Equitable (EQH) Status Update summary

Strategic rationale and transaction overview

• Reinsuring 75% of the in-force individual life insurance block to RGA, generating over $2 billion in value from ceding commission and capital release.

• Transaction accelerates shift toward higher-return, faster-growing businesses: retirement, asset management, and wealth management.

• AB to manage about 70% of general account assets backing the block, deepening the strategic partnership.

• Transaction expected to close in mid-2025, pending regulatory approvals.

• Individual life insurance is a low-return, volatile business; focus shifts to select product manufacturing and third-party access.

Capital redeployment and financial impacts

• Over $2 billion of deployable proceeds to be used for a $1.8 billion AB Holdings tender offer and $500 million in incremental share repurchases.

• Combined NAIC-RBC ratio to increase by 75-100 points, with a new target of at least 400%.

• GAAP net loss at close due to realized loss on assets transferred, but accretive to Non-GAAP operating EPS and cash flow per share.

• Cash flow guidance of $1.6-$1.7 billion in 2025 and $2 billion by 2027 reaffirmed.

• Board authorized an additional $1.5 billion share repurchase program.

Business mix transformation and growth outlook

• By 2027, asset and wealth management expected to generate 35%-60% of operating earnings and 60% of annual cash generation.

• Shift reduces earnings volatility from mortality and increases predictability and growth potential.

• AB's private markets platform and strategic investments (e.g., CarVal, Ruby Re) highlighted as growth drivers.

• No plans to take AB private; public listing seen as valuable for M&A and compensation.

• Transaction is a key milestone in strategic journey, supporting higher returns and enhanced shareholder value.