Q2 2024 Equitable Holdings Inc Earnings Call Transcript
Key Points
- Equitable Holdings Inc (EQH) reported non-GAAP operating earnings of $494 million or $1.43 per share, up 23% year-over-year.
- Assets under management and administration increased 11% year-over-year to $986 billion, supported by favorable markets and positive net inflows.
- The company returned $325 million to shareholders during the quarter, maintaining a 65% payout ratio within their target range of 60% to 70%.
- Equitable Holdings Inc (EQH) received inflows from the first four BlackRock LifePath Paycheck clients, totaling over $500 million, marking a significant milestone.
- The company is on track to generate $1.4 billion to $1.5 billion of cash in 2024, with approximately 50% of this coming from non-insurance businesses.
- Individual Retirement spreads have likely peaked, with less tailwind expected from higher interest rates.
- Group Retirement business showed negative flows when excluding the LifePath inflows, indicating challenges in certain market segments.
- The company faces quarterly volatility in its Protection segment due to large face amounts and retention.
- There is uncertainty regarding the timing and size of future inflows from the BlackRock LifePath Paycheck product.
- The company is exploring multiple solutions to reduce mortality volatility in its Protection segment, but no material updates are expected until early 2025.
Thank you for standing by. My name is Bailey, and I will be your conference operator today. At this time, I would like to welcome everyone to the Equitable Holdings 2024 second quarter earnings results Conference Call. (Operator Instructions) After the speaker's remarks, there will be a question-and-answer session. (Operator Instructions).
I would now like to turn the call over to Erik Bass, Head of Investor Relations. You may begin
Thank you. Good morning, and welcome to Equitable Holdings' second quarter 2024 earnings call. Material for today's call can be found on our website at ir.equitableholdings.com.
Before we begin, I would like to note that some of the information we present today is forward-looking and subject to certain SEC rules and regulations regarding disclosure. Our results may differ materially from those expressed in or indicated by such forward-looking statements. Please refer to the safe harbor language on slide two of our presentation for additional information.
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