Equitable (EQH) 2025 Conference Summary Company Overview - **Company**: Equitable Holdings, Inc. (EQH) - **Industry**: Financial Services, specifically focusing on retirement asset management and wealth management Key Financial Targets and Progress - Equitable established five-year financial targets through 2027, aiming for: - Cash flows of $2 billion by 2027, with a current guidance of $1.6 billion to $1.7 billion for 2023, representing a 10% growth from the prior year [4][5] - A payout ratio of 60% to 70%, currently at 68% [6] - Earnings per share (EPS) growth of 12% to 15%, with a current growth of approximately 11% since the Investor Day [7][8] Market Dynamics and Growth Strategy - The U.S. retirement market is experiencing significant growth, with 4 million Americans retiring annually and $600 billion in assets in motion [2] - Equitable's integrated model combining asset, wealth, and retirement services positions it well to capture market growth [3] - The company has achieved a 12% organic growth rate in its wealth management business over the past year, with assets under administration (AUA) growing from $40 billion in 2018 to $110 billion [17][18] RGA Life Transaction and Capital Deployment - The RGA Life transaction freed up $2 billion in capital, with plans for: - $800 million to increase ownership in AllianceBernstein - $500 million for share buybacks - $500 million for debt tendering [14][15] - The remaining $500 million will be allocated to growth investments or additional share repurchases, focusing on wealth management acquisitions [15] Individual Annuity Business and Competitive Landscape - The RILA (Registered Index Linked Annuity) market has grown 40% year-over-year, with Equitable maintaining a leading position [32] - The company has launched new products, including a fixed index annuity, to meet client needs for downside protection and upside potential [34][35] - Equitable's competitive advantage lies in its low cost of funds and strong distribution channels [37] Financial Disclosure Changes - Following the RGA transaction, Equitable plans to simplify financial disclosures, focusing on asset retirement and wealth management [26][27] - The company will combine group and individual retirement segments into one broad retirement segment to better reflect operational realities [28] Future Growth Opportunities - Equitable is optimistic about in-plan annuities, which address the decumulation needs in the retirement market, with significant market potential [55][56] - The company is also exploring growth in spread-based lending and private credit through its partnership with AllianceBernstein [62][64] AllianceBernstein (AB) Private Markets Business - AB's private markets business has grown to $77 billion, with a target of reaching $90 billion to $100 billion by 2027 [64] - Equitable has committed $20 billion to support AB's private credit business, with $15 billion already deployed [65] Conclusion - Equitable is well-positioned for growth in the retirement and wealth management sectors, with a clear strategy to achieve its financial targets through organic growth, strategic acquisitions, and capital deployment initiatives. The company is focused on maintaining its competitive edge while adapting to market dynamics and evolving client needs.