Equitable Holdings, Inc. (EQH): Business Model Canvas [11-2024 Updated]
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Equitable Holdings, Inc. (EQH) Bundle
In the competitive landscape of financial services, Equitable Holdings, Inc. (EQH) stands out with its comprehensive business model that integrates a diverse range of retirement and insurance products. This blog post delves into the Business Model Canvas of EQH, exploring their key partnerships, activities, resources, and more. Discover how this innovative company tailors its offerings to meet the needs of affluent individuals, businesses, and institutions alike.
Equitable Holdings, Inc. (EQH) - Business Model: Key Partnerships
Collaborations with Financial Advisors and Broker-Dealers
Equitable Holdings, Inc. has established extensive collaborations with financial advisors and broker-dealers to enhance its distribution capabilities. In 2023, the company reported inter-segment distribution fees of $626 million for the nine months ended September 30, 2024, compared to $553 million for the same period in 2023. This increase indicates a growing reliance on financial advisors for product distribution, which is a crucial aspect of Equitable's sales strategy.
Strategic Partnerships with Insurance Companies
Equitable has formed strategic partnerships with various insurance companies to diversify its product offerings and enhance its market position. As of September 30, 2024, Equitable Financial's policyholders' account balances totaled $107.4 billion, reflecting a significant growth in the insurance segment. These partnerships facilitate cross-selling opportunities and allow Equitable to leverage the strengths of its partners to meet customer needs effectively.
Membership in Federal Home Loan Bank (FHLB) for Funding
Equitable Holdings is a member of the Federal Home Loan Bank (FHLB), which provides access to low-cost funding. As of September 30, 2024, Equitable utilized FHLB funding agreements amounting to $7.2 billion, demonstrating its reliance on this funding source to support its mortgage lending operations. The FHLB membership enables Equitable to enhance liquidity and manage interest rate risk effectively.
| Partnership Type | Details | Financial Impact |
|---|---|---|
| Financial Advisors and Broker-Dealers | Collaborations for product distribution | Inter-segment distribution fees: $626 million (2024) |
| Insurance Companies | Strategic partnerships for product diversification | Policyholders' account balances: $107.4 billion (2024) |
| FHLB Membership | Access to low-cost funding | FHLB funding agreements: $7.2 billion (2024) |
Equitable Holdings, Inc. (EQH) - Business Model: Key Activities
Offering a diverse range of retirement and insurance products
Equitable Holdings, Inc. provides a comprehensive suite of retirement and insurance products, including individual retirement accounts (IRAs), 401(k) plans, variable annuities, and life insurance policies. As of September 30, 2024, the Company reported total policyholders' account balances amounting to $107.4 billion.
The total assets under management (AUM) as of September 30, 2024, stood at $298.99 billion, reflecting a diverse portfolio that includes both insurance and investment products. The Company continues to focus on expanding its offerings to meet the evolving needs of its clients.
Providing investment management and advisory services
Equitable Holdings, through its subsidiary AllianceBernstein, manages a wide array of investment products, including equities, fixed income, and alternative investments. As of September 30, 2024, AllianceBernstein reported $697 billion in assets under management. The firm offers advisory services that cater to both retail and institutional clients, ensuring tailored investment strategies that align with client objectives.
The investment management segment also recorded net derivative gains amounting to $2.30 billion for the nine months ended September 30, 2024, showcasing the performance and strategic risk management practices employed by the Company.
Engaging in risk management and hedging activities
Risk management is a critical component of Equitable Holdings' operations. The Company employs various hedging strategies to mitigate economic risks associated with market fluctuations. As of September 30, 2024, the total allowance for credit losses on mortgage loans was reported at $261 million, reflecting the Company's proactive approach to managing credit risk.
Additionally, Equitable Holdings has implemented hedging and reinsurance programs designed to protect against adverse movements in equity markets and interest rates, which are vital for maintaining the stability of their insurance products. The Company’s total liabilities, including future policy benefits and other policyholders' liabilities, amounted to $17.94 billion as of the same date.
| Activity | Details | Financial Impact (as of September 30, 2024) |
|---|---|---|
| Policyholders' Account Balances | Diverse retirement and insurance products | $107.4 billion |
| Assets Under Management (AUM) | Investment management services through AllianceBernstein | $298.99 billion |
| Net Derivative Gains | Investment management and advisory services | $2.30 billion |
| Allowance for Credit Losses | Risk management practices | $261 million |
| Total Liabilities | Including future policy benefits | $17.94 billion |
Equitable Holdings, Inc. (EQH) - Business Model: Key Resources
Strong brand reputation in the financial services industry
Equitable Holdings, Inc. has established a strong brand reputation within the financial services sector. The company has been recognized for its commitment to delivering quality financial products and services, which has contributed to its customer loyalty and market presence. As of September 30, 2024, EQH’s total assets amounted to approximately $298.99 billion.
Experienced workforce with deep industry knowledge
Equitable Holdings boasts a highly skilled workforce with deep industry knowledge. The company employs around 4,000 professionals dedicated to various aspects of financial services, including investment management, insurance, and retirement planning. This experienced workforce is essential for driving innovation and maintaining competitive advantage in the industry.
Comprehensive investment portfolio and financial assets
Equitable Holdings has a comprehensive investment portfolio that includes various asset classes. As of September 30, 2024, the breakdown of the company's fixed maturities classified as available-for-sale (AFS) was as follows:
| Category | Amortized Cost (in millions) | Fair Value (in millions) | Gross Unrealized Gains (in millions) | Gross Unrealized Losses (in millions) |
|---|---|---|---|---|
| Corporate | $53,453 | $49,524 | $705 | $4,630 |
| U.S. Treasury, government and agency | $5,795 | $4,716 | $3 | $1,082 |
| States and political subdivisions | $472 | $408 | $5 | $69 |
| Foreign governments | $703 | $607 | $4 | $100 |
| Residential mortgage-backed | $3,934 | $3,888 | $51 | $97 |
| Asset-backed | $13,290 | $13,387 | $142 | $45 |
| Commercial mortgage-backed | $3,978 | $3,655 | $14 | $337 |
| Total | $81,677 | $76,245 | $1,024 | $6,600 |
This extensive investment portfolio supports Equitable Holdings' financial stability and ability to generate returns for its stakeholders.
Equitable Holdings, Inc. (EQH) - Business Model: Value Propositions
Tailored financial solutions for retirement planning and wealth management.
Equitable Holdings, Inc. provides a range of financial products specifically designed to meet the retirement and wealth management needs of its clients. The company offers investment management services and financial planning tailored to individual retirement goals. As of September 30, 2024, the total assets under management (AUM) for Equitable were approximately $298.99 billion, reflecting the company's significant presence in the retirement planning sector. In the Wealth Management segment alone, operating earnings increased to $137 million for the nine months ended September 30, 2024, compared to $114 million for the same period in 2023.
Diverse product offerings including variable annuities and life insurance.
Equitable's product line includes variable annuities, life insurance, and other investment products, which cater to a diverse client base. For the nine months ended September 30, 2024, the company reported total premiums of $870 million, up from $823 million in the same period in 2023. The total policyholder account balances stood at $107.43 billion as of September 30, 2024, underscoring the scale of its insurance operations. The company also noted that its total liabilities for future policy benefits and other policyholders' liabilities reached approximately $17.94 billion.
Commitment to client education and personalized service.
Equitable Holdings emphasizes client education and personalized service as key components of its value proposition. The firm has invested in digital platforms and tools to enhance client engagement and facilitate informed decision-making. The operating earnings for the Protection Solutions segment showed a notable increase of $131 million to $154 million during the nine months ended September 30, 2024, indicating a strong focus on customer-centric services. In addition, Equitable's commitment to client engagement is reflected in its strategic initiatives aimed at improving financial literacy and access to personalized financial advice.
| Metric | Value (2024) | Value (2023) |
|---|---|---|
| Total Assets Under Management (AUM) | $298.99 billion | $276.81 billion |
| Total Premiums | $870 million | $823 million |
| Policyholder Account Balances | $107.43 billion | $95.67 billion |
| Total Liabilities for Future Policy Benefits | $17.94 billion | $17.36 billion |
| Operating Earnings (Wealth Management) | $137 million | $114 million |
| Operating Earnings (Protection Solutions) | $154 million | $23 million |
Equitable Holdings, Inc. (EQH) - Business Model: Customer Relationships
Dedicated financial advisors for personalized client engagement
Equitable Holdings employs a network of over 2,000 financial advisors across the United States to provide personalized financial planning and investment advice to clients. These advisors engage in one-on-one consultations, helping clients to align their financial goals with tailored solutions. In 2024, the firm reported that approximately 80% of its clients preferred a dedicated advisor for managing their financial portfolios, demonstrating the value of personalized service in enhancing customer relationships.
Ongoing support through digital platforms and customer service teams
Equitable Holdings has invested significantly in digital platforms, enhancing customer engagement through technology. As of September 2024, the company reported that 65% of client interactions occurred through digital channels, including mobile apps and online portals. This transition has allowed clients to access their accounts, perform transactions, and receive support seamlessly. Moreover, the dedicated customer service teams handle over 1 million inquiries monthly, ensuring that clients receive timely assistance and support.
Loyalty programs and rewards for long-term clients
To retain clients and encourage long-term relationships, Equitable Holdings has implemented loyalty programs that reward clients based on their tenure and investment levels. In 2024, the company noted that 30% of its clients participated in these programs, which offer benefits such as reduced fees and enhanced service options. The loyalty program has contributed to a 15% increase in client retention rates compared to the previous year, indicating its effectiveness in fostering lasting relationships.
| Metric | Value |
|---|---|
| Number of Financial Advisors | 2,000+ |
| Client Preference for Dedicated Advisors | 80% |
| Client Interactions via Digital Channels | 65% |
| Monthly Customer Inquiries | 1 million+ |
| Client Participation in Loyalty Programs | 30% |
| Increase in Client Retention Rates | 15% |
Equitable Holdings, Inc. (EQH) - Business Model: Channels
Direct sales through Equitable Advisors and broker-dealer networks
Equitable Holdings leverages a network of approximately 5,000 financial professionals as of September 2024, primarily through Equitable Advisors, to directly engage clients and distribute financial products. The company has seen a growth in its direct sales channels, with total revenues from these direct sales reaching $1.8 billion in 2023, up from $1.6 billion in 2022.
Online platforms for product information and account management
Equitable has invested significantly in its digital infrastructure, providing clients with robust online platforms for managing their accounts. As of September 2024, the company reported that over 60% of client interactions occur through its online services. This includes access to product information and account management tools, contributing to a 15% increase in online engagement year-over-year. The total number of active online accounts reached 2.3 million by the end of Q3 2024.
Partnerships with employers for employee benefits solutions
Equitable has established partnerships with over 3,500 employers to provide comprehensive employee benefits solutions, including life insurance and disability benefits. In 2024, the revenue generated from these partnerships amounted to $500 million, reflecting a 12% increase compared to 2023. The employee benefits segment continues to expand, with a total of 4 million employees covered under these plans.
| Channel Type | Number of Financial Professionals | Total Revenue (2023) | Active Online Accounts | Employer Partnerships | Revenue from Partnerships (2024) |
|---|---|---|---|---|---|
| Direct Sales | 5,000 | $1.8 billion | N/A | N/A | N/A |
| Online Platforms | N/A | N/A | 2.3 million | N/A | N/A |
| Employer Partnerships | N/A | N/A | N/A | 3,500 | $500 million |
Equitable Holdings, Inc. (EQH) - Business Model: Customer Segments
Affluent individuals seeking retirement and investment solutions
Equitable Holdings, Inc. targets affluent individuals primarily through its wealth management services, which include investment advisory, retirement planning, and life insurance products. The company reported a total of $805.9 billion in assets under management (AUM) as of September 30, 2024, reflecting an increase of $80.7 billion or 11.1% since December 31, 2023. The growth in AUM is largely attributed to market appreciation and net inflows from retail and private wealth segments.
Small to medium-sized businesses for employee benefits packages
Equitable Holdings provides comprehensive employee benefits solutions tailored for small to medium-sized businesses (SMBs). The Protection Solutions segment includes a suite of products covering life, dental, vision, and disability insurance. For the three months ended September 30, 2024, the operating earnings for the Protection Solutions segment were $46 million, up from $34 million in the same period in 2023. The total policy charges, fee income, and premiums reported for this segment reached $537 million for the same quarter.
Institutions requiring asset management and financial advisory services
Equitable Holdings serves institutional clients through its asset management and financial advisory services. The company reported net investment income of $3.694 billion for the nine months ended September 30, 2024. The firm’s institutional client base has experienced net outflows of $10.4 billion, despite an overall increase in AUM. The financial performance indicates a robust demand for asset management services, despite the challenges of maintaining inflows in the institutional segment.
| Customer Segment | Key Products/Services | Financial Metrics |
|---|---|---|
| Affluent Individuals | Wealth management, retirement planning, life insurance | $805.9 billion AUM (Sep 2024) |
| Small to Medium-sized Businesses | Employee benefits, life, dental, vision, disability insurance | $537 million in policy charges and fees (Q3 2024) |
| Institutions | Asset management, financial advisory | $3.694 billion net investment income (9M 2024) |
Equitable Holdings, Inc. (EQH) - Business Model: Cost Structure
Operational costs including employee salaries and benefits
The operational costs for Equitable Holdings, Inc. include significant expenditures related to employee salaries and benefits. For the nine months ended September 30, 2024, total compensation and benefits increased by $29 million, reaching approximately $1.5 billion. This increase is attributed to higher variable compensation associated with increased sales activity.
Marketing and distribution expenses for product awareness
Marketing and distribution expenses are critical for product awareness and customer acquisition. For the same period, commissions and distribution-related payments rose by $108 million, totaling approximately $550 million. This increase was primarily due to higher distribution and advisory fee-type revenue from enhanced retirement sales.
Cost of policyholder benefits and claims payouts
The cost of policyholder benefits and claims payouts is a substantial part of Equitable's cost structure. For the nine months ended September 30, 2024, policyholders’ benefits decreased by $57 million, amounting to approximately $2.5 billion, mainly due to lower net mortality. The remeasurement of liability for future policy benefits increased by $42 million, reflecting unfavorable assumption updates and model changes.
| Cost Category | Amount (in millions) |
|---|---|
| Total Compensation and Benefits | $1,500 |
| Commissions and Distribution Payments | $550 |
| Policyholders’ Benefits | $2,500 |
| Remeasurement of Liability for Future Policy Benefits | $42 |
Equitable Holdings, Inc. (EQH) - Business Model: Revenue Streams
Premiums from Life Insurance and Annuity Contracts
As of September 30, 2024, Equitable Holdings reported total premiums from life insurance and annuity contracts amounting to approximately $2.5 billion for the nine-month period ending September 30, 2024. This represents a growth compared to $2.3 billion for the same period in 2023.
Fees from Investment Management and Advisory Services
Equitable Holdings generated $1.1 billion in fees from investment management and advisory services for the nine months ended September 30, 2024, compared to $1.0 billion for the same period in 2023. This reflects a steady increase in demand for their asset management services.
Policy Charges and Commissions from Product Sales
For the nine months ended September 30, 2024, policy charges and commissions from product sales accounted for approximately $1.9 billion. This is an increase from $1.7 billion reported in the same period of 2023.
| Revenue Stream | 2024 (in billions) | 2023 (in billions) |
|---|---|---|
| Premiums from Life Insurance and Annuity Contracts | $2.5 | $2.3 |
| Fees from Investment Management and Advisory Services | $1.1 | $1.0 |
| Policy Charges and Commissions from Product Sales | $1.9 | $1.7 |
Overall, these revenue streams underscore Equitable Holdings' diversified approach to generating income, which effectively supports its growth trajectory within the financial services sector.
Updated on 16 Nov 2024
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.