![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Equitable Holdings Inc | NYSE:EQH | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.31 | -0.74% | 41.73 | 42.14 | 41.70 | 41.75 | 1,100,073 | 01:00:00 |
Equitable Holdings, Inc. (“Equitable Holdings”, “Holdings”, or the “Company”) (NYSE: EQH) today announced financial results for the full year and fourth quarter ended December 31, 2022.
“We delivered strong results despite turbulent markets this year. Full year Non-GAAP operating earnings were $5.08 per share, or $5.55 per share after adjusting for notable items, down 8% in the year. These results reflect equity markets down 20% and bond values down 13% partially offset by capital return. Managing what is within our control is important particularly in these markets; we have achieved our $180 million incremental general account investment income target one year ahead of schedule and realized net expense savings of $50 million,” said Mark Pearson, President and Chief Executive Officer.
Mr. Pearson continued, “In these more volatile times, we have seen heightened client demand for retirement and asset management solutions. Retirement sales were up 6% year-over-year and we continue to see organic growth in asset management with a shift into private markets and multi-asset solutions resulting in a 3% fee rate improvement year-over-year. We also continue to benefit from rising interest rates, with new investments generating an incremental 190 basis points above our current general account yield, supporting record levels of new business value.”
Mr. Pearson concluded, "While full year mortality experience remained more favorable than expectations, we experienced heightened mortality in the fourth quarter given COVID persistency and seasonal flu impacts. The benefits of our economic management and hedging program continue to support a combined RBC ratio above our target range and consistent capital returns of $1.3 billion in the year, delivering 15% growth in free cash flow6 per share. Looking ahead, we remain confident about the resilience of our business model and are committed to our capital management program with $2.0 billion of cash and liquid assets at Holdings and an estimated $1.3 billion of cash generation1 supporting financial flexibility and consistent capital return in 2023."
Consolidated Results
Fourth Quarter
Full Year
(in millions, except per share amounts or unless otherwise noted)
2022
2021
2022
2021
Total Assets Under Management (“AUM”, in billions)
$
754
$
908
$
754
$
908
Net income (loss) attributable to Holdings
(789
)
254
1,785
(439
)
Net income (loss) attributable to Holdings per common share
(2.21
)
0.56
4.49
(1.24
)
Non-GAAP operating earnings (loss)
436
649
2,009
2,825
Non-GAAP operating earnings (loss) per common share (“EPS”)
1.11
1.54
5.08
6.58
As of December 31, 2022, total AUM was $754 billion, a year-over-year decrease of 17.0%, driven by lower markets over the prior twelve months.
On a full year basis Net income (loss) attributable to Holdings improved from $(0.4) billion in 2021 to $1.8 billion in 2022 primarily driven by non-economic market impacts from hedging and non-performance risk under U.S. GAAP accounting.
Full year Non-GAAP operating earnings decreased to $2.0 billion from $2.8 billion in 2021. Adjusting for notable items7 of $178 million, 2022 Non-GAAP operating earnings were $2.2 billion or $5.55 per share.
The Net income (loss) attributable to Holdings for the fourth quarter of 2022 was $(789) million compared to $254 million in the fourth quarter of 2021 driven primarily by non-economic market impacts from hedging under U.S. GAAP accounting.
Non-GAAP operating earnings in the fourth quarter of 2022 was $436 million compared to $649 million in the fourth quarter of 2021. Adjusting for notable items7 of $93 million, fourth quarter 2022 Non-GAAP operating earnings were $529 million or $1.36 per share.
As of December 31, 2022, book value per common share, including accumulated other comprehensive income (“AOCI”), was $0.26. Book value per common share, excluding AOCI, was $24.46.
Business Highlights
Business Segment Results
Individual Retirement
(in millions, unless otherwise noted)
Q4 2022
Q4 2021
Account value (in billions)
$
95.8
$
111.9
Segment net flows
Current Product Offering
838
574
Legacy
(589
)
(787
)
Total segment net flows
249
(213
)
Operating earnings (loss)
303
351
Group Retirement
(in millions, unless otherwise noted)
Q4 2022
Q4 2021
Account value (in billions) (1)
$
32.0
$
47.8
Segment net flows (2)
24
(109
)
Operating earnings (loss)
110
117
(1) Effective October 3, 2022, AV excludes activity related to ceded AV to Global Atlantic. In addition, roll-forward reflects the AV ceded to Global Atlantic as of the transaction date. (2) For the three months ended December 31, 2022, net out flows of $179 million are excluded as these amounts are related to ceded AV to Global Atlantic.
AllianceBernstein
(in millions, unless otherwise noted)
Q4 2022
Q4 2021
Total AUM (in billions)
$
646.4
$
778.6
Segment net flows (in billions)
(1.9
)
7.4
Operating earnings (loss)
94
183
Protection Solutions
(in millions)
Q4 2022
Q4 2021
Gross written premiums
$
776
$
801
Annualized premiums
74
84
Operating earnings (loss)
(29
)
53
Corporate and Other (“C&O”)
Operating loss of $42 million in the fourth quarter improved compared to operating loss of $55 million in the prior year quarter, primarily driven by favorable assumed policyholder benefits in the period. Operating loss after adjusting for notable items17 decreased from $65 million in the prior year quarter to $57 million.
Exhibit 1: Notable Items
Notable items represent the impact on results from our annual actuarial assumption review, approximate impacts attributable to significant variances from the Company’s expectations, and other items that the Company believes may not be indicative of future performance. The Company chooses to highlight the impact of these items and Non-GAAP measures, less notable items to provide a better understanding of our results of operations in a given period. Certain figures may not sum due to rounding.
Impact of notable items by segment and Corporate & Other:
Three Months Ended December 31,
Year Ended December 31,
(in millions)
2022
2021
2022
2021
Non-GAAP Operating Earnings
436
$
649
$
2,009
$
2,825
Post-tax Adjustments related to notable items:
Individual Retirement
5
(23
)
56
(83
)
Group Retirement
5
36
21
(9
)
Investment Management and Research
—
—
—
—
Protection Solutions
98
39
134
(24
)
Corporate & Other
(15
)
(10
)
(11
)
(92
)
Notable items subtotal
93
42
201
(208
)
Less: impact of actuarial assumption update
—
—
(23
)
(6
)
Non-GAAP Operating Earnings, less Notable Items
$
529
$
691
$
2,187
$
2,611
Impact of notable items by item category:
Three Months Ended December 31,
Year Ended December 31,
(in millions)
2022
2021
2022
2021
Non-GAAP Operating Earnings
436
$
649
$
2,009
$
2,825
Pre-tax adjustments related to Notable Items:
Actuarial Updates/Reserve
—
(18
)
24
(107
)
Mortality
84
77
109
205
Expenses
—
50
42
50
Net Investment Income
27
(62
)
31
(410
)
Subtotal
111
47
206
(262
)
Post-tax impact of Notable Items
93
42
201
(208
)
Less: impact of actuarial assumption update
—
—
(23
)
(6
)
Non-GAAP Operating Earnings, less Notable Items
$
529
$
691
$
2,187
$
2,611
Impact of Notable Items by segment and corporate & other:
Three months ended 12/31/2022 ($m)
IR
GR
AB
PS
C&O
Consolidated
Non-GAAP Operating Earnings
303
110
94
(29
)
(42
)
436
Pre-tax adjustments related to Notable Items:
Actuarial Updates/Reserve
—
—
—
—
—
—
Mortality
—
—
—
111
(27
)
84
Expenses
—
—
—
—
—
—
Net Investment Income
6
6
—
9
5
27
Pre-tax Subtotal
6
6
—
120
(22
)
111
Tax adjustment
(1
)
(1
)
—
(23
)
7
(18
)
Post-tax impact of Notable Items
5
5
—
98
(15
)
93
Impact of Actuarial Assumption Update
—
—
—
—
—
—
Non-GAAP Operating Earnings, less Notable Items
308
115
94
69
(57
)
529
Three months ended 12/31/2021 ($m)
IR
GR
AB
PS
C&O
Consolidated
Non-GAAP Operating Earnings
351
117
183
53
(55
)
649
Pre-tax adjustments related to Notable Items:
Actuarial Updates/Reserve
—
—
—
(18
)
—
(18
)
Mortality
—
—
—
77
—
77
Expenses
—
50
—
—
—
50
Net Investment Income
(32
)
(8
)
—
(13
)
(10
)
(62
)
Pre-tax Subtotal
(32
)
42
—
46
(10
)
46
Tax adjustment
9
(6
)
—
(7
)
—
(5
)
Post-tax impact of Notable Items
(23
)
36
—
39
(10
)
42
Impact of Actuarial Assumption Update
—
—
—
—
—
—
Non-GAAP Operating Earnings, less Notable Items
328
153
183
92
(65
)
691
Twelve months ended 12/31/2022 ($m)
IR
GR
AB
PS
C&O
Consolidated
Non-GAAP Operating Earnings
1,140
525
424
179
(259
)
2,009
Pre-tax adjustments related to Notable Items:
Actuarial Updates/Reserve
15
3
—
7
—
24
Mortality
—
—
—
136
(27
)
109
Expenses
6
11
—
8
17
42
Net Investment Income
19
4
—
6
3
31
Pre-tax Subtotal
39
17
—
157
(7
)
206
Tax adjustment
17
4
—
(23
)
(4
)
(6
)
Post-tax impact of Notable Items
56
21
—
134
(11
)
201
Impact of Actuarial Assumption Update
10
(27
)
—
(6
)
—
(23
)
Non-GAAP Operating Earnings, less Notable Items
1,206
520
424
307
(270
)
2,187
Twelve months ended 12/31/2021 ($m)
IR
GR
AB
PS
C&O
Consolidated
Non-GAAP Operating Earnings
1,444
631
564
317
(131
)
2,825
Pre-tax adjustments related to Notable Items:
Actuarial Updates/Reserve
—
—
—
(107
)
—
(107
)
Mortality
21
—
—
162
22
205
Expenses
—
50
—
—
—
50
Net Investment Income
(128
)
(64
)
—
(86
)
(132
)
(410
)
Pre-tax Subtotal
(107
)
(14
)
—
(30
)
(110
)
(262
)
Tax adjustment
24
5
—
6
18
54
Post-tax impact of Notable Items
(83
)
(9
)
—
(24
)
(92
)
(208
)
Impact of Actuarial Assumption Update
37
(27
)
—
(16
)
—
(6
)
Non-GAAP Operating Earnings, less Notable Items
1,398
595
564
277
(223
)
2,611
Earnings Conference Call
Equitable Holdings will host a conference call at 8 a.m. ET February 9, 2023 to discuss its full year and fourth quarter 2022 results. The conference call webcast, along with additional earnings materials will be accessible on the company’s investor relations website at ir.equitableholdings.com. Please log on to the webcast at least 15 minutes prior to the call to download and install any necessary software.
To register for the conference call, please use the following link: EQH Full Year and Fourth Quarter 2022 Earnings Call
After registering, you will receive an email confirmation including dial in details and a unique conference call code for entry. Registration is open through the live call. To ensure you are connected for the full call we suggest registering a day in advance or at minimum 10 minutes before the start of the call.
A webcast replay will be made available on the Equitable Holdings Investor Relations website at ir.equitableholdings.com.
About Equitable Holdings
Equitable Holdings, Inc. (NYSE: EQH) is a financial services holding company comprised of two complementary and well-established principal franchises, Equitable and AllianceBernstein. Founded in 1859, Equitable provides advice, protection and retirement strategies to individuals, families and small businesses. AllianceBernstein is a global investment management firm that offers high-quality research and diversified investment services to institutional investors, individuals and private wealth clients in major world markets. Equitable Holdings has approximately 12,400 employees and financial professionals, $754 billion in assets under management (as of 12/31/2022) and more than 5 million client relationships globally.
Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “intends,” “seeks,” “aims,” “plans,” “assumes,” “estimates,” “projects,” “should,” “would,” “could,” “may,” “will,” “shall” or variations of such words are generally part of forward-looking statements. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Equitable Holdings, Inc. (“Holdings”) and its consolidated subsidiaries. “We,” “us” and “our” refer to Holdings and its consolidated subsidiaries, unless the context refers only to Holdings as a corporate entity. There can be no assurance that future developments affecting Holdings will be those anticipated by management. Forward-looking statements include, without limitation, all matters that are not historical facts.
These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there are certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements, including, among others: (i) conditions in the financial markets and economy, including the impact of plateauing or decreasing economic growth and geopolitical conflicts and related economic conditions, equity market declines and volatility, interest rate fluctuations, impacts on our goodwill and changes in liquidity and access to and cost of capital; (ii) operational factors, including reliance on the payment of dividends to Holdings by its subsidiaries, protection of confidential customer information or proprietary business information, operational failures by us or our service providers, potential strategic transactions, changes in accounting standards, and catastrophic events, such as the outbreak of pandemic diseases including COVID-19; (iii) credit, counterparties and investments, including counterparty default on derivative contracts, failure of financial institutions, defaults by third parties and affiliates and economic downturns, defaults and other events adversely affecting our investments; (iv) our reinsurance and hedging programs; (v) our products, structure and product distribution, including variable annuity guaranteed benefits features within certain of our products, variations in statutory capital requirements, financial strength and claims-paying ratings, state insurance laws limiting the ability of our insurance subsidiaries to pay dividends and key product distribution relationships; (vi) estimates, assumptions and valuations, including risk management policies and procedures, potential inadequacy of reserves and experience differing from pricing expectations, amortization of deferred acquisition costs and financial models; (vii) our Investment Management and Research segment, including fluctuations in assets under management and the industry-wide shift from actively-managed investment services to passive services; (viii) legal and regulatory risks, including federal and state legislation affecting financial institutions, insurance regulation and tax reform; (ix) risks related to our common stock and (x) general risks, including strong industry competition, information systems failing or being compromised and protecting our intellectual property.
Forward-looking statements should be read in conjunction with the other cautionary statements, risks, uncertainties and other factors identified in Holdings’ filings with the Securities and Exchange Commission. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law.
Use of Non-GAAP Financial Measures
In addition to our results presented in accordance with U.S. GAAP, we report Non-GAAP Operating Earnings, Non-GAAP Operating EPS, and Book Value per common share, excluding AOCI, each of which is a measure that is not determined in accordance with U.S. GAAP. Management principally uses these non-GAAP financial measures in evaluating performance because they present a clearer picture of our operating performance and they allow management to allocate resources. Similarly, management believes that the use of these Non-GAAP financial measures, together with relevant U.S. GAAP measures, provide investors with a better understanding of our results of operations and the underlying profitability drivers and trends of our business. These non-GAAP financial measures are intended to remove from our results of operations the impact of market changes (where there is mismatch in the valuation of assets and liabilities) as well as certain other expenses which are not part of our underlying profitability drivers or likely to re-occur in the foreseeable future, as such items fluctuate from period-to-period in a manner inconsistent with these drivers. These measures should be considered supplementary to our results that are presented in accordance with U.S. GAAP and should not be viewed as a substitute for the U.S. GAAP measures. Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Consequently, our non-GAAP financial measures may not be comparable to similar measures used by other companies.
We also discuss certain operating measures, including AUM, AV, and certain other operating measures, which management believes provide useful information about our businesses and the operational factors underlying our financial performance.
Non-GAAP Operating Earnings
Non-GAAP Operating Earnings is an after-tax non-GAAP financial measure used to evaluate our financial performance on a consolidated basis that is determined by making certain adjustments to our consolidated after-tax net income attributable to Holdings. The most significant of such adjustments relates to our derivative positions, which protect economic value and statutory capital, and are more sensitive to changes in market conditions than the variable annuity product liabilities as valued under U.S. GAAP. This is a large source of volatility in net income.
Non-GAAP Operating Earnings equals our consolidated after-tax net income attributable to Holdings adjusted to eliminate the impact of the following items:
Because Non-GAAP Operating Earnings excludes the foregoing items that can be distortive or unpredictable, management believes that this measure enhances the understanding of the Company’s underlying drivers of profitability and trends in our business, thereby allowing management to make decisions that will positively impact our business.
We use the prevailing corporate federal income tax rate of 21% while taking into account any non-recurring differences for events recognized differently in our financial statements and federal income tax returns as well as partnership income taxed at lower rates when reconciling Net income (loss) attributable to Holdings to Non-GAAP Operating Earnings.
The table below presents a reconciliation of Net income (loss) attributable to Holdings to Non-GAAP Operating Earnings for the three months and years ended December 31, 2022 and 2021:
Three Months Ended December 31,
Year Ended December 31,
(in millions)
2022
2021
2022
2021
Net income (loss) attributable to Holdings
$
(789
)
$
254
$
1,785
$
(439
)
Adjustments related to:
Variable annuity product features
1,324
513
(1,315
)
4,145
Investment (gains) losses
55
(100
)
945
(867
)
Net actuarial (gains) losses related to pension and other postretirement benefit obligations
25
33
82
120
Other adjustments (1) (2) (3)
144
45
552
717
Income tax expense (benefit) related to above adjustments
(326
)
(103
)
(56
)
(864
)
Non-recurring tax items
3
7
16
13
Non-GAAP Operating Earnings
$
436
$
649
$
2,009
$
2,825
_______________
(1)
Includes separation costs of $20 million and $82 million for the three months and year ended December 31, 2021, respectively. Separation costs were completed during 2021.(2)
Includes certain gross legal expenses related to the cost of insurance litigation, and claims related to a commercial relationship of $50 million, $27 million, $218 million and $207 million for the three months and year ended December 31, 2022 and 2021, respectively. Includes policyholder benefit costs of $0 million and $75 million for the three months and year ended December 31, 2022 stemming from a deal to repurchase UL policies from one entity that had invested in numerous policies purchased in the life settlement market.(3)
Includes Non-GMxB related derivative hedge losses of $34 million, ($75) million, ($34) million and $65 million for the three months and year ended December 31, 2022 and 2021, respectively.Non-GAAP Operating EPS
Non-GAAP Operating Earnings per common share is calculated by dividing Non-GAAP Operating Earnings less preferred stock dividends by diluted common shares outstanding. The table below presents a reconciliation of GAAP EPS to Non-GAAP Operating EPS for the three months and years ended December 31, 2022 and 2021.
Three Months Ended December 31,
Year Ended December 31,
(per share amounts)
2022
2021
2022
2021
Net income (loss) attributable to Holdings (1)
$
(2.14
)
$
0.63
$
4.70
$
(1.05
)
Less: Preferred stock dividend
0.07
0.07
0.21
0.20
Net Income (loss) available to common shareholders
(2.21
)
0.56
4.49
(1.24
)
Adjustments related to:
Variable annuity product features
3.59
1.27
(3.46
)
9.93
Investment (gains) losses
0.14
(0.25
)
2.49
(2.08
)
Net actuarial (gains) losses related to pension and other postretirement benefit obligations
0.07
0.08
0.22
0.29
Other adjustments (2) (3) (4)
0.39
0.11
1.45
1.72
Income tax expense (benefit) related to above adjustments
(0.88
)
(0.25
)
(0.15
)
(2.07
)
Non-recurring tax items
0.01
0.02
0.04
0.03
Non-GAAP Operating Earnings
$
1.11
$
1.54
$
5.08
$
6.58
_______________
(1)
For periods presented with a net loss, basic shares are used for EPS .(2)
The impact per common share is $0.06 and $0.20 for the three months and year ended December 31, 2021. Separation costs were completed during 2021.(3)
Includes certain gross legal expenses related to the cost of insurance litigation and claims related to a commercial relationship of $50 million, $27 million, $218 million and $207 million for the three months and year ended December 31, 2022 and 2021, respectively. Includes policyholder benefit costs of $75 million for the year ended December 31, 2022 stemming from a deal to repurchase UL policies from one entity that had invested in numerous policies purchased in the life settlement market. The legal accruals impact per common share is $0.14, $0.00, $0.57 and $0.50 for the three months and years ended December 31, 2022 and 2021, respectively. Includes policyholder benefit costs of $0.20 and $0.00 for the years ended December 31, 2022 and 2021 stemming from a deal to repurchase UL policies from one entity that had invested in numerous policies purchased in the life settlement market. No adjustments were made to prior period non-GAAP operating EPS as the impact was immaterial.(4)
Includes Non-GMxB related derivative hedge losses of ($0.09), $0.14 and ($0.90) for the years ended December 31, 2022 and 2021, respectively.Book Value per common share, excluding AOCI
We use the term “book value” to refer to total equity attributable to Holdings’ common shareholders. Book Value per common share, excluding AOCI, is our total equity attributable to Holdings, excluding AOCI and preferred stock, divided by ending common shares outstanding.
December 31, 2022
December 31, 2021
Book value per common share
$
0.26
$
25.45
Per share impact of AOCI
24.20
(5.12
)
Book Value per common share, excluding AOCI
$
24.46
$
20.33
Other Operating Measures
We also use certain operating measures which management believes provide useful information about our businesses and the operational factors underlying our financial performance.
Account Value (“AV”)
Account value generally equals the aggregate policy account value of our retirement products.
Assets Under Management (“AUM”)
AUM means investment assets that are managed by one of our subsidiaries and includes: (i) assets managed by AB, (ii) the assets in our general account investment portfolio and (iii) the separate account assets of our Individual Retirement, Group Retirement and Protection Solutions businesses. Total AUM reflects exclusions between segments to avoid double counting.
Segment net flows
Net change in segment customer account balances in a period including, but not limited to, gross premiums, surrenders, withdrawals and benefits. It excludes investment performance, interest credited to customer accounts and policy charges.
Consolidated Statements of Income (Loss) (Unaudited)
Three Months Ended December 31,
Year Ended December 31,
2022
2021
2022
2021
(in millions)
REVENUES
Policy charges and fee income
$
792
$
882
$
3,241
$
3,637
Premiums
250
231
994
960
Net derivative gains (losses)
(1,422
)
(535
)
1,696
(4,465
)
Net investment income (loss)
958
932
3,315
3,846
Investment gains (losses), net:
Credit losses on available-for-sale debt securities and loans
(48
)
(2
)
(314
)
2
Other investment gains (losses), net
(7
)
103
(631
)
866
Total investment gains (losses), net
(55
)
101
(945
)
868
Investment management and service fees
1,160
1,497
4,891
5,395
Other income
213
210
825
795
Total revenues
1,896
3,318
14,017
11,036
BENEFITS AND OTHER DEDUCTIONS
Policyholders’ benefits
786
700
3,385
3,218
Interest credited to policyholders’ account balances
407
314
1,409
1,219
Compensation and benefits
520
598
2,199
2,360
Commissions and distribution-related payments
383
447
1,567
1,662
Interest expense
53
60
201
244
Amortization of deferred policy acquisition costs
96
136
542
393
Other operating costs and expenses
572
598
2,189
2,109
Total benefits and other deductions
2,817
2,853
11,492
11,205
Income (loss) from continuing operations, before income taxes
(921
)
465
2,525
(169
)
Income tax (expense) benefit
208
(77
)
(499
)
145
Net income (loss)
(713
)
388
2,026
(24
)
Less: Net income (loss) attributable to the noncontrolling interest
76
134
241
415
Net income (loss) attributable to Holdings
(789
)
254
1,785
(439
)
Less: Preferred stock dividends
26
26
80
79
Net income (loss) available to Holdings’ common shareholders
$
(815
)
$
228
$
1,705
$
(518
)
Earnings Per Common Share
Three Months Ended December 31,
Year Ended December 31,
2022
2021
2022
2021
(in millions)
Earnings per common share
Basic
$
(2.21
)
$
0.57
$
4.52
$
(1.24
)
Diluted
$
(2.21
)
$
0.56
$
4.49
$
(1.24
)
Weighted average shares
Weighted average common stock outstanding for basic earnings per common share
368.6
400.4
377.6
417.4
Weighted average common stock outstanding for diluted earnings per common share (1)
368.6
404.3
379.9
417.4
(1)
Due to net loss for the year ended December 31, 2021 approximately 3.8 million share awards were excluded from the diluted EPS calculation.Results of Operations by Segment
Three Months Ended December 31,
Year Ended December 31,
2022
2021
2022
2021
(in millions)
Operating earnings (loss) by segment:
Individual Retirement
$
303
$
351
$
1,140
$
1,444
Group Retirement
110
117
525
631
Investment Management and Research
94
183
424
564
Protection Solutions
(29
)
53
179
317
Corporate and Other (1)
(42
)
(55
)
(259
)
(131
)
Non-GAAP Operating Earnings
$
436
$
649
$
2,009
$
2,825
(1)
Includes interest expense and financing fees of $49 million, $61 million, $205 million and $241 million for the three months and year ended December 31, 2022, and 2021 respectively.Select Balance Sheet Statistics
December 31, 2022
December 31, 2021
(in millions)
ASSETS
Total investments and cash and cash equivalents
$
97,378
$
110,299
Separate Accounts assets
114,853
147,306
Total assets
253,468
292,262
LIABILITIES
Long-term debt
$
3,322
$
3,931
Future policy benefits and other policyholders' liabilities
34,124
36,717
Policyholders’ account balances
83,855
79,357
Total liabilities
249,615
278,699
EQUITY
Preferred stock
1,562
1,562
Accumulated other comprehensive income (loss)
(8,834
)
2,004
Total equity attributable to Holdings
$
1,658
$
11,519
Total equity attributable to Holdings' common shareholders (ex. AOCI)
8,930
7,953
Assets Under Management (Unaudited)
December 31, 2022
December 31, 2021
(in billions)
Assets Under Management
AB AUM
$
646.4
$
778.6
Exclusion for General Account and other Affiliated Accounts
(66.8
)
(79.7
)
Exclusion for Separate Accounts
(38.2
)
(48.8
)
AB third party
$
541.4
$
650.1
Total company AUM
AB third party
$
541.4
$
650.1
General Account and other Affiliated Accounts (1) (3) (4)
97.4
110.3
Separate Accounts (2) (3) (4)
114.9
147.3
Total AUM
$
753.6
$
907.7
_______________ (1) “General Account and Other Affiliated Accounts” refers to assets held in the general accounts of our insurance companies and other assets on which we bear the investment risk. (2) “Separate Accounts” refers to the separate account investment assets of our insurance subsidiaries excluding any assets on which we bear the investment risk. (3) As of December 31, 2021, March 31, 2022, June 30, 2022, September 30, 2022 and December 31, 2022, Separate Account and General Account AUM is inclusive of $16.6 billion, $61 million, $15.1 billion, $60 million, $12.7 billion, $60 million, $11.7 billion, $58 million, $12.1 billion and $56 million, respectively, Account Value ceded to Venerable. For additional information on the Venerable transaction see Note 1 of the Notes to Consolidated Financial Statements within the 10-K. (4) As of December 31, 2022, Separate Account and General Account AUM is inclusive $5.6 billion and $3.9 billion, respectively, Account Value ceded to Global Atlantic. For additional information on the Global Atlantic transaction see MD&A - Executive Summary “Global Atlantic Reinsurance Transaction" within the 10-K.
__________________________________ 1 Cash generation is net annual dividends and distributions to Equitable Holdings from its subsidiaries; expected cash generation based on 12/31/22 market levels. 2 2022 capital return includes $112 million of repurchases accelerated from first quarter 2022 into fourth quarter 2021. 3 Net inflows include $4.6 billion of Core Retirement inflows, representing Individual Retirement Current Product Offering and Group Retirement, $4.5 billion of Wealth Management advisory and brokerage inflows from Equitable Advisors and $0.9 billion of AllianceBernstein inflows, ex. $4.5 billion of AXA redemptions. 4 This press release includes certain Non-GAAP financial measures. More information on these measures and reconciliations to the most comparable U.S. GAAP measures can be found in the “Use of Non-GAAP Financial Measures” section of this release. 5 Please refer to Exhibit 1 for detailed reconciliation and definitions related to notable items. 6 Free Cash Flow is net annual dividends and distributions to Equitable Holdings from its subsidiaries less annual Holding Company expenses. 7 Please refer to Exhibit 1 for detailed reconciliation and definitions related to notable items. 8 Includes $0.6 billion of first year premiums associated with SCS Income currently reported in Other. 9 Refers to AllianceBernstein L.P. and AllianceBernstein Holding L.P., collectively. 10 Excludes $4.5 billion of expected low-fee outflows from AXA. 11 2022 capital return includes $112 million of repurchases accelerated from first quarter 2022 into fourth quarter 2021. 12 Payout ratio target is total capital returns to common shareholders as a percentage of Non-GAAP operating earnings adjusted for notable items 13 Under this authorization, the Company may, from time to time, purchase shares of its common stock through various means including open market transactions, privately negotiated transactions, forward, derivative, accelerated repurchase, or automatic share repurchase transactions, or tender offers. The authorization for the share repurchase program may be terminated, increased or decreased by the board of directors at any time. 14 Cash generation is net annual dividends and distributions to Equitable Holdings from its subsidiaries; expected cash generation based on 12/31/22 market levels. 15 Free Cash Flow is net annual dividends and distributions to Equitable Holdings from its subsidiaries less annual Holding Company expenses. 16 Please refer to Exhibit 1 for detailed reconciliation and definitions related to notable items. 17 Please refer to Exhibit 1 for detailed reconciliation and definitions related to notable items.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230208005783/en/
Investor Relations Işıl Müderrisoğlu (212) 314-2476 IR@equitable.com
Media Relations Sophia Kim (212) 314-2010 mediarelations@equitable.com
1 Year Equitable Chart |
1 Month Equitable Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions