Equitable Holdings Files Q3 2024 10-Q

Ticker: EQH-PC · Form: 10-Q · Filed: Nov 5, 2024 · CIK: 1333986

Sentiment: neutral

Topics: 10-Q, financials, quarterly-report

TL;DR

EQH Q3 2024 10-Q filed. Financials look steady.

AI Summary

Equitable Holdings, Inc. filed its 10-Q for the period ending September 30, 2024. The filing covers the third quarter of 2024 and includes financial data for various equity and preferred stock classes. The company's principal executive offices are located at 1345 Avenue of the Americas, New York, NY.

Why It Matters

This filing provides investors with the latest financial performance and position of Equitable Holdings, Inc. for the third quarter of 2024, crucial for investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags.

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The reporting period for this 10-Q filing is the period ending September 30, 2024.

When was this 10-Q filed with the SEC?

This 10-Q was filed on November 5, 2024.

What is the company's principal business address?

The company's principal business address is 1345 Avenue of the Americas, New York, NY.

What was the company formerly known as?

The company was formerly known as AXA Equitable Holdings, Inc. and AXA AMERICA HOLDINGS, INC.

What fiscal year end does Equitable Holdings, Inc. have?

Equitable Holdings, Inc. has a fiscal year end of December 31.

Filing Stats: 4,952 words · 20 min read · ~17 pages · Grade level 20 · Accepted 2024-11-05 15:22:27

Key Financial Figures

Filing Documents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1. Consolidated Financial Statements Consolidated Balance Sheets, September 30, 2024 (Unaudited) and December 31, 2023 4 Consolidated Statements of Income (Loss), Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited) 5 Consolidated Statements of Comprehensive Income (Loss), Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited) 6 Consolidated Statements of Equity, Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited) 8 Consolidated Statements of Cash Flows, Nine Months Ended September 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 28 Note 5 - Closed Block 36 Note 6 - DAC and Other Deferred Assets/Liabilities 37 Note 7 - Fair Value Disclosures 39 Note 8 - Liabilities for Future Policyholder Benefits 57 Note 9 - Market Risk Benefits 61 Note 10 - Policyholder Account Balances 63 Note 11 - Employee Benefit Plans 69 Note 12 - Income Taxes 69 Note 13 - Equity 70 Note 14 - Short-term and Long-term Debt 73 Note 15 - Redeemable Noncontrolling Interest 73 Note 16 - Commitments and Contingent Liabilities 74 Note 17 - Business Segment Information 78 Note 18 - Insurance Group Statutory Financial Information 81 Note 19 - Earnings per Common Share 83 Note 20 - Held-For-Sale 83 Note 21 - Subsequent Events 85 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 86 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 131 Item 4.

Controls and Procedures

Controls and Procedures 131

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 132

Risk Factors

Item 1A. Risk Factors 132

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 132

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 132

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 132

Other Information

Item 5. Other Information 132

Exhibits

Item 6. Exhibits 133

Signatures

Signatures 140 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 September 30, 2024 (Unaudited) and December 31, 2023 September 30, 2024 December 31, 2023 (in millions, except share data) ASSETS Investments: Fixed maturities available-for-sale, at fair value (amortized cost of $ 81,681 and $ 74,033 ) (allowance for credit losses of $ 4 and $ 4 ) $ 76,245 $ 67,030 Fixed maturities, at fair value using the fair value option (1) 1,700 1,654 Mortgage loans on real estate (net of allowance for credit losses of $ 261 and $ 279 ) (1) 19,237 18,171 Policy loans 4,293 4,158 Other equity investments (1) 3,731 3,384 Trading securities, at fair value 2,215 1,057 Other invested assets (1) 6,825 6,719 Total investments 114,246 102,173 Cash and cash equivalents (1) 9,579 8,239 Cash and securities segregated, at fair value 547 868 Broker-dealer related receivables 1,898 1,837 Deferred policy acquisition costs 7,031 6,705 Goodwill and other intangible assets, net 5,388 5,433 Amounts due from reinsurers (allowance for credit losses of $ 8 and $ 7 ) 8,222 8,352 Current and deferred income taxes 1,701 2,050 Purchased market risk benefits 8,492 9,427 Other assets (1) 3,738 3,323 Assets held-for-sale — 565 Assets for market risk benefits 740 591 Separate Accounts assets 137,407 127,251 Total Assets $ 298,989 $ 276,814 LIABILITIES Policyholders' account balances $ 107,433 $ 95,673 Liability for market risk benefits 13,197 14,612 Future policy benefits and other policyholders' liabilities 17,936 17,363 Broker-dealer related payables 1,382 1,232 Customer related payables 1,795 2,201 Amounts due to reinsurers 1,421 1,450 Short-term debt — 254 Long-term debt 3,831 3,820 Notes issued by consolidated variable interest entities, at fair value using the fair value option (1) 1,744 1,559 Other liabilities (1) 6,645 6,088 Liabilities held-for-sale — 153 Separate Accounts liabilities 137,407 127

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 ("EB") 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 owner

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