Table of Contents
Consolidated Financials and Key Metrics | Page |
Key Metrics Summary | |
Consolidated Statements of Income (Loss) | |
Consolidated Balance Sheets | 6 |
Consolidated Capital Structure | 7 |
Operating Earnings (Loss) by Segment and Corporate and Other | 8 |
Assets Under Management and Administration | 10 |
Sales Metrics by Segment | 11 |
Select Metrics from Business Segments | |
Individual Retirement | |
Statements of Operating Earnings (Loss) and Summary Metrics | 13 |
Select Operating Metrics | 14 |
Group Retirement | |
Statements of Operating Earnings (Loss) and Summary Metrics | 16 |
Select Operating Metrics | 17 |
Investment Management and Research | |
Statements of Operating Earnings (Loss) and Summary Metrics | 18 |
Select Operating Metrics | 19 |
Net Flows | 20 |
Protection Solutions | |
Statements of Operating Earnings (Loss) and Summary Metrics | 21 |
Select Operating Metrics | 22 |
Investments | |
Consolidated Investment Portfolio Composition | 24 |
Consolidated Results of General Account Investment Portfolio | 25 |
Additional Information | |
Deferred Policy Acquisition Costs Rollforward | 27 |
Use of Non-GAAP Financial Measures | 28 |
Reconciliation of Non-GAAP Measures | 30 |
Glossary of Selected Financial and Product Terms | 33 |
Analyst Coverage, Ratings & Contact Information | 34 |
All information included in this financial supplement is unaudited.
.
This financial supplement should be read in conjunction with Equitable Holdings, Inc.'s ("EQH") Quarterly Report on Form 10-Q for the quarter ended September 30, 2021.
Equitable Holdings' filings with the Securities and Exchange Commission ("SEC") can be accessed upon filing at the SEC's website at www.sec.gov, and at our website at ir.equitableholdings.com.
3Q 2021 Financial Supplement | 2 |
Consolidated Financials
and Key Metrics
3Q 2021 Financial Supplement | 3 |
Key Metrics Summary
For the Three Months Ended or As of | Nine Months Ended or As of | |||||||||||||||||||||||
(in millions USD, unless otherwise indicated) | 9/30/2020 | 12/31/2020 | 3/31/2021 | 6/30/2021 | 9/30/2021 | Change | 9/30/2020 | 9/30/2021 | Change | |||||||||||||||
Net income (loss) | $ | (705) | $ | (1,136) | $ | (1,400) | $ | 223 | $ | 765 | 208.5 % | $ | 787 | $ | (412) | (152.4)% | ||||||||
Net income (loss) attributable to the noncontrolling interest | (74) | (102) | (88) | (100) | (93) | (25.7)% | (197) | (281) | (42.6)% | |||||||||||||||
Net income (loss) attributable to Holdings | $ | (779) | $ | (1,238) | $ | (1,488) | $ | 123 | $ | 672 | 186.3 % | $ | 590 | $ | (693) | (217.5)% | ||||||||
Non-GAAP Operating Earnings (1) | $ | 568 | $ | 748 | $ | 600 | $ | 758 | $ | 818 | 44.0 % | $ | 1,554 | $ | 2,176 | 40.0 % | ||||||||
Total equity attributable to Holdings' shareholders | $ | 17,300 | $ | 15,576 | $ | 10,693 | $ | 11,732 | $ | 11,680 | (32.5)% | $ | 17,300 | $ | 11,680 | (32.5)% | ||||||||
Less: Preferred Stock | 1,269 | 1,269 | 1,562 | 1,562 | 1,562 | 23.1 % | 1,269 | 1,562 | 23.1 % | |||||||||||||||
Total equity attributable to Holdings' common shareholders | 16,031 | 14,307 | 9,131 | 10,170 | 10,118 | (36.9)% | 16,031 | 10,118 | (36.9)% | |||||||||||||||
Less: Accumulated other comprehensive income (loss) | 4,188 | 3,863 | 740 | 1,983 | 1,876 | (55.2)% | 4,188 | 1,876 | (55.2)% | |||||||||||||||
Total equity attributable to Holdings' common shareholders (ex. AOCI) | $ | 11,843 | $ | 10,444 | $ | 8,391 | $ | 8,187 | $ | 8,242 | (30.4)% | $ | 11,843 | $ | 8,242 | (30.4)% | ||||||||
Return on Equity (ex. AOCI) - TTM | (2.9)% | (5.4)% | (69.7)% | (35.5)% | (22.7)% | (2.9)% | (22.7)% | |||||||||||||||||
Non-GAAP Operating ROE (1) | 16.3 % | 17.3 % | 21.3 % | 26.8 % | 32.4 % | 16.3 % | 32.4 % | |||||||||||||||||
Debt to capital: | ||||||||||||||||||||||||
Debt to Capital | 19.2 % | 20.9 % | 26.4 % | 24.6 % | 24.7 % | 19.2 % | 24.7 % | |||||||||||||||||
Debt to Capital (ex. AOCI) | 23.9 % | 26.0 % | 27.8 % | 28.2 % | 28.1 % | 23.9 % | 28.1 % | |||||||||||||||||
Per common share: | ||||||||||||||||||||||||
Diluted earnings per common share: (2) | ||||||||||||||||||||||||
Net income (loss) attributable to Holdings | $ | (1.77) | $ | (2.84) | $ | (3.46) | $ | 0.23 | $ | 1.59 | 189.9 % | $ | 1.22 | $ | (1.76) | (244.0)% | ||||||||
Non-GAAP Operating Earnings (1) | $ | 1.24 | $ | 1.65 | $ | 1.35 | $ | 1.71 | $ | 1.94 | 55.8 % | $ | 3.35 | $ | 5.02 | 49.9 % | ||||||||
Book value per common share | $ | 36.05 | $ | 32.46 | $ | 21.32 | $ | 24.20 | $ | 25.00 | (30.6)% | $ | 36.05 | $ | 25.00 | (30.6)% | ||||||||
Book value per common share (ex. AOCI) | $ | 26.63 | $ | 23.70 | $ | 19.59 | $ | 19.48 | $ | 20.37 | (23.5)% | $ | 26.63 | $ | 20.37 | (23.5)% | ||||||||
Weighted-average common shares outstanding: | ||||||||||||||||||||||||
Basic | 447.5 | 442.8 | 434.2 | 424.2 | 411.3 | (8.1)% | 453.0 | 423.2 | (6.6)% | |||||||||||||||
Diluted | 447.5 | 442.8 | 434.2 | 428.3 | 414.6 | (7.3)% | 454.1 | 423.2 | (6.8)% | |||||||||||||||
Ending common shares outstanding | 444.7 | 440.8 | 428.3 | 420.2 | 404.7 | (9.0)% | 444.7 | 404.7 | (9.0)% | |||||||||||||||
Return to common shareholders: | ||||||||||||||||||||||||
Common stock dividend | $ | 76 | $ | 75 | $ | 74 | $ | 76 | $ | 74 | $ | 222 | $ | 224 | ||||||||||
Repurchase of common shares | 100 | 100 | 430 | 279 | 460 | 330 | 1,169 | |||||||||||||||||
Total capital returned to common shareholders | $ | 176 | $ | 175 | $ | 504 | $ | 355 | $ | 534 | $ | 552 | $ | 1,393 | ||||||||||
Market Values: | ||||||||||||||||||||||||
S&P 500 | 3,363 | 3,756 | 3,973 | 4,298 | 4,308 | 28.1 % | 3,363 | 4,308 | 28.1 % | |||||||||||||||
US 10-Year Treasury | 0.7 % | 0.9 % | 1.7 % | 1.5 % | 1.5 % | 0.7 % | 1.5 % |
Notes:
- This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer to the "Use of Non-GAAP Financial Measures" and "Glossary of Selected Financial and Product Terms" sections of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the "Non-GAAP Reconciliation" section in this document.
- For loss periods, dilutive shares were not included in the calculation of net income (loss) available to shareholders per common share or Non-GAAP Operating Earnings per common share as inclusion of such shares would have an anti-dilutive effect.
3Q 2021 Financial Supplement | 4 |
Consolidated Statements of Income (Loss)
For the Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(in millions USD, unless otherwise indicated) | 9/30/2020 | 12/31/2020 | 3/31/2021 | 6/30/2021 | 9/30/2021 | Change | 9/30/2020 | 9/30/2021 | Change | |||||||||||||||||
Revenues | ||||||||||||||||||||||||||
Policy charges and fee income | $ | 914 | $ | 948 | $ | 949 | $ | 939 | $ | 867 | (5.1)% | $ | 2,787 | $ | 2,755 | (1.1)% | ||||||||||
Premiums | 221 | 243 | 258 | 241 | 230 | 4.1 % | 754 | 729 | (3.3)% | |||||||||||||||||
Net derivative gains (losses) | (1,472) | (3,612) | (2,546) | (1,199) | (185) | 87.4 % | 1,890 | (3,930) | (307.9)% | |||||||||||||||||
Net investment income (loss) | 879 | 947 | 884 | 1,033 | 997 | 13.4 % | 2,530 | 2,914 | 15.2 % | |||||||||||||||||
Investment gains (losses), net | 17 | 554 | 184 | 420 | 163 | 858.8 % | 190 | 767 | 303.7 % | |||||||||||||||||
Investment management and service fees | 1,126 | 1,294 | 1,257 | 1,318 | 1,323 | 17.5 % | 3,314 | 3,898 | 17.6 % | |||||||||||||||||
Other income | 155 | 142 | 167 | 198 | 220 | 41.9 % | 434 | 585 | 34.8 % | |||||||||||||||||
Total revenues | 1,840 | 516 | 1,153 | 2,950 | 3,615 | 96.5 % | 11,899 | 7,718 | (35.1)% | |||||||||||||||||
Benefits and other deductions | ||||||||||||||||||||||||||
Policyholders' benefits | 1,034 | 780 | 939 | 828 | 751 | (27.4)% | 4,546 | 2,518 | (44.6)% | |||||||||||||||||
Interest credited to policyholders' account balances | 306 | 292 | 291 | 309 | 305 | (0.3)% | 930 | 905 | (2.7)% | |||||||||||||||||
Compensation and benefits | 503 | 598 | 580 | 568 | 614 | 22.1 % | 1,498 | 1,762 | 17.6 % | |||||||||||||||||
Commissions and distribution related payments | 342 | 369 | 382 | 397 | 436 | 27.5 % | 982 | 1,215 | 23.7 % | |||||||||||||||||
Interest expense | 52 | 48 | 74 | 51 | 59 | 13.5 % | 152 | 184 | 21.1 % | |||||||||||||||||
Amortization of deferred policy acquisition costs | 90 | 58 | 87 | 106 | 64 | (28.9)% | 1,555 | 257 | (83.5)% | |||||||||||||||||
Other operating costs and expenses | 436 | 392 | 608 | 447 | 456 | 4.6 % | 1,308 | 1,511 | 15.5 % | |||||||||||||||||
Total benefits and other deductions | 2,763 | 2,537 | 2,961 | 2,706 | 2,685 | (2.8)% | 10,971 | 8,352 | (23.9)% | |||||||||||||||||
Income (loss) from operations, before income taxes | (923) | (2,021) | (1,808) | 244 | 930 | 200.8 % | 928 | (634) | (168.3)% | |||||||||||||||||
Income tax (expense) benefit | 218 | 885 | 408 | (21) | (165) | (175.7)% | (141) | 222 | 257.4 % | |||||||||||||||||
Net income (loss) | (705) | (1,136) | (1,400) | 223 | 765 | 208.5 % | 787 | (412) | (152.4)% | |||||||||||||||||
Less: net (income) loss attributable to the noncontrolling interest | (74) | (102) | (88) | (100) | (93) | (25.7)% | (197) | (281) | (42.6)% | |||||||||||||||||
Net income (loss) attributable to Holdings | $ | (779) | $ | (1,238) | $ | (1,488) | $ | 123 | $ | 672 | 186.3 % | $ | 590 | $ | (693) | (217.5)% | ||||||||||
Less: Preferred stock dividends | (27.3)% | (55.9)% | ||||||||||||||||||||||||
(11) | (19) | (13) | (26) | (14) | (34) | (53) | ||||||||||||||||||||
Net income (loss) available to Holdings' common shareholders | $ | (790) | $ | (1,257) | $ | (1,501) | $ | 97 | $ | 658 | 183.3 % | $ | 556 | $ | (746) | (234.2)% | ||||||||||
Adjustments related to: | ||||||||||||||||||||||||||
Variable annuity product features (1) | $ | 1,620 | $ | 3,439 | $ | 2,267 | $ | 1,193 | $ | 172 | $ | 473 | $ | 3,632 | ||||||||||||
Investment gains (losses), net | (17) | (554) | (183) | (420) | (164) | (190) | (767) | |||||||||||||||||||
Net actuarial gains (losses) related to pension and other postretirement benefit | 31 | 23 | 34 | 26 | 27 | 86 | 87 | |||||||||||||||||||
obligations | ||||||||||||||||||||||||||
Other adjustments (2) (3) (4) (5) | 66 | 116 | 524 | 7 | 141 | 836 | 672 | |||||||||||||||||||
Income tax (expense) benefit related to above adjustments (6) | (357) | (635) | (555) | (171) | (35) | (253) | (761) | |||||||||||||||||||
Non-recurring tax items | 4 | (403) | 1 | - | 5 | 12 | 6 | |||||||||||||||||||
Non-GAAP Operating earnings (7) | $ | 568 | $ | 748 | $ | 600 | $ | 758 | $ | 818 | $ | 1,554 | $ | 2,176 | ||||||||||||
Notes: | ||||||||||||||||||||||||||
- Includes COVID-19 impact on Variable annuity product features due to a first quarter 2020 assumption update of $1.5 billion and other COVID-19 related impacts of $35 million for the nine months ended September 30, 2020.
- Includes separation costs of $25 million,$37 million,$62 million and $108 million for the three and nine months ended September 30, 2021 and 2020.
- Includes certain legal accruals related to the cost of insurance litigation of $180 million for the nine months ended September 30, 2021. No adjustment was made to prior period operating earnings as the impact was immaterial.
- Includes COVID-19 impact on Other adjustments due to a first quarter 2020 assumption update of $1.0 billion and other COVID-19 related impacts of $86 million for the nine months ended September 30, 2020.
- Includes Non-GMxB related derivative hedge losses of ($4) million, $10 million, $140 million, and ($461) million for the three and nine months ended September 30, 2021 and 2020.
- Includes income taxes of ($554) million for the above related COVID-19 items for the nine months ended September 30, 2020.
- This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer to the "Use of Non-GAAP Financial Measures" and "Glossary of Selected Financial
and Product Terms" sections of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the "Non-GAAP Reconciliation" section in this document.
3Q 2021 Financial Supplement | 5 |
Attachments
- Original document
- Permalink
Disclaimer
Equitable Holdings Inc. published this content on 02 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 November 2021 20:57:04 UTC.