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Equibles

8-K

Equitable Holdings, Inc. (EQH)

8-K 2021-05-05 For: 2021-05-05
View Original
Added on April 11, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 5, 2021

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Equitable Holdings, Inc.

(Exact name of registrant as specified in its charter)

Delaware 001-38469 90-0226248
(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
incorporation or organization) Identification No.)

1290 Avenue of the Americas, New York, New York                     10104

(Address of principal executive offices) (Zip Code)

(212) 554-1234

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Title of each class Trading Symbol Name of Exchange on which registered
Common Stock EQH New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series A EQH PR A New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series C EQH PR C New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 under the Securities Act (17 CFR 230.405) or Rule 12b-2 under the Exchange Act (17 CFR 240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02    Results of Operations and Financial Condition.

On May 5, 2021, Equitable Holdings, Inc. (“EQH”) issued a press release announcing its financial results for the quarter ended March 31, 2021. A copy of the press release containing this information is furnished as Exhibit 99.1 hereto and is incorporated herein by reference. In addition, more detailed financial information may be found in EQH’s Financial Supplement for the quarter ended March 31, 2021. A copy of the Financial Supplement for the quarter ended March 31, 2021 is furnished as Exhibit 99.2 hereto and is incorporated herein by reference.

As provided in General Instruction B.2 of Form 8-K, the information and exhibits provided pursuant to this Item 2.02 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, nor shall they be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 7.01    Regulation FD Disclosure.

In connection with its earnings call for the quarter ended March 31, 2021, EQH has prepared a presentation for use with investors and other members of the investment community, which will be accessible via EQH’s investor relations website at https://ir.equitableholdings.com at 8 a.m. ET on Thursday, May 6, 2021.

As provided in General Instruction B.2 of Form 8-K, the information provided pursuant to this Item 7.01 shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01    Financial Statements and Exhibits.

(d) Exhibits

Exhibit No. Description of Exhibit
99.1 Press release of Equitable Holdings, Inc., dated May 5, 2021 (furnished and not filed)
99.2 Financial Supplement for the quarter ended March 31, 2021 (furnished and not filed)
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

EQUITABLE HOLDINGS, INC.
Date: May 5, 2021 By: /s/ Ralph Petruzzo
Name: Ralph Petruzzo
Title: Vice President and Associate General Counsel

Document

EQUITABLE HOLDINGS REPORTS FIRST QUARTER 2021 RESULTS

_______________________________________

Strong first quarter results evidenced by c. $4.6bn of net flows and AUM up 27%

Net loss of $1.5bn; net loss per share of $3.46

Non-GAAP operating earnings1 of $600m, or $1.35 per share

Balance sheet fortified by economic hedging with 95% effectiveness; supporting capital return of $504m to shareholders

Generating value through robust risk management; VA reinsurance transaction on track

_______________________________________

New York, NY, May 5, 2021 — Equitable Holdings, Inc. (“Equitable Holdings”, “Holdings”, or the “Company”) (NYSE: EQH) today announced financial results for the first quarter ended March 31, 2021.

“Thanks to the resiliency of Equitable’s business model, we began 2021 with strong operating performance and delivered another quarter of solid results, with non-GAAP operating earnings of $1.35 per share, up 19% year-over-year. Buoyed by net flows and strong equity markets, assets under management grew 27% year-over-year to $822 billion, reaching another record high,” said Mark Pearson, President and Chief Executive Officer.

Mr. Pearson continued, “We remain grounded in our fair value economic approach to managing the business. Our balance sheet de-risking efforts will be further accelerated by our landmark variable annuity reinsurance transaction with Venerable, which remains on track to close in the second quarter. In addition to the benefits we receive from managing to a fair value framework, we remain confident in our ability to generate long-term value.”

Consolidated Results
First Quarter
(in millions, except per share amounts or unless otherwise noted) 2021 2020
Total Assets Under Management (“AUM”, in billions) $ 822 $ 646
Net income (loss) attributable to Holdings (1,488) 5,388
Net income (loss) attributable to Holdings per common share (3.46) 11.60
Non-GAAP operating earnings (loss) 600 535
Non-GAAP operating earnings (loss) per common share (“EPS”) 1.35 1.13

As of March 31, 2021, total AUM was $822 billion, a year-over-year increase of 27% driven by net inflows and market performance over the prior twelve months.

The net loss attributable to Holdings for the first quarter of 2021 was $1,488 million compared to net income of $5,388 million in the first quarter of 2020 driven primarily by non-economic market impacts from hedging and non-performance risk under U.S. GAAP accounting.

1 This press release includes certain non-GAAP financial measures. More information on these measures and reconciliations to the most comparable U.S. GAAP measures can be found in the “Use of Non-GAAP Financial Measures” section of this release.

Non-GAAP operating earnings in the first quarter of 2021 improved to $600 million from $535 million in the first quarter of 2020, primarily due to higher market-driven revenues including alternative investments and fee income.

As of March 31, 2021, book value per common share, including accumulated other comprehensive income (“AOCI”), was $21.32. Book value per common share, excluding AOCI, was $19.59.

Business Highlights

•Business segment highlights:

◦Individual Retirement had a record quarter in first year premiums, up 24% year-over-year, driven by another record quarter in Structured Capital Strategies (“SCS”) sales.

◦Group Retirement renewal contributions increased 6% year-to-date, reflecting amplified Advisor outreach, effective digital engagement and positive flows in the tax-exempt market.

◦Investment Management and Research (AllianceBernstein or “AB”)2 reported active net inflows of $6.5 billion in the quarter, with positive net flows across all distribution channels.

◦Protection Solutions continues to drive momentum in its Employee Benefits business with strong persistency and gross written premiums up 47% year-over-year.

•Capital management program:

◦As part of the Company’s 2021 capital management program, it returned $504 million to shareholders in the first quarter, including $74 million of quarterly cash dividends and $430 million of share repurchases.

◦The Company intends to increase its quarterly cash dividend from $0.17 to $0.18 per share in the second quarter3.

◦The Company expects to continue delivering on its 50-60% payout ratio target, with an incremental $500 million of share repurchases in 2021, subject to the close of the variable annuity reinsurance transaction with Venerable.

•Strong capitalization and liquidity:

◦Fortified balance sheet immunized from interest rate risk and protected by hedging to economic liabilities, with 95% hedging effectiveness in the quarter.

◦As of March 31, 2021, the Company reported cash and liquid assets of c. $2.5 billion at Holdings, above its $500 million liquidity target.

•Delivering long-term shareholder value:

◦Continued focus on growing capital-resilient businesses, supported by the variable annuity reinsurance transaction, which remains on track to close in the second quarter of 2021.

◦Expenses lower year-over-year, excluding one-time items and revenue-related variable expenses, reflecting $8 million of net realized expense savings in the quarter and our continued focus on productivity.

2 Refers to AllianceBernstein L.P. and AllianceBernstein Holding L.P., collectively.

3 Any declaration of dividends will be at the discretion of the Board and will depend on our financial condition and other factors.

Business Segment Results

Individual Retirement

(in millions, unless otherwise noted) Q1 2021 Q1 2020
Account value (in billions) $ 120.8 $ 93.6
Segment net flows
Current Product Offering 559 615
Fixed Rate (1,075) (935)
Total segment net flows (516) (320)
Operating earnings (loss) 363 373

•Account value increased by 29% primarily driven by equity market performance over the prior twelve months.

•Net flows of $(516) million decreased compared to the first quarter of 2020 as anticipated outflows from the older fixed rate living benefits block of $(1,075) million were partially offset by net inflows from our current product offering of less capital-intensive products of $559 million.

•Operating earnings decreased from $373 million to $363 million versus the prior year quarter, primarily due to higher death claims, partially offset by higher net investment income from alternatives and fee-type revenue on higher account values.

Group Retirement

(in millions, unless otherwise noted) Q1 2021 Q1 2020
Account value (in billions) $ 44.0 $ 33.1
Segment net flows (51) 128
Operating earnings (loss) 151 106

•Account value increased by 33% driven primarily by equity market performance over the prior twelve months.

•Net flows of $(51) million decreased by $179 million versus the prior year quarter primarily due to COVID-19 impacts on first year premiums and unfavorable surrender experience, partially offset by higher renewal premiums and positive net flows in the tax-exempt market.

•Operating earnings increased from $106 million to $151 million versus the prior year quarter, primarily due to higher net investment income from alternatives and fee-type revenue on higher account values.

Investment Management and Research

(in millions, unless otherwise noted) Q1 2021 Q1 2020
Total AUM (in billions) $ 697.2 $ 541.8
Segment net flows (in billions) 5.2 (5.6)
Operating earnings (loss) 121 95

•AUM increased by 29% due to equity market performance and net inflows over the prior twelve months.

•First quarter net flows of $5.2 billion were driven by net inflows across all distribution channels, including $6.5 billion in active net inflows.

•Operating earnings increased from $95 million to $121 million, primarily driven by higher base fees on higher average AUM.

Protection Solutions

(in millions) Q1 2021 Q1 2020
Gross written premiums $ 762 $ 778
Annualized premiums 69 56
Operating earnings (loss) 41 49

•Gross written premiums decreased 2% versus the prior year quarter as strong growth in Employee Benefits was offset by declines in Life premiums, reflecting a shift to less interest-sensitive life insurance accumulation products.

•Annualized premiums increased from $56 million to $69 million versus the prior year quarter primarily driven by continued growth in our Employee Benefits business.

•Operating earnings decreased from $49 million to $41 million versus the prior year quarter, primarily due to unfavorable COVID-19 mortality experience as well as lower premiums, partially offset by the release of the PFBL reserves.

Corporate and Other

Operating loss of $76 million in the first quarter improved compared to operating loss of $88 million in the prior year quarter, primarily driven by higher net investment income from alternative investments and lower interest credited.

Earnings Conference Call

Equitable Holdings will host a conference call at 8 a.m. ET May 6, 2021 to discuss its first quarter 2021 results. The conference call webcast, along with additional earnings materials will be accessible on the company’s investor relations website at ir.equitableholdings.com. Please log on to the webcast at least 15 minutes prior to the call to download and install any necessary software.

To register for the conference call, please use the following link:

EQH First Quarter 2021 Earnings Call

After registering, you will receive an email confirmation including dial in details and a unique conference call code for entry. Registration is open through the live call. To ensure you are connected for the full call we suggest registering a day in advance or at minimum 10 minutes before the start of the call.

A webcast replay will be made available on the Equitable Holdings Investor Relations website at ir.equitableholdings.com.

About Equitable Holdings

Equitable Holdings, Inc. (NYSE: EQH) is a financial services holding company comprised of two complementary and well-established principal franchises, Equitable and AllianceBernstein. Founded in 1859, Equitable provides advice, protection and retirement strategies to individuals, families and small businesses. AllianceBernstein is a global investment management firm that offers high-quality research and diversified investment services to institutional investors, individuals and private wealth clients in major world markets. Equitable Holdings has approximately 12,000 employees and financial professionals, $822 billion in assets under management (as of 3/31/2021) and more than 5 million client relationships globally.

Contacts:

Investor Relations

Isil Muderrisoglu

(212) 314-2476

IR@equitable.com

Media Relations

Matt Asensio

(212) 314-2010

mediarelations@equitable.com

Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “intends,” “seeks,” “aims,” “plans,” “assumes,” “estimates,” “projects,” “should,” “would,” “could,” “may,” “will,” “shall” or variations of such words are generally part of forward-looking statements. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Equitable Holdings, Inc. (“Holdings”) and its consolidated subsidiaries. “We,” “us” and “our” refer to Holdings and its consolidated subsidiaries, unless the context refers only to Holdings as a corporate entity. There can be no assurance that future developments affecting Holdings will be those anticipated by management. Forward-looking statements include, without limitation, all matters that are not historical facts.

These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there are certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements, including, among others: (i) conditions in the financial markets and economy, including the impact of COVID-19 and related economic conditions, equity market declines and volatility, interest rate fluctuations, impacts on our goodwill and changes in liquidity and access to and cost of capital; (ii) operational factors, including reliance on the payment of dividends to Holdings by its subsidiaries, protection of confidential customer information or proprietary business information, operational failures by us or our service providers, and catastrophic events, such as the outbreak of pandemic diseases including COVID-19; (iii) credit, counterparties and investments, including counterparty default on derivative contracts, failure of financial institutions, defaults by third parties and affiliates and economic downturns, defaults and other events adversely affecting our investments; (iv) our reinsurance and hedging programs; (v) our products, structure and product distribution, including variable annuity guaranteed benefits features within certain of our products, variations in statutory capital requirements, financial strength and claims-paying ratings, state insurance laws limiting the ability of our insurance subsidiaries to pay dividends and key product distribution relationships; (vi) estimates, assumptions and valuations, including risk management policies and procedures, potential inadequacy of reserves and experience differing from pricing expectations, amortization of deferred acquisition costs and financial models; (vii) our Investment Management and Research segment, including fluctuations in assets under management and the industry-wide shift from actively-managed investment services to passive services; (viii) legal and regulatory risks, including federal and state legislation affecting financial institutions, insurance regulation and tax reform; (ix) risks related to our common stock and (x) general risks, including strong industry competition, information systems failing or being compromised and protecting our intellectual property.

Forward-looking statements should be read in conjunction with the other cautionary statements, risks, uncertainties and other factors identified in Holdings’ Annual Report on Form 10-K for the year ended December 31, 2020, and in Holdings’ subsequent filings with the Securities and Exchange Commission. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law.

Use of Non-GAAP Financial Measures

In addition to our results presented in accordance with U.S. GAAP, we report Non-GAAP Operating Earnings, Non-GAAP Operating EPS, and Book Value per common share, excluding AOCI, each of which is a measure that is not determined in accordance with U.S. GAAP. Management principally uses these non-GAAP financial measures in evaluating performance because they present a clearer picture of our operating performance and they allow management to allocate resources. Similarly, management believes that the use of these Non-GAAP financial measures, together with relevant U.S. GAAP measures, provide investors with a better understanding of our results of operations and the underlying profitability drivers and trends of our business. These non-GAAP financial measures are intended to remove from our results of operations the impact of market changes (where there is mismatch in the valuation of assets and liabilities) as well as certain other expenses which are not part of our underlying profitability drivers or likely to re-occur in the foreseeable future, as such items fluctuate from period-to-period in a manner inconsistent with these drivers. These measures should be considered supplementary to our results that are presented in accordance with U.S. GAAP and should not be viewed as a substitute for the U.S. GAAP measures. Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Consequently, our non-GAAP financial measures may not be comparable to similar measures used by other companies.

We also discuss certain operating measures, including AUM, AV, and certain other operating measures, which management believes provide useful information about our businesses and the operational factors underlying our financial performance.

Non-GAAP Operating Earnings

Non-GAAP operating earnings is an after-tax non-GAAP financial measure used to evaluate our financial performance on a consolidated basis that is determined by making certain adjustments to our consolidated after-tax net income attributable to Holdings. The most significant of such adjustments relates to our derivative positions, which protect economic value and statutory capital, and are more sensitive to changes in market conditions than the variable annuity product liabilities as valued under U.S. GAAP. This is a large source of volatility in net income.

Non-GAAP operating earnings equals our consolidated after-tax net income attributable to Holdings adjusted to eliminate the impact of the following items:

•Items related to variable annuity product features, which include: (i) certain changes in the fair value of the derivatives and other securities we use to hedge these features; (ii) the effect of benefit ratio unlock adjustments related to extraordinary economic conditions or events such as COVID-19; and (iii) changes in the fair value of the embedded derivatives reflected within variable annuity products’ net derivative results and the impact of these items on DAC amortization on our SCS product;

•Investment (gains) losses, which includes credit loss impairments of securities/investments, sales or disposals of securities/investments, realized capital gains/losses and valuation allowances;

•Net actuarial (gains) losses, which includes actuarial gains and losses as a result of differences between actual and expected experience on pension plan assets or projected benefit obligation during a given period related to pension, other postretirement benefit obligations, and the one-time impact of the settlement of the defined benefit obligation;

•Other adjustments, which primarily include restructuring costs related to severance and separation, COVID-19 related impacts, net derivative gains (losses) on certain Non-GMxB derivatives, net investment income from certain items including consolidated VIE investments, seed capital mark-to-market adjustments, unrealized gain/losses associated with equity securities and certain legal accruals; and

•Income tax expense (benefit) related to the above items and non-recurring tax items, which includes the effect of uncertain tax positions for a given audit period.

Because Non-GAAP operating earnings excludes the foregoing items that can be distortive or unpredictable, management believes that this measure enhances the understanding of the Company’s underlying drivers of profitability and trends in our business, thereby allowing management to make decisions that will positively impact our business.

We use the prevailing corporate federal income tax rate of 21% while taking into account any non-recurring differences for events recognized differently in our financial statements and federal income tax returns as well as partnership income taxed at lower rates when reconciling Net income (loss) attributable to Holdings to Non-GAAP operating earnings.

The table below presents a reconciliation of Net income (loss) attributable to Holdings to Non-GAAP Operating Earnings for the three months ended March 31, 2021 and 2020:

Three Months Ended March 31,
(in millions) 2021 2020
Net income (loss) attributable to Holdings $ (1,488) $ 5,388
Adjustments related to:
Variable annuity product features (1) 2,267 (6,869)
Investment (gains) losses (183) (4)
Net actuarial (gains) losses related to pension and other postretirement benefit obligations 34 27
Other adjustments (2) (3) (4) 524 695
Income tax expense (benefit) related to above adjustments (5) (555) 1,292
Non-recurring tax items 1 6
Non-GAAP operating earnings $ 600 $ 535

_______________

(1)Includes COVID-19 impact on Variable annuity product features due to an assumption update of $1.5 billion and other COVID-19 related impacts of $35 million for the three months ended March 31, 2020.

(2)Includes assumption update due to COVID-19 of $1.0 billion and other COVID-19 related impacts of $51 million for the three months ended March 31, 2020.

(3)Includes separation costs of $21 million and $32 million for the three months ended March 31, 2021 and 2020, respectively.

(4)Includes certain legal accruals related to the cost of insurance litigation of $180 million for the three months ended March 31, 2021. No adjustment was made to prior period operating earnings as the impact was immaterial.

(5)Includes income taxes of ($547) million for the above related COVID-19 items for the three months ended March 31, 2020.

Non-GAAP Operating EPS

Non-GAAP Operating Earnings per common share is calculated by dividing Non-GAAP Operating Earnings less preferred dividends by diluted common shares outstanding. The table below presents a reconciliation of GAAP EPS to Non-GAAP Operating EPS for the three months ended March 31, 2021 and 2020.

Three Months Ended March 31,
(per share amounts) 2021 2020
Net income (loss) attributable to Holdings (1) $ (3.43) $ 11.62
Less: Preferred stock dividend 0.03 0.02
Net Income (loss) available to common shareholders (3.46) 11.60
Adjustments related to:
Variable annuity product features (2) 5.22 (14.82)
Investment (gains) losses (0.42) (0.01)
Net actuarial (gains) losses related to pension and other postretirement benefit obligations 0.08 0.06
Other adjustments (3) (4) (5) 1.21 1.50
Income tax expense (benefit) related to above adjustments (6) (1.28) 2.79
Non-recurring tax items — 0.01
Non-GAAP Operating Earnings (6) $ 1.35 $ 1.13

_______________

(1)Due to reporting a net loss for the three months ended March 31, 2021, basic shares was used in the diluted earnings per common share calculation as the use of diluted shares would have resulted in a lower loss per share.

(2)Includes COVID-19 impact on Variable annuity product features due to an assumption update of $3.17 and other COVID-19 related impacts of $0.08 for the three months ended March 31, 2020.

(3)Includes assumption update due to COVID-19 of $2.26 and other COVID-19 related impacts of $0.11 for the three months ended March 31, 2020.

(4)Includes separation costs of $0.05 and $0.07 for the three months ended March 31, 2021 and 2020, respectively.

(5)Includes certain legal accruals related to the cost of insurance litigation of $0.41 for the three months ended March 31, 2021. No adjustments were made to prior period non-GAAP operating EPS as the impact was immaterial.

(6)Includes income taxes of $(1.18) for the above related COVID-19 items for the three months ended March 31, 2020.

Book Value per common share, excluding AOCI

We use the term “book value” to refer to Total equity attributable to Holdings’ common shareholders. Book Value per common share, excluding AOCI, is our total equity attributable to Holdings, excluding AOCI and preferred stock, divided by ending common shares outstanding.

March 31,<br>2021 December 31, 2020
Book value per common share $ 21.32 $ 32.46
Per share impact of AOCI (1.73) (8.76)
Book Value per common share, excluding AOCI $ 19.59 $ 23.70

Other Operating Measures

We also use certain operating measures which management believes provide useful information about our businesses and the operational factors underlying our financial performance.

Account Value (“AV”)

Account value generally equals the aggregate policy account value of our retirement products.

Assets Under Management (“AUM”)

AUM means investment assets that are managed by one of our subsidiaries and includes: (i) assets managed by AB, (ii) the assets in our general account investment portfolio and (iii) the separate account assets of our Individual Retirement, Group Retirement and Protection Solutions businesses. Total AUM reflects exclusions between segments to avoid double counting.

Segment net flows

Net change in segment customer account balances in a period including, but not limited to, gross premiums, surrenders, withdrawals and benefits. It excludes investment performance, interest credited to customer accounts and policy charges.

Consolidated Statements of Income (Loss) (Unaudited)

Three Months Ended March 31,
2021 2020
(in millions)
REVENUES
Policy charges and fee income $ 949 $ 996
Premiums 258 289
Net derivative gains (losses) (2,546) 9,400
Net investment income (loss) 884 629
Investment gains (losses), net:
Credit losses on Available for Sale debt securities and loans 1 (12)
Other investment gains (losses), net 183 16
Total investment gains (losses), net 184 4
Investment management and service fees 1,257 1,136
Other income 167 155
Total revenues 1,153 12,609
BENEFITS AND OTHER DEDUCTIONS
Policyholders’ benefits 939 2,776
Interest credited to policyholders’ account balances 291 317
Compensation and benefits 580 526
Commissions and distribution-related payments 382 338
Interest expense 74 52
Amortization of deferred policy acquisition costs 87 1,303
Other operating costs and expenses 608 438
Total benefits and other deductions 2,961 5,750
Income (loss) from continuing operations, before income taxes (1,808) 6,859
Income tax (expense) benefit 408 (1,434)
Net income (loss) (1,400) 5,425
Less: Net income (loss) attributable to the noncontrolling interest 88 37
Net income (loss) attributable to Holdings (1,488) 5,388
Less: Preferred stock dividends 13 13
Net income (loss) available to Holdings’ common shareholders $ (1,501) $ 5,375

Earnings Per Common Share

Three Months Ended March 31,
2021 2020
(in millions)
Earnings per common share
Basic $ (3.46) $ 11.66
Diluted $ (3.46) $ 11.60
Weighted average shares
Weighted average common stock outstanding for basic earnings per common share 434.2 461.0
Weighted average common stock outstanding for diluted earnings per common share (1) 434.2 463.5

(1)Due to net loss for the three months ended March 31, 2021 approximately 4.3 million more shares were excluded from the diluted earnings per common share calculation than would have been excluded as being anti-dilutive under the treasury stock method.

Results of Operations by Segment

Three Months Ended March 31,
2021 2020
(in millions)
Operating earnings (loss) by segment:
Individual Retirement $ 363 $ 373
Group Retirement 151 106
Investment Management and Research 121 95
Protection Solutions 41 49
Corporate and Other (76) (88)
Non-GAAP Operating Earnings $ 600 $ 535

Select Balance Sheet Statistics

March 31,<br>2021 December 31,<br>2020
(in millions)
ASSETS
Total investments and cash and cash equivalents $ 112,292 $ 115,266
Separate Accounts assets 139,795 135,950
Total assets 276,832 275,397
LIABILITIES
Short-term and long-term debt $ 4,022 $ 4,115
Future policy benefits and other policyholders' liabilities 35,922 39,881
Policyholders’ account balances 73,303 66,820
Total liabilities 264,427 258,077
EQUITY
Preferred stock 1,562 1,269
Accumulated other comprehensive income (loss) 740 3,863
Total equity attributable to Holdings $ 10,693 $ 15,576
Total equity attributable to Holdings' common shareholders (ex. AOCI) 8,391 10,444

Assets Under Management (Unaudited)

March 31,<br>2021 December 31,<br>2020
(in billions)
Assets Under Management
AB AUM $ 697.2 $ 685.9
Exclusion for General Account and other Affiliated Accounts (84.5) (87.6)
Exclusion for Separate Accounts (42.2) (40.5)
AB third party $ 570.4 $ 557.8
Total company AUM
AB third party $ 570.4 $ 557.8
General Account and other Affiliated Accounts (1) 112.3 115.3
Separate Accounts (2) 139.8 136.0
Total AUM $ 822.5 $ 809.0

_______________

(1)“General Account and Other Affiliated Accounts” refers to assets held in the general accounts of our insurance companies and other assets on which we bear the investment risk.

(2)“Separate Accounts” refers to the separate account investment assets of our insurance subsidiaries excluding any assets on which we bear the investment risk.

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Document

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Table of Contents
Consolidated Financials and Key Metrics Page
Key Metrics Summary 4
Consolidated Statements of Income (Loss) 5
Consolidated Balance Sheets 6
Consolidated Capital Structure 7
Operating Earnings (Loss) by Segment and Corporate and Other 8
Assets Under Management and Administration 9
Sales Metrics by Segment 10
Select Metrics from Business Segments
Individual Retirement
Statements of Operating Earnings (Loss) and Summary Metrics 12
Select Operating Metrics 13
Group Retirement
Statements of Operating Earnings (Loss) and Summary Metrics 14
Select Operating Metrics 15
Investment Management and Research
Statements of Operating Earnings (Loss) and Summary Metrics 16
Select Operating Metrics 17
Net Flows 18
Protection Solutions
Statements of Operating Earnings (Loss) and Summary Metrics 19
Select Operating Metrics 20
Investments
Consolidated Investment Portfolio Composition 22
Consolidated Results of General Account Investment Portfolio 23
Additional Information
Deferred Policy Acquisition Costs Rollforward 25
Use of Non-GAAP Financial Measures 26
Reconciliation of Non-GAAP Measures 28
Glossary of Selected Financial and Product Terms 31
Analyst Coverage, Ratings & Contact Information 32

All information included in this financial supplement is unaudited.

This financial supplement includes information from prior periods which have been revised.

This financial supplement should be read in conjunction with Equitable Holdings, Inc.’s (“EQH”) Quarterly Report on Form 10-Q for the quarter ended March 31, 2021.

Equitable Holdings’ filings with the Securities and Exchange Commission (“SEC”) can be accessed upon filing at the SEC’s website at www.sec.gov, and at our website at ir.equitableholdings.com.

1Q 2021 Financial Supplement 2

Consolidated Financials

and Key Metrics

1Q 2021 Financial Supplement 3
Key Metrics Summary
--- For the Three Months Ended or As of For the Three Months Ended or As of
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(in millions USD, unless otherwise indicated) 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021 Change 3/31/2020 3/31/2021 Change
Net income (loss) $ 5,425 $ (3,933) $ (705) $ (1,136) $ (1,400) (125.8) % $ 5,425 $ (1,400) (125.8) %
Net income (loss) attributable to the noncontrolling interest (37) (86) (74) (102) (88) (137.8) % (37) (88) (137.8) %
Net income (loss) attributable to Holdings $ 5,388 $ (4,019) $ (779) $ (1,238) $ (1,488) (127.6) % $ 5,388 $ (1,488) (127.6) %
Non-GAAP Operating Earnings (1) $ 535 $ 451 $ 568 $ 748 $ 600 12.1 % $ 535 $ 600 12.1 %
Total equity attributable to Holdings' shareholders $ 19,981 $ 17,498 $ 17,300 $ 15,576 $ 10,693 (46.5) % $ 19,981 $ 10,693 (46.5) %
Less: Preferred Stock 775 775 1,269 1,269 1,562 101.5 % 775 1,562 101.5 %
Total equity attributable to Holdings' common shareholders 19,206 16,723 16,031 14,307 9,131 (52.5) % 19,206 9,131 (52.5) %
Less: Accumulated other comprehensive income (loss) 2,289 3,928 4,188 3,863 740 (67.7) % 2,289 740 (67.7) %
Total equity attributable to Holdings' common shareholders (ex. AOCI) $ 16,917 $ 12,795 $ 11,843 $ 10,444 $ 8,391 (50.4) % $ 16,917 $ 8,391 (50.4) %
Return on Equity (ex. AOCI) - TTM 31.5 % 0.2 % (2.9) % (5.4) % (69.7) % 31.5 % (69.7) %
Non-GAAP Operating ROE (1) 17.1 % 16.7 % 16.3 % 17.3 % 21.3 % 17.1 % 21.3 %
Debt to capital:
Debt to Capital 17.4 % 19.0 % 19.2 % 20.9 % 26.4 % 17.4 % 26.4 %
Debt to Capital (ex. AOCI) 19.2 % 23.3 % 23.9 % 26.0 % 27.8 % 19.2 % 27.8 %
Per common share:
Diluted earnings per common share: (2)
Net income (loss) attributable to Holdings $ 11.60 $ (8.94) $ (1.77) $ (2.84) $ (3.46) (129.8) % $ 11.60 $ (3.46) (129.8) %
Non-GAAP Operating Earnings (1) $ 1.13 $ 0.98 $ 1.24 $ 1.65 $ 1.35 20.0 % $ 1.13 $ 1.35 20.0 %
Book value per common share $ 42.63 $ 37.21 $ 36.05 $ 32.46 $ 21.32 (50.0) % $ 42.63 $ 21.32 (50.0) %
Book value per common share (ex. AOCI) $ 37.55 $ 28.47 $ 26.63 $ 23.70 $ 19.59 (47.8) % $ 37.55 $ 19.59 (47.8) %
Weighted-average common shares outstanding:
Basic 461.0 450.4 447.5 442.8 434.2 (5.8) % 461.0 434.2 (5.8) %
Diluted 463.5 450.4 447.5 442.8 434.2 (6.3) % 463.5 434.2 (6.3) %
Ending common shares outstanding 450.5 449.4 444.7 440.8 428.3 (4.9) % 450.5 428.3 (4.9) %
Return to common shareholders:
Common stock dividend $ 69 $ 77 $ 76 $ 75 $ 74 $ 69 $ 74
Repurchase of common shares 205 25 100 100 430 205 430
Total capital returned to common shareholders $ 274 $ 102 $ 176 $ 175 $ 504 $ 274 $ 504
Market Values:
S&P 500 2,585 3,100 3,363 3,756 3,973 53.7 % 2,585 3,973 53.7 %
US 10-Year Treasury 0.7 % 0.7 % 0.7 % 0.9 % 1.7 % 0.7 % 1.7 %
Notes:
Some financial metrics have been revised for prior periods; for additional information, please refer to the 10-Q.
(1) This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer to the “Use of Non-GAAP Financial Measures” and "Glossary of Selected Financial and Product Terms" sections of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the “Non-GAAP Reconciliation” section in this document.
(2) For loss periods, dilutive shares were not included in the calculation of net income (loss) available to shareholders per common share or Non-GAAP Operating Earnings per common share as inclusion of such shares would have an anti-dilutive effect. 1Q 2021 Financial Supplement 4
--- ---
Consolidated Statements of Income (Loss)
---
For the Three Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(in millions , unless otherwise indicated) 6/30/2020 9/30/2020 12/31/2020 3/31/2021 Change 3/31/2020 3/31/2021 Change
Revenues
Policy charges and fee income 996 $ 877 $ 914 $ 948 $ 949 (4.7) % $ 996 $ 949 (4.7) %
Premiums 244 221 243 258 (10.7) % 289 258 (10.7) %
Net derivative gains (losses) (6,038) (1,472) (3,612) (2,546) (127.1) % 9,400 (2,546) (127.1) %
Net investment income (loss) 1,022 879 947 884 40.5 % 629 884 40.5 %
Investment gains (losses), net 169 17 554 184 N/M 4 184 N/M
Investment management and service fees 1,052 1,126 1,294 1,257 10.7 % 1,136 1,257 10.7 %
Other income 124 155 142 167 7.7 % 155 167 7.7 %
Total revenues (2,550) 1,840 516 1,153 (90.9) % 12,609 1,153 (90.9) %
Benefits and other deductions
Policyholders’ benefits 736 1,034 780 939 (66.2) % 2,776 939 (66.2) %
Interest credited to policyholders’ account balances 307 306 292 291 (8.2) % 317 291 (8.2) %
Compensation and benefits 469 503 598 580 10.3 % 526 580 10.3 %
Commissions and distribution related payments 302 342 369 382 13.0 % 338 382 13.0 %
Interest expense 48 52 48 74 42.3 % 52 74 42.3 %
Amortization of deferred policy acquisition costs 162 90 58 87 (93.3) % 1,303 87 (93.3) %
Other operating costs and expenses 434 436 392 608 38.8 % 438 608 38.8 %
Total benefits and other deductions 2,458 2,763 2,537 2,961 (48.5) % 5,750 2,961 (48.5) %
Income (loss) from operations, before income taxes (5,008) (923) (2,021) (1,808) (126.4) % 6,859 (1,808) (126.4) %
Income tax (expense) benefit 1,075 218 885 408 128.5 % (1,434) 408 128.5 %
Net income (loss) (3,933) (705) (1,136) (1,400) (125.8) % 5,425 (1,400) (125.8) %
Less: net (income) loss attributable to the noncontrolling interest (86) (74) (102) (88) (137.8) % (37) (88) (137.8) %
Net income (loss) attributable to Holdings 5,388 $ (4,019) $ (779) $ (1,238) $ (1,488) (127.6) % $ 5,388 $ (1,488) (127.6) %
Less: Preferred stock dividends (10) (11) (19) (13) — % (13) (13) — %
Net income (loss) available to Holdings' common shareholders 5,375 $ (4,029) $ (790) $ (1,257) $ (1,501) (127.9) % $ 5,375 $ (1,501) (127.9) %
Adjustments related to:
Variable annuity product features (1) (6,869) $ 5,722 $ 1,620 $ 3,439 $ 2,267 $ (6,869) $ 2,267
Investment gains (losses), net (169) (17) (554) (183) (4) (183)
Net actuarial gains (losses) related to pension and other postretirement benefit obligations 28 31 23 34 27 34
Other adjustments (2) (3) (4) 75 66 116 524 695 524
Income tax (expense) benefit related to above adjustments (5) (1,188) (357) (635) (555) 1,292 (555)
Non-recurring tax items 2 4 (403) 1 6 1
Non-GAAP Operating earnings (6) 535 $ 451 $ 568 $ 748 $ 600 $ 535 $ 600
Notes:
Some financial metrics have been revised for prior periods; for additional information, please refer to the 10-Q.
(1) Includes COVID-19 impact on Variable annuity product features due to an assumption update of 1.5 billion and other COVID-19 related impacts of 35 million for the three months ended March 31, 2020.
(2) Includes separation costs of 21 million and 32 million for the three months ended March 31, 2021 and 2020, respectively.
(3) Includes certain legal accruals related to the cost of insurance litigation of 180 million for the three months ended March 31, 2021. No adjustment was made to prior period operating earnings as the impact was immaterial.
(4) Includes assumption update due to COVID-19 of 1.0 billion and other COVID-19 related impacts of 51 million for the three months ended March 31, 2020.
(5) Includes income taxes of (547) million for the above related COVID-19 items for the three months ended March 31, 2020.
(6) This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer to the “Use of Non-GAAP Financial Measures” and "Glossary of Selected Financial      and Product Terms" sections of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the “Non-GAAP Reconciliation” section in this document.

All values are in US Dollars.

1Q 2021 Financial Supplement 5
Consolidated Balance Sheets
--- Balances as of
--- --- --- --- --- --- --- --- --- --- ---
(in millions USD, unless otherwise indicated) 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021
Assets
Total investments $ 96,228 $ 102,693 $ 105,778 $ 109,087 $ 105,497
Cash and cash equivalents 10,315 8,364 8,684 6,179 6,795
Cash and securities segregated, at fair value 2,013 1,882 1,869 1,753 1,413
Broker-dealer related receivables 2,436 1,998 1,929 2,223 2,361
Deferred policy acquisition costs 4,697 4,090 4,171 4,243 4,943
Goodwill and other intangible assets, net 4,760 4,756 4,745 4,737 4,744
Amounts due from reinsurers 4,614 4,665 4,580 4,566 4,526
GMIB reinsurance contract asset, at fair value 2,823 2,931 2,818 2,488 1,907
Other assets 5,824 3,724 4,476 3,701 3,859
Assets held-for-sale 843 — — 470 483
Separate Accounts assets 106,128 118,915 123,446 135,950 139,795
Total assets $ 240,681 $ 254,018 $ 262,496 $ 275,397 $ 276,832
Liabilities
Policyholders’ account balances $ 55,810 $ 59,272 $ 62,726 $ 66,820 $ 73,303
Future policy benefits and other policyholders’ liabilities 38,001 41,506 41,139 39,881 35,922
Broker-dealer related payables 1,001 1,001 760 1,443 2,283
Customers related payables 3,630 3,199 3,461 3,417 3,179
Amounts due to reinsurers 1,380 1,399 1,391 1,381 1,340
Short-term and long-term debt 4,217 4,113 4,114 4,115 4,022
Income taxes payable 2,327 1,822 1,648 749 —
Notes issued by consolidated variable interest entities, at fair value using the fair value option — — — 313 323
Other liabilities 5,716 3,666 4,864 3,686 3,990
Liabilities held-for-sale 679 — — 322 270
Separate Accounts liabilities 106,128 118,915 123,446 135,950 139,795
Total liabilities 218,889 234,893 243,549 258,077 264,427
Redeemable noncontrolling interest 257 87 95 143 137
Equity
Preferred stock 775 775 1,269 1,269 1,562
Common stock 5 5 5 5 5
Additional paid-in capital 1,930 1,938 1,953 1,985 1,928
Treasury shares (2,025) (2,047) (2,147) (2,245) (2,300)
Retained earnings 17,007 12,899 12,032 10,699 8,758
Accumulated other comprehensive income (loss) 2,289 3,928 4,188 3,863 740
Total equity attributable to Holdings 19,981 17,498 17,300 15,576 10,693
Noncontrolling interest 1,554 1,540 1,552 1,601 1,575
Total equity 21,535 19,038 18,852 17,177 12,268
Total liabilities, redeemable noncontrolling interest and equity $ 240,681 $ 254,018 $ 262,496 $ 275,397 $ 276,832

Some financial metrics have been revised for prior periods; for additional information, please refer to the 10-Q.

1Q 2021 Financial Supplement 6
Consolidated Capital Structure
--- Balances as of
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(in millions USD, unless otherwise indicated) 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021
Short-term and long-term debt:
Short-term debt
AB commercial paper $ 105 $ — $ — $ — $ —
AB revolving credit facility — — — — —
CLO Warehousing Debt (1) — — — — 185
Total short-term debt 105 — — — 185
Total long-term debt 4,112 4,113 4,114 4,115 3,837
Total short-term and long-term debt: [A] $ 4,217 $ 4,113 $ 4,114 $ 4,115 $ 4,022
Equity:
Preferred stock $ 775 $ 775 $ 1,269 $ 1,269 $ 1,562
Common stock $ 5 $ 5 $ 5 $ 5 $ 5
Additional paid-in capital 1,930 1,938 1,953 1,985 1,928
Treasury stock, at cost (2,025) (2,047) (2,147) (2,245) (2,300)
Retained earnings 17,007 12,899 12,032 10,699 8,758
Accumulated other comprehensive income (loss) 2,289 3,928 4,188 3,863 740
Total equity attributable to Holdings 19,981 17,498 17,300 15,576 10,693
Noncontrolling interest 1,554 1,540 1,552 1,601 1,575
Total equity $ 21,535 $ 19,038 $ 18,852 $ 17,177 $ 12,268
Total equity attributable to Holdings, (ex. AOCI): [B] $ 17,692 $ 13,570 $ 13,112 $ 11,713 $ 9,953
Capital:
Total capitalization (3) $ 24,198 $ 21,611 $ 21,414 $ 19,691 $ 14,530
Total capitalization (ex. AOCI): [A+B] (3) $ 21,909 $ 17,683 $ 17,226 $ 15,828 $ 13,790
Debt to capital:
Debt to capital (2) 17.4 % 19.0 % 19.2 % 20.9 % 26.4 %
Debt to capital (ex. AOCI) (2) 19.2 % 23.3 % 23.9 % 26.0 % 27.8 %
For the Three Months Ended
Roll-forward of common shares outstanding (millions of shares):
Beginning balance 463.7 450.5 449.4 444.7 440.8
Repurchases (13.7) (1.2) (4.7) (4.0) (3.2)
Retirements — — — — (11.2)
Issuances 0.5 0.1 — 0.1 2.0
Ending basic common shares outstanding 450.5 449.4 444.7 440.8 428.3
Total potentially dilutive shares 2.5 1.4 1.1 — —
Ending common shares outstanding - maximum potential dilution 453.0 450.8 445.8 440.8 428.3

Some financial metrics have been revised for prior periods; for additional information, please refer to the 10-Q

(1) CLO Warehousing Debt related to VIE consolidation of CLO investment.

(2) Debt to capital ratio exclusive of CLO Warehousing Debt as the VIE debt is non-recourse.

(3) Total capitalization exclusive of CLO Warehousing Debt as the VIE debt is non-recourse.

1Q 2021 Financial Supplement 7
Operating Earnings (Loss) by Segment and Corporate and Other
--- --- --- --- --- --- --- --- --- --- --- --- ---
Three Months Ended March 31, 2021
(in millions USD, unless otherwise indicated) Individual Retirement Group Retirement Inv Mgmt and Research Protection Solutions Corporate and Other Consolidated
Revenues
Policy charges, fee income and premiums $ 522 $ 86 $ — $ 504 $ 95 $ 1,207
Net investment income (loss) 325 180 — 262 143 910
Net derivative gains (losses) (59) — 2 (1) (10) (68)
Investment Management, service fees and other income 192 63 1,002 61 106 1,424
Segment revenues 980 329 1,004 826 334 3,473
Benefits and other deductions
Policyholders’ benefits 206 — — 509 171 886
Interest credited to policyholders’ account balances 68 75 — 123 25 291
Commissions and distribution related payments 81 13 162 34 92 382
Amortization of deferred policy acquisition costs 78 5 — 26 (6) 103
Compensation, benefits and other operating costs and expenses 112 55 580 85 85 917
Interest expense and financing fees — — 1 — 58 59
Segment benefits and other deductions 545 148 743 777 425 2,638
Operating earnings (loss), before income taxes 435 181 261 49 (91) 835
Income Taxes (72) (30) (44) (8) 15 (139)
Operating earnings (loss), before noncontrolling interest 363 151 217 41 (76) 696
Less: Operating (earnings) loss attributable to the noncontrolling interest — — (96) — — (96)
Operating earnings (loss) $ 363 $ 151 $ 121 $ 41 $ (76) $ 600
Three Months Ended March 31, 2020
Individual Retirement Group Retirement Inv Mgmt and Research Protection Solutions Corporate and Other Consolidated
Revenues
Policy charges, fee income and premiums $ 501 $ 71 $ — $ 562 $ 105 $ 1,239
Net investment income (loss) 316 159 (33) 244 116 802
Net derivative gains (losses) 479 — 30 2 (6) 505
Investment Management, service fees and other income 177 52 910 57 96 1,292
Segment revenues 1,473 282 907 865 311 3,838
Benefits and other deductions
Policyholders’ benefits 672 — — 500 178 1,350
Interest credited to policyholders’ account balances 82 76 — 127 38 323
Commissions and distribution related payments 72 11 140 40 75 338
Amortization of deferred policy acquisition costs 87 12 — 50 2 151
Compensation, benefits and other operating costs and expenses 106 54 558 88 76 882
Interest Expense and Financing Fees — — 2 — 56 58
Segment benefits and other deductions 1,019 153 700 805 425 3,102
Operating earnings (loss), before income taxes 454 129 207 60 (114) 736
Income Taxes (81) (23) (37) (11) 19 (133)
Operating earnings (loss), before noncontrolling interest 373 106 170 49 (95) 603
Less: Operating (earnings) loss attributable to the noncontrolling interest — — (75) — 7 (68)
Operating earnings (loss) $ 373 $ 106 $ 95 $ 49 $ (88) $ 535
Some Financial metrics have been revised for prior periods; for additional information, please refer to the 10-Q.
1Q 2021 Financial Supplement 8
--- ---
Assets Under Management and Administration
--- Balances as of
--- --- --- --- --- --- --- --- --- --- ---
(in billions USD, except for Equitable Headcount) 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021
Assets Under Management
AB AUM
Total AB $ 541.8 $ 600.0 $ 630.8 $ 685.9 $ 697.2
Exclusion for General Account and other Affiliated Accounts (77.4) (82.9) (85.9) (87.6) (84.5)
Exclusion for Separate Accounts (30.9) (35.6) (36.6) (40.5) (42.2)
AB third party $ 433.5 $ 481.5 $ 508.3 $ 557.8 $ 570.4
Total company AUM
AB third party $ 433.5 $ 481.5 $ 508.3 $ 557.8 $ 570.4
General Account and other Affiliated Accounts (1) 106.5 111.1 114.5 115.3 112.3
Separate Accounts (2) 106.1 118.9 123.4 136.0 139.8
Total AUM $ 646.2 $ 711.5 $ 746.3 $ 809.0 $ 822.5
Total Assets Under Administration (AUA) (3) $ 47.9 $ 53.5 $ 56.3 $ 62.3 $ 70.1
Equitable Advisor Headcount
Total Number of Equitable Advisors 4,357 4,333 4,273 4,530 4,369
Notes:
(1) “General Account and Other Affiliated Accounts” refers to assets held in the general accounts of our insurance companies and other assets on which we bear the investment risk.
(2) “Separate Accounts” refers to the separate account investment assets of our insurance subsidiaries excluding any assets on which we bear the investment risk.
(3) AUA includes Equitable Advisors Advisory and Brokerage AUA; Equitable Advisors broker-dealer business is included in Corporate and Other.
1Q 2021 Financial Supplement 9
--- ---
Sales Metrics by Segment
---
For the Three Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(in millions , unless otherwise indicated) 6/30/2020 9/30/2020 12/31/2020 3/31/2021 Change 3/31/2020 3/31/2021 Change
Insurance Operations
Individual Retirement
First year premiums and deposits 1,918 $ 1,631 $ 1,656 $ 1,968 $ 2,386 24.4 % $ 1,918 $ 2,386 24.4 %
Renewal premium and deposits 91 91 81 83 9.3 % 76 83 9.3 %
Total Gross Premiums 1,994 $ 1,722 $ 1,747 $ 2,049 $ 2,469 23.8 % $ 1,994 $ 2,469 23.8 %
Group Retirement
First year premiums and deposits 364 $ 226 $ 254 $ 332 $ 308 (15.3) % $ 364 $ 308 (15.3) %
Renewal premium and deposits 570 452 584 597 6.4 % 561 597 6.4 %
Total Gross Premiums 925 $ 796 $ 706 $ 916 $ 905 (2.1) % $ 925 $ 905 (2.1) %
Protection Solutions
First year premiums and deposits 99 $ 89 $ 76 $ 95 $ 98 (1.7) % $ 99 $ 98 (1.7) %
Renewal premium and deposits 604 624 653 664 (2.1) % 679 664 (2.1) %
Total Gross Premiums 778 $ 693 $ 700 $ 748 $ 762 (2.1) % $ 778 $ 762 (2.1) %
Investment Management and Research (in billions )
Gross Sales by distribution channel
Institutional 3.9 $ 8.8 $ 8.3 $ 9.9 $ 4.9 25.6 % $ 3.9 $ 4.9 25.6 %
Retail 19.6 17.5 17.7 23.0 (5.0) % 24.2 23.0 (5.0) %
Private Wealth Management 3.4 3.5 3.7 5.4 54.3 % 3.5 5.4 54.3 %
Firmwide Gross Sales 31.6 $ 31.8 $ 29.3 $ 31.3 $ 33.3 5.4 % $ 31.6 $ 33.3 5.4 %
Gross sales by investment service
Equity Active 12.1 $ 13.8 $ 12.0 $ 13.5 $ 15.6 28.9 % $ 12.1 $ 15.6 28.9 %
Equity Passive (1) — 1.2 0.1 0.2 (50.0) % 0.4 0.2 (50.0) %
Fixed Income - Taxable 15.0 11.0 13.6 12.4 (15.6) % 14.7 12.4 (15.6) %
Fixed Income - Tax-Exempt 2.3 2.2 2.8 3.4 17.2 % 2.9 3.4 17.2 %
Fixed Income Passive (1) — — — — — % — — — %
Alternatives/Multi-Asset Solutions (2) 0.7 2.9 1.3 1.7 13.3 % 1.5 1.7 13.3 %
Firmwide Gross Sales 31.6 $ 31.8 $ 29.3 $ 31.3 $ 33.3 5.4 % $ 31.6 $ 33.3 5.4 %
Notes:
(1) Includes index and enhanced index services.
(2) Includes certain multi-asset solutions and services not included in equity or fixed income services. Prior to December 31, 2020, this investment service line was disclosed as “Other.” In order to reflect the increasing significance of our Alternatives and Multi-Asset Solutions services, we updated the investment service line to “Alternatives and Multi-Asset Solutions."

All values are in US Dollars.

1Q 2021 Financial Supplement 10

Business Segments:

Operating Earnings Results and Metrics

1Q 2021 Financial Supplement 11
Individual Retirement - Operating Earnings (Loss) and Summary Metrics
--- For the Three Months Ended or As of For the Three Months Ended or As of
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(in millions USD, unless otherwise indicated) 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021 Change 3/31/2020 3/31/2021 Change
Revenues
Policy charges, fee income and premiums $ 501 $ 493 $ 519 $ 521 $ 522 4.2 % $ 501 $ 522 4.2 %
Net investment income (loss) 316 266 324 340 325 2.8 % 316 325 2.8 %
Net derivative gains (losses) 479 (123) 58 (83) (59) (112.3) % 479 (59) (112.3) %
Investment management, service fees and other income 177 164 178 181 192 8.5 % 177 192 8.5 %
Segment revenues 1,473 800 1,079 959 980 (33.5) % 1,473 980 (33.5) %
Benefits and other deductions
Policyholders’ benefits 672 76 298 161 206 (69.3) % 672 206 (69.3) %
Interest credited to policyholders’ account balances 82 81 78 71 68 (17.1) % 82 68 (17.1) %
Commissions and distribution-related payments 72 60 71 78 81 12.5 % 72 81 12.5 %
Amortization of deferred policy acquisition costs 87 72 94 46 78 (10.3) % 87 78 (10.3) %
Compensation and benefits, interest expense and financing fees and other operating costs and expense 106 87 93 96 112 5.7 % 106 112 5.7 %
Segment benefits and other deductions 1,019 376 634 452 545 (46.5) % 1,019 545 (46.5) %
Operating earnings (loss), before income taxes 454 424 445 507 435 (4.2) % 454 435 (4.2) %
Income taxes (81) (74) (74) (65) (72) 11.1 % (81) (72) 11.1 %
Operating earnings (loss), before noncontrolling interest 373 350 371 442 363 (2.7) % 373 363 (2.7) %
Less: Operating (earnings) loss attributable to the noncontrolling interest — — — — — — % — — — %
Operating earnings (loss) $ 373 $ 350 $ 371 $ 442 $ 363 (2.7) % $ 373 $ 363 (2.7) %
Summary Metrics
Operating earnings (loss) - TTM: [A] $ 1,589 $ 1,580 $ 1,486 $ 1,536 $ 1,526 (4.0) % $ 1,589 $ 1,526 (4.0) %
Average capital - TTM: [B] $ 7,322 $ 7,004 $ 6,682 $ 6,352 $ 6,248 (14.7) % $ 7,322 $ 6,248 (14.7) %
Non-GAAP Operating ROC - TTM (1): [A/B] 21.7 % 22.6 % 22.2 % 24.2 % 24.4 % 21.7 % 24.4 %
Average Account Value (TTM) $ 102,699 $ 102,583 $ 103,546 $ 105,663 $ 112,460 9.5 % $ 102,699 $ 112,460 9.5 %
Return on assets (TTM) 1.88 % 1.87 % 1.74 % 1.73 % 1.61 % 1.88 % 1.61 %
Net flows
Current Product Offering $ 615 $ 656 $ 351 $ 534 $ 559 (9.1) % $ 615 $ 559 (9.1) %
Fixed Rate (935) (709) (778) (863) (1,075) (14.9) % (935) (1,075) (14.9) %
Net flows $ (320) $ (53) $ (427) $ (329) $ (516) (61.1) % $ (320) $ (516) (61.1) %
First year premiums and deposits $ 1,918 $ 1,631 $ 1,656 $ 1,968 $ 2,386 24.4 % $ 1,918 $ 2,386 24.4 %
In-force Policy Count by Product (in thousands):
Fixed rate 351 347 342 338 333 351 333
Current product offering 553 556 557 560 561 553 561
Total 904 903 899 898 894 904 894
Notes:
Some financial metrics have been revised for prior periods; for additional information, please refer to the 10-Q
(1) This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer to the “Use of Non-GAAP Financial Measures” and <br>     "Glossary of Selected Financial and Product Terms" sections of this document.
1Q 2021 Financial Supplement 12
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Individual Retirement - Select Operating Metrics
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
For the Three Months Ended or As of For the Three Months Ended or As of
(in millions USD, unless otherwise indicated) 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021 3/31/2020 3/31/2021
Sales Metrics
First Year Premiums by Product:
SCS $ 1,227 $ 987 $ 1,166 $ 1,511 $ 1,752 $ 1,227 $ 1,752
Retirement Cornerstone 461 465 324 256 369 461 369
Investment Edge 132 89 97 130 184 132 184
Other 98 90 69 71 81 98 81
Total First Year Premiums $ 1,918 $ 1,631 $ 1,656 $ 1,968 $ 2,386 $ 1,918 $ 2,386
First Year Premiums by Guarantee:
Non-GMxB $ 1,377 $ 1,093 $ 1,255 $ 1,617 $ 1,919 $ 1,377 $ 1,919
ROP death benefit only 135 119 134 144 179 135 179
Total non-GMxB & ROP death benefit only 1,512 1,212 1,389 1,761 2,098 1,512 2,098
Floating rate GMxB 398 409 266 205 287 398 287
Fixed rate GMxB 8 10 1 2 1 8 1
Total First Year Premiums $ 1,918 $ 1,631 $ 1,656 $ 1,968 $ 2,386 $ 1,918 $ 2,386
Account Values
General Account:
Balance as of beginning of period $ 26,108 $ 23,862 $ 27,075 $ 28,376 $ 30,783 $ 26,108 $ 30,783
Gross premiums 1,376 956 915 1,409 1,388 1,376 1,388
Surrenders, withdrawals and benefits (477) (378) (528) (572) (684) (477) (684)
Net flows 899 578 387 837 704 899 704
Investment performance, interest credited and policy charges (3,136) 2,635 914 1,570 772 (3,136) 772
Transfer to Corp & Other — — — — — — —
Other (2) (6) — — — — (6) —
Reclassified to Assets held-for-sale (3) — — — — (3) —
Balance as of end of period $ 23,862 $ 27,075 $ 28,376 $ 30,783 $ 32,259 $ 23,862 $ 32,259
Separate Accounts:
Balance as of beginning of period $ 82,814 $ 69,727 $ 76,765 $ 79,455 $ 86,607 $ 82,814 $ 86,607
Gross premiums 614 763 820 640 1,081 614 1,081
Surrenders, withdrawals and benefits (1,833) (1,394) (1,634) (1,806) (2,301) (1,833) (2,301)
Net flows (1,219) (631) (814) (1,166) (1,220) (1,219) (1,220)
Investment performance, interest credited and policy charges (11,868) 7,669 3,504 8,318 3,134 (11,868) 3,134
Transfer to Corp & Other — — — — — — —
Other (2) — — — — — — —
Reclassified to Assets held-for-sale — — — — — — —
Balance as of end of period $ 69,727 $ 76,765 $ 79,455 $ 86,607 $ 88,521 $ 69,727 $ 88,521
Total:
Balance as of beginning of period $ 108,922 $ 93,589 $ 103,840 $ 107,831 $ 117,390 $ 108,922 $ 117,390
Gross premiums (1) 1,990 1,719 1,735 2,049 2,469 1,990 2,469
Surrenders, withdrawals and benefits (2,310) (1,772) (2,162) (2,378) (2,985) (2,310) (2,985)
Net flows (320) (53) (427) (329) (516) (320) (516)
Investment performance, interest credited and policy charges (15,004) 10,304 4,418 9,888 3,906 (15,004) 3,906
Transfer to Corp & Other — — — — — — —
Other (2) (6) — — — — (6) —
Reclassified to Assets held-for-sale (3) — — — — (3) —
Balance as of end of period $ 93,589 $ 103,840 $ 107,831 $ 117,390 $ 120,780 $ 93,589 $ 120,780
Net Amount at Risk (NAR)
Total GMIB NAR $ 16,184 $ 14,234 $ 13,403 $ 10,461 $ 8,049 $ 16,184 $ 8,049
Total GMDB NAR 25,791 22,134 21,061 18,271 17,562 25,791 17,562
Reserves (Net of Reinsurance)
GMIB Reserves $ 12,754 $ 15,267 $ 14,984 $ 14,246 $ 11,680 $ 12,754 $ 11,680
GMDB Reserves 4,933 4,897 5,021 5,006 4,999 4,933 4,999
Total GMDB/IB Variable Annuity Reserves (Net of Reinsurance) $ 17,687 $ 20,164 $ 20,005 $ 19,252 $ 16,679 $ 17,687 $ 16,679
Notes:
Some financial metrics have been revised for prior periods; for additional information, please refer to the 10-Q.
(1) Includes deposits from certain other products not reported as first year premiums and deposits or renewal premiums and deposits elsewhere in this document.
(2) Represents amounts related to our fixed income annuity (“FIA”) contracts which were previously reported as Policyholders’ account balances in the consolidated balance sheets and therefore included in our definition<br>     of “Account Value”. As of March 31, 2020, FIAs are reported as Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets and accordingly were excluded from Account Value. 1Q 2021 Financial Supplement 13
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Group Retirement - Operating Earnings (Loss) and Summary Metrics
--- For the Three Months Ended or As of For the Three Months Ended or As of
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(in millions USD, unless otherwise indicated) 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021 Change 3/31/2020 3/31/2021 Change
Revenues
Policy charges, fee income and premiums $ 71 $ 68 $ 75 $ 81 $ 86 21.1 % $ 71 $ 86 21.1 %
Net investment income (loss) 159 127 174 181 180 13.2 % 159 180 13.2 %
Net derivative gains (losses) — 4 (3) — — — % — — — %
Investment management, service fees and other income 52 47 55 57 63 21.2 % 52 63 21.2 %
Segment revenues 282 246 301 319 329 16.7 % 282 329 16.7 %
Benefits and other deductions
Policyholder benefits — 1 1 — — — % — — — %
Interest credited to policyholders’ account balances 76 74 76 77 75 (1.3) % 76 75 (1.3) %
Commissions and distribution-related payments 11 13 9 12 13 18.2 % 11 13 18.2 %
Amortization of deferred policy acquisition costs 12 2 14 (7) 5 (58.3) % 12 5 (58.3) %
Compensation and benefits, interest expense and financing fees and other operating costs and expense 54 47 46 45 55 1.9 % 54 55 1.9 %
Segment benefits and other deductions 153 137 146 127 148 (3.3) % 153 148 (3.3) %
Operating earnings (loss), before income taxes 129 109 155 192 181 40.3 % 129 181 40.3 %
Income taxes (23) (19) (26) (26) (30) (30.4) % (23) (30) (30.4) %
Operating earnings (loss), before noncontrolling interest 106 90 129 166 151 42.5 % 106 151 42.5 %
Less: Operating (earnings) loss attributable to the noncontrolling interest — — — — — — % — — — %
Operating earnings (loss) $ 106 $ 90 $ 129 $ 166 $ 151 42.5 % $ 106 $ 151 42.5 %
Summary Metrics
Operating earnings (loss) - TTM: [A] $ 415 $ 410 $ 434 $ 491 $ 536 29.2 $ 415 $ 536 29.2 %
Average capital - TTM: [B] $ 1,272 $ 1,204 $ 1,136 $ 1,073 $ 1,090 (14.3) $ 1,272 $ 1,090 (14.3) %
Non-GAAP Operating ROC - TTM (1): [A/B] 32.7 % 34.1 % 38.3 % 45.8 % 49.1 % 32.7 % 49.1 %
Average Account Value (TTM) $ 35,787 $ 36,045 $ 36,708 $ 37,853 $ 40,553 13.3 % $ 35,787 $ 40,553 13.3 %
Return on assets (TTM) 1.41 % 1.38 % 1.43 % 1.55 % 1.57 % 1.41 % 1.57 %
Net flows $ 128 $ 216 $ (93) $ 45 $ (51) (139.9) % $ 128 $ (51) (139.9) %
Gross premiums $ 925 $ 796 $ 706 $ 916 $ 905 (2.1) % $ 925 $ 905 (2.1) %
Notes:
Some financial metrics have been revised for prior periods; for additional information, please refer to the 10-Q.
(1) This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer to the “Use of Non-GAAP Financial Measures” and "Glossary of Selected Financial and Product Terms" sections of this document.
1Q 2021 Financial Supplement 14
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Group Retirement - Select Operating Metrics
--- For the Three Months Ended or As of For the Three Months Ended or As of
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(in millions USD, unless otherwise indicated) 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021 3/31/2020 3/31/2021
Sales Metrics
Gross premiums:
First-year premiums $ 364 $ 226 $ 254 $ 332 $ 308 $ 364 $ 308
Renewal premiums 561 570 452 584 597 561 597
Group Retirement premiums $ 925 $ 796 $ 706 $ 916 $ 905 $ 925 $ 905
Gross premiums by market:
Tax-exempt $ 214 $ 162 $ 173 $ 175 $ 179 $ 214 $ 179
Corporate 135 55 72 130 119 135 119
Other 15 9 9 27 10 15 10
Total First Year Premiums 364 226 254 332 308 364 308
Tax-exempt 412 448 320 452 447 412 447
Corporate 89 81 87 85 96 89 96
Other 60 41 45 47 54 60 54
Total renewal premiums 561 570 452 584 597 561 597
Group Retirement premiums by market $ 925 $ 796 $ 706 $ 916 $ 905 $ 925 $ 905
Account Values
General Account:
Balance as of beginning of period $ 12,071 $ 12,257 $ 12,420 $ 12,627 $ 12,826 $ 12,071 $ 12,826
Gross premiums 447 259 355 376 288 447 288
Surrenders, withdrawals and benefits (280) (217) (239) (274) (278) (280) (278)
Net flows 167 42 116 102 10 167 10
Investment performance, interest credited and policy charges 19 121 91 97 88 19 88
Balance as of end of period $ 12,257 $ 12,420 $ 12,627 $ 12,826 $ 12,924 $ 12,257 $ 12,924
Separate Accounts:
Balance as of beginning of period $ 25,809 $ 20,891 $ 24,670 $ 26,088 $ 29,633 $ 25,809 $ 29,633
Gross premiums 478 537 351 540 617 478 617
Surrenders, withdrawals and benefits (517) (363) (560) (597) (678) (517) (678)
Net flows (39) 174 (209) (57) (61) (39) (61)
Investment performance, interest credited and policy charges (4,879) 3,605 1,627 3,602 1,454 (4,879) 1,454
Balance as of end of period $ 20,891 $ 24,670 $ 26,088 $ 29,633 $ 31,026 $ 20,891 $ 31,026
Total:
Balance as of beginning of period $ 37,880 $ 33,148 $ 37,090 $ 38,715 $ 42,459 $ 37,880 $ 42,459
Gross premiums 925 796 706 916 905 925 905
Surrenders, withdrawals and benefits (797) (580) (799) (871) (956) (797) (956)
Net flows 128 216 (93) 45 (51) 128 (51)
Investment performance, interest credited and policy charges (4,860) 3,726 1,718 3,699 1,542 (4,860) 1,542
Balance as of end of period $ 33,148 $ 37,090 $ 38,715 $ 42,459 $ 43,950 $ 33,148 $ 43,950 1Q 2021 Financial Supplement 15
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Investment Management and Research - Operating Earnings (Loss) and Summary Metrics
--- For the Three Months Ended or As of For the Three Months Ended or As of
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(in millions USD, unless otherwise indicated) 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021 Change 3/31/2020 3/31/2021 Change
Revenues
Net investment income (loss) $ (33) $ 32 $ 13 $ 19 $ — 100.0 % $ (33) $ — 100.0 %
Net derivative gains (losses) 30 (31) (14) (21) 2 (93.3) % 30 2 (93.3) %
Investment management, service fees and other income 910 843 900 1,055 1,002 10.1 % 910 1,002 10.1 %
Segment Revenues 907 844 899 1,053 1,004 10.7 % 907 1,004 10.7 %
Benefits and other deductions
Commissions and distribution-related payments 140 126 148 155 162 15.7 % 140 162 15.7 %
Compensation, benefits and other operating costs and expenses 558 523 531 599 580 3.9 % 558 580 3.9 %
Interest expense and financing fees 2 2 1 1 1 (50.0) % 2 1 (50.0) %
Total benefits and other deductions 700 651 680 755 743 6.1 % 700 743 6.1 %
Operating earnings (loss), before income taxes 207 193 219 298 261 26.1 % 207 261 26.1 %
Income taxes (37) (32) (40) (52) (44) (18.9) % (37) (44) (18.9) %
Operating earnings (loss), before noncontrolling interest 170 161 179 246 217 27.6 % 170 217 27.6 %
Less: Operating (earnings) loss attributable to the noncontrolling interest (75) (69) (75) (105) (96) (28.0) % (75) (96) (28.0) %
Operating earnings (loss) $ 95 $ 92 $ 104 $ 141 $ 121 27.4 % $ 95 $ 121 27.4 %
Summary Metrics
Adjusted operating margin (1) 27.6 % 27.9 % 29.7 % 34.2 % 31.7 % 27.6 % 31.7 %
Net flows (in billions USD) $ (5.6) $ (3.3) $ 3.1 $ 3.2 $ 5.2 $ (5.6) $ 5.2
Total AUM (in billions USD) $ 541.8 $ 600.0 $ 630.8 $ 685.9 $ 697.2 $ 541.8 $ 697.2
Ownership Structure of AB
Holdings and its subsidiaries 63.4 % 63.7 % 63.8 % 63.3 % 62.8 % 63.4 % 62.8 %
AB Holding 35.9 % 35.5 % 35.5 % 36.0 % 36.5 % 35.9 % 36.5 %
Unaffiliated holders 0.7 % 0.8 % 0.7 % 0.7 % 0.7 % 0.7 % 0.7 %
Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
EQH economic interest 64.9 % 65.2 % 65.3 % 64.8 % 64.3 % 64.9 % 64.3 %
EQH average economic interest 64.8 % 65.2 % 65.2 % 65.1 % 64.2 % 64.8 % 64.2 %
Units of limited partnership outstanding (in millions) 270.0 268.6 268.4 270.5 272.7 270.0 272.7
Notes:
(1) Adjusted Operating Margin is a non-GAAP financial measure used by AllianceBernstein’s (“AB”) management in evaluating AB’s financial performance on a standalone basis and<br>     to compare its performance, as reported by AB in its public filings. It is not comparable to any other non-GAAP financial measure used herein.
1Q 2021 Financial Supplement 16
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Investment Management and Research - Select Operating Metrics
--- For the Three Months Ended or As of
--- --- --- --- --- --- --- --- --- --- ---
(in billions USD, unless otherwise indicated) 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021
AUM Roll-forward
Balance as of beginning of period $ 622.9 $ 541.8 $ 600.0 $ 630.8 $ 685.9
Sales/new accounts 31.6 31.8 29.3 31.3 33.3
Redemptions/terminations (32.7) (31.4) (23.2) (22.0) (24.2)
Cash flow/unreinvested dividends (4.5) (3.7) (3.0) (6.1) (3.9)
Net long-term (outflows) inflows (5.6) (3.3) 3.1 3.2 5.2
Acquisition 0.2 — — — —
Market appreciation (depreciation) (75.7) 61.5 27.7 51.9 6.1
Net change (81.1) 58.2 30.8 55.1 11.3
Balance as of end of period $ 541.8 $ 600.0 $ 630.8 $ 685.9 $ 697.2
Ending Assets by distribution channel
Institutions $ 256.7 $ 276.2 $ 289.5 $ 315.6 $ 314.7
Retail 198.6 229.5 242.9 265.3 272.3
Private Wealth Management 86.5 94.3 98.4 105.0 110.2
Total $ 541.8 $ 600.0 $ 630.8 $ 685.9 $ 697.2
Ending Assets by investment service
Equity
Actively Managed $ 141.5 $ 173.1 $ 188.8 $ 217.8 $ 231.8
Passively Managed (1) 47.2 54.3 57.5 64.5 66.3
Total Equity $ 188.7 $ 227.4 $ 246.3 $ 282.3 $ 298.1
Fixed Income
Actively Managed $ 282.0 $ 295.0 $ 302.0 $ 313.5 $ 304.0
Passively Managed (1) 10.3 9.9 9.0 8.5 8.3
Total Fixed Income 292.3 304.9 311.0 322.0 312.3
Total Alternatives/Multi-Asset Solutions (2) 60.8 67.7 73.5 81.6 86.8
Total $ 541.8 $ 600.0 $ 630.8 $ 685.9 $ 697.2
Notes:
(1) Includes index and enhanced index services.
(2) Includes certain multi-asset solutions and services not included in equity or fixed income services. Prior to December 31, 2020, this investment service line was disclosed as “Other.” In order to reflect the increasing significance of our Alternatives and Multi-Asset Solutions services, we updated the investment service line to “Alternatives and Multi-Asset Solutions."
1Q 2021 Financial Supplement 17
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Investment Management and Research - Net Flows
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
For the Three Months Ended
(in billions , unless otherwise indicated) 6/30/2020 9/30/2020 12/31/2020 3/31/2021 3/31/2020 3/31/2021
Net Flows by Distribution Channel
Institutions
US 0.9 $ (4.8) $ (0.6) $ 3.4 $ (1.7) $ 0.9 $ (1.7)
Global and Non-US (1.6) 2.7 1.6 2.5 (0.5) 2.5
Total Institutions 0.4 $ (6.4) $ 2.1 $ 5.0 $ 0.8 $ 0.4 $ 0.8
Retail
US (0.9) $ 1.7 $ 1.2 $ 1.0 $ 3.6 $ (0.9) $ 3.6
Global and Non-US 2.1 (0.5) (1.7) (0.9) (4.5) (0.9)
Total Retail (5.4) $ 3.8 $ 0.7 $ (0.7) $ 2.7 $ (5.4) $ 2.7
Private Wealth
US (0.4) $ (0.2) $ 0.5 $ (1.2) $ 0.8 $ (0.4) $ 0.8
Global and Non-US (0.5) (0.2) 0.1 0.9 (0.2) 0.9
Total Private Wealth (0.6) $ (0.7) $ 0.3 $ (1.1) $ 1.7 $ (0.6) $ 1.7
Total Net Flows by Distribution Channel (5.6) $ (3.3) $ 3.1 $ 3.2 $ 5.2 $ (5.6) $ 5.2
Net Flows by Investment Service
Equity Active
US (0.4) $ 2.2 $ 1.2 $ 0.5 $ 2.0 $ (0.4) $ 2.0
Global and Non-US 0.6 1.0 0.5 1.7 1.8 1.7
Total Equity Active 1.4 $ 2.8 $ 2.2 $ 1.0 $ 3.7 $ 1.4 $ 3.7
Equity Passive (1)
US 0.1 $ (1.6) $ (1.8) $ (0.8) $ (1.6) $ 0.1 $ (1.6)
Global and Non-US 0.1 0.8 (0.1) (0.4) (1.4) (0.4)
Total Equity Passive (1) (1.3) $ (1.5) $ (1.0) $ (0.9) $ (2.0) $ (1.3) $ (2.0)
Fixed Income - Taxable (3)
US 0.2 $ (3.9) $ 1.1 $ 3.4 $ 0.2 $ 0.2 $ 0.2
Global and Non-US (1.2) (1.3) (1.4) (1.0) (6.6) (1.0)
Total Fixed Income - Taxable (6.4) $ (5.1) $ (0.2) $ 2.0 $ (0.8) $ (6.4) $ (0.8)
Fixed Income - Tax-Exempt
US — $ (0.3) $ 0.8 $ 0.5 $ 1.6 $ — $ 1.6
Global and Non-US — — — — — —
Total Fixed Income - Tax-Exempt — $ (0.3) $ 0.8 $ 0.5 $ 1.6 $ — $ 1.6
Fixed Income - Passive (1)
US (0.2) $ (0.1) $ (0.3) $ (0.4) $ 0.2 $ (0.2) $ 0.2
Global and Non-US (0.5) (0.8) (0.2) — 0.9 —
Total Fixed Income - Passive (1) 0.7 $ (0.6) $ (1.1) $ (0.6) $ 0.2 $ 0.7 $ 0.2
Alternatives/Multi-Asset Solutions (2)
US (0.1) $ 0.4 $ 0.1 $ — $ 0.3 $ (0.1) $ 0.3
Global and Non-US 1.0 2.3 1.2 2.2 0.1 2.2
Total Alternatives/Multi-Asset Solutions (2) — $ 1.4 $ 2.4 $ 1.2 $ 2.5 $ — $ 2.5
Total Net Flows by Investment Service (5.6) $ (3.3) $ 3.1 $ 3.2 $ 5.2 $ (5.6) $ 5.2
Active vs. Passive Net Flows
Actively Managed
Equity 1.4 $ 2.8 $ 2.2 $ 1.0 $ 3.7 $ 1.4 $ 3.7
Fixed Income (3) (5.4) 0.6 2.5 0.8 (6.4) 0.8
Alternatives/Multi-Asset Solutions (2) 1.3 2.3 1.0 2.0 (0.2) 2.0
Total (5.2) $ (1.3) $ 5.1 $ 4.5 $ 6.5 $ (5.2) $ 6.5
Passively Managed (1)
Equity (1.3) $ (1.5) $ (1.0) $ (0.9) $ (2.0) $ (1.3) $ (2.0)
Fixed Income (0.6) (1.1) (0.6) 0.2 0.7 0.2
Alternatives/Multi-Asset Solutions (2) 0.1 0.1 0.2 0.5 0.2 0.5
Total (0.4) $ (2.0) $ (2.0) $ (1.3) $ (1.3) $ (0.4) $ (1.3)
Total Active vs Passive Net Flows (5.6) $ (3.3) $ 3.1 $ 3.2 $ 5.2 $ (5.6) $ 5.2
Notes:
(1) Includes index and enhanced index services.
(2) Includes certain multi-asset solutions and services not included in equity or fixed income services. Prior to December 31, 2020, this investment service line was disclosed as “Other.” In order to reflect the increasing significance of Alternatives and Multi-Asset Solutions services, the investment service line was updated to “Alternatives and Multi-Asset Solutions."
(3) Fixed income – taxable investment service net flows include 10.8 billion of AXA's redemptions of certain low-fee fixed income mandates for the twelve-month period ended March 31, 2021. Discrete quarterly outflows for periods presented were as follows: 7.9 billion, 2.2 billion and 0.7 billion for the second, third and fourth quarter of 2020 as well as 0.0 billion for first quarter 2021.

All values are in US Dollars.

1Q 2021 Financial Supplement 18
Protection Solutions - Operating Earnings (Loss) and Summary Metrics
--- For the Three Months Ended or As of For the Three Months Ended or As of
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(in millions USD, unless otherwise indicated) 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021 Change 3/31/2020 3/31/2021 Change
Revenues
Policy charges, fee income and premiums $ 562 $ 468 $ 450 $ 490 $ 504 (10.3) % $ 562 $ 504 (10.3) %
Net investment income (loss) 244 204 240 256 262 7.4 % 244 262 7.4 %
Net derivative gains (losses) 2 5 3 (5) (1) (150.0) % 2 (1) (150.0) %
Investment management, service fees and other income 57 51 58 59 61 7.0 % 57 61 7.0 %
Segment revenues 865 728 751 800 826 (4.5) % 865 826 (4.5) %
Benefits and other deductions
Policyholders’ benefits 500 460 455 460 509 1.8 % 500 509 1.8 %
Interest credited to policyholders’ account balances 127 137 130 120 123 (3.1) % 127 123 (3.1) %
Commissions and distribution-related payments 40 35 40 45 34 (15.0) % 40 34 (15.0) %
Amortization of deferred policy acquisition costs 50 29 (16) 21 26 (48.0) % 50 26 (48.0) %
Compensation and benefits, interest expense and financing fees and other operating costs and expense 88 81 82 86 85 (3.4) % 88 85 (3.4) %
Segment benefits and other deductions 805 742 691 732 777 (3.5) % 805 777 (3.5) %
Operating earnings (loss), before income taxes 60 (14) 60 68 49 (18.3) % 60 49 (18.3) %
Income taxes (11) 2 (9) (10) (8) 27.3 % (11) (8) 27.3 %
Operating earnings (loss), before noncontrolling interest 49 (12) 51 58 41 (16.3) % 49 41 (16.3) %
Less: Operating (earnings) loss attributable to the noncontrolling interest — — — — — — % — — — %
Operating earnings (loss) $ 49 $ (12) $ 51 $ 58 $ 41 (16.3) % $ 49 $ 41 (16.3) %
Summary Metrics
Operating earnings (loss) - TTM: [A] $ 378 $ 266 $ 217 $ 146 $ 138 (63.5) % $ 378 $ 138 (63.5) %
Average capital - TTM: [B] $ 2,801 $ 2,591 $ 2,370 $ 2,170 $ 2,145 (23.4) % $ 2,801 $ 2,145 (23.4) %
Non-GAAP Operating ROC - TTM (1): [A/B] 13.5 % 10.3 % 9.2 % 6.7 % 6.5 % 13.5 % 6.5 %
Benefit ratio 72.5 % 82.0 % 77.9 % 72.5 % 76.5 % 72.5 % 76.5 %
Gross written premiums $ 778 $ 693 $ 700 $ 748 $ 762 (2.1) % $ 778 $ 762 (2.1) %
Annualized premiums $ 56 $ 57 $ 49 $ 59 $ 69 22.4 % $ 56 $ 69 22.4 %
Total in-force face amount (in billions USD) $ 439.7 $ 419.1 $ 419.9 $ 420.6 $ 421.3 (4.2) % $ 439.7 $ 421.3 (4.2) %
Notes:
Some financial metrics have been revised for prior periods; for additional information, please refer to the 10-Q.
(1) This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer to the “Use of Non-GAAP Financial Measures” and "Glossary of Selected Financial and Product Terms" sections of this document. 1Q 2021 Financial Supplement 19
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Protection Solutions - Select Operating Metrics
--- For the Three Months Ended or As of For the Three Months Ended or As of
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(in millions USD, unless otherwise indicated) 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021 3/31/2020 3/31/2021
Sales Metrics
First Year Premiums by Product Line:
Universal Life $ — $ — $ — $ — $ — $ — $ —
Indexed Universal Life 49 41 28 26 21 49 21
Variable Universal Life 35 29 31 49 52 35 52
Term 4 5 5 4 5 4 5
Employee Benefits 11 14 12 15 20 11 20
Other (1) — — — 1 — — —
Total $ 99 $ 89 $ 76 $ 95 $ 98 $ 99 $ 98
Renewals by Product Line:
Universal Life $ 216 $ 201 $ 223 $ 205 $ 201 $ 216 $ 201
Indexed Universal Life 72 67 63 74 76 72 76
Variable Universal Life 243 225 226 253 256 243 256
Term 120 83 81 91 97 120 97
Employee Benefits 23 24 26 25 30 23 30
Other (1) 5 4 5 5 4 5 4
Total 679 604 624 653 664 679 664
Total Gross Premiums $ 778 $ 693 $ 700 $ 748 $ 762 $ 778 $ 762
In-force Metrics
In-force Face Amount by Product (2) (in billions):
Universal Life (3) $ 52.7 $ 49.9 $ 49.5 $ 48.7 $ 48.0 $ 52.7 $ 48.0
Indexed Universal Life 26.4 27.0 27.5 27.7 28.0 26.4 28.0
Variable Universal Life (4) 126.0 126.4 126.7 127.7 128.5 126.0 128.5
Term 233.3 214.4 214.9 215.2 215.5 233.3 215.5
Whole Life 1.3 1.4 1.3 1.3 1.3 1.3 1.3
Total $ 439.7 $ 419.1 $ 419.9 $ 420.6 $ 421.3 $ 439.7 $ 421.3
In-force Policy Count by Product (2) (in thousands):
Universal Life (3) 164 149 147 144 142 164 142
Indexed Universal Life 60 62 63 64 64 60 64
Variable Universal Life (4) 296 294 292 291 290 296 290
Term 319 267 268 268 268 319 268
Whole Life 18 17 17 17 17 18 17
Total 857 789 787 784 781 857 781
Protection Solutions Reserves
General Account $ 17,275 $ 17,930 $ 18,691 $ 18,905 $ 18,401 $ 17,275 $ 18,401
Separate Accounts 11,259 12,928 13,190 14,771 15,387 11,259 15,387
Total $ 28,534 $ 30,858 $ 31,881 $ 33,676 $ 33,788 $ 28,534 $ 33,788
Notes:
Some financial metrics have been revised for prior periods; for additional information, please refer to the 10-Q.
(1) For the individual life insurance premiums, Other includes Whole Life insurance and other products available-for-sale but not actively marketed.
(2) Includes individual life insurance and does not include Employee Benefits as it is a start-up business and therefore has immaterial in-force policies.
(3) Universal Life includes Guaranteed Universal Life.
(4) Variable Universal Life includes variable life insurance and corporate-owned life insurance. 1Q 2021 Financial Supplement 20
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Investments

1Q 2021 Financial Supplement 21
Consolidated Investment Portfolio Composition
--- Balances as of
--- --- --- --- --- --- --- --- ---
(in millions USD, unless otherwise indicated) December 31, 2020 March 31, 2021
Amount (1) % of Total Amount (1) % of Total
Composition of investment portfolio
Fixed maturities, available-for-sale, at fair value $ 81,638 70.8 % $ 77,161 68.7 %
Fixed maturities, at fair value using the fair value option 389 0.3 % 844 0.8 %
Mortgage loans on real estate 13,159 11.4 % 13,280 11.8 %
Policy loans 4,118 3.6 % 4,091 3.6 %
Other equity investments (4) 1,502 1.3 % 2,387 2.1 %
Other invested assets 2,728 2.4 % 2,913 2.6 %
Subtotal investment assets 103,534 89.8 % 100,676 89.7 %
Trading securities 5,553 4.8 % 4,821 4.3 %
Total investments 109,087 94.6 % 105,497 93.9 %
Cash and cash equivalents 6,179 5.4 % 6,795 6.1 %
Total $ 115,266 100.0 % $ 112,292 100.0 %
General Account Fixed maturities by industry (Based on amortized cost)
Corporate securities:
Finance $ 14,411 20.1 % $ 13,484 18.6 %
Manufacturing 13,040 18.2 % 12,394 17.1 %
Utilities 6,352 8.9 % 6,088 8.4 %
Services 7,830 10.9 % 7,885 10.8 %
Energy 4,084 5.7 % 3,985 5.5 %
Retail and wholesale 3,747 5.2 % 3,660 5.0 %
Transportation 2,424 3.4 % 2,244 3.1 %
Other 157 0.2 % 201 0.3 %
Total corporate securities 52,045 72.5 % 49,941 68.7 %
U.S. government and agency 12,660 17.6 % 14,809 20.4 %
Residential mortgage-backed (2) 130 0.2 % 119 0.2 %
Preferred stock 621 0.9 % 41 0.1 %
State & municipal 536 0.7 % 569 0.8 %
Foreign governments 1,011 1.4 % 1,065 1.5 %
Commercial mortgage-backed 1,148 1.6 % 1,482 2.0 %
Asset-backed securities 3,587 5.0 % 4,653 6.4 %
Total $ 71,738 100.0 % $ 72,679 100.0 %
General Account Fixed maturities credit quality (3) (Based on amortized cost)
Aaa, Aa, A (NAIC Designation 1) $ 44,146 61.5 % $ 44,588 61.3 %
Baa (NAIC Designation 2) 25,285 35.2 % 25,532 35.1 %
Investment grade 69,431 96.8 % 70,120 96.5 %
Below investment grade (NAIC Designation 3,4,5 and 6) 2,307 3.2 % 2,559 3.5 %
Total $ 71,738 100.0 % $ 72,679 100.0 %
Notes:
(1) Investment data has been classified based on standard industry categorizations for domestic public holdings and similar classifications by industry for all other holdings.
(2) Includes publicly traded agency pass-through securities and collateralized obligations.
(3) Credit quality based on NAIC rating.
(4) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see 10-Q Note 2 Significant Accounting Policies – Investments). 1Q 2021 Financial Supplement 22
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Consolidated Results of General Account Investment Portfolio
--- For the Three Months Ended or As of Years Ended or As of
--- --- --- --- --- --- --- --- --- --- --- --- ---
(in millions USD, unless otherwise indicated) March 31, 2020 March 31, 2021 December 31, 2020
Yield Amount (1) Yield Amount (1) Yield Amount (1)
Fixed Maturities:
Income (loss) 3.59 % $ 573 3.19 % $ 577 3.46 % $ 2,318
Ending assets 64,815 72,679 71,738
Mortgages:
Income (loss) 4.22 % 128 4.01 % 132 4.13 % 517
Ending assets 12,123 13,280 13,159
Other Equity Investments (2):
Income (loss) 7.42 % 28 19.76 % 107 6.14 % 95
Ending assets 1,556 2,679 1,621
Policy Loans:
Income 5.57 % 52 5.54 % 57 5.28 % 204
Ending assets 3,720 4,091 4,118
Cash and Short-term Investments:
Income (1.35) % (16) (0.04) % — 0.03 % 1
Ending assets 7,552 2,919 2,095
Funding Agreements:
Interest expense and other (29) (14) (75)
Ending (liabilities) (6,759) (10,223) (6,897)
Total invested Assets:
Income 3.73 % 736 4.01 % 859 3.72 % 3,060
Ending assets 83,007 85,425 85,834
Short Duration Fixed Maturities:
Income (loss) 3.60 % 52 3.13 % 35 3.39 % 184
Ending assets 5,729 4,154 4,704
Total Net Investment Income:
Investment income 3.72 % 788 3.97 % 894 3.70 % 3,244
Less: investment fees (0.12) % (25) (0.13) % (28) (0.12) % (107)
Investment income, net 3.60 % $ 763 3.84 % $ 866 3.57 % $ 3,137
General Account Ending Net Assets $ 88,736 $ 89,579 $ 90,538
Operating Earnings adjustments:
Funding Agreements interest expense 29 14 75
AB and other non-General Account investment income 10 30 151
Operating Net investment income (loss) $ 802 $ 910 $ 3,363
Notes:
(1) Amount for fixed maturities and mortgages represents original cost, reduced by repayments, writedowns, adjusted amortization of premiums, accretion of discount, and for valuation allowances. Cost for equity securities represents original cost reduced by writedowns; cost for other limited partnership interests represents original cost adjusted for equity in earnings and reduced by distributions.
(2) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see 10-Q Note 2 Significant Accounting Policies – Investments). 1Q 2021 Financial Supplement 23
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Additional Information

1Q 2021 Financial Supplement 24
Deferred Policy Acquisition Costs Rollforward
--- For the Three Months Ended or As of For the Three Months Ended or As of
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(in millions USD, unless otherwise indicated) 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021 3/31/2020 3/31/2021
TOTAL
Beginning balance (1) $ 5,840 $ 4,697 $ 4,090 $ 4,171 $ 4,243 $ 5,840 $ 4,243
Capitalization of commissions, sales and issue expenses 185 155 148 181 186 185 186
Amortization (1,302) (162) (90) (59) (87) (1,302) (87)
Change in unrealized investment gains and losses (27) (600) 23 (50) 601 (27) 601
Reclassified to Assets held-for-sale 1 — — — — 1 —
Ending balance $ 4,697 $ 4,090 $ 4,171 $ 4,243 $ 4,943 $ 4,697 $ 4,943
Individual Retirement
Beginning balance $ 3,285 $ 3,401 $ 3,134 $ 3,128 $ 3,178 $ 3,285 $ 3,178
Capitalization of commissions, sales and issue expenses 112 93 90 110 123 112 123
Amortization (99) (90) (91) (41) (61) (99) (61)
Change in unrealized investment gains and losses 103 (270) (5) (19) 150 103 150
Reclassified to Assets held-for-sale — — — — — — —
Ending balance $ 3,401 $ 3,134 $ 3,128 $ 3,178 $ 3,390 $ 3,401 $ 3,390
Group Retirement
Beginning balance $ 659 $ 626 $ 596 $ 601 $ 632 $ 659 $ 632
Capitalization of commissions, sales and issue expenses 26 19 21 27 21 26 21
Amortization (60) (5) (15) 7 (6) (60) (6)
Change in unrealized investment gains and losses 1 (44) (1) (3) 58 1 58
Reclassified to Assets held-for-sale — — — — — — —
Ending balance $ 626 $ 596 $ 601 $ 632 $ 705 $ 626 $ 705
Protection Solutions
Beginning balance $ 1,880 $ 610 $ 344 $ 426 $ 418 $ 1,880 $ 418
Capitalization of commissions, sales and issue expenses 47 43 37 44 42 47 42
Amortization (1,141) (71) 15 (24) (27) (1,141) (27)
Change in unrealized investment gains and losses (177) (238) 30 (28) 403 (177) 403
Reclassified to Assets held-for-sale 1 — — — — 1 —
Ending balance $ 610 $ 344 $ 426 $ 418 $ 836 $ 610 $ 836
Corporate and Other
Beginning balance (1) $ 16 $ 60 $ 16 $ 16 $ 15 $ 16 $ 15
Capitalization of commissions, sales and issue expenses — — — — — — —
Amortization (2) 4 1 (1) 7 (2) 7
Change in unrealized investment gains and losses 46 (48) (1) — (10) 46 (10)
Reclassified to Assets held-for-sale — — — — — — —
Ending balance $ 60 $ 16 $ 16 $ 15 $ 12 $ 60 $ 12 Some financial metrics have been revised for prior periods; for additional information, please refer to the 10-Q.
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(1) March 31, 2020 DAC beginning balance is $3 million more than December 31, 2019 ending balance due to impact of CECL. 1Q 2021 Financial Supplement 25
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Use of Non-GAAP Financial Measures
--- In addition to our results presented in accordance with U.S. GAAP, we report Non-GAAP operating earnings, Non-GAAP Operating ROE, Non-GAAP Operating ROC by segment for our Individual Retirement, Group Retirement and Protection Solutions segments, and Non-GAAP operating common EPS, each of which is a measure that is not determined in accordance with U.S. GAAP. Management principally uses these non-GAAP financial measures in evaluating performance because they present a clearer picture of our operating performance and they allow management to allocate resources. Similarly, management believes that the use of these Non-GAAP financial measures, together with relevant U.S. GAAP measures, provide investors with a better understanding of our results of operations and the underlying profitability drivers and trends of our business. These non-GAAP financial measures are intended to remove from our results of operations the impact of market changes (where there is mismatch in the valuation of assets and liabilities) as well as certain other expenses which are not part of our underlying profitability drivers or likely to re-occur in the foreseeable future, as such items fluctuate from period-to-period in a manner inconsistent with these drivers. These measures should be considered supplementary to our results that are presented in accordance with U.S. GAAP and should not be viewed as a substitute for the U.S. GAAP measures. Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Consequently, our non-GAAP financial measures may not be comparable to similar measures used by other companies.
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We also discuss certain operating measures, including AUM, AUA, AV, Protection Solutions Reserves and certain other operating measures, which management believes provide useful information about our businesses and the operational factors underlying our financial performance.
Non-GAAP Operating Earnings
Non-GAAP operating earnings is an after-tax non-GAAP financial measure used to evaluate our financial performance on a consolidated basis that is determined by making certain adjustments to our consolidated after-tax net income attributable to Holdings. The most significant of such adjustments relates to our derivative positions, which protect economic value and statutory capital, and are more sensitive to changes in market conditions than the variable annuity product liabilities as valued under U.S. GAAP. This is a large source of volatility in net income.
Non-GAAP operating earnings equals our consolidated after-tax net income attributable to Holdings adjusted to eliminate the impact of the following items:
• Items related to variable annuity product features, which include: (i) certain changes in the fair value of the derivatives and other securities we use to hedge these features; (ii) the effect of benefit ratio unlock adjustments related to extraordinary economic conditions or events such as COVID-19; and (iii) changes in the fair value of the embedded derivatives reflected within variable annuity products’ net derivative results and the impact of these items on DAC amortization on our SCS product;
• Investment (gains) losses, which includes credit loss impairments of securities/investments, sales or disposals of securities/investments, realized capital gains/losses and valuation allowances;
• Net actuarial (gains) losses, which includes actuarial gains and losses as a result of differences between actual and expected experience on pension plan assets or projected benefit obligation during a given period related to pension, other postretirement benefit obligations, and the one-time impact of the settlement of the defined benefit obligation;
• Other adjustments, which primarily include restructuring costs related to severance and separation, COVID-19 related impacts, net derivative gains (losses) on certain Non-GMxB derivatives, net investment income from certain items including consolidated VIE investments, seed capital mark-to-market adjustments, unrealized gain/losses associated with equity securities and certain legal accruals; and
• Income tax expense (benefit) related to the above items and non-recurring tax items, which includes the effect of uncertain tax positions for a given audit period.
Because Non-GAAP operating earnings excludes the foregoing items that can be distortive or unpredictable, management believes that this measure enhances the understanding of the Company’s underlying drivers of profitability and trends in our business, thereby allowing management to make decisions that will positively impact our business.
We use the prevailing corporate federal income tax rate of 21% while taking into account any non-recurring differences for events recognized differently in our financial statements and federal income tax returns as well as partnership income taxed at lower rates when reconciling Net income (loss) attributable to Holdings to Non-GAAP operating earnings. 1Q 2021 Financial Supplement 26
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Use of Non-GAAP Financial Measures
---
Non-GAAP Operating ROE and Non-GAAP Operating ROC by Segment
We report Non-GAAP Operating ROE and Non-GAAP Operating ROC by segment for our Individual Retirement, Group Retirement and Protection Solutions segments, each of which is a Non-GAAP financial measure used to evaluate our profitability on a consolidated basis and by segment, respectively.
We calculate Non-GAAP Operating ROE by dividing Non-GAAP operating earnings for the previous twelve calendar months by consolidated average equity attributable to Holdings’ common shareholders, excluding AOCI. We calculate Non-GAAP Operating ROC by segment by dividing Operating earnings (loss) on a segment basis for the previous twelve calendar months by average capital on a segment basis, excluding AOCI, as described below. AOCI fluctuates period-to-period in a manner inconsistent with our underlying profitability drivers as the majority of such fluctuation is related to the market volatility of the unrealized gains and losses associated with our AFS securities.
Therefore, we believe excluding AOCI is more effective for analyzing the trends of our operations. We do not calculate Non-GAAP Operating ROC by segment for our Investment Management and Research segment because we do not manage that segment from a return of capital perspective. Instead, we use metrics more directly applicable to an asset management business, such as AUM, to evaluate and manage that segment.
For Non-GAAP Operating ROC by segment, capital components pertaining directly to specific segments such as DAC along with targeted capital are directly attributed to these segments. Targeted capital for each segment is established using assumptions supporting statutory capital adequacy levels, reflecting the NAIC RBC framework adopted as of year-end 2019. To enhance the ability to analyze these measures across periods, interim periods are annualized. Non-GAAP Operating ROE and Non-GAAP Operating ROC by segment should not be used as substitutes for ROE.
Book Value per common share, excluding AOCI
We use the term “book value” to refer to “Total equity attributable to Holdings' common shareholders.” Book Value per common share, excluding AOCI, is our stockholder’s equity, excluding AOCI, divided by ending common shares outstanding.
Non-GAAP Operating Earnings per common share
Non-GAAP Operating Earnings per common share is calculated by dividing Non-GAAP Operating Earnings less preferred dividends by diluted common shares outstanding. 1Q 2021 Financial Supplement 27
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Reconciliation of Non-GAAP Measures (1/3)
---
For the Three Months Ended or As of
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
(in millions , unless otherwise indicated) 6/30/2020 9/30/2020 12/31/2020 3/31/2021 3/31/2020 3/31/2021
Net income (loss) attributable to Holdings
Net income (loss) attributable to Holdings 5,388 $ (4,019) $ (779) $ (1,238) $ (1,488) $ 5,388 $ (1,488)
Adjustments related to:
Variable annuity product features (1) 5,722 1,620 3,439 2,267 (6,869) 2,267
Investment gains (losses), net (169) (17) (554) (183) (4) (183)
Net actuarial gains (losses) related to pension and other postretirement benefit obligations 28 31 23 34 27 34
Other adjustments (2) (3) (4) 75 66 116 524 695 524
Income tax (expense) benefit related to above adjustments (5) (1,188) (357) (635) (555) 1,292 (555)
Non-recurring tax items 2 4 (403) 1 6 1
Non-GAAP Operating Earnings 535 $ 451 $ 568 $ 748 $ 600 $ 535 $ 600
Net income (loss) attributable to Holdings 11.62 $ (8.92) $ (1.74) $ (2.80) $ (3.43) $ 11.62 $ (3.43)
Less: Preferred stock dividends 0.02 0.03 0.04 0.03 0.02 0.03
Net income (loss) available to Holdings' common shareholders (8.94) (1.77) (2.84) (3.46) 11.60 (3.46)
Adjustments related to:
Variable annuity product features (1) 12.70 3.62 7.77 5.22 (14.82) 5.22
Investment gains (losses), net (0.38) (0.04) (1.25) (0.42) (0.01) (0.42)
Net actuarial gains (losses) related to pension and other postretirement benefit obligations 0.06 0.07 0.05 0.08 0.06 0.08
Other adjustments (2) (3) (4) 0.17 0.15 0.26 1.21 1.50 1.21
Income tax (expense) benefit related to above adjustments (5) (2.64) (0.80) (1.43) (1.28) 2.79 (1.28)
Non-recurring tax items — 0.01 (0.91) — 0.01 —
Non-GAAP Operating Earnings (loss) available to Holdings' common shareholders 1.13 $ 0.98 $ 1.24 $ 1.65 $ 1.35 $ 1.13 $ 1.35
Book Value per common share
Book Value per common share 42.63 $ 37.21 $ 36.05 $ 32.46 $ 21.32 $ 42.63 $ 21.32
Less: Per share impact of AOCI 8.74 9.42 8.76 1.73 5.08 1.73
Book value per common share (ex. AOCI) 37.55 $ 28.47 $ 26.63 $ 23.70 $ 19.59 $ 37.55 $ 19.59
Notes:
Some financial metrics have been revised for prior periods; for additional information, please refer to the 10-Q.
(1) Includes COVID-19 impact on Variable annuity product features due to an assumption update of 1.5 billion and other COVID-19 related impacts of 35 million for the three months ended March 31, 2020. The impact per common share is 3.17 and other COVID-19 related impacts of 0.08 for the three months ended March 31, 2020.
(2) Includes separation costs of 21 million and 32 million for the three months ended March 31, 2021 and 2020, respectively. The impact per common share is 0.05 and 0.07 for the three months ended March 31, 2021 and 2020.
(3) Includes certain legal accruals related to the cost of insurance litigation of 180 million for the three months ended March 31, 2021. The impact per common share is 0.41 for the three months ended March 31, 2021. No adjustment was made to prior period operating earnings as the impact was immaterial.
(4) Includes assumption update due to COVID-19 of 1.0 billion and other COVID-19 related impacts of 51 million for the three months ended March 31, 2020. The impact per common share is 2.26 and 0.11 for the three months ended March 31, 2020.
(5) Includes income taxes of (547) million for the above related COVID-19 items for the three months ended March 31, 2020. The impact per common share is (1.18) for the three months ended March 31, 2020.

All values are in US Dollars.

1Q 2021 Financial Supplement 28
Reconciliation of Non-GAAP Measures (2/3)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
As of and for the Twelve Months Ended
(in millions USD, unless otherwise indicated) 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021
Net Income to Non-GAAP Operating Earnings
Net income (loss) attributable to Holdings $ 4,429 $ 49 $ (356) $ (648) $ (7,524)
Adjustments related to:
Variable annuity product features (3,545) 1,980 2,169 3,912 13,048
Investment (gains) losses (88) (269) (87) (744) (923)
Net actuarial (gains) losses related to pension and other postretirement benefit obligations 102 106 113 109 116
Other adjustments 1,051 1,038 1,031 952 781
Income tax (expense) benefits related to above adjustments 531 (586) (665) (888) (2,735)
Non-recurring tax items (66) (6) 2 (391) (396)
Non-GAAP Operating Earnings $ 2,414 $ 2,312 $ 2,207 $ 2,302 $ 2,367
Return on Equity and Non-GAAP Operating Return on Equity - Trailing twelve months
Net income (loss) attributable to Holdings 4,429 49 (356) (648) (7,524)
Less: Preferred stock (13) (23) (34) (53) (53)
Net income (loss) available to Holdings' common shareholders $ 4,416 $ 26 $ (390) $ (701) $ (7,577)
Average equity attributable to Holdings' common shareholders (ex. AOCI) $ 14,008 $ 13,736 $ 13,348 $ 13,000 $ 10,868
Return on Equity (ex. AOCI) 31.5 % 0.2 % (2.9) % (5.4) % (69.7) %
Non-GAAP Operating Earnings $ 2,414 $ 2,312 $ 2,207 $ 2,302 $ 2,367
Less: Preferred stock (13) (23) (34) (53) (53)
Non-GAAP Operating Earnings available to Holdings' common shareholders $ 2,401 $ 2,289 $ 2,173 $ 2,249 $ 2,314
Average equity attributable to Holdings' common shareholders (ex. AOCI) $ 14,008 $ 13,736 $ 13,348 $ 13,000 $ 10,868
Non-GAAP Operating Return on Equity (ex. AOCI) 17.1 % 16.7 % 16.3 % 17.3 % 21.3 %

Some financial metrics have been revised for prior periods; for additional information, please refer to the 10-Q.

1Q 2021 Financial Supplement 29
Reconciliation of Non-GAAP Measures (3/3)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Balances as of
(in millions USD, unless otherwise indicated) 6/30/2019 9/30/2019 12/31/2019 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021
Equity Reconciliation - Quarter-end Balances
Total equity attributable to Holdings' shareholders $ 14,672 $ 14,940 $ 13,456 $ 19,981 $ 17,498 $ 17,300 $ 15,576 $ 10,693
Less: Preferred Stock — — 775 775 775 1,269 1,269 1,562
Total equity attributable to Holdings' common shareholders 14,672 14,940 12,681 19,206 16,723 16,031 14,307 9,131
Less: Accumulated other comprehensive income (loss) 789 1,546 844 2,289 3,928 4,188 3,863 740
Total equity attributable to Holdings' common shareholders (ex. AOCI) $ 13,883 $ 13,394 $ 11,837 $ 16,917 $ 12,795 $ 11,843 $ 10,444 $ 8,391
Balances as of
(in millions USD, unless otherwise indicated) 6/30/2019 9/30/2019 12/31/2019 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021
Equity Reconciliation - Twelve Month Rolling Average (2)
Total equity attributable to Holdings' shareholders 13,474 14,117 14,030 15,762 16,469 17,059 17,589 15,267
Less: Preferred Stock — — 194 388 581 899 1,022 1,219
Total equity attributable to Holdings' common shareholders 13,474 14,117 13,836 15,375 15,888 16,160 16,567 14,048
Less: Accumulated other comprehensive income (loss) (678) 101 664 1,367 2,152 2,812 3,567 3,180
Total equity attributable to Holdings' common shareholders (ex. AOCI) $ 14,152 $ 14,016 $ 13,172 $ 14,008 $ 13,736 $ 13,348 $ 13,000 $ 10,868
Notes:
Some financial metrics have been revised for prior periods; for additional information, please refer to the 10-Q. 1Q 2021 Financial Supplement 30
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Glossary of Selected Financial and Product Terms
--- Account Value (“AV”) - AV generally equals the aggregate policy account value of our retirement and protection products. General Account AV refers to account balances in investment options that are backed by the General Account while Separate Accounts AV refers to Separate Accounts investment assets.
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Annualized premiums - 100% of first year recurring premiums (up to target) and 10% of excess first year premiums or first year premiums from single premium products.
Assets Under Administration (“AUA”) - AUA includes non-insurance client assets that are invested in our savings and investment products or serviced by our Equitable Advisors platform. We provide administrative services for these assets and generally record the revenues received as distribution fees.
Assets Under Management (“AUM”) - AUM means investment assets that are managed by one of our subsidiaries and includes: (i) assets managed by AB; (ii) the assets in our General Account investment portfolio; and (iii) the Separate Account assets of our Individual Retirement, Group Retirement and Protection Solutions businesses. Total AUM reflects exclusions between segments to avoid double counting.
Average Account Value (TTM) - Calculated as an average of the previous twelve calendar months total Account Value balance as of end of period
Average Capital - For average capital amounts by segment, capital components pertaining directly to specific segments such as DAC along with targeted capital are directly attributed to these segments. Targeted capital for each segment is established using assumptions supporting statutory capital adequacy levels (including CTE98).
Benefit base - A notional amount (not actual cash value) used to calculate the owner’s guaranteed benefits within an annuity contract. The death benefit and living benefit within the same contract may not have the same benefit base.
Current Product Offering (Individual Retirement) - Products sold 2011 and later.
Deferred policy acquisition costs (“DAC”) - Represents the incremental costs related directly to the successful acquisition of new and certain renewal insurance policies and annuity contracts and which have been deferred on the balance sheet as an asset.
Equitable Advisors - means AXA Advisors, LLC, a Delaware limited liability company, our retail broker/dealer for our retirement and protection businesses and a wholly-owned indirect subsidiary of Holdings.
Equitable America - means Equitable Financial Life Insurance Company of America, an Arizona corporation and a wholly-owned indirect subsidiary of Holdings.
Equitable Life - means AXA Equitable Life Insurance Company, a New York corporation, a life insurance company and a wholly-owned subsidiary of AEFS.
Fixed Rate (Individual Retirement) - Pre-2011 GMxB products.
FYP - First year premium and deposits.
GMxB - A general reference to all forms of variable annuity guaranteed benefits, including guaranteed minimum living benefits, or GMLBs (such as GMIBs, GMWBs and GMABs), and guaranteed minimum death benefits, or GMDBs (inclusive of return of premium death benefit guarantees).
Gross premiums - FYP and Renewal premium and deposits.
Guaranteed minimum death benefits (“GMDB”) - An optional benefit (available for an additional cost) that guarantees an annuitant’s beneficiaries are entitled to a minimum payment based on the benefit base, which could be greater than the underlying AV, upon the death of the annuitant.
Guaranteed minimum income benefits (“GMIB”) - An optional benefit (available for an additional cost) where an annuitant is entitled to annuitize the policy and receive a minimum payment stream based on the benefit base, which could be greater than the underlying AV.
Guaranteed minimum living benefits (“GMLB”) - A reference to all forms of guaranteed minimum living benefits, including GMIBs, GMWBs and GMABs (does not include GMDBs).
Invested assets - Includes fixed maturity securities, equity securities, mortgage loans, policy loans, alternative investments and short-term investments.
Inv Mgmt and Research - Abbreviation for Investment Management and Research.
Net flows - Net change in customer account balances in a period including, but not limited to, gross premiums, surrenders, withdrawals and benefits. It excludes investment performance, interest credited to customer accounts and policy charges.
Net long-term flows - Net change of assets under management in a period which includes new sales net of redemptions of mutual funds and terminations of separately managed accounts and cash flow which includes both cash invested or withdrawn by existing clients. In addition, cash flow includes fees received from certain clients. It excludes the impact of the markets.
Premiums and deposits - Amounts a policyholder agrees to pay for an insurance policy or annuity contract that may be paid in one or a series of payments as defined by the terms of the policy or contract.
Protection Solutions Benefit Ratio - Calculated as sum of policyholders’ benefits and interest credited to policyholders’ account balances dividend by segment revenues.
Protection Solutions Reserves - Equals the aggregate value of Policyholders’ account balances and future policy benefits for policies in our Protection Solutions segment.
Renewal premium and deposits - Premiums and deposits after the first twelve months of the policy or contract.
Return of premium (“ROP”) death benefit - This death benefit pays the greater of the account value at the time of a claim following the owner’s death or the total contributions to the contract (subject to adjustment for withdrawals). The charge for this benefit is usually included in the M&E fee that is deducted daily from the net assets in each variable investment option. We also refer to this death benefit as the Return of Principal death benefit.
Return on Assets - Calculated as trailing twelve months operating earnings, before income taxes, divided by trailing twelve months average account value.
Return on Equity (ex. AOCI) - Calculated as trailing twelve months net income (loss) attributable to Holdings' common shareholders divided by average equity attributable to Holdings' common shareholders, excluding Accumulated Other Comprehensive Income (“AOCI”).
Trailing Twelve Months ("TTM") - The twelve calendar months preceding the balance sheet date of a given reporting period. 1Q 2021 Financial Supplement 31
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Analyst Coverage, Ratings & Contact Information
--- Analyst Coverage
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Firm Analyst Phone Number
Citi Suneet Kamath 1 (212) 816-3457
Credit Suisse Andrew Kligerman 1 (212) 325-5069
Evercore ISI Thomas Gallagher 1 (212) 446-9439
Goldman Sachs Yaron Kinar 1 (212) 902-9592
J.P. Morgan Jimmy Bhullar 1 (212) 622-6397
Keefe, Bruyette, & Woods Ryan Krueger 1 (860) 722-5930
Morgan Stanley Nigel Dally 1 (212) 761-4132
RBC Capital Markets Mark Dwelle 1 (804) 782-4008
SunTrust Robinson Humphrey Mark Hughes 1 (615) 748-4422
UBS Brian Meredith 1 (212) 713-2492
Wells Fargo Securities Elyse Greenspan 1 (212) 214-8031
This list is provided for informational purposes only. Equitable Holdings does not endorse the analyses, conclusions or recommendations contained in any reports issued by these or any other analysts.
Ratings
A.M. Best S&P Moody’s
Last review date Jan '21 Oct '20 Oct '20
Financial Strength Ratings:
Equitable Financial Life Insurance Company A A+ A2
Equitable Financial Life Insurance Company of America A A+ A2
Credit Ratings:
Equitable Holdings, Inc. — BBB+ Baa2
AllianceBernstein L.P. (1) — A A2
Investor and Media Contacts
Contact Investor Relations Contact Media Relations
Isil Muderrisoglu Thomas Lewis Matt Asensio
(212) 314-2476 (212) 314-4638 (212) 314-2010
IR@equitable.com MediaRelations@equitable.com
ir.equitableholdings.com www.equitableholdings.com
Notes:
(1) Last review dates: S&P as of Sep '20, Moody’s as of Oct '20.
1Q 2021 Financial Supplement 32
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