Equitable (EQH 3.28%), a diversified provider of insurance, retirement, asset management, and financial planning services, reported its Q2 2025 earnings on August 5, 2025. The headline news from the release was a mixed performance: adjusted non-GAAP earnings per share (EPS) for Q2 2025 exceeded analyst expectations at $1.41 versus the $1.28 estimate, while actual reported revenue (non-GAAP operating earnings) fell short of consensus by a significant margin. Compared to Q2 2024, both reported revenue and EPS declined sharply, with reported revenue declining by nearly one-third year-over-year and non-GAAP EPS dropping 23% year-over-year. The completion of a major life reinsurance deal with RGA on July 31, 2025, marked a strategic milestone, significantly reducing risk from mortality volatility and bolstering Equitable’s capital flexibility. The quarter reflected continued strength in retirement and wealth management, offset by asset management outflows and Protection Solutions volatility.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $1.10 | $1.28 | $1.43 | (23.1%) |
| Revenue | $2.36 billion | $3.22 billion | N/A | (32.8%) |
| Non-GAAP Operating Earnings | $352 million | $495 million | (28.9%) | |
| Total Assets Under Management/Administration | $1.07 trillion | $987 billion | 8.4% | |
| Book Value per Common Share (ex. AOCI) | $24.37 | $28.30 | (13.9%) |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Equitable’s Business Model and Recent Focuses
Equitable operates across three main business lines: retirement, asset management, and affiliated distribution. The company is organized into six segments including Individual Retirement, Group Retirement, Asset Management, Protection Solutions, Wealth Management, and Legacy blocks. This structure helps spread risk and capture earnings opportunities across a range of financial services.
Recent company strategy has emphasized diversifying its earnings sources, growing its extensive distribution network, and managing risk through both hedging and reinsurance. Key success factors include increasing assets under administration, attracting net inflows across wealth and retirement products, and protecting the balance sheet with strong capital levels. Regulatory compliance and risk management remain ongoing priorities as product complexity and market dynamics evolve.
Quarter in Review: Milestones, Segment Performance, and Capital Initiatives
This quarter, the most notable achievement was the closing of a significant individual life reinsurance deal with RGA. The transaction, closed on July 31, 2025, reduced Equitable’s mortality risk exposure by 75% and unlocked over $2 billion of value. The company’s combined NAIC risk-based capital (RBC) ratio was greater than 500% on a pro-forma basis following the individual life transaction and planned dividends to Holdings. Equitable plans to use the freed capital from the RGA life reinsurance transaction for share buybacks, debt reduction, and to reinforce its core retirement and asset management businesses. Management confirmed $1.7 billion in subsidiary dividends are planned for the second half of 2025 to further support corporate liquidity.
In the Retirement segment, Individual Retirement posted sustained net inflows of $1.7 billion, with first-year premiums up by 7%. The Group Retirement business also stayed positive, though inflows slowed, reflecting ongoing demand in institutional accounts. Wealth Management continued to expand, with advisory net inflows of $2.0 billion and a 16% jump in assets under administration to $110 billion. Advisor productivity in this area rose 8% year-over-year.
Asset Management, driven largely by AllianceBernstein’s investment services, ended the quarter with $829.1 billion in assets under management (AUM), up 8% year-over-year. However, this growth stemmed from rising market values, as the segment saw significant net outflows totaling $6.7 billion, including $4.8 billion in retail outflows. Management linked these outflows primarily to April’s market volatility. Operating earnings for Asset Management improved to $131 million from $101 million, supported by higher base fees and increased Equitable ownership in AllianceBernstein.
The Protection Solutions segment recorded a substantial operating loss, swinging from $72 million in operating earnings in Q2 2024 to a $58 million operating loss. This decline was mainly due to elevated mortality claims, including late-reported claims tied to a third-party administrator. These “notable items” contributed $74 million to overall after-tax adjustments and highlight the importance of risk mitigation through reinsurance and process improvement efforts moving forward.
Company-wide, Equitable returned $318 million to shareholders, including $236 million in share repurchases, exceeding its 60–70% payout target range. Corporate liquidity at the holding company stood at $0.8 billion as of June 30, 2025, comfortably above its internal target of $0.5 billion.
Products and Developments: Elevating Retirement, Wealth, and Asset Management
Its “all-weather” portfolio approach continues to attract clients looking for combination products that balance income and growth potential. In Individual Retirement, it is showing growth in accumulation-oriented life products. Employee Benefits within Protection Solutions also grew, with first-year premiums up 7% year-over-year, despite segment earnings volatility.
Asset Management made further advances in private market investments and insurance asset management, utilizing $15 billion of a targeted $20 billion private markets commitment to AllianceBernstein. This deepens Equitable’s diversification and offers new fee-based growth sources. Wealth Management achieved record advisory assets of $110 billion. benefiting from improved advisor productivity (up 8% year-over-year) and increased client flows.
Outlook and Priorities
Looking ahead, Equitable’s management reaffirmed confidence in its multi-year targets. These include an aim for $2 billion in annual cash generation, 12–15% compound annual earnings growth, and a 60–70% payout ratio through fiscal 2027. Management noted that growth and earnings acceleration in the second half of fiscal 2025 are expected, contingent on normalized capital markets and reduced mortality volatility post-reinsurance. No further formal guidance figures were provided for fiscal-year revenue or EPS beyond these broad 2027 financial goals.
Future priorities for investors to monitor include the trend in net flows within the Asset Management segment, especially if current outflows persist, as well as any shifts in the pace of retirement and wealth management asset growth. Watch for any lasting impact from one-off claims or notable items, as well as the company’s ongoing capital deployment strategy in buybacks and dividends.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
