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BUSINESS SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
BUSINESS SEGMENT INFORMATION BUSINESS SEGMENT INFORMATION
We have six reportable segments: Individual Retirement, Group Retirement, Asset Management, Protection Solutions, Wealth Management and Legacy.
These segments reflect the manner by which the Company’s chief operating decision maker (“CODM”) views and manages the business. A brief description of these segments follows:
•The Individual Retirement (“IR”) segment offers a diverse suite of variable annuity products which are primarily sold to affluent and high net worth individuals saving for retirement or seeking retirement income.
•The Group Retirement (“GR”) segment offers tax-deferred investment and retirement services or products to plans sponsored by educational entities, municipalities, and not-for-profit entities, as well as small and medium-sized businesses.
•The Asset Management (“AM”) segment provides diversified investment management and related solutions globally to a broad range of clients through three main client channels - Institutional, Retail and Private Wealth.
•The Protection Solutions (“PS”) segment includes our life insurance and group EB businesses.
•The Wealth Management (“WM”) segment offers discretionary and non-discretionary investment advisory accounts, financial planning and advice, life insurance, and annuity products through Equitable Advisors.
•The Legacy (“L”) segment primarily consists of the capital intensive fixed-rate GMxB business written in the Individual Retirement market prior to 2011.
The CODM is the chief executive officer and President of Holdings. The CODM evaluates the reported measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. Significant segment expenses are part of the CODM review and are critically important to understand the level of profitability of operating segments but also the overall company performance. This assessment will inform the way the allocation of resources will be done among the different operating segments.
Measurement
Operating earnings (loss) is the financial measure which primarily focuses on the Company’s segments’ results of operations as well as the underlying profitability of the Company’s core business. By excluding items that can be distortive and unpredictable such as investment gains (losses) and investment income (loss) from derivative instruments, the Company believes operating earnings (loss) by segment enhances the understanding of the Company’s underlying drivers of profitability and trends in the Company’s segments.
Operating earnings is calculated by adjusting each segment’s net income (loss) attributable to Holdings for the following items:
•Items related to variable annuity product features, which include: (i) changes in the fair value of MRB and purchased MRB, including the related attributed fees and claims, offset by derivatives and other securities used to hedge the MRB which result in residual net income volatility as the change in fair value of certain securities is reflected in OCI and due to our statutory capital hedge program; and (ii) market adjustments to deposit asset or liability accounts arising from reinsurance agreements which do not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk;
•Investment (gains) losses, which includes credit loss impairments of securities/investments, sales or disposals of securities/investments, realized capital gains/losses and valuation allowances;
•Net actuarial (gains) losses, which includes actuarial gains and losses as a result of differences between actual and expected experience on pension plan assets or projected benefit obligation during a given period related to pension, other postretirement benefit obligations, and the one-time impact of the settlement of the defined benefit obligation;
•Other adjustments, which primarily include restructuring costs related to severance and separation, lease write-offs related to non-recurring restructuring activities, net derivative gains (losses) on certain Non-GMxB derivatives, net investment income from certain items including consolidated VIE investments, seed capital mark-to-market adjustments, unrealized gain/losses and realized capital gains/losses from sales or disposals of select securities, certain legal accruals; a bespoke deal to repurchase UL policies from one entity that had invested in numerous policies purchased in the life settlement market, which disposed of the risk of additional COI litigation by that entity related to those UL policies, impact of the annual actuarial assumption updates attributable to LFPB when the majority of the impact relates to the non-core business; and
•Income tax expense (benefit) related to the above items and non-recurring tax items, which includes the effect of uncertain tax positions for a given audit period and changes to the deferred tax valuation allowance.
The General Account investment portfolio is used to support the insurance and annuity liabilities of our Individual Retirement, Group Retirement, Protection Solutions and Legacy business segments.
During the third quarter 2024, the Company moved revenues and expenses related to payout annuitizations from the Legacy segment to the Individual Retirement segment. Now all payout annuities are reported within the Individual Retirement segment as the block is managed on an aggregate basis. Prior periods have been recast to reflect this change.
Revenues derived from any customer did not exceed 10% of revenues for the three and six months ended June 30, 2025 and 2024.
The Company accounts for inter-segment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices.
The table below presents operating earnings (loss) by segment and Corporate and Other (C&O):
Three Months Ended June 30, 2025
IRGRAMPSWMLC&OEliminations
Total
(in millions)
Segment revenues$1,006 $309 $1,094 $825 $471 $100 $226 $(230)$3,801 
Benefits and other deductions
Policyholders’ benefits76 — — 603 — — 108 — 787 
Interest credited to policyholders’ account balances408 68 — 145 — 9 175 — 805 
Commissions and distribution related payments101 44 197 41 296 29 2 (222)488 
Amortization of deferred policy acquisition costs127 16 — 32 — 15 3 — 193 
Compensation and benefits6 9 429 27 82 5 11 — 569 
Interest expense and financing fees— — 9 — — — 69 (6)72 
Significant segment expenses718 137 635 848 378 58 368 (228)2,914 
Other segment items (1)31 23 196 46 24 8 32 (2)358 
Income taxes(42)(25)(48)11 (18)(6)36 — (92)
Less: Operating (earnings) loss attributable to the noncontrolling interest— — 84 — — — 1 — 85 
Operating earnings (loss)$215 $124 $131 $(58)$51 $28 $(139)$— $352 
_____________
(1)Other segment items include Remeasurement for liability for future policy benefits and Other operating expenses and costs. Additionally, other segment items reflected in Asset Management segment is primarily driven by other operating expense and costs related to general and administrative costs and promotion and servicing expenses.
 Three Months Ended June 30, 2024
 IRGRAMPSWMLC&OEliminationsTotal
(in millions)
Segment revenues$888 $283 $1,051 $834 $442 $117 $230 $(227)$3,618 
Benefits and other deductions
Policyholders’ benefits78 — — 473 — — 116 — 667 
Interest credited to policyholders’ account balances281 56 — 128 — 8 125 — 598 
Commissions and distribution related payments80 45 180 43 282 40 7 (214)463 
Amortization of deferred policy acquisition costs111 8 — 32 — 15 3 — 169 
Compensation and benefits14 8 420 37 78 7 (1)— 563 
Interest expense and financing fees— — 12 — — — 58 (7)63 
Significant segment expenses564 117 612 713 360 70 308 (221)2,523 
Other segment items (1)38 21 201 38 21 15 47 (6)375 
Income taxes(40)(20)(42)(12)(17)(4)16 — (119)
Less: Operating (earnings) loss attributable to the noncontrolling interest— — 95 (1)— — 12 — 106 
Operating earnings (loss)$246 $125 $101 $72 $44 $28 $(121)$— $495 
_____________
(1)Other segment items include Remeasurement for liability for future policy benefits and Other operating expenses and costs. Additionally, other segment items reflected in Asset Management segment is primarily driven by other operating expense and costs related to general and administrative costs and promotion and servicing expenses.
Six Months Ended June 30, 2025
IRGRAMPSWMLC&OEliminations
Total
(in millions)
Segment revenues$2,003 $625 $2,182 $1,651 $934 $220 $430 $(460)$7,585 
Benefits and other deductions
Policyholders’ benefits168 — — 1,159 — — 219 — 1,546 
Interest credited to policyholders’ account balances773 131 — 266 — 16 282 — 1,468 
Commissions and distribution related payments199 87 398 83 589 65 8 (440)989 
Amortization of deferred policy acquisition costs251 31 — 64 — 30 5 — 381 
Compensation and benefits24 21 851 65 164 12 24 — 1,161 
Interest expense and financing fees— — 16 2 — — 122 (10)130 
Significant segment expenses1,415 270 1,265 1,639 753 123 660 (450)5,675 
Other segment items (1)76 53 381 100 51 35 63 (10)749 
Income taxes(81)(48)(89)14 (33)(10)53 — (194)
Less: Operating (earnings) loss attributable to the noncontrolling interest— — 190 1 — — 3 — 194 
Operating earnings (loss)$431 $254 $257 $(75)$97 $52 $(243)$— $773 
_____________
(1)Other segment items include Remeasurement for liability for future policy benefits and Other operating expenses and costs. Additionally, other segment items reflected in Asset Management segment is primarily driven by other operating expense and costs related to general and administrative costs and promotion and servicing expenses.
 Six Months Ended June 30, 2024
 IRGRAMPSWMLC&OEliminationsTotal
(in millions)
Segment revenues$1,728 $574 $2,144 $1,658 $865 $246 $485 $(443)$7,257 
Benefits and other deductions
Policyholders’ benefits155 — — 960 — — 229 — 1,344 
Interest credited to policyholders’ account balances529 108 — 256 — 17 267 — 1,177 
Commissions and distribution related payments157 89 353 83 542 80 10 (414)900 
Amortization of deferred policy acquisition costs220 23 — 62 — 31 5 — 341 
Compensation and benefits31 18 867 73 156 16 1 — 1,162 
Interest expense and financing fees— — 29 — — — 114 (17)126 
Significant segment expenses1,092 238 1,249 1,434 698 144 626 (431)5,050 
Other segment items (1)72 46 409 90 48 31 108 (12)792 
Income taxes(80)(41)(86)(19)(32)(10)39 — (229)
Less: Operating (earnings) loss attributable to the noncontrolling interest— — 193 (1)— — 22 — 214 
Operating earnings (loss)$484 $249 $207 $116 $87 $61 $(232)$— $972 
_____________
(1)Other segment items include Remeasurement for liability for future policy benefits and Other operating expenses and costs. Additionally, other segment items reflected in Asset Management segment is primarily driven by other operating expense and costs related to general and administrative costs and promotion and servicing expenses.
The table below presents a reconciliation to net income (loss) attributable to Holdings:
 Three Months Ended June 30,Six Months Ended June 30,
 2025202420252024
(in millions)
Net income (loss) attributable to Holdings$(349)$428 $(286)$520 
Adjustments related to:
Variable annuity product (1)
934 81 1,145 411 
Investment (gains) losses71 16 85 55 
Net actuarial (gains) losses related to pension and other postretirement benefit obligations11 14 22 31 
Other adjustments (2)
(137)(33)68 58 
Income tax expense (benefit) related to above adjustments (185)(16)(277)(116)
Non-recurring tax items
7 5 16 13 
Operating earnings (loss)$352 $495 $773 $972 
_____________
(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 six months ended June 30, 2025.
(2)Includes a gain of $198 million and $33 million on Non-VA derivatives for the three and six months ended June 30, 2025, respectively. Also includes $14 million of expense related to a disputed billing practice of an AB third-party service provider for the
three and six months ended June 30, 2025, respectively, and certain gross legal expenses related to the COI litigation of $106 million for the six months ended June 30, 2024.
Segment revenues is a measure of the Company’s revenue by segment as adjusted to exclude certain items. The following table reconciles segment revenues to total revenues by excluding the following items:
•Items related to variable annuity product features, which include certain changes in the fair value of the derivatives and other securities we use to hedge these features and changes in the fair value of the embedded derivatives reflected within the net derivative results of variable annuity product features;
•Investment (gains) losses, which includes credit loss impairments of securities/investments, sales or disposals of securities/investments, realized capital gains/losses and valuation allowances;
•Other adjustments, which primarily includes net derivative gains (losses) on certain Non-GMxB derivatives and Net investment income from certain items including consolidated VIE investments, seed capital mark-to-market adjustments and unrealized gain/losses associated with equity securities.
The table below presents revenues by segment and C&O:
 
Three Months Ended June 30,Six Months Ended June 30,
 
2025202420252024
(in millions)
Segment revenues:
Individual Retirement (1)$1,006 $888 $2,003 $1,728 
Group Retirement (1)309 283 625 574 
Asset Management (2)1,094 1,051 2,182 2,144 
Protection Solutions (1)825 834 1,651 1,658 
Wealth Management (3)471 442 934 865 
Legacy (1)100 117 220 246 
Corporate and Other (1)226 230 430 485 
Eliminations(230)(227)(460)(443)
Adjustments related to:
Variable annuity product features, excluding change in MRBs (4)
(1,549)(210)(574)(1,629)
Investment gains (losses), net(71)(16)(85)(55)
Other adjustments to segment revenues (4)
181 115 12 164 
Total revenues$2,362 $3,507 $6,938 $5,737 
______________
(1)Includes investment expenses charged by AB of $42 million and $76 million for the three and six months ended June 30, 2025, respectively, and $37 million and $73 million for the three and six months ended June 30, 2024, respectively, for services provided to the Company.
(2)Inter-segment investment management and other fees of $44 million and $86 million for the three and six months ended June 30, 2025, respectively, and $42 million and $84 million for the three and six months ended June 30, 2024, respectively, are included in segment revenues of the Asset Management segment.
(3)Inter-segment distribution fees of $222 million and $440 million for the three and six months ended June 30, 2025, respectively, and $214 million and $414 million for the three and six months ended June 30, 2024, respectively, are included in segment revenues of the Wealth Management segment.
(4)Prior periods were revised to conform with current presentation.
Total assets by segment were as follows:
 
June 30, 2025December 31, 2024
(in millions)
Total assets by segment:
Individual Retirement$118,774 $110,358 
Group Retirement53,804 51,269 
Asset Management10,705 10,514 
Protection Solutions43,693 41,583 
Wealth Management222 168 
Legacy36,368 42,373 
Corporate and Other39,522 39,462 
Total assets$303,088 $295,727