Equitable (EQH) Q4 2024 earnings summary

Executive summary

• Achieved strong growth in 2024 across retirement, asset management, and wealth management, with integrated business model driving value creation.

• Non-GAAP operating earnings reached $2.0B ($5.93/share), up 29% year-over-year; adjusted EPS was $6.18, up 20% and above guidance.

• Assets under management and administration surpassed $1.0T, increasing 10% year-over-year, driven by net inflows and market appreciation.

• Cash generation hit $1.5B, at the high end of guidance, with over 50% from asset and wealth management.

• Capital return to shareholders totaled $1.3B in 2024, with a 66% payout ratio and 7% reduction in shares outstanding.

Financial highlights

• Q4 Non-GAAP operating earnings were $522M ($1.57/share), up 18% year-over-year; adjusted for notable items, EPS was $1.65, up 23%.

• GAAP net income for Q4 was $899M, significantly above operating earnings due to non-economic hedge impacts.

• Book value per share (ex-AOCI) was $28.36 at year-end 2024.

• Full-year protection solutions earnings were $239M, within guidance.

• Record value of new business (VNB) of $775M in 2024, driven by higher-margin, less capital-intensive products.

Outlook and guidance

• 2025 cash generation forecasted at $1.6-$1.7B, on track for $2B by 2027.

• 2025 EPS growth expected to align with 12%-15% annualized target.

• Protection solutions earnings for 2025 guided to the lower end of $200M-$300M, assuming stable mortality.

• Alternative investment returns projected to start at 5%-6% and grade up as M&A and IPO activity increases.

• Tax rate guidance for 2025: 20% overall, 17% insurance, 26% wealth management, 30% AB.