Equitable (NYSE:EQH) reported third-quarter non-GAAP operating earnings of $595 million, or $2.13 per share, and net income of $1.1 billion, or $4.05 per share, as the insurer prepares to complete its merger with Corebridge by year-end.
Excluding notable items, operating earnings were $1.98 per share, up 19% from a year earlier. Chief Executive Officer Mark Pearson said earnings per share excluding notable items rose 22% through the first nine months of 2026, keeping the company on track to meet its full-year target of more than 15% growth.
The company ended the quarter with $1.2 trillion of assets under management and administration, up 4% year over year, supported by positive net flows and favorable equity markets. Equitable returned $320 million to shareholders during the quarter, including $238 million in share repurchases.
Retirement, Wealth Management and Asset Management Flows
Equitable reported $1.1 billion of net inflows in its retirement business, with total sales rising 14%. The company also recorded $500 million of spread-lending net issuance, which was not included in net-flow figures.
Nick Lane, president of Equitable Financial, said individual retirement generated $1.5 billion in net flows, driven by record sales of $5.5 billion, including $4.2 billion in registered index-linked annuity, or RILA, sales. Group retirement flows were softer during the quarter, which Lane attributed in part to seasonal payroll-contribution patterns among teachers. The business reported 16% growth in first-year premium in its tax-exempt retirement segment.
Management said it has not seen a material change in competitive conditions in the RILA market over the past year. Lane said Equitable continues to emphasize profitable growth, differentiated distribution and disciplined asset-liability management.
Wealth management posted $2.7 billion in advisory net inflows, a record for the business, while advisor productivity increased 14% over the trailing 12 months. Segment earnings were $75 million, up 27% from a year earlier, aided by organic growth and a one-time payment related to the Stifel acquisition. Chief Financial Officer Robin Raju said $70 million was a reasonable baseline for fourth-quarter wealth-management earnings.
AllianceBernstein, Equitable’s asset-management affiliate, reported $6.6 billion of total net inflows, with institutional demand offsetting retail and private-wealth outflows. Its assets under management ended the quarter at $900 billion, slightly below the second quarter as net flows were offset by negative fixed-income returns.
AllianceBernstein’s private-markets assets under management rose 33% year over year to $105 billion. During the quarter, the firm expanded its commercial mortgage loan capabilities and onboarded $12 billion of loans from Equitable. Those assets will begin generating management fees in the fourth quarter.
Earnings Drivers and Investment Returns
In the retirement segment, earnings excluding notable items were $409 million. Net interest margin rose 12% year over year and 5% sequentially, benefiting from growth in general-account assets and alternative-investment returns. Core spreads, excluding alternatives, declined 5 basis points sequentially, which Raju said reflected timing effects from higher cash balances and faster resets in one-year RILA crediting rates than in floating-rate asset yields.
Raju said the company expects those timing effects to normalize and forecasts spreads to return to roughly first-half 2026 levels. He added that higher interest rates are broadly constructive for Equitable’s operations, although they have pressured real estate equity returns in the alternatives portfolio.
The alternatives portfolio, which represents about 3% of the general account, delivered an annualized 5% return in the quarter, at the high end of Equitable’s 4% to 5% guidance range but below its long-term expectation of 8% to 12%. The company expects a low-single-digit alternatives return in the fourth quarter, largely due to real estate equity exposure.
Notable items during the quarter included a $28 million favorable effect from the annual assumption review, an $11 million model-update benefit, and a $15 million legal reserve accrual. Equitable also recorded a $37 million out-of-period reinsurance benefit in its individual life business. Raju said the benefit was an internal accounting timing adjustment related to a prior reinsurance transaction and did not change the company’s arrangements with its reinsurer.
Corebridge Merger and Cost-Savings Progress
Equitable said regulators had begun approving its planned merger with Corebridge and that it expects to receive all required approvals during the fourth quarter, allowing the transaction to close by year-end. The company has selected the board for the combined organization and named its top 500 leaders.
Pearson said the combined company, referred to as New Equitable, would have more than $48 billion in trailing 12-month annuity sales between the two companies and approximately 10% market share. He said the business would be positioned among the top five companies in every major annuity product category.
Management expects the combined company to write $70 billion to $80 billion of new liabilities annually. Raju said Equitable expects to continue using AllianceBernstein as well as BlackRock and Blackstone to support its investment needs. AllianceBernstein Chief Executive Officer Seth Bernstein said the firm is assessing additional capabilities, including private credit and infrastructure, that could support the longer-duration liabilities expected from the combined company.
Equitable identified more than $100 million of run-rate expense savings expected to be recognized in the first half of 2027, primarily through initial leadership and headcount actions. The company said it remains on track for $150 million in first-year run-rate savings and at least $500 million by the end of 2028. Management identified duplicate roles, technology systems, third-party vendors and real estate as the principal sources of savings.
The company also completed the sale of its employee benefits business to The Hartford on Oct. 1. Pearson said Equitable lacked the scale to compete effectively in that market. Raju said proceeds from the sale are expected to support growth rather than alter the company’s capital-return approach.
Pearson said the call would be his last as Equitable’s chief executive before he becomes executive chairman following the merger. Marc Costantini is set to become chief executive officer of New Equitable.
About Equitable (NYSE:EQH)
Equitable Holdings, Inc (NYSE: EQH) is a financial services company that provides retirement, protection and wealth management solutions to individuals, families and institutions. Its businesses offer life insurance, annuities, investment products, retirement planning and financial advice.
Through Equitable, the company provides life insurance and retirement products, while Equitable Advisors offers financial planning, investment advisory and insurance services through a network of financial professionals.
