Company Story
1859 - Equitable Life Insurance Company of Iowa founded
1992 - Demutualization and IPO
2004 - Acquired by AXA
2016 - Spin-off from AXA and rebranding as Equitable Holdings, Inc.
2020 - IPO and listing on the New York Stock Exchange
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The Group Retirement segment provides 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 Investment Management and Research segment offers diversified investment management, research, and related solutions to various clients through institutional, retail, and private wealth management channels; and distributes its institutional research products and solutions.The Protection Solutions segment provides various variable universal life, indexed universal life, and term life products to help affluent and high net worth individuals, as well as small and medium-sized business owners; and a suite of life, short- and long-term disability, dental, and vision insurance products to small and medium-size businesses.
The company was formerly known as AXA Equitable Holdings, Inc.and changed its name to Equitable Holdings, Inc.in January 2020.
Equitable Holdings, Inc.was founded in 1859 and is based in New York, New York. Show Full description
1. Company Snapshot
1.a. Company Description
Equitable Holdings, Inc., together with its consolidated subsidiaries, operates as a diversified financial services company worldwide.The company operates through four segments: Individual Retirement, Group Retirement, Investment Management and Research, and Protection Solutions.The Individual Retirement segment offers a suite of variable annuity products primarily to affluent and high net worth individuals.
The Group Retirement segment provides 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 Investment Management and Research segment offers diversified investment management, research, and related solutions to various clients through institutional, retail, and private wealth management channels; and distributes its institutional research products and solutions.The Protection Solutions segment provides various variable universal life, indexed universal life, and term life products to help affluent and high net worth individuals, as well as small and medium-sized business owners; and a suite of life, short- and long-term disability, dental, and vision insurance products to small and medium-size businesses.
The company was formerly known as AXA Equitable Holdings, Inc.and changed its name to Equitable Holdings, Inc.in January 2020.
Equitable Holdings, Inc.was founded in 1859 and is based in New York, New York. Show Full description
1.b. Last Insights on EQH
Equitable Holdings, Inc.'s recent performance was negatively impacted by its Q3 earnings miss, with quarterly earnings of $1.48 per share, falling short of the Zacks Consensus Estimate of $1.59 per share. The company's earnings call highlighted one-time items and claim timing as factors affecting recent results. Additionally, DekaBank Deutsche Girozentrale reduced its holdings in Equitable by 1.7%, selling 1,104 shares. Conversely, Bessemer Group Inc. increased its stake by 633.3%, acquiring 5,383 shares. The company's capital position remains strong, with a focus on recurring income.
1.c. Company Highlights
2. Equitable Holdings Delivers Strong Q3 2025 Results
Equitable Holdings reported non-GAAP operating earnings of $455 million, or $1.48 per share, slightly missing analyst estimates of $1.59 per share. The company's assets under management reached a record $1.1 trillion, up 4% sequentially, driven by strong organic growth momentum. The retirement businesses generated $1.1 billion of net flows, while Wealth Management had $2.2 billion of advisory net inflows, a 12% annualized growth rate.
Publication Date: Nov -10
📋 Highlights
- Record AUM Growth: Achieved $1.1 trillion assets under management, up 4% sequentially, driven by flywheel business model.
- Shareholder Returns: Returned $757 million to shareholders (including $676 million buybacks) and reduced debt by $500 million.
- Operating Earnings: Non-GAAP operating earnings reached $455 million ($1.48/share), with $36 million mortality adjustment and $24 million one-time expenses.
- Capital Efficiency: Adjusted book value per share at $33.59; debt-to-capital ratio of 24.5%, reflecting strong capital structure.
- Wealth Management Momentum: Generated $2.2 billion in advisory net inflows (12% annualized growth), supported by Team LIFT acquisition.
Capital Management and Shareholder Returns
During the quarter, Equitable Holdings returned $757 million to shareholders, including $676 million of share repurchases, and reduced outstanding debt by $500 million. The company's adjusted book value per share ex AOCI and with AB at market value was $33.59, resulting in an adjusted debt-to-capital ratio of 24.5%. The management team remains committed to a 60% to 70% payout ratio and prioritizes attractive bolt-on opportunities to fuel growth in the business.
Business Segment Performance
The company's RILA sales have been a significant growth driver, with $3.9 billion in sales during the quarter. The Wealth Management business has also seen significant growth, thanks in part to the Team LIFT acquisition. The Individual Life business is being managed on an economic basis, with a focus on Equitable Advisors. The FABN business has grown to $10 billion, with significant capacity for further growth.
Valuation and Outlook
With a Price-to-Book Ratio of 94.13, the market is pricing in significant growth expectations. The company's ROE is currently negative, at -52.7%, but the management team is confident in their ability to drive growth and improve profitability. Analysts estimate revenue growth of 6.9% for the next year. The company's commitment to a 60% to 70% payout ratio and its strong capital management program should support future growth.
Growth Initiatives and Future Prospects
Equitable Holdings is excited about its growth initiatives, including the Bermuda entity, which will allow the company to grow its presence in the region and leverage in-force transactions and flow reinsurance for capital management. The company is also exploring sidecars as a way to grow AB's private credit business while generating good returns on equity invested. With a strong pipeline for 2026 and a commitment to innovation and economic models, the company is well-positioned for sustainable growth.
3. NewsRoom
Q3 2025 Portfolio: Focusing On Resilience, Attractive Valuation And Sound Capital Allocation
Nov -11
Amazon.com, Inc. $AMZN Shares Bought by Equitable Trust Co.
Nov -06
Equitable Bank applauds Government of Canada's progress on enabling greater competition in banking with Budget 2025
Nov -05
Equitable Holdings, Inc. (EQH) Q3 2025 Earnings Call Transcript
Nov -05
IISc Foundation and IndusSetu Forge Global Partnership to Advance Medical Education, Research, and Equitable Healthcare
Nov -05
Equitable Holdings (EQH) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
Nov -05
Equitable Holdings, Inc. (EQH) Misses Q3 Earnings and Revenue Estimates
Nov -05
Equitable Holdings Reports Third Quarter 2025 Results
Nov -04
4. Business Breakdown
4.a. Revenues by Country
4.b. Revenues by Segment
5. Expected revenues mid-term growth (6.86%)
6. Segments
Investment Management and Research
Expected Growth:
Equitable Holdings, Inc.'s 9.76% growth in Investment Management and Research is driven by increasing demand for diversified investment products, expansion of distribution channels, and strategic partnerships. Additionally, the company's focus on digital transformation, cost savings initiatives, and strong brand recognition have contributed to its growth momentum.
Protection Solutions
Expected Growth:
Equitable Holdings' Protection Solutions segment growth of 5.4% is driven by increasing demand for life insurance and annuity products, expansion into new distribution channels, and strategic partnerships. Additionally, the company's focus on digital transformation and customer-centric approach have improved sales and retention rates, contributing to the segment's growth.
Adjustments
Expected Growth:
The 5.4% growth driven by Adjustments from Equitable Holdings, Inc. is attributed to increased premiums, favorable mortality experience, and expense management. Additionally, the company's strategic investments in digital transformation and expansion into new markets have contributed to the growth. Furthermore, the company's efforts to improve operational efficiency and reduce costs have also had a positive impact.
Individual Retirement
Expected Growth:
Equitable Holdings, Inc.'s Individual Retirement segment growth of 6.37% is driven by increasing demand for retirement savings products, expansion of distribution channels, and strategic partnerships. Additionally, the company's focus on digital transformation, competitive pricing, and product innovation have contributed to the growth. Furthermore, the rising popularity of fee-based advisory services and the growing need for retirement income solutions have also supported the segment's growth.
Wealth Management
Expected Growth:
Wealth Management from Equitable Holdings, Inc. achieved 8.23% growth driven by increasing demand for retirement planning, expansion of fee-based advisory services, and strategic acquisitions. Additionally, the segment benefited from a rise in assets under management, fueled by market appreciation and net inflows. These factors, combined with effective cost management, contributed to the segment's robust growth.
Corporate and Other
Expected Growth:
Equitable Holdings, Inc.'s Corporate and Other segment growth of 7.4% is driven by strategic investments in digital transformation, expansion of alternative investment channels, and cost savings initiatives. Additionally, the segment benefits from a low interest rate environment, driving demand for retirement savings products and increasing fee-based revenue streams.
Group Retirement
Expected Growth:
Equitable Holdings' Group Retirement segment growth of 5.4% is driven by increasing demand for retirement plans, expansion of distribution channels, and strategic partnerships. Additionally, the segment benefits from a strong brand presence, competitive pricing, and a growing need for employers to offer retirement benefits to attract and retain talent.
Eliminations
Expected Growth:
The 5.45% growth in Eliminations from Equitable Holdings, Inc. is driven by increased demand for insurance products, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digital transformation and cost savings initiatives have contributed to improved operational efficiency, further boosting growth.
Legacy
Expected Growth:
Legacy from Equitable Holdings, Inc. with 4.83% growth driven by strong brand recognition, diversified product offerings, and a large distribution network. Additionally, the company's focus on digital transformation, cost savings initiatives, and strategic acquisitions have contributed to its growth momentum.
7. Detailed Products
Variable Life Insurance
A type of permanent life insurance that allows policyholders to invest their cash value in various investments.
Term Life Insurance
A type of life insurance that provides coverage for a specified period of time (e.g., 10, 20, or 30 years).
Universal Life Insurance
A type of permanent life insurance that combines a death benefit with a savings component.
Indexed Universal Life Insurance
A type of universal life insurance that earns interest based on the performance of a specific stock market index.
Fixed Annuities
A type of annuity that provides a fixed rate of return for a specified period of time.
Variable Annuities
A type of annuity that allows policyholders to invest their funds in various investments.
Retirement Plans
A type of savings plan designed to help individuals save for retirement.
8. Equitable Holdings, Inc.'s Porter Forces
Forces Ranking
Threat Of Substitutes
The threat of substitutes for Equitable Holdings, Inc. is medium due to the presence of alternative financial services and products offered by competitors.
Bargaining Power Of Customers
The bargaining power of customers for Equitable Holdings, Inc. is low due to the company's strong brand reputation and diversified product offerings.
Bargaining Power Of Suppliers
The bargaining power of suppliers for Equitable Holdings, Inc. is medium due to the company's dependence on a few key suppliers for certain products and services.
Threat Of New Entrants
The threat of new entrants for Equitable Holdings, Inc. is high due to the relatively low barriers to entry in the financial services industry and the increasing trend of fintech startups.
Intensity Of Rivalry
The intensity of rivalry for Equitable Holdings, Inc. is high due to the highly competitive nature of the financial services industry and the presence of established players.
9. SWOT Analysis
10. Capital Structure
10.a. Balance Sheet
10.b. Weighted Average Cost of capital
| Value | |
|---|---|
| Debt Weight | 60.60% |
| Debt Cost | 3.95% |
| Equity Weight | 39.40% |
| Equity Cost | 10.91% |
| WACC | 6.69% |
| Leverage | 153.79% |
11. Quality Control: Equitable Holdings, Inc. passed 5 out of 9 key points
12.a Historical Valuation
12.b Price/Earnings Ratio
12.c Margin Valuation
12.d Peers Valuation
Peers Group Analysis
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