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BUSINESS SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
BUSINESS SEGMENT INFORMATION BUSINESS SEGMENT INFORMATION
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 have three reportable segments: Retirement, Asset Management and Wealth Management. Prior period results have been revised in connection with updates to our reportable segments.
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 Retirement segment offers a diverse suite of retirement solutions to individual and institutional clients. Our primary offerings include individual and group annuities, retirement savings plans, and institutional savings products, which we distribute through both proprietary and third-party distribution. Results for our spread lending business are also primarily reported within the Retirement segment.
•The Asset Management 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 Wealth Management segment offers discretionary and non-discretionary investment advisory accounts, financial planning and advice, life insurance, and annuity products through Equitable Advisors.
The CODM is the President and Chief Executive Officer 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 generated by our businesses.
In the third quarter of 2025, the Company updated its net investment income (“NII”) segment reporting to better align with our GAAP segments, as well as the reporting of our spread lending programs' income and expenses. Previously, direct and allocated segment NII were recorded based on assets tied to statutory asset tagging and net statutory liabilities for allocation. To better align with our GAAP segments, the Company changed the recording methodology for direct NII. It is now based on the book yields of assets tied to specific segments, considering general account values plus reserves, net of embedded derivatives. Indirect NII, which was previously allocated based on net statutory liabilities, is now allocated based on general account values and reserves, net of embedded derivatives. Additionally, revenues and expenses from our spread lending programs are now primarily recorded within the Retirement segment. Previously, spread lending revenues and expenses were recorded in Corporate and Other, with the excess of revenues over expenses allocated to the insurance segments based on net statutory liabilities. Prior periods have been revised to reflect these changes.
Revenues derived from any customer did not exceed 10% of revenues for the three and nine months ended September 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 September 30, 2025
Retirement
Asset Management
Wealth Management
Corporate & Other
EliminationsTotal
(in millions)
Segment revenues$1,588 $1,144 $499 $741 $(235)$3,737 
Benefits and other deductions
Policyholders’ benefits73 — — 438 — 511 
Interest credited to policyholders’ account balances685 — — 96 — 781 
Commissions and distribution related payments153 209 320 82 (227)537 
Amortization of deferred policy acquisition costs153 — — 50 — 203 
Compensation and benefits15 447 82 33 — 577 
Interest expense and financing fees— 7 — 61 (3)65 
Significant segment expenses1,079 663 402 760 (230)2,674 
Other segment items (1)70 188 19 144 (5)416 
Income taxes(38)(46)(19)8 — (95)
Less: Operating (earnings) loss attributable to the noncontrolling interest— 93 — 4 — 97 
Operating earnings (loss)$401 $154 $59 $(159)$— $455 
_____________
(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 September 30, 2024
 
Retirement
Asset ManagementWealth ManagementCorporate & OtherEliminationsTotal
(in millions)
Segment revenues$1,439 $1,086 $449 $1,020 $(221)$3,773 
Benefits and other deductions
Policyholders’ benefits83 — — 580 — 663 
Interest credited to policyholders’ account balances520 — — 150 — 670 
Commissions and distribution related payments136 192 281 88 (212)485 
Amortization of deferred policy acquisition costs135 — — 49 — 184 
Compensation and benefits19 428 79 29 — 555 
Interest expense and financing fees— 8 — 57 (5)60 
Significant segment expenses893 628 360 953 (217)2,617 
Other segment items (1)62 205 24 107 (4)394 
Income taxes(68)(42)(16)4 — (122)
Less: Operating (earnings) loss attributable to the noncontrolling interest— 100 — 23 — 123 
Operating earnings (loss)$416 $111 $49 $(59)$— $517 
_____________
(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.
Nine Months Ended September 30, 2025
Retirement
Asset Management
Wealth Management
Corporate & Other
Eliminations
Total
(in millions)
Segment revenues$4,527 $3,326 $1,430 $2,734 $(695)$11,322 
Benefits and other deductions
Policyholders’ benefits241 — — 1,816 — 2,057 
Interest credited to policyholders’ account balances1,847 — — 402 — 2,249 
Commissions and distribution related payments440 607 909 237 (667)1,526 
Amortization of deferred policy acquisition costs435 — — 149 — 584 
Compensation and benefits61 1,298 246 133 — 1,738 
Interest expense and financing fees1 23 — 184 (13)195 
Significant segment expenses3,025 1,928 1,155 2,921 (680)8,349 
Other segment items (1)197 569 69 345 (15)1,165 
Income taxes(176)(135)(52)74 — (289)
Less: Operating (earnings) loss attributable to the noncontrolling interest— 283 — 8 — 291 
Operating earnings (loss)$1,129 $411 $154 $(466)$— $1,228 
_____________
(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.
 Nine Months Ended September 30, 2024
 
Retirement
Asset ManagementWealth ManagementCorporate & OtherEliminationsTotal
(in millions)
Segment revenues$4,055 $3,230 $1,312 $3,097 $(664)$11,030 
Benefits and other deductions
Policyholders’ benefits238 — — 1,769 — 2,007 
Interest credited to policyholders’ account balances1,400 — — 447 — 1,847 
Commissions and distribution related payments383 545 823 260 (626)1,385 
Amortization of deferred policy acquisition costs378 — — 147 — 525 
Compensation and benefits68 1,295 235 119 — 1,717 
Interest expense and financing fees— 37 — 171 (22)186 
Significant segment expenses2,467 1,877 1,058 2,913 (648)7,667 
Other segment items (1)180 614 71 337 (16)1,186 
Income taxes(200)(128)(48)25 — (351)
Less: Operating (earnings) loss attributable to the noncontrolling interest— 293 — 44 — 337 
Operating earnings (loss)$1,208 $318 $135 $(172)$— $1,489 
_____________
(1)Other segment items include Remeasurement for liability for future policy benefits and Other operating expenses and costs. Additionally, other segment items reflected in Asset Management segment is primarily driven by other operating expense and costs related to general and administrative costs and promotion and servicing expenses.
The table below presents a reconciliation to net income (loss) attributable to Holdings:
 Three Months Ended September 30,Nine Months Ended September 30,
 2025202420252024
(in millions)
Net income (loss) attributable to Holdings$(1,309)$(132)$(1,595)$388 
Adjustments related to:
Variable annuity product (1)
978 756 2,123 1,167 
Investment (gains) losses (2)
1,170 46 1,255 101 
Net actuarial (gains) losses related to pension and other postretirement benefit obligations19 13 41 44 
Other adjustments (3)
(164)1 (96)59 
Income tax expense (benefit) related to above adjustments (437)(172)(714)(288)
Non-recurring tax items
198 5 214 18 
Operating earnings (loss)$455 $517 $1,228 $1,489 
_____________
(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.
(2)Includes $1.1 billion as a result of the assets transferred related to the reinsurance agreement with RGA for the three and nine months ended September 30, 2025. See Note 20 of the Notes to these Consolidated Financial Statements for further details.
(3)Includes a gain of $230 million and $262 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 $0 million and $106 million for the three and nine months ended September 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 September 30,Nine Months Ended September 30,
 
2025202420252024
(in millions)
Segment revenues:
Retirement (1)
$1,588 $1,439 $4,527 $4,055 
Asset Management (2)1,144 1,086 3,326 3,230 
Wealth Management (3)499 449 1,430 1,312 
Corporate and Other (1)741 1,020 2,734 3,097 
Eliminations(235)(221)(695)(664)
Adjustments related to:
Variable annuity product features, excluding change in MRBs (4)
(1,314)(628)(1,888)(2,257)
Investment gains (losses), net(1,170)(46)(1,255)(101)
Other adjustments to segment revenues (4)
197 (26)209 138 
Total revenues$1,450 $3,073 $8,388 $8,810 
______________
(1)Includes investment expenses charged by AB of $39 million and $115 million for the three and nine months ended September 30, 2025, respectively, and $37 million and $110 million for the three and nine months ended September 30, 2024, respectively, for services provided to the Company.
(2)Inter-segment investment management and other fees of $44 million and $130 million for the three and nine months ended September 30, 2025, respectively, and $41 million and $125 million for the three and nine months ended September 30, 2024, respectively, are included in segment revenues of the Asset Management segment.
(3)Inter-segment distribution fees of $227 million and $667 million for the three and nine months ended September 30, 2025, respectively, and $212 million and $626 million for the three and nine months ended September 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:
 
September 30, 2025December 31, 2024
(in millions)
Total assets by segment:
Retirement
$193,110 $173,796 
Asset Management10,166 10,137 
Wealth Management289 168 
Corporate and Other110,844 111,626 
Total assets$314,409 $295,727