Equitable (EQH) Status Update summary

Strategic rationale and transaction overview

• Reinsuring 75% of the in-force individual life insurance block to RGA, generating over $2 billion in value through ceding commission and capital release.

• Transaction accelerates shift toward higher-growth, higher-return businesses: retirement, asset management, and wealth management.

• RGA, a AA-rated reinsurer, will manage the block, reducing earnings volatility and capital intensity.

• Focus in life insurance will narrow to select products for advisors and third-party access, reducing costs and capital commitment.

• AB will continue managing about 70% of general account assets post-transaction, with deal expected to close in mid-2025.

Capital redeployment and financial impacts

• Over $2 billion of deployable proceeds expected; $1.8 billion tender offer for AB Holdings units and $500 million incremental share repurchases planned.

• Transaction is accretive to EPS and cash flow per share, supporting 2027 financial targets.

• By 2027, asset and wealth management expected to contribute 35-60% of operating earnings and 60% of annual cash generation.

• RBC ratio target raised to at least 400%, with a 75-100 point increase expected and GAAP leverage ratio rising to ~30%.

• GAAP net loss at close due to realized loss on assets transferred, but limited impact to Non-GAAP operating earnings.

Business mix transformation and synergies

• Shift in business mix reduces exposure to mortality-driven volatility and increases predictability of earnings.

• Increased ownership in AB strengthens synergies, with AB managing $132 billion of assets and benefiting from Equitable’s seed capital.

• AB has strong insurance expertise, managing over $180 billion for more than 80 insurance clients.

• Integration generates value through asset management net flows, investment returns, and competitive retirement products.

• No plans to take AB private; public listing seen as valuable for M&A and compensation.