Equitable Holdings Delivers Strong Q4 Earnings with $2 Billion Non-GAAP Operating Earnings
Equitable Holdings, a leading financial services company, has reported impressive fourth-quarter earnings, exceeding its annualized growth guidance. In a recent conference call, the company revealed that it generated non-GAAP operating earnings of $2 billion, or $5.93 per share, marking a 29% year-over-year increase on a per-share basis.
Mark Pearson, President and Chief Executive Officer of Equitable Holdings, highlighted the strength of the company's integrated business model, stating that 2024 showcased "the power of our integrated business model and the strong growth momentum across our retirement, asset management, and wealth management segments."
The company's financial results demonstrated significant progress against its key strategic initiatives. Through year-end, Equitable Holdings achieved $100 million in run-rate expense saves, putting it on track to meet or exceed its $150 million target by 2027. The company also successfully repositioned its investment portfolio, generating $80 million of incremental net investment income to date, ahead of plan to achieve $110 million by 2027.
AB's separation of Bernstein Research Services business and completion of its New York City office relocation were also highlighted as significant achievements. AB expects to produce a 33% plus adjusted operating margin in 2025, representing over 400 basis points of improvement from 2022.
The company's retirement segment reported full-year net inflows of $7.1 billion, with wealth management recording full-year net inflows of $4 billion. This strong organic growth was achieved while maintaining a stable fee rate, making Equitable Holdings a clear leader in the emerging implant guarantee market, highlighted by over $600 million of net inflows in the year from BlackRock's LifePath Paycheck offering and the announcement of a new partnership with JPMorgan Asset Management.
Equitable Holdings also established itself as a clear leader in the emerging implant guarantee market, with over $600 million of net inflows in the year. The company expects additional inflows in the first half of 2025 and sees significant growth potential in this market over the next few years.
The strong cash flow generated by Equitable Holdings enables the company to consistently return capital to shareholders. In 2024, the company deployed $1.3 billion, equating to a 66% payout ratio, consistent with its 60% to 70% target range. With forecasted cash generation of $1.6 billion to $1.7 billion for 2025, continuing the ramp to $2 billion by 2027, Equitable Holdings is poised for continued growth and success.
