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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.
Equitable Holdings
Equitable Holdings
Equitable Holdings Revenue by Segment
Revenue by Segment
Individual Retirement Revenue
CapyFin.comGroup Retirement Revenue
CapyFin.comAsset Management Revenue
CapyFin.comProtection Solutions Revenue
CapyFin.comCorporate and Other Revenue
CapyFin.com 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.
- Account value decreased 5% driven primarily by equity market declines over the prior three months.
- AUM decreased by 2% as net inflows over the prior twelve months were offset by market depreciation.
- First quarter net outflows of $5.6 billion were driven by outflows in retail fixed income, partially offset by active equity and institutional inflows.
Revenue & Expenses
Visualization of income flow from segment revenue to net income