Equitable Holdings Reports $1.38 Billion Net Loss for 2025, Despite Positive Non-GAAP Operating Earnings

Equitable Holdings, Inc. reported a net loss attributable to Holdings of $1.38 billion for the year ended December 31, 2025, a significant decrease compared to the net income of $1.28 billion in the previous year. This downturn was primarily attributed to less favorable changes in market risk benefits, increased investment losses, and higher interest credited to policyholders' account balances. Despite the net loss, the company's Non-GAAP Operating Earnings, a key metric used by management to assess performance, remained positive at $1.74 billion, although lower than the $2.00 billion reported in 2024. The company's strategy involves participating across the retirement value chain as a product manufacturer, asset manager, and distributor.

A key development in 2025 was the completion of a reinsurance transaction with RGA Reinsurance Company, where Equitable ceded a 75% quota share of its in-force individual life insurance block and Closed Block. This transaction resulted in the transfer of $11.6 billion in assets to RGA and a loss of $1.1 billion. The company also novated certain legacy variable annuity policies to Venerable, resulting in a loss of $499 million. In addition, the company repurchased 19.7 million AB Holding Units for $758 million and exchanged these units for limited partnership interests in ABLP.

Operationally, Equitable Holdings reported assets under management and administration of $1.1 trillion as of December 31, 2025. The Retirement segment's account value increased to $174.9 billion, driven by market appreciation and net inflows of $5.9 billion. The Asset Management segment's AUM reached $866.9 billion, with actively managed investment services experiencing net outflows of $9.4 billion. The Wealth Management segment's advisory assets grew to $82.6 billion, supported by strong advisory net flows. The company's advisor count remained relatively stable at approximately 4,600, with revenue per advisor increasing to $440,000.

Looking ahead, Equitable Holdings faces risks related to financial market conditions, interest rate fluctuations, and the performance of its hedging and reinsurance programs. The company is also subject to extensive regulatory oversight, including insurance and securities regulations, and must navigate evolving standards related to cybersecurity, data privacy, and climate risk. The company's ability to recruit and retain key employees and financial professionals, manage conflicts of interest, and adapt to changes in accounting standards will also be critical to its future success.