stockrowWhat it does
Equitable Holdings is a financial services company that helps individuals and institutions save, invest and plan for retirement. Founded in 1859 and headquartered in New York City, it is led by President and Chief Executive Officer Mark Pearson. The company operates through subsidiaries in retirement, asset management and wealth management.
Its Equitable insurance business sells annuities, workplace retirement products and institutional savings products. An annuity is a contract that can help a customer accumulate retirement savings or provide income in retirement. Some products link returns to market indexes while limiting both potential gains and some losses; others offer optional lifetime income guarantees for an additional fee. Equitable also offers life insurance.
AllianceBernstein, or AB, manages investments for institutions, individual investors and private wealth clients. Its services span stocks, bonds, multi-asset portfolios and alternative investments. Equitable owns an approximate 68% economic interest in AB and controls its business as general partner.
Equitable Advisors provides financial planning, investment advice, insurance and annuities through its advisor network. Its advisors distribute Equitable products as well as products from other providers. The company’s model combines making retirement products, managing assets and distributing products and advice.
Equitable completed the sale of its employee benefits business to The Hartford effective October 1, 2026. It also has a planned merger with Corebridge Financial, which remained subject to regulatory approvals as of its third-quarter update.
How it makes money
Equitable earns revenue principally from fees, investment income and insurance premiums. Its three reportable segments are Retirement, Asset Management and Wealth Management; other activities are reported in Corporate and Other.
Retirement earns investment income and fees from individual annuities, workplace plans and institutional products. Its registered index-linked annuities tie performance to an index or other reference, with a cap on gains and a buffer against losses. Some versions offer guaranteed income for a separate fee. The company also sells variable annuities and workplace products that combine investment options with recordkeeping, administrative and participant services. Workplace contributions come through payroll deductions, creating recurring renewal premiums.
In its spread lending program, Equitable issues funding agreements that promise a specified return and invests the proceeds in fixed income assets. It earns income from the spread between investment returns and the cost of funding. Annuity pricing also reflects expected investment returns, policyholder behavior, capital requirements, hedging costs and expenses.
Asset Management earns advisory and service fees, generally calculated as a percentage of assets under management. AB can also earn performance-based fees when investment results meet the terms of a client’s arrangement. Wealth Management earns asset-based advisory fees, brokerage transaction revenue, planning fees and revenue from distributing insurance and annuity products. Client assets are a significant driver of that segment’s revenue.
Retirement operating earnings were $1.5 billion for the year ended December 31, 2025; company-wide non-GAAP operating earnings were $595 million in the third quarter of 2026. These are different measures at different scopes. Equitable’s fee income changes with account values, assets under management and administration, and customer flows.
Customers and how it sells
Equitable serves individuals and families saving for retirement, seeking retirement income or buying protection. Its individual annuities are primarily sold to affluent and high-net-worth customers. Workplace products serve plans sponsored by educational institutions, municipalities and nonprofits, as well as small and medium-sized businesses. Institutional customers use products such as in-plan annuities and guaranteed investment contracts.
Equitable distributes individual annuities through its own advisors and through banks, broker-dealers, investment advisers and insurance partners. For the year ended December 31, 2025, Equitable Advisors represented 38% of individual annuity first-year premiums and third-party distributors represented 62%. No other single distribution firm contributed more than 10% of sales in 2025.
AB serves pension plans, foundations, endowments, insurers, governments, retail investors and private wealth clients. Equitable was AB’s largest client, representing 16% of its assets under management as of December 31, 2025 and 4% of its net revenues for the year ended December 31, 2025. Institutional investment agreements can generally be terminated at any time or on relatively short notice.
Equitable’s insurance and advisor franchises serve customers across the United States. AB operates globally, including in the United States, Europe, the Middle East, Africa and Asia. The insurance subsidiaries are licensed across U.S. jurisdictions and Bermuda.
Suppliers and costs
Equitable’s principal costs include policyholder benefits, interest credited to customer accounts, sales commissions, advisor compensation, employee compensation and other operating expenses. Benefits are affected by mortality, withdrawals and market conditions; distribution payments vary with the premiums and fees generated by intermediaries and advisors.
The company does not manufacture physical goods. It creates insurance and retirement contracts, manages investment portfolios and provides advice. It uses outside distribution firms alongside Equitable Advisors, and its workplace investment options include both proprietary and third-party funds. AB also distributes retail products through financial intermediaries and pays intermediaries for distribution.
Retirement-product pricing includes the cost of hedging and the capital needed to support contracts. Equitable uses reinsurance and derivatives to manage some of its exposures. In 2025, its insurance subsidiaries ceded a 75% quota share of their in-force individual life insurance block and Closed Block to RGA; Equitable continues to administer the affected contracts. AB has an agreement to manage assets supporting some of the reinsured policies.
In the third quarter of 2026, retirement deferred acquisition cost amortization increased $18 million sequentially. Equitable attributed the increase to growth in the business and an assumption update reflecting higher lapse rates.
- Revenue$11.7B
- Cost of revenue−$7.1B
- Selling, general and administrative−$3.2B
- Other operating costs−$2.3B
- Operating income−$969.0M
Competitive position
Equitable competes for annuity customers with life insurers, banks, mutual fund companies and investment managers. Product features, financial strength, distribution, investment options, service and technology affect customer choice. In workplace retirement, competitors include insurers, asset managers, recordkeepers and other financial institutions. Equitable notes that annuity products can be replicated once they are publicly available.
AB competes for assets with investment managers, fund sponsors, banks, insurers and other financial institutions. Investment performance, research, fees, personnel and the ability to sell active management when some investors favor passive strategies are among its competitive factors. Equitable Advisors competes with other advisory firms and financial institutions for both clients and advisors.
Corebridge Financial operates in annuities and is Equitable’s planned merger partner. The companies must operate independently until the merger closes. Equitable reported that their combined annuity sales represented approximately 10% market share on a trailing 12-month basis; this is not Equitable’s standalone share.
Our reading: Equitable’s advisor network is a meaningful distribution advantage because it sells the company’s products and maintains customer relationships, but third-party channels and rival advisors remain important. Our reading: Combining product manufacturing with AB’s asset management can create connections between businesses, although investment clients can leave and fees depend on performance and asset levels. Our reading: Product design alone is a limited moat because competitors can replicate annuities.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Corebridge Financial, Inc. | Individual annuities and retirement products; planned merger partner | High |
Growth opportunities
Equitable’s strategy is to participate across the retirement chain: create retirement products, manage assets and distribute products and advice. The company sees demand for protected investment exposure, retirement income and financial advice. It estimates that the U.S. retirement asset pool exceeds $50 trillion and says more than half sits in individual retirement accounts or defined contribution plans, where individuals control the funds and bear investment risk.
In the third quarter of 2026, Retirement reported $1.1 billion of net inflows. Wealth Management reported $2.7 billion of advisory net inflows, while AB reported $6.6 billion of total net inflows. During the quarter, AB expanded its commercial mortgage loan capabilities and onboarded $12 billion of loans from Equitable; the company expects those assets to begin generating fees in the fourth quarter.
Equitable closed its acquisition of Stifel Independent Advisors in the first quarter of 2026. The planned Corebridge merger is intended to expand product distribution and wealth management. Equitable expects to receive the required regulatory approvals in the fourth quarter and close the merger at year-end 2026; closing is not assured.
The company expects at least $500 million of run-rate expense savings by the end of 2028 from the merger. It has identified over 100 million of run-rate savings to be recognized in the first half of 2027. These are company expectations, not completed results.
- $7.6BFY2021
- $12.6BFY2022
- $10.5BFY2023
- $12.4BFY2024
- $11.7BFY2025
Structural risks
- Markets and fees: Equity market declines and outflows can reduce account values and assets under management, lowering fees. Volatility can also increase hedging costs and affect sales, required reserves and capital.
- Interest rates and policyholder behavior: Rate changes can narrow spreads between investment returns and amounts credited to customers. Rapid increases can also lead to more withdrawals and surrenders, potentially requiring asset sales at a loss. Equitable reported higher lapses in the third quarter of 2026.
- Guarantees and risk management: Annuity guarantees expose the company to equity-market and interest-rate movements. Hedging and reinsurance are designed to mitigate exposure, but changes in derivative values and reinsurance credit spreads can contribute to net income volatility.
- Asset management flows: AB’s revenue depends on the market value and composition of assets it manages. Institutional and private wealth agreements are generally terminable at any time or on relatively short notice; performance-based fees may not be earned if targets are missed.
- Regulation and holding-company liquidity: Insurance regulators impose capital, reserve and investment requirements and restrict subsidiary dividends. Equitable Holdings depends on payments from subsidiaries to meet its obligations, and regulatory limits can reduce those payments.
- Merger execution: The Corebridge merger requires regulatory approvals. The company’s anticipated expense savings depend on combining operations after closing.
Bottom line
Our reading
Equitable combines insurance contracts, investment management and financial advice, earning fees as well as income from investing against its obligations. Its distribution network and relationship with AB connect the businesses, but market values, interest rates and policyholder behavior affect earnings across them. The planned Corebridge merger could expand that platform and reduce costs, while adding approval and integration demands.