Equitable (EQH) Q2 2024 earnings summary

Executive summary

• Non-GAAP operating earnings per share rose 23% year-over-year to $1.43; adjusted EPS was $1.52, up 20% and above annualized growth guidance.

• Net income for Q2 2024 was $428 million, reflecting modest hedge impacts and minimal realized gains/losses, down from $759 million in Q2 2023.

• Total AUM/A reached a record $986 billion, up 11% year-over-year, driven by positive net inflows and favorable markets.

• Returned $325 million to shareholders in Q2, maintaining a 60%-70% payout ratio and reducing share count by 8% year-over-year.

• On track for $1.4–$1.5 billion cash generation in 2024, with about half from non-insurance businesses.

Financial highlights

• Non-GAAP operating earnings were $494 million, up 23% year-over-year; adjusted for notable items, $525 million, up 20%.

• Total revenues for Q2 2024 were $3.51 billion, up from $2.38 billion in Q2 2023, with increases in policy charges, net investment income, and investment management fees.

• Net investment income increased by $130 million year-over-year, reflecting higher asset balances and yields.

• Book value per common share (excluding AOCI) was $28.14 at June 30, 2024.

• Cash and liquid assets at Holdings stood at $1.6 billion, well above the $500 million minimum target.

Outlook and guidance

• 2024 cash generation expected at $1.4–$1.5 billion; 2027 target of $2 billion annual cash generation.

• Annualized Non-GAAP EPS growth target of 12%-15% through 2027 remains in place, supported by organic growth and share repurchases.

• Strategic targets for 2027 include $150 million in net expense savings and $110 million in incremental general account investment income.

• Expect steady increases in annual cash generation, driven by new business, investment yield enhancements, and expense reductions.

• Management expects continued volatility due to market conditions, interest rates, and regulatory changes.