Equitable Holdings, Inc. (EQH): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of where Equitable Holdings, Inc. (EQH) is putting its chips right now, and the BCG Matrix is defintely the right framework to use. Honestly, the picture shows a clear split: the Retirement segment is your bedrock, pumping out 66% of Q3 adjusted operating earnings from a massive $1.1 trillion AUM/A, making it the ultimate Cash Cow. But the real action is in Wealth Management (WM), the Star, which is growing fast at 12% organically and getting major capital, even though it only chips in 9% of earnings today. Meanwhile, we're harvesting the old Individual Life block (the Dog) after a big reinsurance deal, freeing up capital to feed the high-potential, but volatile, Private Markets business within Asset Management-our big Question Mark that's targeting up to $100 billion by 2027.

Background of Equitable Holdings, Inc. (EQH)

You're looking at Equitable Holdings, Inc. (EQH), which stands as a major financial services holding company, built on the foundation of businesses like Equitable, AllianceBernstein (AB), and Equitable Advisors. Honestly, the core of the business, especially after recent strategic shifts, is overwhelmingly centered on retirement solutions and asset management, making it fundamentally an annuities and retirement powerhouse. The company traces its roots way back to 1859, but its structure is very much focused on the present and near-term growth drivers in retirement and wealth management.

As of the end of the third quarter of 2025, Equitable Holdings, Inc. reported a record $1.1 trillion in total assets under management and administration (AUM/A), servicing more than 5 million client relationships globally. For the twelve months ending September 30, 2025, the trailing twelve months (TTM) revenue was approximately $12.015B, which was a 9.43% increase year-over-year. Still, you have to look past the headline GAAP net loss of $1.3 billion reported for Q3 2025; that figure was almost entirely due to a one-time impact from a life reinsurance transaction.

The real operational strength shows up in the adjusted figures. For the third quarter of 2025, the company delivered Non-GAAP operating earnings of $510 million when adjusting for notable items, which translates to $1.67 per share, showing solid underlying momentum. This momentum is clearly visible in the segment flows: Retirement saw net inflows of $1.1 billion, and Wealth Management pulled in advisory net inflows of $2.2 billion during that same quarter.

A massive strategic move this year was the completion of the life reinsurance transaction with RGA on July 31, 2025. This deal reinsured 75% of the in-force individual life insurance block, which unlocked over $2 billion of value and significantly reduced future mortality exposure by 75%. This transaction, along with increasing its ownership stake in AllianceBernstein to 69% earlier in the year, helps sharpen the focus on the higher-return businesses: Retirement, Asset Management, and Wealth Management. To support this focus and return capital, Equitable Holdings, Inc. deployed $1.5 billion from the transaction proceeds toward buybacks, debt repayment, and growth investments, including the acquisition of Stifel Independent Advisors.

Equitable Holdings, Inc. (EQH) - BCG Matrix: Stars

You're looking at the engine driving future value for Equitable Holdings, Inc. (EQH), which, under the BCG framework, is the Wealth Management (WM) segment. This division is definitely showing the characteristics of a Star: high market growth coupled with increasing market share capture. The momentum here is clear, as Wealth Management showed a 12% annualized organic growth rate in advisory net inflows for Q3 2025.

This growth is being aggressively fueled by strategic moves designed to capture more of that high-growth, fee-based advisory market. For instance, the recent strategic acquisition of Stifel Independent Advisors is a key driver, adding over 110 advisors and approximately $9 billion in client assets to the platform. This move is designed to solidify market leadership, but it requires significant resources to integrate and scale effectively.

• Acquisition adds over 110 advisors.
• Acquisition adds approximately $9 billion in client assets (AUM).
• WM advisory net inflows reached $2.2 billion in Q3 2025.

To be fair, while this segment is the high-growth engine, it currently consumes a lot of cash to maintain that trajectory, meaning its immediate earnings contribution is relatively modest compared to its potential. For Q3 2025, the segment only contributed 9% of the total adjusted operating earnings. This is the classic Star trade-off: high investment for high future returns. Here's the quick math on how that 9% stacks up against the total adjusted operating earnings for the quarter, which were $510 million.

The strategy here is clear: Equitable Holdings, Inc. is deploying capital to ensure this segment sustains its success until the high-growth market naturally slows, at which point it should transition into a Cash Cow. The total assets under management and administration (AUM/A) for the entire company stood at $1.1 trillion as of September 30, 2025, marking a 7% year-over-year increase, which the WM segment is helping to drive. Finance: draft 13-week cash view by Friday.

Equitable Holdings, Inc. (EQH) - BCG Matrix: Cash Cows

You're looking at the core engine of Equitable Holdings, Inc. (EQH) right now, the business unit that generates the necessary fuel for the rest of the portfolio. In the BCG framework, this is your classic Cash Cow: high market share in a mature segment, demanding minimal new investment for maintenance but spitting out significant cash.

The Retirement segment is definitely the primary earnings driver for Equitable Holdings, Inc. as of the third quarter of 2025. This segment accounted for 66% of the total Q3 2025 adjusted operating earnings. That level of concentration in a single, mature business line is what defines a Cash Cow's role in the corporate structure.

This segment delivers the consistent, reliable cash flow you look for in a market leader. For instance, Retirement reported net inflows of $1.1 billion in the quarter. First-year premiums hit $5.5 billion, marking a 3% increase over the prior year. This segment is generating the cash required to fund the more speculative Stars and Question Marks within Equitable Holdings, Inc.'s portfolio.

The sheer scale of assets under management and administration (AUM/A) supports this high-margin position. Total AUM/A reached a record $1.1 trillion as of September 30, 2025. This massive fee base provides the stability that underpins the entire organization's financial footing.

Here's a quick look at how the segments stacked up in terms of adjusted operating earnings for Q3 2025:

The Retirement segment's performance is characterized by steady, predictable metrics, which is exactly what you want from a Cash Cow. You see this in the organic growth rate, which is moderate but reliable.

• Annualized organic growth rate in net inflows: 3%.
• Net inflows for Q3 2025: $1.1 billion.
• First-year premiums for Q3 2025: $5.5 billion.
• Total AUM/A as of September 30, 2025: $1.1 trillion.

Because this business unit has high market share in a mature space, the strategy here is to maintain productivity, not aggressively expand. Investments are focused on infrastructure to improve efficiency and maximize the cash extraction, rather than heavy promotion. The adjusted operating earnings for the entire company were $510 million for the quarter, with Retirement providing the lion's share of that profitability.

The stability from this unit is critical. It's the source of capital for shareholder returns and growth initiatives elsewhere. For example, Equitable Holdings, Inc. returned $757 million to shareholders in Q3 2025, a deployment strategy heavily reliant on the consistent cash generation from this segment.

Equitable Holdings, Inc. (EQH) - BCG Matrix: Dogs

You're looking at the segment of Equitable Holdings, Inc. (EQH) that clearly fits the Dog quadrant: low market share in a low-growth, capital-intensive area, which is why the strategic action taken was to harvest it, not grow it.

The in-force Individual Life insurance block is definitively being harvested, not grown. This is evidenced by the strategic decision to offload the majority of the risk and capital burden associated with this legacy business. The block being addressed involved policies backed by approximately $32 billion in total reserves as of early 2025.

Equitable Holdings completed a reinsurance transaction with RGA Reinsurance Company in mid-2025, reinsuring 75% of this in-force individual life insurance block on a pro-rata basis. This move effectively removed the day-to-day responsibility for the bulk of these policies from Equitable Holdings' balance sheet.

This strategic move freed up over $2 billion of deployable capital for Equitable Holdings. The company expected to take $1.7 billion of dividends to Holdings in the second half of 2025 from this and other sources, with $1.0 billion specifically attributed to the individual life transaction proceeds. You can see the scale of the block versus the capital release here:

The redeployment of this capital is already underway, signaling the shift away from this Dog. For instance, the company announced plans to execute $500 million of incremental share repurchases above its target payout ratio following the close. Furthermore, the company used $500 million for debt repayment in the third quarter of 2025. This capital is being redeployed into core growth areas like increasing its ownership stake in AllianceBernstein ("AB") and funding share repurchases.

The segment's exposure to mortality volatility is significantly reduced, aligning with a capital-light strategy. The reinsurance deal reduces exposure to future mortality claims by 75%. This reduction in volatility is a key benefit, as the block had contributed to elevated mortality impacts, leading to a reported net loss of $(1.3) billion for the third quarter of 2025, which was primarily driven by a one-time impact from this life reinsurance transaction.

The intended outcome of treating this unit as a Dog is clear from the strategic focus areas:

• The transaction enhances focus on Retirement, Asset Management, and Wealth Management.
• These targeted areas are described as high return on capital businesses.
• The company expects the transaction to be accretive to Non-GAAP operating earnings per share.
• The move helps smooth out future life results, reducing volatility going forward.

Honestly, this was a necessary move to stop tying up valuable capital in a low-growth area. Finance: draft 13-week cash view by Friday.

Equitable Holdings, Inc. (EQH) - BCG Matrix: Question Marks

You're looking at the high-growth, low-market-share businesses within Equitable Holdings, Inc. (EQH) portfolio, which the BCG Matrix labels as Question Marks. These units are in markets expanding quickly, but Equitable Holdings, Inc. hasn't yet secured a dominant position. Honestly, these areas consume significant cash as the company tries to build out their footprint.

The AllianceBernstein (AB) Private Markets business fits this profile perfectly. It's a high-growth sub-segment that demands heavy investment to capture more relative market share. This is where Equitable Holdings, Inc. is strategically deploying capital to try and convert this potential into a Star.

Here's a look at the growth trajectory and the capital backing this unit:

• Private Markets Assets Under Management (AUM) grew from $56 billion in 2022 to $80 billion year-to-date in 2025.
• The target for this AUM is ambitious, aiming for up to $100 billion by 2027.
• Equitable Holdings, Inc. has a total capital commitment of $20 billion allocated to AB, much of which is earmarked to support this high-growth, high-risk area.
• As of the third quarter of 2025, Equitable Holdings, Inc. had deployed over $17 billion of that $20 billion commitment.

The Asset Management segment, which houses this Private Markets growth engine, is important to the overall earnings picture, but its flows show the volatility inherent in Question Marks. For the third quarter of 2025, this segment contributed 25% of the adjusted operating earnings for Equitable Holdings, Inc. Still, active management flows can swing, which you saw clearly in the second quarter of 2025.

To be fair, the need for investment is clear when you look at the outflows in that volatile period. Here's the quick math on the segment's recent flow performance:

These Question Marks require a decision: either invest heavily now to rapidly gain market share and move them into the Star quadrant, or divest if the path to market leadership seems too costly or unlikely. The $20 billion commitment signals a strong initial vote for heavy investment in this area.