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Introduction & Market Context
Equitable Holdings, Inc. (NYSE:EQH) released its first quarter 2025 earnings presentation on April 29, revealing mixed financial results amid ongoing strategic initiatives to optimize capital deployment. The financial services company reported a slight decline in earnings per share compared to the same period last year while highlighting strong inflows across its retirement and asset management businesses.
The company’s stock closed at $50.41 on April 29, up 1.21% for the day, and traded slightly lower in after-hours at $51.01. While the current share price remains below its 52-week high of $56, it represents significant growth from the 52-week low of $36.46.
Quarterly Performance Highlights
Equitable reported non-GAAP operating earnings of $421 million, or $1.30 per share, for the first quarter of 2025. After adjusting for notable items, operating earnings were $434 million, or $1.35 per share, representing a 3% year-over-year decline on a per-share basis. Net income for the quarter was $63 million, down from $92 million in the prior year quarter.
As shown in the following comprehensive overview of the quarter’s key results:
Despite the earnings decline, the company achieved solid growth in assets under management and administration, which reached $1,006 billion, up 3% year-over-year. This growth was supported by positive net flows and higher markets over the previous twelve months.
The consolidated results summary provides a breakdown of segment contributions to operating earnings:
Segment Performance Analysis
Equitable’s performance varied significantly across its business segments during the first quarter. The Asset Management segment was a standout performer, with operating earnings increasing 19% year-over-year to $126 million. This growth was supported by improved margins, with the adjusted operating margin expanding by 340 basis points to 33.7%. The segment also reported $2.7 billion in active net inflows.
The company’s Retirement businesses delivered mixed results. Individual Retirement reported operating earnings of $218 million, down from $239 million in Q1 2024, despite a 13% increase in account value to $95.9 billion. Meanwhile, Group Retirement saw operating earnings increase to $133 million from $123 million in the prior year quarter, with account value growing 4% to $39.9 billion.
The following chart illustrates the continued momentum in spread and fee-based income across segments:
The most significant drag on quarterly performance came from the Protection Solutions segment, which reported an operating loss of $17 million, compared to earnings of $50 million in Q1 2024. This decline was primarily attributed to excess Individual Life mortality, with claims approximately $80 million higher than expected. However, the segment did show some positive trends with gross written premiums increasing 3% to $800 million and annualized premiums growing 16% to $93 million.
Wealth Management continued to demonstrate strong growth, with operating earnings increasing to $46 million from $43 million in the prior year quarter. The segment reported $2.0 billion in advisory net inflows, supported by 8% year-over-year growth in advisor productivity.
Capital Management and Strategic Initiatives
Equitable returned $335 million to shareholders during the quarter, including $261 million in share repurchases, representing an 80% payout ratio that exceeded the company’s 60-70% target. The company also announced plans to increase its quarterly dividend to $0.27 from $0.24 per share in May 2025.
The following chart illustrates the company’s capital management strategy and its impact on shareholder value:
A key strategic initiative highlighted in the presentation is the company’s Individual Life transaction with RGA, which is on track to close by mid-2025. This transaction is expected to free over $2 billion of capital and add 75-100 points to the combined NAIC RBC ratio following an extraordinary dividend. Management indicated plans to execute an additional $500 million in share repurchases after the transaction closes, above the company’s standard payout ratio target.
Equitable also completed the purchase of approximately $760 million of AB Holding units through a tender offer, increasing its ownership to approximately 69% effective April 1. Following these transactions, the company reported $1.1 billion in cash at the holding company level.
The timeline for these strategic initiatives is outlined in the following slide:
Balance Sheet Strength and Risk Management
Equitable emphasized its strong balance sheet and risk management practices throughout the presentation. The company maintains a conservative investment portfolio with 98% investment grade fixed maturities and an average portfolio rating of A2 (excluding Treasury bonds).
The following slide illustrates the company’s macro sensitivities and balance sheet protection:
The company highlighted that over 50% of its cash flows now come from non-insurance businesses, which provides greater stability and reduced sensitivity to market fluctuations. Equitable has maintained a combined NAIC RBC ratio of approximately 425% as of year-end 2024, demonstrating its financial strength through various market cycles.
Forward-Looking Statements
Looking ahead, Equitable remains focused on executing its strategic initiatives, particularly the completion of the Individual Life transaction with RGA expected in mid-2025. Management expressed confidence that the company’s businesses are benefiting from durable underlying growth drivers, including demographic trends favoring retirement solutions and increasing demand for investment advice.
The company’s diversified business model, with growing contributions from asset and wealth management, is expected to provide resilient cash flows even in challenging market environments. Following the close of the Individual Life transaction, Equitable anticipates having significant financial flexibility to pursue additional capital returns to shareholders and potential debt reduction.
While the first quarter results showed some challenges, particularly in the Protection Solutions segment, the company’s strategic positioning and capital management initiatives appear designed to enhance long-term shareholder value through improved capital efficiency and continued growth in its core businesses.
Full presentation:
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