute dividends[176] - The NAIC's Liquidity Stress Test and Group Capital Calculation (GCC) framework were codified in New York in August 2023, with the first GCC filing required by June 30, 2024[171] Investment Management - Approximately $12.1 billion of private placements were transferred from Taxable Fixed Income into Alternatives/Multi-Asset during the three months ended September 30, 2024[92] - Actively managed fixed income services saw inflows of $24.6 billion in 2024, a significant increase from $12.3 billion in 2023[90] - Performance-based fees for investment advisory services increased to $271 million in 2024, compared to $145 million in 2023, representing an increase of 86.2%[93] Technology and Innovation - The company emphasizes continuous investment in technology and digital capabilities to enhance advisor productivity and client satisfaction[125] - Equitable Advisors has approximately 4,600 financial advisors, focusing on deep client relationships and integrated technology[125] Life Insurance Market - The life insurance industry remains competitive, with no single company dominating the market, emphasizing the importance of product features, pricing, and service[113] - The total in-force face amount for life insurance products decreased to $409.2 billion in 2024 from $412.3 billion in 2023, a decline of 0.8%[107] - Individual life insurance annualized premium increased to $241 million in 2024, up from $232 million in 2023, representing a growth of 3.9%[112] Employee Benefits - Employee benefits gross premiums rose to $439 million in 2024, compared to $372 million in 2023, reflecting a significant increase of 18%[118] - The annualized premium for employee benefits increased to $120 million in 2024, up from $104 million in 2023, a rise of 15.4%[118] - Group life insurance sales grew to $148 million in 2024, up from $127 million in 2023, marking a 16.5% increase[118] Reinsurance Transactions - Equitable Financial reinsured all variable annuity contracts issued outside New York prior to October 1, 2022, to its affiliate, Equitable America, effective April 1, 2023[145] - Equitable Financial ceded 90% of its fixed deferred annuity business sold prior to 2015 to a non-affiliated reinsurer on a coinsurance basis[145] - Equitable Financial completed a reinsurance transaction in May 2023, reinsuring virtually all net retained General Account liabilities to mitigate the impacts of Regulation 213[177] Compliance and Risk Management - The company is subject to extensive regulation by the SEC and FINRA, including capital requirements and sales practices scrutiny for its broker-dealer subsidiaries[190] - The Dodd-Frank Act and related regulations expose the company to operational, compliance, and execution risks, including central counterparty insolvency risk[207] - The NAIC's Risk Management and Own Risk and Solvency Assessment Model Act mandates insurers to maintain a risk management framework and conduct internal risk assessments[166]

Core Viewpoint - Equitable Holdings, Inc. (EQH) reported mixed fourth-quarter 2024 results, with a 3.4% increase in shares post-reporting, despite challenges in investment results. Revenue growth in key segments, particularly Asset Management and Wealth Management, helped mitigate the downside [1][2]. Financial Performance - Adjusted earnings per share (EPS) for Q4 2024 were $1.57, missing the Zacks Consensus Estimate by 2.5%, but representing an 18% year-over-year increase [2]. - Operating revenues rose 11.3% year over year to $4 billion, although this figure was 1% below consensus estimates [2]. - Policy charges and fee income increased by 6.5% year over year to $638 million, while premiums improved by 3.9% to $292 million. Net investment income decreased by 1.7% year over year to $1.2 billion [3]. Expense and Income Analysis - Total benefits and other deductions fell by 18.9% year over year to $2.4 billion, significantly influenced by a negative change in market risk benefits from the previous year [4]. - Other operating costs and expenses decreased by 8.2% year over year, leading to a pre-tax income of $1.2 billion, compared to a loss of $817 million in the prior-year quarter [4]. Asset Management and Growth - Total assets under management (AUM) reached $918.8 billion at the end of Q4, marking an 8.9% year-over-year increase. Total AUM/A grew by 10% year over year to $1 trillion [5]. Segment Performance - Individual Retirement segment revenues rose 24.9% year over year to $978 million, exceeding the consensus estimate [6]. - Group Retirement revenues climbed 22% year over year to $305 million, also beating consensus expectations [6]. - Asset Management revenues increased by 16.3% year over year to $1.25 billion, with pre-tax income soaring 44.4% [7]. - Wealth Management segment revenues advanced 17.9% year over year to $481 million, although pre-tax income dipped slightly [8]. Financial Position - As of December 31, 2024, total investments and cash equivalents stood at $123.4 billion, an 11.8% increase from the end of 2023. Total assets rose by 6.9% to $295.9 billion [9]. - Long-term debt was reported at $3.8 billion, showing a slight increase from the previous year [9]. - Total equity decreased by 21.5% from the end of 2023 to $3.4 billion [10]. Capital Return Strategy - Equitable Holdings returned $335 million to shareholders in Q4, comprising a $75 million cash dividend and $260 million in share repurchases, with a payout ratio target of 60-70% of non-GAAP operating earnings for 2023-2027 [11]. Full-Year Overview - For the full year 2024, adjusted EPS was $5.93, up 29.2% year over year, with total revenues of $12.4 billion, reflecting an 18.1% increase [12]. - Policy charges and fee income grew by 4.8% year over year to $2.5 billion, while premiums increased by 5.3% to $1.2 billion [12]. - Pre-tax income nearly tripled year over year to $2.1 billion [12]. Future Outlook - The company aims to generate cash in the range of $1.6-$1.7 billion for 2025 and maintains a target of $2 billion in annual cash generation from 2023 to 2027. Non-GAAP operating EPS is expected to grow at a CAGR of 12-15% during the same period [13].