On July 30, 2024, Equitable Holdings Inc (EQH, Financial) released its 8-K filing reporting financial results for the second quarter ended June 30, 2024. Equitable Holdings Inc is a financial services company in the U.S. that provides variable annuities, tax-deferred investment and retirement plans, employee benefits, and protection solutions for individuals, families, and small businesses. Its business segments include Individual Retirement, Group Retirement, Investment Management and Research, Protection Solutions, Wealth Management, and Legacy.
Performance Overview
Equitable Holdings Inc (EQH, Financial) reported net income of $428 million, or $1.23 per share, for the second quarter of 2024, aligning with analyst estimates of $1.23 per share. The company also reported non-GAAP operating earnings of $494 million, or $1.43 per share, surpassing the analyst estimate of $1.39 per share. Adjusting for notable items, non-GAAP operating earnings were $525 million, or $1.52 per share.
Revenue for the quarter was $3,812.83 million, meeting the analyst estimate. The company achieved net inflows of $2.3 billion in Retirement, $1.5 billion in Wealth Management, and $0.9 billion in Asset Management, demonstrating robust organic growth across its business segments.
Financial Achievements and Challenges
Equitable Holdings Inc (EQH, Financial) highlighted several key financial achievements in its earnings report. The company returned $325 million to shareholders, maintaining its payout ratio target of 60-70%. Additionally, the company reported a resilient balance sheet with a combined NAIC RBC ratio of approximately 425-450%, above its target range of 375-400%.
“Equitable’s second quarter results highlight the building growth momentum across the company. Non-GAAP operating earnings per share of $1.43 increased 23% from the prior year quarter and was up 20% excluding notable items,” said Mark Pearson, President and Chief Executive Officer.
Despite these achievements, the company faced challenges, including a decrease in net income attributable to Holdings from $759 million in Q2 2023 to $428 million in Q2 2024. This decline was primarily due to market conditions and other external factors impacting the company's performance.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Assets Under Management/Administration (AUM/A, in billions) | $986 | $887 |
| Net Income Attributable to Holdings | $428 million | $759 million |
| Non-GAAP Operating Earnings | $494 million | $441 million |
| Non-GAAP Operating Earnings per Common Share (EPS) | $1.43 | $1.17 |
Business Segment Performance
The Individual Retirement segment reported net inflows of $1.9 billion and a 23% increase in first-year premiums over the prior year quarter. The Group Retirement segment saw net inflows of $408 million, primarily from the institutional channel. The Asset Management segment, represented by AllianceBernstein, reported net inflows of $0.9 billion, driven by the retail channel and strength in fixed income.
The Protection Solutions segment reported $784 million in gross written premiums, with a 14% increase in accumulation-oriented VUL first-year premiums and a 16% increase in Employee Benefits first-year premiums. The Wealth Management segment reported advisory net inflows of $1.5 billion, driven by higher sales.
Capital Management and Shareholder Value
Equitable Holdings Inc (EQH, Financial) returned $325 million to shareholders, including $78 million in quarterly cash dividends and $247 million in share repurchases. The company maintained a strong financial condition with a combined NAIC RBC ratio of approximately 425-450%, above its target range of 375-400%.
Equitable Holdings Inc (EQH, Financial) remains on track to achieve its 2027 strategic targets, including $150 million in net expense savings and $110 million in incremental general account investment income.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Equitable Holdings Inc for further details.
