Equitable (EQH) 2024 KBW Insurance Conference summary

Review of financial targets and progress

• Cash generation target for 2023-2027 is $1.3-$2 billion, with current guidance at $1.4-$1.5 billion, up 8%-15% year over year.

• Payout ratio target is 60%-70%, currently at 67% since Investor Day.

• EPS growth target raised to 12%-15%, with first half of the year at 19% growth.

• Six out of 20 quarters into the plan, momentum and outlook remain positive.

RILA and annuity market trends

• RILA sales are driven by favorable demographics, higher interest rates, and product simplicity.

• RILA market has grown to $50 billion in sales, with continued year-over-year growth forecasted.

• RILA products offer equity exposure with downside protection, resonating with retirees.

• RILA demand is less sensitive to interest rates than fixed annuities; sales remained resilient even in low-rate environments.

• Top 10 players control 90% of the RILA market, with distribution as a key differentiator.

Traditional variable annuities and risk management

• Traditional VA sales have increased, but products now feature floating rate guarantees and passive funds for better hedging.

• Guarantees are fully hedged, and conservative pricing is prioritized to maintain investor trust.

• Conservative pricing is possible due to fewer market entrants, supporting attractive IRR.