Equitable Holdings, Inc.
For the period ended Mar 31, 2026. Filed May 7, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 7, 2026
EQH$52.66-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001333986-25-000068
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001333986-26-000025
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 414 previous paragraphs and 350 current paragraphs.
225 unchanged; 68 reworded; 55 added; 116 removed; 5 previous and 2 current paragraphs rearranged.
Tables are not compared: 37 previous and 34 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (55)
Current report
Corebridge Merger
Current report
On March 26, 2026, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”), by and among Holdings, Corebridge Financial, Inc., a Delaware corporation (“Corebridge”), Mountain Holding, Inc., a newly formed Delaware corporation and wholly-owned subsidiary of Corebridge (“Corebridge HoldCo”), Marcy Holding, Inc., a newly formed Delaware corporation and a wholly-owned subsidiary of Corebridge HoldCo (“Equitable Merger Sub”), and Palisade Holding, Inc., a newly formed Delaware corporation and a wholly-owned subsidiary of Corebridge HoldCo (“Corebridge Merger Sub”).
Current report
Holdings and Corebridge have agreed, subject to the terms and conditions of the Merger Agreement, to effect an all stock merger transaction to combine their respective businesses by: (a) Corebridge Merger Sub merging with and into Corebridge, with Corebridge surviving such merger as a wholly-owned subsidiary of Corebridge HoldCo (the “Corebridge Merger”), (b) immediately following the consummation of the Corebridge Merger, Equitable Merger Sub merging with and into Holdings, with Holdings surviving such merger as a wholly-owned subsidiary of Corebridge HoldCo (the “Equitable Merger” and, together with the Corebridge Merger, the “Proposed Transaction”), and (c) as of the closing of the Proposed Transaction (the “Closing”), changing the name of Corebridge HoldCo to “Equitable Holdings, Inc.”
Current report
The Proposed Transaction is expected to close by end of 2026, subject to customary closing conditions, including the receipt of required regulatory approvals and approval of the respective shareholders of both Corebridge and Holdings.
Current report
In June 2023, the NAIC increased the RBC factor for structured security residual tranches from 30% to 45%, which became effective for year-end 2024 RBC filings. The NAIC has been assessing the RBC treatment of CLOs and in March 2026 released an initial proposal for new C-1 (asset risk) factors for CLOs in the life RBC formula to take effect for year-end 2026.
Current report
The NAIC undertook a principles-based bond project, considering factors to determine whether an investment in an asset-backed security, for example, qualifies for reporting on an insurer’s statutory financial statement as a bond on Schedule D-1 as opposed to Schedule BA (other long-term investment assets), the latter of which generally has a higher risk charge. As a result, the NAIC adopted a new, principles-based definition of a bond that became effective in certain statutory accounting guidance as of January 1, 2025. The guidance sets forth reporting and disclosure requirements.
Current report
Principle-Based Reserving
Current report
In August 2025, the NAIC adopted a principle-based reserving framework for non-variable annuities, similar to VM-20 for life insurance business and VM-21 for variable annuities, located in Section VM-22 of the NAIC Valuation Manual (“VM-22”). The framework for non-variable annuities applies to contracts issued on or after January 1, 2026 and companies have a three-year optional implementation period before the VM-22 PBR requirements become mandatory to all applicable blocks of business. The NAIC’s Life Actuarial (A) Task Force is currently considering further revisions for VM-22 specific to pension risk transfer annuities. The ultimate financial impact from these developments on Equitable Financial and Equitable America is uncertain but could result in more volatile and less predictable reserve and capital levels for these products.
Current report
FABN Disclosures
Current report
NAIC working groups are considering topics related to funding agreement-backed notes and similar programs, including a proposal currently under consideration to provide regulators with enhanced disclosures for funding agreements that support such programs.
Current report
On December 11, 2025, the NAIC adopted revisions to SSAP No.61—Life, Deposit-Type and Accident and Health Reinsurance which require combining reinsurance contracts that include both yearly renewable term and coinsurance portions to be evaluated for risk transfer on an overall basis (as well as for each component individually). The revisions are effective immediately for new and amended contracts, and subject to reporting on or before December 31, 2026 for existing contracts.
Current report
In May 2025, the NAIC’s Statutory Accounting Principles (E) Working Group (“SAPWG”) adopted revised annual statement reporting schedules for life insurers to require reporting entities to identify assets that are subject to a funds withheld or modified coinsurance (“modco”) arrangement in connection with reinsurance. In addition, SAPWG adopted revisions to SSAP No. 1–Accounting Policies, Risks & Uncertainties, and Other Disclosures, which expand restricted asset reporting to capture information on modco and funds withheld assets that are related to or affiliated with the reinsurer for disclosure in all quarterly and annual financial statements. The revisions are meant to capture everything affiliated with the reinsurer and the entire restricted asset disclosure will be required in all quarterly and annual financial statements. This update became effective for year-end 2025, with initial quarterly reporting required in the first quarter of 2026.
Current report
Non-GAAP Operating Earnings
Current report
(2)Includes a loss of $146 million and $165 million on Non-VA derivatives for the three months ended March 31, 2026 and 2025, respectively.
Current report
(3)For the three months ended March 31, 2025, includes $82 million of the gain on sale on AB's Bernstein Research Service attributable to Holdings.
Current report
(4)For the three months ended March 31, 2025, includes $78 million contingent payment gain recognized related to a fair value remeasurement of the contingent payment liability associated with AB's acquisition of CarVal in 2022.
Current report
(1)As a result of the novation of certain Legacy VA policies completed during the first quarter of 2025, the Company recorded a loss of $1.60 for the three months ended March 31, 2025.
Current report
(2)Includes a loss of $0.51 and $0.53 on Non-VA derivatives for the three months ended March 31, 2026 and 2025, respectively.
Current report
(3)For the three months ended March 31, 2025, includes $0.25 of the gain on sale on AB's Bernstein Research Service attributable to Holdings.
Current report
(4)For the three months ended March 31, 2025 includes $0.24 contingent payment gain recognized in connection with a fair value remeasurement of the contingent payment liability associated with AB's acquisition of CarVal in 2022.
Current report
Net income attributable to Holdings increased $558 million to $621 million during the three months ended March 31, 2026, from $63 million in the three months ended March 31, 2025. The following were notable changes in net income (loss):
Current report
•Policyholders’ benefits decreased by $374 million primarily due to the reinsurance transaction with RGA.
Current report
•Net derivative gains decreased $219 million primarily driven by a larger equity market decline during 2026 compared to 2025.
Current report
•Fee-type revenue decreased by $148 million mainly driven by the reinsurance transaction with RGA, partially offset by higher advisory fee-type revenue in our Asset Management and Wealth Management segments.
Current report
•Interest credited to policyholders’ account balances increased by $92 million mainly due to growth of account values in our Retirement segment, partially offset by the reinsurance transaction with RGA.
Current report
•Investment losses increased by $15 million primarily due to fixed maturity and mortgage valuation and impairment losses.
Current report
•Income tax expense increased by $132 million primarily due to higher pre-tax earnings as well as a higher effective tax rate.
Current report
Non-GAAP Operating Earnings
Current report
•Policyholders’ benefits decreased by $374 million due to the impact of the reinsurance transaction with RGA.
Current report
•Fee-type revenue decreased by $197 million mainly driven by the reinsurance transaction with RGA, partially offset by higher advisory fee-type revenue in our Asset Management and Wealth Management segments.
Current report
•Interest credited to policyholders’ account balances increased by $125 million mainly due to growth of AVs in our Retirement segment, partially offset by the reinsurance transaction with RGA.
Current report
Operating earnings increased $16 million to $396 million during the three months ended March 31, 2026, from $380 million during the three months ended March 31, 2025. The following were notable changes in operating earnings (losses):
Current report
•Net investment income increased by $206 million mainly due to higher average asset balances.
Current report
•Policyholders’ benefits decreased by $22 million mainly due to lower benefit payments in the payout business.
Current report
•Interest credited to policyholders’ account balances increased by $207 million mainly due to growth of account values.
Current report
•Commissions and distribution-related payments increased by $29 million mainly due to higher asset-based commissions and sales volumes.
Current report
Net Flows and AV
Current report
Operating earnings increased $14 million to $140 million during the three months ended March 31, 2026, from $126 million in the three months ended March 31, 2025. The following were notable changes in operating earnings (losses):
Current report
•Net derivative gains were $4 million for the three months ended March 31, 2026, compared to losses of $13 million for the three months ended March 31, 2025 primarily due to lower losses from economically hedging seed capital (partially offset by Net investment income) and market changes in total return swaps.
Current report
•Net income attributable to noncontrolling interest decreased by $17 million due to an increase in average economic ownership of AB, partially offset by higher pre-tax earnings.
Showing the first 40 of 55 passages. Open the source sections for the rest.
Removed paragraphs (116)
Previous report
RGA Reinsurance Transaction
Previous report
On July 31, 2025, Equitable Financial, as well as Equitable America and Equitable Financial L&A (each a “Ceding Company” and, collectively, the “Ceding Companies”), completed the master transaction agreement with RGA entered into on February 23, 2025 pursuant to which and subject to the terms and conditions set forth in such agreement, RGA entered into reinsurance agreements, as reinsurer, with each Ceding Company, to effect the RGA Reinsurance Transaction.
Previous report
At the closing of the transaction, (i) each of Equitable Financial and Equitable America entered into a separate coinsurance and modified coinsurance agreement with RGA and (ii) Equitable Financial L&A entered into a coinsurance agreement with RGA, each with an effective date of April 1, 2025, pursuant to which each ceding company ceded to RGA a 75% quota share of such ceding company’s in-force individual life insurance block and Closed Block. At the closing of the transaction, assets supporting the general account liabilities relating to the reinsured contracts were deposited into a trust account for the benefit of Equitable Financial and a trust account for the benefit of Equitable America and Equitable Financial L&A, which assets will secure RGA’s obligations to each ceding company under the applicable reinsurance agreement. Equitable Financial and Equitable America reinsured the applicable separate accounts relating to the applicable reinsured contracts on a modified coinsurance basis. In addition, the investment of assets in each trust account will be subject to investment guidelines and certain capital adequacy related triggers will require enhanced funding. The reinsurance agreements also contain additional counterparty risk management and mitigation provisions. Each ceding company will continue to administer the applicable reinsured contracts.
Previous report
As part of the transaction, on June 16, 2025, ABLP entered into an investment advisory agreement with RGA, pursuant to which AB will manage certain assets to be specified representing approximately 70% of assets supporting the reserves associated with the ceded policies under the reinsurance agreements.
Previous report
Novation
Previous report
Effective January 17, 2025, Equitable Financial novated certain legacy variable annuity policies sold between 2006-2008, comprised of non-New York “Accumulator” policies containing fixed rate Guaranteed Minimum Income Benefit and/or Guaranteed Minimum Death Benefit guarantees reinsured by Venerable under the combined co-insurance and modified coinsurance basis agreement executed on June 1, 2021.
Previous report
As a result of the novation of certain Legacy VA policies completed during the first quarter 2025, the Company recorded a loss of $499 million in pre-tax net income and an increase of $263 million in pre-tax AOCI, for a total impact loss of $236 million. The negative net income impact is mostly driven by the reduction of the purchased MRB asset of $2.0 billion and the reduction of Liability for MRBs of $1.6 billion, offset by a decrease in reinsurance deposit liability of $183 million. Purchased MRB asset reduction is larger than the direct MRB liability reduction since the Venerable reinsurance assets sit in a collateralized trust and thus materially reduce the non-performance risk. Deposit account liability decreases as novation leads to faster amortization of the liability. The novation impact from the base contracts and the contracts in payout status is less material, as the decrease in policyholders’ account balance of $33 million and decrease in liability for future policyholders’ benefits of $458 million are largely offset by a decrease in Amounts due to reinsurers of $432 million.
Previous report
Tender Offer and AB Unit Exchange
Previous report
On February 24, 2025, Holdings commenced the AB Tender Offer to purchase up to 46 million AB Holding Units at a price of $38.50 per unit, less any applicable tax withholding, for an aggregate purchase price of $1.8 billion. On April 3, 2025, Holdings purchased (the “Purchase”) 19.7 million AB Holding Units pursuant to the AB Tender Offer for an aggregate cost of $758 million. The AB Holding Units accepted for purchase represent approximately 17.9% of the outstanding units as of March 31, 2025. On July 10, 2025, AB and Holdings entered into an Amended and Restated Master Exchange Agreement to increase the AB Units that remain available for exchange from 4.8 million AB Units to 19.7 million AB Units, and Holdings exchanged 19.7 million AB Holding Units for an equal number of limited partnership interests in ABLP. The exchange had no effect on Holdings’ economic interest in AB.
Previous report
U.S. equity markets delivered strong returns in the third quarter of 2025, benefitting from resilient consumer spending, benign inflation readings and strong GDP growth. Earnings momentum also supported the equity rally, with consensus estimates indicating a year-over-year earnings growth of approximately 7-8% for the S&P 500 in the third quarter of 2025. The S&P 500 returned 8.1% during the current quarter, reaching record highs. Market breadth improved notably, with small-cap stocks outperforming large-caps, driving 12.4% returns for the Russell 2000 in the current quarter. The rally was led by the information technology and communication services sectors while sectors like energy and utilities lagged, constrained by volatile commodity prices and margin pressure. While AI-levered companies continued to drive outsized gains, the strength in small- and mid-cap segments lent confidence in broader participation.
Previous report
Derivatives Regulation and Clearing of Treasury Securities
Previous report
In 2023, the SEC adopted rules to require that covered clearing agencies have policies and procedures reasonably designed to require every direct participant of the agency to submit for clearing eligible secondary market transactions in U.S. Treasury securities. Participants must clear eligible cash transactions in U.S. Treasury securities beginning on December 31, 2026, and eligible repurchase and reverse repurchase transactions in U.S. Treasury securities beginning on June 30, 2027. As a result, certain transactions between such participants and us will be required to be cleared. The rule’s potential effect on the U.S. Treasury markets is uncertain.
Previous report
Federal Tax Legislation, Regulation and Administration
Previous report
Enacted Legislation
Previous report
On July 4, 2025, President Trump signed into law “An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14,” commonly referred to as the One Big Beautiful Bill Act (the “OBBBA”). This sweeping legislative package is designed to extend the expiring provisions of the Tax Cuts and Jobs Act (“TCJA”) and deliver additional tax relief for individuals and businesses. The tax provisions in the OBBBA are not expected to have a material impact on the Company.
Previous report
Assumption Updates and Model Changes
Previous report
We conduct our annual review of our assumptions and models during the third quarter of each year. We also update our assumptions as needed in the event we become aware of economic conditions or events that could require a change in our assumptions that we believe may have a significant impact to the carrying value of product liabilities and assets and consequently materially impact our earnings in the period of the change.
Previous report
Impact of Assumption Updates and Model Changes on Income from Continuing Operations before income taxes and Net income (loss)
Previous report
The table below presents the impact of our actuarial assumption update to our income (loss) from continuing operations, before income taxes and net income (loss).
Previous report
2025 Assumption Updates
Previous report
The impact of the economic assumption update in the third quarter 2025 was a decrease of $80 million to income (loss) from continuing operations, before income taxes and a decrease to net income (loss) of $63 million.
Previous report
The net impact of this assumption update on income (loss) from continuing operations, before income taxes of $80 million consisted of an increase in other income of $6 million, an increase in remeasurement of liability for future policy benefits of $3 million, a decrease in policyholders’ benefits of $1 million and an increase in change in MRBs and purchased MRBs of $84 million.
Previous report
2024 Assumption Updates
Previous report
The impact of the economic assumption update in the third quarter 2024 was an increase of $20 million to income (loss) from continuing operations, before income taxes and an increase to net income (loss) of $16 million.
Previous report
The net impact of this assumption update on income (loss) from continuing operations, before income taxes of $20 million consisted of an increase in other income of $21 million, an increase in remeasurement of liability for future policy benefits of $18 million, a decrease in policyholders’ benefits of $8 million and a decrease in change in MRBs and purchased MRBs of $9 million.
Previous report
Model Changes
Previous report
There were no material model changes in the first nine months of 2025 and 2024.
Previous report
Impact of Assumption Updates and Model Changes on Pre-tax Non-GAAP Operating Earnings Adjustments
Previous report
The table below presents the impact on pre-tax Non-GAAP Operating Earnings of our actuarial assumption updates by segment and Corporate and Other.
Previous report
2025 Assumption Updates
Previous report
The impact of our 2025 annual review on Non-GAAP Operating Earnings was favorable by $1 million before taking into consideration the tax impacts, or $1 million after tax.
Previous report
The net impact of assumption changes on Non-GAAP Operating Earnings increased other income by $5 million, increased remeasurement of liability for future policy benefits by $5 million, and decreased policyholders’ benefits by $1 million. Non-GAAP Operating Earnings excludes items related to variable annuity product features, such as changes in the MRBs and purchased MRBs.
Previous report
2024 Assumption Updates
Previous report
The impact of our 2024 annual review on Non-GAAP Operating Earnings was favorable by $4 million before taking into consideration the tax impacts, or $3 million after tax.
Previous report
The net impact of assumption changes on Non-GAAP Operating Earnings increased other income by $13 million, increased remeasurement of liability for future policy benefits by $18 million and decreased policyholders’ benefits by $9 million. Non-GAAP Operating Earnings excludes items related to variable annuity product features, such as changes in the MRBs and purchased MRBs.
Previous report
(2)Includes $1.1 billion as a result of assets transferred related to the reinsurance transaction with RGA for the three and nine months ended September 30, 2025.
Previous report
(3)Includes a gain of $223 million and $256 million on Non-VA derivatives for the three and nine months ended September 30, 2025, respectively. Also includes $(8) million and $6 million of expense related to a disputed billing practice of an AB third-party service provider for the three and nine months ended September 30, 2025, respectively and certain gross legal expenses related to the COI litigation of $106 million for the nine months ended September 30, 2024.
Previous report
(1)As a result of the novation of certain Legacy VA policies completed during the first quarter of 2025, the Company recorded a loss of $1.65 for the nine months ended September 30, 2025.
Previous report
(2)Includes $3.86 and $3.78 as a result of assets transferred related to the reinsurance transaction with RGA for the three and nine months ended September 30, 2025, respectively.
Previous report
(3)Includes a gain of $0.77 and $0.87 on Non-VA derivatives for the three and nine months ended September 30, 2025, respectively. Also includes $(0.03) and $0.02 of expense related to a disputed billing practice of an AB third-party service provider for the three and nine months ended September 30, 2025, respectively and certain gross legal expenses related to the COI litigation of $0.32 for the nine months ended September 30, 2024.
Showing the first 40 of 116 passages. Open the source sections for the rest.
Reworded paragraphs (68)
Previous wording
The following discussion and analysis of our financial condition and results of operations should be read in its entirety and in conjunction with the consolidated financial statements and related notes contained in Part I, Item 1 of this Quarterly Report on Form 10-Q, as well as “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section contained in our Annual Report on Form 10-K for the year ended December 31, 2024 (“2024 Form 10-K”).
Current wording
The following discussion and analysis of our financial condition and results of operations should be read in its entirety and in conjunction with the consolidated financial statements and related notes contained in Part I, Item 1 of this Quarterly Report on Form 10-Q, as well as “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section contained in our Annual Report on Form 10-K for the year ended December 31,2025, and the subsequent amendment thereto, filed with the SEC (“2025 Form 10-K”).
Previous wording
As previously announced, effective July 1, 2025, our financial reporting presentation was revised to reflect the reorganization of the Company’s reportable segments to reflect how the Company’s chief operating decision maker now makes operating decisions and assesses performance. We now manage our business through three segments: Retirement, Asset Management and Wealth Management. We report certain activities and items that are not included in these segments in Corporate and Other. Prior period results have been revised in connection with updates to our reportable segments. Note 17 of the Notes to the Consolidated Financial Statements for further information on our segments.
Current wording
As previously announced, effective July 1, 2025, our financial reporting presentation was revised to reflect the reorganization of the Company’s reportable segments to reflect how the Company’s chief operating decision maker now makes operating decisions and assesses performance. We manage our business through three segments: Retirement, Asset Management and Wealth Management. We report certain activities and items that are not included in these segments in Corporate and Other. Prior period results have been revised in connection with updates to our reportable segments. See Note 16 of the Notes to the Consolidated Financial Statements for further information on our segments.
Previous wording
That said, a wide variety of factors continue to cause market volatility and heighten concerns regarding inflation. These factors include, among others, uncertainty regarding the federal debt limit, decreased discretionary consumer spending, increased tariffs and other trade restrictions and barriers, interest rate changes, high fuel and energy costs, ongoing economic disruption, the possibility of an economic recession, and other macroeconomic factors, geopolitical events and uncertainty, including the effects of the U.S. federal government shutdown, the Ukraine-Russia conflict and conflict in the Middle East. For further information on the risk of increased volatility in the financial markets to our business, see “Risk Factors—Risks Relating to Conditions in the Financial Markets and the Economy—Conditions in the global capital markets and the economyand Equity market declines and volatility” in the 2024 Form 10-K.
Current wording
U.S. equity markets were volatile in the first quarter of 2026, with the S&P 500 Index declining 4.3%, while small-cap stocks proved more resilient as the Russell 2000 returned 0.9%. A wide variety of factors continue to cause market volatility and heighten concerns regarding inflation. These factors include, among others, concerns around private credit, interest rate changes,AI-related concerns, and escalating geopolitical tensions, including increased tariffs and other trade restrictions and barriers, high fuel and energy costs, ongoing economic disruption, and other factors, including the effects of the partial U.S. federal government shutdown, the Ukraine-Russia conflict, and conflict in the Middle East. For further information on the risk of increased volatility in the financial markets to our business, see “Risk Factors—Risks Relating to Conditions in the Financial Markets and Economy—Conditions in the global capital markets and the economyand Equity market declines and volatility” in the 2025 Form 10-K.
Previous wording
The NAIC is evaluating the risks associated with insurers’ investments in certain categories of structured securities, including CLOs. In 2023, the NAIC approved interim rules that raise capital requirements for holdings of CLO and other asset-backed security residual interests. Effective January 1, 2024, the NAIC adopted an amendment to the Purposes and Procedures Manual of the NAIC Investment Analysis Office (the “Purposes and Procedures Manual”) to give the NAIC’s Structured Securities Group (“SSG”), housed within the NAIC’s Securities Valuation Office (the “SVO”), responsibility for modeling CLO securities and evaluating tranche level losses across all debt and equity tranches under a series of calibrated and weighted collateral stress scenarios in order to assign NAIC Designations. Under the amended Purposes and Procedures Manual, CLO investments will no longer be broadly exempt from filing with the SVO based on ratings from credit rating providers. The NAIC’s goal is to ensure that the weighted average RBC factor for owning all tranches of a CLO more closely aligns with what would be required for directly owning all of the underlying loan collateral, in order to avoid RBC arbitrage. The Purposes and Procedures Manual requires insurers to begin reporting the financially modeled NAIC Designations for CLOs with their year-end 2025 financial statements, although the NAIC is considering delaying this to year-end 2026. The NAIC is collaborating with interested parties to refine the process for modeling CLO investments.
Current wording
The NAIC is evaluating the risks associated with insurers’ investments in certain categories of structured securities, including CLOs. In 2023, the NAIC approved interim rules that raise capital requirements for holdings of CLO and other asset-backed security residual interests. Effective January 1, 2024, the NAIC adopted an amendment to the Purposes and Procedures Manual of the NAIC Investment Analysis Office (the “Purposes and Procedures Manual”) to give the NAIC’s Structured Securities Group, housed within the NAIC’s Securities Valuation Office (the “SVO”), responsibility for modeling CLO securities and evaluating tranche level losses across all debt and equity tranches under a series of calibrated and weighted collateral stress scenarios in order to assign NAIC Designations. Under the amended Purposes and Procedures Manual, CLO investments will no longer be broadly exempt from filing with the SVO based on ratings from credit rating providers. The NAIC’s goal is to ensure that the weighted average RBC factor for owning all tranches of a CLO more closely aligns with what would be required for directly owning all of the underlying loan collateral, in order to avoid RBC arbitrage. The NAIC has delayed reporting multiple times with the goal currently being to require reporting by year-end 2026. The NAIC is collaborating with interested parties to refine the process for modeling CLO investments.
Previous wording
In related work, the NAIC’s Financial Condition (E) Committee launched a holistic review of the insurance regulatory framework related to insurer investment risk regulation, on which work began in 2023. The primary objective is to enhance the insurance regulatory framework in order to strengthen oversight of insurers’ investments. The proposed changes to modernize investment oversight include (i) reducing / eliminating “blind” reliance on credit rating providers while continuing to use them by implementing a due diligence framework that oversees the effectiveness of credit rating providers; and (ii) bolstering the SVO’s risk analysis capabilities by investing in a risk analytics tool and adding specialized personnel. In July 2025, the Financial Condition (E) Committee approved the formation of three new working groups to assist with implementing enhancements to the framework for regulating insurer investments.
Current wording
In related work, the NAIC’s Financial Condition (E) Committee launched a holistic review of the insurance regulatory framework related to insurer investment risk regulation, on which work began in 2023. The primary objective is to enhance the insurance regulatory framework in order to strengthen oversight of insurers’ investments. The proposed changes to modernize investment oversight include (i) reducing / eliminating “blind” reliance on credit rating providers while continuing to use them by implementing a due diligence framework that oversees the effectiveness of credit rating providers; and (ii) bolstering the SVO’s risk analysis capabilities by investing in a risk analytics tool and adding specialized personnel. Effective January 1, 2026, the NAIC replaced the former Valuation of Securities (E) Task Force with a new Invested Assets (E) Task Force and three working groups related to the oversight of insurance company investments and credit rating provider matters.
Previous wording
Various industry groups brought litigation against the DOL seeking to overturn the DOL Rule. On July 25, 2024, the U.S. District Court for the Eastern District of Texas issued a stay of the effective date of portions of the DOL Rule. On July 26, 2024, the U.S. District Court for the Northern District of Texas issued a stay of the effective date of the DOL Rule as a whole. The DOL initially appealed the stays issued in these cases to the U.S. Court of Appeals for the Fifth Circuit, but in early 2025, the court granted the DOL’s motion to pause proceedings while it reviews its posture on these cases. The DOL has since indicated that it intends to review and re-issue, likely in revised form, the DOL Rule.
Current wording
Various industry groups brought litigation against the DOL seeking to overturn the DOL Rule. On July 25, 2024, the U.S. District Court for the Eastern District of Texas issued a stay of the effective date of portions of the DOL Rule. On July 26, 2024, the U.S. District Court for the Northern District of Texas issued a stay of the effective date of the DOL Rule as a whole. The DOL initially appealed the stays issued in these cases to the U.S. Court of Appeals for the Fifth Circuit, but in early 2025, the court granted the DOL’s motion to pause proceedings while it reviews its posture on these cases. On March 17, 2026, the Court issued an order vacating the 2024 DOL fiduciary rule package in its entirety. With this order, the pre-2024 versions of the definition of fiduciary investment advice, PTE 84-24, PTE 2020-02, and the other PTEs will remain in effect going forward.
Previous wording
•GMxB reinsurance contracts. Historically, GMxB reinsurance contracts were used to cede to non-affiliated reinsurers a portion of our exposure to variable annuity products that offer GMxB features. We account for the reinsurance contracts as MRBs and report them at fair value. In addition, on June 1, 2021, we ceded legacy variable annuity policies sold by Equitable Financial between 2006-2008 (the “Block”), comprised of non-New York “Accumulator” policies containing fixed rate GMIB and/or GMDB guarantees.
Current wording
•GMxB reinsurance contracts. Historically, GMxB reinsurance contracts were used to cede to non-affiliated reinsurers a portion of our exposure to variable annuity products that offer GMxB features. We account for the reinsurance contracts as MRBs and report them at fair value. In addition, on June 1, 2021, we ceded the Block, comprised of non-New York “Accumulator” policies containing fixed rate GMIB and/or GMDB guarantees.
Previous wording
Most of the variable annuity products, variable universal life insurance and universal life insurance products we offer maintain policyholder deposits that are reported as liabilities and classified within either Separate Accounts liabilities or policyholder account balances. Our products and riders also impact liabilities for future policyholder benefits, MRBs and unearned revenues and assets for DAC and DSI. The valuation of these assets and liabilities (other than deposits) is based on differing accounting methods depending on the product, each of which requires numerous assumptions and considerable judgment. The accounting guidance applied in the valuation of these assets and liabilities includes, but is not limited to, the following: (i) traditional life insurance products for which assumptions are updated annually to estimate the value of future death, morbidity or income benefits; (ii) universal life insurance and variable life insurance secondary guarantees for which benefit liabilities are determined by estimating the expected value of death benefits payable when the account balance is projected to be zero and recognizing those benefits ratably over the accumulation period based on total expected assessments; and (iii) certain product guarantees reported as MRBs at fair value.
Current wording
Most of the variable annuity products, VUL insurance and UL insurance products we offer maintain policyholder deposits that are reported as liabilities and classified within either Separate Accounts liabilities or policyholder account balances. Our products and riders also impact liabilities for future policyholder benefits, MRBs and unearned revenues and assets for DAC and DSI. The valuation of these assets and liabilities (other than deposits) is based on differing accounting methods depending on the product, each of which requires numerous assumptions and considerable judgment. The accounting guidance applied in the valuation of these assets and liabilities includes, but is not limited to, the following: (i) traditional life insurance products for which assumptions are updated annually to estimate the value of future death, morbidity or income benefits; (ii) UL insurance and variable life insurance secondary guarantees for which benefit liabilities are determined by estimating the expected value of death benefits payable when the account balance is projected to be zero and recognizing those benefits ratably over the accumulation period based on total expected assessments; and (iii) certain product guarantees reported as MRBs at fair value.
Previous wording
(1)As a result of the novation of certain Legacy VA policies completed during the first quarter of 2025, the Company recorded a loss of $499 million in pre-tax net income and an increase of $263 million in pre-tax AOCI, for a total impact loss of $236 million for the nine months ended September 30, 2025.
Current wording
(1)As a result of the novation of certain Legacy VA policies completed during the first quarter of 2025, the Company recorded a loss of $499 million for the three months ended March 31, 2025.
Previous wording
AV generally equals the aggregate policy account value of our retirement 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.
Current wording
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.
Previous wording
•Compensation, benefits, interest and other operating expenses increased by $537 million mainly due to the Venerable novation loss and a fair value adjustment of the contingent payment liability recorded in the third quarter 2024 in our Asset Management segment.
Current wording
•Compensation, benefits, interest and other operating expenses decreased by $517 million mainly due to the Venerable novation loss recorded in the prior year.
Previous wording
•Change in market risk benefits and purchased market risk benefits decreased by $450 million mainly due to more favorable interest rate movements during the third quarter 2025 compared to the third quarter 2024.
Current wording
•Change in market risk benefits and purchased market risk benefits decreased by $347 million mainly due to an increase in interest rates in the first quarter of 2026 compared to a decrease in interest rates in 2025.
Previous wording
•Net investment income increased by $94 million mainly due to higher average asset balances, partially offset by the reinsurance transaction with RGA.
Current wording
•Net investment income increased by $36 million mainly due to higher average asset balances, partially offset by the reinsurance transaction with RGA.
Previous wording
•Commissions and distribution-related payments increased by $52 million mainly due to higher distribution and advisory fee type revenue from higher retirement sales and average asset balances in our Wealth Management segment, higher asset-based commissions and sales volume in our Retirement segment and higher payments for the distribution of AB mutual funds resulting from higher average AUM in our Asset Management segment.
Current wording
•Commissions and distribution-related payments increased by $55 million mainly due to higher distribution and advisory fee-type revenue from higher retirement sales and average asset balances in our Wealth Management segment, and higher asset-based commissions and sales volumes in our Retirement segment.
Previous wording
•Amortization of DAC increased by $59 million mainly due to growth in our Retirement segment from sales momentum.
Current wording
•Amortization of DAC increased by $21 million mainly due to growth in our Retirement segment from sales momentum.
Previous wording
Non-GAAP Operating Earnings decreased by $261 million to $1.2 billion for the nine months ended September 30, 2025 from $1.5 billion in the nine months ended September 30, 2024. The following were notable changes in Non-GAAP Operating Earnings:
Current wording
Non-GAAP Operating Earnings increased by $51 million to $472 million for the three months ended March 31, 2026 from $421 million in the three months ended March 31, 2025. The following were notable changes in Non-GAAP Operating Earnings:
Previous wording
•Interest credited to policyholders’ account balances decreased by $45 million primarily due to the reinsurance transaction with RGA.
Current wording
•Compensation, benefits, interest expense and other operating costs decreased by $45 million mainly due to the reinsurance transaction with RGA, partially offset by higher incentive compensation and higher servicing and general administrative expenses in our Asset Management segment.
Previous wording
•Net income attributable to the noncontrolling interest decreased by $46 million mainly due to lower gains from consolidated VIEs and an increase in average economic ownership of AB, partially offset by higher AB pre-tax earnings.
Current wording
•Net income attributable to the noncontrolling interest decreased by $18 million mainly due to increase in average economic ownership of AB, partially offset by higher pre-tax earnings.
Previous wording
•Commissions and distribution-related payments increased by $52 million mainly due to higher distribution and advisory fee type revenue from higher retirement sales and average asset balances in our Wealth Management segment, higher asset-based commissions and sales volume in our Retirement segment and higher payments for the distribution of AB mutual funds resulting from higher average AUM in our Asset Management segment.
Current wording
•Commissions and distribution-related payments increased by $55 million mainly due to higher distribution and advisory fee-type revenue from higher retirement sales and average asset balances in our Wealth Management segment,and higher asset-based commissions and sales volumes in our Retirement segment.
Previous wording
•Amortization of DAC increased by $59 million mainly due to growth in our Retirement segment from sales momentum.
Current wording
•Amortization of DAC increased by $21 million mainly due to growth in our Retirement segment from sales momentum.
Previous wording
As previously announced, effective July 1, 2025, our financial reporting presentation was revised to reflect the reorganization of the Company’s reportable segments to reflect how the Company’s chief operating decision maker now makes operating decisions and assesses performance. Prior period results have been revised in connection with updates to our reportable segments.
Current wording
As previously announced, effective July 1, 2025, our financial reporting presentation was revised to reflect the reorganization of the Company’s reportable segments to reflect how the Company’s CODM now makes operating decisions and assesses performance. Prior period results have been revised in connection with updates to our reportable segments.
Previous wording
•Fee-type revenue increased by $23 million mainly due to higher separate account values from market appreciation.
Current wording
•Fee-type revenue increased by $19 million mainly due to higher separate account values from market appreciation and a reclassification of certain fees related to our RILA product.
Previous wording
•Net derivative losses decreased by $12 million mainly due to lower losses from economically hedging seed capital investments (partially offset by Net investment income).
Current wording
•Compensation, benefits, interest expense and other operating costs decreased by $12 million mainly due to higher expense capitalization.
Previous wording
•Income tax expense decreased by $30 million mainly driven by lower pre-tax earnings and a lower effective rate for the three months ended September 30, 2025.
Current wording
•Income tax expense decreased by $15 million mainly driven by a lower effective rate for the three months ended March 31, 2026.
Previous wording
•Amortization of DAC increased by $57 million mainly due to growth in the business from sales momentum.
Current wording
•Amortization of DAC increased by $21 million mainly due to growth in the business from sales momentum.
Previous wording
•The increase in AV of $19.8 billion in the nine months ended September 30, 2025 was driven by an increase in investment performance as a result of market appreciation and change in fair value of embedded derivative instruments of $15.1 billion in the nine months ended September 30, 2025 and net inflows of $4.7 billion.
Current wording
•The decline in AV of $3.3 billion in the three months ended March 31, 2026, was driven by a decrease in investment performance as a result of market depreciation and change in fair value of embedded derivative instruments of $(4.2) billion in the three months ended March 31, 2026, partially offset by net inflows of $1.3 billion.
Previous wording
•Net inflows of $4.7 billion were $0.8 billion lower than in the nine months ended September 30, 2024, mainly driven by higher outflows in the nine months ended September 30, 2025, partially offset by higher gross premiums.
Current wording
•Net inflows of $1.3 billion were $336 million lower than in the three months ended March 31, 2025, mainly driven by higher outflows in the three months ended March 31, 2026, partially offset by higher gross premiums.
Previous wording
The Asset Management segment provides diversified investment management and related services to a broad range of clients around the world. Operating earnings (loss), net of tax, presented here represents our average economic interest in AB of approximately 69%, 66%, 61% and 61% during the three and nine months ended September 30, 2025 and 2024, respectively. The increase in economic interest was due to the purchase of AB Holding Units relating to the AB Tender Offer completed on April 3, 2025.
Current wording
The Asset Management segment provides diversified investment management and related services to a broad range of clients around the world. Operating earnings (loss), net of tax, presented here represents our average economic interest in AB of approximately 68% and 62% during the three months ended March 31, 2026 and 2025, respectively. The increase in economic interest was due to the purchase of AB Holding Units relating to the AB Tender Offer completed on April 3, 2025.
Previous wording
(2)Includes certain multi-asset solutions and services not included in equity of fixed income services.
Current wording
(2)Includes certain multi-asset solutions and services not included in equity or fixed income services.
Previous wording
•Fee-type revenue increased by $49 million primarily due to higher investment base advisory fees and higher distribution revenue from higher average AUM, partially offset by lower revenue from performance fees.
Current wording
•Fee-type revenue increased by $18 million primarily due to higher investment base advisory fees from higher average AUM partially offset by lower performance fees.
Previous wording
•Net investment income decreased by $61 million primarily due to the reinsurance transaction with RGA.
Current wording
•Net investment income decreased by $9 million mainly due to lower gains from seed capital investments (offset by Net derivatives losses).
Previous wording
•Total AUM as of September 30, 2025 was $860.1 billion, up $31.0 billion or 3.7%, compared to June 30, 2025. During the third quarter 2025, AUM increased as a result of market appreciation of $33.3 billion, partially offset by net outflows of $2.3 billion. Market appreciation was attributed to Retail of $13.2 billion, Institutions of $13.2 billion, and Private Wealth of $6.9 billion. Net outflows were due to Institutions net outflows of $1.8 billion, Retail net outflows of $1.7 billion, partially offset by Private Wealth net inflows of $1.2 billion.
Current wording
•Total AUM as of March 31, 2026, was $838.6 billion, down $28.3 billion, or 3.3%, compared to December 31, 2025. The decrease is primarily the result of market depreciation of $21.2 billion and net outflows of $7.1 billion. Market depreciation of $21.2 billion is attributed to Institutions of $5.0 billion, Retail of $14.7 billion and Private Wealth of $1.5 billion. Net outflows were driven by Retail net outflows of $5.8 billion and Institutions net outflows of $1.9 billion, partially offset by Private Wealth net inflows of $0.6 billion.
Previous wording
•Investment management, service fees and other income increased by $122 million mainly due to higher advisory fee type revenue attributed to higher average asset balances combined with increased distribution fees from higher retirement sales.
Current wording
•Investment management, service fees and other income increased by $79 million mainly due to higher advisory fee-type revenue attributed to higher average asset balances combined with increased distribution fees from higher retirement sales.
Previous wording
•The increase in AUA of $6.1 billion in the three months ended September 30, 2025 was mainly driven by market appreciation and strong advisory net flows of $2.2 billion.
Current wording
•The increase in AUA of $5.0 billion in the three months ended March 31, 2026, was mainly driven by $4.5 billion of acquired assets and net new assets of $2.0 billion, partially offset by market depreciation of $1.5 billion.
Previous wording
•Net new assets of $6.2 billion were $2.6 billion higher than in the nine months ended September 30, 2024 driven by higher inflows.
Current wording
•Net new assets of $2.0 billion were $40 million higher than in the three months ended March 31, 2025 driven by higher inflows.
Previous wording
Operating losses increased by $100 million to $159 million during the three months ended September 30, 2025 from an operating loss of $59 million during the three months ended September 30, 2024. The following were notable changes in operating earnings:
Current wording
Operating losses decreased by $11 million to $119 million during the three months ended March 31, 2026, from an operating loss of $130 million during the three months ended March 31, 2025. The following were notable changes in operating earnings:
Previous wording
•Interest credited to policyholders’ account balances decreased by $54 million primarily due to the reinsurance transaction with RGA.
Current wording
•Interest credited to policyholders’ account balances decreased by $82 million primarily due to the reinsurance transaction with RGA.
Previous wording
•Net investment income decreased by $117 million primarily due to lower average balances primarily related the reinsurance transaction with RGA.
Current wording
•Net investment income decreased by $188 million primarily due to lower average asset balances primarily related to the reinsurance transaction with RGA.
Previous wording
(1)Includes, as of September 30, 2025, September 30, 2024 and December 31, 2024 respectively, $424 million, $412 million and $431 million of other invested assets. Amounts for certain consolidated VIE investments are shown net of associated non-controlling interest.
Current wording
(1)Includes, as of March 31, 2026 and March 31, 2025, respectively, $415 million and $362 million of other invested assets. Amounts for certain consolidated VIE investments are shown net of associated non-controlling interest.
Previous wording
The mortgage portfolio primarily consists of commercial, agricultural, and residential mortgage loans. The investment strategy for the mortgage loan portfolio emphasizes diversification by property type and geographic location with a primary focus on asset quality. The commercial mortgage loan portfolio is backed by high quality properties located in primary markets typically owned by experienced institutional investors with a demonstrated ability to manage their assets through business cycles. Our commercial loan portfolio is monitored on an ongoing basis, assigning credit quality ratings for each loan, with the particular emphasis on loans that are scheduled to mature in the next 12 to 24 months. Scheduled maturities for the remainder of 2025 and full year 2026, respectively are $0.8 billion and $2.9 billion, or 4% and 17% of the commercial mortgage portfolio. The commercial mortgage portfolio consists of 80% fixed rate loans and 20% floating rate loans. For floating rate loans, the borrower is typically required to purchase an interest rate cap to the scheduled maturity of the loan to protect against rising rates.
Current wording
The mortgage portfolio primarily consists of commercial, agricultural, and residential mortgage loans. The investment strategy for the mortgage loan portfolio emphasizes diversification by property type and geographic location with a primary focus on asset quality. The commercial mortgage loan portfolio is backed by high quality properties located in primary markets typically owned by experienced institutional investors with a demonstrated ability to manage their assets through business cycles. Our commercial loan portfolio is monitored on an ongoing basis, assigning credit quality ratings for each loan, with particular emphasis on loans that are scheduled to mature in the next 12 months. Scheduled maturities for the remainder of 2026 are $3.0 billion and 17% of the commercial mortgage portfolio. The commercial mortgage portfolio consists of 81% fixed rate loans and 19% floating rate loans. For floating rate loans, the borrower is typically required to purchase an interest rate cap to the scheduled maturity of the loan to protect against rising rates.
Showing the first 40 of 68 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
•Net income attributable to noncontrolling interest increased by $23 million mainly due to an increase in average economic ownership of AB, partially offset by higher pre-tax earnings.
Current report — wording carried from elsewhere
•Net investment income increased by $16 million mainly due to higher average asset balances, partially offset by the reinsurance transaction with RGA.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
Net Income (Loss) Attributable to Holdings
Previous report — wording carried elsewhere
•Amortization of DAC increased by $18 million mainly driven by growth in the business from sales momentum.
Previous report — wording carried elsewhere
Long-Term Net Flows and AUM
Previous report — wording carried elsewhere
$6.6 billion. Market appreciation of $74.5 billion is attributed to Institutions of $32.2 billion, Retail of $27.6 billion and Private Wealth of $14.7 billion. Net outflows were driven by Retail net outflows of $5.6 billion and Institutions net outflows of $2.7 billion, partially offset by Private Wealth net inflows of $1.7 billion.
Previous report — wording carried elsewhere
•Investment management, service fees and other income increased by $51 million mainly due to higher advisory fee type revenue attributed to higher average assets balances combined with increased distribution fees from higher retirement sales.