We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (17,075)
  • Industry Conferences (3)
  • Industry Job Openings (3)
  • Negative Media (139)
  • Positive Media (73)
  • Sheryl's Articles (626)
  • Sheryl's Blogs (181)
  • Wink's Articles (250)
  • Wink's Blogs (225)
  • Wink's Press Releases (95)
  • Blog Archives

  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • May 2008
  • February 2008
  • August 2006
  • Equitable Holdings Reports First Quarter 2021 Results

    May 11, 2021 by Equitable Holdings

    NEW YORK–(BUSINESS WIRE)–Equitable Holdings, Inc. (“Equitable Holdings”, “Holdings”, or the “Company”) (NYSE: EQH) today announced financial results for the first quarter ended March 31, 2021.

    “Thanks to the resiliency of Equitable’s business model, we began 2021 with strong operating performance and delivered another quarter of solid results, with non-GAAP operating earnings of $1.35 per share, up 19% year-over-year. Buoyed by net flows and strong equity markets, assets under management grew 27% year-over-year to $822 billion, reaching another record high,” said Mark Pearson, President and Chief Executive Officer.

    Mr. Pearson continued, “We remain grounded in our fair value economic approach to managing the business. Our balance sheet de-risking efforts will be further accelerated by our landmark variable annuity reinsurance transaction with Venerable, which remains on track to close in the second quarter. In addition to the benefits we receive from managing to a fair value framework, we remain confident in our ability to generate long-term value.”

    Consolidated Results

     

     

     

     

    First Quarter

    (in millions, except per share amounts or unless otherwise noted)

    2021

     

    2020

    Total Assets Under Management (“AUM”, in billions)

    $

    822

     

     

    $

    646

     

    Net income (loss) attributable to Holdings

    (1,488

    )

     

    5,388

     

    Net income (loss) attributable to Holdings per common share

    (3.46

    )

     

    11.60

     

    Non-GAAP operating earnings (loss)

    600

     

     

    535

     

    Non-GAAP operating earnings (loss) per common share (“EPS”)

    1.35

     

     

    1.13

     

    As of March 31, 2021, total AUM was $822 billion, a year-over-year increase of 27% driven by net inflows and market performance over the prior twelve months.

    The net loss attributable to Holdings for the first quarter of 2021 was $1,488 million compared to net income of $5,388 million in the first quarter of 2020 driven primarily by non-economic market impacts from hedging and non-performance risk under U.S. GAAP accounting.

    Non-GAAP operating earnings in the first quarter of 2021 improved to $600 million from $535 million in the first quarter of 2020, primarily due to higher market-driven revenues including alternative investments and fee income.

    As of March 31, 2021, book value per common share, including accumulated other comprehensive income (“AOCI”), was $21.32. Book value per common share, excluding AOCI, was $19.59.

    Business Highlights

    • Business segment highlights:
      • Individual Retirement had a record quarter in first year premiums, up 24% year-over-year, driven by another record quarter in Structured Capital Strategies (“SCS”) sales.
      • Group Retirement renewal contributions increased 6% year-over-year, reflecting amplified Advisor outreach, effective digital engagement and positive flows in the tax-exempt market.
      • Investment Management and Research (AllianceBernstein or “AB”)2 reported active net inflows of $6.5 billion in the quarter, with positive net flows across all distribution channels.
      • Protection Solutions continues to drive momentum in its Employee Benefits business with strong persistency and gross written premiums up 47% year-over-year.
    • Capital management program:
      • As part of the Company’s 2021 capital management program, it returned $504 million to shareholders in the first quarter, including $74 million of quarterly cash dividends and $430 million of share repurchases.
      • The Company intends to increase its quarterly cash dividend from $0.17 to $0.18 per share in the second quarter3.
      • The Company expects to continue delivering on its 50-60% payout ratio target, with an incremental $500 million of share repurchases in 2021, subject to the close of the variable annuity reinsurance transaction with Venerable.
    • Strong capitalization and liquidity:
      • Fortified balance sheet immunized from interest rate risk and protected by hedging to economic liabilities, with 95% hedging effectiveness in the quarter.
      • As of March 31, 2021, the Company reported cash and liquid assets of c. $2.5 billion at Holdings, above its $500 million liquidity target.
    • Driving long-term shareholder value:
      • Continued focus on growing capital-resilient businesses, supported by the variable annuity reinsurance transaction, which remains on track to close in the second quarter of 2021.
      • Expenses lower year-over-year, excluding one-time items and revenue-related variable expenses, reflecting $8 million of net realized expense savings in the quarter and our continued focus on productivity.
    _______________

    1 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.

    2 Refers to AllianceBernstein L.P. and AllianceBernstein Holding L.P., collectively.

    3 Any declaration of dividends will be at the discretion of the Board and will depend on our financial condition and other factors.

    Business Segment Results

    Individual Retirement

    (in millions, unless otherwise noted)

    Q1 2021

     

    Q1 2020

    Account value (in billions)

    $

    120.8

     

     

    $

    93.6

     

    Segment net flows

     

     

     

    Current Product Offering

    559

     

     

    615

     

    Fixed Rate

    (1,075

    )

     

    (935

    )

    Total segment net flows

    (516

    )

     

    (320

    )

    Operating earnings (loss)

    363

     

     

    373

     

    • Account value increased by 29% primarily driven by equity market performance over the prior twelve months.
    • Net flows of $(516) million decreased compared to the first quarter of 2020 as anticipated outflows from the older fixed rate living benefits block of $(1,075) million were partially offset by net inflows from our current product offering of less capital-intensive products of $559 million.
    • Operating earnings decreased from $373 million to $363 million versus the prior year quarter, primarily due to higher death claims, partially offset by higher net investment income from alternatives and fee-type revenue on higher account values.

    Group Retirement

    (in millions, unless otherwise noted)

    Q1 2021

     

    Q1 2020

    Account value (in billions)

    $

    44.0

     

     

    $

    33.1

     

    Segment net flows

    (51

    )

     

    128

     

    Operating earnings (loss)

    151

     

     

    106

     

    • Account value increased by 33% driven primarily by equity market performance over the prior twelve months.
    • Net flows of $(51) million decreased by $179 million versus the prior year quarter primarily due to COVID-19 impacts on first year premiums and unfavorable surrender experience, partially offset by higher renewal premiums and positive net flows in the tax-exempt market.
    • Operating earnings increased from $106 million to $151 million versus the prior year quarter, primarily due to higher net investment income from alternatives and fee-type revenue on higher account values.

    Investment Management and Research

    (in millions, unless otherwise noted)

    Q1 2021

     

    Q1 2020

    Total AUM (in billions)

    $

    697.2

     

     

    $

    541.8

     

    Segment net flows (in billions)

    5.2

     

     

    (5.6

    )

    Operating earnings (loss)

    121

     

     

    95

     

    • AUM increased by 29% due to equity market performance and net inflows over the prior twelve months.
    • First quarter net flows of $5.2 billion were driven by net inflows across all distribution channels, including $6.5 billion in active net inflows.
    • Operating earnings increased from $95 million to $121 million, primarily driven by higher base fees on higher average AUM.

    Protection Solutions

    (in millions)

    Q1 2021

     

    Q1 2020

    Gross written premiums

    $

    762

     

     

    $

    778

     

    Annualized premiums

    69

     

     

    56

     

    Operating earnings (loss)

    41

     

     

    49

     

    • Gross written premiums decreased 2% versus the prior year quarter as strong growth in Employee Benefits was offset by declines in Life premiums, reflecting a shift to less interest-sensitive life insurance accumulation products.
    • Annualized premiums increased from $56 million to $69 million versus the prior year quarter primarily driven by continued growth in our Employee Benefits business.
    • Operating earnings decreased from $49 million to $41 million versus the prior year quarter, primarily due to unfavorable COVID-19 mortality experience as well as lower premiums, partially offset by the release of the PFBL reserves.

    Corporate and Other

    Operating loss of $76 million in the first quarter improved compared to operating loss of $88 million in the prior year quarter, primarily driven by higher net investment income from alternative investments and lower interest credited.

    Earnings Conference Call

    Equitable Holdings will host a conference call at 8 a.m. ET May 6, 2021 to discuss its first quarter 2021 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 First Quarter 2021 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 12,000 employees and financial professionals, $822 billion in assets under management (as of 3/31/2021) 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 COVID-19 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, 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’ Annual Report on Form 10-K for the year ended December 31, 2020, and in Holdings’ subsequent 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:

    • Items related to variable annuity product features, which include: (i) certain changes in the fair value of the derivatives and other securities we use to hedge these features; (ii) the effect of benefit ratio unlock adjustments related to extraordinary economic conditions or events such as COVID-19; and (iii) changes in the fair value of the embedded derivatives reflected within variable annuity products’ net derivative results and the impact of these items on DAC amortization on our SCS product;
    • Investment (gains) losses, which includes credit loss impairments of securities/investments, sales or disposals of securities/investments, realized capital gains/losses and valuation allowances;
    • Net actuarial (gains) losses, which includes actuarial gains and losses as a result of differences between actual and expected experience on pension plan assets or projected benefit obligation during a given period related to pension, other postretirement benefit obligations, and the one-time impact of the settlement of the defined benefit obligation;
    • Other adjustments, which primarily include restructuring costs related to severance and separation, COVID-19 related impacts, net derivative gains (losses) on certain Non-GMxB derivatives, net investment income from certain items including consolidated VIE investments, seed capital mark-to-market adjustments, unrealized gain/losses associated with equity securities and certain legal accruals; and
    • Income tax expense (benefit) related to the above items and non-recurring tax items, which includes the effect of uncertain tax positions for a given audit period.

    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 ended March 31, 2021 and 2020:

     

    Three Months
    Ended March 31,

    (in millions)

    2021

     

    2020

    Net income (loss) attributable to Holdings

    $

    (1,488

    )

     

    $

    5,388

     

    Adjustments related to:

     

     

     

    Variable annuity product features (1)

    2,267

     

     

    (6,869

    )

    Investment (gains) losses

    (183

    )

     

    (4

    )

    Net actuarial (gains) losses related to pension and other postretirement benefit obligations

    34

     

     

    27

     

    Other adjustments (2) (3) (4)

    524

     

     

    695

     

    Income tax expense (benefit) related to above adjustments (5)

    (555

    )

     

    1,292

     

    Non-recurring tax items

    1

     

     

    6

     

    Non-GAAP operating earnings

    $

    600

     

     

    $

    535

     

     

     

     

     

    _______________

    (1)

    Includes COVID-19 impact on Variable annuity product features due to an assumption update of $1.5 billion and other COVID-19 related impacts of $35 million for the three months ended March 31, 2020.

    (2)

    Includes assumption update due to COVID-19 of $1.0 billion and other COVID-19 related impacts of $51 million for the three months ended March 31, 2020.

    (3)

    Includes separation costs of $21 million and $32 million for the three months ended March 31, 2021 and 2020, respectively.

    (4)

    Includes certain legal accruals related to the cost of insurance litigation of $180 million for the three months ended March 31, 2021. No adjustment was made to prior period operating earnings as the impact was immaterial.

    (5)

    Includes income taxes of ($547) million for the above related COVID-19 items for the three months ended March 31, 2020.

    Non-GAAP Operating EPS

    Non-GAAP Operating Earnings per common share is calculated by dividing Non-GAAP Operating Earnings less preferred dividends by diluted common shares outstanding. The table below presents a reconciliation of GAAP EPS to Non-GAAP Operating EPS for the three months ended March 31, 2021 and 2020.

     

    Three Months Ended March 31,

    (per share amounts)

    2021

     

    2020

    Net income (loss) attributable to Holdings (1)

    $

    (3.43

    )

     

    $

    11.62

     

    Less: Preferred stock dividend

    0.03

     

     

    0.02

     

    Net Income (loss) available to common shareholders

    (3.46

    )

     

    11.60

     

    Adjustments related to:

     

     

     

    Variable annuity product features (2)

    5.22

     

     

    (14.82

    )

    Investment (gains) losses

    (0.42

    )

     

    (0.01

    )

    Net actuarial (gains) losses related to pension and other postretirement benefit obligations

    0.08

     

     

    0.06

     

    Other adjustments (3) (4) (5)

    1.21

     

     

    1.50

     

    Income tax expense (benefit) related to above adjustments (6)

    (1.28

    )

     

    2.79

     

    Non-recurring tax items

     

     

    0.01

     

    Non-GAAP Operating Earnings (6)

    $

    1.35

     

     

    $

    1.13

     

     

     

     

     

    _______________

    (1)

    Due to reporting a net loss for the three months ended March 31, 2021, basic shares was used in the diluted earnings per common share calculation as the use of diluted shares would have resulted in a lower loss per share.

    (2)

    Includes COVID-19 impact on Variable annuity product features due to an assumption update of $3.17 and other COVID-19 related impacts of $0.08 for the three months ended March 31, 2020.

    (3)

    Includes assumption update due to COVID-19 of $2.26 and other COVID-19 related impacts of $0.11 for the three months ended March 31, 2020.

    (4)

    Includes separation costs of $0.05 and $0.07 for the three months ended March 31, 2021 and 2020, respectively.

    (5)

    Includes certain legal accruals related to the cost of insurance litigation of $0.41 for the three months ended March 31, 2021. No adjustments were made to prior period non-GAAP operating EPS as the impact was immaterial.

    (6)

    Includes income taxes of $(1.18) for the above related COVID-19 items for the three months ended March 31, 2020.

    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.

     

    March 31,
    2021

     

    December 31,
    2020

    Book value per common share

    $

    21.32

     

     

    $

    32.46

     

    Per share impact of AOCI

    (1.73

    )

     

    (8.76

    )

    Book Value per common share, excluding AOCI

    $

    19.59

     

     

    $

    23.70

     

    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
    March 31,

     

    2021

     

    2020

     

    (in millions)

    REVENUES

     

     

     

    Policy charges and fee income

    $

    949

     

     

    $

    996

     

    Premiums

    258

     

     

    289

     

    Net derivative gains (losses)

    (2,546

    )

     

    9,400

     

    Net investment income (loss)

    884

     

     

    629

     

    Investment gains (losses), net:

     

     

     

    Credit losses on Available for Sale debt securities and loans

    1

     

     

    (12

    )

    Other investment gains (losses), net

    183

     

     

    16

     

    Total investment gains (losses), net

    184

     

     

    4

     

    Investment management and service fees

    1,257

     

     

    1,136

     

    Other income

    167

     

     

    155

     

    Total revenues

    1,153

     

     

    12,609

     

    BENEFITS AND OTHER DEDUCTIONS

     

     

     

    Policyholders’ benefits

    939

     

     

    2,776

     

    Interest credited to policyholders’ account balances

    291

     

     

    317

     

    Compensation and benefits

    580

     

     

    526

     

    Commissions and distribution-related payments

    382

     

     

    338

     

    Interest expense

    74

     

     

    52

     

    Amortization of deferred policy acquisition costs

    87

     

     

    1,303

     

    Other operating costs and expenses

    608

     

     

    438

     

    Total benefits and other deductions

    2,961

     

     

    5,750

     

    Income (loss) from continuing operations, before income taxes

    (1,808

    )

     

    6,859

     

    Income tax (expense) benefit

    408

     

     

    (1,434

    )

    Net income (loss)

    (1,400

    )

     

    5,425

     

    Less: Net income (loss) attributable to the noncontrolling interest

    88

     

     

    37

     

    Net income (loss) attributable to Holdings

    (1,488

    )

     

    5,388

     

    Less: Preferred stock dividends

    13

     

     

    13

     

    Net income (loss) available to Holdings’ common shareholders

    $

    (1,501

    )

     

    $

    5,375

     

     

     

     

     

    Earnings Per Common Share

     

    Three Months Ended
    March 31,

     

    2021

     

    2020

     

    (in millions)

    Earnings per common share

     

     

     

    Basic

    $

    (3.46

    )

     

    $

    11.66

     

    Diluted

    $

    (3.46

    )

     

    $

    11.60

     

    Weighted average shares

     

     

     

    Weighted average common stock outstanding for basic earnings per common share

    434.2

     

     

    461.0

     

    Weighted average common stock outstanding for diluted earnings per common share (1)

    434.2

     

     

    463.5

     

     

     

     

     

    (1)

    Due to net loss for the three months ended March 31, 2021, approximately 4.3 million more shares were excluded from the diluted earnings per common share calculation than would have been excluded as being anti-dilutive under the treasury stock method.

    Results of Operations by Segment

     

    Three Months Ended
    March 31,

     

    2021

     

    2020

     

    (in millions)

    Operating earnings (loss) by segment:

     

     

     

    Individual Retirement

    $

    363

     

     

    $

    373

     

    Group Retirement

    151

     

     

    106

     

    Investment Management and Research

    121

     

     

    95

     

    Protection Solutions

    41

     

     

    49

     

    Corporate and Other

    (76

    )

     

    (88

    )

    Non-GAAP Operating Earnings

    $

    600

     

     

    $

    535

     

     

     

     

     

    Select Balance Sheet Statistics

     

    March 31,
    2021

     

    December 31,
    2020

     

    (in millions)

    ASSETS

     

     

     

    Total investments and cash and cash equivalents

    $

    112,292

     

     

    $

    115,266

     

    Separate Accounts assets

    139,795

     

     

    135,950

     

    Total assets

    276,832

     

     

    275,397

     

     

     

     

     

    LIABILITIES

     

     

     

    Short-term and long-term debt

    $

    4,022

     

     

    $

    4,115

     

    Future policy benefits and other policyholders’ liabilities

    35,922

     

     

    39,881

     

    Policyholders’ account balances

    73,303

     

     

    66,820

     

    Total liabilities

    264,427

     

     

    258,077

     

     

     

     

     

    EQUITY

     

     

     

    Preferred stock

    1,562

     

     

    1,269

     

    Accumulated other comprehensive income (loss)

    740

     

     

    3,863

     

    Total equity attributable to Holdings

    $

    10,693

     

     

    $

    15,576

     

    Total equity attributable to Holdings’ common shareholders (ex. AOCI)

    8,391

     

     

    10,444

     

             

     

    Assets Under Management (Unaudited)

     

    March 31,
    2021

     

    December 31,
    2020

     

    (in billions)

    Assets Under Management

     

     

     

    AB AUM

    $

    697.2

     

     

    $

    685.9

     

    Exclusion for General Account and other Affiliated Accounts

    (84.5

    )

     

    (87.6

    )

    Exclusion for Separate Accounts

    (42.2

    )

     

    (40.5

    )

    AB third party

    $

    570.4

     

     

    $

    557.8

     

     

     

     

     

    Total company AUM

     

     

     

    AB third party

    $

    570.4

     

     

    $

    557.8

     

    General Account and other Affiliated Accounts (1)

    112.3

     

     

    115.3

     

    Separate Accounts (2)

    139.8

     

     

    136.0

     

    Total AUM

    $

    822.5

     

     

    $

    809.0

     

     

     

     

     

    _______________

    (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.

     

    Contacts

    Investor Relations
    Isil Muderrisoglu
    (212) 314-2476
    IR@equitable.com

    Media Relations
    Matt Asensio
    (212) 314-2010
    mediarelations@equitable.com

    Originally Posted at Business Wire on May 5, 2021 by Equitable Holdings.

    Categories: Industry Articles
    currency