Equitable (EQH) Q3 2024 earnings summary

Executive summary

• Achieved record assets under management and administration of $1.0 trillion, up 20% year-over-year, driven by strong organic growth and favorable markets.

• Non-GAAP operating earnings were $501 million ($1.53 per share), up 34% year-over-year; adjusted EPS was $1.59, up 22% and above annualized growth guidance.

• Returned $330 million to shareholders in the quarter, maintaining a 65% payout ratio within the 60-70% target range.

• Minimal impact from annual actuarial/assumption review, supporting a conservative approach.

• Retirement and Wealth Management segments delivered record net inflows and strong advisor productivity.

Financial highlights

• Reported GAAP net loss of $134 million, mainly due to non-economic impacts from the hedge portfolio and market risk benefit changes.

• Non-GAAP operating earnings were $501 million, up from $413 million year-over-year; adjusted for notable items, operating earnings were $521 million.

• Total AUM/A reached $1,034 billion, a 20% increase year-over-year, driven by positive net flows and higher markets.

• Individual Retirement net inflows of $1.9 billion, 9% organic growth TTM; sales up 25% year-over-year.

• Wealth Management reported record advisory net inflows of $1.9 billion; assets under administration exceeded $100 billion.

Outlook and guidance

• 2024 cash generation expected at the high end of the $1.4–$1.5 billion guidance range, with 50-60% from non-insurance entities.

• On track to deliver $2.0 billion of annual cash generation by 2027, with 12-15% non-GAAP operating EPS CAGR.

• AB segment targeting 33%+ adjusted operating margin in 2025, with further expansion expected by 2027.

• Insurance tax rate projected below 17% for 2024, reverting to 17% in 2025; AB and wealth management tax rates expected at 29% and 26%, respectively.

• No anticipated BlackRock LifePath Paycheck flows in Q4; flows expected to resume in H1 2025.