Equitable (EQH) Q4 2025 earnings summary

Executive summary

• Achieved full-year non-GAAP operating earnings of $5.64 per share, or $6.21 per share adjusted for notable items, with organic cash generation of $1.6 billion and record AUM/A of $1.1 trillion, up 10% year-over-year.

• Returned $1.8 billion to shareholders in 2025, including $500 million in additional share repurchases post-reinsurance transaction, representing a 68% payout ratio excluding incremental buybacks.

• Completed a major life reinsurance transaction with RGA, freeing $2 billion of capital and reducing mortality exposure by 75%.

• Achieved $120 million in run-rate expense savings by year-end 2025, on track for $150 million by 2027.

• Executed strategic initiatives including increased AB ownership, investment in FCA Re sidecar and Stifel Independent Advisors, and targeted expense savings.

Financial highlights

• Fourth quarter non-GAAP operating earnings were $513 million ($1.73 per share); net income was $215 million.

• Adjusted book value per share (ex-AOCI, AB at market) was $33.84; adjusted debt-to-capital ratio at 25%.

• Full-year payout ratio was 68% (excluding incremental buybacks), at the high end of the 60%-70% target.

• Year-end holding company cash was $1.1 billion, above the $500 million minimum target.

• Combined NAIC RBC ratio at year-end 2025 was approximately 475%, above the 400%+ target.

Outlook and guidance

• 2026 organic cash generation expected at $1.8 billion, with a path to $2 billion in 2027.

• 2026 EPS growth (excluding notable items) projected to exceed the 12%-15% target.

• Retirement pre-tax earnings expected to grow mid to high single digits; spreads to stabilize in H2 2026.

• Wealth management earnings forecasted for double-digit growth; asset management performance fees expected at $80-$100 million.

• Total company tax rate expected at ~20% in 2026.