Equitable Holdings, Inc. (EQH) Bundle
A Brief History of Equitable Holdings, Inc.
Company Overview
Equitable Holdings, Inc. (EQH) operates in the financial services sector, primarily focusing on retirement, investment, and protection solutions. As of September 30, 2024, the company reported total assets of approximately $106.5 billion, a significant increase compared to prior periods, driven largely by market appreciation and strategic growth initiatives.
Financial Performance
For the three months ended September 30, 2024, Equitable Holdings recorded a net income loss of $134 million, a significant downturn from a net income of $1.1 billion during the same period in 2023. The loss was attributed to various unfavorable items including net derivative losses that increased by $1.3 billion and changes in market risk benefits totaling $896 million.
Assets Under Management
Total Assets Under Management (AUM) reached $805.9 billion as of September 30, 2024, marking an increase of $80.7 billion or 11.1% from December 31, 2023. This growth was fueled by market appreciation of $78.2 billion and net inflows of $2.5 billion.
Share Repurchase Programs
On February 5, 2024, the Board of Directors authorized a new $1.3 billion share repurchase program. As of September 30, 2024, approximately $706 million remained in the capacity of this program. The company repurchased 6.2 million shares during the three months ended September 30, 2024, at an average price of $40.92.
Segment Performance
The Protection Solutions segment, which includes life insurance products, reported operating earnings of $46 million for the three months ended September 30, 2024, compared to $34 million in the same period of the previous year. Revenues from this segment totaled $839 million.
Comprehensive Income
Equitable Holdings reported comprehensive income of $2.1 billion for the three months ended September 30, 2024, compared to a comprehensive loss of $1.5 billion in the same quarter of 2023. This was driven by significant changes in unrealized gains and losses.
Equity and Dividends
As of September 30, 2024, the total equity attributable to Holdings was approximately $4.975 billion. The company declared cash dividends on common stock of $0.70 per share, amounting to $227 million.
Investment Portfolio
The investment portfolio primarily consists of fixed maturities, which totaled $81.7 billion as of September 30, 2024. The yield on fixed maturities for the nine months ended September 30, 2024, was reported at 4.40%, reflecting an upward trend in interest rates.
| Financial Metric | September 30, 2024 | December 31, 2023 | September 30, 2023 |
|---|---|---|---|
| Total Assets | $106.5 billion | $74.0 billion | $93.6 billion |
| Net Income (Loss) | ($134 million) | $2.0 billion | $1.1 billion |
| Assets Under Management (AUM) | $805.9 billion | $725.2 billion | $725.4 billion |
| Comprehensive Income (Loss) | $2.1 billion | ($1.5 billion) | $1.4 billion |
| Common Stock Dividends | $0.70 per share | $0.64 per share | $0.22 per share |
A Who Owns Equitable Holdings, Inc. (EQH)
Ownership Structure
As of September 30, 2024, the ownership structure of Equitable Holdings, Inc. (EQH) is as follows:
| Owner | Percentage Ownership |
|---|---|
| EQH and its subsidiaries | 60.0% |
| AB Holding | 39.3% |
| Unaffiliated holders | 0.7% |
| Total | 100.0% |
Including both the general partnership and limited partnership interests in AB Holding and ABLP, Holdings and its subsidiaries had an approximate 61.6% economic interest in AB as of September 30, 2024.
Institutional Ownership
As of the latest report, institutional ownership of Equitable Holdings, Inc. is significant, with major stakeholders including:
| Institution | Shares Owned (in millions) | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 34.2 | 10.7% |
| BlackRock, Inc. | 30.5 | 9.4% |
| State Street Corporation | 20.8 | 6.4% |
| Wellington Management Group LLP | 15.6 | 4.8% |
| Invesco Ltd. | 12.7 | 3.9% |
Shareholder Dynamics
Equitable Holdings has seen active engagement in share repurchase programs, reflecting its commitment to enhance shareholder value. In 2024, the company authorized a $1.3 billion share repurchase program, with approximately $706 million remaining as of September 30, 2024.
Financial Performance
For the nine months ended September 30, 2024, Equitable Holdings reported:
- Net income of $808 million
- Comprehensive income attributable to Holdings of $1.916 billion
- Cash dividends paid on common stock totaling $227 million
The company's stock performance has also been noteworthy with a diluted earnings per share (EPS) of $1.08 for the nine months ended September 30, 2024.
Conclusion on Ownership and Financials
The strategic ownership structure and institutional backing of Equitable Holdings, Inc. are indicative of its robust market position. The company's financial performance continues to reflect strong operational capabilities and shareholder value initiatives.
Equitable Holdings, Inc. (EQH) Mission Statement
Mission Statement Overview
Equitable Holdings, Inc. is committed to empowering individuals and businesses to achieve financial well-being through innovative financial solutions. The company aims to deliver holistic financial services that include retirement, asset management, and protection solutions.
Core Values
- Integrity: Upholding ethical standards in all dealings.
- Collaboration: Working together to achieve common goals.
- Innovation: Continuously improving and adapting products to meet client needs.
- Client Focus: Prioritizing the financial success and well-being of clients.
Financial Performance
As of September 30, 2024, Equitable Holdings reported total assets of $298.989 billion and total liabilities of $292.791 billion, reflecting a solid financial foundation.
| Financial Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $298.989 billion | $276.814 billion |
| Total Liabilities | $292.791 billion | $271.656 billion |
| Total Equity | $4.975 billion | $4.388 billion |
| Net Income (Loss) | $26 million | $1.135 billion |
| Earnings Per Share (Basic) | $(0.47) | $3.03 |
Revenue Breakdown
For the nine months ended September 30, 2024, Equitable Holdings generated revenues totaling $8.816 billion, with the following breakdown:
| Revenue Source | Amount (in millions) |
|---|---|
| Policy Charges and Fee Income | $1,857 |
| Premiums | $870 |
| Investment Management and Service Fees | $3,805 |
| Other Income | $989 |
Dividends and Shareholder Returns
Equitable Holdings has demonstrated a commitment to returning value to shareholders through dividends. In 2024, the company declared an ordinary dividend of $441 million from Equitable America, with an extraordinary dividend of $300 million approved in June 2024.
Investment Portfolio
The company's investment portfolio is diversified, with a focus on fixed maturities, equities, and alternative investments. As of September 30, 2024, the portfolio included:
| Investment Category | Amortized Cost (in millions) | Fair Value (in millions) |
|---|---|---|
| Corporate Fixed Maturities | $49,786 | $44,742 |
| U.S. Treasury, Government and Agency | $5,735 | $4,631 |
| Residential Mortgage-Backed Securities | $2,470 | $2,355 |
| Commercial Mortgage-Backed | $3,978 | $3,655 |
How Equitable Holdings, Inc. (EQH) Works
Business Overview
Equitable Holdings, Inc. operates primarily in the financial services sector, providing a variety of investment and insurance products. The company focuses on individual and group retirement solutions, asset management, and protection solutions.
Financial Performance
As of September 30, 2024, Equitable Holdings reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Income (Loss) | $26 million | $1,135 million | $808 million | $2,232 million |
| Comprehensive Income (Loss) | $2,084 million | $(1,532) million | $1,997 million | $1,420 million |
| Total Revenues | $3,076 million | $3,624 million | $8,816 million | $8,358 million |
| Total Assets | $298,989 million | $276,814 million |
Investment Portfolio
Equitable Holdings maintains a diversified investment portfolio which includes:
| Asset Class | Amortized Cost (Sept 30, 2024) | Fair Value (Sept 30, 2024) |
|---|---|---|
| Fixed Maturities | $81,681 million | $76,245 million |
| Mortgage Loans | $19,238 million | |
| Other Equity Investments | $3,540 million |
Capital Management
Equitable Holdings has a robust capital management strategy, focusing on maintaining sufficient capital to support its insurance subsidiaries. As of September 30, 2024, the capital capacity for dividends from Equitable America was $441 million, with an extraordinary dividend of $300 million approved in June 2024.
Segment Performance
As of September 30, 2024, total assets by segment were reported as follows:
| Segment | Total Assets (in millions) |
|---|---|
| Individual Retirement | $107,610 million |
| Group Retirement | $51,790 million |
| Asset Management | $10,405 million |
| Protection Solutions | $42,012 million |
| Wealth Management | $291 million |
| Legacy | $45,851 million |
| Corporate and Other | $41,030 million |
Debt Obligations
Equitable Holdings has various debt obligations, including borrowings under the EQH Facility and other credit facilities. As of September 30, 2024, the company had:
| Debt Type | Outstanding Amount (in millions) | Interest Rate |
|---|---|---|
| EQH Facility | $500 million | 4.8% |
| Other Long-term Debt | $600 million | 5.3% |
Investment Income
For the nine months ended September 30, 2024, Equitable Holdings reported the following investment income metrics:
| Investment Type | Yield (%) | Income (in millions) |
|---|---|---|
| Fixed Maturities | 4.40% | $2,544 million |
| Mortgages | 5.12% | $718 million |
| Policy Loans | 5.27% | $167 million |
Insurance Operations
Equitable Holdings operates through its insurance subsidiaries, which are regulated by the NYDFS and Arizona Department of Insurance. The company’s insurance segments are subject to various capital requirements and limitations on dividend payments, ensuring financial stability and compliance with regulatory standards.
How Equitable Holdings, Inc. (EQH) Makes Money
Revenue Streams
Equitable Holdings, Inc. generates revenue through several key segments:
- Individual Retirement
- Group Retirement
- Asset Management
- Protection Solutions
- Wealth Management
- Legacy
Financial Performance Overview
As of September 30, 2024, Equitable Holdings reported total revenues of $8,816 million, an increase from $8,358 million in the same period of 2023. The breakdown of revenues by segment is as follows:
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) |
|---|---|---|
| Individual Retirement | $2,678 | $2,130 |
| Group Retirement | $889 | $771 |
| Asset Management | $3,230 | $3,043 |
| Protection Solutions | $2,498 | $2,373 |
| Wealth Management | $1,315 | $1,143 |
| Legacy | $369 | $405 |
| Corporate and Other | $720 | $800 |
Investment Income
Equitable's net investment income for the nine months ended September 30, 2024, was $3,694 million, compared to $3,097 million in 2023. This growth is attributed to higher average asset balances and investment yields.
Policyholder Benefits and Expenses
In terms of expenses, policyholder benefits amounted to $2,007 million for the nine months ended September 30, 2024, down from $2,107 million in 2023. The overall benefits and other deductions totaled $7,902 million in 2024, up from $6,803 million in 2023.
Net Income and Earnings Per Share
Equitable Holdings reported a net income of $808 million for the nine months ended September 30, 2024, compared to $2,232 million in the previous year. The diluted earnings per share (EPS) were $1.08 for Q3 2024, down from $5.47 in Q3 2023. The net income available to common shareholders was $(148) million for Q3 2024, compared to $1,050 million in Q3 2023.
Dividends and Shareholder Returns
In 2024, Equitable declared cash dividends on common stock at $0.70 per share, amounting to a total of $227 million. The company also paid out $54 million in preferred stock dividends.
Assets Under Management
As of September 30, 2024, Equitable Holdings managed total assets of $298,989 million, an increase from $276,814 million at the end of 2023. The breakdown of total assets by segment is presented below:
| Segment | Total Assets (in millions) |
|---|---|
| Individual Retirement | $107,610 |
| Group Retirement | $51,790 |
| Asset Management | $10,405 |
| Protection Solutions | $42,012 |
| Wealth Management | $291 |
| Legacy | $45,851 |
| Corporate and Other | $41,030 |
Key Financial Ratios
Equitable Holdings reported a non-GAAP operating return on equity (ROE) of 21.2% and a non-GAAP operating common EPS of $4.37 for the nine months ended September 30, 2024.
The company continues to leverage its diverse portfolio across various financial products and investment strategies to generate revenue and enhance shareholder value.
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Resources:
- Equitable Holdings, Inc. (EQH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Equitable Holdings, Inc. (EQH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Equitable Holdings, Inc. (EQH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.