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Mar 31, 2020
Equitable Holdings Q1 2020 Earnings Report
Equitable Holdings reported first quarter results with net income of $5.4 billion and non-GAAP operating earnings of $515 million.
Key Takeaways
Equitable Holdings reported a strong first quarter in 2020, marked by a net income of $5.4 billion and non-GAAP operating earnings of $515 million. The company's balance sheet and business model demonstrated resilience amidst an uncertain economic outlook, with a robust RBC ratio. AUM was $646 billion, down 3% year-over-year.
Net income attributable to Holdings was $5.4 billion, or $11.65 per common share.
Non-GAAP operating earnings were $515 million, or $1.08 per common share.
The company returned $274 million to shareholders through dividends and share repurchases.
RBC ratio was between 450-475%, exceeding the minimum target.
Revenue by Segment
Forward Guidance
Equitable Holdings expects to continue delivering on its 50-60% target payout ratio.
Positive Outlook
- Individual Retirement first year premiums improved year-over-year driven by 11% growth in Structured Capital Strategies (“SCS”) sales.
- Group Retirement generated net flows of $128 million, an increase of 20% year-over-year driven by 10% growth in gross premiums.
- Investment Management and Research (AllianceBernstein or “AB”) reported retail gross sales of $24.2 billion, the highest in its history.
- Protection Solutions continues to drive momentum in its Employee Benefits business with strong year-over-year growth in gross premiums.
- Achieved net savings run-rate of $57 million, and we remain on track to deliver $75 million pre-tax productivity gains, net of reinvestment, by year-end.
Challenges Ahead
- Account value decreased 9% driven primarily by equity market declines over the prior three months.
- Net outflows of $320 million increased compared to the first quarter of 2019 as anticipated outflows from the fixed rate living benefits block of $935 million were partially offset by $615 million of net inflows from our current product offering of less capital-intensive products.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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