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.

Financial Data and Key Metrics Changes - Adjusted operating earnings for the second quarter were $350 million, supported by strong performance from spread products and higher yields in the bond portfolio [17][19] - Adjusted operating earnings per share was $4.87, with an adjusted figure of $5.12 after accounting for notable items, reflecting a 5% increase from the previous year [20] - Total adjusted capital exceeded $5.3 billion, a 5% increase since year-end 2024, with risk-based capital estimated at 566% [13][34] Business Line Data and Key Metrics Changes - Retail annuity sales reached $4.4 billion, a 9% increase from the first quarter and a 4% increase year-over-year, driven by RILA and fixed annuity sales [7][19] - RILA account balances increased by nearly 80% year-over-year, with sales approaching $1.4 billion, up 16% from the previous quarter [6][20] - Variable annuity net outflows improved, totaling $2.2 billion, down 27% year-over-year and 39% from the first quarter [11][19] Market Data and Key Metrics Changes - Average retail annuity AUM grew to $249 billion, up from year-end 2024, supported by strong separate account returns [22] - The company experienced a 9.4% return on separate account assets, contributing approximately $19 billion to AUM [45] Company Strategy and Development Direction - The company remains committed to a balanced capital management strategy, focusing on disciplined investments, maintaining a strong balance sheet, and consistent capital returns to shareholders [15][32] - Jackson is exploring opportunities for risk transfer and potential M&A to create new streams of capital generation [55][74] - The company aims to enhance its product offerings and distribution capabilities to meet diverse market needs [62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong capital generation and ability to support future growth initiatives while returning capital to shareholders [14][29] - The need for financial security in retirement is emphasized, with a focus on providing flexible protection and income-oriented solutions [15][37] Other Important Information - The company launched a new digital experience for financial professionals to enhance service and support [11][12] - Jackson was recognized in Barron's annual 100 Best Annuities Guide, highlighting its commitment to product innovation [12] Q&A Session Summary Question: Excess capital position and potential uses of capital - Management reiterated the philosophy of generating excess capital first, then returning it to shareholders while maintaining a strong balance sheet [41][43] Question: AUM levels and equity market impact on earnings - Strong equity market performance contributed to AUM growth, with expectations of solid margins despite some variable expense components [45][46] Question: Strategic considerations for business remixing and risk transfer - Management is open to strategic partnerships and risk transfer opportunities that enhance shareholder value while maintaining a diversified product mix [50][55] Question: RILA product features and competition - RILA sales momentum is strong, with competitive offerings including income options, positioning the company well in the market [61][62] Question: Managing RILA and legacy VA risk - The company manages RILA and legacy VA business separately, leveraging natural offsets in equity risk for efficiency [72] Question: Potential for inorganic growth using Brook Re - Management sees opportunities to leverage Brook Re for M&A transactions, enhancing capital generation and free cash flow [74][83]