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Equitable (EQH) 8-KResults of Operations and Financial Condition

Filed: 4 Apr 23, 4:02pm

Table of Contents

Consolidated Financials and Key Metrics

Page

Key Metrics Summary

Consolidated Statements of Income (Loss)

Consolidated Balance Sheets

Consolidated Capital Structure

Operating Earnings (Loss) by Segment and Corporate and Other

Assets Under Management and Administration

Sales Metrics by Segment

Select Metrics from Business Segments

Individual Retirement

Statements of Operating Earnings (Loss) and Summary Metrics

Select Operating Metrics

Group Retirement

Statements of Operating Earnings (Loss) and Summary Metrics

Select Operating Metrics

Investment Management and Research (1)

Statements of Operating Earnings (Loss) and Summary Metrics

Select Operating Metrics

Net Flows

Protection Solutions

Statements of Operating Earnings (Loss) and Summary Metrics

Select Operating Metrics

Wealth Management

Statements of Operating Earnings (Loss) and Summary Metrics

Select Operating Metrics

Legacy

Statements of Operating Earnings (Loss) and Summary Metrics

Select Operating Metrics

Investments

Consolidated Investment Portfolio Composition

Consolidated Results of General Account Investment Portfolio

Additional Information

Deferred Policy Acquisition Costs Rollforward

Use of Non-GAAP Financial Measures

Reconciliation of Non-GAAP Measures

Glossary of Selected Financial and Product Terms

Analyst Coverage, Ratings & Contact Information

Notes:

(1) Refers to AllianceBernsten L.P. and AllianceBernstien Holding L.P., collectively

All information included in this financial supplement is unaudited.

.

This financial supplement should be read in conjunction with 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.


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						2

Consolidated Financials

and Key Metrics


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						3

Key Metrics Summary


												For the Three Months Ended or As of																											Years Ended or As of
(in millions USD, unless otherwise indicated)												3/31/2022						6/30/2022						9/30/2022						12/31/2022												12/31/2021						12/31/2022						Change

Net income (loss)												$	597					$	1,011					$	648					$	138											$	2,172					$	2,394					10.2		%
Net income (loss) attributable to the noncontrolling interest												(67)						(44)						(54)						(76)												(415)						(241)						41.9		%
Net income (loss) attributable to Holdings												$	530					$	967					$	594					$	62											$	1,757					$	2,153					22.5		%

Non-GAAP Operating Earnings (1)												$	499					$	493					$	386					$	348											$	2,555					$	1,726					(32.4)		%

Total equity attributable to Holdings' shareholders												$	7,959					$	5,702					$	3,411					$	1,401											$	10,351					$	1,401					(86.5)		%
Less: Preferred Stock												1,562						1,562						1,562						1,562												1,562						1,562						—		%
Total equity attributable to Holdings' common shareholders												6,397						4,140						1,849						(161)												8,789						(161)						(101.8)		%
Less: Accumulated other comprehensive income (loss)												(1,304)						(4,165)						(6,870)						(8,992)												1,303						(8,992)						(789.9)		%
Total equity attributable to Holdings' common shareholders (ex. AOCI)												$	7,701					$	8,305					$	8,719					$	8,831											$	7,486					$	8,831					18.0		%

Return on Equity (ex. AOCI) - TTM												N/A						N/A						N/A						24.7		%										N/A						24.7		%
Non-GAAP Operating ROE (1)												N/A						N/A						N/A						19.6		%										N/A						19.6		%

Debt to capital:
Debt to Capital (ex. AOCI)												29.3		%				28.0		%				27.2		%				27.0		%										29.8		%				27.0		%

Per common share:
Diluted earnings per common share: (2)
Net income (loss) attributable to Holdings												$	1.32					$	2.47					$	1.54					$	0.10											$	3.98					$	5.46					37.0		%
Non-GAAP Operating Earnings (1)												$	1.24					$	1.23					$	0.99					$	0.87											$	5.88					$	4.33					(26.3)		%
Book value per common share												$	16.65					$	10.99					$	5.00					$	(0.44)											$	22.47					$	(0.44)					(102.0)		%
Book value per common share (ex. AOCI)												$	20.04					$	22.04					$	23.56					$	24.19											$	19.14					$	24.19					26.4		%

Weighted-average common shares outstanding:
Basic												388.6						378.9						374.5						368.6												417.4						377.6						(9.5)		%
Diluted												391.7						380.6						376.8						371.5												421.2						379.9						(9.8)		%

Ending common shares outstanding												384.2						376.8						370.0						365.0												391.2						365.0						(6.7)		%

Return to common shareholders:
Common stock dividend												$	70					$	75					$	75					$	74											$	296					$	294
Repurchase of common shares (3)												279						220						200						150												1,637						849
Total capital returned to common shareholders												$	349					$	295					$	275					$	224											$	1,933					$	1,143

Market Values:
S&P 500												4,530						3,785						3,586						3,840												4,766						3,840						(19.4)		%
US 10-Year Treasury												2.3		%				3.0		%				3.8		%				3.9		%										1.5		%				3.9		%

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.
(3) Fourth quarter 2021 repurchase of common shares includes $112 million accelerated from first quarter 2022.


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						4

Consolidated Statements of Income (Loss)


												For the Three Months Ended																											Years Ended
(in millions USD, unless otherwise indicated)												3/31/2022						6/30/2022						9/30/2022						12/31/2022												12/31/2021						12/31/2022						Change

Revenues
Policy charges and fee income												$	650					$	620					$	603					$	581											$	2,768					$	2,454					(11.3)		%
Premiums												247						238						259						250												960						994						3.5		%
Net derivative gains (losses)												159						1,858						199						(1,309)												(7,149)						907						112.7		%
Net investment income (loss)												804						711						842						958												3,846						3,315						(13.8)		%
Investment gains (losses), net												(326)						(232)						(332)						(55)												868						(945)						(208.9)		%
Investment management and service fees												1,355						1,197						1,179						1,160												5,395						4,891						(9.3)		%
Other income												257						298						242						231												928						1,028						10.8		%
Total revenues												3,146						4,690						2,992						1,816												7,616						12,644						66.0		%

Benefits and other deductions
Policyholders’ benefits												799						585						624						689												2,788						2,697						(3.3)		%
Remeasurement of liability for future policy benefits												25						16						25						19												13						85						553.8		%
Change in market risk benefits and purchased market risk benefits												(467)						814						(491)						(1,136)												(5,943)						(1,280)						78.5		%
Interest credited to policyholders’ account balances												313						310						378						409												1,219						1,410						15.7		%
Compensation and benefits												596						518						568						519												2,363						2,201						(6.9)		%
Commissions and distribution related payments												422						394						368						383												1,662						1,567						(5.7)		%
Interest expense												47						50						51						53												244						201						(17.6)		%
Amortization of deferred policy acquisition costs												143						145						148						150												552						586						6.2		%
Other operating costs and expenses												534						583						496						572												2,107						2,185						3.7		%
Total benefits and other deductions												2,412						3,415						2,167						1,658												5,005						9,652						92.8		%

Income (loss) from operations, before income taxes												734						1,275						825						158												2,611						2,992						14.6		%
Income tax (expense) benefit												(137)						(264)						(177)						(20)												(439)						(598)						(36.2)		%
Net income (loss)												597						1,011						648						138												2,172						2,394						10.2		%
Less: net (income) loss attributable to the noncontrolling interest												(67)						(44)						(54)						(76)												(415)						(241)						41.9		%
Net income (loss) attributable to Holdings												$	530					$	967					$	594					$	62											$	1,757					$	2,153					22.5		%
Less: Preferred stock dividends												(14)						(26)						(14)						(26)												(79)						(80)						(1.3)		%
Net income (loss) available to Holdings' common shareholders												$	516					$	941					$	580					$	36											$	1,678					$	2,073					23.5		%

Adjustments related to:
Variable annuity product features												$	(616)					$	(1,031)					$	(675)					$	129											$	1,115					$	(2,193)
Investment gains (losses), net												326						231						333						55												(867)						945

Net actuarial gains (losses) related to pension and other postretirement benefit obligations												19						19						19						25												120						82
Other adjustments (1) (2) (3)												228						177						50						150												626						605
Income tax (expense) benefit related to above adjustments												9						127						58						(76)												(208)						118
Non-recurring tax items												3						3						7						3												12						16
Non-GAAP Operating earnings (4)												$	499					$	493					$	386					$	348											$	2,555					$	1,726

Notes:

(1) Includes separation costs of $82 million for the year ended December 31, 2021. Separation costs were completed during 2021.
(2) Includes certain gross legal expenses related to the cost of insurance litigation and claims related to a commercial relationship of $50 million, $218 million and $207 million for the three months and year ended December 31, 2022 and year ended December 31, 2021, respectively. Includes policyholder benefit costs of $75 million for the year ended December 31, 2022 stemming from a deal to repurchase UL policies from one entity that had invested in numerous policies purchased in the life settlement market.
(3) Includes Non-GMxB related derivative hedge losses of $34 million, ($34) million and $65 million for the three months and year ended December 31, 2022 and year ended December 31, 2021, respectively.
(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” 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.


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						5

Consolidated Balance Sheets


						Balances as of
(in millions USD, unless otherwise indicated)						12/31/2021						3/31/2022						6/30/2022						9/30/2022						12/31/2022

Assets
Total investments						$	105,111					$	98,776					$	93,216					$	92,517					$	93,097
Cash and cash equivalents						5,188						5,713						5,109						4,139						4,281
Cash and securities segregated, at fair value						1,504						1,693						1,747						1,335						1,522
Broker-dealer related receivables						2,599						2,744						2,666						2,539						2,338
Deferred policy acquisition costs						6,113						6,180						6,254						6,322						6,369
Goodwill and other intangible assets, net						4,728						4,723						4,721						5,635						5,482
Amounts due from reinsurers						4,632						4,487						4,376						4,320						8,471

Current and deferred income taxes						505						1,118						1,645						2,207						781
Purchased market risk benefits						14,074						12,521						11,739						10,737						10,423
Other assets						3,609						3,884						4,783						4,678						4,033
Assets held-for-sale						—						—						—						—						562
Separate Accounts assets						147,305						136,812						116,765						109,622						114,853
Assets for market risk benefits						318						489						539						514						490
Total assets						$	295,687					$	279,140					$	253,560					$	244,565					$	252,702

Liabilities
Policyholders’ account balances						$	79,361					$	79,555					$	78,773					$	80,009					$	83,866
Liability for market risk benefits						$	21,688					$	17,976					$	16,723					$	15,569					$	15,766
Future policy benefits and other policyholders’ liabilities						18,178						17,273						16,656						16,305						16,603
Broker-dealer related payables						1,283						1,992						612						607						715

Customers related payables						3,600						3,684						3,821						3,361						3,323
Amounts due to reinsurers						1,381						1,331						1,353						1,348						1,533
Short-term debt						92						204						245						767						759
Long-term debt						3,839						3,840						3,840						3,321						3,322


Income taxes payable						—						—						—						—						—
Notes issued by consolidated variable interest entities, at fair value using the fair value option						1,191						1,182						1,150						1,165						1,150
Other liabilities						5,374						5,417						6,162						7,247						7,108
Liabilities held-for-sale						—						—						—						—						108
Separate Accounts liabilities						147,306						136,812						116,765						109,622						114,853
Total liabilities						283,292						269,266						246,100						239,321						249,106
Redeemable noncontrolling interest						468						386						348						354						455

Equity
Preferred stock						1,562						1,562						1,562						1,562						1,562
Common stock						4						4						4						4						4
Additional paid-in capital						1,919						1,933						1,918						2,027						2,299
Treasury shares						(2,850)						(3,070)						(3,065)						(3,202)						(3,297)
Retained earnings						8,413						8,834						9,448						9,890						9,825
Accumulated other comprehensive income (loss)						1,303						(1,304)						(4,165)						(6,870)						(8,992)
Total equity attributable to Holdings						10,351						7,959						5,702						3,411						1,401
Noncontrolling interest						1,576						1,529						1,410						1,479						1,740
Total equity						11,927						9,488						7,112						4,890						3,141
Total liabilities, redeemable noncontrolling interest and equity						$	295,687					$	279,140					$	253,560					$	244,565					$	252,702


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						6

Consolidated Capital Structure


			Balances as of
(in millions USD, unless otherwise indicated)			12/31/2021						3/31/2022						6/30/2022						9/30/2022						12/31/2022

Short-term and long-term debt:
Short-term debt
AB commercial paper			$	—					$	—					$	—					$	—					$	—
AB revolving credit facility			—						—						—						—						—
CLO Warehousing Debt (1)			92						204						245						248						239

Current portion of Long-term debt			—						—						—						519						520
Total short-term debt			92						204						245						767						759

Total long-term debt			3,839						3,840						3,840						3,321						3,322

Total short-term and long-term debt: [A]			$	3,931					$	4,044					$	4,085					$	4,088					$	4,081

Equity:
Preferred stock			$	1,562					$	1,562					$	1,562					$	1,562					$	1,562
Common stock			4						4						4						4						4
Additional paid-in capital			1,919						1,933						1,918						2,027						2,299
Treasury stock, at cost			(2,850)						(3,070)						(3,065)						(3,202)						(3,297)
Retained earnings			8,413						8,834						9,448						9,890						9,825
Accumulated other comprehensive income (loss)			1,303						(1,304)						(4,165)						(6,870)						(8,992)
Total equity attributable to Holdings			10,351						7,959						5,702						3,411						1,401
Noncontrolling interest			1,576						1,529						1,410						1,479						1,740
Total equity			$	11,927					$	9,488					$	7,112					$	4,890					$	3,141

Total equity attributable to Holdings, (ex. AOCI): [B]			$	9,048					$	9,263					$	9,867					$	10,281					$	10,393

Capital:
Total capitalization (2)			$	14,190					$	11,799					$	9,542					$	7,251					$	5,243
Total capitalization (ex. AOCI): [A+B] (3)			$	12,887					$	13,103					$	13,707					$	14,121					$	14,235

Debt to capital:
Debt to capital (ex. AOCI) (3)			29.8		%				29.3		%				28.0		%				27.2		%				27.0		%

			For the Three Months Ended
Roll-forward of common shares outstanding (millions of shares):
Beginning balance			404.7						391.2						384.2						376.8						370.0
Repurchases			(9.6)						(7.9)						—						(4.7)						(3.1)
Retirements			(4.0)						(0.7)						(7.6)						(2.3)						(1.9)
Issuances			0.1						1.6						0.2						0.2						—
Ending basic common shares outstanding			391.2						384.2						376.8						370.0						365.0
Total potentially dilutive shares			—						3.1						2.3						2.3						2.3
Ending common shares outstanding - maximum potential dilution			391.2						387.3						379.1						372.3						367.3
Notes:

(1) CLO Warehousing Debt related to VIE consolidation of CLO investment.

(2) Total capitalization exclusive of CLO Warehousing Debt as the VIE debt is non-recourse.

(3) Debt to capital ratio exclusive of CLO Warehousing Debt as the VIE debt is non-recourse.


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						7


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

						Year Ended December 31, 2022
(in millions USD, unless otherwise indicated)						Individual Retirement						Group Retirement						Inv Mgmt and Research						Protection Solutions						Wealth Management						Legacy						Corporate and Other						Eliminations						Consolidated
Revenues
Policy charges, fee income and premiums						$	655					$	318					$	—					$	2,018					$	—					$	139					$	318					$	—					$	3,448
Net investment income (loss)						1,056						624						(43)						981						2						252						552						95						3,519
Net derivative gains (losses)						(42)						(30)						41						(20)						—						—						22						15						(14)
Investment Management, service fees and other income						359						246						4,107						141						1,444						428						18						(870)						5,873
Segment revenues						2,028						1,158						4,105						3,120						1,446						819						910						(760)						12,826
Benefits and other deductions
Policyholders’ benefits						56						—						—						1,896						—						167						509						—						2,628
Remeasurement of liability for future policy benefits						(3)						—						—						47						—						—						36						—						80

Interest credited to policyholders’ account balances						318						281						—						511						—						49						251						—						1,410
Commissions and distribution related payments						235						154						630						142						940						187						15						(736)						1,567
Amortization of deferred policy acquisition costs						334						59						—						117						—						65						11						—						586
Compensation and benefits, interest expense and financing fees and other operating costs and expense						165						124						2,537						290						370						66						505						(24)						4,033

Segment benefits and other deductions						1,105						618						3,167						3,003						1,310						534						1,327						(760)						10,304
Operating earnings (loss), before income taxes						923						540						938						117						136						285						(417)						—						2,522
Income Taxes						(161)						(94)						(162)						(20)						(35)						(50)						73						—						(449)
Operating earnings (loss), before noncontrolling interest						762						446						776						97						101						235						(344)						—						2,073
Less: Operating (earnings) loss attributable to the noncontrolling interest						—						—						(352)						—						—						—						5						—						(347)
Operating earnings (loss)						$	762					$	446					$	424					$	97					$	101					$	235					$	(339)					$	—					$	1,726

						Year Ended December 31, 2021
						Individual Retirement						Group Retirement						Inv Mgmt and Research						Protection Solutions						Wealth Management						Legacy						Corporate and Other						Eliminations						Consolidated
Revenues
Policy charges, fee income and premiums						$	726					$	371					$	—					$	1,951					$	—					$	335					$	345					$	—					$	3,728
Net investment income (loss)						863						752						13						1,102						—						424						693						82						3,929
Net derivative gains (losses)						(31)						(20)						(13)						(20)						—						—						(42)						14						(112)
Investment Management, service fees and other income						431						268						4,430						146						1,437						470						25						(875)						6,332
Segment revenues						1,989						1,371						4,430						3,179						1,437						1,229						1,021						(779)						13,877
Benefits and other deductions
Policyholders’ benefits						67						—						—						1,881						—						175						610						—						2,733
Remeasurement of liability for future policy benefits						30						—						—						(33)						—						9						7						—						13

Interest credited to policyholders’ account balances						225						303						—						516						—						53						122						—						1,219
Commissions and distribution related payments						233						149						708						131						946						230						14						(749)						1,662
Amortization of deferred policy acquisition costs						294						64						—						116						—						66						12						—						552
Compensation and benefits, interest expense and financing fees and other operating costs and expense						191						163						2,512						255						408						72						524						(30)						4,095

Segment benefits and other deductions						1,040						679						3,220						2,866						1,354						605						1,289						(779)						10,274
Operating earnings (loss), before income taxes						949						692						1,210						313						83						624						(268)						—						3,603
Income Taxes						(155)						(113)						(208)						(51)						(25)						(102)						44						—						(610)
Operating earnings (loss), before noncontrolling interest						794						579						1,002						262						58						522						(224)						—						2,993
Less: Operating (earnings) loss attributable to the noncontrolling interest						—						—						(438)						—						—						—						—						—						(438)
Operating earnings (loss)						$	794					$	579					$	564					$	262					$	58					$	522					$	(224)					$	—					$	2,555


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						8


Assets Under Management and Administration


						Balances as of
(in billions USD, except for Equitable Headcount)						12/31/2021						3/31/2022						6/30/2022						9/30/2022						12/31/2022

Assets Under Management

AB AUM
Total AB						$	778.6					$	735.4					$	646.8					$	612.7					$	646.4
Exclusion for General Account and other Affiliated Accounts						(79.7)						(75.1)						(69.4)						(66.8)						(66.8)
Exclusion for Separate Accounts						(48.8)						(45.3)						(38.4)						(36.1)						(38.2)
AB third party						$	650.1					$	615.0					$	539.0					$	509.8					$	541.4

Total company AUM
AB third party						$	650.1					$	615.0					$	539.0					$	509.8					$	541.4
General Account and other Affiliated Accounts (1) (3) (4)						110.3						104.5						98.3						96.7						97.4
Separate Accounts (2) (3) (4)						147.3						136.8						116.8						109.6						114.9
Total AUM						$	907.7					$	856.3					$	754.1					$	716.1					$	753.6

Total Assets Under Administration (AUA) (5)						$	82.8					$	78.9					$	70.4					68.4						72.4

Equitable Advisor Headcount
Total Number of Equitable Advisors						4,382						4,252						4,166						4,129						4,258

Notes:

(1) “General Account and Other Affiliated Accounts” refers to assets held in the general accounts of our insurance companies and other assets on which we bear the investment risk.
(2) “Separate Accounts” refers to the separate account investment assets of our insurance subsidiaries excluding any assets on which we bear the investment risk.
(3) As of December 31, 2021, March 31, 2022, June 30, 2022, September 30, 2022 and December 31, 2022, Separate Account and General Account AUM is inclusive of $16.6 billion, $61 million, $15.1 billion, $60 million, $12.7 billion, $60 million, $11.7 billion, $58 million, $12.1 billion and $56 million, respectively, Account Value ceded to Venerable. For additional information on the Venerable transaction see Note 1 of the Notes to Consolidated Financial Statements within the 10-K.
(4) As of December 31, 2022, Separate Account and General Account AUM is inclusive $5.6 billion and $3.9 billion, respectively, Account Value ceded to Global Atlantic. For additional information on the Global Atlantic transaction see MD&A - Executive Summary “Global Atlantic Reinsurance Transaction" within the 10-K.
(5) AUA includes Equitable Advisors Advisory and Brokerage AUA; Equitable Advisors broker-dealer business is included in Wealth Management.


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						9

Sales Metrics by Segment


						For the Three Months Ended																																	Years Ended
(in millions USD, unless otherwise indicated)						12/31/2021						3/31/2022						6/30/2022						9/30/2022						12/31/2022												12/31/2021						12/31/2022						Change

Retirement Operations

Individual Retirement
First year premiums and deposits						$	3,037					$	2,735					$	2,930					$	2,799					$	2,438											$	10,977					$	10,902					(0.7)		%
Renewal premium and deposits						68						84						89						111						86												324						370						14.2		%
Total Gross Premiums						$	3,105					$	2,819					$	3,019					$	2,910					$	2,524											$	11,301					$	11,272					(0.3)		%

Group Retirement
First year premiums and deposits						$	452					$	879					$	476					$	371					$	392											$	1,501					$	2,118					41.1		%
Renewal premium and deposits						626						623						657						490						560												2,338						2,330						(0.3)		%
Total Gross Premiums						$	1,078					$	1,502					$	1,133					$	861					$	952											$	3,839					$	4,448					15.9		%

Protection Solutions
First year premiums and deposits						$	133					$	116					$	99					$	101					$	108											$	426					$	424					(0.5)		%
Renewal premium and deposits (1)						668						662						661						668						668												2,639						2,659						0.7		%
Total Gross Premiums (1)						$	801					$	778					$	760					$	769					$	776											$	3,065					$	3,083					0.6		%

Investment Management and Research (in billions USD)
Gross Sales by distribution channel
Institutional (4)						$	6.6					$	14.3					$	3.3					$	1.9					$	12.6											$	31.7					$	32.2					1.6		%
Retail						27.6						20.6						17.3						13.8						14.2												100.0						65.9						(34.1)		%
Private Wealth						5.2						6.0						3.3						4.1						4.1												18.3						17.5						(4.4)		%
Firmwide Gross Sales (4)						$	39.4					$	40.9					$	23.9					$	19.8					$	30.9											$	150.0					$	115.6					(22.9)		%

Gross sales by investment service
Equity Active						$	21.8					$	17.3					$	11.4					$	8.0					$	9.3											$	72.9					$	46.0					(36.9)		%
Equity Passive (2) (4)						0.3						0.2						1.1						0.4						0.1												1.4						1.8						28.6		%
Fixed Income - Taxable						7.4						7.1						4.0						6.1						8.3												44.9						25.5						(43.2)		%
Fixed Income - Tax-Exempt						3.6						4.0						5.2						3.2						3.6												13.5						16.0						18.5		%
Fixed Income Passive (2) (4)						3.4						(0.1)						—						—						—												4.6						(0.1)						(102.2)		%
Alternatives/Multi-Asset Solutions (3) (4)						2.9						12.4						2.2						2.1						9.5												12.7						26.4						107.9		%
Firmwide Gross Sales (4)						$	39.4					$	40.9					$	23.9					$	19.8					$	30.8											$	150.0					$	115.6					(22.9)		%

Wealth Management (in millions USD)
Sales by Product Type
Advisory						$	3,052					$	2,745					$	2,379					$	2,114					$	1,850											$	11,449					$	9,089					(20.6)		%
Brokerage and Direct						754						711						654						805						907												3,037						3,077						1.3		%
Retirement, Premiums and Deposits (5)						2,602						2,559						2,597						2,713						2,877												10,058						10,746						6.8		%
Total sales						$	6,408					$	6,015					$	5,631					$	5,632					$	5,634											$	24,544					$	22,912					(12.5)		%

Notes:

(1) 1Q'22 variable universal life renewals previously reported as $514M during first quarter 2022. Amount updated to $249M during second quarter 2022 to properly reflect variable universal life product renewals. This resulted in a change for gross written premiums from $1,033 to $778.
(2) Includes index and enhanced index services.
(3) Includes certain multi-asset solutions and services not included in equity or fixed income services
(4) AB line item does not cross foot for the twelve months ended 2022 due to rounding.
(5) Represents premiums and deposits associated with Retirement Operations


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						10

Business Segments:

Operating Earnings Results and Metrics


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						11

Individual Retirement - Operating Earnings (Loss) and Summary Metrics


									For the Three Months Ended or As of																											Years Ended or As of
(in millions USD, unless otherwise indicated)												3/31/2022						6/30/2022						9/30/2022						12/31/2022						12/31/2021						12/31/2022						Change

Revenues
Policy charges, fee income and premiums												$	183					$	163					$	158					$	151					$	726					$	655					(9.8)		%
Net investment income (loss)												236						229						283						308						863						1,056						22.4		%
Net derivative gains (losses)												(8)						(10)						(16)						(8)						(31)						(42)						(35.5)		%
Investment management, service fees and other income												96						89						87						87						431						359						(16.7)		%
Segment revenues												507						471						512						538						1,989						2,028						2.0		%

Benefits and other deductions
Policyholders’ benefits												18						13						14						11						67						56						(16.4)		%
Remeasurement of Liability for Future Policy Benefits												—						(1)						(1)						(1)						30						(3)						—		%

Interest credited to policyholders’ account balances												60						66						85						107						225						318						41.3		%
Commissions and distribution-related payments												64						54						54						63						233						235						0.9		%
Amortization of deferred policy acquisition costs												80						82						85						87						294						334						13.6		%
Compensation and benefits, interest expense and financing fees and other operating costs and expense												41						30						47						47						191						165						(13.6)		%
Segment benefits and other deductions												263						244						284						314						1,040						1,105						6.3		%

Operating earnings (loss), before income taxes												244						227						228						224						949						923						(2.7)		%
Income taxes												(41)						(41)						(45)						(34)						(155)						(161)						(3.9)		%
Operating earnings (loss), before noncontrolling interest												203						186						183						190						794						762						(4.0)		%
Less: Operating (earnings) loss attributable to the noncontrolling interest												—						—						—						—						—						—						—		%
Operating earnings (loss)												$	203					$	186					$	183					$	190					$	794					$	762					(4.0)		%






Summary Metrics

Operating earnings (loss) - TTM:												N/A						N/A						N/A						$	762					$	794					$	762					(4.0)		%

Average Account Value (TTM)												$	70,950					$	64,978					$	58,389					$	67,818					$	74,667					$	67,818					(11.0)		%

Return on assets (TTM)												N/A						N/A						N/A						1.36		%				1.27		%				1.36		%




Net flows												$	397					$	1,433					$	1,264					$	838					$	2,598					$	3,932					51.3		%

First year premiums and deposits												$	2,802					$	3,054					$	3,003					$	2,624					$	10,983					$	11,483					(0.7)		%




In-force Policy Count by Product (in thousands):												573						578						583						587						571						587


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						12


Individual Retirement - Select Operating Metrics
												For the Three Months Ended or As of																								Years Ended or As of
(in millions USD, unless otherwise indicated)												3/31/2022						6/30/2022						9/30/2022						12/31/2022						12/31/2021						12/31/2022

Sales Metrics
First Year Premiums and Deposits by Product:
SCS												$	1,926					$	2,183					$	2,038					$	1,806					$	7,627					$	7,953
SCS Income												67						124						204						186						6						581
Retirement Cornerstone												481						390						421						334						1,951						1,626
Investment Edge												241						289						271						235						1,048						1,036
Other												87						68						69						63						351						287
Total First Year Premiums and Deposits												$	2,802					$	3,054					$	3,003					$	2,624					$	10,983					$	11,483







Account Values
General Account:
Balance as of beginning of period												$	36,649					$	36,665					$	34,554					$	34,502					$	29,661					$	36,649
Gross premiums and deposits (3)												1,830						2,184						2,146						1,943						7,111						8,103
Surrenders, withdrawals and benefits												(885)						(821)						(721)						(765)						(3,161)						(3,192)
Net flows												945						1,363						1,425						1,178						3,950						4,911
Investment performance, interest credited and policy charges												(930)						(3,474)						(1,477)						2,083						3,136						(3,798)

Other (1)												—						—						—						—						(36)						—

Balance as of end of period												$	36,665					$	34,554					$	34,502					$	37,763					$	36,649					$	37,763

Separate Accounts:
Balance as of beginning of period												$	29,053					$	23,638					$	20,270					$	18,225					$	42,860					$	29,053
Gross premiums and deposits (3)												1,014						831						871						669						3,880						3,385
Surrenders, withdrawals and benefits												(1,562)						(761)						(1,032)						(1,009)						(5,232)						(4,364)
Net flows												(548)						70						(161)						(340)						(1,352)						(979)
Investment performance, interest credited and policy charges												(4,867)						(3,438)						(1,884)						1,702						4,356						(8,487)

Other (2)												—						—						—						—						55						—

Balance as of end of period												$	23,638					$	20,270					$	18,225					$	19,587					$	29,053					$	19,587

Total:
Balance as of beginning of period												$	65,702					$	60,303					$	54,824					$	52,727					$	72,521					$	65,702
Gross premiums and deposits (3)												2,844						3,015						3,017						2,612						10,991						11,488
Surrenders, withdrawals and benefits												(2,447)						(1,582)						(1,753)						(1,774)						(8,393)						(7,556)
Net flows												397						1,433						1,264						838						2,598						3,932
Investment performance, interest credited and policy charges												(5,797)						(6,912)						(3,361)						3,785						7,492						(12,285)

Other (1) (2)												—						—						—						—						19						—

Balance as of end of period												$	60,302					$	54,824					$	52,727					$	57,350					$	65,703					$	57,349

Net Amount at Risk (NAR)
Total GMIB NAR												$	26					$	31					$	18					$	18					$	20					$	18
Total GMWB NAR												—						—						—						—						—						—
Total GMDB NAR												404						584						659						646						294						646




MRB Reserves (Net of Reinsurance)												$	555					$	477					$	459					$	588					$	1,131					$	588
Notes:
(1) For the twelve months ended December 31, 2021, amounts reflect ($38) million transfer of policyholders account balances to future policyholder benefits and other policyholders liabilities related to structured settlement contracts.
(2) For the twelve months ended December 31, 2021 amounts reflect $57 million of AV transfer of a closed block of GMxB business from GR to IR.
(3) Includes deposits from certain other products not reported as first year premiums and deposits or renewal premiums and deposits elsewhere in this document.


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						13

Group Retirement - Operating Earnings (Loss) and Summary Metrics


												For the Three Months Ended or As of																								Years Ended or As of
(in millions USD, unless otherwise indicated)												3/31/2022						6/30/2022						9/30/2022						12/31/2022						12/31/2021						12/31/2022						Change

Revenues
Policy charges, fee income and premiums												$	94					$	83					$	80					$	61					$	371					$	318					(14.3)		%
Net investment income (loss)												180						163						160						121						752						624						(17.0)		%
Net derivative gains (losses)												(5)						(9)						(13)						(3)						(20)						(30)						(50.0)		%
Investment management, service fees and other income												66						61						60						59						268						246						(8.2)		%
Segment revenues												335						298						287						238						1,371						1,158						(15.5)		%

Benefits and other deductions
Policyholder benefits												—						—						—						—						—						—						—		%
Remeasurement of liability for future policy benefits												—						—						—						—						—						—						—		%

Interest credited to policyholders’ account balances												78						72						79						52						303						281						(7.3)		%
Commissions and distribution-related payments												42						42						33						37						149						154						3.4		%
Amortization of deferred policy acquisition costs												15						15						14						15						64						59						(7.8)		%
Compensation and benefits, interest expense and financing fees and other operating costs and expense												28						32						37						27						163						124						(23.9)		%
Segment benefits and other deductions												163						161						163						131						679						618						(9.0)		%

Operating earnings (loss), before income taxes												172						137						124						107						692						540						(22.0)		%
Income taxes												(28)						(26)						(25)						(15)						(113)						(94)						16.8		%
Operating earnings (loss), before noncontrolling interest												144						111						99						92						579						446						(23.0)		%
Less: Operating (earnings) loss attributable to the noncontrolling interest												—						—						—						—						—						—						—		%
Operating earnings (loss)												$	144					$	111					$	99					$	92					$	579					$	446					(23.0)		%

Summary Metrics

Operating earnings (loss) - TTM: [A]												N/A						N/A						N/A						$	446					$	579					$	446					(23.0)		%

Average Account Value (TTM) (1)												$	46,515					$	45,232					$	43,680					$	39,729					$	46,075					$	39,729					(13.8)		%

Return on assets (TTM) (1)												N/A						N/A						N/A						1.36		%				1.50		%				1.36		%

Net flows (2)												$	523					$	144					$	(57)					$	24					$	(177)					$	634					458.5		%

Gross premiums and deposits												$	1,502					$	1,133					$	861					$	952					$	3,839					$	4,448					15.9		%

Notes:

(1) Amounts revised to include Mutual Fund AUA balances. Impact to average account value TTM for December 31 2021 is $(383) million.
(2) For the three months ended and year ended December 31, 2022, net outflows of $179 million are excluded as these amounts are related to ceded AV to Global Atlantic.


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						14

Group Retirement - Select Operating Metrics


												For the Three Months Ended or As of																								Years Ended or As of
(in millions USD, unless otherwise indicated)												3/31/2022						6/30/2022						9/30/2022						12/31/2022						12/31/2021						12/31/2022

Sales Metrics
Gross premiums and deposits: (1)
First-year premiums and deposits												$	879					$	476					$	371					$	392					$	1,501					$	2,118
Renewal premiums and deposits												623						657						490						560						2,338						2,330
Group Retirement premiums and deposits												$	1,502					$	1,133					$	861					$	952					$	3,839					$	4,448

Gross premiums and deposits by market: (1)
Tax-exempt												$	219					$	231					$	293					$	258					$	1,017					$	1,001
Corporate												89						62						69						103						450						323
Institutional												565						179						3						25						9						772
Other												6						4						6						6						25						22
Total First Year Premiums and Deposits												879						476						371						392						1,501						2,118
Tax-exempt												468						518						364						435						1,789						1,785
Corporate												103						94						93						87						373						377
Institutional												—						—						—						—						—						—
Other												52						45						33						38						176						168
Total renewal premiums and deposits												623						657						490						560						2,338						2,330
Group Retirement premiums and deposits by market												$	1,502					$	1,133					$	861					$	952					$	3,839					$	4,448

Account Values and Assets under Administration
General Account:
Balance as of beginning of period												$	13,046					$	13,171					$	13,240					$	13,234					$	12,826					$	13,046
Gross premiums and deposits												329						299						242						239						1,055						1,109
Surrenders, withdrawals and benefits												(270)						(256)						(304)						(333)						(1,178)						(1,163)
Net flows												59						43						(62)						(94)						(123)						(54)
Investment performance, interest credited and policy charges												66						26						56						87						345						235
Other (2)												—						—						—						—						(2)						—
Ceded to Global Atlantic (6)												—						—						—						(4,052)						—						(4,052)
Balance as of end of period												$	13,171					$	13,240					$	13,234					$	9,175					$	13,046					$	9,175

Separate Accounts and Mutual Funds (3) (4) (5)
Balance as of beginning of period												$	34,763					$	32,864					$	27,927					$	26,476					$	29,930					$	34,763
Gross premiums and deposits												1,173						834						619						713						2,784						3,339
Surrenders, withdrawals and benefits												(709)						(733)						(614)						(595)						(2,838)						(2,651)
Net flows												464						101						5						118						(54)						688
Investment performance, interest credited and policy charges												(2,363)						(5,038)						(1,456)						1,547						4,942						(7,310)
Other (2)												—						—						—						—						(55)						—
Ceded to Global Atlantic (6)												—						—						—						(5,311)						—						(5,311)
Balance as of end of period												$	32,864					$	27,927					$	26,476					$	22,830					$	34,763					$	22,830

Total: (3) (4)
Balance as of beginning of period												$	47,809					$	46,035					$	41,167					$	39,710					$	42,756					$	47,809
Gross premiums and deposits												1,502						1,133						861						952						3,839						4,448
Surrenders, withdrawals and benefits												(979)						(989)						(918)						(928)						(4,016)						(3,814)
Net flows												523						144						(57)						24						(177)						634
Investment performance, interest credited and policy charges												(2,297)						(5,012)						(1,400)						1,634						5,287						(7,075)
Transfer from (to) GR												—						—						—						—						(57)						—
Other												—						—						—						—						—						—
Ceded to Global Atlantic (6)												—						—						—						(9,363)						—						(9,363)
Balance as of end of period												$	46,035					$	41,167					$	39,710					$	32,005					$	47,809					$	32,005
Notes:


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						15

(1) Includes both AUM and AUA. Prior period amounts related to the premiums and deposits were revised to include Mutual Fund AUA. Gross premium and deposits revisions for the year ended of December 31, 2021 of $189 million.

(2) For the nine months ended September 30, 2021, amounts reflect AV transfer of GMxB closed block business from GR to IR.

(3) Prior period amounts related to the net flows were revised to include Mutual Fund AUA. Net Flow revision for the year ended December 31, 2021 is $129 million.

(4) Prior period amounts related to Investment performance, interest credited and policy charges were revised to include Mutual Fund AUA. Investment performance, interest credited and policy charges revisions for the year ended December 31, 2021 is $30 million.

(5) December 31, 2021 beginning balance revision of $297 million to reflect inclusion of December 31, 2020 year-end Mutual Fund AUA ending balance.

(6) Effective October 3, 2022, AV excludes activity related to ceded AV to Global Atlantic. In addition, roll-forward reflects the AV ceded to Global Atlantic as of the transaction date. For additional information on the Global Atlantic see MD&A - Executive Summary “.EQUI-VEST Reinsurance Transaction”.


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						16

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


												For the Three Months Ended or As of																								Years Ended or As of
(in millions USD, unless otherwise indicated)												3/31/2022						6/30/2022						9/30/2022						12/31/2022						12/31/2021						12/31/2022						Change

Revenues
Net investment income (loss)												$	(23)					$	(26)					$	(9)					$	15					$	13					$	(43)					(430.8)		%
Net derivative gains (losses)												20						22						15						(16)						(13)						41						415.4		%
Investment management, service fees and other income												1,138						1,007						990						972						4,430						4,107						(7.3)		%
Segment Revenues												1,135						1,003						996						971						4,430						4,105						(7.3)		%

Benefits and other deductions
Commissions and distribution-related payments												176						159						152						143						708						630						(11.0)		%
Compensation and benefits, interest expense and financing fees and other operating costs and expense												675						623						641						598						2,512						2,537						1.0		%

Total benefits and other deductions												851						782						793						741						3,220						3,167						(1.6)		%

Operating earnings (loss), before income taxes												284						221						203						230						1,210						938						(22.5)		%
Income taxes												(46)						(40)						(35)						(41)						(208)						(162)						22.1		%
Operating earnings (loss), before noncontrolling interest												238						181						168						189						1,002						776						(22.6)		%
Less: Operating (earnings) loss attributable to the noncontrolling interest												(102)						(80)						(75)						(95)						(438)						(352)						19.6		%
Operating earnings (loss)												$	136					$	101					$	94					$	94					$	564					$	424					(24.8)		%

Summary Metrics

Adjusted operating margin (1)												31.5		%				27.7		%				25.1		%				28.9		%				33.6		%				28.4		%

Net flows (in billions USD) (2)												$	11.4					$	(2.7)					$	(10.5)					$	(1.9)					$	26.1					$	(3.6)

Total AUM (in billions USD)												$	735.4					$	646.8					$	612.7					$	646.4					$	778.6					$	646.4

Ownership Structure of AB

Holdings and its subsidiaries												63.0		%				63.5		%				62.8		%				59.9		%				63.0		%				59.9		%
AB Holding												36.3		%				35.7		%				36.5		%				39.4		%				36.2		%				39.4		%
Unaffiliated holders												0.7		%				0.8		%				0.7		%				0.7		%				0.8		%				0.7		%
Total												100.0		%				100.0		%				100.0		%				100.0		%				100.0		%				100.0		%

EQH economic interest												64.5		%				65.0		%				64.3		%				61.3		%				64.5		%				61.3		%
EQH average economic interest												64.5		%				64.8		%				64.3		%				62.4		%				64.5		%				64.0		%

Units of limited partnership outstanding (in millions)												271.8						269.4						272.6						286.0						271.5						286.0
Notes:

(1) Adjusted Operating Margin is a non-GAAP financial measure used by AllianceBernstein L.P. (“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) Discrete quarterly outflows related to AXA's redemptions for periods presented were $0.6 billion and $3.9 billion for the second and third quarter of 2022, respectively.


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						17

Investment Management and Research - Select Operating Metrics


												For the Three Months Ended or As of
(in billions USD, unless otherwise indicated)												3/31/2022						6/30/2022						9/30/2022						12/31/2022

AUM Roll-forward
Balance as of beginning of period												$	778.6					$	735.4					$	646.8					$	612.7
Sales/new accounts												40.9						23.9						19.8						30.9
Redemptions/terminations												(24.6)						(22.6)						(24.9)						(23.2)
Cash flow/unreinvested dividends												(4.9)						(4.0)						(5.4)						(9.6)
Net long-term (outflows) inflows (5)												11.4						(2.7)						(10.5)						(1.9)
Adjustment (3)												—						(0.4)						—						—
Acquisition (4)												—						—						12.2						—
Market appreciation (depreciation)												(54.6)						(85.5)						(35.8)						35.6
Net change												(43.2)						(88.6)						(34.1)						33.7
Balance as of end of period												$	735.4					$	646.8					$	612.7					$	646.4

Ending Assets by distribution channel
Institutions												$	325.9					$	290.5					$	279.4					$	297.3
Retail												292.6						251.0						232.3						242.9
Private Wealth												116.9						105.3						101.0						106.2
Total												$	735.4					$	646.8					$	612.7					$	646.4

Ending Assets by investment service
Equity
Actively Managed												$	265.2					$	223.2					$	202.9					$	217.9
Passively Managed (1)												66.2						55.7						52.1						53.8
Total Equity												$	331.4					$	278.9					$	255.0					$	271.7
Fixed Income
Actively Managed												$	280.8					$	254.7					$	239.1					$	242.8
Passively Managed (1)												12.7						12.3						9.5						9.4
Total Fixed Income												293.5						267.0						248.6						252.2
Total Alternatives/Multi-Asset Solutions (2)												110.5						100.9						109.1						122.5
Total												$	735.4					$	646.8					$	612.7					$	646.4

Notes:

(1) Includes index and enhanced index services.
(2) Includes certain multi-asset solutions and services not included in equity or fixed income services
(3) Approximately $0.4 billion of Institutional AUM was removed from our total assets under management during the second quarter of 2022 due to a change in the fee structure.
(4) The CarVal acquisition added approximately $12.2 billion of Institutional AUM in the third quarter of 2022.
(5) Discrete quarterly outflows related to AXA's redemptions for periods presented were as follows: $0.6 billion for the second quarter of 2022 and $3.9 billion for the third quarter of 2022.


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						18


Investment Management and Research - Net Flows
												For the Three Months Ended																								Years Ended or As of
(in billions USD, unless otherwise indicated)												3/31/2022						6/30/2022						9/30/2022						12/31/2022						12/31/2021						12/31/2022
Net Flows by Distribution Channel
Institutions
US												$	0.4					$	0.6					$	(0.6)					$	(2.2)					$	(3.8)					$	(1.8)
Global and Non-US												9.8						0.1						(5.7)						3.9						6.1						8.1
Total Institutions												$	10.2					$	0.7					$	(6.3)					$	1.7					$	2.3					$	6.3
Retail
US												$	4.2					$	2.3					$	(0.3)					$	(0.7)					$	25.3					$	5.5
Global and Non-US (4)												(5.2)						(4.6)						(4.7)						(2.7)						(4.5)						(17.1)
Total Retail (4)												$	(1.0)					$	(2.3)					$	(5.0)					$	(3.4)					$	20.8					$	(11.6)
Private Wealth
US (4)												$	1.4					$	(1.1)					$	0.5					$	0.1					$	(0.5)					$	0.8
Global and Non-US (4)												0.8						—						0.3						(0.3)						3.5						0.9
Total Private Wealth												$	2.2					$	(1.1)					$	0.8					$	(0.2)					$	3.0					$	1.7
Total Net Flows by Distribution Channel (4)												$	11.4					$	(2.7)					$	(10.5)					$	(1.9)					$	26.1					$	(3.6)
Net Flows by Investment Service
Equity Active
US												$	4.7					$	0.8					$	(0.3)					$	—					$	15.7					$	5.2
Global and Non-US												(0.1)						(0.5)						(4.7)						(2.6)						6.2						(7.9)
Total Equity Active (4)												$	4.6					$	0.3					$	(5.0)					$	(2.6)					$	21.9					$	(2.7)
Equity Passive (1)
US												$	(0.7)					$	0.5					$	(0.2)					$	(2.0)					$	(6.3)					$	(2.4)
Global and Non-US (4)												(1.1)						(0.7)						(0.7)						(0.3)						(1.2)						(2.9)
Total Equity Passive (1) (4)												$	(1.8)					$	(0.2)					$	(0.9)					$	(2.3)					$	(7.5)					$	(5.3)
Fixed Income - Taxable (3)
US (4)												$	0.3					$	(1.3)					$	(0.1)					$	(0.2)					$	(1.0)					$	(1.2)
Global and Non-US (4)												(5.0)						(4.3)						(3.5)						(3.8)						(8.9)						(16.7)
Total Fixed Income - Taxable												$	(4.7)					$	(5.6)					$	(3.6)					$	(4.0)					$	(9.9)					$	(17.9)
Fixed Income - Tax-Exempt
US (4)												$	1.0					$	0.6					$	—					$	(1.0)					$	6.0					$	0.7
Global and Non-US (4)												—						0.1						—						(0.1)						—						(0.1)
Total Fixed Income - Tax-Exempt												$	1.0					$	0.7					$	—					$	(1.1)					$	6.0					$	0.6
Fixed Income - Passive (1)
US (4)												$	(0.2)					$	0.5					$	(0.2)					$	(0.3)					$	4.5					$	(0.3)
Global and Non-US (4)												0.6						0.2						(1.9)						—						0.5						(1.0)
Total Fixed Income - Passive (1)												$	0.4					$	0.7					$	(2.1)					$	(0.3)					$	5.0					$	(1.3)
Alternatives/Multi-Asset Solutions (2)
US												$	0.9					$	0.5					$	0.4					$	0.7					$	2.1					$	2.5
Global and Non-US (4)												11.0						0.9						0.7						7.7						8.5						20.5
Total Alternatives/Multi-Asset Solutions (2) (4)												$	11.9					$	1.4					$	1.1					$	8.4					$	10.6					$	23.0
Total Net Flows by Investment Service (4)												$	11.4					$	(2.7)					$	(10.5)					$	(1.9)					$	26.1					$	(3.6)
Active vs. Passive Net Flows
Actively Managed
Equity (4)												$	4.6					$	0.3					$	(5.0)					$	(2.6)					$	21.9					$	(2.7)
Fixed Income (3) (4)												(3.7)						(4.8)						(3.6)						(5.1)						(3.9)						(17.3)
Alternatives/Multi-Asset Solutions (2) (4)												11.3						1.1						0.8						7.6						8.3						20.9
Total												$	12.2					$	(3.4)					$	(7.8)					$	(0.1)					$	26.3					$	0.9
Passively Managed (1)
Equity												$	(1.8)					$	(0.3)					$	(0.9)					$	(2.3)					$	(7.5)					$	(5.3)
Fixed Income												0.4						0.7						(2.1)						(0.3)						5.0						(1.3)
Alternatives/Multi-Asset Solutions (2) (4)												0.6						0.3						0.3						0.8						2.3						2.1
Total (4)												$	(0.8)					$	0.7					$	(2.7)					$	(1.8)					$	(0.2)					$	(4.5)
Total Active vs Passive Net Flows (4)												$	11.4					$	(2.7)					$	(10.5)					$	(1.9)					$	26.1					$	(3.6)
Notes:

(1) Includes index and enhanced index services.
(2) Includes certain multi-asset solutions and services not included in equity or fixed income services
(3) Discrete quarterly outflows related to AXA's redemptions for periods presented were as follows: $0.6 billion for the second quarter of 2022 and $3.9 billion for the third quarter of 2022.
(4) AB line item does not cross foot for the twelve months ended 2022 due to rounding.


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						19

Protection Solutions - Operating Earnings (Loss) and Summary Metrics


												For the Three Months Ended or As of																								Years Ended or As of
(in millions USD, unless otherwise indicated)												3/31/2022						6/30/2022						9/30/2022						12/31/2022						12/31/2021						12/31/2022						Change

Revenues
Policy charges, fee income and premiums												$	500					$	505					$	502					$	511					$	1,951					$	2,018					3.4		%
Net investment income (loss)												272						252						236						221						1,102						981						(11.0)		%
Net derivative gains (losses)												—						(5)						(13)						(2)						(20)						(20)						—		%
Investment management, service fees and other income												37						37						34						33						146						141						(3.4)		%
Segment revenues												809						789						759						763						3,179						3,120						(1.9)		%

Benefits and other deductions
Policyholders’ benefits												550						396						430						520						1,881						1,896						0.8		%
Remeasurement of liability for future policy benefits												8						5						22						12						(33)						47						242.4		%

Interest credited to policyholders’ account balances												128						122						130						131						516						511						(1.0)		%
Commissions and distribution-related payments												34						34						31						43						131						142						8.4		%
Amortization of deferred policy acquisition costs												29						29						29						30						116						117						0.9		%
Compensation and benefits, interest expense and financing fees and other operating costs and expense												63						70						79						78						255						290						13.7		%
Segment benefits and other deductions												812						656						721						814						2,866						3,003						4.8		%

Operating earnings (loss), before income taxes												(3)						133						38						(51)						313						117						(62.6)		%
Income taxes												—						(23)						(8)						11						(51)						(20)						60.8		%
Operating earnings (loss), before noncontrolling interest												(3)						110						30						(40)						262						97						(63.0)		%
Less: Operating (earnings) loss attributable to the noncontrolling interest												—						—						—						(1)						—						—						—		%
Operating earnings (loss)												$	(3)					$	110					$	30					$	(41)					$	262					$	97					(63.0)		%

Summary Metrics

Operating earnings (loss) - TTM: [A]												N/A						N/A						N/A						$	97					$	262					$	97					(63.0)		%

Benefit ratio												83.8		%				65.7		%				73.8		%				86.9		%				74.4		%				78.7		%

Gross written premiums (1)												$	778					$	760					$	769					$	776					$	3,065					$	3,083					0.6		%

Annualized premiums												$	77					$	67					$	74					$	74					$	287					$	292					1.8		%

Total in-force face amount (in billions USD) (2)												$	421.8					$	420.6					$	418.3					$	417.0					$	423.2					$	417.0					(1.5)		%

Notes:

(1) 1Q'22 variable universal life renewals previously reported as $514M during first quarter 2022. Amount updated to $249M during second quarter 2022 to properly reflect variable universal life product renewals. This resulted in a change for gross written premiums from $1,033 to $778.
(2) Total in-force face amount presented on a gross basis including ceded policies.


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						20

Protection Solutions - Select Operating Metrics


																		For the Three Months Ended or As of																								Years Ended or As of
(in millions USD, unless otherwise indicated)																		3/31/2022						6/30/2022						9/30/2022						12/31/2022						12/31/2021						12/31/2022

Sales Metrics
First Year Premiums and Deposits by Product Line:
Universal Life																		$	—					$	—					$	—					$	—					$	—					$	—
Indexed Universal Life																		6						4						4						5						45						19
Variable Universal Life																		85						76						71						77						287						309
Term																		4						3						3						3						16						13
Employee Benefits																		21						16						23						22						77						82
Other (1)																		—						—						—						1						1						1
Total																		$	116					$	99					$	101					$	108					$	426					$	424

Renewals by Product Line:
Universal Life																		$	193					$	185					$	207					$	179					$	824					$	764
Indexed Universal Life																		80						76						74						74						310						304
Variable Universal Life (2)																		249						239						244						257						968						989
Term																		93						94						90						96						379						373
Employee Benefits																		43						63						49						57						139						212
Other (1)																		4						4						4						5						19						17
Total																		662						661						668						668						2,639						2,659
Total Gross Premiums																		$	778					$	760					$	769					$	776					$	3,065					$	3,083


In-force Metrics
In-force Face Amount by Product (3) (in billions):
Universal Life (4)																		$	44.9					$	44.4					$	43.7					$	43.1					$	45.9					$	43.1
Indexed Universal Life																		27.9						27.7						27.6						27.5						27.9						27.5
Variable Universal Life (5)																		132.9						132.6						132.8						133.4						132.8						133.4
Term																		214.9						214.7						213.0						211.9						215.4						211.9
Whole Life																		1.2						1.2						1.2						1.1						1.2						1.1
Total																		$	421.8					$	420.6					$	418.3					$	417.0					$	423.2					$	417.0

In-force Policy Count by Product (3) (in thousands):
Universal Life (4)																		134						132						130						129						136						129
Indexed Universal Life																		65						65						64						64						65						64
Variable Universal Life (5)																		293						293						293						293						293						293
Term																		264						262						259						256						266						256
Whole Life																		16						16						16						15						16						15
Total																		772						768						762						757						776						757

Protection Solutions Reserves
General Account																		$	18,432					$	18,241					$	18,243					$	18,237					$	18,625					$	18,237
Separate Accounts																		15,883						13,524						12,783						13,634						17,012						13,634
Total																		$	34,315					$	31,765					$	31,026					$	31,871					$	35,637					$	31,871

Notes:

(1) For the individual life insurance premiums, Other includes Whole Life insurance and other products available-for-sale but not actively marketed.
(2) 1Q'22 variable universal life renewals previously reported as $514M during first quarter 2022. Amount updated to $249M during second quarter 2022 to properly reflect variable universal life product renewals.
(3) Includes individual life insurance and does not include Employee Benefits as it is a start-up business and therefore has immaterial in-force policies.
(4) Universal Life includes Guaranteed Universal Life.
(5) Variable Universal Life includes variable life insurance and corporate-owned life insurance.


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						21

Wealth Management - Operating Earnings (Loss) and Summary Metrics


												For the Three Months Ended or As of																								Years Ended or As of
(in millions USD, unless otherwise indicated)												3/31/2022						6/30/2022						9/30/2022						12/31/2022						12/31/2021						12/31/2022						Change

Revenues

Net investment income (loss)												—						—						1						1						—						2						100.0		%

Investment management, service fees and other income												376						368						352						348						1,437						1,444						0.5		%
Segment revenues												376						368						353						349						1,437						1,446						0.6		%

Benefits and other deductions




Commissions and distribution-related payments												239						245						231						225						946						940						(0.6)		%

Compensation and benefits, interest expense and financing fees and other operating costs and expense												93						91						92						94						408						370						(9.3)		%

Segment benefits and other deductions												332						336						323						319						1,354						1,310						(3.2)		%
																																																-0.280166435506241
Operating earnings (loss), before income taxes												44						32						30						30						83						136						63.9		%
Income taxes												(12)						(8)						(8)						(7)						(25)						(35)						(40.0)		%
Operating earnings (loss), before noncontrolling interest												32						24						22						23						58						101						74.1		%
Less: Operating (earnings) loss attributable to the noncontrolling interest												—						—						—						—						—						—						—		%
Operating earnings (loss)												$	32					$	24					$	22					$	23					$	58					$	101					74.1		%
																																																1.2824427480916
Revenue by Activity Type

Investment management, service fees and other income :
Investment management and advisory fees												139						135						125						120						505						519						2.8		%
Distribution fees												233						227						219						213						914						894						(2.2)		%
Interest Income												—						2						5						8						1						15						N/M
Service and Other income												3						5						3						6						17						17						(2.7)		%

Total Investment management, service fees and other income												$	376					$	368					$	352					$	348					$	1,437					$	1,444					0.5		%
Summary Metrics
Pre-tax operating margin												11.70		%				8.70		%				8.50		%				8.60		%				5.78		%				9.41		%
Net flows												1,659						1,161						1,117						575						7,213						4,512						(37.4)		%

Total AUA												$	78,873					$	70,411					$	68,393					$	72,406					$	82,794					$	72,406					(12.5)		%

Notes:


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						22

Wealth Management - Select Operating Metrics


												For the Three Months Ended or As of																								Years Ended or As of
(in millions USD, unless otherwise indicated)												3/31/2022						6/30/2022						9/30/2022						12/31/2022						12/31/2021						12/31/2022

AUA Roll-forward
Advisory assets :
Beginning assets												$	50,575					$	49,150					$	43,994					$	42,645					$	39,146					$	50,575
Net flows												1,531						988						809						186						6,471						3,513
Market appreciation (depreciation) and other												(2,956)						(6,144)						(2,157)						2,713						4,958						(8,545)
Total advisory ending assets												$	49,150					$	43,994					$	42,645					$	45,544					$	50,575					$	45,544

Brokerage and direct assets												$	29,723					$	26,417					$	25,748					$	26,862					$	32,219					$	26,862

Total Wealth Management assets
Beginning assets												$	82,794					$	78,873					$	70,411					$	68,393					$	61,984					$	82,794
Net flows												1,659						1,161						1,117						575						7,213						4,512
Market appreciation (depreciation) and other												(5,581)						(9,622)						(3,135)						3,437						13,596						(14,901)
Total Wealth Management ending assets												$	78,873					$	70,411					$	68,393					$	72,406					$	82,794					$	72,406

Cash balances												$	3,467					$	3,748					$	3,672					$	3,566					$	3,311					$	3,566

Advisors
Advisors												4,252						4,166						4,129						4,258						4,382						4,258

Revenue per advisor TTM ($ thousands)												N/A						N/A						N/A						$	344					$	332					$	344

Sales by Product Type
Advisory												$	2,745					$	2,379					$	2,114					$	1,850					$	11,449					$	9,089
Brokerage and Direct												711						654						805						907						3,037						3,077
Retirement, Premiums and Deposits												2,559						2,597						2,713						2,877						10,058						10,746
Total sales												$	6,015					$	5,631					$	5,632					$	5,634					$	24,544					$	22,912

Notes:


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						23

Legacy - Operating Earnings (Loss) and Summary Metrics


												For the Three Months Ended or As of																								Years Ended or As of
(in millions USD, unless otherwise indicated)												3/31/2022						6/30/2022						9/30/2022						12/31/2022						12/31/2021						12/31/2022						Change

Revenues
Policy charges, fee income and premiums												$	35					$	37					$	37					$	30					$	335					$	139					(58.5)		%
Net investment income (loss)												61						59						65						67						424						252						(40.6)		%
Net derivative gains (losses)												—						—						—						—						—						—						—		%
Investment management, service fees and other income												119						103						102						104						470						428						(8.9)		%
Segment revenues												215						199						204						201						1,229						819						(33.4)		%

Benefits and other deductions
Policyholders’ benefits												36						38						45						48						175						167						(4.6)		%
Remeasurement of liability for future policy benefits												1						1						(1)						(1)						9						—						(100.0)		%

Interest credited to policyholders’ account balances												12						13						13						11						53						49						(7.5)		%
Commissions and distribution-related payments												55						47						42						43						230						187						(18.7)		%
Amortization of deferred policy acquisition costs												16						17						16						16						66						65						(1.5)		%
Compensation and benefits, interest expense and financing fees and other operating costs and expense												19						14						26						7						72						66						(8.3)		%

Segment benefits and other deductions												139						130						141						124						605						534						(11.7)		%
																																																-0.280166435506241
Operating earnings (loss), before income taxes												76						69						63						77						624						285						(54.3)		%
Income taxes												(13)						(12)						(13)						(12)						(102)						(50)						51.0		%
Operating earnings (loss), before noncontrolling interest												63						57						50						65						522						235						(55.0)		%
Less: Operating (earnings) loss attributable to the noncontrolling interest												—						—						—						—						—						—						—		%
Operating earnings (loss)												$	63					$	57					$	50					$	65					$	522					$	235					(55.0)		%
																																																1.2824427480916
Summary Metrics

Operating earnings (loss) - TTM: [A]												N/A						N/A						N/A						$	235					$	522					$	235					(55.0)		%

Average Account Value (TTM)												$	37,530					$	31,489					$	25,449					$	23,501					$	41,648					$	23,501					(31.5)		%

Return on assets (TTM)												N/A						N/A						N/A						1.21		%				1.50		%				1.21		%




Net flows (1)												(345)						(799)						(499)						(588)						(3,492)						(2,231)						(36.1)		%






In-force Policy Count by Product (in thousands) (2):												313						308						303						299						318						299

Notes:

(1)Net flows excluded as it relates to AV ceded to Venerable for the year ended December 31, 2022 and 2021 were $(1.2) billion and $(830) million, respectively.
(2) As of December 31, 2021, March 31, 2022, June 30, 2022, September 30, 2022 and December 31, 2022, In-force Policy Count by Product presented on a gross basis includes 106 thousand, 104 thousand, 102 thousand, 101 thousand and 99 thousand ceded policies, respectively, related to the Venerable transaction.


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						24


Legacy - Select Operating Metrics
												For the Three Months Ended or As of																								Years Ended or As of
(in millions USD, unless otherwise indicated)												3/31/2022						6/30/2022						9/30/2022						12/31/2022						12/31/2021						12/31/2022


















Account Values (1)
General Account:
Balance as of beginning of period												$	988					$	1,149					$	960					$	947					$	1,122					$	988


Net flows (1)												(48)						(30)						(37)						(27)						(100)						(163)
Investment performance, interest credited and policy charges (1)												208						(196)						7						5						27						24
Ceded to Venerable (2)												—						—						—						—						(61)						—
Balance as of end of period												$	1,149					$	960					$	947					$	925					$	988					$	925

Separate Accounts:
Balance as of beginning of period												$	28,287					$	27,991					$	21,553					$	19,922					$	43,747					$	28,287


Net flows (1)												(298)						(806)						(479)						(561)						(3,392)						(2,144)
Investment performance, interest credited and policy charges (1)												2						(5,632)						(1,152)						1,196						4,798						(5,586)
Ceded to Venerable (2)												$	—					$	—					$	—					$	—					$	(16,866)					$	—
Balance as of end of period												$	27,991					$	21,553					$	19,922					$	20,557					$	28,287					$	20,557

Total:
Balance as of beginning of period												$	29,275					$	29,140					$	22,513					$	20,869					$	44,869					$	29,275


Net flows (1)												(345)						(799)						(499)						(588)						(3,492)						(2,231)
Investment performance, interest credited and policy charges (1)												210						(5,828)						(1,145)						1,201						4,825						(5,562)
Ceded to Venerable (2)												—						—						—						—						(16,927)						—
Balance as of end of period												$	29,140					$	22,513					$	20,869					$	21,482					$	29,275					$	21,482

Net Amount at Risk (NAR)
Total GMIB NAR												$	3,701					$	4,201					$	3,535					$	3,211					$	3,890					$	3,211

Total GMDB NAR												$	8,840					$	11,358					$	12,207					$	11,428					$	7,744					$	11,428
MRB Reserves (Net of Reinsurance)												$	4,425					$	3,985					$	3,877					$	4,287					$	6,178					$	4,287


Notes:
(1) Net flows excluded as it relates to AV ceded to Venerable for the year ended December 31, 2022 and 2021 were $(1.2) billion and $(830) million, respectively. Investment performance, interest credited and policy charges for the year ended December 31, 2022 and 2021 was $(3.4) billion and $589 million, respectively, are not included as it excludes activity related to ceded AV to Venerable.
(2) Effective June 1, 2021, AV excludes activity related to ceded AV to Venerable. In addition, roll-forward reflects the AV ceded to Venerable as of the transaction date. For additional information on the Venerable transaction see Note 1 of the Notes to Consolidated Financial Statements within the 10-Q.


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						25

Investments


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						26

Consolidated Investment Portfolio Composition


						Balances as of
(in millions USD, unless otherwise indicated)						December 31, 2021												December 31, 2022
						Amount (1)						% of Total						Amount (1)						% of Total
Composition of investment portfolio
Fixed maturities, available-for-sale, at fair value						$	78,216					70.9		%				$	63,361					65.1		%
Fixed maturities, at fair value using the fair value option						1,641						1.5		%				1,508						1.5		%
Mortgage loans on real estate						14,033						12.7		%				16,481						16.9		%
Policy loans						4,024						3.6		%				4,033						4.1		%
Other equity investments						2,975						2.7		%				3,152						3.2		%
Other invested assets						3,591						3.3		%				3,885						4.0		%
Subtotal investment assets						104,480						94.7		%				92,420						94.9		%
Trading securities						631						0.6		%				677						0.7		%
Total investments						105,111						95.3		%				93,097						95.6		%
Cash and cash equivalents						5,188						4.7		%				4,281						4.4		%
Total						$	110,299					100.0		%				$	97,378					100.0		%

General Account AFS Fixed maturities by industry (Based on amortized cost)
Corporate securities:
Finance						$	12,954					17.9		%				$	13,537					18.7		%
Manufacturing						12,212						16.8		%				11,797						16.3		%
Utilities						6,446						8.9		%				6,808						9.4		%
Services						8,191						11.3		%				8,299						11.5		%
Energy						3,854						5.3		%				3,740						5.2		%
Retail and wholesale						3,390						4.7		%				3,394						4.7		%
Transportation						2,181						3.0		%				2,277						3.2		%
Other						60						0.1		%				124						0.2		%
Total corporate securities						49,288						67.9		%				49,976						69.2		%
U.S. government and agency						13,056						18.0		%				7,054						9.8		%
Residential mortgage-backed (2)						90						0.1		%				908						1.3		%
Preferred stock						41						0.1		%				41						0.1		%
State & municipal						586						0.8		%				609						0.8		%
Foreign governments						1,124						1.5		%				985						1.4		%
Commercial mortgage-backed						2,427						3.3		%				3,823						5.3		%
Asset-backed securities						5,933						8.2		%				8,859						12.3		%
Total						$	72,545					100.0		%				$	72,255					100.0		%

General Account AFS Fixed maturities credit quality (3) (Based on amortized cost)
Aaa, Aa, A (NAIC Designation 1)						$	44,653					61.6		%				$	44,612					61.7		%
Baa (NAIC Designation 2)						25,141						34.7		%				24,843						34.4		%
Investment grade						69,794						96.2		%				69,454						96.1		%
Below investment grade (NAIC Designation 3 and 4)						2,751						3.8		%				2,800						3.9		%
Total						$	72,545					100.0		%				$	72,255					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.


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						27


Consolidated Results of General Account Investment Portfolio


						For the Years Ended or As of
(in millions USD, unless otherwise indicated)						December 31, 2021												December 31, 2022
						Yield						Amount (2)						Yield						Amount (2)
Fixed Maturities:
Income (loss)						3.40		%				$	2,429					3.57		%				$	2,619
Ending assets												72,545												72,255
Mortgages:
Income (loss)						4.08		%				547						3.92		%				587
Ending assets												14,033												16,481
Other Equity Investments (1):
Income (loss)						20.45		%				534						5.21		%				171
Ending assets												2,901												3,433
Policy Loans:
Income						5.01		%				203						5.35		%				215
Ending assets												4,024												4,033
Cash and Short-term Investments:
Income						(0.13)		%				(2)						(1.44)		%				(24)
Ending assets												1,662												1,419
Funding Agreements:
Interest expense and other												(56)												(156)
Ending (liabilities)												(6,647)												(8,501)
Total invested Assets:
Income						4.28		%				3,655						3.79		%				3,412
Ending assets												88,518												89,120
Short Duration Fixed Maturities:
Income (loss)						4.48		%				78						3.62		%				5
Ending assets												142												87
Total Net Investment Income:
Investment income						4.28		%				3,733						3.79		%				3,417
Less: investment fees (3)						(0.14)		%				(118)						(0.15)		%				(138)
Investment income, net						4.15		%				$	3,615					3.63		%				$	3,279
General Account Ending Net Assets												$	88,660											$	89,207
Operating Earnings adjustments:
Funding Agreements interest expense												56												156
AB and other non-General Account investment income												258												84
Operating Net investment income (loss)												$	3,929											$	3,519
Notes:

(1) Includes, as of December 31, 2021 and December 31, 2022, $319 million and $400 million of other invested assets. Amounts for certain consolidated VIE investments are shown net of associated non-controlling interest.
(2) Amount for fixed maturities and mortgages represents original cost, reduced by repayments, write-downs, adjusted amortization of premiums, accretion of discount and allowances. Cost for equity securities represents original cost reduced by write-downs; cost for other limited partnership interests represents original cost adjusted for equity in earnings and reduced by distributions.
(3) Investment fees are inclusive of investment management fees paid to AB.


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						28

Additional Information


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						29


Deferred Policy Acquisition Costs Rollforward


									For the Three Months Ended or As of																											Years Ended or As of
(in millions USD, unless otherwise indicated)												3/31/2022						6/30/2022						9/30/2022						12/31/2022						12/31/2021						12/31/2022

TOTAL
Beginning balance												$	6,113					$	6,180					$	6,254					$	6,322					$	5,791					$	6,113
Capitalization of commissions, sales and issue expenses												210						219						215						198						874						842
Amortization												(143)						(145)						(147)						(151)						(552)						(586)

Ending balance												$	6,180					$	6,254					$	6,322					$	6,369					$	6,113					$	6,369

Individual Retirement
Beginning balance												$	3,013					$	3,065					$	3,127					$	3,180					$	2,764					$	3,013
Capitalization of commissions, sales and issue expenses												132						144						137						126						543						539
Amortization												(80)						(82)						(84)						(87)						(294)						(333)

Ending balance												$	3,065					$	3,127					$	3,180					$	3,219					$	3,013					$	3,219

Group Retirement
Beginning balance												$	771					$	778					$	785					$	792					$	735					$	771
Capitalization of commissions, sales and issue expenses												22						21						22						23						100						88
Amortization												(15)						(14)						(15)						(15)						(64)						(59)

Ending balance												$	778					$	785					$	792					$	800					$	771					$	800

Protection Solutions
Beginning balance												$	1,559					$	1,579					$	1,596					$	1,614					$	1,474					$	1,559
Capitalization of commissions, sales and issue expenses												49						46						47						46						201						188
Amortization												(29)						(29)						(29)						(30)						(116)						(117)

Ending balance												$	1,579					$	1,596					$	1,614					$	1,630					$	1,559					$	1,630

Legacy
Beginning balance												$	631					$	623					$	614					$	606					$	667					$	631
Capitalization of commissions, sales and issue expenses												8						8						9						3						30						28
Amortization												(16)						(17)						(17)						(16)						(66)						(66)

Ending balance												$	623					$	614					$	606					$	593					$	631					$	593

Corporate and Other
Beginning balance												$	139					$	135					$	132					$	130					$	151					$	139
Capitalization of commissions, sales and issue expenses												(1)						—						—						—						—						(1)
Amortization												(3)						(3)						(2)						(3)						(12)						(11)
Reclassified to Assets held-for-sale												—						—						—						—						—						—
Ending balance												$	135					$	132					$	130					$	127					$	139					$	127


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						30


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, and Non-GAAP operating common EPS, 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 the variable annuity product MRBs. 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) Changes in the fair value of market risk benefits, net of reinsurance, including the related attributed fees and claims, offset by derivatives and other securities used to hedge the market risk benefits; and (ii) Market adjustments to deposit asset or liability accounts arising from reinsurance agreements which do not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk.;
•			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 primarily include restructuring costs related to severance and separation, lease write-offs related to non-recurring restructuring activities, COVID-19 related impacts, net derivative gains (losses) on certain Non-GMxB derivatives, net investment income from certain items including consolidated VIE investments, seed capital mark-to-market adjustments, unrealized gain/losses and realized capital gains/losses from sales or disposals of select securities, certain legal accruals; and a bespoke deal to repurchase UL policies from one entity that had invested in numerous policies purchased in the life settlement market, which disposed of the risk of additional COI litigation by that entity related to those UL policies; and
•			Income tax expense (benefit) related to the above items and non-recurring tax items, which includes the effect of uncertain tax positions for a given audit period.
Because Non-GAAP Operating Earnings excludes the foregoing items that can be distortive or unpredictable, management believes that this measure enhances the understanding of the Company’s underlying drivers of profitability and trends in our business, thereby allowing management to make decisions that will positively impact our business.
We use the prevailing corporate federal income tax rate of 21% while taking into account any non-recurring differences for events recognized differently in our financial statements and federal income tax returns as well as partnership income taxed at lower rates when reconciling Net income (loss) attributable to Holdings to Non-GAAP Operating Earnings.


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Use of Non-GAAP Financial Measures

Non-GAAP Operating ROE
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 AOCI. 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 AFS securities. Therefore, we believe excluding AOCI is more effective for analyzing the trends of our operations.
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 less preferred stock dividends by diluted common shares outstanding.


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						32

Reconciliation of Non-GAAP Measures (1/3)


												For the Three Months Ended or As of																								Years Ended or As of
(in millions USD, unless otherwise indicated)												3/31/2022						6/30/2022						9/30/2022						12/31/2022						12/31/2021						12/31/2022

Net income (loss) attributable to Holdings
Net income (loss) attributable to Holdings												$	530					$	967					$	594					$	62					$	1,757					$	2,153
Adjustments related to:
Variable annuity product features												(616)						(1,031)						(675)						129						1,115						(2,193)
Investment gains (losses), net												326						231						333						55						(867)						945

Net actuarial gains (losses) related to pension and other postretirement benefit obligations												19						19						19						25						120						82
Other adjustments (1) (2) (3)												228						177						50						150						626						605
Income tax (expense) benefit related to above adjustments												9						127						58						(76)						(208)						118
Non-recurring tax items												3						3						7						3						12						16
Non-GAAP Operating Earnings												$	499					$	493					$	386					$	348					$	2,555					$	1,726

Net income (loss) attributable to Holdings (4)												$	1.35					$	2.54					$	1.58					$	0.17					$	4.17					$	5.67
Less: Preferred stock dividends												0.04						0.07						0.04						0.07						0.19						0.21
Net income (loss) available to Holdings' common shareholders												1.32						2.47						1.54						0.10						3.98						5.46
Adjustments related to:
Variable annuity product features												(1.57)						(2.71)						(1.79)						0.35						2.65						(5.77)
Investment gains (losses), net												0.83						0.61						0.88						0.15						(2.08)						2.49

Net actuarial gains (losses) related to pension and other postretirement benefit obligations												0.05						0.05						0.05						0.07						0.29						0.22
Other adjustments (1) (2) (3)												0.58						0.47						0.13						0.39						1.48						1.58
Income tax (expense) benefit related to above adjustments												0.02						0.33						0.15						(0.20)						(0.49)						0.31
Non-recurring tax items												0.01						0.01						0.02						0.01						0.03						0.04
Non-GAAP Operating Earnings (loss) available to Holdings' common shareholders (4)												$	1.24					$	1.23					$	0.99					$	0.87					$	5.86					$	4.33

Book Value per common share
Book Value per common share												$	16.65					$	10.99					$	5.00					$	(0.44)					$	22.47					$	(0.44)
Less: Per share impact of AOCI												(3.39)						(11.05)						(18.57)						(24.63)						3.33						(24.63)
Book value per common share (ex. AOCI)												$	20.04					$	22.04					$	23.56					$	24.19					$	19.14					$	24.19



Notes:

(1) Includes separation costs of $82 million for the year ended December 31, 2021. Separation costs were completed during 2021. The impact per common share is $0.20 for the year ended December 31, 2021.
(2) Includes certain gross legal expenses related to the cost of insurance litigation and claims related to a commercial relationship of $50 million, $218 million and $207 million for the three months and year ended December 31, 2022 and year ended December 31, 2021, respectively. Includes policyholder benefit costs of $75 million for the year ended December 31, 2022 stemming from a deal to repurchase UL policies from one entity that had invested in numerous policies purchased in the life settlement market. The legal accruals impact per common share is $0.13, $0.57 and $0.50 for the three months and year ended December 31, 2022 and year ended December 31, 2021, respectively. Includes policyholder benefit costs of $0.20 and $0.00 for the years ended December 31, 2022 and 2021 stemming from a deal to repurchase UL policies from one entity that had invested in numerous policies purchased in the life settlement market. No adjustments were made to prior period non-GAAP operating EPS as the impact was immaterial.
(3) Includes Non-GMxB related derivative hedge losses of $34 million, ($34) million and $65 million for the three months and year ended December 31, 2022 and year ended December 31, 2021, respectively. The impact per common share is $0.09, ($0.09) and $0.14 for the three months and year ended December 31, 2022 and year ended December 31, 2021, respectively.
(4) For periods with a net loss, dilutive shares were not included in the calculation of net income (loss) available to shareholders per common share or Non-GAAP Operating Earnings per common share as inclusion of such shares would have an anti-dilutive effect.


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Reconciliation of Non-GAAP Measures (2/3)

						As of and for the Twelve Months Ended
(in millions USD, unless otherwise indicated)						12/31/2021																								12/31/2022

Net Income to Non-GAAP Operating Earnings
Net income (loss) attributable to Holdings						$	1,757																							$	2,153
Adjustments related to:
Variable annuity product features						1,115																								(2,193)
Investment (gains) losses						(867)																								945

Net actuarial (gains) losses related to pension and other postretirement benefit obligations						120																								82
Other adjustments						626																								605
Income tax (expense) benefits related to above adjustments						(208)																								118
Non-recurring tax items						12																								16
Non-GAAP Operating Earnings						$	2,555																							$	1,726



																											As of and for the Twelve Months Ended
																											12/31/2022
Return on Equity and Non-GAAP Operating Return on Equity - Trailing twelve months
Net income (loss) attributable to Holdings																											$	2,153
Less: Preferred stock																											(80)
Net income (loss) available to Holdings' common shareholders																											$	2,073
Average equity attributable to Holdings' common shareholders (ex. AOCI)																											$	8,389

Return on Equity (ex. AOCI)																											24.7		%

Non-GAAP Operating Earnings																											$	1,726
Less: Preferred stock																											(80)
Non-GAAP Operating Earnings available to Holdings' common shareholders																											$	1,646
Average equity attributable to Holdings' common shareholders (ex. AOCI)																											$	8,389

Non-GAAP Operating Return on Equity (ex. AOCI)																											19.6		%


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Reconciliation of Non-GAAP Measures (3/3)

																		Balances as of
(in millions USD, unless otherwise indicated)																					12/31/2021						3/31/2022						6/30/2022						9/30/2022						12/31/2022

Equity Reconciliation - Quarter-end Balances
Total equity attributable to Holdings' shareholders																					$	10,351					$	7,959					$	5,702					$	3,411					$	1,401
Less: Preferred Stock																					1,562						1,562						1,562						1,562						1,562
Total equity attributable to Holdings' common shareholders																					8,789						6,397						4,140						1,849						(161)
Less: Accumulated other comprehensive income (loss)																					1,303						(1,304)						(4,165)						(6,870)						(8,992)
Total equity attributable to Holdings' common shareholders (ex. AOCI)																					$	7,486					$	7,701					$	8,305					$	8,719					$	8,831


																		Balances as of
(in millions USD, unless otherwise indicated)																																													12/31/2022

Equity Reconciliation - Twelve Month Rolling Average
Total equity attributable to Holdings' shareholders																																													$	4,618
Less: Preferred Stock																																													1,562
Total equity attributable to Holdings' common shareholders																																													3,056
Less: Accumulated other comprehensive income (loss)																																													(5,333)
Total equity attributable to Holdings' common shareholders (ex. AOCI)																																													$	8,389


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Glossary of Selected Financial and Product Terms


Account Value (“AV”) - AV generally equals the aggregate policy account value of our retirement and protection products. General Account AV refers to account balances in investment options that are backed by the General Account while Separate Accounts AV refers to Separate Accounts investment assets. AV reflected net of reinsurance.
Advisory Assets - Assets invested in a variety of investments using an asset allocation model designed for the client’s objectives. The client is charged a fee based on the value of the assets in the account.
Annualized premiums - 100% of first year recurring premiums (up to target) and 10% of excess first year premiums or first year premiums from single premium products.

Assets Under Administration (“AUA”) - AUA includes non-insurance client assets that are invested in our savings and investment products or serviced by our Equitable Advisors platform. We provide administrative services for these assets and generally record the revenues received as distribution fees.
Assets Under Management (“AUM”) - AUM means investment assets that are managed by one of our subsidiaries and includes: (i) assets managed by AB; (ii) the assets in our General Account investment portfolio; and (iii) the Separate Account assets of our Individual Retirement, Group Retirement and Protection Solutions businesses. Total AUM reflects exclusions between segments to avoid double counting.
Average Account Value (TTM) - Calculated as an average of the previous twelve calendar months total Account Value balance as of end of period
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.
Brokerage Assets - Brokerage accounts which allow clients a variety of investments, including mutual funds, exchange traded Products, equities and fixed income, to be managed in one account. The client is charged for all buy and sell transactions.

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.
Direct Assets - Mutual Funds purchased through and registered directly with an Asset Management Company, no other agents, such as brokers or distributors, are involved in the transactions.
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.
Legacy - The Legacy segment consists of our fixed-rate GMxB business written prior to 2011. In 2023, we began reporting this business separately from our Individual Retirement business.
Liability for future policy benefits - the liability related to life insurance policies such as non-participating traditional life insurance policies (Term) and limited pay contracts (Payout, Pension).
Market risk benefits - (“MRBs”) are contracts or contract features that provide protection to the contract holder from other than nominal capital market risk and expose the Company to other than nominal capital market risk. Market risk benefits include contract features that provide minimum guarantees to policyholders and include GMIB, GMDB, GMWB, GMAB, and ROP DB benefits.
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.


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Return of premium (“ROP”) death benefit - This death benefit pays the greater of the account value at the time of a claim following the owner’s death or the total contributions to the contract (subject to adjustment for withdrawals). The charge for this benefit is usually included in the M&E fee that is deducted daily from the net assets in each variable investment option. We also refer to this death benefit as the Return of Principal death benefit.
Return on Assets - Calculated as trailing twelve months operating earnings, before income taxes, divided by trailing twelve months average account value.
Return on Equity (ex. AOCI) - Calculated as trailing twelve months net income (loss) attributable to Holdings' common shareholders divided by average equity attributable to Holdings' common shareholders, excluding Accumulated Other Comprehensive Income (“AOCI”).
Revenue per advisor - Calculated as trailing twelve months revenue, divided by the average number of advisors for each of the most recent four quarters
Trailing Twelve Months ("TTM") - The twelve calendar months preceding the balance sheet date of a given reporting period.


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Analyst Coverage, Ratings & Contact Information

Analyst Coverage

Firm

Analyst

Phone Number

Barclays

Tracy Benguigui

1 (212) 526-1561

Citi

Michael Ward

1 (212) 816-4269

Credit Suisse

Andrew Kligerman

1 (212) 325-5069

Evercore ISI

Thomas Gallagher

1 (212) 446-9439

Goldman Sachs

Alex Scott

1 (212) 902-9592

Jefferies

Suneet Kamath

1 (212) 778-8602

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

Raymond James

Wilma Burdis

1 (727) 567-9371

RBC Capital Markets

Mark Dwelle

1 (804) 782-4008

Truist Securities

Mark Hughes

1 (615) 748-4422

UBS

Brian Meredith

1 (212) 713-2492

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

Feb '23

Jun '22

Jan '23

Financial Strength Ratings:

Equitable Financial Life Insurance Company

A

A+

A1

Equitable Financial Life Insurance Company of America

A

A+

A1

Credit Ratings:

Equitable Holdings, Inc.

—

BBB+

Baa1

AllianceBernstein L.P. (1)

—

A

A2

Investor and Media Contacts

Contact Investor Relations

Contact Media Relations

Işıl Müderrisoğlu

Thomas Lewis

Sophia Kim

(212) 314-2476

(212) 314-4638

(212) 314-2010

IR@equitable.com

MediaRelations@equitable.com

ir.equitableholdings.com

www.equitableholdings.com

Notes:

(1) Last review dates: S&P as of Sep '22, Moody’s as of Jan '23.


4Q 2022 Financial Supplement – Updated for LDTI and Resegmentation						38

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