Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - Equitable Holdings, Inc. | ex991eqhearningsrelease063.htm |
| 8-K - 8-K - Equitable Holdings, Inc. | form8-keqh063018pressrelea.htm |
Financial Supplement Second Quarter 2018
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 (1/2) 8 Operating Earnings (Loss) by Segment and Corporate and Other (2/2) 9 Assets Under Management and Administration 10 Sales Metrics by Segment 11 Select Metrics from Business Segments Individual Retirement Statements of Income (Loss) and Summary Metrics 13 Select Operating Metrics 14 Group Retirement Statements of Income (Loss) and Summary Metrics 15 Select Operating Metrics 16 Investment Management and Research Statements of Income (Loss) and Summary Metrics 17 Select Operating Metrics 18 Net Flows 19 Protection Solutions Statements of Income (Loss) and Summary Metrics 20 Select Operating Metrics 21 Investments Consolidated Investment Portfolio Composition 23 Consolidated Results of General Account Investment Assets 24 Additional Information Deferred Acquisition Costs Rollforward 26 Use of Non-GAAP Financial Measures 27 Reconciliation of Non-GAAP Measures (1/3) 28 Reconciliation of Non-GAAP Measures (2/3) 29 Reconciliation of Non-GAAP Measures (3/3) 30 Glossary of Selected Financial and Product Terms 31 Analyst Coverage, Ratings & Contact Information 32 This financial supplement should be read in conjunction with AXA Equitable Holdings, Inc.’s (“EQH”) Quarterly Report on Form 10-Q for the six months ended June 30, 2018. AXA 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.axaequitableholdings.com. All information included in this financial supplement is unaudited. This Financial Supplement includes corrections to certain previously reported items that were not considered to be material. 2
Consolidated Financials and Key Metrics 3
Key Metrics Summary Three Months Ended or As of Year-to-Date or As of (in millions USD, unless otherwise indicated) 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 Change 6/30/2017 6/30/2018 Change Net income (loss) $ 698 $ 90 $ 682 $ 291 $ 255 (63.5)% $ 501 $ 546 9.0 % Net income (loss) attributable to the noncontrolling interest (90) (96) (144) (123) (97) (7.8)% (183) (220) (20.2)% Net income (loss) attributable to Holdings 608 (6) 538 168 158 (74.0)% 318 326 2.5 % Non-GAAP Operating Earnings(1) 399 475 971 464 506 26.8 % 703 970 38.0 % Total equity attributable to Holdings 12,385 12,425 13,485 13,565 13,376 8.0 % 12,385 13,376 8.0 % Less: Accumulated other comprehensive income (loss) (333) (330) (108) (946) (1,310) (293.4)% (333) (1,310) (293.4)% Total equity attributable to Holdings (ex. AOCI): 12,718 12,755 13,593 14,511 14,686 15.5 % 12,718 14,686 15.5 % Pro Forma Non-GAAP Operating ROE (1)(2): — — 12.3% 13.6% 14.6% — 14.6% Debt to capital: Debt to Capital 26.9% N/A 26.9% Debt to Capital (ex. AOCI) 25.1% N/A 25.1% Per share: Diluted earnings per share Net income (loss) attributable to Holdings 1.08 (0.01) 0.96 0.30 0.28 (74.1)% 0.57 0.58 1.8 % Non-GAAP Operating Earnings(1) 0.71 0.85 1.73 0.83 0.90 26.8 % 1.25 1.73 38.4 % Book value per share – Diluted(1) 22.08 22.15 24.04 24.18 23.84 8.0 % 22.08 23.84 Book value per share (ex. AOCI) – Diluted(1) 22.67 22.74 24.23 25.87 26.17 15.4 % 22.67 26.17 Weighted-average common shares outstanding: Basic 561.0 561.0 561.0 561.0 561.0 — % 561.0 561.0 Diluted 561.0 561.0 561.0 561.0 561.1 — % 561.0 561.1 Ending common shares outstanding: Basic 561.0 561.0 561.0 561.0 561.0 — % 561.0 561.0 Diluted 561.0 561.0 561.0 561.0 561.1 — % 561.0 561.1 Market Values: S&P 500 2,423 2,519 2,674 2,641 2,718 12.2 % 2,423 2,718 12.2 % US 10-Year Treasury 2.31% 2.33% 2.40% 2.74% 2.85% 2.31% 2.85% Notes: (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” section 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) Calculated using Pro Forma Non-GAAP Operating Earnings, excluding impact of non-recurring items which occurred in the fourth quarter of 2017. Please see “Additional Information” for adjustments of non-recurring items. 4
Consolidated Statements of Income (Loss) Three Months Ended Year-to-Date (in millions USD, unless otherwise indicated) 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 Change 6/30/2017 6/30/2018 Change Revenues Policy charges and fee income $ 935 $ 970 $ 872 $ 972 $ 987 5.6 % $ 1,891 $ 1,959 3.6 % Premiums 277 267 299 279 275 (0.7)% 558 554 (0.7)% Net derivative gains (losses) 729 (366) (13) (281) (73) (110.0)% 494 (354) (171.7)% Net investment income (loss) 803 794 705 591 596 (25.8)% 1,583 1,187 (25.0)% Total investment gains (losses), net 4 (12) (159) 102 (22) (650.0)% (20) 80 500.0 % Investment management and service fees 998 1,018 1,123 1,055 1,075 7.7 % 1,952 2,130 9.1 % Other income 136 102 89 117 124 (8.8)% 254 241 (5.1)% Total revenues 3,882 2,773 2,916 2,835 2,962 (23.7)% 6,712 5,797 (13.6)% Benefits and other deductions Policyholders’ benefits 1,741 1,090 430 608 920 (47.2)% 2,834 1,528 (46.1)% Interest credited to policyholders’ account balances 242 255 252 271 268 10.7 % 488 539 10.5 % Compensation and benefits 546 524 528 620 558 2.2 % 1,085 1,178 8.6 % Commissions and distribution related payments 400 388 421 411 418 4.5 % 795 829 4.3 % Interest expense 38 42 45 46 60 57.9 % 73 106 45.2 % Amortization of deferred policy acquisition costs, net (113) 12 (83) 15 (1) 99.1 % (168) 14 108.3 % Other operating costs and expenses 414 450 468 494 425 2.7 % 1,158 919 (20.6)% Total benefits and other deductions 3,268 2,761 2,061 2,465 2,648 (19.0)% 6,265 5,113 (18.4)% Income (loss) from operations, before income taxes 614 12 855 370 314 (48.9)% 447 684 53.0 % Income tax (expense) benefit 84 78 (173) (79) (59) (170.2)% 54 (138) (355.6)% Net income (loss) 698 90 682 291 255 (63.5)% 501 546 9.0 % Less: net (income) loss attributable to the noncontrolling interest (90) (96) (144) (123) (97) (7.8)% (183) (220) (20.2)% Net income (loss) attributable to Holdings 608 (6) 538 168 158 (74.0)% 318 326 2.5 % Adjustments related to: Variable annuity product features (1) — (40) 656 377 212 280 251 492 Investment gains (losses) (4) 12 159 (102) 22 20 (80) Goodwill impairment — — — — — 369 — Net actuarial gains (losses) related to pension and other 33 34 34 131 27 67 158 postretirement benefit obligations Other adjustments 26 46 59 90 89 5 179 Income tax (expense) benefit related to above (7) (260) (212) (63) (81) (242) (144) adjustments Non-recurring tax items (217) (7) 16 28 11 (85) 39 Non-GAAP Operating earnings (loss)(2) 399 475 971 464 506 703 970 Notes: (1) This reconciling item was previously referred to as “GMxB product features”, but is now referred to more broadly as “Variable annuity product features” to reflect the exclusion of embedded derivatives on our SCS product from non-GAAP Operating Earnings. (2) 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” section 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. 5
Consolidated Balance Sheets Balances as of (in millions USD, unless otherwise indicated) 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 Assets Total investments $ 76,274 $ 78,265 $ 81,782 $ 78,883 $ 76,828 Cash and cash equivalents 6,187 6,446 4,814 6,091 6,833 Cash and securities segregated, at fair value 1,078 789 825 1,025 1,289 Broker-dealer related receivables 2,211 2,206 2,158 2,300 2,276 Deferred policy acquisition costs 6,101 6,114 5,969 6,288 6,346 Goodwill and other intangible assets, net 4,852 4,840 4,824 4,813 4,802 Amounts due from reinsurers 5,141 5,035 5,023 4,953 4,963 Loans to affiliates 1,235 1,234 1,230 885 — GMIB reinsurance contract asset, at fair value 2,093 2,011 1,894 1,734 1,636 Current and deferred income taxes 298 266 67 225 47 Other assets 2,620 2,628 2,510 3,239 3,025 Separate Account assets 118,599 121,106 124,552 121,858 122,967 Total assets 226,689 230,940 235,648 232,294 231,012 Liabilities Policyholders’ account balances 44,760 46,006 47,171 47,666 48,849 Future policy benefits and other policyholders’ liabilities 31,029 31,080 30,299 29,586 29,351 Broker-dealer related payables 579 550 783 466 603 Securities sold under agreements to repurchase 3,247 3,284 1,887 1,904 1,850 Customers related payables 2,442 2,384 2,229 2,549 2,713 Amounts due to reinsurers 1,470 1,439 1,436 1,396 1,398 Short-term and long-term debt 1,684 1,933 2,408 2,373 4,922 Loans from affiliates 2,982 2,994 3,622 2,530 — Other liabilities 4,098 4,289 4,053 4,342 3,350 Separate Account liabilities 118,599 121,106 124,552 121,858 122,967 Total liabilities 210,890 215,065 218,440 214,670 216,003 Redeemable noncontrolling interest 361 440 626 1,024 146 Equity Common stock 6 6 6 6 6 Capital in excess of par value 955 998 1,298 2,050 2,067 Retained earnings 11,757 11,751 12,289 12,455 12,613 Accumulated other comprehensive income (loss) (333) (330) (108) (946) (1,310) Total equity attributable to Holdings 12,385 12,425 13,485 13,565 13,376 Noncontrolling interest 3,053 3,010 3,097 3,035 1,487 Total equity 15,438 15,435 16,582 16,600 14,863 Total liabilities, redeemable noncontrolling interest and equity 226,689 230,940 235,648 232,294 231,012 6
Consolidated Capital Structure Balances as of (in millions USD, unless otherwise indicated) 6/30/2018 Short-term debt AB commercial paper $ 515 AB revolving credit facility — Total short-term debt 515 Total long-term debt 4,407 Total short-term and long-term debt: [A] 4,922 Equity Common stock 6 Capital in excess of par value 2,067 Retained earnings 12,613 Accumulated other comprehensive income (loss) (1,310) Total equity attributable to Holdings 13,376 Noncontrolling interest 1,487 Total equity 14,863 Total equity attributable to Holdings (ex. AOCI): [B] 14,686 Capital Total capitalization 18,298 Total capitalization (ex. AOCI): [A+B] 19,608 Debt to capital Debt to capital 26.9% Debt to capital (ex. AOCI) 25.1% Common shares outstanding Beginning balance 561.0 Repurchases 0.0 Issuances 0.0 Ending basic common shares outstanding 561.0 Total potentially dilutive shares 0.1 Total diluted shares 561.1 7
Operating Earnings (Loss) by Segment and Corporate and Other (1/2) Three Months Ended June 30, 2018 Individual Inv Mgmt and Protection Corporate and (in millions USD, unless otherwise indicated) Retirement Group Retirement Research Solutions Other Consolidated Revenues Policy charges, fee income and premiums $ 543 $ 69 $ — $ 547 $ 103 $ 1,262 Net investment income (loss) 258 124 4 194 129 709 Investment gains (losses), net including derivative gains (losses) 91 2 — 3 (5) 91 Investment Management, service fees and other income 190 50 838 56 66 1,200 Segment revenues 1,082 245 842 800 293 3,262 Benefits and other deductions Policyholders’ benefits 314 — — 420 181 915 Interest credited to policyholders’ account balances 54 73 — 120 21 268 Commissions and distribution related payments 152 26 106 75 59 418 Amortization of deferred policy acquisition costs, net (45) (15) — 47 12 (1) Compensation and benefits and other operating costs and expenses 124 66 513 107 79 889 Interest expense — — 2 — 58 60 Segment benefits and other deductions 599 150 621 769 410 2,549 Operating earnings (loss), before income taxes 483 95 221 31 (117) 713 Income Taxes (86) (17) (41) (7) 21 (130) Operating earnings (loss), before noncontrolling interest 397 78 180 24 (96) 583 Less: Operating (earnings) loss attributable to the noncontrolling interest 2 — (83) — 4 (77) Operating earnings (loss) 399 78 97 24 (92) 506 Average capital(1) 7,188 1,270 2,574 Non-GAAP Operating ROC by segment (2)(3)(4) 22.4% 25.4% 5.0% Three Months Ended June 30, 2017 Individual Inv Mgmt and Protection Corporate and Retirement Group Retirement Research Solutions Other Consolidated Revenues Policy charges, fee income and premiums 544 61 — 512 96 1,213 Net investment income (loss) 221 111 4 173 165 674 Investment gains (losses), net including derivative gains (losses) 93 (3) (5) 1 (4) 82 Investment Management, service fees and other income 183 41 773 57 82 1,136 Segment revenues 1,041 210 772 743 339 3,105 Benefits and other deductions Policyholders’ benefits 360 — — 421 240 1,021 Interest credited to policyholders’ account balances 30 69 — 120 22 241 Commissions and distribution related payments 156 24 103 68 49 400 Amortization of deferred policy acquisition costs, net (89) (19) — (3) 2 (109) Compensation and benefits and other operating costs and expenses 146 69 510 118 53 896 Interest expense 7 — 2 — 32 41 Segment benefits and other deductions 610 143 615 724 398 2,490 Operating earnings (loss), before income taxes 431 67 157 19 (59) 615 Income Taxes (122) (18) (21) (3) 24 (140) Operating earnings (loss), before noncontrolling interest 309 49 136 16 (35) 475 Less: Operating (earnings) loss attributable to the noncontrolling interest (1) (1) (75) — 1 (76) Operating earnings (loss) 308 48 61 16 (34) 399 Notes: (1) For average capital by segment, capital components pertaining 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 necessary to be considered a going concern. (2) Protection Solutions Non-GAAP Operating ROC excludes impact of certain one-time items. Total post-tax adjustment to operating earnings was determined by multiplying approximately $588 million total pre-tax adjustments in policyholders’ benefits, DAC amortization (net) and policy charges, fee income and premiums by a tax rate of 32%. (3) Non-GAAP Operating ROC is calculated by dividing operating earnings (loss) on a segment basis by average capital on a segment basis, excluding AOCI and NCI. 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 necessary to be considered a going concern. (4) 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” section 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. 8
Operating Earnings (Loss) by Segment and Corporate and Other (2/2) Year to Date June 30, 2018 Individual Inv Mgmt and Protection Corporate and (in millions USD, unless otherwise indicated) Retirement Group Retirement Research Solutions Other Consolidated Revenues Policy charges, fee income and premiums $ 1,083 $ 133 $ — $ 1,082 $ 215 $ 2,513 Net investment income (loss) 486 255 7 414 242 1,404 Investment gains (losses), net including derivative gains (losses) (136) 1 2 2 1 (130) Investment Management, service fees and other income 378 94 1,742 111 123 2,448 Segment revenues 1,811 483 1,751 1,609 581 6,235 Benefits and other deductions Policyholders’ benefits 319 — — 829 360 1,508 Interest credited to policyholders’ account balances 113 143 — 242 41 539 Commissions and distribution related payments 296 50 216 141 126 829 Amortization of deferred policy acquisition costs, net (92) (26) — 118 7 7 Compensation and benefits and other operating costs and expenses 245 128 1,075 221 158 1,827 Interest expense — — 4 — 102 106 Segment benefits and other deductions 881 295 1,295 1,551 794 4,816 Operating earnings (loss), before income taxes 930 188 456 58 (213) 1,419 Income Taxes (171) (34) (68) (11) 41 (243) Operating earnings (loss), before noncontrolling interest 759 154 388 47 (172) 1,176 Less: Operating (earnings) loss attributable to the noncontrolling interest — — (210) — 4 (206) Operating earnings (loss) 759 154 178 47 (168) 970 Year to Date June 30, 2017 Individual Inv Mgmt and Protection Corporate and Retirement Group Retirement Research Solutions Other Consolidated Revenues Policy charges, fee income and premiums 1,063 120 — 1,041 226 2,450 Net investment income (loss) 398 241 23 381 313 1,356 Investment gains (losses), net including derivative gains (losses) 233 (8) (15) 1 (2) 209 Investment Management, service fees and other income 366 84 1,507 109 140 2,206 Segment revenues 2,060 437 1,515 1,532 677 6,221 Benefits and other deductions Policyholders’ benefits 821 — — 833 460 2,114 Interest credited to policyholders’ account balances 77 140 — 236 34 487 Commissions and distribution related payments 314 47 199 136 99 795 Amortization of deferred policy acquisition costs, net (143) (30) — 26 (6) (153) Compensation and benefits and other operating costs and expenses 274 131 1,006 227 131 1,769 Interest expense 7 — 3 — 63 73 Segment benefits and other deductions 1,350 288 1,208 1,458 781 5,085 Operating earnings (loss), before income taxes 710 149 307 74 (104) 1,136 Income Taxes (198) (41) (56) (19) 41 (273) Operating earnings (loss), before noncontrolling interest 512 108 251 55 (63) 863 Less: Operating (earnings) loss attributable to the noncontrolling interest (2) (1) (158) — 1 (160) Operating earnings (loss) 510 107 93 55 (62) 703 9
Assets Under Management and Administration Balances as of (in millions USD, unless otherwise indicated) 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 Assets Under Management AB AUM Total AB $ 516,600 $ 534,939 $ 554,485 $ 549,468 $ 539,800 Exclusion for General Account and other Affiliated Accounts (54,845) (56,687) (59,669) (58,130) (57,757) Exclusion for Separate Accounts (32,088) (32,700) (33,748) (32,683) (32,919) AB third party 429,667 445,552 461,068 458,655 449,124 Total company AUM AB third party 429,667 445,552 461,068 458,655 449,124 General Account and other Affiliated Accounts 82,461 84,711 86,596 84,974 83,661 Separate Accounts 118,599 121,106 124,552 121,858 122,967 Total AUM 630,727 651,369 672,216 665,487 655,752 Total Assets Under Administration (AUA) (1) 40,490 42,328 44,372 44,750 45,890 AXA Advisor Headcount (actual figures) Total Number of AXA Advisors 4,550 4,562 4,668 4,584 4,576 $ 76,274 $ 78,265 $ 81,782 $ 78,883 $ 76,828 Notes: 6,187 6,446 4,814 6,091 6,833 (1) AUA includes AXA Advisors Advisory and Brokerage AUA; AXA Advisors broker-dealer business is included in Corporate and Other. 10
Sales Metrics by Segment Three Months Ended or As of Year-to-Date (in millions USD, unless otherwise indicated) 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 Change 6/30/2017 6/30/2018 Change Insurance Operations: Individual Retirement First year premiums and deposits $ 1,940 $ 1,610 $ 1,683 $ 1,619 $ 1,861 (4.1)% $ 3,802 $ 3,480 (8.5)% Renewal premium and deposits 95 65 102 87 78 (17.9)% 187 165 (11.8)% Total Gross Premiums 2,035 1,675 1,785 1,706 1,939 (4.7)% 3,989 3,645 (8.6)% Group Retirement First year premiums and deposits 354 305 390 343 352 (0.6)% 692 695 0.4 % Renewal premium and deposits 508 369 477 498 528 3.9 % 990 1,026 3.6 % Total Gross Premiums 862 674 867 841 880 2.1 % 1,682 1,721 2.3 % Protection Solutions First year premiums and deposits 101 105 120 102 125 23.8 % 205 227 10.7 % Renewal premium and deposits 649 631 648 652 642 (1.1)% 1,313 1,294 (1.4)% Total Gross Premiums 750 736 768 754 767 2.3 % 1,518 1,521 0.2 % Investment Management and Research (in billions USD): Gross Sales by distribution channel Institutional 4.0 3.3 3.5 14.8 3.9 (2.5)% 6.5 18.7 187.7 % Retail 13.5 13.9 12.9 14.9 11.6 (14.1)% 27.0 26.5 (1.9)% Private Wealth Management 2.9 2.8 2.9 4.4 3.5 20.7 % 5.9 8.0 35.6 % Firmwide Gross Sales 20.4 20.0 19.3 34.1 19.0 (6.9)% 39.4 53.2 35.0 % Gross sales by investment service Equity Active 5.2 5.8 6.0 10.9 8.6 65.4 % 10.1 19.5 93.1 % Equity Passive (1) 0.1 0.7 0.0 0.0 1.1 1,000.0 % 0.5 1.1 120.0 % Fixed Income - Taxable 10.6 10.4 8.9 8.5 5.2 (50.9)% 21.8 13.7 (37.2)% Fixed Income - Tax-Exempt 2.1 1.6 2.2 2.3 1.9 (9.5)% 4.1 4.3 4.9 % Fixed Income Passive (1) 0.0 0.1 0.0 0.0 0.0 0.0 0.0 Other (2) 2.4 1.4 2.2 12.4 2.2 (8.3)% 2.9 14.6 403.4 % Firmwide Gross Sales 20.4 20.0 19.3 34.1 19.0 (6.9)% 39.4 53.2 35.0 % Notes: (1) Includes index and enhanced index services. (2) Includes certain multi-asset solutions and services and certain alternative investments. 11
Select Metrics from Business Segments 12
Individual Retirement - Statements of Income (Loss) and Summary Metrics Three Months Ended Year-to-Date (in millions USD, unless otherwise indicated) 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 Change 6/30/2017 6/30/2018 Change Revenues Policy charges, fee income and premiums $ 544 $ 548 $ 545 $ 540 $ 543 (0.2)% $ 1,063 $ 1,083 1.9 % Net investment income (loss) 221 211 256 228 258 16.7 % 398 486 22.1 % Investment gains (losses), net including derivative gains (losses) 93 62 319 (227) 91 (2.2)% 233 (136) (158.4)% Investment Management, service fees and other income 183 183 190 188 190 3.8 % 366 378 3.3 % Segment revenues 1,041 1,004 1,310 729 1,082 3.9 % 2,060 1,811 (12.1)% — Benefits and other deductions — Policyholders’ benefits 360 184 558 5 314 (12.8)% 821 319 (61.1)% Interest credited to policyholders’ account balances 30 54 43 59 54 80.0 % 77 113 46.8 % Commissions and distribution related payments 156 144 151 144 152 (2.6)% 314 296 (5.7)% Amortization of deferred policy acquisition costs, net (89) (61) (98) (47) (45) 49.4 % (143) (92) 35.7 % Compensation and benefits, interest expense, and other operating costs and expenses 153 124 118 121 124 (19.0)% 281 245 (12.8)% Segment benefits and other deductions 610 445 772 282 599 (1.8)% 1,350 881 (34.7)% Operating earnings (loss), before income taxes 431 559 538 447 483 12.1 % 710 930 31.0 % Income taxes (122) (159) (118) (85) (86) 29.5 % (198) (171) 13.6 % Operating earnings (loss), before noncontrolling interest 309 400 420 362 397 28.5 % 512 759 48.2 % Less: Operating (earnings) loss attributable to the noncontrolling interest (1) (2) (3) (2) 2 300.0 % (2) — 100.0 % Operating earnings (loss) 308 398 417 360 399 29.5 % 510 759 48.8 % Summary Metrics Non-GAAP Operating ROC(1)(2) —% —% 19.1% 21.4% 22.4% —% 22.4% Average account value(3) 97,626 99,504 101,929 102,607 102,452 4.9 % 96,087 103,269 7.5 % Return on assets(4) 1.77% 1.92% 1.98% —% 1.96% Net flows 178 (101) (358) (462) (149) (183.7)% 391 (611) (256.3)% Current Product Offering 1,147 815 744 579 867 (24.4)% 2,295 1,446 (37.0)% Fixed Rate (969) (916) (1,102) (1,041) (1,016) (4.9)% (1,904) (2,057) (8.0)% First year premiums and deposits 1,940 1,610 1,683 1,619 1,861 (4.1)% 3,802 3,480 (8.5)% Notes: (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” section 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) Non-GAAP Operating ROC is calculated by dividing operating earnings (loss) on a segment basis by average capital on a segment basis, excluding AOCI and NCI. For average capital by segment, capital components pertaining 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 necessary to be considered a going concern. (3) Average account value calculated as the sum of total account value balance as of beginning of period and total account value balance as of end of period, divided by two. (4) Return on assets calculated using trailing twelve months operating earnings, before income taxes and average account value. 13
Individual Retirement - Select Operating Metrics Three Months Ended or As of Year-to-Date or As of (in millions USD, unless otherwise indicated) 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 6/30/2017 6/30/2018 Sales Metrics First Year Premiums by Product: SCS $ 1,076 $ 832 $ 799 $ 775 $ 999 $ 2,150 $ 1,774 Retirement Cornerstone 657 607 667 627 625 1,248 1,252 Investment Edge 107 96 127 132 138 195 270 Other 100 75 89 86 99 209 184 Total First Year Premiums 1,940 1,610 1,683 1,619 1,861 3,802 3,480 First Year Premiums by Guarantee: Non-GMxB 1,281 1,014 1,065 1,003 1,234 2,541 2,236 ROP death benefit only 76 71 51 78 80 153 159 Total non-GMxB & ROP death benefit only 1,357 1,085 1,116 1,081 1,314 2,694 2,395 Floating rate GMxB 550 514 559 525 537 1,038 1,062 Fixed rate GMxB 33 11 8 13 10 70 23 Total First Year Premiums 1,940 1,610 1,683 1,619 1,861 3,802 3,480 Account Values General account: Balance as of beginning of period 16,421 17,429 17,753 19,059 19,480 15,384 19,059 Gross premiums 1,142 931 958 793 1,138 2,243 1,931 Surrenders, withdrawals and benefits (354) (380) (477) (461) (452) (681) (913) Net flows 788 551 481 332 686 1,562 1,018 Investment performance, interest credited and policy charges 220 (227) 825 89 305 483 394 Balance as of end of period 17,429 — 17,753 — 19,059 — 19,480 — 20,471 17,429 20,471 Separate account: Balance as of beginning of period 80,258 81,141 82,682 84,364 82,310 78,220 84,364 Gross premiums 950 818 977 994 918 1,859 1,912 Surrenders, withdrawals and benefits (1,560) (1,470) (1,816) (1,788) (1,753) (3,030) (3,541) Net flows (610) (652) (839) (794) (835) (1,171) (1,629) Investment performance, interest credited and policy charges 1,493 2,193 2,521 (1,260) 1,168 4,092 (92) Balance as of end of period 81,141 — 82,682 — 84,364 — 82,310 — 82,643 81,141 82,643 Total: Balance as of beginning of period 96,679 98,570 100,435 103,423 101,790 93,604 103,423 Gross premiums 2,092 1,749 1,935 1,787 2,056 4,102 3,843 Surrenders, withdrawals and benefits (1,914) (1,850) (2,293) (2,249) (2,205) (3,711) (4,454) Net flows 178 (101) (358) (462) (149) 391 (611) Investment performance, interest credited and policy charges 1,713 1,966 3,346 (1,171) 1,473 4,575 302 Balance as of end of period 98,570 — 100,435 — 103,423 — 101,790 — 103,114 98,570 103,114 Net Amount at Risk (NAR): Total GMIB NAR 6,509 6,320 6,032 6,002 5,961 6,509 5,961 Total GMDB NAR 17,760 17,384 16,875 18,029 18,087 17,760 18,087 Total GMDB/IB Variable Annuity Reserves (Net of Reinsurance) 10,780 10,727 10,938 10,584 10,507 10,780 10,507 o/w GMIB Reserves 7,247 6,939 6,965 6,610 6,482 7,247 6,482 o/w GMDB Reserves 3,533 3,788 3,973 3,974 4,025 3,533 4,025 14
Group Retirement - Statements of Income (Loss) and Summary Metrics Three Months Ended Year-to-Date (in millions USD, unless otherwise indicated) 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 Change 6/30/2017 6/30/2018 Change Revenues Policy charges, fee income and premiums $ 61 $ 51 $ 77 $ 64 $ 69 13.1 % $ 120 $ 133 10.8 % Net investment income (loss) 111 150 137 131 1 124 11.7 % 241 255 5.8 % Investment gains (losses), net including derivative gains (losses) (3) 2 (2) (1) 2 166.7 % (8) 1 112.5 % Investment Management, service fees and other income 41 45 45 44 50 22.0 % 84 94 11.9 % Segment revenues 210 248 257 238 245 16.7 % 437 483 10.5 % — — Benefits and other deductions — — Interest credited to policyholders’ account balances 69 71 71 70 73 5.8 % 140 143 2.1 % Commissions and distribution related payments 24 20 26 24 26 8.3 % 47 50 6.4 % Amortization of deferred policy acquisition costs, net (19) (23) (10) (11) (15) 21.1 % (30) (26) 13.3 % Compensation and benefits, interest expense, and other operating costs and expenses 69 62 68 62 66 (4.3)% 131 128 (2.3)% Segment benefits and other deductions 143 130 155 145 150 4.9 % 288 295 2.4 % Operating earnings (loss), before income taxes 67 118 102 93 95 41.8 % 149 188 26.2 % Income taxes (18) (32) (14) (17) (17) 5.6 % (41) (34) 17.1 % Operating earnings (loss), before noncontrolling interest 49 86 88 76 78 59.2 % 108 154 42.6 % Less: Operating (earnings) loss attributable to the noncontrolling interest (1) — — — — 100.0 % (1) — 100.0 % Operating earnings (loss) 48 86 88 76 78 62.5 % 107 154 43.9 % Summary Metrics Non-GAAP Operating ROC(1)(2) — — 22.6% 23.6% 25.4% —% 25.4% Average account value(3) 31,576 32,420 33,381 33,912 34,284 8.6 % 31,061 34,278 10.4 % Return on assets(4) 1.11% 1.12% 1.19% —% 1.19% Net flows 196 (5) 21 101 150 (23.5)% 251 251 — % Gross premiums 862 674 867 841 880 2.1 % 1,682 1,721 2.3 % Notes: (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” section 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) Non-GAAP Operating ROC is calculated by dividing operating earnings (loss) on a segment basis by average capital on a segment basis, excluding AOCI and NCI. 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 necessary to be considered a going concern. (3) Average account value calculated as the sum of total account value balance as of beginning of period and total account value balance as of end of period, divided by two. (4) Return on assets calculated using trailing twelve months operating earnings, before income taxes and average account value. 15
Group Retirement - Select Operating Metrics Three Months Ended or As of Year-to-Date or As of (in millions USD, unless otherwise indicated) 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 6/30/2017 6/30/2018 Sales Metrics Gross premiums: First-year premiums $ 354 $ 305 $ 390 $ 343 $ 352 $ 692 $ 695 Renewal premiums 508 369 477 498 528 990 1,026 Group Retirement premiums 862 674 867 841 880 1,682 1,721 Gross premiums by market: Tax-exempt 204 192 260 207 212 419 419 Corporate 139 103 114 122 133 253 255 Other 11 10 16 14 7 20 21 Total First Year Premiums 354 305 390 343 352 692 695 Tax-exempt 380 256 356 357 399 720 756 Corporate 71 71 72 84 82 150 166 Other 57 42 49 57 47 120 104 Total renewal premiums 508 369 477 498 528 990 1,026 Group Retirement premiums by market 862 674 867 841 880 1,682 1,721 Account Values General account: Balance as of beginning of period 11,093 11,210 11,316 11,319 11,393 10,999 11,319 Gross premiums 266 271 256 259 283 555 542 Surrenders, withdrawals and benefits (219) (240) (323) (254) (248) (488) (502) Net flows 47 31 (67) 5 35 67 40 Investment performance, interest credited and policy charges 70 75 70 69 74 144 143 Balance as of end of period 11,210 11,316 11,319 11,393 11,502 11,210 11,502 Separate account: Balance as of beginning of period 20,075 20,773 21,540 22,587 22,525 19,139 22,587 Gross premiums 582 401 605 578 602 1,117 1,180 Surrenders, withdrawals and benefits (433) (437) (517) (482) (487) (933) (969) Net flows 149 (36) 88 96 115 184 211 Investment performance, interest credited and policy charges 549 803 959 (158) 507 1,450 349 Balance as of end of period 20,773 21,540 22,587 22,525 23,147 20,773 23,147 Total: Balance as of beginning of period 31,168 31,983 32,856 33,906 33,918 30,138 33,906 Gross premiums 848 672 861 837 885 1,672 1,722 Surrenders, withdrawals and benefits (652) (677) (840) (736) (735) (1,421) (1,471) Net flows 196 (5) 21 101 150 251 251 Investment performance, interest credited and policy charges 619 878 1,029 (89) 581 1,594 492 Balance as of end of period 31,983 32,856 33,906 33,918 34,649 31,983 34,649 16
Investment Management and Research - Statements of Income (Loss) and Summary Metrics Three Months Ended Year-to-Date (in millions USD, unless otherwise indicated) 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 Change 6/30/2017 6/30/2018 Change Revenues Net investment income (loss) $ 4 $ 9 $ 28 $ 3 $ 4 — % $ 23 $ 7 (69.6)% Investment gains (losses), net including derivative gains (losses) (5) (5) (4) 2 — 100.0 % (15) 2 113.3 % Investment Management, service fees and other income 773 788 885 904 838 8.4 % 1,507 1,742 15.6 % Segment Revenues 772 792 909 909 842 9.1 % 1,515 1,751 15.6 % Benefits and other deductions Commissions and distribution related payments 103 106 110 110 106 2.9 % 199 216 8.5 % Compensation and benefits, interest expense, and other operating costs and expenses 512 512 521 564 515 0.6 % 1,009 1,079 6.9 % Total benefits and other deductions 615 618 631 674 621 1.0 % 1,208 1,295 7.2 % Operating earnings (loss), before income taxes 157 174 278 235 221 40.8 % 307 456 48.5 % Income taxes (21) (29) (54) (27) (41) (95.2)% (56) (68) (21.4)% Operating earnings (loss), before noncontrolling interest 136 145 224 208 180 32.4 % 251 388 54.6 % Less: Operating (earnings) loss attributable to the noncontrolling interest (75) (100) (151) (127) (83) (10.7)% (158) (210) (32.9)% Operating earnings (loss) 61 45 73 81 97 59.0 % 93 178 91.4 % Summary Metrics Adjusted operating margin(1) 24.9% 25.0% 35.2% 30.1% 27.3% 24.5% 28.8% Net flows (in billions USD) 4.7 4.5 4.2 (2.4) (7.7) 4.5 (10.1) Total AUM in billions USD) 516.6 534.9 554.5 549.5 539.8 516.6 539.8 Ownership Structure of AB AXA and its subsidiaries (2) 64.0% 64.0% 63.3% 63.0% 63.3% 64% 63.3% AB Holding 34.8% 34.9% 35.5% 35.8% 35.9% 34.8% 35.9% Unaffiliated holders 1.2% 1.1% 1.2% 1.2% 0.8% 1.2% 0.8% Total 100.0% 100.0% 100.0% 100.0% 100.0% 100% 100.0% AXA and its subsidiaries total economic interest 64.6% 64.9% 64.7% 64.4% 64.7% 64.6% 64.7% o/w EQH total economic interest 46.3% 46.7% 46.7% 46.5% 64.7% 46.3% 64.7% Units of limited partnership outstanding 265.7 265.8 268.7 269.8 270.2 265.7 270.2 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) Including both the general partnership and limited partnership interests in AB Holding and AB, EQH and its subsidiaries had an approximate 64.7% economic interest in AB as of June 30, 2018. 17
Investment Management and Research - Select Operating Metrics Three Months Ended or As of (in billions USD, unless otherwise indicated) 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 AUM Rollforward Balance as of beginning of period $ 497.9 $ 516.6 $ 534.9 $ 554.5 $ 549.5 Sales/new accounts 20.4 20.0 19.3 34.1 19.0 Redemptions/terminations (14.4) (13.9) (14.0) (31.2) (23.3) Cash flow/un-reinvested dividends (1.3) (1.6) (1.1) (5.3) (3.4) Net long-term (outflows) inflows 4.7 4.5 4.2 (2.4) (7.7) Market appreciation 14.0 13.8 15.4 (2.6) (2.0) Balance as of end of period 516.6 534.9 554.5 549.5 539.8 Ending Assets by distribution Institutions 252.9 260.0 269.3 265.0 254.4 Retail 177.3 185.7 192.9 191.0 190.3 Private wealth management 86.4 89.2 92.3 93.5 95.1 Total 516.6 534.9 554.5 549.5 539.8 Ending Assets by investment Equity Actively Managed 124.5 131.7 139.4 142.5 147.2 Passively Managed (1) 50.1 52.3 54.3 52.2 53.8 Total Equity 174.6 184.0 193.7 194.7 201.0 Fixed Income Actively Managed 275.8 282.4 288.3 277.9 267.5 Passively Managed (1) 9.9 9.9 9.9 10.0 10.1 Total Fixed Income 285.7 292.3 298.2 287.9 277.6 Other (2) Total Other 56.3 58.6 62.6 66.9 61.2 Total 516.6 534.9 554.5 549.5 539.8 Notes: (1) Includes index and enhanced index services. (2) Includes certain multi-asset solutions and services and certain alternative investments. 18
Investment Management and Research - Net Flows Three Months Ended or As of (in billions USD, unless otherwise indicated) 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 Net Flows by Distribution Channel Institutions US $ (0.8) $ 0.5 $ 1.6 $ (5.6) $ (0.7) Global and Non-US 2.0 0.9 1.4 2.8 (7.3) Total Institutions 1.2 1.4 3.0 (2.8) (8.0) Retail US (0.8) (0.5) 0.7 0.2 1.0 Global and Non-US 4.0 3.5 0.3 (1.5) (1.6) Total Retail 3.2 3.0 1.0 (1.3) (0.6) Private Wealth US 0.2 (0.3) (0.1) 0.8 0.2 Global and Non-US 0.1 0.4 0.3 0.9 0.7 Total Private Wealth 0.3 0.1 0.2 1.7 0.9 Total Net Flows by Distribution Channel 4.7 4.5 4.2 (2.4) (7.7) Net Flows by Investment Service Equity Active US (0.7) (1.0) (0.9) (1.5) 1.2 Global and Non-US 1.3 1.9 0.9 4.4 2.2 Total Equity Active 0.6 0.9 0.0 2.9 3.4 Equity Passive (1) US (0.4) (0.4) (1.2) (1.1) 0.1 Global and Non-US (0.1) 0.1 (0.2) (0.4) 0.2 Total Equity Passive (1) (0.5) (0.3) (1.4) (1.5) 0.3 Fixed Income - Taxable US (0.1) 0.9 2.8 (4.4) (1.8) Global and Non-US 3.7 2.8 0.1 (5.2) (4.1) Total Fixed Income - Taxable 3.6 3.7 2.9 (9.6) (5.9) Fixed Income - Tax-Exempt US 0.8 (0.1) 0.9 0.8 0.3 Global and Non-US 0.0 0.0 0.0 0.0 0.0 Total Fixed Income - Taxable 0.8 (0.1) 0.9 0.8 0.3 Fixed Income - Passive (1) US (1.3) 0.0 0.0 0.1 0.1 Global and Non-US (0.1) (0.1) 0.0 0.0 0.0 Total Fixed Income - Passive (1) (1.4) (0.1) 0.0 0.1 0.1 Other (2) US 0.3 0.3 0.6 1.5 0.6 Global and Non-US 1.3 0.1 1.2 3.4 (6.6) Total Other (2) 1.6 0.4 1.8 4.9 (6.0) Total Net Flows by Investment Service 4.7 4.5 4.2 (2.4) (7.8) Active vs. Passive Net Flows Actively Managed Equity 0.6 0.9 0.0 2.9 3.4 Fixed Income 4.4 3.6 3.8 (8.8) (5.6) Other (2) 1.6 0.4 1.7 4.8 (6.0) Total 6.6 4.9 5.5 (1.1) (8.2) Passively Managed (1) Equity (0.5) (0.3) (1.4) (1.5) 0.3 Fixed Income (1.4) (0.1) 0.0 0.1 0.2 Other (2) 0.0 0.0 0.1 0.1 0.0 Total (1.9) (0.4) (1.3) (1.3) 0.5 Total Active vs Passive Net Flows 4.7 4.5 4.2 (2.4) (7.7) Notes: (1) Includes index and enhanced index services. (2) Includes certain multi-asset solutions and services and certain alternative investments. 19
Protection Solutions - Statements of Income (Loss) and Summary Metrics Three Months Ended or As of Year-to-Date or As of (in millions USD, unless otherwise indicated) 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 Change 6/30/2017 6/30/2018 Change Revenues Policy charges, fee income and premiums $ 512 $ 518 $ 436 $ 535 $ 547 6.8 % $ 1,041 $ 1,082 3.9 % Net investment income (loss) 173 226 243 220 194 12.1 % 381 414 8.7 % Investment gains (losses), net including derivative gains (losses) 1 3 (4) (1) 3 200.0 % 1 2 100.0 % Investment Management, service fees and other income 57 51 52 55 56 (1.8)% 109 111 1.8 % Segment revenues 743 798 727 809 800 7.7 % 1,532 1,609 5.0 % Benefits and other deductions — — Policyholders’ benefits 421 431 (308) 409 420 (0.2)% 833 829 (0.5)% Interest credited to policyholders’ account balances 120 119 111 122 120 — % 236 242 2.5 % Commissions and distribution related payments 68 65 73 66 75 10.3 % 136 141 3.7 % Amortization of deferred policy acquisition costs, net (3) 91 10 71 47 1,666.7 % 26 118 353.8 % Compensation and benefits, interest expense, and other operating costs and expenses 118 104 112 114 107 (9.3)% 227 221 (2.6)% Segment benefits and other deductions 724 810 (2) 782 769 6.2 % 1,458 1,551 6.4 % Operating earnings (loss), before income taxes 19 (12) 729 27 31 63.2 % 74 58 (21.6)% Income taxes (3) 9 (242) (4) (7) (133.3)% (19) (11) 42.1 % Operating earnings (loss), before noncontrolling interest 16 (3) 487 23 24 50.0 % 55 47 (14.5)% Less: Operating (earnings) loss attributable to the noncontrolling interest — — (2) — — — — Operating earnings (loss) 16 (3) 485 23 24 50.0 % 55 47 (14.5)% Summary Metrics Non-GAAP Operating ROC (1)(2)(3) —% —% 5.2 % 4.5% 5.0% —% 5.0% Benefit ratio (4) 72.8% 68.9% (27.1)% 65.6% — 67.5% 69.8% 66.6% Gross written premiums 750 736 768 754 767 2.3 % 1,518 1,521 0.2 % Annualized premiums 54 57 60 57 66 22.2 % 106 123 16.0 % Total in-force face amount (in billions USD) 446 446 446 444 443 (0.7)% 446 443 (0.7)% Notes: (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” section 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) Protection Solutions Non-GAAP Operating ROC excludes impact of certain one-time items. Total post-tax adjustment to operating earnings was determined by multiplying approximately $588 million total pre-tax adjustments in policyholders’ benefits, DAC amortization (net) and policy charges, fee income and premiums by a tax rate of 32%. (3) Non-GAAP Operating ROC is calculated by dividing operating earnings (loss) on a segment basis by average capital on a segment basis, excluding AOCI and NCI. For average capital by segment, capital components pertaining 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 necessary to be considered a going concern. (4) Benefit ratio is calculated as sum of policyholders’ benefits and interest credited to policyholders’ account balances dividend by segment revenues. 20
Protection Solutions - Select Operating Metrics Three Months Ended or As of Year-to-Date or As of (in millions USD, unless otherwise indicated) 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 6/30/2017 6/30/2018 Sales Metrics First Year Premiums by Product Line: Universal Life $ 1 $ 1 $ — $ 1 $ 1 $ 3 $ 2 Indexed Universal Life 55 50 58 48 65 110 113 Variable Universal Life 35 43 45 39 43 75 82 Term 4 5 5 4 5 9 9 Employee Benefits 6 6 11 10 11 8 21 Other (1) — — 1 — — — — Total 101 105 120 102 125 205 227 Renewals by Product Line: Universal Life 256 218 221 220 230 474 450 Indexed Universal Life 45 48 48 55 56 93 111 Variable Universal Life 220 243 239 242 225 476 467 Term 126 116 131 126 122 257 248 Employee Benefits — — 1 3 4 — 7 Other (1) 2 6 8 6 5 13 11 Total 649 631 648 652 642 1,313 1,294 Total Gross Premiums 750 736 768 754 767 1,518 1,521 In-force Metrics In-force Face Amount by Product (2) (in billions): Universal Life (3) 60 60 59 58 58 60 58 Indexed Universal Life 19 20 20 21 22 19 22 Variable Universal Life (4) 129 129 129 128 128 129 128 Term 236 235 236 235 234 236 234 Whole Life 2 2 2 2 1 2 1 Total 446 446 446 444 443 446 443 In-force Policy Count by Product (2) (in thousands): Universal Life (3) 193 191 188 185 181 193 181 Indexed Universal Life 41 43 45 47 48 41 48 Variable Universal Life (4) 321 318 316 314 312 321 312 Term 343 341 340 338 336 343 336 Whole Life 20 20 20 20 19 20 19 Total 918 913 909 904 896 918 896 Protection Solutions Reserves (5) General Account 16,629 16,724 16,007 16,128 16,202 16,629 16,202 Separate Accounts 11,859 12,163 12,643 12,396 12,597 11,859 12,597 Total 28,488 28,887 28,650 28,524 28,799 28,488 28,799 Notes: (1) For the individual life insurance premiums, other includes Whole Life insurance and other products available for sale but not actively marketed. (2) Does not include life insurance sold as part of our employee benefits business as it is a start-up business with a limited amount of in-force policies. (3) Universal Life includes guaranteed Universal Life insurance products. (4) Variable Universal Life includes variable life insurance and corporate-owned life insurance. (5) Does not include our employee benefits business as it is a start-up business and therefore has immaterial in-force policies. 21
Investments 22
Consolidated Investment Portfolio Composition Balances as of (in millions USD, unless otherwise indicated) 12/31/2017 6/30/2018 Amount % of Total Amount % of Total Composition of investment portfolio Fixed maturities, available for sale, at fair value $ 46,941 57.1 % $ 43,905 55.4 % Mortgage loans on real estate 10,952 13.3 % 11,808 14.9 % Policy loans 3,819 4.6 % 3,739 4.7 % Real Estate held for the production of income 390 0.5 % 53 0.1 % Other equity investments 1,392 1.7 % 1,385 1.7 % Other invested assets 4,118 5.0 % 1,792 2.3 % Subtotal investment assets 67,612 82.2 % 62,682 79.0 % Trading securities 14,170 17.2 % 14,146 17.8 % Total investments 81,782 99.5 % 76,828 96.9 % Cash and cash equivalents 4,814 5.9 % 6,833 8.6 % Repurchase and funding agreements (4,382) (5.3)% (4,343) (5.5)% Total 82,214 100.0 % 79,318 100.0 % Fixed maturities by industry Corporate securities: Finance 6,017 12.6 % 5,815 13.2 % Manufacturing 7,820 16.4 % 8,526 19.4 % Utilities 4,229 8.9 % 4,156 9.5 % Services 3,422 7.2 % 3,741 8.5 % Energy 2,072 4.4 % 2,081 4.7 % Retail and wholesale 1,437 3.0 % 1,585 3.6 % Transportation 1,012 2.1 % 1,141 2.6 % Other 135 0.3 % 139 0.3 % Total corporate securities 26,144 54.9 % 27,184 61.9 % U.S. government 18,493 38.8 % 14,386 32.8 % Residential mortgage-backed 818 1.7 % 256 0.6 % Preferred stock 512 1.1 % 506 1.2 % State & municipal 489 1.0 % 470 1.1 % Foreign governments 419 0.9 % 457 1.0 % Asset-backed securities 749 1.6 % 629 1.4 % Total 47,624 100.0 % 43,888 100.0 % Fixed maturities credit quality(1) Aaa, Aa, A 34,835 73.1 % 30,185 68.8 % Baa 11,668 24.5 % 12,702 28.9 % Investment grade 46,503 97.6 % 42,887 97.7 % Ba 659 1.4 % 499 1.1 % B 428 0.9 % 471 1.1 % Caa 21 — % 25 0.1 % Ca, C 13 — % 6 — % Below investment grade 1,121 2.4 % 1,001 2.3 % Total 47,624 100.0 % 43,888 100.0 % Notes: (1) Credit quality based on NAIC rating. 23
Consolidated Results of General Account Investment Assets Six Months Ended Six Months Ended Year Ended (in millions USD, unless otherwise indicated) 6/30/2018 6/30/2017 12/31/2017 Yield Amount(2) Yield Amount(2) Yield Amount(2) Fixed Maturities(1): Investment grade Income (loss) 3.74 % $ 810 3.95 % $ 803 3.64 % $ 1,515 Ending assets 42,866 41,322 44,384 Below investment grade Income 6.32 % 42 6.90 % 56 7.23 % 113 Ending assets 1,288 1,562 1,367 Mortgages: Income (loss) 4.18 % 238 4.54 % 229 4.38 % 454 Ending assets 11,808 10,408 10,952 Real Estate Held For the Production of Income: Income (loss) (3.00)% (5) (5.56)% (1) 1.30 % 2 Ending assets 53 56 390 Other Equity Investments: Income (loss) 9.56 % 62 12.68 % 79 14.37 % 169 Ending assets 1,311 1,281 1,289 Policy Loans: Income 5.70 % 108 5.79 % 111 5.77 % 221 Ending assets 3,739 3,919 3,819 Cash and Short-term Investments: Income 0.68 % 16 0.36 % 9 0.65 % 32 Ending assets 5,763 6,522 4,539 Repurchase and funding agreements: Interest expense and other (17) (8) (21) Ending (liabilities) (4,343) (4,416) (4,382) Total Invested Assets: Income 4.06 % 1,254 4.40 % 1,278 4.18 % 2,485 Ending assets 62,485 60,654 62,358 Trading Securities: Income (loss) (0.89)% (57) 2.66 % 129 2.19 % 231 Ending assets 13,352 10,702 12,050 Total: Investment income 3.21 % 1,197 4.15 % 1,407 3.88 % 2,716 Less: investment fees (0.09)% (34) (0.11)% (36) (0.10)% (68) Investment income, net 3.12 % 1,163 4.04 % 1,371 3.78 % 2,648 Ending Net Assets 75,837 71,356 74,408 Notes: (1) Fixed Maturities Investment Grade and Below Investment Grade are based on Moody’s Equivalent ratings. (2) Amount for fixed maturities and mortgages represents original cost, reduced by repayments and writedowns and adjusted for amortization of premiums or accretion of discount; 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. 24
Additional Information 25
Deferred Acquisition Costs Rollforward Three Months Ended or As of Year-to-Date or As of (in millions USD, unless otherwise indicated) 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 6/30/2017 6/30/2018 Deferred Acquisition Costs Balance as of beginning of period $ 6,026 $ 6,101 $ 6,114 $ 5,969 $ 6,288 $ 6,044 $ 5,969 Capitalization of commissions, sales and issue expenses 179 162 173 160 173 352 332 Amortization (66) (174) (90) (175) (172) (184) (346) Change in unrealized investment gains and losses (38) 25 (228) 334 57 (111) 391 Balance as of end of period 6,101 6,114 5,969 6,288 6,346 6,101 6,346 Deferred Acquisition Costs by segment and Corporate and Other Individual Retirement 2,718 2,811 2,901 2,957 3,015 2,718 3,015 Group Retirement 649 668 678 664 675 649 675 Protection Solutions 2,865 2,569 2,329 2,554 2,524 2,865 2,524 Corporate and Other (131) 66 61 113 132 (131) 132 Total 6,101 6,114 5,969 6,288 6,346 6,101 6,346 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, Pro Forma Non-GAAP Operating ROE, and Non-GAAP Operating ROC by segment for our Individual Retirement, Group Retirement and Protection Solutions segments, Book value per share, excluding AOCI, and Non-GAAP Operating Earnings per share, each of which is a measure that is not determined in accordance with U.S. GAAP. Management believes that the use of these non-GAAP financial measures, together with relevant U.S. GAAP measures, provides 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. 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. 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. In the first quarter of 2018, the Company revised its Non-GAAP Operating Earnings definition as it relates to the treatment of certain elements of the profitability of its variable annuity products with indexed-linked features to align to the treatment of its variable annuity products with GMxB features. In addition, adjustments for variable annuity products with index-linked features previously included within Other adjustments in the calculation of Non-GAAP Operating Earnings are now included with the adjustments for variable annuity products with GMxB features in the broader adjustment category, Variable annuity product features. The presentations of Non-GAAP Operating Earnings in prior periods were revised to reflect this change in definition. 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 certain changes in the fair value of the derivatives and other securities we use to hedge these features and changes in the fair value of the embedded derivatives reflected within Variable annuity products’ net derivative results; • Investment (gains) losses, which includes other-than-temporary impairments of securities, sales or disposals of securities/investments, realized capital gains/losses and valuation allowances; • Goodwill impairment, which includes a write-down of goodwill in first quarter of 2017 • 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 and separation costs; 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, permanent differences due to goodwill impairment, and the Tax Reform Act. 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 our prevailing corporate federal income tax rate of 21% in 2018 and 35% in 2017, 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. Pro Forma Non-GAAP Operating ROE and Non-GAAP Operating ROC by Segment We report Pro Forma Non-GAAP Operating ROE as well as 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 recurrent profitability on a consolidated basis and by segment, respectively. We calculate Pro Forma Non-GAAP Operating ROE by dividing Pro Forma Non-GAAP Operating Earnings by consolidated average equity attributable to Holdings, excluding AOCI and NCI. We calculate Non-GAAP Operating ROC by segment by dividing operating earnings (loss) on a segment basis by average capital on a segment basis, excluding AOCI and NCI, 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 securities. Therefore, we believe excluding AOCI is more effective in 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 necessary to be considered a going concern. To enhance the ability to analyze these measures across periods, interim periods are annualized. Pro Forma Non-GAAP Operating ROE and Non-GAAP Operating ROC by segment should not be used as substitutes for ROE. Book Value Per Share, excluding AOCI We use the term “book value” to refer to “stockholder’s equity.” Book Value Per Share, excluding AOCI, is our stockholder’s equity, excluding AOCI, divided by ending common shares outstanding – diluted. Non-GAAP Operating Earnings Per Share Non-GAAP Operating Earnings Per Share is calculated by dividing Non-GAAP Operating Earnings by ending common shares outstanding – diluted. 27
Reconciliation of Non-GAAP Measures (1/3) Three Months Ended Year-to-Date (in millions USD, unless otherwise indicated) 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 6/30/2017 6/30/2018 Net income (loss) attributable to Holdings Net income (loss) attributable to Holdings $ 608 $ (6) $ 538 $ 168 $ 158 $ 318 $ 326 Adjustments related to: Variable annuity product features(1) (40) 656 377 212 280 251 492 Investment gains (losses) (4) 12 159 (102) 22 20 (80) Goodwill impairment — — — — — 369 — Net actuarial gains (losses) related to pension and other postretirement benefit obligations 33 34 34 131 27 67 158 Other adjustments 26 46 59 90 89 5 179 Income tax (expense) benefits related to above adjustments (7) (260) (212) (63) (81) (242) (144) Non-recurring tax items (217) (7) 16 28 11 (85) 39 Non-GAAP Operating earnings (loss) 399 475 971 464 506 703 970 Net income (loss) attributable to Holdings per diluted common share 1.08 (0.01) 0.96 0.30 0.28 0.57 0.58 Adjustments related to: Variable annuity product features(1) (0.07) 1.17 0.67 0.38 0.50 0.45 0.88 Investment gains (losses) (0.01) 0.02 0.28 (0.18) 0.04 0.04 (0.14) Goodwill impairment — — — — — 0.66 — Net actuarial gains (losses) related to pension and other postretirement benefit obligations 0.06 0.06 0.06 0.23 0.05 0.12 0.28 Other adjustments 0.05 0.08 0.11 0.16 0.15 (0.01) 0.32 Income tax (expense) benefit related to above adjustments (0.01) (0.46) (0.38) (0.11) (0.14) (0.43) (0.26) Non-recurring tax items (0.39) (0.01) 0.03 0.05 0.02 (0.15) 0.07 Non-GAAP Operating earnings per diluted common share 0.71 0.85 1.73 0.83 0.90 1.25 1.73 Book Value per share Book Value per Share 22.08 22.15 24.04 24.18 23.84 22.08 23.84 Less: Per share impact of AOCI (0.59) (0.59) (0.19) (1.69) (2.33) (0.59) (2.33) Book value per share (ex. AOCI) 22.67 22.74 24.23 25.87 26.17 22.67 26.17 Notes: 561.0 561.0 561.0 561.0 561.1 561.0 561.1 (1) This reconciling item was previously referred to as “GMxB product features”, but is now referred to more broadly as “Variable annuity product features” to reflect the exclusion of embedded derivatives on our SCS product from non-GAAP Operating Earnings. 28
Reconciliation of Non-GAAP Measures (2/3) Three Months Ended or As of Twelve Months Ended or As of (in millions USD, unless otherwise indicated) 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 3/31/2018 6/30/2018 Net Income to Pro forma Net Income Net Income (loss), as reported $ 698 $ 90 $ 682 $ 291 $ 255 $ 1,761 $ 1,318 Adjustments related to: Pro forma adjustments before income tax(1) (65) (65) 21 (32) (141) (76) Income tax impact 12 11 (28) (4) (9) (21) Pro forma adjustments, net of income tax (53) (54) (7) (36) — (150) (97) Pro forma net income (loss) 645 36 675 255 255 1,611 1,221 Less: Pro forma net income (loss) attributable to the noncontrolling interest (63) (65) (91) (82) (97) (301) (335) Pro forma net income (loss) attributable to Holdings 1,174 (47) 1,252 392 413 1,310 886 Pro forma Net Income to Pro forma Non-GAAP Operating Earnings Pro forma net income (loss) attributable to Holdings 582 (29) 584 173 158 1,310 886 Adjustments related to: Variable annuity product features (78) 698 378 213 280 1,211 1,569 Investment (gains) losses (4) 12 160 (103) 22 65 91 Investment (income) loss from certain derivative instruments — — — — — — — Goodwill impairment 33 35 34 132 27 — — Net actuarial (gains) losses related to pension and other postretirement benefit obligations — — — — 234 228 Other adjustments 17 56 56 93 89 222 294 Income tax (expense) benefits related to above adjustments (209) (287) (331) (62) (81) (889) (761) Non-recurring tax items — — 132 28 11 160 171 Pro forma Non-GAAP Operating Earnings 341 485 1,013 474 506 2,313 2,478 Pro forma Equity Reconciliation Average Twelve Months Ended Total equity attributable to Holdings 12,385 12,425 13,485 13,564 13,376 12,965 13,213 Pro forma adjustments (1) 926 892 702 6 — 632 400 Pro forma total equity attributable to Holdings 13,311 13,317 14,187 13,570 13,376 13,596 13,613 Less: Accumulated other comprehensive income (loss) (333) (330) (108) (946) (1,310) (429) (674) Pro forma total equity attributable to Holdings excluding AOCI 13,644 13,647 14,295 14,516 14,686 14,026 14,286 Return on Equity Reconciliation Twelve Months Ended or As of Net income (loss) attributable to Holdings 608 (6) 538 168 158 1,308 858 Average equity attributable to Holdings — — — — — 12,965 13,213 Return on Equity 10.1% 6.5% Pro forma Non-GAAP Operating Earnings 506 474 1,014 485 341 2,313 2,478 Pro forma average equity attributable to Holdings excluding AOCI 14,026 14,286 Pro forma Non-GAAP Return on Equity 16.5% 17.3% Pro forma Non-GAAP Operating Earnings excluding Q4 2017 non-recurring items (2) 506 474 615 485 341 1,914 2,079 Pro forma average equity attributable to Holdings excluding AOCI 14,026 14,286 Pro forma Non-GAAP ROE excluding Q4 2017 non-recurring items 13.6% 14.6% Notes: (1) Pro Forma adjustments relate to certain reorganization transactions that occurred in 2018, including: (1) the acquisition of AXA’s remaining interest in AB and minority interests in AXA Financial, Inc.; (2) the transfer of certain U.S. property & casualty business held by AXA Equitable Holdings to AXA; (3) the issuance of $3.8 billion of external debt and (4) the settlement of all outstanding financing balances with AXA. (2) The post-tax adjustment to Pro Forma Non-GAAP Operating Earnings for Q42017 non-recurring items was determined by multiplying $588 million total pre-tax adjustments in policyholder’s benefits, DAC amortization (net), policy charges, fee income and premiums by a tax rate of 32%. 29
Reconciliation of Non-GAAP Measures (3/3) Twelve Months Ended Twelve Months Ended or As of (in millions USD, unless otherwise indicated) 12/31/2016 12/31/2017 12/31/2017 Net Income to Pro forma Net Income Net Income (loss), as reported — — $ 1,273 Adjustments related to: Pro forma adjustments before income tax(1) — — (154) Income tax impact — — (3) Pro forma adjustments, net of income tax — — (157) Pro forma net income (loss) — — 1,116 Less: Pro forma net income (loss) attributable to the noncontrolling interest — — (276) Pro forma net income (loss) attributable to Holdings — — 840 Pro forma Net Income to Pro forma Non-GAAP Operating Earnings Pro forma net income (loss) attributable to Holdings — — 840 Adjustments related to: Variable annuity product features — — 1,250 Investment (gains) losses — — 192 Investment (income) loss from certain derivative instruments — — 18 Goodwill impairment — — 369 Net actuarial (gains) losses related to pension and other postretirement benefit obligations — — 136 Other adjustments — — 85 Income tax (expense) benefits related to above adjustments — — (705) Non-recurring tax items — — (76) Pro forma Non-GAAP Operating Earnings — — 2,109 Pro forma Equity Reconciliation Average Twelve Months Ended Total equity attributable to Holdings 11,455 13,485 12,470 Pro forma adjustments (1) 1,079 702 891 Pro forma total equity attributable to Holdings 12,534 14,187 13,361 Less: Accumulated other comprehensive income (loss) (921) (108) (515) Pro forma total equity attributable to Holdings excluding AOCI 13,455 14,295 13,875 Return on Equity Reconciliation Twelve Months Ended or As of Net income (loss) attributable to Holdings — — 850 Average equity attributable to Holdings — — 12,470 Return on Equity 6.8% Pro forma Non-GAAP Operating Earnings — — 2,109 Pro forma average equity attributable to Holdings excluding AOCI — — 13,875 Pro forma Non-GAAP Return on Equity 15.2% Pro forma Non-GAAP Operating Earnings excluding Q4 2017 non-recurring items (2) — — 1,710 Pro forma average equity attributable to Holdings excluding AOCI — — 13,875 Pro forma Non-GAAP ROE excluding Q4 2017 non-recurring items 12.3% Notes: (1) Pro Forma adjustments relate to certain reorganization transactions that occurred in 2018, including: (1) the acquisition of AXA’s remaining interest in AB and minority interests in AXA Financial, Inc.; (2) the transfer of certain U.S. property & casualty business held by AXA Equitable Holdings to AXA; (3) the issuance of $3.8 billion of external debt and (4) the settlement of all outstanding financing balances with AXA. (2) The post-tax adjustment to Pro Forma Non-GAAP Operating Earnings for Q42017 non-recurring items was determined by multiplying $588 million total pre-tax adjustments in policyholder’s benefits, DAC amortization (net), policy charges, fee income and premiums by a tax rate of 32%. 30
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 Account AV refers to Separate Account 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 AXA 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 GAIA 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. 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 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. Fixed Rate (Individual Retirement) - Pre 2011 GMxB products. FYP - First year premium and deposits. Gross premiums - FYP and Renewal 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). 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. 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 Reserves - 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. 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 from existing clients. In addition, cash flow includes fees received from certain clients. It excludes the impact of the markets. Pre-tax return on assets - calculated as segment pre-tax operating earnings. 31
Analyst Coverage, Ratings & Contact Information Analyst Coverage Firm Analyst Phone Number Autonomous Research Erik Bass 1 (646) 561-6248 Bank of America Merrill Jay Cohen 1 (646) 855-5716 Barclays Jay Gelb 1 (212) 526-1561 Citi Suneet Kamath 1 (212) 816-3457 Credit Suisse Andrew Kligerman 1 (212) 325-5069 Deutsche Bank Joshua Shanker 1 (212) 250-7127 Evercore ISI Thomas Gallagher 1 (212) 446-9439 Goldman Sachs Alex Scott 1 (917) 343-7160 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 This list is provided for informational purposes only. AXA 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 3/7/2018 3/6/2018 4/11/2018 Financial Strength Ratings: AXA Equitable Life A A+ A2 MLOA A A+ A2 Credit Ratings: AXA Equitable Holdings — BBB+ Baa2 AXA Financial bbb+ BBB+ Baa2 AB (1) — A A2 Investor and Media Contacts Contact Investor Relations Contact Media Relations Kevin Molloy Priya Mehrotra Dan Woodrow Mallika Patkar Gina Tyler (212) 314-2476 (212) 314-2466 (212) 314-2036 (212) 314-2183 (212) 314-2010 IR@axa-equitable.com MediaRelations@axa-equitable.com www.ir.axaequitableholdings.com www.axaequitableholdings.com Notes: (1) Last review dates: S&P as of November 29, 2017, Moody’s as of May 17, 2017. 32