Equitable Holdings, Inc. has recently released its 10-K report, providing an in-depth look at the company's financial performance and operations. Equitable operates as a diversified financial services company with six segments: Individual Retirement, Group Retirement, Investment Management and Research, Protection Solutions, Wealth Management, and Legacy. The company offers a suite of variable annuity products, tax-deferred investment and retirement services, life insurance products, and wealth management services. Equitable Holdings, Inc. was founded in 1859 and is based in New York, New York.
The 10-K report discusses several recent developments within the company. Notably, Equitable entered into a Master Transaction Agreement with RGA to reinsure 75% of its in-force individual life insurance block, which is expected to generate total value for the company of over $2 billion. Additionally, Equitable commenced a cash tender offer to purchase up to 46 million AB Holding Units at a price of $38.50 per unit, with an aggregate purchase price of $1.8 billion. The company also entered into a 364-Day Term Loan Credit Agreement for a $500 million senior unsecured delayed-draw term loan.
The report also delves into the macroeconomic and industry trends that affect Equitable's business and consolidated results of operations. Factors such as economic conditions, consumer confidence, global capital market conditions, interest rate environment, and regulatory developments are highlighted as significant influencers of the company's financial performance.
Equitable's revenues primarily come from fee income derived from retirement and protection products, premium income from traditional life insurance and annuity products, and investment income from its General Account investment portfolio. The report also details the company's expenses, including policyholders' benefits, sales commissions, and compensation paid to intermediaries and advisors, and compensation and benefits provided to employees.
The 10-K report addresses the net income volatility of Equitable, particularly in relation to its variable annuity products with GMxB features. The company utilizes hedging and reinsurance programs to mitigate the economic exposure to movements in equity markets and interest rates, and evaluates and manages its business performance using Non-GAAP Operating Earnings.
The market has reacted to these announcements by moving the company's shares 4.3% to a price of $53.59. If you want to know more, read the company's complete 10-K report here.
