EQH-PA — Equitable Holdings, Inc.

Summary of Equitable Holdings Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Full Year Non-GAAP Operating Earnings: $5.64 per share ($6.21 adjusted for notable items), up 1% from 2024.
• Fourth Quarter Non-GAAP Operating Earnings: $513 million or $1.73 per share; net income was $215 million.
• Organic Cash Generation: $1.6 billion for 2025, with a forecast of $1.8 billion for 2026 and $2 billion by 2027.
• Assets Under Management and Administration: Reached a record $1.1 trillion, up 10% year-over-year.
• Shareholder Returns: $1.8 billion returned to shareholders in 2025, including $500 million in share repurchases.
• Payout Ratio: 68% (excluding additional buybacks), at the high end of the target range of 60%-70%.

2. Strategic Updates and Business Highlights

• Core Growth Engines: Focus on U.S. retirement, asset management, and wealth management, with a capital-light balance sheet strategy.
• Life Reinsurance Transaction: Executed with RGA, reducing mortality exposure by 75% and freeing up $2 billion in capital.
• Retirement Segment: $5.9 billion in net flows, 4% organic growth; record RILA sales contributed significantly.
• Wealth Management: Achieved $200 million in annual earnings two years ahead of schedule, with a 13% organic growth rate.
• AllianceBernstein: Experienced mixed results with $11.3 billion in net outflows but strong growth in private markets, increasing AUM by 18% to $82 billion.

3. Forward Guidance and Outlook

• 2026 Expectations: Anticipate EPS growth to exceed 12%-15% target, driven by improved cash generation and reduced mortality exposure.
• Retirement Earnings: Expected mid- to high single-digit growth with stabilization in spreads in the second half of 2026.
• Wealth Management: Forecasting continued double-digit earnings growth.
• Corporate and Other: Projected loss in the range of $350 million to $400 million, influenced by mortality claims.

4. Bad News, Challenges, or Points of Concern

• Elevated Mortality Claims: Contributed to a $25 million adverse impact in Q4, leading to increased guidance for mortality-related expenses.
• Competitive Pressures: Increased competition in the RILA market, with new entrants potentially impacting market share and pricing discipline.
• Earnings Per Share Growth Lag: Currently at 8% growth, below the target, primarily due to mortality claims and the need for improved execution in the life segment.
• Disclosure Changes: Concerns raised about the clarity of financial disclosures, particularly regarding individual life insurance performance.

5. Notable Q&A Insights

• Private Credit Portfolio: Management expressed confidence in the quality of their private credit investments, emphasizing low exposure to high-risk sectors like software.
• Wealth Management Growth: Majority of growth attributed to existing advisers rather than external hires; the firm remains selective in recruiting new advisers.
• RILA Market Dynamics: Management noted that while competition has increased, they maintain a strong market position and are disciplined in pricing to protect IRRs.
• Future Cash Flow and Investment Opportunities: Emphasis on investing in growth opportunities while maintaining a high payout ratio, suggesting a balanced approach to capital management.

This summary encapsulates the key points from the earnings call, highlighting both the positive developments and the challenges faced by Equitable Holdings.