Impressive Growth and Strong Performance for Equitable Holdings
Equitable Holdings Achieves Strong Financial Results for 2024
Equitable Holdings, Inc. (NYSE: EQH) has announced outstanding financial performance for the full year and fourth quarter, showcasing resilience and strategic growth. The company reported effective operating earnings and impressive numbers that highlight its robust business model.
Year-End Highlights and Achievements
For the year ending December 31, 2024, Equitable Holdings reported a remarkable increase in its non-GAAP operating earnings per share of $5.93, marking a 29% rise compared to last year. This growth exceeded the company’s expectations and its sustainable target of 12-15%. The positive momentum can be attributed to outstanding performance in their Retirement segment, which saw record net inflows of $7.1 billion throughout the year, including $1.6 billion for Q4 alone. Equitable’s diversified business model enables it to seize opportunities in the expanding retirement market, providing solutions that are driven by client needs and preferences.
Market Position and Customer Relationships
With a total assets under management and administration (AUM/A) of $1 trillion, Equitable Holdings has cemented its standing as a leader in the financial services sector. The firm continues to foster strong relationships with over 5 million clients globally, showcasing its commitment to delivering personalized financial strategies. The company’s Wealth Management segment reported advisory net inflows of $4.0 billion, underscoring the efficiency and productivity increases in its advisory services, which rose by 10% year-over-year.
Future Prospects
Mark Pearson, President and Chief Executive Officer, expressed optimism about 2025, projecting continued growth in non-GAAP operating EPS and cash generation to increase between $1.6 billion and $1.7 billion. This forecast indicates confidence in the company's strategy and highlights the expected benefits from robust organic growth across its businesses. Equitable Holdings remains steadfast in its endeavor to meet strategic initiatives that provide shareholder value.
Business Highlights
1. Individual Retirement segment achieved significant net inflows.
2. AllianceBernstein garnered $4.3 billion in active net inflows despite market volatility.
3. The company returned $1.3 billion to shareholders, aligning with its payout ratio guidance of 60-70% of non-GAAP operating earnings.
Segment Performance Review
Equitable Holdings has made impressive strides across various business segments. The Individual Retirement segment reported a solid performance with net inflows of $7.2 billion, while the Group Retirement segment faced some outflows, primarily due to the competitive landscape. Asset Management saw a mixed performance with net outflows offset by strong net inflows in specific areas, demonstrating the effective management strategies in place.
Financial Stability and Shareholder Value
The company’s commitment to maintaining financial stability is apparent, with a reported cash flow of $1.5 billion for the year. Furthermore, ongoing investments in strategic initiatives are set to yield long-term benefits. Equitable has also successfully executed its capital management strategies, which include strong returns to shareholders and effective resource allocation that balances investment needs and shareholder expectations.
Frequently Asked Questions
What financial results did Equitable Holdings announce for 2024?
Equitable Holdings announced non-GAAP operating earnings per share of $5.93 for 2024, reflecting a 29% increase from the previous year.
How did the Retirement segment perform in 2024?
The Retirement segment reported record net inflows of $7.1 billion for the full year, demonstrating significant growth.
What is Equitable's outlook for 2025?
The company expects to maintain strong growth, with projected non-GAAP operating EPS growth remaining consistent with its 12-15% target.
How much capital did Equitable return to shareholders?
Equitable returned $1.3 billion to shareholders in 2024, aligning with its 60-70% payout ratio guidance.
What is the total AUM/A for Equitable Holdings?
As of December 31, 2024, Equitable Holdings reported total assets under management and administration of $1 trillion.
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