Equitable Lets Cash Flow Out of Fixed-Rate Living Benefits Annuities: Earnings
May 13, 2020 by Allison Bell
Equitable Holdings Inc. is yet another life insurer talking about how it will adjust its products to help it sail into the low-interest-rate wind.
The New York-based life insurer reported Thursday that it’s letting cash flow out of its fixed-rate living benefits annuity block, while attracting cash to newer, less-capital-intensive products.
About $935 million in cash moved out of the fixed-rate annuities, but $615 million into the annuities Equitable now wants to sell. The result was a net outflow of $320 million.
The product shift helped Equitable report $372 million in operating earnings for the first quarter on individual retirement products, on $1.5 billion in revenue, up from $370 million in operating earnings on $1 billion in revenue for the first quarter of 2019, in spite of low interest rates and stock market turmoil.