Equitable's Q4 2024: Contradictions in Bermuda Strategy, Annuity Sales, and Reinsurance Plans

These are the key contradictions discussed in Equitable's latest 2024Q4 earnings call, specifically including: Bermuda entity strategy, annuity sales growth outlook, capital deployment strategy, and reinsurance consideration:



Financial Performance and Growth:
- Equitable Holdings reported non-GAAP operating earnings of $522 million for Q4, up 18% year-over-year, and $1.57 per share, adjusted for notable items to $1.65 per share, up 23% year-over-year.
- The growth was driven by organic growth across business segments, favorable markets, and share repurchases.

Retirement and Wealth Management Sales and Flows:
- Full year net inflows were $7.1 billion in retirement and $4 billion in wealth management.
- This growth was supported by strong demand for retirement solutions, particularly in-plan guarantees, and new partnership agreements, such as with BlackRock and JPMorgan.

Strategic Initiatives and Cash Generation:
- Equitable generated $1.5 billion of cash flow to the holding company, with over 50% coming from asset and wealth management businesses.
- The company achieved its cash generation target due to strategic initiatives that improved operational efficiency and increased net investment income.

Bermuda Reinsurance Entity:
- Equitable established a Bermuda reinsurance subsidiary to provide reinsurance options for in-force business and new business.
- This entity is part of a strategy to enhance cash flow consistency and optionality for future growth and capital management.