Equitable Holdings, Inc. - FORM 8-K/A - EX-99.2

Attached files

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EX-99.1 - EX-99.1 - Equitable Holdings, Inc.	eqhq22020earningsrelea.htm
8-K/A - 8-K/A - Equitable Holdings, Inc.	axaeq-20200804.htm


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	9
		Assets Under Management and Administration	10
		Sales Metrics by Segment	11

	Select Metrics from Business Segments
Individual Retirement
		Statements of Operating Earnings (Loss) and Summary Metrics	13
		Select Operating Metrics	14
Group Retirement
		Statements of Operating Earnings (Loss) and Summary Metrics	15
		Select Operating Metrics	16
Investment Management and Research
		Statements of Operating Earnings (Loss) and Summary Metrics	17
		Select Operating Metrics	18
		Net Flows	19
Protection Solutions
		Statements of Operating Earnings (Loss) and Summary Metrics	20
		Select Operating Metrics	21

	Investments
		Consolidated Investment Portfolio Composition	23
		Consolidated Results of General Account Investment Portfolio	24

	Additional Information
		Deferred Policy Acquisition Costs Rollforward	26
		Use of Non-GAAP Financial Measures	27
		Reconciliation of Non-GAAP Measures	29
		Glossary of Selected Financial and Product Terms	32
		Analyst Coverage, Ratings & Contact Information	33

All information included in this financial supplement is unaudited.

This financial supplement includes information from prior periods which have been revised and/or restated.

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


2Q 2020 Financial Supplement						2

Consolidated Financials

and Key Metrics


2Q 2020 Financial Supplement						3

Key Metrics Summary


	For the Three Months Ended or As of																									Six Months Ended or As of
(in millions USD, unless otherwise indicated)	6/30/2019			9/30/2019			12/31/2019			3/31/2020			6/30/2020			Change		6/30/2019			6/30/2020			Change

Net income (loss)	$	430		$	(316)		$	(841)		$	5,447		$	(3,942)		N/M		$	(279)		$	1,505		639.4	%
Net income (loss) attributable to the noncontrolling interest	(67)			(68)			(96)			(37)			(86)			(28.4)	%	(133)			(123)			7.5	%
Net income (loss) attributable to Holdings	$	363		$	(384)		$	(937)		$	5,410		$	(4,028)		N/M		$	(412)		$	1,382		435.4	%

Non-GAAP Operating Earnings (1)	$	559		$	677		$	652		$	515		$	459		(17.9)	%	$	1,068		$	974		(8.8)	%

Total equity attributable to Holdings' shareholders	$	14,843		$	14,936		$	13,535		$	20,086		$	17,594		18.5	%	$	14,843		$	17,594		18.5	%
Less: Preferred Stock	—			—			775			775			775			100.0	%	—			775			100.0	%
Total equity attributable to Holdings' common shareholders	14,843			14,936			12,760			19,311			16,819			13.3	%	14,843			16,819			13.3	%
Less: Accumulated other comprehensive income (loss)	876			1,468			840			2,289			3,928			348.4	%	876			3,928			348.4	%
Total equity attributable to Holdings' common shareholders (ex. AOCI)	$	13,967		$	13,468		$	11,920		$	17,022		$	12,891		(7.7)	%	$	13,967		$	12,891		(7.7)	%

Return on Equity (ex. AOCI) - TTM	7.2		%	8.1		%	(13.1)		%	31.5		%	0.3		%			7.2		%	0.3		%
Non-GAAP Operating ROE (1)	15.9		%	16.0		%	18.1		%	17.0		%	16.5		%			15.9		%	16.5		%	—	%

Debt to capital:
Debt to Capital	24.6		%	24.3		%	23.3		%	17.4		%	18.9		%			24.6		%	18.9		%
Debt to Capital (ex. AOCI)	25.8		%	26.3		%	24.5		%	19.2		%	23.1		%			25.8		%	23.1		%

Per common share:
Diluted earnings per common share: (2)
Net income (loss) attributable to Holdings	$	0.74		$	(0.78)		$	(1.97)		$	11.65		$	(8.96)		N/M		$	(0.82)		$	2.97		464.0	%
Non-GAAP Operating Earnings (1)	$	1.14		$	1.38		$	1.37		$	1.08		$	1.00		(12.3)	%	$	2.11		$	2.08		(1.6)	%
Book value per common share	$	30.22		$	30.53		$	27.52		$	42.86		$	37.42		23.8	%	$	30.22		$	37.42		23.8	%
Book value per common share (ex. AOCI)	$	28.44		$	27.53		$	25.71		$	37.78		$	28.68		0.9	%	$	28.44		$	28.68		0.9	%

Weighted-average common shares outstanding:
Basic	491.1			490.4			474.9			461.0			450.4			(8.3)	%	504.5			455.8			(9.7)	%
Diluted	491.9			490.4			474.9			463.5			450.4			(8.4)	%	504.5			457.1			(9.4)	%

Ending common shares outstanding	491.1			489.3			463.7			450.5			449.4			(8.5)	%	491.1			449.4			(8.5)	%

Return to common shareholders:
Common stock dividend	$	73		$	74		$	70		$	69		$	77				$	141		$	146
Repurchase of common shares	—			37			563			205			25					750			230
Total capital returned to common shareholders	$	73		$	111		$	633		$	274		$	102				$	891		$	376

Market Values:
S&P 500	2,942			2,977			3,231			2,585			3,100			5.4	%	2,942			3,100			5.4	%
US 10-Year Treasury	2.0		%	1.7		%	1.9		%	0.7		%	0.7		%			2.0		%	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” 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.


2Q 2020 Financial Supplement						4

Consolidated Statements of Income (Loss)


	For the Three Months Ended																		Six Months Ended
(in millions USD, unless otherwise indicated)	6/30/2019		9/30/2019		12/31/2019		3/31/2020		6/30/2020		Change		6/30/2019		6/30/2020		Change

Revenues
Policy charges and fee income	$	941	$	929	$	937	$	991	$	879	(6.6)	%	$	1,872	$	1,870	(0.1)	%
Premiums	280		284		300		289		244		(12.9)	%	563		533		(5.3)	%
Net derivative gains (losses)	(236)		(451)		(1,683)		9,401		(6,033)		N/M		(1,866)		3,368		280.5	%
Net investment income (loss)	976		824		884		616		1,035		6.0	%	1,991		1,651		(17.1)	%
Investment gains (losses), net	(12)		199		(103)		4		169		N/M		(23)		173		852.2	%
Investment management and service fees	1,072		1,101		1,208		1,136		1,052		(1.9)	%	2,071		2,188		5.6	%
Other income	139		142		146		156		124		(10.8)	%	266		280		5.3	%
Total revenues	3,160		3,028		1,689		12,593		(2,530)		(180.1)	%	4,874		10,063		106.5	%

Benefits and other deductions
Policyholders’ benefits	896		1,757		837		2,788		746		(16.7)	%	1,776		3,534		99.0	%
Interest credited to policyholders’ account balances	314		304		319		317		307		(2.2)	%	618		624		1.0	%
Compensation and benefits	512		502		558		526		469		(8.4)	%	1,021		995		(2.5)	%
Commissions and distribution related payments	307		317		337		338		302		(1.6)	%	588		640		8.8	%
Interest expense	57		54		54		52		48		(15.8)	%	113		100		(11.5)	%
Amortization of deferred policy acquisition costs	177		85		119		1,248		183		3.4	%	375		1,431		281.6	%
Other operating costs and expenses	456		449		577		437		434		(4.8)	%	866		871		0.6	%
Total benefits and other deductions	2,719		3,468		2,801		5,706		2,489		(8.5)	%	5,357		8,195		53.0	%

Income (loss) from operations, before income taxes	441		(440)		(1,112)		6,887		(5,019)		N/M		(483)		1,868		486.7	%
Income tax (expense) benefit	(11)		124		271		(1,440)		1,077		N/M		204		(363)		(277.9)	%
Net income (loss)	430		(316)		(841)		5,447		(3,942)		N/M		(279)		1,505		639.4	%
Less: net (income) loss attributable to the noncontrolling interest	(67)		(68)		(96)		(37)		(86)		(28.4)	%	(133)		(123)		7.5	%
Net income (loss) attributable to Holdings	$	363	$	(384)	$	(937)	$	5,410	$	(4,028)	N/M		$	(412)	$	1,382	435.4	%
Less: Preferred stock dividends	—		—		—		(13)		(10)		(100.0)	%	—		(23)		(100.0)	%
Net income (loss) available to Holdings' common shareholders	$	363	$	(384)	$	(937)	$	5,397	$	(4,038)	N/M		$	(412)	$	1,359	429.9	%

Adjustments related to:
Variable annuity product features (1)	$	200	$	1,444	$	1,694	$	(6,861)	$	5,727			$	1,740	$	(1,134)
Investment gains (losses), net	12		(199)		103		(4)		(169)				23		(173)

Net actuarial gains (losses) related to pension and other postretirement benefit obligations	24		24		27		27		28				48		55
Other adjustments (2) (3)	89		78		199		634		91				129		725
Income tax (expense) benefit related to above adjustments (4)	(71)		(282)		(424)		1,303		(1,192)				(408)		111
Non-recurring tax items	(58)		(4)		(10)		6		2				(52)		8
Non-GAAP Operating earnings (5)	$	559	$	677	$	652	$	515	$	459			$	1,068	$	974

Notes:
(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 six months ended June 30, 2020.
(2) Includes separation costs of $39 million, $58 million, $71 million and $82 million for the three and six months ended June 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 for the six months ended June 30, 2020 and other COVID-19 related impacts of $52 million and $103 million for the three and six months ended June 30, 2020.
(4) Includes income taxes of $(11) million and $(545) million for the above related COVID-19 items for the three and six months ended June 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.


2Q 2020 Financial Supplement						5

Consolidated Balance Sheets


	Balances as of
(in millions USD, unless otherwise indicated)	6/30/2019		9/30/2019		12/31/2019		3/31/2020		6/30/2020

Assets
Total investments	$	86,901	$	94,717	$	93,340	$	96,216	$	102,693
Cash and cash equivalents	4,734		4,471		4,405		10,315		8,364
Cash and securities segregated, at fair value	1,110		958		1,095		2,013		1,882
Broker-dealer related receivables	2,156		1,935		1,987		2,436		1,998
Deferred policy acquisition costs	6,080		5,787		5,890		4,809		4,182
Goodwill and other intangible assets, net	4,776		4,765		4,751		4,760		4,756
Amounts due from reinsurers	4,740		4,656		4,592		4,614		4,665

GMIB reinsurance contract asset, at fair value	1,896		2,452		2,139		2,823		2,931

Other assets	3,760		3,882		3,799		5,824		3,724
Assets held-for-sale	—		—		962		843		—
Separate Accounts assets	122,444		121,023		126,910		106,128		118,915
Total assets	$	238,597	$	244,646	$	249,870	$	240,781	$	254,110

Liabilities
Policyholders’ account balances	$	53,211	$	56,719	$	58,879	$	55,810	$	59,272
Future policy benefits and other policyholders’ liabilities	32,381		36,310		34,587		37,968		41,476
Broker-dealer related payables	443		519		722		1,001		1,001

Customers related payables	2,686		2,381		2,523		3,630		3,199
Amounts due to reinsurers	1,390		1,387		1,404		1,380		1,399
Short-term and long-term debt	4,852		4,794		4,111		4,217		4,113

Income taxes payable	689		864		549		2,355		1,848
Other liabilities	3,856		3,833		3,970		5,716		3,666
Liabilities held-for-sale	—		—		724		679		—
Separate Accounts liabilities	122,444		121,023		126,910		106,128		118,915
Total liabilities	221,952		227,830		234,379		218,884		234,889
Redeemable noncontrolling interest	257		338		365		257		87

Equity
Preferred stock	—		—		775		775		775
Common stock	5		5		5		5		5
Additional paid-in capital	1,901		1,897		1,920		1,930		1,938
Treasury shares	(1,232)		(1,269)		(1,832)		(2,025)		(2,047)
Retained earnings	13,293		12,835		11,827		17,112		12,995
Accumulated other comprehensive income (loss)	876		1,468		840		2,289		3,928
Total equity attributable to Holdings	14,843		14,936		13,535		20,086		17,594
Noncontrolling interest	1,545		1,542		1,591		1,554		1,540
Total equity	16,388		16,478		15,126		21,640		19,134
Total liabilities, redeemable noncontrolling interest and equity	$	238,597	$	244,646	$	249,870	$	240,781	$	254,110


2Q 2020 Financial Supplement						6

Consolidated Capital Structure


	Balances as of
(in millions USD, unless otherwise indicated)	6/30/2019			9/30/2019			12/31/2019			3/31/2020			6/30/2020

Short-term and long-term debt:
Short-term debt
AB commercial paper	$	443		$	303		$	—		$	105		$	—
AB revolving credit facility	—			80			—			—			—
Total short-term debt	443			383			—			105			—

Total long-term debt	4,409			4,411			4,111			4,112			4,113

Total short-term and long-term debt: [A]	$	4,852		$	4,794		$	4,111		$	4,217		$	4,113

Equity:
Preferred stock	$	—		$	—		$	775		$	775		$	775
Common stock	$	5		$	5		$	5		$	5		$	5
Additional paid-in capital	1,901			1,897			1,920			1,930			1,938
Treasury stock, at cost	(1,232)			(1,269)			(1,832)			(2,025)			(2,047)
Retained earnings	13,293			12,835			11,827			17,112			12,995
Accumulated other comprehensive income (loss)	876			1,468			840			2,289			3,928
Total equity attributable to Holdings	14,843			14,936			13,535			20,086			17,594
Noncontrolling interest	1,545			1,542			1,591			1,554			1,540
Total equity	$	16,388		$	16,478		$	15,126		$	21,640		$	19,134

Total equity attributable to Holdings, (ex. AOCI): [B]	$	13,967		$	13,468		$	12,695		$	17,797		$	13,666

Capital:
Total capitalization	$	19,695		$	19,730		$	17,646		$	24,303		$	21,707
Total capitalization (ex. AOCI): [A+B]	$	18,819		$	18,262		$	16,806		$	22,014		$	17,779

Debt to capital:
Debt to capital	24.6		%	24.3		%	23.3		%	17.4		%	18.9		%
Debt to capital (ex. AOCI)	25.8		%	26.3		%	24.5		%	19.2		%	23.1		%

	For the Three Months Ended
Roll-forward of common shares outstanding (millions of shares):
Beginning balance	491.0			491.1			489.3			463.7			450.5
Repurchases	—			(1.8)			(25.6)			(13.7)			(1.2)
Retirements	—			—			—			—			—
Issuances	0.1			—			—			0.5			0.1
Ending basic common shares outstanding	491.1			489.3			463.7			450.5			449.4
Total potentially dilutive shares	—			—			—			2.5			1.4
Ending common shares outstanding - maximum potential dilution	491.1			489.3			463.7			453.0			450.8


2Q 2020 Financial Supplement						7


Operating Earnings (Loss) by Segment and Corporate and Other (1/2)

	Three Months Ended June 30, 2020
(in millions USD, unless otherwise indicated)	Individual Retirement		Group Retirement		Inv Mgmt and Research		Protection Solutions		Corporate and Other		Consolidated
Revenues
Policy charges, fee income and premiums	$	493	$	68	$	—	$	469	$	96	$	1,126
Net investment income (loss)	266		127		32		204		114		743
Net derivative gains (losses)	(114)		4		(31)		5		3		(133)
Investment management, service fees and other income	164		47		843		52		70		1,176
Segment revenues	809		246		844		730		283		2,912
Benefits and other deductions
Policyholders’ benefits	86		1		—		460		162		709
Interest credited to policyholders’ account balances	81		74		—		137		15		307
Commissions and distribution related payments	60		13		126		35		68		302
Amortization of deferred policy acquisition costs	72		2		—		31		(2)		103
Compensation, benefits and other operating costs and expenses	86		47		523		81		59		796
Interest expense and financing fees	—		—		2		—		52		54
Segment benefits and other deductions	385		137		651		744		354		2,271
Operating earnings (loss), before income taxes	424		109		193		(14)		(71)		641
Income Taxes	(74)		(19)		(32)		2		14		(109)
Operating earnings (loss), before noncontrolling interest	350		90		161		(12)		(57)		532
Less: Operating (earnings) loss attributable to the noncontrolling interest	—		—		(69)		—		(4)		(73)
Operating earnings (loss)	$	350	$	90	$	92	$	(12)	$	(61)	$	459

	Three Months Ended June 30, 2019
	Individual Retirement		Group Retirement		Inv Mgmt and Research		Protection Solutions		Corporate and Other		Consolidated
Revenues
Policy charges, fee income and premiums	$	524	$	69	$	—	$	530	$	98	$	1,221
Net investment income (loss)	280		150		15		248		132		825
Net derivative gains (losses)	87		(2)		(9)		1		(3)		74
Investment Management, service fees and other income	182		50		842		64		73		1,211
Segment revenues	1,073		267		848		843		300		3,331
Benefits and other deductions
Policyholders’ benefits	291		1		—		419		186		897
Interest credited to policyholders’ account balances	84		75		—		127		29		315
Commissions and distribution related payments	71		11		116		43		66		307
Amortization of deferred policy acquisition costs	75		10		—		50		2		137
Compensation, benefits and other operating costs and expenses	114		54		547		75		58		848
Interest Expense and Financing Fees	—		—		3		—		59		62
Segment benefits and other deductions	635		151		666		714		400		2,566
Operating earnings (loss), before income taxes	438		116		182		129		(100)		765
Income Taxes	(79)		(21)		(33)		(23)		20		(136)
Operating earnings (loss), before noncontrolling interest	359		95		149		106		(80)		629
Less: Operating (earnings) loss attributable to the noncontrolling interest	—		—		(69)		—		(1)		(70)
Operating earnings (loss)	$	359	$	95	$	80	$	106	$	(81)	$	559


2Q 2020 Financial Supplement						8


Operating Earnings (Loss) by Segment and Corporate and Other

	Six Months Ended June 30, 2020
(in millions USD, unless otherwise indicated)	Individual Retirement		Group Retirement		Inv Mgmt and Research		Protection Solutions		Corporate and Other		Consolidated
Revenues
Policy charges, fee income and premiums	$	994	$	139	$	—	$	1,026	$	201	$	2,360
Net investment income (loss)	582		286		(1)		448		217		1,532
Net derivative gains (losses)	373		4		(1)		7		(3)		380
Investment Management, service fees and other income	341		99		1,753		108		167		2,468
Segment revenues	2,290		528		1,751		1,589		582		6,740
Benefits and other deductions
Policyholders’ benefits	765		1		—		962		341		2,069
Interest credited to policyholders’ account balances	163		150		—		264		53		630
Commissions and distribution related payments	132		24		266		75		143		640
Amortization of deferred policy acquisition costs	160		14		—		87		—		261
Compensation, benefits and other operating costs and expenses	193		101		1,081		169		132		1,676
Interest expense and financing fees	—		—		4		—		108		112
Segment benefits and other deductions	1,413		290		1,351		1,557		777		5,388
Operating earnings (loss), before income taxes	877		238		400		32		(195)		1,352
Income Taxes	(155)		(42)		(69)		(6)		35		(237)
Operating earnings (loss), before noncontrolling interest	722		196		331		26		(160)		1,115
Less: Operating (earnings) loss attributable to the noncontrolling interest	—		—		(144)		—		3		(141)
Operating earnings (loss)	$	722	$	196	$	187	$	26	$	(157)	$	974

	Six Months Ended June 30, 2019
	Individual Retirement		Group Retirement		Inv Mgmt and Research		Protection Solutions		Corporate and Other		Consolidated
Revenues
Policy charges, fee income and premiums	$	1,022	$	134	$	—	$	1,072	$	207	$	2,435
Net investment income (loss)	548		284		39		472		268		1,611
Net derivative gains (losses)	150		2		(29)		11		(5)		129
Investment Management, service fees and other income	360		98		1,618		119		142		2,337
Segment revenues	2,080		518		1,628		1,674		612		6,512
Benefits and other deductions
Policyholders’ benefits	535		1		—		871		370		1,777
Interest credited to policyholders’ account balances	146		148		—		265		59		618
Commissions and distribution related payments	137		21		222		81		127		588
Amortization of deferred policy acquisition costs	158		22		—		100		(5)		275
Compensation, benefits and other operating costs and expenses	225		114		1,056		170		126		1,691
Interest Expense and Financing Fees	—		—		7		—		111		118
Segment benefits and other deductions	1,201		306		1,285		1,487		788		5,067
Operating earnings (loss), before income taxes	879		212		343		187		(176)		1,445
Income Taxes	(150)		(36)		(62)		(32)		31		(249)
Operating earnings (loss), before noncontrolling interest	729		176		281		155		(145)		1,196
Less: Operating (earnings) loss attributable to the noncontrolling interest	—		—		(124)		—		(4)		(128)
Operating earnings (loss)	$	729	$	176	$	157	$	155	$	(149)	$	1,068


2Q 2020 Financial Supplement						9

Assets Under Management and Administration


	Balances as of
(in billions USD, except for Equitable Headcount)	6/30/2019		9/30/2019		12/31/2019		3/31/2020		6/30/2020

Assets Under Management

AB AUM
Total AB	$	580.8	$	592.4	$	622.9	$	541.8	$	600.0
Exclusion for General Account and other Affiliated Accounts	(66.8)		(75.2)		(74.4)		(77.4)		(82.9)
Exclusion for Separate Accounts	(37.0)		(36.6)		(38.5)		(30.9)		(35.6)
AB third party	$	477.0	$	480.6	$	509.9	$	433.5	$	481.5

Total company AUM
AB third party	$	477.0	$	480.6	$	509.9	$	433.5	$	481.5
General Account and other Affiliated Accounts	91.6		99.2		97.7		106.5		111.1
Separate Accounts	122.4		121.0		126.9		106.1		118.9
Total AUM	$	691.1	$	700.8	$	734.6	$	646.2	$	711.5

Total Assets Under Administration (AUA) (1)	$	50.1	$	50.8	$	54.1	$	47.9	$	53.5

Equitable Advisor Headcount
Total Number of Equitable Advisors	4,360		4,330		4,487		4,357		4,333

Notes:
(1) AUA includes Equitable Advisors Advisory and Brokerage AUA; Equitable Advisors broker-dealer business is included in Corporate and Other.


2Q 2020 Financial Supplement						10

Sales Metrics by Segment


	For the Three Months Ended																		Six Months Ended
(in millions USD, unless otherwise indicated)	6/30/2019		9/30/2019		12/31/2019		3/31/2020		6/30/2020		Change		6/30/2019		6/30/2020		Change

Insurance Operations

Individual Retirement
First year premiums and deposits	$	2,093	$	2,062	$	2,157	$	1,918	$	1,631	(22.0)	%	$	3,972	$	3,549	(10.6)	%
Renewal premium and deposits	92		80		82		76		91		(1.5)	%	187		167		(10.9)	%
Total Gross Premiums	$	2,185	$	2,142	$	2,239	$	1,994	$	1,722	(21.2)	%	$	4,159	$	3,716	(10.7)	%

Group Retirement
First year premiums and deposits	$	358	$	332	$	469	$	364	$	226	(36.8)	%	$	687	$	590	(14.1)	%
Renewal premium and deposits	552		438		544		561		570		3.3	%	1,063		1,131		6.4	%
Total Gross Premiums	$	910	$	770	$	1,013	$	925	$	796	(12.5)	%	$	1,750	$	1,721	(1.6)	%

Protection Solutions
First year premiums and deposits	$	113	$	113	$	122	$	99	$	89	(21.3)	%	$	223	$	188	(15.7)	%
Renewal premium and deposits	633		664		668		679		604		(4.6)	%	1,309		1,283		(1.9)	%
Total Gross Premiums	$	746	$	777	$	790	$	778	$	693	(7.1)	%	$	1,532	$	1,471	(3.9)	%

Investment Management and Research (in billions USD)
Gross Sales by distribution channel
Institutional	$	5.5	$	2.9	$	5.4	$	3.9	$	8.8	60.0	%	$	8.8	$	12.7	44.3	%
Retail	18.8		21.1		18.9		24.2		19.6		4.3	%	35.2		43.8		24.4	%
Private Wealth Management (3)	3.0		2.3		2.7		3.5		3.4		13.3	%	6.3		7.0		11.1	%
Firmwide Gross Sales (3)	$	27.3	$	26.3	$	27.0	$	31.6	$	31.8	16.5	%	$	50.3	$	63.5	26.2	%

Gross sales by investment service
Equity Active	$	8.8	$	6.9	$	10.9	$	12.1	$	13.8	56.8	%	$	16.7	25.9		55.1	%
Equity Passive (1)	—		0.3		0.3		0.4		—		—	%	(0.1)		0.4		500.0	%
Fixed Income - Taxable	13.1		16.2		12.2		14.7		15.0		14.5	%	24.6		29.7		20.7	%
Fixed Income - Tax-Exempt	2.6		2.5		2.4		2.9		2.3		(11.5)	%	5.2		5.2		—	%
Fixed Income Passive (1) (3)	0.1		—		—		—		—		(100.0)	%	0.1		0.1		—	%
Other (2)	2.8		0.4		1.2		1.5		0.7		(75.0)	%	3.8		2.2		(42.1)	%
Firmwide Gross Sales (3)	$	27.3	$	26.3	$	27.0	$	31.6	$	31.8	16.5	%	$	50.3	$	63.5	26.2	%

Notes:
(1) Includes index and enhanced index services.
(2) Includes certain multi-asset solutions and services and certain alternative investments.
(3) AB line item does not cross foot due to rounding.


2Q 2020 Financial Supplement						11

Business Segments:

Operating Earnings Results and Metrics


2Q 2020 Financial Supplement						12

Individual Retirement - Operating Earnings (Loss) and Summary Metrics


	For the Three Months Ended or As of																									Six Months Ended or As of
(in millions USD, unless otherwise indicated)	6/30/2019			9/30/2019			12/31/2019			3/31/2020			6/30/2020			Change		6/30/2019			6/30/2020			Change

Revenues
Policy charges, fee income and premiums	$	524		$	538		$	525		$	501		$	493		(5.9)	%	$	1,022		$	994		(2.7)	%
Net investment income (loss)	280			287			313			316			266			(5.0)	%	548			582			6.2	%
Net derivative gains (losses)	87			175			52			487			(114)			(231.0)	%	150			373			148.7	%
Investment management, service fees and other income	182			186			184			177			164			(9.9)	%	360			341			(5.3)	%
Segment revenues	1,073			1,186			1,074			1,481			809			(24.6)	%	2,080			2,290			10.1	%

Benefits and other deductions
Policyholders’ benefits	291			391			282			679			86			(70.4)	%	535			765			43.0	%
Interest credited to policyholders’ account balances	84			61			81			82			81			(3.6)	%	146			163			11.6	%
Commissions and distribution-related payments	71			72			72			72			60			(15.5)	%	137			132			(3.6)	%
Amortization of deferred policy acquisition costs	75			10			52			88			72			(4.0)	%	158			160			1.3	%
Compensation and benefits, interest expense and financing fees and other operating costs and expense	114			100			110			107			86			(24.6)	%	225			193			(14.2)	%
Segment benefits and other deductions	635			634			597			1,028			385			(39.4)	%	1,201			1,413			17.7	%

Operating earnings (loss), before income taxes	438			552			477			453			424			(3.2)	%	879			877			(0.2)	%
Income taxes	(79)			(95)			(86)			(81)			(74)			6.3	%	(150)			(155)			(3.3)	%
Operating earnings (loss), before noncontrolling interest	359			457			391			372			350			(2.5)	%	729			722			(1.0)	%
Less: Operating (earnings) loss attributable to the noncontrolling interest	—			—			—			—			—			—	%	—			—			—	%
Operating earnings (loss)	$	359		$	457		$	391		$	372		$	350		(2.5)	%	$	729		$	722		(1.0)	%

Summary Metrics

Operating earnings (loss) - TTM: [A]	$	1,511		$	1,534		$	1,577		$	1,579		$	1,570		3.9	%	$	1,511		$	1,570		3.9	%
Average capital - TTM: [B]	$	6,917		$	7,180		$	7,362		$	7,327		$	7,008		1.3	%	$	6,917		$	7,008		1.3	%
Non-GAAP Operating ROC - TTM (1): [A/B]	21.8		%	21.4		%	21.4		%	21.6		%	22.4		%			21.8		%	22.4		%

Average Account Value	$	103,402		$	104,143		$	106,450		$	101,256		$	98,715		(4.5)	%	$	99,448		$	106,381		7.0	%

Return on assets	1.73		%	1.76		%	1.79		%	1.90		%	1.93		%			1.80		%	1.79		%

Net flows
Current Product Offering	$	845		$	802		$	842		$	615		$	656		(22.3)	%	$	1,686		$	1,271		(24.6)	%
Fixed Rate	(937)			(925)			(1,038)			(935)			(709)			24.3	%	(1,866)			(1,644)			11.9	%
Net flows	$	(92)		$	(123)		$	(196)		$	(320)		$	(53)		42.6	%	$	(180)		$	(373)		(106.9)	%

First year premiums and deposits	$	2,093		$	2,062		$	2,157		$	1,918		$	1,631		(22.0)	%	$	3,972		$	3,549		(10.6)	%

In-force Policy Count by Product (in thousands):
Fixed rate	365			360			357			351			347					365			347
Current product offering	542			546			549			553			556					542			556
Total	907			906			906			904			903					907			903

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” and "Glossary of Selected Financial and Product Terms" sections of this document.


2Q 2020 Financial Supplement						13


Individual Retirement - Select Operating Metrics
	For the Three Months Ended or As of														Six Months Ended or As of
(in millions USD, unless otherwise indicated)	6/30/2019		9/30/2019		12/31/2019		3/31/2020		6/30/2020		6/30/2019		6/30/2020

Sales Metrics
First Year Premiums by Product:
SCS	$	1,302	$	1,305	$	1,425	$	1,227	$	987	$	2,408	$	2,214
Retirement Cornerstone	543		522		507		461		465		1,126		926
Investment Edge	152		146		141		132		89		262		221
Other	96		89		84		98		90		176		188
Total First Year Premiums	$	2,093	$	2,062	$	2,157	$	1,918	$	1,631	$	3,972	$	3,549

First Year Premiums by Guarantee:
Non-GMxB	$	1,433	$	1,483	$	1,573	$	1,377	$	1,093	$	2,672	$	2,470
ROP death benefit only	165		118		149		135		119		284		254
Total non-GMxB & ROP death benefit only	1,598		1,601		1,722		1,512		1,212		2,956		2,724
Floating rate GMxB	479		449		425		398		409		990		807
Fixed rate GMxB	16		12		10		8		10		26		18
Total First Year Premiums	$	2,093	$	2,062	$	2,157	$	1,918	$	1,631	$	3,972	$	3,549

Account Values
General Account:
Balance as of beginning of period	$	22,677	$	23,455	$	24,409	$	26,108	$	23,862	$	20,631	$	26,108
Gross premiums	1,268		1,273		1,315		1,376		956		2,445		2,332
Surrenders, withdrawals and benefits	(501)		(474)		(477)		(477)		(378)		(974)		(855)
Net flows	767		799		838		899		578		1,471		1,477
Investment performance, interest credited and policy charges	469		155		861		(3,136)		2,635		1,811		(501)
Transfer to Corp & Other	(458)		—		—		—		—		(458)		—
Other (2)	—		—		—		(6)		—		—		(6)
Reclassified to Assets held-for-sale	—		—		—		(3)		—		—		(3)
Balance as of end of period	$	23,455	$	24,409	$	26,108	$	23,862	$	27,075	$	23,455	$	27,075

Separate Accounts:
Balance as of beginning of period	$	79,821	$	80,852	$	79,570	$	82,814	$	69,727	$	73,958	$	82,814
Gross premiums	905		862		911		614		763		1,766		1,377
Surrenders, withdrawals and benefits	(1,764)		(1,784)		(1,945)		(1,833)		(1,394)		(3,417)		(3,227)
Net flows	(859)		(922)		(1,034)		(1,219)		(631)		(1,651)		(1,850)
Investment performance, interest credited and policy charges	1,890		(360)		4,278		(11,868)		7,669		8,545		(4,199)
Transfer to Corp & Other	—		—		—		—		—		—		—
Other (2)	—		—		—		—		—		—		—
Reclassified to Assets held-for-sale	—		—		—		—		—		—		—
Balance as of end of period	$	80,852	$	79,570	$	82,814	$	69,727	$	76,765	$	80,852	$	76,765

Total:
Balance as of beginning of period	$	102,498	$	104,307	$	103,979	$	108,922	$	93,589	$	94,589	$	108,922
Gross premiums (1)	2,173		2,135		2,226		1,990		1,719		4,211		3,709
Surrenders, withdrawals and benefits	(2,265)		(2,258)		(2,422)		(2,310)		(1,772)		(4,391)		(4,082)
Net flows	(92)		(123)		(196)		(320)		(53)		(180)		(373)
Investment performance, interest credited and policy charges	2,359		(205)		5,139		(15,004)		10,304		10,356		(4,700)
Transfer to Corp & Other	(458)		—		—		—		—		(458)		—
Other (2)	—		—		—		(6)		—		—		(6)
Reclassified to Assets held-for-sale	—		—		—		(3)		—		—		(3)
Balance as of end of period	$	104,307	$	103,979	$	108,922	$	93,589	$	103,840	$	104,307	$	103,840

Net Amount at Risk (NAR)
Total GMIB NAR	$	8,577	$	9,980	$	8,746	$	16,184	$	14,234	$	8,577	$	14,234
Total GMDB NAR	19,697		20,399		19,122		25,791		22,134		19,697		22,134
Reserves (Net of Reinsurance)

GMIB Reserves	$	8,481	$	11,433	$	10,675	$	12,779	$	15,297	$	8,481	$	15,297
GMDB Reserves	4,606		4,663		4,677		4,939		4,908		4,606		4,908
Total GMDB/IB Variable Annuity Reserves (Net of Reinsurance)	$	13,087	$	16,096	$	15,352	$	17,718	$	20,205	$	13,087	$	20,205

Notes:
(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.


2Q 2020 Financial Supplement						14

Group Retirement - Operating Earnings (Loss) and Summary Metrics


	For the Three Months Ended or As of																									Six Months Ended or As of
(in millions USD, unless otherwise indicated)	6/30/2019			9/30/2019			12/31/2019			3/31/2020			6/30/2020			Change		6/30/2019			6/30/2020			Change

Revenues
Policy charges, fee income and premiums	$	69		$	72		$	73		$	71		$	68		(1.4)	%	$	134		$	139		3.7	%
Net investment income (loss)	150			148			158			159			127			(15.3)	%	284			286			0.7	%
Net derivative gains (losses)	(2)			1			1			—			4			300.0	%	2			4			100.0	%
Investment management, service fees and other income	50			51			55			52			47			(6.0)	%	98			99			1.0	%
Segment revenues	267			272			287			282			246			(7.9)	%	518			528			1.9	%

Benefits and other deductions
Policyholder benefits	1			—			1			—			1			—	%	1			1			—	%
Interest credited to policyholders’ account balances	75			78			76			76			74			(1.3)	%	148			150			1.4	%
Commissions and distribution-related payments	11			9			12			11			13			18.2	%	21			24			14.3	%
Amortization of deferred policy acquisition costs	10			5			8			12			2			(80.0)	%	22			14			(36.4)	%
Compensation and benefits, interest expense and financing fees and other operating costs and expense	54			54			56			54			47			(13.0)	%	114			101			(11.4)	%
Segment benefits and other deductions	151			146			153			153			137			(9.3)	%	306			290			(5.2)	%

Operating earnings (loss), before income taxes	116			126			134			129			109			(6.0)	%	212			238			12.3	%
Income taxes	(21)			(22)			(24)			(23)			(19)			9.5	%	(36)			(42)			(16.7)	%
Operating earnings (loss), before noncontrolling interest	95			104			110			106			90			(5.3)	%	176			196			11.4	%
Less: Operating (earnings) loss attributable to the noncontrolling interest	—			—			—			—			—			—	%	—			—			—	%
Operating earnings (loss)	$	95		$	104		$	110		$	106		$	90		(5.3)	%	$	176		$	196		11.4	%

Summary Metrics

Operating earnings (loss) - TTM: [A]	$	412		$	382		$	390		$	415		$	410		N/M		$	412		$	410		(0.5)	%
Average capital - TTM: [B]	$	1,285		$	1,310		$	1,335		$	1,271		$	1,204		N/M		$	1,285		$	1,204		(6.3)	%
Non-GAAP Operating ROC - TTM (1): [A/B]	32.1		%	29.2		%	29.2		%	32.7		%	34.1		%			32.1		%	34.1		%

Average Account Value	$	35,567		$	36,059		$	36,971		$	35,514		$	35,119		(1.3)	%	$	34,229		$	37,485		9.5	%

Return on assets	1.38		%	1.27		%	1.28		%	1.42		%	1.42		%			1.43		%	1.33		%

Net flows	$	164		$	(23)		$	19		$	128		$	216		31.8	%	$	271		$	344		27.1	%

Gross premiums	$	910		$	770		$	1,013		$	925		$	796		(12.5)	%	$	1,750		$	1,721		(1.6)	%

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” and "Glossary of Selected Financial and Product Terms" sections of this document.


2Q 2020 Financial Supplement						15

Group Retirement - Select Operating Metrics


	For the Three Months Ended or As of														Six Months Ended or As of
(in millions USD, unless otherwise indicated)	6/30/2019		9/30/2019		12/31/2019		3/31/2020		6/30/2020		6/30/2019		6/30/2020

Sales Metrics
Gross premiums:
First-year premiums	$	358	$	332	$	469	$	364	$	226	$	687	$	590
Renewal premiums	552		438		544		561		570		1,063		1,131
Group Retirement premiums	$	910	$	770	$	1,013	$	925	$	796	$	1,750	$	1,721

Gross premiums by market:
Tax-exempt	$	223	$	224	$	257	$	214	$	162	$	421	$	376
Corporate	122		93		199		135		55		245		190
Other	13		15		13		15		9		21		24
Total First Year Premiums	358		332		469		364		226		687		590
Tax-exempt	420		313		422		412		448		796		860
Corporate	82		83		78		89		81		169		170
Other	50		42		44		60		41		98		101
Total renewal premiums	552		438		544		561		570		1,063		1,131
Group Retirement premiums by market	$	910	$	770	$	1,013	$	925	$	796	$	1,750	$	1,721

Account Values
General Account:
Balance as of beginning of period	$	11,752	$	11,892	$	12,018	$	12,071	$	12,257	$	11,619	$	12,071
Gross premiums	321		340		312		447		259		626		706
Surrenders, withdrawals and benefits	(264)		(292)		(346)		(280)		(217)		(531)		(497)
Net flows	57		48		(34)		167		42		95		209
Investment performance, interest credited and policy charges	83		78		87		19		121		178		140
Balance as of end of period	$	11,892	$	12,018	$	12,071	$	12,257	$	12,420	$	11,892	$	12,420

Separate Accounts:
Balance as of beginning of period	$	23,325	$	24,165	$	24,043	$	25,809	$	20,891	$	20,782	$	25,809
Gross premiums	589		430		702		478		537		1,124		1,015
Surrenders, withdrawals and benefits	(482)		(501)		(649)		(517)		(363)		(948)		(880)
Net flows	107		(71)		53		(39)		174		176		135
Investment performance, interest credited and policy charges	733		(51)		1,713		(4,879)		3,605		3,207		(1,274)
Balance as of end of period	$	24,165	$	24,043	$	25,809	$	20,891	$	24,670	$	24,165	$	24,670

Total:
Balance as of beginning of period	$	35,077	$	36,057	$	36,061	$	37,880	$	33,148	$	32,401	$	37,880
Gross premiums	910		770		1,014		925		796		1,750		1,721
Surrenders, withdrawals and benefits	(746)		(793)		(995)		(797)		(580)		(1,479)		(1,377)
Net flows	164		(23)		19		128		216		271		344
Investment performance, interest credited and policy charges	816		27		1,800		(4,860)		3,726		3,385		(1,134)
Balance as of end of period	$	36,057	$	36,061	$	37,880	$	33,148	$	37,090	$	36,057	$	37,090


2Q 2020 Financial Supplement						16

Investment Management and Research - Operating Earnings (Loss) and Summary Metrics


	For the Three Months Ended or As of																									Six Months Ended or As of
(in millions USD, unless otherwise indicated)	6/30/2019			9/30/2019			12/31/2019			3/31/2020			6/30/2020			Change		6/30/2019			6/30/2020			Change

Revenues
Net investment income (loss)	$	15		$	5		$	13		$	(33)		$	32		113.3	%	$	39		$	(1)		(102.6)	%
Net derivative gains (losses)	(9)			—			(9)			30			(31)			(244.4)	%	(29)			(1)			96.6	%
Investment management, service fees and other income	842			867			975			910			843			0.1	%	1,618			1,753			8.3	%
Segment Revenues	848			872			979			907			844			(0.5)	%	1,628			1,751			7.6	%

Benefits and other deductions
Commissions and distribution-related payments	116			128			138			140			126			8.6	%	222			266			19.8	%
Compensation, benefits and other operating costs and expenses	547			542			576			558			523			(4.4)	%	1,056			1,081			2.4	%
Interest expense and financing fees	3			2			1			2			2			(33.3)	%	7			4			(42.9)	%
Total benefits and other deductions	666			672			715			700			651			(2.3)	%	1,285			1,351			5.1	%

Operating earnings (loss), before income taxes	182			200			264			207			193			6.0	%	343			400			16.6	%
Income taxes	(33)			(38)			(44)			(37)			(32)			3.0	%	(62)			(69)			(11.3)	%
Operating earnings (loss), before noncontrolling interest	149			162			220			170			161			8.1	%	281			331			17.8	%
Less: Operating (earnings) loss attributable to the noncontrolling interest	(69)			(69)			(89)			(75)			(69)			—	%	(124)			(144)			(16.1)	%
Operating earnings (loss)	$	80		$	93		$	131		$	95		$	92		15.0	%	$	157		$	187		19.1	%

Summary Metrics

Adjusted operating margin (1)	25.1		%	27.5		%	32.3		%	27.6		%	27.9		%			24.7		%	27.8		%

Net flows (in billions USD)	$	9.5		$	8.1		$	6.5		$	(5.6)		$	(3.3)				$	10.6		$	(8.9)

Total AUM (in billions USD)	$	580.8		$	592.4		$	622.9		$	541.8		$	600.0				$	580.8		$	600.0

Ownership Structure of AB

Holdings and its subsidiaries	63.7		%	63.8		%	63.3		%	63.4		%	63.7		%			63.7		%	63.7		%
AB Holding	35.6		%	35.4		%	36.0		%	35.9		%	35.5		%			35.6		%	35.5		%
Unaffiliated holders	0.7		%	0.8		%	0.7		%	0.7		%	0.8		%			0.7		%	0.8		%
Total	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%			100.0		%	100.0		%

EQH economic interest	65.2		%	65.3		%	64.8		%	64.9		%	65.2		%			65.2		%	65.2		%
EQH average economic interest	65.2		%	65.3		%	65.2		%	64.8		%	65.2		%			65.4		%	65.0		%

Units of limited partnership outstanding (in millions)	268.8			268.2			270.4			270.0			268.6					268.8			268.6
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.


2Q 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)	6/30/2019		9/30/2019		12/31/2019		3/31/2020		6/30/2020

AUM Roll-forward
Balance as of beginning of period	$	554.7	$	580.8	$	592.4	$	622.9	$	541.8
Sales/new accounts	27.3		26.3		27.0		31.6		31.8
Redemptions/terminations	(16.1)		(18.6)		(15.6)		(32.7)		(31.4)
Cash flow/unreinvested dividends	(1.7)		0.4		(4.9)		(4.5)		(3.7)
Net long-term (outflows) inflows	9.5		8.1		6.5		(5.6)		(3.3)
Adjustments (1)	(0.9)		—		—		0.2		—
Market appreciation (depreciation)	17.5		3.5		24.0		(75.7)		61.5
Net change	26.1		11.6		30.5		(81.1)		58.2
Balance as of end of period	$	580.8	$	592.4	$	622.9	$	541.8	$	600.0

Ending Assets by distribution channel
Institutions	$	269.1	$	272.9	$	282.7	$	256.7	$	276.2
Retail	214.5		222.5		239.2		198.6		229.5
Private Wealth Management	97.2		97.0		101.0		86.5		94.3
Total	$	580.8	$	592.4	$	622.9	$	541.8	$	600.0

Ending Assets by investment service
Equity
Actively Managed	$	161.8	$	159.9	$	177.2	$	141.5	$	173.1
Passively Managed (2)	57.4		56.8		60.1		47.2		54.3
Total Equity	$	219.2	$	216.7	$	237.3	$	188.7	$	227.4
Fixed Income
Actively Managed	$	285.1	$	298.7	$	305.4	$	282.0	$	295.0
Passively Managed (2)	9.5		9.4		9.3		10.3		9.9
Total Fixed Income	294.6		308.1		314.7		292.3		304.9
Total Other (3)	67.0		67.6		70.9		60.8		67.7
Total	$	580.8	$	592.4	$	622.9	$	541.8	$	600.0

Notes:
(1) Approximately $900 million of non-investment management fee earning taxable and tax-exempt money market assets were removed from assets under management during the second quarter of 2019.
(2) Includes index and enhanced index services.
(3) Includes certain multi-asset solutions and services and certain alternative investments.


2Q 2020 Financial Supplement						18


Investment Management and Research - Net Flows
	For the Three Months Ended														Six Months Ended or As of
(in billions USD, unless otherwise indicated)	6/30/2019		9/30/2019		12/31/2019		3/31/2020		6/30/2020		6/30/2019		6/30/2020
Net Flows by Distribution Channel
Institutions
US	$	1.0	$	6.6	$	(1.1)	$	0.9	$	(4.8)	$	(2.1)	$	(3.9)
Global and Non-US	3.2		(5.1)		2.5		(0.5)		(1.6)		1.6		(2.1)
Total Institutions	$	4.2	$	1.5	$	1.4	$	0.4	$	(6.4)	$	(0.5)	$	(6.0)
Retail
US	$	0.5	$	1.0	$	1.7	$	(0.9)	$	1.7	$	2.2	$	0.8
Global and Non-US	5.4		6.4		3.5		(4.5)		2.1		9.0		(2.4)
Total Retail	$	5.9	$	7.4	$	5.2	$	(5.4)	$	3.8	$	11.2	$	(1.6)
Private Wealth
US	$	(0.5)	$	(0.6)	$	0.2	$	(0.4)	$	(0.2)	$	(0.4)	$	(0.6)
Global and Non-US	(0.1)		(0.2)		(0.3)		(0.2)		(0.5)		0.3		(0.7)
Total Private Wealth	$	(0.6)	$	(0.8)	$	(0.1)	$	(0.6)	$	(0.7)	$	(0.1)	$	(1.3)
Total Net Flows by Distribution Channel	$	9.5	$	8.1	$	6.5	$	(5.6)	$	(3.3)	$	10.6	$	(8.9)
Net Flows by Investment Service
Equity Active
US	$	0.5	$	0.6	$	1.1	$	(0.4)	$	2.2	$	0.5	$	1.8
Global and Non-US	0.5		(2.0)		2.2		1.8		0.6		1.5		2.4
Total Equity Active	$	1.0	$	(1.4)	$	3.3	$	1.4	$	2.8	$	2.0	$	4.2
Equity Passive (1)
US (3)	$	(0.5)	$	(0.9)	$	(1.4)	$	0.1	$	(1.6)	$	(1.3)	$	(1.4)
Global and Non-US (3)	(0.1)		(0.2)		(0.2)		(1.4)		0.1		(0.1)		(1.4)
Total Equity Passive (1)	$	(0.6)	$	(1.1)	$	(1.6)	$	(1.3)	$	(1.5)	$	(1.4)	$	(2.8)
Fixed Income - Taxable
US	$	0.9	$	6.6	$	(0.1)	$	0.2	$	(3.9)	$	(1.2)	$	(3.7)
Global and Non-US	6.0		2.8		3.3		(6.6)		(1.2)		7.3		(7.8)
Total Fixed Income - Taxable	$	6.9	$	9.4	$	3.2	$	(6.4)	$	(5.1)	$	6.1	$	(11.5)
Fixed Income - Tax-Exempt
US	$	0.1	$	1.0	$	1.0	$	—	$	(0.3)	$	1.0	$	(0.3)
Global and Non-US	—		—		—		—		—		—		—
Total Fixed Income - Tax-Exempt	$	0.1	$	1.0	$	1.0	$	—	$	(0.3)	$	1.0	$	(0.3)
Fixed Income - Passive (1)
US	$	(0.1)	$	(0.1)	$	(0.1)	$	(0.2)	$	(0.1)	$	(0.1)	$	(0.3)
Global and Non-US	(0.1)		(0.1)		(0.1)		0.9		(0.5)		(0.4)		0.4
Total Fixed Income - Passive (1)	$	(0.2)	$	(0.2)	$	(0.2)	$	0.7	$	(0.6)	$	(0.5)	$	0.1
Other (2)
US (3)	$	0.1	$	(0.2)	$	0.3	$	(0.1)	$	0.4	$	1.0	$	0.2
Global and Non-US (3)	2.2		0.6		0.5		0.1		1.0		2.4		1.2
Total Other (2)	$	2.3	$	0.4	$	0.8	$	—	$	1.4	$	3.4	$	1.4
Total Net Flows by Investment Service	$	9.5	$	8.1	$	6.5	$	(5.6)	$	(3.3)	$	10.6	$	(8.9)
Active vs. Passive Net Flows
Actively Managed
Equity	$	1.0	$	(1.4)	$	3.3	$	1.4	$	2.8	$	2.0	$	4.2
Fixed Income	7.0		10.4		4.2		(6.4)		(5.4)		7.1		(11.8)
Other (2)	2.2		0.3		0.6		(0.2)		1.3		3.2		1.1
Total	$	10.2	$	9.3	$	8.1	$	(5.2)	$	(1.3)	$	12.3	$	(6.5)
Passively Managed (1)
Equity	$	(0.6)	$	(1.1)	$	(1.6)	$	(1.3)	$	(1.5)	$	(1.4)	$	(2.8)
Fixed Income (3)	(0.2)		(0.2)		(0.2)		0.7		(0.6)		(0.5)		0.1
Other (2)	0.1		0.1		0.2		0.2		0.1		0.2		0.3
Total	$	(0.7)	$	(1.2)	$	(1.6)	$	(0.4)	$	(2.0)	$	(1.7)	$	(2.4)
Total Active vs Passive Net Flows	$	9.5	$	8.1	$	6.5	$	(5.6)	$	(3.3)	$	10.6	$	(8.9)
Notes:
(1) Includes index and enhanced index services.
(2) Includes certain multi-asset solutions and services and certain alternative investments.
(3) AB line item does not cross foot due to rounding.


2Q 2020 Financial Supplement						19

Protection Solutions - Operating Earnings (Loss) and Summary Metrics


	For the Three Months Ended or As of																									Six Months Ended or As of
(in millions USD, unless otherwise indicated)	6/30/2019			9/30/2019			12/31/2019			3/31/2020			6/30/2020			Change		6/30/2019			6/30/2020			Change

Revenues
Policy charges, fee income and premiums	$	530		$	503		$	532		$	557		$	469		(11.5)	%	$	1,072		$	1,026		(4.3)	%
Net investment income (loss)	248			242			253			244			204			(17.7)	%	472			448			(5.1)	%
Net derivative gains (losses)	1			(1)			—			2			5			400.0	%	11			7			(36.4)	%
Investment management, service fees and other income	64			59			63			56			52			(18.8)	%	119			108			(9.2)	%
Segment revenues	843			803			848			859			730			(13.4)	%	1,674			1,589			(5.1)	%

Benefits and other deductions
Policyholders’ benefits	419			355			377			502			460			9.8	%	871			962			10.4	%
Interest credited to policyholders’ account balances	127			131			124			127			137			7.9	%	265			264			(0.4)	%
Commissions and distribution-related payments	43			41			44			40			35			(18.6)	%	81			75			(7.4)	%
Amortization of deferred policy acquisition costs	50			56			55			56			31			(38.0)	%	100			87			(13.0)	%
Compensation and benefits, interest expense and financing fees and other operating costs and expense	75			84			92			88			81			8.0	%	170			169			(0.6)	%
Segment benefits and other deductions	714			667			692			813			744			4.2	%	1,487			1,557			4.7	%

Operating earnings (loss), before income taxes	129			136			156			46			(14)			(110.9)	%	187			32			(82.9)	%
Income taxes	(23)			(23)			(28)			(8)			2			108.7	%	(32)			(6)			81.3	%
Operating earnings (loss), before noncontrolling interest	106			113			128			38			(12)			(111.3)	%	155			26			(83.2)	%
Less: Operating (earnings) loss attributable to the noncontrolling interest	—			—			—			—			—			—	%	—			—			—	%
Operating earnings (loss)	$	106		$	113		$	128		$	38		$	(12)		(111.3)	%	$	155		$	26		(83.2)	%

Summary Metrics

Operating earnings (loss) - TTM: [A]	$	329		$	305		$	396		$	385		$	267		N/M		$	329		$	267		N/M
Average capital - TTM: [B]	$	2,870		$	2,933		$	2,995		$	2,820		$	2,654		N/M		$	2,870		$	2,654		N/M
Non-GAAP Operating ROC - TTM (1): [A/B]	11.5		%	10.4		%	13.2		%	13.7		%	10.0		%			11.5		%	10.0		%

Benefit ratio	64.8		%	60.5		%	59.1		%	73.2		%	81.8		%			67.9		%	77.2		%

Gross written premiums	$	746		$	777		$	790		$	778		$	693		(7.1)	%	$	1,532		$	1,471		(3.9)	%

Annualized premiums	$	63		$	61		$	70		$	56		$	57		(9.6)	%	$	127		$	113		(11.0)	%

Total in-force face amount (in billions USD)	$	442.7		$	442.3		$	441.5		$	435.1		$	411.0		(7.2)	%	$	442.7		$	411.0		(7.2)	%

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” and "Glossary of Selected Financial and Product Terms" sections of this document.


2Q 2020 Financial Supplement						20

Protection Solutions - Select Operating Metrics


	For the Three Months Ended or As of														Six Months Ended or As of
(in millions USD, unless otherwise indicated)	6/30/2019		9/30/2019		12/31/2019		3/31/2020		6/30/2020		6/30/2019		6/30/2020

Sales Metrics
First Year Premiums by Product Line:
Universal Life	$	—	$	1	$	1	$	—	$	—	$	1	$	—
Indexed Universal Life	50		51		56		49		41		95		90
Variable Universal Life	43		42		49		35		29		89		64
Term	5		5		5		4		5		10		9
Employee Benefits	15		13		11		11		14		28		25
Other (1)	—		1		—		—		—		—		—
Total	$	113	$	113	$	122	$	99	$	89	$	223	$	188

Renewals by Product Line:
Universal Life	$	218	$	239	$	212	$	216	$	201	$	443	$	417
Indexed Universal Life	59		60		59		72		67		129		139
Variable Universal Life	222		221		237		243		225		464		468
Term	117		125		135		120		83		238		203
Employee Benefits	12		14		18		23		24		24		47
Other (1)	5		5		7		5		4		11		9
Total	633		664		668		679		604		1,309		1,283
Total Gross Premiums	$	746	$	777	$	790	$	778	$	693	$	1,532	$	1,471

In-force Metrics
In-force Face Amount by Product (2) (in billions):
Universal Life (3)	$	54.5	$	53.8	$	53.3	$	52.7	$	49.9	$	54.5	$	49.9
Indexed Universal Life	24.3		24.9		25.8		26.4		27.0		24.3		27.0
Variable Universal Life (4)	127.1		126.8		127.5		126.0		126.4		127.1		126.4
Term	235.4		235.4		233.5		228.7		206.3		235.4		206.3
Whole Life	1.4		1.4		1.4		1.3		1.4		1.4		1.4
Total	$	442.7	$	442.3	$	441.5	$	435.1	$	411.0	$	442.7	$	411.0

In-force Policy Count by Product (2) (in thousands):
Universal Life (3)	173		171		170		164		149		173		149
Indexed Universal Life	54		54		55		60		62		54		62
Variable Universal Life (4)	302		300		299		296		294		302		294
Term	329		326		323		319		267		329		267
Whole Life	18		18		18		18		17		18		17
Total	876		870		865		857		789		876		789

Protection Solutions Reserves
General Account	$	17,716	$	17,819	$	17,298	$	17,275	$	17,930	$	17,716	$	17,930
Separate Accounts	12,903		12,804		13,616		11,259		12,928		12,903		12,928
Total	$	30,619	$	30,623	$	30,914	$	28,534	$	30,858	$	30,619	$	30,858

Notes:
(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.


2Q 2020 Financial Supplement						21

Investments


2Q 2020 Financial Supplement						22

Consolidated Investment Portfolio Composition


	Balances as of
(in millions USD, unless otherwise indicated)	December 31, 2019						June 30, 2020
	Amount (1)		% of Total		Amount (1)		% of Total
Composition of investment portfolio
Fixed maturities, available-for-sale, at fair value	$	66,343	67.9	%	$	76,243	68.7	%
Mortgage loans on real estate	12,107		12.4	%	12,523		11.3	%
Policy loans	3,735		3.8	%	3,689		3.3	%
Other equity investments	1,344		1.4	%	1,342		1.2	%
Other invested assets	2,780		2.8	%	2,280		2.1	%
Subtotal investment assets	86,309		88.3	%	96,077		86.5	%
Trading securities	7,031		7.2	%	6,616		6.0	%
Total investments	93,340		95.5	%	102,693		92.5	%
Cash and cash equivalents	4,405		4.5	%	8,364		7.5	%
Total	$	97,745	100.0	%	$	111,057	100.0	%

General Account Fixed maturities by industry (Based on amortized cost)
Corporate securities:
Finance	$	12,015	19.2	%	$	14,014	20.8	%
Manufacturing	12,643		20.2	%	13,253		19.7	%
Utilities	4,999		8.0	%	5,450		8.1	%
Services	6,730		10.7	%	6,856		10.2	%
Energy	3,772		6.0	%	3,841		5.7	%
Retail and wholesale	3,515		5.6	%	3,641		5.4	%
Transportation	1,793		2.9	%	2,082		3.1	%
Other	198		0.3	%	172		0.3	%
Total corporate securities	45,665		72.8	%	49,309		73.3	%
U.S. government and agency	14,395		23.0	%	13,120		19.5	%
Residential mortgage-backed (2)	178		0.3	%	160		0.2	%
Preferred stock	501		0.8	%	376		0.6	%
State & municipal	638		1.0	%	663		1.0	%
Foreign governments	462		0.7	%	771		1.1	%
Commercial mortgage-backed	—		—	%	854		1.3	%
Asset-backed securities	848		1.4	%	2,062		3.1	%
Total	$	62,687	100.0	%	$	67,315	100.0	%

General Account Fixed maturities credit quality (3) (Based on amortized cost)
Aaa, Aa, A (NAIC Designation 1)	$	42,770	68.2	%	$	44,300	65.8	%
Baa (NAIC Designation 2)	18,605		29.7	%	21,216		31.5	%
Investment grade	61,375		97.9	%	65,516		97.3	%
Below investment grade (NAIC Designation 3,4,5 and 6)	1,312		2.1	%	1,799		2.7	%
Total	$	62,687	100.0	%	$	67,315	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.


2Q 2020 Financial Supplement						23


Consolidated Results of General Account Investment Portfolio


	For the Six Months Ended or As of													Years Ended or As of
(in millions USD, unless otherwise indicated)	June 30, 2019						June 30, 2020						December 31, 2019
	Yield		Amount (1)		Yield		Amount (1)		Yield		Amount (1)
Fixed Maturities:
Income (loss)	3.82	%	$	951	3.54	%	$	1,138	3.68	%	$	2,019
Ending assets			54,315				67,302				62,687
Mortgages:
Income (loss)	4.34	%	262		4.14	%	252		4.47	%	541
Ending assets			12,288				12,523				12,107
Other Equity Investments:
Income (loss)	6.58	%	46		(5.66)	%	(43)		6.33	%	86
Ending assets			1,382				1,497				1,507
Policy Loans:
Income	5.53	%	104		5.51	%	103		5.59	%	210
Ending assets			3,740				3,689				3,735
Cash and Short-term Investments:
Income	0.49	%	8		0.04	%	1		(0.15)	%	(4)
Ending assets			3,296				4,567				1,856
Repurchase and Funding Agreements:
Interest expense and other			(49)				(46)				(110)
Ending (liabilities)			(4,001)				(6,700)				(6,909)
Total invested Assets:
Income	3.99	%	1,322		3.53	%	1,405		3.92	%	2,742
Ending assets			71,020				82,878				74,983
Short Duration Fixed Maturities:
Income (loss)	3.02	%	181		3.35	%	96		3.15	%	312
Ending assets			8,797				5,755				6,173
Total Net Investment Income:
Investment income	3.85	%	1,503		3.51	%	1,501		3.83	%	3,054
Less: investment fees	(0.08)	%	(32)		(0.12)	%	(49)		(0.08)	%	(66)
Investment income, net	3.77	%	$	1,471	3.40	%	$	1,452	3.75	%	$	2,988
General Account Ending Net Assets			$	79,817			$	88,633			$	81,156
Operating Earnings adjustments:
Repurchase and Funding Agreements interest expense			49				46				110
AB and other non-General Account investment income			91				146				204
Operating Net investment income (loss)			$	1,611			$	1,644			$	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.


2Q 2020 Financial Supplement						24

Additional Information


2Q 2020 Financial Supplement						25

Deferred Policy Acquisition Costs Rollforward


	For the Three Months Ended or As of														Six Months Ended or As of
(in millions USD, unless otherwise indicated)	6/30/2019		9/30/2019		12/31/2019		3/31/2020		6/30/2020		6/30/2019		6/30/2020

TOTAL
Beginning balance (1)	$	6,018	$	6,080	$	5,787	$	5,893	$	4,809	$	6,745	$	5,893
Capitalization of commissions, sales and issue expenses	189		182		210		185		156		362		341
Amortization	(177)		(85)		(119)		(1,248)		(183)		(375)		(1,431)
Change in unrealized investment gains and losses	50		(390)		43		(22)		(600)		(652)		(622)
Reclassified to Assets held-for-sale	—		—		(31)		1		—		—		1
Ending balance	$	6,080	$	5,787	$	5,890	$	4,809	$	4,182	$	6,080	$	4,182

Individual Retirement
Beginning balance	$	3,212	$	3,191	$	3,241	$	3,275	$	3,404	$	3,229	$	3,275
Capitalization of commissions, sales and issue expenses	116		111		123		111		94		216		205
Amortization	(115)		(23)		(45)		(100)		(91)		(259)		(191)
Change in unrealized investment gains and losses	(22)		(38)		(44)		118		(270)		5		(152)
Reclassified to Assets held-for-sale	—		—		—		—		—		—		—
Ending balance	$	3,191	$	3,241	$	3,275	$	3,404	$	3,137	$	3,191	$	3,137

Group Retirement
Beginning balance	$	650	$	664	$	674	$	667	$	625	$	657	$	667
Capitalization of commissions, sales and issue expenses	26		22		31		26		19		49		45
Amortization	(10)		(7)		(9)		(59)		(5)		(22)		(64)
Change in unrealized investment gains and losses	(2)		(5)		(29)		(9)		(44)		(20)		(53)
Reclassified to Assets held-for-sale	—		—		—		—		—		—		—
Ending balance	$	664	$	674	$	667	$	625	$	595	$	664	$	595

Protection Solutions
Beginning balance	$	2,061	$	2,185	$	1,856	$	1,935	$	719	$	2,706	$	1,935
Capitalization of commissions, sales and issue expenses	47		49		57		48		43		97		91
Amortization	(50)		(56)		(55)		(1,087)		(90)		(99)		(1,177)
Change in unrealized investment gains and losses	127		(322)		108		(177)		(238)		(519)		(415)
Reclassified to Assets held-for-sale	—		—		(31)		—		—		—		—
Ending balance	$	2,185	$	1,856	$	1,935	$	719	$	434	$	2,185	$	434

Corporate and Other
Beginning balance (1)	$	95	$	40	$	16	$	16	$	61	$	153	$	16
Capitalization of commissions, sales and issue expenses	—		—		(1)		—		—		—		—
Amortization	(2)		1		(10)		(2)		3		5		1
Change in unrealized investment gains and losses	(53)		(25)		8		46		(48)		(118)		(2)
Reclassified to Assets held-for-sale	—		—		—		1		—		—		1
Ending balance	$	40	$	16	$	13	$	61	$	16	$	40	$	16

(1) March 31, 2020 DAC beginning balance is $3 million more than December 31, 2019 ending balance due to impact of CECL.


2Q 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% 2020 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.


2Q 2020 Financial Supplement						27


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.


2Q 2020 Financial Supplement						28

Reconciliation of Non-GAAP Measures (1/3)


	For the Three Months Ended or As of														Six Months Ended or As of
(in millions USD, unless otherwise indicated)	6/30/2019		9/30/2019		12/31/2019		3/31/2020		6/30/2020		6/30/2019		6/30/2020

Net income (loss) attributable to Holdings
Net income (loss) attributable to Holdings	$	363	$	(384)	$	(937)	$	5,410	$	(4,028)	$	(412)	$	1,382
Adjustments related to:
Variable annuity product features (1)	200		1,444		1,694		(6,861)		5,727		1,740		(1,134)
Investment gains (losses), net	12		(199)		103		(4)		(169)		23		(173)

Net actuarial gains (losses) related to pension and other postretirement benefit obligations	24		24		27		27		28		48		55
Other adjustments (2) (3)	89		78		199		634		91		129		725
Income tax (expense) benefit related to above adjustments (4)	(71)		(282)		(424)		1,303		(1,192)		(408)		111
Non-recurring tax items	(58)		(4)		(10)		6		2		(52)		8
Non-GAAP Operating Earnings	$	559	$	677	$	652	$	515	$	459	$	1,068	$	974

Net income (loss) attributable to Holdings	$	0.74	$	(0.78)	$	(1.97)	$	11.67	$	(8.94)	$	(0.82)	$	3.02
Less: Preferred stock dividends	—		—		—		0.02		0.02		—		0.05
Net income (loss) available to Holdings' common shareholders	0.74		(0.78)		(1.97)		11.65		(8.96)		(0.82)		2.97
Adjustments related to:
Variable annuity product features (1)	0.41		2.94		3.55		(14.80)		12.71		3.44		(2.48)
Investment gains (losses), net	0.02		(0.40)		0.22		(0.01)		(0.38)		0.05		(0.38)

Net actuarial gains (losses) related to pension and other postretirement benefit obligations	0.05		0.05		0.06		0.06		0.06		0.10		0.12
Other adjustments (2) (3)	0.18		0.15		0.42		1.37		0.22		0.25		1.59
Income tax (expense) benefit related to above adjustments (4)	(0.14)		(0.57)		(0.89)		2.81		(2.65)		(0.81)		0.24
Non-recurring tax items	(0.12)		(0.01)		(0.02)		0.01		—		(0.10)		0.02
Non-GAAP Operating Earnings (loss) available to Holdings' common shareholders	$	1.14	$	1.38	$	1.37	$	1.08	$	1.00	$	2.11	$	2.08

Book Value per common share
Book Value per common share	$	30.22	$	30.53	$	27.52	$	42.86	$	37.42	$	30.22	$	37.42
Less: Per share impact of AOCI	1.78		3.00		1.81		5.08		8.74		1.78		8.74
Book value per common share (ex. AOCI)	$	28.44	$	27.53	$	25.71	$	37.78	$	28.68	$	28.44	$	28.68



Notes:
(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 six months ended June 30, 2020. The impact per common share is $3.21 and other COVID-19 related impacts of $0.08 for the six months ended June 30, 2020.
(2) Includes separation costs of $39 million, $58 million, $71 million and $82 million for the three and six months ended June 30, 2020 and 2019, respectively. The impact per common share is $0.16 and $0.16 for the six months ended June 30, 2020 and 2019.
(3) Includes COVID-19 impact on Other adjustments due to a first quarter 2020 assumption update of $1.0 billion for the six months ended June 30, 2020 and other COVID-19 related impacts of $52 million and $103 million for the three and six months ended June 30, 2020. The impact per common share is $2.16 and $0.23 for the six months ended June 30, 2020.
(4) Includes income taxes of $(11) million and $(545) million for the above related COVID-19 items for the three and six months ended June 30, 2020. The impact per common share is $(1.19) for the six months ended June 30, 2020.


2Q 2020 Financial Supplement						29


Reconciliation of Non-GAAP Measures (2/3)

	As of and for the Twelve Months Ended
(in millions USD, unless otherwise indicated)	6/30/2019			9/30/2019			12/31/2019			3/31/2020			6/30/2020

Net Income to Non-GAAP Operating Earnings
Net income (loss) attributable to Holdings	$	1,030		$	1,142		$	(1,733)		$	4,452		$	61
Adjustments related to:
Variable annuity product features	1,245			1,286			4,878			(3,523)			2,004
Investment (gains) losses	189			(46)			(73)			(88)			(269)

Net actuarial (gains) losses related to pension and other postretirement benefit obligations	105			105			99			102			106
Other adjustments	249			276			406			1,000			1,002
Income tax (expense) benefits related to above adjustments	(389)			(340)			(1,114)			526			(595)
Non-recurring tax items	(164)			(174)			(66)			(66)			(6)
Non-GAAP Operating Earnings	$	2,265		$	2,249		$	2,397		$	2,403		$	2,303

Return on Equity and Non-GAAP Operating Return on Equity - Trailing twelve months
Net income (loss) attributable to Holdings	1,030			1,142			(1,733)			4,452			61
Less: Preferred stock	—			—			—			(13)			(23)
Net income (loss) available to Holdings' common shareholders	$	1,030		$	1,142		$	(1,733)		$	4,439		$	38
Average equity attributable to Holdings' common shareholders (ex. AOCI)	$	14,223		$	14,088		$	13,253		$	14,094		$	13,825

Return on Equity (ex. AOCI)	7.2		%	8.1		%	(13.1)		%	31.5		%	0.3		%

Pro forma Non-GAAP Operating Earnings	$	2,265		$	2,249		$	2,397		$	2,403		$	2,303
Less: Preferred stock	—			—			—			(13)			(23)
Non-GAAP Operating Earnings available to Holdings' common shareholders	$	2,265		$	2,249		$	2,397		$	2,390		$	2,280
Average equity attributable to Holdings' common shareholders (ex. AOCI)	$	14,223		$	14,088		$	13,253		$	14,094		$	13,825

Non-GAAP Operating Return on Equity (ex. AOCI)	15.9		%	16.0		%	18.1		%	17.0		%	16.5		%


2Q 2020 Financial Supplement						30


Reconciliation of Non-GAAP Measures (3/3)

	Balances as of
(in millions USD, unless otherwise indicated)	9/30/2018		12/31/2018		3/31/2019		6/30/2019		9/30/2019		12/31/2019		3/31/2020		6/30/2020

Equity Reconciliation - Quarter-end Balances
Total equity attributable to Holdings' shareholders	$	12,411	$	13,866	$	13,143	$	14,843	$	14,936	$	13,535	$	20,086	$	17,594
Less: Preferred Stock	—		—		—		—		—		775		775		775
Total equity attributable to Holdings' common shareholders	12,411		13,866		13,143		14,843		14,936		12,760		19,311		16,819
Less: Accumulated other comprehensive income (loss)	(1,595)		(1,396)		(513)		876		1,468		840		2,289		3,928
Total equity attributable to Holdings' common shareholders (ex. AOCI)	$	14,006	$	15,262	$	13,656	$	13,967	$	13,468	$	11,920	$	17,022	$	12,891

	Pro forma (1)										Balances as of
	Balances as of
(in millions USD, unless otherwise indicated)	9/30/2018		12/31/2018		3/31/2019		6/30/2019		9/30/2019		12/31/2019		3/31/2020		6/30/2020

Equity Reconciliation - Twelve Month Rolling Average (2)
Total equity attributable to Holdings' shareholders	$	13,186	$	13,297	$	13,196	$	—	$	—	$	—	$	—	$	—
Pro forma adjustments (1)	176		1		—		—		—		—		—		—
Total equity attributable to Holdings' shareholders	13,362		13,298		13,196		13,566		14,197		14,114		15,850		16,538
Less: Preferred Stock	—		—		—		—		—		194		388		581
Total equity attributable to Holdings' common shareholders	13,362		13,298		13,196		13,566		14,197		13,921		15,463		15,957
Less: Accumulated other comprehensive income (loss)	(990)		(1,312)		(1,204)		(657)		109		668		1,368		2,131
Total equity attributable to Holdings' common shareholders (ex. AOCI)	$	14,352	$	14,610	$	14,400	$	14,223	$	14,088	$	13,253	$	14,094	$	13,825

Notes:
(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.


2Q 2020 Financial Supplement						31


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 - 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.
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 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.


2Q 2020 Financial Supplement						32

Analyst Coverage, Ratings & Contact Information

Analyst Coverage

Firm

Analyst

Phone Number

Citi

Suneet Kamath

1 (212) 816-3457

Credit Suisse

Andrew Kligerman

1 (212) 325-5069

Evercore ISI

Thomas Gallagher

1 (212) 446-9439

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

Wells Fargo Securities

Elyse Greenspan

1 (212) 214-8031

This list is provided for informational purposes only. Equitable Holdings does not endorse the analyses, conclusions or recommendations contained in any reports issued by these or any other analysts.

Ratings

A.M. Best

S&P

Moody’s

Last review date

Dec '19

Jun '20

May '20

Financial Strength Ratings:

Equitable Financial Life Insurance Company

A+

Equitable Financial Life Insurance Company of America

A+

Credit Ratings:

Equitable Holdings, Inc.

bbb+

BBB+

Baa2

AllianceBernstein Holding, L.P. (1)

—

Investor and Media Contacts

Contact Investor Relations

Contact Media Relations

Jessica Baehr

Dan Woodrow

Matt Asensio

(212) 314-2476

(212) 314-2036

(212) 314-2010

IR@equitable.com

MediaRelations@equitable.com

ir.equitableholdings.com

www.equitableholdings.com

Notes:

(1) Last review dates: S&P as of Jun '20, Moody’s as of Jun '20.


2Q 2020 Financial Supplement						33

Equitable Holdings, Inc. - FORM 8-K/A - EX-99.2 - August 4, 2020

Attached files