Axa Equitable Holdings Inc (EQH)

Axa Equitable Holdings Inc.: A Comprehensive Overview

Company Profile:

History and Background: AXA Equitable Holdings Inc. (NYSE: EQH) is a leading financial services company formed in 2018 through the combination of Equitable Holdings, Inc. and AXA US. It was established by separating the US life and annuity businesses of the French multinational AXA from its European and Asian counterparts. Today, AXA Equitable Holdings Inc. stands as one of the largest life insurers in the United States.

Core Business Areas: The company offers individual and group life insurance, annuities, and wealth management products and services to millions of individuals and businesses throughout the United States.

Leadership and Corporate Structure:

• CEO: Mark Pearson
• President: Michael Pennise
• Chief Financial Officer: James L. Summers
• Board of Directors: Comprised of 14 members with extensive experience in finance, insurance, and business.

Top Products and Market Share:

Top Products:

• Individual Life Insurance (Term, Universal, Whole)
• Annuities (Fixed, Variable, Indexed)
• Retirement Plans
• Investment Products (Mutual Funds, Separately Managed Accounts)

Market Share:

• #3 in U.S. individual life insurance (based on 2021 direct premium written)
• #2 in U.S. individual annuities (based on 2021 direct premium written)
• #5 in U.S. individual retirement (based on 2021 direct premium written)

Product Performance and Market Reception: AXA Equitable Holdings Inc.'s products consistently receive high ratings from independent review agencies like AM Best, Standard & Poor's, and Moody's. The company boasts a strong brand reputation, customer satisfaction, and product innovation, holding its own against competitors.

Total Addressable Market (TAM):

Life Insurance Market: $2.37 Trillion (Global) & $1.17 Trillion (U.S.) Annuities Market: $6.77 Trillion (Global) & $2.43 Trillion (U.S.) Retirement Services Market: $22.1 Trillion (Global) & $31.6 Trillion (U.S.)

Financial Performance:

2022 Financial Highlights:

• Revenue: $44.78 Billion
• Net Income: $2.41 Billion
• Earnings per Share (EPS): $8.52
• Profit Margin: 5.4%

Comparison to Previous Years:

• Revenue and EPS have shown a positive growth trend over the past 5 years.
• Profit margins, however, remained relatively flat in the same period.

Financial Health: The company boasts a solid financial position with strong cash flow and a healthy balance sheet.

Dividends and Shareholder Returns:

Dividend History: AXA Equitable Holdings Inc. has consistently paid dividends since its inception.

• Current annual dividend yield: 2.5%
• Payout Ratio: 25%

Shareholder Returns: Over the past 5 years, AXA Equitable Holdings Inc. has delivered a total shareholder return of approximately 80%, outperforming the S&P 500.

Growth Trajectory:

Historical Growth: AXA Equitable Holdings Inc. has experienced steady growth over the past 5 years, driven by strong product sales, favorable market conditions, and strategic acquisitions.

Future Growth:

• Industry analysts expect moderate growth in the life insurance and annuity markets in the coming years.
• AXA Equitable Holdings Inc. plans to capitalize on its market position, product innovation, and digital capabilities to achieve continued growth.

Market Dynamics:

Industry overview: The life insurance, annuities, and retirement services industry is mature but growing, driven by an aging population and rising demand for financial security. Technological advancements and changing consumer preferences continue to impact the market.

Competitive Landscape: AXA Equitable Holdings Inc. operates in a highly competitive market with numerous established players and new entrants.

Market Positioning: The company differentiates itself through its strong brand, comprehensive product suite, robust distribution channels, and focus on customer experience.

Competitors:

• Key Competitors: MetLife (MET), Prudential Financial (PRU), Lincoln National (LNC), TIAA (TIA), New York Life Insurance Company (NYL), Northwestern Mutual (NML).

Market Share Analysis: AXA Equitable Holdings Inc. holds a notable market share but faces stiff competition from industry leaders like MetLife and Prudential.

Potential Challenges and Opportunities:

Key Challenges:

• Intense competition
• Evolving customer needs and preferences
• Regulatory changes impacting the industry

Key Opportunities:

• Market growth
• Growing demand for protection and retirement solutions
• Potential for digital innovation and partnerships

Recent Acquisitions (last 3 years):

1. Dakota Wealth Management: Acquired in 2021 to expand the company's wealth management business and advisory platform.
2. Luminous Medical: Acquired in 2021 to strengthen the workplace benefits offering.
3. Advisor Group: Acquired a 25% stake in 2023, aiming to enhance its distribution reach through independent financial advisors.

AI-Based Fundamental Rating:

Rating: 8.5/10

Rationale: AXA Equitable Holdings Inc. exhibits strong fundamentals. Its market position, financial performance, and growth potential are positive, positioning the company well for the future. However, challenges like competition and industry dynamics need to be addressed for sustained success.

Disclaimer: This information is for informative purposes only and should not be considered financial advice. Investing involves risk, and investors should conduct their research before making any investment decisions.

Sources:

• AXA Equitable Holdings Inc. Investor Relations page
• U.S. Securities and Exchange Commission (SEC) Filings
• Independent research reports