Equitable(US:EQH)2026-02-25 20:26Retirement 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].