Equitable Holdings Files Q2 2024 10-Q
Ticker: EQH-PC · Form: 10-Q · Filed: Aug 1, 2024 · CIK: 1333986
Sentiment: neutral
Topics: 10-Q, financials, insurance
TL;DR
**EQH Q2 10-Q FILED: Financials and operations update for period ending June 30, 2024.**
AI Summary
Equitable Holdings, Inc. filed its 10-Q for the period ending June 30, 2024. The filing covers the second quarter of 2024 and provides financial details for the company, which operates in the insurance sector. Key financial data and operational updates are presented for the reporting period.
Why It Matters
This filing provides investors with the latest financial performance and operational details for Equitable Holdings, Inc. during the second quarter of 2024.
Risk Assessment
Risk Level: medium — 10-Q filings are standard for public companies, but the specific financial details and market conditions discussed within can introduce varying levels of risk.
Key Numbers
- 20240630 — Reporting Period End Date (Indicates the end of the financial period covered by the report.)
- 20240801 — Filing Date (The date the 10-Q was officially submitted to the SEC.)
- 2023-12-31 — Previous Year End Date (Provides a comparative point to the prior fiscal year end.)
Key Players & Entities
- Equitable Holdings, Inc. (company) — Filer of the 10-Q
- AXA Equitable Holdings, Inc. (company) — Former company name
- AXA AMERICA HOLDINGS, INC. (company) — Former company name
- 20240630 (date) — End of reporting period
- 20240801 (date) — Filing date
FAQ
What is the primary business of Equitable Holdings, Inc. according to the filing?
Equitable Holdings, Inc. is classified under 'INSURANCE AGENTS BROKERS & SERVICES' with SIC code 6411.
What is the period covered by this 10-Q filing?
The 10-Q covers the period ending June 30, 2024 (Q2 2024).
When was this 10-Q filing submitted to the SEC?
The filing was submitted on August 1, 2024.
Has Equitable Holdings, Inc. had previous names?
Yes, the company was formerly known as AXA Equitable Holdings, Inc. and AXA AMERICA HOLDINGS, INC.
What is the state of incorporation for Equitable Holdings, Inc.?
The company is incorporated in Delaware (DE).
Filing Stats: 4,985 words · 20 min read · ~17 pages · Grade level 20 · Accepted 2024-08-01 13:53:02
Key Financial Figures
- $0.01 — hares of the registrant's Common Stock, $0.01 par value, were outstanding. Table of
Filing Documents
- eqh-20240630.htm (10-Q) — 8037KB
- eqh-06302024exhibit101.htm (EX-10.1) — 33KB
- eqh-06302024exhibit102.htm (EX-10.2) — 29KB
- eqh-06302024exhibit311.htm (EX-31.1) — 8KB
- eqh-06302024exhibit312.htm (EX-31.2) — 8KB
- eqh-06302024exhibit321.htm (EX-32.1) — 4KB
- eqh-06302024exhibit322.htm (EX-32.2) — 4KB
- eqh-20240630_g1.jpg (GRAPHIC) — 362KB
- 0001333986-24-000026.txt ( ) — 39319KB
- eqh-20240630.xsd (EX-101.SCH) — 146KB
- eqh-20240630_cal.xml (EX-101.CAL) — 209KB
- eqh-20240630_def.xml (EX-101.DEF) — 820KB
- eqh-20240630_lab.xml (EX-101.LAB) — 1517KB
- eqh-20240630_pre.xml (EX-101.PRE) — 1164KB
- eqh-20240630_htm.xml (XML) — 10709KB
- FINANCIAL INFORMATION
PART I - FINANCIAL INFORMATION Item 1. Consolidated Financial Statements Consolidated Balance Sheets, June 30, 2024 (Unaudited) and December 31, 2023 4 Consolidated Statements of Income (Loss), Three and Six Months Ended June 30, 2024 and 2023 (Unaudited) 5 Consolidated Statements of Comprehensive Income (Loss), Three and Six Months Ended June 30, 2024 and 2023 (Unaudited) 6 Consolidated Statements of Equity, Three and Six Months Ended June 30, 2024 and 2023 (Unaudited) 8 Consolidated Statements of Cash Flows, Six Months Ended June 30, 2024 and 2023 (Unaudited) 9
Notes to Consolidated Financial Statements
Notes to Consolidated Financial Statements: Note 1 - Organization 11 Note 2 - Significant Accounting Policies 11 Note 3 - Investments 15 Note 4 - Derivatives 27 Note 5 - Closed Block 34 Note 6 - DAC and Other Deferred Assets/Liabilities 36 Note 7 - Fair Value Disclosures 38 Note 8 - Liabilities for Future Policyholder Benefits 56 Note 9 - Market Risk Benefits 60 Note 10 - Policyholder Account Balances 62 Note 11 - Employee Benefit Plans 68 Note 12 - Income Taxes 69 Note 13 - Equity 69 Note 14 - Short-term and Long-term Debt 72 Note 15 - Redeemable Noncontrolling Interest 73 Note 16 - Commitments and Contingent Liabilities 73 Note 17 - Business Segment Information 77 Note 18 - Insurance Group Statutory Financial Information 80 Note 19 - Earnings per Common Share 82 Note 20 - Held-For-Sale 82 Note 21 - Subsequent Events 84 Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations 85 Item 3.
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and Qualitative Disclosures About Market Risk 129 Item 4.
Controls and Procedures
Controls and Procedures 129
- OTHER INFORMATION
PART II - OTHER INFORMATION
Legal Proceedings
Item 1. Legal Proceedings 131
Risk Factors
Item 1A. Risk Factors 131
Unregistered Sales of Equity Securities and Use of Proceeds
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 131
Defaults Upon Senior Securities
Item 3. Defaults Upon Senior Securities 131
Mine Safety Disclosures
Item 4. Mine Safety Disclosures 131
Other Information
Item 5. Other Information 131
Exhibits
Item 6. Exhibits 132
Signatures
Signatures 139 Table of Contents NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATION Certain of the statements included or incorporated by reference in this Quarterly Report on Form 10-Q constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "believes," "anticipates," "intends," "seeks," "aims," "plans," "assumes," "estimates," "projects," "should," "would," "could," "may," "will," "shall" or variations of such words are generally part of forward-looking statements. Forward-looking statements are made based on management's current expectations and beliefs concerning future developments and their potential effects upon Equitable Holdings, Inc. ("Holdings") and its consolidated subsidiaries. These forward-looking statements include, but are not limited to, statements regarding projections, estimates, forecasts and other financial and performance metrics and projections of market expectations. "We," "us" and "our" refer to Holdings and its consolidated subsidiaries, unless the context refers only to Holdings as a corporate entity. There can be no assurance that future developments affecting Holdings will be those anticipated by management. Forward-looking statements include, without limitation, all matters that are not historical facts. These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there are certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements, including, among others: (i) conditions in the financial markets and economy, including the impact of geopolitical conflicts and related economic conditions, equity market declines and volatility, interest rate fluctuations, impacts on our goodwill and changes in liquidity and access to and cost of capital; (ii) operational factors, including reliance on
FINANCIAL INFORMATION
Part I FINANCIAL INFORMATION
Consolidated Financial Statements
Item 1. Consolidated Financial Statements 3 Table of Contents EQUITABLE HOLDINGS, INC. Consolidated Balance Sheets June 30, 2024 (Unaudited) and December 31, 2023 June 30, 2024 December 31, 2023 (in millions, except share data) ASSETS Investments: Fixed maturities available-for-sale, at fair value (amortized cost of $ 79,797 and $ 74,033 ) (allowance for credit losses of $ 4 and $ 4 ) $ 71,579 $ 67,030 Fixed maturities, at fair value using the fair value option (1) 1,703 1,654 Mortgage loans on real estate (net of allowance for credit losses of $ 234 and $ 279 ) (1) 18,802 18,171 Policy loans 4,247 4,158 Other equity investments (1) 3,743 3,384 Trading securities, at fair value 2,017 1,057 Other invested assets (1) 5,635 6,719 Total investments 107,726 102,173 Cash and cash equivalents (1) 9,684 8,239 Cash and securities segregated, at fair value 592 868 Broker-dealer related receivables 1,801 1,837 Deferred policy acquisition costs 6,924 6,705 Goodwill and other intangible assets, net 5,403 5,433 Amounts due from reinsurers (allowance for credit losses of $ 9 and $ 7 ) 8,237 8,352 Current and deferred income taxes 2,117 2,050 Purchased market risk benefits 7,993 9,427 Other assets (1) 3,825 3,323 Assets held-for-sale — 565 Assets for market risk benefits 803 591 Separate Accounts assets 132,664 127,251 Total Assets $ 287,769 $ 276,814 LIABILITIES Policyholders' account balances $ 104,072 $ 95,673 Liability for market risk benefits 12,593 14,612 Future policy benefits and other policyholders' liabilities 17,417 17,363 Broker-dealer related payables 839 1,232 Customer related payables 2,060 2,201 Amounts due to reinsurers 1,363 1,450 Short-term debt — 254 Long-term debt 3,830 3,820 Notes issued by consolidated variable interest entities, at fair value using the fair value option (1) 1,740 1,559 Other liabilities (1) 6,718 6,088 Liabilities held-for-sale — 153 Separate Accounts liabilities 132,664 127,251 Total
Notes to Consolidated Financial Statements (Unaudited)
Notes to Consolidated Financial Statements (Unaudited) 1) ORGANIZATION Equitable Holdings, Inc. is the holding company for a diversified financial services organization. The Company conducts operations in six segments: Individual Retirement, Group Retirement, Asset Management, Protection Solutions, Wealth Management and Legacy. The Company's management evaluates the performance of each of these segments independently. Effective April 1, 2024, the Company renamed its Investment Management and Research segment to Asset Management following the close of the previously announced joint venture between AllianceBernstein and Societe Generale to create Bernstein, an equity research provider and cash equity trading partner for institutional investors. Following the close of the transaction, Bernstein research business results are no longer consolidated within the financial results for AllianceBernstein and Equitable Holdings, Inc. The Individual Retirement segment offers a diverse suite of variable annuity products which are primarily sold to affluent and high net worth individuals saving for retirement or seeking retirement income. The Group Retirement segment offers tax-deferred investment and retirement services or products to plans sponsored by educational entities, municipalities and not-for-profit entities, as well as small and medium-sized businesses. The Asset Management segment provides diversified investment management and related services globally to a broad range of clients through three main client channels - Institutional, Retail and Private Wealth. The Asset Management segment reflects the business of AB Holding and ABLP and their subsidiaries (collectively, AB). The Protection Solutions segment includes the Company's life insurance and group employee benefits businesses. The life insurance business offers a variety of VUL, IUL and term life products to help affluent and high net worth individuals, as well as small and medium-sized business owners, with