On this page of StockholderLetter.com we present the latest annual shareholder letter from Equitable Holdings, Inc. — ticker symbol EQH. Reading current and past EQH letters to shareholders can bring important insights into the investment thesis.
20
23
Annual
Report
Our mission
To help our clients secure their
financial well-being so they can
pursue long and fulfilling lives
Our business principles
We have a passion
for our business
We work to the
highest standards
We treat everyone with
respect and dignity
We are stronger
as a team
We are a trusted
partner to our clients
2023 Equitable Holdings Annual Report
Dear fellow
shareholders,
2023 was a special year in Equitable   s
storied history. In our first five years as a
publicly listed company, we met every target
we laid out at the time of our IPO, held our
first Investor Day, honored our commitments
to clients and shared our growth strategy
alongside new five-year financial targets.
It was also a year of continued volatility and
uncertainty in the markets with fluctuating
interest rates, falling yet still stubborn
inflation and recovering equity markets.
Amidst this backdrop, our businesses
performed well, and we head into 2024
from a position of strength, backed by our
unique, integrated business model across
Retirement, Wealth Management and
Asset Management.
Mark Pearson
President and Chief
Executive Officer,
Equitable Holdings
Even more important, we continue to
make a difference in the lives of millions of
Americans. More than 11,000 Americans are
retiring every day, and the products, solutions
and advice we provide enable them to pursue
long and fulfilling lives. Following the passage
of the SECURE Act, alongside favorable
demographics and higher interest rates, we
have a tremendous growth opportunity in
front of us. And as we have proven through
various market cycles, our consistency of
execution, risk discipline and performance
culture will ensure we can continue to deliver
for our stakeholders for generations to come.
1
Solid results
amidst headwinds
This past year we delivered solid business results and cash generation,
despite headwinds. Full year Non-GAAP operating earnings were $1.7 billion,1
and we reported $930 billion in assets under management and administration,
an increase of 13% over the prior year, driven by strong organic growth in our
Retirement and Wealth Management businesses. We delivered $1.3 billion of
cash flow,2 in-line with guidance, and more than half of our cash flows now come
from non-insurance subsidiaries, which is up from 17% at our IPO in 2018.
Equitable had record net inflows of over $5 billion across our Retirement
businesses3 and $3 billion of advisory net inflows in our Wealth Management
business as we continue to benefit from Americans    need and desire for
financial advice. AllianceBernstein (AB) was not immune to industry-wide
pressures on net flows but closed the year with AUM up 12% to $725 billion,
driven by market tailwinds.
$1.7bn
$930bn
$1.7bn
$1.6bn
$1.3bn
$826bn
2022
2023
Non-GAAP
operating earnings
2022
2023
Assets under
management and
administration
2023
2022
Cash
flow
1 This is a Non-GAAP financial measure. For a reconciliation of this to the most directly comparable GAAP measure, see the section titled    Management   s Discussion and
Analysis of Financial Condition and Results of Operations     Key Operating Measures    on Form 10-K for the year ended December 31, 2023.
2 Cash flow is net dividends and distributions to Equitable Holdings from its subsidiaries.
3 Includes Individual Retirement and Group Retirement.
2
During our Investor Day in May, we shared our growth
strategy and five-year guidance with the market,
including new targets for cash generation, earnings
per share growth and payout ratio, all driven by
our advice, retirement and asset management
businesses. We made good progress against our
strategic initiatives     in our General Account, we
added $52m of incremental net investment income
through the fourth quarter, on track to meet or
exceed our $110m target by 2027. We also secured
$38 million in productivity savings and in 2025
expect to capture the remainder of the $75m of
annual run rate savings from AB   s move to Nashville.
Equitable Holdings closed the year with a combined
NAIC risk-based capital ratio of c.425%, above our
target range. In addition, the holding company
continues to have strong liquidity with a $2 billion
cash position. Our financial strength was also
recognized by S&P Global Ratings upgrading our
credit rating to A-, acknowledging our strong balance
sheet and growth of non-regulated cash flows. We
returned $1.2 billion of capital to shareholders, above
our target payout ratio of 60-70% of Non-GAAP
operating earnings. In December, Equitable Holdings
joined the S&P Midcap 400 Index, which tracks the
leading mid-cap companies in the U.S., increasing
our passive shareholder base as well as exposure to
active investors who use the index as a benchmark.
Strategy to drive long-term value
Defend & grow
core businesses
Scale adjacent
businesses
Seed future
growth
Be a force
for good
Key financial goals to 2027
Cash generation
Payout ratio
EPS growth
$2bn
60-70%
12-15%
of annual cash
generation by 2027
of Non-GAAP
operating earnings
Non-GAAP operating
EPS CAGR through 2027
Strategic targets support growth
$110m
$150m
$20bn
+350-500bps
Incremental GA
income by 2027
Productivity
savings by 2027
Cummulative capital
commitment to AB
Incremental adjusted
operating margin at AB by 2027
3
2023 Equitable Holdings Annual Report
Continued
financial strength
 • shareholder letter icon 4/9/2024 Letter Continued (Full PDF)
 • stockholder letter icon 4/11/2023 EQH Stockholder Letter
 • stockholder letter icon More "Insurance Brokers" Category Stockholder Letters
 • Benford's Law Stocks icon EQH Benford's Law Stock Score = 100


EQH Shareholder/Stockholder Letter Transcript:

20
23
Annual
Report

Our mission
To help our clients secure their
financial well-being so they can
pursue long and fulfilling lives
Our business principles
We have a passion
for our business
We work to the
highest standards
We treat everyone with
respect and dignity
We are stronger
as a team
We are a trusted
partner to our clients

2023 Equitable Holdings Annual Report
Dear fellow
shareholders,
2023 was a special year in Equitable   s
storied history. In our first five years as a
publicly listed company, we met every target
we laid out at the time of our IPO, held our
first Investor Day, honored our commitments
to clients and shared our growth strategy
alongside new five-year financial targets.
It was also a year of continued volatility and
uncertainty in the markets with fluctuating
interest rates, falling yet still stubborn
inflation and recovering equity markets.
Amidst this backdrop, our businesses
performed well, and we head into 2024
from a position of strength, backed by our
unique, integrated business model across
Retirement, Wealth Management and
Asset Management.
Mark Pearson
President and Chief
Executive Officer,
Equitable Holdings
Even more important, we continue to
make a difference in the lives of millions of
Americans. More than 11,000 Americans are
retiring every day, and the products, solutions
and advice we provide enable them to pursue
long and fulfilling lives. Following the passage
of the SECURE Act, alongside favorable
demographics and higher interest rates, we
have a tremendous growth opportunity in
front of us. And as we have proven through
various market cycles, our consistency of
execution, risk discipline and performance
culture will ensure we can continue to deliver
for our stakeholders for generations to come.
1

Solid results
amidst headwinds
This past year we delivered solid business results and cash generation,
despite headwinds. Full year Non-GAAP operating earnings were $1.7 billion,1
and we reported $930 billion in assets under management and administration,
an increase of 13% over the prior year, driven by strong organic growth in our
Retirement and Wealth Management businesses. We delivered $1.3 billion of
cash flow,2 in-line with guidance, and more than half of our cash flows now come
from non-insurance subsidiaries, which is up from 17% at our IPO in 2018.
Equitable had record net inflows of over $5 billion across our Retirement
businesses3 and $3 billion of advisory net inflows in our Wealth Management
business as we continue to benefit from Americans    need and desire for
financial advice. AllianceBernstein (AB) was not immune to industry-wide
pressures on net flows but closed the year with AUM up 12% to $725 billion,
driven by market tailwinds.
$1.7bn
$930bn
$1.7bn
$1.6bn
$1.3bn
$826bn
2022
2023
Non-GAAP
operating earnings
2022
2023
Assets under
management and
administration
2023
2022
Cash
flow
1 This is a Non-GAAP financial measure. For a reconciliation of this to the most directly comparable GAAP measure, see the section titled    Management   s Discussion and
Analysis of Financial Condition and Results of Operations     Key Operating Measures    on Form 10-K for the year ended December 31, 2023.
2 Cash flow is net dividends and distributions to Equitable Holdings from its subsidiaries.
3 Includes Individual Retirement and Group Retirement.
2

During our Investor Day in May, we shared our growth
strategy and five-year guidance with the market,
including new targets for cash generation, earnings
per share growth and payout ratio, all driven by
our advice, retirement and asset management
businesses. We made good progress against our
strategic initiatives     in our General Account, we
added $52m of incremental net investment income
through the fourth quarter, on track to meet or
exceed our $110m target by 2027. We also secured
$38 million in productivity savings and in 2025
expect to capture the remainder of the $75m of
annual run rate savings from AB   s move to Nashville.
Equitable Holdings closed the year with a combined
NAIC risk-based capital ratio of c.425%, above our
target range. In addition, the holding company
continues to have strong liquidity with a $2 billion
cash position. Our financial strength was also
recognized by S&P Global Ratings upgrading our
credit rating to A-, acknowledging our strong balance
sheet and growth of non-regulated cash flows. We
returned $1.2 billion of capital to shareholders, above
our target payout ratio of 60-70% of Non-GAAP
operating earnings. In December, Equitable Holdings
joined the S&P Midcap 400 Index, which tracks the
leading mid-cap companies in the U.S., increasing
our passive shareholder base as well as exposure to
active investors who use the index as a benchmark.
Strategy to drive long-term value
Defend & grow
core businesses
Scale adjacent
businesses
Seed future
growth
Be a force
for good
Key financial goals to 2027
Cash generation
Payout ratio
EPS growth
$2bn
60-70%
12-15%
of annual cash
generation by 2027
of Non-GAAP
operating earnings
Non-GAAP operating
EPS CAGR through 2027
Strategic targets support growth
$110m
$150m
$20bn
+350-500bps
Incremental GA
income by 2027
Productivity
savings by 2027
Cummulative capital
commitment to AB
Incremental adjusted
operating margin at AB by 2027
3
2023 Equitable Holdings Annual Report
Continued
financial strength



shareholder letter icon 4/9/2024 Letter Continued (Full PDF)
 

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