Equitable Holdings, Inc. (the “Company”) (NYSE: EQH) announced
today that it plans to achieve a Non-GAAP operating earnings per
share (“Non-GAAP EPS”) annual growth rate of 12-15% through 2027.
The Company plans to grow Non-GAAP EPS through organic earnings
generation, margin expansion and capital management. Members of the
Company’s management team will discuss further details about
Equitable Holdings’ strategy and growth outlook with corresponding
financial guidance at the Company’s inaugural investor day
beginning at approximately 1:00 p.m. ET today.
“This is an exciting day for Equitable Holdings, hosting our
inaugural investor day. Five years ago today we began our journey
as a public company and laid out a clear strategic direction
supported by financial guidance which focused on driving growth and
delivering value for our shareholders. During this time, we have
grown our core businesses while scaling adjacent, high growth,
businesses in addition to delivering on all of our IPO commitments.
As stewards of capital, we have also delivered strong cash
generation and capital return to shareholders,” said Mark Pearson,
President and Chief Executive Officer.
Mr. Pearson continued, “Now we turn to our next chapter and the
significant opportunity ahead across our Retirement, Asset and
Wealth Management businesses as we meet our clients’ increasing
need for advice, accumulation, income and protection. Over the next
five years, we expect a 50% increase in cash generation,
approximately $2 billion per annum by 2027, which in turn supports
our increased payout ratio of 60-70% and an upward revision of our
Non-GAAP EPS growth guidance to 12-15%.”
Mr. Pearson concluded, “Importantly, what remains unchanged is
our relentless focus on execution. We have materially shifted our
business since our IPO and our revised guidance demonstrates our
ability to deliver on our commitments to our stakeholders.”
The Company’s 12-15% Non-GAAP EPS annual growth guidance is
based off full year 2022 Non-GAAP operating earnings of $4.97 per
share, adjusting for notable items.
Financial guidance is as follows:
- Approximately $2 billion of annual cash generation by 2027, a
50% increase from expected $1.3 billion of expected cash generation
in 2023
- Payout ratio guidance to 60-70% of Non-GAAP operating
earnings
- $110 million of incremental general account income by 2027
- Combined productivity savings of $150 million by 2027 including
$75-80 million attributable to the full realization of savings from
AB’s Nashville relocation in 2025
- Additional $10 billion capital commitment from Equitable’s
general account, bringing total commitment since 2020 to $20
billion, to support growth in AB’s growing Private Markets
platform
- 350-500 basis point incremental Adjusted Operating Margin1
improvement at AB by 2027
Details for today’s investor day webcast and investor
presentation can be found on the Company’s investor relations
website at ir.equitableholdings.com.
To register for the webcast, please use the following link:
EQH 2023 Investor Day Webcast
A webcast replay will be made available on the Equitable
Holdings Investor Relations website at
ir.equitableholdings.com.
About Equitable Holdings
Equitable Holdings, Inc. (NYSE: EQH) is a financial services
holding company comprised of two complementary and well-established
principal franchises, Equitable and AllianceBernstein (NYSE: AB).
Founded in 1859, Equitable provides advice, protection and
retirement strategies to individuals, families and small
businesses. AllianceBernstein is a global investment management
firm that offers high-quality research and diversified investment
services to institutional investors, individuals and private wealth
clients in major world markets. Equitable Holdings has
approximately 12,300 employees and financial professionals, $864
billion in assets under management and administration (as of
3/31/2023) and more than 5 million client relationships
globally.
Note Regarding Forward-Looking Statements
This press release contains 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 plateauing or decreasing economic growth
and 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 the
payment of dividends to Holdings by its subsidiaries, protection of
confidential customer information or proprietary business
information, operational failures by us or our service providers,
potential strategic transactions, changes in accounting standards,
and catastrophic events, such as the outbreak of pandemic diseases
including COVID-19; (iii) credit, counterparties and investments,
including counterparty default on derivative contracts, failure of
financial institutions, defaults by third parties and affiliates
and economic downturns, defaults and other events adversely
affecting our investments; (iv) our reinsurance and hedging
programs; (v) our products, structure and product distribution,
including variable annuity guaranteed benefits features within
certain of our products, variations in statutory capital
requirements, financial strength and claims-paying ratings, state
insurance laws limiting the ability of our insurance subsidiaries
to pay dividends and key product distribution relationships; (vi)
estimates, assumptions and valuations, including risk management
policies and procedures, potential inadequacy of reserves and
experience differing from pricing expectations, amortization of
deferred acquisition costs and financial models; (vii) our
Investment Management and Research segment, including fluctuations
in assets under management and the industry-wide shift from
actively-managed investment services to passive services; (viii)
recruitment and retention of key employees and experienced and
productive financial professionals; (ix) subjectivity of the
determination of the amount of allowances and impairments taken on
our investments; (x) legal and regulatory risks, including federal
and state legislation affecting financial institutions, insurance
regulation and tax reform; (xi) risks related to our common stock
and (xii) general risks, including strong industry competition,
information systems failing or being compromised and protecting our
intellectual property.
Forward-looking statements, including any financial guidance,
should be read in conjunction with the other cautionary statements,
risks, uncertainties and other factors identified in Holdings’
filings with the Securities and Exchange Commission. Further, any
forward-looking statement speaks only as of the date on which it is
made, and we undertake no obligation to update or revise any
forward-looking statement to reflect events or circumstances after
the date on which the statement is made or to reflect the
occurrence of unanticipated events, except as otherwise may be
required by law.
Non-GAAP Metrics
For the definition of each non-GAAP measure presented in this
release to the most directly comparable GAAP measure, refer to our
full year and fourth quarter 2022 earnings materials on
ir.equitableholdings.com.
The Company has presented forward-looking statements regarding
Non-GAAP operating earnings, Non-GAAP operating earnings, adjusting
for notable items, Non-GAAP operating earnings per share and
Adjusted Operating Margin at AB. These non-GAAP financial measures
are derived by excluding certain amounts, expenses or income, from
the corresponding financial measures determined in accordance with
GAAP. The determination of the amounts that are excluded from these
non-GAAP financial measures is a matter of management judgment and
depends upon, among other factors, the nature of the underlying
expense or income amounts recognized in a given period. We are
unable to present a quantitative reconciliation of forward-looking
adjusted operating earnings per share and payout ratio targeted to
non-GAAP operating earnings to their most directly comparable
forward-looking GAAP financial measures because such information is
not available, and management cannot reliably predict all of the
necessary components of such GAAP measures without unreasonable
effort or expense. In addition, we believe such reconciliations
would imply a degree of precision that would be confusing or
misleading to investors. The unavailable information could have a
significant impact on the Company’s future financial results. These
non-GAAP financial measures are preliminary estimates and are
subject to risks and uncertainties, including, among others changes
in connection with quarter-end and year-end adjustments. Any
variations between the Company’s actual results and preliminary
financial data set forth above may be material.
1 Adjusted Operating Margin is a non-GAAP financial measure used
by AB’s management in evaluating AB’s financial performance on a
standalone basis and to compare its performance, as reported by AB
in its public filings. It is not comparable to any other non-GAAP
financial measure used herein.
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version on businesswire.com: https://www.businesswire.com/news/home/20230510005529/en/
Investor Relations Işıl Müderrisoğlu (212) 314-2476
IR@equitable.com Media Relations Sophia Kim (212) 314-2010
mediarelations@equitable.com
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