Equitable Holdings' Q3 2024: Strong Growth, Record AUM/A, and Capital Return

Equitable Holdings, Inc. (EQH) reported its third-quarter 2024 earnings, highlighting sustained organic growth momentum across the company. The quarter was marked by record assets under management and administration (AUM/A) of $1.0 trillion, up 20% year-over-year, driven by strong new business activity and favorable market conditions. The company also returned $330 million to shareholders, aligning with its 60-70% payout ratio target.

Equitable Holdings' strong performance was evident in its net inflows: $1.7 billion in Retirement, $1.9 billion in Wealth Management, and $1.1 billion in Asset Management. AllianceBernstein, the company's asset management subsidiary, reported its third consecutive quarter of net inflows, including $2.2 billion of active net inflows, primarily driven by the retail channel. This significant contribution to the overall net inflows underscores the company's ability to capitalize on market trends and industry-specific factors.

The company's strategic positioning and product offerings have significantly contributed to its strong new business activity. The Retirement business has grown by finding solutions to serve more Americans' retirement needs, while the Wealth Management segment delivered record advisory net inflows, supported by advisor headcount growth and increased productivity. This combination of strong new business activity and favorable market conditions has driven AUM/A growth, supporting future growth in both fee- and spread-based earnings.

Equitable Holdings' hedging strategies and risk management practices have been instrumental in maintaining and growing its AUM/A despite market volatility. The company's use of derivatives to protect economic value and statutory capital has been a significant factor in mitigating risks. Additionally, the company's capital management program, which includes returning capital to shareholders through dividends and share repurchases, has contributed to its financial stability and ability to weather market fluctuations.

In conclusion, Equitable Holdings' Q3 2024 earnings call demonstrated the company's strong organic growth momentum, driven by favorable market conditions and strategic initiatives. With record AUM/A and a commitment to returning capital to shareholders, Equitable Holdings presents an attractive investment opportunity for those seeking exposure to the financial services sector.