Equitable Holdings, Inc. - FORM 8-K - EX-99.2 - November 4, 2020

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Table of Contents
Consolidated Financials and Key Metrics    Page
Key Metrics Summary
Consolidated Statements of Income (Loss)
Consolidated Balance Sheets
Consolidated Capital Structure
Operating Earnings (Loss) by Segment and Corporate and Other
Assets Under Management and Administration
Sales Metrics by Segment
Select Metrics from Business Segments
Individual Retirement
Statements of Operating Earnings (Loss) and Summary Metrics
Select Operating Metrics
Group Retirement
Statements of Operating Earnings (Loss) and Summary Metrics
Select Operating Metrics
Investment Management and Research
Statements of Operating Earnings (Loss) and Summary Metrics
Select Operating Metrics
Net Flows
Protection Solutions
Statements of Operating Earnings (Loss) and Summary Metrics
Select Operating Metrics
Investments
Consolidated Investment Portfolio Composition
Consolidated Results of General Account Investment Portfolio
Additional Information
Deferred Policy Acquisition Costs Rollforward
Use of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Measures
Glossary of Selected Financial and Product Terms
Analyst Coverage, Ratings & Contact Information
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 September 30, 2020.
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.
3Q 2020 Financial Supplement
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Consolidated Financials
and Key Metrics

3Q 2020 Financial Supplement
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Key Metrics Summary
For the Three Months Ended or As ofNine Months Ended or As of
(in millions USD, unless otherwise indicated)9/30/201912/31/20193/31/20206/30/20209/30/2020Change9/30/20199/30/2020Change
Net income (loss)$(306)$(850)$5,425 $(3,933)$(705)(130.4)%$(617)$787 227.6 %
Net income (loss) attributable to the noncontrolling interest(68)(96)(37)(86)(74)(8.8)%(201)(197)2.0 %
Net income (loss) attributable to Holdings$(374)$(946)$5,388 $(4,019)$(779)(108.3)%$(818)$590 172.1 %
Non-GAAP Operating Earnings (1)$673 $653 $535 $451 $568 (15.6)%$1,704 $1,554 (8.8)%
Total equity attributable to Holdings' shareholders$14,940 $13,456 $19,981 $17,498 $17,300 15.8 %$14,940 $17,300 15.8 %
Less: Preferred Stock— 775 775 775 1,269 100.0 %— 1,269 100.0 %
Total equity attributable to Holdings' common shareholders14,940 12,681 19,206 16,723 16,031 7.3 %14,940 16,031 7.3 %
Less: Accumulated other comprehensive income (loss)1,546 844 2,289 3,928 4,188 170.9 %1,546 4,188 170.9 %
Total equity attributable to Holdings' common shareholders (ex. AOCI)$13,394 $11,837 $16,917 $12,795 $11,843 (11.6)%$13,394 $11,843 (11.6)%
Return on Equity (ex. AOCI) - TTM8.1 %(13.4)%31.5 %0.2 %(2.9)%8.1 %(2.9)%
Non-GAAP Operating ROE (1)15.9 %17.9 %17.1 %16.7 %16.3 %15.9 %16.3 %— %
Debt to capital:
Debt to Capital24.3 %23.4 %17.4 %19.0 %19.2 %24.3 %19.2 %
Debt to Capital (ex. AOCI)26.4 %24.6 %19.2 %23.3 %23.9 %26.4 %23.9 %
Per common share:
Diluted earnings per common share: (2)
Net income (loss) attributable to Holdings$(0.76)$(1.99)$11.60 $(8.94)$(1.77)(131.5)%$(1.64)$1.22 174.8 %
Non-GAAP Operating Earnings (1)$1.37 $1.37 $1.13 $0.98 $1.24 (9.3)%$3.41 $3.35 (1.8)%
Book value per common share$30.53 $27.35 $42.63 $37.21 $36.05 18.1 %$30.53 $36.05 18.1 %
Book value per common share (ex. AOCI)$27.37 $25.53 $37.55 $28.47 $26.63 (2.7)%$27.37 $26.63 (2.7)%
Weighted-average common shares outstanding:
Basic490.4 474.9 461.0 450.4 447.5 (8.7)%499.8 453.0 (9.4)%
Diluted490.4 474.9 463.5 450.4 447.5 (8.7)%499.8 454.1 (9.1)%
Ending common shares outstanding489.3 463.7 450.5 449.4 444.7 (9.1)%489.3 444.7 (9.1)%
Return to common shareholders:
Common stock dividend$74 $70 $69 $77 $76 $215 $222 
Repurchase of common shares37 563 205 25 100 787 330 
Total capital returned to common shareholders$111 $633 $274 $102 $176 $1,002 $552 
Market Values:
S&P 5002,977 3,231 2,585 3,100 3,363 13.0 %2,977 3,363 13.0 %
US 10-Year Treasury1.7 %1.9 %0.7 %0.7 %0.7 %1.7 %0.7 %
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.
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Consolidated Statements of Income (Loss)
For the Three Months EndedNine Months Ended
(in millions USD, unless otherwise indicated)9/30/201912/31/20193/31/20206/30/20209/30/2020Change9/30/20199/30/2020Change
Revenues
Policy charges and fee income$980 $931 $996 $877 $914 (6.7)%$2,847 $2,787 (2.1)%
Premiums284 300 289 244 221 (22.2)%847 754 (11.0)%
Net derivative gains (losses)(453)(1,689)9,400 (6,038)(1,472)(224.9)%(2,323)1,890 181.4 %
Net investment income (loss)824 884 629 1,022 879 6.7 %2,815 2,530 (10.1)%
Investment gains (losses), net 199 (103)4 169 17 (91.5)%176 190 8.0 %
Investment management and service fees1,101 1,208 1,136 1,052 1,126 2.3 %3,172 3,314 4.5 %
Other income143 145 155 124 155 8.4 %409 434 6.1 %
Total revenues3,078 1,676 12,609 (2,550)1,840 (40.2)%7,943 11,899 49.8 %
Benefits and other deductions
Policyholders’ benefits1,735 834 2,776 736 1,034 (40.4)%3,551 4,546 28.0 %
Interest credited to policyholders’ account balances320 319 317 307 306 (4.4)%944 930 (1.5)%
Compensation and benefits502 558 526 469 503 0.2 %1,523 1,498 (1.6)%
Commissions and distribution related payments317 337 338 302 342 7.9 %905 982 8.5 %
Interest expense54 54 52 48 52 (3.7)%167 152 (9.0)%
Amortization of deferred policy acquisition costs 128 108 1,303 162 90 (29.7)%489 1,555 218.0 %
Other operating costs and expenses449 575 438 434 436 (2.9)%1,315 1,308 (0.5)%
Total benefits and other deductions3,505 2,785 5,750 2,458 2,763 (21.2)%8,894 10,971 23.4 %
Income (loss) from operations, before income taxes(427)(1,109)6,859 (5,008)(923)(116.2)%(951)928 197.6 %
Income tax (expense) benefit121 259 (1,434)1,075 218 80.2 %334 (141)(142.2)%
Net income (loss)(306)(850)5,425 (3,933)(705)(130.4)%(617)787 227.6 %
Less: net (income) loss attributable to the noncontrolling interest(68)(96)(37)(86)(74)(8.8)%(201)(197)2.0 %
Net income (loss) attributable to Holdings$(374)$(946)$5,388 $(4,019)$(779)(108.3)%$(818)$590 172.1 %
Less: Preferred stock dividends— — (13)(10)(11)(100.0)%— (34)(100.0)%
Net income (loss) available to Holdings' common shareholders$(374)$(946)$5,375 $(4,029)$(790)(111.2)%$(818)$556 168.0 %
Adjustments related to:
Variable annuity product features (1)$1,431 $1,696 $(6,869)$5,722 $1,620 $3,167 $473 
Investment gains (losses), net(199)103 (4)(169)(17)(176)(190)
Net actuarial gains (losses) related to pension and other postretirement benefit obligations24 27 27 28 31 72 86 
Other adjustments (2) (3)73 195 695 75 66 200 836 
Income tax (expense) benefit related to above adjustments (4)(278)(412)1,292 (1,188)(357)(685)(253)
Non-recurring tax items(4)(10)6 2 4 (56)12 
Non-GAAP Operating earnings (5)$673 $653 $535 $451 $568 $1,704 $1,554 
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 a first quarter 2020 assumption update of $1.5 billion and other COVID-19 related impacts of $35 million for the nine months ended September 30, 2020.
(2) Includes separation costs of $37 million, $39 million, $108 million and $121 million for the three and nine months ended September 30, 2020 and 2019, respectively.
(3) Includes COVID-19 impact on Other adjustments due to a first quarter 2020 assumption update of $1.0 billion and other COVID-19 related impacts of $86 million for the nine months ended September 30, 2020.
(4) Includes income taxes of $(554) million for the above related COVID-19 items for the nine months ended September 30, 2020.
(5) 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.
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Consolidated Balance Sheets
Balances as of
(in millions USD, unless otherwise indicated)9/30/201912/31/20193/31/20206/30/20209/30/2020
Assets
Total investments$94,717 $93,340 $96,228 $102,693 $105,778 
Cash and cash equivalents4,471 4,405 10,315 8,364 8,684 
Cash and securities segregated, at fair value958 1,095 2,013 1,882 1,869 
Broker-dealer related receivables1,935 1,987 2,436 1,998 1,929 
Deferred policy acquisition costs5,636 5,837 4,697 4,090 4,171 
Goodwill and other intangible assets, net4,765 4,751 4,760 4,756 4,745 
Amounts due from reinsurers4,656 4,592 4,614 4,665 4,580 
GMIB reinsurance contract asset, at fair value2,452 2,139 2,823 2,931 2,818 
Other assets3,882 3,800 5,824 3,724 4,476 
Assets held-for-sale— 962 843 — — 
Separate Accounts assets121,023 126,910 106,128 118,915 123,446 
Total assets$244,495 $249,818 $240,681 $254,018 $262,496 
Liabilities
Policyholders’ account balances$56,710 $58,879 $55,810 $59,272 $62,726 
Future policy benefits and other policyholders’ liabilities36,178 34,635 38,001 41,506 41,139 
Broker-dealer related payables519 722 1,001 1,001 760 
Customers related payables2,381 2,523 3,630 3,199 3,461 
Amounts due to reinsurers1,387 1,404 1,380 1,399 1,391 
Short-term and long-term debt4,794 4,111 4,217 4,113 4,114 
Income taxes payable850 528 2,327 1,822 1,648 
Other liabilities3,833 3,970 5,716 3,666 4,864 
Liabilities held-for-sale— 724 679 — — 
Separate Accounts liabilities121,023 126,910 106,128 118,915 123,446 
Total liabilities227,675 234,406 218,889 234,893 243,549 
Redeemable noncontrolling interest338 365 257 87 95 
Equity
Preferred stock— 775 775 775 1,269 
Common stock5 5 5 5 5 
Additional paid-in capital1,897 1,920 1,930 1,938 1,953 
Treasury shares(1,269)(1,832)(2,025)(2,047)(2,147)
Retained earnings12,761 11,744 17,007 12,899 12,032 
Accumulated other comprehensive income (loss)1,546 844 2,289 3,928 4,188 
Total equity attributable to Holdings14,940 13,456 19,981 17,498 17,300 
Noncontrolling interest1,542 1,591 1,554 1,540 1,552 
Total equity16,482 15,047 21,535 19,038 18,852 
Total liabilities, redeemable noncontrolling interest and equity$244,495 $249,818 $240,681 $254,018 $262,496 
Some financial metrics have been revised for prior periods; for additional information, please refer to the 10-Q.
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Consolidated Capital Structure
Balances as of
(in millions USD, unless otherwise indicated)9/30/201912/31/20193/31/20206/30/20209/30/2020
Short-term and long-term debt:
Short-term debt
AB commercial paper$303 $— $105 $— $— 
AB revolving credit facility80 — — — — 
Total short-term debt383 — 105 — — 
Total long-term debt4,411 4,111 4,112 4,113 4,114 
Total short-term and long-term debt: [A]
$4,794 $4,111 $4,217 $4,113 $4,114 
Equity:
Preferred stock$— $775 $775 $775 $1,269 
Common stock$5 $5 $5 $5 $5 
Additional paid-in capital1,897 1,920 1,930 1,938 1,953 
Treasury stock, at cost(1,269)(1,832)(2,025)(2,047)(2,147)
Retained earnings12,761 11,744 17,007 12,899 12,032 
Accumulated other comprehensive income (loss)1,546 844 2,289 3,928 4,188 
Total equity attributable to Holdings14,940 13,456 19,981 17,498 17,300 
Noncontrolling interest1,542 1,591 1,554 1,540 1,552 
Total equity$16,482 $15,047 $21,535 $19,038 $18,852 
Total equity attributable to Holdings, (ex. AOCI): [B]
$13,394 $12,612 $17,692 $13,570 $13,112 
Capital:
Total capitalization$19,734 $17,567 $24,198 $21,611 $21,414 
Total capitalization (ex. AOCI): [A+B]
$18,188 $16,723 $21,909 $17,683 $17,226 
Debt to capital:
Debt to capital24.3 %23.4 %17.4 %19.0 %19.2 %
Debt to capital (ex. AOCI)26.4 %24.6 %19.2 %23.3 %23.9 %
For the Three Months Ended
Roll-forward of common shares outstanding (millions of shares):
Beginning balance491.1 489.3 463.7 450.5 449.4 
Repurchases(1.8)(25.6)(13.7)(1.2)(4.7)
Retirements— — — — — 
Issuances— — 0.5 0.1 — 
Ending basic common shares outstanding489.3 463.7 450.5 449.4 444.7 
Total potentially dilutive shares— — 2.5 1.4 1.1 
Ending common shares outstanding - maximum potential dilution489.3 463.7 453.0 450.8 445.8 
Some financial metrics have been revised for prior periods; for additional information, please refer to the 10-Q.
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Operating Earnings (Loss) by Segment and Corporate and Other (1/2)
Three Months Ended September 30, 2020
(in millions USD, unless otherwise indicated)Individual RetirementGroup RetirementInv Mgmt and ResearchProtection SolutionsCorporate and OtherConsolidated
Revenues
Policy charges, fee income and premiums$519 $75 $— $450 $90 $1,134 
Net investment income (loss)324 174 13 240 121 872 
Net derivative gains (losses)58 (3)(14)3 1 45 
Investment management, service fees and other income178 55 900 58 88 1,279 
Segment revenues1,079 301 899 751 300 3,330 
Benefits and other deductions
Policyholders’ benefits298 1 — 455 163 917 
Interest credited to policyholders’ account balances78 76 — 130 22 306 
Commissions and distribution related payments71 9 148 40 74 342 
Amortization of deferred policy acquisition costs 94 14 — (16)— 92 
Compensation, benefits and other operating costs and expenses93 46 531 82 89 841 
Interest expense and financing fees— — 1 — 56 57 
Segment benefits and other deductions634 146 680 691 404 2,555 
Operating earnings (loss), before income taxes445 155 219 60 (104)775 
Income Taxes(74)(26)(40)(9)18 (131)
Operating earnings (loss), before noncontrolling interest371 129 179 51 (86)644 
Less: Operating (earnings) loss attributable to the noncontrolling interest— — (75)— (1)(76)
Operating earnings (loss)$371 $129 $104 $51 $(87)$568 
Three Months Ended September 30, 2019
Individual RetirementGroup RetirementInv Mgmt and ResearchProtection SolutionsCorporate and OtherConsolidated
Revenues
Policy charges, fee income and premiums$538 $72 $— $555 $99 $1,264 
Net investment income (loss)287 148 5 242 120 802 
Net derivative gains (losses)170 1 — (1)2 172 
Investment Management, service fees and other income186 52 867 59 81 1,245 
Segment revenues1,181 273 872 855 302 3,483 
Benefits and other deductions
Policyholders’ benefits376 — — 359 186 921 
Interest credited to policyholders’ account balances77 78 — 131 34 320 
Commissions and distribution related payments72 9 128 41 67 317 
Amortization of deferred policy acquisition costs (8)5 — 120 (1)116 
Compensation, benefits and other operating costs and expenses100 54 542 84 68 848 
Interest Expense and Financing Fees— — 2 — 59 61 
Segment benefits and other deductions617 146 672 735 413 2,583 
Operating earnings (loss), before income taxes564 127 200 120 (111)900 
Income Taxes(99)(22)(38)(20)21 (158)
Operating earnings (loss), before noncontrolling interest465 105 162 100 (90)742 
Less: Operating (earnings) loss attributable to the noncontrolling interest— — (69)— — (69)
Operating earnings (loss)$465 $105 $93 $100 $(90)$673 
Some financial metrics have been revised for prior periods; for additional information, please refer to the 10-Q.
3Q 2020 Financial Supplement
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Operating Earnings (Loss) by Segment and Corporate and Other (2/2)
Nine Months Ended September 30, 2020
(in millions USD, unless otherwise indicated)Individual RetirementGroup RetirementInv Mgmt and ResearchProtection SolutionsCorporate and OtherConsolidated
Revenues
Policy charges, fee income and premiums$1,513 $214 $— $1,480 $291 $3,498 
Net investment income (loss)906 460 12 688 338 2,404 
Net derivative gains (losses)414 1 (15)10 (3)407 
Investment Management, service fees and other income519 154 2,653 166 255 3,747 
Segment revenues3,352 829 2,650 2,344 881 10,056 
Benefits and other deductions
Policyholders’ benefits1,046 2 — 1,415 504 2,967 
Interest credited to policyholders’ account balances241 226 — 394 75 936 
Commissions and distribution related payments203 33 414 115 217 982 
Amortization of deferred policy acquisition costs253 28 — 63 (1)343 
Compensation, benefits and other operating costs and expenses286 147 1,612 251 221 2,517 
Interest expense and financing fees— — 5 — 164 169 
Segment benefits and other deductions2,029 436 2,031 2,238 1,180 7,914 
Operating earnings (loss), before income taxes1,323 393 619 106 (299)2,142 
Income Taxes(229)(68)(109)(18)53 (371)
Operating earnings (loss), before noncontrolling interest1,094 325 510 88 (246)1,771 
Less: Operating (earnings) loss attributable to the noncontrolling interest— — (219)— 2 (217)
Operating earnings (loss)$1,094 $325 $291 $88 $(244)$1,554 
Nine Months Ended September 30, 2019
Individual RetirementGroup RetirementInv Mgmt and ResearchProtection SolutionsCorporate and OtherConsolidated
Revenues
Policy charges, fee income and premiums$1,560 $206 $— $1,622 $306 $3,694 
Net investment income (loss)835 432 44 714 388 2,413 
Net derivative gains (losses)312 3 (29)10 (3)293 
Investment Management, service fees and other income546 150 2,485 178 223 3,582 
Segment revenues3,253 791 2,500 2,524 914 9,982 
Benefits and other deductions
Policyholders’ benefits904 1 — 1,277 556 2,738 
Interest credited to policyholders’ account balances229 226 — 396 93 944 
Commissions and distribution related payments209 30 350 122 194 905 
Amortization of deferred policy acquisition costs129 27 — 229 (6)379 
Compensation, benefits and other operating costs and expenses325 168 1,598 254 194 2,539 
Interest Expense and Financing Fees— — 9 — 170 179 
Segment benefits and other deductions1,796 452 1,957 2,278 1,201 7,684 
Operating earnings (loss), before income taxes1,457 339 543 246 (287)2,298 
Income Taxes(251)(58)(100)(39)51 (397)
Operating earnings (loss), before noncontrolling interest1,206 281 443 207 (236)1,901 
Less: Operating (earnings) loss attributable to the noncontrolling interest— — (193)— (4)(197)
Operating earnings (loss)$1,206 $281 $250 $207 $(240)$1,704 
Some Financial metrics have been revised for prior periods; for additional information, please refer to the 10-Q.

3Q 2020 Financial Supplement
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Assets Under Management and Administration
Balances as of
(in billions USD, except for Equitable Headcount)9/30/201912/31/20193/31/20206/30/20209/30/2020
Assets Under Management
AB AUM
Total AB$592.4 $622.9 $541.8 $600.0 $630.8 
Exclusion for General Account and other Affiliated Accounts(75.2)(74.4)(77.4)(82.9)(85.9)
Exclusion for Separate Accounts(36.6)(38.5)(30.9)(35.6)(36.6)
AB third party$480.6 $509.9 $433.5 $481.5 $508.3 
Total company AUM
AB third party$480.6 $509.9 $433.5 $481.5 $508.3 
General Account and other Affiliated Accounts99.2 97.7 106.5 111.1 114.5 
Separate Accounts121.0 126.9 106.1 118.9 123.4 
Total AUM$700.8 $734.6 $646.2 $711.5 $746.3 
Total Assets Under Administration (AUA) (1)$50.8 $54.1 $47.9 $53.5 $56.3 
Equitable Advisor Headcount
Total Number of Equitable Advisors4,330 4,487 4,357 4,333 4,273 
Notes:
(1) AUA includes Equitable Advisors Advisory and Brokerage AUA; Equitable Advisors broker-dealer business is included in Corporate and Other.

3Q 2020 Financial Supplement
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Sales Metrics by Segment
For the Three Months EndedNine Months Ended
(in millions USD, unless otherwise indicated)9/30/201912/31/20193/31/20206/30/20209/30/2020Change9/30/20199/30/2020Change
Insurance Operations
Individual Retirement
First year premiums and deposits$2,062 $2,157 $1,918 $1,631 $1,656 (19.7)%$6,034 $5,205 (13.7)%
Renewal premium and deposits80 82 76 91 91 13.7 %267 258 (3.6)%
Total Gross Premiums$2,142 $2,239 $1,994 $1,722 $1,747 (18.4)%$6,302 $5,463 (13.3)%
Group Retirement
First year premiums and deposits$332 $469 $364 $226 $254 (23.4)%$1,018 $844 (17.1)%
Renewal premium and deposits438 544 561 570 452 3.0 %1,502 1,583 5.4 %
Total Gross Premiums$770 $1,013 $925 $796 $706 (8.4)%$2,520 $2,427 (3.7)%
Protection Solutions
First year premiums and deposits$113 $122 $99 $89 $76 (32.6)%$337 $264 (21.7)%
Renewal premium and deposits664 668 679 604 624 (6.1)%1,972 1,907 (3.3)%
Total Gross Premiums$777 $790 $778 $693 $700 (9.9)%$2,309 $2,171 (6.0)%
Investment Management and Research (in billions USD)
Gross Sales by distribution channel
Institutional $2.9 $5.4 $3.9 $8.8 $8.3 186.2 %$11.7 $21.0 79.5 %
Retail 21.1 18.9 24.2 19.6 17.5 (17.1)%56.4 61.3 8.7 %
Private Wealth Management (3)2.3 2.7 3.5 3.4 3.5 52.2 %8.6 10.5 22.1 %
Firmwide Gross Sales (3)$26.3 $27.0 $31.6 $31.8 $29.3 11.4 %$76.7 $92.8 21.0 %
Gross sales by investment service
Equity Active $6.9 $10.9 $12.1 $13.8 $12.0 73.9 %$23.7 37.9 59.9 %
Equity Passive (1) 0.3 0.3 0.4 — 1.2 300.0 %0.2 1.6 700.0 %
Fixed Income - Taxable 16.2 12.2 14.7 15.0 11.0 (32.1)%40.8 40.7 (0.2)%
Fixed Income - Tax-Exempt (3)2.5 2.4 2.9 2.3 2.2 (12.0)%7.6 7.5 (1.3)%
Fixed Income Passive (1)— — — — — — %0.1 — (100.0)%
Other (2)0.4 1.2 1.5 0.7 2.9 625.0 %4.3 5.1 18.6 %
Firmwide Gross Sales (3)$26.3 $27.0 $31.6 $31.8 $29.3 11.4 %$76.7 $92.8 21.0 %
Notes:
(1) Includes index and enhanced index services.
(2) Includes certain multi-asset solutions and services and certain alternative investments.
(3) Line item does not cross foot due to rounding.


3Q 2020 Financial Supplement
11





Business Segments:
Operating Earnings Results and Metrics

3Q 2020 Financial Supplement
12

Individual Retirement - Operating Earnings (Loss) and Summary Metrics
For the Three Months Ended or As ofNine Months Ended or As of
(in millions USD, unless otherwise indicated)9/30/201912/31/20193/31/20206/30/20209/30/2020Change9/30/20199/30/2020Change
Revenues
Policy charges, fee income and premiums$538 $525 $501 $493 $519 (3.5)%$1,560 $1,513 (3.0)%
Net investment income (loss)287 313 316 266 324 12.9 %835 906 8.5 %
Net derivative gains (losses)170 50 479 (123)58 (65.9)%312 414 32.7 %
Investment management, service fees and other income186 184 177 164 178 (4.3)%546 519 (4.9)%
Segment revenues1,181 1,072 1,473 800 1,079 (8.6)%3,253 3,352 3.0 %
Benefits and other deductions
Policyholders’ benefits376 280 672 76 298 (20.7)%904 1,046 15.7 %
Interest credited to policyholders’ account balances77 81 82 81 78 1.3 %229 241 5.2 %
Commissions and distribution-related payments72 72 72 60 71 (1.4)%209 203 (2.9)%
Amortization of deferred policy acquisition costs(8)52 87 72 94 N/M129 253 96.1 %
Compensation and benefits, interest expense and financing fees and other operating costs and expense100 110 106 87 93 (7.0)%325 286 (12.0)%
Segment benefits and other deductions617 595 1,019 376 634 2.8 %1,796 2,029 13.0 %
Operating earnings (loss), before income taxes564 477 454 424 445 (21.1)%1,457 1,323 (9.2)%
Income taxes(99)(85)(81)(74)(74)25.3 %(251)(229)8.8 %
Operating earnings (loss), before noncontrolling interest465 392 373 350 371 (20.2)%1,206 1,094 (9.3)%
Less: Operating (earnings) loss attributable to the noncontrolling interest— — — — — — %— — — %
Operating earnings (loss)$465 $392 $373 $350 $371 (20.2)%$1,206 $1,094 (9.3)%
Summary Metrics
Operating earnings (loss) - TTM: [A]
$1,551 $1,598 $1,589 $1,580 $1,486 (4.2)%$1,551 $1,486 (4.2)%
Average capital - TTM: [B]
$7,170 $7,357 $7,322 $7,004 $6,682 (6.8)%$7,170 $6,682 (6.8)%
Non-GAAP Operating ROC - TTM (1): [A/B]
21.6 %21.7 %21.7 %22.6 %22.2 %21.6 %22.2 %
Average Account Value (TTM)$101,343 $104,927 $102,699 $102,583 $103,546 2.2 %$101,343 $103,546 2.2 %
Return on assets (TTM)1.82 %1.84 %1.88 %1.87 %1.74 %1.82 %1.74 %
Net flows
Current Product Offering$802 $842 $615 $656 $351 (56.2)%$2,488 $1,622 (34.8)%
Fixed Rate(925)(1,038)(935)(709)(778)15.9 %(2,791)(2,422)13.2 %
Net flows$(123)$(196)$(320)$(53)$(427)(247.7)%$(303)$(800)(164.2)%
First year premiums and deposits$2,062 $2,157 $1,918 $1,631 $1,656 (19.7)%$6,034 $5,205 (13.7)%
In-force Policy Count by Product (in thousands):
Fixed rate360357351347342360342
Current product offering546549553556557546557
Total906906904903899906899
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.


3Q 2020 Financial Supplement
13

Individual Retirement - Select Operating Metrics
For the Three Months Ended or As ofNine Months Ended or As of
(in millions USD, unless otherwise indicated)9/30/201912/31/20193/31/20206/30/20209/30/20209/30/20199/30/2020
Sales Metrics
First Year Premiums by Product:
SCS$1,305 $1,425 $1,227 $987 $1,166 $3,713 $3,380 
Retirement Cornerstone522 507 461 465 324 1,648 1,250 
Investment Edge146 141 132 89 97 408 318 
Other89 84 98 90 69 265 257 
Total First Year Premiums$2,062 $2,157 $1,918 $1,631 $1,656 $6,034 $5,205 
First Year Premiums by Guarantee:
Non-GMxB$1,483 $1,573 $1,377 $1,093 $1,255 $4,155 $3,725 
ROP death benefit only118 149 135 119 134 402 388 
Total non-GMxB & ROP death benefit only1,601 1,722 1,512 1,212 1,389 4,557 4,113 
Floating rate GMxB449 425 398 409 266 1,439 1,073 
Fixed rate GMxB12 10 8 10 1 38 19 
Total First Year Premiums$2,062 $2,157 $1,918 $1,631 $1,656 $6,034 $5,205 
Account Values
General Account:
Balance as of beginning of period$23,455 $24,409 $26,108 $23,862 $27,075 $20,631 $26,108 
Gross premiums1,273 1,315 1,376 956 915 3,718 3,247 
Surrenders, withdrawals and benefits(474)(477)(477)(378)(528)(1,448)(1,383)
Net flows799 838 899 578 387 2,270 1,864 
Investment performance, interest credited and policy charges155 861 (3,136)2,635 914 1,966 413 
Transfer to Corp & Other— — — — — (458)— 
Other (2)— — (6)— — — (6)
Reclassified to Assets held-for-sale— — (3)— — — (3)
Balance as of end of period$24,409 $26,108 $23,862 $27,075 $28,376 $24,409 $28,376 
Separate Accounts:
Balance as of beginning of period$80,852 $79,570 $82,814 $69,727 $76,765 $73,958 $82,814 
Gross premiums862 911 614 763 820 2,628 2,197 
Surrenders, withdrawals and benefits(1,784)(1,945)(1,833)(1,394)(1,634)(5,201)(4,861)
Net flows(922)(1,034)(1,219)(631)(814)(2,573)(2,664)
Investment performance, interest credited and policy charges(360)4,278 (11,868)7,669 3,504 8,185 (695)
Transfer to Corp & Other— — — — — — — 
Other (2)— — — — — — — 
Reclassified to Assets held-for-sale— — — — — — — 
Balance as of end of period$79,570 $82,814 $69,727 $76,765 $79,455 $79,570 $79,455 
Total:
Balance as of beginning of period$104,307 $103,979 $108,922 $93,589 $103,840 $94,589 $108,922 
Gross premiums (1)2,135 2,226 1,990 1,719 1,735 6,346 5,444 
Surrenders, withdrawals and benefits(2,258)(2,422)(2,310)(1,772)(2,162)(6,649)(6,244)
Net flows(123)(196)(320)(53)(427)(303)(800)
Investment performance, interest credited and policy charges(205)5,139 (15,004)10,304 4,418 10,151 (282)
Transfer to Corp & Other— — — — — (458)— 
Other (2)— — (6)— — — (6)
Reclassified to Assets held-for-sale— — (3)— — — (3)
Balance as of end of period$103,979 $108,922 $93,589 $103,840 $107,831 $103,979 $107,831 
Net Amount at Risk (NAR)
Total GMIB NAR$9,980 $8,746 $16,184 $14,234 $13,403 $9,980 $13,403 
Total GMDB NAR20,399 19,122 25,791 22,134 21,061 20,399 21,061 
Reserves (Net of Reinsurance)
GMIB Reserves$11,428 $10,664 $12,754 $15,267 $14,984 $11,428 $14,984 
GMDB Reserves4,658 4,674 4,933 4,897 5,021 4,658 5,021 
Total GMDB/IB Variable Annuity Reserves (Net of Reinsurance)$16,086 $15,338 $17,687 $20,164 $20,005 $16,086 $20,005 
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 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.
3Q 2020 Financial Supplement
14

Group Retirement - Operating Earnings (Loss) and Summary Metrics
For the Three Months Ended or As ofNine Months Ended or As of
(in millions USD, unless otherwise indicated)9/30/201912/31/20193/31/20206/30/20209/30/2020Change9/30/20199/30/2020Change
Revenues
Policy charges, fee income and premiums$72 $73 $71 $68 $75 4.2 %$206 $214 3.9 %
Net investment income (loss)148 158 159 127 174 17.6 %432 460 6.5 %
Net derivative gains (losses)1 1 — 4 (3)(400.0)%3 1 (66.7)%
Investment management, service fees and other income52 54 52 47 55 5.8 %150 154 2.7 %
Segment revenues273 286 282 246 301 10.3 %791 829 4.8 %
Benefits and other deductions
Policyholder benefits— 1 — 1 1 100.0 %1 2 100.0 %
Interest credited to policyholders’ account balances78 76 76 74 76 (2.6)%226 226 — %
Commissions and distribution-related payments9 12 11 13 9 — %30 33 10.0 %
Amortization of deferred policy acquisition costs5 8 12 2 14 180.0 %27 28 3.7 %
Compensation and benefits, interest expense and financing fees and other operating costs and expense54 56 54 47 46 (14.8)%168 147 (12.5)%
Segment benefits and other deductions146 153 153 137 146 — %452 436 (3.5)%
Operating earnings (loss), before income taxes127 133 129 109 155 22.0 %339 393 15.9 %
Income taxes(22)(24)(23)(19)(26)(18.2)%(58)(68)(17.2)%
Operating earnings (loss), before noncontrolling interest105 109 106 90 129 22.9 %281 325 15.7 %
Less: Operating (earnings) loss attributable to the noncontrolling interest— — — — — — %— — — %
Operating earnings (loss)$105 $109 $106 $90 $129 22.9 %$281 $325 15.7 %
Summary Metrics
Operating earnings (loss) - TTM: [A]
$383 $390 $415 $410 $434 N/M$383 $434 13.3 %
Average capital - TTM: [B]
$1,310 $1,333 $1,272 $1,204 $1,136 N/M$1,310 $1,136 (13.3)%
Non-GAAP Operating ROC - TTM (1): [A/B]
29.2 %29.3 %32.7 %34.1 %38.3 %29.2 %38.3 %
Average Account Value (TTM)$34,899 $36,269 $35,787 $36,045 $36,708 5.2 %$34,899 $36,708 5.2 %
Return on assets (TTM)1.32 %1.30 %1.41 %1.38 %1.43 %1.32 %1.43 %
Net flows$(23)$19 $128 $216 $(93)(312.5)%$248 $251 1.1 %
Gross premiums$770 $1,013 $925 $796 $706 (8.4)%$2,520 $2,427 (3.7)%
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.

3Q 2020 Financial Supplement
15

Group Retirement - Select Operating Metrics
For the Three Months Ended or As ofNine Months Ended or As of
(in millions USD, unless otherwise indicated)9/30/201912/31/20193/31/20206/30/20209/30/20209/30/20199/30/2020
Sales Metrics
Gross premiums:
First-year premiums$332 $469 $364 $226 $254 $1,018 $844 
Renewal premiums438 544 561 570 452 1,502 1,583 
Group Retirement premiums$770 $1,013 $925 $796 $706 $2,520 $2,427 
Gross premiums by market:
Tax-exempt$224 $257 $214 $162 $173 $645 $549 
Corporate93 199 135 55 72 337 262 
Other15 13 15 9 9 36 33 
Total First Year Premiums332 469 364 226 254 1,018 844 
Tax-exempt313 422 412 448 320 1,109 1,180 
Corporate83 78 89 81 87 252 257 
Other42 44 60 41 45 141 146 
Total renewal premiums438 544 561 570 452 1,502 1,583 
Group Retirement premiums by market$770 $1,013 $925 $796 $706 $2,520 $2,427 
Account Values
General Account:
Balance as of beginning of period$11,892 $12,018 $12,071 $12,257 $12,420 $11,619 $12,071 
Gross premiums340 312 447 259 355 965 1,061 
Surrenders, withdrawals and benefits(292)(346)(280)(217)(239)(822)(736)
Net flows48 (34)167 42 116 143 325 
Investment performance, interest credited and policy charges78 87 19 121 91 256 231 
Balance as of end of period$12,018 $12,071 $12,257 $12,420 $12,627 $12,018 $12,627 
Separate Accounts:
Balance as of beginning of period$24,165 $24,043 $25,809 $20,891 $24,670 $20,782 $25,809 
Gross premiums430 702 478 537 351 1,555 1,366 
Surrenders, withdrawals and benefits(501)(649)(517)(363)(560)(1,450)(1,440)
Net flows(71)53 (39)174 (209)105 (74)
Investment performance, interest credited and policy charges(51)1,713 (4,879)3,605 1,627 3,156 353 
Balance as of end of period$24,043 $25,809 $20,891 $24,670 $26,088 $24,043 $26,088 
Total:
Balance as of beginning of period$36,057 $36,061 $37,880 $33,148 $37,090 $32,401 $37,880 
Gross premiums770 1,014 925 796 706 2,520 2,427 
Surrenders, withdrawals and benefits(793)(995)(797)(580)(799)(2,272)(2,176)
Net flows(23)19 128 216 (93)248 251 
Investment performance, interest credited and policy charges27 1,800 (4,860)3,726 1,718 3,412 584 
Balance as of end of period$36,061 $37,880 $33,148 $37,090 $38,715 $36,061 $38,715 
3Q 2020 Financial Supplement
16

Investment Management and Research - Operating Earnings (Loss) and Summary Metrics
For the Three Months Ended or As ofNine Months Ended or As of
(in millions USD, unless otherwise indicated)9/30/201912/31/20193/31/20206/30/20209/30/2020Change9/30/20199/30/2020Change
Revenues
Net investment income (loss)$5 $13 $(33)$32 $13 160.0 %$44 $12 (72.7)%
Net derivative gains (losses)— (9)30 (31)(14)(100.0)%(29)(15)48.3 %
Investment management, service fees and other income867 975 910 843 900 3.8 %2,485 2,653 6.8 %
Segment Revenues872 979 907 844 899 3.1 %2,500 2,650 6.0 %
Benefits and other deductions
Commissions and distribution-related payments128 138 140 126 148 15.6 %350 414 18.3 %
Compensation, benefits and other operating costs and expenses542 576 558 523 531 (2.0)%1,598 1,612 0.9 %
Interest expense and financing fees2 1 2 2 1 (50.0)%9 5 (44.4)%
Total benefits and other deductions672 715 700 651 680 1.2 %1,957 2,031 3.8 %
Operating earnings (loss), before income taxes200 264 207 193 219 9.5 %543 619 14.0 %
Income taxes(38)(44)(37)(32)(40)(5.3)%(100)(109)(9.0)%
Operating earnings (loss), before noncontrolling interest162 220 170 161 179 10.5 %443 510 15.1 %
Less: Operating (earnings) loss attributable to the noncontrolling interest(69)(89)(75)(69)(75)(8.7)%(193)(219)(13.5)%
Operating earnings (loss)$93 $131 $95 $92 $104 11.8 %$250 $291 16.4 %
Summary Metrics
Adjusted operating margin (1)27.5 %32.3 %27.6 %27.9 %29.7 %25.7 %28.4 %
Net flows (in billions USD) (2)$8.1 $6.5 $(5.6)$(3.3)$3.1 $18.7 $(5.8)
Total AUM (in billions USD)$592.4 $622.9 $541.8 $600.0 $630.8 $592.4 $630.8 
Ownership Structure of AB
Holdings and its subsidiaries63.8 %63.3 %63.4 %63.7 %63.8 %63.8 %63.8 %
AB Holding35.4 %36.0 %35.9 %35.5 %35.5 %35.4 %35.5 %
Unaffiliated holders0.8 %0.7 %0.7 %0.8 %0.7 %0.8 %0.7 %
Total100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
EQH economic interest 65.3 %64.8 %64.9 %65.2 %65.3 %65.3 %65.3 %
EQH average economic interest65.3 %65.2 %64.8 %65.2 %65.2 %65.2 %65.1 %
Units of limited partnership outstanding (in millions)268.2 270.4 270.0 268.6 268.4 268.2 268.4 
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 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.
(2) Net flows reflect one-time AXA-related active fixed income outflows of $11.1 billion for the nine months ended September 30, 2020. Discrete 2020 quarterly outflows were as follows: $1.1 billion, $7.9 billion, and $2.2 billion for the first, second and third quarter respectively.

3Q 2020 Financial Supplement
17

Investment Management and Research - Select Operating Metrics
For the Three Months Ended or As of
(in billions USD, unless otherwise indicated)9/30/201912/31/20193/31/20206/30/20209/30/2020
AUM Roll-forward
Balance as of beginning of period$580.8 $592.4 $622.9 $541.8 $600.0 
Sales/new accounts26.3 27.0 31.6 31.8 29.3 
Redemptions/terminations(18.6)(15.6)(32.7)(31.4)(23.2)
Cash flow/unreinvested dividends0.4 (4.9)(4.5)(3.7)(3.0)
Net long-term (outflows) inflows8.1 6.5 (5.6)(3.3)3.1 
Adjustments— — 0.2 — — 
Market appreciation (depreciation)3.5 24.0 (75.7)61.5 27.7 
Net change11.6 30.5 (81.1)58.2 30.8 
Balance as of end of period$592.4 $622.9 $541.8 $600.0 $630.8 
Ending Assets by distribution channel
Institutions$272.9 $282.7 $256.7 $276.2 $289.5 
Retail222.5 239.2 198.6 229.5 242.9 
Private Wealth Management97.0 101.0 86.5 94.3 98.4 
Total$592.4 $622.9 $541.8 $600.0 $630.8 
Ending Assets by investment service
Equity
Actively Managed$159.9 $177.2 $141.5 $173.1 $188.8 
Passively Managed (1)56.8 60.1 47.2 54.3 57.5 
Total Equity$216.7 $237.3 $188.7 $227.4 $246.3 
Fixed Income
Actively Managed$298.7 $305.4 $282.0 $295.0 $302.0 
Passively Managed (1)9.4 9.3 10.3 9.9 9.0 
Total Fixed Income308.1 314.7 292.3 304.9 311.0 
Total Other (2)67.6 70.9 60.8 67.7 73.5 
Total$592.4 $622.9 $541.8 $600.0 $630.8 
Notes:
(1) Includes index and enhanced index services.
(2) Includes certain multi-asset solutions and services and certain alternative investments.

3Q 2020 Financial Supplement
18

Investment Management and Research - Net Flows
For the Three Months EndedNine Months Ended or As of
(in billions USD, unless otherwise indicated)9/30/201912/31/20193/31/20206/30/20209/30/20209/30/20199/30/2020
Net Flows by Distribution Channel
Institutions
US (3)$6.6 $(1.1)$0.9 $(4.8)$(0.6)$4.6 $(4.6)
Global and Non-US (3)(5.1)2.5 (0.5)(1.6)2.7 (3.6)0.7 
Total Institutions$1.5 $1.4 $0.4 $(6.4)$2.1 $1.0 $(3.9)
Retail
US $1.0 $1.7 $(0.9)$1.7 $1.2 $3.3 $2.0 
Global and Non-US 6.4 3.5 (4.5)2.1 (0.5)15.3 (2.9)
Total Retail$7.4 $5.2 $(5.4)$3.8 $0.7 $18.6 $(0.9)
Private Wealth
US$(0.6)$0.2 $(0.4)$(0.2)$0.5 $(1.0)$(0.1)
Global and Non-US(0.2)(0.3)(0.2)(0.5)(0.2)0.1 (0.9)
Total Private Wealth$(0.8)$(0.1)$(0.6)$(0.7)$0.3 $(0.9)$(1.0)
Total Net Flows by Distribution Channel$8.1 $6.5 $(5.6)$(3.3)$3.1 $18.7 $(5.8)
Net Flows by Investment Service
Equity Active
US $0.6 $1.1 $(0.4)$2.2 $1.2 $1.1 $3.0 
Global and Non-US(2.0)2.2 1.8 0.6 1.0 (0.4)3.4 
Total Equity Active $(1.4)$3.3 $1.4 $2.8 $2.2 $0.7 $6.4 
Equity Passive (1)
US (3)$(0.9)$(1.4)$0.1 $(1.6)$(1.8)$(2.2)$(3.3)
Global and Non-US(0.2)(0.2)(1.4)0.1 0.8 (0.3)(0.5)
Total Equity Passive (1)$(1.1)$(1.6)$(1.3)$(1.5)$(1.0)$(2.5)$(3.8)
Fixed Income - Taxable
US $6.6 $(0.1)$0.2 $(3.9)$1.1 $5.3 $(2.6)
Global and Non-US 2.8 3.3 (6.6)(1.2)(1.3)10.1 (9.1)
Total Fixed Income - Taxable $9.4 $3.2 $(6.4)$(5.1)$(0.2)$15.4 $(11.7)
Fixed Income - Tax-Exempt
US$1.0 $1.0 $— $(0.3)$0.8 $2.0 $0.5 
Global and Non-US— — — — — — — 
Total Fixed Income - Tax-Exempt$1.0 $1.0 $— $(0.3)$0.8 $2.0 $0.5 
Fixed Income - Passive (1)
US $(0.1)$(0.1)$(0.2)$(0.1)$(0.3)$(0.2)$(0.6)
Global and Non-US (0.1)(0.1)0.9 (0.5)(0.8)(0.5)(0.4)
Total Fixed Income - Passive (1)$(0.2)$(0.2)$0.7 $(0.6)$(1.1)$(0.7)$(1.0)
Other (2)
US (3)$(0.2)$0.3 $(0.1)$0.4 $0.1 $0.8 $0.3 
Global and Non-US (3)0.6 0.5 0.1 1.0 2.3 3.0 3.5 
Total Other (2)$0.4 $0.8 $— $1.4 $2.4 $3.8 $3.8 
Total Net Flows by Investment Service$8.1 $6.5 $(5.6)$(3.3)$3.1 $18.7 $(5.8)
Active vs. Passive Net Flows
Actively Managed
Equity $(1.4)$3.3 $1.4 $2.8 $2.2 $0.7 $6.4 
Fixed Income (4)10.4 4.2 (6.4)(5.4)0.6 17.4 (11.2)
Other (2) (3)0.3 0.6 (0.2)1.3 2.3 3.5 3.5 
Total (3)$9.3 $8.1 $(5.2)$(1.3)$5.1 $21.6 $(1.3)
Passively Managed (1)
Equity$(1.1)$(1.6)$(1.3)$(1.5)$(1.0)$(2.5)$(3.8)
Fixed Income(0.2)(0.2)0.7 (0.6)(1.1)(0.7)(1.0)
Other (2) (3)0.10.2 0.2 0.10.1 0.3 0.3 
Total (3)$(1.2)$(1.6)$(0.4)$(2.0)$(2.0)$(2.9)$(4.5)
Total Active vs Passive Net Flows$8.1 $6.5 $(5.6)$(3.3)$3.1 $18.7 $(5.8)
Notes:
(1) Includes index and enhanced index services.
(2) Includes certain multi-asset solutions and services and certain alternative investments.
(3) Line item does not cross foot due to rounding.
(4) Net flows reflect one-time AXA-related active fixed income outflows of $11.1 billion for the nine months ended September 30, 2020. Discrete 2020 quarterly outflows were as follows: $1.1 billion, $7.9 billion, and $2.2 billion for the first, second and third quarter respectively.
3Q 2020 Financial Supplement
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Protection Solutions - Operating Earnings (Loss) and Summary Metrics
For the Three Months Ended or As ofNine Months Ended or As of
(in millions USD, unless otherwise indicated)9/30/201912/31/20193/31/20206/30/20209/30/2020Change9/30/20199/30/2020Change
Revenues
Policy charges, fee income and premiums$555 $526 $562 $468 $450 (18.9)%$1,622 $1,480 (8.8)%
Net investment income (loss)242 253 244 204 240 (0.8)%714 688 (3.6)%
Net derivative gains (losses)(1)— 2 5 3 400.0 %10 10 — %
Investment management, service fees and other income59 63 57 51 58 (1.7)%178 166 (6.7)%
Segment revenues855 842 865 728 751 (12.2)%2,524 2,344 (7.1)%
Benefits and other deductions
Policyholders’ benefits359 378 500 460 455 26.7 %1,277 1,415 10.8 %
Interest credited to policyholders’ account balances131 124 127 137 130 (0.8)%396 394 (0.5)%
Commissions and distribution-related payments41 44 40 35 40 (2.4)%122 115 (5.7)%
Amortization of deferred policy acquisition costs120 46 50 29 (16)(113.3)%229 63 (72.5)%
Compensation and benefits, interest expense and financing fees and other operating costs and expense84 93 88 81 82 (2.4)%254 251 (1.2)%
Segment benefits and other deductions735 685 805 742 691 (6.0)%2,278 2,238 (1.8)%
Operating earnings (loss), before income taxes120 157 60 (14)60 (50.0)%246 106 (56.9)%
Income taxes(20)(28)(11)2 (9)55.0 %(39)(18)53.8 %
Operating earnings (loss), before noncontrolling interest100 129 49 (12)51 (49.0)%207 88 (57.5)%
Less: Operating (earnings) loss attributable to the noncontrolling interest— — — — — — %— — — %
Operating earnings (loss)$100 $129 $49 $(12)$51 (49.0)%$207 $88 (57.5)%
Summary Metrics
Operating earnings (loss) - TTM: [A]
$254 $336 $378 $266 $217 N/M$254 $217 N/M
Average capital - TTM: [B]
$2,948 $2,998 $2,801 $3,142 $2,922 N/M$2,948 $2,922 N/M
Non-GAAP Operating ROC - TTM (1): [A/B]
8.6 %11.2 %13.5 %8.5 %7.4 %8.6 %7.4 %
Benefit ratio57.3 %59.6 %72.5 %82.0 %77.9 %66.3 %77.2 %
Gross written premiums$777 $790 $778 $693 $700 (9.9)%$2,309 $2,171 (6.0)%
Annualized premiums$61 $70 $56 $57 $49 (19.9)%$188 $162 (13.9)%
Total in-force face amount (in billions USD)$442.3 $441.5 $435.1 $411.0 $408.3 (7.7)%$442.3 $408.3 (7.7)%
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.
3Q 2020 Financial Supplement
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Protection Solutions - Select Operating Metrics
For the Three Months Ended or As ofNine Months Ended or As of
(in millions USD, unless otherwise indicated)9/30/201912/31/20193/31/20206/30/20209/30/20209/30/20199/30/2020
Sales Metrics
First Year Premiums by Product Line:
Universal Life$1 $1 $— $— $— $1 $— 
Indexed Universal Life51 56 49 41 28 147 118 
Variable Universal Life42 49 35 29 31 132 95 
Term5 5 4 5 5 15 14 
Employee Benefits13 11 11 14 12 41 37 
Other (1)1 — — — — 1 — 
Total$113 $122 $99 $89 $76 $337 $264 
Renewals by Product Line:
Universal Life$239 $212 $216 $201 $223 $682 $640 
Indexed Universal Life60 59 72 67 63 189 202 
Variable Universal Life221 237 243 225 226 684 694 
Term125 135 120 83 81 363 284 
Employee Benefits14 18 23 24 26 38 73 
Other (1)5 7 5 4 5 16 14 
Total664 668 679 604 624 1,972 1,907 
Total Gross Premiums$777 $790 $778 $693 $700 $2,309 $2,171 
In-force Metrics
In-force Face Amount by Product (2) (in billions):
Universal Life (3)$53.8 $53.3 $52.7 $49.9 $49.5 $53.8 $49.5 
Indexed Universal Life24.9 25.8 26.4 27.0 27.5 24.9 27.5 
Variable Universal Life (4)126.8 127.5 126.0 126.4 126.7 126.8 126.7 
Term235.4 233.5 228.7 206.3 203.3 235.4 203.3 
Whole Life1.4 1.4 1.3 1.4 1.3 1.4 1.3 
Total$442.3 $441.5 $435.1 $411.0 $408.3 $442.3 $408.3 
In-force Policy Count by Product (2) (in thousands):
Universal Life (3)169 166 164 149 147 169 147 
Indexed Universal Life57 59 60 62 63 57 63 
Variable Universal Life (4)300 299 296 294 292 300 292 
Term326 323 319 267 268 326 268 
Whole Life18 18 18 17 17 18 17 
Total870 865 857 789 787 870 787 
Protection Solutions Reserves
General Account$17,838 $17,300 $17,275 $17,930 $18,691 $17,838 $18,691 
Separate Accounts12,804 13,616 11,259 12,928 13,190 12,804 13,190 
Total$30,642 $30,916 $28,534 $30,858 $31,881 $30,642 $31,881 
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.
3Q 2020 Financial Supplement
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Investments

3Q 2020 Financial Supplement
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Consolidated Investment Portfolio Composition
Balances as of
(in millions USD, unless otherwise indicated)December 31, 2019September 30, 2020
Amount (1)% of TotalAmount (1)% of Total
Composition of investment portfolio
Fixed maturities, available-for-sale, at fair value$66,343 67.9 %$79,379 69.3 %
Mortgage loans on real estate12,107 12.4 %12,802 11.2 %
Policy loans3,735 3.8 %4,123 3.6 %
Other equity investments1,344 1.4 %1,428 1.2 %
Other invested assets2,780 2.8 %1,802 1.6 %
Subtotal investment assets86,309 88.3 %99,534 87.0 %
Trading securities7,031 7.2 %6,244 5.5 %
Total investments93,340 95.5 %105,778 92.4 %
Cash and cash equivalents4,405 4.5 %8,684 7.6 %
Total$97,745 100.0 %$114,462 100.0 %
General Account Fixed maturities by industry (Based on amortized cost)
Corporate securities:
Finance$12,015 19.2 %$14,221 20.3 %
Manufacturing12,643 20.2 %13,629 19.4 %
Utilities4,999 8.0 %6,075 8.7 %
Services6,730 10.7 %7,398 10.5 %
Energy3,772 6.0 %4,098 5.8 %
Retail and wholesale3,515 5.6 %3,377 4.8 %
Transportation1,793 2.9 %2,272 3.2 %
Other198 0.3 %126 0.2 %
Total corporate securities45,665 72.8 %51,196 73.0 %
U.S. government and agency14,395 23.0 %13,145 18.7 %
Residential mortgage-backed (2)178 0.3 %146 0.2 %
Preferred stock501 0.8 %415 0.6 %
State & municipal638 1.0 %762 1.1 %
Foreign governments462 0.7 %829 1.2 %
Commercial mortgage-backed— — %1,067 1.5 %
Asset-backed securities848 1.4 %2,588 3.7 %
Total$62,687 100.0 %$70,148 100.0 %
General Account Fixed maturities credit quality (3) (Based on amortized cost)
Aaa, Aa, A (NAIC Designation 1)$42,770 68.2 %$45,448 64.8 %
Baa (NAIC Designation 2)18,605 29.7 %22,752 32.4 %
Investment grade61,375 97.9 %68,200 97.2 %
Below investment grade (NAIC Designation 3,4,5 and 6)1,312 2.1 %1,948 2.8 %
Total$62,687 100.0 %$70,148 100.0 %
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.
3Q 2020 Financial Supplement
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Consolidated Results of General Account Investment Portfolio
For the Nine Months Ended or As ofYears Ended or As of
(in millions USD, unless otherwise indicated)September 30, 2019September 30, 2020December 31, 2019
YieldAmount (1)YieldAmount (1)YieldAmount (1)
Fixed Maturities:
Income (loss)3.78 %$1,486 3.49 %$1,725 3.68 %$2,019 
Ending assets61,684 70,135 62,687 
Mortgages:
Income (loss)4.37 %397 4.15 %384 4.47 %541 
Ending assets12,022 12,802 12,107 
Other Equity Investments:
Income (loss)6.90 %73 0.21 %2 6.33 %86 
Ending assets1,488 1,588 1,507 
Policy Loans:
Income5.57 %157 5.38 %153 5.59 %210 
Ending assets3,750 4,123 3,735 
Cash and Short-term Investments:
Income0.04 %1 0.05 %2 (0.15)%(4)
Ending assets2,071 3,931 1,856 
Repurchase and Funding Agreements:
Interest expense and other(76)(61)(110)
Ending (liabilities)(6,510)(6,848)(6,909)
Total invested Assets:
Income3.98 %2,038 3.62 %2,205 3.92 %2,742 
Ending assets74,505 85,731 74,983 
Short Duration Fixed Maturities:
Income (loss)3.09 %251 3.33 %140 3.15 %312 
Ending assets8,030 5,448 6,173 
Total Net Investment Income:
Investment income3.86 %2,289 3.60 %2,345 3.83 %3,054 
Less: investment fees(0.08)%(48)(0.12)%(75)(0.08)%(66)
Investment income, net3.78 %$2,241 3.49 %$2,270 3.75 %$2,988 
General Account Ending Net Assets$82,535 $91,179 $81,156 
Operating Earnings adjustments:
Repurchase and Funding Agreements interest expense76 61 110 
AB and other non-General Account investment income96 191 204 
Operating Net investment income (loss)$2,413 $2,522 $3,302 
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.
3Q 2020 Financial Supplement
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Additional Information
3Q 2020 Financial Supplement
25


Deferred Policy Acquisition Costs Rollforward
For the Three Months Ended or As ofNine Months Ended or As of
(in millions USD, unless otherwise indicated)9/30/201912/31/20193/31/20206/30/20209/30/20209/30/20199/30/2020
TOTAL
Beginning balance (1)$5,956 $5,636 $5,840 $4,697 $4,090 $6,705 $5,840 
Capitalization of commissions, sales and issue expenses182 210 185 155 148 544 488 
Amortization(128)(107)(1,302)(162)(90)(490)(1,554)
Change in unrealized investment gains and losses(374)129 (27)(600)23 (1,123)(604)
Reclassified to Assets held-for-sale— (31)1 — — — 1 
Ending balance$5,636 $5,837 $4,697 $4,090 $4,171 $5,636 $4,171 
Individual Retirement
Beginning balance$3,099 $3,191 $3,285 $3,401 $3,134 $3,180 $3,285 
Capitalization of commissions, sales and issue expenses110 123 112 93 90 326 295 
Amortization(3)(43)(99)(90)(91)(240)(280)
Change in unrealized investment gains and losses(15)14 103 (270)(5)(75)(172)
Reclassified to Assets held-for-sale— — — — — — — 
Ending balance$3,191 $3,285 $3,401 $3,134 $3,128 $3,191 $3,128 
Group Retirement
Beginning balance$632 $637 $659 $626 $596 $656 $659 
Capitalization of commissions, sales and issue expenses23 30 26 19 21 71 66 
Amortization(5)(8)(60)(5)(15)(27)(80)
Change in unrealized investment gains and losses(13)— 1 (44)(1)(63)(44)
Reclassified to Assets held-for-sale— — — — — — — 
Ending balance$637 $659 $626 $596 $601 $637 $601 
Protection Solutions
Beginning balance$2,185 $1,792 $1,880 $610 $344 $2,716 $1,880 
Capitalization of commissions, sales and issue expenses49 57 47 43 37 147 127 
Amortization(120)(46)(1,141)(71)15 (229)(1,197)
Change in unrealized investment gains and losses(322)108 (177)(238)30 (842)(385)
Reclassified to Assets held-for-sale— (31)1 — — — 1 
Ending balance$1,792 $1,880 $610 $344 $426 $1,792 $426 
Corporate and Other
Beginning balance (1)$40 $16 $16 $60 $16 $153 $16 
Capitalization of commissions, sales and issue expenses— — — — — — — 
Amortization— (10)(2)4 1 6 3 
Change in unrealized investment gains and losses(24)7 46 (48)(1)(143)(3)
Reclassified to Assets held-for-sale— — — — — — — 
Ending balance$16 $13 $60 $16 $16 $16 $16 
Some financial metrics have been revised for prior periods; for additional information, please refer to the 10-Q.
(1) March 31, 2020 DAC beginning balance is $3 million more than December 31, 2019 ending balance due to impact of CECL.
3Q 2020 Financial Supplement
26

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 Earnings per share, 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, 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 includes restructuring costs related to severance, lease write-offs related to non-recurring restructuring activities, separation costs and impacts related to COVID-19; 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.
3Q 2020 Financial Supplement
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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 Accumulated Other Comprehensive Income (“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 available-for-sale (“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 newly adopted NAIC RBC framework the company 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 by diluted common shares outstanding.
3Q 2020 Financial Supplement
28

Reconciliation of Non-GAAP Measures (1/3)
For the Three Months Ended or As ofNine Months Ended or As of
(in millions USD, unless otherwise indicated)9/30/201912/31/20193/31/20206/30/20209/30/20209/30/20199/30/2020
Net income (loss) attributable to Holdings
Net income (loss) attributable to Holdings$(374)$(946)$5,388 $(4,019)$(779)$(818)$590 
Adjustments related to:
Variable annuity product features (1)1,431 1,696 (6,869)5,722 1,620 3,167 473 
Investment gains (losses), net(199)103 (4)(169)(17)(176)(190)
Net actuarial gains (losses) related to pension and other postretirement benefit obligations24 27 27 28 31 72 86 
Other adjustments (2) (3)73 195 695 75 66 200 836 
Income tax (expense) benefit related to above adjustments (4)(278)(412)1,292 (1,188)(357)(685)(253)
Non-recurring tax items(4)(10)6 2 4 (56)12 
Non-GAAP Operating Earnings$673 $653 $535 $451 $568 $1,704 $1,554 
Net income (loss) attributable to Holdings$(0.76)$(1.99)$11.62 $(8.92)$(1.74)$(1.64)$1.30 
Less: Preferred stock dividends— — 0.02 0.02 0.03 — 0.08 
Net income (loss) available to Holdings' common shareholders(0.76)(1.99)11.60 (8.94)(1.77)(1.64)1.22 
Adjustments related to:
Variable annuity product features (1)2.92 3.57 (14.82)12.70 3.62 6.34 1.04 
Investment gains (losses), net(0.41)0.22 (0.01)(0.38)(0.04)(0.35)(0.42)
Net actuarial gains (losses) related to pension and other postretirement benefit obligations0.05 0.06 0.06 0.06 0.07 0.14 0.19 
Other adjustments (2) (3)0.15 0.40 1.50 0.17 0.15 0.40 1.85 
Income tax (expense) benefit related to above adjustments (4)(0.57)(0.87)2.79 (2.64)(0.80)(1.37)(0.56)
Non-recurring tax items(0.01)(0.02)0.01 — 0.01 (0.11)0.03 
Non-GAAP Operating Earnings (loss) available to Holdings' common shareholders$1.37 $1.37 $1.13 $0.98 $1.24 $3.41 $3.35 
Book Value per common share
Book Value per common share$30.53 $27.35 $42.63 $37.21 $36.05 $30.53 $36.05 
Less: Per share impact of AOCI3.16 1.82 5.08 8.74 9.42 3.16 9.42 
Book value per common share (ex. AOCI)$27.37 $25.53 $37.55 $28.47 $26.63 $27.37 $26.63 
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 a first quarter 2020 assumption update of $1.5 billion and other COVID-19 related impacts of $35 million for the nine months ended September 30, 2020. The impact per common share is $3.23 and other COVID-19 related impacts of $0.08 for the nine months ended September 30, 2020.
(2) Includes separation costs of $37 million, $39 million, $108 million and $121 million for the three and nine months ended September 30, 2020 and 2019, respectively. The impact per common share is $0.24 and $0.24 for the nine months ended September 30, 2020 and 2019.
(3) Includes COVID-19 impact on Other adjustments due to a first quarter 2020 assumption update of $1.0 billion and other COVID-19 related impacts of $86 million for the nine months ended September 30, 2020. The impact per common share is $2.31 and $0.19 for the nine months ended September 30, 2020.
(4) Includes income taxes of $(554) million for the above related COVID-19 items for the nine months ended September 30, 2020. The impact per common share is $(1.22) for the nine months ended September 30, 2020.

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Reconciliation of Non-GAAP Measures (2/3)
As of and for the Twelve Months Ended
(in millions USD, unless otherwise indicated)9/30/201912/31/20193/31/20206/30/20209/30/2020
Net Income to Non-GAAP Operating Earnings
Net income (loss) attributable to Holdings$1,134 $(1,764)$4,429 $49 $(356)
Adjustments related to:
Variable annuity product features1,268 4,863 (3,545)1,980 2,169 
Investment (gains) losses(46)(73)(88)(269)(87)
Net actuarial (gains) losses related to pension and other postretirement benefit obligations105 99 102 106 113 
Other adjustments275 395 1,051 1,038 1,031 
Income tax (expense) benefits related to above adjustments(338)(1,097)531 (586)(665)
Non-recurring tax items(174)(66)(66)(6)2 
Non-GAAP Operating Earnings$2,224 $2,357 $2,414 $2,312 $2,207 
Return on Equity and Non-GAAP Operating Return on Equity - Trailing twelve months
Net income (loss) attributable to Holdings1,134 (1,764)4,429 49 (356)
Less: Preferred stock— — (13)(23)(34)
Net income (loss) available to Holdings' common shareholders$1,134 $(1,764)$4,416 $26 $(390)
Average equity attributable to Holdings' common shareholders (ex. AOCI)$14,016 $13,172 $14,008 $13,736 $13,348 
Return on Equity (ex. AOCI)8.1 %(13.4)%31.5 %0.2 %(2.9)%
Non-GAAP Operating Earnings$2,224 $2,357 $2,414 $2,312 $2,207 
Less: Preferred stock— — (13)(23)(34)
Non-GAAP Operating Earnings available to Holdings' common shareholders$2,224 $2,357 $2,401 $2,289 $2,173 
Average equity attributable to Holdings' common shareholders (ex. AOCI)$14,016 $13,172 $14,008 $13,736 $13,348 
Non-GAAP Operating Return on Equity (ex. AOCI)15.9 %17.9 %17.1 %16.7 %16.3 %
Some financial metrics have been revised for prior periods; for additional information, please refer to the 10-Q.
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Reconciliation of Non-GAAP Measures (3/3)
Balances as of
(in millions USD, unless otherwise indicated)12/31/20183/31/20196/30/20199/30/201912/31/20193/31/20206/30/20209/30/2020
Equity Reconciliation - Quarter-end Balances
Total equity attributable to Holdings' shareholders$13,802 $13,052 $14,672 $14,940 $13,456 $19,981 $17,498 $17,300 
Less: Preferred Stock— — — — 775 775 775 1,269 
Total equity attributable to Holdings' common shareholders13,802 13,052 14,672 14,940 12,681 19,206 16,723 16,031 
Less: Accumulated other comprehensive income (loss)(1,408)(523)789 1,546 844 2,289 3,928 4,188 
Total equity attributable to Holdings' common shareholders (ex. AOCI)$15,210 $13,575 $13,883 $13,394 $11,837 $16,917 $12,795 $11,843 
Pro forma (1)Balances as of
Balances as of
(in millions USD, unless otherwise indicated)12/31/20183/31/20196/30/20199/30/201912/31/20193/31/20206/30/20209/30/2020
Equity Reconciliation - Twelve Month Rolling Average (2)
Total equity attributable to Holdings' shareholders$13,238 $13,132 $— $— $— $— $— $— 
Pro forma adjustments (1)1 — — — — — — — 
Total equity attributable to Holdings' shareholders13,239 13,132 13,474 14,117 14,030 15,762 16,469 17,059 
Less: Preferred Stock— — — — 194 388 581 899 
Total equity attributable to Holdings' common shareholders13,239 13,132 13,474 14,117 13,836 15,375 15,888 16,160 
Less: Accumulated other comprehensive income (loss)(1,312)(1,203)(678)101 664 1,367 2,152 2,812 
Total equity attributable to Holdings' common shareholders (ex. AOCI)$14,550 $14,334 $14,152 $14,016 $13,172 $14,008 $13,736 $13,348 
Notes:
Some financial metrics have been revised for prior periods; for additional information, please refer to the 10-Q.
(1) Pro forma adjustments relate to certain Reorganization transactions that occurred in 2018, including: (a) the acquisition of AXA’s remaining interest in AB and minority interests in AXA Financial, Inc.; (b) the transfer of certain U.S. property & casualty business held by Equitable Holdings to AXA; (c) the issuance of $3.8 billion of external debt; and (d) the settlement of all outstanding financing balances with AXA.
(2) All Pro forma average equity amounts are calculated based on a four-quarter rolling average.
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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.
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.
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Analyst Coverage, Ratings & Contact Information
Analyst Coverage
FirmAnalystPhone Number
CitiSuneet Kamath1 (212) 816-3457
Credit SuisseAndrew Kligerman1 (212) 325-5069
Evercore ISIThomas Gallagher1 (212) 446-9439
J.P. MorganJimmy Bhullar1 (212) 622-6397
Keefe, Bruyette, & WoodsRyan Krueger1 (860) 722-5930
Morgan StanleyNigel Dally1 (212) 761-4132
RBC Capital MarketsMark Dwelle1 (804) 782-4008
SunTrust Robinson HumphreyMark Hughes1 (615) 748-4422
Wells Fargo SecuritiesElyse Greenspan1 (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. BestS&PMoody’s
Last review dateOct'20Oct'20Oct'20
Financial Strength Ratings:
Equitable Financial Life Insurance CompanyAA+A2
Equitable Financial Life Insurance Company of AmericaAA+A2
Credit Ratings:
Equitable Holdings, Inc.—BBB+Baa2
AllianceBernstein Holding, L.P. (1)—AA2
Investor and Media Contacts
Contact Investor RelationsContact Media Relations
Jessica BaehrDan WoodrowMatt Asensio
(212) 314-2476(212) 314-2036(212) 314-2010
Notes:
(1) Last review dates: S&P as of Sep '20, Moody’s as of June '20.

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