Earnings Call: Equitable Holdings (EQH) Q3 Earnings

$Axa Equitable Holdings(EQH)$ is one of America's leading financial services companies, preparing clients for their financial future since 1859 through two principal franchises, Equitable Life and AllianceBernstein.

Driven by solid performance across our retirement and asset management businesses, we reported strong third quarter results, with non-GAAP operating earnings of $1.94 per share, a 56% year-over-year increase and up 13% sequentially over the prior quarter. Sustained growth of our capital-light businesses, positive net inflows and favorable equity markets propelled AUM up 17% to reach $871 billion, a record high. We remain uniquely positioned through our leading insurance offerings, affiliated distribution model and premier asset management subsidiary to capture the full value chain for our stakeholders," said Mark Pearson, President and Chief Executive Officer.

Mr. Pearson continued, "Our fair value economic approach resulted in minimal assumption impacts in the third quarter and positions us well for LDTI while reinforcing our robust capital position and ability to deliver attractive returns. We have also made significant progress mitigating Reg. 213 redundant reserves since the half-year and are pleased to announce a XXX financing transaction, unlocking $1 billion of capital, as we continue to create value for our shareholders and generate significant free cash flow."

• Business segment highlights:
• Individual Retirement reported another record quarter in sales of our Structured Capital Strategies ("SCS") buffered annuity product with $1.9 billion in first year premium.
• Group Retirement gross premiums were $831 million in the quarter, with first year premiums up 39% and renewal premiums up 6% versus the prior year quarter, respectively.
• Investment Management and Research (AllianceBernstein or "AB")3 reported another quarter of net inflows, with $7.2 billion in the quarter, positive across all distribution channels.
• Protection Solutions gross written premiums up 8% year-over-year driven by shift to less interested-sensitive VUL and continued momentum in Employee Benefits business.

Over the past 3 years, Equitable holdings have gained a CAGR of 20% PA through a high amount of cash dividend. This rate has outperform even the S&P500. But as this rate cant continue for any business, my outlook is that this business will grow for 15% for the next 5 years.

Should you buy into this business?

Warren Buffet has always said Financial Companies are hard to analyze, but if you are able to analyze, it will pay off really well!