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What were the key takeaways from Equitable Holdings's earnings call?

Did Equitable Holdings beat or miss consensus estimates last quarter?

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**Key Takeaways:**
- **Strong Organic Growth**: $1.1T AUM and 12% Wealth Management inflows highlight momentum across core businesses.
- **Strategic Capital Deployment**: $1.5B invested in buybacks, debt reduction, and growth (Stifel acquisition, private markets).
- **Private Markets Expansion**: Private AUM up 17% YoY to $80B, on track for $90-100B by 2027.
- **Risk Management**: 98% investment-grade portfolio and conservative underwriting limit credit exposure.
- **2027 Targets Intact**: 12-15% EPS CAGR, $2B cash flow, and 60-70% payout ratio remain achievable.

**【CEO Summary Section】**
- Equitable delivered solid Q3 results with non-GAAP operating EPS of $1.48, down 6% YoY but up 2% when adjusting for notable items. 
- Capital deployment of $1.5B included $676M share buybacks, $500M debt reduction, and strategic investments in Wealth Management (Stifel acquisition) and private markets.
- Wealth Management advisory net inflows of $2.2B (12% annualized growth) and AUM of $1.1T highlight organic momentum across Retirement, Asset Management, and Wealth Management.
- Private markets AUM grew 17% YoY to $80B, on track to meet $90-100B target by 2027.
- 2027 financial targets remain intact: 12-15% EPS CAGR, $2B annual cash flow, and 60-70% payout ratio.

**【CFO Financial Commentary】**
- GAAP net loss of $1.3B due to one-time reinsurance transaction impacts, but adjusted non-GAAP EPS of $1.67 reflects strong underlying performance.
- Retirement segment earnings declined 6% YoY but rebounded 9% sequentially, driven by fee-based revenue growth and NIM improvement.
- Asset Management earnings up 39% YoY, with AUM at record $860B and performance fees guidance raised to $130-155M.
- Wealth Management earnings grew 12% YoY, with 8% adviser productivity improvement and $6.2B year-to-date net inflows.
- Capital return program remains disciplined, with full-year payout ratio expected at upper end of 60-70% range.

**【Q&A Key Highlights】**
- **Private Credit Risk Management**: 98% of fixed income portfolio is investment-grade, with underwriting focus on liquidity premium and risk-adjusted returns.
- **RILA Market Leadership**: 7% QoQ sales growth driven by flywheel model, with 15,000+ advisors and #1 market share. New product launches (e.g., SCS Premier) target underserved segments.
- **Mortality Experience**: Q3 mortality was $36M worse than expected but reinsurance transaction reduces future volatility. Retained mortality impact was minimal ($10M).
- **Capital Deployment**: $300M remaining from RGA transaction will be used for buybacks and strategic investments, maintaining 60-70% payout ratio discipline.
- **Bermuda Entity Strategy**: In-force reinsurance transactions will support capital management, with focus on flow reinsurance in 2026 and third-party opportunities beyond.


Equitable Holdings, Inc. (EQH) Q3 2025 Earnings Call Transcript

- **$2B Capital Unlock**: Reinsurance transaction reduces mortality risk and enables higher-return investments.
- **Strong Organic Growth**: Wealth Management (12% organic growth), Retirement ($1.9B net inflows), and Asset Management (20% AUM growth in private markets).
- **EPS Acceleration**: H2 2025 EPS growth expected to rebound with market recovery and $500M+ buybacks.
- **Flywheel Synergies**: AB private markets AUM up 20% YoY, leveraging Equitable's insurance runoff.
- **Disciplined Capital Management**: 74% payout ratio, $500M+ buybacks, and debt reduction to maintain 23% debt-to-capital ratio.

**【CEO Summary Section】**
- **Landmark Reinsurance Transaction**: Closed a $2 billion Individual Life reinsurance deal with RGA, reducing mortality claims exposure by 75% and freeing capital for higher-return businesses.
- **Organic Growth Momentum**: 
  - Retirement: $1.9 billion net inflows, driven by RILA sales up 9% YoY to $1.7 billion.
  - Wealth Management: $2 billion advisory net inflows, 12% trailing 12-month organic growth, and 8% YoY productivity increase.
  - Asset Management: $77 billion AUM in private markets (20% YoY growth), with $22 billion institutional pipeline.
- **Flywheel Synergies**: Ruby Re Sidecar investment yielded $1 billion private credit mandate, expanding AB's insurance business with 4 new general account relationships.
- **2027 Targets**: On track for $1.6-$1.7 billion 2025 cash generation, targeting $2 billion by 2027. Non-GAAP EPS growth expected to accelerate post-H1 market recovery.

**【CFO Financial Commentary】**
- **Q2 Results**: 
  - Non-GAAP operating EPS: $1.10 (down 23% YoY), $1.41 excluding notable items (down 8% YoY).
  - Drivers: Elevated mortality claims ($35M after-tax) and lower equity markets.
- **Capital Management**: 
  - Returned $318M to shareholders (74% payout ratio).
  - Plan to execute $500M incremental share buybacks and repay debt post-reinsurance transaction.
  - Adjusted book value per share: $40.89 (11% YoY growth).
- **Segment Performance**: 
  - Individual Retirement: $220-$225M Q3 baseline, stable NIM as legacy RILA runoff stabilizes.
  - Asset Management: 33% margin target, $110-$130M performance fees vs. prior $90-$105M.
  - Wealth Management: 16% YoY earnings growth, benefiting from equity market recovery.

**【Q&A Highlights】**
- **RILA Dynamics**: 15% of in-force RILA pre-2020 (high-margin legacy), with runoff stabilizing. Wealth Management sales yield higher persistency and margins.
- **Capital Deployment**: $500M+ buybacks, debt reduction, and opportunistic growth investments. Pro forma RBC >500% post-dividends.
- **AI Strategy**: Using GenAI to enhance operational efficiency and client advice, with focus on value-added services rather than replacing human advisors.
- **Market Sensitivity**: NIM driven by 10-year treasury, corporate spreads, and volatility; stable at 15% IRR for new business.
- **FABN Program**: $3.4B year-to-date issuance, $9B outstanding, achieving 15%+ IRR through AB's private credit origination.

Equitable Holdings, Inc. (EQH) Q2 2025 Earnings Call Transcript

- **Q1 Results**: Non-GAAP EPS $1.35 (down 3% YoY), driven by $17M mortality claims drag. 
- **Strategic Moves**: $2B+ capital from RGA reinsurance; $760M AB stake purchase (69% ownership). 
- **Business Momentum**: 
  - Retirement: $1.6B net inflows (8% TTM growth)
  - Wealth: $2B advisory inflows (8% productivity growth)
  - AB: 19% YoY earnings growth
- **Resilience**: 425% RBC ratio, $1.1B liquidity, 50% cash flow from non-insurance businesses. 
- **Shareholder Return**: 80% payout ratio ($335M Q1 buybacks), $500M+ buybacks post-RGA close.

**【CEO Opening Remarks】**
- Q1 2025 Non-GAAP operating EPS: $1.30 (down 7% YoY), adjusted for notable items: $1.35 (down 3% YoY). 
- Protection Solutions segment loss of $17M due to elevated mortality claims; 75% of individual life block to be reinsured with RGA mid-2025, freeing $2B+ capital.
- Retirement & Wealth Management momentum: 
  - $1.6B net inflows in Retirement (8% TTM organic growth)
  - $2B advisory net inflows in Wealth Management (8% advisor productivity growth)
  - AB operating earnings up 19% YoY to $421M
- Capital return: $335M Q1 (80% payout ratio), $760M AB stake purchase (ownership to 69%).
- Strong balance sheet: 425% NAIC RBC ratio, $1.1B holding company liquidity.

**【CFO Financial Details】**
- GAAP net income: $63M; Non-GAAP EPS: $1.35 (excluding $0.13 in alternative investment drag). 
- Key metrics: 
  - AUM&A: $1T (down 3% QoQ)
  - Book value per share ex AOCI: $27.62
  - Adjusted AB margin: 33.7% (up 340bps YoY)
- Risks: 
  - Equity market sensitivity: $150M annual impact per 10% change
  - Interest rate sensitivity: $40-45M annual impact per 50bps change
- Credit stress test: 50pt RBC reduction in severe scenario (from 425% to 375%).

**【Q&A Highlights】**
- **Capital Deployment**: 
  - $2B+ capital from RGA transaction; $500M+ EQH buybacks post-close
  - $760M AB stake purchase (69% ownership) vs. $1B+ extraordinary dividend
- **Market Volatility Impact**: 
  - RILA sales robust in April despite equity decline
  - AB net inflows resilient ($2.7B Q1), but April tax season headwinds
- **Competitive Dynamics**: 
  - RILA market leader with 3x+ sales growth since 2022
  - Institutional pipeline expansion ($400M+ Q1 inflows)
- **Lifepath Outlook**: 
  - $250M expected Q2 inflows, lumpy but growing
  - $600B annual 401(k) outflows creating long-term opportunity

Equitable (EQH)-30 Apr 25-2025 Q1 Earnings call transcript

- **Record Financial Performance**: 2024 non-GAAP EPS of $5.93 (+29% YoY), with $1.5 billion cash flow to holding company.
- **Sustainable Growth Drivers**: $7.1 billion retirement inflows, 10% wealth management planner growth, and AB private markets expansion to $70 billion.
- **Strategic Initiatives**: $100 million expense savings, $100 million RGA sidecar investment, and Bermuda reinsurance optimization.
- **Risk Management**: 66% payout ratio, 15% IRR discipline in RILA, and 33%+ AB margin guidance for 2025.
- **Emerging Opportunities**: $600 million implant guarantee inflows, JPMorgan partnership, and China market expansion.

**【CEO Summary Section】**
- Full year non-GAAP operating EPS of $5.93, up 29% YoY, with adjusted EPS of $6.18, exceeding 12-15% annualized growth guidance.
- Generated $1.5 billion cash flow to holding company, forecasting $1.6-1.7 billion for 2025, on track for $2 billion by 2027.
- Achieved $100 million run-rate expense savings, targeting $150 million by 2027.
- Retirement and wealth management net inflows of $7.1 billion and $4 billion, respectively, with stable fee rates.
- Leadership in implant guarantee market with $600 million net inflows and partnerships with BlackRock and JPMorgan.

**【CFO Financial Commentary】**
- Q4 non-GAAP EPS of $1.65, up 23% YoY, driven by organic growth and share buybacks.
- AB reported strong Q4 earnings with $66 million in permit fees and 33%+ adjusted operating margin guidance for 2025.
- Protection Solutions earnings of $239 million ex notable items, forecasting lower end of $200-300 million range for 2025.
- Corporate segment expected to generate $400 million loss, with alternatives targeting 8-12% returns.
- Tax rate guidance of 20% for 2025, with 17% for insurance businesses and 30% for Reliance Bernstein.

**【Business Segment Updates】**
- **Retirement & Wealth Management**: 
  - Individual retirement sales up 15% with 13% higher policy sizes, driven by $600 billion annual 401(k) outflows.
  - Wealth management AUA at record levels, with 10% growth in planner count.
  - Group retirement expansion into small 401(k) market with 9% annual growth potential.
- **Asset Management**: 
  - AB private markets AUM up 14% to $70 billion, targeting $90-100 billion by 2027.
  - $100 million investment in RGA sidecar for 20%+ returns.
  - New private ABS strategies and $200 million in Turbo Fund AUM.

**【Key Risks & Initiatives】**
- Protection Solutions volatility with $200 million Q1 institutional inflows, but targeting $200-250 million 2025 earnings.
- Bermuda reinsurance entity to optimize cash flow and reduce mortality risk.
- Disciplined capital allocation with 66% payout ratio and $1.3 billion return in 2024.
- RILA market growth with 10% annual projection, maintaining 15% IRR discipline.


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