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Jun 30, 2020
Equitable Holdings Q2 2020 Earnings Report
Equitable Holdings' Q2 2020 results demonstrated business model resilience and manageable COVID-19 impacts.
Key Takeaways
Equitable Holdings reported a GAAP Net loss of $4.0 billion, or $8.96 per common share, but a Non-GAAP operating earnings of $459 million, or $1.00 per common share. The company's assets under management grew by 3% year-over-year to $711 billion. They returned $102 million to shareholders in Q2, and $376 million YTD.
Total AUM was $711 billion, a year-over-year increase of 3%.
Net loss attributable to Holdings for the second quarter of 2020 was $(4.0) billion.
Non-GAAP operating earnings in the second quarter of 2020 was $459 million.
Combined RBC ratio of approximately 415%, reflecting $1.2 billion distribution from Equitable Financial in May.
Revenue by Segment
Forward Guidance
The Company currently estimates a net operating earnings impact of $30-60 million per 100,000 excess COVID-19 related deaths. Holdings is revising its prior guidance related to Variable annuity product features from $700 million to $1.0-1.3 billion per annum assuming a base case scenario of 6.5% equity markets and interest rates increasing 10 basis points. Holdings is revising its prior guidance related to Variable annuity product features from $700 million to $1.0-1.3 billion per annum assuming a base case scenario of 6.5% equity markets and interest rates increasing 10 basis points
Positive Outlook
- Achieved net savings run rate of $68 million
- The Company remains on track to deliver $75 million pre-tax productivity gains, net of reinvestment, by year-end
- Holdings recognized an incremental $25 million of expense savings relative to expectations in the second quarter
- Completed execution of the Company’s general account rebalance in the third quarter of 2019
- Delivered the $160 million annualized net investment income goal.
Challenges Ahead
- net operating earnings impact of $30-60 million per 100,000 excess COVID-19 related deaths
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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