Equitable's Q1 2025: Key Contradictions in Dividends, Annuity Demand, and Life Insurance Earnings

Extraordinary dividend and capital deployment, dividend and capital structure optimization, annuity sales demand and market sentiment, life insurance and earnings impact are the key contradictions discussed in Equitable's latest 2025Q1 earnings call.



Equitable's Financial Performance:
- Equitable Holdings reported non-GAAP operating earnings of $421 million or $1.30 per share for Q1 2025, down 7% year-over-year on a per share basis.
- The company's Protection Solutions segment reported a loss of $17 million due to elevated life insurance claims.
- The results reflect a high level of large individual life mortality claims and the decision to reinsure 75% of their individual life block to RGA, which is expected to close mid-year.

Retirement and Wealth Management Growth:
- Equitable's Retirement businesses produced $1.6 billion of net inflows in the first quarter, driven by momentum in the WILA franchise and institutional offering expansion.
- Wealth Management saw $2 billion of advisory net inflows, with advisor productivity up 8% and a 12% organic growth rate on a trailing 12-month basis.
- This growth was attributed to strong demand for retirement and investment solutions, particularly in buffered annuities, which protect capital on the downside while allowing participation in market recovery.

AB's Positive Net Flows and Strategic Investments:
- AllianceBernstein (AB) delivered positive net flows across each of its distribution channels, with total active net inflows of $2.7 billion.
- AB's private markets business saw AUM increase by 20% year-over-year to $75 billion.
- The company increased its ownership in AB to 69%, emphasizing the strategic value and synergies between Equitable and AB.

Capital Management and Shareholder Returns:
- Equitable returned $335 million to shareholders in Q1, representing an 80% pay-out ratio.
- The company plans to execute $500 million in additional share repurchases post the RGA reinsurance transaction closure.
- With a strong balance sheet and predictable cash flows, Equitable is confident in its ability to manage macro volatility and create shareholder value.