Equitable (EQH) Q4 2024 earnings summary

Executive summary

• Achieved full-year non-GAAP operating earnings of $2 billion ($5.93/share), up 29% year-over-year; adjusted EPS was $6.18, up 20%, exceeding annualized growth guidance.

• Assets under management and administration rose 10% year-over-year, surpassing $1 trillion.

• Generated $1.5 billion in cash flow to holding company, with over 50% from asset and wealth management; returned $1.3 billion to shareholders (66% payout ratio).

• Achieved $100 million in run-rate expense savings, on track for $150 million by 2027, and over $80 million incremental net investment income.

• Strong business momentum with $7.1 billion net inflows in Retirement, $4.0 billion in Wealth Management, and $4.3 billion active net inflows in Asset Management.

Financial highlights

• Q4 non-GAAP operating earnings were $522 million ($1.57/share), up 18% year-over-year; adjusted for notable items, EPS was $1.65, up 23%.

• GAAP net income for Q4 was $899 million, compared to a net loss of $698 million in Q4 2023.

• Full-year cash generation reached $1.5 billion, at the high end of guidance.

• Reduced shares outstanding by 7% in 2024 and 15% over two years.

• Ended year with $1.8 billion in holding company cash and liquid assets.

Outlook and guidance

• 2025 cash generation forecasted at $1.6-$1.7 billion, targeting $2 billion by 2027.

• 2025 EPS growth expected to align with 12%-15% target.

• Protection solutions earnings for 2025 guided to lower end of $200-$300 million range, assuming stable mortality and low alternative investment income.

• Alternative investment returns expected to start at 5%-6% in early 2025, grading up as M&A and IPO activity increases; variable investment income expected at low end of 8%-12% range.

• Tax rate guidance for 2025: 20% overall, 17% insurance, 26% wealth management, 30% AB.