Market-sensitive variable annuity guarantees
GMDB and GMIB features move with equity markets and rates, creating earnings volatility and hedge mismatch risk.
- Scope
- Variable annuity block and related derivatives
- Materiality
- high
Equitable Holdings, Inc.
Equitable Holdings, Inc. is a U.S. financial services group built around retirement, protection, asset management and wealth businesses, with additional legacy runoff operations. It earns revenue from fees, premiums and investment income, and uses reinsurance, hedging and capital management to reduce the volatility inherent in market-sensitive insurance products.
−11,8 %
−6,1 %
| % | |
|---|---|
| Individual Retirement | 28% Retirement savings and income products, including variable annuities and related account-based solutions. |
| Group Retirement | 18% Employer-sponsored retirement plan services and recordkeeping for workplace clients. |
| Asset Management | 22% Investment management and related services provided primarily through AllianceBernstein. |
| Protection Solutions | 17% Life insurance and employee benefits products such as VUL, IUL, term life, dental, vision and disability. |
| Wealth Management | 10% Advisory and brokerage services for retail and private wealth clients. |
| Legacy and Corporate | 5% Runoff insurance blocks, reinsurance-related items and corporate activities not allocated to operating segments. |
Equitable sells primarily to individuals saving for retirement, policyholders seeking life and protection coverage, and...
- Individual retirement clientsprimary
Buy variable annuities and retirement solutions to accumulate assets and convert savings into income.
- Employer-sponsored retirement plansprimary
Buy group retirement recordkeeping and plan services to support employee savings programs.
- Life insurance and protection customersprimary
Buy VUL, IUL and term life products to protect income, family and estate needs.
- Small and medium-sized businessessecondary
Buy dental, vision, life and disability benefits through the employee benefits platform.
- Institutional and retail asset management clientsprimary
Buy investment management services and strategies through AllianceBernstein.
- Wealth management clientssecondary
Buy advisory and portfolio services for retirement, brokerage and private wealth needs.
Equitable is primarily a U.S.-focused business, with its insurance subsidiaries regulated mainly in New York and...
- •United States is the core market for sales, policies and asset management
- •New York and Arizona are key regulatory jurisdictions for insurance subsidiaries
- •Bermuda is used for reinsurance and capital management structures
- •Domestic regulation affects dividend capacity and capital deployment
- •U.S. market exposure ties results to interest rates and equity markets
Equitable is focused on balancing growth businesses with runoff and capital-light actions that improve earnings quality...
01
Reinsure and run off legacy insurance blocksshort-term
Reduces capital intensity and lowers exposure to older variable annuity and life liabilities.
02
Expand fee-based retirement, wealth and asset managementmedium-term
Increases recurring, less capital-intensive revenue and diversifies earnings away from spread risk.
03
Maintain robust hedging and ALM disciplineshort-term
Protects earnings and capital from equity and interest-rate volatility embedded in insurance guarantees.
04
Optimize capital deployment and subsidiary dividend capacitymedium-term
Supports holding company liquidity and shareholder returns while navigating insurance regulation.
Equitable’s biggest risks come from market-sensitive insurance guarantees, where equity and interest-rate moves can...
Liquidity pressure from derivative collateral calls
Hedging programs require collateral and cash to meet settlement obligations when market values move adversely.
- Scope
- Insurance subsidiaries, especially Equitable Financial
- Materiality
- high
Regulatory dividend restrictions
Insurance subsidiaries need state approval or formula-based capacity to upstream capital to Holdings.
- Scope
- NYDFS and Arizona insurance regulation
- Materiality
- high
Runoff and outflow pressure
Legacy blocks and certain products continue to run off, which can reduce assets and fee base over time.
- Scope
- Legacy, run-off variable annuity and pension businesses
- Materiality
- medium
Reinsurance execution and counterparty risk
Capital release and risk transfer depend on closing, approvals and reinsurer performance.
- Scope
- RGA transaction and Bermuda reinsurance structures
- Materiality
- high
Market risk benefits and purchased market risk benefits
Insurance guarantee valuation and volatility in operating results
Reinsurance accounting
Reported earnings, liabilities and statutory capital
Derivative fair value accounting
Quarterly earnings volatility and liquidity needs
Investment valuation and impairments
Net investment income, realized losses and book value
Goodwill and deferred tax asset recoverability
Potential non-cash charges to earnings
: 28.4.2026