10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

———————————————

FORM 10-K

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2021 

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to

Commission File No. 001-38469

————————————————

Equitable Holdings, Inc.

(Exact name of registrant as specified in its charter) 

Delaware	90-0226248
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1290 Avenue of the Americas, New York, New York                 10104

(Address of principal executive offices) (Zip Code)

(212) 554-1234

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol	Name of each exchange on which registered
Common Stock	EQH	New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series A	EQH PR A	New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series C	EQH PR C	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes ☒    No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐    No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes ☒    No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an “emerging growth company”. See definition of “accelerated filer,” “large accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐	Non-accelerated filer	☐	Smaller reporting company	☐	Emerging growth company	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange Act. o

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.  ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant at June 30, 2021 was approximately $11.9 billion.

As of February 20, 2022, 389,557,860 shares of the registrant’s Common Stock, $0.01 par value, were outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s proxy statement relating to the 2022 Annual Meeting of Shareholders to be filed with the SEC within 120 days of the fiscal year ended December 31, 2021 (the “2022 Proxy Statement”) are incorporated by reference into Part III of this Annual Report on Form 10-K.

TABLE OF CONTENTS

		Page
Part I
Item 1.	Business	4
Item 1A.	Risk Factors	54
Item 1B.	Unresolved Staff Comments	69
Item 2.	Properties	69
Item 3.	Legal Proceedings	70
Item 4.	Mine Safety Disclosures	70
Part II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	70
Item 6.	Reserved	72
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	72
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	122
Item 8.	Financial Statements and Supplementary Data	126
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	239
Item 9A.	Controls and Procedures	239
Item 9B.	Other Information	240
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	240
Part III
Item 10.	Directors, Executive Officers and Corporate Governance	240
Item 11.	Executive Compensation	240
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	241
Item 13.	Certain Relationships and Related Transactions, and Director Independence	242
Item 14.	Principal Accountant Fees and Services	242
Part IV
Item 15.	Exhibits, Financial Statement Schedules	242
Item 16.	Form 10-K Summary	242
Glossary		242
Acronyms		246
Index to Exhibits		249
Signatures		253

NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATION

Certain of the statements included or incorporated by reference in this Annual Report on Form 10-K constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “intends,” “seeks,” “aims,” “plans,” “assumes,” “estimates,” “projects,” “should,” “would,” “could,” “may,” “will,” “shall” or variations of such words are generally part of forward-looking statements. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Equitable Holdings, Inc. (“Holdings”) and its consolidated subsidiaries. “We,” “us” and “our” refer to Holdings and its consolidated subsidiaries, unless the context refers only to Holdings as a corporate entity. There can be no assurance that future developments affecting Holdings will be those anticipated by management. Forward-looking statements include, without limitation, all matters that are not historical facts.

These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there are certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements, including, among others: (i) conditions in the financial markets and economy, including the impact of COVID-19 and related economic conditions, equity market declines and volatility, interest rate fluctuations, impacts on our goodwill and changes in liquidity and access to and cost of capital; (ii) operational factors, including reliance on the payment of dividends to Holdings by its subsidiaries, protection of confidential customer information or proprietary business information, operational failures by us or our service providers, and catastrophic events, such as the outbreak of pandemic diseases including COVID-19; (iii) credit, counterparties and investments, including counterparty default on derivative contracts, failure of financial institutions, defaults by third parties and affiliates and economic downturns, defaults and other events adversely affecting our investments; (iv) our reinsurance and hedging programs; (v) our products, structure and product distribution, including variable annuity guaranteed benefits features within certain of our products, variations in statutory capital requirements, financial strength and claims-paying ratings, state insurance laws limiting the ability of our insurance subsidiaries to pay dividends and key product distribution relationships; (vi) estimates, assumptions and valuations, including risk management policies and procedures, potential inadequacy of reserves and experience differing from pricing expectations, amortization of deferred acquisition costs and financial models; (vii) our Investment Management and Research segment, including fluctuations in assets under management and the industry-wide shift from actively-managed investment services to passive services; (viii) legal and regulatory risks, including federal and state legislation affecting financial institutions, insurance regulation and tax reform; (ix) risks related to our common stock and (x) general risks, including strong industry competition, information systems failing or being compromised and protecting our intellectual property.

You should read this Annual Report on Form 10-K completely and with the understanding that actual future results may be materially different from expectations. All forward-looking statements made in this Annual Report on Form 10-K are qualified by these cautionary statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law.

Other risks, uncertainties and factors, including those discussed under “Risk Factors,” could cause our actual results to differ materially from those projected in any forward-looking statements we make. Readers should read carefully the factors described in “Risk Factors” to better understand the risks and uncertainties inherent in our business and underlying any forward-looking statements.

Throughout this Annual Report on Form 10-K we use certain defined terms and abbreviations, which are defined or summarized in the “Glossary” and “Acronyms” sections.

3

Part I, Item 1.

BUSINESS

Overview

We are one of America’s leading financial services companies and have helped clients prepare for their financial future with confidence since 1859. Our approximately 12,200 employees and advisors are entrusted with more than $900 billion of AUM through two complementary and well-established principal franchises, Equitable and AllianceBernstein, providing:

•Advice and solutions for helping Americans set and meet their retirement goals and protect and transfer their wealth across generations; and

•A wide range of investment management insights, expertise and innovations to drive better investment decisions and outcomes for clients and institutional investors worldwide.

We aim to be a trusted partner to our clients by providing advice, products and services that help them navigate complex financial decisions. Our financial strength and the quality of our people, their ingenuity and the service they provide help us build relationships of trust with our clients.

We have market-leading positions in our four segments: Individual Retirement, Group Retirement, Investment Management and Research, and Protection Solutions.

We distribute our products through a premier affiliated and third-party distribution platform, consisting of:

Affiliated Distribution:

•Our affiliated retail sales force, Equitable Advisors, which has approximately 4,400 licensed financial professionals who advise on retirement, protection and investment advisory solutions; and

•More than 200 Bernstein Financial Advisors, who are responsible for the sale of investment products and solutions to Private Wealth Management clients.

Third-Party Distribution:

•Distribution agreements with more than 500 third-party firms including broker-dealers, banks, insurance partners and brokerage general agencies, giving us access to more than 145,000 financial professionals to market our retirement, protection and investment solutions; and

•An AB global distribution team of more than 500 professionals, who engage with more than 5,000 retail distribution partners and more than 500 institutional clients.

4

Our Organizational Structure

We are a holding company that operates our business through a number of direct and indirect subsidiaries. Our two principal franchises include Equitable and AllianceBernstein. The following organizational chart presents the ownership of our principal subsidiaries as of December 31, 2021

(1)We own an approximate 65% economic interest in AB through various wholly-owned subsidiaries. Our economic interest consists of approximately 63% of the AB Units, approximately 4% of the AB Holding Units (representing an approximate 1% economic interest in ABLP), and 1% of the AB Units held by the GP. Our indirect, wholly-owned subsidiary, AllianceBernstein Corporation, is the General Partner of AB with the authority to manage and control AB, and accordingly, AB is consolidated in our financial statements. AB has been in the investment management and research business for more than 50 years. ABLP is the operating partnership for the AB business, and AB Holding’s activities consist of owning AB Units and engaging in related activities. AB Holding Units trade on the NYSE under the ticker symbol “AB”. AB Units do not trade publicly.

Venerable Transaction

On June 1, 2021, we completed the sale (the “ Venerable Transaction”) of CS Life, to Venerable Insurance and Annuity Company, an insurance company domiciled in Iowa (“VIAC”), pursuant to the Master Transaction Agreement, dated October 27, 2020 (the “Master Transaction Agreement”), among the Company, VIAC and, solely with respect to Article XIV thereof, Venerable Holdings, Inc., a Delaware corporation (“Venerable”).

Pursuant to the Master Transaction Agreement, immediately prior to the closing of the Venerable Transaction, CS Life effected the recapture of all of the business that was ceded to CS Life Re Company, a wholly owned subsidiary of CS Life (“Reinsurance Subsidiary”), and sold 100% of the equity of the Reinsurance Subsidiary to another wholly owned subsidiary of the Company. Immediately following the closing of the Venerable Transaction, CS Life and Equitable Financial entered into a coinsurance and modified coinsurance agreement (the “Reinsurance Agreement”), pursuant to which Equitable Financial ceded to CS Life, on a combined coinsurance and modified coinsurance basis, legacy variable annuity policies sold by Equitable Financial between 2006-2008 (the “Block”), comprised of non-New York “Accumulator” policies containing fixed rate Guaranteed Minimum Income Benefit and/or Guaranteed Minimum Death Benefit guarantees. In addition, upon the completion of the Venerable Transaction, EIMG acquired an approximate 9.09% equity interest in Venerable’s parent holding company, VA Capital Company LLC. In connection with such investment, EIMG designated a member to the Board of Managers of VA Capital Company LLC.

For additional information regarding the Venerable Transaction, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Executive Summary—Reinsurance of Legacy Variable Annuity Block and Sale of Runoff Variable Annuity Reinsurance Entity”and Note 1 of the Notes to these Consolidated Financial Statements.

5

Segment Information

We are organized into four segments: Individual Retirement, Group Retirement, Investment Management and Research, and Protection Solutions. We report certain activities and items that are not included in our segments in Corporate and Other.

•Individual Retirement—We are a leading provider of variable annuity products, which primarily meet the needs of individuals saving for retirement or seeking retirement income by allowing them to invest in various markets through underlying investment options.

•Group Retirement—We offer 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.

•Investment Management and Research—We are a leading provider of diversified investment management, research and related services to a broad range of clients globally.

•Protection Solutions—We focus our life insurance products on attractive protection segments such as VUL insurance and IUL insurance and our employee benefits business on small and medium-sized businesses.

For financial information on segments, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations by Segment” and Note 1 of the Notes to these Consolidated Financial Statements.

Individual Retirement

Our Individual Retirement segment is a leading provider of individual variable annuity products, which are primarily sold to affluent and high net worth individuals saving for retirement or seeking guaranteed retirement income. We have a long history of innovation, as one of the first companies, in 1968, to enter the variable annuity market, as the first company, in 1996, to provide variable annuities with living benefits, and as the first company, in 2010, to bring to market an index-linked variable annuity product. Our Individual Retirement business is an important source of earnings and cash flow for our company, and we believe our hedging strategy preserves a substantial portion of these cash flows across a wide range of risk scenarios. The primary sources of revenue for our Individual Retirement segment include fee revenue and investment income.

We principally focus on selling three variable annuity products, each of which provides policyholders with distinct benefits, features and return profiles. We continue to innovate our offering, periodically updating our product benefits and introducing new variable annuity products to meet the evolving needs of our clients while managing the risk and return of these variable annuity products to our company. Due to our innovation, our product mix has evolved considerably since 2008. The majority of our sales in 2021 consisted of products without variable annuity guarantee benefits features (“GMxB features”) (other than the ROP death benefit), and less than 1% of 2021 FYP was attributable to products with fixed rate guarantees. To further our growth, we plan to continue to innovate our product portfolio, expand and deepen our distribution channels and effectively manage risk in our business.

Products

We primarily sell three variable annuity products each providing policyholders with distinct features and return profiles. Our current primary product offering, ordered below according to sales volume for the year ended December 31, 2021, includes:

•Structured Capital Strategies. Our index-linked variable annuity product allows the policyholder to invest in various investment options, whose performance is tied to one or more securities indices, commodities indices or ETF, subject to a performance cap, over a set period of time. The risks associated with such investment options are borne entirely by the policyholder, except the portion of any negative performance that we absorb (a buffer) upon investment maturity. Prior to November 2021, this variable annuity did not offer GMxB features, other than an optional return of premium death benefit that we had introduced on some versions. In November 2021, we introduced a new version of this variable annuity offering a GMxB feature.

•Retirement Cornerstone. Our Retirement Cornerstone product offers two platforms: (i) RC Performance, which offers access to a broad selection of funds with annuitization benefits based solely on non-guaranteed account investment performance and (ii) RC Protection, which offers access to a focused selection of funds and an optional floating-rate GMxB feature providing guaranteed income for life.

•Investment Edge. Our investment-only variable annuity is a wealth accumulation variable annuity that defers current taxes during accumulation and provides tax-efficient distributions on non-qualified assets through scheduled payments over a set period of time with a portion of each payment being a return of cost basis, thus excludable from taxes. In

6

2021, we introduced an optional SIO feature that allows the policyholder to invest in various investment options whose performance is tied to one or more securities indices, subject to a performance cap, with some downside protection over a set period of time. This optional SIO feature leverages our innovative SCS offering. Investment Edge does not offer any GMxB feature other than an optional return of premium death benefit.

•Other products. We offer other products which offer optional GMxB benefits. These other products do not contribute significantly to our sales.

 Our variable annuity portfolio is mature. Since 2008, we shifted our business from selling variable annuity products with GMxB features with fixed roll-up rates, to predominantly (i) variable annuity products without GMxB features (other than the return of premium death benefit in some cases) and (ii) variable annuity products with GMxB features with floating roll-up rates. Based on FYP, we have shifted our portfolio from 90% fixed rate GMxB products in 2008 to 94% floating rate GMxB products and non-GMxB products in 2021. In addition, AV has shifted from 77% Fixed Rate GMxB products in 2008 to 27% in 2021.

Evolution of Variable Annuity FYP

The following tables present the relative contribution to FYP of each of the above products and GMxB features for the years ended December 31, 2021, 2020 and 2019.

	Year Ended December 31,
	2021		2020		2019
			(in millions)
FYP by Product
SCS	$	7,627	$	4,891	$	5,138
Retirement Cornerstone	1,951		1,506		2,156
Investment Edge	1,048		448		548
Other	357		328		349
Total FYP	$	10,983	$	7,173	$	8,191

7

	Year Ended December 31,
	2021		2020		2019
			(in millions)
FYP by Guarantee Feature
Non-GMxB	$	8,648	$	5,342	$	5,728
ROP Death Benefit Only	703		532		551
Total Non-GMxB & ROP Death Benefit Only	$	9,351	$	5,874	$	6,279
Floating Rate GMxB	$	1,623	$	1,278	$	1,864
Fixed Rate GMxB	3		21		48
Total GMxB	$	1,626	$	1,299	$	1,912
Other	6		—		—
Total FYP	$	10,983	$	7,173	$	8,191

Our sales for the years ended December 31, 2021, 2020 and 2019 further demonstrate the result of our product sales evolution, as 79%, 74% and 70% of FYP, respectively, came from variable annuity products that do not contain GMxB riders, and of the GMxB riders sold, they overwhelmingly featured floating, as opposed to fixed, roll-up rates.

Our Individual Retirement segment works with EIMG to identify and include appropriate underlying investment options in its products, as well as to control the costs of these options and increase profitability of the products. For a discussion of EIMG, see below “—Equitable Investment Management.”

Variable Annuities Policy Feature Overview

Variable annuities allow the policyholder to make deposits into accounts offering variable investment options. For deposits allocated to Separate Accounts, the risks associated with the investment options are borne entirely by the policyholder, except where the policyholder elects GMxB features in certain variable annuities, for which additional fees are charged. Additionally, certain variable annuity products permit policyholders to allocate a portion of their account to investment options backed by the General Account and are credited with interest rates that we determine, subject to certain limitations. As of December 31, 2021, the total AV of our variable annuity products was $111.9 billion, consisting of $74.2 billion of Separate Accounts AV and $37.7 billion of General Account AV.

Certain variable annuity products offer one or more GMxB features in addition to the standard return of premium death benefit guarantee. GMxB features (other than the return of premium death benefit guarantee) provide the policyholder a minimum return based on their initial deposit adjusted for withdrawals (i.e., the benefit base), thus guarding against a downturn in the markets. The rate of this return may increase the specified benefit base at a guaranteed minimum rate (i.e., a fixed roll-up rate) or may increase the benefit base at a rate tied to interest rates (i.e., a floating roll-up rate). GMxB riders must be chosen by the policyholder no later than at the issuance of the contract.

The following table presents our variable annuity AV by GMxB feature for our variable annuity business in our Individual Retirement segment as of December 31, 2021, 2020 and 2019:

	December 31,
	2021		2020		2019
	(in millions)
Account Value
Non-GMxB	$	43,843	$	36,162	$	30,694
ROP Death Benefit Only (1)	11,438		10,438		9,620
Total Non-GMxB & ROP Death Benefit Only	55,281		46,600		40,314
Floating Rate GMxB	26,486		25,168		23,891
Fixed Rate GMxB (1)	30,137		45,622		44,717
Total Variable Annuity AV	$	111,904	$	117,390	$	108,922

8

(1) AV is net of amounts ceded to Venerable during 2021. See Note 1 of the Notes to these Consolidated Financial Statements.

The following table presents our variable annuity benefit base by GMxB feature for the Individual Retirement segment as of December 31, 2021, 2020 and 2019. Many of our variable annuity contracts offer more than one type of GMxB feature such that the amounts listed below are not mutually exclusive. Thus, the benefit base cannot be totaled.

	December 31,
	2021		2020		2019
	(in millions)
Benefit Base
ROP Death Benefit Only (1)	$	6,444	$	6,141	$	6,048
Floating Rate GMxB
GMDB	$	23,574	$	23,095	$	22,793
GMIB	$	24,123	$	23,029	$	22,108
Fixed Rate GMxB
GMDB (1)	$	34,017	$	58,028	$	59,365
GMIB (1)	$	34,719	$	60,695	$	61,775

(1) Benefit base is net of amounts ceded to Venerable during 2021. See Note 1 of the Notes to these Consolidated Financial Statements.

The guaranteed benefit received by a policyholder pursuant to a GMxB feature is calculated based on the benefit base. The benefit base is defined as a hypothetical amount (i.e., not actual cash value) used to calculate the policyholder’s optional benefits within a variable annuity. A benefit base cannot be withdrawn for cash and is used solely to calculate the variable annuity’s optional guarantee values. Generally, the benefit base is not subject to a cap on the value. However, the benefit base stops increasing after a defined time period or at a maximum age, usually age 85 or 95, as defined in the contract.

The calculation of the benefit base varies by benefit type and may differ in value from the policyholder’s AV for the following reasons:

•The benefit base is defined to exclude the effects of a decline in the market value of the policyholder’s AV. Accordingly, actual claim payments to be made in the future to the policyholder will be determined without giving effect to market declines.

•The terms of the benefit base may allow it to increase at a guaranteed rate irrespective of the rate of return on the policyholder’s AV.

We currently offer GMxB riders. Their principal features are as follows:

•GMDBs provide that in the event of the death of the policyholder, the beneficiary will receive the higher of the current contract account balance or the benefit base upon the death of the owner (or annuitant).

•GMIBs provide, if elected by the policyholder after a stipulated waiting period from contract issuance, guaranteed minimum annual lifetime payments based on predetermined guaranteed annuity purchase factors that may exceed what the contract AV can purchase at then-current annuity purchase rates.

For a detailed discussion of GMxB riders, see “—Overview of GMxB Features.”

Markets

For our Individual Retirement segment, we target sales of our products to affluent and high net worth individuals and families saving for retirement or seeking retirement income. As the retirement age population in the United States continues to grow and employers continue to shift away from defined benefit plans, we expect the need for these retirement savings and income products to expand.

Our customers can prioritize certain features based on their life-stage and investment needs. In addition, our products offer features designed to serve different market conditions. SCS serves clients with investable assets who want exposure to equity markets, but also want to guard against a market correction. Retirement Cornerstone serves clients who want growth potential

9

and guaranteed income with increases in a rising interest rate environment. Investment Edge serves clients concerned about rising taxes.

Distribution

We distribute our variable annuity products through Equitable Advisors, and through third-party distribution channels. For the year ended December 31, 2021, Equitable Advisors represented 35% of our variable annuity FYP in this segment, while our third-party distribution channel represented 65% of our variable annuity FYP in this segment. We employ over 150 external and internal wholesalers who distribute our variable annuity products across both channels.

Affiliated Distribution. We offer our variable annuity products on a retail basis through our affiliated retail sales force of financial professionals, Equitable Advisors. These financial professionals have access to and offer a broad array of variable annuity, life insurance, employee benefits and investment products and services from affiliated and unaffiliated insurers and other financial service providers.

Third-Party Distribution. We have shifted the focus of our third-party distribution significantly over the last decade, growing our distribution in the bank, broker-dealer and insurance partner channels. For example, in 2011, we began distributing our variable annuity products to insurance partners. Today, we work with some of the country’s largest insurance partners and our sales through this channel have grown to comprise 10% of our total FYP for the year ended December 31, 2021.

The table below presents the contributions to and percentage of FYP of our variable annuity products by distribution channel for the year ended December 31, 2021.

FYP by Distribution

Other than Equitable Advisors, no single distribution firm contributed more than 10% of our sales in 2021.

Competition

Our Individual Retirement business competes with traditional life insurers, as well as banks, mutual fund companies and other investment managers. The variable annuities market is highly competitive, with no single provider dominating the market across products. The main factors that distinguish competitors to clients include product features, access to capital, access to diversified sources of distribution, financial and claims-paying ratings, investment options, brand recognition, quality of service, technological capabilities and tax-favored status of certain products. It is difficult to provide unique variable annuities products because, once such products are made available to the public, they often are reproduced and offered by our competitors. Competition may affect, among other matters, both the growth of our business and the pricing and features of our products.

10

Underwriting and Pricing

We generally do not underwrite our variable annuity products on an individual-by-individual basis. Instead, we price our products based upon our expected investment returns and assumptions regarding mortality, longevity and persistency for our policyholders collectively, while taking into account historical experience, volatility of expected earnings on our AV, and the expected time to retirement. Our product pricing models also take into account capital requirements, hedging costs and operating expenses. Investment-oriented products are priced based on various factors, which may include investment return, expenses, persistency and optionality.

Our variable annuity products generally include penalties for early withdrawals. From time to time, we reevaluate the type and level of GMxB and other features we offer. We have previously changed the nature and pricing of the features we offer and will likely do so from time to time in the future as the needs of our clients, the economic environment and our risk appetite evolve.

Fees on AV, Fund Assets, Benefit Base and Investment Income

We earn various types of fee revenue based on AV, fund assets and benefit base. In general, fees from GMxB features that are calculated based on the benefit base are more stable compared to fees calculated based on the AV.

Mortality & Expense, Administrative Charges and Distribution Charges. We deduct a daily charge from the net assets in each variable investment option to compensate us for mortality risks, administrative expenses and a portion of our sales expenses under the variable annuity contract. These charges are calculated based on the portion of the policyholder’s AV allocated to the Separate Accounts and are expressed as an annual percentage.

 Withdrawal Charges. Some variable annuity contracts may also impose charges on withdrawals for a period after the purchase, and in certain products for a period after each subsequent contribution, also known as the withdrawal charge period. A withdrawal charge is calculated as a percentage of the contributions withdrawn. The percentage of the withdrawal charge that applies to each contribution depends on how long each contribution had been invested in the contract. Withdrawal charges generally decline gradually over the withdrawal charge period. Contracts may also specify circumstances when no surrender charges apply (for example, upon payment of a death benefit or due to disability, terminal illness or confinement to a nursing home).

Investment Management Fees. We charge investment management fees for the proprietary funds managed by EIMG that are offered as investments under the variable annuities. Investment management fees are also paid on the non-proprietary funds managed by investment advisers unaffiliated with us to the unaffiliated investment advisers. Investment management fees differ by fund. A portion of the investment management fees charged on funds managed by sub-advisers unaffiliated with us are paid by us to the sub-advisers. Investment management fees reduce the net returns on the variable annuity investments.

12b-1 Fees and Other Revenue. 12b-1 fees are paid by the mutual funds which our policyholders choose to invest in and are calculated based on the net assets of the funds allocated to our sub-accounts. These fees reduce the returns policyholders earn from these funds. Additionally, mutual fund companies with funds that are available to policyholders through the variable annuity sub-accounts pay us fees consistent with the terms of administrative service agreements. These fees are funded from the fund companies’ net revenues.

Death Benefit Rider Charges. We deduct a charge annually from the policyholders’ AV on each contract date anniversary for most of our optional death benefits. This charge is in addition to the base mortality and expense charge for promising to pay the GMDB. The charges earned vary by generation and rider type. For some death benefits, the charges are calculated based on AV, but for enhanced death benefits, the charges are normally calculated based on the benefit base.

Living Benefit Riders Charges. We deduct a charge annually from the policyholders’ AV on each contract date anniversary. We earn these fees for promising to pay guaranteed benefits while the policyholder is alive, such as for any type of GMLB (including GMIB, GWBL, GMWB and GMAB). The fees earned vary by generation and rider type and are calculated based on the benefit base.

Investment Income. We earn revenue from investment income on our General Account investments.

11

Risk Management

We approach risk management of our variable annuity products: (i) prospectively, by assessing, and from time to time, modifying our current product offerings to manage our risk and (ii) retrospectively, by implementing actions to reduce our exposure and manage the risks associated with in-force variable annuity contracts.

Current GMxB Product Strategy

Since 2008, we redesigned our variable annuity product offering by introducing new variable annuities without GMxB features, discontinuing the offering of certain GMxB features and adding or adjusting other features to better enable us to manage the risk associated with these products. Through the increase in sales of our products without GMxB features, sales of our variable annuity contracts with GMxB features have decreased significantly as a percentage of our total sales. We continue to offer certain GMxB features to meet evolving consumer demand while maintaining attractive risk-adjusted returns and effectively managing our risk.

 Some of the features of our GMxB products have been redesigned over the past several years to better manage our risk and to meet customer demand. For example:

•we primarily offer floating (tied to interest rates), as opposed to fixed, roll-up rates;

•we offer lower risk investment options, including passive investments and bond funds with reduced credit risk if certain optional guaranteed benefits are elected; and

•we offer managed volatility funds, which seek to reduce the risk of large, sudden declines in AV during market downturns by managing the volatility or draw-down risk of the underlying fund holdings through re-balancing the fund holdings within certain guidelines or overlaying hedging strategies at the fund level.

To further manage our risk, features in our current GMxB products provide us with the right to make adjustments post-sale, including the ability to increase benefit charges. For more information on GMxB features contained in our current and in-force products, see below “—Overview of GMxB Features.”

In-force Variable Annuity Management

Since the financial crisis, we have implemented several actions to reduce our exposure and manage the risks associated with in-force variable annuity contracts while ensuring policyholder rights are fully respected. We manage the risks associated with our in-force variable annuity business through our dynamic hedging program, reinsurance and product design. The dynamic hedging program was implemented in the early 2000s. In addition, we use reinsurance for the GMxB riders on our older variable annuity products (generally issued 1996-2004). We have also introduced several other risk management programs, some of which are described in this section below.

To actively manage and protect against the economic risks associated with our in-force variable annuity products, our management team has taken a multi-pronged approach. Our in-force variable annuity risk management programs include:

Hedging

We use a dynamic hedging strategy supplemented by static hedges to offset changes in our economic liability from changes in equity markets and interest rates. In addition to our dynamic hedging strategy, we have static hedge positions to maintain a target asset level for all variable annuities. A wide range of derivatives contracts are used in these hedging programs, such as futures and total return swaps (both equity and fixed income), options and variance swaps, as well as, to a lesser extent, bond investments and repurchase agreements. For GMxB features, we retain certain risks including basis, credit spread, and some volatility risk and risk associated with actual versus expected assumptions for mortality, lapse and surrender, withdrawal and contract-holder election rates, among other things.

Reinsurance

We have used reinsurance to mitigate a portion of the risks that we face in certain of our variable annuity products with regard to a portion of the GMxB features. Under our reinsurance arrangements, other insurers assume a portion of the obligation to pay claims and related expenses to which we are subject. However, we remain liable as the direct insurer on all risks we reinsure and, therefore, are subject to the risk that our reinsurer is unable or unwilling to pay or reimburse claims at the time demand is made. We evaluate the financial condition of our reinsurers in an effort to minimize our exposure to significant losses from reinsurer insolvencies. Also, we ensure that we obtain collateral to mitigate our risk of loss.

12

Non-affiliate Reinsurance. We have reinsured to non-affiliated reinsurers a portion of our exposure on variable annuity products that offer a GMxB feature issued through February 2005. As of December 31, 2021, we had reinsured to non-affiliated reinsurers, subject to certain maximum amounts or caps in any one period, approximately 59.8% of our NAR resulting from the GMIB feature and approximately 47.6% of our NAR to the GMDB obligation on variable annuity contracts in force as of December 31, 2021.

In June 2021, as part of the Venerable Transaction, Equitable Financial ceded to CS Life on a combined coinsurance and modified coinsurance basis, legacy variable annuity policies sold by Equitable Financial between 2006-2008, comprised of non-New York “Accumulator” policies containing fixed rate GMIB and/or GMDB guarantees. For additional information regarding the Venerable Transaction, see “—Overview—Venerable Transaction” and Note 1 of the Notes to these Consolidated Financial Statements.

Captive Reinsurance. In addition to non-affiliated reinsurance, Equitable Financial has ceded to its affiliate, EQ AZ Life RE, a captive reinsurance company, a 100% quota share of all liabilities for variable annuities with GMIB riders issued on or after May 1, 1999 through August 31, 2005 in excess of the liability assumed by two unaffiliated reinsurers, which are subject to certain maximum amounts or limitations on aggregate claims. We use captive reinsurance as part of our capital management strategy. For additional information regarding our use of captives, see “—Regulation—Insurance Regulation—Captive Reinsurance Regulation and Variable Annuity Capital Standards”, “Risk Factors—Risks Relating to Our Retirement and Protection Businesses—Risks Relating to Reinsurance and Hedging—Our reinsurance arrangement with an affiliated captive” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Captive Reinsurance Company.”

Other Programs

We have introduced several other programs that reduced gross reserves and reduced the risk in our in-force block and, in many cases, offered a benefit to our clients by offering liquidity or flexibility:

Investment Option Changes. We made several changes to our investment options within our variable annuity products over the years to manage risk, employ more passive strategies and offer our clients attractive risk-adjusted investment returns. To reduce the differential between hedging instruments performance and fund performance, we added many passive investment strategies and reduced the credit risk of some of the bond portfolios, which is designed to provide a better risk adjusted return to clients. We also introduced managed volatility funds in 2009. Our volatility management strategy seeks to reduce the portfolio’s equity exposure during periods when certain market indicators indicate that market volatility is above specific thresholds set for the portfolio. Historically when market volatility is high, equity markets generally are trending down, and therefore this strategy is intended to reduce the clients’ overall risk of investing in the portfolio.

Optional Buyouts. We have implemented several successful buyout programs on contracts issued between 2002 and 2009 that benefited clients whose needs had changed since buying the initial contract and reduced our exposure to certain types of GMxB features.

Premium Suspension Programs. We have suspended the acceptance of subsequent premiums to certain GMxB contracts.

Lump Sum Option. We have provided certain policyholders with the optional benefit to receive a one-time lump sum payment rather than systematic lifetime payments if their AV falls to zero. This option provides the same advantages as a buyout. However, because the availability of this option is contingent on future events, their actual effectiveness will only be known over a long-term horizon.

 Overview of GMxB Features

We have historically offered a variety of variable annuity benefit features, including GMxB features, to our policyholders in our Individual Retirement segment.

Guaranteed Minimum Death Benefits Summary

We have historically offered GMDB features in isolation or together with GMLB features, including the following (with no additional charge unless noted):

•Return of Premium Death Benefit. This death benefit pays the greater of the AV at the time of a claim following the owner’s death or the total contributions to the contract (subject to adjustment for withdrawals). The charge for this

13

benefit is usually included in the Mortality & Expense charge that is deducted daily from the net assets in each variable investment option.

•RMD Wealthguard Death Benefit. This death benefit features a benefit base that does not decrease by the amount of any IRS-mandated withdrawals, or RMD, from the contract. The benefit base automatically increases to equal the highest AV on the current or any prior contract anniversary until RMD withdrawals begin or until the owner reaches a specified maximum age, even if the AV is reduced by negative investment performance. The charges for this benefit are calculated based on the benefit base value and deducted annually from the AV.

•Annual Ratchet (also referred to as Highest Anniversary Value). This death benefit features a benefit base that is reset each year to equal the higher of total contributions to the contract or the highest AV on the current or any prior contract anniversary (subject to adjustment for withdrawals), even if the AV is reduced by negative investment performance. The charge for this benefit is calculated based on the benefit base value and deducted annually from the AV.

•Roll-up Death Benefit. This death benefit features a benefit base that increases (or “rolls up”) at a specified guaranteed annual rate (subject to adjustment for withdrawals), even if the AV is reduced by negative investment performance. The charge for this benefit is calculated based on the benefit base value and deducted annually from the AV. This GMxB feature was discontinued in 2003.

•Greater of Roll-up or Annual Ratchet. This death benefit features a benefit base that increases each year to equal the higher of the initial benefit base accumulated at a specified guaranteed rate or the highest AV on the current or any prior contract anniversary (subject to adjustment for withdrawals), even if the AV is reduced by negative investment performance. The charge for this benefit is calculated based on the benefit base value and deducted annually from the AV.

In addition, we offered two guaranteed minimum death benefits with our GWBL rider, available at issue.

•GWBL Standard Death Benefit. This death benefit features a benefit base that is equal to total contributions to the contract less a deduction reflecting the amount of any withdrawals made.

•GWBL Enhanced Death Benefit. This death benefit features a benefit base that is equal to total contributions to the contract plus the amounts of any ratchets and deferral bonus, less a deduction reflecting the amount of any withdrawals made. This benefit was available for an additional fee.

The following table presents the AV and benefit base by type of guaranteed minimum death benefit. Because variable annuity contracts with GMDB features may also offer GMLB features, the GMDB amounts listed are not mutually exclusive from the GMLB amounts provided in the table below.

	December 31,
	2021				2020				2019
	Account		Benefit		Account		Benefit		Account		Benefit
	Value		Base		Value		Base		Value		Base
	(in millions)
GMDB In-Force (1)
ROP Death Benefit Only (3)	$	11,437	$	6,443	$	10,437	$	6,141	$	9,620	$	6,048
Floating Rate GMDB
Greater of Ratchet or Roll-up	$	7,105	$	7,867	$	7,121	$	7,995	$	7,017	$	7,891
All Other (2)	19,381		15,707		18,047		15,100		16,874		14,902
Total Floating Rate GMDB	$	26,486	$	23,574	$	25,168	$	23,095	$	23,891	$	22,793
Fixed Rate GMDB
Greater of Ratchet or Roll-up (3)	$	14,748	$	21,518	$	26,800	$	42,521	$	26,239	$	42,896
All Other (2) (3)	15,390		12,689		18,822		15,507		18,478		16,469
Total Fixed Rate GMDB	$	30,138	$	34,207	$	45,622	$	58,028	$	44,717	$	59,365
Total GMDB	$	68,061	$	64,224	$	81,227	$	87,264	$	78,228	$	88,206

______________

14

(1)    See table summarizing the NAR and reserves of policyholders by type of GMxB feature for variable annuity contracts as of December 31, 2021, 2020 and 2019 under “—Net Amount at Risk.”

(2) All Other includes individual variable annuity policies with Annual Ratchet or Roll-up GMDB, either stand-alone or in conjunction with a GMLB, or with ROP GMDB in conjunction with a GMLB.

(3)    AV and Benefit base is net of amounts ceded to Venerable during 2021. See Note 1 of the Notes to the Consolidated Financial Statements.

Guaranteed Living Benefits Summary

We have historically offered a variety of guaranteed living benefits to our policyholders in our Individual Retirement segment. Our block of variable annuities includes four types of guaranteed living benefit riders: GMIB, GWBL/GMWB, GMAB and GIB. Based on total AV, approximately 51% of our variable annuity block included living benefit guarantees as of December 31, 2021.

•GMIB. GMIB is our largest block of living benefit guarantees based on in-force AV. Policyholders who purchase the GMIB rider will be eligible, at the end of a defined waiting period, to receive annuity payments for life that will never be less than a guaranteed minimum amount, regardless of the performance of their investment options prior to the first payment. During this waiting period, which is often referred to as the accumulation phase of the contract, policyholders can invest their contributions in a range of variable and guaranteed investment options to grow their AV on a tax-deferred basis while increasing the value of the GMIB benefit base that helps determine the minimum annuity payment amount. Policyholders may elect to continue the accumulation phase beyond the waiting period if they wish to maintain the ability to take withdrawals from their AV or continue to participate in the growth of both their AV and GMIB benefit base.

The second phase of the contract starts when the policyholder annuitizes the contract, either by exercising the GMIB or through the contract’s standard annuitization provisions. Upon exercise of their GMIB, policyholders receive guaranteed lifetime income payments that are calculated as the higher of: (i) application of their GMIB benefit base to the GMIB guaranteed annuity purchase factors specified in the contract; or (ii) application of their AV to our then current or guaranteed annuity purchase factors. Beginning in 2005 we started offering a no-lapse guarantee on our GMIB riders that provides for the automatic exercise of the GMIB in the event that the policyholder’s AV falls to zero and provided no “excess withdrawals” (as defined in the contract) have been taken.

The charge for the GMIB is calculated based on the GMIB benefit base value and deducted annually from the AV.

•GWBL. This benefit guarantees that a policyholder can take lifetime withdrawals from their contract up to a maximum amount per year without reducing their GWBL benefit base. The amount of each guaranteed annual withdrawal is based on the value of the GWBL benefit base. The GWBL benefit base is equal to the total initial contributions to the contract and will increase by subsequent contributions (where permitted), ratchets or deferral bonuses (if applicable), and will be reduced by any “excess withdrawals,” which are withdrawals that exceed the guaranteed annual withdrawal amount. The policyholder may elect one of our automated withdrawal plans or take ad hoc withdrawals. This benefit can be purchased on a single life or joint life basis. The charge for the GWBL is calculated based on the GWBL benefit base value and deducted annually from the AV.

•GMWB. This benefit guarantees that the policyholder can take withdrawals from their contract up to the amount of their total contributions, even if the AV subsequently falls to zero, provided that during each contract year total withdrawals do not exceed annual GMWB withdrawal amount that is calculated under the terms of the contract. The policyholder may choose either a 5% GMWB Annual withdrawal option or a 7% GMWB Annual withdrawal option. Annual withdrawal amounts are not cumulative year over year. The charge for the GMWB is calculated based on the GMWB benefit base value and deducted annually from the AV. We ceased offering GMWB riders in 2008.

•GMAB. This benefit guarantees that the AV can never fall below a minimum amount for a set period, which can also include locking in capital market gains. This rider protects the policyholder from market fluctuations. Two options we offered were a 100% principal guarantee and a 125% principal guarantee. Each option limited the policyholder to specified investment options. The charge for the GMAB is calculated based on the GMAB benefit base value and deducted annually from the AV. We ceased offering GMAB riders in 2008.

•GIB. This benefit provides the policyholder with a guaranteed lifetime annuity based on predetermined annuity purchase rates applied to a GIB benefit base, with annuitization automatically triggered if and when the contract AV falls to zero. The charge for the GIB is calculated based on the GIB benefit base value and deducted annually from the AV. We ceased offering the GIB in 2012.

Below are examples of policyholder benefit utilization choices that can affect benefit payment patterns and reserves:

15

•Lapse. The policyholder may lapse or exit the contract, at which time the GMIB and any other GMxB guarantees are terminated. If the policyholder partially exits, the GMIB benefit base and any other GMxB benefit bases will be reduced in accordance with the contract terms.

•Dollar-for-Dollar Withdrawals. A policyholder may request a onetime withdrawal or take systematic withdrawals from his or her contract at any time. All withdrawals reduce a contract’s AV by the dollar amount of a withdrawal. However, the impact of withdrawals on the GMIB and any other guaranteed benefit bases may vary depending on the terms of the contract. Withdrawals will reduce guaranteed benefit bases on a dollar-for-dollar basis as long as the sum of withdrawals in a contract year is equal to or less than the dollar-for-dollar withdrawal threshold defined in the contract, beyond which all withdrawals are considered “excess withdrawals.” An excess withdrawal may reduce the guaranteed benefit bases on a pro rata basis, which can have a significantly adverse effect on their values. A policyholder wishing to take the maximum amount of dollar-for-dollar withdrawals on a systematic basis may sign up for our dollar-for-dollar withdrawal service at no additional charge. Withdrawals under this automated service will never result in a pro rata reduction of the guaranteed benefit bases, provided that no withdrawals are made outside the service. If making dollar-for-dollar withdrawals in combination with negative investment reduces the AV to zero, the contract may have a no-lapse guarantee that triggers the automatic exercise of the GMIB, providing the policyholder with a stream of lifetime annuity payments determined by the GMIB benefit base value, the age and gender of the annuitant and predetermined annuity purchase factors.

•Voluntary Annuitization. The policyholder may choose to annuitize their AV or exercise their GMIB (if eligible). GMIB annuitization entitles the policyholder to receive a stream of lifetime (with or without period certain) annuity payments determined by the GMIB benefit base value, the age and gender of the annuitant and predetermined annuity purchase factors. GMIB annuitization cannot be elected past the maximum GMIB exercise age as stated in the contract, generally age 85 or 95. The policyholder may otherwise annuitize the AV and choose one of several payout options.

•Convert to a GWBL. In some products, policyholders have the option to convert their GMIB into a GWBL to receive guaranteed income through a lifetime withdrawal feature. This choice can be made as an alternative to electing to annuitize at the maximum GMIB exercise age and may be appealing to policyholders who would prefer the ability to withdraw higher annual dollar-for-dollar amounts from their contract than permitted under the GMIB, for as long as their AV remains greater than zero.

•Remain in Accumulation Phase. If the policyholder chooses to remain in the contract’s accumulation phase past the maximum GMIB exercise age—that is, by not electing annuitization or converting to a GWBL—and as long as the AV has not fallen to zero, then the GMIB will terminate and the contract will continue until the contractual maturity date. In these circumstances, depending on the GMDB elected at issue (if any) and the terms of the contract, the benefit base for the GMDB may be equal to the GMIB benefit base at the time the GMIB was terminated, may no longer increase and will be reduced by future withdrawals.

The likelihood of a policyholder choosing a particular option cannot be predicted with certainty at the time of contract issuance. Accordingly, we make assumptions as to policyholder benefit elections and resulting benefit payments at the time of issuance and while it is in-force based on our experience. The incidents and timing of benefit elections and the amounts of resulting benefit payments may materially differ from those we anticipate at that time. As we observe actual policyholder behavior, we update our assumptions at least annually with respect to future policyholder activity and take appropriate action with respect to the amount of the reserves we establish for the future payment of such benefits. Additionally, upon the death of a policyholder (or annuitant), if the sole beneficiary is a surviving spouse, they can choose to continue the contract and benefits subject to age restrictions.

The following table presents the AV and benefit base by type of guaranteed living benefit. Because variable annuity contracts with GMLB features may also offer GMDB features, the GMLB amounts listed are not mutually exclusive from the GMDB amounts provided in the table above.

16

	December 31,
	2021				2020				2019
	Account		Benefit		Account		Benefit		Account		Benefit
	Value		Base		Value		Base		Value		Base
	(in millions)
GMLB In-Force (1)
Floating Rate GMLB
GMIB	$	23,435	$	24,123	$	22,002	$	23,029	$	20,699	$	22,108
Other (GIB)	2,623		2,796		2,762		2,978		2,812		3,128
Total Floating Rate GMLB	$	26,058	$	26,919	$	24,764	$	26,007	$	23,511	$	25,236
Fixed Rate GMLB
GMIB	$	40,065	$	59,341	$	39,369	$	60,695	$	38,846	$	61,775
All Other (e.g., GWBL / GMWB, GMAB, other) (2)	846		1,153		830		1,165		806		1,175
Total Fixed Rate GMLB	$	40,911	$	60,494	$	40,199	$	61,860	$	39,652	$	62,950
Total GMLB	$	66,969	$	87,413	$	64,963	$	87,867	$	63,163	$	88,186

______________

(1)See table summarizing the NAR and reserves of policyholders by type of GMxB feature for variable annuity contracts as of December 31, 2021, 2020 and 2019 under “—Net Amount at Risk.”

(2)    All Other includes individual variable annuity policies with stand-alone Annual Ratchet or stand-alone Roll-up GMDB.

Net Amount at Risk

The NAR for the GMDB is the amount of death benefits payable in excess of the total AV (if any) as of the balance sheet date, net of reinsurance. It represents the amount of the claim we would incur if death claims were made on all contracts with a GMDB on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death.

The NAR for the GMIB is the amount (if any) that would be required to be added to the total AV to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the GMIB. This amount represents our potential economic exposure to such guarantees in the event all policyholders were to annuitize on the balance sheet date, even though the guaranteed amount under the contracts may not be annuitized until after the waiting period of the contract.

The NAR for the GWBL, GMWB and GMAB is the actuarial present value in excess of the AVs (if any) as of the balance sheet date. The NAR assumes utilization of benefits by all policyholders as of the balance sheet date. For the GMWB and GWBL benefits, only a small portion of the benefit base is available for withdrawal on an annual basis. For the GMAB, the NAR would not be available until the GMAB maturity date.

NAR reflects the difference between the benefit base (as adjusted, in some cases, as described above) and the AV. We believe that NAR alone provides an inadequate presentation of the risk exposure of our in-force variable annuity portfolio. NAR does not take into consideration the aggregate amount of reserves and capital that we hold against our variable annuity portfolio.

The NAR and reserves of contract owners by type of GMxB feature for variable annuity contracts are summarized below as of December 31, 2021, 2020 and 2019. Many of our variable annuity contracts offer more than one type of guarantee such that the GMIB amounts are not mutually exclusive to the amounts in the GMDB table.

17

	December 31,
	2021				2020				2019
	NAR		Reserves		NAR		Reserves		NAR		Reserves
	(in millions)
GMDB
ROP Death Benefit Only (1) (2)	$	75	N/A		$	84	N/A		$	95	N/A
Floating Rate GMDB	851		377		943		332		904		272
Fixed Rate GMDB (2)	8,061		2,360		17,244		4,674		18,123		4,402
Total	$	8,987	$	2,737	$	18,271	$	5,006	$	19,122	$	4,674

	December 31,
	2021				2020				2019
	NAR		Reserves		NAR		Reserves		NAR		Reserves
	(in millions)
GMIB
Floating Rate GMIB	$	—	$	172	$	—	$	136	$	—	$	91
Fixed Rate GMIB (2)	3,910		4,441		10,461		14,110		8,746		10,573
Total	$	3,910	$	4,613	$	10,461	$	14,246	$	8,746	$	10,664

______________

(1)    U.S. GAAP reserves for ROP death benefit only are not available, as U.S. GAAP reserve valuation basis applies on policy contracts grouped by issue year.

(2) NAR is net of amounts ceded to Venerable during 2021. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction.

18

Group Retirement

Our Group Retirement 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. We operate in the 403(b), 457(b) and 401(k) markets where we sell variable annuity and mutual fund-based products. RBG, is the primary distributor of our products and related solutions to individuals in the K-12 education market with more than 1,000 advisors dedicated to helping educators prepare for retirement as of December 31, 2021.

The tax-exempt 403(b)/457(b) market, which includes our 403(b) K–12 education market business, accounted for 71% of sales within the Group Retirement business for the year ended December 31, 2021. The corporate 401(k) market accounts for 22% and the remaining 7% is Other as of December 31, 2021.

The recurring nature of the revenues from our Group Retirement business makes this segment an important and stable contributor of earnings and cash flow to our business. The primary sources of revenue for the Group Retirement business include fee revenue and investment income.

Products

Our products offer educators, municipal employees and corporate employees a savings opportunity that provides tax-deferred wealth accumulation. Our innovative product offerings address all retirement phases with diverse investment options.

Variable Annuities

Our variable annuities offer defined contribution plan record-keeping, as well as administrative and participant services combined with a variety of proprietary and non-proprietary investment options. Our variable annuity investment lineup mostly consists of proprietary variable investment options that are managed by EIMG, which provides discretionary investment management services for these investment options that include developing and executing asset allocation strategies and providing rigorous oversight of sub-advisors for the investment options. This helps to ensure that we retain high quality managers and that we leverage our scale across both the Individual Retirement and Group Retirement products. In addition, our variable annuity products offer the following features:

•Guaranteed Investment Option (GIO) —Provides a fixed interest rate and guarantee of principal.

•Structured Investment Option (SIO) —Provides upside market participation that tracks either the S&P 500, Russell 2000 or the MSCI EAFE index subject to a performance cap, with a downside buffer that limits losses in the investment over a one, three or five-year period. This option leverages our innovative SCS individual annuity offering, and we believe that we are the only provider that offers this type of offering combined in a variable annuity offering in the defined contribution market today.

•Personal Income Benefit—An optional GMxB feature that enables participants to obtain a guaranteed withdrawal benefit for life for an additional fee.

While GMxB features provide differentiation in the market, only approximately $9 million, or 0.02%, of our total AV is invested in products with GMxB features (other than ROP death benefits) as of December 31, 2021, and based on current utilization, we do not expect significant flows into these types of GMxB features.

Open Architecture Mutual Fund Platform

We also offer a mutual fund-based product to complement our variable annuity products. This platform provides a similar service offering to our variable annuities. The program allows plan sponsors to select from thousands of mutual funds. The platform also offers a group fixed annuity that operates very similarly to the GIO as an available investment option on this platform. In January 2021 we launched the successor product to our existing mutual fund based product.

Services

Both our variable annuity and open architecture mutual fund products offer a suite of tools and services to enable plan participants to obtain education and guidance on their contributions and investment decisions and plan fiduciary services. Education and guidance are available online or in person from a team of plan relationship and enrollment specialists and/or the advisor that sold the product. Our clients’ retirement contributions come through payroll deductions, which contribute significantly to stable and recurring sources of renewals.

19

The chart below illustrates our net flows for the years ended December 31, 2021, 2020 and 2019.

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Net Flows
Gross Premiums	$	3,623	$	3,343	$	3,533
Surrenders, Withdrawals and Benefits	(3,929)		(3,047)		(3,266)
Net Flows	$	(306)	$	296	$	267

The following table presents the gross premiums for each of our markets for the periods specified.

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Gross Premiums by Market
Tax-Exempt	$	809	$	724	$	902
Corporate	435		392		537
Other	62		60		49
Total FYP	1,306		1,176		1,488
Tax-Exempt	1,757		1,632		1,531
Corporate	369		342		330
Other	191		193		184
Total Renewal Premiums	2,317		2,167		2,045
Gross Premiums	$	3,623	$	3,343	$	3,533

Markets

We primarily operate in the tax-exempt 403(b)/457(b), corporate 401(k) and other markets.

•Tax-exempt 403(b)/457(b). We primarily serve individual employees of public school systems. To a lesser extent, we also market to government entities that sponsor 457(b) plans.

Overall, the 403(b) and 457(b) markets represent 62% of FYP in the Group Retirement segment for the year ended December 31, 2021. We seek to grow in these markets by increasing our presence in the school districts where we currently operate and also by potentially growing our presence in school districts where we currently do not have access.

•Corporate 401(k). We target small and medium-sized businesses with 401(k) plans that generally have under $20 million in assets. Our product offerings accommodate start up plans and plans with accumulated assets. Typically, our products appeal to companies with strong contribution flows and a smaller number of participants with relatively high average participant balances. The under $20 million asset plan market is well aligned with our advisor distribution, which has a strong presence in the small and medium-sized business market, and complements our other products focused on this market (such as life insurance and employee benefits products aimed at this market).

•Other. Our other business includes an affinity-based direct marketing program where we offer retirement and individual products to employers that are members of industry or trade associations and various other sole proprietor and small business retirement accounts.

The following table presents the relative contribution of each of our markets to AV as of the dates indicated.

20

	December 31,
	2021		2020		2019
	(in millions)
AV by Market
Tax-Exempt	$	37,072	$	32,586	$	28,895
Corporate	5,367		4,920		4,387
Other	4,914		4,953		4,598
AV	$	47,353	$	42,459	$	37,880

Distribution

We primarily distribute our products and services to this market through Equitable Advisors and third-party distribution firms. For the year ended December 31, 2021, these channels represented approximately 88% and 12% of our sales, respectively. We also distribute through direct online sales. We employ internal and external wholesalers to exclusively market our products through Equitable Advisors and third-party firms that are licensed to sell our products.

Equitable Advisors, through RBG, is the primary distribution channel for our products. The cornerstone of the RBG model is a repeatable and scalable advisor recruiting and training model that we believe is more effective than the overall industry model. RBG advisors complete several levels of training that are specific to the education market and give them the requisite skills to assess the educators’ retirement needs and how our products can help to address those needs. Equitable Advisors also accounted for 98% of our 403(b) sales in 2021.

Group Retirement products are also distributed through third-party firms and directly to customers online. We have a digital engagement strategy to supplement our traditional advisor-based model. This includes engaging existing clients to increase contributions online. The program uses data analysis combined with digital media to engage educators, teach them about their retirement needs and increase awareness of our products and services. Due to effects of the COVID-19 pandemic, we accelerated our digital adoption programs, leading to improved outcomes for clients, advisors, and the Company. We developed digital tools and enhanced our remote engagement with our educator clients, which is resulting in improved retention and increases in retirement plan contributions.

The following table presents first year premium by distribution channel for the periods indicated:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
FYP by Distribution
Equitable Advisors	$	1,155	$	1,078	$	1,341
Third-Party	151		98		147
Total	$	1,306	$	1,176	$	1,488

Competition

We compete with select insurance companies, asset managers, record keepers and diversified financial institutions that target similar market segments. Competition varies in all market segments with no one company dominating. In the K–12 public education market, competitors are primarily insurance-based providers that focus on school districts. In the small and medium-sized business market, the primary competitors are insurance-based providers and mutual fund companies. The main features that distinguish our offering to clients include our RBG distribution model, the product features we offer to clients, including guarantees, and our financial strength.

Underwriting and Pricing

We generally do not underwrite our annuity products on an individual-by-individual basis. Instead, we price our products based upon our expected investment returns and assumptions regarding mortality, longevity and persistency for our policyholders collectively, while taking into account historical experience, volatility of expected earnings on our AV, and the expected time to retirement. Our product pricing models also take into account capital requirements, hedging costs and operating expenses. Investment-oriented products are priced based on various factors, which may include investment return, expenses, persistency and optionality.

21

Our variable annuity products generally include penalties for early withdrawals. From time to time, we reevaluate the type and level of guarantees and other features we offer. We have previously changed the nature and pricing of the features we offer and will likely do so from time to time in the future as the needs of our clients, the economic environment and our risk appetite evolve.

Fees

We earn various types of fee revenue based on AV, fund assets and benefit base. Fees that we collect include mortality & expense, administrative charges and distribution charges; withdrawal charges; investment management fees, 12b-1 fees, death benefit rider charges, and living benefit riders charges. For a more detailed description of these types of fees, see “—Individual Retirement—Fees on AV, Fund Assets, Benefit Base and Investment Income.”

Risk Management

We design our Group Retirement products with the goal of providing attractive features to clients that also minimize risks to us. To mitigate risks to our General Account from fluctuations in interest rates, we apply a variety of techniques that align well with a given product type. We designed our GIO to comply with the NAIC minimum rate (1.0% for new issues), and our 403(b) products that we currently sell include a contractual provision that enables us to limit transfers into the GIO. As most defined contribution plans allow participants to borrow against their accounts, we have made changes to our loan repayment processes to minimize participant loan defaults and to facilitate loan repayments to the participant’s current investment allocation as opposed to requiring repayments only to the GIO. In the 401(k) and 457(b) markets, we may charge a market value adjustment on the assets of the GIO when a plan sponsor terminates its agreement with us. We also prohibit direct transfers to fixed income products that compete with the GIO, which protects the principal in the General Account in a rising interest rate environment.

In the Tax-Exempt market, the benefits include a minimum guaranteed interest rate on our GIO, return of premium death benefits and limited optional GMxB features. The utilization of GMxB features is low. In the Corporate market, the products that we sell today do not offer death benefits in excess of the AV.

As of December 31, 2021, approximately 59% of our General Account AV has a minimum guaranteed rate of 3-4%. Given the growth in net flows to our newer products and the slowing in flows to older blocks due to retirement, we expect that guarantees at a rate over 3% will continue to diminish as a percentage of our overall General Account AV. The table below illustrates the guaranteed minimum rates applicable to our General Account AV for products with the GIO, as of December 31, 2021.

	Total General
Guaranteed Minimum Interest Rate	Account AV
	(in billions)
1 – < 2%	$	3.7
2 – < 3%	1.4
3%	7.1
4%	0.2
Total	$	12.4

We use a committee of subject matter experts and business leaders that meet periodically to set crediting rates for our guaranteed interest options. The committee evaluates macroeconomic and business factors to determine prudent interest rates in excess of the contract minimum when appropriate.

We also monitor the behavior of our clients who have the ability to transfer assets between the GIO and various Separate Accounts investment options. We have not historically observed a material shift of assets moving into guarantees during times of higher market volatility.

Hedging

We hedge crediting rates to mitigate certain risks associated with the SIO. In order to support the returns associated with the SIO, we enter into derivatives contracts whose payouts, in combination with fixed income investments, emulate those of the S&P 500, Russell 2000 or MSCI EAFE index, subject to caps and buffers.

22

Investment Management and Research

Our Investment Management and Research business provides diversified investment management, research and related services globally to a broad range of clients through AB’s three buy-side distribution channels: Institutions, Retail and Private Wealth Management, and AB’s sell-side business, Bernstein Research Services. AB Holding is a master limited partnership publicly listed on the NYSE. We own an approximate 65% economic interest in AB. As the general partner of AB, we have the authority to manage and control its business, and accordingly, this segment reflects AB’s consolidated financial results.

Our Investment Management and Research business had approximately $778.6 billion in AUM as of December 31, 2021, composed of 46% equities, 41% fixed income and 13% multi-asset class solutions, alternatives and other assets. By distribution channel, institutional clients represented 43% of AUM, while retail and private wealth management clients represented 41% and 16% respectively, as of December 31, 2021.

AB has a suite of actively managed, differentiated equity and fixed income services, delivering strong risk-adjusted returns. For instance, 72% of AB’s fixed income services and 49% of AB’s equity services have outperformed their benchmarks over the three-year period ended December 31, 2021. Additionally, at year-end 2021, 76% of AB’s U.S. Fund assets and 59% of AB’s Non-U.S. Fund assets were rated either 4 or 5-stars by Morningstar.

Bernstein Research Services has received top Institutional Investor rankings and Private Wealth Management ranks among the top 20 wealth management firms in the United States, according to Barron’s.

We are AB’s largest client. We represented 17% of AB’s total AUM as of December 31, 2021 and 3% of AB’s net revenues for the year ended December 31, 2021.

AB provides research, diversified investment management and related services globally to a broad range of clients. Its principal services include:

•Institutional Services—servicing its institutional clients, including private and public pension plans, foundations and endowments, insurance companies, central banks and governments worldwide, and affiliates such as Holdings and its subsidiaries, by means of separately-managed accounts, sub-advisory relationships, structured products, collective investment trusts, mutual funds, hedge funds and other investment vehicles.

•Retail Services—servicing its retail clients, primarily by means of retail mutual funds sponsored by AB or EIMG, sub-advisory relationships with mutual funds sponsored by third parties, separately-managed account programs sponsored by financial intermediaries worldwide and other investment vehicles.

•Private Wealth Management Services—servicing its private clients, including high net worth individuals and families, trusts and estates, charitable foundations, partnerships, private and family corporations, and other entities, by means of separately-managed accounts, hedge funds, mutual funds and other investment vehicles.

•Bernstein Research Services—servicing institutional investors, such as pension fund, hedge fund and mutual fund managers, seeking high-quality fundamental research, quantitative services and brokerage-related services in equities and listed options.

AB also provides distribution, shareholder servicing, transfer agency services and administrative services to the mutual funds it sponsors.

Generally, AB is compensated for its investment services on the basis of investment advisory and services fees calculated as a percentage of AUM.

Products and Services

Investment Services

AB provides a broad range of investment services with expertise in:

•Actively-managed equity strategies, with global and regional portfolios across capitalization ranges, concentration ranges and investment strategies, including value, growth and core equities;

•Actively-managed traditional and unconstrained fixed income strategies, including taxable and tax-exempt strategies;

•Alternative investments, including hedge funds, fund of funds, direct lending, real estate and private equity;

23

•Multi-asset solutions and services, including dynamic asset allocation, customized target-date funds and target-risk funds; and

•Some passive management, including index and enhanced index strategies.

Research

AB’s high-quality, in-depth research is the foundation of its business. AB believes that its global team of research professionals, whose disciplines include economic, fundamental equity, fixed income and quantitative research, gives it a competitive advantage in achieving investment success for its clients. AB also has experts focused on multi-asset strategies, wealth management, ESG, and alternative investments.

Custody

AB’s U.S.-based broker-dealer subsidiary acts as custodian for the majority of AB’s Private Wealth Management AUM and some of its Institutional AUM. Other custodian arrangements, directed by clients, include banks, trust companies, brokerage firms and other financial institutions.

For additional information about AB’s investment advisory fees, including performance-based fees, see “Risk Factors—Risks Relating to Our Investment Management and Research Business” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations by Segment—Investment Management and Research.”

Markets

AB operates in major markets around the world, including the United States, EMEA (Europe, the Middle East and Africa) and Asia. Our AUM is disbursed as follows:

By Investment Service ($ in billions):

24

By Client Domicile ($ in billions):

Distribution Channels

AB distributes its products and solutions through three main client channels: Institutional, Retail and Private Wealth Management.

Institutional

AB offers to its institutional clients, which include private and public pension plans, foundations and endowments, insurance companies, central banks and governments worldwide, and Holdings and its subsidiaries, separately-managed accounts, sub-advisory relationships, structured products, collective investment trusts, mutual funds, hedge funds and other investment vehicles (“Institutional Services”).

AB manages the assets of its institutional clients pursuant to written investment management agreements or other arrangements, which generally are terminable at any time or upon relatively short notice by either party. In general, AB’s written investment management agreements may not be assigned without the client’s consent.

Retail

AB provides investment management and related services to a wide variety of individual retail investors globally through retail mutual funds AB sponsors, mutual fund sub-advisory relationships, separately-managed account programs and other investment vehicles (“Retail Products and Services”).

AB distributes its Retail Products and Services through financial intermediaries, including broker-dealers, insurance sales representatives, banks, registered investment advisers and financial planners. These products and services include open-end and closed-end funds that are either (i) registered as investment companies under the Investment Company Act or (ii) not registered under the Investment Company Act and generally not offered to U.S. persons. They also include separately-managed account programs, which are sponsored by financial intermediaries and generally charge an all-inclusive fee covering investment management, trade execution, asset allocation, and custodial and administrative services. In addition, AB provides distribution, shareholder servicing, transfer agency services and administrative services for its Retail Products and Services.

Private Wealth Management

AB partners with its clients, embracing innovation and independent research to address increasingly complex challenges. AB’s clients include high net worth individuals and families who have created generational wealth as successful business owners, athletes, entertainers, corporate executives and private practice owners. AB also provides investment and wealth advice to foundations and endowments, family offices and other entities. AB’s flexible investment platform offers a range of solutions, including separately-managed accounts, hedge funds, mutual funds and other investment vehicles, tailored to meet each distinct client’s needs. AB’s investment platform is complimented with a wealth platform that includes complex tax and estate planning, pre-IPO and pre-transaction planning, multi-generational family engagement, and philanthropic advice in addition to tailored approaches to meeting the unique needs of emerging wealth and multi-cultural demographics.

AB manages these accounts pursuant to written investment advisory agreements, which generally are terminable at any time or upon relatively short notice by any authorized party, and may not be assigned without the client’s consent.

25

Competition

AB competes in all aspects of its business with numerous investment management firms, mutual fund sponsors, brokerage and investment banking firms, insurance companies, banks, savings and loan associations and other financial institutions that often provide investment products with similar features and objectives as those AB offers. AB’s competitors offer a wide range of financial services to the same customers that AB seeks to serve.

To grow its business, AB believes it must be able to compete effectively for AUM. Key competitive factors include: (i) AB’s investment performance for clients; (ii) AB’s commitment to place the interests of its clients first; (iii) the quality of AB’s research; (iv) AB’s ability to attract, motivate and retain highly skilled, and often highly specialized, personnel; (v) the array of investment products AB offers; (vi) the fees AB charges; (vii) Morningstar/Lipper rankings for the AB Funds; (viii) AB’s ability to sell its actively-managed investment services despite the fact that many investors favor passive services; (ix) AB’s operational effectiveness; (x) AB’s ability to further develop and market its brand; and (xi) AB’s global presence.

AUM

AUM by distribution channel were as follows:

	December 31,
	2021		2020		2019
	(in billions)
Institutions	$	337.1	$	315.6	$	282.7
Retail	319.9		265.3		239.2
Private Wealth Management	121.6		105.0		101.0
Total	$	778.6	$	685.9	$	622.9

AUM by investment service were as follows:

	December 31,
	2021		2020		2019
	(in billions)
Equity
Actively Managed	$	287.6	$	217.8	$	177.2
Passively Managed (1)	71.6		64.5		60.1
Total Equity	359.2		282.3		237.3
Fixed Income
Actively Managed
Taxable	246.3		263.2		258.3
Tax-exempt	57.1		50.3		47.1
Total Actively Managed	303.4		313.5		305.4
Passively Managed (1)	13.2		8.5		9.3
Total Fixed Income	316.6		322.0		314.7
Alternatives/Multi-Asset Solutions (2)
Actively Managed	97.3		79.1		69.3
Passively Managed (1)	5.5		2.5		1.6
Total Other	102.8		81.6		70.9
Total	$	778.6	$	685.9	$	622.9

_____________

(1)Includes index and enhanced index services.

(2)Includes certain multi-asset solutions and services not included in equity or fixed income services. Prior to December 31, 2020, this investment service line was disclosed as "Other." In order to reflect the increasing significance of our Alternatives and Multi-Asset Solutions services, we updated the investment service line to "Alternatives and Multi-Asset Solutions."

26

Changes in AUM for the years ended December 31, 2021 and 2020 are as follows:

	Distribution Channel
	Institutions		Retail		Private Wealth Management		Total
	(in billions)
Balance, December 31, 2020	$	315.6	$	265.3	$	105.0	$	685.9
Long-term flows:
Sales/new accounts	31.7		100.0		18.3		150.0
Redemptions/terminations	(23.4)		(65.1)		(15.3)		(103.8)
Cash flow/unreinvested dividends	(6.0)		(14.1)		—		(20.1)
Net long-term inflows (outflows) (1)	2.3		20.8		3.0		26.1
Transfers	(0.2)		0.2		—		—
Market appreciation (depreciation)	19.4		33.6		13.6		66.6
Net change	21.5		54.6		16.6		92.7
Balance, December 31, 2021	$	337.1	$	319.9	$	121.6	$	778.6

	Distribution Channel
	Institutions		Retail		Private Wealth Management		Total
	(in billions)
Balance, December 31, 2019	$	282.7	$	239.2	$	101.0	$	622.9
Long-term flows:
Sales/new accounts	30.9		78.9		14.3		124.1
Redemptions/terminations	(23.3)		(69.5)		(16.5)		(109.3)
Cash flow/unreinvested dividends	(6.6)		(11.0)		0.2		(17.4)
Net long-term inflows (outflows) (1)	1.0		(1.6)		(2.0)		(2.6)
Acquisitions	—		0.2		—		0.2
Transfers	1.4		(0.6)		(0.8)		—
Market appreciation	30.5		28.1		6.8		65.4
Net change	32.9		26.1		4.0		63.0
Balance, December 31, 2020	$	315.6	$	265.3	$	105.0	$	685.9

______________

(1) Institutional net flows include $1.3 billion and $11.8 billion of AXA redemptions of certain low-fee fixed income mandates for 2021 and 2020, respectively.

27

	Investment Services
	Equity Actively Managed		Equity Passively Managed (1)		Fixed Income Actively Managed—Taxable		Fixed Income Actively Managed—Tax Exempt		Fixed Income Passively Managed (1)		Alternatives /Multi-Asset Solutions (2)		Total
	(in billions)
Balance, December 31, 2020	$	217.8	$	64.5	$	263.2	$	50.3	$	8.5	$	81.6	$	685.9
Long-term flows:
Sales/new accounts	72.9		1.4		44.9		13.5		4.6		12.7		150.0
Redemptions/terminations	(39.6)		(1.1)		(52.6)		(7.8)		(0.4)		(2.3)		(103.8)
Cash flow/unreinvested dividends	(11.4)		(7.8)		(2.2)		0.3		0.8		0.2		(20.1)
Net long-term inflows (outflows) (3)	21.9		(7.5)		(9.9)		6.0		5.0		10.6		26.1
Market appreciation (depreciation)	47.9		14.6		(7.0)		0.8		(0.3)		10.6		66.6
Net change	69.8		7.1		(16.9)		6.8		4.7		21.2		92.7
Balance, December 31, 2021	$	287.6	$	71.6	$	246.3	$	57.1	$	13.2	$	102.8	$	778.6

	Investment Services
	Equity Actively Managed		Equity Passively Managed (1)		Fixed Income Actively Managed—Taxable		Fixed Income Actively Managed—Tax Exempt		Fixed Income Passively Managed (1)		Alternatives /Multi-Asset Solutions (2)		Total
	(in billions)
Balance, December 31, 2019	$	177.2	$	60.1	$	258.3	$	47.1	$	9.3	$	70.9	$	622.9
Long-term flows:
Sales/new accounts	51.4		1.7		54.3		10.3		—		6.4		124.1
Redemptions/terminations	(36.7)		(1.9)		(58.3)		(9.5)		(0.3)		(2.6)		(109.3)
Cash flow/unreinvested dividends	(7.3)		(4.4)		(5.8)		0.2		(1.3)		1.2		(17.4)
Net long-term inflows (outflows) (3)	7.4		(4.6)		(9.8)		1.0		(1.6)		5.0		(2.6)
Acquisitions	—		—		—		—		—		0.2		0.2
Market appreciation	33.2		9.0		14.7		2.2		0.8		5.5		65.4
Net change	40.6		4.4		4.9		3.2		(0.8)		10.7		63.0
Balance, December 31, 2020	$	217.8	$	64.5	$	263.2	$	50.3	$	8.5	$	81.6	$	685.9

______________

(1)Includes index and enhanced index services.

(2)Includes certain multi-asset solutions and services not included in equity or fixed income services. Prior to December 31, 2020, this investment service line was disclosed as "Other." In order to reflect the increasing significance of our Alternatives and Multi-Asset Solutions services, we updated the investment service line to "Alternatives and Multi-Asset Solutions."

(3)Fixed income – taxable investment service net flows include $1.3 billion and $11.8 billion of AXA redemptions of certain low-fee fixed income mandates for 2021 and 2020, respectively.

Net long-term inflows (outflows) for actively managed investment services as compared to passively managed investment services for the years ended December 31, 2021, 2020 and 2019, respectively, are as follows:

	Year Ended December 31,
	2021		2020		2019
	(in billions)
Actively Managed
Equity	$	21.9	$	7.4	$	4.0
Fixed Income	(3.9)		(8.8)		21.7
Alternatives/Multi-Asset Solutions	8.3		4.5		4.0
	26.3		3.1		29.7

28

	Year Ended December 31,
	2021		2020		2019
	(in billions)
Passively Managed
Equity	$	(7.5)	$	(4.6)	$	(4.1)
Fixed Income	5.0		(1.6)		(0.9)
Alternatives/Multi-Asset Solutions	2.3		0.5		0.5
	(0.2)		(5.7)		(4.5)
Total net long-term inflows (outflows)	$	26.1	$	(2.6)	$	25.2

Average AUM by distribution channel and investment service were as follows:

	Year Ended December 31,
	2021		2020		2019
	(in billions)
Distribution Channel:
Institutions	$	325.7	$	285.9	$	265.4
Retail	291.0		236.5		212.3
Private Wealth Management	114.1		97.1		96.5
Total	$	730.8	$	619.5	$	574.2
Investment Service:
Equity Actively Managed	$	252.2	$	179.8	$	158.4
Equity Passively Managed (1)	68.7		57.1		56.4
Fixed Income Actively Managed – Taxable	253.1		254.4		239.7
Fixed Income Actively Managed – Tax-exempt	53.8		47.9		44.6
Fixed Income Passively Managed (1)	9.6		9.4		9.4
Alternatives/Multi-Asset Solutions (2)	93.4		70.9		65.7
Total	$	730.8	$	619.5	$	574.2

___________

(1)Includes index and enhanced index services.

(2)Includes certain multi-asset solutions and services not included in equity or fixed income services. Prior to December 31, 2020, this investment service line was disclosed as "Other." In order to reflect the increasing significance of our Alternatives and Multi-Asset Solutions services, we updated the investment service line to "Alternatives and Multi-Asset Solutions."

Fees

Generally, AB is compensated for its investment services on the basis of investment advisory and services fees calculated as a percentage of AUM. Bernstein Research Services revenue consists principally of commissions received for providing equity research and brokerage-related services to institutional investors. The components of net revenues are as follows and are prior to intercompany eliminations:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Investment advisory and services fees:
Institutions:
Base fees	$	540	$	458	$	451
Performance-based fees	46		53		28
	586		511		479
Retail:
Base fees	1,442		1,187		1,076
Performance-based fees	51		24		23
	1,493		1,211		1,099

29

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Private Wealth Management:
Base fees	967		818		845
Performance-based fees	149		55		49
	1,116		873		894
Total:
Base fees	2,949		2,463		2,372
Performance-based fees	246		132		100
	3,195		2,595		2,472
Bernstein Research Services	452		460		408
Distribution revenues	652		530		455
Dividend and interest income	39		51		104
Investment (losses) gains	(1)		(16)		39
Other revenues	108		105		98
Total revenues	4,445		3,725		3,576
Less: Interest expense	4		16		57
Net revenues	$	4,441	$	3,709	$	3,519

30

Protection Solutions

Our Protection Solutions segment includes our life insurance and employee benefits businesses. We have a long history of providing life insurance products to help affluent and high net worth individuals and small and medium-sized business owners protect and transfer their wealth. We are currently focused on the relatively less capital-intensive asset accumulation segments of the market, with leading offerings in the VUL market.

We offer a targeted range of life insurance products aimed at serving the financial needs of our clients throughout their lives. Our product offerings include VUL, IUL and term life products, which represented 80%, 12% and 8% of our total life insurance annualized premium, respectively, for the year ended December 31, 2021. Our products are distributed through Equitable Advisors and select third-party firms. We benefit from a long-term, stable distribution relationship with Equitable Advisors, with Equitable Advisors representing approximately 77% of our total life insurance sales for the year ended December 31, 2021.

In 2015, we entered the employee benefits market focusing on small and medium-sized businesses, a target market for our life insurance and Group Retirement 401(k) businesses. Our core products consist of Group Life Insurance (including Accidental Death & Dismemberment), Supplemental Life, Dental, Vision, Short-Term Disability and Long-Term Disability. In 2020, we launched our voluntary products including Critical Illness and Accident. Our Employee Benefits’ solutions are distributed through the traditional broker channel, strategic partnerships (medical partners, professional employer associations (PEOs), and associations), General Agencies, TPAs and Retail Equitable Advisors. We believe our EB360 technology platform is a differentiator and will further augment our solutions for small and medium-sized businesses.

Our Protection Solutions segment provides strong cash flows generated by our in-force book and capital diversification benefits. The primary sources of revenue are premiums, investment income, asset-based fees (investment management and 12b-1 fees), and policy charges (expense loads, surrender charges and mortality charges), as well as fees collected from Equitable Advisors non-proprietary sales through Equitable Network.

Life Insurance

We have been serving the financial needs of our clients and their families since 1859. We have an established reputation in product innovation by pioneering the VUL market in 1976 and continuing today with our range of innovative product offerings.

Products

Our life insurance products are primarily designed to help individuals and small and medium-sized businesses with protection, wealth accumulation and transfer of wealth at death, as well as corporate planning solutions including non-qualified deferred compensation, succession planning and key person insurance . We target select segments of the life insurance market: permanent life insurance, including IUL and VUL products and term insurance. In recent years, we have refocused our product offering and distribution towards less capital intensive, higher return accumulation and protection products. For example, in January 2021, we discontinued offering our most interest rate sensitive IUL product (“IUL Protect”). We plan to grow our operating earnings over time through earnings generated from sales of our repositioned product portfolio and by proactively managing and optimizing our in-force book.

Permanent Life Insurance. Our permanent life insurance offerings are built on the premise that all clients expect to receive a benefit from the policy. The benefit may take the form of a life insurance death benefit paid at time of death or access while living to cash that has accumulated in the policy on a tax-favored basis. In each case, the value to the client comes from access to a broad spectrum of equity or fixed interest investments that accumulate the policy value at rates of return consistent with the market.

We have three permanent life insurance offerings built upon a UL insurance framework: IUL, VUL and COLI targeting the small and medium-sized business market. UL policies offer flexible premiums, and generally offer the policyholder the ability to choose one of two death benefit options: a level benefit equal to the policy’s original face amount or a variable benefit equal to the original face amount plus any existing policy AV. Our insurance products include single-life and second-to-die (i.e., survivorship) products.

IUL. IUL uses an equity-linked approach for generating policy investment returns. The equity linked options provide upside return based on an external equity-based index (e.g., S&P 500) subject to a cap. In exchange for this cap on investment returns, the policy provides downside protection in that annual investment returns are floored at zero, protecting the policyholder in the event of a market movement down. As noted above, the performance of any UL insurance policy also depends on the level of policy charges. For further discussion, see “—Pricing and Fees.”

31

VUL. VUL uses a series of investment options to generate the investment return allocated to the cash value. The sub-accounts are similar to retail mutual funds: a policyholder can invest policy values in one or more underlying investment options offering varying levels of risk and growth potential. These provide long-term growth opportunities, tax-deferred earnings and the ability to make tax-free transfers among the various sub-accounts. In addition, the policyholder can invest premiums in a guaranteed interest option, as well as an investment option we call the MSO, which provides downside protection from losses in the index up to a specified percentage. Our COLI product is a VUL insurance product tailored specifically to support executive benefits in the small business market.

We work with employees of EIMG to identify and include appropriate underlying investment options in our variable life products, as well as to control the costs of these options.

Term Life. Term life provides basic life insurance protection for a specified period of time and is typically a client’s first life insurance purchase due to its simple design providing basic income protection. Life insurance benefits are paid if death occurs during the term period, as long as required premiums have been paid. The required premiums are guaranteed not to increase during the term period, otherwise known as a level pay or fixed premium. Our term products include conversion features that allow the policyholder to convert their term life insurance policy to permanent life insurance within policy limits.

Other Benefits. We offer a portfolio of riders to provide clients with additional flexibility to protect the value of their investments and overcome challenges. Our Long-Term Care Services Rider provides an acceleration of the policy death benefit in the event of a chronic illness and has been elected on 28% of all eligible policies and elected on 21% of all new policies sold during the year ended December 31, 2021. The MSO, referred to above and offered via a policy rider on our variable life products, provides policyholders with the opportunity to manage volatility.

The following table presents individual life insurance annualized premiums for the periods indicated:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Annualized Premium
Indexed Universal Life	$	25	$	60	$	77
Variable Universal Life	169		91		107
Term	16		18		20
Other (1)	—		—		2
Total	$	210	$	169	$	206

______________

(1)For the individual life insurance in-force, other includes current assumption universal life insurance, whole life insurance and other products available for sale but not actively marketed.

The following table presents individual life insurance FYP and renewals by product and total gross premiums for the periods indicated:

32

	Year Ended December 31,
	2021		2020		2019
	(in millions)
FYP by Product Line
Universal Life	$	—	$	—	$	2
Indexed Universal Life	45		144		203
Variable Universal Life	287		144		181
Term	16		18		20
Other (1)	1		1		1
Total	$	349	$	307	$	407
Renewals by Product Line
Universal Life	$	824	$	845	$	895
Indexed Universal Life	310		276		248
Variable Universal Life	968		947		921
Term	379		375		498
Other (1)	19		19		22
Total	$	2,500	$	2,462	$	2,584
Total Gross Premiums	$	2,849	$	2,769	$	2,991

______________

(1)For the individual life insurance in-force, other includes current assumption universal life insurance, whole life insurance and other products available for sale but not actively marketed.

Our in-force book spans three insurance companies, Equitable Financial, Equitable America and Equitable L&A. Equitable L&A is closed for new business. Certain term products and permanent products riders from Equitable America and Equitable Financial have been reinsured to our captive reinsurer EQ AZ Life Re. Our in-force portfolio is made up of core product offerings as described above, as well as past generation product offerings that include current assumption universal life insurance, whole life insurance and other products.

The following table presents our in-force face amount and Protection Solutions Reserves as of the dates indicated, respectively, for the individual life insurance products we offer:

	December 31,
	2021		2020		2019
	(in billions)
In-force face amount by product: (1)
Universal Life (2)	$	45.9	$	48.7	$	53.3
Indexed Universal Life	27.9		27.7		25.8
Variable Universal Life (3)	132.8		127.7		127.5
Term (4)	215.4		215.2		234.9
Whole Life	1.2		1.3		1.4
Total in-force face amount	$	423.2	$	420.6	$	442.9

	December 31,
	2021		2020		2019
	(in millions)
Protection Solutions Reserves (5)
General Account	$	18,625	$	18,905	$	17,300
Separate Accounts	17,012		14,771		13,616
Total Protection Solutions Reserves	$	35,637	$	33,676	$	30,916

______________

33

(1)Does not include life insurance sold as part of our employee benefits business as it is a start-up business with a limited amount of in-force policies.

(2)UL includes guaranteed universal life insurance products.

(3)VUL includes variable life insurance and COLI.

(4)Decrease from 2019 to 2020 was driven by the sale of USFL.

(5)Does not include Protection Solutions Reserves for our employee benefits business as it is a start-up business and therefore has immaterial in-force policies.

In order to optimize our capital efficiency and improve the profitability of new business, in 2009, we made a strategic decision to exit the GUL insurance and 30-year term life insurance markets. In recent years, we have refocused our product offering and distribution towards less capital intensive, higher return accumulation and protection products. For example, in January 2021, we discontinued offering our most interest sensitive IUL product (IUL Protect). The following chart shows this shift in our product sales (annualized premiums) from 2008 to 2021:

Shift in Product Sales (Annualized Premiums)

(1) UL includes GUL insurance products.

As part of our in-force management function, we monitor the performance of our life insurance portfolio against our expectations at the time of pricing of the products. It is our objective to align the performance of our portfolio to pricing expectations and take in-force actions where appropriate, in accordance with our contracts, applicable law and our governance processes.

Markets

We focus on certain segments of the life insurance market, particularly affluent and high net worth individuals, as well as small and medium-sized businesses. We focus on creating value for our customers through the differentiated features and benefits we offer on our products. We distribute these products through retail advisors and third-party firms who demonstrate the value of life insurance in helping clients to accumulate wealth and protect their assets.

Distribution

We primarily distribute life insurance through two channels: Equitable Advisors and third-party firms. We are shifting our third-party distribution focus in 2021 to bypass intermediaries by working directly with broker dealers and registered investment advisors that assist clients. This shift will allow us to build stronger distribution by aligning directly with experienced life producers and by providing digital, transactional capabilities to non-life experts, such as investment advisors. As part of this restructuring, we have aligned our Retail and Third-Party wholesalers into one Omni Channel.

The following table presents individual life insurance annualized premium by distribution channel for the periods indicated:

34

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Annualized Premium by Distribution
Equitable Advisors	$	162	$	126	$	157
Third-Party Firms	48		42		49
Total	$	210	$	168	$	206

Competition

The life insurance industry consists of many companies with no single company dominating the market for all products. We selectively compete with large, well-established life insurance companies in a mature market, where product features, price and service are key drivers. We primarily compete with others based on these drivers as well as distribution channel relationships, brand recognition, financial strength ratings of our insurance subsidiaries and financial stability. We are selective in our markets of interest and will continue to focus deeply in those areas that align to our offering.

Underwriting

Our underwriting process, built around extensive underwriting guidelines, is designed to assign prospective insureds to risk classes in a manner that is consistent with our business and financial objectives, including our risk appetite and pricing expectations.

As part of making an underwriting decision, our underwriters evaluate information disclosed as part of the application process as well as information obtained from other sources after the application. This information includes, but is not limited to, the insured’s age and sex, results from medical exams and financial information.

We continue to research and develop guideline changes to increase the efficiency of our underwriting process (e.g., through the use of predictive models), both from an internal cost perspective and our customer experience perspective. For example due to effects of the COVID-19 pandemic, we modified our underwriting policies to offer a fluid-less, touchless process to help more clients access the protection they need.

We manage changes to our underwriting guidelines though a robust governance process that ensures that our underwriting decisions continue to align with our business and financial objectives, including risk appetite and pricing expectations.

Our team of underwriters and medical directors is dedicated to making accurate, timely and competitive underwriting decisions. Our line underwriters are empowered to make decisions and receive support of underwriting managers and medical directors when needed.

Our financial due diligence team combines legal, financial and investigative expertise to support the financial underwriting of complex cases, assist in case design and plays an important role in fraud prevention. We continuously monitor our underwriting decisions through internal audits and other quality control processes, to ensure accurate and consistent application of our underwriting guidelines.

We use reinsurance to manage our mortality risk and volatility. Our reinsurer partners regularly review our underwriting practices and mortality and lapse experience through audits and experience studies, the outcome of which have consistently validated the high-quality underwriting process and decisions.

Pricing and Fees

Life insurance products are priced based upon assumptions including, but not limited to, expected future premium payments, surrender rates, mortality and morbidity rates, investment returns, hedging costs, equity returns, expenses and inflation and capital requirements. The primary source of revenue from our life insurance business is premiums, investment income, asset-based fees (including investment management and 12b-1 fees) and policy charges (expense loads, surrender charges, mortality charges and other policy charges).

35

Risk Management

Reinsurance

We use reinsurance to mitigate a portion of our risk and optimize the capital efficiency and operating returns of our life insurance portfolio. As part of our risk management function, we continuously monitor the financial condition of our reinsurers in an effort to minimize our exposure to significant losses from reinsurer insolvencies. In addition, effective April 1, 2020, we reinsured a material portion of our inforce term block. In most cases, amounts in excess of $2 million are reinsured.

Non-affiliate Reinsurance. We generally obtain reinsurance for the portion of a life insurance policy that exceeds $10 million. We have set up reinsurance pools with highly rated unaffiliated reinsurers that obligate the pool participants to pay death claim amounts in excess of our retention limits for an agreed-upon premium.

Captive Reinsurance. EQ AZ Life Re Company reinsures a 90% quota share of level premium term insurance issued by Equitable Financial on or after March 1, 2003 through December 31, 2008 and 90% of the risk of the lapse protection riders under UL insurance policies issued by Equitable Financial on or after June 1, 2003 through June 30, 2007 and those issued by Equitable America on or after June 1, 2003 through June 30, 2007 on a 90% quota share basis as well as excess claims relating to certain variable annuities with GMIB riders issued by Equitable Financial. We use captive reinsurance as part of our capital management strategy. For additional information regarding our use of captives, see “—Regulation—Insurance Regulation—Captive Reinsurance Regulation and Variable Annuity Capital Standards”, “Risk Factors—Risks Relating to Our Retirement and Protection Businesses—Risks Relating to Reinsurance and Hedging—Our reinsurance arrangement with an affiliated captive” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Captive Reinsurance Company.”

Hedging

We hedge the exposure contained in our IUL products and the MSO rider we offer on our VUL products. These products and riders allow the policyholder to participate in the performance of an index price movement up to certain caps and/or protect the policyholder in a movement down for a set period of time. In order to support our obligations under these investment options, we enter into derivatives contracts whose payouts, in combination with returns from the underlying fixed income investments, seek to replicate those of the index price, subject to prescribed caps and buffers.

Employee Benefits

Our employee benefits business focuses on serving small and medium-sized businesses, a priority segment for us, offering these businesses a differentiated technology platform and competitive suite of group insurance products. Leveraging our innovative technology platform, we have formed strategic partnerships with large insurance and health carriers as their primary group benefits provider. As a new entrant in the employee benefits market we were able to build a platform from the ground up, without reliance on legacy systems. This puts us in a position to embrace industry shifts quickly and provides us with an advantage over many competitors.

Products

Our products are designed to provide valuable protection for employees as well as help employers attract employees and control costs. We currently offer a suite of Group Life Insurance (including Accidental Death & Dismemberment), Supplemental Life, Dental, Vision, Short-Term Disability, Long-Term Disability, Critical Illness and Accident insurance products.

The following table presents employee benefits gross premiums and annualized premium for the periods indicated:

36

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Employee Benefits Gross Premiums
Group life insurance sales	$	82	$	64	$	53
Short-term disability	44		25		17
Long-term disability	43		30		21
Dental	40		28		15
Vision	6		4		—
Other (1)	1		—		—
Total	$	216	$	151	$	106
Annualized premium	$	76	$	52	$	52

_______________

(1) Other includes Critical Illness and Accident insurance products.

Markets

Our employee benefit product suite is focused on small and medium-sized businesses seeking simple, technology-driven employee benefits management. We built the employee benefits business based on feedback from brokers and employers, ensuring the business’ relevance to the market we address. We are committed to continuously evolving our product suite and technology platform to meet market needs.

Distribution

Our Employee Benefits’ solutions are distributed through the traditional broker channel, strategic partnerships (medical partners, PEOs, and associations), General Agencies, TPAs and Equitable Advisors.

Competition

The employee benefits space is a competitive environment. The main factors of competition include price, quality of customer service and claims management, technological capabilities, quality of distribution and financial strength ratings. In this market, we compete with several companies offering similar products. In addition, there is competition in attracting brokers to actively market our products. Key competitive factors in attracting brokers include product offerings and features, financial strength, support services and compensation.

Underwriting

We manage the underwriting process to facilitate quality sales and serve the needs of our customers, while supporting our financial strength and business objectives. The application of our underwriting guidelines is continuously monitored through internal underwriting controls and audits to achieve high standards of underwriting and consistency.

Pricing and Fees

Employee benefits pricing reflects the claims experience and the risk characteristics of each group. We set appropriate plans for the group based on demographic information and, for larger groups, also evaluate the experience of the group. The claims experience is reviewed at the time of policy issuance and during the renewal timeframes, resulting in periodic pricing adjustments at the group level.

Reinsurance

We reinsure our group life, disability, critical illness, and accident products. These treaties include both quota share reinsurance and excess of loss. Specifics of each treaty vary by product and support our risk management objectives.

Corporate and Other

Corporate and Other includes certain of our financing and investment expenses. It also includes: the Equitable Advisors broker-dealer business, Closed Block, run-off group pension business, run-off health business, benefit plans for our employees and certain unallocated items, including capital and related investments, interest expense and corporate expense. AB’s results of

37

operations are reflected in the Investment Management and Research segment. Accordingly, Corporate and Other does not include any items applicable to AB.

Equitable Advisors Broker-Dealer Business

Equitable Advisors provides financial planning and advice, insurance and savings solutions, as well as full-service brokerage services through our financial advisors who have access to a broad selection of both affiliated and non-affiliated products to help clients meet their financial needs. While the revenue from retirement and protection products sold through Equitable Advisors is recognized within the Individual Retirement, Group Retirement and Protection Solutions segments, Corporate and Other includes revenue from the AUA of the Equitable Advisors broker-dealer business. As of December 31, 2021, the Equitable Advisors broker-dealer business included $83 billion in AUA.

Closed Block

In connection with the demutualization of Equitable Financial in 1992, the Closed Block was established for the benefit of certain classes of individual participating policies for which Equitable Financial had a dividend scale payable in 1991 and which were in force on that date. Assets were allocated to the Closed Block in an amount which, together with anticipated revenues from policies included in the Closed Block, was reasonably expected to be sufficient to support such business, including provisions for the payment of claims, certain expenses and taxes, and for the continuation of dividend scales payable in 1991, assuming the experience underlying such scales continues.

Assets allocated to the Closed Block inure solely to the benefit of the holders of policies included in the Closed Block and will not revert to the benefit of the Company. The plan of demutualization prohibits the reallocation, transfer, borrowing or lending of assets between the Closed Block and other portions of the General Account, any of our Separate Accounts or to any affiliate of ours without the approval of the NYDFS. Closed Block assets and liabilities are carried on the same basis as similar assets and liabilities held in the General Account. The excess of Closed Block liabilities over Closed Block assets represents the expected future post-tax contribution from the Closed Block which would be recognized in income over the period the policies and contracts in the Closed Block remain in force.

For additional information on the Closed Block, see Note 6 of the Notes to these Consolidated Financial Statements.

Equitable Investment Management

EIMG is the investment manager and formerly the administrator for our proprietary variable funds. On June 22, 2021, Equitable Holdings completed the formation of Equitable Investment Management, LLC, (“EIM”, and collectively with EIMG, “Equitable Investment Management”), a wholly owned indirect subsidiary of Holdings. Effective August 1, 2021, the Board of Trustees of EQAT, EQ Premier VIP and 1290 Funds (each, a “Trust” and collectively, the “Trusts”) terminated EIMG as administrator of the Trusts, and EIM entered into certain administrative agreements with each Trust. In addition, on October 1, 2021, Equitable Financial entered into an investment advisory and management agreement by which EIM became the investment manager for the Equitable Financial’s general account portfolio.

Equitable Investment Management supports each of our retirement and protection businesses. Accordingly, Equitable Investment Management results are embedded in the Individual Retirement, Group Retirement and Protection Solutions segments. EIMG helps add value and marketing appeal to our retirement and protection solutions products by bringing investment management expertise and specialized strategies to the underlying investment lineup of each product. In addition, by advising on an attractive array of proprietary investment portfolios (each, a “Portfolio,” and together, the “Portfolios”), EIMG brings investment acumen, financial controls and economies of scale to the construction of underlying investment options for our products.

EIMG provides investment management to proprietary investment vehicles sponsored by the Company, including investment companies that are underlying investment options for our variable insurance and annuity products. EIMG is registered as an investment adviser under the Investment Advisers Act. EIMG serves as the investment adviser to each Trust —and to two private investment trusts established in the Cayman Islands. Each Trust and private investment trusts is a “series” type of trust with multiple Portfolios. EIMG provides discretionary investment management services to the Portfolios, including, among other things, (1) portfolio management services for the Portfolios; (2) selecting, monitoring and overseeing investment sub-advisers; and (3) developing and executing asset allocation strategies for multi-advised Portfolios and Portfolios structured as funds-of-funds. EIMG is further charged with ensuring that the other parts of the Company that interact with the Trusts, such as product management, the distribution system and the financial organization, have a specific point of contact.

38

EIMG has a variety of responsibilities for the management of its investment company clients. One of EIMG’s primary responsibilities is to provide clients with portfolio management and investment advisory services, principally by reviewing whether to appoint, dismiss or replace sub-advisers to each Portfolio, and thereafter monitoring and reviewing each sub-adviser’s performance through qualitative and quantitative analysis, as well as periodic in-person, telephonic and written consultations with the sub-advisers. Currently, EIMG has entered into sub-advisory agreements with more than 45 different sub-advisers, including AB. Another primary responsibility of EIMG is to develop and monitor the investment program of each Portfolio, including Portfolio investment objectives, policies and asset allocations for the Portfolios, select investments for Portfolios (or portions thereof) for which it provides direct investment selection services, and ensure that investments and asset allocations are consistent with the guidelines that have been approved by clients.

EIM provides administrative services to the Portfolios effective August 1, 2021. The administrative services that EIM provides to the Portfolios include, among others, coordination of each Portfolio’s audit, financial statements and tax returns; expense management and budgeting; legal administrative services and compliance monitoring; portfolio accounting services, including daily net asset value accounting; risk management; oversight of proxy voting procedures and an anti-money laundering program.

EIM also provides investment management services to the Equitable Financial’s General Account portfolio. EIM provides non-discretionary investment advisory and asset management services including, but not limited to, providing investment advice on strategic investment management activities, asset strategies through affiliated and unaffiliated asset managers, strategic oversight of the General Account portfolio, portfolio management, yield/duration optimization, asset liability management, asset allocation, liquidity and close alignment to business strategies, as well as advising on other services in accordance with the investment advisory and management agreement. Subject to oversight and supervision by EIM, EIM may delegate any of its duties with respect to some or all of the assets of the General Account to a sub-adviser.

Regulation

Insurance Regulation

Our insurance subsidiaries are licensed to transact insurance business and are subject to extensive regulation and supervision by insurance regulators, in all 50 states of the United States, the District of Columbia, Puerto Rico, the U.S. Virgin Islands and nine of Canada’s thirteen provinces and territories. The primary regulator of an insurance company, however, is located in its state of domicile. Equitable Financial is domiciled in New York and is primarily regulated by the superintendent of the NYDFS. Equitable America and EQ AZ Life Re are domiciled in Arizona and are primarily regulated by the Director of Insurance of the Arizona Department of Insurance and Financial Institutions. Equitable L&A is domiciled in Colorado and is primarily regulated by the Commissioner of Insurance of the Colorado Division of Insurance. The extent of regulation by jurisdiction varies, but most jurisdictions have laws and regulations governing the financial aspects and business conduct of insurers. State laws in the United States grant insurance regulatory authorities broad administrative powers with respect to, among other things, licensing companies to transact business, sales practices, establishing statutory capital and reserve requirements and solvency standards, reinsurance and hedging, protecting privacy, regulating advertising, restricting the payment of dividends and other transactions between affiliates, permitted types and concentrations of investments and business conduct to be maintained by insurance companies as well as agent and insurance producer licensing, and, to the extent applicable to the particular type of insurance, approval or filing of policy forms and rates. Insurance regulators have the discretionary authority to limit or prohibit new issuances of business to policyholders within their jurisdictions when, in their judgment, such regulators determine that the issuing company is not maintaining adequate statutory surplus or capital. Additionally, the New York Insurance Law limits sales commissions and certain other marketing expenses that Equitable Financial may incur.

Supervisory agencies in each of the jurisdictions in which we do business may conduct regular or targeted examinations of our operations and accounts and make requests for particular information from us. For example, periodic financial examinations of the books, records, accounts and business practices of insurers domiciled in their states are generally conducted by such supervisory agencies every three to five years. From time to time, regulators raise issues during examinations or audits of us that could, if determined adversely, have a material adverse effect on us. In addition, the interpretations of regulations by regulators may change and statutes may be enacted with retroactive impact, particularly in areas such as accounting or statutory reserve requirements. In addition to oversight by state insurance regulators in recent years, the insurance industry has seen an increase in inquiries from state attorneys general and other state officials regarding compliance with certain state insurance, securities and other applicable laws. We have received and responded to such inquiries from time to time. For additional information on legal and regulatory risks, see “Risk Factors—Legal and Regulatory Risks.”

39

Each of our insurance subsidiaries is required to file detailed annual and, with the exception of EQ AZ Life Re, quarterly financial statements, prepared on a statutory accounting basis or in accordance with other accounting practices prescribed or permitted by the applicable regulator, with supervisory agencies in each of the jurisdictions in which such subsidiary does business. The NAIC has approved a series of uniform SAP that has been adopted by all state insurance regulators, in some cases with certain modifications. As a basis of accounting, SAP was developed to monitor and regulate the solvency of insurance companies. In developing SAP, insurance regulators were primarily concerned with ensuring an insurer’s ability to pay all its current and future obligations to policyholders. As a result, statutory accounting focuses on conservatively valuing the assets and liabilities of insurers, generally in accordance with standards specified by the insurer’s domiciliary state. The values for assets, liabilities and equity reflected in financial statements prepared in accordance with U.S. GAAP are usually different from those reflected in financial statements prepared under SAP. See Note 18 of the Notes to these Consolidated Financial Statements.

Holding Company and Shareholder Dividend Regulation

All states regulate transactions between an insurer and its affiliates under insurance holding company acts. The insurance holding company laws and regulations vary from jurisdiction to jurisdiction, but generally require that all transactions affecting insurers within a holding company system be fair and reasonable and, in many cases, require prior notice and approval or non-disapproval by the state’s insurance regulator.

The insurance holding company laws and regulations generally also require a controlled insurance company (i.e., an insurer that is a subsidiary of an insurance holding company) to register and file with state insurance regulatory authorities certain reports, including information concerning its capital structure, ownership, financial condition, certain intercompany transactions and general business operations. States generally require the ultimate controlling person of a U.S. insurer to file an annual enterprise risk report with the lead state of the insurance holding company system identifying risks likely to have a material adverse effect upon the financial condition or liquidity of the insurer or its insurance holding company system as a whole.

State insurance statutes also typically place restrictions and limitations on the amount of dividends or other distributions payable by insurance company subsidiaries to their parent companies, as well as on transactions between an insurer and its affiliates. Under the New York insurance laws, which are applicable to Equitable Financial, a domestic stock life insurer may not, without prior approval of the NYDFS, pay an ordinary dividend to its stockholders exceeding an amount calculated based on a statutory formula (“Ordinary Dividend”). Dividends in excess of this amount require the insurer to file a notice of its intent to declare the dividends with the NYDFS and obtain prior approval or non-disapproval from the NYDFS with respect to such dividends (“Extraordinary Dividend”). Due to a permitted statutory accounting practice agreed to with the NYDFS, Equitable Financial will need the prior approval of the NYDFS to pay the portion, if any, of any Ordinary Dividend that exceeds the Ordinary Dividend that Equitable Financial would be permitted to pay under New York insurance law absent the application of such permitted practice (such excess, the “Permitted Practice Ordinary Dividend”).

Other states have limitations on dividends similar to New York’s, providing that dividends in excess of prescribed limits, based on prior year’s earnings and surplus of the insurance company, established by applicable state regulation, are considered to be extraordinary dividends and require explicit approval from the applicable state regulator. In addition, the insurance laws of some states require that any dividend to a domestic insurance company’s stockholders be paid from the insurer’s earned surplus or that prior approval or non-disapproval be obtained from the state’s domiciliary insurance regulator for any dividend that would be paid from other than the insurer’s earned surplus. As a holding company, we depend on dividends from our subsidiaries to meet our obligations. For additional information on shareholder dividends, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.”

State insurance holding company laws and regulations also regulate changes in control. State laws generally provide that no person, corporation or other entity may acquire control of a domestic insurance company, or any parent company of such insurance company, without the prior approval of the insurance company’s domiciliary state insurance regulator. Generally, any person acquiring, directly or indirectly, 10% or more of the voting securities of an insurance company is presumed to have acquired “control” of the company. This statutory presumption may be rebutted by a showing that control does not exist in fact. State insurance regulators, however, may find that “control” exists in circumstances in which a person owns or controls, directly or indirectly, less than 10% of the voting securities.

The laws and regulations regarding acquisition of control transactions may discourage potential acquisition proposals and may delay or prevent a change of control involving us, including through unsolicited transactions that some of our shareholders might consider desirable.

40

NAIC

The mandate of the NAIC is to benefit state insurance regulatory authorities and consumers by promulgating model insurance laws and regulations for adoption by the states. The NAIC has established statutory accounting principles set forth in its Manual. However, a state may have adopted or in the future may adopt statutory accounting principles that differ from the Manual. Changes to the Manual or states’ adoption of prescribed differences to the Manual may impact the statutory capital and surplus of our U.S. insurance companies.

The NAIC’s Risk Management and Own Risk and Solvency Assessment Model Act (“ORSA”), which has been enacted by our insurance subsidiaries’ domiciliary states requires insurers to maintain a risk management framework and conduct an internal risk and solvency assessment of the insurer’s material risks in normal and stressed environments. The assessment is documented in a confidential annual ORSA summary report, a copy of which must be made available to regulators as required or upon request.

The NAIC adopted the Corporate Governance Annual Disclosure Model Act, which has been adopted by our insurance subsidiaries’ domiciliary states, requires insurers to annually file detailed information regarding their corporate governance policies.

The NAIC amended the Standard Valuation Law to require a principle-based approach to reserving for life and annuity contracts, which resulted in corresponding amendments to the NAIC’s Valuation Manual (the “Valuation Manual”). Principle-based reserving is designed to better address reserving for life insurance and annuity products. It became effective on January 1, 2017 in the states where the amended Standard Valuation Law and Valuation Manual had been adopted, which was followed by a three-year phase-in period that ended on January 1, 2020. Principle-based reserving has been adopted by our insurance subsidiaries’ domiciliary states, although in New York, principle-based reserving became effective with the adoption of Regulation 213, which differs from the NAIC Standard Valuation Law, as discussed further below.

The NAIC has been focused on a macro-prudential initiative since 2017, that is intended to enhance risk identification efforts by building on the state-based regulation system through proposed potential enhancements in supervisory practices related to liquidity, recovery and resolution, capital stress testing and counterparty exposure concentrations for life insurers. In December 2020, the NAIC adopted amendments to the Model Holding Company Act and Regulation that implement requirements related to a liquidity stress-testing framework for certain large U.S. life insurers and insurance groups (based on amounts of certain types of business written or material exposure to certain investment transactions, such as derivatives and securities lending) that will be used as a regulatory tool. These amendments have to be adopted by state legislatures to become effective, including our insurance subsidiaries’ domiciliary states. We cannot predict whether state legislatures will adopt the amendments or what impact they would have on the Company.

The NAIC has also developed a group capital calculation tool using an RBC aggregation methodology for all entities within the insurance holding company system, including non-U.S. entities. The group capital calculation will provide U.S. solvency regulators with an additional analytical tool for conducting group-wide supervision. The NAIC’s amendments to the Model Holding Company Act and Regulation in 2020 also implement the Group Capital Calculation Template and Instructions as well as the annual filing requirement for the group capital calculation. These amendments have to be adopted by state legislatures to become effective, as discussed above.

Captive Reinsurance Regulation and Variable Annuity Capital Standards

We use an affiliated captive reinsurer as part of our capital management strategy. During the last few years, the NAIC and certain state regulators, including the NYDFS, have been scrutinizing insurance companies’ use of affiliated captive reinsurers or offshore entities.

The NAIC adopted a revised preamble to the NAIC accreditation standards (the “Standard”), effective as of January 1, 2016, that applies the Standard to captive insurers which assume level premium term life insurance (“XXX”) business and universal life with secondary guarantees (“AXXX”) business. The NAIC also approved a regulatory framework, the XXX/AXXX Reinsurance Framework, for XXX/AXXX transactions. The framework requires more disclosure of an insurer’s use of captives in its statutory financial statements and narrows the types of assets permitted to back statutory reserves that are required to support the insurer’s future obligations. The XXX/AXXX Reinsurance Framework was implemented through an actuarial guideline (“AG 48”), which requires the actuary of the ceding insurer that opines on the insurer’s reserves to issue a qualified opinion if the framework is not followed. AG 48 applies prospectively, so that XXX/AXXX captives are not subject to AG 48 if reinsured policies were issued prior to January 1, 2015 and ceded so that they were part of a reinsurance arrangement as of December 31, 2014, as is the case for the XXX business and AXXX business reinsured by our Arizona

41

captive. The Standard is satisfied if the applicable reinsurance transaction satisfies the XXX/AXXX Reinsurance Framework requirements. The NAIC also adopted the Term and Universal Life Insurance Reserving Financing Model Regulation which contains the same substantive requirements as AG 48, as amended by the NAIC, and it establishes uniform, national standards governing reserve financing arrangements pertaining to the term life and universal life insurance policies with secondary guarantees. The model regulation has not yet been adopted by our insurance subsidiaries’ domiciliary states, although it will become an NAIC accreditation standard as of September 1, 2022.

The NAIC adopted a new framework for variable annuity captive reinsurance transactions that became operational in 2020, which includes reforms that improve the statutory reserve and RBC framework for insurance companies that sell variable annuity products. Among other changes, the framework includes new prescriptions for reflecting hedge effectiveness, investment returns, interest rates, mortality and policyholder behavior in calculating statutory reserves and RBC. Overall, we believe the NAIC reform has moved variable annuity capital standards towards an economic framework which is consistent with how we manage our business. The Company adopted the NAIC reserve and capital framework for the year ended December 31, 2019.

As noted above, New York’s Regulation 213, which was adopted in 2019 and subsequently amended by the NYDFS, differs from the NAIC’s variable annuity reserve and capital framework described above. Regulation 213 does not materially affect Holdings’ GAAP financial condition, results of operations or stockholders’ equity. However, absent management action, Regulation 213 will require Holdings’ principal insurance subsidiary, Equitable Financial, to carry statutory basis reserves for its variable annuity contract obligations equal to the greater of those required under (i) the NAIC standard or (ii) a revised version of the NYDFS requirement in effect prior to the adoption of the regulation’s first amendment for contracts issued prior to January 1, 2020, and for policies issued after that date a new standard that we believe is more conservative than the NAIC standard. Absent management action, Regulation 213 will (i) negatively impact Equitable Financial’s surplus level and RBC ratio and (ii) materially and adversely affect Equitable Financial’s dividend capacity from 2021 and moving forward. These impacts would be more adverse in periods of rising equity and/or interest rate markets and they were exacerbated upon closing of the Venerable Transaction. As a holding company, Holdings relies on dividends and other payments from its subsidiaries and, accordingly, any material limitation on Equitable Financial’s dividend capacity could materially affect Holdings’ ability to return capital to stockholders through dividends and stock repurchases. Equitable Financial was granted a permitted practice by the NYDFS which partially mitigates the Regulation 213 impact of the Venerable Transaction to make the regulation’s application to Equitable Financial more consistent with the NAIC reserve and capital framework. Equitable Financial also entered into a reinsurance agreement with Swiss Re Life & Health America Inc. (“Swiss Re”), effective October 1, 2021, and we completed certain internal restructurings that increase cash flows to Holdings from non-life insurance entities, which further mitigate the impacts from Regulation 213. The Company is considering additional management actions intended to reduce the impact of Regulation 213 which could include seeking further amendment of Regulation 213 or exemptive relief therefrom, changing our underwriting practices to emphasize issuing variable annuity products out of affiliates which are not domiciled in New York, increasing the use of reinsurance and pursuing other corporate transactions. There can be no assurance that any management action individually or collectively will fully mitigate the impact of Regulation 213. Other state insurance regulators may also propose and adopt standards that differ from the NAIC framework. See Note 18 of the Notes to these Consolidated Financial Statements for additional detail on the permitted practice granted by the NYDFS.

We cannot predict what revisions, if any, will be made to the model laws and regulations relating to the use of captives. Any regulatory action that limits our ability to achieve desired benefits from the use of or materially increases our cost of using captive reinsurance and applies retroactively, without grandfathering provisions for existing captive variable annuity reinsurance entities, could have a material adverse effect on our financial condition or results of operations. For additional information on our use of a captive reinsurance company, see “Risk Factors—Legal and Regulatory Risks.”

Surplus and Capital; Risk Based Capital

Insurers are required to maintain their capital and surplus at or above minimum levels. Regulators have discretionary authority, in connection with the continued licensing of insurance companies, to limit or prohibit an insurer’s sales to policyholders if, in their judgment, the regulators determine that such insurer has not maintained the minimum surplus or capital or that the further transaction of business will be hazardous to policyholders. We report our RBC based on a formula calculated by applying factors to various asset, premium and statutory reserve items, as well as taking into account the risk characteristics of the insurer. The major categories of risk involved are asset risk, insurance risk, interest rate risk, market risk and business risk. The formula is used as a regulatory tool to identify possible inadequately capitalized insurers for purposes of initiating regulatory action, and not as a means to rank insurers generally. State insurance laws provide insurance regulators the authority to require various actions by, or take various actions against, insurers whose RBC ratio does not meet or exceed certain RBC levels. The NAIC has approved RBC revisions for corporate bonds, real estate equity and longevity risk that took effect at year-end 2021 and are expected to have a modest net positive RBC impact on our insurance subsidiaries. As of the date of the most

42

recent annual statutory financial statements filed with insurance regulators, the RBC of each of our insurance subsidiaries was in excess of each of those RBC levels.

Guaranty Associations and Similar Arrangements

Each of the states in which we are admitted to transact business require life insurers doing business within the jurisdiction to participate in guaranty associations, which are organized to pay certain contractual insurance benefits owed pursuant to insurance policies issued by impaired, insolvent or failed insurers. The laws are designed to protect policyholders from losses under insurance policies issued by insurance companies that become impaired or insolvent. These associations levy assessments, up to prescribed limits, on all member insurers in a particular state on the basis of the proportionate share of the premiums written by member insurers in the lines of business in which the impaired, insolvent or failed insurer is engaged. Some states permit member insurers to recover assessments paid through full or partial premium tax offsets.

During each of the past five years, the assessments levied against us have not been material.

New York Insurance Regulation 210

In recent years, state regulators have considered whether to apply regulatory standards to the determination and/or readjustment of non-guaranteed elements (“NGEs”) within life insurance policies and annuity contracts that may be adjusted at the insurer’s discretion, such as the cost of insurance for universal life insurance policies and interest crediting rates for life insurance policies and annuity contracts. For example, in March 2018, Insurance Regulation 210 went into effect in New York. That regulation establishes standards for the determination and any readjustment of NGEs, including a prohibition on increasing profit margins on existing business or recouping past losses on such business, and requires advance notice of any adverse change in a NGE to both the NYDFS as well as to affected policyholders. We have developed policies and procedures designed to comply with Regulation 210 and to date, have not seen adverse effects on our business. It is possible, however, that Regulation 210 could adversely impact management’s ability to determine and/or readjust NGEs in the future. Beyond the New York regulation and similar rules enacted in California (that took effect on July 1, 2019) and Texas (that took effect on January 1, 2021), the likelihood of enactment of any such state-based regulation is uncertain at this time, but if implemented, these regulations could have adverse effects on our business and consolidated results of operations.

Broker-Dealer and Securities Regulation and Commodities Regulation

We and certain policies and contracts offered by us are subject to regulation under the Federal securities laws administered by the SEC, self-regulatory organizations and under certain state securities laws. These regulators may conduct examinations of our operations, and from time to time make requests for particular information from us.

Certain of our subsidiaries, including Equitable Advisors, Equitable Distributors, SCB LLC and AllianceBernstein Investments, Inc., are registered as broker-dealers (collectively, the “Broker-Dealers”) under the Exchange Act. The Broker-Dealers are subject to extensive regulation by the SEC and are members of, and subject to regulation by, FINRA, a self-regulatory organization subject to SEC oversight. The Broker-Dealers are subject to the capital requirements of the SEC and FINRA, which specify minimum levels of capital (“net capital”) that the Broker-Dealers are required to maintain and also limit the amount of leverage that the Broker-Dealers are able to employ in their businesses. The SEC and FINRA also regulate the sales practices of the Broker-Dealers. In June 2020, Regulation Best Interest (“Regulation BI”) went into effect with respect to recommendation of securities and accounts to “retail customers,” defined generally as natural persons and their investment vehicles. Regulation BI requires the Broker-Dealers, when making a recommendation of any securities transaction or investment strategy involving securities (including account recommendations) to a retail customer to provide specified disclosures and act solely in the retail customer’s best interest. Moreover, in recent years, the SEC and FINRA have intensified their scrutiny of sales practices relating to variable annuities, variable life insurance and alternative investments, among other products. In addition, the Broker-Dealers are also subject to regulation by state securities administrators in those states in which they conduct business, who may also conduct examinations and direct inquiries to the Broker-Dealers.

Certain of our Separate Accounts are registered as investment companies under the Investment Company Act. Separate Accounts interests under certain annuity contracts and insurance policies issued by us are also registered under the Securities Act. EQAT, EQ Premier VIP Trust and 1290 Funds are registered as investment companies under the Investment Company Act and shares offered by these investment companies are also registered under the Securities Act. Many of the investment companies managed by AB, including a variety of mutual funds and other pooled investment vehicles, are registered with the SEC under the Investment Company Act, and, if appropriate, shares of these entities are registered under the Securities Act.

Certain subsidiaries including EIMG, Equitable Advisors and AB and certain of its subsidiaries are registered as investment advisers under the Investment Advisers Act. The investment advisory activities of such registered investment

43

advisers are subject to various federal and state laws and regulations and to the laws in those foreign countries in which they conduct business. These laws and regulations generally grant supervisory agencies broad administrative powers, including the power to limit or restrict the carrying on of business for failure to comply with such laws and regulations.

EIMG is registered with the CFTC as a commodity pool operator with respect to certain portfolios and is also a member of the NFA. AB and certain of its subsidiaries are also separately registered with the CFTC as commodity pool operators and commodity trading advisers; SCB LLC is also registered with the CFTC as a commodity introducing broker. The CFTC is a federal independent agency that is responsible for, among other things, the regulation of commodity interests and enforcement of the CEA. The NFA is a self-regulatory organization to which the CFTC has delegated, among other things, the administration and enforcement of commodity regulatory registration requirements and the regulation of its members. As such, EIMG is subject to regulation by the NFA and CFTC and is subject to certain legal requirements and restrictions in the CEA and in the rules and regulations of the CFTC and the rules and by-laws of the NFA on behalf of itself and any commodity pools that it operates, including investor protection requirements and anti-fraud prohibitions, and is subject to periodic inspections and audits by the CFTC and NFA. EIMG is also subject to certain CFTC-mandated disclosure, reporting and record-keeping obligations.

Regulators, including the SEC, FINRA, the CFTC, NFA and state attorneys general, continue to focus attention on various practices in or affecting the investment management and/or mutual fund industries, including portfolio management, valuation, fee break points, and the use of fund assets for distribution.

We and certain of our subsidiaries have provided, and in certain cases continue to provide, information and documents to the SEC, FINRA, the CFTC, NFA, state attorneys general, the NYDFS and other state insurance regulators, and other regulators regarding our compliance with insurance, securities and other laws and regulations regarding the conduct of our businesses. For additional information on regulatory matters, see Note 18 of the Notes to these Consolidated Financial Statements.

The SEC, FINRA, the CFTC and other governmental regulatory authorities may institute administrative or judicial proceedings that may result in censure, fines, the issuance of cease-and-desist orders, trading prohibitions, the suspension or expulsion of a broker-dealer, commodity pool operator, or other type of regulated entity, or member, its officers, registered representatives or employees or other similar sanctions.

Dodd-Frank Wall Street Reform and Consumer Protection Act

Currently, the U.S. federal government does not directly regulate the business of insurance. While the Dodd-Frank Act does not remove primary responsibility for the supervision and regulation of insurance from the states, Title V of the Dodd-Frank Act establishes the FIO within the U.S. Treasury Department and reforms the regulation of the non-admitted property and casualty insurance market and the reinsurance market. The Dodd-Frank Act also established the FSOC, which is authorized to subject non-bank financial companies, including insurers, to supervision by the Federal Reserve and enhanced prudential standards if the FSOC determines that a non-bank financial institution could pose a threat to U.S. financial stability. The FSOC modified the designation process by adopting an activities-based approach for identifying and addressing potential risks to financial stability, and it enhanced the analytical process, engagement and transparency of the designation process.

The FIO has authority that extends to all lines of insurance except health insurance, crop insurance and (unless included with life or annuity components) long-term care insurance. Under the Dodd-Frank Act, the FIO is charged with monitoring all aspects of the insurance industry (including identifying gaps in regulation that could contribute to a systemic crisis), recommending to the FSOC the designation of any insurer and its affiliates as a non-bank financial company subject to oversight by the Board of Governors of the Federal Reserve System (including the administration of stress testing on capital), assisting the Treasury Secretary in negotiating “covered agreements” with non-U.S. governments or regulatory authorities, and, with respect to state insurance laws and regulation, determining whether state insurance measures are pre-empted by such covered agreements.

In addition, the FIO is empowered to request and collect data (including financial data) on and from the insurance industry and insurers (including reinsurers) and their affiliates. In such capacity, the FIO may require an insurer or an affiliate of an insurer to submit such data or information as the FIO may reasonably require. In addition, the FIO’s approval is required to subject a financial company whose largest U.S. subsidiary is an insurer to the special orderly liquidation process outside the federal bankruptcy code, administered by the FDIC pursuant to the Dodd-Frank Act. U.S. insurance subsidiaries of any such financial company, however, would be subject to rehabilitation and liquidation proceedings under state insurance law. The Dodd-Frank Act also reforms the regulation of the non-admitted property/casualty insurance market (commonly referred to as

44

excess and surplus lines) and the reinsurance markets, including prohibiting the ability of non-domiciliary state insurance regulators to deny credit for reinsurance when recognized by the ceding insurer’s domiciliary state regulator.

Other aspects of our operations could also be affected by the Dodd-Frank Act, including:

Heightened Standards and Safeguards

The FSOC may recommend that state insurance regulators or other regulators apply new or heightened standards and safeguards for activities or practices we and other insurers or other financial services companies engage in if the FSOC determines that those activities or practices could create or increase the risk that significant liquidity, credit or other problems spread among financial companies. We cannot predict whether any such recommendations will be made or their effect on our business, consolidated results of operations or financial condition.

Over-The-Counter Derivatives Regulation

The Dodd-Frank Act includes a framework of regulation for the OTC derivatives markets, which gives authority to the CFTC to regulate “swaps” and the SEC to regulate “security-based swaps.” Swaps include, among other things, OTC derivatives on interest rates, commodities, broad-based securities indexes and currency. Security-based swaps include, among other things, OTC derivatives on single securities, baskets of securities, narrow-based indexes or loans.

The Dodd-Frank Act authorized the SEC and the CFTC to mandate that a substantial portion of OTC derivatives must be executed in regulated markets and be submitted for clearing to regulated clearinghouses and directed the CFTC and SEC to establish documentation, recordkeeping and registration requirements for swap dealers, major swap participants, security-based swap dealers and major security-based swap participants for swaps, security-based swaps and specified other derivatives that continued to trade on the OTC market. The Dodd-Frank Act also directed the SEC, CFTC, the Office of the Comptroller of the Currency, the Federal Reserve Board, the FDIC, the Farm Credit Administration, and the Federal Housing Finance Agency (collectively, the “Prudential Regulators”), with respect to the respective entities they regulate, to develop margin rules for OTC derivatives and capital rules for regulated dealers and major participants. The Prudential Regulators completed substantially all of the required regulations by 2017, and the CFTC finalized one of its last remaining rules – the capital rules for swap dealers in July 2020. In December 2019 the SEC finalized and adopted the final set of rules related to security-based swaps, and the rules, including registration of dealers in security-based swaps, became effective on or prior to November 1, 2021.

As a result of the CFTC regulations, several types of CFTC-regulated swaps are required to be traded on swap execution facilities and cleared through a regulated DCO. Swaps and security-based swaps submitted for clearing are subject to minimum initial and variation margin requirements set by the relevant DCO or security-based swap clearing organization. Both swaps and security-based swaps are subject to transaction-reporting requirements.

Under the CFTC’s and SEC’s regulations, swaps and security-based swaps traded by a non-banking entity are currently subject to variation margin requirements as well as, for most entities, initial margin, as mandated by the CFTC and SEC. Under regulations adopted by the Prudential Regulators, both swaps and security-based swaps traded by banking entities are currently subject to variation margin requirements and, for most entities, initial margin requirements as well. Initial margin requirements imposed by the CFTC, the SEC and the Prudential Regulators are being phased in over a period of time. As a result, initial margin requirements took effect in September 2021 (which is the applicable date for us) and for smaller counterparties will take effect beginning September 2022. The CFTC regulations require us to post and collect variation margin (comprised of specified liquid instruments and subject to a required haircut) in connection with trading of swaps with CFTC-regulated swap dealers, and the regulations adopted by the Prudential Regulators require us to post and collect variation margin when trading either swaps or security-based swaps with a dealer regulated by the Prudential Regulators. SEC regulations require posting and collection of variation margin by both us and our counterparty but require posting of initial margin only by the entity facing the broker-dealer or security-based swap dealer but not the broker-dealer or security-based swap dealer itself.

In addition, regulations adopted by the Prudential Regulators that became effective in 2019 require certain bank-regulated counterparties and certain of their affiliates to include in qualified financial contracts, including many derivatives contracts, repurchase agreements and securities lending agreements, terms that delay or restrict the rights of counterparties, such as us, to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict transfers of affiliate credit enhancements (such as guarantees) in the event that the bank-regulated counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that these requirements in the market, could adversely affect our ability to terminate existing derivatives agreements or to realize amounts to be received under such agreements. The Dodd-Frank Act and related federal regulations and foreign derivatives requirements expose us to operational, compliance, execution and other risks, including central counterparty insolvency risk.

45

We use derivatives to mitigate a wide range of risks in connection with our business, including the impact of increased benefit exposures from certain variable annuity products that offer GMxB features. We have always been subject to the risk that our hedging and other management procedures might prove ineffective in reducing the risks to which insurance policies expose us or that unanticipated policyholder behavior or mortality, combined with adverse market events, could produce economic losses beyond the scope of the risk management techniques employed. Any such losses could be increased by higher costs of writing derivatives (including customized derivatives) and the reduced availability of customized derivatives that might result from the enactment and implementation of new regulations.

Broker-Dealer Regulation

The Dodd-Frank Act authorized the SEC to promulgate rules to provide that the standard of conduct for all broker-dealers, when providing personalized investment advice about securities to retail customers. In response, the SEC adopted Regulation BI, which became effective on June 30, 2020. Regulation BI also requires registered broker dealers and investment advisers to retail customers to file a client relationship summary (“Form CRS”) with the SEC and deliver copies of Form CRS to their retail customers. Form CRS provides disclosures from the broker-dealer or investment adviser about the applicable standard of conduct and conflicts of interest. The intent of these rules is to impose on broker-dealers an enhanced duty of care to their customers similar to that which applies to investment advisers under existing law. We have developed systems and processes and put in place policies and procedures to ensure that we are in compliance with Regulation Best Interest. In addition, FINRA and the SEC are currently focusing on examining compliance efforts with Regulation BI by broker-dealers.

Investment Adviser Regulation

Changes to the marketing requirements for registered investment advisers were adopted in December 2020 and become effective in November 2022. The changes amend existing Rule 206(4)-1 under the Investment Advisers Act and incorporate aspects of Investment Advisers Act Rule 206(4)-3, which the SEC simultaneously rescinded in its entirety. The amended rules impose a number of new requirements that will affect marketing of certain advisory products, including, in particular, private funds. We are currently working diligently to implement policies and procedures on or prior to the effective date for the amended rule.

Fiduciary Rules / “Best Interest” Standards of Conduct

We provide certain products and services to employee benefit plans that are subject to ERISA and certain provisions of the Internal Revenue Code of 1986, as amended (the “Code”). As such, our activities are subject to the restrictions imposed by ERISA and the Code, including the requirement that fiduciaries must perform their duties solely in the interests of plan participants and beneficiaries, and fiduciaries may not cause or permit a covered plan to engage in certain prohibited transactions with persons (parties-in-interest) who have certain relationships with respect to such plans. The applicable provisions of ERISA and the Code are subject to enforcement by the DOL, the IRS, and the Pension Benefit Guaranty Corporation.

In the wake of the March 2018 federal appeals court decision to vacate the 2016 DOL Fiduciary Rule, the DOL announced its intention to issue revised fiduciary investment advice regulations. In December 2020, the DOL finalized a “best interest” prohibited transaction exemption (“PTE 2020-02”) for investment advice fiduciaries under ERISA, and the Code, which now has an enforcement date of January 31, 2022. PTE 2020-02 includes the DOL’s interpretation of the five-part test under ERISA and the Code for determining fiduciary status that was in effect prior to the 2016 DOL Fiduciary Rule, although the scope of PTE 2020-02 extends to rollover transactions if they constitute “investment advice” under the five-part test. If fiduciary status is triggered, PTE 2020-02 prescribes a set of impartial conduct standards and disclosure obligations that are intended to be consistent with the SEC’s Regulation Best Interest. We have devoted significant time and resources towards coming into compliance with PTE 2020-02, which became effective on February 16, 2021, but do not expect the new rules to have a material impact on our business. However, in June 2021 the DOL updated its formal regulatory agenda to include issuance of a proposed rule-making by year-end 2021 that would further amend its fiduciary regulations, including PTE 2020-02 and, possibly, other existing prohibited transaction exemptions.

In addition, in January 2020, the NAIC revised the Suitability in Annuity Transactions Model Regulation to apply a best interest of the consumer standard on insurance producers’ annuity recommendations and to require that insurers supervise such recommendations. Several state regulators have adopted the revised regulation, including in one of our insurance subsidiaries’ domiciliary states, while others are currently considering doing so or instead issuing standalone impartial conduct standards applicable to annuity and, in some cases, life insurance transactions. For example, the NYDFS amended Regulation 187 - Suitability and Best Interests in Life Insurance and Annuity Transactions (“Regulation 187”) to add a “best interest” standard for recommendations regarding the sale of life insurance and annuity products in New York. In April 2021, the Appellate

46

Division of the NYS Supreme Court, Third Department, overturned Regulation 187 for being unconstitutionally vague. The NYDFS has appealed this ruling to the New York State Court of Appeals, which automatically granted a stay, meaning that Regulation 187 remains in effect pending a decision by the Court of Appeals. We have developed our compliance framework for Regulation 187 with respect to annuity sales as well as our life insurance business. Meanwhile, state regulators and legislatures in Nevada and Maryland have proposed measures that would make broker-dealers, sales agents, and investment advisers and their representatives subject to a fiduciary duty when providing products and services to customers, including pension plans and IRAs. Massachusetts has adopted such a regulation applying a fiduciary duty standard to broker-dealers and their agents which, although not applying to insurance product (including variable annuity) sales, did require us to make changes to certain policies and procedures to ensure compliance. Beyond the New York and Massachusetts regulations, the likelihood of enactment of any such other standalone state-based regulation is uncertain at this time, but if implemented, these regulations could have adverse effects on our business and consolidated results of operations.

In the approximately 18 months since adoption of Regulation BI, the SEC staff has published guidance regarding Regulation BI, including recent guidance indicating that recommendations of instruments having LIBOR-linked exposure (and using as an example, a fixed income mutual fund). In March 2021, the SEC’s Division of Examinations indicated that compliance with Regulation BI is at the top of its list of 2021 examination priorities. We continue to monitor our compliance with Regulation BI.

Climate Risks

The topic of climate risk has come under increased scrutiny by insurance regulators. In September 2020, the NYDFS announced that it expects New York domestic and foreign authorized insurers, which applies to Equitable Financial, to integrate financial risks from climate change into their governance frameworks, risk management processes, and business strategies.

In addition, the NYDFS issued guidance on November 15, 2021 regarding its expectations for New York domestic insurers, such as Equitable Financial, related to the management of financial risks from climate change. Insurers are expected to manage these risks by outlining actions that are proportionate to the nature, scale and complexity of their businesses. For instance, the guidance states that an insurer should: (i) incorporate climate risk into its financial risk management (e.g., a company’s ORSA should address climate risk); (ii) manage climate risk through its enterprise risk management functions and ensure that its organizational structure clearly defines roles and responsibilities related to managing such risk; (iii) use scenario analysis when developing business strategies and identifying risks; and (iv) incorporate the management of climate risk into its corporate governance structure at the group or insurer entity level (i.e., an insurer’s board of directors should understand climate risk and oversee the team responsible for managing such risk). In terms of timing, a company must have specific plans to implement the NYDFS’s expectations related to board governance and organizational structure by August 15, 2022, and the NYDFS intends to issue additional guidance on the timing for implementing the more complex expectations.

The NYDFS also adopted an amendment to the regulation that governs enterprise risk management, effective as of August 13, 2021, that requires certain additional risks, including climate change risk, to be included in an insurance group’s enterprise risk management function.

NYDFS Guidance on Diversity and Corporate Governance

In March 2021, the NYDFS issued a circular letter which states that the NYDFS expects the insurers that it regulates, such as Equitable Financial, to make diversity of their leadership a business priority and a key element of their corporate governance. During the summer of 2021, the NYDFS collected data from insurers that met certain premium thresholds in New York, including Equitable Financial, regarding the diversity of their corporate boards and management. The NYDFS plans to publish this data on an aggregate basis in order to measure progress in the industry, and it will include diversity-related questions in its examination process starting in 2022. We are considering the NYDFS’ guidance as part of our commitment to diversity and inclusion.

International Regulation

Many of AB’s subsidiaries are subject to the oversight of regulatory authorities in jurisdictions outside of the United States in which they operate, including the Ontario Securities Commission, the Investment Industry Regulatory Organization of Canada, the European Securities and Markets Authority, the Financial Conduct Authority in the U.K., the CSSF in Luxembourg, the Financial Services Agency in Japan, the Securities & Futures Commission in Hong Kong, the Monetary Authority of Singapore, the Financial Services Commission in South Korea, the Financial Supervisory Commission in Taiwan and the Securities and Exchange Board of India. While these regulatory requirements often may be comparable to the requirements of the SEC and other U.S. regulators, they are sometimes more restrictive and may cause AB to incur substantial expenditures of time and money related to AB’s compliance efforts.

47

Federal Tax Legislation, Regulation and Administration

Although we cannot predict what legislative, regulatory, or administrative changes may or may not occur with respect to the federal tax law, we nevertheless endeavor to consider the possible ramifications of such changes on the profitability of our business and the attractiveness of our products to consumers. In this regard, we analyze multiple streams of information, including those described below.

Transition from LIBOR

Global regulators have indicated that publication of LIBOR is expected to cease after June 2023. Publication of one week and two-month USD LIBOR settings terminated at the end of December 2021 as did publication of non-USD LIBOR. Publication of the remaining USD LIBOR settings (overnight and one, three, six and 12 month USD LIBOR) is expected to continue until the end of June 2023. U.S. bank regulators have requested all U.S. regulated banks to stop extending USD LIBOR loans after the end of 2021.

The New York legislature passed legislation in 2021 that provides a fallback of the Secured Overnight Financing Rate (“SOFR”) for contracts governed by New York law and for which a fallback is not otherwise specified. The U.S. House of Representatives passed a similar bill governing instruments that may not apply New York law. That bill has been sent to the U.S. Senate.

Recent guidance from the SEC staff noted that, in light of the now-certain transition away from LIBOR, financial professionals and financial services companies must: consider the implications for portfolio holdings and hedges, including the presence of a robust fallback rate; disclosure with respect to the transition and the likely impact that the LIBOR transition will have on valuation measurements using LIBOR as an input; and operational complexities that the LIBOR transaction is likely to introduce, including required IT system changes.

We have exposure to USD LIBOR through loans, derivatives, investments and financing operations and there are references to LIBOR in certain product prospectuses. We have evaluated our existing credit agreements, portfolio holdings, derivatives and other investments and identified all contracts for which there is not a robust fallback rate specified and have either identified replacement rates, including SOFR, as an adequate fallback for these instruments or are in the process of addressing the lack of the fallback by seeking to dispose of the instrument or negotiate fallback terms. As a general matter we include fallback terms in all new agreements entered into by us and products we issue that replace LIBOR with a replacement rate, including SOFR, upon discontinuation of LIBOR. Existing contract fallback provisions, and whether, how, and when we and others develop and adopt alternative reference rates, will influence the effect of any changes to or discontinuation of LIBOR on us and our subsidiaries and affiliates. Discontinuation of LIBOR could have a materially adverse impact on us depending upon how the transition evolves. We continue to monitor both market and regulatory changes in order to prepare for the discontinuation of the LIBOR benchmark.

Enacted Legislation

At present, the federal tax laws generally permit certain holders of life insurance and annuity products to defer taxation on the build-up of value within such products (commonly referred to as “inside build-up”) until payments are made to the policyholders or other beneficiaries. From time to time, Congress considers legislation that could enhance or reduce (or eliminate) the benefit of tax deferral on some life insurance and annuity products. The modification or elimination of this tax-favored status could also reduce demand for our products. In addition, if the treatment of earnings accrued inside an annuity contract was changed prospectively, and the tax-favored status of existing contracts was grandfathered, holders of existing contracts would be less likely to surrender or rollover their contracts. These changes could reduce our earnings and negatively impact our business.

Regulatory and Other Administrative Guidance from the Treasury Department and the IRS

Regulatory and other administrative guidance from the Treasury Department and the IRS also could impact the amount of federal tax that we pay. For example, the adoption of “principles based” approaches for calculating statutory reserves may lead the Treasury Department and the IRS to issue guidance that changes the way that deductible insurance reserves are determined, potentially reducing future tax deductions for us.

Privacy and Security of Customer Information and Cybersecurity Regulation

We are subject to federal and state laws and regulations that require financial institutions to protect the security and confidentiality of customer information, and to notify customers about their policies and practices relating to their collection

48

and disclosure of customer information and their practices related to protecting the security and confidentiality of that information. We maintain, and we require our third-party service providers to maintain, security controls designed to ensure the integrity, confidentiality, and availability of our systems and the confidential and sensitive information we maintain and process. We have adopted a privacy policy outlining the Company’s procedures and practices relating to the collection, maintenance, disclosure, disposal, and protection of customer information, including personal information. As required by law, subject to certain exceptions, a copy of the privacy policy is mailed to customers on an annual basis. Federal and state laws generally require that we provide notice to affected individuals, law enforcement, regulators and/or potentially others if there is a situation in which customer information is disclosed to and/or accessed or acquired by unauthorized third parties. Federal regulations require financial institutions to implement programs to protect against unauthorized access to this customer information, and to detect, prevent and mitigate identity theft. Federal and state laws and regulations regulate the ability of financial institutions to make telemarketing calls and to send unsolicited e-mail or fax messages to both consumers and customers, and also regulate the permissible uses of certain categories of customer information.

The violation of data privacy and data protection laws and regulations or the failure to implement and maintain reasonable and effective cybersecurity programs may result in significant fines, remediation costs and regulatory enforcement actions. Moreover, a cybersecurity incident that disrupts critical operations and customer services could expose the Company to litigation, losses, and reputational damage. As cyber threats continue to evolve, regulators continue to develop new requirements to account for risk exposure, including specific cybersecurity safeguards and program oversight. As such, it may be expected that legislation considered by either the U.S. Congress and/or state legislatures could create additional and/or more burdensome obligations relating to the use and protection of customer information.

We are subject to the rules and regulations of the NYDFS which adopted a cybersecurity regulation for financial services institutions, including banking and insurance entities, under its jurisdiction. The regulation requires these entities to, among other things, assess risks associated with their information systems and establish and maintain a cybersecurity program reasonably designed to protect such systems and consumers’ private data. We have adopted a cybersecurity policy outlining our policies and procedures for the protection of our information systems and information stored on those systems that comports with the regulation. In addition to New York’s cybersecurity regulation, the NAIC adopted the Insurance Data Security Model Law in October 2017, establishing standards for data security and for the investigation and notification of insurance commissioners of cybersecurity events involving unauthorized access to, or the misuse of, certain nonpublic information. Certain states have adopted the model law, although it has not been adopted by our insurance subsidiaries’ domiciliary states. We expect that additional states will also adopt the model law, even though it is not an NAIC accreditation standard, but we cannot predict whether or not, or in what form or when, they will do so. Under the model law, companies that are compliant with the NYDFS cybersecurity regulation are deemed also to be compliant with the model law.

Under the California Consumer Privacy Act (“CCPA”), California residents enjoy the right to know what information a business has collected from them, the sourcing and sharing of that information, and the right to limit certain uses. CCPA also establishes a private right of action with potentially significant statutory damages, whereby businesses that fail to implement reasonable security measures to protect against breaches of personal information could be liable to affected consumers. Certain data processing which is otherwise regulated, including under the Gramm-Leach-Bliley Act, is excluded from the CCPA; however, this is not an entity-wide exclusion. We expect a significant portion of our business will be excepted from the requirements of the CCPA. The California Privacy Rights Act (“CPRA”) amends the CCPA and will come into effect in January 2023. Virginia and Colorado have adopted similar laws, which come into effect in January 2023 and July 2023, respectively, and additional states are considering, and may enact, similar laws or regulations in the near future.

State and federal regulators are increasingly focused on cybersecurity and several have established specific and potentially burdensome requirements. For instance, in October 2021, the Federal Trade Commission announced significant amendments to the Standards for Safeguarding Customer Information Rule (the “Safeguards Rule”) that require financial institutions to implement specific data security measures within their formal information security measures. Failure to comply with new regulation or requirements may result in enforcement action, fines and/or other operational or reputational harms.

Environmental Considerations

Federal, state and local environmental laws and regulations apply to our ownership and operation of real property. Inherent in owning and operating real property are the risk of environmental liabilities and the costs of any required clean-up. Under the laws of certain states, contamination of a property may give rise to a lien on the property to secure recovery of the costs of clean-up, which could adversely affect our mortgage lending business. In some states, this lien may have priority over the lien of an existing mortgage against such property. In addition, in some states and under the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980, or CERCLA, we may be liable, in certain circumstances, as an “owner” or “operator,” for costs of cleaning-up releases or threatened releases of hazardous substances at a property

49

mortgaged to us. We also risk environmental liability when we foreclose on a property mortgaged to us. However, federal legislation provides for a safe harbor from CERCLA liability for secured lenders, provided that certain requirements are met. Application of various other federal and state environmental laws could also result in the imposition of liability on us for costs associated with environmental hazards.

We routinely conduct environmental assessments prior to making a mortgage loan or taking title to real estate, whether through acquisition for investment or through foreclosure on real estate collateralizing mortgages. We cannot provide assurance that unexpected environmental liabilities will not arise. However, based on information currently available to us, we believe that any costs associated with compliance with environmental laws and regulations or any clean-up of properties would not have a material adverse effect on our consolidated results of operations.

Intellectual Property

We rely on a combination of copyright, trademark, patent and trade secret laws to establish and protect our intellectual property rights. We regard our intellectual property as valuable assets and protect them against infringement.

Human Capital Management

As of December 31, 2021, we had approximately 7,800 full time employees. Of these, approximately 4,100 were employed full-time by AB.

Equitable

To execute our business plan successfully, we need not only a sound business strategy but an equally well-developed people strategy. In addition to ensuring strong alignment across our organization to our goals and strategies, we maintain a long-standing commitment to building a culture of inclusion, professional excellence and continuous learning. We have been recognized as a “Great Place to Work” by the Great Place to Work® Institute, an independent workplace authority, each year since 2016. We have been awarded a 100% rating by the Human Rights Foundation’s Campaign Corporate Equality Index since 2014.

Looking ahead, we know our clients will continue to face new opportunities and challenges. To meet those needs, and to be able to fully realize our ambitious strategic aspirations, we have adopted a new operating model and mindset that remain uniquely Equitable: our New Ways of Working. Our reasons for embracing this new way forward are clear: we want to innovate and grow, we want to attract the best talent and build a strong pipeline for employee advancement, and we want to better serve our clients. Our New Ways of Working equips us to evolve in ways that enhance innovation, efficiency, client satisfaction and employee engagement by drawing upon five time-tested methodologies: Adaptive Leadership; Outcomes, Objectives & Key Results; Dynamic Enablers; Enterprise Agile; and Design Thinking. It fundamentally changes the way we deliver value and grow as employees and as a company.

Employee Development

Attracting, developing and retaining the best people is crucial to our long-term success and strategy. Accordingly, we offer a number of tools and resources to empower our people to grow and to perform to the best of their abilities. Our tools and resources include educational opportunities such as digital and classroom-style courses on topics ranging from communication skills to product knowledge to inclusive leadership immersion. We also provide tuition reimbursement programs to defray the cost of degree programs. In 2021 we retooled our career models to provide us with a consistent and transparent way to help our people grow, develop and uncover new career opportunities. Under our new career models, each employee’s skills are at the forefront. They can clearly see how their skills are transferrable across the organization so they can shape the career they want. And they can find opportunities — or have opportunities find them — based on the skills they have to contribute. We believe these models will help our employees grow and nurture their own unique skills as they develop a specific career roadmap for the future.

We also support promotion within Equitable, which provides further opportunities for employees to learn, grow and advance in their careers. Among the open positions at Equitable, about 46% on average are filled by internal candidates.

Health and Family Resources

50

We are committed to the health and safety of our employees, financial professionals and their families. With respect to COVID-19, since the onset of the pandemic, we have been working with employees to provide as much flexibility as possible. All of our locations are open at this time but, with the exception of those considered essential, employees have the option to work remotely or from the office. A large number of our employees and financial professionals continue to work remotely. We continue to monitor the health and safety conditions of all of our corporate locations, and use guidance provided by the CDC to create policies and practices to ensure the safety of our people as we move through the pandemic, including re-entering the workplace, travel, in-person meeting, encouraging vaccinations, masking and social distancing. We have enhanced our listening strategy, broadened our benefits offerings, and developed a synchronized hybrid work model which will be fully implemented when all employees return to work from our office. We also created a centralized location to share the latest updates on health and safety with our employees and financial professionals, and our Chief Medical Director hosted a series of videos that provided COVID updates and answered employees’ questions. We opened a COVID-19 specific hotline with our expert second medical opinion service provider to intake health questions and provide local referrals for Equitable employees, financial professionals and family members.

We offered complimentary membership to an online tutoring service during the school year and hosted a series of interactive employee engagement activities to create connections, support our culture and combat burnout associated with the virtual working environment. We also provide resources to support employees in their family life, including child and elder care support through Bright Horizons, College Coach, financial wellness, adoption support, family and medical leave and paid parental leave of between 8 and 16 weeks. We also introduced Sanvello, an app for stress, anxiety, and depression based on cognitive-behavioral therapy, mindfulness, and wellness. Our Employee Assistance Program provides resources to help employees overcome challenges at home or at work and help them reach their professional and personal goals. This includes six complimentary confidential counseling sessions annually.

Compensation

Rewarding performance is the cornerstone of our “Total Rewards” program. Total Rewards include access to comprehensive benefits programs and the opportunity to share in company results through equity awards. Our benefits portfolio allows eligible employees and financial professionals to elect the right coverage for health needs, to build their wealth and to provide protection for themselves and their families from the unexpected events that might occur along the way. Our Total Rewards package includes, among other things, market-competitive pay, equity award programs and bonuses, healthcare benefits, retirement savings plans, paid time off and family leave, flexible work schedules, an educational assistance program and an employee assistance program and other mental health services.

Diversity, Equity and Inclusion

We believe a more diverse workforce enriches our people’s work experience, helps us better serve clients, and creates a more understanding and inclusive work environment. To drive lasting change, we must deeply understand the issues facing the diverse communities in our company. We are taking an intentional and iterative approach to diversity, equity and inclusion (DEI), listening and applying our learnings as we go.

To build a more inclusive culture, Equitable has developed integrated programs through keynote speakers, events and learning experiences. This effort helps reset behavioral expectations and understanding of DEI-related matters in the workplace. With our courageous conversations, we now have a model where we can talk about race, gender and other topics to support both personal growth and team building. We have hosted conversations about race and racism in America, violence against the Asian American and Pacific Islander (AAPI) community and issues facing our LGBTQ+ colleagues, and have forthcoming conversations planned regarding religious tolerance.

We are committed to transparency when it comes to sharing the diverse composition of our workforce. This commitment is underscored by the public release of Equitable Holdings' EEO-1 Report. We have multiple programs underway to increase employee and financial professional diverse representation. We are focused on creating a support structure to accelerate career advancement opportunities for our diverse colleagues. To do this, we identify opportunities and challenges and create programs to help our underrepresented communities overcome barriers.

51

Our 11 Employee Resource Groups and 5 Field Advisory Councils play a key role in serving as a community voice to leadership, driving important policy changes and helping to build and shape our DEI strategy. They also create development opportunities for our people, with members working collaboratively to address business challenges and share ideas.

In 2020, we established the CEO Taskforce to Advance Racial Equity. The mission of the Taskforce is to make Equitable the most sought-after employer for Black professionals by building an environment that supports and invests in the careers and well-being of our Black employees and financial professionals. While the Taskforce is currently focused on Black colleagues, the models created are being used to benefit other underrepresented groups.

We're holding ourselves accountable by leveraging our compensation and rewards systems to drive our DE&I goals. Today, DE&I is incorporated into our company STIC metrics through our corporate strategic initiatives, and each of our senior leaders have incorporated DE&I aspirations into their annual goals. For Equitable Advisors, a portion of Executive Vice President compensation is tied to advancing diverse representation.

While we have made progress, we recognize this is long-term journey.

Equitable Foundation

The Equitable Foundation directs the Company’s philanthropic and volunteer activities. The Equitable Foundation gives our employees and financial professionals an opportunity to commit their time and effort to organizations they believe in, as well as supports their efforts through charitable grants and through our company volunteer program, Equitable in Action.

Equitable Foundation has established three key focus areas to guide our social impact efforts, which reflect our broader ESG aspirations and align to enterprise objectives. These areas include: i) advancing racial equity and social justice, ii) building healthy and vibrant communities, and iii) supporting underserved students in the journey to and through secondary education and, ultimately, advancing their career aspirations.

Equitable Excellence, a scholarship program for high school seniors, is the flagship program of Equitable Foundation. In alignment with Equitable’s own mission of helping people achieve financial security so that they can face the future with confidence, the Equitable Excellence Scholarship places an emphasis on empowering students’ future plans so that they can continue to have positive impacts in their community.

Through our matching gifts program, we double the impact of the charitable contributions made by our employees and financial professionals. Eligible donations of $50 or more are matched up to $2,000 per year, per individual. In 2021, Equitable Foundation matched $1.3 million in contributions made to nonprofit organizations nationwide.

AllianceBernstein

As a leading global investment-management and research firm, AB brings together a wide range of insights, expertise and innovations to advance the interests of clients around the world. The intellectual capital of AB’s employees is collectively its most important asset, so the long-term sustainability of AB is heavily dependent on its people. AB is keenly focused on:

•fostering an inclusive culture by incorporating diversity and inclusion in all levels of AB’s business;

•encouraging innovation;

•developing, retaining and recruiting high quality talent; and

•aligning employees’ incentives and risk taking with those of AB.

Talent Acquisition

AB seeks to achieve excellence in business and investment performance by recruiting and hiring a workforce with diversity of thought, backgrounds and experiences. AB believes that diverse and inclusive teams generate better ideas and reach more balanced decisions. AB seeks to leverage the unique backgrounds of its employees to meet the needs of a broad range of clients and engage with the communities in which AB operates. AB engages several external organizations to assist in attracting and recruiting top talent at all levels, with a particular focus on attracting diverse talent. AB has a sizable group of internal human capital associates focused on recruiting, and AB has implemented various human capital initiatives to develop and provide for a balanced workforce.

Employee Engagement

52

AB believes a workforce is most productive, effective and highly engaged when they feel connected to AB’s business and culture. AB seeks to provide diverse work experiences, professional development opportunities, competitive compensation and benefits, an inclusive and diverse culture and social engagement projects to keep its employees motivated, connected to AB and engaged throughout their careers. AB strives to create a culture of intellectual curiosity and collaboration, creating an environment where its employees can thrive and do their best work. AB fosters growth and advancement through different training avenues to develop skill sets, create opportunities for networking, both internally and externally, and AB encourages internal mobility as a part of its employees' career trajectory. It is important that AB’s employees are not only connected to AB’s business but also to the communities in which AB operates. As such, AB offers many opportunities for its employees to volunteer in the communities in which AB serves.

Diversity and Inclusion

AB continues to believe that diverse and inclusive teams generate better ideas and best serve the needs of its clients. The events of the last two years have provided an unforeseen yet unique opportunity to reflect, adapt and broaden AB’s Diversity & Inclusion (“D&I”) strategy. D&I continues to be a key strategic priority for AB and its ongoing commitment to embed it across all facets of the firm has further reinforced AB’s company values. It has also allowed for a more purposeful approach to engagement with AB’s people, clients, and the communities in which it operates.

Community engagement efforts have been further integrated under the D&I umbrella. Under the new structure, AB is better able to streamline and formalize the process for assessing corporate partnerships and philanthropic giving through the lens of D&I, allowing for a more cohesive overall strategy.

AB has enhanced its talent attraction and retention approach to position itself as an employer of choice and invest in the development of its people. AB has developed a diverse talent strategy with a goal of developing a deeper understanding of the needs of diverse talent and also equipping managers with the necessary tools to effectively manage an increasingly more diverse workforce. The strategy includes incorporating the concept of inclusive leadership into the firm wide leadership development curriculum and enhancing AB’s exit interview process for diverse talent by conducting in-person interviews which will better enable AB to detect trends and mitigate attrition.

AB’s people remain its top priority especially during these times of uncertainty. Over the course of the last year, there has been a continued focus on education and deepening engagement across all pillars of its strategy to include Employee Resource Groups (ERGs), corporate partnerships, and the overall experience at AB. ERGs have been a major proponent of these efforts by cultivating spaces for courageous conversations, encouraging professional development, personal wellness, and raising awareness for various underrepresented communities.

As AB continues to seek out opportunities to further its commitment to diversity, equity, and inclusion, AB is leveraging best practices from industry peers. AB’s D&I journey continues to evolve, addressing racial and gender equity, more effective access to diverse talent and monitoring client trends remain top priorities.

Compensation and Benefits

AB has demonstrated a history of investing in its workforce by offering competitive compensation. AB utilizes a variety of compensation elements, including base salaries, annual short-term compensation awards (i.e., cash bonuses) and, for those of AB’s employees who earn more than $300,000 annually, a long-term compensation award program. Long-term incentive compensation awards generally are denominated in restricted AB Holding Units. AB utilizes this structure to foster a stronger sense of ownership and align the interests of its employees directly with the interests of AB unitholders and indirectly with the interests of AB’s clients, as strong performance for its clients generally contributes directly to increases in AUM and improved financial performance for the firm. Furthermore, AB offers to all eligible employees health and welfare, 401(k) profit-sharing and other benefits programs.

Health and Safety

AB’s ongoing response to the COVID-19 global pandemic demonstrates how highly AB values the health and safety of its employees. At the initial onset of COVID-19 during the first quarter of 2020, AB quickly responded in the various jurisdictions where AB operates. AB implemented business continuity measures, including travel restrictions and a work-from-home requirement for almost all personnel (other than a relatively small number of employees whose physical presence in AB’s offices was considered critical), which lasted through the second quarter of 2021. Since then, working in the office generally has been voluntary, with mandatory in-office participation occurring only at certain times when COVID-19 has ebbed

53

significantly in the communities in which AB operates. AB also instituted a confidential notification process for any employee who tests positive for COVID-19 or has been exposed to someone else who has tested positive. As the COVID-19 crisis has continued to evolve since the lockdown in the first quarter of 2020, certain key functions of the business, such as Risk Management, Business Continuity, Finance and Human Capital, have maintained constant communication and monitored the evolution of the pandemic to keep AB’s employees safe and advise of key developments.

Executive Officers

See Part III, Item 10 “Directors, Executive Officers and Corporate Governance” for information with respect to our executive officers, which is incorporated by reference herein.

Available Information

We maintain a public website at https://equitableholdings.com. We use our website as a routine channel for distribution of important information, including news releases, analyst presentations, financial information and corporate governance information. We post filings on our website as soon as practicable after they are electronically filed with, or furnished to, the SEC, including our annual and quarterly reports on Forms 10-K and 10-Q and current reports on Form 8-K; our proxy statements; and any amendments to those reports or statements. All such postings and filings are available on the “Investors” section of our website free of charge. The SEC’s website, www.sec.gov, contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.

We may use our website as a means of disclosing material information and for complying with our disclosure obligations under Regulation Fair Disclosure promulgated by the SEC. These disclosures are included on our website in the “Investors” section. Accordingly, investors should monitor this portion of our website, in addition to following our news releases, SEC filings, public conference calls and webcasts. The information contained on or connected to our website is not a part of this Form 10-K.

Part I, Item 1A.

RISK FACTORS

You should read and consider all of the risks described below, as well as other information set forth in this Annual Report on Form 10-K. The risks described below are not the only ones we face. Many of these risks are interrelated and could occur under similar business and economic conditions, and the occurrence of certain of them may in turn cause the emergence or exacerbate the effect of others. Such a combination could materially increase the severity of the impact of these risks on our businesses, results of operations, financial condition or liquidity.

Risks Relating to Our Consolidated Business

Risks Relating to Conditions in the Financial Markets and Economy

The coronavirus (COVID-19) pandemic.

The COVID-19 pandemic has negatively impacted the U.S. and global economies. A wide variety of factors continue to impact financial and economic conditions, including, among others, volatility in the financial markets, rising inflation rates, supply chain disruptions, continued low interest rates and changes in fiscal or monetary policy. Efforts to prevent the spread of COVID-19 have affected our business directly in a number of ways, including through the temporary closures of many businesses and schools and the institution of social distancing requirements in many states and local communities. Businesses or schools that have reopened have restricted or limited access for the foreseeable future and may do so on a permanent or episodic basis. As a result, our ability to sell products through our regular channels and the demand for our products and services has been significantly impacted.

While we have implemented risk management and contingency plans with respect to the COVID-19 pandemic, such measures may not adequately protect our business from the full impacts of the pandemic. Currently, most of our employees and advisors are continuing to work remotely. Extended periods of remote work arrangements could introduce additional operational risk including, but not limited to, cybersecurity risks, and impair our ability to effectively manage our business. We also outsource a variety of functions to third parties whose business continuity strategies are largely outside our control.

Economic uncertainty resulting from the COVID-19 pandemic may have an adverse effect on product sales and result in existing policyholders withdrawing at greater rates. COVID-19 could have an adverse effect on our insurance business due to increased mortality and morbidity rates. The cost of reinsurance to us for these policies could increase, and we may encounter

54

decreased availability of such reinsurance. If policyholder lapse and surrender rates or premium waivers significantly exceed our expectations, we may need to change our assumptions, models or reserves.

Our investment portfolio has been, and may continue to be, adversely affected by the COVID-19 pandemic. Our investments in mortgages and commercial mortgage-backed securities have been, and could continue to be, negatively affected by delays or failures of borrowers to make payments of principal and interest when due. In some jurisdictions, local governments have imposed delays or moratoriums on many forms of enforcement actions. Furthermore, declines in equity markets and interest rates, reduced liquidity or a continued slowdown in the U.S. or in global economic conditions may also adversely affect the values and cash flows of investments. For additional information on the effects of COVID-19 on our mortgage loans, see “Management’s Discussion and Analysis of Financial Condition and Results of Operation—General Account Investment Portfolio.” Market volatility also caused significant increases in credit spreads, and any continued volatility may increase our borrowing costs and decrease product fee income. Further, severe market volatility may leave us unable to react to market events in a prudent manner consistent with our historical investment practices.

The extent of the COVID-19 pandemic’s impact on us will depend on future developments that are still highly uncertain, including the severity and duration of the pandemic, actions taken by governments and other third parties in response to the pandemic and the availability and efficacy of vaccines against COVID-19 and its variants.

Conditions in the global capital markets and the economy.

Our business, results of operations or financial condition are materially affected by conditions in the global capital markets and the economy. A wide variety of factors affect economic conditions and consumer confidence, including the COVID-19 pandemic and government reactions thereto, the pace of economic growth in the U.S., equity market performance, low interest rates and potential changes in fiscal or monetary policy. Given our interest rate and equity market exposure in our investment and derivatives portfolios and many of our products, these factors could have a material adverse effect on us. The value of our investments and derivatives portfolios may also be adversely affected by reductions in price transparency, changes in the assumptions or methodology we use to estimate fair value and changes in investor confidence or preferences, which could potentially result in higher realized or unrealized losses. Market volatility may also make it difficult to transact in or to value certain of our securities if trading becomes less frequent.

In an economic downturn, the demand for our products and our investment returns could be materially and adversely affected. The profitability of many of our products depends in part on the value of the assets supporting them, which may fluctuate substantially depending on various market conditions. In addition, a change in market conditions could cause a change in consumer sentiment and adversely affect sales and could cause the actual persistency of these products to vary from their anticipated persistency and adversely affect profitability. Our policyholders may choose to defer paying insurance premiums or stop paying insurance premiums altogether. In addition, market conditions may adversely affect the availability and cost of reinsurance protections and the availability and performance of hedging instruments.

Equity market declines and volatility.

Declines or volatility in the equity markets can negatively impact our business, results of operations or financial condition. For example, equity market declines or volatility could decrease the AV of our annuity and variable life contracts which, in turn, would reduce the amount of revenue we derive from fees charged on those account and asset values. Our variable annuity business is particularly sensitive to equity markets, and sustained weakness or stagnation in equity markets could decrease its revenues and earnings. At the same time, for variable annuity contracts that include GMxB features, equity market declines increase the amount of our potential obligations related to such GMxB features and could increase the cost of executing GMxB-related hedges beyond what was anticipated in the pricing of the products being hedged. This could result in an increase in claims and reserves related to those contracts, net of any reinsurance reimbursements or proceeds from our hedging programs. Equity market declines and volatility may also influence policyholder behavior, which may adversely impact the levels of surrenders, withdrawals and amounts of withdrawals of our annuity and variable life contracts or cause policyholders to reallocate a portion of their account balances to more conservative investment options (which may have lower fees), which could negatively impact our future profitability or increase our benefit obligations particularly if they were to remain in such options during an equity market increase. Market volatility can negatively impact the value of equity securities we hold for investment which could in turn reduce the statutory capital of certain of our insurance subsidiaries. In addition, equity market volatility could reduce demand for variable products relative to fixed products, lead to changes in estimates underlying our calculations of DAC that, in turn, could accelerate our DAC amortization and reduce our current earnings and result in changes to the fair value of our GMIB reinsurance contracts and GMxB liabilities, which could increase the volatility of our earnings. Lastly, periods of high market volatility or adverse conditions could decrease the availability or increase the cost of derivatives.

Interest rate fluctuations or prolonged periods of low interest rates.

55

Some of our retirement and protection products and certain of our investment products, and our investment returns, are sensitive to interest rate fluctuations, and changes in interest rates and interest rate benchmarks may adversely affect our investment returns and results of operations, including in the following respects:

•changes in interest rates may reduce the spread on some of our products between the amounts that we are required to pay under the contracts and the rate of return we are able to earn on our General Account investments supporting the contracts;

•when interest rates rise rapidly, policy loans and surrenders and withdrawals of annuity contracts and life insurance policies may increase, requiring us to sell investment assets potentially resulting in realized investment losses, or requiring us to accelerate the amortization of DAC, which could reduce our net income;

•a decline in interest rates accompanied by unexpected prepayments of certain investments may result in reduced investment income and a decline in our profitability. An increase in interest rates accompanied by unexpected extensions of certain lower yielding investments may result in a decline in our profitability;

•changes in the relationship between long-term and short-term interest rates may adversely affect the profitability of some of our products;

•changes in interest rates could result in changes to the fair value of our GMIB reinsurance contracts asset, which could increase the volatility of our earnings;

•changes in interest rates could result in changes to the fair value liability of our variable annuity GMxB business;

•changes in interest rates may adversely impact our liquidity and increase our costs of financing and hedges;

•we may not be able to effectively mitigate and we may sometimes choose not to fully mitigate or to increase, the interest rate risk of our assets relative to our liabilities; and

•the delay between the time we make changes in interest rate and other assumptions used for product pricing and the time we are able to reflect such changes in assumptions in products available for sale may negatively impact the long-term profitability of certain products sold during the intervening period.

A prolonged period during which interest rates remain low may result in greater costs associated with our variable annuity products with GMxB features; higher costs for some derivative instruments used to hedge certain of our product risks; or shortfalls in investment income on assets supporting policy obligations as our portfolio earnings decline over time, each of which may require us to record charges to increase reserves. In addition, an extended period of declining or low interest rates may also cause us to change our long-term view of the interest rates that we can earn on our investments. Such a change in our view would cause us to change the long-term interest rate that we assume in our calculation of insurance assets and liabilities under U.S. GAAP. Any future revision would result in increased reserves, accelerated amortization of DAC and other unfavorable consequences. In addition, certain statutory capital and reserve requirements are based on formulas or models that consider interest rates, and an extended period of low interest rates may increase the statutory capital we are required to hold and the amount of assets we must maintain to support statutory reserves. Furthermore, such an environment may cause certain policies to remain in force for longer periods than we anticipated in our pricing, potentially resulting in greater claims costs than we expected and resulting in lower overall returns on business in force. Widening credit spreads, if not offset by equal or greater declines in the risk-free interest rate, would also cause the total interest rate payable on newly issued securities to increase, and thus would have the same effect as an increase in underlying interest rates.

Market conditions and other factors could materially and adversely affect our goodwill.

Business and market conditions may impact the amount of goodwill we carry in our consolidated balance sheet related to the Investment Management and Research segment. To the extent that securities valuations are depressed for prolonged periods of time or market conditions deteriorate, or that AB experiences significant net redemptions, its AUM, revenues, profitability and unit price will be adversely affected. This may result in the need to recognize an impairment of goodwill which could adversely affect our business, results of operations or financial condition.

Adverse capital and credit market conditions.

Volatility and disruption in the capital and credit markets may exert downward pressure on the availability of liquidity and credit capacity. We need liquidity to pay our operating expenses (including potential hedging losses), interest expenses and any distributions on our capital stock and to capitalize our insurance subsidiaries. Without sufficient liquidity, we could be required to curtail our operations and our business would suffer. While we expect that our future liquidity needs will be satisfied primarily through cash generated by our operations, borrowings from third parties and dividends and distributions from our subsidiaries, it is possible that we will not be able to meet our anticipated short-term and long-term benefit and expense payment obligations. If current resources are insufficient to satisfy our needs, we may access financing sources such as bank debt or the capital markets. These services may not be available during times of stress or may only be available on unfavorable terms. If we are unable to access capital markets to issue new debt, refinance existing debt or sell additional shares as needed, or

56

if we are unable to obtain such financing on acceptable terms, our business could be adversely impacted. Volatility in the capital markets may also consume liquidity as we pay hedge losses and meet collateral requirements related to market movements. We expect these hedging programs to incur losses in certain market scenarios, creating a need to pay cash settlements or post collateral to counterparties. Although our liabilities will also be reduced in these scenarios, this reduction is not immediate, and so in the short term, hedging losses will reduce available liquidity.

Disruptions, uncertainty or volatility in the capital and credit markets may limit our ability to raise additional capital to support business growth, or to counter-balance the consequences of losses or increased regulatory reserves and rating agency capital requirements. This could force us to: (i) delay raising capital; (ii) miss payments on our debt or reduce or eliminate dividends paid on our capital stock; (iii) issue capital of different types or under different terms than we would otherwise; or (iv) incur a higher cost of capital than would prevail in a more stable market environment. Ratings agencies may change our credit ratings, and any downgrade is likely to increase our borrowing costs and limit our access to the capital markets and could be detrimental to our business relationships with distribution partners. Our business, results of operations, financial condition, liquidity, statutory capital or rating agency capital position could be materially and adversely affected by disruptions in the capital and credit markets.

Risks Relating to Our Operations

Holdings depends on the ability of its subsidiaries to transfer funds to it to meet its obligations.

Dividends and other distributions from Holdings’ subsidiaries are the principal sources of funds available to Holdings to pay principal and interest on its outstanding indebtedness, to pay corporate operating expenses, to pay any stockholder dividends, to repurchase stock and to meet its other obligations. The inability to receive dividends from our subsidiaries could have a material adverse effect on our business, results of operations or financial condition. The ability of our insurance subsidiaries to pay dividends and make other distributions to Holdings will depend on their earnings, tax considerations, covenants contained in any financing or other agreements and applicable regulatory restrictions and receipt of regulatory approvals. If the ability of our insurance or non-insurance subsidiaries to pay dividends or make other distributions or payments to Holdings is materially restricted by these or other factors, we may be required to raise cash through the incurrence of debt, the issuance of equity or the sale of assets. However, there is no assurance that we would be able to raise sufficient cash by these means. This could materially and adversely affect our ability to pay our obligations.

Failure to protect the confidentiality of customer information or proprietary business information.

We and certain of our vendors retain confidential information (including customer transactional data and personal information about our customers, the employees and customers of our customers, and our own employees). The privacy of this information may be compromised, including as a result of an information security breach. We have implemented a formal, risk-based data security program; however, failure to implement and maintain effective cybersecurity programs, or any compromise of the security of our information systems, or those of our vendors, or the cloud-based systems we use, through cyber-attacks or for any other reason that results in unauthorized access, use, disclosure or destruction of personally identifiable information or customer information, or the disruption of critical operations and services, could damage our reputation, deter people from purchasing our products, subject us to significant civil and criminal liability and require us to incur significant technical, legal and other expenses any of which could have a material adverse effect on our business, results of operations or financial condition.

Our operational failures or those of service providers on which we rely.

Weaknesses or failures in our internal processes or systems or those of our vendors could lead to disruption of our operations, liability to clients, exposure to disciplinary action or harm to our reputation. Our business is highly dependent on our ability to process large numbers of transactions, many of which are highly complex, across numerous and diverse markets. These transactions generally must comply with client investment guidelines, as well as stringent legal and regulatory standards. If we make a mistake in performing our services that causes financial harm to a client, we have a duty to act promptly to put the client in the position the client would have been in had we not made the error. The occurrence of mistakes, particularly significant ones, can have a material adverse effect on our reputation, business, results of operations or financial condition.

The occurrence of a catastrophe, including natural or man-made disasters.

Any catastrophic event, such as pandemic diseases like COVID-19, terrorist attacks, accidents, floods, severe storms or hurricanes or cyber-terrorism, could have a material and adverse effect on our business. We could experience long-term interruptions in our service and the services provided by our significant vendors. Some of our operational systems are not fully redundant, and our disaster recovery and business continuity planning cannot account for all eventualities. Additionally, unanticipated problems with our disaster recovery systems could further impede our ability to conduct business, particularly if

57

those problems affect our computer-based data processing, transmission, storage and retrieval systems and destroy valuable data. We could experience a material adverse effect on our liquidity, financial condition and the operating results of our insurance business due to increased mortality and, in certain cases, morbidity rates and/or its impact on the economy and financial markets. Our workforce may be unable to be physically located at one of our facilities, which could result in lengthy interruptions in our service. A catastrophe may affect our computer-based data processing, transmission, storage and retrieval systems and destroy valuable data. Climate change may increase the frequency and severity of weather-related disasters and pandemics.

Our ability to recruit, motivate and retain key employees and experienced and productive financial professionals.

Our business depends on our ability to recruit, motivate and retain highly skilled, technical, investment, managerial and executive personnel, and there is no assurance that we will be able to do so. Our financial professionals and our key employees are key factors driving our sales. Intense competition exists among insurers and other financial services companies for financial professionals and key employees. We cannot provide assurances that we will be successful in our respective efforts to recruit, motivate and retain key employees and top financial professionals and the loss of such employees and professionals could have a material adverse effect on our business, results of operations or financial condition.

Misconduct by our employees or financial professionals.

Misconduct by our employees, financial professionals, agents, intermediaries, representatives of our broker-dealer subsidiaries or employees of our vendors could result in violations of law by us or our subsidiaries, regulatory sanctions or serious reputational or financial harm. We employ controls and procedures designed to monitor employees’ and financial professionals’ business decisions and to prevent them from taking excessive or inappropriate risks, including with respect to information security, but employees may take such risks regardless of such controls and procedures. If our employees or financial professionals take excessive or inappropriate risks, those risks could harm our reputation, subject us to significant civil or criminal liability and require us to incur significant technical, legal and other expenses.

Potential strategic transactions.

We may consider potential strategic transactions, including acquisitions, dispositions, mergers, joint ventures and similar transactions. These transactions may not be effective and could result in decreased earnings and harm to our competitive position. In addition, these transactions, if undertaken, may involve a number of risks and present financial, managerial and operational challenges. Furthermore, strategic transactions may require us to increase our leverage or, if we issue shares to fund an acquisition, would dilute the holdings of the existing stockholders. Any of the above could cause us to fail to realize the benefits anticipated from any such transaction.

Changes in accounting standards.

Our consolidated financial statements are prepared in accordance with U.S. GAAP, the principles of which are revised from time to time. Accordingly, from time to time we are required to adopt new or revised accounting standards issued by recognized authoritative bodies, including the Financial Accounting Standards Board (“FASB”). We may not be able to predict or assess the effects of these new accounting pronouncements or new interpretations of existing accounting pronouncements, and they may have material adverse effects on our business, results of operations or financial condition. For a discussion of accounting pronouncements and their potential impact on our business, including Accounting Standards Update 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, see Note 2 of the Notes to these Consolidated Financial Statements.

Our investment advisory agreements with clients, and our selling and distribution agreements with various financial intermediaries and consultants, are subject to termination or non-renewal on short notice.

AB derives most of its revenues pursuant to written investment management agreements (or other arrangements) with institutional investors, mutual funds and private wealth clients, and selling and distribution agreements with financial intermediaries that distribute AB funds.. In addition, as part of our variable annuity products, EIMG enters into written investment management agreements (or other arrangements) with mutual funds. Generally, these investment management agreements (and other arrangements) are terminable without penalty at any time or upon relatively short notice by either party. In addition, the investment management agreements pursuant to which AB and EIMG manage an SEC-registered investment company (a “RIC”) must be renewed and approved by the RIC’s boards of directors (including a majority of the independent directors) annually. Consequently, there can be no assurance that the board of directors of each RIC will approve the investment management agreement each year or will not condition its approval on revised terms that may be adverse to us.

58

Similarly, we enter into selling and distribution agreements with various financial intermediaries that are terminable by either party upon notice (generally 60 days) and do not obligate the financial intermediary to sell any specific amount of our products. These intermediaries generally offer their clients investment products that compete with our products. In addition, certain institutional investors rely on consultants to advise them about choosing an investment adviser and some of AB’s services may not be considered among the best choices by these consultants. As a result, investment consultants may advise their clients to move their assets invested with AB to other investment advisers, which could result in significant net outflows.

The replacement of LIBOR may affect our cost of capital and net investment income.

It is anticipated that LIBOR will be discontinued no later than June 2023 As a result, existing loans, investments and other contracts relying on a LIBOR benchmark will need to designate a replacement rate. In addition, derivatives and other contracts used to hedge those contracts will generally need to be conformed to provide a similar alternative rate to that being hedged. In addition, because it is anticipated that banks will no longer extend loans based on LIBOR, new lines of credit we enter into will need to be benchmarked to a new benchmark rate. In light of the LIBOR transition, we anticipate a valuation risk around the potential discontinuation event as well as potential risks relating to hedging interest-rate risk. Additionally, the elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates may adversely affect the amount of interest payable or interest receivable on certain of our investments. These changes may also impact the market liquidity and market value of these investments. Any changes to LIBOR or any alternative rate, or any further uncertainty in relation to the timing and manner of implementation of such changes, could have an adverse effect on the value of investments in our investment portfolio, derivatives we use for hedging, or other indebtedness, securities or commercial contracts. We have inventoried all aspects of our business that utilize a LIBOR benchmark and, for those instruments that currently do not have an appropriate fallback rate, we are in the process of either disposing of the instrument or negotiating a fallback rate. There is no assurance that we will complete this process by the transition date or that the alternative rate we negotiate will not be materially less favorable than the previous, LIBOR-based rate.

Climate change may adversely affect our investment portfolio and investor sentiment.

Climate change could pose a systemic risk to the financial system. Disasters related to climate change and regulation related to climate change may affect the entities in which we invest, our willingness to continue to invest and the value of, and return from, our investments. It may also affect our counterparties, including reinsurers and derivatives counterparties. We cannot predict the long-term impacts to our business from climate change or related regulation. Climate change may also influence investor sentiment with respect to the Company and investments in our portfolio. A failure to identify and address these issues could have a material adverse effect on our business, results of operations or financial condition.

Risks Relating to Credit, Counterparties and Investments

Our counterparties’ requirements to pledge collateral related to declines in estimated fair value of derivative contracts.

We use derivatives and other instruments to help us mitigate various business risks. Our transactions with financial and other institutions generally specify the circumstances under which the parties are required to pledge collateral related to any decline in the market value of the derivatives contracts. If our counterparties fail or refuse to honor their obligations under these contracts, we could face significant losses to the extent collateral agreements do not fully offset our exposures and our hedges of the related risk will be ineffective. Such failure could have a material adverse effect on our business, results of operations or financial condition.

Changes in the actual or perceived soundness or condition of other financial institutions and market participants.

A default by any financial institution or by a sovereign could lead to additional defaults by other market participants. Such failures could disrupt securities markets or clearance and settlement systems and lead to a chain of defaults, because the commercial and financial soundness of many financial institutions may be closely related as a result of credit, trading, clearing or other relationships. Even the perceived lack of creditworthiness of a financial institution may lead to market-wide liquidity problems and losses or defaults by us or by other institutions. This risk is sometimes referred to as “systemic risk” and may adversely affect financial intermediaries with which we interact on a daily basis. Systemic risk could have a material adverse effect on our ability to raise new funding and on our business, results of operations or financial condition. In addition, such a failure could impact future product sales as a potential result of reduced confidence in the financial services industry.

Losses due to defaults by third parties and affiliates, including outsourcing relationships.

We depend on third parties and affiliates that owe us money, securities or other assets to pay or perform under their obligations. Defaults by one or more of these parties could have a material adverse effect on our business, results of operations

59

or financial condition. Moreover, as a result of contractual provisions certain swap dealers require us to add to derivatives documentation and to agreements, we may not be able to exercise default rights or enforce transfer restrictions against certain counterparties which may limit our ability to recover amounts due to us upon a counterparty’s default. We rely on various counterparties and other vendors to augment our existing investment, operational, financial and technological capabilities, but the use of a vendor does not diminish our responsibility to ensure that client and regulatory obligations are met. Disruptions in the financial markets and other economic

challenges may cause our counterparties and other vendors to experience significant cash flow problems or even render them insolvent, which may expose us to significant costs and impair our ability to conduct business. We are also subject to the risk that our rights against third parties may not be enforceable in all circumstances. The deterioration or perceived deterioration in the credit quality of third parties whose securities or obligations we hold could result in losses or adversely affect our ability to use those securities or obligations for liquidity purposes.

Economic downturns, defaults and other events may adversely affect our investments.

The occurrence of a major economic downturn, acts of corporate malfeasance, widening credit risk spreads, ratings downgrades or other events that adversely affect the issuers or guarantors of securities we own or the underlying collateral of structured securities we own could cause the estimated fair value of our fixed maturity securities portfolio and corresponding earnings to decline and cause the default rate of the fixed maturity securities in our investment portfolio to increase. We may have to hold more capital to support our securities to maintain our insurance companies’ RBC levels, should securities we hold suffer a ratings downgrade. Levels of write-downs or impairments are impacted by intent to sell, or our assessment of the likelihood that we will be required to sell, fixed maturity securities, as well as our intent and ability to hold equity securities which have declined in value until recovery. Realized losses or impairments on these securities may have a material adverse effect on our business, results of operations, liquidity or financial condition in, or at the end of, any quarterly or annual period.

Some of our investments are relatively illiquid and may be difficult to sell.

We hold certain investments that may lack liquidity, such as privately placed fixed maturity securities, mortgage loans, commercial mortgage backed securities and alternative investments. In the past, even some of our very high quality investments experienced reduced liquidity during periods of market volatility or disruption. If we were required to liquidate these investments on short notice or were required to post or return collateral, we may have difficulty doing so and be forced to sell them for less than we otherwise would have been able to realize. The reported values of our relatively illiquid types of investments do not necessarily reflect the current market price for the asset. If we were forced to sell certain of our assets in the current market, there can be no assurance that we would be able to sell them for the prices at which we have recorded them and we might be forced to sell them at significantly lower prices, which could have a material adverse effect on our business, results of operations, liquidity or financial condition.

Defaults on our mortgage loans and volatility in performance.

A portion of our investment portfolio consists of mortgage loans on commercial and agricultural real estate. Although we manage credit risk and market valuation risk for our commercial and agricultural real estate assets through geographic, property type and product type diversification and asset allocation, general economic conditions in the commercial and agricultural real estate sectors will continue to influence the performance of these investments. These factors, which are beyond our control, could have a material adverse effect on our business, results of operations, liquidity or financial condition. An increase in the default rate of our mortgage loan investments or fluctuations in their performance could have a material adverse effect on our business, results of operations, liquidity or financial condition. For information on the effects of the COVID-19 pandemic on our mortgage loans, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—General Account Investment Portfolio.”

Risks Relating to Our Retirement and Protection Businesses

Risks Relating to Reinsurance and Hedging

Our reinsurance and hedging programs.

We seek to mitigate some risks associated with the GMxB features or minimum crediting rate contained in certain of our retirement and protection products through our hedging and reinsurance programs. (As of December 31, 2021, 61% of the variable annuity AV in our Individual Retirement segment was attributable to products that included GMxB features.) However, these programs cannot eliminate all of the risks, and no assurance can be given as to the extent to which such programs will be completely effective in reducing such risks.

60

Reinsurance—We use reinsurance to mitigate a portion of the risks that we face, principally in certain of our in-force annuity and life insurance products. Under our reinsurance arrangements, other insurers assume a portion of the obligation to pay claims and related expenses to which we are subject. However, we remain liable as the direct insurer on all risks we reinsure and, therefore, are subject to the risk that our reinsurer is unable or unwilling to pay or reimburse claims at the time demand is made. The inability or unwillingness of a reinsurer to meet its obligations to us, or the inability to collect under our reinsurance treaties for any other reason, could have a material adverse impact on our business, results of operations or financial condition. Prolonged or severe adverse mortality or morbidity experience could result in increased reinsurance costs, and ultimately may reduce the availability of reinsurance for future life insurance sales. If, for new sales, we are unable to maintain our current level of reinsurance or purchase new reinsurance protection in amounts that we consider sufficient, we would either have to be willing to accept an increase in our net exposures, revise our pricing to reflect higher reinsurance premiums or limit the amount of new business written on any individual life. If this were to occur, we may be exposed to reduced profitability and cash flow strain or we may not be able to price new business at competitive rates. The premium rates and other fees that we charge are based, in part, on the assumption that reinsurance will be available at a certain cost. If a reinsurer raises the rates that it charges on a block of in-force business, we may not be able to pass the increased costs onto our customers and our profitability will be negatively impacted. Additionally, such a rate increase could result in our recapturing of the business, which may result in a need to maintain additional reserves, reduce reinsurance receivables and expose us to greater risks.

Hedging Programs—We use a hedging program to mitigate a portion of the unreinsured risks we face in, among other areas, the GMxB features of our variable annuity products and minimum crediting rates on our variable annuity and life products from unfavorable changes in benefit exposures due to movements in the capital markets. In certain cases, however, we may not be able to effectively apply these techniques because the derivatives markets in question may not be of sufficient size or liquidity or there could be an operational error in the application of our hedging strategy or for other reasons. The operation of our hedging programs is based on models involving numerous estimates and assumptions. There can be no assurance that ultimate actual experience will not differ materially from our assumptions, particularly, but not only, during periods of high market volatility, which could adversely impact our business, results of operations or financial condition. For example, in the past, due to, among other things, levels of volatility in the equity and interest rate markets above our assumptions as well as deviations between actual and assumed surrender and withdrawal rates, gains from our hedging programs did not fully offset the economic effect of the increase in the potential net benefits payable under the GMxB features offered in certain of our products. If these circumstances were to re-occur in the future or if, for other reasons, results from our hedging programs in the future do not correlate with the economic effect of changes in benefit exposures to customers, we could experience economic losses which could have a material adverse impact on our business, results of operations or financial condition. Additionally, our strategies may result in under or over-hedging our liability exposure, which could result in an increase in our hedging losses and greater volatility in our earnings and have a material adverse effect on our business, results of operations or financial condition. For further discussion, see “—Risks Relating to Estimates, Assumptions and Valuations—Our risk management policies and procedures.”

Our reinsurance arrangement with an affiliated captive.

The reinsurance arrangement with EQ AZ Life Re Company (the “Affiliated Captive”) provides important capital management benefits to Equitable Financial and Equitable America (collectively, the “Affiliated Cedants”). Under applicable statutory accounting rules, the Affiliated Cedants are currently, and will in the future be, entitled to a credit in their calculations of reserves for amounts reinsured to the Affiliated Captive, to the extent the Affiliated Captive hold assets in trust or provide letters of credit or other financing acceptable to the respective domestic regulators of the Affiliated Cedants. The level of assets required to be maintained in the trust fluctuates based on market and interest rate movements, age of the policies, mortality experience and policyholder behavior. Increasing reserve requirements may necessitate that additional assets be placed in trust or securing additional letters of credit, which could impact the liquidity of the Affiliated Captive.

Risks Relating to the Our Products, Our Structure and Product Distribution

GMxB features within certain of our products.

Certain of the variable annuity products we offer and certain in-force variable annuity products we offered historically, and certain variable annuity risks we assumed historically through reinsurance, include GMxB features. We also offer index-linked variable annuities with guarantees against a defined floor on losses. GMxB features are designed to offer protection to policyholders against changes in equity markets and interest rates. Any such periods of significant and sustained negative or low Separate Accounts returns, increased equity volatility or reduced interest rates will result in an increase in the valuation of our liabilities associated with those products. In addition, if the Separate Account assets consisting of fixed income securities, which support the guaranteed index-linked return feature, are insufficient to reflect a period of sustained growth in the equity-index on which the product is based, we may be required to support such Separate Accounts with assets from our General

61

Account and increase our liabilities. An increase in these liabilities would result in a decrease in our net income and depending on the magnitude of any such increase, could materially and adversely affect our financial condition, including our capitalization, as well as the financial strength ratings which are necessary to support our product sales.

Additionally, we make assumptions regarding policyholder behavior at the time of pricing and in selecting and using the GMxB features inherent within our products. An increase in the valuation of the liability could result to the extent emerging and actual experience deviates from these policyholder option use assumptions. If we update our assumptions based on our actuarial assumption review, we could be required to increase the liabilities we record for future policy benefits and claims to a level that may materially and adversely affect our business, results of operations or financial condition which, in certain circumstances, could impair our solvency. In addition, we have in the past updated our assumptions on policyholder behavior, which has negatively impacted our net income, and there can be no assurance that similar updates will not be required in the future.

In addition, hedging instruments may not effectively offset the costs of GMxB features or may otherwise be insufficient in relation to our obligations. Furthermore, we are subject to the risk that changes in policyholder behavior or mortality, combined with adverse market events, could produce economic losses not addressed by our risk management techniques. These factors, individually or collectively, may have a material adverse effect on our business, results of operations, including net income, capitalization, financial condition or liquidity including our ability to receive dividends from our insurance subsidiaries.

The amount of statutory capital that we have and the amount of statutory capital we must hold to meet our statutory capital requirements and our financial strength and credit ratings can vary significantly.

In any particular year, statutory surplus amounts and RBC ratios may increase or decrease depending on a variety of factors. Additionally, state insurance regulators have significant leeway in how to interpret existing regulations, which could further impact the amount of statutory capital or reserves that we must maintain. Equitable Financial is primarily regulated by the NYDFS, which from time to time has taken more stringent positions than other state insurance regulators on matters affecting, among other things, statutory capital or reserves. In certain circumstances, particularly those involving significant market declines, the effect of these more stringent positions may be that our financial condition appears to be worse than competitors who are not subject to the same stringent standards, which could have a material adverse impact on our business, results of operations or financial condition. Moreover, rating agencies may implement changes to their internal models that have the effect of increasing or decreasing the amount of capital our insurance subsidiaries must hold in order to maintain their current ratings. To the extent that our statutory capital resources are deemed to be insufficient to maintain a particular rating by one or more rating agencies, our insurance subsidiaries’ financial strength and credit ratings might be downgraded by one or more rating agencies. There can be no assurance that any of our insurance subsidiaries will be able to maintain its current RBC ratio in the future or that its RBC ratio will not fall to a level that could have a material adverse effect on our business, results of operations or financial condition.

The failure of any of our insurance subsidiaries to meet its applicable RBC requirements or minimum capital and surplus requirements could subject it to further examination or corrective action imposed by insurance regulators, including limitations on its ability to write additional business, supervision by regulators, rehabilitation, or seizure or liquidation. Any corrective action imposed could have a material adverse effect on our business, results of operations or financial condition. A decline in RBC ratios may limit the ability of an insurance subsidiary to make dividends or distributions to us, could result in a loss of customers or new business, and could be a factor in causing ratings agencies to downgrade the insurer’s financial strength ratings, each of which could have a material adverse effect on our business, results of operations or financial condition.

A downgrade in our financial strength and claims-paying ratings.

Claims-paying and financial strength ratings are important factors in establishing the competitive position of insurance companies. They indicate the rating agencies’ opinions regarding an insurance company’s ability to meet policyholder obligations and are important to maintaining public confidence in our products and our competitive position. A downgrade of our ratings or those of Equitable Financial, Equitable America or Holdings could adversely affect our business, results of operations or financial condition by, among other things, reducing new sales of our products, increasing surrenders and withdrawals from our existing contracts, possibly requiring us to reduce prices or take other actions for many of our products and services to remain competitive, or adversely affecting our ability to obtain reinsurance or obtain reasonable pricing on reinsurance. A downgrade in our ratings may also adversely affect our cost of raising capital or limit our access to capital.

State insurance laws limit the ability of our insurance subsidiaries to pay dividends and other distributions to Holdings.

The payment of dividends and other distributions to Holdings by its insurance subsidiaries, including its captive reinsurer, is regulated by state insurance laws and regulations. These restrictions may limit or prevent our insurance subsidiaries from making dividend or other payments to Holdings. These restrictions are based, in part, on earned surplus and the prior year’s

62

statutory income and policyholder surplus. In general, dividends may be paid only from earned surplus (typically defined as available or unassigned surplus, subject to possible adjustments) which is derived from realized net profits on the company’s business. Dividends up to specified levels are generally considered ordinary and generally may be made without prior regulatory approval. Meanwhile, dividends paid from sources other than earned surplus or in larger amounts, often called “extraordinary dividends,” are generally subject to approval by the insurance commissioner of the relevant state of domicile. In addition, certain states may prohibit the payment of dividends from other than the insurance company’s earned surplus. If any of our insurance subsidiaries subject to the positive earned surplus requirement do not succeed in building up sufficient positive earned surplus to have ordinary dividend capacity in future years, such subsidiary would be unable to pay dividends or distributions to our holding company, in certain cases, absent prior approval of its domiciliary insurance regulator. For further information on state insurance laws related to payments of dividends, see “Business—Regulation—Insurance Regulation—Holding Company and Shareholder Dividend Regulation.”

From time to time, the NAIC and various state insurance regulators have considered, and may in the future consider, proposals to further limit dividend payments that an insurance company may make without regulatory approval. For example, the NYDFS enacted Regulation 213. Due to a permitted statutory accounting practice agreed to with the NYDFS, Equitable Financial will need the prior approval of the NYDFS to pay the portion, if any, of any ordinary dividend that exceeds the ordinary dividend that Equitable Financial would be permitted to pay under New York insurance law absent the application of such permitted practice. If more stringent restrictions on dividend payments are adopted by jurisdictions in which our insurance subsidiaries are domiciled, such restrictions could have the effect of significantly reducing dividends or other amounts payable to Holdings by its insurance subsidiaries without prior approval by regulatory authorities. The ability of our insurance subsidiaries to pay dividends or make other distributions is also limited by our need to maintain the financial strength ratings assigned to such subsidiaries by the rating agencies. These ratings depend to a large extent on the capitalization levels of our insurance subsidiaries.

A loss of, or significant change in, key product distribution relationships.

We distribute certain products under agreements with third-party distributors and other members of the financial services industry that are not affiliated with us. We compete with other financial institutions to attract and retain commercial relationships in each of these channels. An interruption or significant change in certain key relationships could materially and adversely affect our ability to market our products and could have a material adverse effect on our business, results of operation or financial condition. Distributors may elect to alter, reduce or terminate their distribution relationships with us, including for such reasons as changes in our distribution strategy, adverse developments in our business, adverse rating agency actions or concerns about market-related risks. Alternatively, we may terminate one or more distribution agreements due to, for example, a loss of confidence in, or a change in control of, one of the third-party distributors, which could reduce sales.

We are also at risk that key distribution partners may merge or change their business models in ways that affect how our products are sold, either in response to changing business priorities or as a result of shifts in regulatory supervision or potential changes in state and federal laws and regulations regarding standards of conduct applicable to third-party distributors when providing investment advice to retail and other customers. Our key distribution relationships may also be adversely impacted by regulatory changes that increase the costs associated with marketing, or restrict the ability of distribution partners to receive sales and promotion related charges.

Risks Relating to Estimates, Assumptions and Valuations

Our risk management policies and procedures.

Our policies and procedures, including hedging programs, to identify, monitor and manage risks may not be adequate or fully effective. Many of our methods of managing risk and exposures are based upon our use of historical market behavior or statistics based on historical models. As a result, these methods may not predict future exposures, which could be significantly greater than the historical measures indicate. Other risk management methods depend upon the evaluation of information regarding markets, clients, catastrophe occurrence or other matters that is publicly available or otherwise accessible to us, which may not always be accurate, complete, up-to-date or properly evaluated. Management of operational, legal and regulatory risks requires, among other things, policies and procedures to record and verify large numbers of transactions and events. These policies and procedures may not be fully effective.

We employ various strategies to mitigate risks inherent in our business and operations. These risks include current or future changes in the fair value of our assets and liabilities, current or future changes in cash flows, the effect of interest rates, equity markets and credit spread changes, the occurrence of credit defaults and changes in mortality and longevity. We seek to control these risks by, among other things, entering into reinsurance contracts and through our hedging programs. Developing an effective strategy for dealing with these risks is complex, and no strategy can completely insulate us from such risks. Our

63

hedging strategies also rely on assumptions and projections that may prove to be incorrect or prove to be inadequate. Moreover definitions used in our derivatives contracts may differ from those used in the contract being hedged. For example, swap documents typically use SOFR as a fallback to LIBOR whereas corporate or municipal bonds or loans held by us may use different fallback rates. Accordingly, our hedging activities may not have the desired beneficial impact on our business, results of operations or financial condition. As U.S. GAAP accounting differs from the methods used to determine regulatory reserves and rating agency capital requirements, our hedging program tends to create earnings volatility in our U.S. GAAP financial statements. Further, the nature, timing, design or execution of our hedging transactions could actually increase our risks and losses. Our hedging strategies and the derivatives that we use, or may use in the future, may not adequately mitigate or offset the hedged risk and our hedging transactions may result in losses, including both losses based on the risk being hedged as well as losses based on the derivative. The terms of the derivatives and other instruments used to hedge the stated risks may not match those of the instruments they are hedging which could cause unpredictability in results.

Our reserves could be inadequate and product profitability could decrease due to differences between our actual experience and management’s estimates and assumptions.

Our reserve requirements for our direct and reinsurance assumed business are calculated based on a number of estimates and assumptions, including estimates and assumptions related to future mortality, morbidity, longevity, persistency, interest rates, future equity performance, reinvestment rates, claims experience and policyholder elections (i.e., the exercise or non-exercise of rights by policyholders under the contracts). The assumptions and estimates used in connection with the reserve estimation process are inherently uncertain and involve the exercise of significant judgment. We review the appropriateness of reserves and the underlying assumptions at least annually and, if necessary, update our assumptions as additional information becomes available. We cannot, however, determine with precision the amounts that we will pay for, or the timing of payment of, actual benefits and claims or whether the assets supporting the policy liabilities will grow to the level assumed prior to payment of benefits or claims. Our claim costs could increase significantly, and our reserves could be inadequate if actual results differ significantly from our estimates and assumptions. If so, we will be required to increase reserves or reduce DAC, which could materially and adversely impact our business, results of operations or financial condition. Future reserve increases in connection with experience updates could be material and adverse to the results of operations or financial condition of the Company. Future changes as a result of future assumptions reviews could require us to make material additional capital contributions to one or more of our insurance company subsidiaries or could otherwise materially and adversely impact our business, results of operations or financial condition and may negatively and materially impact our stock price.

Significant deviations in actual experience from our pricing assumptions could have an adverse effect on the profitability of our products. If actual persistency is significantly different from that assumed in our current reserving assumptions, our reserves for future policy benefits may prove to be inadequate. Although some of our variable annuity and life insurance products permit us to increase premiums or adjust other charges and credits during the life of the policy or contract, the adjustments permitted under the terms of the policies or contracts may not be sufficient to maintain profitability. Many of our variable annuity and life insurance products do not permit us to increase premiums or adjust other charges and credits or limit those adjustments during the life of the policy or contract. Even if we are permitted under the contract to increase premiums or adjust other charges and credits, we may not be able to do so due to litigation, point of sale disclosures, regulatory reputation and market risk or due to actions by our competitors. In addition, the development of a secondary market for life insurance could adversely affect the profitability of existing business and our pricing assumptions for new business.

We may be required to accelerate the amortization of DAC.

DAC represents policy acquisition costs that have been capitalized. Capitalized costs associated with DAC are amortized in proportion to actual and estimated gross profits, gross premiums or gross revenues depending on the type of contract. On an ongoing basis, we test the DAC recorded on our balance sheets to determine if the amount is recoverable under current assumptions. In addition, we regularly review the estimates and assumptions underlying DAC. The projection of estimated gross profits, gross premiums or gross revenues requires the use of certain assumptions, principally related to Separate Accounts fund returns in excess of amounts credited to policyholders, policyholder behavior such as surrender, lapse and annuitization rates, interest margin, expense margin, mortality, future impairments and hedging costs. Estimating future gross profits, gross premiums or gross revenues is a complex process requiring considerable judgment and the forecasting of events well into the future. If these assumptions prove to be inaccurate, if an estimation technique used to estimate future gross profits, gross premiums or gross revenues is changed, or if significant or sustained equity market declines occur or persist, we could be required to accelerate the amortization of DAC, which would result in a charge to earnings. Such adjustments could have a material adverse effect on our business, results of operations or financial condition.

Our financial models rely on estimates, assumptions and projections.

We use models in our hedging programs and many other aspects of our operations including, but not limited to, product

64

development and pricing, capital management, the estimation of actuarial reserves, the amortization of DAC, the fair value of the GMIB reinsurance contracts and the valuation of certain other assets and liabilities. These models rely on estimates, assumptions and projections that are inherently uncertain and involve the exercise of significant judgment. Due to the complexity of such models, it is possible that errors in the models could exist and our controls could fail to detect such errors. Failure to detect such errors could materially and adversely impact our business, results of operations or financial condition.

Subjectivity of the determination of the amount of allowances and impairments taken on our investments.

The determination of the amount of allowances and impairments varies by investment type and is based upon our evaluation of known and inherent risks associated with the respective asset class. Management updates its evaluations regularly and reflects changes in allowances and impairments in operations as such evaluations are revised. There can be no assurance that management’s judgments, as reflected in our financial statements, will ultimately prove to be an accurate estimate of the actual diminution in realized value. Historical trends may not be indicative of future impairments or allowances. Additional impairments may need to be taken or allowances provided for in the future that could have a material adverse effect on our business, results of operations or financial condition. Further, rapidly changing and unprecedented credit and equity market conditions could materially impact the valuation of securities as reported within our financial statements and the period-to-period changes in estimated fair value could vary significantly. Decreases in the estimated fair value of securities we hold may have a material adverse effect on our business, results of operations or financial condition.

Risks Relating to Our Investment Management and Research Business

AB’s revenues and results of operations depend on the market value and composition of AB’s AUM.

AB derives most of its revenues from investment advisory and services fees, which typically are calculated as a percentage of the value of AUM as of a specified date, or as a percentage of the value of average AUM for the applicable billing period, and vary with the type of investment service, the size of the account and the total amount of assets AB manages for a particular client. The value and composition of AB’s AUM can be adversely affected by several factors, including market factors, client preferences, AB’s investment performance, investing trends and service changes, including fee reductions. A decrease in the value of AB’s AUM, a decrease in the amount of AUM AB manages, an adverse mix shift in its AUM and/or a reduction in the level of fees AB charges would adversely affect AB’s investment advisory fees and revenues. A reduction in revenues, without a commensurate reduction in expenses, adversely affects AB’s and our business, results of operations or financial condition.

The industry-wide shift from actively-managed investment services to passive services.

AB’s competitive environment has become increasingly difficult over the past decade, as active managers, which invest based on individual security selection, have, on average, consistently underperformed passive services, which invest based on market indices. In this environment, organic growth through positive net inflows is difficult to achieve for active managers, such as AB, and requires taking market share from other active managers. The significant shift from active services to passive services adversely affects Bernstein Research Services revenues as well. Institutional global market trading volumes continue to be pressured (notwithstanding the heightened market volatility and trading volume predominately relating to COVID-19 in the first half of 2020) by persistent active equity outflows and passive equity inflows. As a result, portfolio turnover has declined, and investors hold fewer shares that are actively traded by managers.

AB’s reputation could suffer if it is unable to deliver consistent, competitive investment performance.

AB’s business is based on the trust and confidence of its clients. Damage to AB’s reputation, resulting from poor or inconsistent investment performance, among other factors, can reduce substantially AB’s AUM and impair its ability to maintain or grow its business.

Performance-based fee arrangements with AB’s clients cause greater fluctuations in its net revenues.

AB sometimes charges its clients performance-based fees, whereby it charges a base advisory fee and is eligible to earn an additional performance-based fee or incentive allocation that is calculated as either a percentage of absolute investment results or a percentage of investment results in excess of a stated benchmark over a specified period of time. Some performance-based fees include a high-watermark provision, which generally provides that if a client account under-performs relative to its performance target (whether in absolute terms or relative to a specified benchmark), it must gain back such under-performance before AB can collect future performance-based fees. Therefore, if AB fails to achieve the performance target for a particular period, AB will not earn a performance-based fee for that period and, for accounts with a high-watermark provision, AB’s ability to earn future performance-based fees will be impaired.

The revenues generated by Bernstein Research Services and AB’s broker-dealers may be adversely affected by

65

circumstances beyond our control.

Electronic, or “low-touch,” trading represents a significant percentage of buy-side trading activity and typically produces transaction fees that are significantly lower than the price of traditional full service fee rates. As a result, blended pricing throughout our industry is lower now than it was historically, and price declines may continue. In addition, fee rates we charge and charged by other brokers for brokerage services have historically experienced price pressure, and we expect these trends to continue. Also, while increases in transaction volume and market share often can offset decreases in rates, this may not continue. In addition, the failure or inability of any of AB’s broker-dealer’s significant counterparties to perform could expose AB to substantial expenditures and adversely affect its revenues. For example, SCB LLC, as a member of clearing and settlement organizations, would be required to settle open trades of any non-performing counterparty. This exposes AB to the mark-to-market adjustment on the trades between trade date and settlement date, which could be significant, especially during periods of severe market volatility. Also, AB’s ability to access liquidity in such situations may be limited by what its funding relationships are able to offer us at such times.

AB’s seed capital investments are subject to market risk.

AB has a seed investment program for the purpose of building track records and assisting with the marketing initiatives pertaining to its new products. These seed capital investments are subject to market risk. AB’s risk management team oversees a seed hedging program that attempts to minimize this risk, subject to practical and cost considerations. Also, not all seed investments are deemed appropriate to hedge, and in those cases AB is exposed to market risk. In addition, AB may be subject to basis risk in that it cannot always hedge with precision its market exposure and, as a result, AB may be subject to relative spreads between market sectors. As a result, volatility in the capital markets may cause significant changes in its period-to-period financial and operating results.

AB uses various derivative instruments in conjunction with its seed hedging program. While in most cases broad market risks are hedged, AB’s hedges are imperfect, and some market risk remains. In addition, AB’s use of derivatives results in counterparty risk (i.e., the risk that AB may be exposed to credit-related losses in the event of non-performance by counterparties to these derivative instruments), regulatory risk (e.g., short selling restrictions) and cash/synthetic basis risk (i.e., the risk that underlying positions do not move identically to the related derivative instruments).

AB may not accurately value the securities it holds on behalf of its clients or its company investments.

In accordance with applicable regulatory requirements, contractual obligations or client direction, AB employs procedures for the pricing and valuation of securities and other positions held in client accounts or for company investments. AB has established a valuation committee, which oversees pricing controls and valuation processes. If market quotations for a security are not readily available, the valuation committee determines a fair value for the security.

Extraordinary volatility in financial markets, significant liquidity constraints or AB’s failure to adequately consider one or more factors when determining the fair value of a security based on information with limited market observability could result in AB failing to properly value securities AB holds for its clients or investments accounted for on its balance sheet. Improper valuation likely would result in AB basing fee calculations on inaccurate AUM figures, striking incorrect net asset values for company-sponsored mutual funds or hedge funds or, in the case of company investments, inaccurately calculating and reporting AB’s financial condition and operating results. Although the overall percentage of AB’s AUM that it fair values based on information with limited market observability is not significant, inaccurate fair value determinations can harm AB’s clients, create regulatory issues and damage its reputation.

AB may not have sufficient information to confirm or review the accuracy of valuations provided to it by underlying external managers for the funds in which certain of its alternative investment products invest.

Certain of AB’s alternative investment services invest in funds managed by external managers (“External Managers”) rather than investing directly in securities and other instruments. As a result, AB’s ability will be limited with regard to (i) monitoring such investments, (ii) regularly obtaining complete, accurate and current information with respect to such investments and (iii) exercising control over such investments. Accordingly, AB may not have sufficient information to confirm or review the accuracy of valuations provided to it by External Managers. In addition, AB will be required to rely on External Managers’ compliance with any applicable investment guidelines and restrictions. Any failure of an External Manager to operate within such guidelines or to provide accurate information with respect to the investment could subject AB’s alternative investment products to losses and cause damage to its reputation.

The quantitative and systematic models AB uses in certain of its investment services may contain errors.

AB uses quantitative and systematic models in a variety of its investment services, generally in combination with

66

fundamental research. These models are developed by senior quantitative professionals and typically are implemented by IT professionals. AB’s model risk oversight committee oversees the model governance framework and associated model review activities, which are then executed by AB’s model risk team. However, due to the complexity and large data dependency of such models, it is possible that errors in the models could exist and AB’s controls could fail to detect such errors. Failure to detect errors could result in client losses and reputational damage.

AB may not successfully manage actual and potential conflicts of interest that arise in its business.

Increasingly, AB must manage actual and potential conflicts of interest, including situations where its services to a particular client conflict, or are perceived to conflict, with the interests of another client. Failure to adequately address potential conflicts of interest could adversely affect AB’s reputation, results of operations and business prospects. AB’s reputation could be damaged and the willingness of clients to enter into transactions in which such a conflict might arise may be affected if AB fails, or appears to fail, to deal appropriately with actual or perceived conflicts of interest. In addition, potential or perceived conflicts could give rise to litigation or regulatory enforcement actions.

Changes in the partnership structure of AB Holding and ABLP or changes in the tax law governing partnerships would have significant tax ramifications.

AB Holding is a publicly traded partnership (“PTP”) for federal income tax purposes. In order to preserve AB Holding’s status as a PTP for federal income tax purposes, management seeks to ensure that AB Holding does not directly or indirectly (through ABLP) enter into a substantial new line of business. A “new line of business” includes any business that is not closely related to AB’s historical business of providing research and diversified investment management and related services to its clients. A new line of business is “substantial” when a partnership derives more than 15% of its gross income from, or directly uses more than 15% of its total assets (by value) in, the new line of business.

ABLP is a private partnership for federal income tax purposes and, accordingly, is not subject to federal and state corporate income taxes. In order to preserve ABLP’s status as a private partnership for federal income tax purposes, AB Units must not be considered publicly traded. If such units were to be considered readily tradable, ABLP would become subject to federal and state corporate income tax on its net income. If AB Holding and ABLP were to become subject to corporate income tax as set forth above, their net income and quarterly distributions to holders of their units would be materially reduced.

Legal and Regulatory Risks

We are heavily regulated.

We are heavily regulated, and regulators continue to increase their oversight over financial services companies. The adoption of new laws, regulations or standards and changes in the interpretation or enforcement of existing laws, regulations or standards have directly affected, and will continue to affect, our business, including making our efforts to comply more expensive and time-consuming. For additional information on regulatory developments and the risks we face, including the Dodd-Frank Act and regulation by the NAIC, see “Business—Regulation”.

Our retirement and protection business is subject to a complex and extensive array of state and federal tax, securities, insurance and employee benefit plan laws and regulations, which are administered and enforced by a number of different governmental and self-regulatory authorities, including, among others, state insurance regulators, state securities administrators, state banking authorities, the SEC, FINRA, the DOL and the IRS. Failure to administer our retirement and protections products in accordance with contract provisions or applicable law, or to meet any of these complex tax, securities or insurance requirements could subject us to administrative penalties imposed by a governmental or self-regulatory authority, unanticipated costs associated with remedying such failure or other claims, litigation, harm to our reputation or interruption of our operations.

Certain of our insurance subsidiaries are required to file periodic and other reports within certain time periods imposed by U.S. federal securities laws, rules and regulations. Failure to file such reports within the designated time period or failure to accurately report our financial condition or results of operations could require these insurance subsidiaries to curtail or cease sales of certain of our products or delay the launch of new products or new features, which could cause a significant disruption in the business of our insurance subsidiaries. If our affiliated and third-party distribution platforms are required to curtail or cease sales of our products, we may lose shelf space for our products indefinitely, even once we are able to resume sales.

We currently use a captive reinsurer as part of our capital management strategy. Any regulatory action that limits our ability to achieve desired benefits from the use of or materially increases our cost of using captive reinsurance and applies retroactively, without grandfathering provisions for existing captive variable annuity reinsurance entities, could have a material adverse effect on our financial condition or results of operations.

67

Virtually all aspects of our investment management and research business are subject to federal and state laws and regulations, rules of securities regulators and exchanges, and laws and regulations certain foreign jurisdictions in which we conduct business. If we violate these laws or regulations, we could be subject to civil liability, criminal liability or sanction, including restriction or revocation of our professional licenses or registrations or our ability to serve as an investment adviser to registered investment companies or as a qualified professional asset manager for employee benefit plans, revocation of the licenses of our employees, censures, fines, restrictions from relying on the issuance safe harbor of Regulation D under the Securities Act when issuing securities or causing our clients not to be able to rely on Regulation D if we act as an investment adviser, placement agent or promoter for the client or to refers clients to private funds or temporary suspension or permanent bar from conducting business. Any such liability or sanction could have a material adverse effect on our business, results of operations or financial condition. A regulatory proceeding could require substantial expenditures of time and money, trigger termination or default rights under contracts to which we are a party and could potentially damage our reputation.

In addition, regulators have imposed and may continue to impose new requirements or issue new guidance aimed at addressing or mitigating climate change-related risks. These emerging regulatory initiatives, or any policies adopted by investors to address changing societal perceptions on climate change, could result in increased compliance cost to our businesses and changes to our corporate governance and risk management practices.

Changes in U.S. tax laws and regulations or interpretations thereof.

Changes in tax laws and regulations or interpretations of such laws, including U.S. tax reform, could increase our corporate taxes and reduce our earnings. Changes may increase our effective tax rate or have implications that make our products less attractive to consumers. Tax authorities may enact laws, change regulations to increase existing taxes, or add new types of taxes and authorities who have not imposed taxes in the past, may impose additional taxes. Any such changes may harm our business, results of operations or financial condition.

Legal proceedings and regulatory actions.

A number of lawsuits and regulatory inquiries have been filed or commenced against us and other financial services companies in the jurisdictions in which we do business. Some of these matters have resulted in the award of substantial fines and judgments, including material amounts of punitive damages, or in substantial settlements. We face a significant risk of, and from time to time we are involved in, such actions and proceedings, including class action lawsuits. The frequency of large damage awards, including large punitive damage awards and regulatory fines that bear little or no relation to actual economic damages incurred, continues to create the potential for an unpredictable judgment in any given matter. In addition, investigations or examinations by federal and state regulators and other governmental and self-regulatory agencies could result in legal proceedings (including securities class actions and stockholder derivative litigation), adverse publicity, sanctions, fines and other costs. A substantial legal liability or a significant federal, state or other regulatory action against us, as well as regulatory inquiries or investigations, may divert management’s time and attention, could create adverse publicity and harm our reputation, result in material fines or penalties, result in significant expense, including legal and settlement costs, and otherwise have a material adverse effect on our business, results of operations or financial condition. For information regarding legal proceedings pending against us, see Note 17 of the Notes to these Consolidated Financial Statements.

Risks Relating to Our Common Stock

Certain provisions in our amended and restated certificate of incorporation and amended and restated by-laws.

Our amended and restated certificate of incorporation and our amended and restated by-laws include a number of provisions that may discourage, delay or prevent a change in our management or prevent a takeover attempt that stockholders may consider favorable. These provisions may prevent our stockholders from receiving the benefit from any premium to the market price of our common stock offered in a takeover context or may even adversely affect the price of our common stock if the provisions discourage takeover attempts. Our amended and restated certificate of incorporation and amended and restated by-laws may also make it difficult for stockholders to replace or remove our management.

We have designated a sole and exclusive forum for certain litigation that may be initiated by our stockholders.

Our amended and restated certificate of incorporation provides that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware is, to the fullest extent permitted by law, be the sole and exclusive forum for a number of actions. Notwithstanding the foregoing, the exclusive provision shall not preclude or contract the scope of exclusive federal or concurrent jurisdiction for actions brought under the Exchange Act or the Securities Act or the respective rules and regulations promulgated thereunder.

General Risks

68

Competition from other insurance companies, banks, asset managers and other financial institutions.

We face strong competition from others offering the types of products and services we provide. It is difficult to provide unique retirement and protection or asset management products because, once such products are made available to the public, they often are reproduced and offered by our competitors. If competitors charge lower fees for similar products or services, we may decide to reduce the fees on our own products or services in order to retain or attract customers.

Competition may adversely impact our market share and profitability. Many of our competitors are large and well-established and some have greater market share or breadth of distribution, offer a broader range of products, services or features, assume a greater level of risk, have greater financial resources, have higher claims-paying or credit ratings, have better brand recognition or have more established relationships with clients than we do. We also face competition from new market entrants or non-traditional or online competitors, many of whom are leveraging digital technology that may challenge the position of traditional financial service companies. Due to the competitive nature of the financial services industry, there can be no assurance that we will continue to effectively compete within the industry or that competition will not materially and adversely impact our business, results of operations or financial condition.

Our information systems may fail or their security may be compromised.

Our business is highly dependent upon the effective operation of our information systems and those of our vendors on which our business operations rely. Although we have implemented a formal, risk-based data security and cybersecurity program to mitigate potential risk, our information systems and those of our vendors and service providers may nevertheless be vulnerable to physical or cyber-attacks, computer viruses and malicious code, or other computer related attacks, programming errors and similar disruptive problems which may not be immediately detected. The failure of these systems could cause significant interruptions to our operations, which could result in a material adverse effect on our business, results of operations or financial condition or reputational harm. In addition, a failure of these systems could lead to the possibility of litigation or regulatory investigations or actions, including regulatory actions by state and federal governmental authorities.

Protecting our intellectual property.

We rely on a combination of contractual rights, copyright, trademark and trade secret laws to establish and protect our intellectual property. Third parties may infringe or misappropriate our intellectual property. The loss of intellectual property protection or the inability to secure or enforce the protection of our intellectual property assets could have a material adverse effect on our business and our ability to compete. Third parties may have, or may eventually be issued, patents or other protections that could be infringed by our products, methods, processes or services or could limit our ability to offer certain product features. If we were found to have infringed or misappropriated a third-party patent or other intellectual property right, we could in some circumstances be enjoined from providing certain products or services to our customers or from using and benefiting from certain patents, copyrights, trademarks, trade secrets or licenses. Alternatively, we could be required to enter into costly licensing arrangements with third parties or implement a costly alternative. Any of these scenarios could harm our reputation and have a material adverse effect on our business, results of operations or financial condition.

Part I, Item 1B.

UNRESOLVED STAFF COMMENTS

None.

Part I, Item 2.

PROPERTIES

Our principal executive offices at 1290 Avenue of the Americas, New York, New York are occupied pursuant to a lease that extends to 2023. We have entered into a 15-year lease agreement in New York, New York at 1345 Avenue of the Americas that is expected to commence in 2023. We also have the following significant office space leases in Syracuse, NY, under a lease that expires in 2023, which was amended to extend a portion of the space through 2028; Jersey City, NJ, under a lease that expires in 2023, and Charlotte, NC, under a lease that expires in 2028.

AB’s principal executive offices at 501 Commerce Street, Nashville, TN are occupied pursuant to a 15-year lease that commenced during the fourth quarter of 2020. In addition, AB leases office space at 1345 Avenue of the Americas, New York, NY pursuant to a lease expiring in 2024. Also, AB entered into a 20-year lease agreement in New York, NY at 66 Hudson

69

Boulevard that is expected to commence in 2024. AB also leases space in San Antonio, TX under a lease expiring in 2029. In addition, AB leases modest space in 23 other cities in the United States and AB’s subsidiaries lease space in 30 cities outside the United States, the most significant of which are in London and Hong Kong.

Part I, Item 3.

LEGAL PROCEEDINGS

For information regarding certain legal proceedings pending against us, see Note 17 of the Notes to these Consolidated Financial Statements. See “Risk Factors—Legal and Regulatory Risks—Legal proceedings and regulatory actions.”

Part I, Item 4.

MINE SAFETY DISCLOSURES

Not Applicable.

Part II, Item 5.

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

General

Our common stock, par value $0.01 per share, began trading on the NYSE under the symbol “EQH” on May 10, 2018. As of January 31, 2022, there were nine shareholders of record, which differs from the number of beneficial owners of our common stock.

Dividends

The declaration, payment and amount of future dividends is subject to the discretion of our Board of Directors and depends on our financial condition, results of operations, cash requirements, future prospects, regulatory restrictions on the payment of dividends by Holdings’ insurance subsidiaries and other factors deemed relevant by the Board. The payment of dividends will be substantially restricted in the event that we do not declare and pay (or set aside) dividends on the Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock, for the last proceeding dividend period. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Dividends Declared and Paid” for further information regarding common stock dividends.

Purchases of Equity Securities by the Issuer

The following table summarizes Holdings’ repurchases of its common stock during the three months ended December 31, 2021.

Period	Total Number of Shares (or Units) Purchased	Average Price Paid per Share (or Unit)		Total Number of Shares (or Units) Purchased as Part of Publicly Announced Programs	Approximate Dollar Value of Shares (or Units) that May Yet Be Purchased Under the Program (1)
Month #1 (October 1-31)	—	$	—	—	$	461,592,672
Month #2 (November 1-30)	6,479,103	$	33.44	6,479,103	$	263,707,822
Month #3 (December 1-31)	7,134,993	$	32.30	7,134,993	$	5,243,868
Total	13,614,096	$	32.84	13,614,096	$	5,243,868

_____________

(1)See Note 20 of the Notes to these Consolidated Financial Statements for the Share Repurchase program.

Holdings may choose to suspend or discontinue the repurchase program at any time. The repurchase program does not obligate Holdings to purchase any particular number of shares. During the three months ended December 31, 2021, the Company repurchased approximately $14 million shares of its common stock, at a total cost of approximately $447 million. The repurchased common stock was recorded as treasury stock in the consolidated balance sheets.

Stock Performance Graph

The graph and table below present Holdings’ cumulative total shareholder return relative to the performance of: (1) the Standard & Poor’s 500 Index; (2) the Standard & Poor’s 500 Insurance Index; and (3) the Standard & Poor’s 500 Financials Index, respectively, for the year ended December 31, 2021, commencing May 14, 2018 (our initial day of “regular-way” trading on the NYSE). All values assume a $100 initial investment in the Holdings’ common stock on the NYSE and data for each of the Standard & Poor’s 500 Index, the Standard & Poor’s 500 Insurance Index and the Standard & Poor’s 500 Financials Index assume all dividends were reinvested on the date paid. The points on the graph and the values in the table represent quarter-end values based on the last trading day of each quarter. The comparisons are based on historical data and are not indicative of, nor intended to forecast, the future performance of our common stock.

	May 14, 2018		Jun 30, 2018		Sep 30, 2018		Dec 31, 2018		Mar 31, 2019		Jun 30, 2019		Sep 30, 2019		Dec 31, 2019
Equitable Holdings, Inc.	$	100.00	$	96.35	$	100.86	$	78.71	$	95.93	$	100.28	$	107.11	$	120.53
S&P 500	$	100.00	$	99.93	$	107.63	$	93.08	$	105.79	$	110.34	$	112.21	$	122.39
S&P 500 Financials	$	100.00	$	94.40	$	98.51	$	85.59	$	92.92	$	100.35	$	102.37	$	113.09
S&P 500 Insurance	$	100.00	$	95.88	$	102.59	$	91.70	$	103.47	$	115.60	$	117.15	$	118.64

71

	Mar 31, 2020		Jun 30, 2020		Sep 30, 2020		Dec 31, 2020		Mar 31, 2021		Jun 30, 2021		Sep 30, 2021		Dec 31, 2021
Equitable Holdings, Inc.	$	70.48	$	94.93	$	90.47	$	127.79	$	163.81	$	153.77	$	150.52	$	169.33
S&P 500	$	98.30	$	118.49	$	129.07	$	144.74	$	153.66	$	166.80	$	167.77	$	183.22
S&P 500 Financials	$	85.03	$	97.50	$	100.52	$	118.38	$	130.98	$	137.90	$	144.64	$	155.02
S&P 500 Insurance	$	76.98	$	86.37	$	90.21	$	111.13	$	128.80	$	139.58	$	143.40	$	150.98

Part II, Item 6. RESERVED

Part II, Item 7.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with “Selected Financial Data” and our annual financial statements included elsewhere herein. In addition to historical data, this discussion contains forward-looking statements about our business, operations and financial performance based on current expectations that involve risks, uncertainties and assumptions. Actual results may differ materially from those discussed in the forward-looking statements as a result of various factors. Factors that could or do contribute to these differences include those factors discussed below and elsewhere in this Form 10-K, particularly under the captions “Risk Factors” and “Note Regarding Forward-Looking Statements and Information.”

Executive Summary

Overview

We are one of America’s leading financial services companies, providing: (i) advice and solutions for helping Americans set and meet their retirement goals and protect and transfer their wealth across generations; and (ii) a wide range of investment management insights, expertise and innovations to drive better investment decisions and outcomes for clients worldwide.

We manage our business through four segments: Individual Retirement, Group Retirement, Investment Management and Research, and Protection Solutions. We report certain activities and items that are not included in these segments in Corporate and Other. See Note 19 of the Notes to these Consolidated Financial Statements for further information on our segments.

We benefit from our complementary mix of businesses. This business mix provides diversity in our earnings sources, which helps offset fluctuations in market conditions and variability in business results, while offering growth opportunities.

Reinsurance of Legacy Variable Annuity Block and Sale of Runoff Variable Annuity Reinsurance Entity

On June 1, 2021, Holdings completed the sale of CS Life to VIAC pursuant to the Master Transaction Agreement, among the Company, VIAC and, solely with respect to Article XIV thereof, Venerable.

Pursuant to the Master Transaction Agreement, immediately prior to the closing of the Venerable Transaction, CS Life effected the recapture of all of the business that was ceded to the Reinsurance Subsidiary, and sold 100% of the equity of the Reinsurance Subsidiary to another wholly owned subsidiary of the Company. Immediately following the closing of the Venerable Transaction, CS Life and Equitable Financial entered into a the Reinsurance Agreement, pursuant to which Equitable Financial ceded to CS Life, on a combined coinsurance and modified coinsurance basis the Block, comprised of non-New York “Accumulator” policies containing fixed rate Guaranteed Minimum Income Benefit and/or Guaranteed Minimum Death Benefit guarantees.

In addition, upon the completion of the Venerable Transaction, EIMG acquired an approximate 9.09% equity interest in Venerable’s parent holding company, VA Capital Company LLC. In connection with such investment, EIMG designated a member to the Board of Managers of VA Capital Company LLC.

COVID-19 Impact

We continue to closely monitor developments related to the COVID-19 pandemic. The COVID-19 pandemic has negatively impacted the U.S. and global economies and financial markets continue to experience significant volatility as the pandemic evolves. As a financial services company, factors such as the volatility and strength of equity markets, interest rates,

72

consumer spending, and government debt and spending all affect the business and economic environment and, ultimately, the amount and profitability of our business. The ongoing economic impact and the potential for continued volatility and declines in the capital markets could have a significant adverse effect on our business, results of operations and financial condition, particularly if economic activity and financial markets do not recover or recover slowly.

The pandemic and related economic impacts could adversely affect demand for our products and services and our investment returns. The profitability of many of our retirement, protection and investment products depends in part on the value of the AUM supporting them, which could decline substantially depending on any of the foregoing conditions. In addition, the growing number of COVID-19 related deaths could have an adverse effect on our insurance business due to increased mortality and morbidity rates. To date, COVID-19 related impacts, including adverse mortality experience, have been manageable and below initial expectations.

Efforts to prevent the spread of COVID-19 have affected our business directly in a number of ways, including through the temporary closures of many businesses and schools and the institution of social distancing requirements in many states and local communities. In response to the pandemic, we have adapted our processes to meet client needs. For example, we modified our underwriting policies to offer a fluid-less, touchless process to help more clients access the protection they need. In addition, we accelerated our digital adoption programs, leading to improved outcomes for clients, advisors, and the Company. Given the challenges over the last year our advisors have faced in engaging with our educator clients, we have developed digital tools and enhanced our remote engagement, which is resulting in improved retention and increases in retirement plan contributions.

While the COVID-19 pandemic significantly affected the capital markets and economy, we believe the actions we have previously taken help assure that our economic balance sheet is protected from interest rate and equity declines. These actions include redesigning our product portfolio to concentrate on offering less capital intensive products and implementing a hedging strategy that manages and protects against the economic risks associated with our in-force GMxB products. In addition to our hedging strategy, we employ various other methods to manage the risks of our in-force variable annuity products, including reinsurance, asset-liability matching, volatility management tools within the Separate Accounts and an active in-force management program, including buyout offers for certain products. Due to the General Account’s exposure to U.S. government bonds and credit quality of the portfolio, we feel that our balance sheet is well positioned to withstand the extreme volatility in the capital markets.

While the COVID-19 pandemic has negatively impacted our business and financial results, the extent and nature of its full financial impact cannot reasonably be estimated at this time due to developments that are still highly uncertain, including the severity and duration of the pandemic, actions taken by governmental authorities and other third parties in response to the pandemic and the availability and efficacy of vaccines against COVID-19 and its variants. For additional information regarding the potential impacts of the COVID-19 pandemic, see “Risk Factors—Risks Relating to Conditions in the Financial Markets and Economy—The coronavirus (COVID-19) pandemic.”

Revenues

Our revenues come from three principal sources:

•fee income derived from our retirement and protection products and our investment management and research services;

•premiums from our traditional life insurance and annuity products; and

•investment income from our General Account investment portfolio.

Our fee income varies directly in relation to the amount of the underlying AV or benefit base of our retirement and protection products and the amount of AUM of our Investment Management and Research business. AV and AUM, each as defined in “Key Operating Measures,” are influenced by changes in economic conditions, primarily equity market returns, as well as net flows. Our premium income is driven by the growth in new policies written and the persistency of our in-force policies, both of which are influenced by a combination of factors, including our efforts to attract and retain customers and market conditions that influence demand for our products. Our investment income is driven by the yield on our General Account investment portfolio and is impacted by the prevailing level of interest rates as we reinvest cash associated with maturing investments and net flows to the portfolio.

73

Benefits and Other Deductions

Our primary expenses are:

•policyholders’ benefits and interest credited to policyholders’ account balances;

•sales commissions and compensation paid to intermediaries and advisors that distribute our products and services; and

•compensation and benefits provided to our employees and other operating expenses.

Policyholders’ benefits are driven primarily by mortality, customer withdrawals, and benefits which change in response to changes in capital market conditions. In addition, some of our policyholders’ benefits are directly tied to the AV and benefit base of our variable annuity products. Interest credited to policyholders varies in relation to the amount of the underlying AV or benefit base. Sales commissions and compensation paid to intermediaries and advisors vary in relation to premium and fee income generated from these sources, whereas compensation and benefits to our employees are more constant and impacted by market wages and decline with increases in efficiency. Our ability to manage these expenses across various economic cycles and products is critical to the profitability of our company.

Net Income Volatility

We have offered and continue to offer variable annuity products with GMxB features. The future claims exposure on these features is sensitive to movements in the equity markets and interest rates. Accordingly, we have implemented hedging and reinsurance programs designed to mitigate the economic exposure to us from these features due to equity market and interest rate movements. Changes in the values of the derivatives associated with these programs due to equity market and interest rate movements are recognized in the periods in which they occur while corresponding changes in offsetting liabilities not measured at fair value are recognized over time. This results in net income volatility as further described below. See “—Significant Factors Impacting Our Results—Impact of Hedging and GMxB Reinsurance on Results.”

In addition to our dynamic hedging strategy, we have static hedge positions designed to mitigate the adverse impact of changing market conditions on our statutory capital. We believe this program will continue to preserve the economic value of our variable annuity contracts and better protect our target variable annuity asset level. However, these static hedge positions increase the size of our derivative positions and may result in higher net income volatility on a period-over-period basis.

Due to the impacts on our net income of equity market and interest rate movements and other items that are not part of the underlying profitability drivers of our business, we evaluate and manage our business performance using Non-GAAP Operating Earnings, a non-GAAP financial measure that is intended to remove these impacts from our results. See “—Key Operating Measures—Non-GAAP Operating Earnings.”

Significant Factors Impacting Our Results

The following significant factors have impacted, and may in the future impact, our financial condition, results of operations or cash flows.

Impact of Hedging and GMxB Reinsurance on Results

We have offered and continue to offer variable annuity products with GMxB features. The future claims exposure on these features is sensitive to movements in the equity markets and interest rates. Accordingly, we have implemented hedging and reinsurance programs designed to mitigate the economic exposure to us from these features due to equity market and interest rate movements. These programs include:

•Variable annuity hedging programs. We use a dynamic hedging program (within this program, generally, we reevaluate our economic exposure at least daily and rebalance our hedge positions accordingly) to mitigate certain risks associated with the GMxB features that are embedded in our liabilities for our variable annuity products. This program utilizes various derivative instruments that are managed in an effort to reduce the economic impact of unfavorable changes in GMxB features’ exposures attributable to movements in the equity markets and interest rates. Although this program is designed to provide a measure of economic protection against the impact of adverse market conditions, it does not qualify for hedge accounting treatment. Accordingly, changes in value of the derivatives will be recognized in the period in which they occur with offsetting changes in reserves partially recognized in the current period, resulting in net income volatility. In addition to our dynamic hedging program, we have a hedging program using static hedge positions (derivative positions intended to be HTM with less frequent re-balancing) to protect our

74

statutory capital against stress scenarios. This program in addition to our dynamic hedge program has increased the size of our derivative positions, resulting in an increase in net income volatility. The impacts are most pronounced for variable annuity products in our Individual Retirement segment.

•GMxB reinsurance contracts. Historically, GMIB reinsurance contracts were used to cede to non-affiliated reinsurers a portion of our exposure to variable annuity products that offer a GMIB feature. We account for the GMIB reinsurance contracts as derivatives and report them at fair value. Gross GMIB reserves are calculated on the basis of assumptions related to projected benefits and related contract charges over the lives of the contracts. Accordingly, our gross reserves will not immediately reflect the offsetting impact on future claims exposure resulting from the same capital market or interest rate fluctuations that cause gains or losses on the fair value of the GMIB reinsurance contracts. Because changes in the fair value of the GMIB reinsurance contracts are recorded in the period in which they occur and a majority of the changes in gross reserves for GMIB are recognized over time, net income will be more volatile. In addition, on June 1, 2021, we ceded legacy variable annuity policies sold by Equitable Financial between 2006-2008 (the “Block”), comprised of non-New York “Accumulator” policies containing fixed rate GMIB and/or GMDB guarantees. As this contract provides full risk transfer and thus has the same risk attributes as the underlying direct contracts, the benefits of this treaty are accounted for in the same manner as the underlying gross reserves.

Effect of Assumption Updates on Operating Results

During the third quarter of each year, we conduct our annual review of the assumptions underlying the valuation of DAC, deferred sales inducement assets, unearned revenue liabilities, liabilities for future policyholder benefits and embedded derivatives for our Individual Retirement, Group Retirement, and Protection Solution segments (assumption reviews are not relevant for the Investment Management and Research segment). Assumptions are based on a combination of Company experience, industry experience, management actions and expert judgment and reflect our best estimate as of the date of the applicable financial statements.

Most of the variable annuity products, variable universal life insurance and universal life insurance products we offer maintain policyholder deposits that are reported as liabilities and classified within either Separate Accounts liabilities or policyholder account balances. Our products and riders also impact liabilities for future policyholder benefits and unearned revenues and assets for DAC and DSI. The valuation of these assets and liabilities (other than deposits) are based on differing accounting methods depending on the product, each of which requires numerous assumptions and considerable judgment. The accounting guidance applied in the valuation of these assets and liabilities includes, but is not limited to, the following: (i) traditional life insurance products for which assumptions are locked in at inception; (ii) universal life insurance and variable life insurance secondary guarantees for which benefit liabilities are determined by estimating the expected value of death benefits payable when the account balance is projected to be zero and recognizing those benefits ratably over the accumulation period based on total expected assessments; (iii) certain product guarantees for which benefit liabilities are accrued over the life of the contract in proportion to actual and future expected policy assessments; and (iv) certain product guarantees reported as embedded derivatives at fair value.

For further details of our accounting policies and related judgments pertaining to assumption updates, see Note 2 of the Notes to these Consolidated Financial Statements and “—Summary of Critical Accounting Estimates—Liability for Future Policy Benefits”.

Assumption Updates and Model Changes

We conduct our annual review of our assumptions and models during the third quarter of each year. We also update our assumptions as needed in the event we become aware of economic conditions or events that could require a change in our assumptions that we believe may have a significant impact to the carrying value of product liabilities and assets and consequently materially impact our earnings in the period of the change.

Impact of Assumption Updates and Model Changes on Income from Continuing Operations before income taxes and Net income (loss)

The table below presents the impact of our actuarial assumption update during 2021, 2020 and 2019 to our income (loss) from continuing operations, before income taxes and net income (loss).

75

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Impact of assumption update on Net income (loss):
Variable annuity product features related assumption update	$	(91)	$	(1,531)	$	(1,467)
Assumption updates for other business	(17)		(1,060)		76
Impact of assumption updates on Income (loss) from continuing operations, before income tax	(108)		(2,591)		(1,391)
Income tax benefit on assumption update	23		544		292
Net income (loss) impact of assumption update	$	(85)	$	(2,047)	$	(1,099)

2021 Assumption Updates

The impact of the assumption update during 2021 was a decrease of $108 million to income (loss) from continuing operations, before income taxes and a decrease to net income (loss) of $85 million. As part of this annual update completed as of September 30, 2021, the reference interest rate utilized in our GAAP fair value calculations was updated from the LIBOR swap curve to the US Treasury curve, which represents a reasonable proxy of the cost of funding the derivative positions backing our GMxB liabilities. Concurrently, our GAAP fair value liability risk margins were increased. which when considered with the change from LIBOR, resulted in an immaterial impact to overall valuation as our view regarding market participant pricing of our guarantees has not changed at the time of this update.

The net impact of this assumption update on income (loss) from continuing operations, before income taxes of $108 million consisted of a decrease in policy charges and fee income of $28 million, a decrease in policyholders’ benefits of $62 million, an increase in net derivative losses of $200 million and a decrease in the amortization of DAC of $58 million.

2020 Assumption Updates

Our annual review in 2020 resulted in the removal of the credit risk adjustment from our fair value scenario calibration to reflect our revised view of market participant practices, offset by updates to our mortality and policyholder behavior assumptions to reflect emerging experience.

In 2020, in addition to the annual review, we updated our assumptions in the first quarter due to the extraordinary economic conditions driven by the COVID-19 pandemic. The first quarter update included an update to the interest rate assumption to grade from the current interest rate environment at that time to an ultimate five-year historical average over a 10-year period. As such, the 10-year U.S. Treasury yield grades from the current level to an ultimate 5-year average of 2.25%.

The low interest rate environment and update to the interest rate assumption caused a loss recognition event for our life interest-sensitive products, as well as to certain run-off business included in Corporate and Other. This loss recognition event caused an acceleration of DAC amortization on our life interest-sensitive products and an increase in the premium deficiency reserve on the run-off business in the first quarter of 2020.

The net impact of assumption changes during 2020 was an increase in policy charges and fee income of $23 million, an increased policyholders’ benefits by $1.6 billion, decreased interest credited to policyholders’ account balances by $1 million, increased net derivative gains (losses) by $112 million and increased amortization of DAC by $1.1 billion. This resulted in a decrease in income (loss) from operations, before income taxes of $2.6 billion and decreased net income (loss) by $2.0 billion. The 2020 impacts related to assumption updates were primarily driven by the first quarter updates.

2019 Assumption Updates

The impact of assumption updates in 2019 was a decrease of $1.4 billion to income (loss) from continuing operations, before income taxes and a decrease to net income (loss) of $1.1 billion. This includes a $1.5 billion unfavorable impact on the reserves for our variable annuity product features as a result of unfavorable updates to our: (i) interest rate assumptions; and (ii) policyholder behavior, primarily lapse and withdrawal assumptions, further magnified by low interest rates.

The net impact of these assumption updates on income (loss) from continuing operations, before income taxes of $1.4 billion consisted of an increase in policy charges and fee income of $3 million, an increase in policyholders’ benefits of $875

76

million, a decrease in interest credited to policyholders’ account balances of $13 million, a decrease in net derivative gains (losses) of $578 million and a decrease in the amortization of DAC of $46 million.

2021 and 2019 Model Changes

There was no material impact to our income (loss) from continuing operations, before income taxes or net income (loss) from model changes during 2021 and 2019.

2020 Model Changes

In the first quarter of 2020, we adopted a new economic scenario generator to calculate the fair value of the GMIB reinsurance contract asset and GMxB derivative features liability, eliminating reliance on AXA for scenario production. The new economic scenario generator allows for a tighter calibration of U.S. indices, better reflecting our actual portfolio. The net impact of the new economic scenario generator resulted in an increase in income (loss) from continuing operations, before income taxes of $201 million, and an increase to net income (loss) of $159 million for the year ended December 31,2020. There were no other model changes that made a material impact to our income (loss) from continuing operations, before income taxes or net income (loss).

Impact of Assumption Updates and Model Changes on Pre-tax Non-GAAP Operating Earnings Adjustments

The table below presents the impact on pre-tax Non-GAAP Operating Earnings of our actuarial assumption updates during 2021, 2020 and 2019 by segment and Corporate and Other.

	Year Ended December 31,
	2021		2020		2019
	(in million)
Impact of assumption updates by segment:
Individual Retirement	$	(47)	$	(28)	$	104
Group Retirement	35		(3)		3
Protection Solutions	20		4		(4)
Impact of assumption updates on Corporate and Other	—		(12)		(27)
Total impact on pre-tax Non-GAAP Operating Earnings	$	8	$	(39)	$	76

2021 Assumption Updates

The impact of our 2021 annual review on Non-GAAP Operating Earnings was favorable by $8 million before taking into consideration the tax impacts or $6 million after tax. For Individual Retirement segment, the impacts primarily reflect updated mortality on our older payout business. For Group Retirement segment, the impacts reflect updated economic assumptions. The annual update for Protection Solutions segment reflects favorable economic conditions and surrenders primarily on the VUL line. This, in turn, creates future profits and lowers the accrual on our PFBL reserve.

The net impact of assumption changes on Non-GAAP Operating Earnings in the third quarter of 2021 decreased Policy charges and fee income by $28 million, increased Policyholders’ benefits by $22 million, and decreased Amortization of DAC by $58 million. Non-GAAP Operating Earnings excludes items related to Variable annuity product features, such as changes in the fair value of the embedded derivatives associated with the GMIBNLG liability and the effect of benefit ratio unlock adjustments.

2020 Assumption Updates

The impact of our 2020 annual review on Non-GAAP Operating Earnings was unfavorable by $39 million before taking into consideration the tax impacts or $31 million after tax. For the Individual Retirement segment, the impacts primarily reflect higher surrenders at the end of the surrender charge period on Retirement Cornerstone policies. The impact of our 2020 annual review was not material for our Group Retirement and Protection Solutions segments.

The net impact of assumption changes on Non-GAAP Operating Earnings in the third quarter of 2020 decreased Policy charges and fee income by $23 million, increased Policyholders’ benefits by $46 million, increased Interest credited to policyholders’ account balances by $5 million and decreased Amortization of DAC by $35 million. Non-GAAP Operating Earnings excludes items related to Variable annuity product features and the impact of COVID-19, such as changes in the fair value of the embedded derivatives associated with the GMIBNLG liability and the effect of benefit ratio unlock adjustments.

77

2019 Assumption Updates

The impact of our 2019 annual review on Non-GAAP Operating Earnings was favorable by $60 million, or $76 million before taking into consideration the tax impacts.

•For the Individual Retirement segment, the impacts primarily reflect favorable updates to amortization of DAC from lower lapse assumptions.

•For the Group Retirement segment, the impacts primarily reflect a favorable update to maintenance expenses.

•For the Protection Solutions segment, the results primarily reflect unfavorable updates to mortality and economic assumptions, partially offset by a favorable update to maintenance expenses.

Non-GAAP Operating Earnings excludes items related to variable annuity product features, such as changes in the fair value of the embedded derivatives associated with the GMIBNLG liability and the effect of benefit ratio unlock adjustments. The net impact of assumption changes on Non-GAAP Operating Earnings in the third quarter of 2019 increased policy charges and fee income by $3 million, decreased policyholder’ benefits by $15 million, decreased interest credited to policyholders’ account balances by $13 million and decreased amortization of DAC by $46 million.

Impact of the First Quarter 2020 Assumption Update, and COVID-19 Impacts on Pre-tax Non-GAAP Operating Earnings Adjustments

The unprecedented and rapid spread of COVID-19 and the related restrictions and social distancing measures implemented throughout the world caused severe, lasting turmoil in the financial markets during the first six months of 2020.

The Company’s accounting policy governing its Non-GAAP Operating Earnings measure permits adjustments to Non-GAAP Operating Earnings if certain criteria are met, which include if the proposed adjustment relates to a non-recurring event or transaction. Management concluded that all impacts on the Company from the COVID-19 pandemic and its effects on the economy meet the indicators of a non-recurring event. Therefore, management has determined that the items set forth in the table below should be included as adjustments to the Non-GAAP Operating Earnings measure so that investors can more clearly see the delineation between the operating results of the Company’s core operations and the impact of the items specific to the current COVID-19 pandemic crisis.

The table below presents the COVID-19 pandemic related impacts on income (loss) from continuing operations, before income taxes by segment and Corporate and Other, and the COVID-19 pandemic related adjustments included in the reconciliation of Net Income (loss) attributable to Holdings to Non-GAAP Operating Earnings:

	Year Ended December 31, 2020
	COVID-19 Impacts
	Interest Rate Assumption Update		Impacts other than Interest Rate Assumption Update (1)		Total
	(in millions)
Net income (loss) from continuing operations, before income taxes by Segment and Corporate and Other:
Individual Retirement	$	(1,417)	$	(43)	$	(1,460)
Group Retirement	(51)		—		(51)
Protection Solutions	(1,016)		(75)		(1,091)
Corporate and Other	(33)		(3)		(36)
Net income (loss) from continuing operations, before income taxes	$	(2,517)	$	(121)	$	(2,638)
COVID-19-related adjustments included in Reconciliation of Net income (loss) attributable to Holdings to Non-GAAP Operating Earnings:
Variable annuities product features	$	(1,468)	$	(35)	$	(1,503)
Other adjustments	(1,049)		(86)		(1,135)
Net income (loss) from continuing operations, before income taxes	$	(2,517)	$	(121)	$	(2,638)

78

_______________

(1)Includes adjustments to Non-GAAP Operating Earnings primarily due to non-variable annuity hedging impacts resulting from unprecedented volatility in equity markets and accelerated amortization of DAC due to loss recognition in the first half of 2020 resulting from first quarter 2020 interest rate assumption update.

Adjustments related to the Individual Retirement and Group Retirement segments are primarily included in the “Variable annuities product features” in the reconciliation of Net income (loss) attributable to Holdings to Non-GAAP Operating Earnings. All other adjustments are included in “Other”. This impact has been more than offset by hedging gains.

Macroeconomic and Industry Trends

Our business and consolidated results of operations are significantly affected by economic conditions and consumer confidence, conditions in the global capital markets and the interest rate environment.

Financial and Economic Environment

A wide variety of factors continue to impact global financial and economic conditions, including, among others, the COVID-19 pandemic, volatility in financial markets, rising inflation rates, continued low interest rates, changes in fiscal or monetary policy and supply chain disruptions.

Stressed conditions, volatility and disruptions in the capital markets, particular markets, or financial asset classes can have an adverse effect on us, in part because we have a large investment portfolio and our insurance liabilities and derivatives are sensitive to changing market factors, including changes in interest rates, which are anticipated to occur in 2022 based on statements of members of the Board of Governors of the Federal Reserve System. An increase in market volatility could continue to affect our business, including through effects on the yields we earn on invested assets, changes in required reserves and capital and fluctuations in the value of our AUM, AV or AUA from which we derive our fee income. These effects could be exacerbated by uncertainty about future fiscal policy, changes in tax policy, the scope of potential deregulation and levels of global trade.

The potential for increased volatility, coupled with prevailing interest rates falling and/or remaining below historical averages, could pressure sales and reduce demand for our products as consumers consider purchasing alternative products to meet their objectives. In addition, this environment could make it difficult to consistently develop products that are attractive to customers. Financial performance can be adversely affected by market volatility and equity market declines as fees driven by AV and AUM fluctuate, hedging costs increase and revenues decline due to reduced sales and increased outflows.

We monitor the behavior of our customers and other factors, including mortality rates, morbidity rates, annuitization rates and lapse and surrender rates, which change in response to changes in capital market conditions, to ensure that our products and solutions remain attractive and profitable. For additional information on our sensitivity to interest rates and capital market prices, see “Quantitative and Qualitative Disclosures About Market Risk.”

Interest Rate Environment

We believe the interest rate environment will continue to impact our business and financial performance in the future for several reasons, including the following:

•Certain of our variable annuity and life insurance products pay guaranteed minimum interest crediting rates. We are required to pay these guaranteed minimum rates even if earnings on our investment portfolio decline, with the resulting investment margin compression negatively impacting earnings. In addition, we expect more policyholders to hold policies with comparatively high guaranteed rates longer (lower lapse rates) in a low interest rate environment. Conversely, a rise in average yield on our investment portfolio should positively impact earnings. Similarly, we expect policyholders would be less likely to hold policies with existing guaranteed rates (higher lapse rates) as interest rates rise.

•A prolonged low interest rate environment also may subject us to increased hedging costs or an increase in the amount of statutory reserves that our insurance subsidiaries are required to hold for GMxB features, lowering their statutory surplus, which would adversely affect their ability to pay dividends to us. In addition, it may also increase the perceived value of GMxB features to our policyholders, which in turn may lead to a higher rate of annuitization and higher persistency of those products over time. Finally, low interest rates may continue to cause an acceleration of DAC amortization or reserve increase due to loss recognition for interest sensitive products, primarily for our Protection Solutions segment.

79

For a discussion on derivatives we used to hedge interest rates, see Note 4 of the Notes to these Consolidated Financial Statements in this Form 10-K.

Regulatory Developments

Our life insurance subsidiaries are regulated primarily at the state level, with some policies and products also subject to federal regulation. In addition, Holdings and its insurance subsidiaries are subject to regulation under the insurance holding company laws of various U.S. jurisdictions. Furthermore, on an ongoing basis, regulators refine capital requirements and introduce new reserving standards. Regulations recently adopted or currently under review can potentially impact our statutory reserve, capital requirements and profitability of the industry and result in increased regulation and oversight for the industry. For additional information on regulatory developments and the risks we face, see “Business—Regulation” and “Risk Factors—Legal and Regulatory Risks.”

Separation Costs

In connection with our separation from AXA, we have incurred expenses of $722 million of which $82 million, $108 million, and $222 million was incurred in 2021, 2020 and 2019, respectively. These expenses primarily relate to information technology, compliance, internal audit, finance, risk management, procurement, client service, human resources, rebranding and other support services. We have successfully completed our separation from AXA and do not expect to incur any additional expense related to the separation from AXA.

Productivity Strategies

Retirement and Protection Businesses

As part of our continuing efforts to drive productivity improvements, on January 2021, we began a new program expected to achieve $80 million of targeted run-rate expense savings by 2023, of which $31 million was achieved in 2021. We expect to achieve these saving by shifting our workforce into an agile working model, leveraging technology-enabled capabilities, optimizing our real estate footprint, and continuing to realize a portion of COVID-19 related savings.

Investment Management and Research Business

As previously announced, AB has established its corporate headquarters in Nashville, Tennessee and relocated approximately 1,250 jobs from the New York metro area. Beginning in 2025, AB estimates ongoing annual expense savings of approximately $75 million to $80 million, which will result from a combination of occupancy and compensation-related savings.

80

Key Operating Measures

In addition to our results presented in accordance with U.S. GAAP, we report Non-GAAP Operating Earnings, Non-GAAP Operating ROE, Non-GAAP Operating ROC by segment for our Individual Retirement, Group Retirement and Protection Solutions segments, and Non-GAAP operating common EPS, each of which is a measure that is not determined in accordance with U.S. GAAP. Management principally uses these non-GAAP financial measures in evaluating performance because they present a clearer picture of our operating performance and they allow management to allocate resources. Similarly, management believes that the use of these Non-GAAP financial measures, together with relevant U.S. GAAP measures, provide investors with a better understanding of our results of operations and the underlying profitability drivers and trends of our business. These non-GAAP financial measures are intended to remove from our results of operations the impact of market changes (where there is mismatch in the valuation of assets and liabilities) as well as certain other expenses which are not part of our underlying profitability drivers or likely to re-occur in the foreseeable future, as such items fluctuate from period-to-period in a manner inconsistent with these drivers. These measures should be considered supplementary to our results that are presented in accordance with U.S. GAAP and should not be viewed as a substitute for the U.S. GAAP measures. Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Consequently, our non-GAAP financial measures may not be comparable to similar measures used by other companies.

We also discuss certain operating measures, including AUM, AUA, AV, Protection Solutions Reserves and certain other operating measures, which management believes provide useful information about our businesses and the operational factors underlying our financial performance.

Non-GAAP Operating Earnings

Non-GAAP Operating Earnings is an after-tax non-GAAP financial measure used to evaluate our financial performance on a consolidated basis that is determined by making certain adjustments to our consolidated after-tax net income attributable to Holdings. The most significant of such adjustments relates to our derivative positions, which protect economic value and statutory capital, and are more sensitive to changes in market conditions than the variable annuity product liabilities as valued under U.S. GAAP. This is a large source of volatility in net income.

Non-GAAP Operating Earnings equals our consolidated after-tax net income attributable to Holdings adjusted to eliminate the impact of the following items:

•Items related to variable annuity product features, which include: (i) certain changes in the fair value of the derivatives and other securities we use to hedge these features; (ii) the effect of benefit ratio unlock adjustments, including extraordinary economic conditions or events such as COVID-19; and (iii) changes in the fair value of the embedded derivatives reflected within variable annuity products’ net derivative results and the impact of these items on DAC amortization on our SCS product;

•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, COVID-19 related impacts, 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 associated with equity securities and certain legal accruals; 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.

Because Non-GAAP Operating Earnings excludes the foregoing items that can be distortive or unpredictable, management believes that this measure enhances the understanding of the Company’s underlying drivers of profitability and trends in our business, thereby allowing management to make decisions that will positively impact our business.

We use the prevailing corporate federal income tax rate of 21% while taking into account any non-recurring differences for events recognized differently in our financial statements and federal income tax returns as well as partnership income taxed at lower rates when reconciling Net income (loss) attributable to Holdings to Non-GAAP Operating Earnings.

81

The table below presents a reconciliation of net income (loss) attributable to Holdings to Non-GAAP Operating Earnings for the years ended December 31, 2021, 2020 and 2019:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Net income (loss) attributable to Holdings	$	(439)	$	(648)	$	(1,764)
Adjustments related to:
Variable annuity product features (1)	4,145		3,912		4,863
Investment (gains) losses	(867)		(744)		(73)
Net actuarial (gains) losses related to pension and other postretirement benefit obligations	120		109		99
Other adjustments (2) (3) (4) (5)	717		952		395
Income tax expense (benefit) related to above adjustments (6)	(864)		(888)		(1,097)
Non-recurring tax items (7)	13		(391)		(66)
Non-GAAP Operating Earnings	$	2,825	$	2,302	$	2,357

___________

(1)Includes COVID-19 impact on Variable annuity product features due to a first quarter 2020 assumption update of $1.5 billion and other COVID-19 related impacts of $35 million for the year ended December 31, 2020.

(2)Includes COVID-19 impact on Other adjustments due to a first quarter 2020 assumption update of $1.0 billion and other COVID-19 related impacts of $86 million for the year ended December 31, 2020.

(3)Other adjustments includes separation costs of $82 million,$108 million, and $222 million for the years ended December 31, 2021, 2020 and 2019, respectively.

(4)Includes Non-GMxB related derivative hedge losses of $65 million, ($404) million and $36 million for the years ended December 31, 2021, 2020 and 2019, respectively.

(5)Includes certain legal accruals related to the cost of insurance litigation of $207 million for the year ended December 31, 2021.

(6)Includes income taxes of ($554) million for the above related COVID-19 items for the year ended December 31, 2020.

(7)Includes a reduction in the reserve for uncertain tax positions resulting from the completion of an IRS examination in the year ended December 31, 2020.

Non-GAAP Operating ROE and Non-GAAP Operating ROC by Segment    

We report Non-GAAP Operating ROE and Non-GAAP Operating ROC by segment for our Individual Retirement, Group Retirement and Protection Solutions segments, each of which is a Non-GAAP financial measure used to evaluate our profitability on a consolidated basis and by segment, respectively.

We calculate Non-GAAP Operating ROE by dividing Non-GAAP operating earnings for the previous twelve calendar months by consolidated average equity attributable to Holdings’ common shareholders, excluding AOCI. We calculate Non-GAAP Operating ROC by segment by dividing Operating earnings (loss) on a segment basis for the previous twelve calendar months by average capital on a segment basis, excluding AOCI, as described below. AOCI fluctuates period-to-period in a manner inconsistent with our underlying profitability drivers as the majority of such fluctuation is related to the market volatility of the unrealized gains and losses associated with our AFS securities.

Therefore, we believe excluding AOCI is more effective for analyzing the trends of our operations. We do not calculate Non-GAAP Operating ROC by segment for our Investment Management and Research segment because we do not manage that segment from a return of capital perspective. Instead, we use metrics more directly applicable to an asset management business, such as AUM, to evaluate and manage that segment.

For Non-GAAP Operating ROC by segment, capital components pertaining directly to specific segments such as DAC along with targeted capital are directly attributed to these segments. Targeted capital for each segment is established using assumptions supporting statutory capital adequacy levels, reflecting the NAIC RBC framework adopted as of year-end 2019. To enhance the ability to analyze these measures across periods, interim periods are annualized. Non-GAAP Operating ROE and Non-GAAP Operating ROC by segment should not be used as substitutes for ROE.

The following table presents return on average equity attributable to Holdings’ common shareholders, excluding AOCI and Non-GAAP Operating ROE for the year ended December 31, 2021.

82

	Year Ended December 31, 2021
	(in millions)
Net income (loss) available to Holdings’ common shareholders	$	(518)
Average equity attributable to Holdings’ common shareholders, excluding AOCI	$	8,193
Return on average equity attributable to Holdings’ common shareholders, excluding AOCI	(6.3)		%
Non-GAAP Operating Earnings available to Holdings’ common shareholders	$	2,746
Average equity attributable to Holdings’ common shareholders, excluding AOCI	$	8,193
Non-GAAP Operating ROE	33.5		%

The following table presents Non-GAAP Operating ROC by segment for our Individual Retirement, Group Retirement and Protection Solutions segments for the years ended December 31, 2021, 2020 and 2019.

	Individual Retirement			Group Retirement			Protection Solutions
	(in millions)
Year Ended December 31, 2021
Operating earnings	$	1,444		$	631		$	317
Average capital (1)	$	6,350		$	1,154		$	2,154
Non-GAAP Operating ROC	22.8		%	54.6		%	14.7		%
Year Ended December 31, 2020
Operating earnings	$	1,536		$	491		$	146
Average capital (1)	$	6,352		$	1,073		$	2,170
Non-GAAP Operating ROC	24.2		%	45.8		%	6.7		%
Year Ended December 31, 2019
Operating earnings	$	1,598		$	390		$	336
Average capital (1)	$	7,357		$	1,333		$	2,998
Non-GAAP Operating ROC	21.7		%	29.3		%	11.2		%

_____________

(1)For average capital amounts by segment, capital components pertaining directly to specific segments such as DAC along with targeted capital are directly attributed to these segments. Targeted capital for each segment is established using assumptions supporting statutory capital adequacy levels (including CTE98).

Non-GAAP Operating Common EPS

Non-GAAP operating common EPS is calculated by dividing Non-GAAP Operating Earnings by diluted common shares outstanding. The following table sets forth Non-GAAP operating common EPS for the years ended December 31, 2021, 2020 and 2019.

83

	Year Ended December 31,
	2021		2020		2019
	(per share amounts)
Net income (loss) attributable to Holdings (1)	(1.05)		(1.44)		(3.57)
Less: Preferred stock dividends	0.19		0.12		—
Net income (loss) available to Holdings’ common shareholders	(1.24)		(1.56)		(3.57)
Adjustments related to:
Variable annuity product features (2)	9.93		8.68		9.85
Investment (gains) losses	(2.08)		(1.65)		(0.15)
Net actuarial (gains) losses related to pension and other postretirement benefit obligations	0.29		0.24		0.20
Other adjustments (3) (4) (5) (6)	1.72		2.12		0.80
Income tax expense (benefit) related to above adjustments (7)	(2.07)		(1.97)		(2.22)
Non-recurring tax items (8)	0.03		(0.87)		(0.13)
Non-GAAP operating earnings	$	6.58	$	4.99	$	4.78

______________

(1)For periods presented with a net loss, basic shares was used for the years ended December 31, 2021, 2020 and 2019.

(2)Includes COVID-19 impact on Variable annuity product features due to a first quarter 2020 assumption update of $3.26 and other COVID-19 related impacts of $0.08 for the year ended December 31, 2020.

(3)Includes COVID-19 impact on Other adjustments due to a first quarter 2020 assumption update of $2.33 for the year ended December 31, 2020 and other COVID-19 related impacts of $0.19 for the year ended December 31, 2020.

(4)Includes separation costs of $0.20, $0.24 and $0.45 for the years ended December 31, 2021, 2020 and 2019, respectively.

(5)Includes Non-GMxB related derivative hedge losses of $0.14,($0.90), and $0.08 for the years ended December 31, 2021, 2020 and 2019, respectively.

(6)Includes certain legal accruals related to the cost of insurance litigation of $0.50 for the year ended December 31, 2021. No adjustments were made to prior period non-GAAP operating EPS as the impact was immaterial.

(7)Includes income taxes of $(1.23) for the above related COVID-19 items for the year ended December 31, 2020.

(8)Includes a reduction in the reserve for uncertain tax positions resulting from the completion of an IRS examination in the year ended December 31, 2020.

Assets Under Management

AUM means investment assets that are managed by one of our subsidiaries and includes: (i) assets managed by AB; (ii) the assets in our General Account investment portfolio; and (iii) the Separate Accounts assets of our Individual Retirement, Group Retirement and Protection Solutions businesses. Total AUM reflects exclusions between segments to avoid double counting.

Assets Under Administration

AUA includes non-insurance client assets that are invested in our savings and investment products or serviced by our Equitable Advisors platform. We provide administrative services for these assets and generally record the revenues received as distribution fees.

Account Value

AV generally equals the aggregate policy account value of our retirement products. General Account AV refers to account balances in investment options that are backed by the General Account while Separate Accounts AV refers to Separate Accounts investment assets

Protection Solutions Reserves

Protection Solutions reserves equals the aggregate value of policyholders’ account balances and future policy benefits for policies in our Protection Solutions segment.

84

Consolidated Results of Operations

Our consolidated results of operations are significantly affected by conditions in the capital markets and the economy because we offer market sensitive products. These products have been a significant driver of our results of operations. Because the future claims exposure on these products is sensitive to movements in the equity markets and interest rates, we have in place various hedging and reinsurance programs that are designed to mitigate the economic risk of movements in the equity markets and interest rates. The volatility in net income attributable to Holdings for the periods presented below results from the mismatch between: (i) the change in carrying value of the reserves for GMDB and certain GMIB features that do not fully and immediately reflect the impact of equity and interest market fluctuations; (ii) the change in fair value of products with the GMIB feature that have a no-lapse guarantee; and (iii) our hedging and reinsurance programs.

Ownership and Consolidation of AllianceBernstein

Our indirect, wholly-owned subsidiary, AllianceBernstein Corporation, is the General Partner of AB. Accordingly, AB’s results are fully reflected in our consolidated financial statements.

Our economic interest in AB was approximately 65% during the years ended December 31, 2021, 2020 and 2019.

Consolidated Results of Operations

The following table summarizes our consolidated statements of income (loss) for the years ended December 31, 2021, 2020 and 2019:

Consolidated Statement of Income (Loss)

	Year Ended December 31,
	2021		2020		2019
	(in millions, except per share data)
REVENUES
Policy charges and fee income	$	3,637	$	3,735	$	3,778
Premiums	960		997		1,147
Net derivative gains (losses)	(4,465)		(1,722)		(4,012)
Net investment income (loss)	3,846		3,477		3,699
Investment gains (losses), net:
Credit losses on available-for-sale debt securities and loans	2		(58)		—
Other investment gains (losses), net	866		802		73
Total investment gains (losses), net	868		744		73
Investment management and service fees	5,395		4,608		4,380
Other income	795		576		554
Total revenues	11,036		12,415		9,619

85

	Year Ended December 31,
	2021		2020		2019
	(in millions, except per share data)
BENEFITS AND OTHER DEDUCTIONS
Policyholders’ benefits	3,218		5,326		4,385
Interest credited to policyholders’ account balances	1,219		1,222		1,263
Compensation and benefits	2,360		2,096		2,081
Commissions and distribution-related payments	1,662		1,351		1,242
Interest expense	244		200		221
Amortization of deferred policy acquisition costs	393		1,613		597
Other operating costs and expenses	2,109		1,700		1,890
Total benefits and other deductions	11,205		13,508		11,679
Income (loss) from continuing operations, before income taxes	(169)		(1,093)		(2,060)
Income tax (expense) benefit	145		744		593
Net income (loss)	(24)		(349)		(1,467)
Less: Net income (loss) attributable to the noncontrolling interest	415		299		297
Net income (loss) attributable to Holdings	(439)		(648)		$	(1,764)
Less: Preferred stock dividends	79		53		—
Net income (loss) available to Holdings’ common shareholders	$	(518)	$	(701)	$	(1,764)
EARNINGS PER COMMON SHARE
Net income (loss) applicable to Holdings’ common shareholders per common share:
Basic	$	(1.24)	$	(1.56)	$	(3.57)
Diluted	$	(1.24)	$	(1.56)	$	(3.57)
Weighted average common shares outstanding (in millions):
Basic	417.4		450.4		493.6
Diluted	417.4		450.4		493.6

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Non-GAAP Operating Earnings	$	2,825	$	2,302	$	2,357

The following table summarizes our Non-GAAP Operating Earnings per common share for the years ended December 31, 2021, 2020 and 2019:

	Year Ended December 31,
	2021		2020		2019
Non-GAAP operating earnings per common share:
Basic	$	6.58	$	4.99	$	4.78
Diluted	$	6.58	$	4.99	$	4.78

Year Ended December 31, 2021 Compared to the Year Ended December 31, 2020

Net Income Attributable to Holdings

Net loss attributable to Holdings decreased by $209 million to a net loss of $439 million for the year ended December 31, 2021 from a net loss of $648 million for the year ended December 31, 2020. The following notable items were the primary drivers for the change in net income (loss):

Favorable items included:

86

•Policyholders’ benefits decreased by $2.1 billion mainly due to the non-recurrence of the interest rate assumption update in the first quarter of 2020 and equity markets appreciation in the year ended December 31, 2021. This was partially offset by an increase in death claims.

•Amortization of DAC decreased by $1.2 billion mainly due to the interest rate assumption update in the first quarter of 2020 as a result of the extraordinary economic conditions driven by COVID-19. As a result of the lower interest rate assumption, Protection Solutions segment entered into loss recognition resulting in an acceleration of DAC amortization in 2020.

•Fee revenue increased by $871 million mainly driven by higher base fees, performance fees and distribution revenues in our Investment Management & Research segment as a result of higher average AUM revenues and higher fees in our Group Retirement segment as a result of higher average Separate Accounts AV and higher broker-dealer related revenues.

•Investment gains increased by $124 million mainly due to rebalancing of the Venerable assets and the rebalancing program to extend duration.

•Net investment income increased by $369 million mainly due to higher income from our alternative investment portfolio and higher prepayments, partially offset by lower assets related to the Venerable Transaction.

These were partially offset by the following unfavorable items:

•Net derivative gains decreased by $2.7 billion driven by an increase in interest rates during 2021 compared to a decrease in interest rates during 2020 and greater equity market appreciation in 2021, partially offset by widening non-performance risk spreads during 2021 compared to contracting spreads in 2020.

•Compensation, benefits and other operating expenses increased by $673 million mainly due to higher litigation reserve accruals, including the COI litigation. In addition, we experienced higher employee compensation expenses in our Investment Management and Research segment due to higher revenues.

•Commissions and distribution-related payments increased by $311 million mainly due to higher distribution-related payments in our Investment Management and Research and Individual Retirement segments based on higher average AUM and Separate Account AV balances, as well as the growth in broker dealer sales.

•Net income attributable to noncontrolling interest increased by $116 million mainly due to higher AB pre-tax income and higher consolidated VIE income.

•Income tax benefit decreased by $599 million primarily due to the 2020 audit close and a decrease in pre-tax loss in the year ended December 31, 2021 compared to the year ended December 31, 2020.

See “—Significant Factors Impacting Our Results—Assumption Updates and Model Changes” for more information regarding assumption updates.

Non-GAAP Operating Earnings

Non-GAAP Operating Earnings increased by $523 million to $2.8 billion for the year ended December 31, 2021 from $2.3 billion in the year ended December 31, 2020. The following notable items were the primary drivers for the change in Non-GAAP Operating Earnings.

Favorable items included:

•Fee-type revenue increased by $914 million mainly due to higher base fees, performance-based fees and distribution revenues in our Investment Management & Research segment as a result of higher average AUM revenues, and higher fees in our Group Retirement segment as a result of higher average Separate Accounts AV and higher broker-dealer related revenues.

•Net investment income increased by $566 million mainly due to higher income from our alternative investment portfolio and higher prepayments, partially offset by lower assets related to the Venerable Transaction.

•Policyholders’ benefits decreased by $545 million mainly due to equity market appreciation (offset in Net Derivative gains), partially offset by higher ongoing reserves resulting from assumption updates in 2020 and higher death claims in 2021.

87

•Amortization of DAC decreased by $9 million mainly due to favorable assumption updates in 2021 compared to 2020, partially offset by higher amortization due to growth of SCS.

These were partially offset by the following unfavorable items:

•Net derivative gains decreased by $485 million mainly due to equity market appreciation in 2021, which was offset in Policyholder’s benefits, and inflation related hedging losses on TIPS in the General Account.

•Compensation, benefits and other operating costs and expenses increased by $424 million mainly due to higher employee compensation in our Investment Management and Research segment due to higher revenues and increased expenses in Corporate and Other related to unfavorable COLI death claims and general incremental compensation increases.

•Commissions and distribution-related payments increased by $311 million mainly due to higher distribution-related payments in our Investment Management and Research and Individual Retirement segments based on higher average AUM and Separate Account AV balances, as well as the growth in broker dealer sales.

•Earnings attributable to the noncontrolling interest increased by $114 million mainly due to higher AB Operating earnings in our Investment Management and Research segment.

•Income tax expense increased by $164 million primarily due to higher pre-tax earnings.

Year Ended December 31, 2020 Compared to the Year Ended December 31, 2019

Net Income Attributable to Holdings

For discussion that compares results for the year ended December 31, 2020 to the year ended December 31, 2019 refer to the MD&A section in our Annual Report on Form 10-K for the year ended December 31, 2020 (“2020 Form 10-K”).

Non-GAAP Operating Earnings

For discussion that compares results for the year ended December 31, 2020 to the year ended December 31, 2019 refer to the MD&A section in our 2020 Form 10-K.

Results of Operations by Segment

We manage our business through the following four segments: Individual Retirement, Group Retirement, Investment Management and Research, and Protection Solutions. We report certain activities and items that are not included in our four segments in Corporate and Other. The following section presents our discussion of operating earnings (loss) by segment and AUM, AV and Protection Solutions Reserves by segment, as applicable. Consistent with U.S. GAAP guidance for segment reporting, operating earnings (loss) is our U.S. GAAP measure of segment performance. See Note 19 of the Notes to these Consolidated Financial Statements for further information on our segments.

The following table summarizes operating earnings (loss) on our segments and Corporate and Other for the years ended December 31, 2021, 2020 and 2019:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Operating earnings (loss) by segment:
Individual Retirement	$	1,444	$	1,536	$	1,598
Group Retirement	631		491		390
Investment Management and Research	564		432		381
Protection Solutions	317		146		336
Corporate and Other	(131)		(303)		(348)
Non-GAAP Operating Earnings	$	2,825	$	2,302	$	2,357

88

Effective Tax Rates by Segment

For 2021, 2020 and 2019 Income tax expense was allocated to the Company’s business segments using a 17%, 16% and 17% effective tax rate (“ETR”), respectively, for our retirement and protection businesses (Individual Retirement, Group Retirement, and Protection Solutions) and a 27%, 27% and 28% ETR for Investment Management and Research.

Individual Retirement

The Individual Retirement segment includes our variable annuity products which primarily meet the needs of individuals saving for retirement or seeking retirement income.

The following table summarizes operating earnings of our Individual Retirement segment for the periods presented:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Operating earnings	$	1,444	$	1,536	$	1,598

Key components of operating earnings are:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
REVENUES
Policy charges, fee income and premiums	$	1,867	$	2,034	$	2,085
Net investment income	1,287		1,246		1,148
Net derivative gains (losses)	(128)		331		362
Investment management, service fees and other income	759		700		730
Segment revenues	$	3,785	$	4,311	$	4,325
BENEFITS AND OTHER DEDUCTIONS
Policyholders’ benefits	$	720	$	1,207	$	1,184
Interest credited to policyholders’ account balances	276		312		310
Commissions and distribution-related payments	328		281		281
Amortization of deferred policy acquisition costs	303		299		181
Compensation, benefits and other operating costs and expenses	411		382		435
Interest expense	—		—		—
Segment benefits and other deductions	$	2,038	$	2,481	$	2,391

The following table summarizes AV for our Individual Retirement segment as of the dates indicated:

	December 31,
	2021		2020
	(in millions)
AV (1)
General Account	$	37,698	$	30,783
Separate Accounts	74,206		86,607
Total AV	$	111,904	$	117,390

(1) AV presented are net of reinsurance

89

The following table summarizes a roll-forward of AV for our Individual Retirement segment for the periods presented:

	Year Ended December 31,
	2021		2020				2019
	(in millions)
Balance as of beginning of period	$	117,390	$	108,922			$	94,589
Gross premiums	11,249		7,493				8,572
Surrenders, withdrawals and benefits	(12,143)		(8,622)				(9,071)
Net flows (1)	(894)		(1,129)				(499)
Investment performance, interest credited and policy charges (3)	12,316		9,606				15,290
Ceded to Venerable (2)	(16,927)		—				—
Reclassified to Liabilities held for sale	—		(3)				—
Other (3) (4) (5) (6)	19		(6)				(458)
Balance as of end of period	$	111,904	$	117,390	$	—	$	108,922

______________

(1) For the year ended December 31, 2021, net flows of $(830) million and investment performance, interest credited and policy charges of $589 million, respectively, are excluded as these amounts are related to ceded AV to Venerable.

(2) Effective June 1, 2021, AV excludes activity related to ceded AV to Venerable. In addition, the roll-forward reflects the AV ceded to Venerable as of the transaction date. For additional information on the Venerable Transaction see Note 1 of the Notes to these Consolidated Financial Statements.

(3) For the year ended December 31, 2021, amounts reflect $(38) million transfer of policyholders account balances to future policyholder benefits and other policyholders liabilities related to structured settlement contracts.

(4) For the year ended December 31, 2021 amounts reflect $57 million of AV transfer of a closed block of GMxB business from GR to IR.

(5) For the year ended December 31, 2020, amounts are primarily related to our fixed income annuity (“FIA”) contracts which were previously reported as Policyholders’ account balances in the consolidated balance sheets and therefore included in our definition of “Account Value”. Effective January 1, 2020, FIAs are reported as future policy benefits and other policyholders’ liabilities in the consolidated balance sheets and accordingly were excluded from Account Value.

(6) Transfer to Corporate and Other represents the placement of an Individual Retirement product in run-off effective for the second quarter of 2019.

Year Ended December 31, 2021 Compared to the Year Ended December 31, 2020 for the Individual Retirement Segment

Operating earnings

Operating earnings decreased $92 million to $1.4 billion during the year ended December 31, 2021 from $1.5 billion in the year ended December 31, 2020. The following notable items were the primary drivers of the change in operating earnings:

Unfavorable items included:

•Net GMxB results decreased by $86 million primarily due to ongoing higher reserve accruals resulting from assumption updates in 2020 and higher claims, partially offset by higher fees and the impact of the Venerable Transaction.

•Commissions and distribution-related payments increased by $47 million mainly due to higher average asset balances, gross of Venerable, offset by an increase in commission reimbursements in Fee-type revenue.

•Compensation, benefits and other operating costs and expenses increased by $29 million primarily due to higher incremental compensation expense and higher investment management sub-advisory fees, partially off set by higher SA fees.

These were partially offset by the following favorable items:

•Net investment income increased by $41 million mainly due to higher income from our alternative investment portfolio, higher average asset balances, prepayments and General Account portfolio optimization.

90

•Interest credited to policyholders’ account balances decreased by $36 million mainly due to the impact of equity market appreciation on our SCS product features.

•Fee-type revenue increased by $19 million mainly due to higher average Separate Accounts AV as a result of equity market appreciation in 2021 from market lows in 2020, and inflows from our current product offering. The increase in Fee-type revenue was partially offset by the impacts of fee-income ceded to Venerable, partially offset by commission reimbursements in Commissions and distributions-related payments.

Net Flows and AV

•The decline in AV of $5.5 billion in the year ended December 31, 2021 was driven by $16.9 billion of AV ceded to Venerable and net outflows of $894 million partially offset by an increase in investments performance and interest credited to account balances, net of policy charges of $12.3 billion as a result of equity market appreciation in 2021.

•Net outflows of $894 million were $235 million higher than in the year ended December 31, 2020, mainly driven by $3.5 billion of outflows on our older fixed-rate GMxB block, partially offset by $2.6 billion of inflows on our newer, less capital-intensive products.

Year Ended December 31, 2020 Compared to the Year Ended December 31, 2019 for the Individual Retirement Segment

Operating earnings

For discussion that compares results for the year ended December 31, 2020 to the year ended December 31, 2019 refer to the MD&A section in our 2020 Form 10-K.

Net Flows and AV

For discussion on net flows and AV comparative results for the year ended December 31, 2020 to the year ended December 31, 2019 refer to the MD&A section in our 2020 Form 10-K.

Group Retirement

The Group Retirement 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 following table summarizes operating earnings of our Group Retirement segment for the periods presented:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Operating earnings	$	631	$	491	$	390

Key components of operating earnings are:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
REVENUES
Policy charges, fee income and premiums	$	371	$	295	$	279
Net investment income	752		641		590
Net derivative gains (losses)	(19)		1		4
Investment management, service fees and other income	268		211		204
Segment revenues	$	1,372	$	1,148	$	1,077

91

	Year Ended December 31,
	2021		2020		2019
	(in millions)
BENEFITS AND OTHER DEDUCTIONS
Policyholders’ benefits	$	—	$	2	$	2
Interest credited to policyholders’ account balances	303		303		302
Commissions and distribution-related payments	56		45		42
Amortization of deferred policy acquisition costs	—		21		35
Compensation, benefits and other operating costs and expenses	248		192		224
Interest expense	—		—		—
Segment benefits and other deductions	$	607	$	563	$	605

The following table summarizes AV for our Group Retirement segment as of the dates indicated:

	December 31,
	2021		2020
	(in millions)
AV
General Account	$	13,046	$	12,826
Separate Accounts	34,307		29,633
Total AV	$	47,353	$	42,459

The following table summarizes a roll-forward of AV for our Group Retirement segment for the periods indicated:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Balance as of beginning of period	$	42,459	$	37,880	$	32,401
Gross premiums	3,623		3,343		3,533
Surrenders, withdrawals and benefits	(3,929)		(3,047)		(3,266)
Net flows	(306)		296		267
Investment performance, interest credited and policy charges	5,257		4,283		5,212
Other (1)	(57)		—		—
Balance as of end of period	$	47,353	$	42,459	$	37,880

____________

(1)For the year ended December 31, 2021, amounts reflect AV transfer of GMxB closed block business from GR to IR.

Year Ended December 31, 2021 Compared to the Year Ended December 31, 2020 for the Group Retirement Segment

Operating earnings

Operating earnings increased by $140 million to $631 million during the year ended December 31, 2021 from $491 million during the year ended December 31, 2020. The following notable items were the primary drivers of the change in operating earnings:

Favorable items included:

•Fee-type revenue increased by $133 million due to higher average Separate Accounts AV, driven by equity market appreciation.

•Net investment income increased by $111 million due to higher income from our alternative investment portfolio, higher average assets balances, prepayments and General Account portfolio optimization.

92

•Amortization of DAC decreased by $21 million mainly due to the favorable impact of assumption updates in 2021, partially offset by higher amortization from higher revenue.

These were partially offset by the following unfavorable items:

•Compensation, benefits and other operating costs and expenses increased by $56 million mainly due to a litigation expense related to the 403(b) business.

•Net derivative gains decreased by $20 million due to inflation related hedging loss offset on TIPS in the General Account.

•Commissions and distribution-related payments increased by $11 million mainly due to a higher asset base.

•Income tax expense increased by $40 million primarily due to higher pre-tax earnings.

Net Flows and AV

•The increase in AV of $4.9 billion in the year ended December 31, 2021 was primarily due to strong equity markets partially offset by net outflows of $306 million.

•Net inflows decreased $602 million to outflows of $306 million due to higher surrender from higher AV, partially offset by higher sales and renewals.

Year Ended December 31, 2020 Compared to the Year Ended December 31, 2019 for the Group Retirement Segment

Operating earnings

For discussion that compares results for the year ended December 31, 2020 to the year ended December 31, 2019 refer to the MD&A section in our 2020 Form 10-K.

Net Flows and AV

For discussion on net flows and AV comparative results for the year ended December 31, 2020 to the year ended December 31, 2019 refer to the MD&A section in our 2020 Form 10-K.

93

Investment Management and Research

The Investment Management and Research segment provides diversified investment management, research and related services to a broad range of clients around the world. Operating earnings (loss), net of tax, presented here represents our economic interest in AB of approximately 65% during the years ended December 31, 2021, 2020 and 2019.

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Operating earnings	$	564	$	432	$	381

Key components of operating earnings are:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
REVENUES
Net investment income	$	13	$	31	$	57
Net derivative gains (losses)	(13)		(36)		(38)
Investment management, service fees and other income	4,430		3,708		3,460
Segment revenues	$	4,430	$	3,703	$	3,479
BENEFITS AND OTHER DEDUCTIONS
Commissions and distribution related payments	$	708	$	569	$	488
Compensation, benefits and other operating costs and expenses	2,507		2,211		2,174
Interest expense	5		6		10
Segment benefits and other deductions	$	3,220	$	2,786	$	2,672

Changes in AUM in the Investment Management and Research segment for the periods presented were as follows:

	Year Ended December 31,
	2021		2020		2019
	(in billions)
Balance as of beginning of period	$	685.9	$	622.9	$	516.4
Long-term flows
Sales/new accounts	150.0		124.1		103.7
Redemptions/terminations	(103.8)		(109.3)		(68.4)
Cash flow/unreinvested dividends	(20.1)		(17.4)		(10.1)
Net long-term inflows (outflows) (1)	26.1		(2.6)		25.2
Acquisition	—		0.2		—
AUM adjustment (2)	—		—		(0.9)
Market appreciation (depreciation)	66.6		65.4		82.2
Net change	92.7		63.0		106.5
Balance as of end of period	$	778.6	$	685.9	$	622.9

______________

(1) Institutional net flows include $1.3 billion and $11.8 billion of AXA redemptions of certain low-fee fixed income mandates for 2021 and 2020, respectively.

(2)Approximately $900 million of non-investment management fee earning taxable and tax-exempt money market assets were removed from assets under management during the second quarter of 2019.

94

Average AUM in the Investment Management and Research segment for the periods presented by distribution channel and investment services were as follows:

	Year Ended December 31,
	2021		2020		2019
	(in billions)
Distribution Channel:
Institutions	$	325.7	$	285.9	$	265.4
Retail	291.0		236.5		212.3
Private Wealth Management	114.1		97.1		96.5
Total	$	730.8	$	619.5	$	574.2
Investment Service:
Equity Actively Managed	$	252.2	$	179.8	$	158.4
Equity Passively Managed (1)	68.7		57.1		56.4
Fixed Income Actively Managed – Taxable	253.1		254.4		239.7
Fixed Income Actively Managed – Tax-exempt	53.8		47.9		44.6
Fixed Income Passively Managed (1)	9.6		9.4		9.4
Alternatives/Multi-Asset Solutions (2)	93.4		70.9		65.7
Total	$	730.8	$	619.5	$	574.2

____________

(1)Includes index and enhanced index services.

(2)Includes multi-asset solutions and services not included in equity or fixed income services. Prior to December 31, 2020, this investment service line was disclosed as “Other.” In order to reflect the increasing significance of our Alternatives and Multi-Asset Solutions services, we updated the investment service line to “Alternatives and Multi-Asset Solutions."

95

Year Ended December 31, 2021 Compared to the Year Ended December 31, 2020 for the Investment Management and Research Segment

Operating earnings

Operating earnings increased $132 million to $564 million during the year ended December 31, 2021 from $432 million in the year ended December 31, 2020. The following notable items were the primary drivers of the change in operating earnings:

Favorable items included:

•Fee-type revenue increased by $722 million primarily due to higher investment advisory base fees, performance based fees and distribution revenues, driven by higher average AUM due to market appreciation and net inflows. This is partially offset by lower Bernstein Research Services revenues due to lower trading activity driven by lower global market volatility as compared to the COVID-19 related volatility in the year ended December 31, 2020.

•Net investment income, net of derivative gains, was favorable by $5 million. Net investment income decreased by $18 million mainly due to lower gains on the seed capital investments subject to market risk, offset by an increase in Net derivative gains of $23 million mainly due to lower losses from economically hedging the seed capital investments.

These were partially offset by the following unfavorable items:

•Compensation, benefits, interest expense and other operating costs increased by $295 million mainly due to higher employee compensation attributed to higher revenues.

•Commissions and distribution-related payments increased by $139 million mainly due to higher payments to financial intermediaries for the distribution of AB mutual funds, primarily resulting from increased average AUM of these mutual funds.

•Earnings attributable to noncontrolling interest increased by $114 million due to higher pre-tax earnings.

•Income tax expense increased by $47 million due to higher pre-tax earnings.

Long-Term Net Flows and AUM

•Total AUM as of December 31, 2021 was $778.6 billion up $92.7 billion, or 13.5%, compared to December 31, 2020. The increase was driven primarily by market appreciation of $66.6 billion and net inflows of $26.1 billion (reflecting Retail net inflows of $20.8 billion, Private Wealth Management net inflows of $3.0 billion and Institutional net inflows of $2.3 billion).

•Excluding AXA’s redemption of low-fee fixed income mandates of $1.3 billion and $11.8 billion, AB generated net inflows of $27.4 billion and $9.2 billion during the twelve months ended December 31, 2021 and 2020, respectively. As previously disclosed, AB expects additional redemptions by AXA of low-fee retail AUM in the first half of 2022 of approximately $5 billion.

Year Ended December 31, 2020 Compared to the Year Ended December 31, 2019 for the Investment Management and Research Segment

Operating earnings

For discussion that compares results for the year ended December 31, 2020 to the year ended December 31, 2019 refer to the MD&A section in our 2020 Form 10-K.

Net Flows and AUM

For discussion that compares results for the year ended December 31, 2020 to the year ended December 31, 2019 refer to the MD&A section in our 2020 Form 10-K.

Protection Solutions

The Protection Solutions segment includes our life insurance and employee benefits businesses. We provide a targeted range of products aimed at serving the financial needs of our clients throughout their lives, including VUL, IUL and term life products. In 2015, we entered the employee benefits market and currently offer a suite of dental, vision, life, as well as short- and long-term disability insurance products to small and medium-size businesses.

96

In recent years, we have refocused our product offering and distribution towards less capital intensive, higher return accumulation and protection products. For example, in January 2021, we discontinued offering our most interest sensitive IUL product (“IUL Protect”). We plan to improve our operating earnings over time through earnings generated from sales of our repositioned product portfolio and by proactively managing and optimizing our in-force book.

The following table summarizes operating earnings (loss) of our Protection Solutions segment for the periods presented:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Operating earnings (loss)	$	317	$	146	$	336

Key components of operating earnings (loss) are:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
REVENUES
Policy charges, fee income and premiums	$	2,016	$	1,970	$	2,148
Net investment income	1,102		944		967
Net derivative gains (losses)	(20)		5		10
Investment management, service fees and other income	260		225		241
Segment revenues	$	3,358	$	3,144	$	3,366
BENEFITS AND OTHER DEDUCTIONS
Policyholders’ benefits	$	1,850	$	1,875	$	1,655
Interest credited to policyholders’ account balances	516		514		520
Commissions and distribution related payments	170		160		166
Amortization of deferred policy acquisition costs	93		84		275
Compensation, benefits and other operating costs and expenses	345		337		347
Interest expense	—		—		—
Segment benefits and other deductions	$	2,974	$	2,970	$	2,963

The following table summarizes Protection Solutions Reserves for our Protection Solutions segment as of the dates presented:

	December 31,
	2021		2020
	(in millions)
Protection Solutions Reserves (1)
General Account	$	18,625	$	18,905
Separate Accounts	17,012		14,771
Total Protection Solutions Reserves	$	35,637	$	33,676

_______________

(1)Does not include Protection Solutions Reserves for our employee benefits business as it is a start-up business and therefore has immaterial in-force policies.

The following table presents our in-force face amounts for the periods indicated, respectively, for our individual life insurance products:

97

	December 31,
	2021		2020
	(in billions)
In-force face amount by product: (1)
Universal Life (2)	$	45.9	$	48.7
Indexed Universal Life	27.9		27.7
Variable Universal Life (3)	132.8		127.7
Term	215.4		215.2
Whole Life	1.2		1.3
Total in-force face amount	$	423.2	$	420.6

_______________

(1)Includes individual life insurance and does not include employee benefits as it is a start-up business and therefore has immaterial in-force policies.

(2)UL includes GUL.

(3)VUL includes VL and COLI.

Year Ended December 31, 2021 Compared to the Year Ended December 31, 2020 for the Protection Solutions Segment

Operating earnings

Operating earnings increased $171 million to $317 million during the year ended December 31, 2021 from $146 million in the year ended December 31, 2020. The following notable items were the primary drivers of the change in operating earnings:

Favorable items included:

•Net investment income increased by $158 million mainly due to higher income from our alternative investment portfolio, higher average assets balances, prepayments and General Account portfolio optimization.

•Fee-type revenue increased by $81 million mainly driven by higher premiums due to growth in Employee Benefits and higher investment management and service fees.

•Policyholders’ benefits decreased by $25 million mainly due to a favorable assumption update, and lower claims on traditional products due to the sale of the USFL and MLICA blocks in April 2020, offset by unfavorable mortality driven by COVID-19 claims and older block claims. Employee Benefits’ reserves continue to grow in line with the block size.

These were partially offset by the following unfavorable items:

•Net derivative gains decreased by $25 million mainly due to inflation related hedging loss offset on TIPS in the General Account.

•Commissions and distribution-related payments increased by $10 million mainly due to higher sales.

•Amortization of DAC increased by $9 million mainly due to more favorable model & assumption updates in 2020 vs 2021, offset by lower VISL baseline amortization following the DAC write-off in first half of 2020.

•Income tax expense increased by $39 million primarily due to higher pre-tax earnings.

Year Ended December 31, 2020 Compared to the Year Ended December 31, 2019 for the Protection Solutions Segment

For discussion that compares results for the year ended December 31, 2020 to the year ended December 31, 2019 refer to the MD&A section in our 2020 Form 10-K.

98

Corporate and Other

Corporate and Other includes some of our financing and investment expenses. It also includes: Equitable Advisors broker-dealer business, the Closed Block, run-off variable annuity reinsurance business, run-off group pension business, run-off health business, benefit plans for our employees, certain strategic investments and certain unallocated items, including capital and related investments, interest expense and financing fees and corporate expense. AB’s results of operations are reflected in the Investment Management and Research segment. Accordingly, Corporate and Other does not include any items applicable to AB.

The following table summarizes operating earnings (loss) of Corporate and Other for the periods presented:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Operating earnings (loss)	$	(131)	$	(303)	$	(348)

General Account Investment Portfolio

The General Account investment portfolio supports the insurance and annuity liabilities of our Individual Retirement, Group Retirement and Protection Solutions businesses. Our General Account investment portfolio investment strategy seeks to achieve sustainable risk-adjusted returns by focusing on principal preservation, investment return, duration and liquidity requirements by product class and the diversification of risks. Investment activities are undertaken according to investment policy statements that contain internally established guidelines and are required to comply with applicable laws and insurance regulations. Risk tolerances are established for credit risk, market risk, liquidity risk and concentration risk across types of issuers and asset classes that seek to mitigate the impact of cash flow variability arising from these risks. The impact of COVID-19 continues to be assessed for potential negative impacts to the performance of mortgage loans and fixed maturities.

The General Account investment portfolio consists largely of investment grade fixed maturities, short-term investments, commercial and agricultural mortgage loans, alternative investments and other financial instruments. Fixed maturities include publicly issued corporate bonds, government bonds, privately placed notes and bonds, bonds issued by states and municipalities, mortgage-backed securities and asset-backed securities. The General Account investment portfolio also includes credit derivatives to replicate exposure to individual securities or pools of securities as a means of achieving credit exposure similar to bonds of the underlying issuer(s) more efficiently. In addition, from time to time we use derivatives for hedging purposes to reduce our exposure to equity markets, interest rates and credit spreads. As part of a yield enhancement strategy, the General Account has diversified into more asset and sub-asset classes including higher yielding commercial mortgage investments.

As part of our asset and liability management strategies, we maintain a weighted average duration for our General Account investment portfolio that is within an acceptable range of the estimated duration of our liabilities given our risk appetite and hedging programs.

Investment portfolios are primarily managed by legal entity with dedicated portfolios for certain blocks of business. For portfolios that back multiple product groups, investment results are allocated to business segments.

Our investment philosophy is driven by our long-term commitments to clients, robust risk management and strategic asset allocation. In executing the activities of our General Account investment portfolio, we incorporate ESG factors into the investment processes for a significant portion of our portfolio. As investors with a long-term horizon, we believe that companies with sustainable practices are better positioned to deliver value to stakeholders over an extended period, thereby enhancing the quality of our portfolio. These companies are more likely to increase sales through sustainable products, reduce energy costs and attract and retain talent. This belief underpins our approach to sustainable investing, where we seek to enhance the sustainability of our investment portfolio by integrating ESG factors into our investment decision process.

The General Account investment portfolio reflects certain differences from the presentation of the U.S. GAAP Consolidated Financial Statements. This presentation is consistent with how we manage the General Account investment portfolio. For further investment information, please refer to Note 3 and Note 4 of the Notes to these Consolidated Financial Statements.

99

Investment Results of the General Account Investment Portfolio

The following table summarizes the General Account investment portfolio results with Non-GAAP Operating Earnings adjustments by asset category for the periods indicated. This presentation is consistent with how we measure investment performance for management purposes.

	Year Ended December 31,
	2021				2020				2019
	Yield		Amount (2)		Yield		Amount (2)		Yield		Amount (2)
	(Dollars in millions)
Fixed Maturities:
Income (loss)	3.40	%	$	2,429	3.46	%	$	2,318	3.68	%	$	2,019
Ending assets			72,545				71,738				62,687
Mortgages:
Income (loss)	4.08	%	547		4.13	%	517		4.47	%	541
Ending assets			14,033				13,159				12,107
Other Equity Investments: (1) (4)
Income (loss)	20.45	%	534		6.14	%	95		5.96	%	86
Ending assets			2,901				1,621				1,507
Policy Loans:
Income (loss)	5.01	%	203		5.28	%	204		5.59	%	210
Ending assets			4,024				4,118				3,735
Cash and Short-term Investments:
Income (loss)	(0.13)	%	(2)		0.03	%	1		(0.15)	%	(4)
Ending assets			1,662				2,095				1,856
Funding agreements:
Interest expense and other			(56)				(75)				(110)
Ending assets (liabilities)			(6,647)				(6,897)				(6,909)
Total Invested Assets:
Income (loss)	4.28	%	3,655		3.72	%	3,060		3.92	%	2,742
Ending Assets			88,518				85,834				74,983
Short Duration Fixed Maturities:
Income (loss)	4.48	%	78		3.39	%	184		3.15	%	312
Ending assets			142				4,704				6,173
Total:
Investment income (loss)	4.28	%	3,733		3.70	%	3,244		3.83	%	3,054
Less: investment fees (3)	(0.14)	%	(118)		(0.12)	%	(107)		(0.13)	%	(103)
Investment Income, Net	4.15	%	3,615		3.57	%	3,137		3.70	%	2,951
Ending Net Assets			$	88,660			$	90,538			$	81,156

_____________

(1)Includes, as of December 31, 2021, December 31, 2020 and December 31, 2019 respectively, $319 million, $333 million and $365 million of other invested assets.

(2)Amount for fixed maturities and mortgages represents original cost, reduced by repayments, write-downs, adjusted amortization of premiums, accretion of discount and allowances. Cost for equity securities represents original cost reduced by write-downs; cost for other limited partnership interests represents original cost adjusted for equity in earnings and reduced by distributions.

(3)Investment fees are inclusive of investment management fees paid to AB.

(4)Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 of the Notes to these Consolidated Financial Statements- Investments).

100

Fixed Maturities

The fixed maturity portfolio consists largely of investment grade corporate debt securities and includes significant amounts of U.S. government and agency obligations. The limited below investment grade securities in the General Account investment portfolio consist of “fallen angels,” originally purchased as investment grade, as well as short duration public high yield securities and loans to middle market companies.

Fixed Maturities by Industry

The following table sets forth these fixed maturities by industry category as of the dates indicated along with their associated gross unrealized gains and losses.

Fixed Maturities by Industry (1)

	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Percentage of Total (%)
	(in millions)
As of December 31, 2021
Corporate Securities:
Finance	$	12,954	$	—	$	545	$	59	$	13,440	17	%
Manufacturing	12,212		1		775		39		12,947		17	%
Utilities	6,446		—		351		36		6,761		9	%
Services	8,191		21		380		50		8,500		11	%
Energy	3,854		—		174		17		4,011		5	%
Retail and wholesale	3,390		—		218		18		3,590		5	%
Transportation	2,181		—		156		10		2,327		3	%
Other	60		—		2		—		62		—	%
Total corporate securities	49,288		22		2,601		229		51,638		67	%
U.S. government	13,056		—		2,344		15		15,385		20	%
Residential mortgage-backed (2)	90		—		8		—		98		—	%
Preferred stock (4)	41		—		12		—		53		—	%
State & political	586		—		78		3		661		1	%
Foreign governments	1,124		—		42		14		1,152		1	%
Commercial mortgage-backed	2,427		—		19		25		2,421		3	%
Asset-backed securities	5,933		—		21		20		5,934		8	%
Total	$	72,545	$	22	$	5,125	$	306	$	77,342	100	%

101

As of December 31, 2020: (3)
Corporate Securities:
Finance	$	14,411	$	—	$	1,112	$	9	$	15,514	19	%
Manufacturing	13,040		—		1,520		18		14,542		18	%
Utilities	6,352		—		681		6		7,027		9	%
Services	7,830		13		680		27		8,470		11	%
Energy	4,084		—		364		23		4,425		6	%
Retail and wholesale	3,747		—		435		3		4,179		5	%
Transportation	2,424		—		301		4		2,721		3	%
Other	157		—		7		2		162		—	%
Total corporate securities	52,045		13		5,100		92		57,040		71	%
U.S. government	12,660		—		3,448		5		16,103		20	%
Residential mortgage-backed (2)	130		—		13		—		143		—	%
Preferred stock	621		—		48		3		666		1	%
State & political	536		—		100		—		636		1	%
Foreign governments	1,011		—		98		6		1,103		1	%
Commercial mortgage-backed	1,148		—		55		—		1,203		2	%
Asset-backed securities	3,587		—		29		5		3,611		4	%
Total	$	71,738	$	13	$	8,891	$	111	$	80,505	100	%

______________

(1)Investment data has been classified based on standard industry categorizations for domestic public holdings and similar classifications by industry for all other holdings.

(2)Includes publicly traded agency pass-through securities and collateralized obligations.

(3)Excludes amounts reclassified as HFS.

(4)Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 of the Notes to these Consolidated Financial Statements- Investments).

Fixed Maturities Credit Quality

The SVO of the NAIC evaluates the investments of insurers for regulatory reporting purposes and assigns fixed maturities to one of six categories (“NAIC Designations”). NAIC Designations of “1” or “2” include fixed maturities considered investment grade, which include securities rated Baa3 or higher by Moody’s or BBB- or higher by Standard & Poor’s. NAIC Designations of “3” through “6” are referred to as below investment grade, which include securities rated Ba1 or lower by Moody’s and BB+ or lower by Standard & Poor’s. As a result of time lags between the funding of investments and the completion of the SVO filing process, the fixed maturity portfolio typically includes securities that have not yet been rated by the SVO as of each balance sheet date. Pending receipt of SVO ratings, the categorization of these securities by NAIC designation is based on the expected ratings indicated by internal analysis.

The following table sets forth the General Account’s fixed maturities portfolio by NAIC rating at the dates indicated.

102

Fixed Maturities

NAIC Designation	Rating Agency Equivalent	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
		(in millions)
As of December 31, 2021
1................................	Aaa, Aa, A	$	44,653	$	—	$	3,734	$	158	$	48,229
2................................	Baa	25,141		—		1,357		127		26,371
	Investment grade	69,794		—		5,091		285		74,600
3................................	Ba	1,601		1		22		14		1,608
4................................	B	992		19		8		5		976
5................................	Caa	130		2		4		1		131
6................................	Ca, C	28		—		—		1		27
	Below investment grade	2,751		22		34		21		2,742
Total Fixed Maturities		$	72,545	$	22	$	5,125	$	306	$	77,342
As of December 31, 2020: (1)
1................................	Aaa, Aa, A	$	44,146	$	—	$	6,227	$	32	$	50,341
2................................	Baa	25,285		—		2,621		26		27,880
	Investment grade	69,431		—		8,848		58		78,221
3................................	Ba	1,436		—		33		19		1,450
4................................	B	769		13		7		28		735
5................................	Caa	92		—		3		5		90
6................................	Ca, C	10		—		—		1		9
	Below investment grade	2,307		13		43		53		2,284
Total Fixed Maturities		$	71,738	$	13	$	8,891	$	111	$	80,505

______________

(1)Excludes amounts reclassified as HFS.

103

Mortgage Loans

The mortgage portfolio primarily consists of commercial and agricultural mortgage loans. The investment strategy for the mortgage loan portfolio emphasizes diversification by property type and geographic location with a primary focus on asset quality. The tables below show the breakdown of the amortized cost of the General Account’s investments in mortgage loans by geographic region and property type as of the dates indicated.

Mortgage Loans by Region and Property Type

	December 31, 2021				December 31, 2020
	Amortized Cost		% of Total		Amortized Cost		% of Total
	(in millions)
By Region:
U.S. Regions:
Pacific	$	4,297	30	%	$	3,912	30	%
Middle Atlantic	3,441		24		3,662		28
South Atlantic	1,982		14		1,290		10
East North Central	1,103		8		1,122		8
Mountain	978		7		1,026		8
West North Central	834		6		875		7
West South Central	609		5		690		5
New England	579		4		511		3
East South Central	146		1		152		1
Total U.S.	$	13,969	99	%	$	13,240	100	%
Other Regions:
Europe	$	126	1	%	$	—	—	%
Total Other	$	126	1		$	—	—
Total Mortgage Loans	$	14,095	100	%	$	13,240	100	%
By Property Type:
Office	$	3,944	28	%	$	4,131	31	%
Multifamily	4,694		33		4,027		30
Agricultural loans	2,644		19		2,732		21
Retail	728		5		742		6
Industrial	1,204		9		787		6
Hospitality	410		3		477		4
Other	471		3		344		2
Total Mortgage Loans	$	14,095	100	%	$	13,240	100	%

104

Liquidity and Capital Resources

Liquidity refers to our ability to generate adequate amounts of cash from our operating, investment and financing activities to meet our cash requirements with a prudent margin of safety. Capital refers to our long-term financial resources available to support business operations and future growth. Our ability to generate and maintain sufficient liquidity and capital is dependent on the profitability of our businesses, timing of cash flows related to our investments and products, our ability to access the capital markets, general economic conditions and the alternative sources of liquidity and capital described herein. When considering our liquidity and cash flows, we distinguish between the needs of Holdings and the needs of our insurance and non-insurance subsidiaries. We also distinguish and separately manage the liquidity and capital resources of our retirement and protection businesses (our Individual Retirement, Group Retirement and Protection Solutions segments) and our Investment Management and Research segment.

Sources and Uses of Liquidity

The Company has sufficient cash flows from operations to satisfy liquidity requirements in 2022.

Cash Flows of Holdings

As a holding company with no business operations of its own, Holdings primarily derives cash flows from dividends from its subsidiaries and distributions related to its economic interest in AB, nearly all of which is currently held outside our insurance company subsidiaries. These principal sources of liquidity are augmented by cash and short-term investments held by Holdings and access to bank lines of credit and the capital markets. The main uses of liquidity for Holdings are interest payments and debt repayment, payment of dividends and other distributions to stockholders (which may include stock repurchases) loans and capital contributions, if needed, to our insurance subsidiaries. Our principal sources of liquidity and our capital position are described in the following paragraphs.

Sources and Uses of Holding Company Highly Liquid Assets

The following table sets forth Holdings’ principal sources and uses of highly liquid assets for the periods indicated.

	Year Ended December 31,
	2021		2020
	(in millions)
Highly Liquid Assets, beginning of period	$	3,088	$	1,589
Dividends from subsidiaries	792		2,877
Capital contributions to subsidiaries	(815)		(350)
M&A Activity	215		—
Income taxes payable	—		—
Total Business Capital Activity	192		2,527
Purchase of treasury shares	(1,637)		(430)
Shareholder dividends paid	(296)		(297)
Total Share Repurchases, Dividends and Acquisition Activity	(1,933)		(727)
Issuance of preferred stock	293		494
Preferred stock dividend	(79)		(53)
Total Preferred Stock Activity	214		441
Issuance of long-term debt	—		—
Repayment of long-term debt	(280)		—
Total External Debt Activity	(280)		—
Repayments of loans from affiliates	—		(300)
Proceeds from loans from affiliates	1,000		—
Repayment of loans to affiliates	—		—

105

	Year Ended December 31,
	2021		2020
	(in millions)
Issuance of loans to affiliates	—		—
Net decrease (increase) in loans to affiliates	(80)		(115)
Total Affiliated Debt Activity	920		(415)
Interest paid on external debt and P-Caps	(233)		(220)
Others, net	(226)		(107)
Total Other Activity	(459)		(327)
Net increase (decrease) in highly liquid assets	(1,346)		1,499
Highly Liquid Assets, end of period	$	1,742	$	3,088

Capital Contribution to Our Subsidiaries

In June 2021, Holdings made a $750 million cash capital contribution to facilitate a corporate restructuring involving administrative services for Equitable Financial’s Separate Accounts.

Loans from Our Subsidiaries

In June 2021, Equitable Financial made a $1.0 billion 10-year term loan to Holdings for generic liquidity management purpose. The loan has an interest rate of 3.23% and matures in June 2031.

Cash Distributions from Our Subsidiaries

In 2021, Holdings and certain of its subsidiaries received pretax cash distributions from AB of $677 million, EIM of $61 million and $140 million in dividends from Equitable Advisors.

Distributions from Insurance Subsidiaries

Our insurance companies are subject to limitations on the payment of dividends and other transfers of funds to Holdings and other affiliates under applicable insurance law and regulation. Also, more generally, the ability of our insurance subsidiaries to pay dividends can be affected by market conditions and other factors beyond our control.

Under New York insurance law applicable to Equitable Financial, a domestic stock life insurer may not, without prior approval of the NYDFS, pay an Ordinary Dividend. Extraordinary Dividends require the insurer to file a notice of its intent to declare the dividends with the NYDFS and prior approval or non-disapproval from the NYDFS. Due to a permitted statutory accounting practice agreed to with the NYDFS, Equitable Financial will need the prior approval of the NYDFS to pay a Permitted Practice Ordinary Dividend. Applying the formulas above, Equitable Financial could pay an Ordinary Dividend of up to approximately $865 million in 2022.

Distributions from AllianceBernstein

ABLP is required to distribute all of its Available Cash Flow, as defined in the Amended and Restated Partnership Agreement of ABLP, to the holders of AB Units and to the General Partner. Available Cash Flow is defined as the cash flow received by ABLP from operations minus such amounts as the General Partner determines, in its sole discretion, should be retained by ABLP for use in its business, or plus such amounts as the General Partner determines, in its sole discretion, should be released from previously retained cash flow. Distributions by ABLP are made 1% to the General Partner and 99% among the limited partners.

Typically, Available Cash Flow has been the adjusted diluted net income per unit for the quarter multiplied by the number of general and limited partnership interests at the end of the quarter. In future periods, management of AB anticipates that Available Cash Flow will be based on adjusted diluted net income per unit, unless management of AB determines, with the concurrence of the Board of Directors of AB, that one or more adjustments that are made for adjusted net income should not be made with respect to the Available Cash Flow calculation.

106

AB Holding is required to distribute all of its Available Cash Flow, as defined in the Amended and Restated Agreement of Limited Partnership of AB Holding, to holders of AB Holding Units pro rata in accordance with their percentage interest in AB Holding. Available Cash Flow is defined as the cash distributions AB Holding receives from ABLP minus such amounts as the General Partner determines, in its sole discretion, should be retained by AB Holding for use in its business (such as the payment of taxes) or plus such amounts as the General Partner determines, in its sole discretion, should be released from previously retained cash flow. AB Holding is dependent on the quarterly cash distributions it receives from ABLP, which is subject to the performance of capital markets and other factors beyond our control. Distributions from AB Holding are made pro rata based on the holder’s percentage ownership interest in AB Holding.

As of December 31, 2021, Holdings and its non-insurance company subsidiaries hold approximately 170.1 million AB Units, 4.1 million AB Holding Units and the 1% General Partnership interest in ABLP.

As of December 31, 2021, the ownership structure of ABLP, including AB Units outstanding as well as the general partner’s 1% interest, was as follows:

Owner	Percentage Ownership
EQH and its subsidiaries	63.0	%
AB Holding	36.2	%
Unaffiliated holders	0.8	%
Total	100.0	%

Including both the general partnership and limited partnership interests in AB Holding and ABLP, Holdings and its subsidiaries had an approximate 65% economic interest in AB as of December 31, 2021.

Holdings Credit Facilities

On June 24, 2021, Holdings entered into the Amended and Restated Revolving Credit Agreement with respect to a five-year senior unsecured revolving credit facility (the “Credit Facility”), which lowered the facility amount to $1.5 billion and extended the maturity date to June 24, 2026, among other changes. The Amended and Restated Revolving Credit Agreement amends the Revolving Credit Agreement entered into by Holdings on February 16, 2018, as amended on March 22, 2021.

The Credit Facility may provide significant support to our liquidity position when alternative sources of credit are limited. In addition to the Credit Facility, we have letter of credit facilities with an aggregate principal amount of approximately $1.9 billion (the “LOC Facilities”), primarily to be used to support our life insurance business reinsured to EQ AZ Life Re in April 2018. In June 2021, Holdings entered into amendments with each of the issuers of its bilateral letter of credit facilities to effect changes similar to those effected in the amended and restated revolving credit agreement. The respective facility limits of the bilateral letter of credit facilities remained unchanged.

The Credit Facility and LOC Facilities contain certain administrative, reporting, legal and financial covenants, including requirements to maintain a specified minimum consolidated net worth and to maintain a ratio of indebtedness to total capitalization not in excess of a specified percentage, and limitations on the dollar amount of indebtedness that may be incurred by our subsidiaries and the dollar amount of secured indebtedness that may be incurred by us, which could restrict our operations and use of funds. The right to borrow funds under the Credit Facility and LOC Facilities is subject to the fulfillment of certain conditions, including compliance with all covenants, and the ability to borrow thereunder is also subject to the continued ability of the lenders that are or will be parties to the facilities to provide funds. As of December 31, 2021, we were in compliance with these covenants”.

Contingent Funding Arrangements

For information regarding activity pertaining to our contingent funding arrangements and other off-balance sheet commitments, see “Commitments and Contingent Liabilities in ” Note 17 of the Notes to these Consolidated Financial Statements in this Form 10-K.

Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock

For information pertaining to our Series A, Series B and Series C Preferred Stock see Note 20 of the Notes to these Consolidated Financial Statements.

107

Capital Position of Holdings

We manage our capital position to maintain financial strength and credit ratings that facilitate the distribution of our products and provide our desired level of access to the bank and capital markets. Our capital position is supported by the ability of our subsidiaries to generate cash flows and distribute cash to us and our ability to effectively manage the risk of our businesses and to borrow funds and raise capital to meet our operating and growth needs.

Our Board and senior management are directly involved in the development of our capital management policies. Accordingly, capital actions, including proposed changes to the annual capital plan, capital targets and capital policies, are approved by the Board.

Dividends Declared and Paid

The declaration and payment of future dividends is subject to the discretion of our Board of Directors and depends on our financial condition, results of operations, cash requirements, future prospects, regulatory restrictions on the payment of dividends by Holdings’ insurance subsidiaries and other factors deemed relevant by the Board. 

The payment of dividends will be substantially restricted in the event that we do not declare and pay (or set aside) dividends on the Series A, Series B and Series C Preferred Stock for the last proceeding dividend period. For additional information on our preferred stock, see “—Series A, Series B and Series C Preferred Stock”.

For information regarding activity pertaining to common and preferred dividends declared and paid, see Note 20 of the Notes to these Consolidated Financial Statements.

Share Repurchase Programs

For information regarding activity pertaining to share repurchase programs, see Note 20 of the Notes to these Consolidated Financial Statements.

Sources and Uses of Liquidity of Our Insurance Subsidiaries

The principal sources of liquidity for our insurance subsidiaries are premiums, investment and fee income, deposits associated with our insurance and annuity operations, cash and invested assets, as well as internal borrowings. The principal uses of that liquidity include benefits, claims and dividends paid to policyholders and payments to policyholders in connection with surrenders and withdrawals. Other uses of liquidity include commissions, general and administrative expenses, purchases of investments, the payment of dividends to Holdings and hedging activity. Certain of our insurance subsidiaries’ principal sources and uses of liquidity are described in the paragraphs that follow.

We manage the liquidity of our insurance subsidiaries with the objective of ensuring that they can meet payment obligations linked to our Individual Retirement, Group Retirement and Protection Solutions businesses and to their outstanding debt and derivative positions, including in our hedging programs, without support from Holdings. We employ an asset/liability management approach specific to the requirements of each of our insurance businesses. We measure liquidity against internally-developed benchmarks that consider the characteristics of our asset portfolio and the liabilities that it supports in both the short-term (the next 12 months) and long-term (beyond the next 12 months). We consider attributes of the various categories of our liquid assets (for example, type of asset and credit quality) in calculating internal liquidity indicators for our insurance and reinsurance operations. Our liquidity benchmarks are established for various stress scenarios and durations, including company-specific and market-wide events. The scenarios we use to evaluate the liquidity of our subsidiaries are defined to allow operating entities to operate without support from Holdings.

Liquid Assets

The investment portfolios of our insurance subsidiaries are a significant component of our overall liquidity. Liquid assets include cash and cash equivalents, short-term investments, U.S. Treasury fixed maturities, fixed maturities that are not designated as HTM and public equity securities. We believe that our business operations and the liquidity profile of our assets provide sufficient liquidity under reasonably foreseeable stress scenarios for each of our insurance subsidiaries.

See “—General Account Investment Portfolio” and Note 3 and Note 4 of the Notes to these Consolidated Financial Statements for a description of our retirement and protection businesses’ portfolio of liquid assets.

Hedging Activities

108

Because the future claims exposure on our insurance products, and in particular our variable annuity products with GMxB features, is sensitive to movements in the equity markets and interest rates, we have in place various hedging and reinsurance programs that are designed to mitigate the economic risks of movements in the equity markets and interest rates. We use derivatives as part of our overall asset/liability risk management program primarily to reduce exposures to equity market and interest rate risks. In addition, we use credit derivatives to replicate exposure to individual securities or pools of securities as a means of achieving credit exposure similar to bonds of the underlying issuer(s) more efficiently. The derivative contracts are an integral part of our risk management program, especially for the management of our variable annuities program, and are collectively managed to reduce the economic impact of unfavorable movements in capital markets. These derivative transactions require liquidity to meet payment obligations such as payments for periodic settlements, purchases, maturities and terminations as well as liquid assets pledged as collateral related to any decline in the net estimated fair value. Collateral calls represent one of our biggest drivers for liquidity needs for our insurance subsidiaries. Our derivatives contracts reside primarily within Equitable Financial, which has a significantly large investment portfolio.

FHLB Membership

Equitable Financial and Equitable America are members of the FHLB, which provides access to collateralized borrowings and other FHLB products.

See Note 17 of the Notes to these Consolidated Financial Statements for further description of our FHLB program.

FABN

Under the FABN program, Equitable Financial may issue funding agreements in U.S. dollar or other foreign currencies.

See Note 17 of the Notes to these Consolidated Financial Statements for further description of our FABN program.

Sources and Uses of Liquidity of our Investment Management and Research Segment

The principal sources of liquidity for our Investment Management and Research business include investment management fees and borrowings under its credit facilities and commercial paper program. The principal uses of liquidity include general and administrative expenses, business financing and distributions to holders of AB Units and AB Holding Units plus interest and debt service. The primary liquidity risk for our fee-based Investment Management and Research business is its profitability, which is impacted by market conditions and our investment management performance.

For information regarding our Investment Management and Research credit facilities and commercial paper program with external parties, see Note 12 of the Notes to these Consolidated Financial Statements.

EQH Facility

AB has a $900 million committed, unsecured senior credit facility (the “EQH Facility”). The EQH Facility matures on November 4, 2024 and is available for AB’s general business purposes. Borrowings under the EQH Facility generally bear interest at a rate per annum based on prevailing overnight commercial paper rates.

The EQH Facility contains affirmative, negative and financial covenants which are substantially similar to those in AB’s committed bank facilities. The EQH Facility also includes customary events of default substantially similar to those in AB’s committed bank facilities, including provisions under which, upon the occurrence of an event of default, all outstanding loans may be accelerated and/or the lender’s commitment may be terminated.

Amounts under the EQH Facility may be borrowed, repaid and re-borrowed by AB from time to time until the maturity of the facility. AB or Holdings may reduce or terminate the commitment at any time without penalty upon proper notice. Holdings also may terminate the facility immediately upon a change of control of AB’s general partner.

As of December 31, 2021 and 2020, AB had $755 million and $675 million outstanding under the EQH Facility, in each case with an interest rate of approximately 0.2%. Average daily borrowing of the EQH Facility during 2021 and 2020 were $405 million and $471 million, respectively, with a weighted average interest rate of approximately 0.2% and 0.5% respectively.

EQH Uncommitted Facility

109

In addition to the EQH Facility, on September 1, 2020, AB established a new $300 million uncommitted, unsecured senior credit facility (the “EQH Uncommitted Facility”) with EQH. The EQH Uncommitted Facility matures on September 1, 2024 and is available for AB’s general business purposes. Borrowings under the EQH Uncommitted Facility bear generally interest at a rate per annum based on prevailing overnight commercial paper rates. The EQH Uncommitted Facility contains affirmative, negative and financial covenants, which are substantially similar to those in the EQH Facility.

As of December 31, 2021 and 2020, AB had no outstanding balance on the EQH Uncommitted Facility. During the periods ended December 31, 2021 and 2020, AB did not draw upon the EQH Uncommitted Facility.

Statutory Capital of Our Insurance Subsidiaries

Our capital management framework for our insurance subsidiaries is primarily based on statutory RBC standards and the CTE asset standard for our variable annuity business.

RBC requirements are used as minimum capital requirements by the NAIC and the state insurance departments to evaluate the capital condition of regulated insurance companies. RBC is based on a formula calculated by applying factors to various asset, premium, claim, expense and statutory reserve items. The formula takes into account the risk characteristics of the insurer, including asset risk, insurance risk, interest rate risk, market risk and business risk and is calculated on a quarterly basis and made public on an annual basis. The formula is used as an early warning regulatory tool to identify possible inadequately capitalized insurers for purposes of initiating regulatory action, and not as a means to rank insurers generally. These rules apply to our insurance company subsidiaries and not to Holdings. State insurance laws provide insurance regulators the authority to require various actions by, or take various actions against, insurers whose total adjusted capital does not meet or exceed certain RBC levels. At the date of the most recent annual statutory financial statements filed with insurance regulators, the total adjusted capital of each of these insurance company subsidiaries subject to these requirements was in excess of each of those RBC levels.

Please see Note 20 of the Notes to these Consolidated Financial Statements for additional information relating to Permitted Statutory Accounting practices and its impact on our statutory surplus.

Captive Reinsurance Company

We use a captive reinsurance company to more effectively manage our reserves and capital on an economic basis and to enable the aggregation and transfer of risks. Our captive reinsurance company assumes business from affiliates only and is closed to new business. Our captive reinsurance company is a wholly-owned subsidiaries located in the United States. In addition to state insurance regulation, our captive is subject to internal policies governing its activities. We continue to analyze the use of our existing captive reinsurance structure, as well as additional third-party reinsurance arrangements.

Borrowings

Our financial strategy going forward will remain subject to market conditions and other factors. For example, we may from time to time enter into additional bank or other financing arrangements, including public or private debt, structured facilities and contingent capital arrangements, under which we could incur additional indebtedness.

For information regarding activity pertaining to our total consolidated borrowings, see Note 12 of the Notes to these Consolidated Financial Statements.

Ratings

Financial strength ratings (which are sometimes referred to as “claims-paying” ratings) and credit ratings are important factors affecting public confidence in an insurer and its competitive position in marketing products. Our credit ratings are also important for our ability to raise capital through the issuance of debt and for the cost of such financing.

Financial strength ratings represent the opinions of rating agencies regarding the financial ability of an insurance company to meet its obligations under an insurance policy. Credit ratings represent the opinions of rating agencies regarding an entity’s ability to repay its indebtedness. The following table summarizes the ratings for Holdings and certain of its subsidiaries. AM Best and S&P have a stable outlook while Moody’s has a positive outlook.

110

	AM Best	S&P	Moody’s
Last review date	Jan '22	Nov '21	Aug '21
Financial Strength Ratings:
Equitable Financial Life Insurance Company	A	A+	A2
Equitable Financial Life Insurance Company of America	A	A+	A2
Credit Ratings:
Equitable Holdings, Inc.		BBB+	Baa2
Last review date		Sep '21	Dec '21
AllianceBernstein L.P.		A	A2

Material Cash Requirements

The table below summarizes the material short and long-term cash requirements related to contractual and other obligations as of December 31, 2021. Short-term cash requirements are considered to requirements within the next 12 months and long-term cash requirements are considered to be beyond the next 12 months. We do not believe that our cash flow requirements can be adequately assessed based solely upon an analysis of these obligations, as the table below does not contemplate all aspects of our cash inflows, such as the level of cash flow generated by certain of our investments, nor all aspects of our cash outflows.

	Estimated Payments Due by Year
	Total		2022		2023-2024		2025-2026		2027 and thereafter
	(in millions)
Material Cash Requirements:
Insurance liabilities (1)	$	107,485	$	1,509	$	4,671	$	6,426	$	94,879
FHLB Funding Agreements	6,643		5,353		644		646		—
Interest on FHLB Funding Agreements	100		29		48		23		—
FABN Funding Agreements	6,759		—		2,500		2,100		2,159
Interest on FABN Funding Agreements	372		74		137		105		56
Operating leases, net of sublease commitments	1,106		153		234		149		570
Long-term debt	3,870		—		520		—		3,350
Interest on long-term debt	2,602		185		340		330		1,747
Interest on P-Caps	394		24		47		47		276
Employee benefits	3,498		211		451		383		2,453
Funding Commitments	2,118		520		832		766		—
Total Material Cash Requirements	$	134,947	$	8,058	$	10,424	$	10,975	$	105,490

______________

(1) Policyholders’ liabilities represent estimated cash flows out of the General Account related to the payment of death and disability claims, policy surrenders and withdrawals, annuity payments, minimum guarantees on Separate Account funded contracts, matured endowments, benefits under accident and health contracts, policyholder dividends and future renewal premium-based and fund-based commissions offset by contractual future premiums and deposits on in-force contracts. These estimated cash flows are based on mortality, morbidity and lapse assumptions comparable with the Company’s experience and assume market growth and interest crediting consistent with actuarial assumptions. These amounts are undiscounted and, therefore, exceed the policyholders’ account balances and future policy benefits and other policyholder liabilities included in the consolidated balance sheet included elsewhere in this Annual Report on Form 10-K. They do not reflect projected recoveries from reinsurance agreements. Due to the use of assumptions, actual cash flows will differ from these estimates, see “— Summary of Critical Accounting Estimates — Liability for Future Policy Benefits.” Separate Accounts liabilities have been excluded as they are legally insulated from General Account obligations and will be funded by cash flows from Separate Accounts assets.

Unrecognized tax benefits of $323 million, including $3 million related to AB were not included in the above table because it is not possible to make reasonably reliable estimates of the occurrence or timing of cash settlements with the respective taxing authorities.

In addition, the below items are included as part of AB’s aggregate contractual obligations:

111

•As of December 31, 2021, AB had a $354 million accrual for compensation and benefits, of which $9 million is expected to be paid in 2022, $15 million in 2023-2024, $18 million in 2025-2026 and $46 million in 2027 and thereafter. Further, AB expects to make contributions to its qualified profit-sharing plan of $16 million in each of the next four years.

•During 2010, as general partner of AllianceBernstein U.S. Real Estate L.P. (“Real Estate Fund”), AB committed to invest $25 million in the Real Estate Fund. As of December 31, 2021, AB funded $22 million of this commitment. During 2014, as general partner of AllianceBernstein U.S. Real Estate II L.P. (“Real Estate Fund II”), AB committed to invest $27 million as amended in 2020, in the Real Estate Fund II. As of December 31, 2021, AB had funded $21 million of this commitment.

Summary of Critical Accounting Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported in our consolidated financial statements included elsewhere herein. For a discussion of our significant accounting policies, see Note 2 of the Notes to these Consolidated Financial Statements. The most critical estimates include those used in determining:

•liabilities for future policy benefits;

•accounting for reinsurance;

•capitalization and amortization of DAC;

•estimated fair values of investments in the absence of quoted market values and investment impairments;

•estimated fair values of freestanding derivatives and the recognition and estimated fair value of embedded derivatives requiring bifurcation;

•goodwill and related impairment;

•measurement of income taxes and the valuation of deferred tax assets; and

•liabilities for litigation and regulatory matters.

In applying our accounting policies, we make subjective and complex judgments that frequently require estimates about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries while others are specific to our business and operations. Actual results could differ from these estimates.

Liability for Future Policy Benefits

We establish reserves for future policy benefits to, or on behalf of, policyholders in the same period in which the policy is issued or acquired, using methodologies prescribed by U.S. GAAP. The assumptions used in establishing reserves are generally based on our experience, industry experience or other factors, as applicable. At least annually we review our actuarial assumptions, such as mortality, morbidity, retirement and policyholder behavior assumptions, and update assumptions when appropriate. Generally, we do not expect trends to change significantly in the short-term and, to the extent these trends may change, we expect such changes to be gradual over the long-term. The reserving methodologies used include the following:

•UL and investment-type contract policyholder account balances are equal to the policy AV. The policy AV represent an accumulation of gross premium payments plus credited interest less expense and mortality charges and withdrawals.

•Participating traditional life insurance future policy benefit liabilities are calculated using a net level premium method on the basis of actuarial assumptions equal to guaranteed mortality and dividend fund interest rates.

•Non-participating traditional life insurance future policy benefit liabilities are estimated using a net level premium method on the basis of actuarial assumptions as to mortality, persistency and interest.

For most long-duration contracts, we utilize best estimate assumptions as of the date the policy is issued or acquired with provisions for the risk of adverse deviation, as appropriate. After the liabilities are initially established, we perform premium deficiency tests using best estimate assumptions as of the testing date without provisions for adverse deviation. If the liabilities determined based on these best estimate assumptions are greater than the net reserves (i.e., U.S. GAAP reserves net of any

112

DAC or DSI), the existing net reserves are adjusted by first reducing the DAC or DSI by the amount of the deficiency or to zero through a charge to current period earnings. If the deficiency is more than these asset balances for insurance contracts, we then increase the net reserves by the excess, again through a charge to current period earnings. If a premium deficiency is recognized, the assumptions as of the premium deficiency test date are locked in and used in subsequent valuations and the net reserves continue to be subject to premium deficiency testing.

For certain reserves, such as those related to GMDB and GMIB features, we use current best estimate assumptions in establishing reserves. The reserves are subject to adjustments based on periodic reviews of assumptions and quarterly adjustments for experience, including market performance, and the reserves may be adjusted through a benefit or charge to current period earnings.

For certain GMxB features in our Individual Retirement segment, the benefits are accounted for as embedded derivatives, with fair values calculated as the present value of expected future benefit payments to contract holders less the present value of assessed rider fees attributable to the embedded derivative feature. Under U.S. GAAP, the fair values of these benefit features are based on assumptions a market participant would use in valuing these embedded derivatives. Changes in the fair value of the embedded derivatives are recorded quarterly through a benefit or charge to current period earnings.

The assumptions used in establishing reserves are generally based on our experience, industry experience and/or other factors, as applicable. We typically update our actuarial assumptions, such as mortality, morbidity, retirement and policyholder behavior assumptions, annually, unless a material change is observed in an interim period that we feel is indicative of a long-term trend. Generally, we do not expect trends to change significantly in the short-term and, to the extent these trends may change, we expect such changes to be gradual over the long-term. In a sustained low interest rate environment, there is an increased likelihood that the reserves determined based on best estimate assumptions may be greater than the net liabilities.

See Note 2 of the Notes to these Consolidated Financial Statements for additional information on our accounting policy relating to GMxB features and liability for future policy benefits and Note 9 of the Notes to these Consolidated Financial Statements for future policyholder benefit liabilities.

Sensitivity of Future Rate of Return Assumptions on GMDB/GMIB Reserves

The Separate Account future rate of return assumptions that are used in establishing reserves for GMxB features are set using a long term-view of expected average market returns by applying a reversion to the mean approach, consistent with that used for DAC amortization. For additional information regarding the future expected rate of return assumptions and the reversion to the mean approach, see, “—DAC and Policyholder Bonus Interest Credits.”

The GMDB/GMIB reserve balance before reinsurance ceded was $10.8 billion as of December 31, 2021. The following table provides the sensitivity of the reserves GMxB features related to variable annuity contracts relative to the future rate of return assumptions by quantifying the adjustments to these reserves that would be required assuming both a 1% increase and decrease in the future rate of return. This sensitivity considers only the direct effect of changes in the future rate of return on operating results due to the change in the reserve balance before reinsurance ceded and not changes in any other assumptions such as persistency, mortality, or expenses included in the evaluation of the reserves, or any changes on DAC or other balances including hedging derivatives and the GMIB reinsurance asset.

GMDB/GMIB Reserves

Sensitivity - Rate of Return

December 31, 2021

	Increase/(Decrease) in GMDB/GMIB Reserves
	(in millions)
1% decrease in future rate of return	$	1,363
1% increase in future rate of return	$	(1,667)

Traditional Annuities

The reserves for future policy benefits for annuities include group pension and payout annuities, and, during the accumulation period, are equal to accumulated policyholders’ fund balances and, after annuitization, are equal to the present value of expected future payments based on assumptions as to mortality, retirement, maintenance expense, and interest rates.

113

Interest rates used in establishing such liabilities range from 1.5% to 5.4% (weighted average of 3.5%). If reserves determined based on these assumptions are greater than the existing reserves, the existing reserves are adjusted to the greater amount.

Health

Individual health benefit liabilities for active lives are estimated using the net level premium method and assumptions as to future morbidity, withdrawals and interest. Benefit liabilities for disabled lives are estimated using the present value of benefits method and experience assumptions as to claim terminations, expenses and interest.

Reinsurance

Accounting for reinsurance requires extensive use of assumptions and estimates, particularly related to the future performance of the underlying business and the potential impact of counterparty credit risk with respect to reinsurance receivables. We periodically review actual and anticipated experience compared to the aforementioned assumptions used to establish assets and liabilities relating to ceded and assumed reinsurance and evaluate the financial strength of counterparties to our reinsurance agreements using criteria similar to those evaluated in our security impairment process. See “—Estimated Fair Value of Investments.” Additionally, for each of our reinsurance agreements, we determine whether the agreement provides indemnification against loss or liability relating to insurance risk, in accordance with applicable accounting standards. We review all contractual features, including those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims. If we determine that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, we record the agreement using the deposit method of accounting.

For reinsurance contracts other than those covering GMIB exposure, reinsurance recoverable balances are calculated using methodologies and assumptions that are consistent with those used to calculate the direct liabilities. GMIB reinsurance contracts are used to cede affiliated and non-affiliated reinsurers a portion of the exposure on variable annuity products that offer the GMIB feature. The GMIB reinsurance contracts are accounted for as derivatives and are reported at fair value. Gross reserves for GMIB, on the other hand, are calculated on the basis of assumptions related to projected benefits and related contract charges over the lives of the contracts, therefore, will not immediately reflect the offsetting impact on future claims exposure resulting from the same capital market and/or interest rate fluctuations that cause gains or losses on the fair value of the GMIB reinsurance contracts.

See Note 11 of the Notes to these Consolidated Financial Statements for additional information on our reinsurance.

DAC

We incur significant costs in connection with acquiring new and renewal insurance business. Costs that relate directly to the successful acquisition or renewal of insurance contracts, are deferred as DAC. In addition to commissions, certain direct-response advertising expenses and other direct costs, other deferrable costs include the portion of an employee’s total compensation and benefits related to time spent selling, underwriting or processing the issuance of new and renewal insurance business only with respect to actual policies acquired or renewed. We utilize various techniques to estimate the portion of an employee’s time spent on qualifying acquisition activities that result in actual sales, including surveys, interviews, representative time studies and other methods. These estimates include assumptions that are reviewed and updated on a periodic basis or more frequently to reflect significant changes in processes or distribution methods.

Amortization Methodologies

Participating Traditional Life Policies

For participating traditional life policies (substantially all of which are in the Closed Block), DAC is amortized over the expected total life of the contract group as a constant percentage based on the present value of the estimated gross margin amounts expected to be realized over the life of the contracts using the expected investment yield.

As of December 31, 2021, the average investment yields assumed (excluding policy loans) were 4.5% grading to 4.3% in 2026. Estimated gross margins include anticipated premiums and investment results less claims and administrative expenses, changes in the net level premium reserve and expected annual policyholder dividends. The effect on the accumulated amortization of DAC of revisions to estimated gross margins is reflected in earnings in the period such estimated gross margins are revised. The effect on the DAC assets that would result from realization of unrealized gains (losses) is recognized with an offset to AOCI in consolidated equity as of the balance sheet date. Many of the factors that affect gross margins are included in

114

the determination of the Company’s dividends to these policyholders. DAC adjustments related to participating traditional life policies do not create significant volatility in results of operations as the Closed Block recognizes a cumulative policyholder dividend obligation expense in “Policyholders’ dividends,” for the excess of actual cumulative earnings over expected cumulative earnings as determined at the time of demutualization.

Non-participating Traditional Life Insurance Policies

DAC associated with non-participating traditional life policies is amortized in proportion to anticipated premiums. Assumptions as to anticipated premiums are estimated at the date of policy issue and are consistently applied during the life of the contracts. Deviations from estimated experience are reflected in earnings (loss) in the period such deviations occur. For these contracts, the amortization periods generally are for the total life of the policy.

Universal Life and Investment-type Contracts

DAC associated with certain variable annuity products is amortized based on estimated assessments, with the remainder of variable annuity products, UL and investment-type products amortized over the expected total life of the contract group as a constant percentage of estimated gross profits arising principally from investment results, Separate Account fees, mortality and expense margins and surrender charges based on historical and anticipated future experience, updated at the end of each accounting period. When estimated gross profits are expected to be negative for multiple years of a contract life, DAC is amortized using the present value of estimated assessments. The effect on the amortization of DAC of revisions to estimated gross profits or assessments is reflected in net income (loss) in the period such estimated gross profits or assessments are revised. A decrease in expected gross profits or assessments would accelerate DAC amortization. Conversely, an increase in expected gross profits or assessments would slow DAC amortization. The effect on the DAC assets that would result from realization of unrealized gains (losses) is recognized with an offset to AOCI in consolidated equity as of the balance sheet date.

Quarterly adjustments to the DAC balance are made for current period experience and market performance related adjustments, and the impact of reviews of estimated total gross profits. The quarterly adjustments for current period experience reflect the impact of differences between actual and previously estimated expected gross profits for a given period. Total estimated gross profits include both actual experience and estimates of gross profits for future periods. To the extent each period’s actual experience differs from the previous estimate for that period, the assumed level of total gross profits may change. In these cases, cumulative adjustment to all previous periods’ costs is recognized.

During each accounting period, the DAC balances are evaluated and adjusted with a corresponding charge or credit to current period earnings for the effects of the Company’s actual gross profits and changes in the assumptions regarding estimated future gross profits. A decrease in expected gross profits or assessments would accelerate DAC amortization. Conversely, an increase in expected gross profits or assessments would slow DAC amortization. The effect on the DAC assets that would result from realization of unrealized gains (losses) is recognized with an offset to AOCI in consolidated equity as of the balance sheet date.

For the variable and UL policies a significant portion of the gross profits is derived from mortality margins and therefore, are significantly influenced by the mortality assumptions used. Mortality assumptions represent our expected claims experience over the life of these policies and are based on a long-term average of actual company experience. This assumption is updated periodically to reflect recent experience as it emerges. Improvement of life mortality in future periods from that currently projected would result in future deceleration of DAC amortization. Conversely, deterioration of life mortality in future periods from that currently projected would result in future acceleration of DAC amortization.

Loss Recognition Testing

After the initial establishment of reserves, loss recognition tests are performed using best estimate assumptions as of the testing date without provisions for adverse deviation. When the liabilities for future policy benefits plus the present value of expected future gross premiums for the aggregate product group are insufficient to provide for expected future policy benefits and expenses for that line of business (i.e., reserves net of any DAC asset), loss recognition accounting is triggered and DAC is first written off, and thereafter a premium deficiency reserve is established by a charge to earnings.

In 2020, we determined that certain of our variable interest-sensitive life insurance products triggered loss recognition accounting due to low interest rates and we reduced DAC by $945 million through accelerated amortization. We did not have a loss recognition event in 2021 or 2019.

115

Additionally, policyholder liability balances for a particular line of business may not be deficient in the aggregate to trigger loss recognition accounting; however, the pattern of earnings may be such that annual profits are expected to be recognized in earlier years and then followed by losses in later years. This pattern of profits followed by losses is exhibited in our VISL business and has caused us to increase policyholder liability balances by an amount that accounts for losses in future years. This pattern is caused by the cost structure of the product or secondary guarantees in the contract. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate even if there is insufficient policy account value to cover the monthly deductions and charges. We estimate the PFBL accrual using a dynamic approach that changes over time as the projection and timing of future losses change.

In addition, we are required to analyze how net unrealized investment gains and losses on our AFS investment securities backing insurance liabilities affects product profitability,, as if those unrealized investment gains and losses were realized. This may result in the recognition of unrealized gains and losses on related insurance assets and liabilities in a manner consistent with the recognition of the unrealized gains and losses on AFS investment securities within the statements of comprehensive income and changes in equity. Changes to net unrealized investment (gains) losses may increase or decrease DAC. Similar to a loss recognition event, if the DAC balance is reduced to zero, additional insurance liabilities are established. Unlike a loss recognition event, these adjustments may reverse from period to period.

Sensitivity of DAC to Changes in Future Mortality Assumptions

The following table demonstrates the sensitivity of the DAC balance relative to future mortality assumptions by quantifying the adjustments that would be required, assuming an increase and decrease in the future mortality rate by 1.0%. This information considers only the direct effect of changes in the mortality assumptions on the DAC balance and not changes in any other assumptions used in the measurement of the DAC balance and does not assume changes in reserves.

DAC Sensitivity - Mortality

December 31, 2021

	Increase/(Decrease) in DAC
	(in millions)
Decrease in future mortality by 1%	$	17
Increase in future mortality by 1%	$	(16)

Sensitivity of DAC to Changes in Future Rate of Return Assumptions

A significant assumption in the amortization of DAC on variable annuity products and, to a lesser extent, on variable and interest-sensitive life insurance relates to projected future Separate Accounts performance. Management sets estimated future gross profit or assessment assumptions related to Separate Account performance using a long-term view of expected average market returns by applying a RTM approach, a commonly used industry practice. This future return approach influences the projection of fees earned, as well as other sources of estimated gross profits. Returns that are higher than expectations for a given period produce higher than expected account balances, increase the fees earned resulting in higher expected future gross profits and lower DAC amortization for the period. The opposite occurs when returns are lower than expected.

In applying this approach to develop estimates of future returns, it is assumed that the market will return to an average gross long-term return estimate, developed with reference to historical long-term equity market performance. In second quarter 2015, based upon management’s then-current expectations of interest rates and future fund growth, we updated our reversion to the mean assumption from 9.0% to 7.0%. The average gross long-term return measurement start date was also updated to December 31, 2014. Management has set limitations as to maximum and minimum future rate of return assumptions, as well as a limitation on the duration of use of these maximum or minimum rates of return. As of December 31, 2021, the average gross short-term and long-term annual return estimate on variable and interest-sensitive life insurance and variable annuity products was 7.0% (4.7% net of product weighted average Separate Accounts fees), and the gross maximum and minimum short-term annual rate of return limitations were 15.0% (12.7% net of product weighted average Separate Accounts fees and Investment Advisory fees) and 0.0% ((2.3%) net of product weighted average Separate Account fees and Investment Advisory fees), respectively. The maximum duration over which these rate limitations may be applied is five years. This approach will continue to be applied in future periods. These assumptions of long-term growth are subject to assessment of the reasonableness of resulting estimates of future return assumptions.

If actual market returns continue at levels that would result in assuming future market returns of 15.0% for more than five years in order to reach the average gross long-term return estimate, the application of the five-year maximum duration

116

limitation would result in an acceleration of DAC amortization. Conversely, actual market returns resulting in assumed future market returns of 0.0% for more than five years would result in a required deceleration of DAC amortization. As of December 31, 2021, current projections of future returns assume a 0.0% annualized return for the next nine quarters grading to a reversion to the mean of 7.0% in nineteen quarters.

 Other significant assumptions underlying gross profit estimates for UL and investment type products relate to contract persistency and General Account investment spread.

The following table provides an example of the sensitivity of the DAC balance of variable annuity products and variable and interest-sensitive life insurance relative to future return assumptions by quantifying the adjustments to the DAC balance that would be required assuming both an increase and decrease in the future rate of return by 1.0%. This information considers only the effect of changes in the future Separate Accounts rate of return and not changes in any other assumptions used in the measurement of the DAC balance.

DAC Sensitivity - Rate of Return

December 31, 2021

	Increase/(Decrease) in DAC
	(in millions)
Decrease in future rate of return by 1%	$	(115)
Increase in future rate of return by 1%	$	139

Estimated Fair Value of Investments

The Company’s investment portfolio principally consists of public and private fixed maturities, mortgage loans, equity securities and derivative financial instruments, including exchange traded equity, currency and interest rate futures contracts, total return and/or other equity swaps, interest rate swap and floor contracts, swaptions, variance swaps, as well as equity options used to manage various risks relating to its business operations.

Fair Value Measurements

Investments reported at fair value in the consolidated balance sheets of the Company include fixed maturity securities classified as AFS, equity and trading securities and certain other invested assets, such as freestanding derivatives. In addition, reinsurance contracts covering GMIB exposure and the liabilities in the SCS variable annuity products, SIO in the EQUI-VEST variable annuity product series, MSO in the variable life insurance products, IUL insurance products and the GMAB, GIB, GMWB and GWBL feature in certain variable annuity products issued by the Company are considered embedded derivatives and reported at fair value.

When available, the estimated fair value of securities is based on quoted prices in active markets that are readily and regularly obtainable; these generally are the most liquid holdings and their valuation does not involve management judgment. When quoted prices in active markets are not available, we estimate fair value based on market standard valuation methodologies. These alternative approaches include matrix or model pricing and use of independent pricing services, each supported by reference to principal market trades or other observable market assumptions for similar securities. More specifically, the matrix pricing approach to fair value is a discounted cash flow methodology that incorporates market interest rates commensurate with the credit quality and duration of the investment. For securities with reasonable price transparency, the significant inputs to these valuation methodologies either are observable in the market or can be derived principally from or corroborated by observable market data. When the volume or level of activity results in little or no price transparency, significant inputs no longer can be supported by reference to market observable data but instead must be based on management’s estimation and judgment. Substantially the same approach is used by us to measure the fair values of freestanding and embedded derivatives with exception for consideration of the effects of master netting agreements and collateral arrangements as well as incremental value or risk ascribed to changes in own or counterparty credit risk.

As required by the accounting guidance, we categorize our assets and liabilities measured at fair value into a three-level hierarchy, based on the priority of the inputs to the respective valuation technique, giving the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). For additional information regarding the key estimates and assumptions surrounding the determinations of fair value measurements, see Note 8 of the Notes to these Consolidated Financial Statements.

117

Impairments and Valuation Allowances

The carrying values of fixed maturities classified as AFS are reported at fair value. Changes in fair value are reported in OCI, net of allowance for credit losses, policy related amounts and deferred income taxes. With the adoption of the Financial Instruments-Credit Losses standard, changes in credit losses are recognized in investment gains (losses), net.

With the assistance of our investment advisors, we evaluate AFS debt securities that experience a decline in fair value below amortized cost for credit losses which are evaluated in accordance with the financial instruments credit losses guidance. The remainder of the unrealized loss related to other factors, if any, is recognized in OCI. Integral to this review is an assessment made each quarter, on a security-by-security basis, by our IUS Committee, of various indicators of credit deterioration to determine whether the investment security has experienced a credit loss. This assessment includes, but is not limited to, consideration of the severity of the unrealized loss, failure, if any, of the issuer of the security to make scheduled payments, actions taken by rating agencies, adverse conditions specifically related to the security or sector, the financial strength, liquidity and continued viability of the issuer.

We recognize an allowance for credit losses on AFS debt securities with a corresponding adjustment to earnings rather than a direct write down that reduces the cost basis of the investment, and credit losses are limited to the amount by which the security’s amortized cost basis exceeds its fair value. Any improvements in estimated credit losses on AFS debt securities are recognized immediately in earnings. We do not use the length of time a security has been in an unrealized loss position as a factor, either by itself or in combination with other factors, to conclude that a credit loss does not exist, as was permitted to do prior to January 1, 2020.

If there is no intent to sell or likely requirement to dispose of the fixed maturity security before its recovery, only the credit loss component of any resulting allowance is recognized in income (loss) and the remainder of the fair value loss is recognized in OCI. The amount of credit loss is the shortfall of the present value of the cash flows expected to be collected as compared to the amortized cost basis of the security. The present value is calculated by discounting management’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security at the date of acquisition. Projections of future cash flows are based on assumptions regarding probability of default and estimates regarding the amount and timing of recoveries. These assumptions and estimates require use of management judgment and consider internal credit analyses as well as market observable data relevant to the collectability of the security. For mortgage and asset-backed securities, projected future cash flows also include assumptions regarding prepayments and underlying collateral value.

Write-offs of AFS debt securities are recorded when all or a portion of a financial asset is deemed uncollectible. Full or partial write-offs are recorded as reductions to the amortized cost basis of the AFS debt security and deducted from the allowance in the period in which the financial assets are deemed uncollectible. We elected to reverse accrued interest deemed uncollectible as a reversal of interest income. In instances where we collect cash that has previously been written off, the recovery will be recognized through earnings or as a reduction of the amortized cost basis for interest and principal, respectively.

Mortgage loans are stated at unpaid principal balances, net of unamortized discounts and valuation allowances. For collectively evaluated mortgages, the Company estimates the allowance for credit losses based on the amortized cost basis of its mortgages over their expected life using a PD / LGD model. For individually evaluated mortgages, the Company continues to recognize valuation allowances based on the present value of expected future cash flows discounted at the loan’s original effective interest rate or on its collateral value if the loan is collateral dependent.

For commercial and agricultural mortgage loans, an allowance for credit loss is typically recommended when management believes it is probable that principal and interest will not be collected according to the contractual terms. Factors that influence management’s judgment in determining allowance for credit losses include the following:

•LTV ratio—Derived from current loan balance divided by the fair market value of the property. An allowance for credit loss is typically recommended when the LTV ratio is in excess of 100%. In the case where the LTV is in excess of 100%, the allowance for credit loss is derived by taking the difference between the fair market value (less cost of sale) and the current loan balance.

•DSC ratio—Derived from actual operating earnings divided by annual debt service. If the ratio is below 1.0x, then the income from the property does not support the debt.

•Occupancy—Criteria vary by property type but low or below market occupancy is an indicator of sub-par property performance.

118

•Lease expirations—The percentage of leases expiring in the upcoming 12 to 36 months are monitored as a decline in rent and/or occupancy may negatively impact the debt service coverage ratio. In the case of single-tenant properties or properties with large tenant exposure, the lease expiration is a material risk factor.

•Maturity—Mortgage loans that are not fully amortizing and have upcoming maturities within the next 12 to 24 months are monitored in conjunction with the capital markets to determine the borrower’s ability to refinance the debt and/or pay off the balloon balance.

•Borrower/tenant related issues—Financial concerns, potential bankruptcy, or words or actions that indicate imminent default or abandonment of property.

•Payment status - current vs. delinquent—A history of delinquent payments may be a cause for concern.

•Property condition—Significant deferred maintenance observed during the lenders annual site inspections.

•Other—Any other factors such as current economic conditions may call into question the performance of the loan.

Mortgage loans that do not share similar risk characteristics with other loans in the portfolio are individually evaluated quarterly by the IUS Committee for impairment on a loan-by-loan basis, including an assessment of related collateral value. Commercial mortgages 60 days or more past due and agricultural mortgages 90 days or more past due, as well as all mortgages in the process of foreclosure, are identified as problem mortgages. Based on its monthly monitoring of mortgages, a class of potential problem mortgages also is identified, consisting of mortgage loans not currently classified as problems but for which management has doubts as to the ability of the borrower to comply with the present loan payment terms and which may result in the loan becoming a problem or being restructured. The decision whether to classify a performing mortgage loan as a potential problem involves significant subjective judgments by management as to likely future industry conditions and developments with respect to the borrower or the individual mortgaged property.

For problem mortgage loans a valuation allowance is established to provide for the risk of credit losses inherent in the lending process. The allowance includes loan specific reserves for loans determined to be non-performing as a result of the loan review process. A non-performing loan is defined as a loan for which it is probable that amounts due according to the contractual terms of the loan agreement will not be collected. The loan specific portion of the loss allowance is based on our assessment as to ultimate collectability of loan principal and interest. Valuation allowances for a non-performing loan are recorded based on the present value of expected future cash flows discounted at the loan’s effective interest rate or based on the fair value of the collateral if the loan is collateral dependent. The valuation allowance for mortgage loans can increase or decrease from period to period based on such factors.

Impaired mortgage loans without provision for losses are mortgage loans where the fair value of the collateral or the net present value of the expected future cash flows related to the loan equals or exceeds the recorded investment. Interest income earned on mortgage loans where the collateral value is used to measure impairment is recorded on a cash basis. Interest income on mortgage loans where the present value method is used to measure impairment is accrued on the net carrying value amount of the loan at the interest rate used to discount the cash flows. Changes in the present value attributable to changes in the amount or timing of expected cash flows are reported as investment gains or losses.

Mortgage loans are placed on nonaccrual status once management believes the collection of accrued interest is doubtful. Once mortgage loans are classified as nonaccrual mortgage loans, interest income is recognized under the cash basis of accounting and the resumption of the interest accrual would commence only after all past due interest has been collected or the mortgage loan on real estate has been restructured to where the collection of interest is considered likely.

See Notes 2 and 3 of the Notes to these Consolidated Financial Statements for additional information relating to our determination of the amount of allowances and impairments.

Derivatives

We use freestanding derivative instruments to hedge various capital market risks in our products, including: (i) certain guarantees, some of which are reported as embedded derivatives; (ii) current or future changes in the fair value of our assets and liabilities; and (iii) current or future changes in cash flows. All derivatives, whether freestanding or embedded, are required to be carried on the balance sheet at fair value with changes reflected in either net income (loss) or in OCI, depending on the type of hedge. Below is a summary of critical accounting estimates by type of derivative.

119

Freestanding Derivatives

The determination of the estimated fair value of freestanding derivatives, when quoted market values are not available, is based on market standard valuation methodologies and inputs that management believes are consistent with what other market participants would use when pricing such instruments. Derivative valuations can be affected by changes in interest rates, foreign currency exchange rates, financial indices, credit spreads, default risk, nonperformance risk, volatility, liquidity and changes in estimates and assumptions used in the pricing models. See Note 8 of the Notes to these Consolidated Financial Statements for additional details on significant inputs into the OTC derivative pricing models and credit risk adjustment.

Embedded Derivatives

We issue variable annuity products with guaranteed minimum benefits, some of which are embedded derivatives measured at estimated fair value separately from the host variable annuity product, with changes in estimated fair value reported in net derivative gains (losses). The estimated fair values of these embedded derivatives are determined based on the present value of projected future benefits minus the present value of projected future fees attributable to the guarantee. The projections of future benefits and future fees require capital markets and actuarial assumptions, including expectations concerning policyholder behavior. A risk-neutral valuation methodology is used under which the cash flows from the guarantees are projected under multiple capital market scenarios using observable risk-free rates.

Market conditions including, but not limited to, changes in interest rates, equity indices, market volatility and variations in actuarial assumptions, including policyholder behavior, mortality and risk margins related to non-capital market inputs, as well as changes in our nonperformance risk adjustment may result in significant fluctuations in the estimated fair value of the guarantees that could materially affect net income. Changes to actuarial assumptions, principally related to contract holder behavior such as annuitization utilization and withdrawals associated with GMIB riders, can result in a change of expected future cash outflows of a guarantee between the accrual-based model for insurance liabilities and the fair-value based model for embedded derivatives. See Note 2 of the Notes to these Consolidated Financial Statements for additional information relating to the determination of the accounting model. Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties in certain actuarial assumptions. For direct liabilities, risk margins are applied to non-capital market risk assumptions, while for reinsurance asset risk margins are based on the cost of capital a theoretical market participant would require to assume the risks. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees.

With respect to assumptions regarding policyholder behavior, we have recorded charges, and in some cases benefits, in prior years as a result of the availability of sufficient and credible data at the conclusion of each review.

We ceded the risk associated with certain of the variable annuity products with GMxB features described in the preceding paragraphs. The value of the embedded derivatives on the ceded risk is determined using a methodology consistent with that described previously for the guarantees directly written by us with the exception of the input for nonperformance risk that reflects the credit of the reinsurer. However, because certain of the reinsured guarantees do not meet the definition of an embedded derivative and, thus are not accounted for at fair value, significant fluctuations in net income may occur when the change in the fair value of the reinsurance recoverable is recorded in net income without a corresponding and offsetting change in fair value of the directly written guaranteed liability.

Nonperformance Risk Adjustment

The valuation of our embedded derivatives includes an adjustment for the risk that we fail to satisfy our obligations, which we refer to as our nonperformance risk. The nonperformance risk adjustment, which is captured as a spread over the risk-free rate in determining the discount rate to discount the cash flows of the liability, is determined by taking into consideration publicly available information relating to spreads on corporate bonds in the secondary market comparable to Holdings’ financial strength rating.

The table below illustrates the impact that a range of reasonably likely variances in credit spreads would have on our consolidated balance sheet, excluding the effect of income tax, related to the embedded derivative valuation on certain variable annuity products measured at estimated fair value. Even when credit spreads do not change, the impact of the nonperformance risk adjustment on fair value will change when the cash flows within the fair value measurement change. The table only reflects the impact of changes in credit spreads on our consolidated financial statements included elsewhere herein and not these other potential changes. In determining the ranges, we have considered current market conditions, as well as the market level of

120

spreads that can reasonably be anticipated over the near term. The ranges do not reflect extreme market conditions such as those experienced during the 2008–2009 financial crisis as we do not consider those to be reasonably likely events in the near future.

	Future policyholders’ benefits and other policyholders’ liabilities (before reinsurance ceded)
	(in billions)
100% increase in Holdings’ credit spread	$	7.2
As reported	$	8.5
50% decrease in Holdings’ credit spread	$	9.4

See Note 4 of the Notes to the Consolidated Financial Statements for additional information on our derivatives and hedging programs.

Goodwill

Goodwill represents the excess of purchase price over the estimated fair value of identifiable net assets acquired in a business combination. We test goodwill for recoverability each annual reporting period at December 31 and at interim periods if facts or circumstances are indicative of potential impairment. As of December 31, 2021, our goodwill of $4.6 billion results solely from our investment in AB and is attributed to the Investment Management and Research segment, also deemed a reporting unit for purpose of assessing the recoverability of that goodwill.

Estimating the fair value of reporting units for the purpose of goodwill impairment testing is a subjective process that involves the use of significant judgements by management. Estimates of fair value are inherently uncertain and represent management’s reasonable expectation regarding future developments, giving consideration to internal strategic plans and general market and economic forecasts. On an annual basis, or when circumstances warrant, goodwill is tested for impairment utilizing the market approach, where the fair value of the reporting unit is based on its adjusted market valuation assuming a control premium.

Litigation and Regulatory Contingencies

We are a party to a number of legal actions and are involved in a number of regulatory investigations. Given the inherent unpredictability of these matters, it is difficult to estimate the impact on our financial position, results of operations and cash flows.

Liabilities are established when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. On a quarterly and annual basis, we review relevant information with respect to liabilities for litigation, regulatory investigations and litigation-related contingencies to be reflected in our consolidated financial statements included elsewhere herein. See Note 17 of the Notes to the Consolidated Financial Statements for information regarding our assessment of litigation contingencies.

Income Taxes

Income taxes represent the net amount of income taxes that we expect to pay to or receive from various taxing jurisdictions in connection with its operations. We provide for Federal and state income taxes currently payable, as well as those deferred due to temporary differences between the financial reporting and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured at the balance sheet date using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. The realization of deferred tax assets depends upon the existence of sufficient taxable income within the carryforward periods under the tax law in the applicable jurisdiction. Valuation allowances are established when management determines, based on available information, that it is more likely than not that deferred tax assets will not be realized. Management considers all available evidence including past operating results, the existence of cumulative losses in the most recent years, forecasted earnings, future taxable income and prudent and feasible tax planning strategies. Our accounting for income taxes represents management’s best estimate of the tax consequences of various events and transactions.

Significant management judgment is required in determining the provision for income taxes and deferred tax assets and liabilities, and in evaluating our tax positions including evaluating uncertainties under the guidance for Accounting for Uncertainty in Income Taxes. Under the guidance, we determine whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded in the financial

121

statements. Tax positions are then measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement.

Our tax positions are reviewed quarterly, and the balances are adjusted as new information becomes available.

Adoption of New Accounting Pronouncements

See Note 2 of the Notes to these Consolidated Financial Statements for a complete discussion of newly issued accounting pronouncements.

Part II, Item 7A.

        QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our businesses are subject to financial, market, political and economic risks, as well as to risks inherent in our business operations. The discussion that follows provides additional information on market risks arising from our insurance asset/liability management and investment management activities. Such risks are evaluated and managed by each business on a decentralized basis. Primary market risk exposure results from interest rate fluctuations, equity price movements and changes in credit quality.

Individual Retirement, Group Retirement and Protection Solutions Segments

Our results significantly depend on profit margins or “spreads” between investment results from assets held in the General Account investment portfolio and interest credited on individual insurance and annuity products. Management believes its fixed rate liabilities should be supported by a portfolio principally composed of fixed rate investments that generate predictable, steady rates of return. Although these assets are purchased for long-term investment, the portfolio management strategy considers them AFS in response to changes in market interest rates, changes in prepayment risk, changes in relative values of asset sectors and individual securities and loans, changes in credit quality outlook and other relevant factors. See the “Investments” section of Note 2 of the Notes to these Consolidated Financial Statements for the accounting policies for the investment portfolios. The objective of portfolio management is to maximize returns, taking into account interest rate and credit risks. Insurance asset/liability management includes strategies to minimize exposure to loss as interest rates and economic and market conditions change. As a result, the fixed maturity portfolio has modest exposure to call and prepayment risk and the vast majority of mortgage holdings are fixed rate mortgages that carry yield maintenance and prepayment provisions.

Investments with Interest Rate Risk – Fair Value

Assets with interest rate risk include AFS and trading fixed maturities and mortgage loans that make up 83.7% and 86.5% of the fair value of the General Account investment portfolio as of December 31, 2021 and 2020, respectively. As part of our asset/liability management, quantitative analyses are used to model the impact various changes in interest rates have on assets with interest rate risk. The table that follows shows the impact an immediate one percent increase/decrease in interest rates as of December 31, 2021 and 2020 would have on the fair value of fixed maturities and mortgage loans:

122

Interest Rate Risk Exposure
	December 31, 2021						December 31, 2020
	Fair Value		Impact of +1% Change		Impact of -1% Change		Fair Value		Impact of +1% Change		Impact of -1% Change
	(in millions)
Fixed Income Investments:
AFS securities:
Fixed rate	$	70,242	$	(7,166)	$	8,657	$	75,375	$	(7,185)	$	8,636
Floating rate	$	7,100	$	(77)	$	83	$	5,130	$	(55)	$	83
Trading securities:
Fixed rate	$	145	$	(2)	$	2	$	4,852	$	(99)	$	102
Floating rate	$	—	$	—	$	—	$	117	$	—	$	—
Mortgage loans	$	14,308	$	(743)	$	314	$	13,491	$	(521)	$	376

A one percent increase/decrease in interest rates is a hypothetical rate scenario used to demonstrate potential risk; it does not represent management’s view of future market changes. While these fair value measurements provide a representation of interest rate sensitivity of fixed maturities and mortgage loans, they are based on various portfolio exposures at a particular point in time and may not be representative of future market results. These exposures will change as a result of ongoing portfolio activities in response to management’s assessment of changing market conditions and available investment opportunities.

Investments with Equity Price Risk – Fair Value

The investment portfolios also have direct holdings of public and private equity securities. The following table shows the potential exposure from those equity security investments, measured in terms of fair value, to an immediate 10% increase/decrease in equity prices from those prevailing as of December 31, 2021 and 2020:

Equity Price Risk Exposure
	December 31, 2021						December 31, 2020
	Fair Value		Impact of+10% Equity Price Change		Impact of -10% Equity Price Change		Fair Value		Impact of+10% Equity Price Change		Impact of -10% Equity Price Change
	(in millions)
Equity Investments	$	817	$	82	$	(82)	$	15	$	1	$	(1)

A 10% decrease in equity prices is a hypothetical scenario used to calibrate potential risk and does not represent management’s view of future market changes. The fair value measurements shown are based on the equity securities portfolio exposures at a particular point in time and these exposures will change as a result of ongoing portfolio activities in response to management’s assessment of changing market conditions and available investment opportunities.

Liabilities with Interest Rate Risk – Fair Value

As of December 31, 2021 and 2020, the aggregate carrying values of insurance contracts with interest rate risk were $15.4 billion and $11.0 billion, respectively. The aggregate fair value of such liabilities as of December 31, 2021 and 2020 were $15.4 billion and $11.4 billion, respectively. The impact of a relative 1% decrease in interest rates would be an increase in the fair value of those liabilities of $355 million and $281 million, respectively. While these fair value measurements provide a representation of the interest rate sensitivity of insurance liabilities, they are based on the composition of such liabilities at a particular point in time and may not be representative of future results.

Asset/liability management is integrated into many aspects of the Individual Retirement, Group Retirement and Protection Solutions segments’ operations, including investment decisions, product development and determination of crediting rates. As part of our risk management process, numerous economic scenarios are modeled, including cash flow testing required for insurance regulatory purposes, to determine if existing assets would be sufficient to meet projected liability cash flows. Key variables include policyholder behavior, such as persistency, under differing crediting rate strategies.

123

Derivatives and Interest Rate and Equity Risks – Fair Value

We primarily use derivative contracts for asset/liability risk management, to mitigate our exposure to equity market decline and interest rate risks and for hedging individual securities. In addition, we periodically enter into forward, exchange-traded futures and interest rate swap, swaptions and floor contracts to reduce the economic impact of movements in the equity and fixed income markets, including the program to hedge certain risks associated with the GMxB features. As more fully described in Note 2 and Note 4 of the Notes to these Consolidated Financial Statements, various traditional derivative financial instruments are used to achieve these objectives. To minimize credit risk exposure associated with its derivative transactions, each counterparty’s credit is appraised and approved, and risk control limits and monitoring procedures are applied. Credit limits are established and monitored on the basis of potential exposures that take into consideration current market values and estimates of potential future movements in market values given potential fluctuations in market interest rates. To reduce credit exposures in OTC derivative transactions, we enter into master agreements that provide for a netting of financial exposures with the counterparty and allow for collateral arrangements. We further control and minimize counterparty exposure through a credit appraisal and approval process. Under the ISDA Master Agreement, we have executed a CSA with each of our OTC derivative counterparties that require both posting and accepting collateral either in the form of cash or high-quality securities, such as U.S. Treasury securities or those issued by government agencies.

Mark to market exposure is a point-in-time measure of the value of a derivative contract in the open market. A positive value indicates existence of credit risk for us because the counterparty would owe money to us if the contract were closed. Alternatively, a negative value indicates we would owe money to the counterparty if the contract were closed. If there is more than one derivative transaction outstanding with a counterparty, a master netting arrangement exists with the counterparty. In that case, the market risk represents the net of the positive and negative exposures with the single counterparty. In management’s view, the net potential exposure is the better measure of credit risk. As of December 31, 2021 and 2020, the net fair values of our derivatives were $1,602 million and $995 million, respectively.

The tables below show the interest rate or equity sensitivities of those derivatives, measured in terms of fair value. These exposures will change as a result of ongoing portfolio and risk management activities.

Derivative Financial Instruments

				Interest Rate Sensitivity
	Notional Amount		Weighted Average Term (Years)	Impact of -1% Change		Fair Value		Impact of +1% Change
	(in millions, except for Weighted Average Term)
December 31, 2021
Swaps	$	2,831	11	$	(111)	$	(440)	$	(693)
Futures	12,598		—	1,150		—		(908)
Swaptions	—		—	—		—		—
Total	$	15,429		$	1,039	$	(440)	$	(1,601)
December 31, 2020
Swaps	$	23,773	3	$	4,622	$	(102)	$	(3,857)
Futures	18,564		—	1,477		—		(1,264)
Swaptions	—		—	—		—		—
Total	$	42,337		$	6,099	$	(102)	$	(5,121)

124

				Equity Sensitivity
	Notional Amount		Weighted Average Term (Years)	Fair Value		Balance after -10% Equity Price Shift
	(in millions, except for Weighted Average Term)
December 31, 2021
Futures	$	2,484	—	$	—	$	93
Swaps	13,310		1	5		1,336
Options	48,439		2	6,959		5,381
Total	$	64,233		$	6,964	$	6,810
December 31, 2020
Futures	$	4,745	—	$	—	$	138
Swaps	22,404		—	6		2,119
Options	35,846		2	4,672		3,488
Total	$	62,995		$	4,678	$	5,745

In addition to the freestanding derivatives discussed above, we have entered into reinsurance contracts to mitigate the risk associated with the impact of potential market fluctuations on future policyholder elections of GMIB features contained in certain annuity contracts. These reinsurance contracts are considered derivatives under the guidance on derivatives and hedging. GMIB reinsurance contract assets were reported at their fair values of $1.8 billion and $2.5 billion as of December 31, 2021 and 2020, respectively. The potential fair value exposure to an immediate 10% drop in equity prices from those prevailing as of December 31, 2021 and 2020, respectively, would increase the balances of the reinsurance contract asset by $169 million and $169 million. The Amounts due from Reinsurers was $5.8 billion at December 31, 2021. The potential fair value exposure to an immediate 10% drop in equity prices from those prevailing as of December 31, 2021 is $447 million.

Also, the GMxB feature’s liability associated with certain annuity contracts is similarly considered to be a derivative for accounting purposes and was reported at its fair value. The liability for embedded derivative liability features was $8.5 billion and $11.1 billion as of December 31, 2021 and 2020, respectively. The potential fair value exposure to an immediate 10% drop in equity prices from those prevailing as of December 31, 2021 and 2020, respectively, would be to increase the liability balance by $990 million and $1.1 billion.

Investment Management and Research

The investments of our Investment Management and Research segment consist of trading and AFS investments and other investments. AB’s trading and AFS investments include U.S. Treasury bills and equity and fixed income mutual funds’ investments. Trading investments are purchased for short-term investment, principally to fund liabilities related to deferred compensation plans and to seed new investment services. Although AFS investments are purchased for long-term investment, the portfolio strategy considers them AFS from time to time due to changes in market interest rates, equity prices and other relevant factors. Other investments include investments in hedge funds sponsored by AB and other private investment vehicles.

Investments with Interest Rate Risk – Fair Value

The table below provides AB’s potential exposure with respect to its fixed income investments, measured in terms of fair value, to an immediate 1% increase in interest rates at all maturities from the levels prevailing as of December 31, 2021 and 2020:

Interest Rate Risk Exposure

	December 31, 2021						December 31, 2020
	Fair Value		Balance After -1% Change		Balance After +1% Change		Fair Value		Balance After -1% Change		Balance After +1% Change
	(in millions)
Fixed Income Investments:
Trading	$	101	$	109	$	94	$	36	$	38	$	33

125

Such a fluctuation in interest rates is a hypothetical rate scenario used to calibrate potential risk and does not represent AB management’s view of future market changes. Although these fair value measurements provide a representation of interest rate sensitivity of its investments in fixed income mutual funds and fixed income hedge funds, they are based on AB’s exposures at a particular point in time and may not be representative of future market results. These exposures will change as a result of ongoing changes in investments in response to AB management’s assessment of changing market conditions and available investment opportunities.

Investments with Equity Price Risk – Fair Value

AB’s investments include investments in equity mutual funds and equity hedge funds. The following table presents AB’s potential exposure from its equity investments, measured in terms of fair value, to an immediate 10% drop in equity prices from those prevailing as of December 31, 2021 and 2020:

Equity Price Risk Exposure

	December 31, 2021						December 31, 2020
	Fair Value		Balance After +10% Equity Price Change		Balance After -10% Equity Price Change		Fair Value		Balance After +10% Equity Price Change		Balance After -10% Equity Price Change
	(in millions)
Equity Investments:
Trading	$	86	$	94	$	77	$	138	$	151	$	124
Other investments	$	87	$	96	$	78	$	80	$	88	$	72

A 10% decrease in equity prices is a hypothetical scenario used to calibrate potential risk and does not represent AB management’s view of future market changes. While these fair value measurements provide a representation of equity price sensitivity of AB’s investments in equity mutual funds and equity hedge funds, they are based on AB’s exposure at a particular point in time and may not be representative of future market results. These exposures will change as a result of ongoing portfolio activities in response to AB management’s assessment of changing market conditions and available investment opportunities.

Item 8. Financial Statements and Supplementary Data

126

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Audited Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm (PricewaterhouseCoopers LLP, New York, New York, PCAOB ID: 238)	128
Consolidated Balance Sheets, December 31, 2021 and 2020	132
Consolidated Statements of Income (Loss), Years Ended December 31, 2021, 2020 and 2019	133
Consolidated Statements of Comprehensive Income (Loss), Years Ended December 31, 2021, 2020 and 2019	134
Consolidated Statements of Equity, Years Ended December 31, 2021, 2020 and 2019	135
Consolidated Statements of Cash Flows, Years Ended December 31, 2021, 2020 and 2019	136
Notes to Consolidated Financial Statements
Note 1 - Organization	138
Note 2 - Significant Accounting Policies	139
Note 3 - Investments	157
Note 4 - Derivatives	168
Note 5 - Goodwill and Other Intangible Assets	174
Note 6 - Closed Block	175
Note 7 - DAC and Policyholder Bonus Interest Credits	177
Note 8 - Fair Value Disclosures	177
Note 9 - Insurance Liabilities	193
Note 10 - Leases	196
Note 11 - Reinsurance	199
Note 12 - Short-term and Long-term Debt	201
Note 13 - Related Party Transactions	203
Note 14 - Employee Benefit Plans	204
Note 15 - Share-Based and Other Compensation Programs	212
Note 16 - Income Taxes	217
Note 17 - Commitments and Contingent Liabilities	219
Note 18 - Insurance Group Statutory Financial Information	222
Note 19 - Business Segment Information	224
Note 20 - Equity	227
Note 21 - Earnings Per Share	231
Note 22 - Redeemable Noncontrolling Interest	231
Note 23 - Held-For-Sale	231
Note 24 - Subsequent Events	232
Audited Consolidated Financial Statement Schedules
Schedule I - Summary of Investments - Other than Investments in Related Parties, December 31, 2021	232
Schedule II - Balance Sheets ( Parent Company), December 31, 2021 and 2020 and Years Ended December 31, 2021, 2020 and 2019	234
Schedule III - Supplementary Insurance Information, as of and for the Years Ended December 31, 2021, 2020 and 2019	238
Schedule IV - Reinsurance, Years Ended December 31, 2021, 2020 and 2019	239

127

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholders of Equitable Holdings, Inc.

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the consolidated financial statements, including the related notes and financial statement schedules, of Equitable Holdings, Inc. and its subsidiaries (the “Company”) as listed in the accompanying index (collectively referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2021, in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control Over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

128

Table of Contents

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Amortization and Valuation of Deferred Policy Acquisition Costs (“DAC”) related to Variable and Interest Sensitive Life Products and Variable Annuity Products with Guaranteed Minimum Benefits

As described in Note 2 to the consolidated financial statements, DAC represents acquisition costs that vary with and are primarily related to the acquisition of new and renewal insurance business that are deferred. A significant portion of the $5.5 billion of DAC as of December 31, 2021, is associated with the variable and interest sensitive life and variable annuity products with guaranteed minimum benefits. DAC associated with certain variable annuity products is amortized based on estimated assessments, with DAC on the remainder of variable annuities, Universal Life and investment-type products amortized over the expected total life of the contract group as a constant percentage of estimated gross profits. DAC is subject to recoverability testing at the time of policy issue and loss recognition testing at the end of each accounting period. The DAC amortization and valuation estimates for these products are determined using models and significant assumptions related to projected future separate account performance, mortality, contract persistency, and general account investment spread.

The principal considerations for our determination that performing procedures relating to the amortization and valuation of DAC related to variable and interest sensitive life products and variable annuity products with guaranteed minimum benefits is a critical audit matter are (i) the significant judgment by management when determining the amortization and valuation estimates, (ii) a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating audit evidence relating to the relevant models and significant assumptions related to projected future separate account performance, mortality, contract persistency, and general account investment spread, and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the amortization and valuation of DAC related to variable and interest sensitive life products and variable annuity products with guaranteed minimum benefits, including controls over the relevant models and development of the significant assumptions. These procedures also included, among others, testing management’s process for determining the amortization and valuation estimates of DAC, which included (i) testing the completeness and accuracy of the historical data used by management to develop and update the significant assumptions, (ii) testing that significant assumptions are accurately reflected in the relevant models, and (iii) the use of professionals with specialized skill and knowledge to assist in evaluating the appropriateness of the relevant models and the reasonableness of the significant assumptions related to projected future separate account performance, mortality, contract persistency, and general account investment spread based on consideration of the Company’s experience, industry trends, and market conditions, as applicable.

Valuation of Guaranteed Minimum Benefit Features related to Certain Life and Annuity Contracts included within Future Policy Benefits and Other Policyholders’ Liabilities and Amounts Due From Reinsurers

As described in Note 2 to the consolidated financial statements, future policy benefits and other policyholders’ liabilities of $36.7 billion as of December 31, 2021, includes reserves related to guaranteed minimum death benefits (“GMDB”) and guaranteed minimum income benefit (“GMIB”) features for certain life and annuity contracts, other than those accounted for as embedded derivatives. Amounts due from reinsurers of $14.7 billion as of December 31, 2021, includes reinsurance recoverables related to GMDB and GMIB features for certain life and annuity contracts ceded under reinsurance contracts other than those accounted for as embedded derivatives. For certain contracts with guaranteed minimum benefit features, the benefits are accounted for as reserves and determined by estimating the

129

Table of Contents

expected value of death or income benefits in excess of the projected contract accumulation value and recognizing the excess over the estimated life based on expected assessments (i.e., benefit ratio). The liability equals the current benefit ratio multiplied by cumulative assessments recognized to date, plus interest, less cumulative excess payments to date. The determination of this estimated liability is based on models that involve numerous assumptions and subjective judgments, including those regarding expected market rates of return and volatility, contract surrender and withdrawal rates, mortality experience, and, for contracts with the GMIB feature, GMIB election rates. Amounts due from reinsurers, other than those accounted for as embedded derivatives, are calculated using methodologies and assumptions that are consistent with those used to calculate the direct liabilities.

The principal considerations for our determination that performing procedures relating to the valuation of guaranteed minimum benefit features related to certain life and annuity contracts included within future policy benefits and other policyholders’ liabilities and amounts due from reinsurers is a critical audit matter are (i) the significant judgment by management when determining the valuation of these guaranteed minimum benefit features, (ii) a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating audit evidence relating to the relevant models and significant assumptions of expected market rates of return and volatility, contract surrender and withdrawal rates, mortality experience, and, for contracts with the GMIB feature, GMIB election rates (collectively referred to as “the significant assumptions”), and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to valuation of guaranteed minimum benefit features related to certain life and annuity contracts, including controls over the relevant models and development of the significant assumptions. These procedures also included, among others, testing management’s process for determining the valuation of the guaranteed minimum benefit features, which included (i) testing the completeness and accuracy of the historical data used by management to develop and update the significant assumptions, (ii) testing that significant assumptions are accurately reflected in the relevant models, and (iii) the use of professionals with specialized skill and knowledge to assist in evaluating the appropriateness of the relevant models and the reasonableness of the significant assumptions based on consideration of the Company’s experience, industry trends, and market conditions, as applicable.

Valuation of GMIB Features accounted for as Derivatives included within Future Policy Benefits and Other Policyholders’ Liabilities, GMIB Reinsurance Contract Asset, at fair value and Amounts Due from Reinsurers

As described in Notes 2 and 8 to the consolidated financial statements, the Company issues certain annuity contracts that contain GMIB features that are accounted for as embedded derivatives, recorded at fair value and presented within policy benefits and other policyholders’ liabilities. The reinsurance of certain of these GMIB features are accounted for as embedded derivatives and are presented at fair value within amounts due from reinsurers. Additionally, there are ceded reinsurance contracts that are net settled, accounted for as a derivative at fair value and presented within GMIB reinsurance contract asset, at fair value. As of December 31, 2021, the fair value of the GMIB features accounted for as embedded derivatives and presented within future policy benefits and other policyholders’ liabilities was $8.5 billion, GMIB reinsurance contract asset, at fair value was $1.8 billion, and amounts due from reinsurers was $5.8 billion. Management determined the fair values the of the GMIB features presented as embedded derivatives using a discounted cash flow valuation technique that incorporates significant unobservable inputs with respect to (i) non-performance risk, lapse rates, withdrawal rates, annuitization rates, and mortality rates for future policy benefits and other policyholders’ liabilities, and (ii) non-performance risk, lapse rates, withdrawal rates, utilization rates, volatility rates, and mortality rates for the GMIB reinsurance contract asset, at fair value and the amounts due from reinsurers.

The principal considerations for our determination that performing procedures relating to the valuation of GMIB features accounted for as derivatives and included within future policy benefits and other policyholders’ liabilities, GMIB reinsurance contract asset, at fair value, and amounts due from reinsurers is a critical audit matter are (i) the significant judgment by management when determining the fair values of the GMIB features accounted for as derivatives, (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating audit evidence relating to the valuation technique and significant unobservable inputs with related to non-performance risk, lapse rates, withdrawal rates, annuitization rates, and mortality rates for the reinsurance contract asset and the amounts due from reinsurers, and non-performance risk, lapse rates, withdrawal rates, annuitization rates and mortality rates for future policyholders’ liabilities (collectively referred to as “the significant unobservable inputs”), and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of

130

Table of Contents

controls relating to determining the fair value of the GMIB features accounted for as derivatives included within future policy benefits and other policyholders’ liabilities, GMIB reinsurance contract asset, at fair value, and amounts due from reinsurers, including controls over the valuation technique and determination of significant unobservable inputs. These procedures also included, among others, testing management’s process for determining the fair value of the GMIB features accounted for as derivatives, which included (i) testing the completeness and accuracy of the historical data used by management to develop and update the significant unobservable inputs, (ii) testing that significant unobservable inputs are accurately reflected in the relevant valuation technique, and (iii) the use of professionals with specialized skill and knowledge to assist in evaluating the appropriateness of the valuation technique and the reasonableness of the significant unobservable inputs based on consideration of the Company’s experience, industry trends, and market conditions, as applicable.

/s/ PricewaterhouseCoopers LLP

New York, New York

February 22, 2022

We have served as the Company’s auditor since 1993.

131

EQUITABLE HOLDINGS, INC.

Consolidated Balance Sheets

December 31, 2021 and 2020

	December 31,
	2021		2020
	(in millions, except share data)
ASSETS
Investments:
Fixed maturities available-for-sale, at fair value (amortized cost of $73,429 and $72,867) (allowance for credit losses of $22 and $13)	$	78,216	$	81,638
Fixed maturities, at fair value using the fair value option (1)	1,641		389
Mortgage loans on real estate (net of allowance for credit losses of $62 and $81) (1)	14,033		13,159
Policy loans	4,024		4,118
Other equity investments (1)	2,975		1,502
Trading securities, at fair value	631		5,553
Other invested assets (1)	3,591		2,728
Total investments	105,111		109,087
Cash and cash equivalents (1)	5,188		6,179
Cash and securities segregated, at fair value	1,504		1,753
Broker-dealer related receivables	2,599		2,223
Deferred policy acquisition costs	5,491		4,243
Goodwill and other intangible assets, net	4,728		4,737
Amounts due from reinsurers (allowance for credit losses of $5 and $5) (includes amounts accounted for at fair value of $5,813 and $—) (3)	14,679		4,566
GMIB reinsurance contract asset, at fair value	1,848		2,488
Current and deferred income taxes	195		—
Other assets (1)	3,613		3,701
Assets held-for-sale	—		470
Separate Accounts assets	147,306		135,950
Total Assets	$	292,262	$	275,397
LIABILITIES
Policyholders’ account balances	$	79,357	$	66,820
Future policy benefits and other policyholders' liabilities	36,717		39,881
Broker-dealer related payables	1,283		1,443
Customer related payables	3,600		3,417
Amounts due to reinsurers	1,381		1,381
Short-term and long-term debt	3,931		4,115
Current and deferred income taxes	—		749
Notes issued by consolidated variable interest entities, at fair value using the fair value option (1)	1,191		313
Other liabilities (1)	3,933		3,686
Liabilities held-for-sale	—		322
Separate Accounts liabilities	147,306		135,950
Total Liabilities	$	278,699	$	258,077
Redeemable noncontrolling interest (1) (2)	$	468	$	143
Commitments and contingent liabilities (Note 17)
EQUITY
Equity attributable to Holdings:
Preferred stock and additional paid-in capital, $1 par value and $25,000 liquidation preference	$	1,562	$	1,269
Common stock, $0.01 par value, 2,000,000,000 shares authorized; 520,918,331 and 552,896,328 shares issued, respectively; 391,290,224 and 440,776,011 shares outstanding, respectively	4		5
Additional paid-in capital	1,919		1,985
Treasury stock, at cost, 129,628,107 and 112,120,317 shares, respectively	(2,850)		(2,245)
Retained earnings	8,880		10,699
Accumulated other comprehensive income (loss)	2,004		3,863
Total equity attributable to Holdings	11,519		15,576
Noncontrolling interest	1,576		1,601
Total Equity	13,095		17,177
Total Liabilities, Redeemable Noncontrolling Interest and Equity	$	292,262	$	275,397

____________

(1) See Note 2 of the Notes to these Consolidated Financial Statements for details of balances with VIEs.

(2) See Note 22 of the Notes to these Consolidated Financial Statements for details of redeemable noncontrolling interest.

(3) Represents the fair value of the ceded reserves to Venerable. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction and Note 8 of the Notes to these Consolidated Financial Statements .

See Notes to Consolidated Financial Statements.

132

EQUITABLE HOLDINGS, INC.

Consolidated Statements of Income (Loss)

Years Ended December 31, 2021, 2020 and 2019

	Year Ended December 31,
	2021		2020		2019
	(in millions, except per share data)
REVENUES
Policy charges and fee income	$	3,637	$	3,735	$	3,778
Premiums	960		997		1,147
Net derivative gains (losses)	(4,465)		(1,722)		(4,012)
Net investment income (loss)	3,846		3,477		3,699
Investment gains (losses), net:
Credit losses on available-for-sale debt securities and loans	2		(58)		—
Other investment gains (losses), net	866		802		73
Total investment gains (losses), net	868		744		73
Investment management and service fees	5,395		4,608		4,380
Other income	795		576		554
Total revenues	11,036		12,415		9,619
BENEFITS AND OTHER DEDUCTIONS
Policyholders’ benefits	3,218		5,326		4,385
Interest credited to policyholders’ account balances	1,219		1,222		1,263
Compensation and benefits	2,360		2,096		2,081
Commissions and distribution-related payments	1,662		1,351		1,242
Interest expense	244		200		221
Amortization of deferred policy acquisition costs	393		1,613		597
Other operating costs and expenses	2,109		1,700		1,890
Total benefits and other deductions	11,205		13,508		11,679
Income (loss) from continuing operations, before income taxes	(169)		(1,093)		(2,060)
Income tax (expense) benefit	145		744		593
Net income (loss)	(24)		(349)		(1,467)
Less: Net income (loss) attributable to the noncontrolling interest	415		299		297
Net income (loss) attributable to Holdings	$	(439)	$	(648)	$	(1,764)
Less: Preferred stock dividends	79		53		—
Net income (loss) available to Holdings’ common shareholders	$	(518)	$	(701)	$	(1,764)
EARNINGS PER COMMON SHARE
Net income (loss) applicable to Holdings’ common shareholders per common share:
Basic	$	(1.24)	$	(1.56)	$	(3.57)
Diluted	$	(1.24)	$	(1.56)	$	(3.57)
Weighted average common shares outstanding (in millions):
Basic	417.4		450.4		493.6
Diluted	417.4		450.4		493.6

See Notes to Consolidated Financial Statements.

133

EQUITABLE HOLDINGS, INC.

Consolidated Statements of Comprehensive Income (Loss)

Years Ended December 31, 2021, 2020 and 2019

	Year Ended December 31,
	2021		2020		2019
	(in millions)
COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$	(24)	$	(349)	$	(1,467)
Other comprehensive income (loss) net of income taxes:
Change in unrealized gains (losses), net of reclassification adjustment	(2,113)		2,956		2,258
Changes in defined benefit plan related items not yet recognized in periodic benefit cost, net of reclassification adjustment	266		48		(15)
Foreign currency translation adjustment	(11)		22		5
Total other comprehensive income (loss), net of income taxes	(1,858)		3,026		2,248
Comprehensive income (loss)	(1,882)		2,677		781
Less: Comprehensive income (loss) attributable to the noncontrolling interest	416		306		293
Comprehensive income (loss) attributable to Holdings	$	(2,298)	$	2,371	$	488

See Notes to Consolidated Financial Statements.

134

EQUITABLE HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF EQUITY

Years Ended December 31, 2021, 2020 and 2019

	Year Ended December 31,
	Equity Attributable to Holdings
	Preferred Stock and Additional Paid-In Capital		Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Holdings Equity		Non-controlling Interest		Total Equity
	(in millions)
January 1, 2021	$	1,269	$	5	$	1,985	$	(2,245)	$	10,699	$	3,863	$	15,576	$	1,601	$	17,177
Stock compensation	—		—		15		51		—		—		66		220		286
Purchase of treasury stock	—		(1)		(27)		(1,610)		—		—		(1,638)		—		(1,638)
Reissuance of treasury stock	—		—		—		—		(51)		—		(51)		—		(51)
Retirement of common stock	—		—		—		954		(954)		—		—		—		—
Repurchase of AB Holding units	—		—		—		—		—		—		—		(262)		(262)
Dividends paid to noncontrolling interest	—		—		—		—		—		—		—		(393)		(393)
Dividends on common stock (cash dividends declared per common share of $0.71)	—		—		—		—		(296)		—		(296)		—		(296)
Dividends on preferred stock	—		—		—		—		(79)		—		(79)		—		(79)
Issuance of preferred stock	293		—		—		—		—		—		293		—		293
Net income (loss)	—		—		—		—		(439)		—		(439)		410		(29)
Other comprehensive income (loss)	—		—		—		—		—		(1,859)		(1,859)		1		(1,858)
Other	—		—		(54)		—		—		—		(54)		(1)		(55)
December 31, 2021	$	1,562	$	4	$	1,919	$	(2,850)	$	8,880	$	2,004	$	11,519	$	1,576	$	13,095

January 1, 2020	$	775	$	5	$	1,920	$	(1,832)	$	11,744	$	844	$	13,456	$	1,591	$	15,047
Cumulative effect of adoption of ASU 2016-03, Current Expected Credit Loss	—		—		—		—		(30)		—		(30)		—		(30)
Stock compensation	—		—		27		17		—		—		44		69		113
Purchase of treasury stock	—		—		—		(430)		—		—		(430)		—		(430)
Reissuance of treasury stock	—		—		—		—		(17)		—		(17)		—		(17)
Repurchase of AB Holding units	—		—		(48)		—		—		—		(48)		(53)		(101)
Dividends paid to noncontrolling interest	—		—		—		—		—		—		—		(305)		(305)
Dividends on common stock (cash dividends declared per common share of $0.66)	—		—		—		—		(297)		—		(297)		—		(297)
Dividends on preferred stock	—		—		—		—		(53)		—		(53)		—		(53)
Issuance of preferred stock	494		—		—		—		—		—		494		—		494
Net income (loss)	—		—		—		—		(648)		—		(648)		302		(346)
Other comprehensive income (loss)	—		—		—		—		—		3,019		3,019		7		3,026
Other	—		—		86		—		—		—		86		(10)		76
December 31, 2020	$	1,269	$	5	$	1,985	$	(2,245)	$	10,699	$	3,863	$	15,576	$	1,601	$	17,177

January 1, 2019	$	—	$	5	$	1,908	$	(640)	$	13,937	$	(1,408)	$	13,802	$	1,566	$	15,368
Stock compensation	—		—		152		9		—		—		161		77		238
Purchase of treasury stock	—		—		—		(1,343)		(2)		—		(1,345)		—		(1,345)
Retirement of common stock	—		—		—		142		(142)		—		—		—		—
Repurchase of AB Holding units	—		—		(112)		—		—		—		(112)		(61)		(173)
Dividends paid to noncontrolling interest	—		—		—		—		—		—		—		(256)		(256)
Dividends on common stock (cash dividends declared per common share of $0.58)	—		—		—		—		(285)		—		(285)		—		(285)
Issuance of preferred stock	775		—		—		—		—		—		775		—		775
Net income (loss)	—		—		—		—		(1,764)		—		(1,764)		263		(1,501)
Other comprehensive income (loss)	—		—		—		—		—		2,252		2,252		(4)		2,248
Other	—		—		(28)		—		—		—		(28)		6		(22)
December 31, 2019	$	775	$	5	$	1,920	$	(1,832)	$	11,744	$	844	$	13,456	$	1,591	$	15,047

See Notes to Consolidated Financial Statements.

135

EQUITABLE HOLDINGS, INC.

Consolidated Statements of Cash Flows

Years Ended December 31, 2021, 2020 and 2019

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Cash flows from operating activities:
Net income (loss)	$	(24)	$	(349)	$	(1,467)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Interest credited to policyholders’ account balances	1,219		1,222		1,263
Policy charges and fee income	(3,637)		(3,735)		(3,778)
Net derivative (gains) losses	4,465		1,722		4,012
Credit losses on AFS debt securities and loans	(2)		58		—
Investment (gains) losses, net	(863)		(872)		(206)
(Gains) losses on businesses HFS	(3)		69		133
Realized and unrealized (gains) losses on trading securities	26		(170)		(502)
Non-cash long term incentive compensation expense	226		210		278
Amortization and depreciation	497		1,757		675
Equity (income) loss from limited partnerships	(553)		(83)		(92)
Changes in:
Net broker-dealer and customer related receivables/payables	(131)		667		(403)
Reinsurance recoverable (1)	(1,077)		(401)		(146)
Segregated cash and securities, net	250		(659)		75
Capitalization of deferred policy acquisition costs	(875)		(670)		(754)
Future policy benefits	(299)		1,953		962
Current and deferred income taxes	(451)		(571)		(102)
Other, net	476		(209)		(164)
Net cash provided by (used in) operating activities	$	(756)	$	(61)	$	(216)
Cash flows from investing activities:
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale	$	34,434	$	18,986	$	13,327
Fixed maturities, at fair value using the fair value option	763		7		—
Mortgage loans on real estate	1,696		630		952
Trading account securities	5,159		2,162		10,717
Real estate joint ventures	—		55		5
Short term investments	87		1,497		2,643
Other	1,716		1,005		306
Payment for the purchase/origination of:
Fixed maturities, available-for-sale	(43,344)		(28,197)		(29,610)
Fixed maturities, at fair value using the fair value option	(1,792)		(311)		—
Mortgage loans on real estate	(2,546)		(1,747)		(1,240)
Trading account securities	(244)		(708)		(1,123)
Short term investments	(18)		(1,098)		(2,776)
Other	(2,553)		(1,167)		(430)
Cash from the sale of business, net of cash sold	215		164		—
Cash settlements related to derivative instruments	(5,937)		1,166		(954)
Repayments of loans to affiliates	—		—		—
Investment in capitalized software, leasehold improvements and EDP equipment	(120)		(107)		(93)
Other, net	(205)		(160)		(220)
Net cash provided by (used in) investing activities	$	(12,689)	$	(7,823)	$	(8,496)

See Notes to Consolidated Financial Statements.

136

EQUITABLE HOLDINGS, INC.

Consolidated Statements of Cash Flows

Years Ended December 31, 2021, 2020 and 2019

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Cash flows from financing activities:
Policyholders’ account balances:
Deposits	$	17,521	$	11,446	12,843
Withdrawals	(7,069)		(4,332)		(4,619)
Transfers (to) from Separate Accounts	1,985		2,452		1,769
Change in short-term financings	92		—		(546)
Change in collateralized pledged assets	34		(139)		(71)
Change in collateralized pledged liabilities	1,413		848		1,361
(Decrease) increase in overdrafts payable	16		(13)		(60)
Repayment of long-term debt	(280)		—		(300)
Proceeds from notes issued by consolidated VIEs	873		313		—
Dividends paid on common stock	(296)		(297)		(285)
Dividends paid on preferred stock	(79)		(53)		—
Issuance of preferred stock	293		494		775
Purchases of AB Holding Units to fund long-term incentive compensation plan awards	(262)		(149)		(172)
Purchase of treasury shares	(1,637)		(430)		(1,350)
Purchases (redemptions) of noncontrolling interests of consolidated company-sponsored investment funds	346		(210)		169
Distribution to noncontrolling interest of consolidated subsidiaries	(392)		(304)		(256)
Increase (decrease) in securities sold under agreement to repurchase	—		—		(573)
Other, net	(47)		48		20
Net cash provided by (used in) financing activities	$	12,511	$	9,674	$	8,705
Effect of exchange rate changes on cash and cash equivalents	$	(18)	$	23	$	8
Change in cash and cash equivalents	(952)		1,813		1
Cash and cash equivalents, beginning of year	6,179		4,405		4,469
Change in cash of businesses held-for-sale	(39)		(39)		(65)
Cash and cash equivalents, end of year	$	5,188	$	6,179	$	4,405
Supplemental cash flow information:
Interest paid	215		215		273
Income taxes (refunded) paid	$	305	$	(173)	$	(506)
Non-cash transactions from investing and financing activities:
Transfer of assets to reinsurer	$	(9,023)	$	—	$	—

__________

(1) Amount includes cash paid for Venerable Transaction of $494 million (see Note 1 of the Notes to these Consolidated Financial Statements).

See Notes to Consolidated Financial Statements.

137

EQUITABLE HOLDINGS, INC.

Notes to Consolidated Financial Statements (Unaudited)

1)    ORGANIZATION

Equitable Holdings, Inc. is the holding company for a diversified financial services organization. The Company conducts operations in four segments: Individual Retirement, Group Retirement, Investment Management and Research, and Protection Solutions. The Company’s management evaluates the performance of each of these segments independently.

•The Individual Retirement 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 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 Investment Management and Research segment provides diversified investment management, research and related solutions globally to a broad range of clients through three main client channels - Institutional, Retail and Private Wealth Management - and distributes its institutional research products and solutions through Bernstein Research Services. The Investment Management and Research segment reflects the business of AB Holding and ABLP and their subsidiaries (collectively, AB).

•The Protection Solutions segment includes the Company’s life insurance and group employee benefits businesses. The life insurance business offers a variety of VUL, IUL and term life products to help affluent and high net worth individuals, as well as small and medium-sized business owners, with their wealth protection, wealth transfer and corporate needs. Our group employee benefits business offers a suite of life, short- and long-term disability, dental and vision insurance products to small and medium-size businesses across the United States.

The Company reports certain activities and items that are not included in our segments in Corporate and Other. Corporate and Other includes certain of our financing and investment expenses. It also includes: Equitable Advisors broker-dealer business, closed block of life insurance (the “Closed Block”), run-off variable annuity reinsurance business, run-off group pension business, run-off health business, benefit plans for our employees, certain strategic investments and certain unallocated items, including capital and related investments, interest expense and corporate expense. AB’s results of operations are reflected in the Investment Management and Research segment. Accordingly, Corporate and Other does not include any items applicable to AB.

As of December 31, 2021 and December 31, 2020 the Company’s economic interest in AB was approximately 65% for both periods. The General Partner of AB is a wholly-owned subsidiary of the Company. Because the General Partner has the authority to manage and control the business of AB, AB is consolidated in the Company’s financial statements for all periods presented.

On June 1, 2021, Holdings completed the sale (the “Venerable Transaction”) of CS Life, to Venerable Insurance and Annuity Company, an insurance company domiciled in Iowa (“VIAC”), pursuant to the Master Transaction Agreement, dated October 27, 2020 (the “Master Transaction Agreement”), among the Company, VIAC and, solely with respect to Article XIV thereof, Venerable Holdings, Inc., a Delaware corporation (“Venerable”).

Pursuant to the Master Transaction Agreement, immediately prior to the closing of the Venerable Transaction, CS Life effected the recapture of all of the business that was ceded to CS Life Re Company, a wholly owned subsidiary of CS Life (“Reinsurance Subsidiary”), and sold 100% of the equity of the Reinsurance Subsidiary to another wholly owned subsidiary of the Company.

VIAC paid the Company a cash purchase price of $215 million for CS Life at closing. The post-closing true-up adjustment was immaterial. VIAC also issued a surplus note in aggregate principal amount of $60 million, to Equitable Financial Life Insurance Company, a New York-domiciled life insurance company and a wholly owned subsidiary of Holdings, for cash consideration.

Immediately following the closing of the Venerable Transaction, CS Life and Equitable Financial entered into a coinsurance and modified coinsurance agreement (the “Reinsurance Agreement”), pursuant to which Equitable Financial ceded to CS Life, on a combined coinsurance and modified coinsurance basis, legacy variable annuity policies sold by Equitable Financial between 2006-2008 (the “Block”), comprised of non-New York “Accumulator” policies containing fixed rate Guaranteed Minimum Income Benefit and/or Guaranteed Minimum Death Benefit

138

EQUITABLE HOLDINGS, INC.

Notes to Consolidated Financial Statements (Unaudited), Continued

guarantees. At the closing of the Transaction, CS Life deposited assets supporting the general account liabilities relating to the Block into a trust account for the benefit of Equitable Financial, which assets will secure its obligations to Equitable Financial under the Reinsurance Agreement. At the closing of the Transaction, AllianceBernstein L.P., a subsidiary of the Company (“AB”), entered into an investment advisory agreement with CS Life pursuant to which AB will serve as the preferred investment manager of the general account assets transferred to the trust account. The Company transferred assets of $9.5 billion, including primarily available for sale securities and cash, to a collateral trust account as the consideration for the reinsurance transaction. In addition, the Company recorded $9.6 billion of direct insurance liabilities ceded under the reinsurance contract, of which $5.3 billion is accounted at fair value, as the reinsurance of GMxB with no lapse guarantee riders are embedded derivatives. Additionally, $16.9 billion of Separate Account liabilities were ceded under a modified coinsurance portion of the agreement.

In addition, upon the completion of the Venerable Transaction, EIMG acquired an approximate 9.09% equity interest in Venerable’s parent holding company, VA Capital Company LLC. In connection with such investment, EIMG designated a member to the Board of Managers of VA Capital Company LLC.

2)     SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Principles of Consolidation

The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions (including normal, recurring accruals) that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates.

The accompanying consolidated financial statements present the consolidated results of operations, financial condition, and cash flows of the Company and its subsidiaries and those investment companies, partnerships and joint ventures in which the Company has control and a majority economic interest as well as those VIEs that meet the requirements for consolidation.

Financial results in the historical consolidated financial statements may not be indicative of the results of operations, comprehensive income (loss), financial position, equity or cash flows that would have been achieved had we operated as a separate, standalone entity during the reporting periods presented. We believe that the consolidated financial statements include all adjustments necessary for a fair presentation of the results of operations of the Company.

All significant intercompany transactions and balances have been eliminated in consolidation. The years “2021”, “2020” and “2019” refer to the years ended December 31, 2021, 2020 and 2019, respectively.

Adoption of New Accounting Pronouncements

Description	Effect on the Financial Statement or Other Significant Matters
ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes
This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, as well as clarifying and amending existing guidance.	On January 1, 2021, the Company adopted the new accounting standards update. The new guidance was applied either on a retrospective, modified retrospective or prospective basis based on the items to which the amendments relate. The adoption did not have a material impact on the Company’s consolidated financial position, results of operations and cash flows as of the adoption date.

Future Adoption of New Accounting Pronouncements

Description	Effective Date and Method of Adoption	Effect on the Financial Statement or Other Significant Matters
ASU 2018-12: Financial Services - Insurance (Topic 944); ASU 2020-11: Financial Services - Insurance (Topic 944): Effective Date and Early Application

139

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Description	Effective Date and Method of Adoption	Effect on the Financial Statement or Other Significant Matters
This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: 1. Measurement of the liability for future policy benefits for traditional and limited payment contracts. The ASU requires companies to review, and if necessary, update cash flow assumptions at least annually for non-participating traditional and limited-payment insurance contracts. The ASU also prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts. 2. Measurement of MRBs. MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. 3. Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts.  4. Expanded footnote disclosures. The ASU requires additional disclosures including information about significant inputs, judgements, assumptions and methods used in measurement	In November 2020, the FASB issued ASU 2020-11 which deferred the effective date of the amendments in ASU 2018-12 for all insurance entities. ASU 2018-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is allowed. For the liability for future policyholder benefits for traditional and limited payment contracts, companies can elect one of two adoption methods. Companies can either elect a modified retrospective transition method applied to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or a full retrospective transition method using actual historical experience information as of contract inception. The same adoption method must be used for deferred policy acquisition costs. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented.	The Company continues to progress with implementation efforts and the evaluation of the impact that adoption of this guidance will have on the Company’s consolidated financial statements. Due to its extensive nature, the adoption of the ASU is expected to have a significant impact on the Company’s consolidated financial statements, as well as systems, processes and controls. Effective January 1, 2023, the new guidance will be adopted using the modified retrospective approach, except for MRBs which will use the full retrospective approach. The Company has created a governance framework and implementation plan to ensure timely adoption of the guidance. In preparation for implementation, the Company continues to refine key accounting policy decisions, modernize processes and update internal controls. These changes include modifications of actuarial valuation systems, data sourcing, analytical procedures and reporting processes. The impact on total equity of applying this ASU is estimated to be less than the current amount of reported AOCI as of December 31, 2021. The majority of the total equity impact as of December 31, 2021 is expected to be reflected in AOCI due to decreases in the Company’s estimate of its non-performance risk on variable annuity guarantees accounted for as MRBs for the first time under the guidance. The estimated impact to the retained earnings element of total equity as of December 31, 2021, due to accounting for variable annuity guarantees as MRBs that are not currently measured at fair value, is mitigated by the Company’s present use of a near industry low interest rate assumption of 2.25% on GMIB business. Because movements in equity markets, interest rates and credit spreads are unpredictable and at times volatile, it is possible that the estimated effects of adoption could change materially between December 31, 2021 and January 1, 2023.

140

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Description	Effective Date and Method of Adoption	Effect on the Financial Statement or Other Significant Matters
ASU2020-04: Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting
The amendments in this ASU provide optional expedients and exceptions to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met.  The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform.	This ASU is effective as of March 12, 2020 through December 31, 2022. On December 15, 2021, the FASB tentatively approved deferring the sunset date of the guidance in Topic 848 to December 31, 2024.	The Company is currently assessing the applicability of the optional expedients and exceptions provided under the ASU. Management is evaluating the impact that the adoption of this guidance will have on the Company’s consolidated financial statements.

Investments

The carrying values of fixed maturities classified as AFS are reported at fair value. Changes in fair value are reported in OCI, net of allowance for credit losses, policy related amounts and deferred income taxes. Changes in credit losses are recognized in Investment gains (losses), net. The redeemable preferred stock investments that are reported in fixed maturities include REIT, perpetual preferred stock and redeemable preferred stock. These securities may not have a stated maturity, may not be cumulative and do not provide for mandatory redemption by the issuer. Effective January 1, 2021, the Company began classifying certain preferred stock as equity securities to better reflect the economics and nature of these securities. These preferred stock securities are reported in other equity investments.

The Company determines the fair values of fixed maturities and equity securities based upon quoted prices in active markets, when available, or through the use of alternative approaches when market quotes are not readily accessible or available. These alternative approaches include matrix or model pricing and use of independent pricing services, each supported by reference to principal market trades or other observable market assumptions for similar securities. More specifically, the matrix pricing approach to fair value is a discounted cash flow methodology that incorporates market interest rates commensurate with the credit quality and duration of the investment. The Company’s management, with the assistance of its investment advisors, evaluates AFS debt securities that experienced a decline in fair value below amortized cost for credit losses which are evaluated in accordance with the new financial instruments credit losses guidance. Integral to this review is an assessment made each quarter, on a security-by-security basis, by the IUS Committee, of various indicators of credit deterioration to determine whether the investment security has experienced a credit loss. This assessment includes, but is not limited to, consideration of the severity of the unrealized loss, failure, if any, of the issuer of the security to make scheduled payments, actions taken by rating agencies, adverse conditions specifically related to the security or sector, and the financial strength, liquidity and continued viability of the issuer.

The Company recognizes an allowance for credit losses on AFS debt securities with a corresponding adjustment to earnings rather than a direct write down that reduces the cost basis of the investment, and credit losses are limited to the amount by which the security’s amortized cost basis exceeds its fair value. Any improvements in estimated credit losses on AFS debt securities are recognized immediately in earnings. Management does not use the length of time a security has been in an unrealized loss position as a factor, either by itself or in combination with other factors, to conclude that a credit loss does not exist.

When the Company determines that there is more than 50% likelihood that it is not going to recover the principal and interest cash flows related to an AFS debt security, the security is placed on nonaccrual status and the Company reverses accrued interest receivable against interest income. Since the nonaccrual policy results in a timely reversal of accrued interest receivable, the Company does not record an allowance for credit losses on accrued interest receivable.

If there is no intent to sell or likely requirement to dispose of the fixed maturity security before its recovery, only the credit loss component of any resulting allowance is recognized in income (loss) and the remainder of the fair value loss is recognized in OCI. The amount of credit loss is the shortfall of the present value of the cash flows expected to be collected as compared to the amortized cost basis of the security. The present value is calculated by discounting management’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security at the date of acquisition. Projections of future cash flows are based on assumptions regarding probability of default and estimates regarding the amount and timing of recoveries. These assumptions and estimates require use of management

141

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

judgment and consider internal credit analyses as well as market observable data relevant to the collectability of the security. For mortgage and asset-backed securities, projected future cash flows also include assumptions regarding prepayments and underlying collateral value.

Write-offs of AFS debt securities are recorded when all or a portion of a financial asset is deemed uncollectible. Full or partial write-offs are recorded as reductions to the amortized cost basis of the AFS debt security and deducted from the allowance in the period in which the financial assets are deemed uncollectible. The Company elected to reverse accrued interest deemed uncollectible as a reversal of interest income. In instances where the Company collects cash that it has previously written off, the recovery will be recognized through earnings or as a reduction of the amortized cost basis for interest and principal, respectively.

Policy loans represent funds loaned to policyholders up to the cash surrender value of the associated insurance policies and are carried at the unpaid principal balances due to the Company from the policyholders. Interest income on policy loans is recognized in net investment income at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies.

Partnerships, investment companies and joint venture interests that the Company has control of and has an economic interest in or those that meet the requirements for consolidation under accounting guidance for consolidation of VIEs are consolidated. Those that the Company does not have control of and does not have a majority economic interest in and those that do not meet the VIE requirements for consolidation are reported on the equity method of accounting and are reported in other equity investments. The Company records its interests in certain of these partnerships on a month or one quarter lag.

Trading securities, which include equity securities and fixed maturities, are carried at fair value based on quoted market prices, with realized and unrealized gains (losses) reported in net investment income (loss) in the consolidated statements of income (loss).

The carrying values of certain fixed maturities are reported at fair value where the fair value option has been elected. The fair value option allows the Company to elect fair value as an alternative measurement for selected financial assets and financial liabilities not otherwise reported at fair value. Such elections have been made to help mitigate volatility in earnings that result from different measurement attributes. Electing the fair value option also allows the consistent accounting in net investment income (loss) for certain assets and liabilities. Changes in fair value of fixed maturities that have elected the fair value option are reflected in realized and unrealized gains (losses) reported in net investment income (loss) in the consolidated statements of income (loss).

Notes issued by consolidated variable interest entities represent notes issued by certain asset-backed investment vehicles, primarily CLOs, which we are required to consolidate. The creditors of these VIEs do not have recourse to the Company in excess of the assets contained within the VIEs. The Company has elected the fair value option for the majority of these notes and has based the fair value on the corresponding debt security collateral. Changes in fair value are reported in net investment income (loss).

COLI has been purchased by the Company and certain subsidiaries on the lives of certain key employees and the Company and these subsidiaries are named as beneficiaries under these policies. COLI is carried at the cash surrender value of the policies. As of December 31, 2021 and 2020, the carrying value of COLI was $1.0 billion and $992 million, respectively, and is reported in other invested assets in the consolidated balance sheets.

Cash and cash equivalents includes cash on hand, demand deposits, money market accounts, overnight commercial paper and highly liquid debt instruments purchased with an original maturity of three months or less. Due to the short-term nature of these investments, the recorded value is deemed to approximate fair value. Cash and securities segregated primarily includes U.S. Treasury Bills segregated by AB in a special reserve bank custody account for the exclusive benefit of its brokerage customers under Rule 15c3-3 of the Exchange Act.

142

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Derivatives

Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, values of securities or commodities, credit spreads, market volatility, expected returns and liquidity. Values can also be affected by changes in estimates and assumptions, including those related to counterparty behavior and non-performance risk used in valuation models. Derivative financial instruments generally used by the Company include equity, currency, and interest rate futures, total return and/or other equity swaps, interest rate swaps and floors, swaptions, variance swaps and equity options, all of which may be exchange-traded or contracted in the OTC market. All derivative positions are carried in the consolidated balance sheets at fair value, generally by obtaining quoted market prices or through the use of valuation models.

Freestanding derivative contracts are reported in the consolidated balance sheets either as assets within “other invested assets” or as liabilities within “other liabilities.” The Company nets the fair value of all derivative financial instruments with counterparties for which an ISDA Master Agreement and related CSA have been executed. All changes in the fair value of the Company’s freestanding derivative positions not designated to hedge accounting relationships, including net receipts and payments, are included in “net derivative gains (losses)” without considering changes in the fair value of the economically associated assets or liabilities.

The Company has designated certain derivatives it uses to economically manage asset/liability risk in relationships which qualify for hedge accounting. To qualify for hedge accounting, we formally document our designation at inception of the hedge relationship as a cash flow, fair value or net investment hedge. This documentation includes our risk management objective and strategy for undertaking the hedging transaction. The Company identifies how the hedging instrument is expected to offset the designated risks related to the hedged item and the method that will be used to retrospectively and prospectively assess the hedge effectiveness. To qualify for hedge accounting, a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed and documented at inception and periodically throughout the life of the hedge accounting relationship.

The Company does not exclude any components of the hedging instrument from the effectiveness assessments and therefore does not separately measure or account for any excluded components of the hedging instrument.

While in cash flow hedge relationships, any periodic net receipts and payments from the hedging instrument are included in the income or expense line that the hedged item’s periodic income or expense is recognized. Other changes in the fair value of the hedging instrument while in a cash flow hedging relationship are reported within OCI. These amounts are deferred in AOCI until they are reclassified to Net income (loss). The reclassified amount offsets the effect of the cash flows on Net income (loss) in the same period when the hedged item affects earnings and on the same line as the hedged item.

We discontinue cash flow hedge accounting prospectively when the Company determines: (1) the hedging instrument is no longer highly effective in offsetting changes in the cash flow from the hedged risk, (2) the hedged item is no longer probable of occurring within two months of their forecast, or (3) the hedging instrument is otherwise redesignated from the hedging relationship. Changes in the fair value of the derivative after discontinuation of cash flow hedge accounting are accounted for as freestanding derivative positions not designated to hedge accounting relationships unless and until the derivative is redesignated to a hedge accounting relationship. When cash flow hedge accounting is discontinued the amounts deferred in AOCI during the hedge relationship continue to be deferred in AOCI, as long as the hedged items continue to be probable of occurring within two months of their forecast, until the hedged item affects Net income (loss). Any amount deferred in AOCI for hedged items which are no longer probable of occurring within two months of their forecast will be reclassified to “net derivative gains (losses)” at that time.

The Company is a party to financial instruments and other contracts that contain “embedded” derivative instruments. At inception, the Company assesses whether the economic characteristics of the embedded instrument are “clearly and closely related” to the economic characteristics of the remaining component of the “host contract” and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. Once those criteria are met the resulting embedded derivative is bifurcated from the host contract, carried in the consolidated balance sheets at fair value, and changes in its fair value are recognized immediately and captioned in the consolidated statements of income (loss) according to the nature of the related host contract. For certain financial instruments that contain an embedded derivative that otherwise would need to be bifurcated and reported at fair value, the Company instead may elect to carry the entire instrument at fair value.

143

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Mortgage Loans on Real Estate

Mortgage loans are stated at unpaid principal balances, net of unamortized discounts and the allowance for credit losses. The Company calculates the allowance for credit losses in accordance with the CECL model in order to provide for the risk of credit losses in the lending process.

Expected credit losses for loans with similar risk characteristics are estimated on a collective (i.e., pool) basis in order to meet CECL’s risk of loss concept which requires the Company to consider possibilities of loss, even if remote.

For collectively evaluated mortgages, the Company estimates the allowance for credit losses based on the amortized cost basis of its mortgages over their expected life using a PD / LGD model. The PD/LGD model incorporates the Company’s reasonable and supportable forecast of macroeconomic information over a specified period. The length of the reasonable and supportable forecast period is reassessed on a quarterly basis and may be adjusted as appropriate over time to be consistent with macroeconomic conditions and the environment as of the reporting date. For periods beyond the reasonable and supportable forecast period, the model reverts to historical loss information. The PD and LGD are estimated at the loan-level based on loans’ current and forecasted risk characteristics as well as macroeconomic forecasts. The PD is estimated using both macroeconomic conditions as well as individual loan risk characteristics including LTV ratios, DSC ratios, seasoning, collateral type, geography, and underlying credit. The LGD is driven primarily by the type and value of collateral, and secondarily by expected liquidation costs and time to recovery.

For individually evaluated mortgages, the Company continues to recognize a valuation allowance on the present value of expected future cash flows discounted at the loan’s original effective interest rate or on its collateral value.

The CECL model is configured to the Company’s specifications and takes into consideration the detailed risk attributes of each discrete loan in the mortgage portfolio which include, but are not limited to the following:

•LTV ratio – Derived from current loan balance divided by the fair market value of the property. An LTV ratio in excess of 100% indicates an underwater mortgage.

•DSC ratio – Derived from actual operating earnings divided by annual debt service. If the ratio is below 1.0x, then the income from the property does not support the debt.

•Occupancy – Criteria varies by property type but low or below market occupancy is an indicator of sub-par property performance.

•Lease expirations – The percentage of leases expiring in the upcoming 12 to 36 months are monitored as a decline in rent and/or occupancy may negatively impact the debt service coverage ratio. In the case of single-tenant properties or properties with large tenant exposure, the lease expiration is a material risk factor.

•Other – Any other factors such as maturity, borrower/tenant related issues, payment status, property condition, or current economic conditions may call into question the performance of the loan.

Mortgage loans that do not share similar risk characteristics with other loans in the portfolio are individually evaluated quarterly by the Company’s IUS Committee. The allowance for credit losses on these individually evaluated mortgages is a loan-specific reserve as a result of the loan review process that is recorded based on the present value of expected future cash flows discounted at the loan’s effective interest rate or based on the fair value of the collateral. The individually assessed allowance for mortgage loans can increase or decrease from period to period based on such factors.

Individually assessed loans may include, but are not limited to, mortgages that have deteriorated in credit quality such as a TDR and reasonably expected TDRs, mortgages for which foreclosure is probable, and mortgages which have been classified as “potential problem” or “problem” loans within the Company’s IUS Committee processes as described below.

Within the IUS process, commercial mortgages 60 days or more past due and agricultural mortgages 90 days or more past due, as well as all mortgages in the process of foreclosure, are identified as problem mortgage loans. Based on its monthly monitoring of mortgages, a class of potential problem mortgage loans are also identified, consisting of mortgage loans not currently classified as problem mortgage loans but for which management has doubts as to the ability of the borrower to comply with the present loan payment terms and which may result in the loan becoming a problem or being modified. The decision whether to classify a performing mortgage loan as a potential problem

144

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

involves judgments by management as to likely future industry conditions and developments with respect to the borrower or the individual mortgaged property.

Individually assessed mortgage loans without provision for losses are mortgage loans where the fair value of the collateral or the net present value of the expected future cash flows related to the loan equals or exceeds the recorded investment. Interest income earned on mortgage loans where the collateral value is used to measure impairment is recorded on a cash basis. Interest income on mortgage loans where the present value method is used to measure impairment is accrued on the net carrying value amount of the loan at the interest rate used to discount the cash flows.

Mortgage loans are placed on nonaccrual status once management believes the collection of accrued interest is not probable. Once mortgage loans are classified as nonaccrual mortgage loans, interest income is recognized under the cash basis of accounting and the resumption of the interest accrual would commence only after all past due interest has been collected or the mortgage loan has been restructured to where the collection of interest is considered likely. The Company charges off loan balances and accrued interest that are deemed uncollectible.

The components of amortized cost for mortgage loans on the consolidated balance sheets excludes accrued interest amounts because the Company presents accrued interest receivables within other assets. Once mortgage loans are placed on nonaccrual status, the Company reverses accrued interest receivable against interest income. Since the nonaccrual policy results in the timely reversal of accrued interest receivable, the Company does not record an allowance for credit losses on accrued interest receivable.

Troubled Debt Restructuring

The Company invests in commercial and agricultural mortgage loans included in the balance sheet as mortgage loans on real estate and privately negotiated fixed maturities included in the balance sheet as fixed maturities AFS. Under certain circumstances, modifications are granted to these contracts. Each modification is evaluated as to whether a TDR has occurred. A modification is a TDR when the borrower is in financial difficulty and the creditor makes concessions. Generally, the types of concessions may include reducing the face amount or maturity amount of the debt as originally stated, reducing the contractual interest rate, extending the maturity date at an interest rate lower than current market interest rates and/or reducing accrued interest. The Company considers the amount, timing and extent of the concession granted in determining any impairment or changes in the specific credit allowance recorded in connection with the TDR. A credit allowance may have been recorded prior to the period when the loan is modified in a TDR. Accordingly, the carrying value (net of the allowance) before and after modification through a TDR may not change significantly, or may increase if the expected recovery is higher than the pre-modification recovery assessment.

Net Investment Income (Loss), Investment Gains (Losses) Net and Unrealized Investment Gains (Losses)

Realized investment gains (losses) are determined by identification with the specific asset and are presented as a component of revenue. Changes in the allowance for credit losses are included in investment gains (losses), net.

Realized and unrealized holding gains (losses) on trading and equity securities are reflected in net investment income (loss).

Unrealized investment gains (losses) on fixed maturities designated as AFS held by the Company are accounted for as a separate component of AOCI, net of related deferred income taxes, as are amounts attributable to certain pension operations, Closed Block’s policyholders’ dividend obligation, insurance liability loss recognition, DAC related to UL policies, investment-type products and participating traditional life policies.

Changes in unrealized gains (losses) reflect changes in fair value of only those fixed maturities classified as AFS and do not reflect any change in fair value of policyholders’ account balances and future policy benefits.

Fair Value of Financial Instruments

See Note 8 of the Notes to these Consolidated Financial Statements for additional information regarding determining the fair value of financial instruments.

Recognition of Insurance Income and Related Expenses

Deposits related to UL and investment-type contracts are reported as deposits to policyholders’ account balances. Revenues from these contracts consist of fees assessed during the period against policyholders’ account balances for mortality charges, policy administration charges and surrender charges. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policyholders’ account balances.

145

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Premiums from participating and non-participating traditional life and annuity policies with life contingencies generally are recognized in income when due. Benefits and expenses are matched with such income so as to result in the recognition of profits over the life of the contracts. This match is accomplished by means of the provision for liabilities for future policy benefits and the deferral and subsequent amortization of DAC.

For contracts with a single premium or a limited number of premium payments due over a significantly shorter period than the total period over which benefits are provided, premiums are recorded as revenue when due with any excess profit deferred and recognized in income in a constant relationship to insurance in-force or, for annuities, the amount of expected future benefit payments.

Premiums from individual health contracts are recognized as income over the period to which the premiums relate in proportion to the amount of insurance protection provided.

DAC

Acquisition costs that vary with and are primarily related to the acquisition of new and renewal insurance business, reflecting incremental direct costs of contract acquisition with independent third parties or employees that are essential to the contract transaction, as well as the portion of employee compensation, including payroll fringe benefits and other costs directly related to underwriting, policy issuance and processing, medical inspection, and contract selling for successfully negotiated contracts including commissions, underwriting, agency and policy issue expenses, are deferred. In each reporting period, DAC amortization, net of the accrual of imputed interest on DAC balances, is recorded to amortization of deferred policy acquisition costs. DAC is subject to recoverability testing at the time of policy issue and loss recognition testing at the end of each accounting period. The determination of DAC, including amortization and recoverability estimates, is based on models that involve numerous assumptions and subjective judgments, including those regarding policyholder behavior, surrender and withdrawal rates, mortality experience, and other inputs including financial market volatility and market rates of return.

After the initial establishment of reserves, premium deficiency and loss recognition tests are performed each period end using best estimate assumptions as of the testing date without provisions for adverse deviation. When the liabilities for future policy benefits plus the present value of expected future gross premiums for the aggregate product group are insufficient to provide for expected future policy benefits and expenses for that line of business (i.e., reserves net of any DAC asset), DAC would first be written off and thereafter, if required, a premium deficiency reserve would be established by a charge to earnings.

Amortization Policy

In accordance with the guidance for the accounting and reporting by insurance enterprises for certain long-duration contracts and participating contracts and for realized gains and losses from the sale of investments, current and expected future profit margins for products covered by this guidance are examined regularly in determining the amortization of DAC.

DAC associated with certain variable annuity products is amortized based on estimated assessments, with DAC on the remainder of variable annuities, UL and investment-type products amortized over the expected total life of the contract group as a constant percentage of estimated gross profits arising principally from investment results, Separate Accounts fees, mortality and expense margins and surrender charges based on historical and anticipated future experience, embedded derivatives and changes in the reserve of products that have indexed features such as SCS IUL and MSO, updated at the end of each accounting period. When estimated gross profits are expected to be negative for multiple years of a contract life, DAC is amortized using the present value of estimated assessments. The effect on the amortization of DAC of revisions to estimated gross profits or assessments is reflected in earnings (loss) in the period such estimated gross profits or assessments are revised. A decrease in expected gross profits or assessments would accelerate DAC amortization. Conversely, an increase in expected gross profits or assessments would slow DAC amortization. The effect on the DAC assets that would result from realization of unrealized gains (losses) is recognized with an offset to AOCI in consolidated equity as of the balance sheet date.

A significant assumption in the amortization of DAC on variable annuities and, to a lesser extent, on variable and interest-sensitive life insurance relates to projected future separate account performance. Management sets estimated future gross profit or assessment assumptions related to separate account performance using a long-term view of expected average market returns by applying a RTM approach, a commonly used industry practice. This future return approach influences the projection of fees earned, as well as other sources of estimated gross profits. Returns that are higher than expectations for a given period produce higher than expected account balances, increase the fees earned

146

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

resulting in higher expected future gross profits and lower DAC amortization for the period. The opposite occurs when returns are lower than expected.

In applying this approach to develop estimates of future returns, it is assumed that the market will return to an average gross long-term return estimate, developed with reference to historical long-term equity market performance. Management has set limitations as to maximum and minimum future rate of return assumptions, as well as a limitation on the duration of use of these maximum or minimum rates of return. As of December 31, 2021, the average gross short-term and long-term annual return estimate on variable and interest-sensitive life insurance and variable annuities was 7.0% (4.7% net of product weighted average Separate Accounts fees), and the gross maximum and minimum short-term annual rate of return limitations were 15.0% (12.7% net of product weighted average Separate Accounts fees and Investment Advisory fees) and 0.0% ((2.3%) net of product weighted average Separate Accounts fees and Investment Advisory fees), respectively. The maximum duration over which these rate limitations may be applied is five years. This approach will continue to be applied in future periods. These assumptions of long-term growth are subject to assessment of the reasonableness of resulting estimates of future return assumptions.

In addition, projections of future mortality assumptions related to variable and interest-sensitive life products are based on a long-term average of actual experience. This assumption is updated periodically to reflect recent experience as it emerges. Improvement of life mortality in future periods from that currently projected would result in future deceleration of DAC amortization. Conversely, deterioration of life mortality in future periods from that currently projected would result in future acceleration of DAC amortization.

Other significant assumptions underlying gross profit estimates for UL and investment type products relate to contract persistency and General Account investment spread.

For participating traditional life policies (substantially all of which are in the Closed Block), DAC is amortized over the expected total life of the contract group as a constant percentage based on the present value of the estimated gross margin amounts expected to be realized over the life of the contracts using the expected investment yield. As of December 31, 2021, the average rate of assumed investment yields, excluding policy loans, for the Company was 4.5% grading to 4.3% in 2026. Estimated gross margins include anticipated premiums and investment results less claims and administrative expenses, changes in the net level premium reserve and expected annual policyholder dividends. The effect on the accumulated amortization of DAC of revisions to estimated gross margins is reflected in earnings in the period such estimated gross margins are revised. The effect on the DAC assets that would result from realization of unrealized gains (losses) is recognized with an offset to AOCI in consolidated equity as of the balance sheet date. Many of the factors that affect gross margins are included in the determination of the Company’s dividends to these policyholders. DAC adjustments related to participating traditional life policies do not create significant volatility in results of operations as the Closed Block recognizes a cumulative policyholder dividend obligation expense in policyholders’ benefits for the excess of actual cumulative earnings over expected cumulative earnings as determined at the time of demutualization.

DAC associated with non-participating traditional life policies are amortized in proportion to anticipated premiums. Assumptions as to anticipated premiums are estimated at the date of policy issue and are consistently applied during the life of the contracts. Deviations from estimated experience are reflected in income (loss) in the period such deviations occur. For these contracts, the amortization periods generally are for the total life of the policy. DAC related to these policies are subject to recoverability testing as part of the Company’s premium deficiency testing. If a premium deficiency exists, DAC are reduced by the amount of the deficiency or to zero through a charge to current period earnings (loss). If the deficiency exceeds the DAC balance, the reserve for future policy benefits is increased by the excess, reflected in earnings (loss) in the period such deficiency occurs.

For some products, policyholders can elect to modify product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. These transactions are known as internal replacements. If such modification substantially changes the contract, the associated DAC is written off immediately through income and any new deferrable costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed.

Reinsurance

For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Cessions under

147

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

reinsurance agreements do not discharge the Company’s obligations as the primary insurer. The Company reviews all contractual features, including those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims.

For reinsurance of existing in-force blocks of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid (received), and the liabilities ceded (assumed) related to the underlying contracts is considered the net cost of reinsurance at the inception of the reinsurance agreement. The net cost of reinsurance is recorded as an adjustment to DAC and recognized as a component of other expenses on a basis consistent with the way the acquisition costs on the underlying reinsured contracts would be recognized. Subsequent amounts paid (received) on the reinsurance of in-force blocks, as well as amounts paid (received) related to new business, are recorded as premiums ceded (assumed); and amounts due from reinsurers (amounts due to reinsurers) are established.

Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance.

Premiums, policy charges and fee income, and policyholders’ benefits include amounts assumed under reinsurance agreements and are net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in other revenues. With respect to GMIBs, a portion of the directly written GMIBs are accounted for as insurance liabilities, but the associated reinsurance agreements contain embedded derivatives as they are net settled. These embedded derivatives are included in GMIB reinsurance contract asset, at fair value with changes in estimated fair value reported in net derivative gains (losses). Separate Account liabilities that have been ceded on a Modified coinsurance (Modco) basis, receivable and payable have been recognized on a net basis as right of offset exists.

If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within other assets. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as other income or other operating costs and expenses, as appropriate. Periodically, the Company evaluates the adequacy of the expected payments or recoveries and adjusts the deposit asset or liability through other revenues or other expenses, as appropriate.

For reinsurance contracts other than those accounted for as derivatives, reinsurance recoverable balances are calculated using methodologies and assumptions that are consistent with those used to calculate the direct liabilities.

Policyholder Bonus Interest Credits

Policyholder bonus interest credits are offered on certain deferred annuity products in the form of either immediate bonus interest credited or enhanced interest crediting rates for a period of time. The interest crediting expense associated with these policyholder bonus interest credits is deferred and amortized over the lives of the underlying contracts in a manner consistent with the amortization of DAC. Unamortized balances are included in other assets in the consolidated balance sheets and amortization is included in interest credited to policyholders’ account balances in the consolidated statements of income (loss).

Policyholders’ Account Balances and Future Policy Benefits and Other Policyholders’ Liabilities

Policyholders’ account balances relate to contracts or contract features where the Company has no significant insurance risk. This liability represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date.

For participating traditional life insurance policies, future policy benefit liabilities are calculated using a net level premium method on the basis of actuarial insurance assumptions equal to guaranteed mortality and dividend fund interest rates. The liability for annual dividends represents the accrual of annual dividends earned. Terminal dividends are accrued in proportion to gross margins over the life of the contract.

For non-participating traditional life insurance policies, future policy benefit liabilities are estimated using a net level premium method on the basis of actuarial assumptions as to mortality, persistency and interest established at policy issue. Assumptions established at policy issue as to mortality and persistency are based on the Company’s experience

148

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

that, together with interest and expense assumptions, includes a margin for adverse deviation. Benefit liabilities for traditional annuities during the accumulation period are equal to accumulated policyholders’ fund balances and, after annuitization, are equal to the present value of expected future payments. Interest rates used in establishing such liabilities range from 3.5% to 7.3% (weighted average of 5.0%) for approximately 99.4% of life insurance liabilities and from 1.5% to 5.4% (weighted average of 3.5%) for annuity liabilities.

Individual health benefit liabilities for active lives are estimated using the net level premium method and assumptions as to future morbidity, withdrawals and interest. Benefit liabilities for disabled lives are estimated using the present value of benefits method and experience assumptions as to claim terminations, expenses and interest. While management believes its DI reserves have been calculated on a reasonable basis and are adequate, there can be no assurance reserves will be sufficient to provide for future liabilities.

Obligations arising from funding agreements are also reported in policyholders’ account balances in the consolidated balance sheets. As a member of the FHLB, the Company has access to collateralized borrowings. The Company may also issue funding agreements to the FHLB. Both the collateralized borrowings and funding agreements would require the Company to pledge qualified mortgage-backed assets and/or government securities as collateral.

The Company has issued and continues to offer certain variable annuity products with GMDB and/or contain a GMLB (collectively, the “GMxB features”) which, if elected by the policyholder after a stipulated waiting period from contract issuance, guarantees a minimum lifetime annuity based on predetermined annuity purchase rates that may be in excess of what the contract account value can purchase at then-current annuity purchase rates. This minimum lifetime annuity is based on predetermined annuity purchase rates applied to a GMIB base. The Company previously issued certain variable annuity products with GIB, GWBL, GMWB, and GMAB features. The Company has also assumed reinsurance for products with GMxB features.

Reserves for products that have GMIB features, but do not have no-lapse guarantee features, and products with GMDB features are determined by estimating the expected value of death or income benefits in excess of the projected contract accumulation value and recognizing the excess over the estimated life based on expected assessments (i.e., benefit ratio). The liability equals the current benefit ratio multiplied by cumulative assessments recognized to date, plus interest, less cumulative excess payments to date. These reserves are recorded within future policy benefits and other policyholders’ liabilities. The determination of this estimated future policy benefits liability is based on models that involve numerous assumptions and subjective judgments, including those regarding expected market rates of return and volatility, contract surrender and withdrawal rates, mortality experience, and, for contracts with the GMIB feature, GMIB election rates. Assumptions regarding separate account performance used for purposes of this calculation are set using a long-term view of expected average market returns by applying a RTM approach, consistent with that used for DAC amortization. There can be no assurance that actual experience will be consistent with management’s estimates.

Products that have a GMIB feature with a no-lapse guarantee rider (“GMIBNLG”), GIB, GWBL, GMWB and GMAB features and the assumed products with GMIB features (collectively “GMxB derivative features”) are considered either freestanding or embedded derivatives and discussed below under (“Embedded and Freestanding Insurance Derivatives”).

After the initial establishment of reserves, premium deficiency and loss recognition tests are performed each period end using best estimate assumptions as of the testing date without provisions for adverse deviation. When the liabilities for future policy benefits plus the present value of expected future gross premiums for the aggregate product group are insufficient to provide for expected future policy benefits and expenses for that line of business (i.e., reserves net of any DAC asset), DAC would first be written off and thereafter, if required, a premium deficiency reserve would be established by a charge to earnings. Premium deficiency reserves are recorded for the group single premium annuity business, certain interest-sensitive life contracts, structured settlements, individual disability income and major medical. Additionally, in certain instances the policyholder liability for a particular line of business may not be deficient in the aggregate to trigger loss recognition, but the pattern of earnings may be such that profits are expected to be recognized in earlier years followed by losses in later years. This pattern of profits followed by losses is exhibited in our VISL business and is generated by the cost structure of the product or secondary guarantees in the contract. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. We accrue for these PFBL using a dynamic approach that changes over time as the projection of future losses change.

149

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Policyholders’ Dividends

The amount of policyholders’ dividends to be paid (including dividends on policies included in the Closed Block) is determined annually by the board of directors of the issuing insurance company. The aggregate amount of policyholders’ dividends is related to actual interest, mortality, morbidity and expense experience for the year and judgment as to the appropriate level of statutory surplus to be retained by the Company.

Embedded and Freestanding Insurance Derivatives

Reserves for products or features within products that are considered either embedded or freestanding derivatives are measured at estimated fair value separately from the host variable annuity product, with changes in estimated fair value reported in net derivative gains (losses). The estimated fair values of these derivatives are determined based on the present value of projected future benefits minus the present value of projected future fees attributable to the guarantee. The projections of future benefits and future fees require capital markets and actuarial assumptions, including expectations concerning policyholder behavior. A risk-neutral valuation methodology is used under which the cash flows from the guarantees are projected under multiple capital market scenarios using observable risk-free rates.

Additionally, the Company cedes and assumes reinsurance of products with GMxB features, which are considered either an embedded or freestanding derivative, and measured at fair value. The GMxB reinsurance contract asset and liabilities’ fair values reflect the present value of reinsurance premiums, net of recoveries, and risk margins over a range of market-consistent economic scenarios.

Changes in the fair value of embedded and freestanding derivatives are reported in net derivative gains (losses). Embedded derivatives in direct and assumed reinsurance contracts are reported in future policyholders’ benefits and other policyholders’ liabilities. Amounts due from reinsurers contains the reinsurance of underlying GMIB contracts that are embedded derivatives, so the reinsurance has the same risk attributes as the underlying contracts and is an embedded derivatives carried at fair value. There are also embedded derivatives reported in the GMIB reinsurance contract asset related to ceded reinsurance contracts that are net settled, recorded at fair value in the consolidated balance sheets.

Embedded derivatives fair values are determined based on the present value of projected future benefits minus the present value of projected future fees. At policy inception, a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits is attributed to the embedded derivative. The percentage of fees included in the fair value measurement is locked-in at inception. Fees above those amounts represent “excess” fees and are reported in policy charges and fee income.

Separate Accounts

Generally, Separate Accounts established under New York State and Arizona State Insurance Law are not chargeable with liabilities that arise from any other business of the Company. Separate Accounts assets are subject to General Account claims only to the extent Separate Accounts assets exceed separate accounts liabilities. Assets and liabilities of the Separate Account represent the net deposits and accumulated net investment earnings (loss) less fees, held primarily for the benefit of policyholders, and for which the Company does not bear the investment risk. Separate Accounts assets and liabilities are shown on separate lines in the consolidated balance sheets. Assets held in Separate Accounts are reported at quoted market values or, where quoted values are not readily available or accessible for these securities, their fair value measures most often are determined through the use of model pricing that effectively discounts prospective cash flows to present value using appropriate sector-adjusted credit spreads commensurate with the security’s duration, also taking into consideration issuer-specific credit quality and liquidity. Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains (losses)) and the corresponding amounts credited to policyholders of such Separate Accounts are offset within the same line in the consolidated statements of income (loss).

Deposits to Separate Accounts are reported as increases in Separate Accounts assets and liabilities and are not reported in the consolidated statements of income (loss). Mortality, policy administration and surrender charges on all policies including those funded by Separate Accounts are included in revenues.

The Company reports the General Account’s interests in Separate Accounts as trading securities, at fair value, in the consolidated balance sheets.

150

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Leases

The Company does not record leases with an initial term of 12 months or less in its consolidated balance sheets, but instead recognizes lease expense for these leases on a straight-line basis over the lease term. For leases with a term greater than one year, the Company records in its consolidated balance sheets at the time of lease commencement or modification a RoU operating lease asset and a lease liability, initially measured at the present value of the lease payments. Lease costs are recognized in the consolidated statements of income (loss) over the lease term on a straight-line basis. RoU operating lease assets represent the Company’s right to use an underlying asset for the lease term and RoU operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease.

Broker-Dealer Revenues, Receivables and Payables

Equitable Advisors and certain of the Company’s other subsidiaries provide investment management, brokerage and distribution services for affiliates and third parties. Third-party revenues earned from these services are reported in other income in the Company’s consolidated statement of income (loss).

Receivables from and payables to clients include amounts due on cash and margin transactions. Securities owned by customers are held as collateral for receivables; such collateral is not reflected in the consolidated financial statements.

Goodwill and Other Intangible Assets

Goodwill recorded by the Company represents the excess of purchase price over the estimated fair value of identifiable net assets of companies acquired in a business combination and relates principally to the acquisition of SCB Inc., an investment research and management company formerly known as Sanford C. Bernstein Inc. (“Bernstein Acquisition”) and the purchase of AB Units. The Company tests goodwill for recoverability each annual reporting period at December 31 and at interim periods if facts or circumstances are indicative of potential impairment.

Starting as of June 30, 2020, the Company changed its measurement of the fair value of its Investment Management and Research reporting unit from a discounted cash flow valuation technique to a market valuation approach. Under the market valuation approach, the fair value of the reporting unit is based on its adjusted market valuation assuming a control premium. The Company determined that this valuation technique provided a more exact determination of fair value for the reporting unit and was applied during its annual testing for goodwill recoverability at December 31, 2021 and 2020.

The Company’s intangible assets primarily relate to the Bernstein Acquisition and purchases of AB Units and reflect amounts assigned to acquired investment management contracts based on their estimated fair values at the time of acquisition, less accumulated amortization. These intangible assets generally are amortized on a straight-line basis over their estimated useful life, ranging from six to twenty years. All intangible assets are periodically reviewed for impairment as events or changes in circumstances indicate that the carrying value may not be recoverable. If the carrying value exceeds fair value, impairment tests are performed to measure the amount of the impairment loss, if any.

Deferred Sales Commissions, Net

Commissions paid to financial intermediaries in connection with the sale of shares of open-end AB sponsored mutual funds sold without a front-end sales charge (“back-end load shares”) are capitalized as deferred sales commissions and amortized over periods not exceeding five and one-half years for U.S. fund shares and four years for non-U.S. fund shares, the periods of time during which the deferred sales commissions are generally recovered. These commissions are recovered from distribution services fees received from those funds and from CDSC received from shareholders of those funds upon the redemption of their shares. CDSC cash recoveries are recorded as reductions of unamortized deferred sales commissions when received. Since January 31, 2009, AB sponsored U.S. mutual funds have not offered back-end load shares to new investors.

Management periodically reviews the deferred sales commission asset for impairment as events or changes in circumstances indicate that the carrying value may not be recoverable. If these factors indicate impairment in value, a comparison is made of the carrying value to the undiscounted cash flows expected to be generated by the asset over its remaining life. If it is determined the deferred sales commission asset is not fully recoverable, the asset will be deemed impaired and a loss will be recorded in the amount by which the recorded amount of the asset exceeds its estimated fair value.

151

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

As of December 31, 2021 and 2020, respectively, net deferred sales commissions from AB totaled $75 million and $64 million and are included within other assets in the consolidated balance sheets. The estimated amortization expense of deferred sales commissions, based on the December 31, 2021 net asset balance for each of the next four years is $35 million, $26 million, $13 million and $1 million. The Company tests the deferred sales commission asset for impairment quarterly by comparing undiscounted future cash flows to the recorded value, net of accumulated amortization. Each quarter, significant assumptions used to estimate the future cash flows are updated to reflect management’s consideration of current market conditions on expectations made with respect to future market levels and redemption rates. As of December 31, 2021 and 2020, the Company determined that the deferred sales commission asset was not impaired.

Capitalized Computer Software and Hosting Arrangements

Capitalized computer software and hosting arrangements include certain internal and external costs used to implement internal-use software and cloud computing hosting arrangements. These capitalized computer costs are included in other assets in the consolidated balance sheets and amortized on a straight-line basis over the estimated useful life of the software or term of the hosting arrangement that ranges between three and five years. Capitalized amounts are periodically tested for impairment in accordance with the guidance on impairment of long-lived assets. An immediate charge to earnings is recognized if capitalized computer costs no longer are deemed to be recoverable. In addition, service potential is periodically reassessed to determine whether facts and circumstances have compressed the software’s useful life or a significant change in the term of the hosting arrangement such that acceleration of amortization over a shorter period than initially determined would be required.

Capitalized computer software and hosting arrangements, net of accumulated amortization, amounted to $193 million and $191 million as of December 31, 2021 and 2020, respectively. Amortization of capitalized computer software and hosting arrangements in 2021, 2020 and 2019 was $57 million, $60 million and $52 million, respectively, recorded in other operating costs and expenses in the consolidated statements of income (loss).

Short-term and Long-term Debt

Liabilities for short-term and long-term debt are primarily carried at an amount equal to unpaid principal balance, net of unamortized discount or premium and debt issue costs. Original-issue discount or premium and debt-issue costs are recognized as a component of interest expense over the period the debt is expected to be outstanding, using the interest method of amortization. Interest expense is generally presented within interest expense in the consolidated statements of income (loss). Short-term debt represents debt coming due in the next twelve months, including that portion of debt otherwise classified as long-term. See Note 12 of the Notes to these Consolidated Financial Statements for additional information regarding short-term and long-term debt.

Income Taxes

The Company and certain of its consolidated subsidiaries and affiliates file a consolidated federal income tax return. The Company provides for federal and state income taxes currently payable, as well as those deferred due to temporary differences between the financial reporting and tax bases of assets and liabilities. Current federal income taxes are charged or credited to operations based upon amounts estimated to be payable or recoverable as a result of taxable operations for the current year. Deferred income tax assets and liabilities are recognized based on the difference between financial statement carrying amounts and income tax bases of assets and liabilities using enacted income tax rates and laws. Valuation allowances are established when management determines, based on available information, that it is more likely than not that deferred tax assets will not be realized.

Under accounting for uncertainty in income taxes guidance, the Company determines whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded in the consolidated financial statements. Tax positions are then measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement.

ABLP is a private partnership for federal income tax purposes and, accordingly, is not subject to federal and state corporate income taxes. However, ABLP is subject to a 4.0% New York City unincorporated business tax. AB Holding is subject to a 3.5% federal tax on partnership gross income from the active conduct of a trade or business. Domestic corporate subsidiaries of AB are subject to federal, state and local income taxes. Foreign corporate subsidiaries are generally subject to taxes in the foreign jurisdictions where they are located.

152

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Recognition of Investment Management and Service Fees and Related Expenses

Investment management, advisory and service fees

Investment management and service fees principally include the Investment Management and Research segment’s investment advisory and service fees, distribution revenues and institutional research services revenue. Investment advisory and service base fees, generally calculated as a percentage, referred to as BPs, of assets under management, are recorded as revenue as the related services are performed. Certain investment advisory contracts, including those associated with hedge funds, provide for a performance-based fee, in addition to or in lieu of a base fee which is calculated as either a percentage of absolute investment results or a percentage of the investment results in excess of a stated benchmark over a specified period of time.

Investment management and administrative service fees are also earned by EIM and EIMG and reported in the Individual Retirement, Group Retirement and Protection Solutions segments as well as certain asset-based fees associated with insurance contracts.

AB provides asset management services by managing customer assets and seeking to deliver returns to investors. Similarly, EIM and EIMG provides investment management and administrative services, such as fund accounting and compliance services, to EQ Premier VIP Trust, EQAT and 1290 Funds as well as two private investment trusts established in the Cayman Islands, AXA Allocation Funds Trust and AXA Offshore Multimanager Funds Trust (collectively, the “Other AXA Trusts”). The contracts supporting these revenue streams create a distinct, separately identifiable performance obligation for each day the assets are managed for the performance of a series of services that are substantially the same and have the same pattern of transfer to the customer. Accordingly, these investment management, advisory, and administrative service base fees are recorded over time as services are performed and entitle the Company to variable consideration. Base fees, generally calculated as a percentage of AUM, are recognized as revenue at month-end when the transaction price no longer is variable and the value of the consideration is determined. These fees are not subject to claw back and there is minimal probability that a significant reversal of the revenue recorded will occur.

Certain investment advisory contracts of AB, including those associated with hedge funds or other alternative investments, provide for a performance-based fee (including carried interest), in addition to a base advisory fee, calculated either as a percentage of absolute investment results or a percentage of investment results in excess of a stated benchmark over a specified period of time. These performance-based fees are forms of variable consideration and, therefore, are excluded from the transaction price until it becomes probable there will not be significant reversal of the cumulative revenue recognized. At each reporting date, the Company evaluates constraining factors surrounding the variable consideration to determine the extent to which, if any, revenues associated with the performance-based fee can be recognized. Constraining factors impacting the amount of variable consideration included in the transaction price include contractual claw-back provisions, the length of time of the uncertainty, the number and range of possible amounts, the probability of significant fluctuations in the fund’s market value and the level in which the fund’s value exceeds the contractual threshold required to earn such a fee and the materiality of the amount being evaluated.

Sub-advisory and sub-administrative expenses associated with these services are calculated and recorded as the related services are performed in other operating costs and expense in the consolidated statements of income (loss) as the Company is acting in a principal capacity in these transactions and, as such, reflects these revenues and expenses on a gross basis.

Research services

Research services revenue principally consists of brokerage transaction charges received by SCB LLC, SCBL and AB’s other sell side subsidiaries for providing equity research services to institutional clients. Brokerage commissions for trade execution services and related expenses are recorded on a trade-date basis when the performance obligations are satisfied. Generally, the transaction price is agreed upon at the point of each trade and based upon the number of shares traded or the value of the consideration traded. Research revenues are recognized when the transaction price is quantified, collectability is assured and significant reversal of such revenue is not probable.

Distribution services

Revenues from distribution services include fees received as partial reimbursement of expenses incurred in connection with the sale of certain AB sponsored mutual funds and the 1290 Funds and for the distribution primarily of EQAT and EQ Premier VIP Trust shares to separate accounts in connection with the sale of variable life and annuity contracts. The amount and timing of revenues recognized from performance of these distribution services often is

153

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

dependent upon the contractual arrangements with the customer and the specific product sold as further described below.

Most open-end management investment companies, such as U.S. funds and the EQAT and EQ Premier VIP Trusts and the 1290 Funds, have adopted a plan under Rule 12b-1 of the Investment Company Act that allows for certain share classes to pay out of assets, distribution and service fees for the distribution and sale of its shares (“12b-1 Fees”). These open-end management investment companies have such agreements with the Company, and the Company has selling and distribution agreements pursuant to which it pays sales commissions to the financial intermediaries that distribute the shares. These agreements may be terminated by either party upon notice (generally 30 days) and do not obligate the financial intermediary to sell any specific amount of shares.

The Company records 12b-1 fees monthly based upon a percentage of the NAV of the funds. At month-end, the variable consideration of the transaction price is no longer constrained as the NAV can be calculated and the value of consideration is determined. These services are separate and distinct from other asset management services as the customer can benefit from these services independently of other services. The Company accrues the corresponding 12b-1 fees paid to sub-distributors monthly as the expenses are incurred. The Company is acting in a principal capacity in these transactions; as such, these revenues and expenses are recorded on a gross basis in the consolidated statements of income (loss).

AB sponsored mutual funds offer back-end load shares in limited instances and charge the investor a CDSC if the investment is redeemed within a certain period. The variable consideration for these contracts is contingent upon the timing of the redemption by the investor and the value of the sales proceeds. Due to these constraining factors, the Company excludes the CDSC fee from the transaction price until the investor redeems the investment. Upon redemption, the cash consideration received for these contractual arrangements is recorded as a reduction of unamortized deferred sales commissions.

AB’s Luxembourg subsidiary, the management company for most of its non-U.S. funds, earns a management fee which is accrued daily and paid monthly, at an annual rate, based on the average daily net assets of the fund. With respect to certain share classes, the management fee also may contain a component paid to distributors and other financial intermediaries and service providers to cover shareholder servicing and other administrative expenses (also referred to as an “All-in-Fee”). Based on the conclusion that asset management is distinct from distribution, the Company allocates a portion of the investment and advisory fee to distribution revenues for the servicing component based on standalone selling prices.

Other revenues

Also reported as investment management and service fees in the Company’s consolidated statements of income (loss) are other revenues from contracts with customers, primarily consisting of shareholder servicing fees, mutual fund reimbursements and other brokerage income.

Shareholder services, including transfer agency, administration and record-keeping are provided by AB to company-sponsored mutual funds. The consideration for these services is based on a percentage of the NAV of the fund or a fixed-fee based on the number of shareholder accounts being serviced. The revenues are recorded at month-end when the constraining factors involved with determining NAV or the numbers of shareholders’ accounts are resolved.

Other income

Revenues from contracts with customers reported as other income in the Company’s consolidated statements of income (loss) primarily consist of advisory account fees and brokerage commissions from the Company’s broker-dealer operations and sales commissions from the Company’s general agents for the distribution of non-affiliate insurers’ life insurance and annuity products. These revenues are recognized at month-end when constraining factors, such as AUM and product mix, are resolved and the transaction pricing no longer is variable such that the value of consideration can be determined.

Accounting and Consolidation of VIEs

For all new investment products and entities developed by the Company, the Company first determines whether the entity is a VIE, which involves determining an entity’s variability and variable interests, identifying the holders of the equity investment at risk and assessing the five characteristics of a VIE. Once an entity has been determined to be a VIE, the Company then determines whether it is the primary beneficiary of the VIE based on its beneficial interests. If the Company is deemed to be the primary beneficiary of the VIE, then the Company consolidates the entity.

154

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Management of the Company reviews quarterly its investment management agreements and its investments in, and other financial arrangements with, certain entities that hold client AUM to determine the entities that the Company is required to consolidate under this guidance. These entities include certain mutual fund products, hedge funds, structured products, group trusts, collective investment trusts and limited partnerships.

The analysis performed to identify variable interests held, determine whether entities are VIEs or VOEs, and evaluate whether the Company has a controlling financial interest in such entities requires the exercise of judgment and is updated on a continuous basis as circumstances change or new entities are developed. The primary beneficiary evaluation generally is performed qualitatively based on all facts and circumstances, including consideration of economic interests in the VIE held directly and indirectly through related parties and entities under common control, as well as quantitatively, as appropriate.

Consolidated VIEs

Consolidated CLOs

The Company is the investment manager of certain asset-backed investment vehicles, commonly referred to as CLOs, and certain other vehicles for which the Company earns fee income for investment management services. The Company may sell or syndicate investments through these vehicles, principally as part of the strategic investing activity as part of its investment management businesses. Additionally, the Company may invest in securities issued by these vehicles which are eliminated in consolidation of the CLOs.

As of December 31, 2021 and December 31, 2020, respectively, Equitable Financial holds $109 million and $38 million of equity interests in the CLOs. The Company consolidated the CLOs as of December 31, 2021 and December 31, 2020 as it is the primary beneficiary due to the combination of both its equity interest held by Equitable Financial and the majority ownership of AB, which functions as the CLOs loan manager. The assets of the CLOs are legally isolated from the Company’s creditors and can only be used to settle obligations of the CLOs. The liabilities of the CLOs are non-recourse to the Company and the Company has no obligation to satisfy the liabilities of the CLOs. As of December 31, 2021, Equitable Financial holds $58 million of equity interests in a newly formed SPE established to purchase loans from the market in anticipation of a new CLO transaction. The Company consolidated the SPE as of December 31, 2021 as it is the primary beneficiary due to the combination of both its equity interest held by Equitable Financial and the majority ownership of AB, which functions as the SPE loan manager.

Resulting from this consolidation in the Company’s consolidated balance sheets are fixed maturities, at fair value using the fair value option with total assets of $1,641 million and $389 million notes issued by consolidated variable interest entities, at fair value using the fair value option with total liabilities of $1,191 million and $313 million at December 31, 2021 and December 31, 2020, respectively. The unpaid outstanding principal balance of the notes and short-term borrowing is $1.3 billion and $362 million at December 31, 2021 and December 31, 2020.

Consolidated Limited Partnerships and LLCs

As of December 31, 2021 and December 31, 2020 the Company consolidated limited partnerships and LLCs for which it was identified as the primary beneficiary under the VIE model. Included in Other invested assets, Mortgage loans on real estate and Other equity investments in the Company’s consolidated balance sheets at December 31, 2021 and December 31, 2020 are total assets of $219 million and $12 million, respectively related to these VIEs.

Consolidated AB-Sponsored Investment Funds

Included in the Company’s consolidated balance sheet as of December 31, 2021 and December 31, 2020 are assets of $734 million and $284 million, liabilities of $87 million and $8 million, and redeemable noncontrolling interests of $421 million and $83 million, respectively, associated with the consolidation of AB-sponsored investment funds under the VIE model. Also included in the Company’s consolidated balance sheets as of December 31, 2021 and December 31, 2020 are assets of $0 million and $68 million, liabilities of $0 million and $23 million, and redeemable noncontrolling interests of $0 million and $20 million, respectively, from consolidation of AB-sponsored investment funds under the VOE model. The assets of these consolidated funds are presented within other invested assets and cash and cash equivalents, and liabilities of these consolidated funds are presented with other liabilities in the Company’s consolidated balance sheets; ownership interests not held by the Company relating to consolidated VIEs and VOEs are presented either as redeemable or non-redeemable noncontrolling interests, as appropriate. Redeemable noncontrolling interests are presented in mezzanine equity and non-redeemable noncontrolling interests are presented within

155

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

permanent equity. The Company is not required to provide financial support to these AB-sponsored investment funds, and only the assets of such funds are available to settle each fund’s own liabilities.

Non-Consolidated VIEs

As of December 31, 2021 and December 31, 2020 respectively, the Company held approximately $2.1 billion and $1.4 billion of investment assets in the form of equity interests issued by non-corporate legal entities determined under the guidance to be VIEs, such as limited partnerships and limited liability companies, including CLOs, hedge funds, private equity funds and real estate-related funds. As an equity investor, the Company is considered to have a variable interest in each of these VIEs as a result of its participation in the risks and/or rewards these funds were designed to create by their defined portfolio objectives and strategies. Primarily through qualitative assessment, including consideration of related party interests or other financial arrangements, if any, the Company was not identified as primary beneficiary of any of these VIEs, largely due to its inability to direct the activities that most significantly impact their economic performance. Consequently, the Company continues to reflect these equity interests in the consolidated balance sheets as other equity investments and applies the equity method of accounting for these positions. The net assets of these non-consolidated VIEs are approximately $245.6 billion and $165.9 billion as of December 31, 2021 and December 31, 2020 respectively. The Company’s maximum exposure to loss from its direct involvement with these VIEs is the carrying value of its investment of $2.1 billion and $1.4 billion and approximately $1.2 billion and $1.2 billion of unfunded commitments as of December 31, 2021 and December 31, 2020, respectively. The Company has no further economic interest in these VIEs in the form of guarantees, derivatives, credit enhancements or similar instruments and obligations.

Non-Consolidated AB-Sponsored Investment Products

As of December 31, 2021 and December 31, 2020, the net assets of investment products sponsored by AB that are non-consolidated VIEs are approximately $68.9 billion and $73.4 billion, respectively. The Company’s maximum exposure to loss from its direct involvement with these VIEs is its investment of $9 million and $7 million as of December 31, 2021 and December 31, 2020. The Company has no further commitments to or economic interest in these VIEs.

Assumption Updates and Model Changes

The Company conducts its annual review of its assumptions and models during the third quarter of each year. The annual review encompasses assumptions underlying the valuation of unearned revenue liabilities, embedded derivatives for our insurance business, liabilities for future policyholder benefits, DAC and DSI assets.

However, the Company updates its assumptions as needed in the event it becomes aware of economic conditions or events that could require a change in assumptions that it believes may have a significant impact to the carrying value of product liabilities and assets and consequently materially impact its earnings in the period of the change.

Due to the extraordinary economic conditions driven by the COVID-19 pandemic in the first quarter of 2020, the Company updated its interest rate assumption to grade from the current interest rate environment to an ultimate five-year historical average over a 10-year period. As such, the 10-year U.S. Treasury yield grades from the current level to an ultimate 5-year average of 2.25%.

The low interest rate environment and update to the interest rate assumption caused a loss recognition event for the Company’s life interest-sensitive products, as well as to certain run-off business. This loss recognition event caused an acceleration of DAC amortization on the life interest-sensitive products and an increase in the premium deficiency reserve on the run-off business in the first quarter of 2020.

Impact of Assumption Updates

The net impact of assumption changes during 2021 decreased policy charges and fee income by $28 million, decreased policyholders’ benefits by $62 million, increased net derivative losses by $200 million and decreased amortization of DAC by $58 million. This resulted in a decrease in income (loss) from operations, before income taxes of $108 million and decreased net income (loss) by $85 million. As part of this annual update completed as of September 30, 2021, the reference interest rate utilized in our GAAP fair value calculations was updated from the LIBOR swap curve to the US Treasury curve, which represents a reasonable proxy of the cost of funding the derivative positions backing our GMxB liabilities. Concurrently, our GAAP fair value liability risk margins were increased. which when considered with the change from LIBOR, resulted in an immaterial impact to overall valuation as our view regarding market participant pricing of our guarantees has not changed at the time of this update.

156

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

The net impact of assumption changes during 2020 was an increase in policy charges and fee income of $23 million, an increased policyholders’ benefits by $1.6 billion, decreased interest credited to policyholders’ account balances by $1 million, increased net derivative gains by $112 million and increased amortization of DAC by $1.1 billion. This resulted in a decrease in income (loss) from operations, before income taxes of $2.6 billion and decreased net income (loss) by $2.0 billion.

The 2020 impacts related to assumption updates were primarily driven by the first quarter updates. The updates in the first quarter resulted in an increase in policy charges and fee income of $46 million, an increase in policyholders’ benefits of $1.4 billion, a decrease in interest credited to policyholders’ account balances of $6 million, and an increase of $1.1 billion in DAC amortization.

The net impact of assumption changes during 2019 was an increase in policy charges and fee income by $3 million, increased policyholders’ benefits by $875 million, decreased interest credited to policyholders’ account balances by $13 million, decreased net derivative gains (losses) by $578 million and decreased amortization of DAC by $46 million. This resulted in a decrease in income (loss) from operations, before income taxes of $1.4 billion and decreased net income (loss) by $1.1 billion.

Model Changes

There were no material model changes in 2021 and 2019.

In the first quarter of 2020, the Company adopted a new economic scenario generator to calculate the fair value of the GMIB reinsurance contract asset and GMxB derivative features liability, eliminating reliance on AXA for scenario production. The new economic scenario generator allows for a tighter calibration of U.S. indices, better reflecting the Company’s actual portfolio. The net impact of the new economic scenario generator resulted in an increase in income (loss) from continuing operations, before income taxes of $201 million, and an increase to net income (loss) of $159 million during 2020.

3)    INVESTMENTS

Fixed Maturities AFS

The components of fair value and amortized cost for fixed maturities classified as AFS on the consolidated balance sheets excludes accrued interest receivable because the Company elected to present accrued interest receivable within other assets. Accrued interest receivable on AFS fixed maturities as of December 31, 2021 and 2020 was $506 million and $538 million, respectively. There was no accrued interest written off for AFS fixed maturities for the years ended December 31, 2021 and 2020.

The following tables provide information relating to the Company’s fixed maturities classified as AFS.

AFS Fixed Maturities by Classification

	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in millions)
December 31, 2021
Fixed Maturities:
Corporate (1)	$	50,172	$	22	$	2,601	$	240	$	52,511
U.S. Treasury, government and agency	13,056		—		2,344		15		15,385
States and political subdivisions	586		—		78		2		662
Foreign governments	1,124		—		42		14		1,152
Residential mortgage-backed (2)	90		—		8		—		98
Asset-backed (3)	5,933		—		21		20		5,934
Commercial mortgage-backed	2,427		—		19		25		2,421
Redeemable preferred stock (5)	41		—		12		—		53
Total at December 31, 2021	$	73,429	$	22	$	5,125	$	316	$	78,216

157

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in millions)
December 31, 2020: (4)
Fixed Maturities:
Corporate (1)	$	53,160	$	13	$	5,104	$	92	$	58,159
U.S. Treasury, government and agency	12,675		—		3,448		5		16,118
States and political subdivisions	535		—		100		—		635
Foreign governments	1,011		—		98		6		1,103
Residential mortgage-backed (2)	130		—		13		—		143
Asset-backed (3)	3,587		—		29		5		3,611
Commercial mortgage-backed	1,148		—		55		—		1,203
Redeemable preferred stock	621		—		48		3		666
Total at December 31, 2020	$	72,867	$	13	$	8,895	$	111	$	81,638

______________

(1)Corporate fixed maturities include both public and private issues.

(2)Includes publicly traded agency pass-through securities and collateralized obligations.

(3)Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types.

(4)Excludes amounts reclassified as HFS.

(5)Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 of the Notes to these Consolidated Financial Statements- Investments).

The contractual maturities of AFS fixed maturities as of December 31, 2021 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Contractual Maturities of AFS Fixed Maturities

	Amortized Cost (Less Allowance for Credit Losses)		Fair Value
	(in millions)
December 31, 2021
Contractual maturities:
Due in one year or less	$	1,117	$	1,120
Due in years two through five	15,452		16,002
Due in years six through ten	18,189		19,104
Due after ten years	30,158		33,484
Subtotal	64,916		69,710
Residential mortgage-backed	90		98
Asset-backed	5,933		5,934
Commercial mortgage-backed	2,427		2,421
Redeemable preferred stock	41		53
Total at December 31, 2021	$	73,407	$	78,216

The following table shows proceeds from sales, gross gains (losses) from sales and credit losses for AFS fixed maturities for the years ended December 31, 2021, 2020 and 2019:

158

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Proceeds from Sales, Gross Gains (Losses) from Sales and Credit Losses for AFS Fixed Maturities

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Proceeds from sales	$	27,363	$	12,903	$	8,972
Gross gains on sales	$	1,152	$	862	$	234
Gross losses on sales	$	(195)	$	(41)	$	(32)
Credit losses	$	(16)	$	(13)	$	—

The following table sets forth the amount of credit loss impairments on AFS fixed maturities held by the Company at the dates indicated and the corresponding changes in such amounts.

AFS Fixed Maturities - Credit Loss Impairments

	Year Ended December 31,
	2021		2020		2019
Balance, beginning of period	$	32	$	21	$	58
Previously recognized impairments on securities that matured, paid, prepaid or sold	(4)		(2)		(37)
Recognized impairments on securities impaired to fair value this period (1)	—		—		—
Credit losses recognized this period on securities for which credit losses were not previously recognized	9		6		—
Additional credit losses this period on securities previously impaired	7		7		—
Increases due to passage of time on previously recorded credit losses	—		—		—
Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior)	—		—		—
Balance at December 31,	$	44	$	32	$	21

______________

(1)Represents circumstances where the Company determined in the current period that it intends to sell the security, or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost.

The tables that follow below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI.

Net Unrealized Gains (Losses) on AFS Fixed Maturities

	Net Unrealized Gains (Losses) on Investments		DAC		Policyholders’ Liabilities		Deferred Income Tax Asset (Liability)		AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
	(in millions)
Balance, January 1, 2021	$	8,811	$	(1,548)	$	(1,065)	$	(1,302)	$	4,896
Net investment gains (losses) arising during the period	(3,122)		—		—		—		(3,122)
Reclassification adjustment:
Included in net income (loss)	(846)		—		—		—		(846)
Excluded from net income (loss)	—		—		—		—		—
Other (1)	(33)		—		—		—		(33)
Impact of net unrealized investment gains (losses)	—		767		648		544		1,959

159

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Net unrealized investment gains (losses) excluding credit losses	4,810		(781)		(417)		(758)		2,854
Net unrealized investment gains (losses) with credit losses	(1)		(1)		(1)		1		(2)
Balance, December 31, 2021	$	4,809	$	(782)	$	(418)	$	(757)	$	2,852
Balance, January 1, 2020	$	3,453	$	(894)	$	(189)	$	(497)	$	1,873
Net investment gains (losses) arising during the period	6,192		—		—		—		6,192
Reclassification adjustment:
Included in net income (loss)	(828)		—		—		—		(828)
Excluded from net income (loss)	—		—		—		—		—
Impact of net unrealized investment gains (losses)			(655)		(877)		(806)		(2,338)
Net unrealized investment gains (losses) excluding credit losses	8,817		(1,549)		(1,066)		(1,303)		4,899
Net unrealized investment gains (losses) with credit losses	(6)		1		1		1		(3)
Balance, December 31, 2020	$	8,811	$	(1,548)	$	(1,065)	$	(1,302)	$	4,896
Balance, January 1, 2019	$	(522)	$	100	$	(88)	$	104	$	(406)
Net investment gains (losses) arising during the period	4,188		—		—		—		4,188
Reclassification adjustment:	—		—		—		—		—
Included in net income (loss)	(213)		—		—		—		(213)
Excluded from net income (loss)	—		—		—		—		—
Impact of net unrealized investment gains (losses)	—		(994)		(101)		(601)		(1,696)
Net unrealized investment gains (losses) excluding credit losses	3,453		(894)		(189)		(497)		1,873
Net unrealized investment gains (losses) with credit losses	—		—		—		—		—
Balance, December 31, 2019	$	3,453	$	(894)	$	(189)	$	(497)	$	1,873

______________

(1)Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 of the Notes to these Consolidated Financial Statements- Investments).

The following tables disclose the fair values and gross unrealized losses of the 2,060 issues as of December 31, 2021 and the 565 issues as of December 31, 2020 that are not deemed to have credit losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated.

AFS Fixed Maturities in an Unrealized Loss Position for Which No Allowance Is Recorded

	Less Than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(in millions)
December 31, 2021
Fixed Maturities:
Corporate	$	10,571	$	163	$	1,633	$	75	$	12,204	$	238
U.S. Treasury, government and agency	993		11		105		4		1,098		15
States and political subdivisions	120		2		11		—		131		2
Foreign governments	349		6		92		8		441		14

160

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

	Less Than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(in millions)
Asset-backed	3,865		20		38		—		3,903		20
Commercial mortgage-backed	1,527		21		96		4		1,623		25
Total at December 31, 2021	$	17,425	$	223	$	1,975	$	91	$	19,400	$	314
December 31, 2020: (1)
Fixed Maturities:
Corporate	$	2,990	$	53	$	337	$	33	$	3,327	$	86
U.S. Treasury, government and agency	885		5		—		—		885		5
Foreign governments	153		2		21		4		174		6
Asset-backed	809		4		76		1		885		5
Redeemable preferred stock	53		1		11		2		64		3
Total at December 31, 2020	$	4,890	$	65	$	445	$	40	$	5,335	$	105

______________

(1)Excludes amounts reclassified as HFS.

The Company’s investments in fixed maturities do not include concentrations of credit risk of any single issuer greater than 10% of the consolidated equity of the Company, other than securities of the U.S. government, U.S. government agencies, and certain securities guaranteed by the U.S. government. The Company maintains a diversified portfolio of corporate securities across industries and issuers and does not have exposure to any single issuer in excess of 0.6% of total corporate securities. The largest exposures to a single issuer of corporate securities held as of December 31, 2021 and December 31, 2020 were $322 million and $391 million, respectively, representing 2.5% and 2.3% of the consolidated equity of the Company.

Corporate high yield securities, consisting primarily of public high yield bonds, are classified as other than investment grade by the various rating agencies, i.e., a rating below Baa3/BBB- or the NAIC designation of 3 (medium investment grade), 4 or 5 (below investment grade) or 6 (in or near default). As of December 31, 2021 and December 31, 2020, respectively, approximately $2.9 billion and $2.5 billion, or 3.9% and 3.4%, of the $73.4 billion and $72.9 billion aggregate amortized cost of fixed maturities held by the Company were considered to be other than investment grade. These securities had gross unrealized losses of $18 million and $49 million as of December 31, 2021 and December 31, 2020, respectively.

As of December 31, 2021 and December 31, 2020, respectively, the $91 million and $40 million of gross unrealized losses of twelve months or more were primarily concentrated in corporate securities. In accordance with the policy described in Note 2 to the Notes to these Consolidated Financial Statements, the Company concluded that an adjustment to allowance for credit losses for these securities was not warranted at either December 31, 2021 or December 31, 2020. As of December 31, 2021 and December 31, 2020, the Company did not intend to sell the securities nor will it likely be required to dispose of the securities before the anticipated recovery of their remaining amortized cost basis.

Based on the Company’s evaluation both qualitatively and quantitatively of the drivers of the decline in fair value of fixed maturity securities as of December 31, 2021, the Company determined that the unrealized loss was primarily due to increases in credit spreads and changes in credit ratings.

Mortgage Loans on Real Estate

Accrued interest receivable on commercial and agricultural mortgage loans as of December 31, 2021 and 2020 was $57 million and $58 million, respectively. There was no accrued interest written off for commercial and agricultural mortgage loans for the years ended December 31, 2021 and 2020.

As of December 31, 2021, the Company had no loans for which foreclosure was probable included within the individually assessed mortgage loans, and accordingly had no associated allowance for credit losses.

Allowance for Credit Losses on Mortgage Loans

161

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

The change in the allowance for credit losses for commercial mortgage loans and agricultural mortgage loans during the years ended December 31, 2021 and 2020 were as follows:

		Year Ended December 31,
		2021		2020
	(in millions)
Allowance for credit losses on mortgage loans:
Commercial mortgages:
Balance, beginning of period		$	77	$	33
Current-period provision for expected credit losses		(20)		44
Write-offs charged against the allowance		—		—
Recoveries of amounts previously written off		—		—
Net change in allowance		(20)		44
Balance, end of period		$	57	$	77
Agricultural mortgages:
Balance, beginning of period		$	4	$	3
Current-period provision for expected credit losses		1		1
Write-offs charged against the allowance		—		—
Recoveries of amounts previously written off		—		—
Net change in allowance		1		1
Balance, end of period		$	5	$	4
Total allowance for credit losses		$	62	$	81

The change in the allowance for credit losses is attributable to:

•increases/decreases in the loan balance due to new originations, maturing mortgages, and loan amortization;

•changes in credit quality; and

•changes in market assumptions primarily related to COVID-19 driven economic changes.

Credit Quality Information

The following tables summarize the Company’s mortgage loans segregated by risk rating exposure as of December 31, 2021 and December 31, 2020.

LTV Ratios (1)

	December 31, 2021
	Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Total
	(in millions)
Mortgage loans:
Commercial:
0% - 50%	$	—	$	—	$	—	$	184	$	293	$	1,009	$	1,486
50% - 70%	1,967		1,334		407		619		491		2,533		7,351
70% - 90%	190		236		412		415		276		972		2,501
90% plus	—		—		—		35		5		73		113
Total commercial	$	2,157	$	1,570	$	819	$	1,253	$	1,065	$	4,587	$	11,451
Agricultural:

162

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

	December 31, 2021
	Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Total
	(in millions)
0% - 50%	$	180	$	212	$	128	$	129	$	119	$	738	$	1,506
50% - 70%	200		268		102		126		87		338		1,121
70% - 90%	—		—		—		—		—		17		17
90% plus	—		—		—		—		—		—		—
Total agricultural	$	380	$	480	$	230	$	255	$	206	$	1,093	$	2,644
Total mortgage loans:
0% - 50%	$	180	$	212	$	128	$	313	$	412	$	1,747	$	2,992
50% - 70%	2,167		1,602		509		745		578		2,871		8,472
70% - 90%	190		236		412		415		276		989		2,518
90% plus	—		—		—		35		5		73		113
Total mortgage loans	$	2,537	$	2,050	$	1,049	$	1,508	$	1,271	$	5,680	$	14,095

Debt Service Coverage Ratios (2)

	December 31, 2021
	Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Total
	(in millions)
Mortgage loans:
Commercial:
Greater than 2.0x	$	1,143	$	1,243	$	210	$	772	$	485	$	2,235	$	6,088
1.8x to 2.0x	185		135		250		46		161		372		1,149
1.5x to 1.8x	275		97		284		211		166		919		1,952
1.2x to 1.5x	264		95		75		101		253		701		1,489
1.0x to 1.2x	290		—		—		88		—		287		665
Less than 1.0x	—		—		—		35		—		73		108
Total commercial	$	2,157	$	1,570	$	819	$	1,253	$	1,065	$	4,587	$	11,451
Agricultural:
Greater than 2.0x	$	49	$	64	$	25	$	22	$	24	$	210	$	394
1.8x to 2.0x	52		37		25		14		14		70		212
1.5x to 1.8x	43		113		28		22		41		193		440
1.2x to 1.5x	161		179		112		116		72		355		995
1.0x to 1.2x	75		83		31		77		54		226		546
Less than 1.0x	—		4		9		4		1		39		57
Total agricultural	$	380	$	480	$	230	$	255	$	206	$	1,093	$	2,644
Total mortgage loans:
Greater than 2.0x	$	1,192	$	1,307	$	235	$	794	$	509	$	2,445	$	6,482
1.8x to 2.0x	237		172		275		60		175		442		1,361
1.5x to 1.8x	318		210		312		233		207		1,112		2,392
1.2x to 1.5x	425		274		187		217		325		1,056		2,484
1.0x to 1.2x	365		83		31		165		54		513		1,211
Less than 1.0x	—		4		9		39		1		112		165
Total mortgage loans	$	2,537	$	2,050	$	1,049	$	1,508	$	1,271	$	5,680	$	14,095

______________

163

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

(1)The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan.

(2)The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service.

LTV Ratios (1)

	December 31, 2020
	Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Total
	(in millions)
Mortgage loans:
Commercial:
0% - 50%	$	—	$	—	$	—	$	324	$	187	$	505	$	1,016
50% - 70%	1,294		357		803		656		2,190		1,697		6,997
70% - 90%	321		457		452		219		203		538		2,190
90% plus	—		—		12		5		—		288		305
Total commercial	$	1,615	$	814	$	1,267	$	1,204	$	2,580	$	3,028	$	10,508
Agricultural:
0% - 50%	$	218	$	135	$	169	$	157	$	236	$	652	$	1,567
50% - 70%	277		129		161		102		124		351		1,144
70% - 90%	—		—		3		—		—		18		21
90% plus	—		—		—		—		—		—		—
Total agricultural	$	495	$	264	$	333	$	259	$	360	$	1,021	$	2,732
Total mortgage loans:
0% - 50%	$	218	$	135	$	169	$	481	$	423	$	1,157	$	2,583
50% - 70%	1,571		486		964		758		2,314		2,048		8,141
70% - 90%	321		457		455		219		203		556		2,211
90% plus	—		—		12		5		—		288		305
Total mortgage loans	$	2,110	$	1,078	$	1,600	$	1,463	$	2,940	$	4,049	$	13,240

Debt Service Coverage Ratios (2)

	December 31, 2020
	Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Total
	(in millions)
Mortgage loans:
Commercial:
Greater than 2.0x	$	1,230	$	492	$	772	$	268	$	1,959	$	1,230	$	5,951
1.8x to 2.0x	227		83		118		378		184		329		1,319
1.5x to 1.8x	98		138		187		479		437		616		1,955
1.2x to 1.5x	60		57		154		79		—		658		1,008
1.0x to 1.2x	—		44		—		—		—		123		167
Less than 1.0x	—		—		36		—		—		72		108
Total commercial	$	1,615	$	814	$	1,267	$	1,204	$	2,580	$	3,028	$	10,508

164

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Agricultural:
Greater than 2.0x	$	67	$	26	$	36	$	38	$	71	$	167	$	405
1.8x to 2.0x	38		35		14		15		20		82		204
1.5x to 1.8x	117		38		41		45		52		209		502
1.2x to 1.5x	183		120		141		90		142		313		989
1.0x to 1.2x	86		35		93		70		57		233		574
Less than 1.0x	4		10		8		1		18		17		58
Total agricultural	$	495	$	264	$	333	$	259	$	360	$	1,021	$	2,732
Total mortgage loans:
Greater than 2.0x	$	1,297	$	518	$	808	$	306	$	2,030	$	1,397	$	6,356
1.8x to 2.0x	265		118		132		393		204		411		1,523
1.5x to 1.8x	215		176		228		524		489		825		2,457
1.2x to 1.5x	243		177		295		169		142		971		1,997
1.0x to 1.2x	86		79		93		70		57		356		741
Less than 1.0x	4		10		44		1		18		89		166
Total mortgage loans	$	2,110	$	1,078	$	1,600	$	1,463	$	2,940	$	4,049	$	13,240

______________

(1)The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan.

(2)The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service.

Past-Due and Nonaccrual Mortgage Loan Status

The following table provides information relating to the aging analysis of past-due mortgage loans as of December 31, 2021 and 2020, respectively.

Age Analysis of Past Due Mortgage Loans (1)

	Accruing Loans												Non-accruing Loans		Total Loans		Non-accruing Loans with No Allowance		Interest Income on Non-accruing Loans
	Past Due								Current		Total
	30-59 Days		60-89 Days		90 Days or More		Total
	(in millions)
December 31, 2021:
Mortgage loans:
Commercial	$	—	$	—	$	—	$	—	$	11,451	$	11,451	$	—	$	11,451	$	—	$	—
Agricultural	1		1		25		27		2,601		2,628		16		2,644		—		—
Total	$	1	$	1	$	25	$	27	$	14,052	$	14,079	$	16	$	14,095	$	—	$	—
December 31, 2020:
Mortgage loans:
Commercial	$	162	$	—	$	—	$	162	$	10,346	$	10,508	$	—	$	10,508	$	—	$	—
Agricultural	76		7		29		112		2,620		2,732		—		2,732		—		—
Total	$	238	$	7	$	29	$	274	$	12,966	$	13,240	$	—	$	13,240	$	—	$	—

_______________

(1)Amounts presented at amortized cost basis.

As of December 31, 2021 and December 31, 2020, the carrying values of problem mortgage loans that had been classified as non-accrual loans were $14 million and $0 million, respectively.

Troubled Debt Restructuring

165

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

During the years ended December 31, 2021 and 2020, the Company identified an immaterial amount of TDRs.

Equity Securities

The table below presents a breakdown of unrealized and realized gains and (losses) on equity securities during the year ended December 31, 2021.

Unrealized and Realized Gains (Losses) from Equity Securities (1)

	Year Ended December 31,
	2021
	(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period	$	(19)
Net investment gains (losses) recognized on equity securities sold during the period	45
Unrealized and realized gains (losses) on equity securities	$	26

______________

(1)Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 of the Notes to these Consolidated Financial Statements- Investments).

Trading Securities

As of December 31, 2021 and December 31, 2020, respectively, the fair value of the Company’s trading securities was $631 million and $5.6 billion. As of December 31, 2021 and December 31, 2020, respectively, trading securities included the General Account’s investment in Separate Accounts which had carrying values of $45 million and $44 million.

The table below shows a breakdown of net investment income (loss) from trading securities during the years ended December 31, 2021, 2020 and 2019.

Net Investment Income (Loss) from Trading Securities

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period	$	(274)	$	128	$	487
Net investment gains (losses) recognized on securities sold during the period	248		42		15
Unrealized and realized gains (losses) on trading securities	(26)		170		502
Interest and dividend income from trading securities	99		217		294
Net investment income (loss) from trading securities	$	73	$	387	$	796

Fixed maturities, at fair value using the fair value option

The table below shows a breakdown of net investment income (loss) from fixed maturities, at fair value using the fair value option during the year ended December 31, 2021.

166

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Net Investment Income (Loss) from Fixed Maturities, at Fair Value using the Fair Value Option

	Year Ended December 31,
	2021
	(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period	$	12
Net investment gains (losses) recognized on securities sold during the period	4
Unrealized and realized gains (losses) from fixed maturities	16
Interest and dividend income from fixed maturities	19
Net investment income (loss) from fixed maturities	$	35

Net Investment Income (Loss)

The following table breaks out net investment income (loss) by asset category:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Fixed maturities	$	2,440	$	2,341	$	2,060
Mortgage loans on real estate	546		516		541
Other equity investments	609		67		140
Policy loans	203		204		211
Trading securities	73		387		796
Other investment income	17		33		24
Fixed maturities, at fair value using the fair value option	35		1		—
Gross investment income (loss)	3,923		3,549		3,772
Investment expenses	(77)		(72)		(73)
Net investment income (loss)	$	3,846	$	3,477	$	3,699

Investment Gains (Losses), Net

Investment gains (losses), net, including changes in the valuation allowances and credit losses are as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Fixed maturities	$	847	$	828	$	205
Mortgage loans on real estate	19		(45)		(1)
Other equity investments (1)	—		30		2
Other	2		(69)		(133)
Investment gains (losses), net	$	868	$	744	$	73

(1) Investment gains (losses), net of Other equity investments includes Real Estate Held for production during the years ended

December 31, 2020 and December 31, 2019.

For the years ended December 31, 2021, 2020, and 2019, respectively, investment results passed through to certain participating group annuity contracts as interest credited to policyholders’ account balances totaled $2 million, $2 million and $2 million.

167

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

4)     DERIVATIVES

The Company uses derivatives as part of its overall asset/liability risk management primarily to reduce exposures to equity market and interest rate risks. Derivative hedging strategies are designed to reduce these risks from an economic perspective and are all executed within the framework of a “Derivative Use Plan” approved by applicable states’ insurance law. Derivatives are generally not accounted for using hedge accounting, with the exception of TIPS and cash flow hedges, which is discussed further below. Operation of these hedging programs is based on models involving numerous estimates and assumptions, including, among others, mortality, lapse, surrender and withdrawal rates, election rates, fund performance, market volatility and interest rates. A wide range of derivative contracts are used in these hedging programs, including exchange traded equity, currency and interest rate futures contracts, total return and/or other equity swaps, interest rate swap and floor contracts, bond and bond-index total return swaps, swaptions, variance swaps and equity options, credit and foreign exchange derivatives, as well as bond and repo transactions to support the hedging. The derivative contracts are collectively managed in an effort to reduce the economic impact of unfavorable changes in guaranteed benefits’ exposures attributable to movements in capital markets. In addition, as part of its hedging strategy, the Company targets an asset level for all variable annuity products at or above a CTE98 level under most economic scenarios (CTE is a statistical measure of tail risk which quantifies the total asset requirement to sustain a loss if an event outside a given probability level has occurred. CTE98 denotes the financial resources a company would need to cover the average of the worst 2% of scenarios.)

Derivatives Utilized to Hedge Exposure to Variable Annuities with Guarantee Features

The Company has issued and continues to offer variable annuity products with GMxB features. The risk associated with the GMDB feature is that under-performance of the financial markets could result in GMDB benefits, in the event of death, being higher than what accumulated policyholders’ account balances would support. The risk associated with the GMIB feature is that under-performance of the financial markets could result in the present value of GMIB, in the event of annuitization, being higher than what accumulated policyholders’ account balances would support, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. The risk associated with products that have a GMxB derivative features liability is that under-performance of the financial markets could result in the GMxB derivative features’ benefits being higher than what accumulated policyholders’ account balances would support.

For GMxB features, the Company retains certain risks including basis, credit spread and some volatility risk and risk associated with actual experience versus expected actuarial assumptions for mortality, lapse and surrender, withdrawal and policyholder election rates, among other things. The derivative contracts are managed to correlate with changes in the value of the GMxB features that result from financial markets movements. A portion of exposure to realized equity volatility is hedged using equity options and variance swaps and a portion of exposure to credit risk is hedged using total return swaps on fixed income indices. Additionally, the Company is party to total return swaps for which the reference U.S. Treasury securities are contemporaneously purchased from the market and sold to the swap counterparty. As these transactions result in a transfer of control of the U.S. Treasury securities to the swap counterparty, the Company derecognizes these securities with consequent gain or loss from the sale. The Company has also purchased reinsurance contracts to mitigate the risks associated with GMDB features and the impact of potential market fluctuations on future policyholder elections of GMIB features contained in certain annuity contracts issued by the Company. The reinsurance of the GMIB features is accounted for as a derivative. In addition, on June 1, 2021, we ceded legacy variable annuity policies sold by Equitable Financial between 2006-2008 (the “Block”), comprised of non-New York “Accumulator” policies containing fixed rate GMIB and/or GMDB guarantees. As this contract provides full risk transfer and thus has the same risk attributes as the underlying direct contracts, the benefits of this treaty are accounted for in the same manner as the underlying gross reserves and therefore the Amounts Due from Reinsurers related to the GMIB with NLG are accounted for as an embedded derivative.

The Company has in place an economic hedge program using interest rate swaps and U.S. Treasury futures to partially protect the overall profitability of future variable annuity sales against declining interest rates.

Derivatives Utilized to Hedge Crediting Rate Exposure on SCS, SIO, MSO and IUL Products/Investment Options

The Company hedges crediting rates in the SCS variable annuity, SIO in the EQUI-VEST variable annuity series, MSO in the variable life insurance products and IUL insurance products. These products permit the contract owner to participate in the performance of an index, ETF or commodity price movement up to a cap for a set period of time. They also contain a protection feature, in which the Company will absorb, up to a certain percentage, the loss of value in an index, ETF or commodity price, which varies by product segment.

168

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

In order to support the returns associated with these features, the Company enters into derivative contracts whose payouts, in combination with fixed income investments, emulate those of the index, ETF or commodity price, subject to caps and buffers, thereby substantially reducing any exposure to market-related earnings volatility.

Derivatives Used to Hedge Equity Market Risks Associated with the General Account’s Seed Money Investments in Retail Mutual Funds

The Company’s General Account seed money investments in retail mutual funds expose us to market risk, including equity market risk which is partially hedged through equity-index futures contracts to minimize such risk.

Derivatives Used for General Account Investment Portfolio

The Company maintains a strategy in its General Account investment portfolio to replicate the credit exposure of fixed maturity securities otherwise permissible for investment under its investment guidelines through the sale of CDS. Under the terms of these swaps, the Company receives quarterly fixed premiums that, together with any initial amount paid or received at trade inception, replicate the credit spread otherwise currently obtainable by purchasing the referenced entity’s bonds of similar maturity. These credit derivatives generally have remaining terms of five years or less and are recorded at fair value with changes in fair value, including the yield component that emerges from initial amounts paid or received, reported in net derivative gains (losses).

The Company manages its credit exposure taking into consideration both cash and derivatives based positions and selects the reference entities in its replicated credit exposures in a manner consistent with its selection of fixed maturities. In addition, the Company generally transacts the sale of CDS in single name reference entities of investment grade credit quality and with counterparties subject to collateral posting requirements. If there is an event of default by the reference entity or other such credit event as defined under the terms of the swap contract, the Company is obligated to perform under the credit derivative and, at its option, either pay the referenced amount of the contract less an auction-determined recovery amount or pay the referenced amount of the contract and receive in return the defaulted or similar security of the reference entity for recovery by sale at the contract settlement auction. The Company purchased CDS to mitigate its exposure to a reference entity through cash positions. These positions do not replicate credit spreads.

To date, there have been no events of default or circumstances indicative of a deterioration in the credit quality of the named referenced entities to require or suggest that the Company will have to perform under the CDS that it sold. The maximum potential amount of future payments the Company could be required to make under the credit derivatives sold is limited to the par value of the referenced securities which is the dollar or euro-equivalent of the derivative’s notional amount. The Standard North American CDS Contract or Standard European Corporate Contract under which the Company executes these CDS sales transactions does not contain recourse provisions for recovery of amounts paid under the credit derivative.

The Company purchased 30-year TIPS and other sovereign bonds, both inflation linked and non-inflation linked, as General Account investments and enters into asset or cross-currency basis swaps, to result in payment of the given bond’s coupons and principal at maturity in the bond’s specified currency to the swap counterparty in return for fixed dollar amounts. These swaps, when considered in combination with the bonds, together result in a net position that is intended to replicate a dollar-denominated fixed-coupon cash bond with a yield higher than a term-equivalent U.S. Treasury bond.

Derivatives Utilized to Hedge Exposure to Foreign Currency Denominated Cash Flows

The Company purchases private placement debt securities and issues funding agreements in the FABN program in currencies other than its functional US dollar currency. The Company enters into cross currency swaps with external counterparties to hedge the exposure of the foreign currency denominated cash flows of these instruments. The foreign currency received from or paid to the cross currency swap counterparty is exchanged for fixed US dollar amounts with improved net investment yields or net product costs over equivalent US dollar denominated instruments issued at that time. The transactions are accounted for as cash flow hedges when they are designated in hedging relationships and qualify for hedge accounting. The first cross currency swap hedges were designated and applied hedge accounting during the quarter ended June 30, 2021.

These cross currency swaps are for the period the foreign currency denominated private placement debt securities and funding agreement are outstanding, with the longest cross currency swap expiring in 2033. Since designation and qualification as cash flow hedges, cross currency swap interest accruals are recognized in Net investment income and in Interest credited to policyholders’ account balances.

169

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

The tables below present quantitative disclosures about the Company’s derivative instruments designated in hedging relationships and derivative instruments which have not been designated in hedging relationships, including those embedded in other contracts required to be accounted for as derivative instruments.

The following table presents the gross notional amount and estimated fair value of the Company’s derivatives:

Derivative Instruments by Category

	December 31, 2021						December 31, 2020
			Fair Value						Fair Value
	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
	(in millions)
Derivatives: Designated for Hedge accounting (1)
Cash Flow Hedges:
Currency Swaps	$	921	$	7	$	42	$	—	$	—	$	—
Interest Swaps	955		—		395		957		—		219
Total: Designated for Hedge accounting	1,876		7		437		957		—		219
Derivatives: Not designated for Hedge accounting (1)
Equity contracts:
Futures (5)	2,640		—		1		4,881		—		2
Swaps (5)	13,378		6		4		22,456		6		2
Options	48,489		12,024		5,065		35,848		8,396		3,726
Interest rate contracts:
Futures (5)	12,575		—		—		18,571		—		—
Swaps (5)	1,889		—		46		22,877		553		437
Swaptions	—		—		—		—		—		—
Credit contracts:
Credit default swaps	774		9		10		1,087		19		14
Currency
Currency Swaps	541		1		—		411		9		9
Currency forwards	79		8		7		—		—		—
Other freestanding contracts:
Margin	—		125		—		—		49		66
Collateral	—		178		6,160		—		212		3,839
Total: Not designated for Hedge accounting	80,365		12,351		11,293		106,131		9,244		8,095
Embedded Derivatives:
Amounts due from reinsurers (6)	—		5,813		—		—		—		—
GMIB reinsurance contracts (2)	—		1,848		—		—		2,488		—
GMxB derivative features liability (3)	—		—		8,525		—		—		11,131
SCS, SIO, MSO and IUL indexed features (4)	—		—		6,773		—		—		4,509
Total Embedded Derivatives	—		7,661		15,298		—		2,488		15,640
Total derivative instruments	$	82,241	$	20,019	$	27,028	$	107,088	$	11,732	$	23,954

___________

(1)Reported in other invested assets in the consolidated balance sheets.

(2) Reported in GMIB reinsurance contract asset in the consolidated balance sheets.

(3)    Reported in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets.

(4)    Reported in policyholders’ account balances in the consolidated balance sheets.

(5)    Decrease in futures and swaps notional as of December 31, 2021 is primarily due to Venerable Transaction (see Note 1 of the Notes to these Consolidated Financial Statements).

(6)    Represents GMIB NLG ceded related to the Venerable Transaction.

170

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

The following table presents the effects of derivative instruments on the consolidated statements of income and comprehensive income (loss).

Derivative Instruments by Category

171

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

	Year Ended December 31, 2021						Year Ended December 31, 2020						Year Ended December 31, 2019
	Net Derivatives Gain(Losses) (1)		Interest Credited To Policyholder Account Balances		AOCI		Net Derivatives Gain(Losses) (1)		Interest Credited To Policyholder Account Balances		AOCI		Net Derivatives Gain(Losses) (1)		Interest Credited To Policyholder Account Balances		AOCI
	(in millions)
Derivatives: Designated for Hedge accounting
Cash Flow Hedges:
Currency Swaps	$	(2)	$	(45)	$	5	$	—	$	—	$	—	$	—	$	—	$	—
Interest Swaps	(69)		—		(87)		(9)		—		(87)		4		—		(28)
Total: Designated for Hedge accounting	(71)		(45)		(82)		(9)		—		(87)		4		—		(28)
Derivatives: Not Designated for Hedge accounting
Equity contracts
Futures	(567)		—		—		(1,011)		—		—		(1,311)		—		—
Swaps	(3,614)		—		—		(3,368)		—		—		(2,426)		—		—
Options	3,886		—		—		1,663		—		—		2,229		—		—
Interest Rate contracts
Futures	(728)		—		—		1,740		—		—		145		—		—
Swaps	(2,317)		—		—		2,832		—		—		2,033		—		—
Swaptions	—		—		—		9		—		—		(35)		—		—
Credit contracts
Credit Default Swaps	(2)		—		—		—		—		—		9		—		—
Currency contracts
Currency Swaps	3		—		—		(4)		—		—		(9)		—		—
Currency forwards	2		—		—		—		—		—		—		—		—
Other
Margin	—		—		—		—		—		—		—		—		—
Collateral	—		—		—		—		—		—		—		—		—
Total: Not Designated for Hedge accounting	(3,337)		—		—		1,861		—		—		635		—		—
Embedded Derivatives
Amounts due from reinsurers	517		—		—		—		—		—		—		—		—
GMIB reinsurance contracts	(625)		—		—		417		—		—		433		—		—
GMxB derivative features liability (2)	2,841		—		—		(2,253)		—		—		(2,442)		—		—
SCS, SIO,MSO and IUL indexed features	(3,835)		—		—		(1,738)		—		—		(2,642)		—		—
Total Embedded Derivatives	(1,102)		—		—		(3,574)		—		—		(4,651)		—		—
Total Derivatives	$	(4,510)	$	(45)	$	(82)	$	(1,722)	$	—	$	(87)	$	(4,012)	$	—	$	(28)

172

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

(1)Reported in net derivative gains (losses) in the consolidated statements of income (loss).

(2)Excludes settlement fees of $45 million on CS Life reinsurance contract for the year ended December 31, 2021 .

The table that follow below present a roll-forward of cash flow hedges recognized in AOCI.

Roll-forward of Cash flow hedges in AOCI

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Balance, beginning of period	$	(126)	$	(38)	$	(10)
Amount recorded in AOCI
Currency Swaps	(35)		—		—
Interest Swaps	(183)		(108)		(45)
Total Amount recorded in AOCI	(218)		(108)		(45)
Amount reclassified from AOCI to income
Currency Swaps	40		—		—
Interest Swaps	96		20		17
Total Amount reclassified from AOCI to income	136		20		17
Ending Balance, December 31 (1)	$	(208)	$	(126)	$	(38)

_______________

(1) The Company does not estimate the amount of the deferred losses in AOCI at years ended December 31, 2021, 2020 and 2019 which will be released and reclassified into Net income (loss) over the next 12 months as the amounts cannot be reasonably estimated.

Equity-Based and Treasury Futures Contracts Margin

All outstanding equity-based and treasury futures contracts as of December 31, 2021 and December 31, 2020 are exchange-traded and net settled daily in cash. As of December 31, 2021 and December 31, 2020, respectively, the Company had open exchange-traded futures positions on: (i) the S&P 500, Nasdaq, Russell 2000 and Emerging Market indices, having initial margin requirements of $109 million and $307 million, (ii) the 2-year, 5-year and 10-year U.S. Treasury Notes on U.S. Treasury bonds and ultra-long bonds, having initial margin requirements of $200 million and $264 million, and (iii) the Euro Stoxx, FTSE 100, Topix, ASX 200 and EAFE indices as well as corresponding currency futures on the Euro/U.S. dollar, Pound/U.S. dollar, Australian dollar/U.S. dollar, and Yen/U.S. dollar, having initial margin requirements of $16 million and $35 million.

Collateral Arrangements

The Company generally has executed a CSA under the ISDA Master Agreement it maintains with each of its OTC derivative counterparties that requires both posting and accepting collateral either in the form of cash or high-quality securities, such as U.S. Treasury securities, U.S. government and government agency securities and investment grade corporate bonds. The Company nets the fair value of all derivative financial instruments with counterparties for which an ISDA Master Agreement and related CSA have been executed. As of December 31, 2021 and December 31, 2020, respectively, the Company held $6.2 billion and $3.8 billion in cash and securities collateral delivered by trade counterparties, representing the fair value of the related derivative agreements. The unrestricted cash collateral is reported in other invested assets. The Company posted collateral of $178 million and $212 million as of December 31, 2021 and December 31, 2020, respectively, in the normal operation of its collateral arrangements.

The following tables presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments as of December 31, 2021 and December 31, 2020:

Offsetting of Financial Assets and Liabilities and Derivative Instruments

173

As of December 31, 2021

	Gross Amount Recognized		Gross Amount Offset in the Balance Sheets		Net Amount Presented in the Balance Sheets		Gross Amount not Offset in the Balance Sheets (3)		Net Amount
	(in millions)
Assets:
Derivative assets (1)	$	12,358	$	10,756	$	1,602	$	(961)	$	641
Other financial assets	1,989		—		1,989		—		1,989
Other invested assets	$	14,347	$	10,756	$	3,591	$	(961)	$	2,630
Liabilities:
Derivative liabilities (2)	$	10,770	$	10,756	$	14	$	—	$	14
Other financial liabilities	3,919		—		3,919		—		3,919
Other liabilities	$	14,689	$	10,756	$	3,933	$	—	$	3,933

______________

(1)Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs.

(2)Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs.

(3)Financial instruments sent (held).

As of December 31, 2020

	Gross Amount Recognized		Gross Amount Offset in the Balance Sheets		Net Amount Presented in the Balance Sheets		Gross Amount not Offset in the Balance Sheets (3)		Net Amount
	(in millions)
Assets:
Derivative assets (1)	$	9,244	$	8,249	$	995	$	(53)	$	942
Other financial assets	1,733		—		1,733		—		1,733
Other invested assets	$	10,977	$	8,249	$	2,728	$	(53)	$	2,675
Liabilities:
Derivative liabilities (2)	$	8,261	$	8,249	$	12	$	—	$	12
Other financial liabilities	3,674		—		3,674		—		3,674
Other liabilities	$	11,935	$	8,249	$	3,686	$	—	$	3,686

______________

(1)Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs.

(2)Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs.

(3)Financial instruments sent (held).

5)    GOODWILL

Goodwill

Goodwill represents the excess of purchase price over the estimated fair value of identifiable net assets acquired in a business combination. The Company tests goodwill for recoverability each annual reporting period at December 31 and at interim periods if facts or circumstances are indicative of potential impairment.

The carrying value of goodwill from the Company’s Investment Management reporting unit totaled $4.6 billion at both December 31, 2021 and 2020, resulting from its investment in AB as well as direct strategic acquisitions of AB, including its purchase of Sanford C. Bernstein, Inc.

As of December 31, 2021 and 2020, the Company’s annual testing resulted in no impairment of this goodwill, as the fair value of the reporting unit exceeded its carrying amount at each respective date.

Other Intangible Assets

174

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

The Company’s intangible assets primarily relate to the Bernstein Acquisition and purchases of AB Units and reflect amounts assigned to acquired investment management contracts based on their estimated fair values at the time of acquisition, less accumulated amortization.

The gross carrying amount of AB-related intangible assets was $932 million as of December 31, 2021 and $926 million as of December 31, 2020, and the accumulated amortization of these intangible assets was $809 million and $786 million as of December 31, 2021 and 2020, respectively. Amortization expense for AB-related intangible assets totaled $21 million , $37 million, and $44 million for 2021, 2020 and 2019, respectively. Estimated annual amortization expense for each of the next five years is approximately $20 million, $18 million, $18 million, $17 million and $15 million, respectively.

On June 20, 2014, AB acquired an 81.7% ownership interest in CPH, a Danish asset management firm that manages global core equity assets for institutional investors. AB subsequently purchased additional shares of CPH bringing its ownership interest to 100% as of December 31, 2019. AB ownership interest in CPH is 100% as of December 31, 2021. The acquisitions described above did not have a significant impact on the Company’s consolidated revenues or net income. As a result, supplemental pro forma information has not been provided. Additional information regarding the contingent payment obligations associated with these and other acquisitions made by AB is included in Note 8 of the Notes to these Consolidated Financial Statements.

6)    CLOSED BLOCK

As a result of demutualization, the Company’s Closed Block was established in 1992 for the benefit of certain individual participating policies that were in force on that date. Assets, liabilities and earnings of the Closed Block are specifically identified to support its participating policyholders.

Assets allocated to the Closed Block inure solely to the benefit of the Closed Block policyholders and will not revert to the benefit of the Company. No reallocation, transfer, borrowing or lending of assets can be made between the Closed Block and other portions of the Company’s General Account, any of its Separate Accounts or any affiliate of the Company without the approval of the NYDFS. Closed Block assets and liabilities are carried on the same basis as similar assets and liabilities held in the General Account.

The excess of Closed Block liabilities over Closed Block assets (adjusted to exclude the impact of related amounts in AOCI) represents the expected maximum future post-tax earnings from the Closed Block that would be recognized in income from continuing operations over the period the policies and contracts in the Closed Block remain in force. As of January 1, 2001, the Company has developed an actuarial calculation of the expected timing of the Closed Block’s earnings.

If the actual cumulative earnings from the Closed Block are greater than the expected cumulative earnings, only the expected earnings will be recognized in net income. Actual cumulative earnings in excess of expected cumulative earnings at any point in time are recorded as a policyholder dividend obligation because they will ultimately be paid to Closed Block policyholders as an additional policyholder dividend unless offset by future performance that is less favorable than originally expected. If a policyholder dividend obligation has been previously established and the actual Closed Block earnings in a subsequent period are less than the expected earnings for that period, the policyholder dividend obligation would be reduced (but not below zero). If, over the period the policies and contracts in the Closed Block remain in force, the actual cumulative earnings of the Closed Block are less than the expected cumulative earnings, only actual earnings would be recognized in income from continuing operations. If the Closed Block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from assets outside the Closed Block.

Many expenses related to Closed Block operations, including amortization of DAC, are charged to operations outside of the Closed Block; accordingly, net revenues of the Closed Block do not represent the actual profitability of the Closed Block operations. Operating costs and expenses outside of the Closed Block are, therefore, disproportionate to the business outside of the Closed Block.

Summarized financial information for the Company’s Closed Block is as follows:

	December 31,
	2021		2020
	(in millions)
Closed Block Liabilities:
Future policy benefits, policyholders’ account balances and other	$	5,928	$	6,201

175

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

	December 31,
	2021		2020
Policyholder dividend obligation	—		160
Other liabilities	39		39
Total Closed Block liabilities	5,967		6,400
Assets Designated to the Closed Block:
Fixed maturities AFS, at fair value (amortized cost of $3,185 and $3,359) (allowance for credit losses of $0 and $0)	3,390		3,718
Mortgage loans on real estate (net of allowance for credit losses of $4 and $6)	1,771		1,773
Policy loans	602		648
Cash and other invested assets	63		28
Other assets	90		169
Total assets designated to the Closed Block	5,916		6,336
Excess of Closed Block liabilities over assets designated to the Closed Block	51		64
Amounts included in AOCI:
Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $0 and $160; and net of income tax: $(43) and $(42)	172		167
Maximum future earnings to be recognized from Closed Block assets and liabilities	$	223	$	231

The Company’s Closed Block revenues and expenses were as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Revenues:
Premiums and other income	$	144	$	157	$	182
Net investment income (loss)	237		251		278
Investment gains (losses), net	4		—		(1)
Total revenues	385		408		459
Benefits and Other Deductions:
Policyholders’ benefits and dividends	372		399		439
Other operating costs and expenses	3		1		2
Total benefits and other deductions	375		400		441
Net income (loss), before income taxes	10		8		18
Income tax (expense) benefit	(2)		(2)		(2)
Net income (loss)	$	8	$	6	$	16

A reconciliation of the Company’s policyholder dividend obligation follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Beginning balance	$	160	$	2	$	—
Unrealized investment gains (losses)	(160)		158		2
Ending balance	$	—	$	160	$	2

176

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

7)    DAC AND POLICYHOLDER BONUS INTEREST CREDITS

Changes in the DAC asset for the years ended December 31, 2021, 2020 and 2019 were as follows:

	December 31,
	2021		2020		2019
	(in millions)
Balance, beginning of year (1)	$	4,243	$	5,840	$	6,705
Capitalization of commissions, sales and issue expenses	875		669		754
Amortization:
Impact of assumptions updates and model changes	58		(1,109)		46
All other	(451)		(504)		(643)
Total amortization	(393)		(1,613)		(597)
Change in unrealized investment gains and losses	766		(654)		(994)
Reclassified to assets HFS	—		1		(31)
Balance, end of year	$	5,491	$	4,243	$	5,837

______________

(1) December 31, 2020 DAC beginning balance is $3 million more than December 31, 2019 ending balance due to impact of CECL.

The deferred asset for policyholder bonus interest credits is reported in other assets in the consolidated balance sheets and changes in the deferred asset for policyholder bonus interest credits are reported in Interest credited to policyholders’ account balances. For the years ended December 31, 2021, 2020 and 2019 changes were as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Balance, beginning of year	$	404	$	430	$	448
Amortization charged to income	(31)		(26)		(18)
Balance, end of year	$	373	$	404	$	430

8)    FAIR VALUE DISCLOSURES

U.S. GAAP establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value, and identifies three levels of inputs that may be used to measure fair value:

Level 1    Unadjusted quoted prices for identical instruments in active markets. Level 1 fair values generally are supported by market transactions that occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2    Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, and inputs to model-derived valuations that are directly observable or can be corroborated by observable market data.

Level 3    Unobservable inputs supported by little or no market activity and often requiring significant management judgment or estimation, such as an entity’s own assumptions about the cash flows or other significant components of value that market participants would use in pricing the asset or liability.

The Company uses unadjusted quoted market prices to measure fair value for those instruments that are actively traded in financial markets. In cases where quoted market prices are not available, fair values are measured using present value or other valuation techniques. The fair value determinations are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such adjustments do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value cannot be substantiated by direct comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instrument.

177

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Management is responsible for the determination of the value of investments carried at fair value and the supporting methodologies and assumptions. Under the terms of various service agreements, the Company often utilizes independent valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual securities. These independent valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of widely accepted valuation models, provide a single fair value measurement for individual securities for which a fair value has been requested. As further described below with respect to specific asset classes, these inputs include, but are not limited to, market prices for recent trades and transactions in comparable securities, benchmark yields, interest rate yield curves, credit spreads, quoted prices for similar securities, and other market-observable information, as applicable. Specific attributes of the security being valued also are considered, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security- or issuer-specific information. When insufficient market observable information is available upon which to measure fair value, the Company either will request brokers knowledgeable about these securities to provide a non-binding quote or will employ internal valuation models. Fair values received from independent valuation service providers and brokers and those internally modeled or otherwise estimated are assessed for reasonableness.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Fair value measurements are required on a non-recurring basis for certain assets only when an impairment or other events occur. For the periods ended December 31, 2021 and December 31, 2020, the Company recognized impairment adjustments and impairment losses, respectively, to adjust the carrying value of held-for-sale asset and liabilities to their fair value less cost to sell. The value is measured on a nonrecurring basis and categorized within Level 3 of the fair value hierarchy. The fair value was determined using a market approach, estimated based on the negotiated value of the asset and liabilities. See Note 23 of the Notes to these Consolidated Financial Statements for additional details of the Held-for-Sale assets and liabilities.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below.

Fair Value Measurements as of December 31, 2021

178

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments
Fixed maturities, AFS:
Corporate (1)	$	—	$	51,007	$	1,504	$	52,511
U.S. Treasury, government and agency	—		15,385		—		15,385
States and political subdivisions	—		627		35		662
Foreign governments	—		1,152		—		1,152
Residential mortgage-backed (2)	—		98		—		98
Asset-backed (3)	—		5,926		8		5,934
Commercial mortgage-backed	—		2,401		20		2,421
Redeemable preferred stock	—		53		—		53
Total fixed maturities, AFS	—		76,649		1,567		78,216
Fixed maturities, at fair value using the fair value option	—		1,440		201		1,641
Other equity investments (7)	322		457		5		784
Trading securities	340		226		65		631
Other invested assets:
Short-term investments	—		30		—		30
Assets of consolidated VIEs/VOEs	166		450		11		627
Swaps	—		(473)		—		(473)
Credit default swaps	—		(1)		—		(1)
Futures	(1)		—		—		(1)
Options	—		6,959		—		6,959
Total other invested assets	165		6,965		11		7,141
Cash equivalents	3,275		293		—		3,568
Segregated securities	—		1,504		—		1,504
Amounts due from reinsurer (6)	—		—		5,813		5,813
GMIB reinsurance contracts asset	—		—		1,848		1,848
Separate Accounts assets (4)	144,124		2,572		1		146,697
Total Assets	$	148,226	$	90,106	$	9,511	$	247,843
Liabilities
Notes issued by consolidated VIE’s, at fair value using the fair value option (5)	$	—	$	1,277	$	—	$	1,277
GMxB derivative features’ liability	—		—		8,525		8,525
SCS, SIO, MSO and IUL indexed features’ liability	—		6,773		—		6,773
Liabilities of consolidated VIEs and VOEs	16		2		—		18
Contingent payment arrangements	—		—		38		38
Total Liabilities	$	16	$	8,052	$	8,563	$	16,631

______________

(1)Corporate fixed maturities includes both public and private issues.

(2)Includes publicly traded agency pass-through securities and collateralized obligations.

(3)Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types.

(4)Separate Accounts assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate. As of December 31, 2021, the fair value of such investments was $404 million.

(5)Includes CLO short-term debt of $92 million, which is inclusive as fair valued within Notes issued by consolidated VIE’s, at fair value using the fair value option Accrued interest payable of $6 million is reported in Notes issued by consolidated VIE’s, at fair value using the fair value option in the consolidated balance sheets, which is not required to be measured at fair value on a recurring basis.

(6)This represents GMIB NLG ceded reserves related to the Venerable Transaction. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction.

179

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

(7)Includes short position equity securities of $33 million that are reported in other liabilities.

Fair Value Measurements as of December 31, 2020 (1)

	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments
Fixed maturities, AFS:
Corporate (2)	$	—	$	56,457	$	1,702	$	58,159
U.S. Treasury, government and agency	—		16,118		—		16,118
States and political subdivisions	—		596		39		635
Foreign governments	—		1,103		—		1,103
Residential mortgage-backed (3)	—		143		—		143
Asset-backed (4)	—		3,591		20		3,611
Commercial mortgage-backed (3)	—		1,203		—		1,203
Redeemable preferred stock	404		262		—		666
Total fixed maturities, AFS	404		79,473		1,761		81,638
Fixed maturities, at fair value using the fair value option	—		309		80		389
Other equity investments	13		—		71		84
Trading securities	441		5,073		39		5,553
Other invested assets:
Short-term investments	—		101		1		102
Assets of consolidated VIEs/VOEs	74		231		13		318
Swaps	—		(99)		—		(99)
Credit default swaps	—		5		—		5
Futures	(2)		—		—		(2)
Options	—		4,670		—		4,670
Swaptions	—		—		—		—
Total other invested assets	72		4,908		14		4,994
Cash equivalents	4,309		297		—		4,606
Segregated securities	—		1,753		—		1,753
GMIB reinsurance contracts asset	—		—		2,488		2,488
Separate Accounts assets (5)	132,698		2,674		1		135,373
Total Assets	$	137,937	$	94,487	$	4,454	$	236,878
Liabilities
Notes issued by consolidated VIE’s, at fair value using the fair value option (6)	$	—	$	312	$	—	$	312
GMxB derivative features’ liability	—		—		11,131		11,131
SCS, SIO, MSO and IUL indexed features’ liability	—		4,509		—		4,509
Liabilities of consolidated VIEs and VOEs	2		6		—		8
Contingent payment arrangements	—		—		28		28
Total Liabilities	$	2	$	4,827	$	11,159	$	15,988

______________

(1)Excludes amounts reclassified as HFS.

(2)Corporate fixed maturities includes both public and private issues.

(3)Includes publicly traded agency pass-through securities and collateralized obligations.

(4)Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans.

180

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

(5)Separate Accounts assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate and commercial mortgages. As of December 31, 2020, the fair value of such investments was $356 million.

(6)Accrued interest payable of $1 million is reported in Notes issued by consolidated VIE’s, at fair value using the fair value option in the consolidated balance sheets, which is not required to be measured at fair value on a recurring basis.

Public Fixed Maturities

The fair values of the Company’s public fixed maturities, including those accounted for using the fair value option are generally based on prices obtained from independent valuation service providers and for which the Company maintains a vendor hierarchy by asset type based on historical pricing experience and vendor expertise. Although each security generally is priced by multiple independent valuation service providers, the Company ultimately uses the price received from the independent valuation service provider highest in the vendor hierarchy based on the respective asset type, with limited exception. To validate reasonableness, prices also are internally reviewed by those with relevant expertise through comparison with directly observed recent market trades. Consistent with the fair value hierarchy, public fixed maturities validated in this manner generally are reflected within Level 2, as they are primarily based on observable pricing for similar assets and/or other market observable inputs.

Private Fixed Maturities

The fair values of the Company’s private fixed maturities, including those accounted for using the fair value option are determined from prices obtained from independent valuation service providers. Prices not obtained from an independent valuation service provider are determined by using a discounted cash flow model or a market comparable company valuation technique. In certain cases, these models use observable inputs with a discount rate based upon the average of spread surveys collected from private market intermediaries who are active in both primary and secondary transactions, taking into account, among other factors, the credit quality and industry sector of the issuer and the reduced liquidity associated with private placements. Generally, these securities have been reflected within Level 2. For certain private fixed maturities, the discounted cash flow model or a market comparable company valuation technique may also incorporate unobservable inputs, which reflect the Company’s own assumptions about the inputs market participants would use in pricing the asset. To the extent management determines that such unobservable inputs are significant to the fair value measurement of a security, a Level 3 classification generally is made.

Notes issued by consolidated VIE’s, at fair value using the fair value option

These notes are based on the fair values of corresponding fixed maturity collateral. The CLO liabilities are also reduced by the fair value of the beneficial interests the Company retains in the CLO and the carrying value of any beneficial interests that represent compensation for services. As the notes are valued based on the reference collateral, they are classified as Level 2 or 3. See “Fair Value Option” below for additional information.

Freestanding Derivative Positions

The net fair value of the Company’s freestanding derivative positions as disclosed in Note 4 of the Notes to these Consolidated Financial Statements are generally based on prices obtained either from independent valuation service providers or derived by applying market inputs from recognized vendors into industry standard pricing models. The majority of these derivative contracts are traded in the OTC derivative market and are classified in Level 2. The fair values of derivative assets and liabilities traded in the OTC market are determined using quantitative models that require use of the contractual terms of the derivative instruments and multiple market inputs, including interest rates, prices, and indices to generate continuous yield or pricing curves, including overnight index swap curves, and volatility factors, which then are applied to value the positions. The predominance of market inputs is actively quoted and can be validated through external sources or reliably interpolated if less observable.

Level Classifications of the Company’s Financial Instruments

Financial Instruments Classified as Level 1

Investments classified as Level 1 primarily include redeemable preferred stock, trading securities, cash equivalents and Separate Accounts assets. Fair value measurements classified as Level 1 include exchange-traded prices of fixed maturities, equity securities and derivative contracts, and net asset values for transacting subscriptions and redemptions of mutual fund shares held by Separate Accounts. Cash equivalents classified as Level 1 include money market accounts, overnight commercial paper and highly liquid debt instruments purchased with an original maturity of three months or less and are carried at cost as a proxy for fair value measurement due to their short-term nature.

181

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Financial Instruments Classified as Level 2

Investments classified as Level 2 are measured at fair value on a recurring basis and primarily include U.S. government and agency securities, certain corporate debt securities and financial assets and liabilities accounted for using the fair value option, such as public and private fixed maturities. As market quotes generally are not readily available or accessible for these securities, their fair value measures are determined utilizing relevant information generated by market transactions involving comparable securities and often are based on model pricing techniques that effectively discount prospective cash flows to present value using appropriate sector-adjusted credit spreads commensurate with the security’s duration, also taking into consideration issuer-specific credit quality and liquidity. Segregated securities classified as Level 2 are U.S. Treasury bills segregated by AB in a special reserve bank custody account for the exclusive benefit of brokerage customers, as required by Rule 15c3-3 of the Exchange Act and for which fair values are based on quoted yields in secondary markets.

Observable inputs generally used to measure the fair value of securities classified as Level 2 include benchmark yields, reported secondary trades, issuer spreads, benchmark securities and other reference data. Additional observable inputs are used when available, and as may be appropriate, for certain security types, such as prepayment, default, and collateral information for the purpose of measuring the fair value of mortgage- and asset-backed securities. The Company’s AAA-rated mortgage- and asset-backed securities are classified as Level 2 for which the observability of market inputs to their pricing models is supported by sufficient, albeit more recently contracted, market activity in these sectors.

Certain Company products, such as the SCS, EQUI-VEST variable annuity products, IUL and the MSO fund available in some life contracts, offer investment options which permit the contract owner to participate in the performance of an index, ETF or commodity price. These investment options, which depending on the product and on the index selected, can currently have one, three, five or six year terms, provide for participation in the performance of specified indices, ETF or commodity price movement up to a segment-specific declared maximum rate. Under certain conditions that vary by product, e.g., holding these segments for the full term, these segments also shield policyholders from some or all negative investment performance associated with these indices, ETF or commodity prices. These investment options have defined formulaic liability amounts, and the current values of the option component of these segment reserves are classified as Level 2 embedded derivatives. The fair values of these embedded derivatives are based on data obtained from independent valuation service providers.

Financial Instruments Classified as Level 3

The Company’s investments classified as Level 3 primarily include corporate debt securities and financial assets and liabilities accounted for using the fair value option, such as private fixed maturities and asset-backed securities. Determinations to classify fair value measures within Level 3 of the valuation hierarchy generally are based upon the significance of the unobservable factors to the overall fair value measurement. Included in the Level 3 classification are fixed maturities with indicative pricing obtained from brokers that otherwise could not be corroborated to market observable data.

The Company also issues certain benefits on its variable annuity products that are accounted for as derivatives and are also considered Level 3. The GMIBNLG feature allows the policyholder to receive guaranteed minimum lifetime annuity payments based on predetermined annuity purchase rates applied to the contract’s benefit base if and when the contract account value is depleted and the NLG feature is activated. The GMWB feature allows the policyholder to withdraw at minimum, over the life of the contract, an amount based on the contract’s benefit base. The GWBL feature allows the policyholder to withdraw, each year for the life of the contract, a specified annual percentage of an amount based on the contract’s benefit base. The GMAB feature increases the contract account value at the end of a specified period to a GMAB base. The GIB feature provides a lifetime annuity based on predetermined annuity purchase rates if and when the contract account value is depleted. This lifetime annuity is based on predetermined annuity purchase rates applied to a GIB base.

Level 3 also includes the GMIB reinsurance contract assets, which are accounted for as derivative contracts. The GMIB reinsurance contract asset and liabilities’ fair value reflects the present value of reinsurance premiums, net of recoveries, and risk margins over a range of market consistent economic scenarios while GMxB derivative features liability reflects the present value of expected future payments (benefits) less fees, adjusted for risk margins and nonperformance risk, attributable to GMxB derivative features’ liability over a range of market-consistent economic scenarios. 

182

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Also included are the Amounts due from Reinsurers related to the GMIB NLG product features (GMIB NLG Reinsurance). The fair value reflects the present value of reinsurance premiums, net of recoveries, adjusted for risk margins and nonperformance risk over a range of market consistent economic scenarios.

The valuations of the GMIB reinsurance contract asset, GMIB NLG Reinsurance and GMxB derivative features liability incorporate significant non-observable assumptions related to policyholder behavior, risk margins and projections of equity Separate Accounts funds. The credit risks of the counterparty and of the Company are considered in determining the fair values of its GMIB reinsurance contract asset, GMIB NLG Reinsurance and GMxB derivative features liability positions, respectively, after taking into account the effects of collateral arrangements. Incremental adjustment to the US Treasury curve for non-performance risk is made to the fair values of the GMIB reinsurance contract asset, GMIB NLG Reinsurance and GMIBNLG feature to reflect the claims-paying ratings of counterparties and the Company. Equity and fixed income volatilities were modeled to reflect current market volatilities. Due to the unique, long duration of the GMIBNLG feature and GMIB NLG Reinsurance , adjustments were made to the equity volatilities to remove the illiquidity bias associated with the longer tenors and risk margins were applied to the non-capital markets inputs to the GMIBNLG valuations.

After giving consideration to collateral arrangements, the impact to the fair value of its GMIB reinsurance contract asset was a decrease of $107 million and $102 million as of December 31, 2021 and December 31, 2020, respectively, to recognize incremental counterparty non-performance risk and the impact to the fair value of its GMIB reinsurance contract liabilities was a decrease of $15 million and $19 million as of December 31, 2021 and December 31, 2020, respectively, to recognize its own incremental non-performance risk.

After giving consideration to collateral arrangements, the impact to the fair value of its Amounts due from Reinsurers was a decrease of $210 million at December 31, 2021 to recognize incremental counterparty non-performance risk.

Lapse rates are adjusted at the contract level based on a comparison of the actuarial calculated guaranteed values and the current policyholder account value, which include other factors such as considering surrender charges. Generally, lapse rates are assumed to be lower in periods when a surrender charge applies. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in-the-money contracts are less likely to lapse. For valuing the embedded derivative, lapse rates vary throughout the period over which cash flows are projected.

The Company’s Level 3 liabilities include contingent payment arrangements associated with acquisitions in 2016 and 2019 by AB. At each reporting date, AB estimates the fair values of the contingent consideration expected to be paid based upon revenue and discount rate projections, using unobservable market data inputs, which are included in Level 3 of the valuation hierarchy. The Company’s consolidated VIEs/VOEs hold investments that are classified as Level 3, primarily corporate bonds that are vendor priced with no ratings available, bank loans, non-agency collateralized mortgage obligations and asset-backed securities.

Transfers of Financial Instruments Between Levels 2 and 3

During the year ended December 31, 2021, fixed maturities with fair values of $785 million were transferred out of Level 3 and into Level 2 principally due to the availability of trading activity and/or market observable inputs to measure and validate their fair values. In addition, fixed maturities with fair value of $27 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 6.2% of total equity as of December 31, 2021.

During the year ended December 31, 2020, fixed maturities with fair values of $103 million were transferred out of Level 3 and into Level 2 principally due to the availability of trading activity and/or market observable inputs to measure and validate their fair values. In addition, fixed maturities with fair value of $189 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 1.7% of total equity as of December 31, 2020.

The tables below present reconciliations for all Level 3 assets and liabilities and changes in unrealized gains (losses) for the years ended December 31, 2021, 2020 and 2019, respectively.

183

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Level 3 Instruments - Fair Value Measurements

	Corporate		State and Political Subdivisions		Asset-backed		CMBS		Trading Securities, at Fair Value		Fixed maturities, at FVO
	(in millions)
Balance, January 1, 2021	$	1,702	$	39	$	20	$	—	$	39	$	80
Total gains and (losses), realized and unrealized, included in:
Net income (loss) as:
Net investment income (loss)	5		—		—		—		—		5
Investment gains (losses), net	(16)		—		—		—		26		—
Subtotal	(11)		—		—		—		26		5
Other comprehensive income (loss)	34		(2)		—		—		—
Purchases	938		—		6		20		—		211
Sales	(473)		(2)		(18)		—		—		(23)
Activity related to consolidated VIEs/VOEs	—		—		—		—		—
Transfers into Level 3 (1)	27		—		—		—		—		—
Transfers out of Level 3 (1)	(713)		—		—		—		—		(72)
Balance, December 31, 2021	$	1,504	$	35	$	8	$	20	$	65	$	201
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2)	$	—	$	—	$	—	$	—	$	26	$	5
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2)	$	28	$	(2)	$	—	$	—	$	—	$	—
Balance, January 1, 2020	$	1,257	$	39	$	100	$	—	$	36	$	—
Total gains and (losses), realized and unrealized, included in:
Net income (loss) as:
Net investment income (loss)	4		—		—		—		—		—
Investment gains (losses), net	(16)		—		—		—		3		—
Subtotal	(12)		—		—		—		3		—
Other comprehensive income (loss)	(17)		2		—		—		—		—
Purchases	514		—		20		—		—		81
Sales	(226)		(2)		—		—		—		(1)

184

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

	Corporate		State and Political Subdivisions		Asset-backed		CMBS		Trading Securities, at Fair Value		Fixed maturities, at FVO
	(in millions)
Activity related to consolidated VIEs/VOEs	—								—
Transfers into Level 3 (1)	189		—		—		—		—		—
Transfers out of Level 3 (1)	(3)		—		(100)		—		—		—
Balance, December 31, 2020	$	1,702	$	39	$	20	$	—	$	39	$	80
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2)	$	—	$	—	$	—	$	—	$	3	$	—
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2)	$	(18)	$	2	$	—	$	—	$	—	$	—
Balance, January 1, 2019	$	1,186	$	39	$	519	$	—	$	64	$	—
Total gains (losses), realized and unrealized, included in:
Income (loss) as:
Net investment income (loss)	4		—		—		—		—		—
Investment gains (losses), net	—		1		—		—		6		—
Subtotal	4		1		—		—		6		—
Other comprehensive income (loss)	5		2		1		—		—		—
Purchases	274		—		100		—		—		—
Sales	(122)		(3)		(84)		—		(5)		—
Transfers into Level 3 (1)	14		—		—		—		—		—
Transfers out of Level 3 (1)	(104)		—		(436)		—		(29)		—
Balance, December 31, 2019	$	1,257	$	39	$	100	$	—	$	36	$	—
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2)	$	—	$	—	$	—	$	—	$	6	$	—
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2)	$	4	$	3	$	—	$	—	$	—	$	—

_____________

(1)Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values.

(2)For instruments held as of December 31, 2021 or December 31, 2020, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income.

	Other Equity Investments (9)		GMIB Reinsurance  Contract Asset		Amounts Due from Reinsurers		Separate Accounts Assets		GMxB Derivative Features Liability		Contingent Payment Arrangement
	(in millions)
Balance, January 1, 2021	$	84	$	2,488	$	—	$	1	$	(11,131)	$	(28)
Realized and unrealized gains (losses), included in Net income (loss) as:
Investment gains (losses), reported in net investment income	21		—		—		—		—		—
Net derivative gains (losses) (1) (6)	—		(625)		517		—		2,841		—
Total realized and unrealized gains (losses)	21		(625)		517		—		2,841		—
Other comprehensive income (loss)	—		—		—		—		—		—

185

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

	Other Equity Investments (9)		GMIB Reinsurance  Contract Asset		Amounts Due from Reinsurers		Separate Accounts Assets		GMxB Derivative Features Liability		Contingent Payment Arrangement
	(in millions)
Purchases (2)	8		43		74		1		(463)		(7)
Sales (3)	(92)		(58)		(35)		—		88		—
Settlements (4)	—		—		—		—		—		—
Other (7)	—		—		5,259		—		—		—
Activity related to consolidated VIEs/VOEs	(4)		—		—		—		—		(3)
Transfers into Level 3 (5)	—		—				—		—		—
Transfers out of Level 3 (5)	(1)		—		—		(1)		140		—
Balance, December 31, 2021	$	16	$	1,848	$	5,815	$	1	$	(8,525)	$	(38)
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (8)	$	2	$	(625)	$	517	$	—	$	2,841	$	—
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (8)	$	—	$	—	$	—	$	—	$	—	$	—
Balance, January 1, 2020	$	113	$	2,139	$	—	$	—	$	(8,502)	$	(23)
Realized and unrealized gains (losses), included in Net income (loss) as:	—		—		—		—		—		—
Investment gains (losses), reported in net investment income	(8)		—		—		—		—		—
Net derivative gains (losses)	—		417		—		—		(2,253)		—
Total realized and unrealized gains (losses)	(8)		417		—		—		(2,253)		—
Other comprehensive income (loss)	—		—		—		—		—		—
Purchases (2)	9		43		—		1		(451)		(4)
Sales (3)	(26)		(79)		—		—		75		—
Settlements (4)	—		—		—		—		—		1
Change in estimate	—		(32)		—		—		—		1
Activity related to consolidated VIEs/VOEs	(4)		—		—		—		—		(3)
Transfers into Level 3 (5)	—		—		—		—		—		—
Transfers out of Level 3 (5)	—		—		—		—		—		—
Balance, December 31, 2020	$	84	$	2,488	$	—	$	1	$	(11,131)	$	(28)
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (8)	$	(8)	$	417	$	74	$	1	$	(2,253)	$	(7)

186

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

	Other Equity Investments (9)		GMIB Reinsurance  Contract Asset		Amounts Due from Reinsurers		Separate Accounts Assets		GMxB Derivative Features Liability		Contingent Payment Arrangement
	(in millions)
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (8)	$	—	$	—	$	—	$	—	$	—	$	—
Balance, January 1, 2019	$	93	$	1,733	$	—	$	21	$	(5,674)	$	(7)
Total gains (losses), realized and unrealized, included in:
Realized and unrealized gains (losses), included in Net income (loss) as:	$	—	$	—	$	—	$	—	$	—	$	—
Investment gains (losses), net	23		—		—		—		—		—
Net derivative gains (losses)	—		433		—		—		(2,442)		—
Non-performance risk (1)	—		—		—		—		—		—
Total realized and unrealized gains (losses)	23		433		—		—		(2,442)		—
Other comprehensive income (loss)	—		—		—		—		—		—
Purchases (2)	5		45		—		—		(427)		(17)
Sales (3)	(5)		(72)		—		(1)		41		—
Settlements (4)	—		—		—		(2)		—		1
Change in estimate	—		—		—		—		—		3
Activity related to consolidated VIEs/VOEs	(3)		—		—		—		—		(3)
Transfers into Level 3 (6)	—		—		—		—		—		—
Transfers out of Level 3 (6)	—		—		—		(18)		—		—
Balance, December 31, 2019	$	113	$	2,139	$	—	$	—	$	(8,502)	$	(23)
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (8)	$	23	$	433	$	—	$	—	$	(2,442)	$	—
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (8)	$	—	$	—	$	—	$	—	$	—	$	—

______________

(1)For the years ended December 31, 2021 and 2020, the Company’s non-performance risk impact of $213 million and $(764) million for the GMxB Derivative Features Liability, $(23) million and $7 million for the GMIB Reinsurance Contract Asset, and $(19) million and $0 million for the Amounts Due from Reinsurers, respectively, is recorded through Net derivative gains (losses).

(2)For the GMIB reinsurance contract asset, Amounts Due from Reinsurers and GMxB derivative features liability, represents attributed fee.

(3)For the GMIB reinsurance contract asset and Amounts Due from Reinsurers, represents recoveries from reinsurers and for GMxB derivative features liability represents benefits paid.

(4)For contingent payment arrangements, it represents payments under the arrangement.

(5)Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values.

(6)GMxB Derivative Features Liability excludes a $45 million settlement fee on CS Life reinsurance contract.

(7)Represents the opening ceded balance from the Venerable Transaction of the GMxB with no lapse guarantee riders.

(8)For instruments held as of December 31, 2021, December 31, 2020 and December 31, 2019, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income.

(9)Other Equity Investments include other invested assets.

187

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Quantitative and Qualitative Information about Level 3 Fair Value Measurements

The following tables disclose quantitative information about Level 3 fair value measurements by category for assets and liabilities as of December 31, 2021 and December 31, 2020, respectively.

Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2021

	Fair Value		Valuation Technique	Significant Unobservable Input	Range	Weighted Average (2)
	(in millions)
Assets:
Investments:
Fixed maturities, AFS:
Corporate	$	258	Matrix pricing model	Spread over Benchmark	20 bps - 270 bps	144 bps
	888		Market comparable  companies	EBITDA multiples Discount rate Cash flow multiples Loan to value	4.9x - 62.3x 6.2% - 21.5% 0.5x - 10.0x 3.1% - 63.4%	13.0x 9.1% 5.5x 30.8%
Trading Securities, at Fair Value	65		Discounted Cash Flow	Earnings multiple Discount factor Discount years	7.3x 10.00% 11
Other equity investments	4		Market comparable companies	Revenue multiple	7.8x - 10.3x	9.5x
GMIB reinsurance contract asset	1,848		Discounted cash flow	Lapse rates Withdrawal Rates GMIB Utilization Rates Non-performance risk Volatility rates - Equity Mortality: Ages 0-40 Ages 41-60 Ages 61-115	0.45%-20.86% 0.27%-8.66% 0.04%-60.44% 57 bps - 93 bps 11%-31% 0.01%-0.17% 0.06%-0.53% 0.31%-40.00%	2.65% 0.93% 5.27% 60 bps 24% 2.79% (same for all ages) (same for all ages)
Amount Due from Reinsurers	5,813		Discounted Cash Flow	Lapse rates Withdrawal Rates GMIB Utilization Rates Non-performance risk (bps) Volatility rates - Equity Mortality: Ages 0-40 Ages 41-60 Ages 61-115	0.45%-20.86% 0.27%-8.66% 0.04%-60.44% 37 bps 11%-31% 0.01%-0.17% 0.06%-0.53% 0.31%-40.00%	1.70% 1.18% 7.20% 37 bps 24% 2.17% (same for all ages) (same for all ages)
Liabilities:

188

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

	Fair Value	Valuation Technique	Significant Unobservable Input	Range	Weighted Average (2)
AB Contingent Consideration Payable	38	Discounted cash flow	Expected revenue growth rates Discount rate	2.0% - 83.9% 1.9% - 10.4%	11.9% 7.0%
GMIBNLG	8,503	Discounted cash flow	Non-performance risk Lapse rates Withdrawal rates Annuitization rates Mortality rates (1): Ages 0 - 40 Ages 41-60 Ages 61-115	111 bps 1.04%-23.57% 0.27%-8.66% 0.03%-100.00% 0.01%-0.19% 0.07%-0.57% 0.44%-43.60%	111 bps 3.55% 1.04% 5.24% 1.62% (same for all ages) (same for all ages)
GWBL/GMWB	99	Discounted cash flow	Lapse rates Withdrawal Rates Utilization Rates Volatility rates - Equity Non-performance risk(bps)	0.60%-20.86% 0.00%-8.00% 100% once starting 11%-31% 111 bps	2.65% 0.93% 24%
GIB	(75)	Discounted cash flow	Lapse rates Withdrawal Rates Utilization Rates Volatility rates - Equity Non-performance risk(bps)	0.60%-20.86% 0.13%-8.66% 0.04%-100.00% 11% - 31% 111 bps	2.65% 0.93% 5.27% 24%
GMAB	(3)	Discounted cash flow	Lapse rates Volatility rates - Equity Non-performance risk(bps)	0.60%-20.86% 11%-31% 111 bps	2.65% 24%

______________

(1)Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives.

(2)For lapses, withdrawals, and utilizations the rates were weighted by counts; for mortality weighted average rates are shown for all ages combined; and for withdrawals the weighted averages were based on an estimated split of partial withdrawal and dollar-for-dollar withdrawals.

Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2020

	Fair Value		Valuation Technique	Significant Unobservable Input	Range	Weighted Average (2)
	(in millions)
Assets:
Investments:
Fixed maturities, AFS:
Corporate	$	34	Matrix pricing model	Spread over benchmark	45 bps - 195 bps	160 bps
	1,148		Market comparable companies	EBITDA multiples  Discount rate  Cash flow multiples	3.5x - 33.1x 5.60% - 28.40% 1.9x-25.0x	10.8x 8.60% 6.8x
Trading Securities, at Fair Value	39		Discounted cash flow	Earnings multiple Discounts factor Discount years	8.2x 10.00% 11
Other equity investments	2		Market comparable companies	Revenue multiple	9.7x - 26.4x	18.5x

189

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

	Fair Value	Valuation Technique	Significant Unobservable Input	Range	Weighted Average (2)
	(in millions)
GMIB reinsurance contract asset	2,488	Discounted cash flow	Non-performance risk Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 60 - 115	43 - 85 bps 0.6% - 16% 0% - 2% 0% - 61% 7% - 32% 0.01% - 0.18% 0.07% - 0.54% 0.42% - 42.20%	50 bps 1.69% 0.91% 5.82% 24% 2.80% (same for all ages) (same for all ages)
Liabilities:
AB Contingent Consideration Payable	28	Discounted cash flow	Expected revenue growth rates Discount rate	0.7% - 50.0% 1.9% - 10.4%	4.9% 8.0%
GMIBNLG	10,713	Discounted cash flow	Non-performance risk Lapse rates Withdrawal rates Annuitization rates Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 60 - 115	96.0 bps 1.1% - 25.7% 0.4% - 2% 0% - 100% 0.01% - 0.19% 0.06% - 0.53% 0.41% - 41.39%	3.19% 0.93% 5.51% 1.56% (same for all ages) (same for all ages)
Assumed GMIB Reinsurance Contracts	195	Discounted cash flow	Non-performance risk Lapse rates Withdrawal rates (Age 0 - 85) Withdrawal rates (Age 86+) Utilization rates Volatility rates - Equity	60 - 133 bps 1.1% - 11.1% 0.6% - 22.2% 1.1% - 100% 0% -30% 7%-32%	99 bps 1.69% 0.91% (same for all ages) 5.82% 24%
GWBL/GMWB	190	Discounted cash flow	Non-performance risk Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity	96.0 bps 0.8%-16% 0%-8% 100% once starting 7%-32%	1.69% 0.91% 24%
GIB	31	Discounted cash flow	Non-performance risk Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity	96.0 bps 0.8%-15.6% 0%-2% 0%-100% 7%-32%	1.69% 0.91% 5.82% 24%
GMAB	2	Discounted cash flow	Non-performance risk Lapse rates Volatility rates - Equity	96.0 bps 0.8%-16% 7%-32%	1.69% 24%

______________

(1)Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives.

(2)For lapses, withdrawals, and utilizations the rates were weighted by counts; for mortality weighted average rates are shown for all ages combined; and for withdrawals the weighted averages were based on an estimated split of partial withdrawal and dollar-for-dollar withdrawals.

190

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Level 3 Financial Instruments for which Quantitative Inputs are Not Available

Certain Privately Placed Debt Securities with Limited Trading Activity

Excluded from the tables above as of December 31, 2021 and December 31, 2020, respectively, are approximately $635 million and $743 million of Level 3 fair value measurements of investments for which the underlying quantitative inputs are not developed by the Company and are not readily available. These investments primarily consist of certain privately placed debt securities with limited trading activity, including residential mortgage- and asset-backed instruments, and their fair values generally reflect unadjusted prices obtained from independent valuation service providers and indicative, non-binding quotes obtained from third-party broker-dealers recognized as market participants. Significant increases or decreases in the fair value amounts received from these pricing sources may result in the Company’s reporting significantly higher or lower fair value measurements for these Level 3 investments.

•The fair value of private placement securities is determined by application of a matrix pricing model or a market comparable company value technique. The significant unobservable input to the matrix pricing model valuation technique is the spread over the industry-specific benchmark yield curve. Generally, an increase or decrease in spreads would lead to directionally inverse movement in the fair value measurements of these securities. The significant unobservable input to the market comparable company valuation technique is the discount rate. Generally, a significant increase (decrease) in the discount rate would result in significantly lower (higher) fair value measurements of these securities.

•Residential mortgage-backed securities classified as Level 3 primarily consist of non-agency paper with low trading activity. Included in the tables above as of December 31, 2021 and December 31, 2020, there were no Level 3 securities that were determined by application of a matrix pricing model and for which the spread over the U.S. Treasury curve is the most significant unobservable input to the pricing result. Generally, a change in spreads would lead to directionally inverse movement in the fair value measurements of these securities.

•Asset-backed securities classified as Level 3 primarily consist of non-agency mortgage loan trust certificates, including subprime and Alt-A paper, credit risk transfer securities, and equipment financings. Included in the tables above as of December 31, 2021 and December 31, 2020, there were no securities that were determined by the application of matrix-pricing for which the spread over the U.S. Treasury curve is the most significant unobservable input to the pricing result. Significant increases (decreases) in spreads would have resulted in significantly lower (higher) fair value measurements.

Other Equity Investments

Included in other equity investments classified as Level 3 are venture capital securities in the Technology, Media and Telecommunications industries. The fair value measurements of these securities include significant unobservable inputs including an enterprise value to revenue multiples and a discount rate to account for liquidity and various risk factors. Significant increases (decreases) in the enterprise value to revenue multiple inputs in isolation would have resulted in a significantly higher (lower) fair value measurement. Significant increases (decreases) in the discount rate would have resulted in a significantly lower (higher) fair value measurement.

GMIB Reinsurance Contract Asset, Amounts Due from Reinsurers and GMxB Derivative Features

Significant unobservable inputs with respect to the fair value measurement of the Level 3 GMIB reinsurance contract asset and the Level 3 liabilities identified in the table above are developed using Company data.

The significant unobservable inputs used in the fair value measurement of the Company’s GMIB reinsurance contract asset are lapse rates, withdrawal rates, and GMIB utilization rates. Significant increases in GMIB utilization rates or decreases in lapse or withdrawal rates in isolation would tend to increase the GMIB reinsurance contract asset.

Fair value measurement of the GMIB reinsurance contract asset, GMIB NLG Reinsurance and liabilities includes dynamic lapse and GMIB utilization assumptions whereby projected contractual lapses and GMIB utilization reflect the projected net amount of risks of the contract. As the net amount of risk of a contract increases, the assumed lapse rate decreases and the GMIB utilization increases. Increases in volatility would increase the asset and liabilities.

The significant unobservable inputs used in the fair value measurement of the Company’s GMIBNLG liability and GMIB NLG Reinsurance are lapse rates, withdrawal rates, GMIB utilization rates, adjustment for non-performance risk and NLG forfeiture rates. NLG forfeiture rates are caused by excess withdrawals above the annual GMIB accrual rate that cause the NLG to expire. Significant decreases in lapse rates, NLG forfeiture rates, adjustment for non-

191

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

performance risk and GMIB utilization rates would tend to increase the GMIBNLG liability and GMIB NLG Reinsurance, while decreases in withdrawal rates and volatility rates would tend to decrease the GMIBNLG liability and GMIB NLG Reinsurance.

The significant unobservable inputs used in the fair value measurement of the Company’s GMWB and GWBL liability are lapse rates and withdrawal rates. Significant increases in withdrawal rates or decreases in lapse rates in isolation would tend to increase these liabilities. Increases in volatility would increase these liabilities.

Carrying Value of Financial Instruments Not Otherwise Disclosed in Note 3 and Note 4 of the Notes to these Consolidated Financial Statements

The carrying values and fair values as of December 31, 2021 and December 31, 2020 for financial instruments not otherwise disclosed in Note 3 and Note 4 of the Notes to these Consolidated Financial Statements are presented in the table below.

Carrying Values and Fair Values for Financial Instruments Not Otherwise Disclosed

	Carrying Value		Fair Value
			Level 1		Level 2		Level 3		Total
	(in millions)
December 31, 2021:
Mortgage loans on real estate	$	14,033	$	—	$	—	$	14,308	$	14,308
Policy loans	$	4,024	$	—	$	—	$	5,050	$	5,050
Policyholders’ liabilities: Investment contracts (3)	$	2,035	$	—	$	—	$	2,103	$	2,103
FHLB funding agreements	$	6,647	$	—	$	6,679	$	—	$	6,679
FABN funding agreements	$	6,689	$	—	$	6,626	$	—	$	6,626
Short-term and long-term debt (2)	$	3,839	$	—	$	4,544	$	—	$	4,544
Separate Accounts liabilities	$	11,620	$	—	$	—	$	11,620	$	11,620
December 31, 2020:
Mortgage loans on real estate	$	13,159	$	—	$	—	$	13,491	$	13,491
Policy loans (1)	$	4,118	$	—	$	—	$	5,352	$	5,352
Policyholders’ liabilities: Investment contracts (1)	$	2,198	$	—	$	—	$	2,416	$	2,416
FHLB funding agreements	$	6,897	$	—	$	6,990	$	—	$	6,990
FABN funding agreements	$	1,939	$	—	$	1,971	$	—	$	1,971
Short-term and long-term debt	$	4,115	$	—	$	5,065	$	—	$	5,065
Separate Accounts liabilities	$	10,081	$	—	$	—	$	10,081	$	10,081

_____________

(1)Excludes amounts reclassified as HFS.

(2)Excludes CLO short-term debt of $92 million which is inclusive as fair valued within Notes issued by consolidated VIE’s, at fair value using the fair value option.

(3) As of December 31, 2021, reflects transfer of certain policyholders account balances to future policyholder benefits and other policyholders liabilities related to structured settlement contracts.

Mortgage Loans on Real Estate

Fair values for commercial and agricultural mortgage loans on real estate are measured by discounting future contractual cash flows to be received on the mortgage loan using interest rates at which loans with similar characteristics and credit quality would be made. The discount rate is derived based on the appropriate U.S. Treasury rate with a like term to the remaining term of the loan to which a spread reflective of the risk premium associated with the specific loan is added. Fair values for mortgage loans anticipated to be foreclosed and problem mortgage loans are limited to the fair value of the underlying collateral, if lower.

192

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Policy Loans

The fair value of policy loans is calculated by discounting expected cash flows based upon the U.S. Treasury yield curve and historical loan repayment patterns.

Short-term and Long-term Debt

The Company’s short-term debt primarily includes commercial paper with short-term maturities and carrying value approximates fair value. The fair values for the Company’s long-term debt are determined by Bloomberg’s evaluated pricing service, which uses direct observations or observed comparables.

FHLB Funding Agreements

The fair values of the Company’s FHLB funding agreements are determined by discounted cash flow analysis based on the indicative funding agreement rates published by the FHLB.

FABN Funding Agreements

The fair values of Equitable Financial’s FABN funding agreements are determined by Bloomberg’s evaluated pricing service, which uses direct observations or observed comparables.

Policyholder Liabilities - Investment Contracts and Separate Accounts Liabilities

The fair values for deferred annuities and certain annuities, which are included in Policyholders’ account balances, and liabilities for investment contracts with fund investments in Separate Accounts, are estimated using projected cash flows discounted at rates reflecting current market rates. Significant unobservable inputs reflected in the cash flows include lapse rates and withdrawal rates. Incremental adjustments may be made to the fair value to reflect non-performance risk. Certain other products such as the Company’s association plans contracts, supplementary contracts not involving life contingencies, Access Accounts and Escrow Shield Plus product reserves are held at book value.

Financial Instruments Exempt from Fair Value Disclosure or Otherwise Not Required to be Disclosed

Exempt from Fair Value Disclosure Requirements

Certain financial instruments are exempt from the requirements for fair value disclosure, such as insurance liabilities other than financial guarantees and investment contracts, limited partnerships accounted for under the equity method and pension and other postretirement obligations.

Otherwise Not Required to be Included in the Table Above

The Company’s investment in COLI policies are recorded at their cash surrender value and are therefore not required to be included in the table above. See Note 2 of the Notes to these Consolidated Financial Statements for further description of the Company’s accounting policy related to its investment in COLI policies.

9)    INSURANCE LIABILITIES

Variable Annuity Contracts – GMDB, GMIB, GIB and GWBL and Other Features

The Company has certain variable annuity contracts with GMDB, GMIB, GIB and GWBL and other features in-force that guarantee one of the following:

•Return of Premium: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals);

•Ratchet: the benefit is the greatest of current account value, premiums paid (adjusted for withdrawals), or the highest account value on any anniversary up to contractually specified ages (adjusted for withdrawals);

•Roll-Up: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals) accumulated at contractually specified interest rates up to specified ages;

•Combo: the benefit is the greater of the ratchet benefit or the roll-up benefit, which may include either a five year or an annual reset; or

•Withdrawal: the withdrawal is guaranteed up to a maximum amount per year for life.

193

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Liabilities for Variable Annuity Contracts with GMDB and GMIB Features without NLG Rider Feature

The change in the liabilities for variable annuity contracts with GMDB and GMIB features and without a NLG feature are summarized in the tables below. The amounts for the direct contracts (before reinsurance ceded) and assumed contracts are reflected in the consolidated balance sheets in future policy benefits and other policyholders’ liabilities. The amounts for the ceded contracts are reflected in the consolidated balance sheets in amounts due from reinsurers. The amounts for the ceded GMIB that are reflected in the consolidated balance sheets in GMIB reinsurance contract asset are at fair value.

Change in Liability for Variable Annuity Contracts with GMDB and GMIB Features and No NLG Feature

Year Ended December 31, 2021, 2020 and 2019

	GMDB						GMIB
	Direct		Assumed		Ceded		Direct		Assumed		Ceded
	(in millions)
Balance, January 1, 2019	$	4,662	$	82	$	(113)	$	3,746	$	184	$	(1,733)
Paid guarantee benefits	(438)		(21)		14		(256)		7		72
Other changes in reserve	556		15		(5)		1,183		(4)		(478)
Balance, December 31, 2019	$	4,780	$	76	$	(104)	$	4,673	$	187	$	(2,139)
Paid guarantee benefits	(495)		(22)		15		(293)		15		79
Other changes in reserve	812		18		1		1,646		(6)		(428)
Balance, December 31, 2020	$	5,097	$	72	$	(88)	$	6,026	$	196	$	(2,488)
Paid guarantee benefits	(461)		(12)		113		(377)		(49)		58
Other changes in reserve	315		14		(65)		243		(7)		603
Impact of the Venerable Transaction (1) (2)	—		(74)		(2,176)		—		(140)		(2,141)
Balance, December 31, 2021	$	4,951	$	—	$	(2,216)	$	5,892	$	—	$	(3,968)

_____________

(1)Change in Assumed is driven by the sale of CSLRC to Venerable.

(2)Includes the impact as of June 1, 2021 on the ceded reserves to Venerable. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction.

Liabilities for Embedded and Freestanding Insurance Related Derivatives

The liability for the GMxB derivative features, the liability for SCS, SIO, MSO and IUL indexed features and the asset and liability for the GMIB reinsurance contracts and amounts due from reinsurers related to GMIB NLG product features (GMIB NLG Reinsurance) are considered embedded or freestanding insurance derivatives and are reported at fair value. For the fair value of the assets and liabilities associated with these embedded or freestanding insurance derivatives, see Note 8 of the Notes to these Consolidated Financial Statements.

Account Values and Net Amount at Risk

Account Values and NAR for direct variable annuity contracts in force with GMDB and GMIB features as of December 31, 2021 are presented in the following tables by guarantee type. For contracts with the GMDB feature, the NAR in the event of death is the amount by which the GMDB feature exceeds the related Account Values. For contracts with the GMIB feature, the NAR in the event of annuitization is the amount by which the present value of the GMIB benefits exceed the related Account Values, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. Since variable annuity contracts with GMDB features may also offer GMIB guarantees in the same contract, the GMDB and GMIB amounts listed are not mutually exclusive.

194

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Direct Variable Annuity Contracts with GMDB and GMIB Features

as of December 31, 2021

	Guarantee Type
	Return of Premium			Ratchet			Roll-Up			Combo			Total
	(in millions, except age and interest rate)
Variable annuity contracts with GMDB features
Account Values invested in:
General Account	$	16,188		$	84		$	51		$	156		$	16,479
Separate Accounts	59,819			9,860			3,412			34,486			107,577
Total Account Values	$	76,007		$	9,944		$	3,463		$	34,642		$	124,056
NAR, gross	$	90		$	30		$	1,333		$	15,732		$	17,185
NAR, net of amounts reinsured	$	86		$	26		$	937		$	7,948		$	8,997
Average attained age of policyholders (in years)	51.5			69.0			75.5			71.1			55.6
Percentage of policyholders over age 70	11.7		%	51.1		%	72.6		%	57.5		%	20.7		%
Range of contractually specified interest rates	N/A			N/A			3% - 6%			3% - 6.5%			3% - 6.5%
Variable annuity contracts with GMIB features
Account Values invested in:
General Account	$	—		$	—		$	16		$	202		$	218
Separate Accounts	—			—			26,443			36,833			63,276
Total Account Values	$	—		$	—		$	26,459		$	37,035		$	63,494
NAR, gross	$	—		$	—		$	632		$	9,093		$	9,725
NAR, net of amounts reinsured	$	—		$	—		$	202		$	3,708		$	3,910
Average attained age of policyholders (in years)	N/A			N/A			65.0			70.8			68.6
Weighted average years remaining until annuitization	N/A			N/A			6.0			0.6			2.7
Range of contractually specified interest rates	N/A			N/A			3% - 6%			3% - 6.5%			3% - 6.5%

For more information about the reinsurance programs of the Company’s GMDB and GMIB exposure, see Note 11 of the Notes to these Consolidated Financial Statements.

Separate Accounts Investments by Investment Category Underlying Variable Annuity Contracts with GMDB and GMIB Features

The total Account Values of variable annuity contracts with GMDB and GMIB features include amounts allocated to the guaranteed interest option, which is part of the General Account and variable investment options that invest through Separate Accounts in variable insurance trusts. The following table presents the aggregate fair value of assets, by major investment category, held by Separate Accounts that support variable annuity contracts with GMDB and GMIB features. The investment performance of the assets impacts the related Account Values and, consequently, the NAR associated with the GMDB and GMIB benefits and guarantees. Because the Company’s variable annuity contracts offer both GMDB and GMIB features, GMDB and GMIB amounts are not mutually exclusive.

Investment in Variable Insurance Trust Mutual Funds

195

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

	December 31,
	2021				2020
	GMDB		GMIB		GMDB		GMIB
Mutual Fund Type	(in millions)
Equity	$	52,771	$	20,015	$	46,850	$	18,771
Fixed income	5,391		2,507		5,506		2,701
Balanced	48,390		40,491		47,053		39,439
Other	1,025		263		1,111		275
Total	$	107,577	$	63,276	$	100,520	$	61,186

Hedging Programs for GMDB, GMIB, GIB and Other Features

The Company has a program intended to hedge certain risks associated first with the GMDB feature and with the GMIB feature of the Accumulator series of variable annuity products. The program has also been extended to cover other guaranteed benefits as they have been made available. This program utilizes derivative contracts, such as exchange-traded equity, currency and interest rate futures contracts, total return and/or equity swaps, interest rate swap and floor contracts, swaptions, variance swaps as well as equity options, that collectively are managed in an effort to reduce the economic impact of unfavorable changes in guaranteed benefits’ exposures attributable to movements in the capital markets. At the present time, this program hedges certain economic risks on products sold from 2001 forward, to the extent such risks are not externally reinsured.

These programs do not qualify for hedge accounting treatment. Therefore, gains (losses) on the derivatives contracts used in these programs, including current period changes in fair value, are recognized in net derivative gains (losses) in the period in which they occur, and may contribute to income (loss) volatility.

Variable and Interest-Sensitive Life Insurance Policies – NLG

The NLG feature contained in variable and interest-sensitive life insurance policies keeps them in force in situations where the policy value is not sufficient to cover monthly charges then due. The NLG remains in effect so long as the policy meets a contractually specified premium funding test and certain other requirements.

The change in the NLG liabilities, reflected in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets, is summarized in the table below.

	Direct Liability (1)
	Year Ended December 31,
	2021		2020		2019
	(in millions)
Beginning balance	$	1,022	$	898	$	813
Paid guarantee benefits	(84)		(39)		(20)
Other changes in reserves	158		163		127
Transfer to liabilities held-for-sale	—		—		$	(22)
Ending balance	$	1,096	$	1,022	$	898

_____________

(1)There were no amounts of reinsurance ceded in any period presented.

10)    LEASES

The Company's operating leases primarily consist of real estate leases for office space. The Company also has operating leases for various types of office furniture and equipment. For certain equipment leases, the Company applies a portfolio approach to effectively account for the RoU operating lease assets and liabilities. For lease agreements for which the lease term or classification was reassessed after the occurrence of a change in the lease terms or a modification of the lease that did not result in a separate contract, the Company elected to combine the lease and related non-lease components for its operating leases; however, the non-lease components associated with the Company’s operating leases are primarily variable in nature and as such are not included in the determination of the RoU operating lease asset and lease liability, but are recognized in the period in which the obligation for those payments is incurred.

196

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

The Company’s operating leases may include options to extend or terminate the lease, which are not included in the determination of the RoU operating asset or lease liability unless they are reasonably certain to be exercised. The Company's operating leases have remaining lease terms of 1 year to 15 years, some of which include options to extend the leases. The Company typically does not include its renewal options in its lease terms for calculating its RoU operating lease asset and lease liability as the renewal options allow the Company to maintain operational flexibility and the Company is not reasonably certain it will exercise these renewal options until close to the initial end date of the lease. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

As the Company's operating leases do not provide an implicit rate, the Company’s incremental borrowing rate, based on the information available at the lease commencement date, is used in determining the present value of lease payments.

The Company primarily subleases floor space within its New Jersey and New York lease properties to various third parties. The lease term for these subleases typically corresponds to the original lease term.

Balance Sheet Classification of Operating Lease Assets and Liabilities

		December 31,
	Balance Sheet Line Item	2021		2020
		(in millions)
Assets:
Operating lease assets	Other assets	$	637	$	691
Liabilities:
Operating lease liabilities	Other liabilities	$	768	$	855

The table below summarizes the components of lease costs for the years ended December 31, 2021, 2020 and 2019.

Lease Costs

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Operating lease cost	$	173	$	169	$	186
Variable operating lease cost	49		49		50
Sublease income	(55)		(56)		(72)
Short-term lease expense	—		—		2
Net lease cost	$	167	$	162	$	166

Maturities of lease liabilities as of December 31, 2021 are as follows:

Maturities of Lease Liabilities

	December 31, 2021
	(in millions)
Operating Leases:
2022	$	197
2023	183
2024	131
2025	60
2026	54
Thereafter	211
Total lease payments	836
Less: Interest	(68)
Present value of lease liabilities	$	768

197

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

During April 2019, AB signed a lease, which commences in 2024, relating to approximately 190,000 square feet of space in New York City. The estimated total base rent obligation (excluding taxes, operating expenses and utilities) over the 20 year lease term is approximately $448 million. During the fourth quarter of 2020, AB exercised an option to return a half floor of this space, which reduced the square footage from approximately 190,000 to 166,000 square feet and the base rent obligation from $448 million to $393 million.

During December 2020, Equitable Financial signed a 15-year lease which is expected to commence in 2023 once certain conditions of the lease are met, relating to approximately 130,000 square feet of space in New York City. In September 2021, Equitable Financial exercised its option to decrease the square footage under the lease by approximately 41,000 square feet, which reduced the square footage to approximately 89,000 square feet. Additionally, during December 2021, Equitable Financial amended its Syracuse office lease. The amendment included extending for an additional 5-year period, commencing January 1, 2024, approximately 143,000 square feet of space in Syracuse, NY.

The below table presents the Company’s weighted-average remaining operating lease term and weighted-average discount rate.

Weighted Averages - Remaining Operating Lease Term and Discount Rate

	December 31,
	2021		2020
Weighted-average remaining operating lease term	7 years		6 years
Weighted-average discount rate for operating leases	2.80	%	3.07	%

Supplemental cash flow information related to leases was as follows:

Lease Liabilities Information

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	209	$	210	$	222
Non-cash transactions:
Leased assets obtained in exchange for new operating lease liabilities	$	109	$	156	$	50

198

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

11)    REINSURANCE

The Company assumes and cedes reinsurance with other insurance companies. The Company evaluates the financial condition of its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. Ceded reinsurance does not relieve the originating insurer of liability.

The following table summarizes the effect of reinsurance. The impact of the transactions described above results in a decrease to reinsurance assumed and an increase in reinsurance ceded.

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Direct premiums	$	970	$	929	$	1,068
Reinsurance assumed	189		222		220
Reinsurance ceded	(199)		(154)		(141)
Premiums	$	960	$	997	$	1,147
Direct charges and fee income	$	4,250	$	4,149	$	4,197
Reinsurance ceded	(613)		(414)		(419)
Policy charges and fee income	$	3,637	$	3,735	$	3,778
Direct policyholders’ benefits	$	3,843	$	5,826	$	4,711
Reinsurance assumed	238		241		240
Reinsurance ceded	(863)		(741)		(566)
Policyholders’ benefits	$	3,218	$	5,326	$	4,385
Direct interest credited to policyholders’ account balances	$	1,271	$	1,252	$	1,322
Reinsurance ceded	(52)		(30)		(59)
Interest credited to policyholders’ account balances	$	1,219	$	1,222	$	1,263

Ceded Reinsurance

The Company reinsures most of its new variable life, UL and term life policies on an excess of retention basis. The Company generally retains on a per life basis up to $25 million for single lives and $30 million for joint lives with the excess 100% reinsured. The Company also reinsures risk on certain substandard underwriting risks and in certain other cases.

On June 1, 2021, Holdings completed the sale of CSLRC to VIAC. Immediately following the closing of the Transaction, CSLRC and Equitable Financial entered into the Reinsurance Agreement, pursuant to which Equitable Financial ceded to CSLRC, on a combined coinsurance and modified coinsurance basis, legacy variable annuity policies sold by Equitable Financial between 2006-2008. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction.

As of December 31, 2021 and December 31, 2020, the Company had reinsured with non-affiliates in the aggregate approximately 47.6% and 2.6%, respectively, of its current exposure to the GMDB obligation on annuity contracts in-force and, subject to certain maximum amounts or caps in any one period, approximately 59.8% and 13.4% of its current liability exposure, respectively, resulting from the GMIB feature. For additional information, see Note 9 of the Notes to these Consolidated Financial Statements.

In addition to the above, the Company cedes substantially all of its group health business to a third-party insurer, cedes a portion of its extended term insurance and paid-up life insurance and substantially all of its individual disability income business through various coinsurance agreements.

Assumed Reinsurance

In addition to the sale of insurance products, the Company currently assumes risk from professional reinsurers. The Company also had a run-off portfolio of assumed reinsurance liabilities at CSLRC which was sold to Venerable in June

199

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

2021. The Company assumes accident, life, health, annuity (including products covering GMDB and GMIB benefits), aviation, special risk and space risks by participating in or reinsuring various reinsurance pools and arrangements.

The following table summarizes the ceded reinsurance GMIB reinsurance contracts, third-party recoverables, amount due to reinsurance and assumed reserves.

	December 31,
	2021		2020
	(in millions)
Ceded Reinsurance:
Estimated net fair values of ceded GMIB reinsurance contracts, considered derivatives (1)	$	1,848	$	2,488
Estimated net fair values of ceded GMIB NLG ceded reserves to Venerable (2)	5,813		—
Third-party reinsurance recoverables related to insurance contracts	14,679		4,566
Top reinsurers:
Venerable Insurance and Annuity Company (A- KBRA (IFRS) rating)	10,291		N/A
Zurich Life Insurance Company, Ltd. (AA- SAP rating)	1,318		1,421
Protective Life Insurance Company (AA- SAP rating)	1,153		1,184
RGA Reinsurance Company (AA- SAP rating))	1,138		1,143
Ceded group health reserves	40		48
Amount due to reinsurers	1,381		1,381
Top reinsurers:
RGA Reinsurance Company	1,212		1,135
Protective Life Insurance Company	111		116
Venerable Insurance and Annuity Company	27		N/A
Assumed Reinsurance:
Reinsurance assumed reserves	798		788
Estimated net fair values of assumed GMIB reserves (3)	—		195

______________

(1)The estimated fair values increased/(decreased) $(640) million, $349 million and $407 million for the years ended December 31, 2021, 2020 and 2019, respectively.

(2)Reported in amounts due from reinsurers. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable transaction.

(3)Change in Reinsurance assumed reserves is driven by the sale of CSLRC to Venerable.

200

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

12)    SHORT-TERM AND LONG-TERM DEBT

The following table sets forth the Company’s total consolidated borrowings. Short-term and long-term debt consists of the following:

	December 31,
	2021		2020
	(in millions)
Short-term debt:
CLO Warehousing Debt (1)	$	92	$	—
Total short-term debt	92		—
Long-term debt:
Senior Notes (5.0%, due 2048)	1,481		1,481
Senior Notes (4.35%, due 2028)	1,490		1,489
Senior Notes (3.9%, due 2023)	519		796
Senior Debentures, (7.0%, due 2028)	349		349
Total long-term debt	3,839		4,115
Total short-term and long-term debt	$	3,931	$	4,115

(1) CLO Warehousing Debt related to VIE consolidation of CLO investment.

As of December 31, 2021, the Company is in compliance with all debt covenants.

Short-term Debt

AB Commercial Paper

As of December 31, 2021 and December 31, 2020, AB had no commercial paper outstanding. The commercial paper is short term in nature, and as such, recorded value is estimated to approximate fair value (and considered a Level 2 security in the fair value hierarchy). Average daily borrowings for the commercial paper outstanding in 2021 were $157 million with a weighted average interest rate of 0.2%. Average daily borrowings for the commercial paper in 2020 were $83 million with a weighted average interest rate of 0.4%.

AB Revolver Credit Facility

AB has a $200 million committed, unsecured senior revolving credit facility (the "AB Revolver") with a leading international bank, which matured on November 16, 2021. The Revolver is available for AB's and SCB LLC's business purposes, including the provision of additional liquidity to meet funding requirements primarily related to SCB LLC's operations. Both AB and SCB LLC were able to draw directly under the Revolver and management did so from time to time. AB agreed to guarantee the obligations of SCB LLC under the Revolver. The Revolver contains affirmative, negative and financial covenants that were identical to those of the Credit Facility. Borrowings under the Revolver bear interest at a rate per annum, which could be, at AB's option, a rate equal to an applicable margin, which was subject to adjustment based on the credit ratings of AB, plus one of the following indices: London Interbank Offered Rate; a floating base rate; or the Federal Funds rate. As of December 31, 2021 and December 31, 2020, AB had no amounts outstanding under the AB Revolver. Average daily borrowings for 2021 and 2020 were $13 million and $17 million, with weighted average interest rates of 1.1% and 1.6%, respectively.

Long-term Debt

Holdings Senior Notes and Senior Debentures

On April 20, 2018, Holdings issued $800 million aggregate principal amount of 3.9% Senior Notes due 2023, $1.5 billion aggregate principal amount of 4.35% Senior Notes due 2028 and $1.5 billion aggregate principal amount of 5.0% Senior Notes due 2048 (together, the “Notes”). These amounts are recorded net of original issue discount and issuance costs. As of December 31, 2021 and 2020, the 3.9% Senior Notes due 2023 and 4.35% Senior Notes due 2028 remain outstanding. During 2021 Holdings made a principal prepayment of $280 million on the 3.9% Senior Notes due 2023,

201

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

As of December 31, 2021 and 2020, Holdings had outstanding $349 million aggregate principal amount of 7.0% Senior Debentures due 2028 (the “Senior Debentures”). On October 1, 2018, AXA Financial merged with and into its direct parent, Holdings, with Holdings continuing as the surviving entity( the “AXA Financial Merger”). As a result of the AXA Financial merger, Holdings assumed AXA Financial’s obligations under the Senior Debentures.

The Notes and Senior Debentures contain customary affirmative and negative covenants, including a limitation on certain liens and a limit on the Company’s ability to consolidate, merge or sell or otherwise dispose of all or substantially all of its assets. The Notes and Senior Debentures also include customary events of default (with customary grace periods, as applicable), including provisions under which, upon the occurrence of an event of default, all outstanding Notes and Senior Debentures may be accelerated. As of December 31, 2021, the Company was not in breach of any of the covenants.

Contingent Funding Arrangements

For information regarding activity pertaining to our contingent funding arrangements, see Note 17 of the Notes to these Consolidated Financial Statements.

Credit Facilities

Holdings Revolving Credit Facility

In February 2018, Holdings entered into a $2.5 billion five-year senior unsecured revolving credit facility with a syndicate of banks. In June 2021, Holdings entered into an amended and restated revolving credit agreement, which lowered the facility amount to $1.5 billion and extended the maturity date to June 24, 2026, among other changes. The revolving credit facility has a sub-limit of $1.5 billion for the issuance of letters of credit to support the life insurance business reinsured by EQ AZ Life Re. As of December 31, 2021, the Company had $0 million of undrawn letters of credit issued out of the $1.5 billion sub-limit for Equitable Financial as beneficiary.

Bilateral Letter of Credit Facilities

In February 2018, the Company entered into bilateral letter of credit facilities, each guaranteed by Holdings, with an aggregate principal amount of approximately $1.9 billion, with multiple counterparties. In June 2021, Holdings entered into amendments with each of the issuers of its bilateral letter of credit facilities to effect changes similar to those effected in the amended and restated revolving credit agreement. The respective facility limits of the bilateral letter of credit facilities remained unchanged. These facilities support the life insurance business reinsured by EQ AZ Life Re. The HSBC facility matures on February 16, 2024 and the rest of the facilities mature on February 16, 2026.

AB Credit Facility

AB has a $800 million committed, unsecured senior revolving credit facility (the “AB Credit Facility”) with a group of commercial banks and other lenders which had an original maturity date of September 27, 2023. On October 13, 2021 AB amended and restated the existing Credit Facility agreement, extending the maturity date from September 27, 2023 to October 13, 2026. There were no other significant changes included in the amendment.

The credit facility provides for possible increases in the principal amount by up to an aggregate incremental amount of $200 million. Any such increase is subject to the consent of the affected lenders. The AB Credit Facility is available for AB and SCB LLC for business purposes, including the support of AB’s commercial paper program. Both AB and SCB LLC can draw directly under the AB Credit Facility and AB management may draw on the AB Credit Facility from time to time. AB has agreed to guarantee the obligations of SCB LLC under the AB Credit Facility.

The AB Credit Facility contains affirmative, negative and financial covenants, which are customary for facilities of this type, including, restrictions on dispositions of assets, restrictions on liens, a minimum interest coverage ratio and a maximum leverage ratio. As of December 31, 2021, AB was in compliance with these covenants. The AB Credit Facility also includes customary events of default (with customary grace periods, as applicable), including provisions under which, upon the occurrence of an event of default, all outstanding loans may be accelerated and/or lender’s commitments may be terminated. Also, under such provisions, upon the occurrence of certain insolvency- or bankruptcy-related events of default, all amounts payable under the AB Credit Facility would automatically become immediately due and payable, and the lender’s commitments would automatically terminate.

202

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Amounts under the Credit Facility may be borrowed, repaid and re-borrowed by us from time to time until the maturity of the facility. Voluntary prepayments and commitment reductions requested by AB are permitted at any time without a fee (other than customary breakage costs relating to the prepayment of any drawn loans) upon proper notice and subject to a minimum dollar requirement. Borrowings under the AB Credit Facility bear interest at a rate per annum, which will be, at AB’s option, a rate equal to an applicable margin, which is subject to adjustment based on the credit ratings of AB, plus one of the following indices: LIBOR; a floating base rate; or the Federal Funds rate.

As of December 31, 2021 and 2020, AB had no amounts outstanding under the AB Credit Facility. During the years ended the December 31, 2021 and 2020, AB and SCB LLC did not draw upon the AB Credit Facility.

On September 28, 2021, AB established a $100 million uncommitted line of credit with a financial institution. On October 11, 2021 AB established a $50 million uncommitted line of credit with a financial institution. Both uncommitted lines of credit are available for AB's and SCB LLC's business purposes. Both AB and SCB LLC can draw directly under these lines. AB has agreed to guarantee the obligations of SCB LLC under these lines of credit. As of December 31, 2021 , AB had no amounts outstanding under these lines of credit and not drawn upon them since their inception.

In addition, SCB LLC currently has three uncommitted lines of credit with three financial institutions. Two of these lines of credit permit borrowing up to an aggregate of approximately $165 million, with AB named as an additional borrower, while the other line has no stated limit. As of December 31, 2021 and 2020, SCB LLC had no outstanding balance on these lines of credit. Average daily borrowings of bank loans during 2021 and 2020 were $47 thousand and $1 million, respectively, with weighted average interest rates of approximately 0.9% and 1.6%, respectively.

13)    RELATED PARTY TRANSACTIONS

Parties are considered to be related if one party has the ability to control or exercise significant influence over the other party in making financial or operating decisions.

Investment Management and Administrative Services Provided by EIM and EIMG to Related Trusts

EIMG and EIM provide investment management and administrative services to EQAT, EQ Premier VIP Trust, 1290 Funds and the Other AXA Trusts, all of which are considered related parties. Investment management and service fees earned are calculated as a percentage of assets under management and are recorded as revenue as the related services are performed.

Investment Management and Related Services Provided by AB to Related Mutual Funds

AB provides investment management and related services to mutual funds sponsored by AB. Revenues earned by AB from providing these services were as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Investment management and services fees	$	1,645	$	1,368	$	1,276
Distribution revenues	637		516		441
Other revenues - shareholder servicing fees	86		79		75
Other revenues - other	8		8		7
Total	$	2,376	$	1,971	$	1,799

203

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Revenues and Expenses Transactions with Equitable Affiliates

The table below summarizes the expenses reimbursed to/from the Company and the fees received/paid by the Company in connection with certain services described above for the years ended December 31, 2021, 2020 and 2019.

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Revenue received or accrued for:
Investment management and administrative services provided to EQAT, EQ Premier VIP Trust, 1290 Funds and Other AXA Trusts	$	840	$	724	$	732
Total	$	840	$	724	$	732
Expenses paid or accrued for:
Investment management services provided by AXA Strategic Ventures Corporation	$	2	$	2	$	2
Total	$	2	$	2	$	2

Contribution to the Equitable Foundation

The company made no funding contributions the years ended 2021 and 2020. For the year ended December 31, 2019, Equitable Financial made a funding contribution to the Equitable Foundation of $25 million. The Equitable Foundation is the philanthropic arm of Equitable Financial.

14)    EMPLOYEE BENEFIT PLANS

Pension Plans

Holdings and Equitable Financial Retirement Plans

Equitable Financial sponsors the Equitable 401(k) Plan, a qualified defined contribution plan for eligible employees and financial professionals. The plan provides for a company contribution, a company matching contribution, and a discretionary profit-sharing contribution. Expenses associated with this 401(k) Plan were $64 million, $49 million and $55 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Holdings sponsors the MONY Life Retirement Income Security Plan for Employees and Equitable Financial sponsors the Equitable Retirement Plan (the “ Equitable Financial QP”), both of which are frozen qualified defined benefit plans covering eligible employees and financial professionals. These pension plans are non-contributory, and their benefits are generally based on a cash balance formula and/or, for certain participants, years of service and average earnings over a specified period. Holdings and Equitable Financial also sponsor certain nonqualified defined benefit plans, including the Equitable Excess Retirement Plan, that provide retirement benefits in excess of the amount permitted under the tax law for the qualified plans. Holdings has assumed primary liability for both plans. Equitable Financial remains secondarily liable for its obligations under the Equitable Financial QP and would recognize such liability in the event Holdings does not perform.

Holdings and Equitable Financial use a December 31 measurement date for their pension plans.

AB Retirement Plans

AB maintains the Profit Sharing Plan for Employees of AB, a tax-qualified retirement plan for U.S. employees. Employer contributions under this plan are discretionary and generally are limited to the amount deductible for federal income tax purposes.

AB also maintains a qualified, non-contributory, defined benefit retirement plan covering current and former employees who were employed by AB in the United States prior to October 2, 2000 (the “AB Plan”). Benefits under the AB Plan are based on years of credited service, average final base salary, and primary Social Security benefits.

AB uses a December 31 measurement date for the AB Plan.

204

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Contributions and Funding Policy

The Company’s funding policy for its qualified pension plans is to satisfy its funding obligations each year in an amount not less than the minimum required by ERISA, as amended by the Pension Act, and not greater than the maximum the Company can deduct for federal income tax purposes. For 2021, no cash contributions were made by Holdings or Equitable Financial to their respective qualified pension plans. Based on the funded status of the plans as of December 31, 2020, AB contributed $4 million to the AB Plan during 2021. AB currently estimates that it will not contribute to the AB Plan during 2022. No minimum funding contributions under ERISA are required to be made to the Holdings and Equitable Financial plans, and management does not expect to make any discretionary contributions to those plans during 2022.

Net Periodic Pension Expense

Components of net periodic pension expense for the Company’s qualified and non-qualified plans were as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Service cost	$	6	$	6	$	8
Interest cost	46		77		104
Expected return on assets	(154)		(147)		(152)
Actuarial (gain) loss	1		1		1
Net amortization	99		103		94
Impact of settlement	6		7		—
Net periodic pension expense	$	4	$	47	$	55

Changes in PBO

Changes in the PBO of the Company’s qualified and non-qualified plans were comprised of:

	2021		2020
	(in millions)
Projected benefit obligation, beginning of year	$	3,180	$	3,056
Service cost	—		—
Interest cost	45		77
Actuarial (gains)/losses (1)	(95)		272
Benefits paid	(198)		(203)
Plan amendments and curtailments	—		—
Settlements	(32)		(22)
Projected benefit obligation, end of year	$	2,900	3,180

______________

(1)Actuarial gains and losses are a product of changes in the discount rate as shown below.

The following table discloses the change in plan assets and the funded status of the Company’s qualified pension plans and non-qualified pension plans:

205

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

	2021		2020
	(in millions)
Pension plan assets at fair value, beginning of year	$	2,744	$	2,552
Actual return on plan assets	259		373
Contributions	—		—
Benefits paid	(165)		(165)
Annuity purchases	(30)		(16)
Pension plan assets at fair value, end of year	2,808		2,744
PBO	2,900		3,180
Excess of PBO over pension plan assets, end of year	$	92	$	436

Accrued pension costs of $93 million and $436 million as of December 31, 2021 and 2020, respectively, were recognized in the accompanying consolidated balance sheets to reflect the unfunded status of these plans.

	December 31,
	2021		2020
	(in millions)
Projected benefit obligation	$	2,900	$	3,180
Accumulated benefit obligation	2,900		3,180
Fair value of plan assets	$	2,808	$	2,744

Unrecognized Net Actuarial (Gain) Loss

The following table discloses the amounts included in AOCI as of December 31, 2021 and 2020 that have not yet been recognized as components of net periodic pension cost.

	December 31,
	2021		2020
	(in millions)
Unrecognized net actuarial (gain) loss	$	620	$	895
Unrecognized prior service cost (credit)	(1)		(1)
Unrecognized net transition obligation (asset)	—		—
Total	$	619	$	894

Pension Plan Assets

The fair values of qualified pension plan assets are measured and ascribed to levels within the fair value hierarchy in a manner consistent with the fair values of the Company’s invested assets that are measured at fair value on a recurring basis. See Note 8 of the Notes to these Consolidated Financial Statements for a description of the fair value hierarchy.

The following table discloses the allocation of the fair value of total qualified pension plan assets as of December 31, 2021 and 2020:

	December 31,
	2021		2020
Fixed maturities	47.2	%	47.2	%
Equity securities	29.7		32.1
Equity real estate	16.5		14.7
Cash and short-term investments	2.5		1.7
Other	4.1		4.3
Total	100.0	%	100.0	%

206

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Qualified pension plan assets are invested with the primary objective of return, giving consideration to prudent risk. Guidelines regarding the allocation of plan assets are established by the respective Investment Committees for the plans and are designed with a long-term investment horizon. As of December 31, 2021, the qualified pension plans continued their investment allocation strategy to target a [50%- 50%] mix of long-duration bonds and “return-seeking” assets, including public equities, real estate, hedge funds, and private equity.

The following tables disclose the fair values of qualified pension plan assets and their level of observability within the fair value hierarchy as of December 31, 2021 and 2020, respectively.

	Level 1		Level 2		Level 3		Total
	(in millions)
December 31, 2021:
Fixed Maturities:
Corporate	$	—	$	842	$	—	$	842
U.S. Treasury, government and agency	—		426		—		426
States and political subdivisions	—		16		—		16
Foreign governments	—		18		—		18
Commercial mortgage-backed	—		—		—		—
Common equity, REITs and preferred equity	576		108		—		684
Mutual funds	62		—		—		62
Collective Trust	—		99		—		99
Derivatives, net	—		—		—		—
Cash and cash equivalents	19		—		—		19
Short-term investments	—		46		—		46
Total Assets at Fair Value	657		1,555		—		2,212
Investments measured at NAV	—		—		—		593
Total Investments at Fair Value	$	657	$	1,555	$	—	$	2,805
December 31, 2020:
Fixed Maturities:
Corporate	—		$	831	$	—	$	831
U.S. Treasury, government and agency	—		412		—		412
States and political subdivisions	—		16		—		16
Foreign governments	—		14		—		14
Commercial mortgage-backed	—		1		—		1
Common equity, REITs and preferred equity	622		113		—		735
Mutual funds	63		—		—		63
Collective Trust	—		98		—		98
Cash and cash equivalents	23		—		—		23
Short-term investments	—		21		—		21
Total Assets at Fair Value	708		1,506		—		2,214
Investments measured at NAV	—		—		—		536
Total Investments at Fair Value	$	708	$	1,506	$	—	$	2,750

The following table lists investments for which NAV is calculated; NAV is used as a practical expedient to determine the fair value of these investments as of December 31, 2021 and 2020.

207

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Practical Expedient Disclosure as of December 31, 2021 and 2020

Investment	Fair Value		Redemption Frequency (If currently eligible)	Redemption Notice Period	Unfunded Commitments
	(in millions)
December 31, 2021:
Private Equity Fund	$	72	N/A (1) (2)	N/A	$	19
Private Real Estate Investment Trust	457		Quarterly	One Quarter	—
Hedge Fund	65		Calendar Quarters (3)	Previous Quarter End	$	5
Total (4)	$	594
December 31, 2020:
Private Equity Fund	$	69	N/A (1)(2)	N/A	$	21
Private Real Estate Investment Trust	397		Quarterly	One Quarter	—
Hedge Fund	69		Calendar Quarters (3)	Previous Quarter End	$	4
Total (4)	$	535

_______________

(1)Cannot sell or transfer ownership interest without prior written consent to transfer, and by meeting several criteria (e.g., does not adversely affect other investors).

(2)Cannot sell interest in the vehicle without prior written consent of the managing member.

(3)March, June, September and December.

(4)Includes equity method investments of $109 million and $110 million as of December 31, 2021 and 2020, respectively.

The table below presents a reconciliation for all Level 3 fair values of qualified pension plan assets as of December 31, 2021, 2020 and 2019, respectively:

Level 3 Instruments

Fair Value Measurements

	Private Real Estate Investment Trusts		Other Equity Investments		Fixed Maturities
	(in millions)
Balance, January 1, 2021	$	—	$	—	$	—
Actual return on plan assets — Sales/Settlements	—		—		(1)
Balance, December 31, 2021	$	—	$	—	$	(1)
Balance, January 1, 2020	$	—	$	—	$	1
Actual return on plan assets — Sales/Settlements	—		—		(1)
Balance, December 31, 2021	$	—	$	—	$	—
Balance, January 1, 2019	$	—	$	—	$	2
Actual return on plan assets — Sales/Settlements	—		—		(1)
Balance, December 31, 2019	$	—	$	—	$	1

As of December 31, 2021, assets classified as Level 1, Level 2 and Level 3 comprise approximately 23.4%, 55.4% and 0.0%, respectively, of qualified pension plan assets. As of December 31, 2020, assets classified as Level 1, Level 2 and Level 3 comprised approximately 25.7%, 54.8% and 0.0%, respectively, of qualified pension plan assets. There are no significant concentrations of credit risk arising within or across categories of qualified pension plan assets.

In addition to the plan assets above, the Company and certain subsidiaries purchased COLI policies on the lives of certain key employees. Under the terms of these polices the Company and these subsidiaries are named as beneficiaries. The purpose of the COLI policies is to provide the Company additional funds with which to satisfy various employee benefit obligations held by the Company, including those associated with its nonqualified defined benefit plans and post-retirement benefit plans. As of December 31, 2021 and 2020, the carrying value of COLI was $1.01 billion and $992 million, respectively.

208

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Assumptions

Discount Rate    

The benefits obligations and related net periodic costs of the Company’s qualified and non-qualified pension plans are measured using discount rate assumptions that reflect the rates at which the plans’ benefits could be effectively settled. Projected nominal cash outflows to fund expected annual benefits payments under each of the plans are discounted using a published high-quality bond yield curve as a practical expedient for a matching bond approach. Beginning in 2014, the Company uses the Citigroup Pension Above-Median-AA Curve (the “Citigroup Curve”) for this purpose. The Company has concluded that an adjustment to the Citigroup Curve is not required after comparing the projected benefit streams of the plans to the cash flows and duration of the reference bonds.

Mortality

In October 2016, the Society of Actuaries (“SOA”) released MP-2016, its second annual update to the “gold standard” mortality projection scale issued by the SOA in 2014, reflecting three additional years of historical U.S. population historical mortality data (2012 through 2014). Similar to its predecessor (MP-2015), MP-2016 indicated that, while mortality data continued to show longer lives, longevity was increasing at a slower rate and lagging behind that previously suggested both by MP-2015 and MP-2014. The Company considered this new data as well as observations made from current practice regarding how to best estimate improved trends in life expectancies and concluded to continue using the RP-2000 base mortality table projected on a full generational basis with Scale BB mortality improvements for purposes of measuring and reporting its consolidated defined benefit plan obligations as of December 31, 2021.

The following table discloses assumptions used to measure the Company’s pension benefit obligations and net periodic pension cost at and for the years ended December 31, 2021 and 2020.

	December 31,
	2021	2020
Discount rates:
Equitable Financial QP	2.55%	2.11%
Equitable Excess Retirement Plan	2.47%	1.99%
MONY Life Retirement Income Security Plan for Employees	2.78%	2.43%
AB Qualified Retirement Plan	2.55%	3.35%
Other defined benefit plans	2.05%-2.78%	1.46%-2.43%
Periodic cost	1.18%-2.78%	0.51%-2.43%
Cash balance interest crediting rate for pre-April 1, 2012 accruals	4.00%	4.00%
Cash balance interest crediting rate for post-April 1, 2012 accruals	0.50%	2.25%
Rates of compensation increase:
Benefit obligation	5.97%	5.99%
Periodic cost	6.33%	6.32%
Expected long-term rates of return on pension plan assets (periodic cost)	6.25%	6.25%

The expected long-term rate of return assumption on plan assets is based upon the target asset allocation of the plan portfolio and is determined using forward-looking assumptions in the context of historical returns and volatilities for each asset class. Prior to 1987, participants’ benefits under the Equitable Financial QP were funded through the purchase of non-participating annuity contracts from Equitable Financial. Benefit payments under these contracts were approximately $4 million and $5 million for 2021 and 2020, respectively.

Post-Retirement Benefits

The Company eliminated any subsidy for post-retirement medical and dental coverage for individuals retiring on or after May 1, 2012. The Company continues to contribute to the cost of post-retirement medical and dental coverage for certain individuals who retired prior to May 1, 2012 based on years of service and age, subject to rights reserved in the

209

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

plans to change or eliminate these benefits. The Company funds these post-retirement benefits on a pay-as-you-go basis.

The Company sponsors the Equitable Executive Survivor Benefits Plan (the “ESB Plan”) which provides post-retirement life insurance benefits to eligible executives. Eligible executives may choose up to four levels of coverage with each level providing a benefit equal to the executive’s compensation, subject to an overall $25 million cap. Aside from the ESB Plan, the Company does not currently offer post-retirement life insurance benefits but continues to provide post-retirement life insurance benefits to certain active and retired employees who were eligible for such benefits under discontinued plans. The ESB Plan was closed to new participants on January 1, 2019.

For 2021 and 2020, post-retirement benefits payments were $28 million and $24 million, respectively, net of employee contributions.

The Company uses a December 31 measurement date for its post-retirement plans.

Components of Net Post-Retirement Benefits Costs

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Service cost	$	2	$	2	$	1
Interest cost	8		13		18
Net amortization	9		9		6
Net periodic post-retirement benefits costs	$	19	$	24	$	25

Changes in the accumulated benefits obligation of the Company’s post-retirement plans recognized in the accompanying consolidated financial statements are described in the following table:

Accumulated Post-Retirement Benefits Obligation

	December 31,
	2021		2020
	(in millions)
Accumulated post-retirement benefits obligation, beginning of year	$	516	$	517
Service cost	2		2
Interest cost	8		13
Contributions and benefits paid	(28)		(24)
Plan amendments/curtailments	—		(30)
Actuarial (gains) losses	(32)		38
Accumulated post-retirement benefits obligation, end of year	$	466	$	516

The post-retirement medical plan obligations of the Company are offset by an anticipated subsidy from Medicare Part D, which is assumed to increase with the healthcare cost trend.

Assumed Healthcare Cost Trend Rates used to Measure the Expected Cost of Benefits

	December 31,
	2021	2020
Following year	5.1%	5.6%
Ultimate rate to which cost increase is assumed to decline	4.0%	4.0%
Year in which the ultimate trend rate is reached	2094	2095

The following table discloses the amounts included in AOCI as of December 31, 2021 and 2020 that have not yet been recognized as components of net periodic post-retirement benefits cost:

210

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

	December 31,
	2021		2020
	(in millions)
Unrecognized net actuarial (gains) losses	$	135	$	186
Unrecognized prior service (credit)	(26)		(29)
Total	$	109	$	157

The assumed discount rates for measuring the post-retirement benefit obligations as of December 31, 2021 and 2020 were determined in substantially the same manner as described above for measuring the pension benefit obligations. The following table discloses the range of discrete single equivalent discount rates and related net periodic cost at and for the years ended December 31, 2021 and 2020.

	December 31,
	2021	2020
Discount rates:
Benefit obligation	2.43%-2.72%	1.97%-2.38%
Periodic cost	2.34%-2.52%	2.80%-3.16%

The Company provides post-employment medical and life insurance coverage for certain disabled former employees. The accrued liabilities for these post-employment benefits were $3 million and $3 million, respectively, as of December 31, 2021 and 2020. Components of net post-employment benefits costs follow:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Service cost	$	1	$	1	$	1
Interest cost	—		—		—
Net amortization	—		(5)		—
Net (gain) loss	—		—		(1)
Net periodic post-employment benefits costs	$	1	$	(4)	$	1

The following table provides an estimate of future benefits expected to be paid in each of the next five years, beginning January 1, 2022, and in the aggregate for the five years thereafter. These estimates are based on the same assumptions used to measure the respective benefit obligations as of December 31, 2021 and include benefits attributable to estimated future employee service.

			Postretirement Benefits
					Health
Calendar Year	Pension Benefits		Life Insurance		Gross Estimate Payment		Estimated Medicare Part D Subsidy		Net Estimate Payment
	(in millions)
2022	$	211,168	$	—	$	—	$	—	$	—
2023	$	250,713	$	—	$	—	$	—	$	—
2024	$	200,447	$	—	$	—	$	—	$	—
2025	$	196,067	$	—	$	—	$	—	$	—
2026	$	186,582	$	—	$	—	$	—	$	—
Years 2027 — 2030	$	2,453,131	$	—	$	—	$	—	$	—

Effective December 31, 2020, the current health plan coverages through the Equitable Retiree Group Health Plan were terminated. Medicare-eligible retirees and their Medicare-eligible dependents were given the opportunity to elect a Medicare

211

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

plan through the Aon Retiree Health Exchange effective January 1, 2021 and certain eligible retirees were offered a retiree health reimbursement account contribution to help pay for premiums and out-of-pocket expenses. Pre-65 retirees and their pre-65 dependents were given the opportunity to elect health coverage under the Aon Active Health Exchange effective January 1, 2021. Even though the effective date of the change in benefits doesn’t commence until January 1, 2021, the effect of the amendment must be recognized immediately and is reflected in the measurement of the accumulated postretirement benefit obligations as of December 31, 2020.

15)    SHARE-BASED COMPENSATION PROGRAMS

Compensation costs for 2021, 2020 and 2019 for share-based payment arrangements as further described herein are as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Performance Shares	$	17	$	11	$	29
Stock Options	—		7		4
Restricted Stock Units	257		234		243
Total compensation expenses	$	274	$	252	$	276
Income Tax Benefit	$	58	52		62

Since 2018, Holdings has granted equity awards under the Equitable Holdings, Inc. 2018 Omnibus Incentive Plan and the Equitable Holdings, Inc. 2019 Omnibus Incentive Plan (together the “Omnibus Plans”) which were adopted by Holdings on April 25, 2018 and February 28, 2019 respectively. Awards under the Omnibus Plans are linked to Holdings’ common stock. As of December 31, 2021, the common stock reserved and available for issuance under the Omnibus Plans was 22 million shares. Holdings may issue new shares or use common stock held in treasury for awards linked to Holdings’ common stock.

Retirement and Protection

Equity awards for R&P employees, financial professionals and directors in 2021, 2020 and 2019 were granted under the Omnibus Plans with the exception of the Holdings restricted stock units (“Holdings RSUs”) granted to financial professionals in 2018. All grants discussed in this section will be settled in shares of Holdings’ common stock except for the RSUs granted to financial professionals in 2019 and 2018 which will be settled in cash.

For awards with graded vesting schedules and service-only vesting conditions, including Holdings RSUs and other forms of share-based payment awards, the Company applies a straight-line expense attribution policy for the recognition of compensation cost. Actual forfeitures with respect to the 2021, 2020, and 2019 grants were considered immaterial in the recognition of compensation cost.

Annual Awards

Each year, the Compensation Committee of the Holdings’ Board of Directors approves an equity-based award program with awards under the program granted at its regularly scheduled meeting in February. Annual awards under Holdings’ equity programs for 2021, 2020 and 2019 consisted of a mix of equity vehicles including Holdings RSUs, Holdings stock options and Holdings performance shares. If Holdings pays any ordinary dividend in cash, all outstanding Holdings RSUs and performance shares will accrue dividend equivalents in the form of additional Holdings RSUs or performance shares to be settled or forfeited consistent with the terms of the related award.

Holdings RSUs

Holdings RSUs granted to R&P employees under an annual program vest ratably in equal annual installments over a three-year period. The fair value of the awards was measured using the closing price of the Holdings share on the grant date, and the resulting compensation expense will be recognized over the shorter of the vesting term or the period up to the date at which the participant becomes retirement eligible, but not less than one year.

Under the 2020 equity program, eligible R&P financial professionals were granted stock-settled Holdings RSUs which vest ratably in equal annual installments over a three-year period and are equity-classified. The fair value of these awards was measured using the closing price of the Holdings share on the grant date, and the resulting compensation

212

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

expense will be recognized over the shorter of the vesting term or the period up to the date at which the participant becomes retirement eligible, but not less than one year.

Under the 2019 and 2018 equity programs, R&P financial professionals were granted cash-settled Holdings RSUs which vest ratably in equal installments over a three-year period. The cash payment for each RSU will equal the average closing price for a Holdings share on the NYSE over the 20 trading days immediately preceding the vesting date. These awards are liability-classified and require fair value remeasurement based upon the price of a Holdings share at the close of each reporting period.

Holdings Stock Options

Holdings stock options granted to R&P employees have a three-year graded vesting schedule, with one-third vesting on each of the three anniversaries. The total grant date fair value of Holdings stock options will be charged to expense over the shorter of the vesting period or the period up to the date at which the participant becomes retirement eligible, but not less than one year.

Holdings Performance Shares

Holdings performance shares granted to R&P employees are subject to performance conditions and a three-year cliff-vesting. The performance shares consist of two distinct tranches; one based on the Company’s return-on-equity targets (the “ROE Performance Shares”) and the other based on the Holdings’ relative total shareholder return targets (the “TSR Performance Shares”), each comprising approximately one-half of the award. Participants may receive from 0% to 200% of the unearned performance shares granted. The grant-date fair value of the ROE Performance Shares is established once all applicable Non-GAAP ROE targets are determined and approved. The fair value of the awards was measured using the closing price of the Holdings share on the grant date.

The grant-date fair value of the TSR Performance Shares was measured using a Monte Carlo approach. Under the Monte Carlo approach, stock returns were simulated for Holdings and the selected peer companies to estimate the payout percentages established by the conditions of the award. The aggregate grant-date fair value of the unearned TSR Performance Shares will be recognized as compensation expense over the shorter of the cliff-vesting period or the period up to the date at which the participant becomes retirement eligible, but not less than one year.

Director Awards

Holdings makes annual grants of unrestricted Holdings shares to non-employee directors of Holdings, Equitable Financial and Equitable America. The fair value of these awards was measured using the closing price of Holdings shares on the grant date. These awards immediately vest and all compensation expense is recognized at the grant date.

One-Time Awards Granted in 2018

Transaction Incentive Awards

On May 9, 2018, coincident with the IPO, Holdings granted one-time “Transaction Incentive Awards” to executive officers and certain other R&P employees in the form of 722 thousand Holdings RSUs. Fifty percent of the Holdings RSUs vested based on service over the two-year period from the IPO date (the “Service Units”), and fifty percent vest based on service or market condition (the “Performance Units”). The market condition is based on share price growth of at least 130% or 150% within a two or five-year period, respectively. The market condition was achieved during 2021 and the RSUs fully vesting during this period.

Prior Equity Award Grants

In 2017 and prior years, equity awards for employees, financial professional and directors in our R&P businesses were available under the umbrella of AXA’s global equity program. Accordingly, equity awards granted in 2017 and prior years were linked to AXA’s stock.

R&P employees were granted AXA ordinary share options under the Stock Option Plan, AXA performance shares under the Performance Share Plan and R&P financial professionals were granted performance units under the AXA Advisors Performance Unit Plan.

The fair values of these prior awards are measured at the grant date by reference to the closing price of the AXA ordinary share, and the result, as adjusted for achievement of performance targets and pre-vesting forfeitures, generally is attributed over the shorter of the requisite service period, the performance period, if any, or to the date at which

213

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

retirement eligibility is achieved and subsequent service no longer is required for continued vesting of the award. Remeasurements of fair value for subsequent price changes until settlement are made only for performance unit awards that are settled in cash.

Investment Management and Research

Employees and directors in our Investment Management and Research business participate in several unfunded long-term incentive compensation plans maintained by AB. Awards under these plans are linked to AB Holding Units.

Under the AB 2017 Long Term Incentive Plan (“2017 Plan”), which was adopted at a special meeting of AB Holding Unit holders held on September 29, 2017, the following forms of awards may be granted to AB employees and Directors: (i) restricted AB Holding Units or phantom restricted AB Holding Units (a “phantom” award is a contractual right to receive AB Holding Units at a later date or upon a specified event); (ii) options to buy AB Holding Units; and (iii) other AB Holding Unit-based awards (including, without limitation, AB Holding Unit appreciation rights and performance awards). The 2017 Plan will expire on September 30, 2027, and no awards under the 2017 Plan will be made after that date. Under the 2017 Plan, the aggregate number of AB Holding Units with respect to which awards may be granted is 60 million, including no more than 30 million newly-issued AB Holding Units.

AB engages in open-market purchases of AB Holding Units to help fund anticipated obligations under its long-term incentive compensation plans and for other corporate purposes. During 2021, 2020, and 2019 AB purchased 5.6 million, 5.4 million, and 6.0 million AB Holding Units for $262 million, 149 million and 173 million, respectively. These amounts reflect open-market purchases of 2.6 million, 3.1 million and 2.9 million AB Holding Units for $117.9 million 74.0 million and 82.7 million, respectively, with the remainder relating to purchases of AB Holding Units from AB employees to allow them to fulfill statutory tax withholding requirements at the time of distribution of long-term incentive compensation awards, offset by AB Holding Units purchased by AB employees as part of a distribution reinvestment election.

During 2021, 2020, and 2019 AB granted 7.0 million, 5.7 million, and 7.7 million restricted AB Holding units to AB employees and directors, respectively.

During 2021, 2020, and 2019 AB Holding issued 100 thousand, 5 thousand, and 500 thousand AB Holding Units, respectively, upon exercise of options to buy AB Holding Units. AB Holding used the proceeds of $3 million, 147 thousand and 12 million, respectively, received from employees as payment in cash for the exercise price to purchase the equivalent number of newly-issued AB Holding Units.

As of December 31, 2021, no options to buy AB Holding Units had been granted and 28.1 million AB Holding Units, net of withholding tax requirements, were subject to other AB Holding Unit awards made under the 2017 Plan or an equity compensation plan with similar terms that was canceled in 2017. AB Holding Unit-based awards (including options) in respect of 31.9 million AB Holding Units were available for grant as of December 31, 2021.

Summary of Stock Option Activity

A summary of activity in the AXA and Holdings option plans during 2021 as follows:

214

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

	Options Outstanding
	EQH Shares			AB Holding Units			AXA Ordinary Shares
	Number Outstanding   (in 000’s)	Weighted Average Exercise Price		Number Outstanding (In 000’s)	Weighted Average Exercise Price		Number Outstanding   (in 000’s)	Weighted Average Exercise Price
Options outstanding at January 1, 2021	3,428	$	21.14	148,985	$	23.61	1,726	€ 21.01
Options granted	—	—		—	—		—	—
Options exercised	(1,204)	21.20		(143,211)	23.75		(743)	19.19
Options forfeited, net	(184)	21.91		—	—		(109)	22.34
Options expired	—	—		—	—		—	—
Options outstanding at December 31, 2021	2,040	$	21.69	5,774	$	20.12	874	€ 22.39
Aggregate intrinsic value (1)		$	6,305		$	165,829		(€ 2,370)
Weighted average remaining contractual term (in years)	7.71			0.33			4.69
Options exercisable at December 31, 2021	843	$	21.58	5,774	$	20.12	758	€ 22.38
Aggregate intrinsic value (1)		$	2,700		$	165,829		(€ 2,049)
Weighted average remaining contractual term (in years)	7.56			0.33			4.48

_______________

(1) Aggregate intrinsic value, presented in thousands, is calculated as the excess of the closing market price on December 31, 2021 of the respective underlying shares over the strike prices of the option awards. For awards with strike prices higher than market prices, intrinsic value is shown as zero.

A summary of stock option grant assumptions activity in the AXA and the Company option plans during 2021, 2020, and 2019 follows:

	EQH Shares (1)
	2021 (2)		2020		2019
Dividend yield	—%		2.59%		2.77%
Expected volatility	—%		26.00%		25.70%
Risk-free interest rates	—%		1.19%		2.49%
Expected life in years	—		6.0		5.9
Weighted average fair value per option at grant date	$	—	$	4.37	$	3.82

_______________

(1) The expected volatility is based on historical selected peer data, the weighted average expected term is determined by using the simplified method due to lack of sufficient historical data, the expected dividend yield based on Holdings’ expected annualized dividend, and the risk-free interest rate is based on the U.S. Treasury bond yield for the appropriate expected term.

(2) No stock options granted during 2021.

As of December 31, 2021, approximately $74 thousand of unrecognized compensation cost related to AXA unvested stock option awards is expected to be recognized by the Company over a weighted-average period of 0.2 years. Approximately $1 million of unrecognized compensation cost related to Holdings unvested stock option awards is expected to be recognized by the Company over a weighted average period of 1.06 years.

Summary of Restricted Stock Unit Award Activity

The market price of a Holdings share is used as the basis for the fair value measure of a Holdings RSU. For purposes of determining compensation cost for stock-settled Holdings RSUs, fair value is fixed at the grant date until settlement, absent modification to the terms of the award. For liability-classified cash-settled Holdings and AXA RSUs, fair value is remeasured at the end of each reporting period.

As of December 31, 2021, approximately $3 million Holdings RSUs and AXA ordinary share unit awards remain unvested. Unrecognized compensation cost related to these awards totaled approximately $41 million and is expected to be recognized over a weighted-average period of 1.9 years.

215

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

As of December 31, 2021, approximately $18 million AB Holding Unit awards remain unvested. Unrecognized compensation cost related to these awards totaled approximately $137 million is expected to be recognized over a weighted-average period of 6.2 years

The following table summarizes Holdings restricted share units and AXA ordinary share unit activity for 2021.

	Shares of Holdings Restricted Stock Units	Weighted-Average Grant Date  Fair Value
Unvested as of January 1, 2021	3,666,611	$	21.15
Granted	1,630,277	$	28.01
Forfeited	(194,262)	$	24.43
Vested	(1,873,893)	$	20.81
Unvested as of December 31, 2021	3,228,733	$	24.61

Summary of Performance Award Activity

As of December 31, 2021, approximately 2 million Holdings and AXA performance awards remain unvested. Unrecognized compensation cost related to these awards totaled approximately $19 million and is expected to be recognized over a weighted-average period of 1.5 years.

The following table summarizes Holdings and AXA performance awards activity for 2021.

	Shares of Holdings Performance Awards	Weighted-Average Grant Date  Fair Value		Shares of AXA Performance Awards	Weighted-Average Grant Date Fair Value
Unvested as of January 1, 2021	676,688	$	22.14	2,806,126	$	21.86
Granted	1,153,932	$	29.91	—	$	—
Forfeited	(200,814)	$	28.28	(7,939)	$	27.18
Vested	(168,132)	$	23.17	(1,410,020)	$	23.94
Other (1)	—	$	—	(1,325,420)	$	19.64
Unvested as of December 31, 2021	1,461,674	$	28.58	62,747	$	21.28

_______________

(1) One time true-up of AXA Performance Awards related to the transition to third party administrator.

216

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

16)    INCOME TAXES

Income from operations before income taxes included income (loss) from domestic operations of $(392) million, $(1.3) billion and $(2.2) billion for the years ended December 31, 2021, 2020 and 2019, and income from foreign operations of $223 million, $169 million and $131 million for the years ended December 31, 2021, 2020 and 2019. Approximately $59 million, $45 million and $34 million of the Company’s income tax expense is attributed to foreign jurisdictions for the years ended December 31, 2021, 2020 and 2019.

A summary of the income tax (expense) benefit in the consolidated statements of income (loss) follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Income tax (expense) benefit:
Current (expense) benefit	$	(129)	$	(5)	$	(71)
Deferred (expense) benefit	274		749		664
Total	$	145	$	744	$	593

The Federal income taxes attributable to consolidated operations are different from the amounts determined by multiplying the earnings before income taxes and noncontrolling interest by the expected Federal income tax rate of 21%. The sources of the difference and their tax effects are as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Expected income tax (expense) benefit	$	36	$	229	$	433
Noncontrolling interest	69		50		51
Non-taxable investment income	80		92		74
Tax audit interest	(14)		(8)		(24)
State income taxes	(47)		(38)		(21)
Tax settlements/uncertain tax position release	—		398		63
Tax credits	28		21		—
Other	(7)		—		17
Income tax (expense) benefit	$	145	$	744	$	593

During the fourth quarter of 2020, the Company agreed to the Internal Revenue Service’s Revenue Agent’s Report for its consolidated 2010 through 2013 Federal corporate income tax returns. The impact on the Company’s financial statements and unrecognized tax benefits was a tax benefit of $398 million.

During the second quarter of 2019, the Company released a state income tax liability due to recently drafted regulations. The benefit recorded in the Company’s financial statements was $63 million.

The components of the net deferred income taxes are as follows:

217

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

	December 31,
	2021				2020
	Assets		Liabilities		Assets		Liabilities
	(in millions)
Compensation and related benefits	$	273	$	—	$	297	$	—
Net operating loss and credits	699		—		88		—
Reserves and reinsurance	2,281		—		1,528		—
DAC	—		874		—		638
Unrealized investment gains/losses	—		965		—		1,790
Investments	—		794		461		—
Other	—		76		—		170
Total	$	3,253	$	2,709	$	2,374	$	2,598

The Company has Federal net operating loss carryforwards of $2.7 billion and $13 million, for the years ending December 31, 2021 and 2020, respectively, which do not expire.

The Company provides income taxes on the unremitted earnings of non-U.S. corporate subsidiaries except to the extent that such earnings are indefinitely reinvested outside the United States. As of December 31, 2021, $30 million of undistributed earnings of non-U.S. corporate subsidiaries were permanently invested outside the United States. At existing applicable income tax rates, additional taxes of approximately $8 million would need to be provided if such earnings are remitted.

A reconciliation of unrecognized tax benefits (excluding interest and penalties) follows:

	2021		2020		2019
	(in millions)
Balance at January 1,	$	316	$	501	$	539
Additions for tax positions of prior years	11		241		25
Reductions for tax positions of prior years	(4)		(382)		(63)
Additions for tax positions of current year	—		—		—
Settlements with tax authorities	—		(44)		—
Balance at December 31,	$	323	$	316	$	501
Unrecognized tax benefits that, if recognized, would impact the effective rate	$	67	$	77	$	369

The Company recognizes accrued interest and penalties related to unrecognized tax benefits in tax expense. Interest and penalties included in the amounts of unrecognized tax benefits as of December 31, 2021 and 2020 were $50 million and $36 million, respectively. For 2021, 2020 and 2019, respectively, there were $14 million, $(60) million and $21 million in interest expense (benefit) related to unrecognized tax benefits.

It is reasonably possible that the total amount of unrecognized tax benefits will change within the next 12 months due to the conclusion of IRS proceedings and the addition of new issues for open tax years. The possible change in the amount of unrecognized tax benefits cannot be estimated at this time.

As of December 31, 2021, tax years 2014 and subsequent remain subject to examination by the IRS.

218

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

17)    COMMITMENTS AND CONTINGENT LIABILITIES

Litigation and Regulatory Matters

Litigation, regulatory and other loss contingencies arise in the ordinary course of the Company’s activities as a diversified financial services firm. The Company is a defendant in a number of litigation matters arising from the conduct of its business. In some of these matters, claimants seek to recover very large or indeterminate amounts, including compensatory, punitive, treble and exemplary damages. Modern pleading practice permits considerable variation in the assertion of monetary damages and other relief. Claimants are not always required to specify the monetary damages they seek, or they may be required only to state an amount sufficient to meet a court’s jurisdictional requirements. Moreover, some jurisdictions allow claimants to allege monetary damages that far exceed any reasonably possible verdict. The variability in pleading requirements and past experience demonstrates that the monetary and other relief that may be requested in a lawsuit or claim often bears little relevance to the merits or potential value of a claim. Litigation against the Company includes a variety of claims including, among other things, insurers’ sales practices, alleged agent misconduct, alleged failure to properly supervise agents, contract administration, product design, features and accompanying disclosure, cost of insurance increases, payments of death benefits and the reporting and escheatment of unclaimed property, alleged breach of fiduciary duties, alleged mismanagement of client funds and other matters.

The outcome of a litigation or regulatory matter is difficult to predict, and the amount or range of potential losses associated with these or other loss contingencies requires significant management judgment. It is not possible to predict the ultimate outcome or to provide reasonably possible losses or ranges of losses for all pending regulatory matters, litigation and other loss contingencies. While it is possible that an adverse outcome in certain cases could have a material adverse effect upon the Company’s financial position, based on information currently known, management believes that neither the outcome of pending litigation and regulatory matters, nor potential liabilities associated with other loss contingencies, are likely to have such an effect. However, given the large and indeterminate amounts sought in certain litigation and the inherent unpredictability of all such matters, it is possible that an adverse outcome in certain of the Company’s litigation or regulatory matters, or liabilities arising from other loss contingencies, could, from time to time, have a material adverse effect upon the Company’s results of operations or cash flows in a particular quarterly or annual period.

For some matters, the Company is able to estimate a range of loss. For such matters in which a loss is probable, an accrual has been made. For matters where the Company believes a loss is reasonably possible, but not probable, no accrual is required. For matters for which an accrual has been made, but there remains a reasonably possible range of loss in excess of the amounts accrued or for matters where no accrual is required, the Company develops an estimate of the unaccrued amounts of the reasonably possible range of losses. As of December 31, 2021, the Company estimates the aggregate range of reasonably possible losses, in excess of any amounts accrued for these matters as of such date, to be up to approximately $250 million.

For other matters, the Company is currently not able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from plaintiffs and other parties, investigation of factual allegations, rulings by a court on motions or appeals, analysis by experts and the progress of settlement discussions. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation and regulatory contingencies and updates the Company’s accruals, disclosures and reasonably possible losses or ranges of loss based on such reviews.

In August 2015, a lawsuit was filed in Connecticut Superior Court entitled Richard T. O’Donnell, on behalf of himself and all others similarly situated v. AXA Equitable Life Insurance Company. This lawsuit is a putative class action on behalf of all persons who purchased variable annuities from Equitable Financial, which were subsequently subjected to the volatility management strategy and who suffered injury as a result thereof. Plaintiff asserts a claim for breach of contract alleging that Equitable Financial implemented the volatility management strategy in violation of applicable law. Plaintiff seeks an award of damages individually and on a classwide basis, and costs and disbursements, including attorneys’ fees, expert witness fees and other costs. In 2015, the case was transferred to the Southern District of New York and, in 2018, transferred back to Connecticut Superior Court. In August 2019, the court granted Equitable Financial’s motion to strike, which sought dismissal of the complaint, and in September 2019, Plaintiff filed an Amended Class Action Complaint. Equitable Financial filed renewed motions to strike and to dismiss and for an entry of judgment in October 2019. In August 2020, the court granted Equitable Financial’s motion for entry of judgment.

219

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Plaintiff filed a notice of appeal and in February 2021, the appellate court reversed the entry of judgement and remanded the case to Connecticut Superior Court. We are vigorously defending this matter.

In February 2016, a lawsuit was filed in the Southern District of New York entitled Brach Family Foundation, Inc. v. AXA Equitable Life Insurance Company. This lawsuit is a putative class action brought on behalf of all owners of UL policies subject to Equitable Financial’s COI rate increase. In early 2016, Equitable Financial raised COI rates for certain UL policies issued between 2004 and 2008, which had both issue ages 70 and above and a current face value amount of $1 million and above. A second putative class action was filed in Arizona in 2017 and consolidated with the Brach matter. The consolidated amended class action complaint alleges the following claims: breach of contract; misrepresentations in violation of Section 4226 of the New York Insurance Law; violations of New York General Business Law Section 349; and violations of the California Unfair Competition Law, and the California Elder Abuse Statute. Plaintiffs seek: (a) compensatory damages, costs, and, pre- and post-judgment interest; (b) with respect to their claim concerning Section 4226, a penalty in the amount of premiums paid by the plaintiffs and the putative class; and (c) injunctive relief and attorneys’ fees in connection with their statutory claims. In August 2020, the federal district court issued a decision certifying nationwide breach of contract and Section 4226 classes, and a New York State Section 349 class. Equitable Financial has commenced settlement discussions with the Brach class action plaintiffs through a non-binding mediation process. No assurances can be given about the outcome of that mediation process. Separately, a substantial number of policy owners have opted out of the Brach class action and are not participating in that mediation process. Most have not yet filed suit. Others filed suit previously. They include five other federal actions challenging the COI rate increase that are also pending against Equitable Financial and have been coordinated with the Brach action for the purposes of pre-trial activities. They contain allegations similar to those in the Brach action as well as additional allegations for violations of various states’ consumer protection statutes and common law fraud. Two actions are also pending against Equitable Financial in New York state court. Equitable Financial is vigorously defending each of these matters.

As with other financial services companies, the Company periodically receives informal and formal requests for information from various state and federal governmental agencies and self-regulatory organizations in connection with inquiries and investigations of the products and practices of the Company or the financial services industry. It is the practice of the Company to cooperate fully in these matters. For example, among other matters, the Company has been cooperating with the U.S. Securities and Exchange Commission (the “SEC”) concerning the SEC’s investigation into the Company’s non-ERISA K-12 403(b) and 457 sales and disclosure practices.The Company has reached an agreement in principle, subject to agreement on documentation and approval by the SEC, to resolve that investigation, including the allegation that daily separate account and portfolio operating expenses disclosed in customer prospectuses and incorporated in the calculation of net investment portfolio results in quarterly account statements were not properly presented or referenced in those account statements. If approved, under the settlement, the Company would neither admit nor deny the allegations, prospectively modify the relevant account statements and cross-reference the relevant prospectus disclosures, and pay a civil monetary penalty of $50 million, to be distributed to plan participants. The Company has fully accrued for the cost of the settlement.

Obligations under Funding Agreements

Pre-Capitalized Trust Securities (“P-Caps”)

In April 2019, pursuant to separate Purchase Agreements among Holdings, Credit Suisse Securities (USA) LLC, as representative of the several initial purchasers, and the Trusts (as defined below), Pine Street Trust I, a Delaware statutory trust (the “2029 Trust”), completed the issuance and sale of 600,000 of its Pre-Capitalized Trust Securities redeemable February 15, 2029 (the “2029 P-Caps”) for an aggregate purchase price of $600 million and Pine Street Trust II, a Delaware statutory trust (the “2049 Trust” and, together with the 2029 Trust, the “Trusts”), completed the issuance and sale of 400,000 of its Pre-Capitalized Trust Securities redeemable February 15, 2049 (the “2049 P-Caps” and, together with the 2029 P-Caps, the “P-Caps”) for an aggregate purchase price of $400 million in each case to qualified institutional buyers in reliance on Rule 144A that are also “qualified purchasers” for purposes of Section 3(c)(7) of the Investment Company Act of 1940, as amended.

The P-Caps are an off-balance sheet contingent funding arrangement that, upon Holdings’ election, gives Holdings the right over a ten-year period (in the case of the 2029 Trust) or over a thirty-year period (in the case of the 2049 Trust) to issue senior notes to these Trusts. The Trusts each invested the proceeds from the sale of their P-Caps in separate portfolios of principal and/or interest strips of U.S. Treasury securities. In return, Holdings will pay a semi-annual facility fee to the 2029 Trust and 2049 Trust calculated at a rate of 2.125% and 2.715% per annum, respectively, which will be applied to the unexercised portion of the contingent funding arrangement and Holdings will reimburse the

220

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Trusts for certain expenses. The facility fees are recorded in Other operating costs and expenses in the Consolidated Statements of Income (Loss).

Federal Home Loan Bank

As a member of the FHLB, Equitable Financial has access to collateralized borrowings. It also may issue funding agreements to the FHLB. Both the collateralized borrowings and funding agreements would require Equitable Financial to pledge qualified mortgage-backed assets and/or government securities as collateral. Equitable Financial issues short-term funding agreements to the FHLB and uses the funds for asset, liability, and cash management purposes. Equitable Financial issues long-term funding agreements to the FHLB and uses the funds for spread lending purposes.

Entering into FHLB membership, borrowings and funding agreements requires the ownership of FHLB stock and the pledge of assets as collateral. Equitable Financial has purchased FHLB stock of $311 million and pledged collateral with a carrying value of $12.5 billion as of December 31, 2021. 

Funding agreements are reported in policyholders’ account balances in the consolidated balance sheets. For other instruments used for asset/liability and cash management purposes, see “Derivative and offsetting assets and liabilities” included in Note 4 of the Notes to these Consolidated Financial Statements. The table below summarizes the Company’s activity of funding agreements with the FHLB.

Change in FHLB Funding Agreements during the Year Ended December 31, 2021

	Outstanding Balance at December 31, 2020		Issued During the Period		Repaid During the Period		Long-term Agreements Maturing Within One Year		Long-term Agreements Maturing Within Five Years		Outstanding Balance at December 31, 2021
	(in millions)
Short-term funding agreements:
Due in one year or less	$	5,634	$	59,846	$	60,504	$	377	$	—	$	5,353
Long-term funding agreements:
Due in years two through five	722		411		—		(377)		534		1,290
Due in more than five years	534		—		—		—		(534)		—
Total long-term funding agreements	1,256		411		—		(377)		—		1,290
Total funding agreements (1)	$	6,890	$	60,257	$	60,504	$	—	$	—	$	6,643

_____________

(1)The $4 million and $7 million difference between the funding agreements carrying value shown in fair value table for December 31, 2021 and December 31, 2020, respectively, reflects the remaining amortization of a hedge implemented and closed, which locked in the funding agreements borrowing rates.

Funding Agreement-Backed Notes Program

Under the FABN program, Equitable Financial may issue funding agreements in U.S. dollar or other foreign currencies to a Delaware special purpose statutory trust (the “Trust”) in exchange for the proceeds from issuances of fixed and floating rate medium-term marketable notes issued by the Trust from time to time (the “Trust Notes”). The funding agreements have matching interest, maturity and currency payment terms to the applicable Trust notes. The Company hedges the foreign currency exposure of foreign currency denominated funding agreements using cross currency swaps as discussed in Note 4 of the Notes to these Consolidated Financial Statements. As of May 2021, the maximum aggregate principal amount of Trust notes permitted to be outstanding at any one time is $10 billion. Funding agreements issued to the Trust, including any foreign currency transaction adjustments, are reported in policyholders’ account balances in the consolidated balance sheets. Foreign currency transaction adjustments to policyholder’s account balances are recognized in net income (loss) as an adjustment to interest credited to policyholders’ account balances and are offset in interest credited to policyholders’ account balances by a release of AOCI from deferred changes in fair value of designated and qualifying cross currency swap cash flow hedges. The table below summarizes the Equitable Financial’s activity of funding agreements under the FABN.

221

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Change in FABN Funding Agreements during the Year Ended December 31, 2021

	Outstanding Balance at December 31, 2020		Issued During the Period		Repaid During the Period		Long-term Agreements Maturing Within One Year		Long-term Agreements Maturing Within Five Years		Foreign Currency Transaction Adjustment		Outstanding Balance at December 31, 2021
	(in millions)
Short-term funding agreements:
Due in one year or less	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Long-term funding agreements:
Due in years two through five	1,150		3,450		—		—		—		—		4,600
Due in more than five years	800		1,359		—		—		—		(40)		2,119
Total long-term funding agreements	1,950		4,809		—		—		—		(40)		6,719
Total funding agreements (1)	$	1,950	$	4,809	$	—	$	—	$	—	$	(40)	$	6,719

_____________

(1)The $70 million and $11 million difference between the funding agreements notional value shown and carrying value table as of December 31, 2021 and December 31, 2020, respectively, reflects the remaining amortization of the issuance cost of the funding agreements and the foreign currency transaction adjustment.

Credit Facilities

For information regarding activity pertaining to our credit facilities arrangements, see “Note 12 of the Notes to these Consolidated Financial Statements.

Guarantees and Other Commitments

The Company provides certain guarantees or commitments to affiliates and others. As of December 31, 2021, these arrangements include commitments by the Company to provide equity financing of $1.3 billion to certain limited partnerships and real estate joint ventures under certain conditions. Management believes the Company will not incur material losses as a result of these commitments.

The Company had $17 million of undrawn letters of credit related to reinsurance as of December 31, 2021. The Company had $863 million of commitments under existing mortgage loan agreements as of December 31, 2021.

The Company is the obligor under certain structured settlement agreements it had entered into with unaffiliated insurance companies and beneficiaries. To satisfy its obligations under these agreements, the Company owns single premium annuities issued by previously wholly-owned life insurance subsidiaries. The Company has directed payment under these annuities to be made directly to the beneficiaries under the structured settlement agreements. A contingent liability exists with respect to these agreements should the previously wholly-owned subsidiaries be unable to meet their obligations. Management believes the need for the Company to satisfy those obligations is remote.

18)    INSURANCE GROUP STATUTORY FINANCIAL INFORMATION

In accordance with statutory accounting practices, the following table presents the combined statutory net income (loss), surplus, capital stock & AVR, and securities on deposits for Equitable Financial, Equitable America, USFL, Equitable L&A and CS Life.

222

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

	2021		2020		2019
	(in millions)
Years Ended December 31,
Combined statutory net income (loss) (1) (2)	$	(936)	$	396	$	3,821
As of December 31,
Combined surplus, capital stock and AVR	$	6,864	$	7,475
Combined securities on deposits n accordance with various government and state regulations	$	65	$	75

_____________

(1) For 2021, excludes CS Life which was sold June 1, 2021.

(2) For 2020, excludes USFL which was sold April 1, 2020.

Equitable Financial did not pay ordinary dividends during 2021 due to operating losses. In 2020 and 2019, Equitable Financial paid to its direct parent, which subsequently distributed such amount to Holdings, an ordinary shareholder dividend of $2.1 billion and $1.0 billion, respectively.

Dividend Restrictions

As domestic insurance subsidiaries regulated by insurance laws of their respective domiciliary states, Equitable Financial and Equitable America are subject to restrictions as to the amounts they may pay as dividends and amounts they may repay of surplus notes to Holdings.

State insurance statutes also typically place restrictions and limitations on the amount of dividends or other distributions payable by insurance company subsidiaries to their parent companies, as well as on transactions between an insurer and its affiliates. Under the New York insurance laws, which are applicable to Equitable Financial, a domestic stock life insurer may not, without prior approval of the NYDFS, pay an ordinary dividend to its stockholders exceeding an amount calculated based on a statutory formula (“Ordinary Dividend”). Dividends in excess of this amount require the insurer to file a notice of its intent to declare the dividends with the NYDFS and obtain prior approval or non-disapproval from the NYDFS with respect to such dividends (“Extraordinary Dividend”). Due to a permitted statutory accounting practice agreed to with the NYDFS, Equitable Financial will need the prior approval of the NYDFS to pay the portion, if any, of any Ordinary Dividend that exceeds the Ordinary Dividend that Equitable Financial would be permitted to pay under New York insurance law absent the application of such permitted practice (such excess, the “Permitted Practice Ordinary Dividend”).

Applying the formulas above, Equitable Financial could pay an Ordinary Dividend of up to approximately $865 million in 2022.

Intercompany Reinsurance

Equitable Financial and Equitable America receive statutory reserve credits for reinsurance treaties with EQ AZ Life Re to the extent EQ AZ Life Re holds assets in an irrevocable trust (the “EQ AZ Life Re Trust”). As of December 31, 2021, EQ AZ Life Re holds $12.4 billion of assets in the EQ AZ Life Re Trust and letters of credit of $1.9 billion that are guaranteed by Holdings. Under the reinsurance transactions, EQ AZ Life Re is permitted to transfer assets from the EQ AZ Life Re Trust under certain circumstances. The level of statutory reserves held by EQ AZ Life Re fluctuate based on market movements, mortality experience and policyholder behavior. Increasing reserve requirements may necessitate that additional assets be placed in trust and/or additional letters of credit be secured, which could adversely impact EQ AZ Life Re’s liquidity.

Prescribed and Permitted Accounting Practices

Equitable Financial was granted a permitted practice by the NYDFS to apply SSAP 108, Derivatives Hedging Variable Annuity Guarantees on a retroactive basis from January 1, 2021 through June 30, 2021, after reflecting the impacts of our reinsurance transaction with Venerable. The permitted practice was amended to also permit Equitable Financial to adopt SSAP 108 prospectively as of July 1, 2021. Application of the permitted practice partially mitigates the Regulation 213 impact of the Venerable Transaction on Equitable Financial’s statutory capital and surplus. The impact of the application of this permitted practice was an increase of approximately $1.4 billion in statutory special surplus

223

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

funds and an increase of $1.4 billion in statutory net income as of December 31, 2021 and for the year then ended, which will be amortized over 5 years for each of the retrospective and prospective components. The permitted practice also resets Equitable Financial’s unassigned surplus to zero as of June 30, 2021 to reflect the transformative nature of the Venerable Transaction.

Equitable Financial and Equitable America cede a portion of their statutory reserves to EQ AZ Life Re, a captive reinsurer, as part of the Company’s capital management strategy. EQ AZ Life Re prepares financial statements in a special purpose framework for statutory reporting.

Differences between Statutory Accounting Principles and U.S. GAAP

Accounting practices used to prepare statutory financial statements for regulatory filings of stock life insurance companies differ in certain instances from U.S. GAAP. The differences between statutory surplus and capital stock determined in accordance with SAP and total equity under U.S. GAAP are primarily: (a) the inclusion in SAP of an AVR intended to stabilize surplus from fluctuations in the value of the investment portfolio; (b) future policy benefits and policyholders’ account balances under SAP differ from U.S. GAAP due to differences between actuarial assumptions and reserving methodologies; (c) certain policy acquisition costs are expensed under SAP but deferred under U.S. GAAP and amortized over future periods to achieve a matching of revenues and expenses; (d) under SAP, Federal income taxes are provided on the basis of amounts currently payable with limited recognition of deferred tax assets while under U.S. GAAP, deferred taxes are recorded for temporary differences between the financial statements and tax basis of assets and liabilities where the probability of realization is reasonably assured; (e) the valuation of assets under SAP and U.S. GAAP differ due to different investment valuation and depreciation methodologies, as well as the deferral of interest-related realized capital gains and losses on fixed income investments; (f) the valuation of the investment in AB and AB Holding under SAP reflects a portion of the market value appreciation rather than the equity in the underlying net assets as required under U.S. GAAP; (g) reporting the surplus notes as a component of surplus in SAP but as a liability in U.S. GAAP; (h) computer software development costs are capitalized under U.S. GAAP but expensed under SAP; (i) certain assets, primarily prepaid assets, are not admissible under SAP but are admissible under U.S. GAAP; and (j) cost of reinsurance which is recognized as expense under SAP and amortized over the life of the underlying reinsured policies under U.S. GAAP.

19)    BUSINESS SEGMENT INFORMATION

The Company has four reportable segments: Individual Retirement, Group Retirement, Investment Management and Research and Protection Solutions.

These segments reflect the manner by which the Company’s chief operating decision maker views and manages the business. A brief description of these segments follows:

•The Individual Retirement 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 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 Investment Management and Research segment provides diversified investment management, research and related solutions globally to a broad range of clients through three main client channels - Institutional, Retail and Private Wealth Management - and distributes its institutional research products and solutions through Bernstein Research Services.

•The Protection Solutions segment includes our life insurance and group employee benefits businesses. Our life insurance business offers a variety of VUL, UL and term life products to help affluent and high net worth individuals, as well as small and medium-sized business owners, with their wealth protection, wealth transfer and corporate needs. Our group employee benefits business offers a suite of dental, vision, life, and short- and long-term disability and other insurance products to small and medium-size businesses across the United States.

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

224

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

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) certain changes in the fair value of the derivatives and other securities we use to hedge these features; (ii) the effect of benefit ratio unlock adjustments, including extraordinary economic conditions or events such as COVID-19; and (iii) changes in the fair value of the embedded derivatives reflected within variable annuity products’ net derivative results and the impact of these items on DAC amortization on our SCS product;

•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, COVID-19 related impacts, 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 associated with equity securities and certain legal accruals; 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.

Revenues derived from any customer did not exceed 10% of revenues for the years ended December 31, 2021, 2020 and 2019.

The table below presents operating earnings (loss) by segment and Corporate and Other and a reconciliation to net income (loss) attributable to Holdings for the years ended December 31, 2021, 2020 and 2019, respectively:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Net income (loss) attributable to Holdings	$	(439)	$	(648)	$	(1,764)
Adjustments related to:
Variable annuity product features (1)	4,145		3,912		4,863
Investment (gains) losses	(867)		(744)		(73)
Net actuarial (gains) losses related to pension and other postretirement benefit obligations	120		109		99
Other adjustments (2) (3) (4) (5)	717		952		395
Income tax expense (benefit) related to above adjustments (6)	(864)		(888)		(1,097)
Non-recurring tax items (7)	13		(391)		(66)
Non-GAAP Operating Earnings	$	2,825	$	2,302	$	2,357
Operating earnings (loss) by segment:
Individual Retirement	$	1,444	$	1,536	$	1,598
Group Retirement	$	631	$	491	$	390
Investment Management and Research	$	564	$	432	$	381
Protection Solutions	$	317	$	146	$	336
Corporate and Other (8)	$	(131)	$	(303)	$	(348)

______________

(1)Includes COVID-19 impact on variable annuity product features due to a first quarter 2020 assumption update of $1.5 billion and other COVID-19 related impacts of $35 million for the year ended December 31, 2020.

225

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

(2)Includes COVID-19 impact on other adjustments due to a first quarter 2020 assumption update of $1.0 billion and other COVID-19 related impacts of $86 million for the year ended December 31, 2020.

(3)Include separation costs of $82 million, $108 million and $222 million for the years ended December 31, 2021, 2020 and 2019, respectively.

(4)Includes certain legal accruals related to the COI litigation of $207 million for the year ended December 31, 2021. No adjustments were made to prior period operating earnings as the impact was immaterial.

(5)Includes Non-GMxB related derivative hedge gains and losses of $65 million, $(404) million and $36 million for the years ended December 31, 2021, 2020 and 2019, respectively.

(6)Includes income taxes of $(554) million for the above COVID-19 items for the year ended December 31, 2020.

(7)Prior year includes a reduction in the reserve for uncertain tax positions resulting from the completion of an IRS examination in the year ended December 31, 2020.

(8)Includes interest expense and financing fees of $241 million $218 million and $228 million for the years ended December 31, 2021, 2020 and 2019, respectively.

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 segment revenues for the years ended December 31, 2021, 2020 and 2019.

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Segment revenues:
Individual Retirement (1)	$	3,785	$	4,311	$	4,325
Group Retirement (1)	1,372		1,148		1,077
Investment Management and Research (2)	4,430		3,703		3,479
Protection Solutions (1)	3,358		3,144		3,366
Corporate and Other (1)	1,563		1,207		1,228
Adjustments related to:
Variable annuity product features	(4,268)		(2,284)		(3,935)
Investment gains (losses), net	867		744		73
Other adjustments to segment revenues (3)	(71)		442		6
Total revenues	$	11,036	$	12,415	$	9,619

______________

(1)Includes investment expenses charged by AB of $128 million, $71 million and $76 million for the years ended December 31, 2021, 2020 and 2019, respectively, for services provided to the Company.

(2)Inter-segment investment management and other fees of $126 million, $113 million and $104 million for the years ended December 31, 2021, 2020 and 2019, respectively, are included in segment revenues of the Investment Management and Research segment.

(3)Includes COVID-19 impact on other adjustments due to an assumption update of $46 million and other COVID-19 related impacts of $(30) million for the year ended December 31, 2020.

The table below presents total assets by segment as of December 31, 2021 and 2020:

226

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

	December 31,
	2021		2020
	(in millions)
Total assets by segment:
Individual Retirement (1)	$	143,663	$	135,764
Group Retirement	55,368		51,466
Investment Management and Research	11,602		11,179
Protection Solutions	50,686		48,568
Corporate and Other	30,943		28,420
Total assets	$	292,262	$	275,397

______________

(1) Increase in Individual Retirement as of December 31, 2021 is primarily due to Amounts due from Reinsurers related to ceded reserves on the Venerable Transaction (see Note 1 of the Notes to these Consolidated Financial Statements).

20)    EQUITY

Preferred Stock

Preferred stock authorized, issued and outstanding was as follows:

	December 31, 2021			December 31, 2020
Series	Shares Authorized	Shares  Issued	Shares Outstanding	Shares Authorized	Shares  Issued	Shares Outstanding
Series A	32,000	32,000	32,000	32,000	32,000	32,000
Series B	20,000	20,000	20,000	20,000	20,000	20,000
Series C	12,000	12,000	12,000	—	—	—
Total	64,000	64,000	64,000	52,000	52,000	52,000

Series A Fixed Rate Noncumulative Perpetual Preferred Stock

In November and December 2019, Holdings’ issued a total of 32 million depositary shares, each representing a 1/1,000th interest in share of Series A Preferred Stock, $1.00 par value per share, with a liquidation preference of $25,000 per share, for aggregate net cash proceeds of $775 million ($800 million gross). The preferred stock ranks senior to Holdings’ common stock with respect to the payment of dividends and liquidation. Holdings’ will pay dividends on the Series A Preferred Stock on a noncumulative basis only when, as and if declared by the Company’s Board of Directors (or a duly authorized committee of the Board) and will be payable quarterly in arrears, at an annual rate of 5.25% on the stated amount per share.  In connection with the issuance of the depositary shares and the underlying Series A Preferred Stock, Holdings’ incurred $25 million of issuance costs, which have been recorded as a reduction of additional paid-in capital. The Series A Preferred Stock is redeemable at Holdings’ option in whole or in part, on or after December 15, 2024, at a redemption price of $25,000 per share of preferred stock, plus declared and unpaid dividends. Prior to December 25, 2024, the preferred stock is redeemable at Holdings’ option, in whole but not in part, within 90 days of the occurrence of certain rating agency events at a redemption price equal to $25,500 per share, plus declared and unpaid dividends or certain regulatory capital events at a redemption price equal to $25,000 per share, plus any declared and unpaid dividends.

Series B Fixed Rate Reset Noncumulative Perpetual Preferred Stock

On August 11, 2020, Holdings issued 500,000 depositary shares, each representing a 1/25th interest in a share of Series B Preferred Stock, $1.00 par value per share and liquidation preference of $25,000 per share, for aggregate net cash proceeds of $494 million ($500 million gross). The Series B Preferred Stock ranks senior to Holdings’ common stock and on parity with Holdings’ Series A Preferred Stock with respect to the payment of dividends and liquidation. Holdings will pay dividends on the Series B Preferred Stock on a noncumulative basis only when, as and if declared by the Company’s Board of Directors (or a duly authorized committee of the Board) and will be payable semi-annually in arrears, at an annual rate equal to the fixed rate of 4.950%, which is reset every 5 years starting on December 15, 2025 (“Reset Date”), at a rate per annum equal to the five-year U.S. Treasury Rate plus 4.736%.

227

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

In connection with the issuance of the depositary shares and the underlying Series B Preferred Stock, Holdings incurred $6 million of issuance costs, which have been recorded as a reduction of additional paid-in capital. The Series B Preferred Stock is redeemable at Holdings’ option in whole or in part, from time to time, during the three-month period prior to, and including, each Reset Date, at a redemption price equal to $25,000 per share of preferred stock, plus any declared and unpaid dividends. Furthermore, the preferred stock is redeemable at Holdings’ option, in whole but not in part at any time, within 90 days after the occurrence of certain rating agency events at a redemption price equal to $25,500 per share, plus any declared and unpaid dividends or after the occurrence of certain regulatory capital events at a redemption price equal to $25,000 per share, plus any declared and unpaid dividends.

Series C Fixed Rate Reset Noncumulative Perpetual Preferred Stock

On January 8, 2021, Holdings issued 12,000,000 depositary shares, each representing a 1/1,000th interest in a share of the Company’s Series C Fixed Rate Noncumulative Perpetual Preferred Stock (“Series C Preferred Stock”), $1.00 par value per share and liquidation preference of $25,000 per share, for aggregate net cash proceeds of $293 million ($300 million gross). The Series C Preferred Stock ranks senior to Holdings’ common stock and on parity with Holdings’ Series A Preferred Stock and Series B Preferred Stock with respect to the payment of dividends and liquidation. Holdings will pay dividends on the Series C Preferred Stock on a noncumulative basis only when, as and if declared by the Company’s Board of Directors (or a duly authorized committee of the Board) and will be payable quarterly in arrears, at an annual rate equal to the fixed rate of 4.3%.

Dividends to Shareholders

Dividends declared per share were as follows for the periods indicated:

	Year ended December 31,
	2021		2020		2019
Series A dividends declared	$	1,313	$	1,378	$	—
Series B dividends declared	$	1,238	$	426	$	—
Series C dividends declared	$	1,006	$	—	$	—

Common Stock

Dividends declared per share of common stock were as follows for the periods indicated:

	Year Ended December 31,
	2021		2020		2019
Dividends declared	$	0.71	$	0.66	$	0.58

Share Repurchase

In January 2019, Holdings entered into an ASR agreement with a third-party financial institution to repurchase an aggregate of $150 million of Holdings’ common stock. Pursuant to the ASR, Holdings made a prepayment of $150 million and received initial delivery of seven million shares. The ASR terminated during the first quarter of 2019, at which time an additional one million shares were delivered, at an average purchase price of $18.51 per share based on the volume-weighted average price of Holdings’ common stock traded during the pricing period, less an agreed discount. Shares repurchased under the ASR were retired upon receipt resulting in a reduction of Holdings’ total issued shares as of December 31, 2019.

On November 6, 2019, Holdings’ Board of Directors authorized a $400 million share repurchase program with an expiration date of December 31, 2020. On February 26, 2020, Holdings’ Board of Directors authorized an increase of $600 million to the capacity of this program as well as the extension of the term of the program until March 31, 2021. This program was exhausted in January 2021. On October 23, 2020, Holdings’ Board of Directors authorized an incremental $500 million of share repurchase in 2021, subject to the close of the Venerable Transaction. In addition, on February 17, 2021 Holdings announced that its Board of Directors had authorized a $1.0 billion share repurchase program. Under this program, Holdings may, from time to time, purchase up to $1.0 billion of its common stock but it is not obligated to purchase any particular number of shares. Repurchases may be effected in the open market, through derivative, accelerated repurchase and other negotiated transactions and through prearranged trading plans complying with Rule 10b5-1(c) under the Exchange Act. As of December 31, 2021, Holdings had authorized capacity of

228

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

approximately $5 million remaining in its share repurchase program, which is inclusive of the $500 million related to the Venerable Transaction.

For the years ended December 31, 2021 , 2020 and 2019, the Company repurchased approximately 51.9 million, 23.7 million and 65.6 million shares of its common stock at a total cost of approximately $1.6 billion, $430 million and $1.3 billion, respectively through open market repurchases, ASRs and privately negotiated transactions. The repurchased common stock was recorded as treasury stock in the consolidated balance sheets. For the years ended December 31, 2021 , 2020 and 2019, the Company reissued approximately 2.3 million, 743 thousand and 387 thousand shares of its treasury stock, respectively. For the year ended December 31, 2021 , 2020 and 2019, the Company retired approximately 32.0 million, 0 shares and 8.1 million shares of its treasury stock, respectively.

In January 2021, Holdings entered into an ASR with a third-party financial institution to repurchase an aggregate of $170 million of Holdings’ common stock. The ASR terminated during the first quarter of 2021, for a total of 6.3 million shares delivered. Shares repurchased under the ASR were retired upon receipt resulting in a reduction of Holdings’ total issued shares as of March 31, 2021.

In March 2021, Holdings entered into an ASR contract with a third-party financial institution to repurchase an aggregate of $200 million of Holdings’ common stock. Pursuant to the ASR, Holdings made a prepayment of $200 million and received initial delivery of 4.9 million shares. The ASR terminated during May 2021, at which time additional shares of 1.1 million were received.

On June 30, 2021, Holdings established an obligation to enter into an ASR with a third-party financial institution to repurchase an aggregate of $300 million of Holdings’ common stock. Pursuant to the ASR, on July 2, 2021, Holdings made a prepayment of $300 million to receive initial delivery of shares. The ASR terminated during the third quarter of 2021 and a total of 9.9 million shares were received. Shares repurchased under the ASR were retired upon receipt resulting in a reduction of Holdings’ total issued shares as of September 30, 2021.

In September 2021, Holdings entered into an ASR contract with a third-party financial institution to repurchase an aggregate of $200 million of Holdings’ common stock. Pursuant to the ASR, Holdings made a prepayment of $200 million and received initial delivery of 5.6 million shares. The ASR terminated during November 2021, at which time additional shares of 0.6 million were received.

On December 22, 2021, Holdings entered into an ASR contract with a third-party financial institution to repurchase an aggregate of $140 million of Holdings’ common stock. Pursuant to the ASR, Holdings made a prepayment of $140 million and received initial delivery of 3.4 million shares. The ASR terminated during January 2022, at which time additional shares of 0.7 million were received. Shares repurchased under the ASR were retired upon receipt resulting in a reduction of Holdings’ total issued shares as of December 31, 2021.

Accumulated Other Comprehensive Income (Loss)

AOCI represents cumulative gains (losses) on items that are not reflected in net income (loss). The balances as of December 31, 2021, and 2020 follow:

	December 31,
	2021		2020
	(in millions)
Unrealized gains (losses) on investments	$	2,684	$	4,797
Defined benefit pension plans	(669)		(935)
Foreign currency translation adjustments	(45)		(34)
Total accumulated other comprehensive income (loss)	1,970		3,828
Less: Accumulated other comprehensive income (loss) attributable to noncontrolling interest	(34)		(35)
Accumulated other comprehensive income (loss) attributable to Holdings	$	2,004	$	3,863

The components of OCI, net of taxes for the years ended December 31, 2021, 2020 and 2019 follow:

229

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

		Year Ended December 31,
		2021		2020		2019
	(in millions)
Change in net unrealized gains (losses) on investments:
Net unrealized gains (losses) arising during the period		$	(2,467)	$	4,887	$	3,301
(Gains) losses reclassified into net income (loss) during the period (1)		(698)		(653)		(161)
Net unrealized gains (losses) on investments		(3,165)		4,234		3,140
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other		1,052		(1,278)		(882)
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(562), $786, and $595)		(2,113)		2,956		2,258
Change in defined benefit plans:
Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost (2)		266		48		(15)
Change in defined benefit plans (net of deferred income tax expense (benefit) of $68, $14, and $10)		266		48		(15)
Foreign currency translation adjustments:
Foreign currency translation gains (losses) arising during the period		(11)		22		5
(Gains) losses reclassified into net income (loss) during the period		—		—		—
Foreign currency translation adjustment		(11)		22		5
Total other comprehensive income (loss), net of income taxes		(1,858)		3,026		2,248
Less: Other comprehensive income (loss) attributable to noncontrolling interest		1		7		(4)
Other comprehensive income (loss) attributable to Holdings		$	(1,859)	$	3,019	$	2,252

______________

(1)See “reclassification adjustments” in Note 3 of the Notes to these Consolidated Financial Statements. Reclassification amounts presented net of income tax expense (benefit) of $186 million, $(174) million, and $(43) million for the years ended December 31, 2021, 2020 and 2019, respectively.

(2)These AOCI components are included in the computation of net periodic costs (see Note 14 of the Notes to these Consolidated Financial Statement).

Investment gains and losses reclassified from AOCI to net income (loss) primarily consist of realized gains (losses) on sales and credit losses of AFS securities and are included in total investment gains (losses), net on the consolidated statements of income (loss). Amounts reclassified from AOCI to net income (loss) as related to defined benefit plans primarily consist of amortization of net (gains) losses and net prior service cost (credit) recognized as a component of net periodic cost and reported in compensation and benefits in the consolidated statements of income (loss). Amounts presented in the table above are net of tax.

230

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

21)    EARNINGS PER COMMON SHARE

The following table presents a reconciliation of net income (loss) and weighted-average common shares used in calculating basic and diluted EPS for the periods indicated:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Weighted-average common shares outstanding:
Weighted-average common shares outstanding — basic	417.4		450.4		493.6
Effect of dilutive securities:
Employee share awards (1)	—		—		—
Weighted-average common shares outstanding — diluted (2)	417.4		450.4		493.6
Net income (loss):
Net income (loss)	$	(24)	$	(349)	$	(1,467)
Less: Net income (loss) attributable to the noncontrolling interest	415		299		297
Net income (loss) attributable to Holdings	(439)		(648)		(1,764)
Less: Preferred stock dividends	79		53		—
Net income (loss) available to Holdings’ common shareholders	$	(518)	$	(701)	$	(1,764)
EPS:
Basic	$	(1.24)	$	(1.56)	$	(3.57)
Diluted	$	(1.24)	$	(1.56)	$	(3.57)

_____________

(1)Calculated using the treasury stock method.

(2)Due to net loss for the years ended December 31, 2021, 2020 and 2019, approximately 3.8 million, 1.7 million and 0.8 million shares were excluded from the diluted EPS calculation.

For the years ended December 31, 2021, 2020 and 2019 , 8.2 million, 10.0 million, and 6.2 million of outstanding stock awards, respectively, were not included in the computation of diluted EPS because their effect was anti-dilutive.

22)    REDEEMABLE NONCONTROLLING INTEREST

The changes in the components of redeemable noncontrolling interests are presented in the table that follows:

	Years Ended December 31,
	2021		2020		2019
	(in millions)
Balance, beginning of period	$	143	$	365	$	187
Net earnings (loss) attributable to redeemable noncontrolling interests	5		(3)		34
Purchase/change of redeemable noncontrolling interests	320		(219)		144
Balance, end of period	$	468	$	143	$	365

23)     HELD-FOR-SALE:

Assets and liabilities related to the business classified as HFS are separately reported in the Consolidated Balance Sheets beginning in the period in which the business is classified as HFS.

231

EQUITABLE HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Corporate Solutions Life Reinsurance Company

On October 27, 2020, Holdings entered into a Master Transaction Agreement with VIAC. See Note 1 of the Notes to these Consolidated Financial Statements for further information. As a result of the agreement, an estimated impairment loss of $15 million, net of income tax, was recorded for the year ended December 31, 2020 and is included in investment gains (losses), net in the consolidated statements of income (loss). The transaction closed on June 1, 2021 with a gain on sale, net of income tax, of less than $1 million. Accordingly, the Company recovered the impairment previously recorded, thus reflecting a gain of $15 million for the year ended December 31, 2021.

As of December 31, 2020, assets of CS Life and CS Life Re to be sold, net of the estimated impairment loss accrual, was $470 million which is reported in assets HFS and total liabilities of $322 million was reported in liabilities HFS. The assets and liabilities HFS are reported in the Corporate and Other segment. On June 1, 2021, Holdings completed the sale of CS Life and CS Life Re. Refer to Note 1 of the Notes to these Consolidated Financial Statement further details.

The following table summarizes the components of assets and liabilities HFS on the Consolidated Balance Sheets as of December 31, 2020:

	December 31,
	2020
	(in millions)
Assets:
Fixed maturity securities	$	235
Trading securities, at fair value	189
Other invested assets	1
Cash and cash equivalents	39
Other assets	25
Assets held-for-sale	489
Less: Loss accrual	(19)
Total assets held-for-sale	$	470
Liabilities:
Future policy benefits and other policyholder's liabilities:	$	320
Broker-dealer related payables	—
Other liabilities	2
Total liabilities held-for-sale	$	322

24)     SUBSEQUENT EVENTS

Share Repurchase Program

On February 9, 2022, the Company’s Board of Directors authorized a new $1.2 billion share repurchase program. Under this program, the Company may, from time to time purchase shares of its common stock through various means. The Company may choose to suspend or discontinue the repurchase program at any time. The repurchase program does not obligate the Company to purchase any particular number of shares.

232

EQUITABLE HOLDINGS, INC.

SCHEDULE I

SUMMARY OF INVESTMENTS — OTHER THAN INVESTMENTS IN RELATED PARTIES

AS OF DECEMBER 31, 2021

	Cost (1)		Fair Value		Carrying Value
	(in millions)
Fixed maturities, AFS:
U.S. government, agencies and authorities	$	13,056	$	15,385	$	15,385
State, municipalities and political subdivisions	586		662		662
Foreign governments	1,124		1,152		1,152
Public utilities	6,493		6,807		6,807
All other corporate bonds	43,679		45,704		45,704
Residential mortgage-backed	90		98		98
Asset-backed	5,933		5,934		5,934
Commercial mortgage-backed	2,427		2,421		2,421
Redeemable preferred stocks	41		53		53
Total fixed maturities, AFS	73,429		78,216		78,216
Fixed maturities, at fair value using the fair value option	1,637		1,641		1,641
Mortgage loans on real estate (2)	14,095		14,308		14,033
Policy loans	4,024		5,050		4,024
Other equity investments	2,662		2,975		2,975
Trading securities	559		631		631
Other invested assets	3,591		3,591		3,591
Total Investments	$	99,997	$	106,412	$	105,111

______________

(1)Cost for fixed maturities represents original cost, reduced by repayments and write-downs and adjusted for amortization of premiums or accretion of discount; cost for equity securities represents original cost reduced by write-downs; cost for other limited partnership interests represents original cost adjusted for equity in earnings and reduced by distributions.

(2)Carrying value for mortgage loans on real estate represents original cost adjusted for amortization of premiums or accretion of discount and reduced by credit loss allowance.

233

EQUITABLE HOLDINGS, INC.

SCHEDULE II

Balance Sheets (Parent Company)

December 31, 2021 and 2020

	December 31,		December 31,
	2021		2020
	(in millions, except share amounts)
ASSETS
Investment in consolidated subsidiaries	$	13,128	$	15,603
Fixed maturities available-for-sale, at fair value (amortized cost of $884 and $183)	874		1,116
Other equity investments	92		66
Total investments	14,094		16,785
Cash and cash equivalents	867		1,972
Goodwill and other intangible assets, net	1,255		1,245
Loans to affiliates	755		675
Current and deferred income taxes assets	600		209
Other assets	547		903
Total Assets	$	18,118	$	21,789
LIABILITIES
Short-term and long-term debt	$	3,839	$	4,115
Employee benefits liabilities	853		1,177
Loans from affiliates	1,900		900
Accrued liabilities	7		21
Total Liabilities	$	6,599	$	6,213
EQUITY ATTRIBUTABLE TO HOLDINGS
Preferred stock and additional paid-in capital, $1 par value and $25,000 liquidation preference	$	1,562	$	1,269
Common stock, $0.01 par value, 2,000,000,000 shares authorized; 520,918,331 and 552,896,328 shares issued, respectively; 391,290,224 and 440,776,011 shares outstanding, respectively	4		5
Additional paid-in capital	1,919		1,985
Treasury stock, at cost, 129,628,107 and 112,120,317 shares, respectively	(2,850)		(2,245)
Retained earnings	8,880		10,699
Accumulated other comprehensive income (loss)	2,004		3,863
Total equity attributable to Holdings	11,519		15,576
Total Liabilities and Equity Attributable to Holdings	$	18,118	$	21,789

The financial information of Equitable Holdings, Inc. should be read in conjunction with the Consolidated Financial Statements and Notes thereto.

234

EQUITABLE HOLDINGS, INC.

SCHEDULE II

STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (PARENT COMPANY)

YEARS ENDED DECEMBER 31, 2021, 2020, AND 2019

	2021		2020		2019
	(in millions)
REVENUES
Equity in income (losses) from continuing operations of consolidated subsidiaries	$	(152)	$	(668)	$	(1,592)
Net investment income (loss)	26		26		29
Investment gains (losses), net	(12)		—		(1)
Other income	—		—		12
Total revenues	(138)		(642)		(1,552)
EXPENSES
Interest expense	241		229		237
Other operating costs and expenses	58		40		83
Total expenses	299		269		320
Income (loss) from continuing operations, before income taxes	(437)		(911)		(1,872)
Income tax (expense) benefit	(2)		263		108
Net income (loss) attributable to Holdings	(439)		(648)		(1,764)
Less: Preferred stock dividends	79		53		—
Net income (loss) available to Holdings' common shareholders	(518)		(701)		(1,764)
Other comprehensive income (loss)	(1,859)		3,019		2,252
Total comprehensive income (loss) attributable to Holdings	$	(2,377)	$	2,318	$	488

The financial information of Equitable Holdings, Inc. should be read in conjunction with the Consolidated Financial Statements and Notes thereto.

235

EQUITABLE HOLDINGS, INC.

SCHEDULE II

STATEMENTS OF CASH FLOWS (PARENT COMPANY)

YEARS ENDED DECEMBER 31, 2021, 2020, AND 2019

	2021		2020		2019
	(in millions)
Net income (loss) attributable to Holdings	$	(439)	$	(648)	$	(1,764)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity in net (earnings) loss of subsidiaries	152		668		1,592
Non-cash long term incentive compensation expense	15		27		69
Amortization and depreciation	60		40		33
Equity (income) loss limited partnerships	(19)		(8)		1
Changes in:
Current and deferred taxes	(151)		(250)		202
Dividends from subsidiaries	792		2,877		1,341
Other, net	14		(135)		(76)
Net cash provided by (used in) operating activities	$	424	$	2,571	$	1,398
Cash flows from investing activities:
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale	$	210	$	131	$	105
Short-term investments	—		—		80
Payment for the purchase/origination of:
Fixed maturities, available-for-sale	—		(1,011)		—
Short-term investments	—		—		—
Other	(7)		(21)		(14)
Net issuance on credit facilities to affiliates	(80)		(115)		(560)
Repayments of loans to affiliates	—		—		572
Proceeds from the sale of subsidiary	215		—		—
Increase in cash and cash equivalents from merger of AXA Tech	—		—		11
Net cash provided by (used in) investing activities	$	338	$	(1,016)	$	194
Cash flows from financing activities:
Issuance of preferred stock	$	293	$	494	$	775
Repayment of long-term debt	(280)		—		(300)
Proceeds from loans from affiliates	1,000		—		900
Repayments of loans from affiliates	—		(300)		(300)
Shareholder dividends paid	(296)		(297)		(285)
Preferred dividends paid	(79)		(53)		—
Purchase of treasury shares	(1,637)		(430)		(1,350)
Capital contribution to subsidiaries	(815)		(350)		(86)
Other, net	(53)		—		—
Net cash provided by (used in) financing activities	$	(1,867)	$	(936)	$	(646)
Change in cash and cash equivalents	(1,105)		619		946
Cash and cash equivalents, beginning of year	1,972		1,353		407
Cash and cash equivalents, end of year	$	867	$	1,972	$	1,353
Non-cash transactions from investing and financing activities:
Dividend of AB Units from subsidiary	$	23	$	—	$	—
Other assets	$	—	$	—	$	4
Other liabilities	$	—	$	—	$	(16)

The financial information of Equitable Holdings, Inc. should be read in conjunction with the Consolidated Financial Statements and Notes thereto.

236

EQUITABLE HOLDINGS, INC.

SCHEDULE II

NOTES TO PARENT COMPANY FINANCIAL STATEMENTS

1)    BASIS OF PRESENTATION

The financial information of Holdings should be read in conjunction with the Consolidated Financial Statements and Notes thereto. The Company is the holding company for a diversified financial services organization.

2)    LOANS TO AFFILIATES

On November 4, 2019, Holdings made available to AB a $900 million committed, unsecured senior credit facility (the “EQH Facility”). The EQH Facility matures on November 4, 2024 and is available for AB's general business purposes. Borrowings by AB under the EQH Facility generally bear interest at a rate per annum based on prevailing overnight commercial paper rates. The EQH Facility contains affirmative, negative and financial covenants which are substantially similar to those in AB’s committed bank facilities. The EQH Facility also includes customary events of default substantially similar to those in AB’s committed bank facilities, including provisions under which, upon the occurrence of an event of default, all outstanding loans may be accelerated and/or the lender’s commitment may be terminated. Amounts under the EQH Facility may be borrowed, repaid and re-borrowed by AB from time to time until the maturity of the facility. AB or Holdings may reduce or terminate the commitment at any time without penalty upon proper notice. Holdings also may terminate the facility immediately upon a change of control of the general partner. In As of December 31, 2021 and 2020, $755 million and $675 million were outstanding under the EQH Facility respectively .

In 2018, Equitable Financial received a $572 million loan from Holdings. The loan had an interest rate of 3.75% and was repaid in March 2019.

3)    LOANS FROM AFFILIATES

In June 2021, Holdings received a $1.0 billion 10-year term loan from Equitable Financial. The loan has an interest rate of 3.23% and matures in June 2031.

In November 2019, Holdings received a $900 million loan from Equitable Financial. The loan has an interest rate of one- month LIBOR plus 1.33%. The loan matures on November 4, 2024. As of December 31, 2021, $900 million was outstanding on the loan.

In April 2018, Holdings received a $800 million loan from Equitable Financial. The loan has an interest rate of 3.69% and would mature in April 2021. In December 2018, Holdings repaid $200 million of this loan. In December 2019, Holdings repaid $300 million. On December 30, 2020, the remainder of this loan was repaid.

Interest cost related to loans from affiliates totaled $30 million, $32 million and $26 million for the years ended December 31, 2021, 2020 and 2019, respectively.

4)    INCOME TAXES

Holdings and certain of its consolidated subsidiaries and affiliates file a consolidated federal income tax return. Holdings has tax sharing agreements with certain of its subsidiaries and generally will either receive or pay these subsidiaries for utilization of the subsidiaries’ tax benefits or expense. Holdings settles these amounts annually.

5)    ISSUANCE OF SERIES A, SERIES B AND SERIES C FIXED RATE NONCUMULATIVE PERPETUAL PREFERRED STOCK

See Note 20 of the Notes to these Consolidated Financial Statements.

6)    SHARE REPURCHASE

See Note 20 of the Notes to these Consolidated Financial Statements.

237

EQUITABLE HOLDINGS, INC.

SCHEDULE III

SUPPLEMENTARY INSURANCE INFORMATION

AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2021

	Individual Retirement		Group Retirement		Investment Management and Research		Protection Solutions		Corporate and Other		Total
	(in millions)
Deferred policy acquisition costs	$	3,639	$	776	$	—	$	1,066	$	10	$	5,491
Policyholders’ account balances	38,456		13,049		—		15,027		12,825		79,357
Future policy benefits and other policyholders' liabilities	22,904		3		—		4,843		8,967		36,717
Policy charges and premium revenue	1,867		371		—		2,016		343		4,597
Net derivative gains (losses)	(4,386)		(29)		(13)		(83)		46		(4,465)
Net investment income (loss)	1,221		751		25		1,102		747		3,846
Policyholders’ benefits and interest credited	912		303		—		2,478		744		4,437
Amortization of deferred policy acquisition costs	294		2		—		95		2		393
All other operating expenses (1)	814		362		3,241		780		1,178		6,375

AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2020

	Individual Retirement		Group Retirement		Investment Management and Research		Protection Solutions		Corporate and Other		Total
	(in millions)
Deferred policy acquisition costs (2)	$	3,178	$	632	$	—	$	418	$	15	$	4,243
Policyholders’ account balances (2)	30,736		12,828		—		14,875		8,381		66,820
Future policy benefits and other policyholders' liabilities (2)	25,212		9		—		5,031		9,629		39,881
Policy charges and premium revenue	2,034		295		—		2,013		390		4,732
Net derivative gains (losses)	(1,999)		(2)		(36)		413		(98)		(1,722)
Net investment income (loss)	1,337		644		36		941		519		3,477
Policyholders’ benefits and interest credited	3,086		305		—		2,372		785		6,548
Amortization of deferred policy acquisition costs	321		73		—		1,220		(1)		1,613
All other operating expenses (1)	724		284		2,815		546		978		5,347

AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2019

	Individual Retirement		Group Retirement		Investment Management and Research		Protection Solutions		Corporate and Other		Total
	(in millions)
Deferred policy acquisition costs (2)	$	3,285	$	659	$	—	$	1,880	$	13	$	5,837
Policyholders’ account balances (2)	26,359		12,068		—		14,090		6,362		58,879
Future policy benefits and other policyholders' liabilities (2)	20,401		7		—		4,156		10,071		34,635
Policy charges and premium revenue	2,085		279		—		2,148		413		4,925
Net derivative gains (losses)	(3,850)		6		(38)		(28)		(102)		(4,012)
Net investment income (loss)	1,478		593		99		967		562		3,699
Policyholders’ benefits and interest credited	2,321		304		—		2,172		851		5,648
Amortization of deferred policy acquisition costs	283		35		—		274		5		597
All other operating expenses (1)	785		318		2,709		576		1,046		5,434

_____________

(1)Operating expenses are allocated to segments.

(2)Excludes amounts reclassified as HFS.

238

EQUITABLE HOLDINGS, INC.

SCHEDULE IV

REINSURANCE (1)

AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2021, 2020 AND 2019

	Gross Amount		Ceded to Other Companies		Assumed from Other Companies		Net Amount		Percentage of Amount Assumed to Net
					(in millions)
2021
Life insurance in-force	$	484,082	$	185,203	$	31,971	$	330,850	9.7	%
Premiums:
Life insurance and annuities	$	802	$	155	$	181	$	828	21.9	%
Accident and health	168		44		8		132		6.1	%
Total premiums	$	970	$	199	$	189	$	960	19.7	%
2020
Life insurance in-force	$	473,514	$	94,231	$	33,098	$	412,381	8.0	%
Premiums:
Life insurance and annuities	$	805	$	113	$	213	$	905	23.5	%
Accident and health	124		41		9		92		9.8	%
Total premiums	$	929	$	154	$	222	$	997	22.3	%
2019
Life insurance in-force	$	492,780	$	65,427	$	32,365	$	459,718	7.0	%
Premiums:
Life insurance and annuities	$	971	$	101	$	211	$	1,081	19.5	%
Accident and health	97		40		9		66		13.6	%
Total premiums	$	1,068	$	141	$	220	$	1,147	19.2	%

______________

(1)    Includes amounts related to the discontinued group life and health business.

Part II, Item 9.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

Part II, Item 9A    

CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The management of the Company, with the participation of the Company’s Chief Executive Officer (CEO) and Chief Financial Officer (CFO), has evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities and Exchange Act of 1934, as amended) as of December 31, 2021. This evaluation is performed to determine if our disclosure controls and procedures are effective to provide reasonable assurance that (i) information required to be disclosed by the Company in the reports that it files or submits under the Securities and Exchange Act of 1934, as amended, is accumulated and communicated to management, including the Company’s CEO and CFO, as

239

appropriate, to allow timely decisions regarding required disclosure and (ii) such information is recorded, processed, summarized and reported within the time periods specified by the Securities and Exchange Commission’s rules and forms.

Based on this evaluation, the Company’s CEO and CFO concluded that the Company’s disclosure controls and procedures were effective as of December 31, 2021.

Management’s Annual Report on Internal Control Over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting. Management evaluated the design and operating effectiveness of the Company’s internal control over financial reporting based on the criteria established in the Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (the “COSO framework”). Based on the evaluation, management concluded that the Company’s internal control over financial reporting was effective as of December 31, 2021. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The effectiveness of the Company’s internal control over financial reporting as of December 31, 2021 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report, which is included in this Annual Report on Form 10-K.

Changes in Internal Control Over Financial Reporting

There were no changes in the Company’s internal control over financial reporting as defined in Rule 13a-15(f) under the Exchange Act during the quarter ended December 31, 2021, that have affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Part II, Item 9B.

OTHER INFORMATION

None.

Part II, Item 9C.

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not applicable.

Part III, Item 10.

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information required by this item is incorporated by reference to, and will be contained in, the Company’s 2022 Proxy Statement.

Part III, Item 11.

EXECUTIVE COMPENSATION

The information required by this item is incorporated by reference to, and will be contained in, the Company’s 2022 Proxy Statement.

Part III, Item 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Equity Compensation Plan Information

The following table provides information as of December 31, 2021, regarding securities authorized for issuance under our equity compensation plans. All outstanding awards relate to our common stock. For additional information about our equity compensation plans, see Note 15 of Notes to these Consolidated Financial Statements.

Plan category	Number of securities to be issued upon exercise of outstanding options, warrants and rights		Weighted-average exercise price of outstanding options, warrants and rights		Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
	(a)		(b)		(c)
Equity compensation plans approved by security holders
Omnibus Plan	8,321,336	(1)	21.30	(2)	22,081,126
Stock Purchase Plan (3) (4)					5,718,317
Equity compensation plans not approved by security holders	—				—
Total	8,321,336				27,799,443

_____________

(1)Represents 2,441,969 outstanding options, 3,032,385 outstanding RSUs and 2,846,982 outstanding performance shares as of December 31, 2021 under the 2018 & 2019 Omnibus Plan. Totals include dividend equivalents on performance shares of 76,366 and on RSUs of 176,807. The number of performance shares represents the number of shares that would be received based on maximum performance, reduced for cancellations through December 31, 2021. The actual number of shares the Compensation Committee will award at the end of each performance period will range between 0% and 200% of the target number of units granted, based upon a measure of the reported performance of the Company relative to stated goals.

(2)Represents the weighted average exercise price of the options disclosed in column (a).

(3) The Equitable Holdings, Inc. Stock Purchase Plan is a non-qualified Employee Stock Purchase Plan to which up to 8,000,000 shares of common stock were authorized for issuance, all of which have been registered on Form S-8.

(4) Through December 31, 2021, eligible participants received a 15% match on Holdings share purchases up to a maximum of $3,750 per

calendar year. Beginning January 1, 2022, eligible participants will receive a 10% match on Holdings share purchases, up to a maximum of $1,000 per calendar year. Employer matching contributions will be used to purchase additional shares for the participant. Participants may not contribute more than $50,000 through payroll deductions during any calendar year.

All of the other information required by this item is incorporated by reference to, and will be contained in, the Company’s 2022 Proxy Statement.

241

Part III, Item 13.

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information required by this item is incorporated by reference to, and will be contained in, the Company’s 2022 Proxy Statement.

Part III, Item 14.

PRINCIPAL ACCOUNTANT FEES AND SERVICES

The information required by this item is incorporated by reference to, and will be contained in, the Company’s 2022 Proxy Statement.

Part IV, Item 15.

EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

The following documents are filed as part of this report:

		Page Number
1.	Financial Statements—Item 8. Financial Statements and Supplementary Data	126
2.	Financial Statement Schedules:
	Schedule I—Summary of Investments Other Than Investments in Related Parties as of December 31, 2021	232
	Schedule II—Condensed Financial Information of Parent Company as of December 31, 2020 and 2019, and for the years ended December 31, 2021, 2020 and 2019	234
	Schedule III—Supplementary Insurance Information as of December 31, 2020 and 2019 and for the years ended December 31, 2021, 2020 and 2019	238
	Schedule IV—Reinsurance for the years ended December 31, 2021, 2020 and 2019	239
3.	Exhibits: See the accompanying Index to Exhibits.	249

Part IV, Item 16.

FORM 10-K SUMMARY

None.

GLOSSARY

Selected Financial Terms

Account Value (“AV”)	Generally equals the aggregate policy account value of our retirement and protection products. General Account AV refers to account balances in investment options that are backed by the General Account while Separate Accounts AV refers to Separate Accounts investment assets.
Alternative investments	Investments in real estate and real estate joint ventures and other limited partnerships.
Assets under administration (“AUA”)	Includes non-insurance client assets that are invested in our savings and investment products or serviced by our Equitable Advisors platform. We provide administrative services for these assets and generally record the revenues received as distribution fees.
Annualized Premium	100% of first year recurring premiums (up to target) and 10% of excess first year premiums or first year premiums from single premium products.

242

Assets under management (“AUM”)	Investment assets that are managed by one of our subsidiaries and includes: (i) assets managed by AB, (ii) the assets in our GAIA portfolio and (iii) the Separate Account assets of our retirement and protection businesses. Total AUM reflects exclusions between segments to avoid double counting.
Combined RBC Ratio	Calculated as the overall aggregate RBC ratio for the Company’s insurance subsidiaries including capital held for its life insurance and variable annuity liabilities and non-variable annuity insurance liabilities.
Conditional tail expectation (“CTE”)	Calculated as the average amount of total assets required to satisfy obligations over the life of the contract or policy in the worst x% of scenarios. Represented as CTE (100 less x). Example: CTE95 represents the worst five percent of scenarios.
Deferred policy acquisition cost (“DAC”)	Represents the incremental costs related directly to the successful acquisition of new and certain renewal insurance policies and annuity contracts and which have been deferred on the balance sheet as an asset.
Deferred sales inducements (“DSI”)	Represent amounts that are credited to a policyholder’s account balance that are higher than the expected crediting rates on similar contracts without such an inducement and that are an incentive to purchase a contract and also meet the accounting criteria to be deferred as an asset that is amortized over the life of the contract.
Dividends Received Deduction (“DRD”)	A tax deduction under U.S. federal income tax law received by a corporation on the dividends it receives from other corporations in which it has an ownership stake.
Fee-Type Revenue	Revenue from fees and related items, including policy charges and fee income, premiums, investment management and service fees, and other income.
Gross Premiums	FYP and Renewal premium and deposits.

Invested assets	Includes fixed maturity securities, equity securities, mortgage loans, policy loans, alternative investments and short-term investments.
P&C	Property and casualty.
Premium and deposits	Amounts a policyholder agrees to pay for an insurance policy or annuity contract that may be paid in one or a series of payments as defined by the terms of the policy or contract.
Protection Solutions Reserves	Equals the aggregate value of Policyholders’ account balances and Future policy benefits for policies in our Protection Solutions segment.
Reinsurance	Insurance policies purchased by insurers to limit the total loss they would experience from an insurance claim.
Renewal premium and deposits	Premiums and deposits after the first twelve months of the policy or contract.
Risk-based capital (“RBC”)	Rules to determine insurance company statutory capital requirements. It is based on rules published by the National Association of Insurance Commissioners (“NAIC”).
Total adjusted capital (“TAC”)	Primarily consists of capital and surplus, and the asset valuation reserve.
Value of business acquired (“VOBA”)	Present value of estimated future gross profits from in-force policies of acquired businesses.
Product Terms
401(k)	A tax-deferred retirement savings plan sponsored by an employer. 401(k) refers to the section of the Internal Revenue Code of 1986, as amended (the “Code”) pursuant to which these plans are established.
403(b)	A tax-deferred retirement savings plan available to certain employees of public schools and certain tax-exempt organizations. 403(b) refers to the section of the Code pursuant to which these plans are established.
457(b)	A deferred compensation plan that is available to governmental and certain non-governmental employers. 457(b) refers to the section of the Code pursuant to which these plans are established.

243

Accumulation phase	The phase of a variable annuity contract during which assets accumulate based on the policyholder’s lump sum or periodic deposits and reinvested interest, capital gains and dividends that are generally tax-deferred.
Affluent	Refers to individuals with $250,000 to $999,999 of investable assets.
Annuitant	The person who receives annuity payments or the person whose life expectancy determines the amount of variable annuity payments upon annuitization of an annuity to be paid for life.
Annuitization	The process of converting an annuity investment into a series of periodic income payments, generally for life.

Benefit base	A notional amount (not actual cash value) used to calculate the owner’s guaranteed benefits within an annuity contract. The death benefit and living benefit within the same contract may not have the same benefit base.
Cash surrender value	The amount an insurance company pays (minus any surrender charge) to the policyholder when the contract or policy is voluntarily terminated prematurely.
Deferred annuity	An annuity purchased with premiums paid either over a period of years or as a lump sum, for which savings accumulate prior to annuitization or surrender, and upon annuitization, such savings are exchanged for either a future lump sum or periodic payments for a specified length of time or for a lifetime.
Dollar-for-dollar withdrawal	A method of calculating the reduction of a variable annuity benefit base after a withdrawal in which the benefit is reduced by one dollar for every dollar withdrawn.
Fixed annuity	An annuity that guarantees a set annual rate of return with interest at rates we determine, subject to specified minimums. Credited interest rates are guaranteed not to change for certain limited periods of time.
Fixed Rate GMxB	Guarantees on our individual variable annuity products that are based on a rate that is fixed at issue.
Floating Rate GMxB	Guarantees on our individual variable annuity products that are based on a rate that varies with a specified index rate, subject to a cap and floor.
Future policy benefits	Future policy benefits for the annuities business are comprised mainly of liabilities for life-contingent income annuities, and liabilities for the variable annuity guaranteed minimum benefits accounted for as insurance. Future policy benefits for the life business are comprised mainly of liabilities for traditional life and certain liabilities for universal and variable life insurance contracts (other than the Policyholders’ account balance).
General Account Investment Portfolio	The invested assets held in the General Account.
General Account	The assets held in the general accounts of our insurance companies as well as assets held in our separate accounts on which we bear the investment risk.
GMxB	A general reference to all forms of variable annuity guaranteed benefits, including guaranteed minimum living benefits, or GMLBs (such as GMIBs, GMWBs and GMABs), and guaranteed minimum death benefits, or GMDBs (inclusive of return of premium death benefit guarantees).
Guaranteed income benefit (“GIB”)	An optional benefit which provides the policyholder with a guaranteed lifetime annuity based on predetermined annuity purchase rates applied to a GIB benefit base, with annuitization automatically triggered if and when the contract AV falls to zero.

Guaranteed minimum accumulation benefits (“GMAB”) An optional benefit (available for an additional cost) which entitles an annuitant to a minimum payment, typically in lump-sum, after a set period of time, typically referred to as the accumulation period. The minimum payment is based on the benefit base, which could be greater than the underlying AV.

244

Guaranteed minimum death benefits (“GMDB”)	An optional benefit (available for an additional cost) that guarantees an annuitant’s beneficiaries are entitled to a minimum payment based on the benefit base, which could be greater than the underlying AV, upon the death of the annuitant.
Guaranteed minimum income benefits (“GMIB”)	An optional benefit (available for an additional cost) where an annuitant is entitled to annuitize the policy and receive a minimum payment stream based on the benefit base, which could be greater than the underlying AV.
Guaranteed minimum living benefits (“GMLB”)	A reference to all forms of guaranteed minimum living benefits, including GMIBs, GMWBs and GMABs (does not include GMDBs).
Guaranteed minimum withdrawal benefits (“GMWB”)	An optional benefit (available for an additional cost) where an annuitant is entitled to withdraw a maximum amount of their benefit base each year, for which cumulative payments to the annuitant could be greater than the underlying AV.
Guaranteed Universal Life (“GUL”)	A universal life insurance offering with a lifetime no lapse guarantee rider, otherwise known as a guaranteed UL policy. With a GUL policy, the premiums are guaranteed to last the life of the policy.
Guaranteed withdrawal benefit for life (“GWBL”)	An optional benefit (available for an additional cost) where an annuitant is entitled to withdraw a maximum amount of their benefit base each year, for the duration of the policyholder’s life, regardless of account performance.
High net worth	Refers to individuals with $1,000,000 or more of investable assets.
Index-linked annuities	An annuity that provides for asset accumulation and asset distribution needs with an ability to share in the upside from certain financial markets such as equity indices, or an interest rate benchmark. With an index-linked annuity, the policyholder’s AV can grow or decline due to various external financial market indices performance.
Indexed Universal Life (“IUL”)	A permanent life insurance offering built on a universal life insurance framework that uses an equity-linked approach for generating policy investment returns.
Living benefits	Optional benefits (available at an additional cost) that guarantee that the policyholder will get back at least his original investment when the money is withdrawn.
Mortality and expense risk fee (“M&E fee”)	A fee charged by insurance companies to compensate for the risk they take by issuing life insurance and variable annuity contracts.

Net flows	Net change in customer account balances in a period including, but not limited to, gross premiums, surrenders, withdrawals and benefits. It excludes investment performance, interest credited to customer accounts and policy charges.
Policyholder account balances	Annuities. Policyholder account balances are held for fixed deferred annuities, the fixed account portion of variable annuities and non-life contingent income annuities. Interest is credited to the policyholder’s account at interest rates we determine which are influenced by current market rates, subject to specified minimums. Life Insurance Policies. Policyholder account balances are held for retained asset accounts, universal life policies and the fixed account of universal variable life insurance policies. Interest is credited to the policyholder’s account at interest rates we determine which are influenced by current market rates, subject to specified minimums.
Return of premium (“ROP”) death benefit	This death benefit pays the greater of the account value at the time of a claim following the owner’s death or the total contributions to the contract (subject to adjustment for withdrawals). The charge for this benefit is usually included in the M&E fee that is deducted daily from the net assets in each variable investment option. We also refer to this death benefit as the Return of Principal death benefit.
Rider	An optional feature or benefit that a policyholder can purchase at an additional cost.
Roll-up rate	The guaranteed percentage that the benefit base increases by each year.
Separate Account	Refers to the separate account investment assets of our insurance subsidiaries excluding the assets held in those separate accounts on which we bear the investment risk.

245

Surrender charge A fee paid by a contract owner for the early withdrawal of an amount that exceeds a specific percentage or for cancellation of the contract within a specified amount of time after purchase.

Surrender rate	Represents annualized surrenders and withdrawals as a percentage of average AV.
Universal life (“UL”) products	Life insurance products that provide a death benefit in return for payment of specified annual policy charges that are generally related to specific costs, which may change over time. To the extent that the policyholder chooses to pay more than the charges required in any given year to keep the policy in-force, the excess premium will be placed into the AV of the policy and credited with a stated interest rate on a monthly basis.
Variable annuity	A type of annuity that offers guaranteed periodic payments for a defined period of time or for life and gives purchasers the ability to invest in various markets though the underlying investment options, which may result in potentially higher, but variable, returns.
Variable Universal Life (“VUL”)	Universal life products where the excess amount paid over policy charges can be directed by the policyholder into a variety of Separate Account investment options. In the Separate Account investment options, the policyholder bears the entire risk and returns of the investment results.
Whole Life (“WL”)	A life insurance policy that is guaranteed to remain in-force for the policyholder’s lifetime, provided the required premiums are paid.

ACRONYMS

•“AB” or “AllianceBernstein” means AB Holding and ABLP.

•“AB Holding” means AllianceBernstein Holding L.P., a Delaware limited partnership.

•“AB Holding Units” means units representing assignments of beneficial ownership of limited partnership interests in AB Holding.

•“AB Units” means units of limited partnership interests in ABLP.

•“ABLP” means AllianceBernstein L.P., a Delaware limited partnership and the operating partnership for the AB business.

•“AFS” means available-for-sale

•“AGL” means AXA Global Life

•“AOCI” means accumulated other comprehensive income

•“ASC” means Accounting Standards Codification

•“ASR” means accelerated share repurchase

•“ASU” means Accounting Standards Update

•“AUM” means assets under management

•“AUA” means assets under administration

•“AV” means Account Value

•“AVR” means asset valuation reserve

•“AXA” means AXA S.A., a société anonyme organized under the laws of France, and formerly our controlling stockholder.

•“AXA CS” means AXA America Corporate Solutions, Inc.

•“AXA Financial” means AXA Financial, Inc., a Delaware corporation and a former wholly-owned direct subsidiary of Holdings. On October 1, 2018, AXA Financial merged with and into Holdings, with Holdings assuming the obligations of AXA Financial.

•“AXA RSUs” means AXA restricted stock units

•“AXA Tech” means AXA Technology Services America, Inc, formerly a Delaware corporation and wholly-owned subsidiary of Holdings which merged into Holdings in November 2019.

•“BPs” means basis points

•“CDS” means credit default swaps

•“CDSC” means contingent deferred sales commissions

•“CEA” means Commodity Exchange Act

•“CECL” means current expected credit losses

•“CFTC” means U.S. Commodity Futures Trading Commission

•“CLO” means collateralized loan obligation

•“COLI” means corporate owned life insurance

•“Company” means Equitable Holdings, Inc. with its consolidated subsidiaries

•“CPH” means CPH Capital Fondsmaeglerselskab A/S

•“CS Life” means Corporate Solutions Life Reinsurance Company, a Delaware corporation and a wholly-owned direct subsidiary of Holdings.

246

•“CS Life RE” means CS Life RE Company, an Arizona corporation and a wholly-owned indirect subsidiary of Holdings.

•“CSA” means credit support annex

•“CTE” means conditional tail expectation

•“DAC” means deferred policy acquisition costs

•“DCO” means designated clearing organization

•“DI” means disability income

•“Dodd-Frank Act” means Dodd-Frank Wall Street Reform and Consumer Protection Act

•“DOL” means U.S. Department of Labor

•“DSC” means debt service coverage

•“DSI” means deferred sales inducement

•“EAFE” means European, Australasia, and Far East

•“EFS” means Equitable Financial Services, LLC, a Delaware corporation and a wholly-owned direct subsidiary of Holdings

•“EIM” means Equitable Investment Management Group, LLC, a Delaware limited liability company and a wholly-owned indirect subsidiary of Holdings.

•“EIMG” means Equitable Investment Management Group, LLC, a Delaware limited liability company and a wholly-owned indirect subsidiary of Holdings.

•“EPS” means earnings per share

•“Equitable Advisors” means Equitable Advisors, LLC, a Delaware limited liability company, our retail broker/dealer for our retirement and protection businesses and a wholly-owned indirect subsidiary of Holdings.

•“Equitable America” means Equitable Financial Life Insurance Company of America (f/k/a MONY Life Insurance Company of America), an Arizona corporation and a wholly-owned indirect subsidiary of Holdings.

•“Equitable Distributors” means Equitable Distributors, LLC, a Delaware limited liability company, our wholesale broker/dealer for our retirement and protection businesses and a wholly-owned indirect subsidiary of Holdings.

•“Equitable L&A” means Equitable Financial Life and Annuity Company, a Colorado corporation and a wholly-owned indirect subsidiary of Holdings.

•“Equitable Financial” means Equitable Financial Life Insurance Company, a New York corporation, a life insurance company and a wholly-owned subsidiary of EFS.

•“Equitable Network” means Equitable Network, LLC, a Delaware limited liability company and wholly-owned indirect subsidiary of Holdings and

its subsidiary, Equitable Network of Puerto Rico, Inc.

•“EQ Premier VIP Trust” means EQ Premier VIP Trust, a series trust that is a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “Investment Company Act”), as an open-end management investment company.

•“EQAT” means EQ Advisors Trust, a series trust that is a Delaware statutory trust and is registered under the Investment Company Act as an open-end management investment company.

•“EQ AZ Life Re” means EQ AZ Life Re Company, an Arizona corporation and a wholly-owned indirect subsidiary of Holdings.

•“ERISA” means Employee Retirement Income Security Act of 1974

•“ESG” means environmental,social and governance

•“ETF” means exchange traded funds

•“ETR” means effective tax rate

•“Exchange Act” means Securities Exchange Act of 1934, as amended

•“FABN” means Funding Agreement Backed Notes Program

•“FASB” means Financial Accounting Standards Board

•“FDIC” means Federal Deposit Insurance Corporation

•“FHLB” means Federal Home Loan Bank

•“FINRA” means Financial Industry Regulatory Authority, Inc.

•“FIO” means Federal Insurance Office

•“FSOC” means Financial Stability Oversight Council

•“FYP” means first year premium and deposits

•The “General Partner” means AllianceBernstein Corporation, a Delaware corporation and the general partner of AB Holding and ABLP.

•“GIO” means guaranteed interest option

•“GUL” means guaranteed universal life

•“HFS” means held-for-sale

•“Holdings” means Equitable Holdings, Inc.

•“HTM” means held-to-maturity

•“Investment Advisers Act” means Investment Advisers Act of 1940, as amended

•“IPO” means initial public offering

•“IRS” means Internal Revenue Service

•“ISDA Master Agreement” means International Swaps and Derivatives Association Master Agreement

247

•“IUL” means indexed universal life

•“IUS” means Investments Under Surveillance

•“K-12 education market” means individuals in the kindergarten, primary and secondary education market

•“LGD” means loss given default

•“LIBOR” means London Interbank Offered Rate

•“LTV” means loan-to-value

•“Manual” means Accounting Practices and Procedures Manual as established by the NAIC

•“MD&A” means Management’s Discussion and Analysis of Financial Condition and Results of Operations

•“MLICA” means MONY Life Insurance Company of the Americas, Ltd

•“MRBs” means market risk benefits

•“MSO” means Market Stabilizer Option

•“NAIC” means National Association of Insurance Commissioners

•“NAR” means net amount at risk

•“NAV” means net asset value

•“NFA” means National Futures Association

•“NLG” means no-lapse guarantee

•“NYDFS” means New York State Department of Financial Services

•“OCI” means other comprehensive income

•“OTC” means over-the-counter

•“PBO” means projected benefit obligation

•“PD” means probability of default

•“Pension Act” means Pension Protection Act of 2006

•“Performance Share Plan” means AXA International Performance Shares Plan

•“PFBL” means profits followed by losses

•“R&P” means retirement and protection

•“RBG” means the Retirement Benefits Group, a specialized division of Equitable Advisors

•“REIT” means real estate investment trusts

•“RMD” means required minimum distributions

•“RoU” means right of use

•“RSUs” means restricted stock units

•“RTM” means reversion to the mean

•“SAP” means statutory accounting principles

•“SCB LLC” means Sanford C. Bernstein & Co., LLC, a registered investment adviser and broker-dealer.

•“SCBL” means Sanford C. Bernstein Limited

•“SCS” means Structured Capital Strategies

•“SEC” means U.S. Securities and Exchange Commission

•“Series A Preferred Stock” means Holdings’ Series A Fixed Rate Noncumulative Perpetual Preferred Stock

•“Series B Preferred Stock” means Holdings’ Series B Fixed Rate Reset Noncumulative Perpetual Preferred Stock

•“Series C Preferred Stock” means Holdings’ Series C Fixed Rate Reset Noncumulative Perpetual Preferred Stock

•“SIO” means structured investment option

•“SPE” means special purpose entity

•“Stock Option Plan” means AXA Stock Option Plan for AXA Financial Employees and Associates

•“SVO” means Securities Valuation Office

•“TDRs” means troubled debt restructurings

•“TIPS” means treasury inflation-protected securities

•“TLA” means trademark license agreement

•“TSA” means transitional service agreement

•“U.S. GAAP” means accounting principles generally accepted in the United States of America

•“UL” means universal life

•“ULSG” means universal life products with secondary guarantee

•“USFL” means U.S. Financial Life Insurance Company

•“Venerable” means Venerable Holdings, Inc., a Delaware corporation

•“VIAC” means Venerable Insurance and Annuity Company

•“VIE” means variable interest entity

•“VISL” means variable interest-sensitive life

•“VOE” means voting interest entity

•“VUL” means variable universal life

248

INDEX TO EXHIBITS

Exhibit Number	Exhibit Description
3.1	Amended and Restated Certificate of Incorporation of AXA Equitable Holdings, Inc. (incorporated by reference to Exhibit 3.1 to our Form 10-Q for the quarterly period ending March 31, 2018, as filed on June 20, 2018 (the “Q-1 2018 Form 10-Q”)).
3.1.1	Certificate of Amendment of Certificate of Incorporation, effective January 13, 2020 (incorporated by reference to Exhibit 3.1 to our Form 8-K, filed on January 10, 2010).
3.2	Fourth Amended and Restated By-laws of Equitable Holdings, Inc. (incorporated by reference to Exhibit 3.1 to our Form 8-K filed on February 17, 2021).
3.3	Certificate of Designations with respect to the Series A Preferred Stock of the Company, dated November 21, 2019 (incorporated by reference to Exhibit 3.1 to our Form 8-K filed on November 21, 2019).
3.4	Certificate of Designations with respect to the Series B Preferred Stock of the Company, filed August 7, 2020 (incorporated by reference to Exhibit 3.1 to our Form 8-K filed on August 11, 2020).
3.5	Certificate of Designation with respect to the Series C Preferred Stock of the Company, dated January 6, 2021 (incorporated by reference to Exhibit 3.1 to our Form 8-K filed on January 6, 2021).
4.1	Form of Common Stock Certificate (incorporated by reference to Exhibit 4.1 to the Registration Statement on Form S-1 of AXA Equitable Holdings, Inc., File No. 333-221521 (the “IPO Form S-1”)).
4.2	Indenture, dated as of December 1, 1993 from AXA Financial, Inc. to The Bank of NY Mellon Trust Company, N.A. (formerly known as Chemical Bank), as Trustee (incorporated by reference to Exhibit 4.2 to the IPO Form S-1).
4.3	Fourth Supplemental Indenture, dated April 1, 1998, from AXA Financial, Inc. to The Chase Manhattan Bank (formerly known as Chemical Bank), as Trustee, together with forms of global Senior Note and global Senior Indenture (incorporated by reference to Exhibit 4.3 to the IPO Form S-1).
4.4	Fifth Supplemental Indenture, dated October 1, 2018, among AXA Equitable Holdings, Inc. AXA Financial, Inc. and The Bank of NY Mellon Trust Company, N.A., as Trustee (incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K, filed on October 1, 2018).
4.5	Indenture, dated as of April 20, 2018, among AXA Equitable Holdings, Inc., as issuer, Wilmington Saving Fund Society, FSB, as trustee, and Citibank, N.A., as security registrar and paying agent (incorporated by reference to Exhibit 4.4 to the IPO Form S-1).
4.6	First Supplemental Indenture, dated as of April 20, 2018, among AXA Equitable Holdings, Inc., as issuer, Wilmington Saving Fund Society, FSB, as trustee, and Citibank, N.A., as security registrar and paying agent (incorporated by reference to Exhibit 4.5 to the IPO Form S-1).
4.7	Second Supplemental Indenture, dated as of April 20, 2018, among AXA Equitable Holdings, Inc., as issuer, Wilmington Saving Fund Society, FSB, as trustee, and Citibank, N.A., as security registrar and paying agent (incorporated by reference to Exhibit 4.6 to the IPO Form S-1).
4.8	Third Supplemental Indenture, dated as of April 20, 2018, among AXA Equitable Holdings, Inc., as issuer, Wilmington Saving Fund Society, FSB, as trustee, and Citibank, N.A., as security registrar and paying agent (incorporated by reference to Exhibit 4.7 to the IPO Form S-1).
4.9#	Description of the Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934.
10.1	Master Agreement, dated as of April 10, 2013, by and among AXA Equitable Financial Services, LLC, AXA Financial, Inc. and Protective Life Insurance Company (incorporated by reference to Exhibit 10.5 to the IPO Form S-1).
10.2†	Employment Agreement, dated as of March 9, 2011, by and between AXA Financial, Inc. and Mark Pearson (incorporated by reference to Exhibit 10.7 to the IPO Form S-1).
10.2.1†	Letter Agreement, dated February 19, 2013, between AXA Financial, Inc., AXA Equitable Life Insurance Company and Mark Pearson (incorporated by reference to Exhibit 10.7.1 to the IPO Form S-1).
10.2.2†	Letter Agreement, dated May 14, 2015, between AXA Financial, Inc., AXA Equitable Life Insurance Company and Mark Pearson (incorporated by reference to Exhibit 10.7.2 to the IPO Form S-1).
10.2.3†	Letter Agreement, dated February 27, 2019, between AXA Equitable Holdings, Inc., AXA Equitable Life Insurance Company and Mark Pearson. (incorporated by reference to Exhibit 10.7.3 to our Form 10-K for the fiscal year ended December 31, 2018, as filed March 8, 2019 (the “2018 Form 10-K”)).
10.2.4†	Waiver Agreement, dated May 9, 2019, to Mark Pearson’s Employment Agreement dated March 9, 2011 (incorporated by reference to Exhibit 10.1 to AXA Equitable Holdings, Inc.’s Form 10-Q for the quarterly period ending June 30, 2019, as filed on August 9, 2019).

249

10.2.5†	Letter Agreement, dated December 18, 2019, between AXA Equitable Holdings, Inc., AXA Equitable Life Insurance Company and Mark Pearson (incorporated by reference to Exhibit 10.1 to our Form 8-K filed on December 19, 2019).
10.3†	Director Indemnification Agreement, dated May 4, 2018, between AXA Equitable Holdings, Inc. and each of its directors (incorporated by reference to Exhibit 10.6 to the Q-1 2018 Form 10-Q).
10.4	Commercial Paper Dealer Agreement 4(a)(2) Program, dated as of June 1, 2015, between AllianceBernstein L.P., as Issuer, and Citigroup Global Markets Inc., as Dealer (incorporated by reference to Exhibit 10.08 to AB Holding’s Form 10-K for the fiscal year ended December 31, 2015, as filed February 11, 2016).
10.5	Commercial Paper Dealer Agreement 4(a)(2) Program, dated as of June 1, 2015, between AllianceBernstein L.P., as Issuer, and Credit Suisse Securities (USA) LLC, as Dealer (incorporated by reference to Exhibit 10.09 to AB Holding’s Form 10-K for the fiscal year ended December 31, 2015, as filed February 11, 2016).
10.6	Commercial Paper Dealer Agreement 4(a)(2) Program, dated as of June 1, 2015, between AllianceBernstein L.P., as Issuer, and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Dealer (incorporated by reference to Exhibit 10.10 to AB Holding’s Form 10-K for the fiscal year ended December 31, 2015, as filed February 11, 2016).
10.7	Amended and Restated Credit Agreement, dated as of October 13, 2021 (incorporated by reference to Exhibit 10.01 of AB Holding’s Form 8-K, as filed October 19, 2021)
10.8†	Profit Sharing Plan for Employees of AllianceBernstein L.P., as amended and restated as of January 1, 2015 and as further amended as of January 1, 2017 (incorporated by reference to Exhibit 10.05 to AB Holding’s Form 10-K for the fiscal year ended December 31, 2015, as filed February 11, 2016).
10.8.1†	Amendment to the Profit Sharing Plan for Employees of AllianceBernstein L.P., dated as of October 20, 2016 and effective as of January 1, 2017 (incorporated by reference to Exhibit 10.06 to AB Holding’s Form 10-K for the fiscal year ended December 31, 2017, as filed February 13, 2018).
10.8.2†	Amendment to the Profit Sharing Plan for Employees of AllianceBernstein L.P., dated as of April 1, 2018 (incorporated by reference to Exhibit 10.12 to AB Holding’s Form 10-K for the fiscal year ended December 31, 2018, as filed February 13, 2019).
10.9†	Employment Agreement, dated as of April 28, 2017, among Seth Bernstein, AllianceBernstein Holding L.P., AllianceBernstein L.P. and AllianceBernstein Corporation (incorporated by reference to Exhibit 10.3 to AB Holding’s Form 8-K as filed May 1, 2017).
10.9.1†	Amendment to Seth P. Bernstein’s Employment Agreement (incorporated by reference to Exhibit 10.01 to AB Holding’s Form 10-K for the fiscal year ended December 31, 2018, as filed February 13, 2019).
10.9.2†	Amendment No. 2 to Seth P. Bernstein’s Employment Agreement (incorporated by reference to Exhibit 10.2 to our Form 8-K filed on December 19, 2019).
10.10†	AB 2017 Long Term Incentive Plan (incorporated by reference to Exhibit 10.06 to AB Holding’s Form 10-K for the fiscal year ended December 31, 2017, as filed February 13, 2018).
10.11	Amended and Restated Revolving Credit Agreement, dated as of June 24, 2021, by and among the Company, the Subsidiary Account Parties party thereto, the banks party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.1 to our Form 8-K filed on June 29, 2021).
10.12	Reimbursement Agreement by and among AXA Equitable Holdings, Inc. the Subsidiary Account Parties (as defined therein) party thereto and Natixis, New York Branch (incorporated by reference to Exhibit 10.25 to the IPO Form S-1 ).
10.12.1	Amendment No. 1 to Reimbursement Agreement by and among Equitable Holdings, Inc., the Subsidiary Account Parties (as defined therein) party thereto and Natixis, New York Branch (incorporated by reference to Exhibit 10.2 to our Form 8-K filed on March 26, 2021).
10.12.2	Amendment No. 2 to Reimbursement Agreement by and among Equitable Holdings, Inc., the Subsidiary Account Parties (as defined therein) party thereto and Natixis, New York Branch (incorporated by reference to Exhibit 10.2 to our Form 8-K filed on June 29, 2021).
10.13	Reimbursement Agreement by and among AXA Equitable Holdings, Inc. the Subsidiary Account Parties (as defined therein) party thereto and HSBC Bank USA, National Association (incorporated by reference to Exhibit 10.26 to the IPO Form S-1).
10.13.1	Amendment No. 1 to Reimbursement Agreement by and among Equitable Holdings, Inc., the Subsidiary Account Parties (as defined therein) party thereto and HSBC Bank USA, National Association (incorporated by reference to Exhibit 10.3 to our Form 8-K filed on March 26, 2021).
10.13.2	Amendment No. 2 to Reimbursement Agreement by and among Equitable Holdings, Inc., the Subsidiary Account Parties (as defined therein) party thereto and HSBC Bank USA, National Association (incorporated by reference to Exhibit 10.3 to our Form 8-K filed on June 29, 2021).
10.14	Reimbursement Agreement by and among AXA Equitable Holdings, Inc. the Subsidiary Account Parties (as defined therein) party thereto and Citibank Europe PLC (incorporated by reference to Exhibit 10.27 to the IPO Form S-1).

250

10.14.1	Amendment No. 1 to Reimbursement Agreement by and among Equitable Holdings, Inc., the Subsidiary Account Parties (as defined therein) party thereto and Citibank Europe PLC (incorporated by reference to Exhibit 10.4 to our Form 8-K filed on March 26, 2021).
10.14.2	Amendment No. 2 to Reimbursement Agreement by and among Equitable Holdings, Inc., the Subsidiary Account Parties (as defined therein) party thereto and Citibank Europe PLC (incorporated by reference to Exhibit 10.4 to our Form 8-K filed on June 29, 2021).
10.15	Reimbursement Agreement by and among AXA Equitable Holdings, Inc. the Subsidiary Account Parties (as defined therein) party thereto and Credit Agricole Corporate and Investment Bank (incorporated by reference to Exhibit 10.28 to the IPO Form S-1).
10.15.1	Amendment No. 1 to Reimbursement Agreement by and among Equitable Holdings, Inc., the Subsidiary Account Parties (as defined therein) party thereto and Credit Agricole Corporate and Investment Bank (incorporated by reference to Exhibit 10.5 to our Form 8-K filed on March 26, 2021).
10.15.2	Amendment No. 2 to Reimbursement Agreement by and among Equitable Holdings, Inc., the Subsidiary Account Parties (as defined therein) party thereto and Credit Agricole Corporate and Investment Bank (incorporated by reference to Exhibit 10.5 to our Form 8-K filed on June 29, 2021).
10.16	Reimbursement Agreement by and among AXA Equitable Holdings, Inc. the Subsidiary Account Parties (as defined therein) party thereto and Barclays Bank PLC (incorporated by reference to Exhibit 10.29 to the IPO Form S-1).
10.16.1	Amendment No. 1 to Reimbursement Agreement by and among Equitable Holdings, Inc., the Subsidiary Account Parties (as defined therein) party thereto and Barclays Bank PLC (incorporated by reference to Exhibit 10.6 to our Form 8-K filed on March 26, 2021).
10.16.2	Amendment No. 2 to Reimbursement Agreement by and among Equitable Holdings, Inc., the Subsidiary Account Parties (as defined therein) party thereto and Barclays Bank PLC (incorporated by reference to Exhibit 10.6 to our Form 8-K filed on June 29, 2021).
10.17	Reimbursement Agreement by and among AXA Equitable Holdings, Inc. the Subsidiary Account Parties (as defined therein) party thereto and JPMorgan Chase Bank, N.A (incorporated by reference to Exhibit 10.30 to the IPO Form S-1).
10.17.1	Amendment No. 1 to Reimbursement Agreement by and among Equitable Holdings, Inc., the Subsidiary Account Parties (as defined therein) party thereto and JPMorgan Chase Bank, N.A (incorporated by reference to Exhibit 10.7 to our Form 8-K filed on March 26, 2021).
10.17.2	Amendment No. 2 to Reimbursement Agreement by and among Equitable Holdings, Inc., the Subsidiary Account Parties (as defined therein) party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.7 to our Form 8-K filed on June 29, 2021).
10.18	Reimbursement Agreement by and among AXA Equitable Holdings, Inc. the Subsidiary Account Parties (as defined therein) party thereto and Landesbank Hessen-Thüringen Girozentrale, acting through its New York Branch (incorporated by reference to Exhibit 10.31 to the IPO Form S-1).
10.18.1	Second Amendment to Reimbursement Agreement by and among Equitable Holdings, Inc., the Subsidiary Account Parties (as defined therein) party thereto and Landesbank Hessen-Thüringen Girozentrale, acting through its New York Branch (incorporated by reference to Exhibit 10.8 to our Form 8-K filed on March 26, 2021).
10.18.2	Third Amendment to Reimbursement Agreement by and among Equitable Holdings, Inc., the Subsidiary Account Parties (as defined therein) party thereto and Landesbank Hessen-Thüringen Girozentrale, acting through its New York Branch (incorporated by reference to Exhibit 10.8 to our Form 8-K filed on June 29, 2021).
10.18.3	Fourth Amendment to Reimbursement Agreement by and among Equitable Holdings, Inc., the Subsidiary Account Parties (as defined therein) party thereto and Landesbank Hessen-Thüringen Girozentrale, acting through its New York Branch (incorporated by reference to Exhibit 10.1 to our Form 8-K filed on December 16, 2021).
10.19	Reimbursement Agreement by and among AXA Equitable Holdings, Inc. the Subsidiary Account Parties (as defined therein) party thereto and Commerzbank AG, New York Branch (incorporated by reference to Exhibit 10.32 to the IPO Form S-1).
10.19.1	Amendment No. 1 to Reimbursement Agreement by and among Equitable Holdings, Inc., the Subsidiary Account Parties (as defined therein) party thereto and Commerzbank AG, New York Branch (incorporated by reference to Exhibit 10.9 to our Form 8-K filed on March 26, 2021).
10.19.2	Amendment No. 2 to Reimbursement Agreement by and among Equitable Holdings, Inc., the Subsidiary Account Parties (as defined therein) party thereto and Commerzbank AG, New York Branch (incorporated by reference to Exhibit 10.9 to our Form 8-K filed on June 29, 2021).
10.20†	Equitable Severance Benefit Plan (incorporated by reference to Exhibit 10.45 to the IPO Form S-1).
10.21†	Equitable Supplemental Severance Plan for Executives (incorporated by reference to Exhibit 10.25 to the Q-1 2018 Form 10-Q).

251

10.22.1†	Equitable Supplemental Severance Plan for Executives, as amended and restated as of August 9, 2019 (incorporated by reference to Exhibit 10.2 to our Form 10-Q for the quarterly period ending June 30, 2019, as filed on August 9, 2019).
10.23†	Equitable Executive Survivor Benefits Plan (incorporated by reference to Exhibit 10.47 to the IPO Form S-1).
10.24†	Amended and Restated Variable Deferred Compensation Plan for Executives (incorporated by reference to Exhibit 10.48 to the IPO Form S-1).
10.25†	Amended and Restated Equitable Post-2004 Variable Deferred Compensation Plan for Executives (incorporated by reference to Exhibit 10.49 to the IPO Form S-1).
10.26†	Amendment to the Equitable Post-2004 Variable Deferred Compensation Plan for Executives, effective as of January 1, 2019 (incorporated by reference to Exhibit 10.69 to the 2018 Form 10-K).
10.27†	Equitable Excess Retirement Plan (incorporated by reference to Exhibit 10.50 to the IPO Form S-1).
10.28†	Equitable Holdings, Inc. Equity Plan for Directors (incorporated by reference to Exhibit 10.51 to the IPO Form S-1).
10.29†	Form of Stock Option Agreement under the Equitable Holdings, Inc. Equity Plan for Directors (incorporated by reference to Exhibit 10.52 to the IPO Form S-1).
10.30†	Form of Restricted Stock Agreement under the Equitable Holdings, Inc. Equity Plan for Directors (incorporated by reference to Exhibit 10.53 to the IPO Form S-1).
10.31†	Equitable Post-2004 Variable Deferred Compensation Plan for Directors (incorporated by reference to Exhibit 10.54 to the IPO Form S-1).
10.32†	Equitable Holdings, Inc. Charitable Award Program for Directors (incorporated by reference to Exhibit 10.55 to the IPO Form S-1).
10.33†	Equitable Holdings, Inc. Short-Term Incentive Compensation Plan (incorporated by reference to Exhibit 10.56 to the IPO Form S-1).
10.34†	AXA Equitable Holdings, Inc. 2018 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.57 to the IPO Form S-1).
10.35†	Equitable Holdings, Inc. 2019 Omnibus Incentive Plan (incorporated by reference to Appendix B of the Equitable Holdings, Inc. DEF 14A, as filed on April 8, 2020).
10.36†	Equitable Holdings, Inc. Stock Purchase Plan (incorporated by reference to Exhibit 10.62 to the 2018 Form 10-K).
10.37†#	Form of Performance Shares Award Agreement under the 2019 Omnibus Incentive Plan, effective February 16, 2022.
10.38†#	Form of Restricted Stock Unit Award Agreement under the 2019 Omnibus Incentive Plan, effective February 16, 2022.
10.39†	Form of Performance Shares Award Agreement under the 2019 Omnibus Incentive Plan for awards granted before February 16, 2022 (incorporated by reference to Exhibit 10.56 to our Form 10-K for the fiscal year ended December 31, 2020, as filed February 24, 2021 (the “2020 Form 10-K)).
10.40†	Form of Restricted Stock Unit Award Agreement under the 2019 Omnibus Incentive Plan for awards granted before February 16, 2022 (incorporated by reference to Exhibit 10.57 to the 2020 Form 10-K).
10.41†	Form of Stock Option Award Agreement under the 2019 Omnibus Incentive Plan for awards granted before February 16, 2022 (incorporated by reference to Exhibit 10.58 to the 2020 Form 10-K).
10.42†	AllianceBernstein 2021 Incentive Compensation Award Program (incorporated by reference to Exhibit 10.01 to AB Holding’s Form 10-K for the fiscal year ended December 31, 2021, as filed February 11, 2022 (the “AB 2021 Form 10-K”).
10.43†	AllianceBernstein 2021 Deferred Cash Compensation Program (incorporated by reference to Exhibit 10.02 of the AB 2021 Form 10-K).
10.44†	Form of Award Agreement, dated as of December 31, 2021, under Incentive Compensation Award Program, Deferred Cash Compensation Program and AB 2017 Long Term Incentive Plan (incorporated by reference to Exhibit 10.03 of the AB 2021 Form 10-K).
10.45†	Form of Award Agreement under AB 2017 Long Term Incentive Plan relating to equity compensation awards to Independent Directors (incorporated by reference to Exhibit 10.04 of the AB 2021 Form 10-K).
10.46†	AllianceBernstein Change in Control Plan for Executive Officers (incorporated by reference to Exhibit 99.01 to AB Holding’s Form 8-K, as filed December 14, 2020).
10.47	Master Transaction Agreement, dated as of October 27, 2020 among Equitable Holdings, Inc., Venerable Insurance and Annuity Company and solely with respect to Article XIV, Venerable Holdings, Inc. (incorporated by reference to Exhibit 10.64 to the 202 Form 10-K.

252

10.48	Coinsurance and Modified Coinsurance Agreement, dated as of June 1, 2021, between Equitable Financial Life Insurance Company and Corporate Solutions Life Reinsurance Company (redacted) (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by Equitable Financial Life Insurance Company on June 1, 2021).
21.1#	List of Subsidiaries of Equitable Holdings, Inc.
23.1#	Consent of PricewaterhouseCoopers LLP.
31.1#	Certification of the Registrant’s Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2#	Certification of the Registrant’s Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1#	Certification of the Registrant’s Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2#	Certification of the Registrant’s Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
104	Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibits 101)
#	Filed herewith.
†	Identifies each management contract or compensatory plan or arrangement.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, Equitable Holdings, Inc. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on February 22, 2022.

EQUITABLE HOLDINGS, INC.
By:	/s/ Mark Pearson
	Name: Mark Pearson
	Title: President and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant, and in the capacities indicated, on February 22, 2022.

253

Signature	Title
/s/ Mark Pearson	President and Chief Executive Officer and Director (Principal Executive Officer)
Mark Pearson
/s/ Robin M. Raju	Chief Financial Officer (Principal Financial Officer)
Robin M. Raju
/s/ William Eckert	Chief Accounting Officer (Principal Accounting Officer)
William Eckert
/s/ Francis Hondal	Director
Francis Hondal
/s/ Daniel G. Kaye	Director
Daniel G. Kaye
/s/ Joan M. Lamm-Tennant	Chair of the Board
Joan M. Lamm-Tennant
/s/ Kristi A. Matus	Director
Kristi A. Matus
/s/ Bertram L. Scott	Director
Bertram L. Scott
/s/ George H. Stansfield	Director
George H. Stansfield
/s/ Charles G. T. Stonehill	Director
Charles G. T. Stonehill

254

EX-4.9

Exhibit 4.9

DESCRIPTION OF THE REGISTRANT’S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE

SECURITIES EXCHANGE ACT OF 1934

References to “Holdings” herein are, unless the context otherwise indicates, only to Equitable Holdings, Inc. and not to any of its subsidiaries. “Board” refers to Holdings’ Board of Directors. “AXA” refers to AXA, S.A., Holdings’ former majority owner.

As of February 24, 2021, Holdings has three classes of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): (1) common stock, (2) Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series A (the “Series A Preferred Stock”) and (3) Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series C (the “Series C Preferred Stock”).

DESCRIPTION OF CAPITAL STOCK

The following description of Holdings’ capital stock is a summary of the material terms of Holdings’ amended and restated certificate of incorporation and amended and restated by-laws. Reference is made to the more detailed provisions of, and the descriptions are qualified in their entirety by reference to, these documents, both of which are filed as exhibits to this Annual Report on Form 10-K.

General

Holdings’ authorized capital stock consists of 2,000,000,000 shares of common stock, par value $0.01 per share, and 200,000,000 shares of preferred stock, par value $1.00 per share, including 33,350 shares of Series A Preferred Stock, 32,000 of which are issued and outstanding, 20,000 shares of Fixed Rate Reset Noncumulative Perpetual Preferred Stock, Series B (the “Series B Preferred Stock”), 20,000 of which are issued and outstanding and 12,000 shares of Series C Preferred Stock, 12,000 of which are issued and outstanding.

Common Stock

Holders of common stock are entitled:

• to cast one vote for each share held of record on all matters submitted to a vote of the stockholders;

• to receive, on a pro rata basis, dividends and distributions, if any, that Holdings’ Board may declare out of legally available funds, subject to preferences that may be applicable to preferred stock, if any, then outstanding; and

• upon Holdings’ liquidation, dissolution or winding up, to share equally and ratably in any assets remaining after the payment of all debt and other liabilities, subject to the prior rights, if any, of holders of any outstanding shares of preferred stock.

The holders of Holdings’ common stock do not have any preemptive, cumulative voting, subscription, conversion, redemption or sinking fund rights. The common stock is not subject to future calls or assessments by Holdings. The rights and privileges of holders of Holdings’ common stock are subject to any series of preferred stock that Holdings has issued or may issue in the future, as described below.

Preferred Stock

Under Holdings’ amended and restated certificate of incorporation, the Board has the authority, without further action by its stockholders, to issue up to 200,000,000 shares of preferred stock in one or more series and to fix the voting powers, designations, preferences and the relative participating, optional or other special rights and qualifications, limitations and restrictions of each series, including, without limitation, dividend rights, dividend

rates, conversion rights, voting rights, terms of redemption, liquidation preferences and the number of shares constituting any series. Because the Board has the power to establish the preferences and rights of the shares of any series of preferred stock, it may afford holders of any preferred stock preferences, powers and rights, including voting and dividend rights, senior to the rights of holders of Holdings’ common stock, which could adversely affect the holders of the common stock and could delay, discourage or prevent a takeover of Holdings even if a change of control of Holdings would be beneficial to the interests of Holdings’ stockholders.

Annual Stockholders Meeting

Holdings’ amended and restated by-laws provide that annual stockholders meetings will be held at a date, time and place, if any, as exclusively selected by Holdings’ Board. To the extent permitted under applicable law, Holdings may conduct meetings by remote communications, including by webcast.

Voting

The affirmative vote of a plurality of the shares of Holdings’ common stock present, in person or by proxy, at the meeting and entitled to vote on the election of directors will decide the election of any directors, and the affirmative vote of a majority of the shares of Holdings’ common stock present, in person or by proxy, at the meeting and entitled to vote at any annual or special meeting of stockholders will decide all other matters voted on by stockholders, unless the question is one upon which, by express provision of law, under Holdings’ amended and restated certificate of incorporation, or under Holdings’ amended and restated by-laws, a different vote is required, in which case such provision will control. Stockholders do not have the right to cumulate their votes for the election of directors.

Removal of Directors

Holdings’ amended and restated certificate of incorporation provides that directors may be removed, with or without cause, at any time upon the affirmative vote of holders of at least a majority of the outstanding shares of common stock then entitled to vote at an election of directors. Any vacancy in the Board shall be filled by an affirmative vote of at least a majority of the directors then in office, even if less than a quorum, or by a sole remaining director.

Anti-Takeover Effects of Holdings’ Certificate of Incorporation and By-laws

The provisions of Holdings’ amended and restated certificate of incorporation and amended and restated by-laws summarized below may have an anti-takeover effect and may delay, defer or prevent a tender offer or takeover attempt that a stockholder might consider in its best interest, including an attempt that might result in such stockholder’s receipt of a premium over the market price for a stockholder’s shares. These provisions are also designed, in part, to encourage persons seeking to acquire control of Holdings to first negotiate with the Board, which could result in an improvement of their terms.

Authorized but Unissued Shares of Common Stock. Holdings’ shares of authorized and unissued common stock are available for future issuance without additional stockholders’ approval. While Holdings’ authorized and unissued shares are not designed to deter or prevent a change of control, under some circumstances Holdings could use the additional shares to create voting impediments or to frustrate persons seeking to effect a takeover or otherwise gain control by, for example, issuing those shares in private placements to purchasers who might side with the Board in opposing a hostile takeover bid.

Authorized but Unissued Shares of Preferred Stock. Under Holdings’ amended and restated certificate of incorporation, the Board has the authority, without further action by Holdings’ stockholders, to issue up to 200,000,000 shares of preferred stock in one or more series and to fix the voting powers, designations, preferences and the relative participating, optional or other special rights and qualifications, limitations and restrictions of each series, including, without limitation, dividend rights, dividend rates, conversion rights, voting rights, terms of redemption, liquidation preferences and the number of shares constituting any series. The existence of authorized

2

but unissued preferred stock could reduce Holdings’ attractiveness as a target for an unsolicited takeover bid since Holdings could, for example, issue shares of preferred stock to parties who might oppose such a takeover bid or shares that contain terms the potential acquiror may find unattractive. This may have the effect of delaying or preventing a change of control, may discourage bids for the common stock at a premium over the market price of the common stock, and may adversely affect the market price of, and the voting and other rights of the holders of, Holdings’ common stock.

Special Meetings of Stockholders. Holdings’ amended and restated certificate of incorporation provides that a special meeting of stockholders may be called only by the Chairman of the Board or Chief Executive Officer or by a resolution adopted by a majority of the Board.

Stockholders Advance Notice Procedure. Holdings’ amended and restated by-laws establish an advance notice procedure for stockholders to make nominations of candidates for election as directors or to bring other business before an annual meeting of stockholders. The amended and restated by-laws provide that any stockholders wishing to nominate persons for election as directors at, or bring other business before, an annual meeting must deliver to Holdings’ corporate secretary a written notice of the stockholder’s intention to do so. These provisions may have the effect of precluding the conduct of certain business at a meeting if the proper procedures are not followed. Holdings expects that these provisions may also discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to obtain control of Holdings. To be timely, the stockholder’s notice must be delivered to Holdings’ corporate secretary at Holdings’ principal executive offices not less than 90 days nor more than 120 days before the first anniversary date of the annual meeting for the preceding year; provided, however, that in the event that the annual meeting is set for a date that is more than 30 days before or delayed by more than 60 days after the first anniversary date of the preceding year’s annual meeting, a stockholder’s notice must be delivered to Holdings’ corporate secretary not later than the later of (x) the close of business on the 90th day prior to the meeting or (y) the close of business on the 10th day following the day on which a public announcement of the date of the meeting is first made by Holdings.

No Stockholders Action by Written Consent. Holdings’ amended and restated certificate of incorporation provides that stockholders action may be taken only at an annual meeting or special meeting of stockholders.

Amendments to Certificate of Incorporation and By-laws. Holdings’ amended and restated certificate of incorporation provides that its amended and restated certificate of incorporation may be amended by both the affirmative vote of a majority of the Board and the affirmative vote of the holders of a majority of the outstanding shares of Holdings’ common stock then entitled to vote at any annual or special meeting of stockholders;  provided that specified provisions of Holdings’ amended and restated certificate of incorporation may not be amended, altered or repealed unless the amendment is approved by the affirmative vote of the holders of at least 66 2/3% of the outstanding shares of Holdings’ common stock then entitled to vote at any annual or special meeting of stockholders, including, but not limited to, the provisions governing:

• liability and indemnification of directors;

• corporate opportunities;

• elimination of stockholders action by written consent;

• prohibition on the rights of stockholders to call a special meeting; and

• required approval of the holders of at least 66 2/3% of the outstanding shares of Holdings’ common stock to amend Holdings’ amended and restated by-laws and certain provisions of Holdings’ amended and restated certificate of incorporation.

In addition, Holdings’ amended and restated by-laws may be amended, altered or repealed, or new by-laws may be adopted, by the affirmative vote of a majority of the Board, or by the affirmative vote of the holders of

3

at least 66 2/3%, of the outstanding shares of Holdings’ common stock then entitled to vote at any annual or special meeting of stockholders.

These provisions make it more difficult for any person to remove or amend any provisions in Holdings’ amended and restated certificate of incorporation and amended and restated by-laws that may have an anti-takeover effect.

Delaware Anti-Takeover Law. In general, Section 203 prohibits a publicly held Delaware corporation from engaging in a business combination, such as mergers, sales and leases of assets, issuances of securities and similar transactions by a corporation or subsidiary with an interested stockholder including a person or group who beneficially owns 15% or more of the corporation’s voting stock for a period of three years following the date the person became an interested stockholder, unless (with certain exceptions) the business combination or the transaction in which the person became an interested stockholder is approved in a prescribed manner. Section 203 permits corporations, in their certificate of incorporation, to opt out of the protections of Section 203. Holdings’ amended and restated certificate of incorporation provides that Holdings has elected not to be subject to Section 203 of the DGCL for so long as AXA owns, directly or indirectly, at least five percent of the outstanding shares of Holdings’ common stock. From and after the date that AXA ceases to own, directly or indirectly, at least five percent of the outstanding shares of Holdings’ common stock, Holdings will be governed by Section 203.

Insurance Regulations. The insurance laws and regulations of the various states in which Holdings’ insurance subsidiaries are organized may delay or impede a business combination or other strategic transaction involving Holdings. State insurance laws prohibit an entity from acquiring control of an insurance company without the prior approval of the domestic insurance regulator. Under most states’ statutes, an entity is presumed to have control of an insurance company if it owns, directly or indirectly, 10% or more of the voting stock of that insurance company or its parent company. These regulatory restrictions may delay, deter or prevent a potential merger or sale of Holdings, even if the Board decides that it is in the best interests of stockholders for Holdings to merge or be sold. These restrictions also may delay sales by Holdings or acquisitions by third parties of Holdings’ subsidiaries.

Limitations on Liability and Indemnification

Holdings’ amended and restated certificate of incorporation contains provisions relating to the liability of directors. These provisions eliminate a director’s personal liability for monetary damages resulting from a breach of fiduciary duty, except in circumstances involving:

• any breach of the director’s duty of loyalty;

• acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law;

• unlawful payments of dividends or unlawful stock repurchases, redemptions or other distributions; or

• any transaction from which the director derives an improper personal benefit.

The principal effect of the limitation on liability provision is that a stockholder will be unable to prosecute an action for monetary damages against a director unless the stockholder can demonstrate a basis for liability for which indemnification is not available under the DGCL. These provisions, however, should not limit or eliminate Holdings’ rights or any stockholder’s rights to seek non-monetary relief, such as an injunction or rescission, in the event of a breach of director’s fiduciary duty. These provisions do not alter a director’s liability under federal securities laws. The inclusion of this provision in Holdings’ amended and restated certificate of incorporation may discourage or deter stockholders or management from bringing a lawsuit against directors for a breach of their fiduciary duties, even though such an action, if successful, might otherwise have benefited Holdings and its stockholders. In addition, a stockholder’s investment may be adversely affected to the extent Holdings pays costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions.

4

Holdings’ amended and restated certificate of incorporation and amended and restated by-laws require Holdings to indemnify and advance expenses to its directors and officers to the fullest extent not prohibited by the DGCL and other applicable law, except in the case of a proceeding instituted by the director without the approval of the Board. Holdings’ amended and restated certificate of incorporation and amended and restated by-laws provide that Holdings is required to indemnify its directors and executive officers, to the fullest extent permitted by law, for all judgments, fines, settlements, legal fees and other expenses incurred in connection with pending or threatened legal proceedings because of the director’s or officer’s positions with Holdings or another entity that the director or officer serves at Holdings’ request, subject to various conditions, and to advance funds to Holdings’ directors and officers to enable them to defend against such proceedings. To receive indemnification, the director or officer must have been successful in the legal proceeding or have acted in good faith and in what was reasonably believed to be a lawful manner in Holdings’ best interest and, with respect to any criminal proceeding, have had no reasonable cause to believe his or her conduct was unlawful.

In connection with the initial public offering of the common stock of Holdings, Holdings entered into an indemnification agreement with each of its directors. The indemnification agreement provides Holdings’ directors with contractual rights to the indemnification and expense advancement rights provided under Holdings’ amended and restated by-laws, as well as contractual rights to additional indemnification as provided in the indemnification agreement.

Insofar as indemnification for liabilities arising under the Securities Act of 1933, as amended (the “Securities Act”) may be permitted to directors, officers or persons controlling Holdings pursuant to the foregoing provisions, Holdings has been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

Choice of Forum

Holdings’ amended and restated certificate of incorporation provides that, unless Holdings consents in writing to the selection of an alternate forum, the Court of Chancery of the State of Delaware will, to the fullest extent provided by law, be the sole and exclusive forum for (i) any derivative action or proceeding brought on Holdings’ behalf, (ii) any action asserting a claim of breach of a fiduciary duty owed to Holdings or its stockholders by any of Holdings’ directors, officers, other employees, agents or stockholders, (iii) any action asserting a claim against Holdings arising under the DGCL or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware (including, without limitation, any action asserting a claim arising out of or pursuant to Holdings’ amended and restated by-laws) or (iv) any action asserting a claim against Holdings that is governed by the internal affairs doctrine. To the fullest extent permitted by law, by becoming a stockholder in Holdings, that stockholder is deemed to have notice of and have consented to the provisions of Holdings’ amended and restated certificate of incorporation related to choice of forum.

Market Listing

Holdings’ common stock is listed on the NYSE under the symbol “EQH”.

Transfer Agent and Registrar

The transfer agent and registrar for Holdings’ common stock is Computershare Trust Company, N.A.

DESCRIPTION OF THE SERIES A PREFERRED STOCK

General

Holdings’ authorized capital stock includes 200,000,000 shares of preferred stock, par value $1.00 per share, as reflected in its amended and restated certificate of incorporation. Holdings’ Board is authorized without further stockholder action to cause the issuance of additional shares of preferred stock. Any additional preferred

5

stock may be issued in one or more series, each with preferences, limitations, designations, conversion or exchange rights, voting rights, dividend rights, redemption provisions, voluntary and involuntary liquidation rights and other rights as the Board may determine at the time of issuance.

The Series A Preferred Stock represents a single series of Holdings’ authorized preferred stock. The Series A Preferred Stock is not convertible into, or exchangeable for, shares of Holdings’ common stock or any other class or series of Holdings’ other securities and is not subject to any sinking fund or any other obligation of Holdings for their repurchase or retirement.

Ranking

With respect to the payment of dividends and distributions of assets upon any liquidation, dissolution or winding-up, the Series A Preferred Stock ranks:

•senior to Holdings’ common stock and all other junior stock;

•senior to or on a parity with each other series of Holdings’ preferred stock that it has issued or may issue (except for any senior stock that may be issued upon the requisite vote or consent of the holders of at least a two-thirds majority of the shares of the Series A Preferred Stock at the time outstanding and entitled to vote and the requisite vote or consent of all other series of preferred stock) with respect to the payment of dividends and distributions of assets upon Holdings’ liquidation, dissolution or winding-up; and

•junior to all existing and future indebtedness and other non-equity claims on us.

Holdings currently has no senior stock outstanding. The Series B Preferred Stock and Series C Preferred Stock rank on parity with the Series A Preferred Stock.

Dividends

Holders of the Series A Preferred Stock, in preference to the holders of Holdings’ common stock and of any other junior stock, are entitled to receive, only when, as and if declared by the Board (or a duly authorized committee of the Board), out of funds or property legally available for payment, noncumulative cash dividends applied to the liquidation amount of $25,000 per share of the Series A Preferred Stock at an annual rate equal to 5.25% on each dividend payment date for each dividend period.

A “dividend payment date” means each March 15, June 15, September 15 and December 15, commencing on March 15, 2020, provided that if any such date is not a business day, then such date will nevertheless be a dividend payment date but dividends on the Series A Preferred Stock, when, as and if declared, will be paid on the next succeeding business day (without adjustment in the amount of the dividend per share of the Series A Preferred Stock).

A “business day” means any day other than (i) a Saturday or Sunday or (ii) a day on which banking institutions in The City of New York are authorized or required by law or executive order to remain closed.

A “dividend period” means each period from, and including, a dividend payment date (except that the initial dividend period commenced on the original issue date of the Series A Preferred Stock) and continuing to, but excluding, the next succeeding dividend payment date.

Dividends will be paid to holders of record of the Series A Preferred Stock as they appear on Holdings’ books on the applicable record date, which will be the 15th calendar day before such dividend payment date, or such other record date fixed for that purpose by the Board (or a duly authorized committee of the Board) that is not more than 60 nor less than 10 days prior to such dividend payment date, in advance of payment of each particular dividend.

6

The amount of dividends payable per share of the Series A Preferred Stock will be computed by Computershare Inc. as the dividend disbursement agent (as defined below) on the basis of a 360-day year consisting of twelve 30-day months.

Dividends on shares of the Series A Preferred Stock are not cumulative and are not mandatory. If the Board (or a duly authorized committee of the Board) does not declare a dividend on the Series A Preferred Stock in respect of a dividend period, then no dividend will be deemed to have accrued for such dividend period, be payable on the related dividend payment date, or accumulate, and Holdings will have no obligation to pay any dividend accrued for such dividend period, whether or not the Board (or a duly authorized committee of the Board) declares a dividend on the Series A Preferred Stock or any other series of Holdings’ preferred stock or on Holdings’ common stock for any future dividend period. References to the “accrual” (or similar terms) of dividends refer only to the determination of the amount of such dividend and do not imply that any right to a dividend arises prior to the date on which a dividend is declared.

During any dividend period while the Series A Preferred Stock is outstanding, unless the full dividends for the preceding dividend period on all outstanding shares of Series A Preferred Stock have been declared and paid or declared and a sum sufficient for the payment thereof has been set aside and any declared but unpaid dividends for any prior period have been paid:

(i)no dividend shall be declared or paid or set aside for payment and no distribution shall be declared or made or set aside for payment on any junior stock (other than (1) a dividend payable solely in junior stock or (2) any dividend in connection with the implementation of a stockholders’ rights plan or the redemption or repurchase of any rights under such plan),

(ii)no shares of junior stock shall be repurchased, redeemed or otherwise acquired for consideration by Holdings, directly or indirectly (other than (1) as a result of a reclassification of junior stock for or into other junior stock, (2) the exchange or conversion of one share of junior stock for or into another share of junior stock, (3) purchases, redemptions or other acquisitions of shares of junior stock in connection with any employment contract, benefit plan or other similar arrangement with or for the benefit of employees, officers, directors or consultants, (4) the purchase of fractional interests in shares of junior stock pursuant to the conversion or exchange provisions of such securities or the security being converted or exchanged and (5) through the use of the proceeds of a substantially contemporaneous sale of other shares of junior stock) nor shall any monies be paid to or made available for a sinking fund for the redemption of any such securities by Holdings, and

(iii)no shares of dividend parity stock shall be repurchased, redeemed or otherwise acquired for consideration by Holdings other than pursuant to pro rata offers to purchase all, or a pro rata portion, of the Series A Preferred Stock and such dividend parity stock (other than the exchange or conversion of such dividend parity stock for or into shares of junior stock).

When dividends are not paid in full upon the shares of the Series A Preferred Stock and any dividend parity stock, all dividends declared upon shares of the Series A Preferred Stock and any dividend parity stock will be declared on a proportional basis so that the amount of dividends declared per share will bear to each other the same ratio that accrued dividends for the then current dividend period, and any prior dividend periods for which dividends were declared but not paid, per share on the Series A Preferred Stock, and accrued dividends, including any accumulations, on any dividend parity stock, bear to each other.

Redemption

The Series A Preferred Stock is perpetual and has no maturity date. Holdings may, at its option, redeem the shares of the Series A Preferred Stock (i) in whole but not in part at any time prior to December 15, 2024, within 90 days after the occurrence of a “rating agency event” at a redemption price equal to $25,500 per share (equivalent to $25.50 per Series A Depositary Share), plus any declared and unpaid dividends, without regard to any undeclared dividends, to, but excluding, the redemption date, or (ii) (a) in whole but not in part at any time prior to December

7

15, 2024 within 90 days after the occurrence of a “regulatory capital event,” or (b) in whole or in part, from time to time, on any dividend payment date on or after December 15, 2024, in each case, at a redemption price equal to $25,000 per share (equivalent to $25 per Series A Depositary Share), plus any declared and unpaid dividends, without regard to any undeclared dividends, to, but excluding, the redemption date. Dividends will cease to accrue on the shares of the Series A Preferred Stock called for redemption from, and including, the redemption date.

For the purposes of the preceding paragraph:

“rating agency event” means that any nationally recognized statistical rating organization as defined in Section 3(a)(62) of the Exchange Act, that then publishes a rating for Holdings (a “rating agency”) amends, clarifies or changes the criteria it uses to assign equity credit to securities such as the Series A Preferred Stock, which amendment, clarification or change results in:

•the shortening of the length of time the Series A Preferred Stock is assigned a particular level of equity credit by that rating agency as compared to the length of time it would have been assigned that level of equity credit by that rating agency or its predecessor on the initial issuance of the Series A Preferred Stock; or

•the lowering of the equity credit (including up to a lesser amount) assigned to the Series A Preferred Stock by that rating agency as compared to the equity credit assigned by that rating agency or its predecessor on the initial issuance of the Series A Preferred Stock.

“regulatory capital event” means Holdings’ good faith determination that, as a result of:

•any amendment to, or change in, the laws, rules or regulations of the United States or any political subdivision of or in the United States or any other governmental agency or instrumentality as may then have group-wide oversight of Holdings’ regulatory capital that is enacted or becomes effective after the initial issuance of the Series A Preferred Stock,

•any proposed amendment to, or change in, those laws, rules or regulations that is announced or becomes effective after the initial issuance of the Series A Preferred Stock, or

•any official administrative decision or judicial decision or administrative action or other official pronouncement interpreting or applying those laws, rules or regulations that is announced after the initial issuance of the Series A Preferred Stock.

If Holdings becomes subject to capital regulation and the Series A Preferred Stock is included in its regulatory capital, the redemption of the Series A Preferred Stock and the Series A Depositary Shares may be subject to Holdings’ receipt of any required prior approval from a capital regulator and to the satisfaction of any conditions set forth in applicable capital rules and any other regulations of such capital regulator.

If fewer than all of the outstanding shares of the Series A Preferred Stock are to be redeemed, the shares to be redeemed will be selected either pro rata from the holders of record of shares of the Series A Preferred Stock in proportion to the number of shares held by those holders or by lot.

Holdings will mail notice of every redemption of the Series A Preferred Stock by first class mail, postage prepaid, addressed to the holders of record of the Series A Preferred Stock to be redeemed at their respective last addresses appearing on Holdings’ books. This mailing will be at least 30 days and not more than 60 days before the date fixed for redemption (provided that if the Series A Preferred Stock is held in book-entry form through The Depository Trust Company (“DTC”), Holdings may give this notice in any manner permitted by DTC). Any notice mailed or otherwise given as provided in this paragraph will be conclusively presumed to have been duly given, whether or not the holder receives this notice, and failure duly to give this notice by mail or otherwise, or any defect in this notice or in the mailing or provision of this notice, to any holder of the Series A Preferred Stock designated for redemption will not affect the validity of the redemption of any other shares of Series A Preferred Stock.

8

Each notice will state:

•the redemption date;

•the number of shares of the Series A Preferred Stock to be redeemed and, if less than all shares of the Series A Preferred Stock held by the holder are to be redeemed, the number of shares to be redeemed from the holder;

•the redemption price or the manner of its calculation; and

•if Series A Preferred Stock is evidenced by definitive certificates, the place or places where the certificates representing those shares are to be surrendered for payment of the redemption price.

If notice of redemption of any Series A Preferred Stock has been duly given and if, on or before the redemption date specified in the notice, Holdings has set aside all funds necessary for the redemption in trust for the pro rata benefit of the holders of record of any shares of Series A Preferred Stock so called for redemption, then, notwithstanding that any certificate for any share called for redemption has not been surrendered for cancellation, from and after the redemption date, those shares will no longer be deemed outstanding and all rights of the holders of those shares (including the right to receive any dividends) will terminate, except the right to receive the redemption price.

Neither holders of the Series A Preferred Stock nor holders of the Series A Depositary Shares representing the underlying Series A Preferred Stock have the right to require the redemption or repurchase of the Series A Preferred Stock.

Liquidation Rights

In the event that Holdings voluntarily or involuntarily liquidates, dissolves or winds up its affairs, holders of the Series A Preferred Stock will be entitled to receive an amount per share (the “total liquidation amount”) equal to the liquidation amount of $25,000 per share (equivalent to $25 per Series A Depositary Share), plus any dividends that have been declared but not paid prior to the date of payment of distributions to stockholders, without regard to any undeclared dividends. Holders of the Series A Preferred Stock will be entitled to receive the total liquidation amount out of Holdings assets that are available for distribution to stockholders after payment or provision for payment of Holdings’ debts and other liabilities but before any distribution of assets is made to or set aside for holders of Holdings’ common stock or any other junior stock.

In any such distribution, if Holdings’ assets are not sufficient to pay the total liquidation amount in full to all holders of the Series A Preferred Stock and all holders of any of Holdings’ stock ranking equally with the Series A Preferred Stock as to distributions of assets upon Holdings liquidation, dissolution or winding-up, the amounts paid to the holders of the Series A Preferred Stock and to any holders of such other stock will be paid pro rata in accordance with the respective total liquidation amount for those holders. If the total liquidation amount per Series A Preferred Stock has been paid in full to all holders of the Series A Preferred Stock and such other stock, the holders of Holdings’ common stock or any other junior stock will be entitled to receive all of Holdings’ remaining assets according to their respective rights and preferences.

For purposes of the liquidation rights, neither the sale, conveyance, exchange or transfer of all or substantially all of Holdings’ property and assets, nor the consolidation or merger by Holdings with or into any other corporation or by another corporation with or into Holdings, will constitute a liquidation, dissolution or winding-up of Holdings’ affairs.

Voting Rights

Except as provided below or as otherwise required by law, the holders of the Series A Preferred Stock will have no voting rights.

9

Right to Elect Two Directors Upon Nonpayment. If and when the dividends on the Series A Preferred Stock and any other class or series of Holdings’ preferred stock, whether bearing dividends on a noncumulative or cumulative basis but otherwise ranking on a parity with the Series A Preferred Stock, as to payment of dividends and that has voting rights equivalent to those described in this paragraph (“voting parity stock”), have not been declared and paid (i) in the case of the Series A Preferred Stock and voting parity stock bearing noncumulative dividends, in full for at least six quarterly dividend periods or their equivalent (whether or not consecutive); or (ii) in the case of voting parity stock bearing cumulative dividends, in an aggregate amount equal to full dividends for at least six quarterly dividend periods or their equivalent (whether or not consecutive), the authorized number of directors then constituting the Board will be increased by two. Holders of the Series A Preferred Stock, together with the holders of all other affected classes and series of voting parity stock, voting as a single class, will be entitled to elect the two additional members of the Board (the “preferred stock directors”) at any annual or special meeting of stockholders at which directors are to be elected or any special meeting of the holders of the Series A Preferred Stock and any voting parity stock for which dividends have not been paid, called as provided below, but only if the election of any preferred stock directors would not cause Holdings to violate the corporate governance requirement of the New York Stock Exchange (or any other exchange on which Holdings’ securities may be listed) that listed companies must have a majority of independent directors. In addition, the Board shall at no time have more than two preferred stock directors.

At any time after this voting power has vested as described above, Holdings’ secretary may, and upon the written request of holders of record of at least 20% of the outstanding shares of the Series A Preferred Stock and voting parity stock (addressed to the secretary at Holdings’ principal office) must, call a special meeting of the holders of the Series A Preferred Stock and voting parity stock for the election of the preferred stock directors; provided that if any such written request for a special meeting is received less than 90 days before the date fixed for the next annual or special meeting of Holdings’ stockholders such election shall be held only at such next annual or special meeting of stockholders. Notice for a special meeting will be given in a similar manner to that provided in Holdings’ amended and restated by-laws for a special meeting of the stockholders, which Holdings will provide upon request, or as required by law. If Holdings’ secretary is required to call a meeting but does not do so within 20 days after receipt of any such request, then any holder of shares of the Series A Preferred Stock may (at Holdings’ expense) call such meeting, upon notice as provided in this paragraph, and for that purpose will have access to Holdings’ stock books. The preferred stock directors elected at any such special meeting will hold office until the next annual meeting of Holdings’ stockholders unless they have been previously terminated as described below. In case any vacancy occurs among the preferred stock directors, a successor will be elected by the Board to serve until the next annual meeting of the stockholders upon the nomination of the then remaining preferred stock directors or if none remains in office, by the vote of the holders of record of a majority of the outstanding shares of the Series A Preferred Stock and all voting parity stock for which dividends have not been paid, voting as a single class. The preferred stock directors shall each be entitled to one vote per director on any matter.

Whenever full dividends have been paid on the Series A Preferred Stock and any noncumulative voting parity stock for at least one year and all dividends on any cumulative voting parity stock have been paid in full, then the right of the holders of the Series A Preferred Stock to elect the preferred stock directors will cease (but subject always to the same provisions for the vesting of these voting rights in the case of any similar non-payment of dividends in respect of future dividend periods), the terms of office of all preferred stock directors will immediately terminate and the number of directors constituting the Board will be reduced accordingly.

The only voting parity stock currently outstanding is the Series B Preferred Stock and the Series C Preferred Stock.

Other Voting Rights. So long as any shares of Series A Preferred Stock remain outstanding, the affirmative vote or consent of the holders of at least two-thirds of all outstanding shares of the Series A Preferred Stock, voting separately as a class, will be required to:

•authorize or increase the authorized amount of, or issue shares of any class or series of senior stock, or issue any obligation or security convertible into or evidencing the right to purchase any such shares;

10

•amend the provisions of Holdings’ amended and restated certificate of incorporation so as to adversely affect the powers, preferences, privileges or rights of the Series A Preferred Stock, taken as a whole; provided, however, that any increase in the amount of the authorized or issued Series A Preferred Stock or authorized common stock or preferred stock or the creation and issuance, or an increase in the authorized or issued amount, of other series of preferred stock ranking equally with or junior to the Series A Preferred Stock with respect to the payment of dividends (whether such dividends are cumulative or noncumulative) or the distribution of assets upon Holdings’ liquidation, dissolution or winding-up will not be deemed to adversely affect the powers, preferences, privileges or rights of the Series A Preferred Stock; or

•consolidate with or merge into any other corporation unless the shares of Series A Preferred Stock outstanding at the time of such consolidation or merger or sale are converted into or exchanged for preference securities having such rights, privileges and voting powers, taken as a whole, as are not materially less favorable to the holders thereof than the rights, preferences, privileges and voting powers of the Series A Preferred Stock, taken as a whole.

The foregoing voting provisions will not apply if, at or prior to the time when the act with respect to which such vote would otherwise be required will be effected, all outstanding shares of Series A Preferred Stock will have been redeemed or called for redemption upon proper notice and sufficient funds will have been set aside by Holdings for the benefit of the holders of the Series A Preferred Stock to effect such redemption.

No Preemptive and Conversion Rights

Holders of the Series A Preferred Stock do not have any preemptive rights. The Series A Preferred Stock is not convertible into or exchangeable for property or shares of any other series or class of Holdings’ capital stock.

Transfer Agent, Registrar, Dividend Disbursement Agent and Redemption Agent

Computershare Trust Company, N.A. is the transfer agent and registrar for the Series A Preferred Stock as of the original issue date. Computershare Inc. is the dividend disbursement agent and redemption agent for the Series A Preferred Stock as of the original issue date. Holdings may terminate such appointment and may appoint a successor transfer agent, registrar, dividend disbursement agent and/or redemption agent at any time and from time to time, provided that Holdings will use its best efforts to ensure that there is, at all relevant times when the Series A Preferred Stock is outstanding, a person or entity appointed and serving as transfer agent, registrar, dividend disbursement agent and/or redemption agent.

DESCRIPTION OF THE SERIES C PREFERRED STOCK

General

Holdings’ authorized capital stock includes 200,000,000 shares of preferred stock, par value $1.00 per share, as reflected in its amended and restated certificate of incorporation. Holdings’ Board is authorized without further stockholder action to cause the issuance of additional shares of preferred stock. Any additional preferred stock may be issued in one or more series, each with preferences, limitations, designations, conversion or exchange rights, voting rights, dividend rights, redemption provisions, voluntary and involuntary liquidation rights and other rights as the Board may determine at the time of issuance.

The Series C Preferred Stock represents a single series of Holdings’ authorized preferred stock. The Series C Preferred Stock is not convertible into, or exchangeable for, shares of Holdings’ common stock or any other class or series of Holdings’ other securities and is not subject to any sinking fund or any other obligation of Holdings for their repurchase or retirement.

Ranking

11

With respect to the payment of dividends and distributions of assets upon any liquidation, dissolution or winding-up, the Series C Preferred Stock ranks:

•senior to Holdings’ common stock and all other junior stock;

•senior to or on a parity with each other series of Holdings’ preferred stock that it has issued or may issue (except for any senior stock that may be issued upon the requisite vote or consent of the holders of at least a two-thirds majority of the shares of the Series C Preferred Stock at the time outstanding and entitled to vote and the requisite vote or consent of all other series of preferred stock) with respect to the payment of dividends and distributions of assets upon Holdings’ liquidation, dissolution or winding-up; and

•junior to all existing and future indebtedness and other non-equity claims on us.

Holdings currently has no senior stock outstanding. The Series A Preferred Stock and Series B Preferred Stock rank on parity with the Series C Preferred Stock.

Dividends

Holders of the Series C Preferred Stock, in preference to the holders of Holdings’ common stock and of any other junior stock, are entitled to receive, only when, as and if declared by the Board (or a duly authorized committee of the Board), out of funds or property legally available for payment, noncumulative cash dividends applied to the liquidation amount of $25,000 per share of the Series C Preferred Stock at an annual rate equal to 4.300% on each dividend payment date for each dividend period.

A “dividend payment date” means each March 15, June 15, September 15 and December 15, commencing on March 15, 2021, provided that if any such date is not a business day, then such date will nevertheless be a dividend payment date but dividends on the Series C Preferred Stock, when, as and if declared, will be paid on the next succeeding business day (without adjustment in the amount of the dividend per share of the Series C Preferred Stock).

A “business day” means any day other than (i) a Saturday or Sunday or (ii) a day on which banking institutions in The City of New York are authorized or required by law or executive order to remain closed.

A “dividend period” means each period from, and including, a dividend payment date (except that the initial dividend period commenced on the original issue date of the Series C Preferred Stock) and continuing to, but excluding, the next succeeding dividend payment date.

Dividends will be paid to holders of record of the Series C Preferred Stock as they appear on Holdings’ books on the applicable record date, which will be the 15th calendar day before such dividend payment date, or such other record date fixed for that purpose by the Board (or a duly authorized committee of the Board) that is not more than 60 nor less than 10 days prior to such dividend payment date, in advance of payment of each particular dividend.

The amount of dividends payable per share of the Series C Preferred Stock will be computed by Computershare Inc. as the dividend disbursement agent (as defined below) on the basis of a 360-day year consisting of twelve 30-day months.

Dividends on shares of the Series C Preferred Stock are not cumulative and are not mandatory. If the Board (or a duly authorized committee of the Board) does not declare a dividend on the Series C Preferred Stock in respect of a dividend period, then no dividend will be deemed to have accrued for such dividend period, be payable on the related dividend payment date, or accumulate, and Holdings will have no obligation to pay any dividend accrued for such dividend period, whether or not the Board (or a duly authorized committee of the Board) declares a dividend on the Series C Preferred Stock or any other series of Holdings’ preferred stock or on Holdings’ common stock for any future dividend period. References to the “accrual” (or similar terms) of dividends refer only to the determination of

12

the amount of such dividend and do not imply that any right to a dividend arises prior to the date on which a dividend is declared.

During any dividend period while the Series C Preferred Stock is outstanding, unless the full dividends for the preceding dividend period on all outstanding shares of Series C Preferred Stock have been declared and paid or declared and a sum sufficient for the payment thereof has been set aside and any declared but unpaid dividends for any prior period have been paid:

(i)no dividend shall be declared or paid or set aside for payment and no distribution shall be declared or made or set aside for payment on any junior stock (other than (1) a dividend payable solely in junior stock or (2) any dividend in connection with the implementation of a stockholders’ rights plan or the redemption or repurchase of any rights under such plan),

(ii)no shares of junior stock shall be repurchased, redeemed or otherwise acquired for consideration by Holdings, directly or indirectly (other than (1) as a result of a reclassification of junior stock for or into other junior stock, (2) the exchange or conversion of one share of junior stock for or into another share of junior stock, (3) purchases, redemptions or other acquisitions of shares of junior stock in connection with any employment contract, benefit plan or other similar arrangement with or for the benefit of employees, officers, directors or consultants, (4) the purchase of fractional interests in shares of junior stock pursuant to the conversion or exchange provisions of such securities or the security being converted or exchanged and (5) through the use of the proceeds of a substantially contemporaneous sale of other shares of junior stock) nor shall any monies be paid to or made available for a sinking fund for the redemption of any such securities by Holdings, and

(iii)no shares of dividend parity stock shall be repurchased, redeemed or otherwise acquired for consideration by Holdings other than pursuant to pro rata offers to purchase all, or a pro rata portion, of the Series C Preferred Stock and such dividend parity stock (other than the exchange or conversion of such dividend parity stock for or into shares of junior stock).

When dividends are not paid in full upon the shares of the Series C Preferred Stock and any dividend parity stock, all dividends declared upon shares of the Series C Preferred Stock and any dividend parity stock will be declared on a proportional basis so that the amount of dividends declared per share will bear to each other the same ratio that accrued dividends for the then current dividend period, and any prior dividend periods for which dividends were declared but not paid, per share on the Series C Preferred Stock, and accrued dividends, including any accumulations, on any dividend parity stock, bear to each other.

Redemption

The Series C Preferred Stock is perpetual and has no maturity date. Holdings may, at its option, redeem the shares of the Series C Preferred Stock (i) in whole but not in part at any time prior to March 15, 2026, within 90 days after the occurrence of a “rating agency event” at a redemption price equal to $25,500 per share (equivalent to $25.50 per Series C Depositary Share), plus any declared and unpaid dividends, without regard to any undeclared dividends, to, but excluding, the redemption date, or (ii) (a) in whole but not in part at any time prior to March 15, 2026 within 90 days after the occurrence of a “regulatory capital event,” or (b) in whole or in part, from time to time, on any dividend payment date on or after March 15, 2026, in each case, at a redemption price equal to $25,000 per share (equivalent to $25 per Series C Depositary Share), plus any declared and unpaid dividends, without regard to any undeclared dividends, to, but excluding, the redemption date. Dividends will cease to accrue on the shares of the Series C Preferred Stock called for redemption from, and including, the redemption date.

For the purposes of the preceding paragraph:

“rating agency event” means that any nationally recognized statistical rating organization as defined in Section 3(a)(62) of the Exchange Act, that then publishes a rating for Holdings (a “rating agency”) amends, clarifies or changes the criteria it uses to assign equity credit to securities such as the Series C Preferred Stock, which amendment, clarification or change results in:

13

•the shortening of the length of time the Series C Preferred Stock is assigned a particular level of equity credit by that rating agency as compared to the length of time it would have been assigned that level of equity credit by that rating agency or its predecessor on the initial issuance of the Series C Preferred Stock; or

•the lowering of the equity credit (including up to a lesser amount) assigned to the Series C Preferred Stock by that rating agency as compared to the equity credit assigned by that rating agency or its predecessor on the initial issuance of the Series C Preferred Stock.

“regulatory capital event” means Holdings’ good faith determination that, as a result of:

•any amendment to, or change in, the laws, rules or regulations of the United States or any political subdivision of or in the United States or any other governmental agency or instrumentality as may then have group-wide oversight of Holdings’ regulatory capital that is enacted or becomes effective after the initial issuance of the Series C Preferred Stock,

•any proposed amendment to, or change in, those laws, rules or regulations that is announced or becomes effective after the initial issuance of the Series C Preferred Stock, or

•any official administrative decision or judicial decision or administrative action or other official pronouncement interpreting or applying those laws, rules or regulations that is announced after the initial issuance of the Series C Preferred Stock.

If Holdings becomes subject to capital regulation and the Series C Preferred Stock is included in its regulatory capital, the redemption of the Series C Preferred Stock and the Series C Depositary Shares may be subject to Holdings’ receipt of any required prior approval from a capital regulator and to the satisfaction of any conditions set forth in applicable capital rules and any other regulations of such capital regulator.

If fewer than all of the outstanding shares of the Series C Preferred Stock are to be redeemed, the shares to be redeemed will be selected either pro rata from the holders of record of shares of the Series C Preferred Stock in proportion to the number of shares held by those holders or by lot.

Holdings will mail notice of every redemption of the Series C Preferred Stock by first class mail, postage prepaid, addressed to the holders of record of the Series C Preferred Stock to be redeemed at their respective last addresses appearing on Holdings’ books. This mailing will be at least 30 days and not more than 60 days before the date fixed for redemption (provided that if the Series C Preferred Stock is held in book-entry form through The Depository Trust Company (“DTC”), Holdings may give this notice in any manner permitted by DTC). Any notice mailed or otherwise given as provided in this paragraph will be conclusively presumed to have been duly given, whether or not the holder receives this notice, and failure duly to give this notice by mail or otherwise, or any defect in this notice or in the mailing or provision of this notice, to any holder of the Series C Preferred Stock designated for redemption will not affect the validity of the redemption of any other shares of Series C Preferred Stock.

Each notice will state:

•the redemption date;

•the number of shares of the Series C Preferred Stock to be redeemed and, if less than all shares of the Series C Preferred Stock held by the holder are to be redeemed, the number of shares to be redeemed from the holder;

•the redemption price or the manner of its calculation; and

•if Series C Preferred Stock is evidenced by definitive certificates, the place or places where the certificates representing those shares are to be surrendered for payment of the redemption price.

14

If notice of redemption of any Series C Preferred Stock has been duly given and if, on or before the redemption date specified in the notice, Holdings has set aside all funds necessary for the redemption in trust for the pro rata benefit of the holders of record of any shares of Series C Preferred Stock so called for redemption, then, notwithstanding that any certificate for any share called for redemption has not been surrendered for cancellation, from and after the redemption date, those shares will no longer be deemed outstanding and all rights of the holders of those shares (including the right to receive any dividends) will terminate, except the right to receive the redemption price.

Neither holders of the Series C Preferred Stock nor holders of the Series C Depositary Shares representing the underlying Series C Preferred Stock have the right to require the redemption or repurchase of the Series C Preferred Stock.

Liquidation Rights

In the event that Holdings voluntarily or involuntarily liquidates, dissolves or winds up its affairs, holders of the Series C Preferred Stock will be entitled to receive an amount per share (the “total liquidation amount”) equal to the liquidation amount of $25,000 per share (equivalent to $25 per Series C Depositary Share), plus any dividends that have been declared but not paid prior to the date of payment of distributions to stockholders, without regard to any undeclared dividends. Holders of the Series C Preferred Stock will be entitled to receive the total liquidation amount out of Holdings assets that are available for distribution to stockholders after payment or provision for payment of Holdings’ debts and other liabilities but before any distribution of assets is made to or set aside for holders of Holdings’ common stock or any other junior stock.

In any such distribution, if Holdings’ assets are not sufficient to pay the total liquidation amount in full to all holders of the Series C Preferred Stock and all holders of any of Holdings’ stock ranking equally with the Series C Preferred Stock as to distributions of assets upon Holdings liquidation, dissolution or winding-up, the amounts paid to the holders of the Series C Preferred Stock and to any holders of such other stock will be paid pro rata in accordance with the respective total liquidation amount for those holders. If the total liquidation amount per Series C Preferred Stock has been paid in full to all holders of the Series C Preferred Stock and such other stock, the holders of Holdings’ common stock or any other junior stock will be entitled to receive all of Holdings’ remaining assets according to their respective rights and preferences.

For purposes of the liquidation rights, neither the sale, conveyance, exchange or transfer of all or substantially all of Holdings’ property and assets, nor the consolidation or merger by Holdings with or into any other corporation or by another corporation with or into Holdings, will constitute a liquidation, dissolution or winding-up of Holdings’ affairs.

Voting Rights

Except as provided below or as otherwise required by law, the holders of the Series C Preferred Stock will have no voting rights.

Right to Elect Two Directors Upon Nonpayment. If and when the dividends on the Series C Preferred Stock and any other class or series of Holdings’ preferred stock, whether bearing dividends on a noncumulative or cumulative basis but otherwise ranking on a parity with the Series C Preferred Stock, as to payment of dividends and that has voting rights equivalent to those described in this paragraph (“voting parity stock”), have not been declared and paid (i) in the case of the Series C Preferred Stock and voting parity stock bearing noncumulative dividends, in full for at least six quarterly dividend periods or their equivalent (whether or not consecutive); or (ii) in the case of voting parity stock bearing cumulative dividends, in an aggregate amount equal to full dividends for at least six quarterly dividend periods or their equivalent (whether or not consecutive), the authorized number of directors then constituting the Board will be increased by two. Holders of the Series C Preferred Stock, together with the holders of all other affected classes and series of voting parity stock, voting as a single class, will be entitled to elect the two additional members of the Board (the “preferred stock directors”) at any annual or special meeting of stockholders at which directors are to be elected or any special meeting of the holders of the Series C Preferred Stock and any

15

voting parity stock for which dividends have not been paid, called as provided below, but only if the election of any preferred stock directors would not cause Holdings to violate the corporate governance requirement of the New York Stock Exchange (or any other exchange on which Holdings’ securities may be listed) that listed companies must have a majority of independent directors. In addition, the Board shall at no time have more than two preferred stock directors.

At any time after this voting power has vested as described above, Holdings’ secretary may, and upon the written request of holders of record of at least 20% of the outstanding shares of the Series C Preferred Stock and voting parity stock (addressed to the secretary at Holdings’ principal office) must, call a special meeting of the holders of the Series C Preferred Stock and voting parity stock for the election of the preferred stock directors; provided that if any such written request for a special meeting is received less than 90 days before the date fixed for the next annual or special meeting of Holdings’ stockholders such election shall be held only at such next annual or special meeting of stockholders. Notice for a special meeting will be given in a similar manner to that provided in Holdings’ amended and restated by-laws for a special meeting of the stockholders, which Holdings will provide upon request, or as required by law. If Holdings’ secretary is required to call a meeting but does not do so within 20 days after receipt of any such request, then any holder of shares of the Series C Preferred Stock may (at Holdings’ expense) call such meeting, upon notice as provided in this paragraph, and for that purpose will have access to Holdings’ stock books. The preferred stock directors elected at any such special meeting will hold office until the next annual meeting of Holdings’ stockholders unless they have been previously terminated as described below. In case any vacancy occurs among the preferred stock directors, a successor will be elected by the Board to serve until the next annual meeting of the stockholders upon the nomination of the then remaining preferred stock directors or if none remains in office, by the vote of the holders of record of a majority of the outstanding shares of the Series C Preferred Stock and all voting parity stock for which dividends have not been paid, voting as a single class. The preferred stock directors shall each be entitled to one vote per director on any matter.

Whenever full dividends have been paid on the Series C Preferred Stock and any noncumulative voting parity stock for at least one year and all dividends on any cumulative voting parity stock have been paid in full, then the right of the holders of the Series C Preferred Stock to elect the preferred stock directors will cease (but subject always to the same provisions for the vesting of these voting rights in the case of any similar non-payment of dividends in respect of future dividend periods), the terms of office of all preferred stock directors will immediately terminate and the number of directors constituting the Board will be reduced accordingly.

The only voting parity stock currently outstanding is the Series A Preferred Stock and the Series B Preferred Stock.

Other Voting Rights. So long as any shares of Series C Preferred Stock remain outstanding, the affirmative vote or consent of the holders of at least two-thirds of all outstanding shares of the Series C Preferred Stock, voting separately as a class, will be required to:

•authorize or increase the authorized amount of, or issue shares of any class or series of senior stock, or issue any obligation or security convertible into or evidencing the right to purchase any such shares;

•amend the provisions of Holdings’ amended and restated certificate of incorporation so as to adversely affect the powers, preferences, privileges or rights of the Series C Preferred Stock, taken as a whole; provided, however, that any increase in the amount of the authorized or issued Series C Preferred Stock or authorized common stock or preferred stock or the creation and issuance, or an increase in the authorized or issued amount, of other series of preferred stock ranking equally with or junior to the Series C Preferred Stock with respect to the payment of dividends (whether such dividends are cumulative or noncumulative) or the distribution of assets upon Holdings’ liquidation, dissolution or winding-up will not be deemed to adversely affect the powers, preferences, privileges or rights of the Series C Preferred Stock; or

•consolidate with or merge into any other corporation unless the shares of Series C Preferred Stock outstanding at the time of such consolidation or merger or sale are converted into or exchanged for preference securities having such rights, privileges and voting powers, taken as a whole, as are not

16

materially less favorable to the holders thereof than the rights, preferences, privileges and voting powers of the Series C Preferred Stock, taken as a whole.

The foregoing voting provisions will not apply if, at or prior to the time when the act with respect to which such vote would otherwise be required will be effected, all outstanding shares of Series C Preferred Stock will have been redeemed or called for redemption upon proper notice and sufficient funds will have been set aside by Holdings for the benefit of the holders of the Series C Preferred Stock to effect such redemption.

No Preemptive and Conversion Rights

Holders of the Series C Preferred Stock do not have any preemptive rights. The Series C Preferred Stock is not convertible into or exchangeable for property or shares of any other series or class of Holdings’ capital stock.

Transfer Agent, Registrar, Dividend Disbursement Agent and Redemption Agent

Computershare Trust Company, N.A. is the transfer agent and registrar for the Series C Preferred Stock as of the original issue date. Computershare Inc. is the dividend disbursement agent and redemption agent for the Series C Preferred Stock as of the original issue date. Holdings may terminate such appointment and may appoint a successor transfer agent, registrar, dividend disbursement agent and/or redemption agent at any time and from time to time, provided that Holdings will use its best efforts to ensure that there is, at all relevant times when the Series C Preferred Stock is outstanding, a person or entity appointed and serving as transfer agent, registrar, dividend disbursement agent and/or redemption agent.

DESCRIPTION OF DEPOSITARY SHARES

Dividends and Other Distributions

Each dividend on a Series A Depositary Share and Series C Depositary Share will be in an amount equal to 1/1,000th of the dividend declared on each share of Series A Preferred Stock and Series C Preferred Stock, as applicable. Herein, the Series A Depositary Shares and Series C Depositary Shares are together called “Depositary Shares”.

The Depositary will distribute any cash dividends or other cash distributions received in respect of the deposited Series A Preferred Stock or Series C Preferred Stock to the record holders of the Depositary Shares relating to the underlying Series A Preferred Stock or Series C Preferred Stock, as applicable, in proportion to the number of the applicable Depositary Shares held by each holder on the relevant record date. The Depositary will distribute any property received by it other than cash to the record holders of the applicable Depositary Shares entitled to those distributions, unless it determines that the distribution cannot be made proportionally among those holders or that it is not feasible to make a distribution. In that event, the Depositary may, with Holdings’ approval, sell the property and distribute the net proceeds from the sale to the holders of the applicable Depositary Shares in proportion to the number of such Depositary Shares they hold.

Record dates for the payment of dividends and other matters relating to the Depositary Shares are the same as the corresponding record dates for the underlying Series A Preferred Stock or Series C Preferred Stock.

The amounts distributed to holders of the Depositary Shares will be reduced by any amounts required to be withheld by the Depositary or by us on account of taxes or other governmental charges.

Redemption of the Depositary Shares

If Holdings redeems the Series A Preferred Stock or Series C Preferred Stock represented by the Depositary Shares, a corresponding number of the applicable Depositary Shares will be redeemed from the proceeds received

17

by the Depositary resulting from the redemption of the Series A Preferred Stock or Series C Preferred Stock held by the Depositary. The redemption price per Depositary Share will be equal to 1/1,000th of the redemption price per share payable with respect to the Series A Preferred Stock or Series C Preferred Stock (equivalent to $25 per Depositary Share or, in the case of a rating agency event, $25.50 per Depositary Share), plus any declared and unpaid dividends, without accumulation of any undeclared dividends, on the shares of the Series A Preferred Stock or Series C Preferred Stock. Whenever Holdings redeems shares of the Series A Preferred Stock or Series C Preferred Stock held by the Depositary, the Depositary will redeem, as of the same redemption date, the number of the Depositary Shares representing shares of the Series A Preferred Stock or Series C Preferred Stock so redeemed.

In case of any redemption of less than all of the outstanding Depositary Shares of any series, the Depositary Shares of such series to be redeemed will be selected by the Depositary pro rata, by lot or by such other method in accordance with DTC’s procedures. In any such case, the Depositary will redeem the Depositary Shares only in increments of 1,000 shares and any integral multiple thereof.

The Depositary will mail (or otherwise transmit by an authorized method) notice of redemption to holders of the applicable Depositary Shares not less 30 and not more than 60 days prior to the date fixed for redemption of the Series A Preferred Stock or Series C Preferred Stock and the applicable Depositary Shares.

Voting of the Depositary Shares

When the Depositary receives notice of any meeting at which the holders of the Series A Preferred Stock or Series C Preferred Stock are entitled to vote, the Depositary will mail (or otherwise transmit by an authorized method) the information contained in the notice to the record holders of the Depositary Shares relating to the Series A Preferred Stock or Series C Preferred Stock, as applicable. Each record holder of such Depositary Shares on the record date, which will be the same date as the record date for the Series A Preferred Stock or Series C Preferred Stock, as applicable, may instruct the Depositary to vote the amount of Series A Preferred Stock or Series C Preferred Stock represented by the holder’s Depositary Shares. Although each Depositary Share is entitled to 1/1,000th of a vote, the Depositary can only vote whole shares of Series A Preferred Stock or Series C Preferred Stock. To the extent possible, the Depositary will vote the amount of the Series A Preferred Stock or Series C Preferred Stock represented by the Depositary Shares in accordance with the instructions it receives. Holdings will agree to take all reasonable actions that the Depositary determines are necessary to enable the Depositary to vote as instructed. If the Depositary does not receive specific instructions from the holders of any Depositary Shares of a series, it will not vote the amount of the Series A Preferred Stock or Series C Preferred Stock represented by such Depositary Shares.

Market Listing

Holdings’ Series A Depositary Shares are listed on the NYSE under the symbol “EQH PR A”. Holdings’ Series C Depositary Shares are listed on the NYSE under the symbol “EQH PR C”.

Form

The Depositary shares are issued in book-entry form through DTC.

Depositary

Computershare Inc. and Computershare Trust Company, N.A. collectively are the Depositary for the Depositary Shares as of the applicable original issue date. Holdings may terminate any such appointment and may appoint a successor Depositary at any time and from time to time, provided that Holdings will use its best efforts to ensure that there is, at all relevant times when the Series A Preferred Stock or Series C Preferred Stock are outstanding, a person or entity appointed and serving as such Depositary.

18

EX-10.37

Exhibit 10.37

EQUITABLE HOLDINGS, INC.

2022 LONG-TERM INCENTIVE COMPENSATION PROGRAM

PERFORMANCE SHARES AGREEMENT

This Performance Shares Agreement (the “Agreement”), by and between Equitable Holdings, Inc., a Delaware corporation (the “Company”), and the employee who has signed this Agreement electronically (the “Employee”), is being entered into pursuant to the Equitable Holdings, Inc. 2019 Omnibus Incentive Plan (the “Plan”). Capitalized terms that are used but not defined herein shall have the respective meanings given to them in the Plan.

Section 1.Grant of Performance Shares. The Company hereby evidences and confirms its grant to the Employee, effective as of February 16, 2022, of the number of Unearned Performance Shares set forth in the Employee’s StockPlan Connect online account administered by Morgan Stanley. Each Unearned Performance Share that becomes earned and vested in accordance with the terms of this Agreement (including the Performance Conditions in Exhibit A) will entitle the Employee to receive from the Company one Share as provided under Section 3. This Agreement is entered into pursuant to, and the Unearned Performance Shares granted hereunder are subject to, the terms and conditions of the Plan, which are incorporated by reference herein. If there is any inconsistency between any express provision of this Agreement and any express term of the Plan, the express term of the Plan shall govern.

Section 2.Vesting of Performance Shares.

(a)Vesting. Except as otherwise provided in this Section 2, the Unearned Performance Shares shall become earned and vested, if at all, in accordance with the terms and conditions of this Agreement (including the Performance Conditions in Exhibit A) and the Plan, subject to the continued employment of the Employee by the Company or any of its Affiliates through February 28, 2025 (the “Vesting Date”). Unearned Performance Shares that become earned and vested shall be settled as provided in Section 3 of this Agreement.

(b)Effect of Termination of Employment. In the event of a termination of employment, the treatment of any unvested Performance Shares shall be governed by Article X of the Plan, provided that:

(i) in the event of a Qualifying Termination prior to February 28, 2023, all unvested Performance Shares shall be immediately forfeited,

(ii) in the event of a Qualifying Termination on or after February 28, 2023, the Employee shall be treated for purposes of the treatment of any unvested Performance Shares as if the Employee continued in the employ of the Company and the unvested Performance Shares shall remain outstanding and become earned and vested in accordance with the terms and conditions of this Agreement, including the Performance Conditions in Exhibit A and

(iii) in the event of an involuntary termination without Cause on or after February 28, 2023 that is not a Qualifying Termination, provided that the Employee signs a Release and does not exercise any rights to revoke such Release, the Employee shall retain a portion of any unvested Performance Shares equal to the number of Performance Shares multiplied by the quotient of (A) the number of full calendar months elapsed between February 28, 2022 and the effective date of the termination under this Section 10.5 over (B) 36, and such retained Performance Shares shall become earned and vested in accordance with the terms and conditions of this Agreement, including the Performance Conditions in Exhibit A.

(c)Effect of a Change in Control. In the event of a Change in Control, the treatment of any unvested Performance Shares shall be governed by Article XI of the Plan.

(d)Discretionary Acceleration. Notwithstanding anything contained in this Agreement to the contrary, the Administrator, in its sole discretion, may accelerate the vesting with respect to any Performance Shares under this Agreement, at such times and upon such terms and conditions as the Administrator shall determine.

(e)    Failure to Accept Award or Comply with Informational Requirements. In the event that the Employee does not accept the Performance Shares granted hereunder and the terms of this Agreement within six months after the Grant Date, the Performance Shares shall be forfeited. In the event that the Employee does not comply with any informational requirements established by the Adminstrator or its designee under Section 10.7 of the Plan prior to the Vesting Date, the Performance Shares shall be forfeited.

Section 3.Settlement of Performance Shares. Subject to Section 6(a), any earned Performance Shares that become vested on the Vesting Date shall be settled into an equal number of Shares on a date selected by the Company that is within 30 days following the Vesting Date, or, in the event of a termination of employment by reason of death, within 30 days following the date of such termination (each such date, a “Settlement Date”).

Section 4.Restriction on Transfer; Non-Transferability of Performance Shares. The Performance Shares are not assignable or transferable, in whole or in part, and they may not, directly or indirectly, be offered, transferred, sold, pledged, assigned, alienated, hypothecated or otherwise disposed of or encumbered (including, but not limited to, by gift, operation of law or otherwise) other than by will or by the laws of descent and distribution to the estate of the Employee upon the Employee’s death. Any purported transfer in violation of this Section 4 shall be void ab initio.

Section 5.Restrictive Covenants and Post-Termination Obligations. In consideration of the receipt of the Performance Shares granted pursuant to this Agreement, the Employee agrees to be bound by the covenants set forth in Exhibit B to this Agreement, which are incorporated by reference and made part of this Agreement; provided that the Company’s remedies for the Employee’s breach of any covenant shall be limited to those described in Section 10.1 of the Plan.

Section 6.Miscellaneous.

(a)Tax Withholding. The Company or one of its Affiliates shall require the Employee to satisfy any applicable U.S. federal, state and local and non-U.S. tax withholding obligations that may arise in connection with the vesting of any earned Performance Shares by retaining a number of Shares to be issued in respect of the Performance Shares then vesting that have an aggregate Fair Market Value as of the Settlement Date equal to the amount of such taxes required to be withheld (and the Employee shall thereupon be deemed to have satisfied his or her obligations under this Section 6(a)). The number of Shares to be issued in respect of the Performance Shares shall thereupon be reduced by the number of Shares so retained.

(b)Dividend Equivalents. In the event that the Company pays any ordinary dividend in cash while the Employee has any outstanding Performance Shares, there shall be credited to the account of the Employee a dividend equivalent in the form of additional Performance Shares equal in value to the cash dividends that the Employee would have received if the Employee’s then outstanding Performance Shares represented actual Shares. The amount so credited shall be paid at the applicable Settlement Date of the Performance Shares in Shares proportionate to the amount of the Performance Shares, if any, that have been earned or vested. To the extent any Performance Shares are canceled, a proportionate amount of such dividend equivalents shall be forfeited.

(c)Forfeiture of Awards. The Performance Shares granted hereunder (and gains earned or accrued in connection therewith) shall be subject to such generally applicable policies as to forfeiture and recoupment (including, without limitation, upon the occurrence of material financial or accounting errors, financial or other misconduct or Competitive Activity) as may be adopted by the Administrator or the Board from time to time and communicated to the Employee or as required by applicable law, and are otherwise subject to forfeiture or disgorgement of profits as provided by the Plan.

(d)Consent to Electronic Delivery. By entering into this Agreement and accepting the Performance Shares evidenced hereby, the Employee hereby consents to the delivery of information (including, without limitation, information required to be delivered to the Employee pursuant to applicable securities laws) regarding the Company and the Subsidiaries, the Plan, this Agreement and the Performance Shares via Company website or other electronic delivery.

(e)Amendment. This Agreement may not be amended, modified or supplemented orally, but only by a written instrument executed by the Employee and the Company.

(f)Applicable Law. This Agreement shall be governed in all respects, including, but not limited to, as to validity, interpretation and effect, by the internal laws of the State of Delaware, without reference to principles of conflict of law that would require application of the law of another jurisdiction.

(g)Acceptance of Performance Shares and Agreement. The Employee has indicated his or her consent and acknowledgement of the terms of this Agreement pursuant to the instructions provided to the Employee by or on behalf of the Company. The Employee acknowledges receipt of the Plan, represents to the Company that he or she has read and understood this Agreement and the Plan, and, as an express condition to the grant of the Performance Shares under this Agreement, agrees to be bound by the terms of both this Agreement and the Plan. The Employee and the Company each agrees and acknowledges that the use of electronic media (including, without limitation, a clickthrough button or checkbox on a website of the Company or a third-party administrator) to indicate the Employee’s confirmation, consent, signature, agreement and delivery of this Agreement and the Performance Shares is legally valid and has the same legal force and effect as if the Employee and the Company signed and executed this Agreement in paper form. The same use of electronic media may be used for any amendment or waiver of this Agreement.

Exhibit 10.37

EXHIBIT A

PERFORMANCE SHARES AGREEMENT

PERFORMANCE CONDITIONS

Grant Date:                        February 16, 2022

Performance Period:                    January 1, 2022 – December 31, 2024

Vesting Date:                        February 28, 2025

The Unearned Performance Shares granted to the Employee on February 16, 2022, as earned in accordance with the performance conditions described below, are subject to the terms and conditions of the Plan and Agreement.

An unearned performance share is a “phantom” share of common stock of Equitable Holdings, Inc. (the “Company”). That is, although an unearned performance share is not an actual share of Company common stock, an unearned performance share awards you a right to receive a share of Company common stock at the time of settlement of the award provided that:

•the unearned performance share is “earned” as described below and

•the earned performance share becomes “vested” as described in the Performance Shares Agreement.

All of the unearned performance shares granted to you on February 16, 2022 are “TSR Performance Shares.” TSR Performance Shares can be earned depending on the Company’s total shareholder return relative to its peer group during the Performance Period.

Total Shareholder Return

Total shareholder return is the total amount a company returns to investors during a designated period, including both capital gains and dividends. The starting point for determining the total shareholder return for both the Company and its peers during the Performance Period will be based on their closing share prices during December 2021, as adjusted for dividends. At the end of the Performance Period, the total shareholder return for each company will be calculated based on their closing share prices during December 2024, as adjusted for dividends. For this purpose, dividends are deemed to be reinvested as of the ex-date.

Earning TSR Performance Shares

The number of TSR Performance Shares that are earned will be determined at the end of the Performance Period by multiplying the number of unearned TSR Performance Shares listed above by the “TSR Performance Factor.”

The TSR Performance Factor will be determined as follows:

If the Company’s Total Shareholder Return Relative to its Peers for the Performance Period is …	The TSR Performance Factor will equal…
Maximum Amount – 87.5th percentile or greater	200%
Target Amount – 50th percentile	100%
Threshold Amount – 30th percentile	25%
Below Threshold	0%

Note: For results in-between the threshold and target and target and maximum amounts, the TSR Performance Factor will be determined by linear interpolation.

The Peer Group

For purposes of determining the Company’s total shareholder return relative to its peer group (on U.S. exchanges), the Company’s peer group will include:

•Ameriprise Financial, Inc.

•Brighthouse Financial, Inc.

•CNO Financial Group, Inc.

•Lincoln National Corporation

•Manulife Financial Corporation

•MetLife

•Principal Financial Group, Inc.

•Prudential Financial, Inc.

•Sun Life Financial, Inc.

•Globe Life

•Unum Group

•Voya Financial, Inc 

The following rules will apply:

•if a peer enters bankruptcy during the Performance Period, it will be assumed to have a negative 100% total shareholder return for the Performance Period;

•if a peer is acquired by another peer and the transaction is completed as of the date that total shareholder return is calculated for the peer group, the acquiror will be included and the acquired company will be excluded from the peer group; and

•if a peer is acquired by a non-peer and the transaction is completed as of the date that total shareholder return is calculated for the peer group, it will be excluded from the peer group.

Company Determinations

The Company will make all determinations regarding the performance conditions for unearned performance shares and whether they have been met in its sole discretion. The Company will determine the TSR Performance Factor within sixty days following December 31, 2024. Any unearned performance shares that are not earned will be forfeited as of the date of the Company’s determination.

EXHIBIT B
PERFORMANCE SHARES AGREEMENT

RESTRICTIVE COVENANTS AND POST-TERMINATION OBLIGATIONS

Section 1. Acknowledgements. The Employee acknowledges and agrees that during the Employee’s employment with the Company and its Affiliates, the Employee has and will have access to trade secrets and other information that is confidential and/or proprietary about the totality, strategies and business dealings of the Company and its Subsidiaries. The Employee acknowledges and agrees that such information is highly valuable to the Company and provides the Company with a unique and competitive advantage. The Employee further acknowledges and agrees that the covenants contained herein are reasonable and necessary to protect the legitimate interests of the Company, and that any violation of the covenants set forth herein would result in significant and irreparable harm to the Company.

Section 2. Protection of Confidential Information. The Employee will not, without permission of the Company, disclose any confidential and/or proprietary information or trade secrets of the Company or its Subsidiaries to anyone outside the Company, unless required by subpoena. Confidential and/or proprietary information and trade secrets include, but are not limited to, customer lists, any confidential information about (or provided by) any customer or prospective or former customer of the Company or one of its Subsidiaries, product development information, marketing and sales plans, premium or other pricing information, operating policies and manuals and other confidential information related to the Company or its Subsidiaries. Notwithstanding the foregoing, the Employee may disclose confidential information as (x) authorized by applicable law (including, but not limited to, any disclosure of information that satisfies the procedures in SEC Regulation § 240.21F-17) or (y) required pursuant to an order or requirement of a court, administrative agency, regulatory (including any self-regulatory) agency or authority or other government body.

Section 3. Noncompetition. The Employee will not, for 12 months following termination of employment, directly or indirectly provide services in any capacity for any entity that conducts business competitive to that of the Company or one of its Subsidiaries.

Section 4. Non-solicitation of Employees and Agents. The Employee will not, for 12 months following termination of employment, directly or indirectly, individually or on behalf of any other person or business entity of any type, hire or attempt to hire any employee, agent or agency, broker, broker-dealer, financial professional, registered principal or representative who is, or during the 6 months preceding the Employee’s termination of employment was, employed or associated with the Company or one of its Subsidiaries.

Section 5. Non-solicitation of Customers. The Employee will not, for 12 months following termination of employment, directly or indirectly, either for the Employee’s own benefit or for the benefit of another, attempt to solicit any person or entity that is, or during the 6 months preceding the Employee’s termination of employment was, a customer of the Company or one of its Subsidiaries.

Section 6. Non-disparagement. The Employee shall not (including following any termination of employment with the Company and its Subsidiaries), whether in writing or orally, disparage the Company, its Subsidiaries, any of their respective Affiliates or their respective predecessors and successors, or any of the current or former directors, officers, executives, shareholders, partners, members, or, as a group, other employees of any of the foregoing, with respect to any of their respective past or present activities or otherwise publish (whether in writing or orally) statements that reflects adversely on or encourages any adverse action against the aforementioned parties unless (x) testifying truthfully under oath pursuant to a lawful court order or subpoena, (y) authorized by applicable law (including, but not limited to, any disclosure of information that satisfies the procedures in SEC Regulation § 240.21F-17) or (z) required pursuant to an order or requirement of a court, administrative agency regulatory (including any self-regulatory) agency or authority or other government body.

Section 7. Agreement to Cooperate. Following the termination of employment and without additional compensation, the Employee will reasonably assist and cooperate with the Company and its Subsidiaries in connection with the defense or prosecution of any claim that may be made against or by the Company or one of its Subsidiaries, or in connection with any ongoing or future investigation or dispute or claim of any kind involving the Company or one of its Subsidiaries including preparing for and testifying in any proceeding to the extent that such claims investigations or proceedings relate to services performed or required to be performed by the Employee during employment, pertinent knowledge possessed by the Employee or any act or omission by the Employee. Employee will perform all acts and execute and

deliver all documents that may be reasonably necessary to carry out the provisions of this Section 7. Upon submission of appropriate written documentation, the Company agrees to reimburse the Employee for reasonable pre-approved out-of-pocket expenses incurred in connection with such assistance. The Company agrees it will make all reasonable efforts to minimize disruption to the Employee’s other commitments.

EX-10.38

Exhibit 10.38

EQUITABLE HOLDINGS, INC.

2022 LONG-TERM INCENTIVE COMPENSATION PROGRAM
RESTRICTED STOCK UNIT AGREEMENT

This Restricted Stock Unit Agreement (the “Agreement”), by and between Equitable Holdings, Inc., a Delaware corporation (the “Company”), and the individual who has signed this Agreement electronically (the “Service Provider”), is being entered into pursuant to the Equitable Holdings, Inc. 2019 Omnibus Incentive Plan (the “Plan”). Capitalized terms that are used but not defined herein shall have the respective meanings given to them in the Plan.

Section 1.Grant of Restricted Stock Units. The Company hereby evidences and confirms its grant to the Service Provider, effective as of February 16, 2022 (the “Grant Date”), of the number of Restricted Stock Units set forth in the Service Provider’s StockPlan Connect online account administered by Morgan Stanley. This Agreement is entered into pursuant to, and the Restricted Stock Units granted hereunder are subject to, the terms and conditions of the Plan, which are incorporated by reference herein. If there is any inconsistency between any express provision of this Agreement and any express term of the Plan, the express term of the Plan shall govern.

Section 2.Vesting of Restricted Stock Units.

(a)Vesting. Except as otherwise provided in this Section 2, the Restricted Stock Units shall vest ratably in equal annual installments over a three-year period, on each of the first three anniversaries of February 28, 2022 (each, a “Vesting Date”), subject to the continued service of the Service Provider to the Company or any of its Affiliates through such date. Vested Restricted Stock Units shall be settled as provided in Section 3 of this Agreement.

(b)Effect of Termination of Service. In the event of a termination of service, the treatment of any unvested Restricted Stock Units shall be governed by Article X of the Plan; provided that: (i) in the event of a Qualifying Termination prior to February 28, 2023, all Restricted Stock Units shall be forfeited, (ii) in the event of a Qualifying Termination on or after February 28, 2023, the Service Provider shall be treated for purposes of the treatment of the Restricted Stock Units as if the Service Provider continued in the service of the Company and the Restricted Stock Units shall remain outstanding and become vested in accordance with the terms and conditions of this Agreement and (iii) in the case of an involuntary termination without Cause on or after February 28, 2023which is not a Qualifying Termination where the Service Provider signs a Release and does not exercise any rights to revoke such Release, the Service Provider shall retain that portion of any unvested Restricted Stock Units scheduled to vest:

(i) on February 28, 2024 (the “Second Tranche RSUs”) equal to the number of Second Tranche RSUs multiplied by the quotient of: (x) the number of full calendar months elapsed between February 28, 2022 and the termination date over (y) 24; and

(ii) on February 28, 2025 (the “Third Tranche RSUs”) equal to the number of Third Tranche RSUs multiplied by the quotient of: (x) the number of full calendar months elapsed between February 28, 2022 and the termination date over (y) 36.

(c)Effect of a Change in Control. In the event of a Change in Control, the treatment of any unvested Restricted Stock Units shall be governed by Article XI of the Plan.

(d)Discretionary Acceleration. Notwithstanding anything contained in this Agreement to the contrary, the Administrator, in its sole discretion, may accelerate the vesting with respect to any Restricted Stock Units under this Agreement, at such times and upon such terms and conditions as the Administrator shall determine.

(e)Failure to Accept Award. In the event that the Service Provider does not accept the Restricted Stock Units granted hereunder and the terms of this Agreement within six months after the Grant Date, the Restricted Stock Units shall be forfeited. In the event that the Service Provider does not comply with any informational requirements established by the Administrator or its designee under Section 10.7 of the Plan prior to a Vesting Date, the Restricted Stock Units otherwise scheduled to vest on that date shall be forfeited.

Section 3.Settlement of Restricted Stock Units. Subject to Section 6(a) of this Agreement, any outstanding Restricted Stock Units that become vested Restricted Stock Units shall be settled in an

equal number of Shares on a date selected by the Company that is within 30 days following the applicable Vesting Date or, in the event of a termination of service by reason of death, within 30 days following the date of such termination (each such date, a “Settlement Date”).

Section 4.Restriction on Transfer; Non-Transferability of Restricted Stock Units. The Restricted Stock Units are not assignable or transferable, in whole or in part, and they may not, directly or indirectly, be offered, transferred, sold, pledged, assigned, alienated, hypothecated or otherwise disposed of or encumbered (including, but not limited to, by gift, operation of law or otherwise) other than by will or by the laws of descent and distribution to the estate of the Service Provider upon the Service Provider’s death. Any purported transfer in violation of this Section 4 shall be void ab initio.

Section 5.Restrictive Covenants and Post-Termination Obligations. In consideration of the receipt of the Restricted Stock Units granted pursuant to this Agreement, the Service Provider agrees to be bound by the covenants set forth in Exhibit A to this Agreement, which are incorporated by reference and made part of this Agreement; provided that the Company’s remedies for the Service Provider’s breach of any covenant shall be limited to those described in Section 10.1 of the Plan.

Section 6.Miscellaneous.

(a)Tax Withholding. The Company or one of its Affiliates shall require the Service Provider to satisfy any applicable U.S. federal, state and local and non-U.S. tax withholding obligations that may arise in connection with the vesting of the Restricted Stock Units by retaining a number of Shares to be issued in respect of the Restricted Stock Units then vesting that have an aggregate Fair Market Value as of the Settlement Date equal to the amount of such taxes required to be withheld (and the Service Provider shall thereupon be deemed to have satisfied his or her obligations under this Section 6(a)). The number of Shares to be issued in respect of Restricted Stock Units shall thereupon be reduced by the number of Shares so retained.

(b)Dividend Equivalents. In the event that the Company pays any ordinary dividend in cash while the Service Provider has any outstanding Restricted Stock Units, there shall be credited to the account of the Service Provider a dividend equivalent in the form of additional Restricted Stock Units equal in value to the cash dividends that the Service Provider would have received if the Service Provider’s then outstanding Restricted Stock Units represented actual Shares. The Restricted Stock Units so credited shall be subject to the same vesting and other requirements applicable to the Restricted Stock Units with respect to which they are credited.

(c)Forfeiture of Awards. The Restricted Stock Units granted hereunder (and gains earned or accrued in connection therewith) shall be subject to such generally applicable policies as to forfeiture and recoupment (including, without limitation, upon the occurrence of material financial or accounting errors, financial or other misconduct or Competitive Activity) as may be adopted by the Administrator or the Board from time to time and communicated to the Service Provider or as required by applicable law, and are otherwise subject to forfeiture or disgorgement of profits as provided by the Plan.

(d)Consent to Electronic Delivery. By entering into this Agreement and accepting the Restricted Stock Units evidenced hereby, the Service Provider hereby consents to the delivery of information (including, without limitation, information required to be delivered to the Service Provider pursuant to applicable securities laws) regarding the Company and the Subsidiaries, the Plan, this Agreement and the Restricted Stock Units via Company website or other electronic delivery.

(e)Amendment. This Agreement may not be amended, modified or supplemented orally, but only by a written instrument executed by the Service Provider and the Company.

(f)Applicable Law. This Agreement shall be governed in all respects, including, but not limited to, as to validity, interpretation and effect, by the internal laws of the State of Delaware, without reference to principles of conflict of law that would require application of the law of another jurisdiction.

(g)Acceptance of Restricted Stock Units and Agreement. The Service Provider has indicated his or her consent and acknowledgement of the terms of this Agreement pursuant to the instructions provided to the Service Provider by or on behalf of the Company. The Service Provider acknowledges receipt of the Plan, represents to the Company that he or she has read and understood this Agreement and the Plan, and, as an express condition to the grant of the Restricted Stock Units

under this Agreement, agrees to be bound by the terms of both this Agreement and the Plan. The Service Provider and the Company each agrees and acknowledges that the use of electronic media (including, without limitation, a clickthrough button or checkbox on a website of the Company or a third-party administrator) to indicate the Service Provider’s confirmation, consent, signature, agreement and delivery of this Agreement and the Restricted Stock Units is legally valid and has the same legal force and effect as if the Service Provider and the Company signed and executed this Agreement in paper form. The same use of electronic media may be used for any amendment or waiver of this Agreement.

(h)Offset of Proceeds Related to Indebtedness. The Service Provider agrees and acknowledges that the Company or one of its Subsidiaries may offset any amounts to which the Service Provider may be entitled under this Agreement by the amount of any indebtedness and related interest owed by the Service Provider to the Company or one of its Subsidiaries to the extent permitted by applicable law or, if lower, to the extent that such offset will not create adverse tax consequences to the Service Provider under Section 409A. Further, the Service Provider agrees and acknowledges that if any or all of the amount owed by the Service Provider is not satisfied by such offset, the Service Provider shall continue to remain responsible for payment of the outstanding balance.

EXHIBIT A

RESTRICTED STOCK UNIT AGREEMENT

RESTRICTIVE COVENANTS AND POST-TERMINATION OBLIGATIONS

Section 1. Acknowledgements. The Service Provider acknowledges and agrees that during the Service Provider’s service with the Company and its Affiliates, the Service Provider has and will have access to trade secrets and other information that is confidential and/or proprietary about the totality, strategies and business dealings of the Company and its Subsidiaries. The Service Provider acknowledges and agrees that such information is highly valuable to the Company and provides the Company with a unique and competitive advantage. The Service Provider further acknowledges and agrees that the covenants contained herein are reasonable and necessary to protect the legitimate interests of the Company, and that any violation of the covenants set forth herein would result in significant and irreparable harm to the Company.

Section 2. Protection of Confidential Information. The Service Provider will not, without permission of the Company, disclose any confidential and/or proprietary information or trade secrets of the Company or its Subsidiaries to anyone outside the Company, unless required by subpoena. Confidential and/or proprietary information and trade secrets include, but are not limited to, customer lists, any confidential information about (or provided by) any customer or prospective or former customer of the Company or one of its Subsidiaries, product development information, marketing and sales plans, premium or other pricing information, operating policies and manuals and other confidential information related to the Company or its Subsidiaries. Notwithstanding the foregoing, the Service Provider may disclose confidential information as (x) authorized by applicable law (including, but not limited to, any disclosure of information that satisfies the procedures in SEC Regulation § 240.21F-17) or (y) required pursuant to an order or requirement of a court, administrative agency, regulatory (including any self-regulatory) agency or authority or other government body.

Section 3. Noncompetition. The Service Provider will not, for 12 months following termination of service, directly or indirectly provide services in any capacity for any entity that conducts business competitive to that of the Company or one of its Subsidiaries.

Section 4. Non-solicitation of Service Providers and Agents. The Service Provider will not, for 12 months following termination of service, directly or indirectly, individually or on behalf of any other person or business entity of any type, hire or attempt to hire any Service Provider, agent or agency, broker, broker-dealer, financial professional, registered principal or representative who is, or during the 6 months preceding the Service Provider’s termination of service was, employed or associated with the Company or one of its Subsidiaries.

Section 5. Non-solicitation of Customers. The Service Provider will not, for 12 months following termination of service, directly or indirectly, either for the Service Provider’s own benefit or for the benefit of another, attempt to solicit any person or entity that is, or during the 6 months preceding the Service Provider’s termination of service was, a customer of the Company or one of its Subsidiaries.

Section 6. Non-disparagement. The Service Provider shall not (including following any termination of service with the Company and its Subsidiaries), whether in writing or orally, disparage the Company, its Subsidiaries, any of their respective Affiliates or their respective predecessors and successors, or any of the current or former directors, officers, executives, shareholders, partners, members, or, as a group, other Service Providers of any of the foregoing, with respect to any of their respective past or present activities or otherwise publish (whether in writing or orally) statements that reflects adversely on or encourages any adverse action against the aforementioned parties unless (x) testifying truthfully under oath pursuant to a lawful court order or subpoena, (y) authorized by applicable law (including, but not limited to, any disclosure of information that satisfies the procedures in SEC Regulation § 240.21F-17) or (z) required pursuant to an order or requirement of a court, administrative agency, regulatory (including any self-regulatory) agency or authority, or other government body.

Section 7. Agreement to Cooperate. Following the termination of service and without additional compensation, the Service Provider will reasonably assist and cooperate with the Company and its Subsidiaries in connection with the defense or prosecution of any claim that may be made against or by the Company or one of its Subsidiaries, or in connection with any ongoing or future investigation or dispute or claim of any kind involving the Company or one of its Subsidiaries including preparing for and testifying in any proceeding to the extent that such claims investigations or proceedings relate to services

performed or required to be performed by the Service Provider during service, pertinent knowledge possessed by the Service Provider or any act or omission by the Service Provider. Service Provider will perform all acts and execute and deliver all documents that may be reasonably necessary to carry out the provisions of this Section 7. Upon submission of appropriate written documentation, the Company agrees to reimburse the Service Provider for reasonable pre-approved out-of-pocket expenses incurred in connection with such assistance. The Company agrees it will make all reasonable efforts to minimize disruption to the Service Provider’s other commitments.

EX-21.1

Exhibit 21.1

LIST OF SUBSIDIARIES – AS OF DECEMBER 31, 2021

Entity Name	State or other jurisdiction of incorporation or organization
Equitable Holdings, Inc.	DE
Alpha Units Holdings, Inc.	DE
AllianceBernstein Corporation	DE
SEE LISTING A
CS Life Re Company	AZ
Alpha Units Holdings II, Inc.	DE
787 Holdings, LLC	DE
1285 Holdings, LLC	DE
AXA Strategic Ventures US, LLC	DE
Equitable Financial Services, LLC	DE
Equitable Investment Management, LLC	DE
EQ AZ Life Re Company	AZ
Equitable Distribution Holding Corporation	DE
Equitable Advisors, LLC	DE
Equitable Network, LLC	DE
Equitable Network of Puerto Rico, Inc.	P.R.
PlanConnect, LLC	DE
Equitable Financial Life Insurance Company	NY
Equitable Investment Management Group LLC	DE
Broad Vista Partners, LLC	DE
200 East 87th Street Company, LLC	DE
EQ Holdings, LLC	NY
Equitable Casualty Insurance Company	VT
Equitable Distributors, LLC	DE
J.M.R. Realty Services, Inc.	DE
Equitable Structured Settlement Corp.	DE
Equitable Managed Assets, L.P.	DE
EVSA, Inc.	DE
Separate Account 166, LLC	DE
Equitable Financial Life and Annuity Company	CO
MONY International Holdings, LLC	DE
MONY International Life Insurance Co. Seguros de Vida S.A.	Argentina
MONY Financial Resources of the Americas Limited	Jamaica
MBT, Ltd.	Cayman Islands
MONY Participacoes LTDA (f/k/a MONY Consultoria e Corretagem de Seguros Ltda.)	Brazil
Equitable Financial Life Insurance Company of America	AZ
MONY Financial Services, Inc.	DE
Financial Marketing Agency, Inc.	OH
1740 Advisers, Inc.	NY

LISTING A - AllianceBernstein Corporation
Equitable Holdings, Inc.
Alpha Units Holdings, Inc.
AllianceBernstein Corporation
AllianceBernstein Holding L.P.	DE
AllianceBernstein L.P.	DE
AllianceBernstein Investments Taiwan Limited	Taiwan
AB Trust Company, LLC	NH
Alliance Capital Management LLC	DE
AllianceBernstein Real Estate Investments LLC	DE
AB Private Credit Investors LLC	DE
AB Custom Alternative Solutions LLC	DE
Sanford C. Bernstein & Co., LLC	DE
Autonomous Research U.S. L.P.	NY
AnchorPath Financial, LLC	DE
AnchorPath GP, LLC	DE
AB Broadly Syndicated Loan Manager LLC	DE
Sanford C. Bernstein Global Holdings LLC	DE
AllianceBernstein International LLC	DE
Sanford C. Bernstein (Schwiez) GmbH	Switzerland
Sanford C. Bernstein (Hong Kong) Limited	Hong Kong
Sanford C. Bernstein (Australia) Pty. Limited	Australia
Sanford C. Bernstein (Ireland) Limited	Ireland
AllianceBernstein Holdings Limited	U.K.
AllianceBernstein Corporation of Delaware	DE
AllianceBernstein (Argentina) S.R.L.	Argentina
AllianceBernstein (Chile) SpA	Chile
AllianceBernstein Japan Ltd.	Japan
AllianceBernstein Investment Management Australia Limited	Australia
AllianceBernstein Global Derivatives Corporation	DE
AllianceBernstein Administradora de Carteiras (Brasil) Ltda.	Brazil
AllianceBernstein Holdings (Cayman) Ltd.	Cayman Isles
AllianceBernstein Preferred Limited	U.K.
CPH Capital Fondsmaeglerselskab A/S	Denmark
AB Bernstein Israel Ltd.	Israel
AllianceBernstein Limited	U.K.
AllianceBernstein Services Limited	U.K.
Lacarne Holdings Ltd.	U.K.
AllianceBernstein Schweiz AG	Switzerland
AllianceBernstein (Luxembourg) S.a.r.l.	Lux.
AllianceBernstein (France) SAS	France
AllianceBernstein (Mexico) S. de R.L. de C.V.	Mexico
AllianceBernstein Australia Limited	Australia
AllianceBernstein Canada, Inc.	Canada
AllianceBernstein (Singapore) Ltd.	Singapore
AllianceBernstein Portugal, Unipessoal LDA	Portugal
Alliance Capital (Mauritius) Private Limited	Mauritius

AllianceBernstein Solutions (India) Private Limited	India
AllianceBernstein Investment Research and Management (India) Private Ltd.	India
Sanford C. Bernstein (India) Private Limited	India
AllianceBernstein Oceanic Corporation	DE
AllianceBernstein Asset Management (Korea) Ltd.	South Korea
AllianceBernstein Investments, Inc.	DE
AllianceBernstein Investor Services, Inc.	DE
AllianceBernstein Hong Kong Limited	Hong Kong
AB (Shanghai) Investment Management Co., Ltd.	China
AB (Shanghai) Overseas Investment Fund Management Co., Ltd.	China
Sanford C. Bernstein Limited	U.K.
Sanford C. Bernstein (Autonomous UK) 1 Limited	U.K.
Bernstein Autonomous LLP	U.K.
Autonomous Research Limited	U.K.
Procensus Limited	U.K.
Sanford C. Bernstein (CREST Nominees) Limited	U.K.
W.P. Stewart & Co., LLC.	DE
WPS Advisors, LLC.	DE
W.P. Stewart Asset Management LLC	DE
W.P. Stewart Securities LLC	DE
W.P. Stewart Asset Management (NA), LLC	NY

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statements on Form S-3 (No. 333-234788) and Form S-8 (Nos. 333-224847, 333-228557, 333-230187 and 333-239355) of Equitable Holdings, Inc. of our report dated February 22, 2022 relating to the financial statements and financial statement schedules and the effectiveness of internal control over financial reporting, which appears in this Form 10-K.

/s/ PricewaterhouseCoopers LLP

New York, New York

February 22, 2022

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Mark Pearson, President and Chief Executive Officer of Equitable Holdings, Inc., certify that:

1) I have reviewed this Annual Report on Form 10-K of Equitable Holdings, Inc. (the “Registrant”);

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4) The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5) The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: February 22, 2022

/s/ Mark Pearson

Mark Pearson

President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Robin M. Raju, Chief Financial Officer of Equitable Holdings, Inc., certify that:

1) I have reviewed this Annual Report on Form 10-K of Equitable Holdings, Inc. (the “Registrant”);

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4) The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5) The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: February 22, 2022

/s/ Robin M. Raju

Robin M. Raju

Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 10-K of Equitable Holdings, Inc. (the “Company”) for the year ended December 31, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Mark Pearson, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: February 22, 2022

/s/ Mark Pearson

Mark Pearson

President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 10-K of Equitable Holdings, Inc. (the “Company”) for the year ended December 31, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Robin M. Raju, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: February 22, 2022

/s/ Robin M. Raju

Robin M. Raju

Chief Financial Officer

XML

Cover - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2021	Feb. 20, 2022	Jun. 30, 2021
Entity Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2021
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-38469
Entity Registrant Name	Equitable Holdings, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	90-0226248
Entity Address, Address Line One	1290 Avenue of the Americas
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10104
City Area Code	212
Local Phone Number	554-1234
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 11.9
Entity Common Stock, Shares Outstanding		389,557,860
Documents Incorporated by Reference [Text Block]	Portions of the registrant’s proxy statement relating to the 2022 Annual Meeting of Shareholders to be filed with the SEC within 120 days of the fiscal year ended December 31, 2021 (the “2022 Proxy Statement”) are incorporated by reference into Part III of this Annual Report on Form 10-K
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2021
Amendment Flag	false
Entity Central Index Key	0001333986
Common Stock | New York Stock Exchange
Entity Information [Line Items]
Title of 12(b) Security	Common Stock
Trading Symbol	EQH
Security Exchange Name	NYSE
Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series A | New York Stock Exchange
Entity Information [Line Items]
Title of 12(b) Security	Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series A
Trading Symbol	EQH PR A
Security Exchange Name	NYSE
Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series C | New York Stock Exchange
Entity Information [Line Items]
Title of 12(b) Security	Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series C
Trading Symbol	EQH PR C
Security Exchange Name	NYSE

XML

Audit Information	12 Months Ended
	Dec. 31, 2021
Audit Information [Abstract]
Auditor Name	PricewaterhouseCoopers LLP
Auditor Firm ID	238
Auditor Location	New York, New York

XML

Consolidated Balance Sheets - USD ($) $ in Millions		Dec. 31, 2021	Dec. 31, 2020
Investments:
Fixed maturities available-for-sale, at fair value (amortized cost of $73,429 and $72,867) (allowance for credit losses of $22 and $13)		$ 78,216	$ 81,638
Fixed maturities, at fair value using the fair value option	[1]	1,641	389
Mortgage loans on real estate (net of allowance for credit losses of $62 and $81)	[1]	14,033	13,159
Policy loans		4,024	4,118
Other equity investments	[1]	2,975	1,502
Trading securities, at fair value		631	5,553
Other invested assets	[1]	3,591	2,728
Total investments		105,111	109,087
Cash and cash equivalents	[1]	5,188	6,179
Cash and securities segregated, at fair value		1,504	1,753
Broker-dealer related receivables		2,599	2,223
Deferred policy acquisition costs		5,491	4,243
Goodwill and other intangible assets, net		4,728	4,737
Amounts due from reinsurers (allowance for credit losses of $5 and $5) (includes amounts accounted for at fair value of $5,813 and $—)	[2]	14,679	4,566
GMIB reinsurance contract asset, at fair value		1,848	2,488
Current and deferred income taxes		195	0
Other assets	[1]	3,613	3,701
Assets held-for-sale		0	470
Separate Accounts assets		147,306	135,950
Total Assets		292,262	275,397
LIABILITIES
Policyholders’ account balances		79,357	66,820
Future policy benefits and other policyholders' liabilities		36,717	39,881
Broker-dealer related payables		1,283	1,443
Customer related payables		3,600	3,417
Amounts due to reinsurers		1,381	1,381
Short-term and long-term debt		3,931	4,115
Current and deferred income taxes		0	749
Notes issued by consolidated variable interest entities, at fair value using the fair value option	[1]	1,191	313
Other liabilities	[1]	3,933	3,686
Liabilities held-for-sale		0	322
Separate Accounts liabilities		147,306	135,950
Total Liabilities		278,699	258,077
Redeemable noncontrolling interest	[1],[3]	468	143
Commitments and contingent liabilities (Note 17)
Equity attributable to Holdings:
Preferred stock and additional paid-in capital, $1 par value and $25,000 liquidation preference		1,562	1,269
Common stock, $0.01 par value, 2,000,000,000 shares authorized; 520,918,331 and 552,896,328 shares issued, respectively; 391,290,224 and 440,776,011 shares outstanding, respectively		4	5
Additional paid-in capital		1,919	1,985
Treasury stock, at cost, 129,628,107 and 112,120,317 shares, respectively		(2,850)	(2,245)
Retained earnings		8,880	10,699
Accumulated other comprehensive income (loss)		2,004	3,863
Total equity attributable to Holdings		11,519	15,576
Noncontrolling interest		1,576	1,601
Total Equity		13,095	17,177
Total Liabilities, Redeemable Noncontrolling Interest and Equity		$ 292,262	$ 275,397

[1] See Note 2 of the Notes to these Consolidated Financial Statements for details of balances with VIEs.

[2] Represents the fair value of the ceded reserves to Venerable. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction and Note 8 of the Notes to these Consolidated Financial Statements .

[3] See Note 22 of the Notes to these Consolidated Financial Statements for details of redeemable noncontrolling interest.

XML

Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Fixed maturities available-for-sale, amortized cost	$ 73,429,000,000	$ 72,867,000,000
Fixed maturities available-for-sale, allowance for credit losses	22,000,000	13,000,000
Mortgage loans on real estate, allowance for credit losses	62,000,000	81,000,000
Reinsurance recoverable, allowance for credit loss	5,000,000	5,000,000
Reinsurance recoverable, fair value	$ 5,813,000,000	$ 0
Preferred stock par value (in dollars per share)	$ 1	$ 1
Preferred stock, liquidation preference	$ 25,000	$ 25,000
Common stock par value (in dollars per share)	$ 0.01	$ 0.01
Common stock authorized (in shares)	2,000,000,000	2,000,000,000
Common stock issued (in shares)	520,918,331	552,896,328
Common stock outstanding (in shares)	391,290,224	440,776,011
Treasury stock (in shares)	129,628,107	112,120,317

XML

Consolidated Statements of Income (Loss) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
REVENUES
Policy charges and fee income	$ 3,637	$ 3,735	$ 3,778
Premiums	960	997	1,147
Net derivative gains (losses)	(4,465)	(1,722)	(4,012)
Net investment income (loss)	3,846	3,477	3,699
Investment gains (losses), net:
Credit losses on available-for-sale debt securities and loans	2	(58)	0
Other investment gains (losses), net	866	802	73
Total investment gains (losses), net	868	744	73
Investment management and service fees	5,395	4,608	4,380
Other income	795	576	554
Total revenues	11,036	12,415	9,619
BENEFITS AND OTHER DEDUCTIONS
Policyholders’ benefits	3,218	5,326	4,385
Interest credited to policyholders’ account balances	1,219	1,222	1,263
Compensation and benefits	2,360	2,096	2,081
Commissions and distribution-related payments	1,662	1,351	1,242
Interest expense	244	200	221
Amortization of deferred policy acquisition costs	393	1,613	597
Other operating costs and expenses	2,109	1,700	1,890
Total benefits and other deductions	11,205	13,508	11,679
Income (loss) from continuing operations, before income taxes	(169)	(1,093)	(2,060)
Income tax (expense) benefit	145	744	593
Net income (loss)	(24)	(349)	(1,467)
Less: Net income (loss) attributable to the noncontrolling interest	415	299	297
Net income (loss) attributable to Holdings	(439)	(648)	(1,764)
Less: Preferred stock dividends	79	53	0
Net income (loss) available to Holdings’ common shareholders	(518)	(701)	(1,764)
Net income (loss) available to Holdings’ common shareholders	$ (518)	$ (701)	$ (1,764)
Net income (loss) applicable to Holdings’ common shareholders per common share:
Basic (in dollars per share)	$ (1.24)	$ (1.56)	$ (3.57)
Diluted (in dollars per share)	$ (1.24)	$ (1.56)	$ (3.57)
Weighted average common shares outstanding (in millions):
Basic (in shares)	417.4	450.4	493.6
Diluted (in shares)	417.4	450.4	493.6

XML

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (24)	$ (349)	$ (1,467)
Other comprehensive income (loss) net of income taxes:
Change in unrealized gains (losses), net of reclassification adjustment	(2,113)	2,956	2,258
Changes in defined benefit plan related items not yet recognized in periodic benefit cost, net of reclassification adjustment	266	48	(15)
Foreign currency translation adjustment	(11)	22	5
Total other comprehensive income (loss), net of income taxes	(1,858)	3,026	2,248
Comprehensive income (loss)	(1,882)	2,677	781
Less: Comprehensive income (loss) attributable to the noncontrolling interest	416	306	293
Comprehensive income (loss) attributable to Holdings	$ (2,298)	$ 2,371	$ 488

XML

Consolidated Statements of Equity - USD ($) $ in Millions	Total	Cumulative effect of period of adoption, adjusted balance	Parent	Parent Cumulative effect of period of adoption, adjusted balance	Preferred Stock and Additional Paid-In Capital	Common Stock	Additional Paid-in Capital	Treasury Stock	Retained Earnings	Retained Earnings Cumulative effect of period of adoption, adjusted balance	Accumulated Other Comprehensive Income (Loss)	Non-controlling Interest
Beginning of year at Dec. 31, 2018	$ 15,368		$ 13,802		$ 0	$ 5	$ 1,908	$ (640)	$ 13,937		$ (1,408)	$ 1,566
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock compensation	238		161				152	9				77
Purchase of treasury stock	(1,345)		(1,345)					(1,343)	(2)
Retirement of common stock	0							142	(142)
Repurchase of AB Holding units	(173)		(112)				(112)					(61)
Dividends paid to noncontrolling interest	(256)											(256)
Dividends on common stock	(285)		(285)						(285)
Issuance of preferred stock	775		775		775
Net income (loss)	(1,501)		(1,764)						(1,764)			263
Other comprehensive income (loss)	2,248		2,252								2,252	(4)
Other	(22)		(28)				(28)					6
End of year at Dec. 31, 2019	$ 15,047	$ (30)	13,456	$ (30)	775	5	1,920	(1,832)	11,744	$ (30)	844	1,591
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting standards update [extensible enumeration]	Accounting Standards Update 2016-13
Stock compensation	$ 113		44				27	17				69
Purchase of treasury stock	(430)		(430)					(430)
Reissuance of treasury stock	(17)		(17)						(17)
Repurchase of AB Holding units	(101)		(48)				(48)					(53)
Dividends paid to noncontrolling interest	(305)											(305)
Dividends on common stock	(297)		(297)						(297)
Dividends on preferred stock	(53)		(53)						(53)
Issuance of preferred stock	494		494		494
Net income (loss)	(346)		(648)						(648)			302
Other comprehensive income (loss)	3,026		3,019								3,019	7
Other	76		86				86					(10)
End of year at Dec. 31, 2020	17,177		15,576		1,269	5	1,985	(2,245)	10,699		3,863	1,601
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock compensation	286		66				15	51				220
Purchase of treasury stock	(1,638)		(1,638)			(1)	(27)	(1,610)
Reissuance of treasury stock	(51)		(51)						(51)
Retirement of common stock	0							954	(954)
Repurchase of AB Holding units	(262)											(262)
Dividends paid to noncontrolling interest	(393)											(393)
Dividends on common stock	(296)		(296)						(296)
Dividends on preferred stock	(79)		(79)						(79)
Issuance of preferred stock	293		293		293
Net income (loss)	(29)		(439)						(439)			410
Other comprehensive income (loss)	(1,858)		(1,859)								(1,859)	1
Other	(55)		(54)				(54)					(1)
End of year at Dec. 31, 2021	$ 13,095		$ 11,519		$ 1,562	$ 4	$ 1,919	$ (2,850)	$ 8,880		$ 2,004	$ 1,576

XML

Consolidated Statements of Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Stockholders' Equity [Abstract]
Cash dividends declared per common share (in dollars per share)	$ 0.71	$ 0.66	$ 0.58

XML

Consolidated Statements of Cash Flows - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Cash Flows [Abstract]
Net income (loss)		$ (24)	$ (349)	$ (1,467)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Interest credited to policyholders’ account balances		1,219	1,222	1,263
Policy charges and fee income		(3,637)	(3,735)	(3,778)
Net derivative (gains) losses		4,465	1,722	4,012
Credit losses on AFS debt securities and loans		(2)	58	0
Investment (gains) losses, net		(863)	(872)	(206)
(Gains) losses on businesses HFS		(3)	69	133
Realized and unrealized (gains) losses on trading securities		26	(170)	(502)
Non-cash long term incentive compensation expense		226	210	278
Amortization and depreciation		497	1,757	675
Equity (income) loss from limited partnerships		(553)	(83)	(92)
Changes in:
Net broker-dealer and customer related receivables/payables		(131)	667	(403)
Reinsurance recoverable	[1]	(1,077)	(401)	(146)
Segregated cash and securities, net		250	(659)	75
Capitalization of deferred policy acquisition costs		(875)	(670)	(754)
Future policy benefits		(299)	1,953	962
Current and deferred income taxes		(451)	(571)	(102)
Other, net		476	(209)	(164)
Net cash provided by (used in) operating activities		(756)	(61)	(216)
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale		34,434	18,986	13,327
Fixed maturities, at fair value using the fair value option		763	7	0
Mortgage loans on real estate		1,696	630	952
Trading account securities		5,159	2,162	10,717
Real estate joint ventures		0	55	5
Short term investments		87	1,497	2,643
Other		1,716	1,005	306
Payment for the purchase/origination of:
Fixed maturities, available-for-sale		(43,344)	(28,197)	(29,610)
Fixed maturities, at fair value using the fair value option		(1,792)	(311)	0
Mortgage loans on real estate		(2,546)	(1,747)	(1,240)
Trading account securities		(244)	(708)	(1,123)
Short term investments		(18)	(1,098)	(2,776)
Other		(2,553)	(1,167)	(430)
Cash from the sale of business, net of cash sold		215	164	0
Cash settlements related to derivative instruments		(5,937)	1,166	(954)
Repayments of loans to affiliates		0	0	0
Investment in capitalized software, leasehold improvements and EDP equipment		(120)	(107)	(93)
Other, net		(205)	(160)	(220)
Net cash provided by (used in) investing activities		(12,689)	(7,823)	(8,496)
Cash flows from financing activities:
Deposits		17,521	11,446	12,843
Withdrawals		(7,069)	(4,332)	(4,619)
Transfers (to) from Separate Accounts		1,985	2,452	1,769
Change in short-term financings		92	0	(546)
Change in collateralized pledged assets		34	(139)	(71)
Change in collateralized pledged liabilities		1,413	848	1,361
(Decrease) increase in overdrafts payable		16	(13)	(60)
Repayment of long-term debt		(280)	0	(300)
Proceeds from notes issued by consolidated VIEs		873	313	0
Dividends paid on common stock		(296)	(297)	(285)
Dividends paid on preferred stock		(79)	(53)	0
Issuance of preferred stock		293	494	775
Purchases of AB Holding Units to fund long-term incentive compensation plan awards		(262)	(149)	(172)
Purchase of treasury shares		(1,637)	(430)	(1,350)
Purchases (redemptions) of noncontrolling interests of consolidated company-sponsored investment funds		346	(210)	169
Distribution to noncontrolling interest of consolidated subsidiaries		(392)	(304)	(256)
Increase (decrease) in securities sold under agreement to repurchase		0	0	(573)
Other, net		(47)	48	20
Net cash provided by (used in) financing activities		12,511	9,674	8,705
Effect of exchange rate changes on cash and cash equivalents		(18)	23	8
Change in cash and cash equivalents		(952)	1,813	1
Cash and cash equivalents, beginning of year		6,179	4,405	4,469
Change in cash of businesses held-for-sale		(39)	(39)	(65)
Cash and cash equivalents, end of year		5,188	6,179	4,405
Supplemental cash flow information:
Interest paid		215	215	273
Income taxes (refunded) paid		305	(173)	(506)
Non-cash transactions from investing and financing activities:
Transfer of assets to reinsurer		$ (9,023)	$ 0	$ 0

[1] Amount includes cash paid for Venerable Transaction of $494 million (see Note 1 of the Notes to these Consolidated Financial Statements).

XML

Consolidated Statements of Cash Flows (Parenthetical) $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($)
Statement of Cash Flows [Abstract]
Cash paid for Venerable reinsurance transaction	$ 494

XML

ORGANIZATION

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION

ORGANIZATION

Equitable Holdings, Inc. is the holding company for a diversified financial services organization. The Company conducts operations in four segments: Individual Retirement, Group Retirement, Investment Management and Research, and Protection Solutions. The Company’s management evaluates the performance of each of these segments independently.

•The Individual Retirement 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 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 Investment Management and Research segment provides diversified investment management, research and related solutions globally to a broad range of clients through three main client channels - Institutional, Retail and Private Wealth Management - and distributes its institutional research products and solutions through Bernstein Research Services. The Investment Management and Research segment reflects the business of AB Holding and ABLP and their subsidiaries (collectively, AB).

•The Protection Solutions segment includes the Company’s life insurance and group employee benefits businesses. The life insurance business offers a variety of VUL, IUL and term life products to help affluent and high net worth individuals, as well as small and medium-sized business owners, with their wealth protection, wealth transfer and corporate needs. Our group employee benefits business offers a suite of life, short- and long-term disability, dental and vision insurance products to small and medium-size businesses across the United States.

The Company reports certain activities and items that are not included in our segments in Corporate and Other. Corporate and Other includes certain of our financing and investment expenses. It also includes: Equitable Advisors broker-dealer business, closed block of life insurance (the “Closed Block”), run-off variable annuity reinsurance business, run-off group pension business, run-off health business, benefit plans for our employees, certain strategic investments and certain unallocated items, including capital and related investments, interest expense and corporate expense. AB’s results of operations are reflected in the Investment Management and Research segment. Accordingly, Corporate and Other does not include any items applicable to AB.

As of December 31, 2021 and December 31, 2020 the Company’s economic interest in AB was approximately 65% for both periods. The General Partner of AB is a wholly-owned subsidiary of the Company. Because the General Partner has the authority to manage and control the business of AB, AB is consolidated in the Company’s financial statements for all periods presented.

On June 1, 2021, Holdings completed the sale (the “Venerable Transaction”) of CS Life, to Venerable Insurance and Annuity Company, an insurance company domiciled in Iowa (“VIAC”), pursuant to the Master Transaction Agreement, dated October 27, 2020 (the “Master Transaction Agreement”), among the Company, VIAC and, solely with respect to Article XIV thereof, Venerable Holdings, Inc., a Delaware corporation (“Venerable”).

Pursuant to the Master Transaction Agreement, immediately prior to the closing of the Venerable Transaction, CS Life effected the recapture of all of the business that was ceded to CS Life Re Company, a wholly owned subsidiary of CS Life (“Reinsurance Subsidiary”), and sold 100% of the equity of the Reinsurance Subsidiary to another wholly owned subsidiary of the Company.

VIAC paid the Company a cash purchase price of $215 million for CS Life at closing. The post-closing true-up adjustment was immaterial. VIAC also issued a surplus note in aggregate principal amount of $60 million, to Equitable Financial Life Insurance Company, a New York-domiciled life insurance company and a wholly owned subsidiary of Holdings, for cash consideration.

Immediately following the closing of the Venerable Transaction, CS Life and Equitable Financial entered into a coinsurance and modified coinsurance agreement (the “Reinsurance Agreement”), pursuant to which Equitable Financial ceded to CS Life, on a combined coinsurance and modified coinsurance basis, legacy variable annuity policies sold by Equitable Financial between 2006-2008 (the “Block”), comprised of non-New York “Accumulator” policies containing fixed rate Guaranteed Minimum Income Benefit and/or Guaranteed Minimum Death Benefit

guarantees. At the closing of the Transaction, CS Life deposited assets supporting the general account liabilities relating to the Block into a trust account for the benefit of Equitable Financial, which assets will secure its obligations to Equitable Financial under the Reinsurance Agreement. At the closing of the Transaction, AllianceBernstein L.P., a subsidiary of the Company (“AB”), entered into an investment advisory agreement with CS Life pursuant to which AB will serve as the preferred investment manager of the general account assets transferred to the trust account. The Company transferred assets of $9.5 billion, including primarily available for sale securities and cash, to a collateral trust account as the consideration for the reinsurance transaction. In addition, the Company recorded $9.6 billion of direct insurance liabilities ceded under the reinsurance contract, of which $5.3 billion is accounted at fair value, as the reinsurance of GMxB with no lapse guarantee riders are embedded derivatives. Additionally, $16.9 billion of Separate Account liabilities were ceded under a modified coinsurance portion of the agreement.

In addition, upon the completion of the Venerable Transaction, EIMG acquired an approximate 9.09% equity interest in Venerable’s parent holding company, VA Capital Company LLC. In connection with such investment, EIMG designated a member to the Board of Managers of VA Capital Company LLC.

XML

SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Principles of Consolidation

The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions (including normal, recurring accruals) that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates.

The accompanying consolidated financial statements present the consolidated results of operations, financial condition, and cash flows of the Company and its subsidiaries and those investment companies, partnerships and joint ventures in which the Company has control and a majority economic interest as well as those VIEs that meet the requirements for consolidation.

Financial results in the historical consolidated financial statements may not be indicative of the results of operations, comprehensive income (loss), financial position, equity or cash flows that would have been achieved had we operated as a separate, standalone entity during the reporting periods presented. We believe that the consolidated financial statements include all adjustments necessary for a fair presentation of the results of operations of the Company.

All significant intercompany transactions and balances have been eliminated in consolidation. The years “2021”, “2020” and “2019” refer to the years ended December 31, 2021, 2020 and 2019, respectively.

Adoption of New Accounting Pronouncements

Description	Effect on the Financial Statement or Other Significant Matters
ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes
This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, as well as clarifying and amending existing guidance.	On January 1, 2021, the Company adopted the new accounting standards update. The new guidance was applied either on a retrospective, modified retrospective or prospective basis based on the items to which the amendments relate. The adoption did not have a material impact on the Company’s consolidated financial position, results of operations and cash flows as of the adoption date.

Future Adoption of New Accounting Pronouncements

Description	Effective Date and Method of Adoption	Effect on the Financial Statement or Other Significant Matters
ASU 2018-12: Financial Services - Insurance (Topic 944); ASU 2020-11: Financial Services - Insurance (Topic 944): Effective Date and Early Application

Description	Effective Date and Method of Adoption	Effect on the Financial Statement or Other Significant Matters
This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: 1. Measurement of the liability for future policy benefits for traditional and limited payment contracts. The ASU requires companies to review, and if necessary, update cash flow assumptions at least annually for non-participating traditional and limited-payment insurance contracts. The ASU also prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts. 2. Measurement of MRBs. MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. 3. Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts.  4. Expanded footnote disclosures. The ASU requires additional disclosures including information about significant inputs, judgements, assumptions and methods used in measurement	In November 2020, the FASB issued ASU 2020-11 which deferred the effective date of the amendments in ASU 2018-12 for all insurance entities. ASU 2018-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is allowed. For the liability for future policyholder benefits for traditional and limited payment contracts, companies can elect one of two adoption methods. Companies can either elect a modified retrospective transition method applied to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or a full retrospective transition method using actual historical experience information as of contract inception. The same adoption method must be used for deferred policy acquisition costs. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented.	The Company continues to progress with implementation efforts and the evaluation of the impact that adoption of this guidance will have on the Company’s consolidated financial statements. Due to its extensive nature, the adoption of the ASU is expected to have a significant impact on the Company’s consolidated financial statements, as well as systems, processes and controls. Effective January 1, 2023, the new guidance will be adopted using the modified retrospective approach, except for MRBs which will use the full retrospective approach. The Company has created a governance framework and implementation plan to ensure timely adoption of the guidance. In preparation for implementation, the Company continues to refine key accounting policy decisions, modernize processes and update internal controls. These changes include modifications of actuarial valuation systems, data sourcing, analytical procedures and reporting processes. The impact on total equity of applying this ASU is estimated to be less than the current amount of reported AOCI as of December 31, 2021. The majority of the total equity impact as of December 31, 2021 is expected to be reflected in AOCI due to decreases in the Company’s estimate of its non-performance risk on variable annuity guarantees accounted for as MRBs for the first time under the guidance. The estimated impact to the retained earnings element of total equity as of December 31, 2021, due to accounting for variable annuity guarantees as MRBs that are not currently measured at fair value, is mitigated by the Company’s present use of a near industry low interest rate assumption of 2.25% on GMIB business. Because movements in equity markets, interest rates and credit spreads are unpredictable and at times volatile, it is possible that the estimated effects of adoption could change materially between December 31, 2021 and January 1, 2023.

Description	Effective Date and Method of Adoption	Effect on the Financial Statement or Other Significant Matters
ASU2020-04: Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting
The amendments in this ASU provide optional expedients and exceptions to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met.  The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform.	This ASU is effective as of March 12, 2020 through December 31, 2022. On December 15, 2021, the FASB tentatively approved deferring the sunset date of the guidance in Topic 848 to December 31, 2024.	The Company is currently assessing the applicability of the optional expedients and exceptions provided under the ASU. Management is evaluating the impact that the adoption of this guidance will have on the Company’s consolidated financial statements.

Investments

The carrying values of fixed maturities classified as AFS are reported at fair value. Changes in fair value are reported in OCI, net of allowance for credit losses, policy related amounts and deferred income taxes. Changes in credit losses are recognized in Investment gains (losses), net. The redeemable preferred stock investments that are reported in fixed maturities include REIT, perpetual preferred stock and redeemable preferred stock. These securities may not have a stated maturity, may not be cumulative and do not provide for mandatory redemption by the issuer. Effective January 1, 2021, the Company began classifying certain preferred stock as equity securities to better reflect the economics and nature of these securities. These preferred stock securities are reported in other equity investments.

The Company determines the fair values of fixed maturities and equity securities based upon quoted prices in active markets, when available, or through the use of alternative approaches when market quotes are not readily accessible or available. These alternative approaches include matrix or model pricing and use of independent pricing services, each supported by reference to principal market trades or other observable market assumptions for similar securities. More specifically, the matrix pricing approach to fair value is a discounted cash flow methodology that incorporates market interest rates commensurate with the credit quality and duration of the investment. The Company’s management, with the assistance of its investment advisors, evaluates AFS debt securities that experienced a decline in fair value below amortized cost for credit losses which are evaluated in accordance with the new financial instruments credit losses guidance. Integral to this review is an assessment made each quarter, on a security-by-security basis, by the IUS Committee, of various indicators of credit deterioration to determine whether the investment security has experienced a credit loss. This assessment includes, but is not limited to, consideration of the severity of the unrealized loss, failure, if any, of the issuer of the security to make scheduled payments, actions taken by rating agencies, adverse conditions specifically related to the security or sector, and the financial strength, liquidity and continued viability of the issuer.

The Company recognizes an allowance for credit losses on AFS debt securities with a corresponding adjustment to earnings rather than a direct write down that reduces the cost basis of the investment, and credit losses are limited to the amount by which the security’s amortized cost basis exceeds its fair value. Any improvements in estimated credit losses on AFS debt securities are recognized immediately in earnings. Management does not use the length of time a security has been in an unrealized loss position as a factor, either by itself or in combination with other factors, to conclude that a credit loss does not exist.

When the Company determines that there is more than 50% likelihood that it is not going to recover the principal and interest cash flows related to an AFS debt security, the security is placed on nonaccrual status and the Company reverses accrued interest receivable against interest income. Since the nonaccrual policy results in a timely reversal of accrued interest receivable, the Company does not record an allowance for credit losses on accrued interest receivable.

If there is no intent to sell or likely requirement to dispose of the fixed maturity security before its recovery, only the credit loss component of any resulting allowance is recognized in income (loss) and the remainder of the fair value loss is recognized in OCI. The amount of credit loss is the shortfall of the present value of the cash flows expected to be collected as compared to the amortized cost basis of the security. The present value is calculated by discounting management’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security at the date of acquisition. Projections of future cash flows are based on assumptions regarding probability of default and estimates regarding the amount and timing of recoveries. These assumptions and estimates require use of management

judgment and consider internal credit analyses as well as market observable data relevant to the collectability of the security. For mortgage and asset-backed securities, projected future cash flows also include assumptions regarding prepayments and underlying collateral value.

Write-offs of AFS debt securities are recorded when all or a portion of a financial asset is deemed uncollectible. Full or partial write-offs are recorded as reductions to the amortized cost basis of the AFS debt security and deducted from the allowance in the period in which the financial assets are deemed uncollectible. The Company elected to reverse accrued interest deemed uncollectible as a reversal of interest income. In instances where the Company collects cash that it has previously written off, the recovery will be recognized through earnings or as a reduction of the amortized cost basis for interest and principal, respectively.

Policy loans represent funds loaned to policyholders up to the cash surrender value of the associated insurance policies and are carried at the unpaid principal balances due to the Company from the policyholders. Interest income on policy loans is recognized in net investment income at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies.

Partnerships, investment companies and joint venture interests that the Company has control of and has an economic interest in or those that meet the requirements for consolidation under accounting guidance for consolidation of VIEs are consolidated. Those that the Company does not have control of and does not have a majority economic interest in and those that do not meet the VIE requirements for consolidation are reported on the equity method of accounting and are reported in other equity investments. The Company records its interests in certain of these partnerships on a month or one quarter lag.

Trading securities, which include equity securities and fixed maturities, are carried at fair value based on quoted market prices, with realized and unrealized gains (losses) reported in net investment income (loss) in the consolidated statements of income (loss).

The carrying values of certain fixed maturities are reported at fair value where the fair value option has been elected. The fair value option allows the Company to elect fair value as an alternative measurement for selected financial assets and financial liabilities not otherwise reported at fair value. Such elections have been made to help mitigate volatility in earnings that result from different measurement attributes. Electing the fair value option also allows the consistent accounting in net investment income (loss) for certain assets and liabilities. Changes in fair value of fixed maturities that have elected the fair value option are reflected in realized and unrealized gains (losses) reported in net investment income (loss) in the consolidated statements of income (loss).

Notes issued by consolidated variable interest entities represent notes issued by certain asset-backed investment vehicles, primarily CLOs, which we are required to consolidate. The creditors of these VIEs do not have recourse to the Company in excess of the assets contained within the VIEs. The Company has elected the fair value option for the majority of these notes and has based the fair value on the corresponding debt security collateral. Changes in fair value are reported in net investment income (loss).

COLI has been purchased by the Company and certain subsidiaries on the lives of certain key employees and the Company and these subsidiaries are named as beneficiaries under these policies. COLI is carried at the cash surrender value of the policies. As of December 31, 2021 and 2020, the carrying value of COLI was $1.0 billion and $992 million, respectively, and is reported in other invested assets in the consolidated balance sheets.

Cash and cash equivalents includes cash on hand, demand deposits, money market accounts, overnight commercial paper and highly liquid debt instruments purchased with an original maturity of three months or less. Due to the short-term nature of these investments, the recorded value is deemed to approximate fair value. Cash and securities segregated primarily includes U.S. Treasury Bills segregated by AB in a special reserve bank custody account for the exclusive benefit of its brokerage customers under Rule 15c3-3 of the Exchange Act.

Derivatives

Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, values of securities or commodities, credit spreads, market volatility, expected returns and liquidity. Values can also be affected by changes in estimates and assumptions, including those related to counterparty behavior and non-performance risk used in valuation models. Derivative financial instruments generally used by the Company include equity, currency, and interest rate futures, total return and/or other equity swaps, interest rate swaps and floors, swaptions, variance swaps and equity options, all of which may be exchange-traded or contracted in the OTC market. All derivative positions are carried in the consolidated balance sheets at fair value, generally by obtaining quoted market prices or through the use of valuation models.

Freestanding derivative contracts are reported in the consolidated balance sheets either as assets within “other invested assets” or as liabilities within “other liabilities.” The Company nets the fair value of all derivative financial instruments with counterparties for which an ISDA Master Agreement and related CSA have been executed. All changes in the fair value of the Company’s freestanding derivative positions not designated to hedge accounting relationships, including net receipts and payments, are included in “net derivative gains (losses)” without considering changes in the fair value of the economically associated assets or liabilities.

The Company has designated certain derivatives it uses to economically manage asset/liability risk in relationships which qualify for hedge accounting. To qualify for hedge accounting, we formally document our designation at inception of the hedge relationship as a cash flow, fair value or net investment hedge. This documentation includes our risk management objective and strategy for undertaking the hedging transaction. The Company identifies how the hedging instrument is expected to offset the designated risks related to the hedged item and the method that will be used to retrospectively and prospectively assess the hedge effectiveness. To qualify for hedge accounting, a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed and documented at inception and periodically throughout the life of the hedge accounting relationship.

The Company does not exclude any components of the hedging instrument from the effectiveness assessments and therefore does not separately measure or account for any excluded components of the hedging instrument.

While in cash flow hedge relationships, any periodic net receipts and payments from the hedging instrument are included in the income or expense line that the hedged item’s periodic income or expense is recognized. Other changes in the fair value of the hedging instrument while in a cash flow hedging relationship are reported within OCI. These amounts are deferred in AOCI until they are reclassified to Net income (loss). The reclassified amount offsets the effect of the cash flows on Net income (loss) in the same period when the hedged item affects earnings and on the same line as the hedged item.

We discontinue cash flow hedge accounting prospectively when the Company determines: (1) the hedging instrument is no longer highly effective in offsetting changes in the cash flow from the hedged risk, (2) the hedged item is no longer probable of occurring within two months of their forecast, or (3) the hedging instrument is otherwise redesignated from the hedging relationship. Changes in the fair value of the derivative after discontinuation of cash flow hedge accounting are accounted for as freestanding derivative positions not designated to hedge accounting relationships unless and until the derivative is redesignated to a hedge accounting relationship. When cash flow hedge accounting is discontinued the amounts deferred in AOCI during the hedge relationship continue to be deferred in AOCI, as long as the hedged items continue to be probable of occurring within two months of their forecast, until the hedged item affects Net income (loss). Any amount deferred in AOCI for hedged items which are no longer probable of occurring within two months of their forecast will be reclassified to “net derivative gains (losses)” at that time.

The Company is a party to financial instruments and other contracts that contain “embedded” derivative instruments. At inception, the Company assesses whether the economic characteristics of the embedded instrument are “clearly and closely related” to the economic characteristics of the remaining component of the “host contract” and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. Once those criteria are met the resulting embedded derivative is bifurcated from the host contract, carried in the consolidated balance sheets at fair value, and changes in its fair value are recognized immediately and captioned in the consolidated statements of income (loss) according to the nature of the related host contract. For certain financial instruments that contain an embedded derivative that otherwise would need to be bifurcated and reported at fair value, the Company instead may elect to carry the entire instrument at fair value.

Mortgage Loans on Real Estate

Mortgage loans are stated at unpaid principal balances, net of unamortized discounts and the allowance for credit losses. The Company calculates the allowance for credit losses in accordance with the CECL model in order to provide for the risk of credit losses in the lending process.

Expected credit losses for loans with similar risk characteristics are estimated on a collective (i.e., pool) basis in order to meet CECL’s risk of loss concept which requires the Company to consider possibilities of loss, even if remote.

For collectively evaluated mortgages, the Company estimates the allowance for credit losses based on the amortized cost basis of its mortgages over their expected life using a PD / LGD model. The PD/LGD model incorporates the Company’s reasonable and supportable forecast of macroeconomic information over a specified period. The length of the reasonable and supportable forecast period is reassessed on a quarterly basis and may be adjusted as appropriate over time to be consistent with macroeconomic conditions and the environment as of the reporting date. For periods beyond the reasonable and supportable forecast period, the model reverts to historical loss information. The PD and LGD are estimated at the loan-level based on loans’ current and forecasted risk characteristics as well as macroeconomic forecasts. The PD is estimated using both macroeconomic conditions as well as individual loan risk characteristics including LTV ratios, DSC ratios, seasoning, collateral type, geography, and underlying credit. The LGD is driven primarily by the type and value of collateral, and secondarily by expected liquidation costs and time to recovery.

For individually evaluated mortgages, the Company continues to recognize a valuation allowance on the present value of expected future cash flows discounted at the loan’s original effective interest rate or on its collateral value.

The CECL model is configured to the Company’s specifications and takes into consideration the detailed risk attributes of each discrete loan in the mortgage portfolio which include, but are not limited to the following:

•LTV ratio – Derived from current loan balance divided by the fair market value of the property. An LTV ratio in excess of 100% indicates an underwater mortgage.

•DSC ratio – Derived from actual operating earnings divided by annual debt service. If the ratio is below 1.0x, then the income from the property does not support the debt.

•Occupancy – Criteria varies by property type but low or below market occupancy is an indicator of sub-par property performance.

•Lease expirations – The percentage of leases expiring in the upcoming 12 to 36 months are monitored as a decline in rent and/or occupancy may negatively impact the debt service coverage ratio. In the case of single-tenant properties or properties with large tenant exposure, the lease expiration is a material risk factor.

•Other – Any other factors such as maturity, borrower/tenant related issues, payment status, property condition, or current economic conditions may call into question the performance of the loan.

Mortgage loans that do not share similar risk characteristics with other loans in the portfolio are individually evaluated quarterly by the Company’s IUS Committee. The allowance for credit losses on these individually evaluated mortgages is a loan-specific reserve as a result of the loan review process that is recorded based on the present value of expected future cash flows discounted at the loan’s effective interest rate or based on the fair value of the collateral. The individually assessed allowance for mortgage loans can increase or decrease from period to period based on such factors.

Individually assessed loans may include, but are not limited to, mortgages that have deteriorated in credit quality such as a TDR and reasonably expected TDRs, mortgages for which foreclosure is probable, and mortgages which have been classified as “potential problem” or “problem” loans within the Company’s IUS Committee processes as described below.

Within the IUS process, commercial mortgages 60 days or more past due and agricultural mortgages 90 days or more past due, as well as all mortgages in the process of foreclosure, are identified as problem mortgage loans. Based on its monthly monitoring of mortgages, a class of potential problem mortgage loans are also identified, consisting of mortgage loans not currently classified as problem mortgage loans but for which management has doubts as to the ability of the borrower to comply with the present loan payment terms and which may result in the loan becoming a problem or being modified. The decision whether to classify a performing mortgage loan as a potential problem

involves judgments by management as to likely future industry conditions and developments with respect to the borrower or the individual mortgaged property.

Individually assessed mortgage loans without provision for losses are mortgage loans where the fair value of the collateral or the net present value of the expected future cash flows related to the loan equals or exceeds the recorded investment. Interest income earned on mortgage loans where the collateral value is used to measure impairment is recorded on a cash basis. Interest income on mortgage loans where the present value method is used to measure impairment is accrued on the net carrying value amount of the loan at the interest rate used to discount the cash flows.

Mortgage loans are placed on nonaccrual status once management believes the collection of accrued interest is not probable. Once mortgage loans are classified as nonaccrual mortgage loans, interest income is recognized under the cash basis of accounting and the resumption of the interest accrual would commence only after all past due interest has been collected or the mortgage loan has been restructured to where the collection of interest is considered likely. The Company charges off loan balances and accrued interest that are deemed uncollectible.

The components of amortized cost for mortgage loans on the consolidated balance sheets excludes accrued interest amounts because the Company presents accrued interest receivables within other assets. Once mortgage loans are placed on nonaccrual status, the Company reverses accrued interest receivable against interest income. Since the nonaccrual policy results in the timely reversal of accrued interest receivable, the Company does not record an allowance for credit losses on accrued interest receivable.

Troubled Debt Restructuring

The Company invests in commercial and agricultural mortgage loans included in the balance sheet as mortgage loans on real estate and privately negotiated fixed maturities included in the balance sheet as fixed maturities AFS. Under certain circumstances, modifications are granted to these contracts. Each modification is evaluated as to whether a TDR has occurred. A modification is a TDR when the borrower is in financial difficulty and the creditor makes concessions. Generally, the types of concessions may include reducing the face amount or maturity amount of the debt as originally stated, reducing the contractual interest rate, extending the maturity date at an interest rate lower than current market interest rates and/or reducing accrued interest. The Company considers the amount, timing and extent of the concession granted in determining any impairment or changes in the specific credit allowance recorded in connection with the TDR. A credit allowance may have been recorded prior to the period when the loan is modified in a TDR. Accordingly, the carrying value (net of the allowance) before and after modification through a TDR may not change significantly, or may increase if the expected recovery is higher than the pre-modification recovery assessment.

Net Investment Income (Loss), Investment Gains (Losses) Net and Unrealized Investment Gains (Losses)

Realized investment gains (losses) are determined by identification with the specific asset and are presented as a component of revenue. Changes in the allowance for credit losses are included in investment gains (losses), net.

Realized and unrealized holding gains (losses) on trading and equity securities are reflected in net investment income (loss).

Unrealized investment gains (losses) on fixed maturities designated as AFS held by the Company are accounted for as a separate component of AOCI, net of related deferred income taxes, as are amounts attributable to certain pension operations, Closed Block’s policyholders’ dividend obligation, insurance liability loss recognition, DAC related to UL policies, investment-type products and participating traditional life policies.

Changes in unrealized gains (losses) reflect changes in fair value of only those fixed maturities classified as AFS and do not reflect any change in fair value of policyholders’ account balances and future policy benefits.

Fair Value of Financial Instruments

See Note 8 of the Notes to these Consolidated Financial Statements for additional information regarding determining the fair value of financial instruments.

Recognition of Insurance Income and Related Expenses

Deposits related to UL and investment-type contracts are reported as deposits to policyholders’ account balances. Revenues from these contracts consist of fees assessed during the period against policyholders’ account balances for mortality charges, policy administration charges and surrender charges. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policyholders’ account balances.

Premiums from participating and non-participating traditional life and annuity policies with life contingencies generally are recognized in income when due. Benefits and expenses are matched with such income so as to result in the recognition of profits over the life of the contracts. This match is accomplished by means of the provision for liabilities for future policy benefits and the deferral and subsequent amortization of DAC.

For contracts with a single premium or a limited number of premium payments due over a significantly shorter period than the total period over which benefits are provided, premiums are recorded as revenue when due with any excess profit deferred and recognized in income in a constant relationship to insurance in-force or, for annuities, the amount of expected future benefit payments.

Premiums from individual health contracts are recognized as income over the period to which the premiums relate in proportion to the amount of insurance protection provided.

DAC

Acquisition costs that vary with and are primarily related to the acquisition of new and renewal insurance business, reflecting incremental direct costs of contract acquisition with independent third parties or employees that are essential to the contract transaction, as well as the portion of employee compensation, including payroll fringe benefits and other costs directly related to underwriting, policy issuance and processing, medical inspection, and contract selling for successfully negotiated contracts including commissions, underwriting, agency and policy issue expenses, are deferred. In each reporting period, DAC amortization, net of the accrual of imputed interest on DAC balances, is recorded to amortization of deferred policy acquisition costs. DAC is subject to recoverability testing at the time of policy issue and loss recognition testing at the end of each accounting period. The determination of DAC, including amortization and recoverability estimates, is based on models that involve numerous assumptions and subjective judgments, including those regarding policyholder behavior, surrender and withdrawal rates, mortality experience, and other inputs including financial market volatility and market rates of return.

After the initial establishment of reserves, premium deficiency and loss recognition tests are performed each period end using best estimate assumptions as of the testing date without provisions for adverse deviation. When the liabilities for future policy benefits plus the present value of expected future gross premiums for the aggregate product group are insufficient to provide for expected future policy benefits and expenses for that line of business (i.e., reserves net of any DAC asset), DAC would first be written off and thereafter, if required, a premium deficiency reserve would be established by a charge to earnings.

Amortization Policy

In accordance with the guidance for the accounting and reporting by insurance enterprises for certain long-duration contracts and participating contracts and for realized gains and losses from the sale of investments, current and expected future profit margins for products covered by this guidance are examined regularly in determining the amortization of DAC.

DAC associated with certain variable annuity products is amortized based on estimated assessments, with DAC on the remainder of variable annuities, UL and investment-type products amortized over the expected total life of the contract group as a constant percentage of estimated gross profits arising principally from investment results, Separate Accounts fees, mortality and expense margins and surrender charges based on historical and anticipated future experience, embedded derivatives and changes in the reserve of products that have indexed features such as SCS IUL and MSO, updated at the end of each accounting period. When estimated gross profits are expected to be negative for multiple years of a contract life, DAC is amortized using the present value of estimated assessments. The effect on the amortization of DAC of revisions to estimated gross profits or assessments is reflected in earnings (loss) in the period such estimated gross profits or assessments are revised. A decrease in expected gross profits or assessments would accelerate DAC amortization. Conversely, an increase in expected gross profits or assessments would slow DAC amortization. The effect on the DAC assets that would result from realization of unrealized gains (losses) is recognized with an offset to AOCI in consolidated equity as of the balance sheet date.

A significant assumption in the amortization of DAC on variable annuities and, to a lesser extent, on variable and interest-sensitive life insurance relates to projected future separate account performance. Management sets estimated future gross profit or assessment assumptions related to separate account performance using a long-term view of expected average market returns by applying a RTM approach, a commonly used industry practice. This future return approach influences the projection of fees earned, as well as other sources of estimated gross profits. Returns that are higher than expectations for a given period produce higher than expected account balances, increase the fees earned

resulting in higher expected future gross profits and lower DAC amortization for the period. The opposite occurs when returns are lower than expected.

In applying this approach to develop estimates of future returns, it is assumed that the market will return to an average gross long-term return estimate, developed with reference to historical long-term equity market performance. Management has set limitations as to maximum and minimum future rate of return assumptions, as well as a limitation on the duration of use of these maximum or minimum rates of return. As of December 31, 2021, the average gross short-term and long-term annual return estimate on variable and interest-sensitive life insurance and variable annuities was 7.0% (4.7% net of product weighted average Separate Accounts fees), and the gross maximum and minimum short-term annual rate of return limitations were 15.0% (12.7% net of product weighted average Separate Accounts fees and Investment Advisory fees) and 0.0% ((2.3%) net of product weighted average Separate Accounts fees and Investment Advisory fees), respectively. The maximum duration over which these rate limitations may be applied is five years. This approach will continue to be applied in future periods. These assumptions of long-term growth are subject to assessment of the reasonableness of resulting estimates of future return assumptions.

In addition, projections of future mortality assumptions related to variable and interest-sensitive life products are based on a long-term average of actual experience. This assumption is updated periodically to reflect recent experience as it emerges. Improvement of life mortality in future periods from that currently projected would result in future deceleration of DAC amortization. Conversely, deterioration of life mortality in future periods from that currently projected would result in future acceleration of DAC amortization.

Other significant assumptions underlying gross profit estimates for UL and investment type products relate to contract persistency and General Account investment spread.

For participating traditional life policies (substantially all of which are in the Closed Block), DAC is amortized over the expected total life of the contract group as a constant percentage based on the present value of the estimated gross margin amounts expected to be realized over the life of the contracts using the expected investment yield. As of December 31, 2021, the average rate of assumed investment yields, excluding policy loans, for the Company was 4.5% grading to 4.3% in 2026. Estimated gross margins include anticipated premiums and investment results less claims and administrative expenses, changes in the net level premium reserve and expected annual policyholder dividends. The effect on the accumulated amortization of DAC of revisions to estimated gross margins is reflected in earnings in the period such estimated gross margins are revised. The effect on the DAC assets that would result from realization of unrealized gains (losses) is recognized with an offset to AOCI in consolidated equity as of the balance sheet date. Many of the factors that affect gross margins are included in the determination of the Company’s dividends to these policyholders. DAC adjustments related to participating traditional life policies do not create significant volatility in results of operations as the Closed Block recognizes a cumulative policyholder dividend obligation expense in policyholders’ benefits for the excess of actual cumulative earnings over expected cumulative earnings as determined at the time of demutualization.

DAC associated with non-participating traditional life policies are amortized in proportion to anticipated premiums. Assumptions as to anticipated premiums are estimated at the date of policy issue and are consistently applied during the life of the contracts. Deviations from estimated experience are reflected in income (loss) in the period such deviations occur. For these contracts, the amortization periods generally are for the total life of the policy. DAC related to these policies are subject to recoverability testing as part of the Company’s premium deficiency testing. If a premium deficiency exists, DAC are reduced by the amount of the deficiency or to zero through a charge to current period earnings (loss). If the deficiency exceeds the DAC balance, the reserve for future policy benefits is increased by the excess, reflected in earnings (loss) in the period such deficiency occurs.

For some products, policyholders can elect to modify product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. These transactions are known as internal replacements. If such modification substantially changes the contract, the associated DAC is written off immediately through income and any new deferrable costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed.

Reinsurance

For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Cessions under

reinsurance agreements do not discharge the Company’s obligations as the primary insurer. The Company reviews all contractual features, including those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims.

For reinsurance of existing in-force blocks of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid (received), and the liabilities ceded (assumed) related to the underlying contracts is considered the net cost of reinsurance at the inception of the reinsurance agreement. The net cost of reinsurance is recorded as an adjustment to DAC and recognized as a component of other expenses on a basis consistent with the way the acquisition costs on the underlying reinsured contracts would be recognized. Subsequent amounts paid (received) on the reinsurance of in-force blocks, as well as amounts paid (received) related to new business, are recorded as premiums ceded (assumed); and amounts due from reinsurers (amounts due to reinsurers) are established.

Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance.

Premiums, policy charges and fee income, and policyholders’ benefits include amounts assumed under reinsurance agreements and are net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in other revenues. With respect to GMIBs, a portion of the directly written GMIBs are accounted for as insurance liabilities, but the associated reinsurance agreements contain embedded derivatives as they are net settled. These embedded derivatives are included in GMIB reinsurance contract asset, at fair value with changes in estimated fair value reported in net derivative gains (losses). Separate Account liabilities that have been ceded on a Modified coinsurance (Modco) basis, receivable and payable have been recognized on a net basis as right of offset exists.

If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within other assets. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as other income or other operating costs and expenses, as appropriate. Periodically, the Company evaluates the adequacy of the expected payments or recoveries and adjusts the deposit asset or liability through other revenues or other expenses, as appropriate.

For reinsurance contracts other than those accounted for as derivatives, reinsurance recoverable balances are calculated using methodologies and assumptions that are consistent with those used to calculate the direct liabilities.

Policyholder Bonus Interest Credits

Policyholder bonus interest credits are offered on certain deferred annuity products in the form of either immediate bonus interest credited or enhanced interest crediting rates for a period of time. The interest crediting expense associated with these policyholder bonus interest credits is deferred and amortized over the lives of the underlying contracts in a manner consistent with the amortization of DAC. Unamortized balances are included in other assets in the consolidated balance sheets and amortization is included in interest credited to policyholders’ account balances in the consolidated statements of income (loss).

Policyholders’ Account Balances and Future Policy Benefits and Other Policyholders’ Liabilities

Policyholders’ account balances relate to contracts or contract features where the Company has no significant insurance risk. This liability represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date.

For participating traditional life insurance policies, future policy benefit liabilities are calculated using a net level premium method on the basis of actuarial insurance assumptions equal to guaranteed mortality and dividend fund interest rates. The liability for annual dividends represents the accrual of annual dividends earned. Terminal dividends are accrued in proportion to gross margins over the life of the contract.

For non-participating traditional life insurance policies, future policy benefit liabilities are estimated using a net level premium method on the basis of actuarial assumptions as to mortality, persistency and interest established at policy issue. Assumptions established at policy issue as to mortality and persistency are based on the Company’s experience

that, together with interest and expense assumptions, includes a margin for adverse deviation. Benefit liabilities for traditional annuities during the accumulation period are equal to accumulated policyholders’ fund balances and, after annuitization, are equal to the present value of expected future payments. Interest rates used in establishing such liabilities range from 3.5% to 7.3% (weighted average of 5.0%) for approximately 99.4% of life insurance liabilities and from 1.5% to 5.4% (weighted average of 3.5%) for annuity liabilities.

Individual health benefit liabilities for active lives are estimated using the net level premium method and assumptions as to future morbidity, withdrawals and interest. Benefit liabilities for disabled lives are estimated using the present value of benefits method and experience assumptions as to claim terminations, expenses and interest. While management believes its DI reserves have been calculated on a reasonable basis and are adequate, there can be no assurance reserves will be sufficient to provide for future liabilities.

Obligations arising from funding agreements are also reported in policyholders’ account balances in the consolidated balance sheets. As a member of the FHLB, the Company has access to collateralized borrowings. The Company may also issue funding agreements to the FHLB. Both the collateralized borrowings and funding agreements would require the Company to pledge qualified mortgage-backed assets and/or government securities as collateral.

The Company has issued and continues to offer certain variable annuity products with GMDB and/or contain a GMLB (collectively, the “GMxB features”) which, if elected by the policyholder after a stipulated waiting period from contract issuance, guarantees a minimum lifetime annuity based on predetermined annuity purchase rates that may be in excess of what the contract account value can purchase at then-current annuity purchase rates. This minimum lifetime annuity is based on predetermined annuity purchase rates applied to a GMIB base. The Company previously issued certain variable annuity products with GIB, GWBL, GMWB, and GMAB features. The Company has also assumed reinsurance for products with GMxB features.

Reserves for products that have GMIB features, but do not have no-lapse guarantee features, and products with GMDB features are determined by estimating the expected value of death or income benefits in excess of the projected contract accumulation value and recognizing the excess over the estimated life based on expected assessments (i.e., benefit ratio). The liability equals the current benefit ratio multiplied by cumulative assessments recognized to date, plus interest, less cumulative excess payments to date. These reserves are recorded within future policy benefits and other policyholders’ liabilities. The determination of this estimated future policy benefits liability is based on models that involve numerous assumptions and subjective judgments, including those regarding expected market rates of return and volatility, contract surrender and withdrawal rates, mortality experience, and, for contracts with the GMIB feature, GMIB election rates. Assumptions regarding separate account performance used for purposes of this calculation are set using a long-term view of expected average market returns by applying a RTM approach, consistent with that used for DAC amortization. There can be no assurance that actual experience will be consistent with management’s estimates.

Products that have a GMIB feature with a no-lapse guarantee rider (“GMIBNLG”), GIB, GWBL, GMWB and GMAB features and the assumed products with GMIB features (collectively “GMxB derivative features”) are considered either freestanding or embedded derivatives and discussed below under (“Embedded and Freestanding Insurance Derivatives”).

After the initial establishment of reserves, premium deficiency and loss recognition tests are performed each period end using best estimate assumptions as of the testing date without provisions for adverse deviation. When the liabilities for future policy benefits plus the present value of expected future gross premiums for the aggregate product group are insufficient to provide for expected future policy benefits and expenses for that line of business (i.e., reserves net of any DAC asset), DAC would first be written off and thereafter, if required, a premium deficiency reserve would be established by a charge to earnings. Premium deficiency reserves are recorded for the group single premium annuity business, certain interest-sensitive life contracts, structured settlements, individual disability income and major medical. Additionally, in certain instances the policyholder liability for a particular line of business may not be deficient in the aggregate to trigger loss recognition, but the pattern of earnings may be such that profits are expected to be recognized in earlier years followed by losses in later years. This pattern of profits followed by losses is exhibited in our VISL business and is generated by the cost structure of the product or secondary guarantees in the contract. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. We accrue for these PFBL using a dynamic approach that changes over time as the projection of future losses change.

Policyholders’ Dividends

The amount of policyholders’ dividends to be paid (including dividends on policies included in the Closed Block) is determined annually by the board of directors of the issuing insurance company. The aggregate amount of policyholders’ dividends is related to actual interest, mortality, morbidity and expense experience for the year and judgment as to the appropriate level of statutory surplus to be retained by the Company.

Embedded and Freestanding Insurance Derivatives

Reserves for products or features within products that are considered either embedded or freestanding derivatives are measured at estimated fair value separately from the host variable annuity product, with changes in estimated fair value reported in net derivative gains (losses). The estimated fair values of these derivatives are determined based on the present value of projected future benefits minus the present value of projected future fees attributable to the guarantee. The projections of future benefits and future fees require capital markets and actuarial assumptions, including expectations concerning policyholder behavior. A risk-neutral valuation methodology is used under which the cash flows from the guarantees are projected under multiple capital market scenarios using observable risk-free rates.

Additionally, the Company cedes and assumes reinsurance of products with GMxB features, which are considered either an embedded or freestanding derivative, and measured at fair value. The GMxB reinsurance contract asset and liabilities’ fair values reflect the present value of reinsurance premiums, net of recoveries, and risk margins over a range of market-consistent economic scenarios.

Changes in the fair value of embedded and freestanding derivatives are reported in net derivative gains (losses). Embedded derivatives in direct and assumed reinsurance contracts are reported in future policyholders’ benefits and other policyholders’ liabilities. Amounts due from reinsurers contains the reinsurance of underlying GMIB contracts that are embedded derivatives, so the reinsurance has the same risk attributes as the underlying contracts and is an embedded derivatives carried at fair value. There are also embedded derivatives reported in the GMIB reinsurance contract asset related to ceded reinsurance contracts that are net settled, recorded at fair value in the consolidated balance sheets.

Embedded derivatives fair values are determined based on the present value of projected future benefits minus the present value of projected future fees. At policy inception, a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits is attributed to the embedded derivative. The percentage of fees included in the fair value measurement is locked-in at inception. Fees above those amounts represent “excess” fees and are reported in policy charges and fee income.

Separate Accounts

Generally, Separate Accounts established under New York State and Arizona State Insurance Law are not chargeable with liabilities that arise from any other business of the Company. Separate Accounts assets are subject to General Account claims only to the extent Separate Accounts assets exceed separate accounts liabilities. Assets and liabilities of the Separate Account represent the net deposits and accumulated net investment earnings (loss) less fees, held primarily for the benefit of policyholders, and for which the Company does not bear the investment risk. Separate Accounts assets and liabilities are shown on separate lines in the consolidated balance sheets. Assets held in Separate Accounts are reported at quoted market values or, where quoted values are not readily available or accessible for these securities, their fair value measures most often are determined through the use of model pricing that effectively discounts prospective cash flows to present value using appropriate sector-adjusted credit spreads commensurate with the security’s duration, also taking into consideration issuer-specific credit quality and liquidity. Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains (losses)) and the corresponding amounts credited to policyholders of such Separate Accounts are offset within the same line in the consolidated statements of income (loss).

Deposits to Separate Accounts are reported as increases in Separate Accounts assets and liabilities and are not reported in the consolidated statements of income (loss). Mortality, policy administration and surrender charges on all policies including those funded by Separate Accounts are included in revenues.

The Company reports the General Account’s interests in Separate Accounts as trading securities, at fair value, in the consolidated balance sheets.

Leases

The Company does not record leases with an initial term of 12 months or less in its consolidated balance sheets, but instead recognizes lease expense for these leases on a straight-line basis over the lease term. For leases with a term greater than one year, the Company records in its consolidated balance sheets at the time of lease commencement or modification a RoU operating lease asset and a lease liability, initially measured at the present value of the lease payments. Lease costs are recognized in the consolidated statements of income (loss) over the lease term on a straight-line basis. RoU operating lease assets represent the Company’s right to use an underlying asset for the lease term and RoU operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease.

Broker-Dealer Revenues, Receivables and Payables

Equitable Advisors and certain of the Company’s other subsidiaries provide investment management, brokerage and distribution services for affiliates and third parties. Third-party revenues earned from these services are reported in other income in the Company’s consolidated statement of income (loss).

Receivables from and payables to clients include amounts due on cash and margin transactions. Securities owned by customers are held as collateral for receivables; such collateral is not reflected in the consolidated financial statements.

Goodwill and Other Intangible Assets

Goodwill recorded by the Company represents the excess of purchase price over the estimated fair value of identifiable net assets of companies acquired in a business combination and relates principally to the acquisition of SCB Inc., an investment research and management company formerly known as Sanford C. Bernstein Inc. (“Bernstein Acquisition”) and the purchase of AB Units. The Company tests goodwill for recoverability each annual reporting period at December 31 and at interim periods if facts or circumstances are indicative of potential impairment.

Starting as of June 30, 2020, the Company changed its measurement of the fair value of its Investment Management and Research reporting unit from a discounted cash flow valuation technique to a market valuation approach. Under the market valuation approach, the fair value of the reporting unit is based on its adjusted market valuation assuming a control premium. The Company determined that this valuation technique provided a more exact determination of fair value for the reporting unit and was applied during its annual testing for goodwill recoverability at December 31, 2021 and 2020.

The Company’s intangible assets primarily relate to the Bernstein Acquisition and purchases of AB Units and reflect amounts assigned to acquired investment management contracts based on their estimated fair values at the time of acquisition, less accumulated amortization. These intangible assets generally are amortized on a straight-line basis over their estimated useful life, ranging from six to twenty years. All intangible assets are periodically reviewed for impairment as events or changes in circumstances indicate that the carrying value may not be recoverable. If the carrying value exceeds fair value, impairment tests are performed to measure the amount of the impairment loss, if any.

Deferred Sales Commissions, Net

Commissions paid to financial intermediaries in connection with the sale of shares of open-end AB sponsored mutual funds sold without a front-end sales charge (“back-end load shares”) are capitalized as deferred sales commissions and amortized over periods not exceeding five and one-half years for U.S. fund shares and four years for non-U.S. fund shares, the periods of time during which the deferred sales commissions are generally recovered. These commissions are recovered from distribution services fees received from those funds and from CDSC received from shareholders of those funds upon the redemption of their shares. CDSC cash recoveries are recorded as reductions of unamortized deferred sales commissions when received. Since January 31, 2009, AB sponsored U.S. mutual funds have not offered back-end load shares to new investors.

Management periodically reviews the deferred sales commission asset for impairment as events or changes in circumstances indicate that the carrying value may not be recoverable. If these factors indicate impairment in value, a comparison is made of the carrying value to the undiscounted cash flows expected to be generated by the asset over its remaining life. If it is determined the deferred sales commission asset is not fully recoverable, the asset will be deemed impaired and a loss will be recorded in the amount by which the recorded amount of the asset exceeds its estimated fair value.

As of December 31, 2021 and 2020, respectively, net deferred sales commissions from AB totaled $75 million and $64 million and are included within other assets in the consolidated balance sheets. The estimated amortization expense of deferred sales commissions, based on the December 31, 2021 net asset balance for each of the next four years is $35 million, $26 million, $13 million and $1 million. The Company tests the deferred sales commission asset for impairment quarterly by comparing undiscounted future cash flows to the recorded value, net of accumulated amortization. Each quarter, significant assumptions used to estimate the future cash flows are updated to reflect management’s consideration of current market conditions on expectations made with respect to future market levels and redemption rates. As of December 31, 2021 and 2020, the Company determined that the deferred sales commission asset was not impaired.

Capitalized Computer Software and Hosting Arrangements

Capitalized computer software and hosting arrangements include certain internal and external costs used to implement internal-use software and cloud computing hosting arrangements. These capitalized computer costs are included in other assets in the consolidated balance sheets and amortized on a straight-line basis over the estimated useful life of the software or term of the hosting arrangement that ranges between three and five years. Capitalized amounts are periodically tested for impairment in accordance with the guidance on impairment of long-lived assets. An immediate charge to earnings is recognized if capitalized computer costs no longer are deemed to be recoverable. In addition, service potential is periodically reassessed to determine whether facts and circumstances have compressed the software’s useful life or a significant change in the term of the hosting arrangement such that acceleration of amortization over a shorter period than initially determined would be required.

Capitalized computer software and hosting arrangements, net of accumulated amortization, amounted to $193 million and $191 million as of December 31, 2021 and 2020, respectively. Amortization of capitalized computer software and hosting arrangements in 2021, 2020 and 2019 was $57 million, $60 million and $52 million, respectively, recorded in other operating costs and expenses in the consolidated statements of income (loss).

Short-term and Long-term Debt

Liabilities for short-term and long-term debt are primarily carried at an amount equal to unpaid principal balance, net of unamortized discount or premium and debt issue costs. Original-issue discount or premium and debt-issue costs are recognized as a component of interest expense over the period the debt is expected to be outstanding, using the interest method of amortization. Interest expense is generally presented within interest expense in the consolidated statements of income (loss). Short-term debt represents debt coming due in the next twelve months, including that portion of debt otherwise classified as long-term. See Note 12 of the Notes to these Consolidated Financial Statements for additional information regarding short-term and long-term debt.

Income Taxes

The Company and certain of its consolidated subsidiaries and affiliates file a consolidated federal income tax return. The Company provides for federal and state income taxes currently payable, as well as those deferred due to temporary differences between the financial reporting and tax bases of assets and liabilities. Current federal income taxes are charged or credited to operations based upon amounts estimated to be payable or recoverable as a result of taxable operations for the current year. Deferred income tax assets and liabilities are recognized based on the difference between financial statement carrying amounts and income tax bases of assets and liabilities using enacted income tax rates and laws. Valuation allowances are established when management determines, based on available information, that it is more likely than not that deferred tax assets will not be realized.

Under accounting for uncertainty in income taxes guidance, the Company determines whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded in the consolidated financial statements. Tax positions are then measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement.

ABLP is a private partnership for federal income tax purposes and, accordingly, is not subject to federal and state corporate income taxes. However, ABLP is subject to a 4.0% New York City unincorporated business tax. AB Holding is subject to a 3.5% federal tax on partnership gross income from the active conduct of a trade or business. Domestic corporate subsidiaries of AB are subject to federal, state and local income taxes. Foreign corporate subsidiaries are generally subject to taxes in the foreign jurisdictions where they are located.

Recognition of Investment Management and Service Fees and Related Expenses

Investment management, advisory and service fees

Investment management and service fees principally include the Investment Management and Research segment’s investment advisory and service fees, distribution revenues and institutional research services revenue. Investment advisory and service base fees, generally calculated as a percentage, referred to as BPs, of assets under management, are recorded as revenue as the related services are performed. Certain investment advisory contracts, including those associated with hedge funds, provide for a performance-based fee, in addition to or in lieu of a base fee which is calculated as either a percentage of absolute investment results or a percentage of the investment results in excess of a stated benchmark over a specified period of time.

Investment management and administrative service fees are also earned by EIM and EIMG and reported in the Individual Retirement, Group Retirement and Protection Solutions segments as well as certain asset-based fees associated with insurance contracts.

AB provides asset management services by managing customer assets and seeking to deliver returns to investors. Similarly, EIM and EIMG provides investment management and administrative services, such as fund accounting and compliance services, to EQ Premier VIP Trust, EQAT and 1290 Funds as well as two private investment trusts established in the Cayman Islands, AXA Allocation Funds Trust and AXA Offshore Multimanager Funds Trust (collectively, the “Other AXA Trusts”). The contracts supporting these revenue streams create a distinct, separately identifiable performance obligation for each day the assets are managed for the performance of a series of services that are substantially the same and have the same pattern of transfer to the customer. Accordingly, these investment management, advisory, and administrative service base fees are recorded over time as services are performed and entitle the Company to variable consideration. Base fees, generally calculated as a percentage of AUM, are recognized as revenue at month-end when the transaction price no longer is variable and the value of the consideration is determined. These fees are not subject to claw back and there is minimal probability that a significant reversal of the revenue recorded will occur.

Certain investment advisory contracts of AB, including those associated with hedge funds or other alternative investments, provide for a performance-based fee (including carried interest), in addition to a base advisory fee, calculated either as a percentage of absolute investment results or a percentage of investment results in excess of a stated benchmark over a specified period of time. These performance-based fees are forms of variable consideration and, therefore, are excluded from the transaction price until it becomes probable there will not be significant reversal of the cumulative revenue recognized. At each reporting date, the Company evaluates constraining factors surrounding the variable consideration to determine the extent to which, if any, revenues associated with the performance-based fee can be recognized. Constraining factors impacting the amount of variable consideration included in the transaction price include contractual claw-back provisions, the length of time of the uncertainty, the number and range of possible amounts, the probability of significant fluctuations in the fund’s market value and the level in which the fund’s value exceeds the contractual threshold required to earn such a fee and the materiality of the amount being evaluated.

Sub-advisory and sub-administrative expenses associated with these services are calculated and recorded as the related services are performed in other operating costs and expense in the consolidated statements of income (loss) as the Company is acting in a principal capacity in these transactions and, as such, reflects these revenues and expenses on a gross basis.

Research services

Research services revenue principally consists of brokerage transaction charges received by SCB LLC, SCBL and AB’s other sell side subsidiaries for providing equity research services to institutional clients. Brokerage commissions for trade execution services and related expenses are recorded on a trade-date basis when the performance obligations are satisfied. Generally, the transaction price is agreed upon at the point of each trade and based upon the number of shares traded or the value of the consideration traded. Research revenues are recognized when the transaction price is quantified, collectability is assured and significant reversal of such revenue is not probable.

Distribution services

Revenues from distribution services include fees received as partial reimbursement of expenses incurred in connection with the sale of certain AB sponsored mutual funds and the 1290 Funds and for the distribution primarily of EQAT and EQ Premier VIP Trust shares to separate accounts in connection with the sale of variable life and annuity contracts. The amount and timing of revenues recognized from performance of these distribution services often is

dependent upon the contractual arrangements with the customer and the specific product sold as further described below.

Most open-end management investment companies, such as U.S. funds and the EQAT and EQ Premier VIP Trusts and the 1290 Funds, have adopted a plan under Rule 12b-1 of the Investment Company Act that allows for certain share classes to pay out of assets, distribution and service fees for the distribution and sale of its shares (“12b-1 Fees”). These open-end management investment companies have such agreements with the Company, and the Company has selling and distribution agreements pursuant to which it pays sales commissions to the financial intermediaries that distribute the shares. These agreements may be terminated by either party upon notice (generally 30 days) and do not obligate the financial intermediary to sell any specific amount of shares.

The Company records 12b-1 fees monthly based upon a percentage of the NAV of the funds. At month-end, the variable consideration of the transaction price is no longer constrained as the NAV can be calculated and the value of consideration is determined. These services are separate and distinct from other asset management services as the customer can benefit from these services independently of other services. The Company accrues the corresponding 12b-1 fees paid to sub-distributors monthly as the expenses are incurred. The Company is acting in a principal capacity in these transactions; as such, these revenues and expenses are recorded on a gross basis in the consolidated statements of income (loss).

AB sponsored mutual funds offer back-end load shares in limited instances and charge the investor a CDSC if the investment is redeemed within a certain period. The variable consideration for these contracts is contingent upon the timing of the redemption by the investor and the value of the sales proceeds. Due to these constraining factors, the Company excludes the CDSC fee from the transaction price until the investor redeems the investment. Upon redemption, the cash consideration received for these contractual arrangements is recorded as a reduction of unamortized deferred sales commissions.

AB’s Luxembourg subsidiary, the management company for most of its non-U.S. funds, earns a management fee which is accrued daily and paid monthly, at an annual rate, based on the average daily net assets of the fund. With respect to certain share classes, the management fee also may contain a component paid to distributors and other financial intermediaries and service providers to cover shareholder servicing and other administrative expenses (also referred to as an “All-in-Fee”). Based on the conclusion that asset management is distinct from distribution, the Company allocates a portion of the investment and advisory fee to distribution revenues for the servicing component based on standalone selling prices.

Other revenues

Also reported as investment management and service fees in the Company’s consolidated statements of income (loss) are other revenues from contracts with customers, primarily consisting of shareholder servicing fees, mutual fund reimbursements and other brokerage income.

Shareholder services, including transfer agency, administration and record-keeping are provided by AB to company-sponsored mutual funds. The consideration for these services is based on a percentage of the NAV of the fund or a fixed-fee based on the number of shareholder accounts being serviced. The revenues are recorded at month-end when the constraining factors involved with determining NAV or the numbers of shareholders’ accounts are resolved.

Other income

Revenues from contracts with customers reported as other income in the Company’s consolidated statements of income (loss) primarily consist of advisory account fees and brokerage commissions from the Company’s broker-dealer operations and sales commissions from the Company’s general agents for the distribution of non-affiliate insurers’ life insurance and annuity products. These revenues are recognized at month-end when constraining factors, such as AUM and product mix, are resolved and the transaction pricing no longer is variable such that the value of consideration can be determined.

Accounting and Consolidation of VIEs

For all new investment products and entities developed by the Company, the Company first determines whether the entity is a VIE, which involves determining an entity’s variability and variable interests, identifying the holders of the equity investment at risk and assessing the five characteristics of a VIE. Once an entity has been determined to be a VIE, the Company then determines whether it is the primary beneficiary of the VIE based on its beneficial interests. If the Company is deemed to be the primary beneficiary of the VIE, then the Company consolidates the entity.

Management of the Company reviews quarterly its investment management agreements and its investments in, and other financial arrangements with, certain entities that hold client AUM to determine the entities that the Company is required to consolidate under this guidance. These entities include certain mutual fund products, hedge funds, structured products, group trusts, collective investment trusts and limited partnerships.

The analysis performed to identify variable interests held, determine whether entities are VIEs or VOEs, and evaluate whether the Company has a controlling financial interest in such entities requires the exercise of judgment and is updated on a continuous basis as circumstances change or new entities are developed. The primary beneficiary evaluation generally is performed qualitatively based on all facts and circumstances, including consideration of economic interests in the VIE held directly and indirectly through related parties and entities under common control, as well as quantitatively, as appropriate.

Consolidated VIEs

Consolidated CLOs

The Company is the investment manager of certain asset-backed investment vehicles, commonly referred to as CLOs, and certain other vehicles for which the Company earns fee income for investment management services. The Company may sell or syndicate investments through these vehicles, principally as part of the strategic investing activity as part of its investment management businesses. Additionally, the Company may invest in securities issued by these vehicles which are eliminated in consolidation of the CLOs.

As of December 31, 2021 and December 31, 2020, respectively, Equitable Financial holds $109 million and $38 million of equity interests in the CLOs. The Company consolidated the CLOs as of December 31, 2021 and December 31, 2020 as it is the primary beneficiary due to the combination of both its equity interest held by Equitable Financial and the majority ownership of AB, which functions as the CLOs loan manager. The assets of the CLOs are legally isolated from the Company’s creditors and can only be used to settle obligations of the CLOs. The liabilities of the CLOs are non-recourse to the Company and the Company has no obligation to satisfy the liabilities of the CLOs. As of December 31, 2021, Equitable Financial holds $58 million of equity interests in a newly formed SPE established to purchase loans from the market in anticipation of a new CLO transaction. The Company consolidated the SPE as of December 31, 2021 as it is the primary beneficiary due to the combination of both its equity interest held by Equitable Financial and the majority ownership of AB, which functions as the SPE loan manager.

Resulting from this consolidation in the Company’s consolidated balance sheets are fixed maturities, at fair value using the fair value option with total assets of $1,641 million and $389 million notes issued by consolidated variable interest entities, at fair value using the fair value option with total liabilities of $1,191 million and $313 million at December 31, 2021 and December 31, 2020, respectively. The unpaid outstanding principal balance of the notes and short-term borrowing is $1.3 billion and $362 million at December 31, 2021 and December 31, 2020.

Consolidated Limited Partnerships and LLCs

As of December 31, 2021 and December 31, 2020 the Company consolidated limited partnerships and LLCs for which it was identified as the primary beneficiary under the VIE model. Included in Other invested assets, Mortgage loans on real estate and Other equity investments in the Company’s consolidated balance sheets at December 31, 2021 and December 31, 2020 are total assets of $219 million and $12 million, respectively related to these VIEs.

Consolidated AB-Sponsored Investment Funds

Included in the Company’s consolidated balance sheet as of December 31, 2021 and December 31, 2020 are assets of $734 million and $284 million, liabilities of $87 million and $8 million, and redeemable noncontrolling interests of $421 million and $83 million, respectively, associated with the consolidation of AB-sponsored investment funds under the VIE model. Also included in the Company’s consolidated balance sheets as of December 31, 2021 and December 31, 2020 are assets of $0 million and $68 million, liabilities of $0 million and $23 million, and redeemable noncontrolling interests of $0 million and $20 million, respectively, from consolidation of AB-sponsored investment funds under the VOE model. The assets of these consolidated funds are presented within other invested assets and cash and cash equivalents, and liabilities of these consolidated funds are presented with other liabilities in the Company’s consolidated balance sheets; ownership interests not held by the Company relating to consolidated VIEs and VOEs are presented either as redeemable or non-redeemable noncontrolling interests, as appropriate. Redeemable noncontrolling interests are presented in mezzanine equity and non-redeemable noncontrolling interests are presented within

permanent equity. The Company is not required to provide financial support to these AB-sponsored investment funds, and only the assets of such funds are available to settle each fund’s own liabilities.

Non-Consolidated VIEs

As of December 31, 2021 and December 31, 2020 respectively, the Company held approximately $2.1 billion and $1.4 billion of investment assets in the form of equity interests issued by non-corporate legal entities determined under the guidance to be VIEs, such as limited partnerships and limited liability companies, including CLOs, hedge funds, private equity funds and real estate-related funds. As an equity investor, the Company is considered to have a variable interest in each of these VIEs as a result of its participation in the risks and/or rewards these funds were designed to create by their defined portfolio objectives and strategies. Primarily through qualitative assessment, including consideration of related party interests or other financial arrangements, if any, the Company was not identified as primary beneficiary of any of these VIEs, largely due to its inability to direct the activities that most significantly impact their economic performance. Consequently, the Company continues to reflect these equity interests in the consolidated balance sheets as other equity investments and applies the equity method of accounting for these positions. The net assets of these non-consolidated VIEs are approximately $245.6 billion and $165.9 billion as of December 31, 2021 and December 31, 2020 respectively. The Company’s maximum exposure to loss from its direct involvement with these VIEs is the carrying value of its investment of $2.1 billion and $1.4 billion and approximately $1.2 billion and $1.2 billion of unfunded commitments as of December 31, 2021 and December 31, 2020, respectively. The Company has no further economic interest in these VIEs in the form of guarantees, derivatives, credit enhancements or similar instruments and obligations.

Non-Consolidated AB-Sponsored Investment Products

As of December 31, 2021 and December 31, 2020, the net assets of investment products sponsored by AB that are non-consolidated VIEs are approximately $68.9 billion and $73.4 billion, respectively. The Company’s maximum exposure to loss from its direct involvement with these VIEs is its investment of $9 million and $7 million as of December 31, 2021 and December 31, 2020. The Company has no further commitments to or economic interest in these VIEs.

Assumption Updates and Model Changes

The Company conducts its annual review of its assumptions and models during the third quarter of each year. The annual review encompasses assumptions underlying the valuation of unearned revenue liabilities, embedded derivatives for our insurance business, liabilities for future policyholder benefits, DAC and DSI assets.

However, the Company updates its assumptions as needed in the event it becomes aware of economic conditions or events that could require a change in assumptions that it believes may have a significant impact to the carrying value of product liabilities and assets and consequently materially impact its earnings in the period of the change.

Due to the extraordinary economic conditions driven by the COVID-19 pandemic in the first quarter of 2020, the Company updated its interest rate assumption to grade from the current interest rate environment to an ultimate five-year historical average over a 10-year period. As such, the 10-year U.S. Treasury yield grades from the current level to an ultimate 5-year average of 2.25%.

The low interest rate environment and update to the interest rate assumption caused a loss recognition event for the Company’s life interest-sensitive products, as well as to certain run-off business. This loss recognition event caused an acceleration of DAC amortization on the life interest-sensitive products and an increase in the premium deficiency reserve on the run-off business in the first quarter of 2020.

Impact of Assumption Updates

The net impact of assumption changes during 2021 decreased policy charges and fee income by $28 million, decreased policyholders’ benefits by $62 million, increased net derivative losses by $200 million and decreased amortization of DAC by $58 million. This resulted in a decrease in income (loss) from operations, before income taxes of $108 million and decreased net income (loss) by $85 million. As part of this annual update completed as of September 30, 2021, the reference interest rate utilized in our GAAP fair value calculations was updated from the LIBOR swap curve to the US Treasury curve, which represents a reasonable proxy of the cost of funding the derivative positions backing our GMxB liabilities. Concurrently, our GAAP fair value liability risk margins were increased. which when considered with the change from LIBOR, resulted in an immaterial impact to overall valuation as our view regarding market participant pricing of our guarantees has not changed at the time of this update.

The net impact of assumption changes during 2020 was an increase in policy charges and fee income of $23 million, an increased policyholders’ benefits by $1.6 billion, decreased interest credited to policyholders’ account balances by $1 million, increased net derivative gains by $112 million and increased amortization of DAC by $1.1 billion. This resulted in a decrease in income (loss) from operations, before income taxes of $2.6 billion and decreased net income (loss) by $2.0 billion.

The 2020 impacts related to assumption updates were primarily driven by the first quarter updates. The updates in the first quarter resulted in an increase in policy charges and fee income of $46 million, an increase in policyholders’ benefits of $1.4 billion, a decrease in interest credited to policyholders’ account balances of $6 million, and an increase of $1.1 billion in DAC amortization.

The net impact of assumption changes during 2019 was an increase in policy charges and fee income by $3 million, increased policyholders’ benefits by $875 million, decreased interest credited to policyholders’ account balances by $13 million, decreased net derivative gains (losses) by $578 million and decreased amortization of DAC by $46 million. This resulted in a decrease in income (loss) from operations, before income taxes of $1.4 billion and decreased net income (loss) by $1.1 billion.

Model Changes

There were no material model changes in 2021 and 2019.

In the first quarter of 2020, the Company adopted a new economic scenario generator to calculate the fair value of the GMIB reinsurance contract asset and GMxB derivative features liability, eliminating reliance on AXA for scenario production. The new economic scenario generator allows for a tighter calibration of U.S. indices, better reflecting the Company’s actual portfolio. The net impact of the new economic scenario generator resulted in an increase in income (loss) from continuing operations, before income taxes of $201 million, and an increase to net income (loss) of $159 million during 2020.

XML

INVESTMENTS

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

INVESTMENTS

Fixed Maturities AFS

The components of fair value and amortized cost for fixed maturities classified as AFS on the consolidated balance sheets excludes accrued interest receivable because the Company elected to present accrued interest receivable within other assets. Accrued interest receivable on AFS fixed maturities as of December 31, 2021 and 2020 was $506 million and $538 million, respectively. There was no accrued interest written off for AFS fixed maturities for the years ended December 31, 2021 and 2020.

The following tables provide information relating to the Company’s fixed maturities classified as AFS.

AFS Fixed Maturities by Classification

	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in millions)
December 31, 2021
Fixed Maturities:
Corporate (1)	$	50,172	$	22	$	2,601	$	240	$	52,511
U.S. Treasury, government and agency	13,056		—		2,344		15		15,385
States and political subdivisions	586		—		78		2		662
Foreign governments	1,124		—		42		14		1,152
Residential mortgage-backed (2)	90		—		8		—		98
Asset-backed (3)	5,933		—		21		20		5,934
Commercial mortgage-backed	2,427		—		19		25		2,421
Redeemable preferred stock (5)	41		—		12		—		53
Total at December 31, 2021	$	73,429	$	22	$	5,125	$	316	$	78,216

	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in millions)
December 31, 2020: (4)
Fixed Maturities:
Corporate (1)	$	53,160	$	13	$	5,104	$	92	$	58,159
U.S. Treasury, government and agency	12,675		—		3,448		5		16,118
States and political subdivisions	535		—		100		—		635
Foreign governments	1,011		—		98		6		1,103
Residential mortgage-backed (2)	130		—		13		—		143
Asset-backed (3)	3,587		—		29		5		3,611
Commercial mortgage-backed	1,148		—		55		—		1,203
Redeemable preferred stock	621		—		48		3		666
Total at December 31, 2020	$	72,867	$	13	$	8,895	$	111	$	81,638

______________

(1)Corporate fixed maturities include both public and private issues.

(2)Includes publicly traded agency pass-through securities and collateralized obligations.

(3)Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types.

(4)Excludes amounts reclassified as HFS.

(5)Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 of the Notes to these Consolidated Financial Statements- Investments).

The contractual maturities of AFS fixed maturities as of December 31, 2021 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Contractual Maturities of AFS Fixed Maturities

	Amortized Cost (Less Allowance for Credit Losses)		Fair Value
	(in millions)
December 31, 2021
Contractual maturities:
Due in one year or less	$	1,117	$	1,120
Due in years two through five	15,452		16,002
Due in years six through ten	18,189		19,104
Due after ten years	30,158		33,484
Subtotal	64,916		69,710
Residential mortgage-backed	90		98
Asset-backed	5,933		5,934
Commercial mortgage-backed	2,427		2,421
Redeemable preferred stock	41		53
Total at December 31, 2021	$	73,407	$	78,216

The following table shows proceeds from sales, gross gains (losses) from sales and credit losses for AFS fixed maturities for the years ended December 31, 2021, 2020 and 2019:

Proceeds from Sales, Gross Gains (Losses) from Sales and Credit Losses for AFS Fixed Maturities

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Proceeds from sales	$	27,363	$	12,903	$	8,972
Gross gains on sales	$	1,152	$	862	$	234
Gross losses on sales	$	(195)	$	(41)	$	(32)
Credit losses	$	(16)	$	(13)	$	—

The following table sets forth the amount of credit loss impairments on AFS fixed maturities held by the Company at the dates indicated and the corresponding changes in such amounts.

AFS Fixed Maturities - Credit Loss Impairments

	Year Ended December 31,
	2021		2020		2019
Balance, beginning of period	$	32	$	21	$	58
Previously recognized impairments on securities that matured, paid, prepaid or sold	(4)		(2)		(37)
Recognized impairments on securities impaired to fair value this period (1)	—		—		—
Credit losses recognized this period on securities for which credit losses were not previously recognized	9		6		—
Additional credit losses this period on securities previously impaired	7		7		—
Increases due to passage of time on previously recorded credit losses	—		—		—
Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior)	—		—		—
Balance at December 31,	$	44	$	32	$	21

______________

(1)Represents circumstances where the Company determined in the current period that it intends to sell the security, or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost.

The tables that follow below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI.

Net Unrealized Gains (Losses) on AFS Fixed Maturities

	Net Unrealized Gains (Losses) on Investments		DAC		Policyholders’ Liabilities		Deferred Income Tax Asset (Liability)		AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
	(in millions)
Balance, January 1, 2021	$	8,811	$	(1,548)	$	(1,065)	$	(1,302)	$	4,896
Net investment gains (losses) arising during the period	(3,122)		—		—		—		(3,122)
Reclassification adjustment:
Included in net income (loss)	(846)		—		—		—		(846)
Excluded from net income (loss)	—		—		—		—		—
Other (1)	(33)		—		—		—		(33)
Impact of net unrealized investment gains (losses)	—		767		648		544		1,959

Net unrealized investment gains (losses) excluding credit losses	4,810		(781)		(417)		(758)		2,854
Net unrealized investment gains (losses) with credit losses	(1)		(1)		(1)		1		(2)
Balance, December 31, 2021	$	4,809	$	(782)	$	(418)	$	(757)	$	2,852
Balance, January 1, 2020	$	3,453	$	(894)	$	(189)	$	(497)	$	1,873
Net investment gains (losses) arising during the period	6,192		—		—		—		6,192
Reclassification adjustment:
Included in net income (loss)	(828)		—		—		—		(828)
Excluded from net income (loss)	—		—		—		—		—
Impact of net unrealized investment gains (losses)			(655)		(877)		(806)		(2,338)
Net unrealized investment gains (losses) excluding credit losses	8,817		(1,549)		(1,066)		(1,303)		4,899
Net unrealized investment gains (losses) with credit losses	(6)		1		1		1		(3)
Balance, December 31, 2020	$	8,811	$	(1,548)	$	(1,065)	$	(1,302)	$	4,896
Balance, January 1, 2019	$	(522)	$	100	$	(88)	$	104	$	(406)
Net investment gains (losses) arising during the period	4,188		—		—		—		4,188
Reclassification adjustment:	—		—		—		—		—
Included in net income (loss)	(213)		—		—		—		(213)
Excluded from net income (loss)	—		—		—		—		—
Impact of net unrealized investment gains (losses)	—		(994)		(101)		(601)		(1,696)
Net unrealized investment gains (losses) excluding credit losses	3,453		(894)		(189)		(497)		1,873
Net unrealized investment gains (losses) with credit losses	—		—		—		—		—
Balance, December 31, 2019	$	3,453	$	(894)	$	(189)	$	(497)	$	1,873

______________

(1)Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 of the Notes to these Consolidated Financial Statements- Investments).

The following tables disclose the fair values and gross unrealized losses of the 2,060 issues as of December 31, 2021 and the 565 issues as of December 31, 2020 that are not deemed to have credit losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated.

AFS Fixed Maturities in an Unrealized Loss Position for Which No Allowance Is Recorded

	Less Than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(in millions)
December 31, 2021
Fixed Maturities:
Corporate	$	10,571	$	163	$	1,633	$	75	$	12,204	$	238
U.S. Treasury, government and agency	993		11		105		4		1,098		15
States and political subdivisions	120		2		11		—		131		2
Foreign governments	349		6		92		8		441		14

	Less Than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(in millions)
Asset-backed	3,865		20		38		—		3,903		20
Commercial mortgage-backed	1,527		21		96		4		1,623		25
Total at December 31, 2021	$	17,425	$	223	$	1,975	$	91	$	19,400	$	314
December 31, 2020: (1)
Fixed Maturities:
Corporate	$	2,990	$	53	$	337	$	33	$	3,327	$	86
U.S. Treasury, government and agency	885		5		—		—		885		5
Foreign governments	153		2		21		4		174		6
Asset-backed	809		4		76		1		885		5
Redeemable preferred stock	53		1		11		2		64		3
Total at December 31, 2020	$	4,890	$	65	$	445	$	40	$	5,335	$	105

______________

(1)Excludes amounts reclassified as HFS.

The Company’s investments in fixed maturities do not include concentrations of credit risk of any single issuer greater than 10% of the consolidated equity of the Company, other than securities of the U.S. government, U.S. government agencies, and certain securities guaranteed by the U.S. government. The Company maintains a diversified portfolio of corporate securities across industries and issuers and does not have exposure to any single issuer in excess of 0.6% of total corporate securities. The largest exposures to a single issuer of corporate securities held as of December 31, 2021 and December 31, 2020 were $322 million and $391 million, respectively, representing 2.5% and 2.3% of the consolidated equity of the Company.

Corporate high yield securities, consisting primarily of public high yield bonds, are classified as other than investment grade by the various rating agencies, i.e., a rating below Baa3/BBB- or the NAIC designation of 3 (medium investment grade), 4 or 5 (below investment grade) or 6 (in or near default). As of December 31, 2021 and December 31, 2020, respectively, approximately $2.9 billion and $2.5 billion, or 3.9% and 3.4%, of the $73.4 billion and $72.9 billion aggregate amortized cost of fixed maturities held by the Company were considered to be other than investment grade. These securities had gross unrealized losses of $18 million and $49 million as of December 31, 2021 and December 31, 2020, respectively.

As of December 31, 2021 and December 31, 2020, respectively, the $91 million and $40 million of gross unrealized losses of twelve months or more were primarily concentrated in corporate securities. In accordance with the policy described in Note 2 to the Notes to these Consolidated Financial Statements, the Company concluded that an adjustment to allowance for credit losses for these securities was not warranted at either December 31, 2021 or December 31, 2020. As of December 31, 2021 and December 31, 2020, the Company did not intend to sell the securities nor will it likely be required to dispose of the securities before the anticipated recovery of their remaining amortized cost basis.

Based on the Company’s evaluation both qualitatively and quantitatively of the drivers of the decline in fair value of fixed maturity securities as of December 31, 2021, the Company determined that the unrealized loss was primarily due to increases in credit spreads and changes in credit ratings.

Mortgage Loans on Real Estate

Accrued interest receivable on commercial and agricultural mortgage loans as of December 31, 2021 and 2020 was $57 million and $58 million, respectively. There was no accrued interest written off for commercial and agricultural mortgage loans for the years ended December 31, 2021 and 2020.

As of December 31, 2021, the Company had no loans for which foreclosure was probable included within the individually assessed mortgage loans, and accordingly had no associated allowance for credit losses.

Allowance for Credit Losses on Mortgage Loans

The change in the allowance for credit losses for commercial mortgage loans and agricultural mortgage loans during the years ended December 31, 2021 and 2020 were as follows:

		Year Ended December 31,
		2021		2020
	(in millions)
Allowance for credit losses on mortgage loans:
Commercial mortgages:
Balance, beginning of period		$	77	$	33
Current-period provision for expected credit losses		(20)		44
Write-offs charged against the allowance		—		—
Recoveries of amounts previously written off		—		—
Net change in allowance		(20)		44
Balance, end of period		$	57	$	77
Agricultural mortgages:
Balance, beginning of period		$	4	$	3
Current-period provision for expected credit losses		1		1
Write-offs charged against the allowance		—		—
Recoveries of amounts previously written off		—		—
Net change in allowance		1		1
Balance, end of period		$	5	$	4
Total allowance for credit losses		$	62	$	81

The change in the allowance for credit losses is attributable to:

•increases/decreases in the loan balance due to new originations, maturing mortgages, and loan amortization;

•changes in credit quality; and

•changes in market assumptions primarily related to COVID-19 driven economic changes.

Credit Quality Information

The following tables summarize the Company’s mortgage loans segregated by risk rating exposure as of December 31, 2021 and December 31, 2020.

LTV Ratios (1)

	December 31, 2021
	Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Total
	(in millions)
Mortgage loans:
Commercial:
0% - 50%	$	—	$	—	$	—	$	184	$	293	$	1,009	$	1,486
50% - 70%	1,967		1,334		407		619		491		2,533		7,351
70% - 90%	190		236		412		415		276		972		2,501
90% plus	—		—		—		35		5		73		113
Total commercial	$	2,157	$	1,570	$	819	$	1,253	$	1,065	$	4,587	$	11,451
Agricultural:

	December 31, 2021
	Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Total
	(in millions)
0% - 50%	$	180	$	212	$	128	$	129	$	119	$	738	$	1,506
50% - 70%	200		268		102		126		87		338		1,121
70% - 90%	—		—		—		—		—		17		17
90% plus	—		—		—		—		—		—		—
Total agricultural	$	380	$	480	$	230	$	255	$	206	$	1,093	$	2,644
Total mortgage loans:
0% - 50%	$	180	$	212	$	128	$	313	$	412	$	1,747	$	2,992
50% - 70%	2,167		1,602		509		745		578		2,871		8,472
70% - 90%	190		236		412		415		276		989		2,518
90% plus	—		—		—		35		5		73		113
Total mortgage loans	$	2,537	$	2,050	$	1,049	$	1,508	$	1,271	$	5,680	$	14,095

Debt Service Coverage Ratios (2)

	December 31, 2021
	Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Total
	(in millions)
Mortgage loans:
Commercial:
Greater than 2.0x	$	1,143	$	1,243	$	210	$	772	$	485	$	2,235	$	6,088
1.8x to 2.0x	185		135		250		46		161		372		1,149
1.5x to 1.8x	275		97		284		211		166		919		1,952
1.2x to 1.5x	264		95		75		101		253		701		1,489
1.0x to 1.2x	290		—		—		88		—		287		665
Less than 1.0x	—		—		—		35		—		73		108
Total commercial	$	2,157	$	1,570	$	819	$	1,253	$	1,065	$	4,587	$	11,451
Agricultural:
Greater than 2.0x	$	49	$	64	$	25	$	22	$	24	$	210	$	394
1.8x to 2.0x	52		37		25		14		14		70		212
1.5x to 1.8x	43		113		28		22		41		193		440
1.2x to 1.5x	161		179		112		116		72		355		995
1.0x to 1.2x	75		83		31		77		54		226		546
Less than 1.0x	—		4		9		4		1		39		57
Total agricultural	$	380	$	480	$	230	$	255	$	206	$	1,093	$	2,644
Total mortgage loans:
Greater than 2.0x	$	1,192	$	1,307	$	235	$	794	$	509	$	2,445	$	6,482
1.8x to 2.0x	237		172		275		60		175		442		1,361
1.5x to 1.8x	318		210		312		233		207		1,112		2,392
1.2x to 1.5x	425		274		187		217		325		1,056		2,484
1.0x to 1.2x	365		83		31		165		54		513		1,211
Less than 1.0x	—		4		9		39		1		112		165
Total mortgage loans	$	2,537	$	2,050	$	1,049	$	1,508	$	1,271	$	5,680	$	14,095

______________

(1)The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan.

(2)The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service.

LTV Ratios (1)

	December 31, 2020
	Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Total
	(in millions)
Mortgage loans:
Commercial:
0% - 50%	$	—	$	—	$	—	$	324	$	187	$	505	$	1,016
50% - 70%	1,294		357		803		656		2,190		1,697		6,997
70% - 90%	321		457		452		219		203		538		2,190
90% plus	—		—		12		5		—		288		305
Total commercial	$	1,615	$	814	$	1,267	$	1,204	$	2,580	$	3,028	$	10,508
Agricultural:
0% - 50%	$	218	$	135	$	169	$	157	$	236	$	652	$	1,567
50% - 70%	277		129		161		102		124		351		1,144
70% - 90%	—		—		3		—		—		18		21
90% plus	—		—		—		—		—		—		—
Total agricultural	$	495	$	264	$	333	$	259	$	360	$	1,021	$	2,732
Total mortgage loans:
0% - 50%	$	218	$	135	$	169	$	481	$	423	$	1,157	$	2,583
50% - 70%	1,571		486		964		758		2,314		2,048		8,141
70% - 90%	321		457		455		219		203		556		2,211
90% plus	—		—		12		5		—		288		305
Total mortgage loans	$	2,110	$	1,078	$	1,600	$	1,463	$	2,940	$	4,049	$	13,240

Debt Service Coverage Ratios (2)

	December 31, 2020
	Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Total
	(in millions)
Mortgage loans:
Commercial:
Greater than 2.0x	$	1,230	$	492	$	772	$	268	$	1,959	$	1,230	$	5,951
1.8x to 2.0x	227		83		118		378		184		329		1,319
1.5x to 1.8x	98		138		187		479		437		616		1,955
1.2x to 1.5x	60		57		154		79		—		658		1,008
1.0x to 1.2x	—		44		—		—		—		123		167
Less than 1.0x	—		—		36		—		—		72		108
Total commercial	$	1,615	$	814	$	1,267	$	1,204	$	2,580	$	3,028	$	10,508

Agricultural:
Greater than 2.0x	$	67	$	26	$	36	$	38	$	71	$	167	$	405
1.8x to 2.0x	38		35		14		15		20		82		204
1.5x to 1.8x	117		38		41		45		52		209		502
1.2x to 1.5x	183		120		141		90		142		313		989
1.0x to 1.2x	86		35		93		70		57		233		574
Less than 1.0x	4		10		8		1		18		17		58
Total agricultural	$	495	$	264	$	333	$	259	$	360	$	1,021	$	2,732
Total mortgage loans:
Greater than 2.0x	$	1,297	$	518	$	808	$	306	$	2,030	$	1,397	$	6,356
1.8x to 2.0x	265		118		132		393		204		411		1,523
1.5x to 1.8x	215		176		228		524		489		825		2,457
1.2x to 1.5x	243		177		295		169		142		971		1,997
1.0x to 1.2x	86		79		93		70		57		356		741
Less than 1.0x	4		10		44		1		18		89		166
Total mortgage loans	$	2,110	$	1,078	$	1,600	$	1,463	$	2,940	$	4,049	$	13,240

______________

(1)The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan.

(2)The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service.

Past-Due and Nonaccrual Mortgage Loan Status

The following table provides information relating to the aging analysis of past-due mortgage loans as of December 31, 2021 and 2020, respectively.

Age Analysis of Past Due Mortgage Loans (1)

	Accruing Loans												Non-accruing Loans		Total Loans		Non-accruing Loans with No Allowance		Interest Income on Non-accruing Loans
	Past Due								Current		Total
	30-59 Days		60-89 Days		90 Days or More		Total
	(in millions)
December 31, 2021:
Mortgage loans:
Commercial	$	—	$	—	$	—	$	—	$	11,451	$	11,451	$	—	$	11,451	$	—	$	—
Agricultural	1		1		25		27		2,601		2,628		16		2,644		—		—
Total	$	1	$	1	$	25	$	27	$	14,052	$	14,079	$	16	$	14,095	$	—	$	—
December 31, 2020:
Mortgage loans:
Commercial	$	162	$	—	$	—	$	162	$	10,346	$	10,508	$	—	$	10,508	$	—	$	—
Agricultural	76		7		29		112		2,620		2,732		—		2,732		—		—
Total	$	238	$	7	$	29	$	274	$	12,966	$	13,240	$	—	$	13,240	$	—	$	—

_______________

(1)Amounts presented at amortized cost basis.

As of December 31, 2021 and December 31, 2020, the carrying values of problem mortgage loans that had been classified as non-accrual loans were $14 million and $0 million, respectively.

Troubled Debt Restructuring

During the years ended December 31, 2021 and 2020, the Company identified an immaterial amount of TDRs.

Equity Securities

The table below presents a breakdown of unrealized and realized gains and (losses) on equity securities during the year ended December 31, 2021.

Unrealized and Realized Gains (Losses) from Equity Securities (1)

	Year Ended December 31,
	2021
	(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period	$	(19)
Net investment gains (losses) recognized on equity securities sold during the period	45
Unrealized and realized gains (losses) on equity securities	$	26

______________

(1)Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 of the Notes to these Consolidated Financial Statements- Investments).

Trading Securities

As of December 31, 2021 and December 31, 2020, respectively, the fair value of the Company’s trading securities was $631 million and $5.6 billion. As of December 31, 2021 and December 31, 2020, respectively, trading securities included the General Account’s investment in Separate Accounts which had carrying values of $45 million and $44 million.

The table below shows a breakdown of net investment income (loss) from trading securities during the years ended December 31, 2021, 2020 and 2019.

Net Investment Income (Loss) from Trading Securities

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period	$	(274)	$	128	$	487
Net investment gains (losses) recognized on securities sold during the period	248		42		15
Unrealized and realized gains (losses) on trading securities	(26)		170		502
Interest and dividend income from trading securities	99		217		294
Net investment income (loss) from trading securities	$	73	$	387	$	796

Fixed maturities, at fair value using the fair value option

The table below shows a breakdown of net investment income (loss) from fixed maturities, at fair value using the fair value option during the year ended December 31, 2021.

Net Investment Income (Loss) from Fixed Maturities, at Fair Value using the Fair Value Option

	Year Ended December 31,
	2021
	(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period	$	12
Net investment gains (losses) recognized on securities sold during the period	4
Unrealized and realized gains (losses) from fixed maturities	16
Interest and dividend income from fixed maturities	19
Net investment income (loss) from fixed maturities	$	35

Net Investment Income (Loss)

The following table breaks out net investment income (loss) by asset category:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Fixed maturities	$	2,440	$	2,341	$	2,060
Mortgage loans on real estate	546		516		541
Other equity investments	609		67		140
Policy loans	203		204		211
Trading securities	73		387		796
Other investment income	17		33		24
Fixed maturities, at fair value using the fair value option	35		1		—
Gross investment income (loss)	3,923		3,549		3,772
Investment expenses	(77)		(72)		(73)
Net investment income (loss)	$	3,846	$	3,477	$	3,699

Investment Gains (Losses), Net

Investment gains (losses), net, including changes in the valuation allowances and credit losses are as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Fixed maturities	$	847	$	828	$	205
Mortgage loans on real estate	19		(45)		(1)
Other equity investments (1)	—		30		2
Other	2		(69)		(133)
Investment gains (losses), net	$	868	$	744	$	73

(1) Investment gains (losses), net of Other equity investments includes Real Estate Held for production during the years ended

December 31, 2020 and December 31, 2019.

For the years ended December 31, 2021, 2020, and 2019, respectively, investment results passed through to certain participating group annuity contracts as interest credited to policyholders’ account balances totaled $2 million, $2 million and $2 million.

XML

DERIVATIVES

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES

DERIVATIVES

The Company uses derivatives as part of its overall asset/liability risk management primarily to reduce exposures to equity market and interest rate risks. Derivative hedging strategies are designed to reduce these risks from an economic perspective and are all executed within the framework of a “Derivative Use Plan” approved by applicable states’ insurance law. Derivatives are generally not accounted for using hedge accounting, with the exception of TIPS and cash flow hedges, which is discussed further below. Operation of these hedging programs is based on models involving numerous estimates and assumptions, including, among others, mortality, lapse, surrender and withdrawal rates, election rates, fund performance, market volatility and interest rates. A wide range of derivative contracts are used in these hedging programs, including exchange traded equity, currency and interest rate futures contracts, total return and/or other equity swaps, interest rate swap and floor contracts, bond and bond-index total return swaps, swaptions, variance swaps and equity options, credit and foreign exchange derivatives, as well as bond and repo transactions to support the hedging. The derivative contracts are collectively managed in an effort to reduce the economic impact of unfavorable changes in guaranteed benefits’ exposures attributable to movements in capital markets. In addition, as part of its hedging strategy, the Company targets an asset level for all variable annuity products at or above a CTE98 level under most economic scenarios (CTE is a statistical measure of tail risk which quantifies the total asset requirement to sustain a loss if an event outside a given probability level has occurred. CTE98 denotes the financial resources a company would need to cover the average of the worst 2% of scenarios.)

Derivatives Utilized to Hedge Exposure to Variable Annuities with Guarantee Features

The Company has issued and continues to offer variable annuity products with GMxB features. The risk associated with the GMDB feature is that under-performance of the financial markets could result in GMDB benefits, in the event of death, being higher than what accumulated policyholders’ account balances would support. The risk associated with the GMIB feature is that under-performance of the financial markets could result in the present value of GMIB, in the event of annuitization, being higher than what accumulated policyholders’ account balances would support, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. The risk associated with products that have a GMxB derivative features liability is that under-performance of the financial markets could result in the GMxB derivative features’ benefits being higher than what accumulated policyholders’ account balances would support.

For GMxB features, the Company retains certain risks including basis, credit spread and some volatility risk and risk associated with actual experience versus expected actuarial assumptions for mortality, lapse and surrender, withdrawal and policyholder election rates, among other things. The derivative contracts are managed to correlate with changes in the value of the GMxB features that result from financial markets movements. A portion of exposure to realized equity volatility is hedged using equity options and variance swaps and a portion of exposure to credit risk is hedged using total return swaps on fixed income indices. Additionally, the Company is party to total return swaps for which the reference U.S. Treasury securities are contemporaneously purchased from the market and sold to the swap counterparty. As these transactions result in a transfer of control of the U.S. Treasury securities to the swap counterparty, the Company derecognizes these securities with consequent gain or loss from the sale. The Company has also purchased reinsurance contracts to mitigate the risks associated with GMDB features and the impact of potential market fluctuations on future policyholder elections of GMIB features contained in certain annuity contracts issued by the Company. The reinsurance of the GMIB features is accounted for as a derivative. In addition, on June 1, 2021, we ceded legacy variable annuity policies sold by Equitable Financial between 2006-2008 (the “Block”), comprised of non-New York “Accumulator” policies containing fixed rate GMIB and/or GMDB guarantees. As this contract provides full risk transfer and thus has the same risk attributes as the underlying direct contracts, the benefits of this treaty are accounted for in the same manner as the underlying gross reserves and therefore the Amounts Due from Reinsurers related to the GMIB with NLG are accounted for as an embedded derivative.

The Company has in place an economic hedge program using interest rate swaps and U.S. Treasury futures to partially protect the overall profitability of future variable annuity sales against declining interest rates.

Derivatives Utilized to Hedge Crediting Rate Exposure on SCS, SIO, MSO and IUL Products/Investment Options

The Company hedges crediting rates in the SCS variable annuity, SIO in the EQUI-VEST variable annuity series, MSO in the variable life insurance products and IUL insurance products. These products permit the contract owner to participate in the performance of an index, ETF or commodity price movement up to a cap for a set period of time. They also contain a protection feature, in which the Company will absorb, up to a certain percentage, the loss of value in an index, ETF or commodity price, which varies by product segment.

In order to support the returns associated with these features, the Company enters into derivative contracts whose payouts, in combination with fixed income investments, emulate those of the index, ETF or commodity price, subject to caps and buffers, thereby substantially reducing any exposure to market-related earnings volatility.

Derivatives Used to Hedge Equity Market Risks Associated with the General Account’s Seed Money Investments in Retail Mutual Funds

The Company’s General Account seed money investments in retail mutual funds expose us to market risk, including equity market risk which is partially hedged through equity-index futures contracts to minimize such risk.

Derivatives Used for General Account Investment Portfolio

The Company maintains a strategy in its General Account investment portfolio to replicate the credit exposure of fixed maturity securities otherwise permissible for investment under its investment guidelines through the sale of CDS. Under the terms of these swaps, the Company receives quarterly fixed premiums that, together with any initial amount paid or received at trade inception, replicate the credit spread otherwise currently obtainable by purchasing the referenced entity’s bonds of similar maturity. These credit derivatives generally have remaining terms of five years or less and are recorded at fair value with changes in fair value, including the yield component that emerges from initial amounts paid or received, reported in net derivative gains (losses).

The Company manages its credit exposure taking into consideration both cash and derivatives based positions and selects the reference entities in its replicated credit exposures in a manner consistent with its selection of fixed maturities. In addition, the Company generally transacts the sale of CDS in single name reference entities of investment grade credit quality and with counterparties subject to collateral posting requirements. If there is an event of default by the reference entity or other such credit event as defined under the terms of the swap contract, the Company is obligated to perform under the credit derivative and, at its option, either pay the referenced amount of the contract less an auction-determined recovery amount or pay the referenced amount of the contract and receive in return the defaulted or similar security of the reference entity for recovery by sale at the contract settlement auction. The Company purchased CDS to mitigate its exposure to a reference entity through cash positions. These positions do not replicate credit spreads.

To date, there have been no events of default or circumstances indicative of a deterioration in the credit quality of the named referenced entities to require or suggest that the Company will have to perform under the CDS that it sold. The maximum potential amount of future payments the Company could be required to make under the credit derivatives sold is limited to the par value of the referenced securities which is the dollar or euro-equivalent of the derivative’s notional amount. The Standard North American CDS Contract or Standard European Corporate Contract under which the Company executes these CDS sales transactions does not contain recourse provisions for recovery of amounts paid under the credit derivative.

The Company purchased 30-year TIPS and other sovereign bonds, both inflation linked and non-inflation linked, as General Account investments and enters into asset or cross-currency basis swaps, to result in payment of the given bond’s coupons and principal at maturity in the bond’s specified currency to the swap counterparty in return for fixed dollar amounts. These swaps, when considered in combination with the bonds, together result in a net position that is intended to replicate a dollar-denominated fixed-coupon cash bond with a yield higher than a term-equivalent U.S. Treasury bond.

Derivatives Utilized to Hedge Exposure to Foreign Currency Denominated Cash Flows

The Company purchases private placement debt securities and issues funding agreements in the FABN program in currencies other than its functional US dollar currency. The Company enters into cross currency swaps with external counterparties to hedge the exposure of the foreign currency denominated cash flows of these instruments. The foreign currency received from or paid to the cross currency swap counterparty is exchanged for fixed US dollar amounts with improved net investment yields or net product costs over equivalent US dollar denominated instruments issued at that time. The transactions are accounted for as cash flow hedges when they are designated in hedging relationships and qualify for hedge accounting. The first cross currency swap hedges were designated and applied hedge accounting during the quarter ended June 30, 2021.

These cross currency swaps are for the period the foreign currency denominated private placement debt securities and funding agreement are outstanding, with the longest cross currency swap expiring in 2033. Since designation and qualification as cash flow hedges, cross currency swap interest accruals are recognized in Net investment income and in Interest credited to policyholders’ account balances.

The tables below present quantitative disclosures about the Company’s derivative instruments designated in hedging relationships and derivative instruments which have not been designated in hedging relationships, including those embedded in other contracts required to be accounted for as derivative instruments.

The following table presents the gross notional amount and estimated fair value of the Company’s derivatives:

Derivative Instruments by Category

	December 31, 2021						December 31, 2020
			Fair Value						Fair Value
	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
	(in millions)
Derivatives: Designated for Hedge accounting (1)
Cash Flow Hedges:
Currency Swaps	$	921	$	7	$	42	$	—	$	—	$	—
Interest Swaps	955		—		395		957		—		219
Total: Designated for Hedge accounting	1,876		7		437		957		—		219
Derivatives: Not designated for Hedge accounting (1)
Equity contracts:
Futures (5)	2,640		—		1		4,881		—		2
Swaps (5)	13,378		6		4		22,456		6		2
Options	48,489		12,024		5,065		35,848		8,396		3,726
Interest rate contracts:
Futures (5)	12,575		—		—		18,571		—		—
Swaps (5)	1,889		—		46		22,877		553		437
Swaptions	—		—		—		—		—		—
Credit contracts:
Credit default swaps	774		9		10		1,087		19		14
Currency
Currency Swaps	541		1		—		411		9		9
Currency forwards	79		8		7		—		—		—
Other freestanding contracts:
Margin	—		125		—		—		49		66
Collateral	—		178		6,160		—		212		3,839
Total: Not designated for Hedge accounting	80,365		12,351		11,293		106,131		9,244		8,095
Embedded Derivatives:
Amounts due from reinsurers (6)	—		5,813		—		—		—		—
GMIB reinsurance contracts (2)	—		1,848		—		—		2,488		—
GMxB derivative features liability (3)	—		—		8,525		—		—		11,131
SCS, SIO, MSO and IUL indexed features (4)	—		—		6,773		—		—		4,509
Total Embedded Derivatives	—		7,661		15,298		—		2,488		15,640
Total derivative instruments	$	82,241	$	20,019	$	27,028	$	107,088	$	11,732	$	23,954

___________

(1)Reported in other invested assets in the consolidated balance sheets.

(2) Reported in GMIB reinsurance contract asset in the consolidated balance sheets.

(3)    Reported in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets.

(4)    Reported in policyholders’ account balances in the consolidated balance sheets.

(5)    Decrease in futures and swaps notional as of December 31, 2021 is primarily due to Venerable Transaction (see Note 1 of the Notes to these Consolidated Financial Statements).

(6)    Represents GMIB NLG ceded related to the Venerable Transaction.

The following table presents the effects of derivative instruments on the consolidated statements of income and comprehensive income (loss).

Derivative Instruments by Category

	Year Ended December 31, 2021						Year Ended December 31, 2020						Year Ended December 31, 2019
	Net Derivatives Gain(Losses) (1)		Interest Credited To Policyholder Account Balances		AOCI		Net Derivatives Gain(Losses) (1)		Interest Credited To Policyholder Account Balances		AOCI		Net Derivatives Gain(Losses) (1)		Interest Credited To Policyholder Account Balances		AOCI
	(in millions)
Derivatives: Designated for Hedge accounting
Cash Flow Hedges:
Currency Swaps	$	(2)	$	(45)	$	5	$	—	$	—	$	—	$	—	$	—	$	—
Interest Swaps	(69)		—		(87)		(9)		—		(87)		4		—		(28)
Total: Designated for Hedge accounting	(71)		(45)		(82)		(9)		—		(87)		4		—		(28)
Derivatives: Not Designated for Hedge accounting
Equity contracts
Futures	(567)		—		—		(1,011)		—		—		(1,311)		—		—
Swaps	(3,614)		—		—		(3,368)		—		—		(2,426)		—		—
Options	3,886		—		—		1,663		—		—		2,229		—		—
Interest Rate contracts
Futures	(728)		—		—		1,740		—		—		145		—		—
Swaps	(2,317)		—		—		2,832		—		—		2,033		—		—
Swaptions	—		—		—		9		—		—		(35)		—		—
Credit contracts
Credit Default Swaps	(2)		—		—		—		—		—		9		—		—
Currency contracts
Currency Swaps	3		—		—		(4)		—		—		(9)		—		—
Currency forwards	2		—		—		—		—		—		—		—		—
Other
Margin	—		—		—		—		—		—		—		—		—
Collateral	—		—		—		—		—		—		—		—		—
Total: Not Designated for Hedge accounting	(3,337)		—		—		1,861		—		—		635		—		—
Embedded Derivatives
Amounts due from reinsurers	517		—		—		—		—		—		—		—		—
GMIB reinsurance contracts	(625)		—		—		417		—		—		433		—		—
GMxB derivative features liability (2)	2,841		—		—		(2,253)		—		—		(2,442)		—		—
SCS, SIO,MSO and IUL indexed features	(3,835)		—		—		(1,738)		—		—		(2,642)		—		—
Total Embedded Derivatives	(1,102)		—		—		(3,574)		—		—		(4,651)		—		—
Total Derivatives	$	(4,510)	$	(45)	$	(82)	$	(1,722)	$	—	$	(87)	$	(4,012)	$	—	$	(28)

(1)Reported in net derivative gains (losses) in the consolidated statements of income (loss).

(2)Excludes settlement fees of $45 million on CS Life reinsurance contract for the year ended December 31, 2021 .

The table that follow below present a roll-forward of cash flow hedges recognized in AOCI.

Roll-forward of Cash flow hedges in AOCI

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Balance, beginning of period	$	(126)	$	(38)	$	(10)
Amount recorded in AOCI
Currency Swaps	(35)		—		—
Interest Swaps	(183)		(108)		(45)
Total Amount recorded in AOCI	(218)		(108)		(45)
Amount reclassified from AOCI to income
Currency Swaps	40		—		—
Interest Swaps	96		20		17
Total Amount reclassified from AOCI to income	136		20		17
Ending Balance, December 31 (1)	$	(208)	$	(126)	$	(38)

_______________

(1) The Company does not estimate the amount of the deferred losses in AOCI at years ended December 31, 2021, 2020 and 2019 which will be released and reclassified into Net income (loss) over the next 12 months as the amounts cannot be reasonably estimated.

Equity-Based and Treasury Futures Contracts Margin

All outstanding equity-based and treasury futures contracts as of December 31, 2021 and December 31, 2020 are exchange-traded and net settled daily in cash. As of December 31, 2021 and December 31, 2020, respectively, the Company had open exchange-traded futures positions on: (i) the S&P 500, Nasdaq, Russell 2000 and Emerging Market indices, having initial margin requirements of $109 million and $307 million, (ii) the 2-year, 5-year and 10-year U.S. Treasury Notes on U.S. Treasury bonds and ultra-long bonds, having initial margin requirements of $200 million and $264 million, and (iii) the Euro Stoxx, FTSE 100, Topix, ASX 200 and EAFE indices as well as corresponding currency futures on the Euro/U.S. dollar, Pound/U.S. dollar, Australian dollar/U.S. dollar, and Yen/U.S. dollar, having initial margin requirements of $16 million and $35 million.

Collateral Arrangements

The Company generally has executed a CSA under the ISDA Master Agreement it maintains with each of its OTC derivative counterparties that requires both posting and accepting collateral either in the form of cash or high-quality securities, such as U.S. Treasury securities, U.S. government and government agency securities and investment grade corporate bonds. The Company nets the fair value of all derivative financial instruments with counterparties for which an ISDA Master Agreement and related CSA have been executed. As of December 31, 2021 and December 31, 2020, respectively, the Company held $6.2 billion and $3.8 billion in cash and securities collateral delivered by trade counterparties, representing the fair value of the related derivative agreements. The unrestricted cash collateral is reported in other invested assets. The Company posted collateral of $178 million and $212 million as of December 31, 2021 and December 31, 2020, respectively, in the normal operation of its collateral arrangements.

The following tables presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments as of December 31, 2021 and December 31, 2020:

Offsetting of Financial Assets and Liabilities and Derivative Instruments

As of December 31, 2021

	Gross Amount Recognized		Gross Amount Offset in the Balance Sheets		Net Amount Presented in the Balance Sheets		Gross Amount not Offset in the Balance Sheets (3)		Net Amount
	(in millions)
Assets:
Derivative assets (1)	$	12,358	$	10,756	$	1,602	$	(961)	$	641
Other financial assets	1,989		—		1,989		—		1,989
Other invested assets	$	14,347	$	10,756	$	3,591	$	(961)	$	2,630
Liabilities:
Derivative liabilities (2)	$	10,770	$	10,756	$	14	$	—	$	14
Other financial liabilities	3,919		—		3,919		—		3,919
Other liabilities	$	14,689	$	10,756	$	3,933	$	—	$	3,933

______________

(1)Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs.

(2)Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs.

(3)Financial instruments sent (held).

As of December 31, 2020

	Gross Amount Recognized		Gross Amount Offset in the Balance Sheets		Net Amount Presented in the Balance Sheets		Gross Amount not Offset in the Balance Sheets (3)		Net Amount
	(in millions)
Assets:
Derivative assets (1)	$	9,244	$	8,249	$	995	$	(53)	$	942
Other financial assets	1,733		—		1,733		—		1,733
Other invested assets	$	10,977	$	8,249	$	2,728	$	(53)	$	2,675
Liabilities:
Derivative liabilities (2)	$	8,261	$	8,249	$	12	$	—	$	12
Other financial liabilities	3,674		—		3,674		—		3,674
Other liabilities	$	11,935	$	8,249	$	3,686	$	—	$	3,686

______________

(1)Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs.

(2)Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs.

(3)Financial instruments sent (held).

XML

GOODWILL

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

GOODWILL

Goodwill

Goodwill represents the excess of purchase price over the estimated fair value of identifiable net assets acquired in a business combination. The Company tests goodwill for recoverability each annual reporting period at December 31 and at interim periods if facts or circumstances are indicative of potential impairment.

The carrying value of goodwill from the Company’s Investment Management reporting unit totaled $4.6 billion at both December 31, 2021 and 2020, resulting from its investment in AB as well as direct strategic acquisitions of AB, including its purchase of Sanford C. Bernstein, Inc.

As of December 31, 2021 and 2020, the Company’s annual testing resulted in no impairment of this goodwill, as the fair value of the reporting unit exceeded its carrying amount at each respective date.

Other Intangible Assets

The Company’s intangible assets primarily relate to the Bernstein Acquisition and purchases of AB Units and reflect amounts assigned to acquired investment management contracts based on their estimated fair values at the time of acquisition, less accumulated amortization.

The gross carrying amount of AB-related intangible assets was $932 million as of December 31, 2021 and $926 million as of December 31, 2020, and the accumulated amortization of these intangible assets was $809 million and $786 million as of December 31, 2021 and 2020, respectively. Amortization expense for AB-related intangible assets totaled $21 million , $37 million, and $44 million for 2021, 2020 and 2019, respectively. Estimated annual amortization expense for each of the next five years is approximately $20 million, $18 million, $18 million, $17 million and $15 million, respectively.

On June 20, 2014, AB acquired an 81.7% ownership interest in CPH, a Danish asset management firm that manages global core equity assets for institutional investors. AB subsequently purchased additional shares of CPH bringing its ownership interest to 100% as of December 31, 2019. AB ownership interest in CPH is 100% as of December 31, 2021. The acquisitions described above did not have a significant impact on the Company’s consolidated revenues or net income. As a result, supplemental pro forma information has not been provided. Additional information regarding the contingent payment obligations associated with these and other acquisitions made by AB is included in Note 8 of the Notes to these Consolidated Financial Statements.

XML

CLOSED BLOCK

12 Months Ended

Dec. 31, 2021

Closed Block Disclosure [Abstract]

CLOSED BLOCK

CLOSED BLOCK

As a result of demutualization, the Company’s Closed Block was established in 1992 for the benefit of certain individual participating policies that were in force on that date. Assets, liabilities and earnings of the Closed Block are specifically identified to support its participating policyholders.

Assets allocated to the Closed Block inure solely to the benefit of the Closed Block policyholders and will not revert to the benefit of the Company. No reallocation, transfer, borrowing or lending of assets can be made between the Closed Block and other portions of the Company’s General Account, any of its Separate Accounts or any affiliate of the Company without the approval of the NYDFS. Closed Block assets and liabilities are carried on the same basis as similar assets and liabilities held in the General Account.

The excess of Closed Block liabilities over Closed Block assets (adjusted to exclude the impact of related amounts in AOCI) represents the expected maximum future post-tax earnings from the Closed Block that would be recognized in income from continuing operations over the period the policies and contracts in the Closed Block remain in force. As of January 1, 2001, the Company has developed an actuarial calculation of the expected timing of the Closed Block’s earnings.

If the actual cumulative earnings from the Closed Block are greater than the expected cumulative earnings, only the expected earnings will be recognized in net income. Actual cumulative earnings in excess of expected cumulative earnings at any point in time are recorded as a policyholder dividend obligation because they will ultimately be paid to Closed Block policyholders as an additional policyholder dividend unless offset by future performance that is less favorable than originally expected. If a policyholder dividend obligation has been previously established and the actual Closed Block earnings in a subsequent period are less than the expected earnings for that period, the policyholder dividend obligation would be reduced (but not below zero). If, over the period the policies and contracts in the Closed Block remain in force, the actual cumulative earnings of the Closed Block are less than the expected cumulative earnings, only actual earnings would be recognized in income from continuing operations. If the Closed Block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from assets outside the Closed Block.

Many expenses related to Closed Block operations, including amortization of DAC, are charged to operations outside of the Closed Block; accordingly, net revenues of the Closed Block do not represent the actual profitability of the Closed Block operations. Operating costs and expenses outside of the Closed Block are, therefore, disproportionate to the business outside of the Closed Block.

Summarized financial information for the Company’s Closed Block is as follows:

	December 31,
	2021		2020
	(in millions)
Closed Block Liabilities:
Future policy benefits, policyholders’ account balances and other	$	5,928	$	6,201

	December 31,
	2021		2020
Policyholder dividend obligation	—		160
Other liabilities	39		39
Total Closed Block liabilities	5,967		6,400
Assets Designated to the Closed Block:
Fixed maturities AFS, at fair value (amortized cost of $3,185 and $3,359) (allowance for credit losses of $0 and $0)	3,390		3,718
Mortgage loans on real estate (net of allowance for credit losses of $4 and $6)	1,771		1,773
Policy loans	602		648
Cash and other invested assets	63		28
Other assets	90		169
Total assets designated to the Closed Block	5,916		6,336
Excess of Closed Block liabilities over assets designated to the Closed Block	51		64
Amounts included in AOCI:
Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $0 and $160; and net of income tax: $(43) and $(42)	172		167
Maximum future earnings to be recognized from Closed Block assets and liabilities	$	223	$	231

The Company’s Closed Block revenues and expenses were as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Revenues:
Premiums and other income	$	144	$	157	$	182
Net investment income (loss)	237		251		278
Investment gains (losses), net	4		—		(1)
Total revenues	385		408		459
Benefits and Other Deductions:
Policyholders’ benefits and dividends	372		399		439
Other operating costs and expenses	3		1		2
Total benefits and other deductions	375		400		441
Net income (loss), before income taxes	10		8		18
Income tax (expense) benefit	(2)		(2)		(2)
Net income (loss)	$	8	$	6	$	16

A reconciliation of the Company’s policyholder dividend obligation follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Beginning balance	$	160	$	2	$	—
Unrealized investment gains (losses)	(160)		158		2
Ending balance	$	—	$	160	$	2

XML

DAC AND POLICYHOLDER BONUS INTEREST CREDITS

12 Months Ended

Dec. 31, 2021

Contract holder Bonus Interest Credits [Abstract]

DAC AND POLICYHOLDER BONUS INTEREST CREDITS

DAC AND POLICYHOLDER BONUS INTEREST CREDITS

Changes in the DAC asset for the years ended December 31, 2021, 2020 and 2019 were as follows:

	December 31,
	2021		2020		2019
	(in millions)
Balance, beginning of year (1)	$	4,243	$	5,840	$	6,705
Capitalization of commissions, sales and issue expenses	875		669		754
Amortization:
Impact of assumptions updates and model changes	58		(1,109)		46
All other	(451)		(504)		(643)
Total amortization	(393)		(1,613)		(597)
Change in unrealized investment gains and losses	766		(654)		(994)
Reclassified to assets HFS	—		1		(31)
Balance, end of year	$	5,491	$	4,243	$	5,837

______________

(1) December 31, 2020 DAC beginning balance is $3 million more than December 31, 2019 ending balance due to impact of CECL.

The deferred asset for policyholder bonus interest credits is reported in other assets in the consolidated balance sheets and changes in the deferred asset for policyholder bonus interest credits are reported in Interest credited to policyholders’ account balances. For the years ended December 31, 2021, 2020 and 2019 changes were as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Balance, beginning of year	$	404	$	430	$	448
Amortization charged to income	(31)		(26)		(18)
Balance, end of year	$	373	$	404	$	430

XML

FAIR VALUE DISCLOSURES

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES

U.S. GAAP establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value, and identifies three levels of inputs that may be used to measure fair value:

Level 1    Unadjusted quoted prices for identical instruments in active markets. Level 1 fair values generally are supported by market transactions that occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2    Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, and inputs to model-derived valuations that are directly observable or can be corroborated by observable market data.

Level 3    Unobservable inputs supported by little or no market activity and often requiring significant management judgment or estimation, such as an entity’s own assumptions about the cash flows or other significant components of value that market participants would use in pricing the asset or liability.

The Company uses unadjusted quoted market prices to measure fair value for those instruments that are actively traded in financial markets. In cases where quoted market prices are not available, fair values are measured using present value or other valuation techniques. The fair value determinations are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such adjustments do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value cannot be substantiated by direct comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instrument.

Management is responsible for the determination of the value of investments carried at fair value and the supporting methodologies and assumptions. Under the terms of various service agreements, the Company often utilizes independent valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual securities. These independent valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of widely accepted valuation models, provide a single fair value measurement for individual securities for which a fair value has been requested. As further described below with respect to specific asset classes, these inputs include, but are not limited to, market prices for recent trades and transactions in comparable securities, benchmark yields, interest rate yield curves, credit spreads, quoted prices for similar securities, and other market-observable information, as applicable. Specific attributes of the security being valued also are considered, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security- or issuer-specific information. When insufficient market observable information is available upon which to measure fair value, the Company either will request brokers knowledgeable about these securities to provide a non-binding quote or will employ internal valuation models. Fair values received from independent valuation service providers and brokers and those internally modeled or otherwise estimated are assessed for reasonableness.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Fair value measurements are required on a non-recurring basis for certain assets only when an impairment or other events occur. For the periods ended December 31, 2021 and December 31, 2020, the Company recognized impairment adjustments and impairment losses, respectively, to adjust the carrying value of held-for-sale asset and liabilities to their fair value less cost to sell. The value is measured on a nonrecurring basis and categorized within Level 3 of the fair value hierarchy. The fair value was determined using a market approach, estimated based on the negotiated value of the asset and liabilities. See Note 23 of the Notes to these Consolidated Financial Statements for additional details of the Held-for-Sale assets and liabilities.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below.

Fair Value Measurements as of December 31, 2021

	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments
Fixed maturities, AFS:
Corporate (1)	$	—	$	51,007	$	1,504	$	52,511
U.S. Treasury, government and agency	—		15,385		—		15,385
States and political subdivisions	—		627		35		662
Foreign governments	—		1,152		—		1,152
Residential mortgage-backed (2)	—		98		—		98
Asset-backed (3)	—		5,926		8		5,934
Commercial mortgage-backed	—		2,401		20		2,421
Redeemable preferred stock	—		53		—		53
Total fixed maturities, AFS	—		76,649		1,567		78,216
Fixed maturities, at fair value using the fair value option	—		1,440		201		1,641
Other equity investments (7)	322		457		5		784
Trading securities	340		226		65		631
Other invested assets:
Short-term investments	—		30		—		30
Assets of consolidated VIEs/VOEs	166		450		11		627
Swaps	—		(473)		—		(473)
Credit default swaps	—		(1)		—		(1)
Futures	(1)		—		—		(1)
Options	—		6,959		—		6,959
Total other invested assets	165		6,965		11		7,141
Cash equivalents	3,275		293		—		3,568
Segregated securities	—		1,504		—		1,504
Amounts due from reinsurer (6)	—		—		5,813		5,813
GMIB reinsurance contracts asset	—		—		1,848		1,848
Separate Accounts assets (4)	144,124		2,572		1		146,697
Total Assets	$	148,226	$	90,106	$	9,511	$	247,843
Liabilities
Notes issued by consolidated VIE’s, at fair value using the fair value option (5)	$	—	$	1,277	$	—	$	1,277
GMxB derivative features’ liability	—		—		8,525		8,525
SCS, SIO, MSO and IUL indexed features’ liability	—		6,773		—		6,773
Liabilities of consolidated VIEs and VOEs	16		2		—		18
Contingent payment arrangements	—		—		38		38
Total Liabilities	$	16	$	8,052	$	8,563	$	16,631

______________

(1)Corporate fixed maturities includes both public and private issues.

(2)Includes publicly traded agency pass-through securities and collateralized obligations.

(3)Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types.

(4)Separate Accounts assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate. As of December 31, 2021, the fair value of such investments was $404 million.

(5)Includes CLO short-term debt of $92 million, which is inclusive as fair valued within Notes issued by consolidated VIE’s, at fair value using the fair value option Accrued interest payable of $6 million is reported in Notes issued by consolidated VIE’s, at fair value using the fair value option in the consolidated balance sheets, which is not required to be measured at fair value on a recurring basis.

(6)This represents GMIB NLG ceded reserves related to the Venerable Transaction. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction.

(7)Includes short position equity securities of $33 million that are reported in other liabilities.

Fair Value Measurements as of December 31, 2020 (1)

	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments
Fixed maturities, AFS:
Corporate (2)	$	—	$	56,457	$	1,702	$	58,159
U.S. Treasury, government and agency	—		16,118		—		16,118
States and political subdivisions	—		596		39		635
Foreign governments	—		1,103		—		1,103
Residential mortgage-backed (3)	—		143		—		143
Asset-backed (4)	—		3,591		20		3,611
Commercial mortgage-backed (3)	—		1,203		—		1,203
Redeemable preferred stock	404		262		—		666
Total fixed maturities, AFS	404		79,473		1,761		81,638
Fixed maturities, at fair value using the fair value option	—		309		80		389
Other equity investments	13		—		71		84
Trading securities	441		5,073		39		5,553
Other invested assets:
Short-term investments	—		101		1		102
Assets of consolidated VIEs/VOEs	74		231		13		318
Swaps	—		(99)		—		(99)
Credit default swaps	—		5		—		5
Futures	(2)		—		—		(2)
Options	—		4,670		—		4,670
Swaptions	—		—		—		—
Total other invested assets	72		4,908		14		4,994
Cash equivalents	4,309		297		—		4,606
Segregated securities	—		1,753		—		1,753
GMIB reinsurance contracts asset	—		—		2,488		2,488
Separate Accounts assets (5)	132,698		2,674		1		135,373
Total Assets	$	137,937	$	94,487	$	4,454	$	236,878
Liabilities
Notes issued by consolidated VIE’s, at fair value using the fair value option (6)	$	—	$	312	$	—	$	312
GMxB derivative features’ liability	—		—		11,131		11,131
SCS, SIO, MSO and IUL indexed features’ liability	—		4,509		—		4,509
Liabilities of consolidated VIEs and VOEs	2		6		—		8
Contingent payment arrangements	—		—		28		28
Total Liabilities	$	2	$	4,827	$	11,159	$	15,988

______________

(1)Excludes amounts reclassified as HFS.

(2)Corporate fixed maturities includes both public and private issues.

(3)Includes publicly traded agency pass-through securities and collateralized obligations.

(4)Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans.

(5)Separate Accounts assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate and commercial mortgages. As of December 31, 2020, the fair value of such investments was $356 million.

(6)Accrued interest payable of $1 million is reported in Notes issued by consolidated VIE’s, at fair value using the fair value option in the consolidated balance sheets, which is not required to be measured at fair value on a recurring basis.

Public Fixed Maturities

The fair values of the Company’s public fixed maturities, including those accounted for using the fair value option are generally based on prices obtained from independent valuation service providers and for which the Company maintains a vendor hierarchy by asset type based on historical pricing experience and vendor expertise. Although each security generally is priced by multiple independent valuation service providers, the Company ultimately uses the price received from the independent valuation service provider highest in the vendor hierarchy based on the respective asset type, with limited exception. To validate reasonableness, prices also are internally reviewed by those with relevant expertise through comparison with directly observed recent market trades. Consistent with the fair value hierarchy, public fixed maturities validated in this manner generally are reflected within Level 2, as they are primarily based on observable pricing for similar assets and/or other market observable inputs.

Private Fixed Maturities

The fair values of the Company’s private fixed maturities, including those accounted for using the fair value option are determined from prices obtained from independent valuation service providers. Prices not obtained from an independent valuation service provider are determined by using a discounted cash flow model or a market comparable company valuation technique. In certain cases, these models use observable inputs with a discount rate based upon the average of spread surveys collected from private market intermediaries who are active in both primary and secondary transactions, taking into account, among other factors, the credit quality and industry sector of the issuer and the reduced liquidity associated with private placements. Generally, these securities have been reflected within Level 2. For certain private fixed maturities, the discounted cash flow model or a market comparable company valuation technique may also incorporate unobservable inputs, which reflect the Company’s own assumptions about the inputs market participants would use in pricing the asset. To the extent management determines that such unobservable inputs are significant to the fair value measurement of a security, a Level 3 classification generally is made.

Notes issued by consolidated VIE’s, at fair value using the fair value option

These notes are based on the fair values of corresponding fixed maturity collateral. The CLO liabilities are also reduced by the fair value of the beneficial interests the Company retains in the CLO and the carrying value of any beneficial interests that represent compensation for services. As the notes are valued based on the reference collateral, they are classified as Level 2 or 3. See “Fair Value Option” below for additional information.

Freestanding Derivative Positions

The net fair value of the Company’s freestanding derivative positions as disclosed in Note 4 of the Notes to these Consolidated Financial Statements are generally based on prices obtained either from independent valuation service providers or derived by applying market inputs from recognized vendors into industry standard pricing models. The majority of these derivative contracts are traded in the OTC derivative market and are classified in Level 2. The fair values of derivative assets and liabilities traded in the OTC market are determined using quantitative models that require use of the contractual terms of the derivative instruments and multiple market inputs, including interest rates, prices, and indices to generate continuous yield or pricing curves, including overnight index swap curves, and volatility factors, which then are applied to value the positions. The predominance of market inputs is actively quoted and can be validated through external sources or reliably interpolated if less observable.

Level Classifications of the Company’s Financial Instruments

Financial Instruments Classified as Level 1

Investments classified as Level 1 primarily include redeemable preferred stock, trading securities, cash equivalents and Separate Accounts assets. Fair value measurements classified as Level 1 include exchange-traded prices of fixed maturities, equity securities and derivative contracts, and net asset values for transacting subscriptions and redemptions of mutual fund shares held by Separate Accounts. Cash equivalents classified as Level 1 include money market accounts, overnight commercial paper and highly liquid debt instruments purchased with an original maturity of three months or less and are carried at cost as a proxy for fair value measurement due to their short-term nature.

Financial Instruments Classified as Level 2

Investments classified as Level 2 are measured at fair value on a recurring basis and primarily include U.S. government and agency securities, certain corporate debt securities and financial assets and liabilities accounted for using the fair value option, such as public and private fixed maturities. As market quotes generally are not readily available or accessible for these securities, their fair value measures are determined utilizing relevant information generated by market transactions involving comparable securities and often are based on model pricing techniques that effectively discount prospective cash flows to present value using appropriate sector-adjusted credit spreads commensurate with the security’s duration, also taking into consideration issuer-specific credit quality and liquidity. Segregated securities classified as Level 2 are U.S. Treasury bills segregated by AB in a special reserve bank custody account for the exclusive benefit of brokerage customers, as required by Rule 15c3-3 of the Exchange Act and for which fair values are based on quoted yields in secondary markets.

Observable inputs generally used to measure the fair value of securities classified as Level 2 include benchmark yields, reported secondary trades, issuer spreads, benchmark securities and other reference data. Additional observable inputs are used when available, and as may be appropriate, for certain security types, such as prepayment, default, and collateral information for the purpose of measuring the fair value of mortgage- and asset-backed securities. The Company’s AAA-rated mortgage- and asset-backed securities are classified as Level 2 for which the observability of market inputs to their pricing models is supported by sufficient, albeit more recently contracted, market activity in these sectors.

Certain Company products, such as the SCS, EQUI-VEST variable annuity products, IUL and the MSO fund available in some life contracts, offer investment options which permit the contract owner to participate in the performance of an index, ETF or commodity price. These investment options, which depending on the product and on the index selected, can currently have one, three, five or six year terms, provide for participation in the performance of specified indices, ETF or commodity price movement up to a segment-specific declared maximum rate. Under certain conditions that vary by product, e.g., holding these segments for the full term, these segments also shield policyholders from some or all negative investment performance associated with these indices, ETF or commodity prices. These investment options have defined formulaic liability amounts, and the current values of the option component of these segment reserves are classified as Level 2 embedded derivatives. The fair values of these embedded derivatives are based on data obtained from independent valuation service providers.

Financial Instruments Classified as Level 3

The Company’s investments classified as Level 3 primarily include corporate debt securities and financial assets and liabilities accounted for using the fair value option, such as private fixed maturities and asset-backed securities. Determinations to classify fair value measures within Level 3 of the valuation hierarchy generally are based upon the significance of the unobservable factors to the overall fair value measurement. Included in the Level 3 classification are fixed maturities with indicative pricing obtained from brokers that otherwise could not be corroborated to market observable data.

The Company also issues certain benefits on its variable annuity products that are accounted for as derivatives and are also considered Level 3. The GMIBNLG feature allows the policyholder to receive guaranteed minimum lifetime annuity payments based on predetermined annuity purchase rates applied to the contract’s benefit base if and when the contract account value is depleted and the NLG feature is activated. The GMWB feature allows the policyholder to withdraw at minimum, over the life of the contract, an amount based on the contract’s benefit base. The GWBL feature allows the policyholder to withdraw, each year for the life of the contract, a specified annual percentage of an amount based on the contract’s benefit base. The GMAB feature increases the contract account value at the end of a specified period to a GMAB base. The GIB feature provides a lifetime annuity based on predetermined annuity purchase rates if and when the contract account value is depleted. This lifetime annuity is based on predetermined annuity purchase rates applied to a GIB base.

Level 3 also includes the GMIB reinsurance contract assets, which are accounted for as derivative contracts. The GMIB reinsurance contract asset and liabilities’ fair value reflects the present value of reinsurance premiums, net of recoveries, and risk margins over a range of market consistent economic scenarios while GMxB derivative features liability reflects the present value of expected future payments (benefits) less fees, adjusted for risk margins and nonperformance risk, attributable to GMxB derivative features’ liability over a range of market-consistent economic scenarios. 

Also included are the Amounts due from Reinsurers related to the GMIB NLG product features (GMIB NLG Reinsurance). The fair value reflects the present value of reinsurance premiums, net of recoveries, adjusted for risk margins and nonperformance risk over a range of market consistent economic scenarios.

The valuations of the GMIB reinsurance contract asset, GMIB NLG Reinsurance and GMxB derivative features liability incorporate significant non-observable assumptions related to policyholder behavior, risk margins and projections of equity Separate Accounts funds. The credit risks of the counterparty and of the Company are considered in determining the fair values of its GMIB reinsurance contract asset, GMIB NLG Reinsurance and GMxB derivative features liability positions, respectively, after taking into account the effects of collateral arrangements. Incremental adjustment to the US Treasury curve for non-performance risk is made to the fair values of the GMIB reinsurance contract asset, GMIB NLG Reinsurance and GMIBNLG feature to reflect the claims-paying ratings of counterparties and the Company. Equity and fixed income volatilities were modeled to reflect current market volatilities. Due to the unique, long duration of the GMIBNLG feature and GMIB NLG Reinsurance , adjustments were made to the equity volatilities to remove the illiquidity bias associated with the longer tenors and risk margins were applied to the non-capital markets inputs to the GMIBNLG valuations.

After giving consideration to collateral arrangements, the impact to the fair value of its GMIB reinsurance contract asset was a decrease of $107 million and $102 million as of December 31, 2021 and December 31, 2020, respectively, to recognize incremental counterparty non-performance risk and the impact to the fair value of its GMIB reinsurance contract liabilities was a decrease of $15 million and $19 million as of December 31, 2021 and December 31, 2020, respectively, to recognize its own incremental non-performance risk.

After giving consideration to collateral arrangements, the impact to the fair value of its Amounts due from Reinsurers was a decrease of $210 million at December 31, 2021 to recognize incremental counterparty non-performance risk.

Lapse rates are adjusted at the contract level based on a comparison of the actuarial calculated guaranteed values and the current policyholder account value, which include other factors such as considering surrender charges. Generally, lapse rates are assumed to be lower in periods when a surrender charge applies. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in-the-money contracts are less likely to lapse. For valuing the embedded derivative, lapse rates vary throughout the period over which cash flows are projected.

The Company’s Level 3 liabilities include contingent payment arrangements associated with acquisitions in 2016 and 2019 by AB. At each reporting date, AB estimates the fair values of the contingent consideration expected to be paid based upon revenue and discount rate projections, using unobservable market data inputs, which are included in Level 3 of the valuation hierarchy. The Company’s consolidated VIEs/VOEs hold investments that are classified as Level 3, primarily corporate bonds that are vendor priced with no ratings available, bank loans, non-agency collateralized mortgage obligations and asset-backed securities.

Transfers of Financial Instruments Between Levels 2 and 3

During the year ended December 31, 2021, fixed maturities with fair values of $785 million were transferred out of Level 3 and into Level 2 principally due to the availability of trading activity and/or market observable inputs to measure and validate their fair values. In addition, fixed maturities with fair value of $27 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 6.2% of total equity as of December 31, 2021.

During the year ended December 31, 2020, fixed maturities with fair values of $103 million were transferred out of Level 3 and into Level 2 principally due to the availability of trading activity and/or market observable inputs to measure and validate their fair values. In addition, fixed maturities with fair value of $189 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 1.7% of total equity as of December 31, 2020.

The tables below present reconciliations for all Level 3 assets and liabilities and changes in unrealized gains (losses) for the years ended December 31, 2021, 2020 and 2019, respectively.

Level 3 Instruments - Fair Value Measurements

	Corporate		State and Political Subdivisions		Asset-backed		CMBS		Trading Securities, at Fair Value		Fixed maturities, at FVO
	(in millions)
Balance, January 1, 2021	$	1,702	$	39	$	20	$	—	$	39	$	80
Total gains and (losses), realized and unrealized, included in:
Net income (loss) as:
Net investment income (loss)	5		—		—		—		—		5
Investment gains (losses), net	(16)		—		—		—		26		—
Subtotal	(11)		—		—		—		26		5
Other comprehensive income (loss)	34		(2)		—		—		—
Purchases	938		—		6		20		—		211
Sales	(473)		(2)		(18)		—		—		(23)
Activity related to consolidated VIEs/VOEs	—		—		—		—		—
Transfers into Level 3 (1)	27		—		—		—		—		—
Transfers out of Level 3 (1)	(713)		—		—		—		—		(72)
Balance, December 31, 2021	$	1,504	$	35	$	8	$	20	$	65	$	201
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2)	$	—	$	—	$	—	$	—	$	26	$	5
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2)	$	28	$	(2)	$	—	$	—	$	—	$	—
Balance, January 1, 2020	$	1,257	$	39	$	100	$	—	$	36	$	—
Total gains and (losses), realized and unrealized, included in:
Net income (loss) as:
Net investment income (loss)	4		—		—		—		—		—
Investment gains (losses), net	(16)		—		—		—		3		—
Subtotal	(12)		—		—		—		3		—
Other comprehensive income (loss)	(17)		2		—		—		—		—
Purchases	514		—		20		—		—		81
Sales	(226)		(2)		—		—		—		(1)

	Corporate		State and Political Subdivisions		Asset-backed		CMBS		Trading Securities, at Fair Value		Fixed maturities, at FVO
	(in millions)
Activity related to consolidated VIEs/VOEs	—								—
Transfers into Level 3 (1)	189		—		—		—		—		—
Transfers out of Level 3 (1)	(3)		—		(100)		—		—		—
Balance, December 31, 2020	$	1,702	$	39	$	20	$	—	$	39	$	80
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2)	$	—	$	—	$	—	$	—	$	3	$	—
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2)	$	(18)	$	2	$	—	$	—	$	—	$	—
Balance, January 1, 2019	$	1,186	$	39	$	519	$	—	$	64	$	—
Total gains (losses), realized and unrealized, included in:
Income (loss) as:
Net investment income (loss)	4		—		—		—		—		—
Investment gains (losses), net	—		1		—		—		6		—
Subtotal	4		1		—		—		6		—
Other comprehensive income (loss)	5		2		1		—		—		—
Purchases	274		—		100		—		—		—
Sales	(122)		(3)		(84)		—		(5)		—
Transfers into Level 3 (1)	14		—		—		—		—		—
Transfers out of Level 3 (1)	(104)		—		(436)		—		(29)		—
Balance, December 31, 2019	$	1,257	$	39	$	100	$	—	$	36	$	—
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2)	$	—	$	—	$	—	$	—	$	6	$	—
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2)	$	4	$	3	$	—	$	—	$	—	$	—

_____________

(1)Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values.

(2)For instruments held as of December 31, 2021 or December 31, 2020, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income.

	Other Equity Investments (9)		GMIB Reinsurance  Contract Asset		Amounts Due from Reinsurers		Separate Accounts Assets		GMxB Derivative Features Liability		Contingent Payment Arrangement
	(in millions)
Balance, January 1, 2021	$	84	$	2,488	$	—	$	1	$	(11,131)	$	(28)
Realized and unrealized gains (losses), included in Net income (loss) as:
Investment gains (losses), reported in net investment income	21		—		—		—		—		—
Net derivative gains (losses) (1) (6)	—		(625)		517		—		2,841		—
Total realized and unrealized gains (losses)	21		(625)		517		—		2,841		—
Other comprehensive income (loss)	—		—		—		—		—		—

	Other Equity Investments (9)		GMIB Reinsurance  Contract Asset		Amounts Due from Reinsurers		Separate Accounts Assets		GMxB Derivative Features Liability		Contingent Payment Arrangement
	(in millions)
Purchases (2)	8		43		74		1		(463)		(7)
Sales (3)	(92)		(58)		(35)		—		88		—
Settlements (4)	—		—		—		—		—		—
Other (7)	—		—		5,259		—		—		—
Activity related to consolidated VIEs/VOEs	(4)		—		—		—		—		(3)
Transfers into Level 3 (5)	—		—				—		—		—
Transfers out of Level 3 (5)	(1)		—		—		(1)		140		—
Balance, December 31, 2021	$	16	$	1,848	$	5,815	$	1	$	(8,525)	$	(38)
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (8)	$	2	$	(625)	$	517	$	—	$	2,841	$	—
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (8)	$	—	$	—	$	—	$	—	$	—	$	—
Balance, January 1, 2020	$	113	$	2,139	$	—	$	—	$	(8,502)	$	(23)
Realized and unrealized gains (losses), included in Net income (loss) as:	—		—		—		—		—		—
Investment gains (losses), reported in net investment income	(8)		—		—		—		—		—
Net derivative gains (losses)	—		417		—		—		(2,253)		—
Total realized and unrealized gains (losses)	(8)		417		—		—		(2,253)		—
Other comprehensive income (loss)	—		—		—		—		—		—
Purchases (2)	9		43		—		1		(451)		(4)
Sales (3)	(26)		(79)		—		—		75		—
Settlements (4)	—		—		—		—		—		1
Change in estimate	—		(32)		—		—		—		1
Activity related to consolidated VIEs/VOEs	(4)		—		—		—		—		(3)
Transfers into Level 3 (5)	—		—		—		—		—		—
Transfers out of Level 3 (5)	—		—		—		—		—		—
Balance, December 31, 2020	$	84	$	2,488	$	—	$	1	$	(11,131)	$	(28)
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (8)	$	(8)	$	417	$	74	$	1	$	(2,253)	$	(7)

	Other Equity Investments (9)		GMIB Reinsurance  Contract Asset		Amounts Due from Reinsurers		Separate Accounts Assets		GMxB Derivative Features Liability		Contingent Payment Arrangement
	(in millions)
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (8)	$	—	$	—	$	—	$	—	$	—	$	—
Balance, January 1, 2019	$	93	$	1,733	$	—	$	21	$	(5,674)	$	(7)
Total gains (losses), realized and unrealized, included in:
Realized and unrealized gains (losses), included in Net income (loss) as:	$	—	$	—	$	—	$	—	$	—	$	—
Investment gains (losses), net	23		—		—		—		—		—
Net derivative gains (losses)	—		433		—		—		(2,442)		—
Non-performance risk (1)	—		—		—		—		—		—
Total realized and unrealized gains (losses)	23		433		—		—		(2,442)		—
Other comprehensive income (loss)	—		—		—		—		—		—
Purchases (2)	5		45		—		—		(427)		(17)
Sales (3)	(5)		(72)		—		(1)		41		—
Settlements (4)	—		—		—		(2)		—		1
Change in estimate	—		—		—		—		—		3
Activity related to consolidated VIEs/VOEs	(3)		—		—		—		—		(3)
Transfers into Level 3 (6)	—		—		—		—		—		—
Transfers out of Level 3 (6)	—		—		—		(18)		—		—
Balance, December 31, 2019	$	113	$	2,139	$	—	$	—	$	(8,502)	$	(23)
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (8)	$	23	$	433	$	—	$	—	$	(2,442)	$	—
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (8)	$	—	$	—	$	—	$	—	$	—	$	—

______________

(1)For the years ended December 31, 2021 and 2020, the Company’s non-performance risk impact of $213 million and $(764) million for the GMxB Derivative Features Liability, $(23) million and $7 million for the GMIB Reinsurance Contract Asset, and $(19) million and $0 million for the Amounts Due from Reinsurers, respectively, is recorded through Net derivative gains (losses).

(2)For the GMIB reinsurance contract asset, Amounts Due from Reinsurers and GMxB derivative features liability, represents attributed fee.

(3)For the GMIB reinsurance contract asset and Amounts Due from Reinsurers, represents recoveries from reinsurers and for GMxB derivative features liability represents benefits paid.

(4)For contingent payment arrangements, it represents payments under the arrangement.

(5)Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values.

(6)GMxB Derivative Features Liability excludes a $45 million settlement fee on CS Life reinsurance contract.

(7)Represents the opening ceded balance from the Venerable Transaction of the GMxB with no lapse guarantee riders.

(8)For instruments held as of December 31, 2021, December 31, 2020 and December 31, 2019, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income.

(9)Other Equity Investments include other invested assets.

Quantitative and Qualitative Information about Level 3 Fair Value Measurements

The following tables disclose quantitative information about Level 3 fair value measurements by category for assets and liabilities as of December 31, 2021 and December 31, 2020, respectively.

Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2021

	Fair Value		Valuation Technique	Significant Unobservable Input	Range	Weighted Average (2)
	(in millions)
Assets:
Investments:
Fixed maturities, AFS:
Corporate	$	258	Matrix pricing model	Spread over Benchmark	20 bps - 270 bps	144 bps
	888		Market comparable  companies	EBITDA multiples Discount rate Cash flow multiples Loan to value	4.9x - 62.3x 6.2% - 21.5% 0.5x - 10.0x 3.1% - 63.4%	13.0x 9.1% 5.5x 30.8%
Trading Securities, at Fair Value	65		Discounted Cash Flow	Earnings multiple Discount factor Discount years	7.3x 10.00% 11
Other equity investments	4		Market comparable companies	Revenue multiple	7.8x - 10.3x	9.5x
GMIB reinsurance contract asset	1,848		Discounted cash flow	Lapse rates Withdrawal Rates GMIB Utilization Rates Non-performance risk Volatility rates - Equity Mortality: Ages 0-40 Ages 41-60 Ages 61-115	0.45%-20.86% 0.27%-8.66% 0.04%-60.44% 57 bps - 93 bps 11%-31% 0.01%-0.17% 0.06%-0.53% 0.31%-40.00%	2.65% 0.93% 5.27% 60 bps 24% 2.79% (same for all ages) (same for all ages)
Amount Due from Reinsurers	5,813		Discounted Cash Flow	Lapse rates Withdrawal Rates GMIB Utilization Rates Non-performance risk (bps) Volatility rates - Equity Mortality: Ages 0-40 Ages 41-60 Ages 61-115	0.45%-20.86% 0.27%-8.66% 0.04%-60.44% 37 bps 11%-31% 0.01%-0.17% 0.06%-0.53% 0.31%-40.00%	1.70% 1.18% 7.20% 37 bps 24% 2.17% (same for all ages) (same for all ages)
Liabilities:

	Fair Value	Valuation Technique	Significant Unobservable Input	Range	Weighted Average (2)
AB Contingent Consideration Payable	38	Discounted cash flow	Expected revenue growth rates Discount rate	2.0% - 83.9% 1.9% - 10.4%	11.9% 7.0%
GMIBNLG	8,503	Discounted cash flow	Non-performance risk Lapse rates Withdrawal rates Annuitization rates Mortality rates (1): Ages 0 - 40 Ages 41-60 Ages 61-115	111 bps 1.04%-23.57% 0.27%-8.66% 0.03%-100.00% 0.01%-0.19% 0.07%-0.57% 0.44%-43.60%	111 bps 3.55% 1.04% 5.24% 1.62% (same for all ages) (same for all ages)
GWBL/GMWB	99	Discounted cash flow	Lapse rates Withdrawal Rates Utilization Rates Volatility rates - Equity Non-performance risk(bps)	0.60%-20.86% 0.00%-8.00% 100% once starting 11%-31% 111 bps	2.65% 0.93% 24%
GIB	(75)	Discounted cash flow	Lapse rates Withdrawal Rates Utilization Rates Volatility rates - Equity Non-performance risk(bps)	0.60%-20.86% 0.13%-8.66% 0.04%-100.00% 11% - 31% 111 bps	2.65% 0.93% 5.27% 24%
GMAB	(3)	Discounted cash flow	Lapse rates Volatility rates - Equity Non-performance risk(bps)	0.60%-20.86% 11%-31% 111 bps	2.65% 24%

______________

(1)Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives.

(2)For lapses, withdrawals, and utilizations the rates were weighted by counts; for mortality weighted average rates are shown for all ages combined; and for withdrawals the weighted averages were based on an estimated split of partial withdrawal and dollar-for-dollar withdrawals.

Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2020

	Fair Value		Valuation Technique	Significant Unobservable Input	Range	Weighted Average (2)
	(in millions)
Assets:
Investments:
Fixed maturities, AFS:
Corporate	$	34	Matrix pricing model	Spread over benchmark	45 bps - 195 bps	160 bps
	1,148		Market comparable companies	EBITDA multiples  Discount rate  Cash flow multiples	3.5x - 33.1x 5.60% - 28.40% 1.9x-25.0x	10.8x 8.60% 6.8x
Trading Securities, at Fair Value	39		Discounted cash flow	Earnings multiple Discounts factor Discount years	8.2x 10.00% 11
Other equity investments	2		Market comparable companies	Revenue multiple	9.7x - 26.4x	18.5x

	Fair Value	Valuation Technique	Significant Unobservable Input	Range	Weighted Average (2)
	(in millions)
GMIB reinsurance contract asset	2,488	Discounted cash flow	Non-performance risk Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 60 - 115	43 - 85 bps 0.6% - 16% 0% - 2% 0% - 61% 7% - 32% 0.01% - 0.18% 0.07% - 0.54% 0.42% - 42.20%	50 bps 1.69% 0.91% 5.82% 24% 2.80% (same for all ages) (same for all ages)
Liabilities:
AB Contingent Consideration Payable	28	Discounted cash flow	Expected revenue growth rates Discount rate	0.7% - 50.0% 1.9% - 10.4%	4.9% 8.0%
GMIBNLG	10,713	Discounted cash flow	Non-performance risk Lapse rates Withdrawal rates Annuitization rates Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 60 - 115	96.0 bps 1.1% - 25.7% 0.4% - 2% 0% - 100% 0.01% - 0.19% 0.06% - 0.53% 0.41% - 41.39%	3.19% 0.93% 5.51% 1.56% (same for all ages) (same for all ages)
Assumed GMIB Reinsurance Contracts	195	Discounted cash flow	Non-performance risk Lapse rates Withdrawal rates (Age 0 - 85) Withdrawal rates (Age 86+) Utilization rates Volatility rates - Equity	60 - 133 bps 1.1% - 11.1% 0.6% - 22.2% 1.1% - 100% 0% -30% 7%-32%	99 bps 1.69% 0.91% (same for all ages) 5.82% 24%
GWBL/GMWB	190	Discounted cash flow	Non-performance risk Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity	96.0 bps 0.8%-16% 0%-8% 100% once starting 7%-32%	1.69% 0.91% 24%
GIB	31	Discounted cash flow	Non-performance risk Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity	96.0 bps 0.8%-15.6% 0%-2% 0%-100% 7%-32%	1.69% 0.91% 5.82% 24%
GMAB	2	Discounted cash flow	Non-performance risk Lapse rates Volatility rates - Equity	96.0 bps 0.8%-16% 7%-32%	1.69% 24%

______________

(1)Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives.

(2)For lapses, withdrawals, and utilizations the rates were weighted by counts; for mortality weighted average rates are shown for all ages combined; and for withdrawals the weighted averages were based on an estimated split of partial withdrawal and dollar-for-dollar withdrawals.

Level 3 Financial Instruments for which Quantitative Inputs are Not Available

Certain Privately Placed Debt Securities with Limited Trading Activity

Excluded from the tables above as of December 31, 2021 and December 31, 2020, respectively, are approximately $635 million and $743 million of Level 3 fair value measurements of investments for which the underlying quantitative inputs are not developed by the Company and are not readily available. These investments primarily consist of certain privately placed debt securities with limited trading activity, including residential mortgage- and asset-backed instruments, and their fair values generally reflect unadjusted prices obtained from independent valuation service providers and indicative, non-binding quotes obtained from third-party broker-dealers recognized as market participants. Significant increases or decreases in the fair value amounts received from these pricing sources may result in the Company’s reporting significantly higher or lower fair value measurements for these Level 3 investments.

•The fair value of private placement securities is determined by application of a matrix pricing model or a market comparable company value technique. The significant unobservable input to the matrix pricing model valuation technique is the spread over the industry-specific benchmark yield curve. Generally, an increase or decrease in spreads would lead to directionally inverse movement in the fair value measurements of these securities. The significant unobservable input to the market comparable company valuation technique is the discount rate. Generally, a significant increase (decrease) in the discount rate would result in significantly lower (higher) fair value measurements of these securities.

•Residential mortgage-backed securities classified as Level 3 primarily consist of non-agency paper with low trading activity. Included in the tables above as of December 31, 2021 and December 31, 2020, there were no Level 3 securities that were determined by application of a matrix pricing model and for which the spread over the U.S. Treasury curve is the most significant unobservable input to the pricing result. Generally, a change in spreads would lead to directionally inverse movement in the fair value measurements of these securities.

•Asset-backed securities classified as Level 3 primarily consist of non-agency mortgage loan trust certificates, including subprime and Alt-A paper, credit risk transfer securities, and equipment financings. Included in the tables above as of December 31, 2021 and December 31, 2020, there were no securities that were determined by the application of matrix-pricing for which the spread over the U.S. Treasury curve is the most significant unobservable input to the pricing result. Significant increases (decreases) in spreads would have resulted in significantly lower (higher) fair value measurements.

Other Equity Investments

Included in other equity investments classified as Level 3 are venture capital securities in the Technology, Media and Telecommunications industries. The fair value measurements of these securities include significant unobservable inputs including an enterprise value to revenue multiples and a discount rate to account for liquidity and various risk factors. Significant increases (decreases) in the enterprise value to revenue multiple inputs in isolation would have resulted in a significantly higher (lower) fair value measurement. Significant increases (decreases) in the discount rate would have resulted in a significantly lower (higher) fair value measurement.

GMIB Reinsurance Contract Asset, Amounts Due from Reinsurers and GMxB Derivative Features

Significant unobservable inputs with respect to the fair value measurement of the Level 3 GMIB reinsurance contract asset and the Level 3 liabilities identified in the table above are developed using Company data.

The significant unobservable inputs used in the fair value measurement of the Company’s GMIB reinsurance contract asset are lapse rates, withdrawal rates, and GMIB utilization rates. Significant increases in GMIB utilization rates or decreases in lapse or withdrawal rates in isolation would tend to increase the GMIB reinsurance contract asset.

Fair value measurement of the GMIB reinsurance contract asset, GMIB NLG Reinsurance and liabilities includes dynamic lapse and GMIB utilization assumptions whereby projected contractual lapses and GMIB utilization reflect the projected net amount of risks of the contract. As the net amount of risk of a contract increases, the assumed lapse rate decreases and the GMIB utilization increases. Increases in volatility would increase the asset and liabilities.

The significant unobservable inputs used in the fair value measurement of the Company’s GMIBNLG liability and GMIB NLG Reinsurance are lapse rates, withdrawal rates, GMIB utilization rates, adjustment for non-performance risk and NLG forfeiture rates. NLG forfeiture rates are caused by excess withdrawals above the annual GMIB accrual rate that cause the NLG to expire. Significant decreases in lapse rates, NLG forfeiture rates, adjustment for non-

performance risk and GMIB utilization rates would tend to increase the GMIBNLG liability and GMIB NLG Reinsurance, while decreases in withdrawal rates and volatility rates would tend to decrease the GMIBNLG liability and GMIB NLG Reinsurance.

The significant unobservable inputs used in the fair value measurement of the Company’s GMWB and GWBL liability are lapse rates and withdrawal rates. Significant increases in withdrawal rates or decreases in lapse rates in isolation would tend to increase these liabilities. Increases in volatility would increase these liabilities.

Carrying Value of Financial Instruments Not Otherwise Disclosed in Note 3 and Note 4 of the Notes to these Consolidated Financial Statements

The carrying values and fair values as of December 31, 2021 and December 31, 2020 for financial instruments not otherwise disclosed in Note 3 and Note 4 of the Notes to these Consolidated Financial Statements are presented in the table below.

Carrying Values and Fair Values for Financial Instruments Not Otherwise Disclosed

	Carrying Value		Fair Value
			Level 1		Level 2		Level 3		Total
	(in millions)
December 31, 2021:
Mortgage loans on real estate	$	14,033	$	—	$	—	$	14,308	$	14,308
Policy loans	$	4,024	$	—	$	—	$	5,050	$	5,050
Policyholders’ liabilities: Investment contracts (3)	$	2,035	$	—	$	—	$	2,103	$	2,103
FHLB funding agreements	$	6,647	$	—	$	6,679	$	—	$	6,679
FABN funding agreements	$	6,689	$	—	$	6,626	$	—	$	6,626
Short-term and long-term debt (2)	$	3,839	$	—	$	4,544	$	—	$	4,544
Separate Accounts liabilities	$	11,620	$	—	$	—	$	11,620	$	11,620
December 31, 2020:
Mortgage loans on real estate	$	13,159	$	—	$	—	$	13,491	$	13,491
Policy loans (1)	$	4,118	$	—	$	—	$	5,352	$	5,352
Policyholders’ liabilities: Investment contracts (1)	$	2,198	$	—	$	—	$	2,416	$	2,416
FHLB funding agreements	$	6,897	$	—	$	6,990	$	—	$	6,990
FABN funding agreements	$	1,939	$	—	$	1,971	$	—	$	1,971
Short-term and long-term debt	$	4,115	$	—	$	5,065	$	—	$	5,065
Separate Accounts liabilities	$	10,081	$	—	$	—	$	10,081	$	10,081

_____________

(1)Excludes amounts reclassified as HFS.

(2)Excludes CLO short-term debt of $92 million which is inclusive as fair valued within Notes issued by consolidated VIE’s, at fair value using the fair value option.

(3) As of December 31, 2021, reflects transfer of certain policyholders account balances to future policyholder benefits and other policyholders liabilities related to structured settlement contracts.

Mortgage Loans on Real Estate

Fair values for commercial and agricultural mortgage loans on real estate are measured by discounting future contractual cash flows to be received on the mortgage loan using interest rates at which loans with similar characteristics and credit quality would be made. The discount rate is derived based on the appropriate U.S. Treasury rate with a like term to the remaining term of the loan to which a spread reflective of the risk premium associated with the specific loan is added. Fair values for mortgage loans anticipated to be foreclosed and problem mortgage loans are limited to the fair value of the underlying collateral, if lower.

Policy Loans

The fair value of policy loans is calculated by discounting expected cash flows based upon the U.S. Treasury yield curve and historical loan repayment patterns.

Short-term and Long-term Debt

The Company’s short-term debt primarily includes commercial paper with short-term maturities and carrying value approximates fair value. The fair values for the Company’s long-term debt are determined by Bloomberg’s evaluated pricing service, which uses direct observations or observed comparables.

FHLB Funding Agreements

The fair values of the Company’s FHLB funding agreements are determined by discounted cash flow analysis based on the indicative funding agreement rates published by the FHLB.

FABN Funding Agreements

The fair values of Equitable Financial’s FABN funding agreements are determined by Bloomberg’s evaluated pricing service, which uses direct observations or observed comparables.

Policyholder Liabilities - Investment Contracts and Separate Accounts Liabilities

The fair values for deferred annuities and certain annuities, which are included in Policyholders’ account balances, and liabilities for investment contracts with fund investments in Separate Accounts, are estimated using projected cash flows discounted at rates reflecting current market rates. Significant unobservable inputs reflected in the cash flows include lapse rates and withdrawal rates. Incremental adjustments may be made to the fair value to reflect non-performance risk. Certain other products such as the Company’s association plans contracts, supplementary contracts not involving life contingencies, Access Accounts and Escrow Shield Plus product reserves are held at book value.

Financial Instruments Exempt from Fair Value Disclosure or Otherwise Not Required to be Disclosed

Exempt from Fair Value Disclosure Requirements

Certain financial instruments are exempt from the requirements for fair value disclosure, such as insurance liabilities other than financial guarantees and investment contracts, limited partnerships accounted for under the equity method and pension and other postretirement obligations.

Otherwise Not Required to be Included in the Table Above

The Company’s investment in COLI policies are recorded at their cash surrender value and are therefore not required to be included in the table above. See Note 2 of the Notes to these Consolidated Financial Statements for further description of the Company’s accounting policy related to its investment in COLI policies.

XML

INSURANCE LIABILITIES

12 Months Ended

Dec. 31, 2021

Insurance [Abstract]

INSURANCE LIABILITIES

INSURANCE LIABILITIES

Variable Annuity Contracts – GMDB, GMIB, GIB and GWBL and Other Features

The Company has certain variable annuity contracts with GMDB, GMIB, GIB and GWBL and other features in-force that guarantee one of the following:

•Return of Premium: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals);

•Ratchet: the benefit is the greatest of current account value, premiums paid (adjusted for withdrawals), or the highest account value on any anniversary up to contractually specified ages (adjusted for withdrawals);

•Roll-Up: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals) accumulated at contractually specified interest rates up to specified ages;

•Combo: the benefit is the greater of the ratchet benefit or the roll-up benefit, which may include either a five year or an annual reset; or

•Withdrawal: the withdrawal is guaranteed up to a maximum amount per year for life.

Liabilities for Variable Annuity Contracts with GMDB and GMIB Features without NLG Rider Feature

The change in the liabilities for variable annuity contracts with GMDB and GMIB features and without a NLG feature are summarized in the tables below. The amounts for the direct contracts (before reinsurance ceded) and assumed contracts are reflected in the consolidated balance sheets in future policy benefits and other policyholders’ liabilities. The amounts for the ceded contracts are reflected in the consolidated balance sheets in amounts due from reinsurers. The amounts for the ceded GMIB that are reflected in the consolidated balance sheets in GMIB reinsurance contract asset are at fair value.

Change in Liability for Variable Annuity Contracts with GMDB and GMIB Features and No NLG Feature

Year Ended December 31, 2021, 2020 and 2019

	GMDB						GMIB
	Direct		Assumed		Ceded		Direct		Assumed		Ceded
	(in millions)
Balance, January 1, 2019	$	4,662	$	82	$	(113)	$	3,746	$	184	$	(1,733)
Paid guarantee benefits	(438)		(21)		14		(256)		7		72
Other changes in reserve	556		15		(5)		1,183		(4)		(478)
Balance, December 31, 2019	$	4,780	$	76	$	(104)	$	4,673	$	187	$	(2,139)
Paid guarantee benefits	(495)		(22)		15		(293)		15		79
Other changes in reserve	812		18		1		1,646		(6)		(428)
Balance, December 31, 2020	$	5,097	$	72	$	(88)	$	6,026	$	196	$	(2,488)
Paid guarantee benefits	(461)		(12)		113		(377)		(49)		58
Other changes in reserve	315		14		(65)		243		(7)		603
Impact of the Venerable Transaction (1) (2)	—		(74)		(2,176)		—		(140)		(2,141)
Balance, December 31, 2021	$	4,951	$	—	$	(2,216)	$	5,892	$	—	$	(3,968)

_____________

(1)Change in Assumed is driven by the sale of CSLRC to Venerable.

(2)Includes the impact as of June 1, 2021 on the ceded reserves to Venerable. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction.

Liabilities for Embedded and Freestanding Insurance Related Derivatives

The liability for the GMxB derivative features, the liability for SCS, SIO, MSO and IUL indexed features and the asset and liability for the GMIB reinsurance contracts and amounts due from reinsurers related to GMIB NLG product features (GMIB NLG Reinsurance) are considered embedded or freestanding insurance derivatives and are reported at fair value. For the fair value of the assets and liabilities associated with these embedded or freestanding insurance derivatives, see Note 8 of the Notes to these Consolidated Financial Statements.

Account Values and Net Amount at Risk

Account Values and NAR for direct variable annuity contracts in force with GMDB and GMIB features as of December 31, 2021 are presented in the following tables by guarantee type. For contracts with the GMDB feature, the NAR in the event of death is the amount by which the GMDB feature exceeds the related Account Values. For contracts with the GMIB feature, the NAR in the event of annuitization is the amount by which the present value of the GMIB benefits exceed the related Account Values, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. Since variable annuity contracts with GMDB features may also offer GMIB guarantees in the same contract, the GMDB and GMIB amounts listed are not mutually exclusive.

Direct Variable Annuity Contracts with GMDB and GMIB Features

as of December 31, 2021

	Guarantee Type
	Return of Premium			Ratchet			Roll-Up			Combo			Total
	(in millions, except age and interest rate)
Variable annuity contracts with GMDB features
Account Values invested in:
General Account	$	16,188		$	84		$	51		$	156		$	16,479
Separate Accounts	59,819			9,860			3,412			34,486			107,577
Total Account Values	$	76,007		$	9,944		$	3,463		$	34,642		$	124,056
NAR, gross	$	90		$	30		$	1,333		$	15,732		$	17,185
NAR, net of amounts reinsured	$	86		$	26		$	937		$	7,948		$	8,997
Average attained age of policyholders (in years)	51.5			69.0			75.5			71.1			55.6
Percentage of policyholders over age 70	11.7		%	51.1		%	72.6		%	57.5		%	20.7		%
Range of contractually specified interest rates	N/A			N/A			3% - 6%			3% - 6.5%			3% - 6.5%
Variable annuity contracts with GMIB features
Account Values invested in:
General Account	$	—		$	—		$	16		$	202		$	218
Separate Accounts	—			—			26,443			36,833			63,276
Total Account Values	$	—		$	—		$	26,459		$	37,035		$	63,494
NAR, gross	$	—		$	—		$	632		$	9,093		$	9,725
NAR, net of amounts reinsured	$	—		$	—		$	202		$	3,708		$	3,910
Average attained age of policyholders (in years)	N/A			N/A			65.0			70.8			68.6
Weighted average years remaining until annuitization	N/A			N/A			6.0			0.6			2.7
Range of contractually specified interest rates	N/A			N/A			3% - 6%			3% - 6.5%			3% - 6.5%

For more information about the reinsurance programs of the Company’s GMDB and GMIB exposure, see Note 11 of the Notes to these Consolidated Financial Statements.

Separate Accounts Investments by Investment Category Underlying Variable Annuity Contracts with GMDB and GMIB Features

The total Account Values of variable annuity contracts with GMDB and GMIB features include amounts allocated to the guaranteed interest option, which is part of the General Account and variable investment options that invest through Separate Accounts in variable insurance trusts. The following table presents the aggregate fair value of assets, by major investment category, held by Separate Accounts that support variable annuity contracts with GMDB and GMIB features. The investment performance of the assets impacts the related Account Values and, consequently, the NAR associated with the GMDB and GMIB benefits and guarantees. Because the Company’s variable annuity contracts offer both GMDB and GMIB features, GMDB and GMIB amounts are not mutually exclusive.

Investment in Variable Insurance Trust Mutual Funds

	December 31,
	2021				2020
	GMDB		GMIB		GMDB		GMIB
Mutual Fund Type	(in millions)
Equity	$	52,771	$	20,015	$	46,850	$	18,771
Fixed income	5,391		2,507		5,506		2,701
Balanced	48,390		40,491		47,053		39,439
Other	1,025		263		1,111		275
Total	$	107,577	$	63,276	$	100,520	$	61,186

Hedging Programs for GMDB, GMIB, GIB and Other Features

The Company has a program intended to hedge certain risks associated first with the GMDB feature and with the GMIB feature of the Accumulator series of variable annuity products. The program has also been extended to cover other guaranteed benefits as they have been made available. This program utilizes derivative contracts, such as exchange-traded equity, currency and interest rate futures contracts, total return and/or equity swaps, interest rate swap and floor contracts, swaptions, variance swaps as well as equity options, that collectively are managed in an effort to reduce the economic impact of unfavorable changes in guaranteed benefits’ exposures attributable to movements in the capital markets. At the present time, this program hedges certain economic risks on products sold from 2001 forward, to the extent such risks are not externally reinsured.

These programs do not qualify for hedge accounting treatment. Therefore, gains (losses) on the derivatives contracts used in these programs, including current period changes in fair value, are recognized in net derivative gains (losses) in the period in which they occur, and may contribute to income (loss) volatility.

Variable and Interest-Sensitive Life Insurance Policies – NLG

The NLG feature contained in variable and interest-sensitive life insurance policies keeps them in force in situations where the policy value is not sufficient to cover monthly charges then due. The NLG remains in effect so long as the policy meets a contractually specified premium funding test and certain other requirements.

The change in the NLG liabilities, reflected in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets, is summarized in the table below.

	Direct Liability (1)
	Year Ended December 31,
	2021		2020		2019
	(in millions)
Beginning balance	$	1,022	$	898	$	813
Paid guarantee benefits	(84)		(39)		(20)
Other changes in reserves	158		163		127
Transfer to liabilities held-for-sale	—		—		$	(22)
Ending balance	$	1,096	$	1,022	$	898

_____________

(1)There were no amounts of reinsurance ceded in any period presented.

XML

LEASES

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

LEASES

LEASESThe Company's operating leases primarily consist of real estate leases for office space. The Company also has operating leases for various types of office furniture and equipment. For certain equipment leases, the Company applies a portfolio approach to effectively account for the RoU operating lease assets and liabilities. For lease agreements for which the lease term or classification was reassessed after the occurrence of a change in the lease terms or a modification of the lease that did not result in a separate contract, the Company elected to combine the lease and related non-lease components for its operating leases; however, the non-lease components associated with the Company’s operating leases are primarily variable in nature and as such are not included in the determination of the RoU operating lease asset and lease liability, but are recognized in the period in which the obligation for those payments is incurred.

The Company’s operating leases may include options to extend or terminate the lease, which are not included in the determination of the RoU operating asset or lease liability unless they are reasonably certain to be exercised. The Company's operating leases have remaining lease terms of 1 year to 15 years, some of which include options to extend the leases. The Company typically does not include its renewal options in its lease terms for calculating its RoU operating lease asset and lease liability as the renewal options allow the Company to maintain operational flexibility and the Company is not reasonably certain it will exercise these renewal options until close to the initial end date of the lease. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

As the Company's operating leases do not provide an implicit rate, the Company’s incremental borrowing rate, based on the information available at the lease commencement date, is used in determining the present value of lease payments.

The Company primarily subleases floor space within its New Jersey and New York lease properties to various third parties. The lease term for these subleases typically corresponds to the original lease term.

Balance Sheet Classification of Operating Lease Assets and Liabilities

		December 31,
	Balance Sheet Line Item	2021		2020
		(in millions)
Assets:
Operating lease assets	Other assets	$	637	$	691
Liabilities:
Operating lease liabilities	Other liabilities	$	768	$	855

The table below summarizes the components of lease costs for the years ended December 31, 2021, 2020 and 2019.

Lease Costs

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Operating lease cost	$	173	$	169	$	186
Variable operating lease cost	49		49		50
Sublease income	(55)		(56)		(72)
Short-term lease expense	—		—		2
Net lease cost	$	167	$	162	$	166

Maturities of lease liabilities as of December 31, 2021 are as follows:

Maturities of Lease Liabilities

	December 31, 2021
	(in millions)
Operating Leases:
2022	$	197
2023	183
2024	131
2025	60
2026	54
Thereafter	211
Total lease payments	836
Less: Interest	(68)
Present value of lease liabilities	$	768

During April 2019, AB signed a lease, which commences in 2024, relating to approximately 190,000 square feet of space in New York City. The estimated total base rent obligation (excluding taxes, operating expenses and utilities) over the 20 year lease term is approximately $448 million. During the fourth quarter of 2020, AB exercised an option to return a half floor of this space, which reduced the square footage from approximately 190,000 to 166,000 square feet and the base rent obligation from $448 million to $393 million.

During December 2020, Equitable Financial signed a 15-year lease which is expected to commence in 2023 once certain conditions of the lease are met, relating to approximately 130,000 square feet of space in New York City. In September 2021, Equitable Financial exercised its option to decrease the square footage under the lease by approximately 41,000 square feet, which reduced the square footage to approximately 89,000 square feet. Additionally, during December 2021, Equitable Financial amended its Syracuse office lease. The amendment included extending for an additional 5-year period, commencing January 1, 2024, approximately 143,000 square feet of space in Syracuse, NY.

The below table presents the Company’s weighted-average remaining operating lease term and weighted-average discount rate.

Weighted Averages - Remaining Operating Lease Term and Discount Rate

	December 31,
	2021		2020
Weighted-average remaining operating lease term	7 years		6 years
Weighted-average discount rate for operating leases	2.80	%	3.07	%

Supplemental cash flow information related to leases was as follows:

Lease Liabilities Information

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	209	$	210	$	222
Non-cash transactions:
Leased assets obtained in exchange for new operating lease liabilities	$	109	$	156	$	50

XML

REINSURANCE

12 Months Ended

Dec. 31, 2021

Reinsurance Disclosures [Abstract]

REINSURANCE

REINSURANCE

The Company assumes and cedes reinsurance with other insurance companies. The Company evaluates the financial condition of its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. Ceded reinsurance does not relieve the originating insurer of liability.

The following table summarizes the effect of reinsurance. The impact of the transactions described above results in a decrease to reinsurance assumed and an increase in reinsurance ceded.

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Direct premiums	$	970	$	929	$	1,068
Reinsurance assumed	189		222		220
Reinsurance ceded	(199)		(154)		(141)
Premiums	$	960	$	997	$	1,147
Direct charges and fee income	$	4,250	$	4,149	$	4,197
Reinsurance ceded	(613)		(414)		(419)
Policy charges and fee income	$	3,637	$	3,735	$	3,778
Direct policyholders’ benefits	$	3,843	$	5,826	$	4,711
Reinsurance assumed	238		241		240
Reinsurance ceded	(863)		(741)		(566)
Policyholders’ benefits	$	3,218	$	5,326	$	4,385
Direct interest credited to policyholders’ account balances	$	1,271	$	1,252	$	1,322
Reinsurance ceded	(52)		(30)		(59)
Interest credited to policyholders’ account balances	$	1,219	$	1,222	$	1,263

Ceded Reinsurance

The Company reinsures most of its new variable life, UL and term life policies on an excess of retention basis. The Company generally retains on a per life basis up to $25 million for single lives and $30 million for joint lives with the excess 100% reinsured. The Company also reinsures risk on certain substandard underwriting risks and in certain other cases.

On June 1, 2021, Holdings completed the sale of CSLRC to VIAC. Immediately following the closing of the Transaction, CSLRC and Equitable Financial entered into the Reinsurance Agreement, pursuant to which Equitable Financial ceded to CSLRC, on a combined coinsurance and modified coinsurance basis, legacy variable annuity policies sold by Equitable Financial between 2006-2008. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction.

As of December 31, 2021 and December 31, 2020, the Company had reinsured with non-affiliates in the aggregate approximately 47.6% and 2.6%, respectively, of its current exposure to the GMDB obligation on annuity contracts in-force and, subject to certain maximum amounts or caps in any one period, approximately 59.8% and 13.4% of its current liability exposure, respectively, resulting from the GMIB feature. For additional information, see Note 9 of the Notes to these Consolidated Financial Statements.

In addition to the above, the Company cedes substantially all of its group health business to a third-party insurer, cedes a portion of its extended term insurance and paid-up life insurance and substantially all of its individual disability income business through various coinsurance agreements.

Assumed Reinsurance

In addition to the sale of insurance products, the Company currently assumes risk from professional reinsurers. The Company also had a run-off portfolio of assumed reinsurance liabilities at CSLRC which was sold to Venerable in June

2021. The Company assumes accident, life, health, annuity (including products covering GMDB and GMIB benefits), aviation, special risk and space risks by participating in or reinsuring various reinsurance pools and arrangements.

The following table summarizes the ceded reinsurance GMIB reinsurance contracts, third-party recoverables, amount due to reinsurance and assumed reserves.

	December 31,
	2021		2020
	(in millions)
Ceded Reinsurance:
Estimated net fair values of ceded GMIB reinsurance contracts, considered derivatives (1)	$	1,848	$	2,488
Estimated net fair values of ceded GMIB NLG ceded reserves to Venerable (2)	5,813		—
Third-party reinsurance recoverables related to insurance contracts	14,679		4,566
Top reinsurers:
Venerable Insurance and Annuity Company (A- KBRA (IFRS) rating)	10,291		N/A
Zurich Life Insurance Company, Ltd. (AA- SAP rating)	1,318		1,421
Protective Life Insurance Company (AA- SAP rating)	1,153		1,184
RGA Reinsurance Company (AA- SAP rating))	1,138		1,143
Ceded group health reserves	40		48
Amount due to reinsurers	1,381		1,381
Top reinsurers:
RGA Reinsurance Company	1,212		1,135
Protective Life Insurance Company	111		116
Venerable Insurance and Annuity Company	27		N/A
Assumed Reinsurance:
Reinsurance assumed reserves	798		788
Estimated net fair values of assumed GMIB reserves (3)	—		195

______________

(1)The estimated fair values increased/(decreased) $(640) million, $349 million and $407 million for the years ended December 31, 2021, 2020 and 2019, respectively.

(2)Reported in amounts due from reinsurers. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable transaction.

(3)Change in Reinsurance assumed reserves is driven by the sale of CSLRC to Venerable.

XML

SHORT-TERM AND LONG-TERM DEBT

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

SHORT-TERM AND LONG-TERM DEBT

SHORT-TERM AND LONG-TERM DEBT

The following table sets forth the Company’s total consolidated borrowings. Short-term and long-term debt consists of the following:

	December 31,
	2021		2020
	(in millions)
Short-term debt:
CLO Warehousing Debt (1)	$	92	$	—
Total short-term debt	92		—
Long-term debt:
Senior Notes (5.0%, due 2048)	1,481		1,481
Senior Notes (4.35%, due 2028)	1,490		1,489
Senior Notes (3.9%, due 2023)	519		796
Senior Debentures, (7.0%, due 2028)	349		349
Total long-term debt	3,839		4,115
Total short-term and long-term debt	$	3,931	$	4,115

(1) CLO Warehousing Debt related to VIE consolidation of CLO investment.

As of December 31, 2021, the Company is in compliance with all debt covenants.

Short-term Debt

AB Commercial Paper

As of December 31, 2021 and December 31, 2020, AB had no commercial paper outstanding. The commercial paper is short term in nature, and as such, recorded value is estimated to approximate fair value (and considered a Level 2 security in the fair value hierarchy). Average daily borrowings for the commercial paper outstanding in 2021 were $157 million with a weighted average interest rate of 0.2%. Average daily borrowings for the commercial paper in 2020 were $83 million with a weighted average interest rate of 0.4%.

AB Revolver Credit Facility

AB has a $200 million committed, unsecured senior revolving credit facility (the "AB Revolver") with a leading international bank, which matured on November 16, 2021. The Revolver is available for AB's and SCB LLC's business purposes, including the provision of additional liquidity to meet funding requirements primarily related to SCB LLC's operations. Both AB and SCB LLC were able to draw directly under the Revolver and management did so from time to time. AB agreed to guarantee the obligations of SCB LLC under the Revolver. The Revolver contains affirmative, negative and financial covenants that were identical to those of the Credit Facility. Borrowings under the Revolver bear interest at a rate per annum, which could be, at AB's option, a rate equal to an applicable margin, which was subject to adjustment based on the credit ratings of AB, plus one of the following indices: London Interbank Offered Rate; a floating base rate; or the Federal Funds rate. As of December 31, 2021 and December 31, 2020, AB had no amounts outstanding under the AB Revolver. Average daily borrowings for 2021 and 2020 were $13 million and $17 million, with weighted average interest rates of 1.1% and 1.6%, respectively.

Long-term Debt

Holdings Senior Notes and Senior Debentures

On April 20, 2018, Holdings issued $800 million aggregate principal amount of 3.9% Senior Notes due 2023, $1.5 billion aggregate principal amount of 4.35% Senior Notes due 2028 and $1.5 billion aggregate principal amount of 5.0% Senior Notes due 2048 (together, the “Notes”). These amounts are recorded net of original issue discount and issuance costs. As of December 31, 2021 and 2020, the 3.9% Senior Notes due 2023 and 4.35% Senior Notes due 2028 remain outstanding. During 2021 Holdings made a principal prepayment of $280 million on the 3.9% Senior Notes due 2023,

As of December 31, 2021 and 2020, Holdings had outstanding $349 million aggregate principal amount of 7.0% Senior Debentures due 2028 (the “Senior Debentures”). On October 1, 2018, AXA Financial merged with and into its direct parent, Holdings, with Holdings continuing as the surviving entity( the “AXA Financial Merger”). As a result of the AXA Financial merger, Holdings assumed AXA Financial’s obligations under the Senior Debentures.

The Notes and Senior Debentures contain customary affirmative and negative covenants, including a limitation on certain liens and a limit on the Company’s ability to consolidate, merge or sell or otherwise dispose of all or substantially all of its assets. The Notes and Senior Debentures also include customary events of default (with customary grace periods, as applicable), including provisions under which, upon the occurrence of an event of default, all outstanding Notes and Senior Debentures may be accelerated. As of December 31, 2021, the Company was not in breach of any of the covenants.

Contingent Funding Arrangements

For information regarding activity pertaining to our contingent funding arrangements, see Note 17 of the Notes to these Consolidated Financial Statements.

Credit Facilities

Holdings Revolving Credit Facility

In February 2018, Holdings entered into a $2.5 billion five-year senior unsecured revolving credit facility with a syndicate of banks. In June 2021, Holdings entered into an amended and restated revolving credit agreement, which lowered the facility amount to $1.5 billion and extended the maturity date to June 24, 2026, among other changes. The revolving credit facility has a sub-limit of $1.5 billion for the issuance of letters of credit to support the life insurance business reinsured by EQ AZ Life Re. As of December 31, 2021, the Company had $0 million of undrawn letters of credit issued out of the $1.5 billion sub-limit for Equitable Financial as beneficiary.

Bilateral Letter of Credit Facilities

In February 2018, the Company entered into bilateral letter of credit facilities, each guaranteed by Holdings, with an aggregate principal amount of approximately $1.9 billion, with multiple counterparties. In June 2021, Holdings entered into amendments with each of the issuers of its bilateral letter of credit facilities to effect changes similar to those effected in the amended and restated revolving credit agreement. The respective facility limits of the bilateral letter of credit facilities remained unchanged. These facilities support the life insurance business reinsured by EQ AZ Life Re. The HSBC facility matures on February 16, 2024 and the rest of the facilities mature on February 16, 2026.

AB Credit Facility

AB has a $800 million committed, unsecured senior revolving credit facility (the “AB Credit Facility”) with a group of commercial banks and other lenders which had an original maturity date of September 27, 2023. On October 13, 2021 AB amended and restated the existing Credit Facility agreement, extending the maturity date from September 27, 2023 to October 13, 2026. There were no other significant changes included in the amendment.

The credit facility provides for possible increases in the principal amount by up to an aggregate incremental amount of $200 million. Any such increase is subject to the consent of the affected lenders. The AB Credit Facility is available for AB and SCB LLC for business purposes, including the support of AB’s commercial paper program. Both AB and SCB LLC can draw directly under the AB Credit Facility and AB management may draw on the AB Credit Facility from time to time. AB has agreed to guarantee the obligations of SCB LLC under the AB Credit Facility.

The AB Credit Facility contains affirmative, negative and financial covenants, which are customary for facilities of this type, including, restrictions on dispositions of assets, restrictions on liens, a minimum interest coverage ratio and a maximum leverage ratio. As of December 31, 2021, AB was in compliance with these covenants. The AB Credit Facility also includes customary events of default (with customary grace periods, as applicable), including provisions under which, upon the occurrence of an event of default, all outstanding loans may be accelerated and/or lender’s commitments may be terminated. Also, under such provisions, upon the occurrence of certain insolvency- or bankruptcy-related events of default, all amounts payable under the AB Credit Facility would automatically become immediately due and payable, and the lender’s commitments would automatically terminate.

Amounts under the Credit Facility may be borrowed, repaid and re-borrowed by us from time to time until the maturity of the facility. Voluntary prepayments and commitment reductions requested by AB are permitted at any time without a fee (other than customary breakage costs relating to the prepayment of any drawn loans) upon proper notice and subject to a minimum dollar requirement. Borrowings under the AB Credit Facility bear interest at a rate per annum, which will be, at AB’s option, a rate equal to an applicable margin, which is subject to adjustment based on the credit ratings of AB, plus one of the following indices: LIBOR; a floating base rate; or the Federal Funds rate.

As of December 31, 2021 and 2020, AB had no amounts outstanding under the AB Credit Facility. During the years ended the December 31, 2021 and 2020, AB and SCB LLC did not draw upon the AB Credit Facility.

On September 28, 2021, AB established a $100 million uncommitted line of credit with a financial institution. On October 11, 2021 AB established a $50 million uncommitted line of credit with a financial institution. Both uncommitted lines of credit are available for AB's and SCB LLC's business purposes. Both AB and SCB LLC can draw directly under these lines. AB has agreed to guarantee the obligations of SCB LLC under these lines of credit. As of December 31, 2021 , AB had no amounts outstanding under these lines of credit and not drawn upon them since their inception.

In addition, SCB LLC currently has three uncommitted lines of credit with three financial institutions. Two of these lines of credit permit borrowing up to an aggregate of approximately $165 million, with AB named as an additional borrower, while the other line has no stated limit. As of December 31, 2021 and 2020, SCB LLC had no outstanding balance on these lines of credit. Average daily borrowings of bank loans during 2021 and 2020 were $47 thousand and $1 million, respectively, with weighted average interest rates of approximately 0.9% and 1.6%, respectively.

XML

RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2021

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

Parties are considered to be related if one party has the ability to control or exercise significant influence over the other party in making financial or operating decisions.

Investment Management and Administrative Services Provided by EIM and EIMG to Related Trusts

EIMG and EIM provide investment management and administrative services to EQAT, EQ Premier VIP Trust, 1290 Funds and the Other AXA Trusts, all of which are considered related parties. Investment management and service fees earned are calculated as a percentage of assets under management and are recorded as revenue as the related services are performed.

Investment Management and Related Services Provided by AB to Related Mutual Funds

AB provides investment management and related services to mutual funds sponsored by AB. Revenues earned by AB from providing these services were as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Investment management and services fees	$	1,645	$	1,368	$	1,276
Distribution revenues	637		516		441
Other revenues - shareholder servicing fees	86		79		75
Other revenues - other	8		8		7
Total	$	2,376	$	1,971	$	1,799

Revenues and Expenses Transactions with Equitable Affiliates

The table below summarizes the expenses reimbursed to/from the Company and the fees received/paid by the Company in connection with certain services described above for the years ended December 31, 2021, 2020 and 2019.

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Revenue received or accrued for:
Investment management and administrative services provided to EQAT, EQ Premier VIP Trust, 1290 Funds and Other AXA Trusts	$	840	$	724	$	732
Total	$	840	$	724	$	732
Expenses paid or accrued for:
Investment management services provided by AXA Strategic Ventures Corporation	$	2	$	2	$	2
Total	$	2	$	2	$	2

Contribution to the Equitable Foundation

The company made no funding contributions the years ended 2021 and 2020. For the year ended December 31, 2019, Equitable Financial made a funding contribution to the Equitable Foundation of $25 million. The Equitable Foundation is the philanthropic arm of Equitable Financial.

XML

EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS

Pension Plans

Holdings and Equitable Financial Retirement Plans

Equitable Financial sponsors the Equitable 401(k) Plan, a qualified defined contribution plan for eligible employees and financial professionals. The plan provides for a company contribution, a company matching contribution, and a discretionary profit-sharing contribution. Expenses associated with this 401(k) Plan were $64 million, $49 million and $55 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Holdings sponsors the MONY Life Retirement Income Security Plan for Employees and Equitable Financial sponsors the Equitable Retirement Plan (the “ Equitable Financial QP”), both of which are frozen qualified defined benefit plans covering eligible employees and financial professionals. These pension plans are non-contributory, and their benefits are generally based on a cash balance formula and/or, for certain participants, years of service and average earnings over a specified period. Holdings and Equitable Financial also sponsor certain nonqualified defined benefit plans, including the Equitable Excess Retirement Plan, that provide retirement benefits in excess of the amount permitted under the tax law for the qualified plans. Holdings has assumed primary liability for both plans. Equitable Financial remains secondarily liable for its obligations under the Equitable Financial QP and would recognize such liability in the event Holdings does not perform.

Holdings and Equitable Financial use a December 31 measurement date for their pension plans.

AB Retirement Plans

AB maintains the Profit Sharing Plan for Employees of AB, a tax-qualified retirement plan for U.S. employees. Employer contributions under this plan are discretionary and generally are limited to the amount deductible for federal income tax purposes.

AB also maintains a qualified, non-contributory, defined benefit retirement plan covering current and former employees who were employed by AB in the United States prior to October 2, 2000 (the “AB Plan”). Benefits under the AB Plan are based on years of credited service, average final base salary, and primary Social Security benefits.

AB uses a December 31 measurement date for the AB Plan.

Contributions and Funding Policy

The Company’s funding policy for its qualified pension plans is to satisfy its funding obligations each year in an amount not less than the minimum required by ERISA, as amended by the Pension Act, and not greater than the maximum the Company can deduct for federal income tax purposes. For 2021, no cash contributions were made by Holdings or Equitable Financial to their respective qualified pension plans. Based on the funded status of the plans as of December 31, 2020, AB contributed $4 million to the AB Plan during 2021. AB currently estimates that it will not contribute to the AB Plan during 2022. No minimum funding contributions under ERISA are required to be made to the Holdings and Equitable Financial plans, and management does not expect to make any discretionary contributions to those plans during 2022.

Net Periodic Pension Expense

Components of net periodic pension expense for the Company’s qualified and non-qualified plans were as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Service cost	$	6	$	6	$	8
Interest cost	46		77		104
Expected return on assets	(154)		(147)		(152)
Actuarial (gain) loss	1		1		1
Net amortization	99		103		94
Impact of settlement	6		7		—
Net periodic pension expense	$	4	$	47	$	55

Changes in PBO

Changes in the PBO of the Company’s qualified and non-qualified plans were comprised of:

	2021		2020
	(in millions)
Projected benefit obligation, beginning of year	$	3,180	$	3,056
Service cost	—		—
Interest cost	45		77
Actuarial (gains)/losses (1)	(95)		272
Benefits paid	(198)		(203)
Plan amendments and curtailments	—		—
Settlements	(32)		(22)
Projected benefit obligation, end of year	$	2,900	3,180

______________

(1)Actuarial gains and losses are a product of changes in the discount rate as shown below.

The following table discloses the change in plan assets and the funded status of the Company’s qualified pension plans and non-qualified pension plans:

	2021		2020
	(in millions)
Pension plan assets at fair value, beginning of year	$	2,744	$	2,552
Actual return on plan assets	259		373
Contributions	—		—
Benefits paid	(165)		(165)
Annuity purchases	(30)		(16)
Pension plan assets at fair value, end of year	2,808		2,744
PBO	2,900		3,180
Excess of PBO over pension plan assets, end of year	$	92	$	436

Accrued pension costs of $93 million and $436 million as of December 31, 2021 and 2020, respectively, were recognized in the accompanying consolidated balance sheets to reflect the unfunded status of these plans.

	December 31,
	2021		2020
	(in millions)
Projected benefit obligation	$	2,900	$	3,180
Accumulated benefit obligation	2,900		3,180
Fair value of plan assets	$	2,808	$	2,744

Unrecognized Net Actuarial (Gain) Loss

The following table discloses the amounts included in AOCI as of December 31, 2021 and 2020 that have not yet been recognized as components of net periodic pension cost.

	December 31,
	2021		2020
	(in millions)
Unrecognized net actuarial (gain) loss	$	620	$	895
Unrecognized prior service cost (credit)	(1)		(1)
Unrecognized net transition obligation (asset)	—		—
Total	$	619	$	894

Pension Plan Assets

The fair values of qualified pension plan assets are measured and ascribed to levels within the fair value hierarchy in a manner consistent with the fair values of the Company’s invested assets that are measured at fair value on a recurring basis. See Note 8 of the Notes to these Consolidated Financial Statements for a description of the fair value hierarchy.

The following table discloses the allocation of the fair value of total qualified pension plan assets as of December 31, 2021 and 2020:

	December 31,
	2021		2020
Fixed maturities	47.2	%	47.2	%
Equity securities	29.7		32.1
Equity real estate	16.5		14.7
Cash and short-term investments	2.5		1.7
Other	4.1		4.3
Total	100.0	%	100.0	%

Qualified pension plan assets are invested with the primary objective of return, giving consideration to prudent risk. Guidelines regarding the allocation of plan assets are established by the respective Investment Committees for the plans and are designed with a long-term investment horizon. As of December 31, 2021, the qualified pension plans continued their investment allocation strategy to target a [50%- 50%] mix of long-duration bonds and “return-seeking” assets, including public equities, real estate, hedge funds, and private equity.

The following tables disclose the fair values of qualified pension plan assets and their level of observability within the fair value hierarchy as of December 31, 2021 and 2020, respectively.

	Level 1		Level 2		Level 3		Total
	(in millions)
December 31, 2021:
Fixed Maturities:
Corporate	$	—	$	842	$	—	$	842
U.S. Treasury, government and agency	—		426		—		426
States and political subdivisions	—		16		—		16
Foreign governments	—		18		—		18
Commercial mortgage-backed	—		—		—		—
Common equity, REITs and preferred equity	576		108		—		684
Mutual funds	62		—		—		62
Collective Trust	—		99		—		99
Derivatives, net	—		—		—		—
Cash and cash equivalents	19		—		—		19
Short-term investments	—		46		—		46
Total Assets at Fair Value	657		1,555		—		2,212
Investments measured at NAV	—		—		—		593
Total Investments at Fair Value	$	657	$	1,555	$	—	$	2,805
December 31, 2020:
Fixed Maturities:
Corporate	—		$	831	$	—	$	831
U.S. Treasury, government and agency	—		412		—		412
States and political subdivisions	—		16		—		16
Foreign governments	—		14		—		14
Commercial mortgage-backed	—		1		—		1
Common equity, REITs and preferred equity	622		113		—		735
Mutual funds	63		—		—		63
Collective Trust	—		98		—		98
Cash and cash equivalents	23		—		—		23
Short-term investments	—		21		—		21
Total Assets at Fair Value	708		1,506		—		2,214
Investments measured at NAV	—		—		—		536
Total Investments at Fair Value	$	708	$	1,506	$	—	$	2,750

The following table lists investments for which NAV is calculated; NAV is used as a practical expedient to determine the fair value of these investments as of December 31, 2021 and 2020.

Practical Expedient Disclosure as of December 31, 2021 and 2020

Investment	Fair Value		Redemption Frequency (If currently eligible)	Redemption Notice Period	Unfunded Commitments
	(in millions)
December 31, 2021:
Private Equity Fund	$	72	N/A (1) (2)	N/A	$	19
Private Real Estate Investment Trust	457		Quarterly	One Quarter	—
Hedge Fund	65		Calendar Quarters (3)	Previous Quarter End	$	5
Total (4)	$	594
December 31, 2020:
Private Equity Fund	$	69	N/A (1)(2)	N/A	$	21
Private Real Estate Investment Trust	397		Quarterly	One Quarter	—
Hedge Fund	69		Calendar Quarters (3)	Previous Quarter End	$	4
Total (4)	$	535

_______________

(1)Cannot sell or transfer ownership interest without prior written consent to transfer, and by meeting several criteria (e.g., does not adversely affect other investors).

(2)Cannot sell interest in the vehicle without prior written consent of the managing member.

(3)March, June, September and December.

(4)Includes equity method investments of $109 million and $110 million as of December 31, 2021 and 2020, respectively.

The table below presents a reconciliation for all Level 3 fair values of qualified pension plan assets as of December 31, 2021, 2020 and 2019, respectively:

Level 3 Instruments

Fair Value Measurements

	Private Real Estate Investment Trusts		Other Equity Investments		Fixed Maturities
	(in millions)
Balance, January 1, 2021	$	—	$	—	$	—
Actual return on plan assets — Sales/Settlements	—		—		(1)
Balance, December 31, 2021	$	—	$	—	$	(1)
Balance, January 1, 2020	$	—	$	—	$	1
Actual return on plan assets — Sales/Settlements	—		—		(1)
Balance, December 31, 2021	$	—	$	—	$	—
Balance, January 1, 2019	$	—	$	—	$	2
Actual return on plan assets — Sales/Settlements	—		—		(1)
Balance, December 31, 2019	$	—	$	—	$	1

As of December 31, 2021, assets classified as Level 1, Level 2 and Level 3 comprise approximately 23.4%, 55.4% and 0.0%, respectively, of qualified pension plan assets. As of December 31, 2020, assets classified as Level 1, Level 2 and Level 3 comprised approximately 25.7%, 54.8% and 0.0%, respectively, of qualified pension plan assets. There are no significant concentrations of credit risk arising within or across categories of qualified pension plan assets.

In addition to the plan assets above, the Company and certain subsidiaries purchased COLI policies on the lives of certain key employees. Under the terms of these polices the Company and these subsidiaries are named as beneficiaries. The purpose of the COLI policies is to provide the Company additional funds with which to satisfy various employee benefit obligations held by the Company, including those associated with its nonqualified defined benefit plans and post-retirement benefit plans. As of December 31, 2021 and 2020, the carrying value of COLI was $1.01 billion and $992 million, respectively.

Assumptions

Discount Rate    

The benefits obligations and related net periodic costs of the Company’s qualified and non-qualified pension plans are measured using discount rate assumptions that reflect the rates at which the plans’ benefits could be effectively settled. Projected nominal cash outflows to fund expected annual benefits payments under each of the plans are discounted using a published high-quality bond yield curve as a practical expedient for a matching bond approach. Beginning in 2014, the Company uses the Citigroup Pension Above-Median-AA Curve (the “Citigroup Curve”) for this purpose. The Company has concluded that an adjustment to the Citigroup Curve is not required after comparing the projected benefit streams of the plans to the cash flows and duration of the reference bonds.

Mortality

In October 2016, the Society of Actuaries (“SOA”) released MP-2016, its second annual update to the “gold standard” mortality projection scale issued by the SOA in 2014, reflecting three additional years of historical U.S. population historical mortality data (2012 through 2014). Similar to its predecessor (MP-2015), MP-2016 indicated that, while mortality data continued to show longer lives, longevity was increasing at a slower rate and lagging behind that previously suggested both by MP-2015 and MP-2014. The Company considered this new data as well as observations made from current practice regarding how to best estimate improved trends in life expectancies and concluded to continue using the RP-2000 base mortality table projected on a full generational basis with Scale BB mortality improvements for purposes of measuring and reporting its consolidated defined benefit plan obligations as of December 31, 2021.

The following table discloses assumptions used to measure the Company’s pension benefit obligations and net periodic pension cost at and for the years ended December 31, 2021 and 2020.

	December 31,
	2021	2020
Discount rates:
Equitable Financial QP	2.55%	2.11%
Equitable Excess Retirement Plan	2.47%	1.99%
MONY Life Retirement Income Security Plan for Employees	2.78%	2.43%
AB Qualified Retirement Plan	2.55%	3.35%
Other defined benefit plans	2.05%-2.78%	1.46%-2.43%
Periodic cost	1.18%-2.78%	0.51%-2.43%
Cash balance interest crediting rate for pre-April 1, 2012 accruals	4.00%	4.00%
Cash balance interest crediting rate for post-April 1, 2012 accruals	0.50%	2.25%
Rates of compensation increase:
Benefit obligation	5.97%	5.99%
Periodic cost	6.33%	6.32%
Expected long-term rates of return on pension plan assets (periodic cost)	6.25%	6.25%

The expected long-term rate of return assumption on plan assets is based upon the target asset allocation of the plan portfolio and is determined using forward-looking assumptions in the context of historical returns and volatilities for each asset class. Prior to 1987, participants’ benefits under the Equitable Financial QP were funded through the purchase of non-participating annuity contracts from Equitable Financial. Benefit payments under these contracts were approximately $4 million and $5 million for 2021 and 2020, respectively.

Post-Retirement Benefits

The Company eliminated any subsidy for post-retirement medical and dental coverage for individuals retiring on or after May 1, 2012. The Company continues to contribute to the cost of post-retirement medical and dental coverage for certain individuals who retired prior to May 1, 2012 based on years of service and age, subject to rights reserved in the

plans to change or eliminate these benefits. The Company funds these post-retirement benefits on a pay-as-you-go basis.

The Company sponsors the Equitable Executive Survivor Benefits Plan (the “ESB Plan”) which provides post-retirement life insurance benefits to eligible executives. Eligible executives may choose up to four levels of coverage with each level providing a benefit equal to the executive’s compensation, subject to an overall $25 million cap. Aside from the ESB Plan, the Company does not currently offer post-retirement life insurance benefits but continues to provide post-retirement life insurance benefits to certain active and retired employees who were eligible for such benefits under discontinued plans. The ESB Plan was closed to new participants on January 1, 2019.

For 2021 and 2020, post-retirement benefits payments were $28 million and $24 million, respectively, net of employee contributions.

The Company uses a December 31 measurement date for its post-retirement plans.

Components of Net Post-Retirement Benefits Costs

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Service cost	$	2	$	2	$	1
Interest cost	8		13		18
Net amortization	9		9		6
Net periodic post-retirement benefits costs	$	19	$	24	$	25

Changes in the accumulated benefits obligation of the Company’s post-retirement plans recognized in the accompanying consolidated financial statements are described in the following table:

Accumulated Post-Retirement Benefits Obligation

	December 31,
	2021		2020
	(in millions)
Accumulated post-retirement benefits obligation, beginning of year	$	516	$	517
Service cost	2		2
Interest cost	8		13
Contributions and benefits paid	(28)		(24)
Plan amendments/curtailments	—		(30)
Actuarial (gains) losses	(32)		38
Accumulated post-retirement benefits obligation, end of year	$	466	$	516

The post-retirement medical plan obligations of the Company are offset by an anticipated subsidy from Medicare Part D, which is assumed to increase with the healthcare cost trend.

Assumed Healthcare Cost Trend Rates used to Measure the Expected Cost of Benefits

	December 31,
	2021	2020
Following year	5.1%	5.6%
Ultimate rate to which cost increase is assumed to decline	4.0%	4.0%
Year in which the ultimate trend rate is reached	2094	2095

The following table discloses the amounts included in AOCI as of December 31, 2021 and 2020 that have not yet been recognized as components of net periodic post-retirement benefits cost:

	December 31,
	2021		2020
	(in millions)
Unrecognized net actuarial (gains) losses	$	135	$	186
Unrecognized prior service (credit)	(26)		(29)
Total	$	109	$	157

The assumed discount rates for measuring the post-retirement benefit obligations as of December 31, 2021 and 2020 were determined in substantially the same manner as described above for measuring the pension benefit obligations. The following table discloses the range of discrete single equivalent discount rates and related net periodic cost at and for the years ended December 31, 2021 and 2020.

	December 31,
	2021	2020
Discount rates:
Benefit obligation	2.43%-2.72%	1.97%-2.38%
Periodic cost	2.34%-2.52%	2.80%-3.16%

The Company provides post-employment medical and life insurance coverage for certain disabled former employees. The accrued liabilities for these post-employment benefits were $3 million and $3 million, respectively, as of December 31, 2021 and 2020. Components of net post-employment benefits costs follow:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Service cost	$	1	$	1	$	1
Interest cost	—		—		—
Net amortization	—		(5)		—
Net (gain) loss	—		—		(1)
Net periodic post-employment benefits costs	$	1	$	(4)	$	1

The following table provides an estimate of future benefits expected to be paid in each of the next five years, beginning January 1, 2022, and in the aggregate for the five years thereafter. These estimates are based on the same assumptions used to measure the respective benefit obligations as of December 31, 2021 and include benefits attributable to estimated future employee service.

			Postretirement Benefits
					Health
Calendar Year	Pension Benefits		Life Insurance		Gross Estimate Payment		Estimated Medicare Part D Subsidy		Net Estimate Payment
	(in millions)
2022	$	211,168	$	—	$	—	$	—	$	—
2023	$	250,713	$	—	$	—	$	—	$	—
2024	$	200,447	$	—	$	—	$	—	$	—
2025	$	196,067	$	—	$	—	$	—	$	—
2026	$	186,582	$	—	$	—	$	—	$	—
Years 2027 — 2030	$	2,453,131	$	—	$	—	$	—	$	—

Effective December 31, 2020, the current health plan coverages through the Equitable Retiree Group Health Plan were terminated. Medicare-eligible retirees and their Medicare-eligible dependents were given the opportunity to elect a Medicare

plan through the Aon Retiree Health Exchange effective January 1, 2021 and certain eligible retirees were offered a retiree health reimbursement account contribution to help pay for premiums and out-of-pocket expenses. Pre-65 retirees and their pre-65 dependents were given the opportunity to elect health coverage under the Aon Active Health Exchange effective January 1, 2021. Even though the effective date of the change in benefits doesn’t commence until January 1, 2021, the effect of the amendment must be recognized immediately and is reflected in the measurement of the accumulated postretirement benefit obligations as of December 31, 2020.

XML

SHARE-BASED COMPENSATION PROGRAMS

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

SHARE-BASED COMPENSATION PROGRAMS

SHARE-BASED COMPENSATION PROGRAMS

Compensation costs for 2021, 2020 and 2019 for share-based payment arrangements as further described herein are as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Performance Shares	$	17	$	11	$	29
Stock Options	—		7		4
Restricted Stock Units	257		234		243
Total compensation expenses	$	274	$	252	$	276
Income Tax Benefit	$	58	52		62

Since 2018, Holdings has granted equity awards under the Equitable Holdings, Inc. 2018 Omnibus Incentive Plan and the Equitable Holdings, Inc. 2019 Omnibus Incentive Plan (together the “Omnibus Plans”) which were adopted by Holdings on April 25, 2018 and February 28, 2019 respectively. Awards under the Omnibus Plans are linked to Holdings’ common stock. As of December 31, 2021, the common stock reserved and available for issuance under the Omnibus Plans was 22 million shares. Holdings may issue new shares or use common stock held in treasury for awards linked to Holdings’ common stock.

Retirement and Protection

Equity awards for R&P employees, financial professionals and directors in 2021, 2020 and 2019 were granted under the Omnibus Plans with the exception of the Holdings restricted stock units (“Holdings RSUs”) granted to financial professionals in 2018. All grants discussed in this section will be settled in shares of Holdings’ common stock except for the RSUs granted to financial professionals in 2019 and 2018 which will be settled in cash.

For awards with graded vesting schedules and service-only vesting conditions, including Holdings RSUs and other forms of share-based payment awards, the Company applies a straight-line expense attribution policy for the recognition of compensation cost. Actual forfeitures with respect to the 2021, 2020, and 2019 grants were considered immaterial in the recognition of compensation cost.

Annual Awards

Each year, the Compensation Committee of the Holdings’ Board of Directors approves an equity-based award program with awards under the program granted at its regularly scheduled meeting in February. Annual awards under Holdings’ equity programs for 2021, 2020 and 2019 consisted of a mix of equity vehicles including Holdings RSUs, Holdings stock options and Holdings performance shares. If Holdings pays any ordinary dividend in cash, all outstanding Holdings RSUs and performance shares will accrue dividend equivalents in the form of additional Holdings RSUs or performance shares to be settled or forfeited consistent with the terms of the related award.

Holdings RSUs

Holdings RSUs granted to R&P employees under an annual program vest ratably in equal annual installments over a three-year period. The fair value of the awards was measured using the closing price of the Holdings share on the grant date, and the resulting compensation expense will be recognized over the shorter of the vesting term or the period up to the date at which the participant becomes retirement eligible, but not less than one year.

Under the 2020 equity program, eligible R&P financial professionals were granted stock-settled Holdings RSUs which vest ratably in equal annual installments over a three-year period and are equity-classified. The fair value of these awards was measured using the closing price of the Holdings share on the grant date, and the resulting compensation

expense will be recognized over the shorter of the vesting term or the period up to the date at which the participant becomes retirement eligible, but not less than one year.

Under the 2019 and 2018 equity programs, R&P financial professionals were granted cash-settled Holdings RSUs which vest ratably in equal installments over a three-year period. The cash payment for each RSU will equal the average closing price for a Holdings share on the NYSE over the 20 trading days immediately preceding the vesting date. These awards are liability-classified and require fair value remeasurement based upon the price of a Holdings share at the close of each reporting period.

Holdings Stock Options

Holdings stock options granted to R&P employees have a three-year graded vesting schedule, with one-third vesting on each of the three anniversaries. The total grant date fair value of Holdings stock options will be charged to expense over the shorter of the vesting period or the period up to the date at which the participant becomes retirement eligible, but not less than one year.

Holdings Performance Shares

Holdings performance shares granted to R&P employees are subject to performance conditions and a three-year cliff-vesting. The performance shares consist of two distinct tranches; one based on the Company’s return-on-equity targets (the “ROE Performance Shares”) and the other based on the Holdings’ relative total shareholder return targets (the “TSR Performance Shares”), each comprising approximately one-half of the award. Participants may receive from 0% to 200% of the unearned performance shares granted. The grant-date fair value of the ROE Performance Shares is established once all applicable Non-GAAP ROE targets are determined and approved. The fair value of the awards was measured using the closing price of the Holdings share on the grant date.

The grant-date fair value of the TSR Performance Shares was measured using a Monte Carlo approach. Under the Monte Carlo approach, stock returns were simulated for Holdings and the selected peer companies to estimate the payout percentages established by the conditions of the award. The aggregate grant-date fair value of the unearned TSR Performance Shares will be recognized as compensation expense over the shorter of the cliff-vesting period or the period up to the date at which the participant becomes retirement eligible, but not less than one year.

Director Awards

Holdings makes annual grants of unrestricted Holdings shares to non-employee directors of Holdings, Equitable Financial and Equitable America. The fair value of these awards was measured using the closing price of Holdings shares on the grant date. These awards immediately vest and all compensation expense is recognized at the grant date.

One-Time Awards Granted in 2018

Transaction Incentive Awards

On May 9, 2018, coincident with the IPO, Holdings granted one-time “Transaction Incentive Awards” to executive officers and certain other R&P employees in the form of 722 thousand Holdings RSUs. Fifty percent of the Holdings RSUs vested based on service over the two-year period from the IPO date (the “Service Units”), and fifty percent vest based on service or market condition (the “Performance Units”). The market condition is based on share price growth of at least 130% or 150% within a two or five-year period, respectively. The market condition was achieved during 2021 and the RSUs fully vesting during this period.

Prior Equity Award Grants

In 2017 and prior years, equity awards for employees, financial professional and directors in our R&P businesses were available under the umbrella of AXA’s global equity program. Accordingly, equity awards granted in 2017 and prior years were linked to AXA’s stock.

R&P employees were granted AXA ordinary share options under the Stock Option Plan, AXA performance shares under the Performance Share Plan and R&P financial professionals were granted performance units under the AXA Advisors Performance Unit Plan.

The fair values of these prior awards are measured at the grant date by reference to the closing price of the AXA ordinary share, and the result, as adjusted for achievement of performance targets and pre-vesting forfeitures, generally is attributed over the shorter of the requisite service period, the performance period, if any, or to the date at which

retirement eligibility is achieved and subsequent service no longer is required for continued vesting of the award. Remeasurements of fair value for subsequent price changes until settlement are made only for performance unit awards that are settled in cash.

Investment Management and Research

Employees and directors in our Investment Management and Research business participate in several unfunded long-term incentive compensation plans maintained by AB. Awards under these plans are linked to AB Holding Units.

Under the AB 2017 Long Term Incentive Plan (“2017 Plan”), which was adopted at a special meeting of AB Holding Unit holders held on September 29, 2017, the following forms of awards may be granted to AB employees and Directors: (i) restricted AB Holding Units or phantom restricted AB Holding Units (a “phantom” award is a contractual right to receive AB Holding Units at a later date or upon a specified event); (ii) options to buy AB Holding Units; and (iii) other AB Holding Unit-based awards (including, without limitation, AB Holding Unit appreciation rights and performance awards). The 2017 Plan will expire on September 30, 2027, and no awards under the 2017 Plan will be made after that date. Under the 2017 Plan, the aggregate number of AB Holding Units with respect to which awards may be granted is 60 million, including no more than 30 million newly-issued AB Holding Units.

AB engages in open-market purchases of AB Holding Units to help fund anticipated obligations under its long-term incentive compensation plans and for other corporate purposes. During 2021, 2020, and 2019 AB purchased 5.6 million, 5.4 million, and 6.0 million AB Holding Units for $262 million, 149 million and 173 million, respectively. These amounts reflect open-market purchases of 2.6 million, 3.1 million and 2.9 million AB Holding Units for $117.9 million 74.0 million and 82.7 million, respectively, with the remainder relating to purchases of AB Holding Units from AB employees to allow them to fulfill statutory tax withholding requirements at the time of distribution of long-term incentive compensation awards, offset by AB Holding Units purchased by AB employees as part of a distribution reinvestment election.

During 2021, 2020, and 2019 AB granted 7.0 million, 5.7 million, and 7.7 million restricted AB Holding units to AB employees and directors, respectively.

During 2021, 2020, and 2019 AB Holding issued 100 thousand, 5 thousand, and 500 thousand AB Holding Units, respectively, upon exercise of options to buy AB Holding Units. AB Holding used the proceeds of $3 million, 147 thousand and 12 million, respectively, received from employees as payment in cash for the exercise price to purchase the equivalent number of newly-issued AB Holding Units.

As of December 31, 2021, no options to buy AB Holding Units had been granted and 28.1 million AB Holding Units, net of withholding tax requirements, were subject to other AB Holding Unit awards made under the 2017 Plan or an equity compensation plan with similar terms that was canceled in 2017. AB Holding Unit-based awards (including options) in respect of 31.9 million AB Holding Units were available for grant as of December 31, 2021.

Summary of Stock Option Activity

A summary of activity in the AXA and Holdings option plans during 2021 as follows:

	Options Outstanding
	EQH Shares			AB Holding Units			AXA Ordinary Shares
	Number Outstanding   (in 000’s)	Weighted Average Exercise Price		Number Outstanding (In 000’s)	Weighted Average Exercise Price		Number Outstanding   (in 000’s)	Weighted Average Exercise Price
Options outstanding at January 1, 2021	3,428	$	21.14	148,985	$	23.61	1,726	€ 21.01
Options granted	—	—		—	—		—	—
Options exercised	(1,204)	21.20		(143,211)	23.75		(743)	19.19
Options forfeited, net	(184)	21.91		—	—		(109)	22.34
Options expired	—	—		—	—		—	—
Options outstanding at December 31, 2021	2,040	$	21.69	5,774	$	20.12	874	€ 22.39
Aggregate intrinsic value (1)		$	6,305		$	165,829		(€ 2,370)
Weighted average remaining contractual term (in years)	7.71			0.33			4.69
Options exercisable at December 31, 2021	843	$	21.58	5,774	$	20.12	758	€ 22.38
Aggregate intrinsic value (1)		$	2,700		$	165,829		(€ 2,049)
Weighted average remaining contractual term (in years)	7.56			0.33			4.48

_______________

(1) Aggregate intrinsic value, presented in thousands, is calculated as the excess of the closing market price on December 31, 2021 of the respective underlying shares over the strike prices of the option awards. For awards with strike prices higher than market prices, intrinsic value is shown as zero.

A summary of stock option grant assumptions activity in the AXA and the Company option plans during 2021, 2020, and 2019 follows:

	EQH Shares (1)
	2021 (2)		2020		2019
Dividend yield	—%		2.59%		2.77%
Expected volatility	—%		26.00%		25.70%
Risk-free interest rates	—%		1.19%		2.49%
Expected life in years	—		6.0		5.9
Weighted average fair value per option at grant date	$	—	$	4.37	$	3.82

_______________

(1) The expected volatility is based on historical selected peer data, the weighted average expected term is determined by using the simplified method due to lack of sufficient historical data, the expected dividend yield based on Holdings’ expected annualized dividend, and the risk-free interest rate is based on the U.S. Treasury bond yield for the appropriate expected term.

(2) No stock options granted during 2021.

As of December 31, 2021, approximately $74 thousand of unrecognized compensation cost related to AXA unvested stock option awards is expected to be recognized by the Company over a weighted-average period of 0.2 years. Approximately $1 million of unrecognized compensation cost related to Holdings unvested stock option awards is expected to be recognized by the Company over a weighted average period of 1.06 years.

Summary of Restricted Stock Unit Award Activity

The market price of a Holdings share is used as the basis for the fair value measure of a Holdings RSU. For purposes of determining compensation cost for stock-settled Holdings RSUs, fair value is fixed at the grant date until settlement, absent modification to the terms of the award. For liability-classified cash-settled Holdings and AXA RSUs, fair value is remeasured at the end of each reporting period.

As of December 31, 2021, approximately $3 million Holdings RSUs and AXA ordinary share unit awards remain unvested. Unrecognized compensation cost related to these awards totaled approximately $41 million and is expected to be recognized over a weighted-average period of 1.9 years.

As of December 31, 2021, approximately $18 million AB Holding Unit awards remain unvested. Unrecognized compensation cost related to these awards totaled approximately $137 million is expected to be recognized over a weighted-average period of 6.2 years

The following table summarizes Holdings restricted share units and AXA ordinary share unit activity for 2021.

	Shares of Holdings Restricted Stock Units	Weighted-Average Grant Date  Fair Value
Unvested as of January 1, 2021	3,666,611	$	21.15
Granted	1,630,277	$	28.01
Forfeited	(194,262)	$	24.43
Vested	(1,873,893)	$	20.81
Unvested as of December 31, 2021	3,228,733	$	24.61

Summary of Performance Award Activity

As of December 31, 2021, approximately 2 million Holdings and AXA performance awards remain unvested. Unrecognized compensation cost related to these awards totaled approximately $19 million and is expected to be recognized over a weighted-average period of 1.5 years.

The following table summarizes Holdings and AXA performance awards activity for 2021.

	Shares of Holdings Performance Awards	Weighted-Average Grant Date  Fair Value		Shares of AXA Performance Awards	Weighted-Average Grant Date Fair Value
Unvested as of January 1, 2021	676,688	$	22.14	2,806,126	$	21.86
Granted	1,153,932	$	29.91	—	$	—
Forfeited	(200,814)	$	28.28	(7,939)	$	27.18
Vested	(168,132)	$	23.17	(1,410,020)	$	23.94
Other (1)	—	$	—	(1,325,420)	$	19.64
Unvested as of December 31, 2021	1,461,674	$	28.58	62,747	$	21.28

_______________

(1) One time true-up of AXA Performance Awards related to the transition to third party administrator.

XML

INCOME TAXES

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

Income from operations before income taxes included income (loss) from domestic operations of $(392) million, $(1.3) billion and $(2.2) billion for the years ended December 31, 2021, 2020 and 2019, and income from foreign operations of $223 million, $169 million and $131 million for the years ended December 31, 2021, 2020 and 2019. Approximately $59 million, $45 million and $34 million of the Company’s income tax expense is attributed to foreign jurisdictions for the years ended December 31, 2021, 2020 and 2019.

A summary of the income tax (expense) benefit in the consolidated statements of income (loss) follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Income tax (expense) benefit:
Current (expense) benefit	$	(129)	$	(5)	$	(71)
Deferred (expense) benefit	274		749		664
Total	$	145	$	744	$	593

The Federal income taxes attributable to consolidated operations are different from the amounts determined by multiplying the earnings before income taxes and noncontrolling interest by the expected Federal income tax rate of 21%. The sources of the difference and their tax effects are as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Expected income tax (expense) benefit	$	36	$	229	$	433
Noncontrolling interest	69		50		51
Non-taxable investment income	80		92		74
Tax audit interest	(14)		(8)		(24)
State income taxes	(47)		(38)		(21)
Tax settlements/uncertain tax position release	—		398		63
Tax credits	28		21		—
Other	(7)		—		17
Income tax (expense) benefit	$	145	$	744	$	593

During the fourth quarter of 2020, the Company agreed to the Internal Revenue Service’s Revenue Agent’s Report for its consolidated 2010 through 2013 Federal corporate income tax returns. The impact on the Company’s financial statements and unrecognized tax benefits was a tax benefit of $398 million.

During the second quarter of 2019, the Company released a state income tax liability due to recently drafted regulations. The benefit recorded in the Company’s financial statements was $63 million.

The components of the net deferred income taxes are as follows:

	December 31,
	2021				2020
	Assets		Liabilities		Assets		Liabilities
	(in millions)
Compensation and related benefits	$	273	$	—	$	297	$	—
Net operating loss and credits	699		—		88		—
Reserves and reinsurance	2,281		—		1,528		—
DAC	—		874		—		638
Unrealized investment gains/losses	—		965		—		1,790
Investments	—		794		461		—
Other	—		76		—		170
Total	$	3,253	$	2,709	$	2,374	$	2,598

The Company has Federal net operating loss carryforwards of $2.7 billion and $13 million, for the years ending December 31, 2021 and 2020, respectively, which do not expire.

The Company provides income taxes on the unremitted earnings of non-U.S. corporate subsidiaries except to the extent that such earnings are indefinitely reinvested outside the United States. As of December 31, 2021, $30 million of undistributed earnings of non-U.S. corporate subsidiaries were permanently invested outside the United States. At existing applicable income tax rates, additional taxes of approximately $8 million would need to be provided if such earnings are remitted.

A reconciliation of unrecognized tax benefits (excluding interest and penalties) follows:

	2021		2020		2019
	(in millions)
Balance at January 1,	$	316	$	501	$	539
Additions for tax positions of prior years	11		241		25
Reductions for tax positions of prior years	(4)		(382)		(63)
Additions for tax positions of current year	—		—		—
Settlements with tax authorities	—		(44)		—
Balance at December 31,	$	323	$	316	$	501
Unrecognized tax benefits that, if recognized, would impact the effective rate	$	67	$	77	$	369

The Company recognizes accrued interest and penalties related to unrecognized tax benefits in tax expense. Interest and penalties included in the amounts of unrecognized tax benefits as of December 31, 2021 and 2020 were $50 million and $36 million, respectively. For 2021, 2020 and 2019, respectively, there were $14 million, $(60) million and $21 million in interest expense (benefit) related to unrecognized tax benefits.

It is reasonably possible that the total amount of unrecognized tax benefits will change within the next 12 months due to the conclusion of IRS proceedings and the addition of new issues for open tax years. The possible change in the amount of unrecognized tax benefits cannot be estimated at this time.

As of December 31, 2021, tax years 2014 and subsequent remain subject to examination by the IRS.

XML

COMMITMENTS AND CONTINGENT LIABILITIES

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENT LIABILITIES

COMMITMENTS AND CONTINGENT LIABILITIES

Litigation and Regulatory Matters

Litigation, regulatory and other loss contingencies arise in the ordinary course of the Company’s activities as a diversified financial services firm. The Company is a defendant in a number of litigation matters arising from the conduct of its business. In some of these matters, claimants seek to recover very large or indeterminate amounts, including compensatory, punitive, treble and exemplary damages. Modern pleading practice permits considerable variation in the assertion of monetary damages and other relief. Claimants are not always required to specify the monetary damages they seek, or they may be required only to state an amount sufficient to meet a court’s jurisdictional requirements. Moreover, some jurisdictions allow claimants to allege monetary damages that far exceed any reasonably possible verdict. The variability in pleading requirements and past experience demonstrates that the monetary and other relief that may be requested in a lawsuit or claim often bears little relevance to the merits or potential value of a claim. Litigation against the Company includes a variety of claims including, among other things, insurers’ sales practices, alleged agent misconduct, alleged failure to properly supervise agents, contract administration, product design, features and accompanying disclosure, cost of insurance increases, payments of death benefits and the reporting and escheatment of unclaimed property, alleged breach of fiduciary duties, alleged mismanagement of client funds and other matters.

The outcome of a litigation or regulatory matter is difficult to predict, and the amount or range of potential losses associated with these or other loss contingencies requires significant management judgment. It is not possible to predict the ultimate outcome or to provide reasonably possible losses or ranges of losses for all pending regulatory matters, litigation and other loss contingencies. While it is possible that an adverse outcome in certain cases could have a material adverse effect upon the Company’s financial position, based on information currently known, management believes that neither the outcome of pending litigation and regulatory matters, nor potential liabilities associated with other loss contingencies, are likely to have such an effect. However, given the large and indeterminate amounts sought in certain litigation and the inherent unpredictability of all such matters, it is possible that an adverse outcome in certain of the Company’s litigation or regulatory matters, or liabilities arising from other loss contingencies, could, from time to time, have a material adverse effect upon the Company’s results of operations or cash flows in a particular quarterly or annual period.

For some matters, the Company is able to estimate a range of loss. For such matters in which a loss is probable, an accrual has been made. For matters where the Company believes a loss is reasonably possible, but not probable, no accrual is required. For matters for which an accrual has been made, but there remains a reasonably possible range of loss in excess of the amounts accrued or for matters where no accrual is required, the Company develops an estimate of the unaccrued amounts of the reasonably possible range of losses. As of December 31, 2021, the Company estimates the aggregate range of reasonably possible losses, in excess of any amounts accrued for these matters as of such date, to be up to approximately $250 million.

For other matters, the Company is currently not able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from plaintiffs and other parties, investigation of factual allegations, rulings by a court on motions or appeals, analysis by experts and the progress of settlement discussions. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation and regulatory contingencies and updates the Company’s accruals, disclosures and reasonably possible losses or ranges of loss based on such reviews.

In August 2015, a lawsuit was filed in Connecticut Superior Court entitled Richard T. O’Donnell, on behalf of himself and all others similarly situated v. AXA Equitable Life Insurance Company. This lawsuit is a putative class action on behalf of all persons who purchased variable annuities from Equitable Financial, which were subsequently subjected to the volatility management strategy and who suffered injury as a result thereof. Plaintiff asserts a claim for breach of contract alleging that Equitable Financial implemented the volatility management strategy in violation of applicable law. Plaintiff seeks an award of damages individually and on a classwide basis, and costs and disbursements, including attorneys’ fees, expert witness fees and other costs. In 2015, the case was transferred to the Southern District of New York and, in 2018, transferred back to Connecticut Superior Court. In August 2019, the court granted Equitable Financial’s motion to strike, which sought dismissal of the complaint, and in September 2019, Plaintiff filed an Amended Class Action Complaint. Equitable Financial filed renewed motions to strike and to dismiss and for an entry of judgment in October 2019. In August 2020, the court granted Equitable Financial’s motion for entry of judgment.

Plaintiff filed a notice of appeal and in February 2021, the appellate court reversed the entry of judgement and remanded the case to Connecticut Superior Court. We are vigorously defending this matter.

In February 2016, a lawsuit was filed in the Southern District of New York entitled Brach Family Foundation, Inc. v. AXA Equitable Life Insurance Company. This lawsuit is a putative class action brought on behalf of all owners of UL policies subject to Equitable Financial’s COI rate increase. In early 2016, Equitable Financial raised COI rates for certain UL policies issued between 2004 and 2008, which had both issue ages 70 and above and a current face value amount of $1 million and above. A second putative class action was filed in Arizona in 2017 and consolidated with the Brach matter. The consolidated amended class action complaint alleges the following claims: breach of contract; misrepresentations in violation of Section 4226 of the New York Insurance Law; violations of New York General Business Law Section 349; and violations of the California Unfair Competition Law, and the California Elder Abuse Statute. Plaintiffs seek: (a) compensatory damages, costs, and, pre- and post-judgment interest; (b) with respect to their claim concerning Section 4226, a penalty in the amount of premiums paid by the plaintiffs and the putative class; and (c) injunctive relief and attorneys’ fees in connection with their statutory claims. In August 2020, the federal district court issued a decision certifying nationwide breach of contract and Section 4226 classes, and a New York State Section 349 class. Equitable Financial has commenced settlement discussions with the Brach class action plaintiffs through a non-binding mediation process. No assurances can be given about the outcome of that mediation process. Separately, a substantial number of policy owners have opted out of the Brach class action and are not participating in that mediation process. Most have not yet filed suit. Others filed suit previously. They include five other federal actions challenging the COI rate increase that are also pending against Equitable Financial and have been coordinated with the Brach action for the purposes of pre-trial activities. They contain allegations similar to those in the Brach action as well as additional allegations for violations of various states’ consumer protection statutes and common law fraud. Two actions are also pending against Equitable Financial in New York state court. Equitable Financial is vigorously defending each of these matters.

As with other financial services companies, the Company periodically receives informal and formal requests for information from various state and federal governmental agencies and self-regulatory organizations in connection with inquiries and investigations of the products and practices of the Company or the financial services industry. It is the practice of the Company to cooperate fully in these matters. For example, among other matters, the Company has been cooperating with the U.S. Securities and Exchange Commission (the “SEC”) concerning the SEC’s investigation into the Company’s non-ERISA K-12 403(b) and 457 sales and disclosure practices.The Company has reached an agreement in principle, subject to agreement on documentation and approval by the SEC, to resolve that investigation, including the allegation that daily separate account and portfolio operating expenses disclosed in customer prospectuses and incorporated in the calculation of net investment portfolio results in quarterly account statements were not properly presented or referenced in those account statements. If approved, under the settlement, the Company would neither admit nor deny the allegations, prospectively modify the relevant account statements and cross-reference the relevant prospectus disclosures, and pay a civil monetary penalty of $50 million, to be distributed to plan participants. The Company has fully accrued for the cost of the settlement.

Obligations under Funding Agreements

Pre-Capitalized Trust Securities (“P-Caps”)

In April 2019, pursuant to separate Purchase Agreements among Holdings, Credit Suisse Securities (USA) LLC, as representative of the several initial purchasers, and the Trusts (as defined below), Pine Street Trust I, a Delaware statutory trust (the “2029 Trust”), completed the issuance and sale of 600,000 of its Pre-Capitalized Trust Securities redeemable February 15, 2029 (the “2029 P-Caps”) for an aggregate purchase price of $600 million and Pine Street Trust II, a Delaware statutory trust (the “2049 Trust” and, together with the 2029 Trust, the “Trusts”), completed the issuance and sale of 400,000 of its Pre-Capitalized Trust Securities redeemable February 15, 2049 (the “2049 P-Caps” and, together with the 2029 P-Caps, the “P-Caps”) for an aggregate purchase price of $400 million in each case to qualified institutional buyers in reliance on Rule 144A that are also “qualified purchasers” for purposes of Section 3(c)(7) of the Investment Company Act of 1940, as amended.

The P-Caps are an off-balance sheet contingent funding arrangement that, upon Holdings’ election, gives Holdings the right over a ten-year period (in the case of the 2029 Trust) or over a thirty-year period (in the case of the 2049 Trust) to issue senior notes to these Trusts. The Trusts each invested the proceeds from the sale of their P-Caps in separate portfolios of principal and/or interest strips of U.S. Treasury securities. In return, Holdings will pay a semi-annual facility fee to the 2029 Trust and 2049 Trust calculated at a rate of 2.125% and 2.715% per annum, respectively, which will be applied to the unexercised portion of the contingent funding arrangement and Holdings will reimburse the

Trusts for certain expenses. The facility fees are recorded in Other operating costs and expenses in the Consolidated Statements of Income (Loss).

Federal Home Loan Bank

As a member of the FHLB, Equitable Financial has access to collateralized borrowings. It also may issue funding agreements to the FHLB. Both the collateralized borrowings and funding agreements would require Equitable Financial to pledge qualified mortgage-backed assets and/or government securities as collateral. Equitable Financial issues short-term funding agreements to the FHLB and uses the funds for asset, liability, and cash management purposes. Equitable Financial issues long-term funding agreements to the FHLB and uses the funds for spread lending purposes.

Entering into FHLB membership, borrowings and funding agreements requires the ownership of FHLB stock and the pledge of assets as collateral. Equitable Financial has purchased FHLB stock of $311 million and pledged collateral with a carrying value of $12.5 billion as of December 31, 2021. 

Funding agreements are reported in policyholders’ account balances in the consolidated balance sheets. For other instruments used for asset/liability and cash management purposes, see “Derivative and offsetting assets and liabilities” included in Note 4 of the Notes to these Consolidated Financial Statements. The table below summarizes the Company’s activity of funding agreements with the FHLB.

Change in FHLB Funding Agreements during the Year Ended December 31, 2021

	Outstanding Balance at December 31, 2020		Issued During the Period		Repaid During the Period		Long-term Agreements Maturing Within One Year		Long-term Agreements Maturing Within Five Years		Outstanding Balance at December 31, 2021
	(in millions)
Short-term funding agreements:
Due in one year or less	$	5,634	$	59,846	$	60,504	$	377	$	—	$	5,353
Long-term funding agreements:
Due in years two through five	722		411		—		(377)		534		1,290
Due in more than five years	534		—		—		—		(534)		—
Total long-term funding agreements	1,256		411		—		(377)		—		1,290
Total funding agreements (1)	$	6,890	$	60,257	$	60,504	$	—	$	—	$	6,643

_____________

(1)The $4 million and $7 million difference between the funding agreements carrying value shown in fair value table for December 31, 2021 and December 31, 2020, respectively, reflects the remaining amortization of a hedge implemented and closed, which locked in the funding agreements borrowing rates.

Funding Agreement-Backed Notes Program

Under the FABN program, Equitable Financial may issue funding agreements in U.S. dollar or other foreign currencies to a Delaware special purpose statutory trust (the “Trust”) in exchange for the proceeds from issuances of fixed and floating rate medium-term marketable notes issued by the Trust from time to time (the “Trust Notes”). The funding agreements have matching interest, maturity and currency payment terms to the applicable Trust notes. The Company hedges the foreign currency exposure of foreign currency denominated funding agreements using cross currency swaps as discussed in Note 4 of the Notes to these Consolidated Financial Statements. As of May 2021, the maximum aggregate principal amount of Trust notes permitted to be outstanding at any one time is $10 billion. Funding agreements issued to the Trust, including any foreign currency transaction adjustments, are reported in policyholders’ account balances in the consolidated balance sheets. Foreign currency transaction adjustments to policyholder’s account balances are recognized in net income (loss) as an adjustment to interest credited to policyholders’ account balances and are offset in interest credited to policyholders’ account balances by a release of AOCI from deferred changes in fair value of designated and qualifying cross currency swap cash flow hedges. The table below summarizes the Equitable Financial’s activity of funding agreements under the FABN.

Change in FABN Funding Agreements during the Year Ended December 31, 2021

	Outstanding Balance at December 31, 2020		Issued During the Period		Repaid During the Period		Long-term Agreements Maturing Within One Year		Long-term Agreements Maturing Within Five Years		Foreign Currency Transaction Adjustment		Outstanding Balance at December 31, 2021
	(in millions)
Short-term funding agreements:
Due in one year or less	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Long-term funding agreements:
Due in years two through five	1,150		3,450		—		—		—		—		4,600
Due in more than five years	800		1,359		—		—		—		(40)		2,119
Total long-term funding agreements	1,950		4,809		—		—		—		(40)		6,719
Total funding agreements (1)	$	1,950	$	4,809	$	—	$	—	$	—	$	(40)	$	6,719

_____________

(1)The $70 million and $11 million difference between the funding agreements notional value shown and carrying value table as of December 31, 2021 and December 31, 2020, respectively, reflects the remaining amortization of the issuance cost of the funding agreements and the foreign currency transaction adjustment.

Credit Facilities

For information regarding activity pertaining to our credit facilities arrangements, see “Note 12 of the Notes to these Consolidated Financial Statements.

Guarantees and Other Commitments

The Company provides certain guarantees or commitments to affiliates and others. As of December 31, 2021, these arrangements include commitments by the Company to provide equity financing of $1.3 billion to certain limited partnerships and real estate joint ventures under certain conditions. Management believes the Company will not incur material losses as a result of these commitments.

The Company had $17 million of undrawn letters of credit related to reinsurance as of December 31, 2021. The Company had $863 million of commitments under existing mortgage loan agreements as of December 31, 2021.

The Company is the obligor under certain structured settlement agreements it had entered into with unaffiliated insurance companies and beneficiaries. To satisfy its obligations under these agreements, the Company owns single premium annuities issued by previously wholly-owned life insurance subsidiaries. The Company has directed payment under these annuities to be made directly to the beneficiaries under the structured settlement agreements. A contingent liability exists with respect to these agreements should the previously wholly-owned subsidiaries be unable to meet their obligations. Management believes the need for the Company to satisfy those obligations is remote.

XML

INSURANCE GROUP STATUTORY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2021

Insurance [Abstract]

INSURANCE GROUP STATUTORY FINANCIAL INFORMATION

INSURANCE GROUP STATUTORY FINANCIAL INFORMATIONIn accordance with statutory accounting practices, the following table presents the combined statutory net income (loss), surplus, capital stock & AVR, and securities on deposits for Equitable Financial, Equitable America, USFL, Equitable L&A and CS Life.

	2021		2020		2019
	(in millions)
Years Ended December 31,
Combined statutory net income (loss) (1) (2)	$	(936)	$	396	$	3,821
As of December 31,
Combined surplus, capital stock and AVR	$	6,864	$	7,475
Combined securities on deposits n accordance with various government and state regulations	$	65	$	75

_____________

(1) For 2021, excludes CS Life which was sold June 1, 2021.

(2) For 2020, excludes USFL which was sold April 1, 2020.

Equitable Financial did not pay ordinary dividends during 2021 due to operating losses. In 2020 and 2019, Equitable Financial paid to its direct parent, which subsequently distributed such amount to Holdings, an ordinary shareholder dividend of $2.1 billion and $1.0 billion, respectively.

Dividend Restrictions

As domestic insurance subsidiaries regulated by insurance laws of their respective domiciliary states, Equitable Financial and Equitable America are subject to restrictions as to the amounts they may pay as dividends and amounts they may repay of surplus notes to Holdings.

State insurance statutes also typically place restrictions and limitations on the amount of dividends or other distributions payable by insurance company subsidiaries to their parent companies, as well as on transactions between an insurer and its affiliates. Under the New York insurance laws, which are applicable to Equitable Financial, a domestic stock life insurer may not, without prior approval of the NYDFS, pay an ordinary dividend to its stockholders exceeding an amount calculated based on a statutory formula (“Ordinary Dividend”). Dividends in excess of this amount require the insurer to file a notice of its intent to declare the dividends with the NYDFS and obtain prior approval or non-disapproval from the NYDFS with respect to such dividends (“Extraordinary Dividend”). Due to a permitted statutory accounting practice agreed to with the NYDFS, Equitable Financial will need the prior approval of the NYDFS to pay the portion, if any, of any Ordinary Dividend that exceeds the Ordinary Dividend that Equitable Financial would be permitted to pay under New York insurance law absent the application of such permitted practice (such excess, the “Permitted Practice Ordinary Dividend”).

Applying the formulas above, Equitable Financial could pay an Ordinary Dividend of up to approximately $865 million in 2022.

Intercompany Reinsurance

Equitable Financial and Equitable America receive statutory reserve credits for reinsurance treaties with EQ AZ Life Re to the extent EQ AZ Life Re holds assets in an irrevocable trust (the “EQ AZ Life Re Trust”). As of December 31, 2021, EQ AZ Life Re holds $12.4 billion of assets in the EQ AZ Life Re Trust and letters of credit of $1.9 billion that are guaranteed by Holdings. Under the reinsurance transactions, EQ AZ Life Re is permitted to transfer assets from the EQ AZ Life Re Trust under certain circumstances. The level of statutory reserves held by EQ AZ Life Re fluctuate based on market movements, mortality experience and policyholder behavior. Increasing reserve requirements may necessitate that additional assets be placed in trust and/or additional letters of credit be secured, which could adversely impact EQ AZ Life Re’s liquidity.

Prescribed and Permitted Accounting Practices

Equitable Financial was granted a permitted practice by the NYDFS to apply SSAP 108, Derivatives Hedging Variable Annuity Guarantees on a retroactive basis from January 1, 2021 through June 30, 2021, after reflecting the impacts of our reinsurance transaction with Venerable. The permitted practice was amended to also permit Equitable Financial to adopt SSAP 108 prospectively as of July 1, 2021. Application of the permitted practice partially mitigates the Regulation 213 impact of the Venerable Transaction on Equitable Financial’s statutory capital and surplus. The impact of the application of this permitted practice was an increase of approximately $1.4 billion in statutory special surplus

funds and an increase of $1.4 billion in statutory net income as of December 31, 2021 and for the year then ended, which will be amortized over 5 years for each of the retrospective and prospective components. The permitted practice also resets Equitable Financial’s unassigned surplus to zero as of June 30, 2021 to reflect the transformative nature of the Venerable Transaction.

Equitable Financial and Equitable America cede a portion of their statutory reserves to EQ AZ Life Re, a captive reinsurer, as part of the Company’s capital management strategy. EQ AZ Life Re prepares financial statements in a special purpose framework for statutory reporting.

Differences between Statutory Accounting Principles and U.S. GAAP

Accounting practices used to prepare statutory financial statements for regulatory filings of stock life insurance companies differ in certain instances from U.S. GAAP. The differences between statutory surplus and capital stock determined in accordance with SAP and total equity under U.S. GAAP are primarily: (a) the inclusion in SAP of an AVR intended to stabilize surplus from fluctuations in the value of the investment portfolio; (b) future policy benefits and policyholders’ account balances under SAP differ from U.S. GAAP due to differences between actuarial assumptions and reserving methodologies; (c) certain policy acquisition costs are expensed under SAP but deferred under U.S. GAAP and amortized over future periods to achieve a matching of revenues and expenses; (d) under SAP, Federal income taxes are provided on the basis of amounts currently payable with limited recognition of deferred tax assets while under U.S. GAAP, deferred taxes are recorded for temporary differences between the financial statements and tax basis of assets and liabilities where the probability of realization is reasonably assured; (e) the valuation of assets under SAP and U.S. GAAP differ due to different investment valuation and depreciation methodologies, as well as the deferral of interest-related realized capital gains and losses on fixed income investments; (f) the valuation of the investment in AB and AB Holding under SAP reflects a portion of the market value appreciation rather than the equity in the underlying net assets as required under U.S. GAAP; (g) reporting the surplus notes as a component of surplus in SAP but as a liability in U.S. GAAP; (h) computer software development costs are capitalized under U.S. GAAP but expensed under SAP; (i) certain assets, primarily prepaid assets, are not admissible under SAP but are admissible under U.S. GAAP; and (j) cost of reinsurance which is recognized as expense under SAP and amortized over the life of the underlying reinsured policies under U.S. GAAP.

XML

BUSINESS SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

The Company has four reportable segments: Individual Retirement, Group Retirement, Investment Management and Research and Protection Solutions.

These segments reflect the manner by which the Company’s chief operating decision maker views and manages the business. A brief description of these segments follows:

•The Individual Retirement 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 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 Investment Management and Research segment provides diversified investment management, research and related solutions globally to a broad range of clients through three main client channels - Institutional, Retail and Private Wealth Management - and distributes its institutional research products and solutions through Bernstein Research Services.

•The Protection Solutions segment includes our life insurance and group employee benefits businesses. Our life insurance business offers a variety of VUL, UL and term life products to help affluent and high net worth individuals, as well as small and medium-sized business owners, with their wealth protection, wealth transfer and corporate needs. Our group employee benefits business offers a suite of dental, vision, life, and short- and long-term disability and other insurance products to small and medium-size businesses across the United States.

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) certain changes in the fair value of the derivatives and other securities we use to hedge these features; (ii) the effect of benefit ratio unlock adjustments, including extraordinary economic conditions or events such as COVID-19; and (iii) changes in the fair value of the embedded derivatives reflected within variable annuity products’ net derivative results and the impact of these items on DAC amortization on our SCS product;

•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, COVID-19 related impacts, 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 associated with equity securities and certain legal accruals; 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.

Revenues derived from any customer did not exceed 10% of revenues for the years ended December 31, 2021, 2020 and 2019.

The table below presents operating earnings (loss) by segment and Corporate and Other and a reconciliation to net income (loss) attributable to Holdings for the years ended December 31, 2021, 2020 and 2019, respectively:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Net income (loss) attributable to Holdings	$	(439)	$	(648)	$	(1,764)
Adjustments related to:
Variable annuity product features (1)	4,145		3,912		4,863
Investment (gains) losses	(867)		(744)		(73)
Net actuarial (gains) losses related to pension and other postretirement benefit obligations	120		109		99
Other adjustments (2) (3) (4) (5)	717		952		395
Income tax expense (benefit) related to above adjustments (6)	(864)		(888)		(1,097)
Non-recurring tax items (7)	13		(391)		(66)
Non-GAAP Operating Earnings	$	2,825	$	2,302	$	2,357
Operating earnings (loss) by segment:
Individual Retirement	$	1,444	$	1,536	$	1,598
Group Retirement	$	631	$	491	$	390
Investment Management and Research	$	564	$	432	$	381
Protection Solutions	$	317	$	146	$	336
Corporate and Other (8)	$	(131)	$	(303)	$	(348)

______________

(1)Includes COVID-19 impact on variable annuity product features due to a first quarter 2020 assumption update of $1.5 billion and other COVID-19 related impacts of $35 million for the year ended December 31, 2020.

(2)Includes COVID-19 impact on other adjustments due to a first quarter 2020 assumption update of $1.0 billion and other COVID-19 related impacts of $86 million for the year ended December 31, 2020.

(3)Include separation costs of $82 million, $108 million and $222 million for the years ended December 31, 2021, 2020 and 2019, respectively.

(4)Includes certain legal accruals related to the COI litigation of $207 million for the year ended December 31, 2021. No adjustments were made to prior period operating earnings as the impact was immaterial.

(5)Includes Non-GMxB related derivative hedge gains and losses of $65 million, $(404) million and $36 million for the years ended December 31, 2021, 2020 and 2019, respectively.

(6)Includes income taxes of $(554) million for the above COVID-19 items for the year ended December 31, 2020.

(7)Prior year includes a reduction in the reserve for uncertain tax positions resulting from the completion of an IRS examination in the year ended December 31, 2020.

(8)Includes interest expense and financing fees of $241 million $218 million and $228 million for the years ended December 31, 2021, 2020 and 2019, respectively.

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 segment revenues for the years ended December 31, 2021, 2020 and 2019.

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Segment revenues:
Individual Retirement (1)	$	3,785	$	4,311	$	4,325
Group Retirement (1)	1,372		1,148		1,077
Investment Management and Research (2)	4,430		3,703		3,479
Protection Solutions (1)	3,358		3,144		3,366
Corporate and Other (1)	1,563		1,207		1,228
Adjustments related to:
Variable annuity product features	(4,268)		(2,284)		(3,935)
Investment gains (losses), net	867		744		73
Other adjustments to segment revenues (3)	(71)		442		6
Total revenues	$	11,036	$	12,415	$	9,619

______________

(1)Includes investment expenses charged by AB of $128 million, $71 million and $76 million for the years ended December 31, 2021, 2020 and 2019, respectively, for services provided to the Company.

(2)Inter-segment investment management and other fees of $126 million, $113 million and $104 million for the years ended December 31, 2021, 2020 and 2019, respectively, are included in segment revenues of the Investment Management and Research segment.

(3)Includes COVID-19 impact on other adjustments due to an assumption update of $46 million and other COVID-19 related impacts of $(30) million for the year ended December 31, 2020.

The table below presents total assets by segment as of December 31, 2021 and 2020:

	December 31,
	2021		2020
	(in millions)
Total assets by segment:
Individual Retirement (1)	$	143,663	$	135,764
Group Retirement	55,368		51,466
Investment Management and Research	11,602		11,179
Protection Solutions	50,686		48,568
Corporate and Other	30,943		28,420
Total assets	$	292,262	$	275,397

______________

(1) Increase in Individual Retirement as of December 31, 2021 is primarily due to Amounts due from Reinsurers related to ceded reserves on the Venerable Transaction (see Note 1 of the Notes to these Consolidated Financial Statements).

XML

EQUITY

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

EQUITY

EQUITY

Preferred Stock

Preferred stock authorized, issued and outstanding was as follows:

	December 31, 2021			December 31, 2020
Series	Shares Authorized	Shares  Issued	Shares Outstanding	Shares Authorized	Shares  Issued	Shares Outstanding
Series A	32,000	32,000	32,000	32,000	32,000	32,000
Series B	20,000	20,000	20,000	20,000	20,000	20,000
Series C	12,000	12,000	12,000	—	—	—
Total	64,000	64,000	64,000	52,000	52,000	52,000

Series A Fixed Rate Noncumulative Perpetual Preferred Stock

In November and December 2019, Holdings’ issued a total of 32 million depositary shares, each representing a 1/1,000th interest in share of Series A Preferred Stock, $1.00 par value per share, with a liquidation preference of $25,000 per share, for aggregate net cash proceeds of $775 million ($800 million gross). The preferred stock ranks senior to Holdings’ common stock with respect to the payment of dividends and liquidation. Holdings’ will pay dividends on the Series A Preferred Stock on a noncumulative basis only when, as and if declared by the Company’s Board of Directors (or a duly authorized committee of the Board) and will be payable quarterly in arrears, at an annual rate of 5.25% on the stated amount per share.  In connection with the issuance of the depositary shares and the underlying Series A Preferred Stock, Holdings’ incurred $25 million of issuance costs, which have been recorded as a reduction of additional paid-in capital. The Series A Preferred Stock is redeemable at Holdings’ option in whole or in part, on or after December 15, 2024, at a redemption price of $25,000 per share of preferred stock, plus declared and unpaid dividends. Prior to December 25, 2024, the preferred stock is redeemable at Holdings’ option, in whole but not in part, within 90 days of the occurrence of certain rating agency events at a redemption price equal to $25,500 per share, plus declared and unpaid dividends or certain regulatory capital events at a redemption price equal to $25,000 per share, plus any declared and unpaid dividends.

Series B Fixed Rate Reset Noncumulative Perpetual Preferred Stock

On August 11, 2020, Holdings issued 500,000 depositary shares, each representing a 1/25th interest in a share of Series B Preferred Stock, $1.00 par value per share and liquidation preference of $25,000 per share, for aggregate net cash proceeds of $494 million ($500 million gross). The Series B Preferred Stock ranks senior to Holdings’ common stock and on parity with Holdings’ Series A Preferred Stock with respect to the payment of dividends and liquidation. Holdings will pay dividends on the Series B Preferred Stock on a noncumulative basis only when, as and if declared by the Company’s Board of Directors (or a duly authorized committee of the Board) and will be payable semi-annually in arrears, at an annual rate equal to the fixed rate of 4.950%, which is reset every 5 years starting on December 15, 2025 (“Reset Date”), at a rate per annum equal to the five-year U.S. Treasury Rate plus 4.736%.

In connection with the issuance of the depositary shares and the underlying Series B Preferred Stock, Holdings incurred $6 million of issuance costs, which have been recorded as a reduction of additional paid-in capital. The Series B Preferred Stock is redeemable at Holdings’ option in whole or in part, from time to time, during the three-month period prior to, and including, each Reset Date, at a redemption price equal to $25,000 per share of preferred stock, plus any declared and unpaid dividends. Furthermore, the preferred stock is redeemable at Holdings’ option, in whole but not in part at any time, within 90 days after the occurrence of certain rating agency events at a redemption price equal to $25,500 per share, plus any declared and unpaid dividends or after the occurrence of certain regulatory capital events at a redemption price equal to $25,000 per share, plus any declared and unpaid dividends.

Series C Fixed Rate Reset Noncumulative Perpetual Preferred Stock

On January 8, 2021, Holdings issued 12,000,000 depositary shares, each representing a 1/1,000th interest in a share of the Company’s Series C Fixed Rate Noncumulative Perpetual Preferred Stock (“Series C Preferred Stock”), $1.00 par value per share and liquidation preference of $25,000 per share, for aggregate net cash proceeds of $293 million ($300 million gross). The Series C Preferred Stock ranks senior to Holdings’ common stock and on parity with Holdings’ Series A Preferred Stock and Series B Preferred Stock with respect to the payment of dividends and liquidation. Holdings will pay dividends on the Series C Preferred Stock on a noncumulative basis only when, as and if declared by the Company’s Board of Directors (or a duly authorized committee of the Board) and will be payable quarterly in arrears, at an annual rate equal to the fixed rate of 4.3%.

Dividends to Shareholders

Dividends declared per share were as follows for the periods indicated:

	Year ended December 31,
	2021		2020		2019
Series A dividends declared	$	1,313	$	1,378	$	—
Series B dividends declared	$	1,238	$	426	$	—
Series C dividends declared	$	1,006	$	—	$	—

Common Stock

Dividends declared per share of common stock were as follows for the periods indicated:

	Year Ended December 31,
	2021		2020		2019
Dividends declared	$	0.71	$	0.66	$	0.58

Share Repurchase

In January 2019, Holdings entered into an ASR agreement with a third-party financial institution to repurchase an aggregate of $150 million of Holdings’ common stock. Pursuant to the ASR, Holdings made a prepayment of $150 million and received initial delivery of seven million shares. The ASR terminated during the first quarter of 2019, at which time an additional one million shares were delivered, at an average purchase price of $18.51 per share based on the volume-weighted average price of Holdings’ common stock traded during the pricing period, less an agreed discount. Shares repurchased under the ASR were retired upon receipt resulting in a reduction of Holdings’ total issued shares as of December 31, 2019.

On November 6, 2019, Holdings’ Board of Directors authorized a $400 million share repurchase program with an expiration date of December 31, 2020. On February 26, 2020, Holdings’ Board of Directors authorized an increase of $600 million to the capacity of this program as well as the extension of the term of the program until March 31, 2021. This program was exhausted in January 2021. On October 23, 2020, Holdings’ Board of Directors authorized an incremental $500 million of share repurchase in 2021, subject to the close of the Venerable Transaction. In addition, on February 17, 2021 Holdings announced that its Board of Directors had authorized a $1.0 billion share repurchase program. Under this program, Holdings may, from time to time, purchase up to $1.0 billion of its common stock but it is not obligated to purchase any particular number of shares. Repurchases may be effected in the open market, through derivative, accelerated repurchase and other negotiated transactions and through prearranged trading plans complying with Rule 10b5-1(c) under the Exchange Act. As of December 31, 2021, Holdings had authorized capacity of

approximately $5 million remaining in its share repurchase program, which is inclusive of the $500 million related to the Venerable Transaction.

For the years ended December 31, 2021 , 2020 and 2019, the Company repurchased approximately 51.9 million, 23.7 million and 65.6 million shares of its common stock at a total cost of approximately $1.6 billion, $430 million and $1.3 billion, respectively through open market repurchases, ASRs and privately negotiated transactions. The repurchased common stock was recorded as treasury stock in the consolidated balance sheets. For the years ended December 31, 2021 , 2020 and 2019, the Company reissued approximately 2.3 million, 743 thousand and 387 thousand shares of its treasury stock, respectively. For the year ended December 31, 2021 , 2020 and 2019, the Company retired approximately 32.0 million, 0 shares and 8.1 million shares of its treasury stock, respectively.

In January 2021, Holdings entered into an ASR with a third-party financial institution to repurchase an aggregate of $170 million of Holdings’ common stock. The ASR terminated during the first quarter of 2021, for a total of 6.3 million shares delivered. Shares repurchased under the ASR were retired upon receipt resulting in a reduction of Holdings’ total issued shares as of March 31, 2021.

In March 2021, Holdings entered into an ASR contract with a third-party financial institution to repurchase an aggregate of $200 million of Holdings’ common stock. Pursuant to the ASR, Holdings made a prepayment of $200 million and received initial delivery of 4.9 million shares. The ASR terminated during May 2021, at which time additional shares of 1.1 million were received.

On June 30, 2021, Holdings established an obligation to enter into an ASR with a third-party financial institution to repurchase an aggregate of $300 million of Holdings’ common stock. Pursuant to the ASR, on July 2, 2021, Holdings made a prepayment of $300 million to receive initial delivery of shares. The ASR terminated during the third quarter of 2021 and a total of 9.9 million shares were received. Shares repurchased under the ASR were retired upon receipt resulting in a reduction of Holdings’ total issued shares as of September 30, 2021.

In September 2021, Holdings entered into an ASR contract with a third-party financial institution to repurchase an aggregate of $200 million of Holdings’ common stock. Pursuant to the ASR, Holdings made a prepayment of $200 million and received initial delivery of 5.6 million shares. The ASR terminated during November 2021, at which time additional shares of 0.6 million were received.

On December 22, 2021, Holdings entered into an ASR contract with a third-party financial institution to repurchase an aggregate of $140 million of Holdings’ common stock. Pursuant to the ASR, Holdings made a prepayment of $140 million and received initial delivery of 3.4 million shares. The ASR terminated during January 2022, at which time additional shares of 0.7 million were received. Shares repurchased under the ASR were retired upon receipt resulting in a reduction of Holdings’ total issued shares as of December 31, 2021.

Accumulated Other Comprehensive Income (Loss)

AOCI represents cumulative gains (losses) on items that are not reflected in net income (loss). The balances as of December 31, 2021, and 2020 follow:

	December 31,
	2021		2020
	(in millions)
Unrealized gains (losses) on investments	$	2,684	$	4,797
Defined benefit pension plans	(669)		(935)
Foreign currency translation adjustments	(45)		(34)
Total accumulated other comprehensive income (loss)	1,970		3,828
Less: Accumulated other comprehensive income (loss) attributable to noncontrolling interest	(34)		(35)
Accumulated other comprehensive income (loss) attributable to Holdings	$	2,004	$	3,863

The components of OCI, net of taxes for the years ended December 31, 2021, 2020 and 2019 follow:

		Year Ended December 31,
		2021		2020		2019
	(in millions)
Change in net unrealized gains (losses) on investments:
Net unrealized gains (losses) arising during the period		$	(2,467)	$	4,887	$	3,301
(Gains) losses reclassified into net income (loss) during the period (1)		(698)		(653)		(161)
Net unrealized gains (losses) on investments		(3,165)		4,234		3,140
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other		1,052		(1,278)		(882)
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(562), $786, and $595)		(2,113)		2,956		2,258
Change in defined benefit plans:
Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost (2)		266		48		(15)
Change in defined benefit plans (net of deferred income tax expense (benefit) of $68, $14, and $10)		266		48		(15)
Foreign currency translation adjustments:
Foreign currency translation gains (losses) arising during the period		(11)		22		5
(Gains) losses reclassified into net income (loss) during the period		—		—		—
Foreign currency translation adjustment		(11)		22		5
Total other comprehensive income (loss), net of income taxes		(1,858)		3,026		2,248
Less: Other comprehensive income (loss) attributable to noncontrolling interest		1		7		(4)
Other comprehensive income (loss) attributable to Holdings		$	(1,859)	$	3,019	$	2,252

______________

(1)See “reclassification adjustments” in Note 3 of the Notes to these Consolidated Financial Statements. Reclassification amounts presented net of income tax expense (benefit) of $186 million, $(174) million, and $(43) million for the years ended December 31, 2021, 2020 and 2019, respectively.

(2)These AOCI components are included in the computation of net periodic costs (see Note 14 of the Notes to these Consolidated Financial Statement).

Investment gains and losses reclassified from AOCI to net income (loss) primarily consist of realized gains (losses) on sales and credit losses of AFS securities and are included in total investment gains (losses), net on the consolidated statements of income (loss). Amounts reclassified from AOCI to net income (loss) as related to defined benefit plans primarily consist of amortization of net (gains) losses and net prior service cost (credit) recognized as a component of net periodic cost and reported in compensation and benefits in the consolidated statements of income (loss). Amounts presented in the table above are net of tax.

XML

EARNINGS PER COMMON SHARE

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE

The following table presents a reconciliation of net income (loss) and weighted-average common shares used in calculating basic and diluted EPS for the periods indicated:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Weighted-average common shares outstanding:
Weighted-average common shares outstanding — basic	417.4		450.4		493.6
Effect of dilutive securities:
Employee share awards (1)	—		—		—
Weighted-average common shares outstanding — diluted (2)	417.4		450.4		493.6
Net income (loss):
Net income (loss)	$	(24)	$	(349)	$	(1,467)
Less: Net income (loss) attributable to the noncontrolling interest	415		299		297
Net income (loss) attributable to Holdings	(439)		(648)		(1,764)
Less: Preferred stock dividends	79		53		—
Net income (loss) available to Holdings’ common shareholders	$	(518)	$	(701)	$	(1,764)
EPS:
Basic	$	(1.24)	$	(1.56)	$	(3.57)
Diluted	$	(1.24)	$	(1.56)	$	(3.57)

_____________

(1)Calculated using the treasury stock method.

(2)Due to net loss for the years ended December 31, 2021, 2020 and 2019, approximately 3.8 million, 1.7 million and 0.8 million shares were excluded from the diluted EPS calculation.

For the years ended December 31, 2021, 2020 and 2019 , 8.2 million, 10.0 million, and 6.2 million of outstanding stock awards, respectively, were not included in the computation of diluted EPS because their effect was anti-dilutive.

XML

REDEEMABLE NONCONTROLLING INTEREST

12 Months Ended

Dec. 31, 2021

Noncontrolling Interest [Abstract]

REDEEMABLE NONCONTROLLING INTEREST

REDEEMABLE NONCONTROLLING INTEREST

The changes in the components of redeemable noncontrolling interests are presented in the table that follows:

	Years Ended December 31,
	2021		2020		2019
	(in millions)
Balance, beginning of period	$	143	$	365	$	187
Net earnings (loss) attributable to redeemable noncontrolling interests	5		(3)		34
Purchase/change of redeemable noncontrolling interests	320		(219)		144
Balance, end of period	$	468	$	143	$	365

XML

HELD-FOR-SALE

12 Months Ended

Dec. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

HELD-FOR-SALE

HELD-FOR-SALE: Assets and liabilities related to the business classified as HFS are separately reported in the Consolidated Balance Sheets beginning in the period in which the business is classified as HFS.

Corporate Solutions Life Reinsurance Company

On October 27, 2020, Holdings entered into a Master Transaction Agreement with VIAC. See Note 1 of the Notes to these Consolidated Financial Statements for further information. As a result of the agreement, an estimated impairment loss of $15 million, net of income tax, was recorded for the year ended December 31, 2020 and is included in investment gains (losses), net in the consolidated statements of income (loss). The transaction closed on June 1, 2021 with a gain on sale, net of income tax, of less than $1 million. Accordingly, the Company recovered the impairment previously recorded, thus reflecting a gain of $15 million for the year ended December 31, 2021.

As of December 31, 2020, assets of CS Life and CS Life Re to be sold, net of the estimated impairment loss accrual, was $470 million which is reported in assets HFS and total liabilities of $322 million was reported in liabilities HFS. The assets and liabilities HFS are reported in the Corporate and Other segment. On June 1, 2021, Holdings completed the sale of CS Life and CS Life Re. Refer to Note 1 of the Notes to these Consolidated Financial Statement further details.

The following table summarizes the components of assets and liabilities HFS on the Consolidated Balance Sheets as of December 31, 2020:

	December 31,
	2020
	(in millions)
Assets:
Fixed maturity securities	$	235
Trading securities, at fair value	189
Other invested assets	1
Cash and cash equivalents	39
Other assets	25
Assets held-for-sale	489
Less: Loss accrual	(19)
Total assets held-for-sale	$	470
Liabilities:
Future policy benefits and other policyholder's liabilities:	$	320
Broker-dealer related payables	—
Other liabilities	2
Total liabilities held-for-sale	$	322

XML

SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2021

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

Share Repurchase Program

On February 9, 2022, the Company’s Board of Directors authorized a new $1.2 billion share repurchase program. Under this program, the Company may, from time to time purchase shares of its common stock through various means. The Company may choose to suspend or discontinue the repurchase program at any time. The repurchase program does not obligate the Company to purchase any particular number of shares.

XML

SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES

12 Months Ended

Dec. 31, 2021

SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract]

SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES

SCHEDULE I

SUMMARY OF INVESTMENTS — OTHER THAN INVESTMENTS IN RELATED PARTIES

AS OF DECEMBER 31, 2021

	Cost (1)		Fair Value		Carrying Value
	(in millions)
Fixed maturities, AFS:
U.S. government, agencies and authorities	$	13,056	$	15,385	$	15,385
State, municipalities and political subdivisions	586		662		662
Foreign governments	1,124		1,152		1,152
Public utilities	6,493		6,807		6,807
All other corporate bonds	43,679		45,704		45,704
Residential mortgage-backed	90		98		98
Asset-backed	5,933		5,934		5,934
Commercial mortgage-backed	2,427		2,421		2,421
Redeemable preferred stocks	41		53		53
Total fixed maturities, AFS	73,429		78,216		78,216
Fixed maturities, at fair value using the fair value option	1,637		1,641		1,641
Mortgage loans on real estate (2)	14,095		14,308		14,033
Policy loans	4,024		5,050		4,024
Other equity investments	2,662		2,975		2,975
Trading securities	559		631		631
Other invested assets	3,591		3,591		3,591
Total Investments	$	99,997	$	106,412	$	105,111

______________

(1)Cost for fixed maturities represents original cost, reduced by repayments and write-downs and adjusted for amortization of premiums or accretion of discount; cost for equity securities represents original cost reduced by write-downs; cost for other limited partnership interests represents original cost adjusted for equity in earnings and reduced by distributions.

(2)Carrying value for mortgage loans on real estate represents original cost adjusted for amortization of premiums or accretion of discount and reduced by credit loss allowance.

XML

SCHEDULE II - PARENT COMPANY

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

SCHEDULE II - PARENT COMPANY

Balance Sheets (Parent Company)

December 31, 2021 and 2020

	December 31,		December 31,
	2021		2020
	(in millions, except share amounts)
ASSETS
Investment in consolidated subsidiaries	$	13,128	$	15,603
Fixed maturities available-for-sale, at fair value (amortized cost of $884 and $183)	874		1,116
Other equity investments	92		66
Total investments	14,094		16,785
Cash and cash equivalents	867		1,972
Goodwill and other intangible assets, net	1,255		1,245
Loans to affiliates	755		675
Current and deferred income taxes assets	600		209
Other assets	547		903
Total Assets	$	18,118	$	21,789
LIABILITIES
Short-term and long-term debt	$	3,839	$	4,115
Employee benefits liabilities	853		1,177
Loans from affiliates	1,900		900
Accrued liabilities	7		21
Total Liabilities	$	6,599	$	6,213
EQUITY ATTRIBUTABLE TO HOLDINGS
Preferred stock and additional paid-in capital, $1 par value and $25,000 liquidation preference	$	1,562	$	1,269
Common stock, $0.01 par value, 2,000,000,000 shares authorized; 520,918,331 and 552,896,328 shares issued, respectively; 391,290,224 and 440,776,011 shares outstanding, respectively	4		5
Additional paid-in capital	1,919		1,985
Treasury stock, at cost, 129,628,107 and 112,120,317 shares, respectively	(2,850)		(2,245)
Retained earnings	8,880		10,699
Accumulated other comprehensive income (loss)	2,004		3,863
Total equity attributable to Holdings	11,519		15,576
Total Liabilities and Equity Attributable to Holdings	$	18,118	$	21,789

The financial information of Equitable Holdings, Inc. should be read in conjunction with the Consolidated Financial Statements and Notes thereto.

STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (PARENT COMPANY)

YEARS ENDED DECEMBER 31, 2021, 2020, AND 2019

	2021		2020		2019
	(in millions)
REVENUES
Equity in income (losses) from continuing operations of consolidated subsidiaries	$	(152)	$	(668)	$	(1,592)
Net investment income (loss)	26		26		29
Investment gains (losses), net	(12)		—		(1)
Other income	—		—		12
Total revenues	(138)		(642)		(1,552)
EXPENSES
Interest expense	241		229		237
Other operating costs and expenses	58		40		83
Total expenses	299		269		320
Income (loss) from continuing operations, before income taxes	(437)		(911)		(1,872)
Income tax (expense) benefit	(2)		263		108
Net income (loss) attributable to Holdings	(439)		(648)		(1,764)
Less: Preferred stock dividends	79		53		—
Net income (loss) available to Holdings' common shareholders	(518)		(701)		(1,764)
Other comprehensive income (loss)	(1,859)		3,019		2,252
Total comprehensive income (loss) attributable to Holdings	$	(2,377)	$	2,318	$	488

The financial information of Equitable Holdings, Inc. should be read in conjunction with the Consolidated Financial Statements and Notes thereto.

STATEMENTS OF CASH FLOWS (PARENT COMPANY)

YEARS ENDED DECEMBER 31, 2021, 2020, AND 2019

	2021		2020		2019
	(in millions)
Net income (loss) attributable to Holdings	$	(439)	$	(648)	$	(1,764)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity in net (earnings) loss of subsidiaries	152		668		1,592
Non-cash long term incentive compensation expense	15		27		69
Amortization and depreciation	60		40		33
Equity (income) loss limited partnerships	(19)		(8)		1
Changes in:
Current and deferred taxes	(151)		(250)		202
Dividends from subsidiaries	792		2,877		1,341
Other, net	14		(135)		(76)
Net cash provided by (used in) operating activities	$	424	$	2,571	$	1,398
Cash flows from investing activities:
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale	$	210	$	131	$	105
Short-term investments	—		—		80
Payment for the purchase/origination of:
Fixed maturities, available-for-sale	—		(1,011)		—
Short-term investments	—		—		—
Other	(7)		(21)		(14)
Net issuance on credit facilities to affiliates	(80)		(115)		(560)
Repayments of loans to affiliates	—		—		572
Proceeds from the sale of subsidiary	215		—		—
Increase in cash and cash equivalents from merger of AXA Tech	—		—		11
Net cash provided by (used in) investing activities	$	338	$	(1,016)	$	194
Cash flows from financing activities:
Issuance of preferred stock	$	293	$	494	$	775
Repayment of long-term debt	(280)		—		(300)
Proceeds from loans from affiliates	1,000		—		900
Repayments of loans from affiliates	—		(300)		(300)
Shareholder dividends paid	(296)		(297)		(285)
Preferred dividends paid	(79)		(53)		—
Purchase of treasury shares	(1,637)		(430)		(1,350)
Capital contribution to subsidiaries	(815)		(350)		(86)
Other, net	(53)		—		—
Net cash provided by (used in) financing activities	$	(1,867)	$	(936)	$	(646)
Change in cash and cash equivalents	(1,105)		619		946
Cash and cash equivalents, beginning of year	1,972		1,353		407
Cash and cash equivalents, end of year	$	867	$	1,972	$	1,353
Non-cash transactions from investing and financing activities:
Dividend of AB Units from subsidiary	$	23	$	—	$	—
Other assets	$	—	$	—	$	4
Other liabilities	$	—	$	—	$	(16)

The financial information of Equitable Holdings, Inc. should be read in conjunction with the Consolidated Financial Statements and Notes thereto.

NOTES TO PARENT COMPANY FINANCIAL STATEMENTS

1)    BASIS OF PRESENTATION

The financial information of Holdings should be read in conjunction with the Consolidated Financial Statements and Notes thereto. The Company is the holding company for a diversified financial services organization.

2)    LOANS TO AFFILIATES

On November 4, 2019, Holdings made available to AB a $900 million committed, unsecured senior credit facility (the “EQH Facility”). The EQH Facility matures on November 4, 2024 and is available for AB's general business purposes. Borrowings by AB under the EQH Facility generally bear interest at a rate per annum based on prevailing overnight commercial paper rates. The EQH Facility contains affirmative, negative and financial covenants which are substantially similar to those in AB’s committed bank facilities. The EQH Facility also includes customary events of default substantially similar to those in AB’s committed bank facilities, including provisions under which, upon the occurrence of an event of default, all outstanding loans may be accelerated and/or the lender’s commitment may be terminated. Amounts under the EQH Facility may be borrowed, repaid and re-borrowed by AB from time to time until the maturity of the facility. AB or Holdings may reduce or terminate the commitment at any time without penalty upon proper notice. Holdings also may terminate the facility immediately upon a change of control of the general partner. In As of December 31, 2021 and 2020, $755 million and $675 million were outstanding under the EQH Facility respectively .

In 2018, Equitable Financial received a $572 million loan from Holdings. The loan had an interest rate of 3.75% and was repaid in March 2019.

3)    LOANS FROM AFFILIATES

In June 2021, Holdings received a $1.0 billion 10-year term loan from Equitable Financial. The loan has an interest rate of 3.23% and matures in June 2031.

In November 2019, Holdings received a $900 million loan from Equitable Financial. The loan has an interest rate of one- month LIBOR plus 1.33%. The loan matures on November 4, 2024. As of December 31, 2021, $900 million was outstanding on the loan.

In April 2018, Holdings received a $800 million loan from Equitable Financial. The loan has an interest rate of 3.69% and would mature in April 2021. In December 2018, Holdings repaid $200 million of this loan. In December 2019, Holdings repaid $300 million. On December 30, 2020, the remainder of this loan was repaid.

Interest cost related to loans from affiliates totaled $30 million, $32 million and $26 million for the years ended December 31, 2021, 2020 and 2019, respectively.

4)    INCOME TAXES

Holdings and certain of its consolidated subsidiaries and affiliates file a consolidated federal income tax return. Holdings has tax sharing agreements with certain of its subsidiaries and generally will either receive or pay these subsidiaries for utilization of the subsidiaries’ tax benefits or expense. Holdings settles these amounts annually.

5)    ISSUANCE OF SERIES A, SERIES B AND SERIES C FIXED RATE NONCUMULATIVE PERPETUAL PREFERRED STOCK

See Note 20 of the Notes to these Consolidated Financial Statements.

6)    SHARE REPURCHASE

See Note 20 of the Notes to these Consolidated Financial Statements.

XML

SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION

12 Months Ended

Dec. 31, 2021

SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract]

SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION

SUPPLEMENTARY INSURANCE INFORMATION

AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2021

	Individual Retirement		Group Retirement		Investment Management and Research		Protection Solutions		Corporate and Other		Total
	(in millions)
Deferred policy acquisition costs	$	3,639	$	776	$	—	$	1,066	$	10	$	5,491
Policyholders’ account balances	38,456		13,049		—		15,027		12,825		79,357
Future policy benefits and other policyholders' liabilities	22,904		3		—		4,843		8,967		36,717
Policy charges and premium revenue	1,867		371		—		2,016		343		4,597
Net derivative gains (losses)	(4,386)		(29)		(13)		(83)		46		(4,465)
Net investment income (loss)	1,221		751		25		1,102		747		3,846
Policyholders’ benefits and interest credited	912		303		—		2,478		744		4,437
Amortization of deferred policy acquisition costs	294		2		—		95		2		393
All other operating expenses (1)	814		362		3,241		780		1,178		6,375

AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2020

	Individual Retirement		Group Retirement		Investment Management and Research		Protection Solutions		Corporate and Other		Total
	(in millions)
Deferred policy acquisition costs (2)	$	3,178	$	632	$	—	$	418	$	15	$	4,243
Policyholders’ account balances (2)	30,736		12,828		—		14,875		8,381		66,820
Future policy benefits and other policyholders' liabilities (2)	25,212		9		—		5,031		9,629		39,881
Policy charges and premium revenue	2,034		295		—		2,013		390		4,732
Net derivative gains (losses)	(1,999)		(2)		(36)		413		(98)		(1,722)
Net investment income (loss)	1,337		644		36		941		519		3,477
Policyholders’ benefits and interest credited	3,086		305		—		2,372		785		6,548
Amortization of deferred policy acquisition costs	321		73		—		1,220		(1)		1,613
All other operating expenses (1)	724		284		2,815		546		978		5,347

AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2019

	Individual Retirement		Group Retirement		Investment Management and Research		Protection Solutions		Corporate and Other		Total
	(in millions)
Deferred policy acquisition costs (2)	$	3,285	$	659	$	—	$	1,880	$	13	$	5,837
Policyholders’ account balances (2)	26,359		12,068		—		14,090		6,362		58,879
Future policy benefits and other policyholders' liabilities (2)	20,401		7		—		4,156		10,071		34,635
Policy charges and premium revenue	2,085		279		—		2,148		413		4,925
Net derivative gains (losses)	(3,850)		6		(38)		(28)		(102)		(4,012)
Net investment income (loss)	1,478		593		99		967		562		3,699
Policyholders’ benefits and interest credited	2,321		304		—		2,172		851		5,648
Amortization of deferred policy acquisition costs	283		35		—		274		5		597
All other operating expenses (1)	785		318		2,709		576		1,046		5,434

_____________

(1)Operating expenses are allocated to segments.

(2)Excludes amounts reclassified as HFS.

XML

SCHEDULE IV - REINSURANCE

12 Months Ended

Dec. 31, 2021

SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract]

SCHEDULE IV - REINSURANCE

REINSURANCE (1)

AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2021, 2020 AND 2019

	Gross Amount		Ceded to Other Companies		Assumed from Other Companies		Net Amount		Percentage of Amount Assumed to Net
					(in millions)
2021
Life insurance in-force	$	484,082	$	185,203	$	31,971	$	330,850	9.7	%
Premiums:
Life insurance and annuities	$	802	$	155	$	181	$	828	21.9	%
Accident and health	168		44		8		132		6.1	%
Total premiums	$	970	$	199	$	189	$	960	19.7	%
2020
Life insurance in-force	$	473,514	$	94,231	$	33,098	$	412,381	8.0	%
Premiums:
Life insurance and annuities	$	805	$	113	$	213	$	905	23.5	%
Accident and health	124		41		9		92		9.8	%
Total premiums	$	929	$	154	$	222	$	997	22.3	%
2019
Life insurance in-force	$	492,780	$	65,427	$	32,365	$	459,718	7.0	%
Premiums:
Life insurance and annuities	$	971	$	101	$	211	$	1,081	19.5	%
Accident and health	97		40		9		66		13.6	%
Total premiums	$	1,068	$	141	$	220	$	1,147	19.2	%

______________

(1)    Includes amounts related to the discontinued group life and health business.

XML

SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Basis of Presentation and Principles of Consolidation

Basis of Presentation and Principles of Consolidation

The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions (including normal, recurring accruals) that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates.

The accompanying consolidated financial statements present the consolidated results of operations, financial condition, and cash flows of the Company and its subsidiaries and those investment companies, partnerships and joint ventures in which the Company has control and a majority economic interest as well as those VIEs that meet the requirements for consolidation.

Financial results in the historical consolidated financial statements may not be indicative of the results of operations, comprehensive income (loss), financial position, equity or cash flows that would have been achieved had we operated as a separate, standalone entity during the reporting periods presented. We believe that the consolidated financial statements include all adjustments necessary for a fair presentation of the results of operations of the Company.

All significant intercompany transactions and balances have been eliminated in consolidation. The years “2021”, “2020” and “2019” refer to the years ended December 31, 2021, 2020 and 2019, respectively.

Adoption of New Accounting Pronouncements and Future Adoption of New Accounting Pronouncements

Adoption of New Accounting Pronouncements

Description	Effect on the Financial Statement or Other Significant Matters
ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes
This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, as well as clarifying and amending existing guidance.	On January 1, 2021, the Company adopted the new accounting standards update. The new guidance was applied either on a retrospective, modified retrospective or prospective basis based on the items to which the amendments relate. The adoption did not have a material impact on the Company’s consolidated financial position, results of operations and cash flows as of the adoption date.

Future Adoption of New Accounting Pronouncements

Description	Effective Date and Method of Adoption	Effect on the Financial Statement or Other Significant Matters
ASU 2018-12: Financial Services - Insurance (Topic 944); ASU 2020-11: Financial Services - Insurance (Topic 944): Effective Date and Early Application

Description	Effective Date and Method of Adoption	Effect on the Financial Statement or Other Significant Matters
This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: 1. Measurement of the liability for future policy benefits for traditional and limited payment contracts. The ASU requires companies to review, and if necessary, update cash flow assumptions at least annually for non-participating traditional and limited-payment insurance contracts. The ASU also prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts. 2. Measurement of MRBs. MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. 3. Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts.  4. Expanded footnote disclosures. The ASU requires additional disclosures including information about significant inputs, judgements, assumptions and methods used in measurement	In November 2020, the FASB issued ASU 2020-11 which deferred the effective date of the amendments in ASU 2018-12 for all insurance entities. ASU 2018-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is allowed. For the liability for future policyholder benefits for traditional and limited payment contracts, companies can elect one of two adoption methods. Companies can either elect a modified retrospective transition method applied to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or a full retrospective transition method using actual historical experience information as of contract inception. The same adoption method must be used for deferred policy acquisition costs. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented.	The Company continues to progress with implementation efforts and the evaluation of the impact that adoption of this guidance will have on the Company’s consolidated financial statements. Due to its extensive nature, the adoption of the ASU is expected to have a significant impact on the Company’s consolidated financial statements, as well as systems, processes and controls. Effective January 1, 2023, the new guidance will be adopted using the modified retrospective approach, except for MRBs which will use the full retrospective approach. The Company has created a governance framework and implementation plan to ensure timely adoption of the guidance. In preparation for implementation, the Company continues to refine key accounting policy decisions, modernize processes and update internal controls. These changes include modifications of actuarial valuation systems, data sourcing, analytical procedures and reporting processes. The impact on total equity of applying this ASU is estimated to be less than the current amount of reported AOCI as of December 31, 2021. The majority of the total equity impact as of December 31, 2021 is expected to be reflected in AOCI due to decreases in the Company’s estimate of its non-performance risk on variable annuity guarantees accounted for as MRBs for the first time under the guidance. The estimated impact to the retained earnings element of total equity as of December 31, 2021, due to accounting for variable annuity guarantees as MRBs that are not currently measured at fair value, is mitigated by the Company’s present use of a near industry low interest rate assumption of 2.25% on GMIB business. Because movements in equity markets, interest rates and credit spreads are unpredictable and at times volatile, it is possible that the estimated effects of adoption could change materially between December 31, 2021 and January 1, 2023.

Description	Effective Date and Method of Adoption	Effect on the Financial Statement or Other Significant Matters
ASU2020-04: Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting
The amendments in this ASU provide optional expedients and exceptions to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met.  The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform.	This ASU is effective as of March 12, 2020 through December 31, 2022. On December 15, 2021, the FASB tentatively approved deferring the sunset date of the guidance in Topic 848 to December 31, 2024.	The Company is currently assessing the applicability of the optional expedients and exceptions provided under the ASU. Management is evaluating the impact that the adoption of this guidance will have on the Company’s consolidated financial statements.

Investments

Investments

The carrying values of fixed maturities classified as AFS are reported at fair value. Changes in fair value are reported in OCI, net of allowance for credit losses, policy related amounts and deferred income taxes. Changes in credit losses are recognized in Investment gains (losses), net. The redeemable preferred stock investments that are reported in fixed maturities include REIT, perpetual preferred stock and redeemable preferred stock. These securities may not have a stated maturity, may not be cumulative and do not provide for mandatory redemption by the issuer. Effective January 1, 2021, the Company began classifying certain preferred stock as equity securities to better reflect the economics and nature of these securities. These preferred stock securities are reported in other equity investments.

The Company determines the fair values of fixed maturities and equity securities based upon quoted prices in active markets, when available, or through the use of alternative approaches when market quotes are not readily accessible or available. These alternative approaches include matrix or model pricing and use of independent pricing services, each supported by reference to principal market trades or other observable market assumptions for similar securities. More specifically, the matrix pricing approach to fair value is a discounted cash flow methodology that incorporates market interest rates commensurate with the credit quality and duration of the investment. The Company’s management, with the assistance of its investment advisors, evaluates AFS debt securities that experienced a decline in fair value below amortized cost for credit losses which are evaluated in accordance with the new financial instruments credit losses guidance. Integral to this review is an assessment made each quarter, on a security-by-security basis, by the IUS Committee, of various indicators of credit deterioration to determine whether the investment security has experienced a credit loss. This assessment includes, but is not limited to, consideration of the severity of the unrealized loss, failure, if any, of the issuer of the security to make scheduled payments, actions taken by rating agencies, adverse conditions specifically related to the security or sector, and the financial strength, liquidity and continued viability of the issuer.

The Company recognizes an allowance for credit losses on AFS debt securities with a corresponding adjustment to earnings rather than a direct write down that reduces the cost basis of the investment, and credit losses are limited to the amount by which the security’s amortized cost basis exceeds its fair value. Any improvements in estimated credit losses on AFS debt securities are recognized immediately in earnings. Management does not use the length of time a security has been in an unrealized loss position as a factor, either by itself or in combination with other factors, to conclude that a credit loss does not exist.

When the Company determines that there is more than 50% likelihood that it is not going to recover the principal and interest cash flows related to an AFS debt security, the security is placed on nonaccrual status and the Company reverses accrued interest receivable against interest income. Since the nonaccrual policy results in a timely reversal of accrued interest receivable, the Company does not record an allowance for credit losses on accrued interest receivable.

If there is no intent to sell or likely requirement to dispose of the fixed maturity security before its recovery, only the credit loss component of any resulting allowance is recognized in income (loss) and the remainder of the fair value loss is recognized in OCI. The amount of credit loss is the shortfall of the present value of the cash flows expected to be collected as compared to the amortized cost basis of the security. The present value is calculated by discounting management’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security at the date of acquisition. Projections of future cash flows are based on assumptions regarding probability of default and estimates regarding the amount and timing of recoveries. These assumptions and estimates require use of management

judgment and consider internal credit analyses as well as market observable data relevant to the collectability of the security. For mortgage and asset-backed securities, projected future cash flows also include assumptions regarding prepayments and underlying collateral value.

Write-offs of AFS debt securities are recorded when all or a portion of a financial asset is deemed uncollectible. Full or partial write-offs are recorded as reductions to the amortized cost basis of the AFS debt security and deducted from the allowance in the period in which the financial assets are deemed uncollectible. The Company elected to reverse accrued interest deemed uncollectible as a reversal of interest income. In instances where the Company collects cash that it has previously written off, the recovery will be recognized through earnings or as a reduction of the amortized cost basis for interest and principal, respectively.

Policy loans represent funds loaned to policyholders up to the cash surrender value of the associated insurance policies and are carried at the unpaid principal balances due to the Company from the policyholders. Interest income on policy loans is recognized in net investment income at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies.

Partnerships, investment companies and joint venture interests that the Company has control of and has an economic interest in or those that meet the requirements for consolidation under accounting guidance for consolidation of VIEs are consolidated. Those that the Company does not have control of and does not have a majority economic interest in and those that do not meet the VIE requirements for consolidation are reported on the equity method of accounting and are reported in other equity investments. The Company records its interests in certain of these partnerships on a month or one quarter lag.

Trading securities, which include equity securities and fixed maturities, are carried at fair value based on quoted market prices, with realized and unrealized gains (losses) reported in net investment income (loss) in the consolidated statements of income (loss).

The carrying values of certain fixed maturities are reported at fair value where the fair value option has been elected. The fair value option allows the Company to elect fair value as an alternative measurement for selected financial assets and financial liabilities not otherwise reported at fair value. Such elections have been made to help mitigate volatility in earnings that result from different measurement attributes. Electing the fair value option also allows the consistent accounting in net investment income (loss) for certain assets and liabilities. Changes in fair value of fixed maturities that have elected the fair value option are reflected in realized and unrealized gains (losses) reported in net investment income (loss) in the consolidated statements of income (loss).

Notes issued by consolidated variable interest entities represent notes issued by certain asset-backed investment vehicles, primarily CLOs, which we are required to consolidate. The creditors of these VIEs do not have recourse to the Company in excess of the assets contained within the VIEs. The Company has elected the fair value option for the majority of these notes and has based the fair value on the corresponding debt security collateral. Changes in fair value are reported in net investment income (loss).

COLI has been purchased by the Company and certain subsidiaries on the lives of certain key employees and the Company and these subsidiaries are named as beneficiaries under these policies. COLI is carried at the cash surrender value of the policies. As of December 31, 2021 and 2020, the carrying value of COLI was $1.0 billion and $992 million, respectively, and is reported in other invested assets in the consolidated balance sheets.

Cash and cash equivalents includes cash on hand, demand deposits, money market accounts, overnight commercial paper and highly liquid debt instruments purchased with an original maturity of three months or less. Due to the short-term nature of these investments, the recorded value is deemed to approximate fair value. Cash and securities segregated primarily includes U.S. Treasury Bills segregated by AB in a special reserve bank custody account for the exclusive benefit of its brokerage customers under Rule 15c3-3 of the Exchange Act.

Derivatives

Derivatives

Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, values of securities or commodities, credit spreads, market volatility, expected returns and liquidity. Values can also be affected by changes in estimates and assumptions, including those related to counterparty behavior and non-performance risk used in valuation models. Derivative financial instruments generally used by the Company include equity, currency, and interest rate futures, total return and/or other equity swaps, interest rate swaps and floors, swaptions, variance swaps and equity options, all of which may be exchange-traded or contracted in the OTC market. All derivative positions are carried in the consolidated balance sheets at fair value, generally by obtaining quoted market prices or through the use of valuation models.

Freestanding derivative contracts are reported in the consolidated balance sheets either as assets within “other invested assets” or as liabilities within “other liabilities.” The Company nets the fair value of all derivative financial instruments with counterparties for which an ISDA Master Agreement and related CSA have been executed. All changes in the fair value of the Company’s freestanding derivative positions not designated to hedge accounting relationships, including net receipts and payments, are included in “net derivative gains (losses)” without considering changes in the fair value of the economically associated assets or liabilities.

The Company has designated certain derivatives it uses to economically manage asset/liability risk in relationships which qualify for hedge accounting. To qualify for hedge accounting, we formally document our designation at inception of the hedge relationship as a cash flow, fair value or net investment hedge. This documentation includes our risk management objective and strategy for undertaking the hedging transaction. The Company identifies how the hedging instrument is expected to offset the designated risks related to the hedged item and the method that will be used to retrospectively and prospectively assess the hedge effectiveness. To qualify for hedge accounting, a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed and documented at inception and periodically throughout the life of the hedge accounting relationship.

The Company does not exclude any components of the hedging instrument from the effectiveness assessments and therefore does not separately measure or account for any excluded components of the hedging instrument.

While in cash flow hedge relationships, any periodic net receipts and payments from the hedging instrument are included in the income or expense line that the hedged item’s periodic income or expense is recognized. Other changes in the fair value of the hedging instrument while in a cash flow hedging relationship are reported within OCI. These amounts are deferred in AOCI until they are reclassified to Net income (loss). The reclassified amount offsets the effect of the cash flows on Net income (loss) in the same period when the hedged item affects earnings and on the same line as the hedged item.

We discontinue cash flow hedge accounting prospectively when the Company determines: (1) the hedging instrument is no longer highly effective in offsetting changes in the cash flow from the hedged risk, (2) the hedged item is no longer probable of occurring within two months of their forecast, or (3) the hedging instrument is otherwise redesignated from the hedging relationship. Changes in the fair value of the derivative after discontinuation of cash flow hedge accounting are accounted for as freestanding derivative positions not designated to hedge accounting relationships unless and until the derivative is redesignated to a hedge accounting relationship. When cash flow hedge accounting is discontinued the amounts deferred in AOCI during the hedge relationship continue to be deferred in AOCI, as long as the hedged items continue to be probable of occurring within two months of their forecast, until the hedged item affects Net income (loss). Any amount deferred in AOCI for hedged items which are no longer probable of occurring within two months of their forecast will be reclassified to “net derivative gains (losses)” at that time.

The Company is a party to financial instruments and other contracts that contain “embedded” derivative instruments. At inception, the Company assesses whether the economic characteristics of the embedded instrument are “clearly and closely related” to the economic characteristics of the remaining component of the “host contract” and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. Once those criteria are met the resulting embedded derivative is bifurcated from the host contract, carried in the consolidated balance sheets at fair value, and changes in its fair value are recognized immediately and captioned in the consolidated statements of income (loss) according to the nature of the related host contract. For certain financial instruments that contain an embedded derivative that otherwise would need to be bifurcated and reported at fair value, the Company instead may elect to carry the entire instrument at fair value.

Mortgage Loans on Real Estate

Mortgage Loans on Real Estate

Mortgage loans are stated at unpaid principal balances, net of unamortized discounts and the allowance for credit losses. The Company calculates the allowance for credit losses in accordance with the CECL model in order to provide for the risk of credit losses in the lending process.

Expected credit losses for loans with similar risk characteristics are estimated on a collective (i.e., pool) basis in order to meet CECL’s risk of loss concept which requires the Company to consider possibilities of loss, even if remote.

For collectively evaluated mortgages, the Company estimates the allowance for credit losses based on the amortized cost basis of its mortgages over their expected life using a PD / LGD model. The PD/LGD model incorporates the Company’s reasonable and supportable forecast of macroeconomic information over a specified period. The length of the reasonable and supportable forecast period is reassessed on a quarterly basis and may be adjusted as appropriate over time to be consistent with macroeconomic conditions and the environment as of the reporting date. For periods beyond the reasonable and supportable forecast period, the model reverts to historical loss information. The PD and LGD are estimated at the loan-level based on loans’ current and forecasted risk characteristics as well as macroeconomic forecasts. The PD is estimated using both macroeconomic conditions as well as individual loan risk characteristics including LTV ratios, DSC ratios, seasoning, collateral type, geography, and underlying credit. The LGD is driven primarily by the type and value of collateral, and secondarily by expected liquidation costs and time to recovery.

For individually evaluated mortgages, the Company continues to recognize a valuation allowance on the present value of expected future cash flows discounted at the loan’s original effective interest rate or on its collateral value.

The CECL model is configured to the Company’s specifications and takes into consideration the detailed risk attributes of each discrete loan in the mortgage portfolio which include, but are not limited to the following:

•LTV ratio – Derived from current loan balance divided by the fair market value of the property. An LTV ratio in excess of 100% indicates an underwater mortgage.

•DSC ratio – Derived from actual operating earnings divided by annual debt service. If the ratio is below 1.0x, then the income from the property does not support the debt.

•Occupancy – Criteria varies by property type but low or below market occupancy is an indicator of sub-par property performance.

•Lease expirations – The percentage of leases expiring in the upcoming 12 to 36 months are monitored as a decline in rent and/or occupancy may negatively impact the debt service coverage ratio. In the case of single-tenant properties or properties with large tenant exposure, the lease expiration is a material risk factor.

•Other – Any other factors such as maturity, borrower/tenant related issues, payment status, property condition, or current economic conditions may call into question the performance of the loan.

Mortgage loans that do not share similar risk characteristics with other loans in the portfolio are individually evaluated quarterly by the Company’s IUS Committee. The allowance for credit losses on these individually evaluated mortgages is a loan-specific reserve as a result of the loan review process that is recorded based on the present value of expected future cash flows discounted at the loan’s effective interest rate or based on the fair value of the collateral. The individually assessed allowance for mortgage loans can increase or decrease from period to period based on such factors.

Individually assessed loans may include, but are not limited to, mortgages that have deteriorated in credit quality such as a TDR and reasonably expected TDRs, mortgages for which foreclosure is probable, and mortgages which have been classified as “potential problem” or “problem” loans within the Company’s IUS Committee processes as described below.

Within the IUS process, commercial mortgages 60 days or more past due and agricultural mortgages 90 days or more past due, as well as all mortgages in the process of foreclosure, are identified as problem mortgage loans. Based on its monthly monitoring of mortgages, a class of potential problem mortgage loans are also identified, consisting of mortgage loans not currently classified as problem mortgage loans but for which management has doubts as to the ability of the borrower to comply with the present loan payment terms and which may result in the loan becoming a problem or being modified. The decision whether to classify a performing mortgage loan as a potential problem

involves judgments by management as to likely future industry conditions and developments with respect to the borrower or the individual mortgaged property.

Individually assessed mortgage loans without provision for losses are mortgage loans where the fair value of the collateral or the net present value of the expected future cash flows related to the loan equals or exceeds the recorded investment. Interest income earned on mortgage loans where the collateral value is used to measure impairment is recorded on a cash basis. Interest income on mortgage loans where the present value method is used to measure impairment is accrued on the net carrying value amount of the loan at the interest rate used to discount the cash flows.

Mortgage loans are placed on nonaccrual status once management believes the collection of accrued interest is not probable. Once mortgage loans are classified as nonaccrual mortgage loans, interest income is recognized under the cash basis of accounting and the resumption of the interest accrual would commence only after all past due interest has been collected or the mortgage loan has been restructured to where the collection of interest is considered likely. The Company charges off loan balances and accrued interest that are deemed uncollectible.

The components of amortized cost for mortgage loans on the consolidated balance sheets excludes accrued interest amounts because the Company presents accrued interest receivables within other assets. Once mortgage loans are placed on nonaccrual status, the Company reverses accrued interest receivable against interest income. Since the nonaccrual policy results in the timely reversal of accrued interest receivable, the Company does not record an allowance for credit losses on accrued interest receivable.

Troubled Debt Restructuring

Troubled Debt RestructuringThe Company invests in commercial and agricultural mortgage loans included in the balance sheet as mortgage loans on real estate and privately negotiated fixed maturities included in the balance sheet as fixed maturities AFS. Under certain circumstances, modifications are granted to these contracts. Each modification is evaluated as to whether a TDR has occurred. A modification is a TDR when the borrower is in financial difficulty and the creditor makes concessions. Generally, the types of concessions may include reducing the face amount or maturity amount of the debt as originally stated, reducing the contractual interest rate, extending the maturity date at an interest rate lower than current market interest rates and/or reducing accrued interest. The Company considers the amount, timing and extent of the concession granted in determining any impairment or changes in the specific credit allowance recorded in connection with the TDR. A credit allowance may have been recorded prior to the period when the loan is modified in a TDR. Accordingly, the carrying value (net of the allowance) before and after modification through a TDR may not change significantly, or may increase if the expected recovery is higher than the pre-modification recovery assessment.

Net Investment Income (Loss), Investment Gains (Losses), Net and Unrealized Investment Gains (Losses)

Net Investment Income (Loss), Investment Gains (Losses) Net and Unrealized Investment Gains (Losses)

Realized investment gains (losses) are determined by identification with the specific asset and are presented as a component of revenue. Changes in the allowance for credit losses are included in investment gains (losses), net.

Realized and unrealized holding gains (losses) on trading and equity securities are reflected in net investment income (loss).

Unrealized investment gains (losses) on fixed maturities designated as AFS held by the Company are accounted for as a separate component of AOCI, net of related deferred income taxes, as are amounts attributable to certain pension operations, Closed Block’s policyholders’ dividend obligation, insurance liability loss recognition, DAC related to UL policies, investment-type products and participating traditional life policies.

Changes in unrealized gains (losses) reflect changes in fair value of only those fixed maturities classified as AFS and do not reflect any change in fair value of policyholders’ account balances and future policy benefits.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

See Note 8 of the Notes to these Consolidated Financial Statements for additional information regarding determining the fair value of financial instruments.

Recognition of Insurance Income and Related Expenses

Recognition of Insurance Income and Related Expenses

Deposits related to UL and investment-type contracts are reported as deposits to policyholders’ account balances. Revenues from these contracts consist of fees assessed during the period against policyholders’ account balances for mortality charges, policy administration charges and surrender charges. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policyholders’ account balances.

Premiums from participating and non-participating traditional life and annuity policies with life contingencies generally are recognized in income when due. Benefits and expenses are matched with such income so as to result in the recognition of profits over the life of the contracts. This match is accomplished by means of the provision for liabilities for future policy benefits and the deferral and subsequent amortization of DAC.

For contracts with a single premium or a limited number of premium payments due over a significantly shorter period than the total period over which benefits are provided, premiums are recorded as revenue when due with any excess profit deferred and recognized in income in a constant relationship to insurance in-force or, for annuities, the amount of expected future benefit payments.

Premiums from individual health contracts are recognized as income over the period to which the premiums relate in proportion to the amount of insurance protection provided.

DAC

DAC

Acquisition costs that vary with and are primarily related to the acquisition of new and renewal insurance business, reflecting incremental direct costs of contract acquisition with independent third parties or employees that are essential to the contract transaction, as well as the portion of employee compensation, including payroll fringe benefits and other costs directly related to underwriting, policy issuance and processing, medical inspection, and contract selling for successfully negotiated contracts including commissions, underwriting, agency and policy issue expenses, are deferred. In each reporting period, DAC amortization, net of the accrual of imputed interest on DAC balances, is recorded to amortization of deferred policy acquisition costs. DAC is subject to recoverability testing at the time of policy issue and loss recognition testing at the end of each accounting period. The determination of DAC, including amortization and recoverability estimates, is based on models that involve numerous assumptions and subjective judgments, including those regarding policyholder behavior, surrender and withdrawal rates, mortality experience, and other inputs including financial market volatility and market rates of return.

After the initial establishment of reserves, premium deficiency and loss recognition tests are performed each period end using best estimate assumptions as of the testing date without provisions for adverse deviation. When the liabilities for future policy benefits plus the present value of expected future gross premiums for the aggregate product group are insufficient to provide for expected future policy benefits and expenses for that line of business (i.e., reserves net of any DAC asset), DAC would first be written off and thereafter, if required, a premium deficiency reserve would be established by a charge to earnings.

Amortization Policy

In accordance with the guidance for the accounting and reporting by insurance enterprises for certain long-duration contracts and participating contracts and for realized gains and losses from the sale of investments, current and expected future profit margins for products covered by this guidance are examined regularly in determining the amortization of DAC.

DAC associated with certain variable annuity products is amortized based on estimated assessments, with DAC on the remainder of variable annuities, UL and investment-type products amortized over the expected total life of the contract group as a constant percentage of estimated gross profits arising principally from investment results, Separate Accounts fees, mortality and expense margins and surrender charges based on historical and anticipated future experience, embedded derivatives and changes in the reserve of products that have indexed features such as SCS IUL and MSO, updated at the end of each accounting period. When estimated gross profits are expected to be negative for multiple years of a contract life, DAC is amortized using the present value of estimated assessments. The effect on the amortization of DAC of revisions to estimated gross profits or assessments is reflected in earnings (loss) in the period such estimated gross profits or assessments are revised. A decrease in expected gross profits or assessments would accelerate DAC amortization. Conversely, an increase in expected gross profits or assessments would slow DAC amortization. The effect on the DAC assets that would result from realization of unrealized gains (losses) is recognized with an offset to AOCI in consolidated equity as of the balance sheet date.

A significant assumption in the amortization of DAC on variable annuities and, to a lesser extent, on variable and interest-sensitive life insurance relates to projected future separate account performance. Management sets estimated future gross profit or assessment assumptions related to separate account performance using a long-term view of expected average market returns by applying a RTM approach, a commonly used industry practice. This future return approach influences the projection of fees earned, as well as other sources of estimated gross profits. Returns that are higher than expectations for a given period produce higher than expected account balances, increase the fees earned

resulting in higher expected future gross profits and lower DAC amortization for the period. The opposite occurs when returns are lower than expected.

In applying this approach to develop estimates of future returns, it is assumed that the market will return to an average gross long-term return estimate, developed with reference to historical long-term equity market performance. Management has set limitations as to maximum and minimum future rate of return assumptions, as well as a limitation on the duration of use of these maximum or minimum rates of return. As of December 31, 2021, the average gross short-term and long-term annual return estimate on variable and interest-sensitive life insurance and variable annuities was 7.0% (4.7% net of product weighted average Separate Accounts fees), and the gross maximum and minimum short-term annual rate of return limitations were 15.0% (12.7% net of product weighted average Separate Accounts fees and Investment Advisory fees) and 0.0% ((2.3%) net of product weighted average Separate Accounts fees and Investment Advisory fees), respectively. The maximum duration over which these rate limitations may be applied is five years. This approach will continue to be applied in future periods. These assumptions of long-term growth are subject to assessment of the reasonableness of resulting estimates of future return assumptions.

In addition, projections of future mortality assumptions related to variable and interest-sensitive life products are based on a long-term average of actual experience. This assumption is updated periodically to reflect recent experience as it emerges. Improvement of life mortality in future periods from that currently projected would result in future deceleration of DAC amortization. Conversely, deterioration of life mortality in future periods from that currently projected would result in future acceleration of DAC amortization.

Other significant assumptions underlying gross profit estimates for UL and investment type products relate to contract persistency and General Account investment spread.

For participating traditional life policies (substantially all of which are in the Closed Block), DAC is amortized over the expected total life of the contract group as a constant percentage based on the present value of the estimated gross margin amounts expected to be realized over the life of the contracts using the expected investment yield. As of December 31, 2021, the average rate of assumed investment yields, excluding policy loans, for the Company was 4.5% grading to 4.3% in 2026. Estimated gross margins include anticipated premiums and investment results less claims and administrative expenses, changes in the net level premium reserve and expected annual policyholder dividends. The effect on the accumulated amortization of DAC of revisions to estimated gross margins is reflected in earnings in the period such estimated gross margins are revised. The effect on the DAC assets that would result from realization of unrealized gains (losses) is recognized with an offset to AOCI in consolidated equity as of the balance sheet date. Many of the factors that affect gross margins are included in the determination of the Company’s dividends to these policyholders. DAC adjustments related to participating traditional life policies do not create significant volatility in results of operations as the Closed Block recognizes a cumulative policyholder dividend obligation expense in policyholders’ benefits for the excess of actual cumulative earnings over expected cumulative earnings as determined at the time of demutualization.

DAC associated with non-participating traditional life policies are amortized in proportion to anticipated premiums. Assumptions as to anticipated premiums are estimated at the date of policy issue and are consistently applied during the life of the contracts. Deviations from estimated experience are reflected in income (loss) in the period such deviations occur. For these contracts, the amortization periods generally are for the total life of the policy. DAC related to these policies are subject to recoverability testing as part of the Company’s premium deficiency testing. If a premium deficiency exists, DAC are reduced by the amount of the deficiency or to zero through a charge to current period earnings (loss). If the deficiency exceeds the DAC balance, the reserve for future policy benefits is increased by the excess, reflected in earnings (loss) in the period such deficiency occurs.

For some products, policyholders can elect to modify product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. These transactions are known as internal replacements. If such modification substantially changes the contract, the associated DAC is written off immediately through income and any new deferrable costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed.

Reinsurance

Reinsurance

For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Cessions under

reinsurance agreements do not discharge the Company’s obligations as the primary insurer. The Company reviews all contractual features, including those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims.

For reinsurance of existing in-force blocks of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid (received), and the liabilities ceded (assumed) related to the underlying contracts is considered the net cost of reinsurance at the inception of the reinsurance agreement. The net cost of reinsurance is recorded as an adjustment to DAC and recognized as a component of other expenses on a basis consistent with the way the acquisition costs on the underlying reinsured contracts would be recognized. Subsequent amounts paid (received) on the reinsurance of in-force blocks, as well as amounts paid (received) related to new business, are recorded as premiums ceded (assumed); and amounts due from reinsurers (amounts due to reinsurers) are established.

Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance.

Premiums, policy charges and fee income, and policyholders’ benefits include amounts assumed under reinsurance agreements and are net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in other revenues. With respect to GMIBs, a portion of the directly written GMIBs are accounted for as insurance liabilities, but the associated reinsurance agreements contain embedded derivatives as they are net settled. These embedded derivatives are included in GMIB reinsurance contract asset, at fair value with changes in estimated fair value reported in net derivative gains (losses). Separate Account liabilities that have been ceded on a Modified coinsurance (Modco) basis, receivable and payable have been recognized on a net basis as right of offset exists.

If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within other assets. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as other income or other operating costs and expenses, as appropriate. Periodically, the Company evaluates the adequacy of the expected payments or recoveries and adjusts the deposit asset or liability through other revenues or other expenses, as appropriate.

For reinsurance contracts other than those accounted for as derivatives, reinsurance recoverable balances are calculated using methodologies and assumptions that are consistent with those used to calculate the direct liabilities.

Policyholder Bonus Interest Credits

Policyholder Bonus Interest Credits

Policyholder bonus interest credits are offered on certain deferred annuity products in the form of either immediate bonus interest credited or enhanced interest crediting rates for a period of time. The interest crediting expense associated with these policyholder bonus interest credits is deferred and amortized over the lives of the underlying contracts in a manner consistent with the amortization of DAC. Unamortized balances are included in other assets in the consolidated balance sheets and amortization is included in interest credited to policyholders’ account balances in the consolidated statements of income (loss).

Policyholders’ Account Balances and Future Policy Benefits and Other Policyholders’ Liabilities

Policyholders’ Account Balances and Future Policy Benefits and Other Policyholders’ Liabilities

Policyholders’ account balances relate to contracts or contract features where the Company has no significant insurance risk. This liability represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date.

For participating traditional life insurance policies, future policy benefit liabilities are calculated using a net level premium method on the basis of actuarial insurance assumptions equal to guaranteed mortality and dividend fund interest rates. The liability for annual dividends represents the accrual of annual dividends earned. Terminal dividends are accrued in proportion to gross margins over the life of the contract.

For non-participating traditional life insurance policies, future policy benefit liabilities are estimated using a net level premium method on the basis of actuarial assumptions as to mortality, persistency and interest established at policy issue. Assumptions established at policy issue as to mortality and persistency are based on the Company’s experience

that, together with interest and expense assumptions, includes a margin for adverse deviation. Benefit liabilities for traditional annuities during the accumulation period are equal to accumulated policyholders’ fund balances and, after annuitization, are equal to the present value of expected future payments. Interest rates used in establishing such liabilities range from 3.5% to 7.3% (weighted average of 5.0%) for approximately 99.4% of life insurance liabilities and from 1.5% to 5.4% (weighted average of 3.5%) for annuity liabilities.

Individual health benefit liabilities for active lives are estimated using the net level premium method and assumptions as to future morbidity, withdrawals and interest. Benefit liabilities for disabled lives are estimated using the present value of benefits method and experience assumptions as to claim terminations, expenses and interest. While management believes its DI reserves have been calculated on a reasonable basis and are adequate, there can be no assurance reserves will be sufficient to provide for future liabilities.

Obligations arising from funding agreements are also reported in policyholders’ account balances in the consolidated balance sheets. As a member of the FHLB, the Company has access to collateralized borrowings. The Company may also issue funding agreements to the FHLB. Both the collateralized borrowings and funding agreements would require the Company to pledge qualified mortgage-backed assets and/or government securities as collateral.

The Company has issued and continues to offer certain variable annuity products with GMDB and/or contain a GMLB (collectively, the “GMxB features”) which, if elected by the policyholder after a stipulated waiting period from contract issuance, guarantees a minimum lifetime annuity based on predetermined annuity purchase rates that may be in excess of what the contract account value can purchase at then-current annuity purchase rates. This minimum lifetime annuity is based on predetermined annuity purchase rates applied to a GMIB base. The Company previously issued certain variable annuity products with GIB, GWBL, GMWB, and GMAB features. The Company has also assumed reinsurance for products with GMxB features.

Reserves for products that have GMIB features, but do not have no-lapse guarantee features, and products with GMDB features are determined by estimating the expected value of death or income benefits in excess of the projected contract accumulation value and recognizing the excess over the estimated life based on expected assessments (i.e., benefit ratio). The liability equals the current benefit ratio multiplied by cumulative assessments recognized to date, plus interest, less cumulative excess payments to date. These reserves are recorded within future policy benefits and other policyholders’ liabilities. The determination of this estimated future policy benefits liability is based on models that involve numerous assumptions and subjective judgments, including those regarding expected market rates of return and volatility, contract surrender and withdrawal rates, mortality experience, and, for contracts with the GMIB feature, GMIB election rates. Assumptions regarding separate account performance used for purposes of this calculation are set using a long-term view of expected average market returns by applying a RTM approach, consistent with that used for DAC amortization. There can be no assurance that actual experience will be consistent with management’s estimates.

Products that have a GMIB feature with a no-lapse guarantee rider (“GMIBNLG”), GIB, GWBL, GMWB and GMAB features and the assumed products with GMIB features (collectively “GMxB derivative features”) are considered either freestanding or embedded derivatives and discussed below under (“Embedded and Freestanding Insurance Derivatives”).

After the initial establishment of reserves, premium deficiency and loss recognition tests are performed each period end using best estimate assumptions as of the testing date without provisions for adverse deviation. When the liabilities for future policy benefits plus the present value of expected future gross premiums for the aggregate product group are insufficient to provide for expected future policy benefits and expenses for that line of business (i.e., reserves net of any DAC asset), DAC would first be written off and thereafter, if required, a premium deficiency reserve would be established by a charge to earnings. Premium deficiency reserves are recorded for the group single premium annuity business, certain interest-sensitive life contracts, structured settlements, individual disability income and major medical. Additionally, in certain instances the policyholder liability for a particular line of business may not be deficient in the aggregate to trigger loss recognition, but the pattern of earnings may be such that profits are expected to be recognized in earlier years followed by losses in later years. This pattern of profits followed by losses is exhibited in our VISL business and is generated by the cost structure of the product or secondary guarantees in the contract. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. We accrue for these PFBL using a dynamic approach that changes over time as the projection of future losses change.

Policyholders Dividends

Policyholders’ Dividends

The amount of policyholders’ dividends to be paid (including dividends on policies included in the Closed Block) is determined annually by the board of directors of the issuing insurance company. The aggregate amount of policyholders’ dividends is related to actual interest, mortality, morbidity and expense experience for the year and judgment as to the appropriate level of statutory surplus to be retained by the Company.

Embedded and Freestanding Insurance Derivatives

Embedded and Freestanding Insurance Derivatives

Reserves for products or features within products that are considered either embedded or freestanding derivatives are measured at estimated fair value separately from the host variable annuity product, with changes in estimated fair value reported in net derivative gains (losses). The estimated fair values of these derivatives are determined based on the present value of projected future benefits minus the present value of projected future fees attributable to the guarantee. The projections of future benefits and future fees require capital markets and actuarial assumptions, including expectations concerning policyholder behavior. A risk-neutral valuation methodology is used under which the cash flows from the guarantees are projected under multiple capital market scenarios using observable risk-free rates.

Additionally, the Company cedes and assumes reinsurance of products with GMxB features, which are considered either an embedded or freestanding derivative, and measured at fair value. The GMxB reinsurance contract asset and liabilities’ fair values reflect the present value of reinsurance premiums, net of recoveries, and risk margins over a range of market-consistent economic scenarios.

Changes in the fair value of embedded and freestanding derivatives are reported in net derivative gains (losses). Embedded derivatives in direct and assumed reinsurance contracts are reported in future policyholders’ benefits and other policyholders’ liabilities. Amounts due from reinsurers contains the reinsurance of underlying GMIB contracts that are embedded derivatives, so the reinsurance has the same risk attributes as the underlying contracts and is an embedded derivatives carried at fair value. There are also embedded derivatives reported in the GMIB reinsurance contract asset related to ceded reinsurance contracts that are net settled, recorded at fair value in the consolidated balance sheets.

Embedded derivatives fair values are determined based on the present value of projected future benefits minus the present value of projected future fees. At policy inception, a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits is attributed to the embedded derivative. The percentage of fees included in the fair value measurement is locked-in at inception. Fees above those amounts represent “excess” fees and are reported in policy charges and fee income.

Separate Accounts

Separate Accounts

Generally, Separate Accounts established under New York State and Arizona State Insurance Law are not chargeable with liabilities that arise from any other business of the Company. Separate Accounts assets are subject to General Account claims only to the extent Separate Accounts assets exceed separate accounts liabilities. Assets and liabilities of the Separate Account represent the net deposits and accumulated net investment earnings (loss) less fees, held primarily for the benefit of policyholders, and for which the Company does not bear the investment risk. Separate Accounts assets and liabilities are shown on separate lines in the consolidated balance sheets. Assets held in Separate Accounts are reported at quoted market values or, where quoted values are not readily available or accessible for these securities, their fair value measures most often are determined through the use of model pricing that effectively discounts prospective cash flows to present value using appropriate sector-adjusted credit spreads commensurate with the security’s duration, also taking into consideration issuer-specific credit quality and liquidity. Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains (losses)) and the corresponding amounts credited to policyholders of such Separate Accounts are offset within the same line in the consolidated statements of income (loss).

Deposits to Separate Accounts are reported as increases in Separate Accounts assets and liabilities and are not reported in the consolidated statements of income (loss). Mortality, policy administration and surrender charges on all policies including those funded by Separate Accounts are included in revenues.

The Company reports the General Account’s interests in Separate Accounts as trading securities, at fair value, in the consolidated balance sheets.

Leases

Leases

The Company does not record leases with an initial term of 12 months or less in its consolidated balance sheets, but instead recognizes lease expense for these leases on a straight-line basis over the lease term. For leases with a term greater than one year, the Company records in its consolidated balance sheets at the time of lease commencement or modification a RoU operating lease asset and a lease liability, initially measured at the present value of the lease payments. Lease costs are recognized in the consolidated statements of income (loss) over the lease term on a straight-line basis. RoU operating lease assets represent the Company’s right to use an underlying asset for the lease term and RoU operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease.

Broker-Dealer Revenues, Receivables and Payables

Broker-Dealer Revenues, Receivables and Payables

Equitable Advisors and certain of the Company’s other subsidiaries provide investment management, brokerage and distribution services for affiliates and third parties. Third-party revenues earned from these services are reported in other income in the Company’s consolidated statement of income (loss).

Receivables from and payables to clients include amounts due on cash and margin transactions. Securities owned by customers are held as collateral for receivables; such collateral is not reflected in the consolidated financial statements.

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill recorded by the Company represents the excess of purchase price over the estimated fair value of identifiable net assets of companies acquired in a business combination and relates principally to the acquisition of SCB Inc., an investment research and management company formerly known as Sanford C. Bernstein Inc. (“Bernstein Acquisition”) and the purchase of AB Units. The Company tests goodwill for recoverability each annual reporting period at December 31 and at interim periods if facts or circumstances are indicative of potential impairment.

Starting as of June 30, 2020, the Company changed its measurement of the fair value of its Investment Management and Research reporting unit from a discounted cash flow valuation technique to a market valuation approach. Under the market valuation approach, the fair value of the reporting unit is based on its adjusted market valuation assuming a control premium. The Company determined that this valuation technique provided a more exact determination of fair value for the reporting unit and was applied during its annual testing for goodwill recoverability at December 31, 2021 and 2020.

The Company’s intangible assets primarily relate to the Bernstein Acquisition and purchases of AB Units and reflect amounts assigned to acquired investment management contracts based on their estimated fair values at the time of acquisition, less accumulated amortization. These intangible assets generally are amortized on a straight-line basis over their estimated useful life, ranging from six to twenty years. All intangible assets are periodically reviewed for impairment as events or changes in circumstances indicate that the carrying value may not be recoverable. If the carrying value exceeds fair value, impairment tests are performed to measure the amount of the impairment loss, if any.

Deferred Sales Commissions, Net

Deferred Sales Commissions, Net

Commissions paid to financial intermediaries in connection with the sale of shares of open-end AB sponsored mutual funds sold without a front-end sales charge (“back-end load shares”) are capitalized as deferred sales commissions and amortized over periods not exceeding five and one-half years for U.S. fund shares and four years for non-U.S. fund shares, the periods of time during which the deferred sales commissions are generally recovered. These commissions are recovered from distribution services fees received from those funds and from CDSC received from shareholders of those funds upon the redemption of their shares. CDSC cash recoveries are recorded as reductions of unamortized deferred sales commissions when received. Since January 31, 2009, AB sponsored U.S. mutual funds have not offered back-end load shares to new investors.

Management periodically reviews the deferred sales commission asset for impairment as events or changes in circumstances indicate that the carrying value may not be recoverable. If these factors indicate impairment in value, a comparison is made of the carrying value to the undiscounted cash flows expected to be generated by the asset over its remaining life. If it is determined the deferred sales commission asset is not fully recoverable, the asset will be deemed impaired and a loss will be recorded in the amount by which the recorded amount of the asset exceeds its estimated fair value.

Capitalized Computer Software and Hosting Arrangements

Capitalized Computer Software and Hosting ArrangementsCapitalized computer software and hosting arrangements include certain internal and external costs used to implement internal-use software and cloud computing hosting arrangements. These capitalized computer costs are included in other assets in the consolidated balance sheets and amortized on a straight-line basis over the estimated useful life of the software or term of the hosting arrangement that ranges between three and five years. Capitalized amounts are periodically tested for impairment in accordance with the guidance on impairment of long-lived assets. An immediate charge to earnings is recognized if capitalized computer costs no longer are deemed to be recoverable. In addition, service potential is periodically reassessed to determine whether facts and circumstances have compressed the software’s useful life or a significant change in the term of the hosting arrangement such that acceleration of amortization over a shorter period than initially determined would be required.

Short-term and Long-term Debt

Short-term and Long-term Debt

Liabilities for short-term and long-term debt are primarily carried at an amount equal to unpaid principal balance, net of unamortized discount or premium and debt issue costs. Original-issue discount or premium and debt-issue costs are recognized as a component of interest expense over the period the debt is expected to be outstanding, using the interest method of amortization. Interest expense is generally presented within interest expense in the consolidated statements of income (loss). Short-term debt represents debt coming due in the next twelve months, including that portion of debt otherwise classified as long-term. See Note 12 of the Notes to these Consolidated Financial Statements for additional information regarding short-term and long-term debt.

Income Taxes

Income Taxes

The Company and certain of its consolidated subsidiaries and affiliates file a consolidated federal income tax return. The Company provides for federal and state income taxes currently payable, as well as those deferred due to temporary differences between the financial reporting and tax bases of assets and liabilities. Current federal income taxes are charged or credited to operations based upon amounts estimated to be payable or recoverable as a result of taxable operations for the current year. Deferred income tax assets and liabilities are recognized based on the difference between financial statement carrying amounts and income tax bases of assets and liabilities using enacted income tax rates and laws. Valuation allowances are established when management determines, based on available information, that it is more likely than not that deferred tax assets will not be realized.

Under accounting for uncertainty in income taxes guidance, the Company determines whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded in the consolidated financial statements. Tax positions are then measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement.

ABLP is a private partnership for federal income tax purposes and, accordingly, is not subject to federal and state corporate income taxes. However, ABLP is subject to a 4.0% New York City unincorporated business tax. AB Holding is subject to a 3.5% federal tax on partnership gross income from the active conduct of a trade or business. Domestic corporate subsidiaries of AB are subject to federal, state and local income taxes. Foreign corporate subsidiaries are generally subject to taxes in the foreign jurisdictions where they are located.

Recognition of Investment Management and Service Fees and Related Expenses

Recognition of Investment Management and Service Fees and Related Expenses

Investment management, advisory and service fees

Investment management and service fees principally include the Investment Management and Research segment’s investment advisory and service fees, distribution revenues and institutional research services revenue. Investment advisory and service base fees, generally calculated as a percentage, referred to as BPs, of assets under management, are recorded as revenue as the related services are performed. Certain investment advisory contracts, including those associated with hedge funds, provide for a performance-based fee, in addition to or in lieu of a base fee which is calculated as either a percentage of absolute investment results or a percentage of the investment results in excess of a stated benchmark over a specified period of time.

Investment management and administrative service fees are also earned by EIM and EIMG and reported in the Individual Retirement, Group Retirement and Protection Solutions segments as well as certain asset-based fees associated with insurance contracts.

AB provides asset management services by managing customer assets and seeking to deliver returns to investors. Similarly, EIM and EIMG provides investment management and administrative services, such as fund accounting and compliance services, to EQ Premier VIP Trust, EQAT and 1290 Funds as well as two private investment trusts established in the Cayman Islands, AXA Allocation Funds Trust and AXA Offshore Multimanager Funds Trust (collectively, the “Other AXA Trusts”). The contracts supporting these revenue streams create a distinct, separately identifiable performance obligation for each day the assets are managed for the performance of a series of services that are substantially the same and have the same pattern of transfer to the customer. Accordingly, these investment management, advisory, and administrative service base fees are recorded over time as services are performed and entitle the Company to variable consideration. Base fees, generally calculated as a percentage of AUM, are recognized as revenue at month-end when the transaction price no longer is variable and the value of the consideration is determined. These fees are not subject to claw back and there is minimal probability that a significant reversal of the revenue recorded will occur.

Certain investment advisory contracts of AB, including those associated with hedge funds or other alternative investments, provide for a performance-based fee (including carried interest), in addition to a base advisory fee, calculated either as a percentage of absolute investment results or a percentage of investment results in excess of a stated benchmark over a specified period of time. These performance-based fees are forms of variable consideration and, therefore, are excluded from the transaction price until it becomes probable there will not be significant reversal of the cumulative revenue recognized. At each reporting date, the Company evaluates constraining factors surrounding the variable consideration to determine the extent to which, if any, revenues associated with the performance-based fee can be recognized. Constraining factors impacting the amount of variable consideration included in the transaction price include contractual claw-back provisions, the length of time of the uncertainty, the number and range of possible amounts, the probability of significant fluctuations in the fund’s market value and the level in which the fund’s value exceeds the contractual threshold required to earn such a fee and the materiality of the amount being evaluated.

Sub-advisory and sub-administrative expenses associated with these services are calculated and recorded as the related services are performed in other operating costs and expense in the consolidated statements of income (loss) as the Company is acting in a principal capacity in these transactions and, as such, reflects these revenues and expenses on a gross basis.

Research services

Research services revenue principally consists of brokerage transaction charges received by SCB LLC, SCBL and AB’s other sell side subsidiaries for providing equity research services to institutional clients. Brokerage commissions for trade execution services and related expenses are recorded on a trade-date basis when the performance obligations are satisfied. Generally, the transaction price is agreed upon at the point of each trade and based upon the number of shares traded or the value of the consideration traded. Research revenues are recognized when the transaction price is quantified, collectability is assured and significant reversal of such revenue is not probable.

Distribution services

Revenues from distribution services include fees received as partial reimbursement of expenses incurred in connection with the sale of certain AB sponsored mutual funds and the 1290 Funds and for the distribution primarily of EQAT and EQ Premier VIP Trust shares to separate accounts in connection with the sale of variable life and annuity contracts. The amount and timing of revenues recognized from performance of these distribution services often is

dependent upon the contractual arrangements with the customer and the specific product sold as further described below.

Most open-end management investment companies, such as U.S. funds and the EQAT and EQ Premier VIP Trusts and the 1290 Funds, have adopted a plan under Rule 12b-1 of the Investment Company Act that allows for certain share classes to pay out of assets, distribution and service fees for the distribution and sale of its shares (“12b-1 Fees”). These open-end management investment companies have such agreements with the Company, and the Company has selling and distribution agreements pursuant to which it pays sales commissions to the financial intermediaries that distribute the shares. These agreements may be terminated by either party upon notice (generally 30 days) and do not obligate the financial intermediary to sell any specific amount of shares.

The Company records 12b-1 fees monthly based upon a percentage of the NAV of the funds. At month-end, the variable consideration of the transaction price is no longer constrained as the NAV can be calculated and the value of consideration is determined. These services are separate and distinct from other asset management services as the customer can benefit from these services independently of other services. The Company accrues the corresponding 12b-1 fees paid to sub-distributors monthly as the expenses are incurred. The Company is acting in a principal capacity in these transactions; as such, these revenues and expenses are recorded on a gross basis in the consolidated statements of income (loss).

AB sponsored mutual funds offer back-end load shares in limited instances and charge the investor a CDSC if the investment is redeemed within a certain period. The variable consideration for these contracts is contingent upon the timing of the redemption by the investor and the value of the sales proceeds. Due to these constraining factors, the Company excludes the CDSC fee from the transaction price until the investor redeems the investment. Upon redemption, the cash consideration received for these contractual arrangements is recorded as a reduction of unamortized deferred sales commissions.

AB’s Luxembourg subsidiary, the management company for most of its non-U.S. funds, earns a management fee which is accrued daily and paid monthly, at an annual rate, based on the average daily net assets of the fund. With respect to certain share classes, the management fee also may contain a component paid to distributors and other financial intermediaries and service providers to cover shareholder servicing and other administrative expenses (also referred to as an “All-in-Fee”). Based on the conclusion that asset management is distinct from distribution, the Company allocates a portion of the investment and advisory fee to distribution revenues for the servicing component based on standalone selling prices.

Other revenues

Also reported as investment management and service fees in the Company’s consolidated statements of income (loss) are other revenues from contracts with customers, primarily consisting of shareholder servicing fees, mutual fund reimbursements and other brokerage income.

Shareholder services, including transfer agency, administration and record-keeping are provided by AB to company-sponsored mutual funds. The consideration for these services is based on a percentage of the NAV of the fund or a fixed-fee based on the number of shareholder accounts being serviced. The revenues are recorded at month-end when the constraining factors involved with determining NAV or the numbers of shareholders’ accounts are resolved.

Other income

Revenues from contracts with customers reported as other income in the Company’s consolidated statements of income (loss) primarily consist of advisory account fees and brokerage commissions from the Company’s broker-dealer operations and sales commissions from the Company’s general agents for the distribution of non-affiliate insurers’ life insurance and annuity products. These revenues are recognized at month-end when constraining factors, such as AUM and product mix, are resolved and the transaction pricing no longer is variable such that the value of consideration can be determined.

Accounting and Consolidation of VIEs

Accounting and Consolidation of VIEs

For all new investment products and entities developed by the Company, the Company first determines whether the entity is a VIE, which involves determining an entity’s variability and variable interests, identifying the holders of the equity investment at risk and assessing the five characteristics of a VIE. Once an entity has been determined to be a VIE, the Company then determines whether it is the primary beneficiary of the VIE based on its beneficial interests. If the Company is deemed to be the primary beneficiary of the VIE, then the Company consolidates the entity.

Management of the Company reviews quarterly its investment management agreements and its investments in, and other financial arrangements with, certain entities that hold client AUM to determine the entities that the Company is required to consolidate under this guidance. These entities include certain mutual fund products, hedge funds, structured products, group trusts, collective investment trusts and limited partnerships.

The analysis performed to identify variable interests held, determine whether entities are VIEs or VOEs, and evaluate whether the Company has a controlling financial interest in such entities requires the exercise of judgment and is updated on a continuous basis as circumstances change or new entities are developed. The primary beneficiary evaluation generally is performed qualitatively based on all facts and circumstances, including consideration of economic interests in the VIE held directly and indirectly through related parties and entities under common control, as well as quantitatively, as appropriate.

Consolidated VIEs

Consolidated CLOs

The Company is the investment manager of certain asset-backed investment vehicles, commonly referred to as CLOs, and certain other vehicles for which the Company earns fee income for investment management services. The Company may sell or syndicate investments through these vehicles, principally as part of the strategic investing activity as part of its investment management businesses. Additionally, the Company may invest in securities issued by these vehicles which are eliminated in consolidation of the CLOs.

As of December 31, 2021 and December 31, 2020, respectively, Equitable Financial holds $109 million and $38 million of equity interests in the CLOs. The Company consolidated the CLOs as of December 31, 2021 and December 31, 2020 as it is the primary beneficiary due to the combination of both its equity interest held by Equitable Financial and the majority ownership of AB, which functions as the CLOs loan manager. The assets of the CLOs are legally isolated from the Company’s creditors and can only be used to settle obligations of the CLOs. The liabilities of the CLOs are non-recourse to the Company and the Company has no obligation to satisfy the liabilities of the CLOs. As of December 31, 2021, Equitable Financial holds $58 million of equity interests in a newly formed SPE established to purchase loans from the market in anticipation of a new CLO transaction. The Company consolidated the SPE as of December 31, 2021 as it is the primary beneficiary due to the combination of both its equity interest held by Equitable Financial and the majority ownership of AB, which functions as the SPE loan manager.

Resulting from this consolidation in the Company’s consolidated balance sheets are fixed maturities, at fair value using the fair value option with total assets of $1,641 million and $389 million notes issued by consolidated variable interest entities, at fair value using the fair value option with total liabilities of $1,191 million and $313 million at December 31, 2021 and December 31, 2020, respectively. The unpaid outstanding principal balance of the notes and short-term borrowing is $1.3 billion and $362 million at December 31, 2021 and December 31, 2020.

Consolidated Limited Partnerships and LLCs

As of December 31, 2021 and December 31, 2020 the Company consolidated limited partnerships and LLCs for which it was identified as the primary beneficiary under the VIE model. Included in Other invested assets, Mortgage loans on real estate and Other equity investments in the Company’s consolidated balance sheets at December 31, 2021 and December 31, 2020 are total assets of $219 million and $12 million, respectively related to these VIEs.

Consolidated AB-Sponsored Investment Funds

Included in the Company’s consolidated balance sheet as of December 31, 2021 and December 31, 2020 are assets of $734 million and $284 million, liabilities of $87 million and $8 million, and redeemable noncontrolling interests of $421 million and $83 million, respectively, associated with the consolidation of AB-sponsored investment funds under the VIE model. Also included in the Company’s consolidated balance sheets as of December 31, 2021 and December 31, 2020 are assets of $0 million and $68 million, liabilities of $0 million and $23 million, and redeemable noncontrolling interests of $0 million and $20 million, respectively, from consolidation of AB-sponsored investment funds under the VOE model. The assets of these consolidated funds are presented within other invested assets and cash and cash equivalents, and liabilities of these consolidated funds are presented with other liabilities in the Company’s consolidated balance sheets; ownership interests not held by the Company relating to consolidated VIEs and VOEs are presented either as redeemable or non-redeemable noncontrolling interests, as appropriate. Redeemable noncontrolling interests are presented in mezzanine equity and non-redeemable noncontrolling interests are presented within

permanent equity. The Company is not required to provide financial support to these AB-sponsored investment funds, and only the assets of such funds are available to settle each fund’s own liabilities.

Non-Consolidated VIEs

As of December 31, 2021 and December 31, 2020 respectively, the Company held approximately $2.1 billion and $1.4 billion of investment assets in the form of equity interests issued by non-corporate legal entities determined under the guidance to be VIEs, such as limited partnerships and limited liability companies, including CLOs, hedge funds, private equity funds and real estate-related funds. As an equity investor, the Company is considered to have a variable interest in each of these VIEs as a result of its participation in the risks and/or rewards these funds were designed to create by their defined portfolio objectives and strategies. Primarily through qualitative assessment, including consideration of related party interests or other financial arrangements, if any, the Company was not identified as primary beneficiary of any of these VIEs, largely due to its inability to direct the activities that most significantly impact their economic performance. Consequently, the Company continues to reflect these equity interests in the consolidated balance sheets as other equity investments and applies the equity method of accounting for these positions. The net assets of these non-consolidated VIEs are approximately $245.6 billion and $165.9 billion as of December 31, 2021 and December 31, 2020 respectively. The Company’s maximum exposure to loss from its direct involvement with these VIEs is the carrying value of its investment of $2.1 billion and $1.4 billion and approximately $1.2 billion and $1.2 billion of unfunded commitments as of December 31, 2021 and December 31, 2020, respectively. The Company has no further economic interest in these VIEs in the form of guarantees, derivatives, credit enhancements or similar instruments and obligations.

Non-Consolidated AB-Sponsored Investment Products

As of December 31, 2021 and December 31, 2020, the net assets of investment products sponsored by AB that are non-consolidated VIEs are approximately $68.9 billion and $73.4 billion, respectively. The Company’s maximum exposure to loss from its direct involvement with these VIEs is its investment of $9 million and $7 million as of December 31, 2021 and December 31, 2020. The Company has no further commitments to or economic interest in these VIEs.

Assumption Updates and Model Changes

Assumption Updates and Model Changes

The Company conducts its annual review of its assumptions and models during the third quarter of each year. The annual review encompasses assumptions underlying the valuation of unearned revenue liabilities, embedded derivatives for our insurance business, liabilities for future policyholder benefits, DAC and DSI assets.

However, the Company updates its assumptions as needed in the event it becomes aware of economic conditions or events that could require a change in assumptions that it believes may have a significant impact to the carrying value of product liabilities and assets and consequently materially impact its earnings in the period of the change.

Due to the extraordinary economic conditions driven by the COVID-19 pandemic in the first quarter of 2020, the Company updated its interest rate assumption to grade from the current interest rate environment to an ultimate five-year historical average over a 10-year period. As such, the 10-year U.S. Treasury yield grades from the current level to an ultimate 5-year average of 2.25%.

The low interest rate environment and update to the interest rate assumption caused a loss recognition event for the Company’s life interest-sensitive products, as well as to certain run-off business. This loss recognition event caused an acceleration of DAC amortization on the life interest-sensitive products and an increase in the premium deficiency reserve on the run-off business in the first quarter of 2020.

Fair Value Measurement

U.S. GAAP establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value, and identifies three levels of inputs that may be used to measure fair value:

Level 1    Unadjusted quoted prices for identical instruments in active markets. Level 1 fair values generally are supported by market transactions that occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2    Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, and inputs to model-derived valuations that are directly observable or can be corroborated by observable market data.

Level 3    Unobservable inputs supported by little or no market activity and often requiring significant management judgment or estimation, such as an entity’s own assumptions about the cash flows or other significant components of value that market participants would use in pricing the asset or liability.

The Company uses unadjusted quoted market prices to measure fair value for those instruments that are actively traded in financial markets. In cases where quoted market prices are not available, fair values are measured using present value or other valuation techniques. The fair value determinations are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such adjustments do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value cannot be substantiated by direct comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instrument.

Management is responsible for the determination of the value of investments carried at fair value and the supporting methodologies and assumptions. Under the terms of various service agreements, the Company often utilizes independent valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual securities. These independent valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of widely accepted valuation models, provide a single fair value measurement for individual securities for which a fair value has been requested. As further described below with respect to specific asset classes, these inputs include, but are not limited to, market prices for recent trades and transactions in comparable securities, benchmark yields, interest rate yield curves, credit spreads, quoted prices for similar securities, and other market-observable information, as applicable. Specific attributes of the security being valued also are considered, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security- or issuer-specific information. When insufficient market observable information is available upon which to measure fair value, the Company either will request brokers knowledgeable about these securities to provide a non-binding quote or will employ internal valuation models. Fair values received from independent valuation service providers and brokers and those internally modeled or otherwise estimated are assessed for reasonableness.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Fair value measurements are required on a non-recurring basis for certain assets only when an impairment or other events occur. For the periods ended December 31, 2021 and December 31, 2020, the Company recognized impairment adjustments and impairment losses, respectively, to adjust the carrying value of held-for-sale asset and liabilities to their fair value less cost to sell. The value is measured on a nonrecurring basis and categorized within Level 3 of the fair value hierarchy. The fair value was determined using a market approach, estimated based on the negotiated value of the asset and liabilities. See Note 23 of the Notes to these Consolidated Financial Statements for additional details of the Held-for-Sale assets and liabilities.

XML

SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Adoption of New Accounting Pronouncements

Description	Effect on the Financial Statement or Other Significant Matters
ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes
This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, as well as clarifying and amending existing guidance.	On January 1, 2021, the Company adopted the new accounting standards update. The new guidance was applied either on a retrospective, modified retrospective or prospective basis based on the items to which the amendments relate. The adoption did not have a material impact on the Company’s consolidated financial position, results of operations and cash flows as of the adoption date.

Future Adoption of New Accounting Pronouncements

Description	Effective Date and Method of Adoption	Effect on the Financial Statement or Other Significant Matters
ASU 2018-12: Financial Services - Insurance (Topic 944); ASU 2020-11: Financial Services - Insurance (Topic 944): Effective Date and Early Application

Description	Effective Date and Method of Adoption	Effect on the Financial Statement or Other Significant Matters
This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: 1. Measurement of the liability for future policy benefits for traditional and limited payment contracts. The ASU requires companies to review, and if necessary, update cash flow assumptions at least annually for non-participating traditional and limited-payment insurance contracts. The ASU also prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts. 2. Measurement of MRBs. MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. 3. Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts.  4. Expanded footnote disclosures. The ASU requires additional disclosures including information about significant inputs, judgements, assumptions and methods used in measurement	In November 2020, the FASB issued ASU 2020-11 which deferred the effective date of the amendments in ASU 2018-12 for all insurance entities. ASU 2018-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is allowed. For the liability for future policyholder benefits for traditional and limited payment contracts, companies can elect one of two adoption methods. Companies can either elect a modified retrospective transition method applied to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or a full retrospective transition method using actual historical experience information as of contract inception. The same adoption method must be used for deferred policy acquisition costs. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented.	The Company continues to progress with implementation efforts and the evaluation of the impact that adoption of this guidance will have on the Company’s consolidated financial statements. Due to its extensive nature, the adoption of the ASU is expected to have a significant impact on the Company’s consolidated financial statements, as well as systems, processes and controls. Effective January 1, 2023, the new guidance will be adopted using the modified retrospective approach, except for MRBs which will use the full retrospective approach. The Company has created a governance framework and implementation plan to ensure timely adoption of the guidance. In preparation for implementation, the Company continues to refine key accounting policy decisions, modernize processes and update internal controls. These changes include modifications of actuarial valuation systems, data sourcing, analytical procedures and reporting processes. The impact on total equity of applying this ASU is estimated to be less than the current amount of reported AOCI as of December 31, 2021. The majority of the total equity impact as of December 31, 2021 is expected to be reflected in AOCI due to decreases in the Company’s estimate of its non-performance risk on variable annuity guarantees accounted for as MRBs for the first time under the guidance. The estimated impact to the retained earnings element of total equity as of December 31, 2021, due to accounting for variable annuity guarantees as MRBs that are not currently measured at fair value, is mitigated by the Company’s present use of a near industry low interest rate assumption of 2.25% on GMIB business. Because movements in equity markets, interest rates and credit spreads are unpredictable and at times volatile, it is possible that the estimated effects of adoption could change materially between December 31, 2021 and January 1, 2023.

Description	Effective Date and Method of Adoption	Effect on the Financial Statement or Other Significant Matters
ASU2020-04: Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting
The amendments in this ASU provide optional expedients and exceptions to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met.  The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform.	This ASU is effective as of March 12, 2020 through December 31, 2022. On December 15, 2021, the FASB tentatively approved deferring the sunset date of the guidance in Topic 848 to December 31, 2024.	The Company is currently assessing the applicability of the optional expedients and exceptions provided under the ASU. Management is evaluating the impact that the adoption of this guidance will have on the Company’s consolidated financial statements.

XML

INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Available-for-Sale Fixed Maturities by Classification

The following tables provide information relating to the Company’s fixed maturities classified as AFS.

AFS Fixed Maturities by Classification

	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in millions)
December 31, 2021
Fixed Maturities:
Corporate (1)	$	50,172	$	22	$	2,601	$	240	$	52,511
U.S. Treasury, government and agency	13,056		—		2,344		15		15,385
States and political subdivisions	586		—		78		2		662
Foreign governments	1,124		—		42		14		1,152
Residential mortgage-backed (2)	90		—		8		—		98
Asset-backed (3)	5,933		—		21		20		5,934
Commercial mortgage-backed	2,427		—		19		25		2,421
Redeemable preferred stock (5)	41		—		12		—		53
Total at December 31, 2021	$	73,429	$	22	$	5,125	$	316	$	78,216

	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in millions)
December 31, 2020: (4)
Fixed Maturities:
Corporate (1)	$	53,160	$	13	$	5,104	$	92	$	58,159
U.S. Treasury, government and agency	12,675		—		3,448		5		16,118
States and political subdivisions	535		—		100		—		635
Foreign governments	1,011		—		98		6		1,103
Residential mortgage-backed (2)	130		—		13		—		143
Asset-backed (3)	3,587		—		29		5		3,611
Commercial mortgage-backed	1,148		—		55		—		1,203
Redeemable preferred stock	621		—		48		3		666
Total at December 31, 2020	$	72,867	$	13	$	8,895	$	111	$	81,638

______________

(1)Corporate fixed maturities include both public and private issues.

(2)Includes publicly traded agency pass-through securities and collateralized obligations.

(3)Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types.

(4)Excludes amounts reclassified as HFS.

(5)Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 of the Notes to these Consolidated Financial Statements- Investments).

Contractual Maturities of Available-for-Sale Fixed Maturities

The contractual maturities of AFS fixed maturities as of December 31, 2021 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Contractual Maturities of AFS Fixed Maturities

	Amortized Cost (Less Allowance for Credit Losses)		Fair Value
	(in millions)
December 31, 2021
Contractual maturities:
Due in one year or less	$	1,117	$	1,120
Due in years two through five	15,452		16,002
Due in years six through ten	18,189		19,104
Due after ten years	30,158		33,484
Subtotal	64,916		69,710
Residential mortgage-backed	90		98
Asset-backed	5,933		5,934
Commercial mortgage-backed	2,427		2,421
Redeemable preferred stock	41		53
Total at December 31, 2021	$	73,407	$	78,216

Proceeds and Gains (Losses) on Sales for Available-for-Sale Fixed Maturities

The following table shows proceeds from sales, gross gains (losses) from sales and credit losses for AFS fixed maturities for the years ended December 31, 2021, 2020 and 2019:

Proceeds from Sales, Gross Gains (Losses) from Sales and Credit Losses for AFS Fixed Maturities

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Proceeds from sales	$	27,363	$	12,903	$	8,972
Gross gains on sales	$	1,152	$	862	$	234
Gross losses on sales	$	(195)	$	(41)	$	(32)
Credit losses	$	(16)	$	(13)	$	—

AFS Fixed Maturities - Credit Loss Impairments

The following table sets forth the amount of credit loss impairments on AFS fixed maturities held by the Company at the dates indicated and the corresponding changes in such amounts.

AFS Fixed Maturities - Credit Loss Impairments

	Year Ended December 31,
	2021		2020		2019
Balance, beginning of period	$	32	$	21	$	58
Previously recognized impairments on securities that matured, paid, prepaid or sold	(4)		(2)		(37)
Recognized impairments on securities impaired to fair value this period (1)	—		—		—
Credit losses recognized this period on securities for which credit losses were not previously recognized	9		6		—
Additional credit losses this period on securities previously impaired	7		7		—
Increases due to passage of time on previously recorded credit losses	—		—		—
Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior)	—		—		—
Balance at December 31,	$	44	$	32	$	21

______________

(1)Represents circumstances where the Company determined in the current period that it intends to sell the security, or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost.

Net Unrealized Gains (Losses) on Available-for-Sale Fixed Maturities

The tables that follow below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI.

Net Unrealized Gains (Losses) on AFS Fixed Maturities

	Net Unrealized Gains (Losses) on Investments		DAC		Policyholders’ Liabilities		Deferred Income Tax Asset (Liability)		AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
	(in millions)
Balance, January 1, 2021	$	8,811	$	(1,548)	$	(1,065)	$	(1,302)	$	4,896
Net investment gains (losses) arising during the period	(3,122)		—		—		—		(3,122)
Reclassification adjustment:
Included in net income (loss)	(846)		—		—		—		(846)
Excluded from net income (loss)	—		—		—		—		—
Other (1)	(33)		—		—		—		(33)
Impact of net unrealized investment gains (losses)	—		767		648		544		1,959

Net unrealized investment gains (losses) excluding credit losses	4,810		(781)		(417)		(758)		2,854
Net unrealized investment gains (losses) with credit losses	(1)		(1)		(1)		1		(2)
Balance, December 31, 2021	$	4,809	$	(782)	$	(418)	$	(757)	$	2,852
Balance, January 1, 2020	$	3,453	$	(894)	$	(189)	$	(497)	$	1,873
Net investment gains (losses) arising during the period	6,192		—		—		—		6,192
Reclassification adjustment:
Included in net income (loss)	(828)		—		—		—		(828)
Excluded from net income (loss)	—		—		—		—		—
Impact of net unrealized investment gains (losses)			(655)		(877)		(806)		(2,338)
Net unrealized investment gains (losses) excluding credit losses	8,817		(1,549)		(1,066)		(1,303)		4,899
Net unrealized investment gains (losses) with credit losses	(6)		1		1		1		(3)
Balance, December 31, 2020	$	8,811	$	(1,548)	$	(1,065)	$	(1,302)	$	4,896
Balance, January 1, 2019	$	(522)	$	100	$	(88)	$	104	$	(406)
Net investment gains (losses) arising during the period	4,188		—		—		—		4,188
Reclassification adjustment:	—		—		—		—		—
Included in net income (loss)	(213)		—		—		—		(213)
Excluded from net income (loss)	—		—		—		—		—
Impact of net unrealized investment gains (losses)	—		(994)		(101)		(601)		(1,696)
Net unrealized investment gains (losses) excluding credit losses	3,453		(894)		(189)		(497)		1,873
Net unrealized investment gains (losses) with credit losses	—		—		—		—		—
Balance, December 31, 2019	$	3,453	$	(894)	$	(189)	$	(497)	$	1,873

______________

(1)Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 of the Notes to these Consolidated Financial Statements- Investments).

Continuous Gross Unrealized Losses for Available-for-Sale Fixed Maturities

The following tables disclose the fair values and gross unrealized losses of the 2,060 issues as of December 31, 2021 and the 565 issues as of December 31, 2020 that are not deemed to have credit losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated.

AFS Fixed Maturities in an Unrealized Loss Position for Which No Allowance Is Recorded

	Less Than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(in millions)
December 31, 2021
Fixed Maturities:
Corporate	$	10,571	$	163	$	1,633	$	75	$	12,204	$	238
U.S. Treasury, government and agency	993		11		105		4		1,098		15
States and political subdivisions	120		2		11		—		131		2
Foreign governments	349		6		92		8		441		14

	Less Than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(in millions)
Asset-backed	3,865		20		38		—		3,903		20
Commercial mortgage-backed	1,527		21		96		4		1,623		25
Total at December 31, 2021	$	17,425	$	223	$	1,975	$	91	$	19,400	$	314
December 31, 2020: (1)
Fixed Maturities:
Corporate	$	2,990	$	53	$	337	$	33	$	3,327	$	86
U.S. Treasury, government and agency	885		5		—		—		885		5
Foreign governments	153		2		21		4		174		6
Asset-backed	809		4		76		1		885		5
Redeemable preferred stock	53		1		11		2		64		3
Total at December 31, 2020	$	4,890	$	65	$	445	$	40	$	5,335	$	105

______________

(1)Excludes amounts reclassified as HFS.

Financing Receivable, Allowance for Credit Loss

The change in the allowance for credit losses for commercial mortgage loans and agricultural mortgage loans during the years ended December 31, 2021 and 2020 were as follows:

		Year Ended December 31,
		2021		2020
	(in millions)
Allowance for credit losses on mortgage loans:
Commercial mortgages:
Balance, beginning of period		$	77	$	33
Current-period provision for expected credit losses		(20)		44
Write-offs charged against the allowance		—		—
Recoveries of amounts previously written off		—		—
Net change in allowance		(20)		44
Balance, end of period		$	57	$	77
Agricultural mortgages:
Balance, beginning of period		$	4	$	3
Current-period provision for expected credit losses		1		1
Write-offs charged against the allowance		—		—
Recoveries of amounts previously written off		—		—
Net change in allowance		1		1
Balance, end of period		$	5	$	4
Total allowance for credit losses		$	62	$	81

Financing Receivable Credit Quality Indicators

The following tables summarize the Company’s mortgage loans segregated by risk rating exposure as of December 31, 2021 and December 31, 2020.

LTV Ratios (1)

	December 31, 2021
	Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Total
	(in millions)
Mortgage loans:
Commercial:
0% - 50%	$	—	$	—	$	—	$	184	$	293	$	1,009	$	1,486
50% - 70%	1,967		1,334		407		619		491		2,533		7,351
70% - 90%	190		236		412		415		276		972		2,501
90% plus	—		—		—		35		5		73		113
Total commercial	$	2,157	$	1,570	$	819	$	1,253	$	1,065	$	4,587	$	11,451
Agricultural:

	December 31, 2021
	Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Total
	(in millions)
0% - 50%	$	180	$	212	$	128	$	129	$	119	$	738	$	1,506
50% - 70%	200		268		102		126		87		338		1,121
70% - 90%	—		—		—		—		—		17		17
90% plus	—		—		—		—		—		—		—
Total agricultural	$	380	$	480	$	230	$	255	$	206	$	1,093	$	2,644
Total mortgage loans:
0% - 50%	$	180	$	212	$	128	$	313	$	412	$	1,747	$	2,992
50% - 70%	2,167		1,602		509		745		578		2,871		8,472
70% - 90%	190		236		412		415		276		989		2,518
90% plus	—		—		—		35		5		73		113
Total mortgage loans	$	2,537	$	2,050	$	1,049	$	1,508	$	1,271	$	5,680	$	14,095

Debt Service Coverage Ratios (2)

	December 31, 2021
	Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Total
	(in millions)
Mortgage loans:
Commercial:
Greater than 2.0x	$	1,143	$	1,243	$	210	$	772	$	485	$	2,235	$	6,088
1.8x to 2.0x	185		135		250		46		161		372		1,149
1.5x to 1.8x	275		97		284		211		166		919		1,952
1.2x to 1.5x	264		95		75		101		253		701		1,489
1.0x to 1.2x	290		—		—		88		—		287		665
Less than 1.0x	—		—		—		35		—		73		108
Total commercial	$	2,157	$	1,570	$	819	$	1,253	$	1,065	$	4,587	$	11,451
Agricultural:
Greater than 2.0x	$	49	$	64	$	25	$	22	$	24	$	210	$	394
1.8x to 2.0x	52		37		25		14		14		70		212
1.5x to 1.8x	43		113		28		22		41		193		440
1.2x to 1.5x	161		179		112		116		72		355		995
1.0x to 1.2x	75		83		31		77		54		226		546
Less than 1.0x	—		4		9		4		1		39		57
Total agricultural	$	380	$	480	$	230	$	255	$	206	$	1,093	$	2,644
Total mortgage loans:
Greater than 2.0x	$	1,192	$	1,307	$	235	$	794	$	509	$	2,445	$	6,482
1.8x to 2.0x	237		172		275		60		175		442		1,361
1.5x to 1.8x	318		210		312		233		207		1,112		2,392
1.2x to 1.5x	425		274		187		217		325		1,056		2,484
1.0x to 1.2x	365		83		31		165		54		513		1,211
Less than 1.0x	—		4		9		39		1		112		165
Total mortgage loans	$	2,537	$	2,050	$	1,049	$	1,508	$	1,271	$	5,680	$	14,095

______________

(1)The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan.

(2)The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service.

LTV Ratios (1)

	December 31, 2020
	Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Total
	(in millions)
Mortgage loans:
Commercial:
0% - 50%	$	—	$	—	$	—	$	324	$	187	$	505	$	1,016
50% - 70%	1,294		357		803		656		2,190		1,697		6,997
70% - 90%	321		457		452		219		203		538		2,190
90% plus	—		—		12		5		—		288		305
Total commercial	$	1,615	$	814	$	1,267	$	1,204	$	2,580	$	3,028	$	10,508
Agricultural:
0% - 50%	$	218	$	135	$	169	$	157	$	236	$	652	$	1,567
50% - 70%	277		129		161		102		124		351		1,144
70% - 90%	—		—		3		—		—		18		21
90% plus	—		—		—		—		—		—		—
Total agricultural	$	495	$	264	$	333	$	259	$	360	$	1,021	$	2,732
Total mortgage loans:
0% - 50%	$	218	$	135	$	169	$	481	$	423	$	1,157	$	2,583
50% - 70%	1,571		486		964		758		2,314		2,048		8,141
70% - 90%	321		457		455		219		203		556		2,211
90% plus	—		—		12		5		—		288		305
Total mortgage loans	$	2,110	$	1,078	$	1,600	$	1,463	$	2,940	$	4,049	$	13,240

Debt Service Coverage Ratios (2)

	December 31, 2020
	Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Total
	(in millions)
Mortgage loans:
Commercial:
Greater than 2.0x	$	1,230	$	492	$	772	$	268	$	1,959	$	1,230	$	5,951
1.8x to 2.0x	227		83		118		378		184		329		1,319
1.5x to 1.8x	98		138		187		479		437		616		1,955
1.2x to 1.5x	60		57		154		79		—		658		1,008
1.0x to 1.2x	—		44		—		—		—		123		167
Less than 1.0x	—		—		36		—		—		72		108
Total commercial	$	1,615	$	814	$	1,267	$	1,204	$	2,580	$	3,028	$	10,508

Agricultural:
Greater than 2.0x	$	67	$	26	$	36	$	38	$	71	$	167	$	405
1.8x to 2.0x	38		35		14		15		20		82		204
1.5x to 1.8x	117		38		41		45		52		209		502
1.2x to 1.5x	183		120		141		90		142		313		989
1.0x to 1.2x	86		35		93		70		57		233		574
Less than 1.0x	4		10		8		1		18		17		58
Total agricultural	$	495	$	264	$	333	$	259	$	360	$	1,021	$	2,732
Total mortgage loans:
Greater than 2.0x	$	1,297	$	518	$	808	$	306	$	2,030	$	1,397	$	6,356
1.8x to 2.0x	265		118		132		393		204		411		1,523
1.5x to 1.8x	215		176		228		524		489		825		2,457
1.2x to 1.5x	243		177		295		169		142		971		1,997
1.0x to 1.2x	86		79		93		70		57		356		741
Less than 1.0x	4		10		44		1		18		89		166
Total mortgage loans	$	2,110	$	1,078	$	1,600	$	1,463	$	2,940	$	4,049	$	13,240

______________

(1)The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan.

(2)The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service.

Age Analysis Of Past Due Mortgage Loans

The following table provides information relating to the aging analysis of past-due mortgage loans as of December 31, 2021 and 2020, respectively.

Age Analysis of Past Due Mortgage Loans (1)

	Accruing Loans												Non-accruing Loans		Total Loans		Non-accruing Loans with No Allowance		Interest Income on Non-accruing Loans
	Past Due								Current		Total
	30-59 Days		60-89 Days		90 Days or More		Total
	(in millions)
December 31, 2021:
Mortgage loans:
Commercial	$	—	$	—	$	—	$	—	$	11,451	$	11,451	$	—	$	11,451	$	—	$	—
Agricultural	1		1		25		27		2,601		2,628		16		2,644		—		—
Total	$	1	$	1	$	25	$	27	$	14,052	$	14,079	$	16	$	14,095	$	—	$	—
December 31, 2020:
Mortgage loans:
Commercial	$	162	$	—	$	—	$	162	$	10,346	$	10,508	$	—	$	10,508	$	—	$	—
Agricultural	76		7		29		112		2,620		2,732		—		2,732		—		—
Total	$	238	$	7	$	29	$	274	$	12,966	$	13,240	$	—	$	13,240	$	—	$	—

_______________

(1)Amounts presented at amortized cost basis.

Unrealized and Realized Gains (Losses) from Equity Securities and Net Investment Income (Loss) from Trading Securities and Net Investment Income (Loss) from Fixed Maturities, at Fair Value using the Fair Value Option

The table below presents a breakdown of unrealized and realized gains and (losses) on equity securities during the year ended December 31, 2021.

Unrealized and Realized Gains (Losses) from Equity Securities (1)

	Year Ended December 31,
	2021
	(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period	$	(19)
Net investment gains (losses) recognized on equity securities sold during the period	45
Unrealized and realized gains (losses) on equity securities	$	26

The table below shows a breakdown of net investment income (loss) from trading securities during the years ended December 31, 2021, 2020 and 2019.

Net Investment Income (Loss) from Trading Securities

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period	$	(274)	$	128	$	487
Net investment gains (losses) recognized on securities sold during the period	248		42		15
Unrealized and realized gains (losses) on trading securities	(26)		170		502
Interest and dividend income from trading securities	99		217		294
Net investment income (loss) from trading securities	$	73	$	387	$	796

The table below shows a breakdown of net investment income (loss) from fixed maturities, at fair value using the fair value option during the year ended December 31, 2021.

Net Investment Income (Loss) from Fixed Maturities, at Fair Value using the Fair Value Option

	Year Ended December 31,
	2021
	(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period	$	12
Net investment gains (losses) recognized on securities sold during the period	4
Unrealized and realized gains (losses) from fixed maturities	16
Interest and dividend income from fixed maturities	19
Net investment income (loss) from fixed maturities	$	35

Net Investment Income (Loss)

The following table breaks out net investment income (loss) by asset category:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Fixed maturities	$	2,440	$	2,341	$	2,060
Mortgage loans on real estate	546		516		541
Other equity investments	609		67		140
Policy loans	203		204		211
Trading securities	73		387		796
Other investment income	17		33		24
Fixed maturities, at fair value using the fair value option	35		1		—
Gross investment income (loss)	3,923		3,549		3,772
Investment expenses	(77)		(72)		(73)
Net investment income (loss)	$	3,846	$	3,477	$	3,699

Investment Gains (Losses), Net

Investment gains (losses), net, including changes in the valuation allowances and credit losses are as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Fixed maturities	$	847	$	828	$	205
Mortgage loans on real estate	19		(45)		(1)
Other equity investments (1)	—		30		2
Other	2		(69)		(133)
Investment gains (losses), net	$	868	$	744	$	73

(1) Investment gains (losses), net of Other equity investments includes Real Estate Held for production during the years ended

December 31, 2020 and December 31, 2019.

XML

DERIVATIVES (Tables)

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments by Category

The following table presents the gross notional amount and estimated fair value of the Company’s derivatives:

Derivative Instruments by Category

	December 31, 2021						December 31, 2020
			Fair Value						Fair Value
	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
	(in millions)
Derivatives: Designated for Hedge accounting (1)
Cash Flow Hedges:
Currency Swaps	$	921	$	7	$	42	$	—	$	—	$	—
Interest Swaps	955		—		395		957		—		219
Total: Designated for Hedge accounting	1,876		7		437		957		—		219
Derivatives: Not designated for Hedge accounting (1)
Equity contracts:
Futures (5)	2,640		—		1		4,881		—		2
Swaps (5)	13,378		6		4		22,456		6		2
Options	48,489		12,024		5,065		35,848		8,396		3,726
Interest rate contracts:
Futures (5)	12,575		—		—		18,571		—		—
Swaps (5)	1,889		—		46		22,877		553		437
Swaptions	—		—		—		—		—		—
Credit contracts:
Credit default swaps	774		9		10		1,087		19		14
Currency
Currency Swaps	541		1		—		411		9		9
Currency forwards	79		8		7		—		—		—
Other freestanding contracts:
Margin	—		125		—		—		49		66
Collateral	—		178		6,160		—		212		3,839
Total: Not designated for Hedge accounting	80,365		12,351		11,293		106,131		9,244		8,095
Embedded Derivatives:
Amounts due from reinsurers (6)	—		5,813		—		—		—		—
GMIB reinsurance contracts (2)	—		1,848		—		—		2,488		—
GMxB derivative features liability (3)	—		—		8,525		—		—		11,131
SCS, SIO, MSO and IUL indexed features (4)	—		—		6,773		—		—		4,509
Total Embedded Derivatives	—		7,661		15,298		—		2,488		15,640
Total derivative instruments	$	82,241	$	20,019	$	27,028	$	107,088	$	11,732	$	23,954

___________

(1)Reported in other invested assets in the consolidated balance sheets.

(2) Reported in GMIB reinsurance contract asset in the consolidated balance sheets.

(3)    Reported in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets.

(4)    Reported in policyholders’ account balances in the consolidated balance sheets.

(5)    Decrease in futures and swaps notional as of December 31, 2021 is primarily due to Venerable Transaction (see Note 1 of the Notes to these Consolidated Financial Statements).

(6)    Represents GMIB NLG ceded related to the Venerable Transaction.

The following table presents the effects of derivative instruments on the consolidated statements of income and comprehensive income (loss).

Derivative Instruments by Category

	Year Ended December 31, 2021						Year Ended December 31, 2020						Year Ended December 31, 2019
	Net Derivatives Gain(Losses) (1)		Interest Credited To Policyholder Account Balances		AOCI		Net Derivatives Gain(Losses) (1)		Interest Credited To Policyholder Account Balances		AOCI		Net Derivatives Gain(Losses) (1)		Interest Credited To Policyholder Account Balances		AOCI
	(in millions)
Derivatives: Designated for Hedge accounting
Cash Flow Hedges:
Currency Swaps	$	(2)	$	(45)	$	5	$	—	$	—	$	—	$	—	$	—	$	—
Interest Swaps	(69)		—		(87)		(9)		—		(87)		4		—		(28)
Total: Designated for Hedge accounting	(71)		(45)		(82)		(9)		—		(87)		4		—		(28)
Derivatives: Not Designated for Hedge accounting
Equity contracts
Futures	(567)		—		—		(1,011)		—		—		(1,311)		—		—
Swaps	(3,614)		—		—		(3,368)		—		—		(2,426)		—		—
Options	3,886		—		—		1,663		—		—		2,229		—		—
Interest Rate contracts
Futures	(728)		—		—		1,740		—		—		145		—		—
Swaps	(2,317)		—		—		2,832		—		—		2,033		—		—
Swaptions	—		—		—		9		—		—		(35)		—		—
Credit contracts
Credit Default Swaps	(2)		—		—		—		—		—		9		—		—
Currency contracts
Currency Swaps	3		—		—		(4)		—		—		(9)		—		—
Currency forwards	2		—		—		—		—		—		—		—		—
Other
Margin	—		—		—		—		—		—		—		—		—
Collateral	—		—		—		—		—		—		—		—		—
Total: Not Designated for Hedge accounting	(3,337)		—		—		1,861		—		—		635		—		—
Embedded Derivatives
Amounts due from reinsurers	517		—		—		—		—		—		—		—		—
GMIB reinsurance contracts	(625)		—		—		417		—		—		433		—		—
GMxB derivative features liability (2)	2,841		—		—		(2,253)		—		—		(2,442)		—		—
SCS, SIO,MSO and IUL indexed features	(3,835)		—		—		(1,738)		—		—		(2,642)		—		—
Total Embedded Derivatives	(1,102)		—		—		(3,574)		—		—		(4,651)		—		—
Total Derivatives	$	(4,510)	$	(45)	$	(82)	$	(1,722)	$	—	$	(87)	$	(4,012)	$	—	$	(28)

(1)Reported in net derivative gains (losses) in the consolidated statements of income (loss).(2)Excludes settlement fees of $45 million on CS Life reinsurance contract for the year ended December 31, 2021 .

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The table that follow below present a roll-forward of cash flow hedges recognized in AOCI.

Roll-forward of Cash flow hedges in AOCI

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Balance, beginning of period	$	(126)	$	(38)	$	(10)
Amount recorded in AOCI
Currency Swaps	(35)		—		—
Interest Swaps	(183)		(108)		(45)
Total Amount recorded in AOCI	(218)		(108)		(45)
Amount reclassified from AOCI to income
Currency Swaps	40		—		—
Interest Swaps	96		20		17
Total Amount reclassified from AOCI to income	136		20		17
Ending Balance, December 31 (1)	$	(208)	$	(126)	$	(38)

_______________

(1) The Company does not estimate the amount of the deferred losses in AOCI at years ended December 31, 2021, 2020 and 2019 which will be released and reclassified into Net income (loss) over the next 12 months as the amounts cannot be reasonably estimated.

Offsetting Financial Assets and Liabilities and Derivative Instruments

The following tables presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments as of December 31, 2021 and December 31, 2020:

Offsetting of Financial Assets and Liabilities and Derivative Instruments

As of December 31, 2021

	Gross Amount Recognized		Gross Amount Offset in the Balance Sheets		Net Amount Presented in the Balance Sheets		Gross Amount not Offset in the Balance Sheets (3)		Net Amount
	(in millions)
Assets:
Derivative assets (1)	$	12,358	$	10,756	$	1,602	$	(961)	$	641
Other financial assets	1,989		—		1,989		—		1,989
Other invested assets	$	14,347	$	10,756	$	3,591	$	(961)	$	2,630
Liabilities:
Derivative liabilities (2)	$	10,770	$	10,756	$	14	$	—	$	14
Other financial liabilities	3,919		—		3,919		—		3,919
Other liabilities	$	14,689	$	10,756	$	3,933	$	—	$	3,933

______________

(1)Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs.

(2)Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs.

(3)Financial instruments sent (held).

As of December 31, 2020

	Gross Amount Recognized		Gross Amount Offset in the Balance Sheets		Net Amount Presented in the Balance Sheets		Gross Amount not Offset in the Balance Sheets (3)		Net Amount
	(in millions)
Assets:
Derivative assets (1)	$	9,244	$	8,249	$	995	$	(53)	$	942
Other financial assets	1,733		—		1,733		—		1,733
Other invested assets	$	10,977	$	8,249	$	2,728	$	(53)	$	2,675
Liabilities:
Derivative liabilities (2)	$	8,261	$	8,249	$	12	$	—	$	12
Other financial liabilities	3,674		—		3,674		—		3,674
Other liabilities	$	11,935	$	8,249	$	3,686	$	—	$	3,686

______________

(1)Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs.

(2)Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs.

(3)Financial instruments sent (held).

XML

CLOSED BLOCK (Tables)

12 Months Ended

Dec. 31, 2021

Closed Block Disclosure [Abstract]

Schedule of Closed Block Assets and Liabilities

Summarized financial information for the Company’s Closed Block is as follows:

	December 31,
	2021		2020
	(in millions)
Closed Block Liabilities:
Future policy benefits, policyholders’ account balances and other	$	5,928	$	6,201

	December 31,
	2021		2020
Policyholder dividend obligation	—		160
Other liabilities	39		39
Total Closed Block liabilities	5,967		6,400
Assets Designated to the Closed Block:
Fixed maturities AFS, at fair value (amortized cost of $3,185 and $3,359) (allowance for credit losses of $0 and $0)	3,390		3,718
Mortgage loans on real estate (net of allowance for credit losses of $4 and $6)	1,771		1,773
Policy loans	602		648
Cash and other invested assets	63		28
Other assets	90		169
Total assets designated to the Closed Block	5,916		6,336
Excess of Closed Block liabilities over assets designated to the Closed Block	51		64
Amounts included in AOCI:
Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $0 and $160; and net of income tax: $(43) and $(42)	172		167
Maximum future earnings to be recognized from Closed Block assets and liabilities	$	223	$	231

Closed Block Operations, Net Results

The Company’s Closed Block revenues and expenses were as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Revenues:
Premiums and other income	$	144	$	157	$	182
Net investment income (loss)	237		251		278
Investment gains (losses), net	4		—		(1)
Total revenues	385		408		459
Benefits and Other Deductions:
Policyholders’ benefits and dividends	372		399		439
Other operating costs and expenses	3		1		2
Total benefits and other deductions	375		400		441
Net income (loss), before income taxes	10		8		18
Income tax (expense) benefit	(2)		(2)		(2)
Net income (loss)	$	8	$	6	$	16

Closed Block Dividend Obligation

A reconciliation of the Company’s policyholder dividend obligation follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Beginning balance	$	160	$	2	$	—
Unrealized investment gains (losses)	(160)		158		2
Ending balance	$	—	$	160	$	2

XML

DAC AND POLICYHOLDER BONUS INTEREST CREDITS (Tables)

12 Months Ended

Dec. 31, 2021

Contract holder Bonus Interest Credits [Abstract]

Contractholder Bonus Interest Credits

Changes in the DAC asset for the years ended December 31, 2021, 2020 and 2019 were as follows:

	December 31,
	2021		2020		2019
	(in millions)
Balance, beginning of year (1)	$	4,243	$	5,840	$	6,705
Capitalization of commissions, sales and issue expenses	875		669		754
Amortization:
Impact of assumptions updates and model changes	58		(1,109)		46
All other	(451)		(504)		(643)
Total amortization	(393)		(1,613)		(597)
Change in unrealized investment gains and losses	766		(654)		(994)
Reclassified to assets HFS	—		1		(31)
Balance, end of year	$	5,491	$	4,243	$	5,837

______________

(1) December 31, 2020 DAC beginning balance is $3 million more than December 31, 2019 ending balance due to impact of CECL.

The deferred asset for policyholder bonus interest credits is reported in other assets in the consolidated balance sheets and changes in the deferred asset for policyholder bonus interest credits are reported in Interest credited to policyholders’ account balances. For the years ended December 31, 2021, 2020 and 2019 changes were as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Balance, beginning of year	$	404	$	430	$	448
Amortization charged to income	(31)		(26)		(18)
Balance, end of year	$	373	$	404	$	430

XML

FAIR VALUE DISCLOSURES (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below.

Fair Value Measurements as of December 31, 2021

	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments
Fixed maturities, AFS:
Corporate (1)	$	—	$	51,007	$	1,504	$	52,511
U.S. Treasury, government and agency	—		15,385		—		15,385
States and political subdivisions	—		627		35		662
Foreign governments	—		1,152		—		1,152
Residential mortgage-backed (2)	—		98		—		98
Asset-backed (3)	—		5,926		8		5,934
Commercial mortgage-backed	—		2,401		20		2,421
Redeemable preferred stock	—		53		—		53
Total fixed maturities, AFS	—		76,649		1,567		78,216
Fixed maturities, at fair value using the fair value option	—		1,440		201		1,641
Other equity investments (7)	322		457		5		784
Trading securities	340		226		65		631
Other invested assets:
Short-term investments	—		30		—		30
Assets of consolidated VIEs/VOEs	166		450		11		627
Swaps	—		(473)		—		(473)
Credit default swaps	—		(1)		—		(1)
Futures	(1)		—		—		(1)
Options	—		6,959		—		6,959
Total other invested assets	165		6,965		11		7,141
Cash equivalents	3,275		293		—		3,568
Segregated securities	—		1,504		—		1,504
Amounts due from reinsurer (6)	—		—		5,813		5,813
GMIB reinsurance contracts asset	—		—		1,848		1,848
Separate Accounts assets (4)	144,124		2,572		1		146,697
Total Assets	$	148,226	$	90,106	$	9,511	$	247,843
Liabilities
Notes issued by consolidated VIE’s, at fair value using the fair value option (5)	$	—	$	1,277	$	—	$	1,277
GMxB derivative features’ liability	—		—		8,525		8,525
SCS, SIO, MSO and IUL indexed features’ liability	—		6,773		—		6,773
Liabilities of consolidated VIEs and VOEs	16		2		—		18
Contingent payment arrangements	—		—		38		38
Total Liabilities	$	16	$	8,052	$	8,563	$	16,631

______________

(1)Corporate fixed maturities includes both public and private issues.

(2)Includes publicly traded agency pass-through securities and collateralized obligations.

(3)Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types.

(4)Separate Accounts assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate. As of December 31, 2021, the fair value of such investments was $404 million.

(5)Includes CLO short-term debt of $92 million, which is inclusive as fair valued within Notes issued by consolidated VIE’s, at fair value using the fair value option Accrued interest payable of $6 million is reported in Notes issued by consolidated VIE’s, at fair value using the fair value option in the consolidated balance sheets, which is not required to be measured at fair value on a recurring basis.

(6)This represents GMIB NLG ceded reserves related to the Venerable Transaction. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction.

(7)Includes short position equity securities of $33 million that are reported in other liabilities.

Fair Value Measurements as of December 31, 2020 (1)

	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments
Fixed maturities, AFS:
Corporate (2)	$	—	$	56,457	$	1,702	$	58,159
U.S. Treasury, government and agency	—		16,118		—		16,118
States and political subdivisions	—		596		39		635
Foreign governments	—		1,103		—		1,103
Residential mortgage-backed (3)	—		143		—		143
Asset-backed (4)	—		3,591		20		3,611
Commercial mortgage-backed (3)	—		1,203		—		1,203
Redeemable preferred stock	404		262		—		666
Total fixed maturities, AFS	404		79,473		1,761		81,638
Fixed maturities, at fair value using the fair value option	—		309		80		389
Other equity investments	13		—		71		84
Trading securities	441		5,073		39		5,553
Other invested assets:
Short-term investments	—		101		1		102
Assets of consolidated VIEs/VOEs	74		231		13		318
Swaps	—		(99)		—		(99)
Credit default swaps	—		5		—		5
Futures	(2)		—		—		(2)
Options	—		4,670		—		4,670
Swaptions	—		—		—		—
Total other invested assets	72		4,908		14		4,994
Cash equivalents	4,309		297		—		4,606
Segregated securities	—		1,753		—		1,753
GMIB reinsurance contracts asset	—		—		2,488		2,488
Separate Accounts assets (5)	132,698		2,674		1		135,373
Total Assets	$	137,937	$	94,487	$	4,454	$	236,878
Liabilities
Notes issued by consolidated VIE’s, at fair value using the fair value option (6)	$	—	$	312	$	—	$	312
GMxB derivative features’ liability	—		—		11,131		11,131
SCS, SIO, MSO and IUL indexed features’ liability	—		4,509		—		4,509
Liabilities of consolidated VIEs and VOEs	2		6		—		8
Contingent payment arrangements	—		—		28		28
Total Liabilities	$	2	$	4,827	$	11,159	$	15,988

______________

(1)Excludes amounts reclassified as HFS.

(2)Corporate fixed maturities includes both public and private issues.

(3)Includes publicly traded agency pass-through securities and collateralized obligations.

(4)Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans.

(5)Separate Accounts assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate and commercial mortgages. As of December 31, 2020, the fair value of such investments was $356 million.(6)Accrued interest payable of $1 million is reported in Notes issued by consolidated VIE’s, at fair value using the fair value option in the consolidated balance sheets, which is not required to be measured at fair value on a recurring basis.

Reconciliation of Assets and Liabilities at Level 3

The tables below present reconciliations for all Level 3 assets and liabilities and changes in unrealized gains (losses) for the years ended December 31, 2021, 2020 and 2019, respectively.

Level 3 Instruments - Fair Value Measurements

	Corporate		State and Political Subdivisions		Asset-backed		CMBS		Trading Securities, at Fair Value		Fixed maturities, at FVO
	(in millions)
Balance, January 1, 2021	$	1,702	$	39	$	20	$	—	$	39	$	80
Total gains and (losses), realized and unrealized, included in:
Net income (loss) as:
Net investment income (loss)	5		—		—		—		—		5
Investment gains (losses), net	(16)		—		—		—		26		—
Subtotal	(11)		—		—		—		26		5
Other comprehensive income (loss)	34		(2)		—		—		—
Purchases	938		—		6		20		—		211
Sales	(473)		(2)		(18)		—		—		(23)
Activity related to consolidated VIEs/VOEs	—		—		—		—		—
Transfers into Level 3 (1)	27		—		—		—		—		—
Transfers out of Level 3 (1)	(713)		—		—		—		—		(72)
Balance, December 31, 2021	$	1,504	$	35	$	8	$	20	$	65	$	201
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2)	$	—	$	—	$	—	$	—	$	26	$	5
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2)	$	28	$	(2)	$	—	$	—	$	—	$	—
Balance, January 1, 2020	$	1,257	$	39	$	100	$	—	$	36	$	—
Total gains and (losses), realized and unrealized, included in:
Net income (loss) as:
Net investment income (loss)	4		—		—		—		—		—
Investment gains (losses), net	(16)		—		—		—		3		—
Subtotal	(12)		—		—		—		3		—
Other comprehensive income (loss)	(17)		2		—		—		—		—
Purchases	514		—		20		—		—		81
Sales	(226)		(2)		—		—		—		(1)

	Corporate		State and Political Subdivisions		Asset-backed		CMBS		Trading Securities, at Fair Value		Fixed maturities, at FVO
	(in millions)
Activity related to consolidated VIEs/VOEs	—								—
Transfers into Level 3 (1)	189		—		—		—		—		—
Transfers out of Level 3 (1)	(3)		—		(100)		—		—		—
Balance, December 31, 2020	$	1,702	$	39	$	20	$	—	$	39	$	80
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2)	$	—	$	—	$	—	$	—	$	3	$	—
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2)	$	(18)	$	2	$	—	$	—	$	—	$	—
Balance, January 1, 2019	$	1,186	$	39	$	519	$	—	$	64	$	—
Total gains (losses), realized and unrealized, included in:
Income (loss) as:
Net investment income (loss)	4		—		—		—		—		—
Investment gains (losses), net	—		1		—		—		6		—
Subtotal	4		1		—		—		6		—
Other comprehensive income (loss)	5		2		1		—		—		—
Purchases	274		—		100		—		—		—
Sales	(122)		(3)		(84)		—		(5)		—
Transfers into Level 3 (1)	14		—		—		—		—		—
Transfers out of Level 3 (1)	(104)		—		(436)		—		(29)		—
Balance, December 31, 2019	$	1,257	$	39	$	100	$	—	$	36	$	—
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2)	$	—	$	—	$	—	$	—	$	6	$	—
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2)	$	4	$	3	$	—	$	—	$	—	$	—

_____________

(1)Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values.

(2)For instruments held as of December 31, 2021 or December 31, 2020, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income.

	Other Equity Investments (9)		GMIB Reinsurance  Contract Asset		Amounts Due from Reinsurers		Separate Accounts Assets		GMxB Derivative Features Liability		Contingent Payment Arrangement
	(in millions)
Balance, January 1, 2021	$	84	$	2,488	$	—	$	1	$	(11,131)	$	(28)
Realized and unrealized gains (losses), included in Net income (loss) as:
Investment gains (losses), reported in net investment income	21		—		—		—		—		—
Net derivative gains (losses) (1) (6)	—		(625)		517		—		2,841		—
Total realized and unrealized gains (losses)	21		(625)		517		—		2,841		—
Other comprehensive income (loss)	—		—		—		—		—		—

	Other Equity Investments (9)		GMIB Reinsurance  Contract Asset		Amounts Due from Reinsurers		Separate Accounts Assets		GMxB Derivative Features Liability		Contingent Payment Arrangement
	(in millions)
Purchases (2)	8		43		74		1		(463)		(7)
Sales (3)	(92)		(58)		(35)		—		88		—
Settlements (4)	—		—		—		—		—		—
Other (7)	—		—		5,259		—		—		—
Activity related to consolidated VIEs/VOEs	(4)		—		—		—		—		(3)
Transfers into Level 3 (5)	—		—				—		—		—
Transfers out of Level 3 (5)	(1)		—		—		(1)		140		—
Balance, December 31, 2021	$	16	$	1,848	$	5,815	$	1	$	(8,525)	$	(38)
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (8)	$	2	$	(625)	$	517	$	—	$	2,841	$	—
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (8)	$	—	$	—	$	—	$	—	$	—	$	—
Balance, January 1, 2020	$	113	$	2,139	$	—	$	—	$	(8,502)	$	(23)
Realized and unrealized gains (losses), included in Net income (loss) as:	—		—		—		—		—		—
Investment gains (losses), reported in net investment income	(8)		—		—		—		—		—
Net derivative gains (losses)	—		417		—		—		(2,253)		—
Total realized and unrealized gains (losses)	(8)		417		—		—		(2,253)		—
Other comprehensive income (loss)	—		—		—		—		—		—
Purchases (2)	9		43		—		1		(451)		(4)
Sales (3)	(26)		(79)		—		—		75		—
Settlements (4)	—		—		—		—		—		1
Change in estimate	—		(32)		—		—		—		1
Activity related to consolidated VIEs/VOEs	(4)		—		—		—		—		(3)
Transfers into Level 3 (5)	—		—		—		—		—		—
Transfers out of Level 3 (5)	—		—		—		—		—		—
Balance, December 31, 2020	$	84	$	2,488	$	—	$	1	$	(11,131)	$	(28)
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (8)	$	(8)	$	417	$	74	$	1	$	(2,253)	$	(7)

	Other Equity Investments (9)		GMIB Reinsurance  Contract Asset		Amounts Due from Reinsurers		Separate Accounts Assets		GMxB Derivative Features Liability		Contingent Payment Arrangement
	(in millions)
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (8)	$	—	$	—	$	—	$	—	$	—	$	—
Balance, January 1, 2019	$	93	$	1,733	$	—	$	21	$	(5,674)	$	(7)
Total gains (losses), realized and unrealized, included in:
Realized and unrealized gains (losses), included in Net income (loss) as:	$	—	$	—	$	—	$	—	$	—	$	—
Investment gains (losses), net	23		—		—		—		—		—
Net derivative gains (losses)	—		433		—		—		(2,442)		—
Non-performance risk (1)	—		—		—		—		—		—
Total realized and unrealized gains (losses)	23		433		—		—		(2,442)		—
Other comprehensive income (loss)	—		—		—		—		—		—
Purchases (2)	5		45		—		—		(427)		(17)
Sales (3)	(5)		(72)		—		(1)		41		—
Settlements (4)	—		—		—		(2)		—		1
Change in estimate	—		—		—		—		—		3
Activity related to consolidated VIEs/VOEs	(3)		—		—		—		—		(3)
Transfers into Level 3 (6)	—		—		—		—		—		—
Transfers out of Level 3 (6)	—		—		—		(18)		—		—
Balance, December 31, 2019	$	113	$	2,139	$	—	$	—	$	(8,502)	$	(23)
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (8)	$	23	$	433	$	—	$	—	$	(2,442)	$	—
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (8)	$	—	$	—	$	—	$	—	$	—	$	—

______________

(1)For the years ended December 31, 2021 and 2020, the Company’s non-performance risk impact of $213 million and $(764) million for the GMxB Derivative Features Liability, $(23) million and $7 million for the GMIB Reinsurance Contract Asset, and $(19) million and $0 million for the Amounts Due from Reinsurers, respectively, is recorded through Net derivative gains (losses).

(2)For the GMIB reinsurance contract asset, Amounts Due from Reinsurers and GMxB derivative features liability, represents attributed fee.

(3)For the GMIB reinsurance contract asset and Amounts Due from Reinsurers, represents recoveries from reinsurers and for GMxB derivative features liability represents benefits paid.

(4)For contingent payment arrangements, it represents payments under the arrangement.

(5)Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values.

(6)GMxB Derivative Features Liability excludes a $45 million settlement fee on CS Life reinsurance contract.

(7)Represents the opening ceded balance from the Venerable Transaction of the GMxB with no lapse guarantee riders.

(8)For instruments held as of December 31, 2021, December 31, 2020 and December 31, 2019, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income.

(9)Other Equity Investments include other invested assets.

Quantitative Information About Level 3 Fair Value Measurement

The following tables disclose quantitative information about Level 3 fair value measurements by category for assets and liabilities as of December 31, 2021 and December 31, 2020, respectively.

Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2021

	Fair Value		Valuation Technique	Significant Unobservable Input	Range	Weighted Average (2)
	(in millions)
Assets:
Investments:
Fixed maturities, AFS:
Corporate	$	258	Matrix pricing model	Spread over Benchmark	20 bps - 270 bps	144 bps
	888		Market comparable  companies	EBITDA multiples Discount rate Cash flow multiples Loan to value	4.9x - 62.3x 6.2% - 21.5% 0.5x - 10.0x 3.1% - 63.4%	13.0x 9.1% 5.5x 30.8%
Trading Securities, at Fair Value	65		Discounted Cash Flow	Earnings multiple Discount factor Discount years	7.3x 10.00% 11
Other equity investments	4		Market comparable companies	Revenue multiple	7.8x - 10.3x	9.5x
GMIB reinsurance contract asset	1,848		Discounted cash flow	Lapse rates Withdrawal Rates GMIB Utilization Rates Non-performance risk Volatility rates - Equity Mortality: Ages 0-40 Ages 41-60 Ages 61-115	0.45%-20.86% 0.27%-8.66% 0.04%-60.44% 57 bps - 93 bps 11%-31% 0.01%-0.17% 0.06%-0.53% 0.31%-40.00%	2.65% 0.93% 5.27% 60 bps 24% 2.79% (same for all ages) (same for all ages)
Amount Due from Reinsurers	5,813		Discounted Cash Flow	Lapse rates Withdrawal Rates GMIB Utilization Rates Non-performance risk (bps) Volatility rates - Equity Mortality: Ages 0-40 Ages 41-60 Ages 61-115	0.45%-20.86% 0.27%-8.66% 0.04%-60.44% 37 bps 11%-31% 0.01%-0.17% 0.06%-0.53% 0.31%-40.00%	1.70% 1.18% 7.20% 37 bps 24% 2.17% (same for all ages) (same for all ages)
Liabilities:

	Fair Value	Valuation Technique	Significant Unobservable Input	Range	Weighted Average (2)
AB Contingent Consideration Payable	38	Discounted cash flow	Expected revenue growth rates Discount rate	2.0% - 83.9% 1.9% - 10.4%	11.9% 7.0%
GMIBNLG	8,503	Discounted cash flow	Non-performance risk Lapse rates Withdrawal rates Annuitization rates Mortality rates (1): Ages 0 - 40 Ages 41-60 Ages 61-115	111 bps 1.04%-23.57% 0.27%-8.66% 0.03%-100.00% 0.01%-0.19% 0.07%-0.57% 0.44%-43.60%	111 bps 3.55% 1.04% 5.24% 1.62% (same for all ages) (same for all ages)
GWBL/GMWB	99	Discounted cash flow	Lapse rates Withdrawal Rates Utilization Rates Volatility rates - Equity Non-performance risk(bps)	0.60%-20.86% 0.00%-8.00% 100% once starting 11%-31% 111 bps	2.65% 0.93% 24%
GIB	(75)	Discounted cash flow	Lapse rates Withdrawal Rates Utilization Rates Volatility rates - Equity Non-performance risk(bps)	0.60%-20.86% 0.13%-8.66% 0.04%-100.00% 11% - 31% 111 bps	2.65% 0.93% 5.27% 24%
GMAB	(3)	Discounted cash flow	Lapse rates Volatility rates - Equity Non-performance risk(bps)	0.60%-20.86% 11%-31% 111 bps	2.65% 24%

______________

(1)Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives.

(2)For lapses, withdrawals, and utilizations the rates were weighted by counts; for mortality weighted average rates are shown for all ages combined; and for withdrawals the weighted averages were based on an estimated split of partial withdrawal and dollar-for-dollar withdrawals.

Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2020

	Fair Value		Valuation Technique	Significant Unobservable Input	Range	Weighted Average (2)
	(in millions)
Assets:
Investments:
Fixed maturities, AFS:
Corporate	$	34	Matrix pricing model	Spread over benchmark	45 bps - 195 bps	160 bps
	1,148		Market comparable companies	EBITDA multiples  Discount rate  Cash flow multiples	3.5x - 33.1x 5.60% - 28.40% 1.9x-25.0x	10.8x 8.60% 6.8x
Trading Securities, at Fair Value	39		Discounted cash flow	Earnings multiple Discounts factor Discount years	8.2x 10.00% 11
Other equity investments	2		Market comparable companies	Revenue multiple	9.7x - 26.4x	18.5x

	Fair Value	Valuation Technique	Significant Unobservable Input	Range	Weighted Average (2)
	(in millions)
GMIB reinsurance contract asset	2,488	Discounted cash flow	Non-performance risk Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 60 - 115	43 - 85 bps 0.6% - 16% 0% - 2% 0% - 61% 7% - 32% 0.01% - 0.18% 0.07% - 0.54% 0.42% - 42.20%	50 bps 1.69% 0.91% 5.82% 24% 2.80% (same for all ages) (same for all ages)
Liabilities:
AB Contingent Consideration Payable	28	Discounted cash flow	Expected revenue growth rates Discount rate	0.7% - 50.0% 1.9% - 10.4%	4.9% 8.0%
GMIBNLG	10,713	Discounted cash flow	Non-performance risk Lapse rates Withdrawal rates Annuitization rates Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 60 - 115	96.0 bps 1.1% - 25.7% 0.4% - 2% 0% - 100% 0.01% - 0.19% 0.06% - 0.53% 0.41% - 41.39%	3.19% 0.93% 5.51% 1.56% (same for all ages) (same for all ages)
Assumed GMIB Reinsurance Contracts	195	Discounted cash flow	Non-performance risk Lapse rates Withdrawal rates (Age 0 - 85) Withdrawal rates (Age 86+) Utilization rates Volatility rates - Equity	60 - 133 bps 1.1% - 11.1% 0.6% - 22.2% 1.1% - 100% 0% -30% 7%-32%	99 bps 1.69% 0.91% (same for all ages) 5.82% 24%
GWBL/GMWB	190	Discounted cash flow	Non-performance risk Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity	96.0 bps 0.8%-16% 0%-8% 100% once starting 7%-32%	1.69% 0.91% 24%
GIB	31	Discounted cash flow	Non-performance risk Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity	96.0 bps 0.8%-15.6% 0%-2% 0%-100% 7%-32%	1.69% 0.91% 5.82% 24%
GMAB	2	Discounted cash flow	Non-performance risk Lapse rates Volatility rates - Equity	96.0 bps 0.8%-16% 7%-32%	1.69% 24%

______________

(1)Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives.

(2)For lapses, withdrawals, and utilizations the rates were weighted by counts; for mortality weighted average rates are shown for all ages combined; and for withdrawals the weighted averages were based on an estimated split of partial withdrawal and dollar-for-dollar withdrawals.

Fair Value Disclosure Financial Instruments Not Carried At Fair Value

The carrying values and fair values as of December 31, 2021 and December 31, 2020 for financial instruments not otherwise disclosed in Note 3 and Note 4 of the Notes to these Consolidated Financial Statements are presented in the table below.

Carrying Values and Fair Values for Financial Instruments Not Otherwise Disclosed

	Carrying Value		Fair Value
			Level 1		Level 2		Level 3		Total
	(in millions)
December 31, 2021:
Mortgage loans on real estate	$	14,033	$	—	$	—	$	14,308	$	14,308
Policy loans	$	4,024	$	—	$	—	$	5,050	$	5,050
Policyholders’ liabilities: Investment contracts (3)	$	2,035	$	—	$	—	$	2,103	$	2,103
FHLB funding agreements	$	6,647	$	—	$	6,679	$	—	$	6,679
FABN funding agreements	$	6,689	$	—	$	6,626	$	—	$	6,626
Short-term and long-term debt (2)	$	3,839	$	—	$	4,544	$	—	$	4,544
Separate Accounts liabilities	$	11,620	$	—	$	—	$	11,620	$	11,620
December 31, 2020:
Mortgage loans on real estate	$	13,159	$	—	$	—	$	13,491	$	13,491
Policy loans (1)	$	4,118	$	—	$	—	$	5,352	$	5,352
Policyholders’ liabilities: Investment contracts (1)	$	2,198	$	—	$	—	$	2,416	$	2,416
FHLB funding agreements	$	6,897	$	—	$	6,990	$	—	$	6,990
FABN funding agreements	$	1,939	$	—	$	1,971	$	—	$	1,971
Short-term and long-term debt	$	4,115	$	—	$	5,065	$	—	$	5,065
Separate Accounts liabilities	$	10,081	$	—	$	—	$	10,081	$	10,081

_____________

(1)Excludes amounts reclassified as HFS.

(2)Excludes CLO short-term debt of $92 million which is inclusive as fair valued within Notes issued by consolidated VIE’s, at fair value using the fair value option.

(3) As of December 31, 2021, reflects transfer of certain policyholders account balances to future policyholder benefits and other policyholders liabilities related to structured settlement contracts.

XML

INSURANCE LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2021

Insurance [Abstract]

Variable Annuity Contracts- GMDB GMIB

Change in Liability for Variable Annuity Contracts with GMDB and GMIB Features and No NLG Feature

Year Ended December 31, 2021, 2020 and 2019

	GMDB						GMIB
	Direct		Assumed		Ceded		Direct		Assumed		Ceded
	(in millions)
Balance, January 1, 2019	$	4,662	$	82	$	(113)	$	3,746	$	184	$	(1,733)
Paid guarantee benefits	(438)		(21)		14		(256)		7		72
Other changes in reserve	556		15		(5)		1,183		(4)		(478)
Balance, December 31, 2019	$	4,780	$	76	$	(104)	$	4,673	$	187	$	(2,139)
Paid guarantee benefits	(495)		(22)		15		(293)		15		79
Other changes in reserve	812		18		1		1,646		(6)		(428)
Balance, December 31, 2020	$	5,097	$	72	$	(88)	$	6,026	$	196	$	(2,488)
Paid guarantee benefits	(461)		(12)		113		(377)		(49)		58
Other changes in reserve	315		14		(65)		243		(7)		603
Impact of the Venerable Transaction (1) (2)	—		(74)		(2,176)		—		(140)		(2,141)
Balance, December 31, 2021	$	4,951	$	—	$	(2,216)	$	5,892	$	—	$	(3,968)

_____________

(1)Change in Assumed is driven by the sale of CSLRC to Venerable.

(2)Includes the impact as of June 1, 2021 on the ceded reserves to Venerable. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction.

Schedule of Net Amount of Risk by Product and Guarantee

Direct Variable Annuity Contracts with GMDB and GMIB Features

as of December 31, 2021

	Guarantee Type
	Return of Premium			Ratchet			Roll-Up			Combo			Total
	(in millions, except age and interest rate)
Variable annuity contracts with GMDB features
Account Values invested in:
General Account	$	16,188		$	84		$	51		$	156		$	16,479
Separate Accounts	59,819			9,860			3,412			34,486			107,577
Total Account Values	$	76,007		$	9,944		$	3,463		$	34,642		$	124,056
NAR, gross	$	90		$	30		$	1,333		$	15,732		$	17,185
NAR, net of amounts reinsured	$	86		$	26		$	937		$	7,948		$	8,997
Average attained age of policyholders (in years)	51.5			69.0			75.5			71.1			55.6
Percentage of policyholders over age 70	11.7		%	51.1		%	72.6		%	57.5		%	20.7		%
Range of contractually specified interest rates	N/A			N/A			3% - 6%			3% - 6.5%			3% - 6.5%
Variable annuity contracts with GMIB features
Account Values invested in:
General Account	$	—		$	—		$	16		$	202		$	218
Separate Accounts	—			—			26,443			36,833			63,276
Total Account Values	$	—		$	—		$	26,459		$	37,035		$	63,494
NAR, gross	$	—		$	—		$	632		$	9,093		$	9,725
NAR, net of amounts reinsured	$	—		$	—		$	202		$	3,708		$	3,910
Average attained age of policyholders (in years)	N/A			N/A			65.0			70.8			68.6
Weighted average years remaining until annuitization	N/A			N/A			6.0			0.6			2.7
Range of contractually specified interest rates	N/A			N/A			3% - 6%			3% - 6.5%			3% - 6.5%

Schedule of Fair Value of Separate Accounts by Major Category of Investment

Investment in Variable Insurance Trust Mutual Funds

	December 31,
	2021				2020
	GMDB		GMIB		GMDB		GMIB
Mutual Fund Type	(in millions)
Equity	$	52,771	$	20,015	$	46,850	$	18,771
Fixed income	5,391		2,507		5,506		2,701
Balanced	48,390		40,491		47,053		39,439
Other	1,025		263		1,111		275
Total	$	107,577	$	63,276	$	100,520	$	61,186

No Lapse Guarantee Liabilities

The change in the NLG liabilities, reflected in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets, is summarized in the table below.

	Direct Liability (1)
	Year Ended December 31,
	2021		2020		2019
	(in millions)
Beginning balance	$	1,022	$	898	$	813
Paid guarantee benefits	(84)		(39)		(20)
Other changes in reserves	158		163		127
Transfer to liabilities held-for-sale	—		—		$	(22)
Ending balance	$	1,096	$	1,022	$	898

_____________

(1)There were no amounts of reinsurance ceded in any period presented.

XML

LEASES (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Assets and Liabilities, Leases

Balance Sheet Classification of Operating Lease Assets and Liabilities

		December 31,
	Balance Sheet Line Item	2021		2020
		(in millions)
Assets:
Operating lease assets	Other assets	$	637	$	691
Liabilities:
Operating lease liabilities	Other liabilities	$	768	$	855

Lease, Cost

The table below summarizes the components of lease costs for the years ended December 31, 2021, 2020 and 2019.

Lease Costs

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Operating lease cost	$	173	$	169	$	186
Variable operating lease cost	49		49		50
Sublease income	(55)		(56)		(72)
Short-term lease expense	—		—		2
Net lease cost	$	167	$	162	$	166

Weighted Averages - Remaining Operating Lease Term and Discount Rate

	December 31,
	2021		2020
Weighted-average remaining operating lease term	7 years		6 years
Weighted-average discount rate for operating leases	2.80	%	3.07	%

Supplemental cash flow information related to leases was as follows:

Lease Liabilities Information

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	209	$	210	$	222
Non-cash transactions:
Leased assets obtained in exchange for new operating lease liabilities	$	109	$	156	$	50

Lessee, Operating Lease, Liability, Maturity

Maturities of lease liabilities as of December 31, 2021 are as follows:

Maturities of Lease Liabilities

	December 31, 2021
	(in millions)
Operating Leases:
2022	$	197
2023	183
2024	131
2025	60
2026	54
Thereafter	211
Total lease payments	836
Less: Interest	(68)
Present value of lease liabilities	$	768

XML

REINSURANCE (Tables)

12 Months Ended

Dec. 31, 2021

Reinsurance Disclosures [Abstract]

Schedule Of Effect Of Reinsurance

The following table summarizes the effect of reinsurance. The impact of the transactions described above results in a decrease to reinsurance assumed and an increase in reinsurance ceded.

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Direct premiums	$	970	$	929	$	1,068
Reinsurance assumed	189		222		220
Reinsurance ceded	(199)		(154)		(141)
Premiums	$	960	$	997	$	1,147
Direct charges and fee income	$	4,250	$	4,149	$	4,197
Reinsurance ceded	(613)		(414)		(419)
Policy charges and fee income	$	3,637	$	3,735	$	3,778
Direct policyholders’ benefits	$	3,843	$	5,826	$	4,711
Reinsurance assumed	238		241		240
Reinsurance ceded	(863)		(741)		(566)
Policyholders’ benefits	$	3,218	$	5,326	$	4,385
Direct interest credited to policyholders’ account balances	$	1,271	$	1,252	$	1,322
Reinsurance ceded	(52)		(30)		(59)
Interest credited to policyholders’ account balances	$	1,219	$	1,222	$	1,263

Ceded Credit Risk

The following table summarizes the ceded reinsurance GMIB reinsurance contracts, third-party recoverables, amount due to reinsurance and assumed reserves.

	December 31,
	2021		2020
	(in millions)
Ceded Reinsurance:
Estimated net fair values of ceded GMIB reinsurance contracts, considered derivatives (1)	$	1,848	$	2,488
Estimated net fair values of ceded GMIB NLG ceded reserves to Venerable (2)	5,813		—
Third-party reinsurance recoverables related to insurance contracts	14,679		4,566
Top reinsurers:
Venerable Insurance and Annuity Company (A- KBRA (IFRS) rating)	10,291		N/A
Zurich Life Insurance Company, Ltd. (AA- SAP rating)	1,318		1,421
Protective Life Insurance Company (AA- SAP rating)	1,153		1,184
RGA Reinsurance Company (AA- SAP rating))	1,138		1,143
Ceded group health reserves	40		48
Amount due to reinsurers	1,381		1,381
Top reinsurers:
RGA Reinsurance Company	1,212		1,135
Protective Life Insurance Company	111		116
Venerable Insurance and Annuity Company	27		N/A
Assumed Reinsurance:
Reinsurance assumed reserves	798		788
Estimated net fair values of assumed GMIB reserves (3)	—		195

______________

(1)The estimated fair values increased/(decreased) $(640) million, $349 million and $407 million for the years ended December 31, 2021, 2020 and 2019, respectively.

(2)Reported in amounts due from reinsurers. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable transaction.

(3)Change in Reinsurance assumed reserves is driven by the sale of CSLRC to Venerable.

XML

SHORT-TERM AND LONG-TERM DEBT (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Short-term and Long-term Debt

The following table sets forth the Company’s total consolidated borrowings. Short-term and long-term debt consists of the following:

	December 31,
	2021		2020
	(in millions)
Short-term debt:
CLO Warehousing Debt (1)	$	92	$	—
Total short-term debt	92		—
Long-term debt:
Senior Notes (5.0%, due 2048)	1,481		1,481
Senior Notes (4.35%, due 2028)	1,490		1,489
Senior Notes (3.9%, due 2023)	519		796
Senior Debentures, (7.0%, due 2028)	349		349
Total long-term debt	3,839		4,115
Total short-term and long-term debt	$	3,931	$	4,115

(1) CLO Warehousing Debt related to VIE consolidation of CLO investment.

XML

RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2021

Related Party Transactions [Abstract]

Schedule of Related Party Transactions

Revenues earned by AB from providing these services were as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Investment management and services fees	$	1,645	$	1,368	$	1,276
Distribution revenues	637		516		441
Other revenues - shareholder servicing fees	86		79		75
Other revenues - other	8		8		7
Total	$	2,376	$	1,971	$	1,799

The table below summarizes the expenses reimbursed to/from the Company and the fees received/paid by the Company in connection with certain services described above for the years ended December 31, 2021, 2020 and 2019.

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Revenue received or accrued for:
Investment management and administrative services provided to EQAT, EQ Premier VIP Trust, 1290 Funds and Other AXA Trusts	$	840	$	724	$	732
Total	$	840	$	724	$	732
Expenses paid or accrued for:
Investment management services provided by AXA Strategic Ventures Corporation	$	2	$	2	$	2
Total	$	2	$	2	$	2

XML

EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Schedule of Net Benefit Costs

Components of net periodic pension expense for the Company’s qualified and non-qualified plans were as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Service cost	$	6	$	6	$	8
Interest cost	46		77		104
Expected return on assets	(154)		(147)		(152)
Actuarial (gain) loss	1		1		1
Net amortization	99		103		94
Impact of settlement	6		7		—
Net periodic pension expense	$	4	$	47	$	55

Components of Net Post-Retirement Benefits Costs

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Service cost	$	2	$	2	$	1
Interest cost	8		13		18
Net amortization	9		9		6
Net periodic post-retirement benefits costs	$	19	$	24	$	25

Components of net post-employment benefits costs follow:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Service cost	$	1	$	1	$	1
Interest cost	—		—		—
Net amortization	—		(5)		—
Net (gain) loss	—		—		(1)
Net periodic post-employment benefits costs	$	1	$	(4)	$	1

Schedule of Accumulated and Projected Benefit Obligations

Changes in the PBO of the Company’s qualified and non-qualified plans were comprised of:

	2021		2020
	(in millions)
Projected benefit obligation, beginning of year	$	3,180	$	3,056
Service cost	—		—
Interest cost	45		77
Actuarial (gains)/losses (1)	(95)		272
Benefits paid	(198)		(203)
Plan amendments and curtailments	—		—
Settlements	(32)		(22)
Projected benefit obligation, end of year	$	2,900	3,180

______________

(1)Actuarial gains and losses are a product of changes in the discount rate as shown below.

The following table discloses the change in plan assets and the funded status of the Company’s qualified pension plans and non-qualified pension plans:

	2021		2020
	(in millions)
Pension plan assets at fair value, beginning of year	$	2,744	$	2,552
Actual return on plan assets	259		373
Contributions	—		—
Benefits paid	(165)		(165)
Annuity purchases	(30)		(16)
Pension plan assets at fair value, end of year	2,808		2,744
PBO	2,900		3,180
Excess of PBO over pension plan assets, end of year	$	92	$	436

Changes in the accumulated benefits obligation of the Company’s post-retirement plans recognized in the accompanying consolidated financial statements are described in the following table:

Accumulated Post-Retirement Benefits Obligation

	December 31,
	2021		2020
	(in millions)
Accumulated post-retirement benefits obligation, beginning of year	$	516	$	517
Service cost	2		2
Interest cost	8		13
Contributions and benefits paid	(28)		(24)
Plan amendments/curtailments	—		(30)
Actuarial (gains) losses	(32)		38
Accumulated post-retirement benefits obligation, end of year	$	466	$	516

Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan

	December 31,
	2021		2020
	(in millions)
Projected benefit obligation	$	2,900	$	3,180
Accumulated benefit obligation	2,900		3,180
Fair value of plan assets	$	2,808	$	2,744

Schedule of Net Periodic Benefit Cost Not Yet Recognized

The following table discloses the amounts included in AOCI as of December 31, 2021 and 2020 that have not yet been recognized as components of net periodic pension cost.

	December 31,
	2021		2020
	(in millions)
Unrecognized net actuarial (gain) loss	$	620	$	895
Unrecognized prior service cost (credit)	(1)		(1)
Unrecognized net transition obligation (asset)	—		—
Total	$	619	$	894

The following table discloses the amounts included in AOCI as of December 31, 2021 and 2020 that have not yet been recognized as components of net periodic post-retirement benefits cost:

	December 31,
	2021		2020
	(in millions)
Unrecognized net actuarial (gains) losses	$	135	$	186
Unrecognized prior service (credit)	(26)		(29)
Total	$	109	$	157

Schedule of Allocation of Plan Assets

The following table discloses the allocation of the fair value of total qualified pension plan assets as of December 31, 2021 and 2020:

	December 31,
	2021		2020
Fixed maturities	47.2	%	47.2	%
Equity securities	29.7		32.1
Equity real estate	16.5		14.7
Cash and short-term investments	2.5		1.7
Other	4.1		4.3
Total	100.0	%	100.0	%

Schedule of Fair Values of Plan Assets Within Fair Value Hierarchy

The following tables disclose the fair values of qualified pension plan assets and their level of observability within the fair value hierarchy as of December 31, 2021 and 2020, respectively.

	Level 1		Level 2		Level 3		Total
	(in millions)
December 31, 2021:
Fixed Maturities:
Corporate	$	—	$	842	$	—	$	842
U.S. Treasury, government and agency	—		426		—		426
States and political subdivisions	—		16		—		16
Foreign governments	—		18		—		18
Commercial mortgage-backed	—		—		—		—
Common equity, REITs and preferred equity	576		108		—		684
Mutual funds	62		—		—		62
Collective Trust	—		99		—		99
Derivatives, net	—		—		—		—
Cash and cash equivalents	19		—		—		19
Short-term investments	—		46		—		46
Total Assets at Fair Value	657		1,555		—		2,212
Investments measured at NAV	—		—		—		593
Total Investments at Fair Value	$	657	$	1,555	$	—	$	2,805
December 31, 2020:
Fixed Maturities:
Corporate	—		$	831	$	—	$	831
U.S. Treasury, government and agency	—		412		—		412
States and political subdivisions	—		16		—		16
Foreign governments	—		14		—		14
Commercial mortgage-backed	—		1		—		1
Common equity, REITs and preferred equity	622		113		—		735
Mutual funds	63		—		—		63
Collective Trust	—		98		—		98
Cash and cash equivalents	23		—		—		23
Short-term investments	—		21		—		21
Total Assets at Fair Value	708		1,506		—		2,214
Investments measured at NAV	—		—		—		536
Total Investments at Fair Value	$	708	$	1,506	$	—	$	2,750

Schedule of Employee Benefit Plan, Practical Expedient

The following table lists investments for which NAV is calculated; NAV is used as a practical expedient to determine the fair value of these investments as of December 31, 2021 and 2020.

Practical Expedient Disclosure as of December 31, 2021 and 2020

Investment	Fair Value		Redemption Frequency (If currently eligible)	Redemption Notice Period	Unfunded Commitments
	(in millions)
December 31, 2021:
Private Equity Fund	$	72	N/A (1) (2)	N/A	$	19
Private Real Estate Investment Trust	457		Quarterly	One Quarter	—
Hedge Fund	65		Calendar Quarters (3)	Previous Quarter End	$	5
Total (4)	$	594
December 31, 2020:
Private Equity Fund	$	69	N/A (1)(2)	N/A	$	21
Private Real Estate Investment Trust	397		Quarterly	One Quarter	—
Hedge Fund	69		Calendar Quarters (3)	Previous Quarter End	$	4
Total (4)	$	535

_______________

(1)Cannot sell or transfer ownership interest without prior written consent to transfer, and by meeting several criteria (e.g., does not adversely affect other investors).

(2)Cannot sell interest in the vehicle without prior written consent of the managing member.

(3)March, June, September and December.

(4)Includes equity method investments of $109 million and $110 million as of December 31, 2021 and 2020, respectively.

Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets

The table below presents a reconciliation for all Level 3 fair values of qualified pension plan assets as of December 31, 2021, 2020 and 2019, respectively:

Level 3 Instruments

Fair Value Measurements

	Private Real Estate Investment Trusts		Other Equity Investments		Fixed Maturities
	(in millions)
Balance, January 1, 2021	$	—	$	—	$	—
Actual return on plan assets — Sales/Settlements	—		—		(1)
Balance, December 31, 2021	$	—	$	—	$	(1)
Balance, January 1, 2020	$	—	$	—	$	1
Actual return on plan assets — Sales/Settlements	—		—		(1)
Balance, December 31, 2021	$	—	$	—	$	—
Balance, January 1, 2019	$	—	$	—	$	2
Actual return on plan assets — Sales/Settlements	—		—		(1)
Balance, December 31, 2019	$	—	$	—	$	1

Schedule of Assumptions Used

The following table discloses assumptions used to measure the Company’s pension benefit obligations and net periodic pension cost at and for the years ended December 31, 2021 and 2020.

	December 31,
	2021	2020
Discount rates:
Equitable Financial QP	2.55%	2.11%
Equitable Excess Retirement Plan	2.47%	1.99%
MONY Life Retirement Income Security Plan for Employees	2.78%	2.43%
AB Qualified Retirement Plan	2.55%	3.35%
Other defined benefit plans	2.05%-2.78%	1.46%-2.43%
Periodic cost	1.18%-2.78%	0.51%-2.43%
Cash balance interest crediting rate for pre-April 1, 2012 accruals	4.00%	4.00%
Cash balance interest crediting rate for post-April 1, 2012 accruals	0.50%	2.25%
Rates of compensation increase:
Benefit obligation	5.97%	5.99%
Periodic cost	6.33%	6.32%
Expected long-term rates of return on pension plan assets (periodic cost)	6.25%	6.25%

The assumed discount rates for measuring the post-retirement benefit obligations as of December 31, 2021 and 2020 were determined in substantially the same manner as described above for measuring the pension benefit obligations. The following table discloses the range of discrete single equivalent discount rates and related net periodic cost at and for the years ended December 31, 2021 and 2020.

	December 31,
	2021	2020
Discount rates:
Benefit obligation	2.43%-2.72%	1.97%-2.38%
Periodic cost	2.34%-2.52%	2.80%-3.16%

Schedule of Health Care Cost Trend Rates

Assumed Healthcare Cost Trend Rates used to Measure the Expected Cost of Benefits

	December 31,
	2021	2020
Following year	5.1%	5.6%
Ultimate rate to which cost increase is assumed to decline	4.0%	4.0%
Year in which the ultimate trend rate is reached	2094	2095

Schedule of Expected Benefit Payments

The following table provides an estimate of future benefits expected to be paid in each of the next five years, beginning January 1, 2022, and in the aggregate for the five years thereafter. These estimates are based on the same assumptions used to measure the respective benefit obligations as of December 31, 2021 and include benefits attributable to estimated future employee service.

			Postretirement Benefits
					Health
Calendar Year	Pension Benefits		Life Insurance		Gross Estimate Payment		Estimated Medicare Part D Subsidy		Net Estimate Payment
	(in millions)
2022	$	211,168	$	—	$	—	$	—	$	—
2023	$	250,713	$	—	$	—	$	—	$	—
2024	$	200,447	$	—	$	—	$	—	$	—
2025	$	196,067	$	—	$	—	$	—	$	—
2026	$	186,582	$	—	$	—	$	—	$	—
Years 2027 — 2030	$	2,453,131	$	—	$	—	$	—	$	—

XML

SHARE-BASED COMPENSATION PROGRAMS (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Schedule Of Compensation Costs

Compensation costs for 2021, 2020 and 2019 for share-based payment arrangements as further described herein are as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Performance Shares	$	17	$	11	$	29
Stock Options	—		7		4
Restricted Stock Units	257		234		243
Total compensation expenses	$	274	$	252	$	276
Income Tax Benefit	$	58	52		62

Summary Of Stock Option Activity

A summary of activity in the AXA and Holdings option plans during 2021 as follows:

	Options Outstanding
	EQH Shares			AB Holding Units			AXA Ordinary Shares
	Number Outstanding   (in 000’s)	Weighted Average Exercise Price		Number Outstanding (In 000’s)	Weighted Average Exercise Price		Number Outstanding   (in 000’s)	Weighted Average Exercise Price
Options outstanding at January 1, 2021	3,428	$	21.14	148,985	$	23.61	1,726	€ 21.01
Options granted	—	—		—	—		—	—
Options exercised	(1,204)	21.20		(143,211)	23.75		(743)	19.19
Options forfeited, net	(184)	21.91		—	—		(109)	22.34
Options expired	—	—		—	—		—	—
Options outstanding at December 31, 2021	2,040	$	21.69	5,774	$	20.12	874	€ 22.39
Aggregate intrinsic value (1)		$	6,305		$	165,829		(€ 2,370)
Weighted average remaining contractual term (in years)	7.71			0.33			4.69
Options exercisable at December 31, 2021	843	$	21.58	5,774	$	20.12	758	€ 22.38
Aggregate intrinsic value (1)		$	2,700		$	165,829		(€ 2,049)
Weighted average remaining contractual term (in years)	7.56			0.33			4.48

_______________

(1) Aggregate intrinsic value, presented in thousands, is calculated as the excess of the closing market price on December 31, 2021 of the respective underlying shares over the strike prices of the option awards. For awards with strike prices higher than market prices, intrinsic value is shown as zero.

A summary of stock option grant assumptions activity in the AXA and the Company option plans during 2021, 2020, and 2019 follows:

	EQH Shares (1)
	2021 (2)		2020		2019
Dividend yield	—%		2.59%		2.77%
Expected volatility	—%		26.00%		25.70%
Risk-free interest rates	—%		1.19%		2.49%
Expected life in years	—		6.0		5.9
Weighted average fair value per option at grant date	$	—	$	4.37	$	3.82

_______________

(1) The expected volatility is based on historical selected peer data, the weighted average expected term is determined by using the simplified method due to lack of sufficient historical data, the expected dividend yield based on Holdings’ expected annualized dividend, and the risk-free interest rate is based on the U.S. Treasury bond yield for the appropriate expected term.

(2) No stock options granted during 2021.

Schedule Of Share-based Compensation, Restricted Stock Units Award Activity

The following table summarizes Holdings restricted share units and AXA ordinary share unit activity for 2021.

	Shares of Holdings Restricted Stock Units	Weighted-Average Grant Date  Fair Value
Unvested as of January 1, 2021	3,666,611	$	21.15
Granted	1,630,277	$	28.01
Forfeited	(194,262)	$	24.43
Vested	(1,873,893)	$	20.81
Unvested as of December 31, 2021	3,228,733	$	24.61

Schedule Of Share-based Compensation, Performance Stock Units Award Activity

The following table summarizes Holdings and AXA performance awards activity for 2021.

	Shares of Holdings Performance Awards	Weighted-Average Grant Date  Fair Value		Shares of AXA Performance Awards	Weighted-Average Grant Date Fair Value
Unvested as of January 1, 2021	676,688	$	22.14	2,806,126	$	21.86
Granted	1,153,932	$	29.91	—	$	—
Forfeited	(200,814)	$	28.28	(7,939)	$	27.18
Vested	(168,132)	$	23.17	(1,410,020)	$	23.94
Other (1)	—	$	—	(1,325,420)	$	19.64
Unvested as of December 31, 2021	1,461,674	$	28.58	62,747	$	21.28

_______________

(1) One time true-up of AXA Performance Awards related to the transition to third party administrator.

XML

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Summary Of Income Tax Expense (benefit)

A summary of the income tax (expense) benefit in the consolidated statements of income (loss) follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Income tax (expense) benefit:
Current (expense) benefit	$	(129)	$	(5)	$	(71)
Deferred (expense) benefit	274		749		664
Total	$	145	$	744	$	593

Schedule Of Effective Income Tax Rate Reconciliation

The sources of the difference and their tax effects are as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Expected income tax (expense) benefit	$	36	$	229	$	433
Noncontrolling interest	69		50		51
Non-taxable investment income	80		92		74
Tax audit interest	(14)		(8)		(24)
State income taxes	(47)		(38)		(21)
Tax settlements/uncertain tax position release	—		398		63
Tax credits	28		21		—
Other	(7)		—		17
Income tax (expense) benefit	$	145	$	744	$	593

Schedule Of Net Deferred Income Taxes

The components of the net deferred income taxes are as follows:

	December 31,
	2021				2020
	Assets		Liabilities		Assets		Liabilities
	(in millions)
Compensation and related benefits	$	273	$	—	$	297	$	—
Net operating loss and credits	699		—		88		—
Reserves and reinsurance	2,281		—		1,528		—
DAC	—		874		—		638
Unrealized investment gains/losses	—		965		—		1,790
Investments	—		794		461		—
Other	—		76		—		170
Total	$	3,253	$	2,709	$	2,374	$	2,598

Unrecognized Tax Benefits Reconciliation

A reconciliation of unrecognized tax benefits (excluding interest and penalties) follows:

	2021		2020		2019
	(in millions)
Balance at January 1,	$	316	$	501	$	539
Additions for tax positions of prior years	11		241		25
Reductions for tax positions of prior years	(4)		(382)		(63)
Additions for tax positions of current year	—		—		—
Settlements with tax authorities	—		(44)		—
Balance at December 31,	$	323	$	316	$	501
Unrecognized tax benefits that, if recognized, would impact the effective rate	$	67	$	77	$	369

XML

COMMITMENTS AND CONTINGENT LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Activity of Funding Agreements

The table below summarizes the Company’s activity of funding agreements with the FHLB.

Change in FHLB Funding Agreements during the Year Ended December 31, 2021

	Outstanding Balance at December 31, 2020		Issued During the Period		Repaid During the Period		Long-term Agreements Maturing Within One Year		Long-term Agreements Maturing Within Five Years		Outstanding Balance at December 31, 2021
	(in millions)
Short-term funding agreements:
Due in one year or less	$	5,634	$	59,846	$	60,504	$	377	$	—	$	5,353
Long-term funding agreements:
Due in years two through five	722		411		—		(377)		534		1,290
Due in more than five years	534		—		—		—		(534)		—
Total long-term funding agreements	1,256		411		—		(377)		—		1,290
Total funding agreements (1)	$	6,890	$	60,257	$	60,504	$	—	$	—	$	6,643

_____________

(1)The $4 million and $7 million difference between the funding agreements carrying value shown in fair value table for December 31, 2021 and December 31, 2020, respectively, reflects the remaining amortization of a hedge implemented and closed, which locked in the funding agreements borrowing rates.

The table below summarizes the Equitable Financial’s activity of funding agreements under the FABN.

Change in FABN Funding Agreements during the Year Ended December 31, 2021

	Outstanding Balance at December 31, 2020		Issued During the Period		Repaid During the Period		Long-term Agreements Maturing Within One Year		Long-term Agreements Maturing Within Five Years		Foreign Currency Transaction Adjustment		Outstanding Balance at December 31, 2021
	(in millions)
Short-term funding agreements:
Due in one year or less	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Long-term funding agreements:
Due in years two through five	1,150		3,450		—		—		—		—		4,600
Due in more than five years	800		1,359		—		—		—		(40)		2,119
Total long-term funding agreements	1,950		4,809		—		—		—		(40)		6,719
Total funding agreements (1)	$	1,950	$	4,809	$	—	$	—	$	—	$	(40)	$	6,719

_____________

(1)The $70 million and $11 million difference between the funding agreements notional value shown and carrying value table as of December 31, 2021 and December 31, 2020, respectively, reflects the remaining amortization of the issuance cost of the funding agreements and the foreign currency transaction adjustment.

XML

INSURANCE GROUP STATUTORY FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 31, 2021

Insurance [Abstract]

Schedule of Combined Statutory Financial Information

In accordance with statutory accounting practices, the following table presents the combined statutory net income (loss), surplus, capital stock & AVR, and securities on deposits for Equitable Financial, Equitable America, USFL, Equitable L&A and CS Life.

	2021		2020		2019
	(in millions)
Years Ended December 31,
Combined statutory net income (loss) (1) (2)	$	(936)	$	396	$	3,821
As of December 31,
Combined surplus, capital stock and AVR	$	6,864	$	7,475
Combined securities on deposits n accordance with various government and state regulations	$	65	$	75

_____________

(1) For 2021, excludes CS Life which was sold June 1, 2021.

(2) For 2020, excludes USFL which was sold April 1, 2020.

XML

BUSINESS SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The table below presents operating earnings (loss) by segment and Corporate and Other and a reconciliation to net income (loss) attributable to Holdings for the years ended December 31, 2021, 2020 and 2019, respectively:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Net income (loss) attributable to Holdings	$	(439)	$	(648)	$	(1,764)
Adjustments related to:
Variable annuity product features (1)	4,145		3,912		4,863
Investment (gains) losses	(867)		(744)		(73)
Net actuarial (gains) losses related to pension and other postretirement benefit obligations	120		109		99
Other adjustments (2) (3) (4) (5)	717		952		395
Income tax expense (benefit) related to above adjustments (6)	(864)		(888)		(1,097)
Non-recurring tax items (7)	13		(391)		(66)
Non-GAAP Operating Earnings	$	2,825	$	2,302	$	2,357
Operating earnings (loss) by segment:
Individual Retirement	$	1,444	$	1,536	$	1,598
Group Retirement	$	631	$	491	$	390
Investment Management and Research	$	564	$	432	$	381
Protection Solutions	$	317	$	146	$	336
Corporate and Other (8)	$	(131)	$	(303)	$	(348)

______________

(1)Includes COVID-19 impact on variable annuity product features due to a first quarter 2020 assumption update of $1.5 billion and other COVID-19 related impacts of $35 million for the year ended December 31, 2020.

(2)Includes COVID-19 impact on other adjustments due to a first quarter 2020 assumption update of $1.0 billion and other COVID-19 related impacts of $86 million for the year ended December 31, 2020.

(3)Include separation costs of $82 million, $108 million and $222 million for the years ended December 31, 2021, 2020 and 2019, respectively.

(4)Includes certain legal accruals related to the COI litigation of $207 million for the year ended December 31, 2021. No adjustments were made to prior period operating earnings as the impact was immaterial.

(5)Includes Non-GMxB related derivative hedge gains and losses of $65 million, $(404) million and $36 million for the years ended December 31, 2021, 2020 and 2019, respectively.

(6)Includes income taxes of $(554) million for the above COVID-19 items for the year ended December 31, 2020.

(7)Prior year includes a reduction in the reserve for uncertain tax positions resulting from the completion of an IRS examination in the year ended December 31, 2020.

(8)Includes interest expense and financing fees of $241 million $218 million and $228 million for the years ended December 31, 2021, 2020 and 2019, respectively.

The table below presents segment revenues for the years ended December 31, 2021, 2020 and 2019.

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Segment revenues:
Individual Retirement (1)	$	3,785	$	4,311	$	4,325
Group Retirement (1)	1,372		1,148		1,077
Investment Management and Research (2)	4,430		3,703		3,479
Protection Solutions (1)	3,358		3,144		3,366
Corporate and Other (1)	1,563		1,207		1,228
Adjustments related to:
Variable annuity product features	(4,268)		(2,284)		(3,935)
Investment gains (losses), net	867		744		73
Other adjustments to segment revenues (3)	(71)		442		6
Total revenues	$	11,036	$	12,415	$	9,619

______________

(1)Includes investment expenses charged by AB of $128 million, $71 million and $76 million for the years ended December 31, 2021, 2020 and 2019, respectively, for services provided to the Company.

(2)Inter-segment investment management and other fees of $126 million, $113 million and $104 million for the years ended December 31, 2021, 2020 and 2019, respectively, are included in segment revenues of the Investment Management and Research segment.

(3)Includes COVID-19 impact on other adjustments due to an assumption update of $46 million and other COVID-19 related impacts of $(30) million for the year ended December 31, 2020.

The table below presents total assets by segment as of December 31, 2021 and 2020:

	December 31,
	2021		2020
	(in millions)
Total assets by segment:
Individual Retirement (1)	$	143,663	$	135,764
Group Retirement	55,368		51,466
Investment Management and Research	11,602		11,179
Protection Solutions	50,686		48,568
Corporate and Other	30,943		28,420
Total assets	$	292,262	$	275,397

______________

(1) Increase in Individual Retirement as of December 31, 2021 is primarily due to Amounts due from Reinsurers related to ceded reserves on the Venerable Transaction (see Note 1 of the Notes to these Consolidated Financial Statements).

XML

EQUITY (Tables)

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Schedule of Stock by Class

Preferred stock authorized, issued and outstanding was as follows:

	December 31, 2021			December 31, 2020
Series	Shares Authorized	Shares  Issued	Shares Outstanding	Shares Authorized	Shares  Issued	Shares Outstanding
Series A	32,000	32,000	32,000	32,000	32,000	32,000
Series B	20,000	20,000	20,000	20,000	20,000	20,000
Series C	12,000	12,000	12,000	—	—	—
Total	64,000	64,000	64,000	52,000	52,000	52,000

Dividends Declared

Dividends declared per share were as follows for the periods indicated:

	Year ended December 31,
	2021		2020		2019
Series A dividends declared	$	1,313	$	1,378	$	—
Series B dividends declared	$	1,238	$	426	$	—
Series C dividends declared	$	1,006	$	—	$	—

Dividends declared per share of common stock were as follows for the periods indicated:

	Year Ended December 31,
	2021		2020		2019
Dividends declared	$	0.71	$	0.66	$	0.58

Schedule of Accumulated Other Comprehensive Income (Loss)

AOCI represents cumulative gains (losses) on items that are not reflected in net income (loss). The balances as of December 31, 2021, and 2020 follow:

	December 31,
	2021		2020
	(in millions)
Unrealized gains (losses) on investments	$	2,684	$	4,797
Defined benefit pension plans	(669)		(935)
Foreign currency translation adjustments	(45)		(34)
Total accumulated other comprehensive income (loss)	1,970		3,828
Less: Accumulated other comprehensive income (loss) attributable to noncontrolling interest	(34)		(35)
Accumulated other comprehensive income (loss) attributable to Holdings	$	2,004	$	3,863

Components of Accumulated Other Comprehensive Income (Loss), Net of Taxes

The components of OCI, net of taxes for the years ended December 31, 2021, 2020 and 2019 follow:

		Year Ended December 31,
		2021		2020		2019
	(in millions)
Change in net unrealized gains (losses) on investments:
Net unrealized gains (losses) arising during the period		$	(2,467)	$	4,887	$	3,301
(Gains) losses reclassified into net income (loss) during the period (1)		(698)		(653)		(161)
Net unrealized gains (losses) on investments		(3,165)		4,234		3,140
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other		1,052		(1,278)		(882)
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(562), $786, and $595)		(2,113)		2,956		2,258
Change in defined benefit plans:
Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost (2)		266		48		(15)
Change in defined benefit plans (net of deferred income tax expense (benefit) of $68, $14, and $10)		266		48		(15)
Foreign currency translation adjustments:
Foreign currency translation gains (losses) arising during the period		(11)		22		5
(Gains) losses reclassified into net income (loss) during the period		—		—		—
Foreign currency translation adjustment		(11)		22		5
Total other comprehensive income (loss), net of income taxes		(1,858)		3,026		2,248
Less: Other comprehensive income (loss) attributable to noncontrolling interest		1		7		(4)
Other comprehensive income (loss) attributable to Holdings		$	(1,859)	$	3,019	$	2,252

______________

(1)See “reclassification adjustments” in Note 3 of the Notes to these Consolidated Financial Statements. Reclassification amounts presented net of income tax expense (benefit) of $186 million, $(174) million, and $(43) million for the years ended December 31, 2021, 2020 and 2019, respectively.

(2)These AOCI components are included in the computation of net periodic costs (see Note 14 of the Notes to these Consolidated Financial Statement).

XML

EARNINGS PER COMMON SHARE (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table presents a reconciliation of net income (loss) and weighted-average common shares used in calculating basic and diluted EPS for the periods indicated:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Weighted-average common shares outstanding:
Weighted-average common shares outstanding — basic	417.4		450.4		493.6
Effect of dilutive securities:
Employee share awards (1)	—		—		—
Weighted-average common shares outstanding — diluted (2)	417.4		450.4		493.6
Net income (loss):
Net income (loss)	$	(24)	$	(349)	$	(1,467)
Less: Net income (loss) attributable to the noncontrolling interest	415		299		297
Net income (loss) attributable to Holdings	(439)		(648)		(1,764)
Less: Preferred stock dividends	79		53		—
Net income (loss) available to Holdings’ common shareholders	$	(518)	$	(701)	$	(1,764)
EPS:
Basic	$	(1.24)	$	(1.56)	$	(3.57)
Diluted	$	(1.24)	$	(1.56)	$	(3.57)

_____________

(1)Calculated using the treasury stock method.

(2)Due to net loss for the years ended December 31, 2021, 2020 and 2019, approximately 3.8 million, 1.7 million and 0.8 million shares were excluded from the diluted EPS calculation.

XML

REDEEMABLE NONCONTROLLING INTEREST (Tables)

12 Months Ended

Dec. 31, 2021

Noncontrolling Interest [Abstract]

Redeemable Noncontrolling Interest

The changes in the components of redeemable noncontrolling interests are presented in the table that follows:

	Years Ended December 31,
	2021		2020		2019
	(in millions)
Balance, beginning of period	$	143	$	365	$	187
Net earnings (loss) attributable to redeemable noncontrolling interests	5		(3)		34
Purchase/change of redeemable noncontrolling interests	320		(219)		144
Balance, end of period	$	468	$	143	$	365

XML

HELD-FOR-SALE (Tables)

12 Months Ended

Dec. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

Assets And Liabilities Held-for-sale

The following table summarizes the components of assets and liabilities HFS on the Consolidated Balance Sheets as of December 31, 2020:

	December 31,
	2020
	(in millions)
Assets:
Fixed maturity securities	$	235
Trading securities, at fair value	189
Other invested assets	1
Cash and cash equivalents	39
Other assets	25
Assets held-for-sale	489
Less: Loss accrual	(19)
Total assets held-for-sale	$	470
Liabilities:
Future policy benefits and other policyholder's liabilities:	$	320
Broker-dealer related payables	—
Other liabilities	2
Total liabilities held-for-sale	$	322

XML

ORGANIZATION - Narrative (Details)		12 Months Ended
	Jun. 01, 2021 USD ($)	Dec. 31, 2021 USD ($) segment	Dec. 31, 2020 USD ($)
Organization Basis Of Presentation [Line Items]
Number of reportable segments | segment		4
Assets		$ 292,262,000,000	$ 275,397,000,000
Corporate Solutions Life Reinsurance Company (CS Life)
Organization Basis Of Presentation [Line Items]
Ownership percentage acquired	100.00%
Alliance Bernstein (AB)
Organization Basis Of Presentation [Line Items]
Economic interest		65.00%	65.00%
Alliance Bernstein (AB) | Corporate Solutions Life Reinsurance Company (CS Life)
Organization Basis Of Presentation [Line Items]
Assets	$ 9,500,000,000
Direct insurance liabilities ceded	9,600,000,000
Separate account, liability, ceded	16,900,000,000
Alliance Bernstein (AB) | Corporate Solutions Life Reinsurance Company (CS Life) | GMxB derivative features’ liability
Organization Basis Of Presentation [Line Items]
Fair value	5,300,000,000
Venerable Insurance and Annuity Company (VAIC) | Equitable Financial Life Insurance Company (EFLIC)
Organization Basis Of Presentation [Line Items]
Surplus notes	60,000,000
Venerable Insurance and Annuity Company (VAIC) | Corporate Solutions Life Reinsurance Company (CS Life)
Organization Basis Of Presentation [Line Items]
Business combination, consideration transferred	$ 215,000,000
Equitable Investment Management Group, LLC (EIMG) | VA Capital Company LLC
Organization Basis Of Presentation [Line Items]
Ownership percentage acquired	9.09%

XML

SIGNIFICANT ACCOUNTING POLICIES - Investments (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Life insurance, corporate or bank owned, amount	$ 1,010	$ 992

XML

SIGNIFICANT ACCOUNTING POLICIES - Amortization Policy (Details)	12 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Average annual rate of return, gross	7.00%
Average annual rate of return, net	4.70%
Future annual rate of return, gross, maximum	15.00%
Future annual rate of return, net, maximum	12.70%
Future annual rate of return, gross, minimum	0.00%
Future annual rate of return, net, minimum	2.30%
Future annual rate of return assumption duration maximum	5 years
Assumed average investment yield excluding policy loans, high end	4.50%
Assumed average investment yield excluding policy loans, low end	4.30%

XML

SIGNIFICANT ACCOUNTING POLICIES - Policyholders' Account Balances and Future Policy Benefits and Various Policies (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Liability For Future Policy Benefits Assumptions [Line Items]
Percentage of life insurance liabilities calculate within traditional life interest rate range	99.40%
Capitalized Computer Software and Hosting Arrangements [Abstract]
Computer software and hosting arrangements	$ 193	$ 191
Amortization of computer software and hosting arrangements	57	60	$ 52
Alliance Bernstein | Deferred Sales Commissions
Capitalized Computer Software and Hosting Arrangements [Abstract]
Gross carrying amount of AllianceBernstein related intangible assets	75	$ 64
Amortization expense, year one	35
Amortization expense, year two	26
Amortization expense, year three	13
Amortization expense, year four	$ 1
Minimum | Computer Software, Intangible Asset
Capitalized Computer Software and Hosting Arrangements [Abstract]
Intangible asset useful life	3 years
Minimum | Alliance Bernstein
Capitalized Computer Software and Hosting Arrangements [Abstract]
Intangible asset useful life	6 years
Maximum | Computer Software, Intangible Asset
Capitalized Computer Software and Hosting Arrangements [Abstract]
Intangible asset useful life	5 years
Maximum | Alliance Bernstein
Capitalized Computer Software and Hosting Arrangements [Abstract]
Intangible asset useful life	20 years
Life Insurance Liabilities | Minimum
Liability For Future Policy Benefits Assumptions [Line Items]
Liability for future policy benefits, interest rate	3.50%
Life Insurance Liabilities | Maximum
Liability For Future Policy Benefits Assumptions [Line Items]
Liability for future policy benefits, interest rate	7.30%
Life Insurance Liabilities | Weighted Average
Liability For Future Policy Benefits Assumptions [Line Items]
Liability for future policy benefits, interest rate	5.00%
Annuity Liabilities | Minimum
Liability For Future Policy Benefits Assumptions [Line Items]
Liability for policyholder contract deposits, interest rate	1.50%
Annuity Liabilities | Maximum
Liability For Future Policy Benefits Assumptions [Line Items]
Liability for policyholder contract deposits, interest rate	5.40%
Annuity Liabilities | Weighted Average
Liability For Future Policy Benefits Assumptions [Line Items]
Liability for policyholder contract deposits, interest rate	3.50%

XML

SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details)	12 Months Ended
	Dec. 31, 2021
Income Tax Contingency [Line Items]
Unincorporated business tax (UBT) rate, percent	4.00%
AB Holding
Income Tax Contingency [Line Items]
Tax rate	3.50%

XML

SIGNIFICANT ACCOUNTING POLICIES - Variable Interest Entities (Details) - USD ($) $ in Millions		Dec. 31, 2021		Dec. 31, 2020		Dec. 31, 2019	Dec. 31, 2018
Variable Interest Entity [Line Items]
Investments		$ 105,111		$ 109,087
Fixed maturities, at fair value using the fair value option	[1]	1,641		389
Notes issued by consolidated variable interest entities, at fair value using the fair value option	[1]	1,191		313
Unpaid outstanding balance and short-term borrowing		1,300		362
Assets		292,262		275,397
Liabilities		278,699		258,077
Redeemable non-controlling interest		468	[1],[2]	143	[1],[2]	$ 365	$ 187
Consolidated Variable Interest Entities | CLO Warehouse Debt
Variable Interest Entity [Line Items]
Investments		109		38
Investment assets, special purpose entity		58
Consolidated Limited Partnerships
Variable Interest Entity [Line Items]
Assets		219		12
Non-consolidated Vairable Interest Entities
Variable Interest Entity [Line Items]
Investments		2,100		1,400
Assets		245,600		165,900
Variable interest entity, maximum loss exposure		2,100		1,400
Variable interest entity, unfunded commitments		1,200		1,200
AB-Sponsored Investment Funds | Consolidated Variable Interest Entities
Variable Interest Entity [Line Items]
Assets		734		284
Liabilities		87		8
Redeemable non-controlling interest		421		83
AB-Sponsored Investment Funds | VOE Consolidation Model
Variable Interest Entity [Line Items]
Assets		0		68
Liabilities		0		23
Redeemable non-controlling interest		0		20
AB-Sponsored Investment Funds | Non-consolidated Vairable Interest Entities
Variable Interest Entity [Line Items]
Assets		68,900		73,400
Variable interest entity, maximum loss exposure		$ 9		$ 7

[1] See Note 2 of the Notes to these Consolidated Financial Statements for details of balances with VIEs.

[2] See Note 22 of the Notes to these Consolidated Financial Statements for details of redeemable noncontrolling interest.

XML

SIGNIFICANT ACCOUNTING POLICIES - Assumption Updates and Model Changes (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Change in Accounting Estimate [Line Items]
Policy charges and fee income		$ 3,637	$ 3,735	$ 3,778
Policyholders’ benefits		3,218	5,326	4,385
Interest credited to policyholders’ account balances		1,219	1,222	1,263
Net derivative gains (losses)		(4,465)	(1,722)	(4,012)
Amortization of deferred policy acquisition costs, net		393	1,613	597
Income (loss) from continuing operation, before income taxes		(169)	(1,093)	(2,060)
Net income (loss)		(24)	(349)	(1,467)
Long-term Lapses, Partial Withdrawal Rates and Election Assumptions Updates
Change in Accounting Estimate [Line Items]
Policy charges and fee income	$ 46	(28)	23	3
Policyholders’ benefits	1,400	(62)	1,600	875
Interest credited to policyholders’ account balances	(6)		(1)	(13)
Net derivative gains (losses)		200	112	(578)
Amortization of deferred policy acquisition costs, net	$ 1,100	(58)	1,100	(46)
Income (loss) from continuing operation, before income taxes		(108)	(2,600)	(1,400)
Net income (loss)		$ (85)	(2,000)	$ (1,100)
Economic Scenario Generator
Change in Accounting Estimate [Line Items]
Income (loss) from continuing operation, before income taxes			201
Net income (loss)			$ 159
5-year Historical Average Over A 10-year Period
Change in Accounting Estimate [Line Items]
Interest rate assumptions		2.25%

XML

INVESTMENTS - Narrative (Details)	12 Months Ended
	Dec. 31, 2021 USD ($) issue	Dec. 31, 2020 USD ($) issue	Dec. 31, 2019 USD ($)
Net Investment Income [Line Items]
Number of positions in unrealized loss position | issue	2,060	565
Debt securities exposure in single issuer greater than stated percentage of total investments	0.60%
Gross unrealized losses	$ 91,000,000	$ 40,000,000
Allowance for credit losses	62,000,000	81,000,000
Separate account equity investment carrying value	45,000,000	44,000,000
Interest credited to policyholders account balances participating group annuity contracts	2,000,000	2,000,000	$ 2,000,000
Fixed maturities
Net Investment Income [Line Items]
Accrued investment income receivable	506,000,000	538,000,000
Accrued interest, written off	0	0
Amortized cost	73,400,000,000	72,900,000,000
Corporate
Net Investment Income [Line Items]
Exposure in single issuer of total investments	$ 322,000,000	$ 391,000,000
Debt securities exposure in single issuer of total investments, percentage	2.50%	2.30%
Gross unrealized losses	$ 75,000,000	$ 33,000,000
Commercial mortgage loans
Net Investment Income [Line Items]
Accrued investment income receivable	57,000,000	58,000,000
Accrued interest, written off	0	0
Agricultural mortgage loans
Net Investment Income [Line Items]
Accrued investment income receivable	57,000,000	58,000,000
Accrued interest, written off	0	0
Individually assessed mortgage loans
Net Investment Income [Line Items]
Mortgage loans foreclosure probable	0
Allowance for credit losses	0
Commercial Real Estate Portfolio Segment
Net Investment Income [Line Items]
Allowance for credit losses	57,000,000	77,000,000	$ 33,000,000
Non-accruing loans, carrying value	14,000,000	0
Recurring
Net Investment Income [Line Items]
Investment gains (losses), net	631,000,000	5,553,000,000
Other than investment grade | Non-investment grade | Fixed maturities
Net Investment Income [Line Items]
Available-for-sale securities, amortized cost basis other than investment grade	$ 2,900,000,000	$ 2,500,000,000
Percentage of available for sale securities	3.90%	3.40%
Unrealized loss on available for sale securities	$ 18,000,000	$ 49,000,000

XML

INVESTMENTS - Available-for-sale Securities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 73,429	$ 72,867
Allowance for Credit Losses	22	13
Gross Unrealized Gains	5,125	8,895
Gross Unrealized Losses	316	111
Fair Value	78,216	81,638
Amortized Cost (Less Allowance for Credit Losses)
Due in one year or less	1,117
Due in years two through five	15,452
Due in years six through ten	18,189
Due after ten years	30,158
Subtotal	64,916
Amortized cost	73,407
Fair Value
Due in one year or less	1,120
Due in years two through five	16,002
Due in years six through ten	19,104
Due after ten years	33,484
Subtotal	69,710
Fair Value	78,216	81,638
Fixed Maturities Proceeds Gross Gains And Gross Losses From Sales And Other Than Temporary Impairments
Proceeds from sales	27,363	12,903	$ 8,972
Gross gains on sales	1,152	862	234
Gross losses on sales	(195)	(41)	(32)
Credit losses	(16)	(13)	0
Fixed Maturities - Credit Loss Impairments
Balance, beginning of period	32	21	58
Previously recognized impairments on securities that matured, paid, prepaid or sold	(4)	(2)	(37)
Recognized impairments on securities impaired to fair value this period	0	0	0
Credit losses recognized this period on securities for which credit losses were not previously recognized	9	6	0
Additional credit losses this period on securities previously impaired	7	7	0
Increases due to passage of time on previously recorded credit losses	0	0	0
Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior)	0	0	0
Balance, end of period	44	32	$ 21
Corporate
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	50,172	53,160
Allowance for Credit Losses	22	13
Gross Unrealized Gains	2,601	5,104
Gross Unrealized Losses	240	92
Fair Value	52,511	58,159
Fair Value
Fair Value	52,511	58,159
U.S. government, agencies and authorities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	13,056	12,675
Allowance for Credit Losses	0	0
Gross Unrealized Gains	2,344	3,448
Gross Unrealized Losses	15	5
Fair Value	15,385	16,118
Fair Value
Fair Value	15,385	16,118
States and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	586	535
Allowance for Credit Losses	0	0
Gross Unrealized Gains	78	100
Gross Unrealized Losses	2	0
Fair Value	662	635
Fair Value
Fair Value	662	635
Foreign governments
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,124	1,011
Allowance for Credit Losses	0	0
Gross Unrealized Gains	42	98
Gross Unrealized Losses	14	6
Fair Value	1,152	1,103
Fair Value
Fair Value	1,152	1,103
Residential mortgage-backed
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	90	130
Allowance for Credit Losses	0	0
Gross Unrealized Gains	8	13
Gross Unrealized Losses	0	0
Fair Value	98	143
Amortized Cost (Less Allowance for Credit Losses)
Without single maturity date	90
Fair Value
Without single maturity date	98
Fair Value	98	143
Asset-backed
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	5,933	3,587
Allowance for Credit Losses	0	0
Gross Unrealized Gains	21	29
Gross Unrealized Losses	20	5
Fair Value	5,934	3,611
Amortized Cost (Less Allowance for Credit Losses)
Without single maturity date	5,933
Fair Value
Without single maturity date	5,934
Fair Value	5,934	3,611
Commercial mortgage-backed
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,427	1,148
Allowance for Credit Losses	0	0
Gross Unrealized Gains	19	55
Gross Unrealized Losses	25	0
Fair Value	2,421	1,203
Amortized Cost (Less Allowance for Credit Losses)
Without single maturity date	2,427
Fair Value
Without single maturity date	2,421
Fair Value	2,421	1,203
Redeemable preferred stock
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	41	621
Allowance for Credit Losses	0	0
Gross Unrealized Gains	12	48
Gross Unrealized Losses	0	3
Fair Value	53	666
Amortized Cost (Less Allowance for Credit Losses)
Without single maturity date	41
Fair Value
Without single maturity date	53
Fair Value	$ 53	$ 666

XML

INVESTMENTS - Net Unrealized Gain (Losses) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward]
Beginning of year	$ 17,177	$ 15,047	$ 15,368
End of year	13,095	17,177	15,047
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Net Unrealized Gains (Losses) on Investments
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward]
Beginning of year	8,811	3,453	(522)
Net investment gains (losses) arising during the period	(3,122)	6,192	4,188
Included in net income (loss)	(846)	(828)	(213)
Excluded from net income (loss)	0	0	0
Other	(33)
Impact of net unrealized investment gains (losses)	0		0
Net unrealized investment gains (losses) excluding credit losses	4,810	8,817	3,453
Net unrealized investment gains (losses) with credit losses	(1)	(6)	0
End of year	4,809	8,811	3,453
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | DAC
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward]
Beginning of year	(1,548)	(894)	100
Impact of net unrealized investment gains (losses)	767	(655)	(994)
End of year	(782)	(1,548)	(894)
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Policyholders’ Liabilities
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward]
Beginning of year	(1,065)	(189)	(88)
Impact of net unrealized investment gains (losses)	648	(877)	(101)
End of year	(418)	(1,065)	(189)
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Deferred Income Tax Asset (Liability)
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward]
Beginning of year	(1,302)	(497)	104
Impact of net unrealized investment gains (losses)	544	(806)	(601)
End of year	(757)	(1,302)	(497)
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward]
Beginning of year	4,896	1,873	(406)
Net investment gains (losses) arising during the period	(3,122)	6,192	4,188
Included in net income (loss)	(846)	(828)	(213)
Excluded from net income (loss)	0	0	0
Other	(33)
Impact of net unrealized investment gains (losses)	1,959	(2,338)	(1,696)
Net unrealized investment gains (losses) excluding credit losses	2,854	4,899	1,873
Net unrealized investment gains (losses) with credit losses	(2)	(3)	0
End of year	2,852	4,896	1,873
Fixed maturities | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | DAC
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward]
Net unrealized investment gains (losses) excluding credit losses	(781)	(1,549)	(894)
Net unrealized investment gains (losses) with credit losses	(1)	1	0
Fixed maturities | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Policyholders’ Liabilities
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward]
Net unrealized investment gains (losses) excluding credit losses	(417)	(1,066)	(189)
Net unrealized investment gains (losses) with credit losses	(1)	1	0
Fixed maturities | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Deferred Income Tax Asset (Liability)
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward]
Net unrealized investment gains (losses) excluding credit losses	(758)	(1,303)	(497)
Net unrealized investment gains (losses) with credit losses	$ 1	$ 1	$ 0

XML

INVESTMENTS - Fixed Maturities Available-for-sale (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Available For Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than Twelve Months, Fair Value	$ 17,425	$ 4,890
Less than 12 Months, Gross Unrealized Losses	223	65
12 Months or Longer, Fair Value	1,975	445
12 Months or Longer, Gross Unrealized Losses	91	40
Total Fair Value	19,400	5,335
Total Gross Unrealized Losses	314	105
Corporate
Available For Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than Twelve Months, Fair Value	10,571	2,990
Less than 12 Months, Gross Unrealized Losses	163	53
12 Months or Longer, Fair Value	1,633	337
12 Months or Longer, Gross Unrealized Losses	75	33
Total Fair Value	12,204	3,327
Total Gross Unrealized Losses	238	86
U.S. government, agencies and authorities
Available For Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than Twelve Months, Fair Value	993	885
Less than 12 Months, Gross Unrealized Losses	11	5
12 Months or Longer, Fair Value	105	0
12 Months or Longer, Gross Unrealized Losses	4	0
Total Fair Value	1,098	885
Total Gross Unrealized Losses	15	5
States and political subdivisions
Available For Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than Twelve Months, Fair Value	120
Less than 12 Months, Gross Unrealized Losses	2
12 Months or Longer, Fair Value	11
12 Months or Longer, Gross Unrealized Losses	0
Total Fair Value	131
Total Gross Unrealized Losses	2
Foreign governments
Available For Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than Twelve Months, Fair Value	349	153
Less than 12 Months, Gross Unrealized Losses	6	2
12 Months or Longer, Fair Value	92	21
12 Months or Longer, Gross Unrealized Losses	8	4
Total Fair Value	441	174
Total Gross Unrealized Losses	14	6
Asset-backed
Available For Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than Twelve Months, Fair Value	3,865	809
Less than 12 Months, Gross Unrealized Losses	20	4
12 Months or Longer, Fair Value	38	76
12 Months or Longer, Gross Unrealized Losses	0	1
Total Fair Value	3,903	885
Total Gross Unrealized Losses	20	5
Commercial mortgage-backed
Available For Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than Twelve Months, Fair Value	1,527
Less than 12 Months, Gross Unrealized Losses	21
12 Months or Longer, Fair Value	96
12 Months or Longer, Gross Unrealized Losses	4
Total Fair Value	1,623
Total Gross Unrealized Losses	$ 25
Redeemable Preferred Stock
Available For Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than Twelve Months, Fair Value		53
Less than 12 Months, Gross Unrealized Losses		1
12 Months or Longer, Fair Value		11
12 Months or Longer, Gross Unrealized Losses		2
Total Fair Value		64
Total Gross Unrealized Losses		$ 3

XML

INVESTMENTS - Mortgage Loans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	$ 81
Balance, end of period	62	$ 81
Commercial Mortgage Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	77	33
Current-period provision for expected credit losses	(20)	44
Write-offs charged against the allowance	0	0
Recoveries of amounts previously written off	0	0
Net change in allowance	(20)	44
Balance, end of period	57	77
Agricultural Mortgage Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	4	3
Current-period provision for expected credit losses	1	1
Write-offs charged against the allowance	0	0
Recoveries of amounts previously written off	0	0
Net change in allowance	1	1
Balance, end of period	$ 5	$ 4

XML

INVESTMENTS - Credit Quality (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, before Allowance for Credit Loss [Abstract]
Total	$ 14,095	$ 13,240
Total	14,079	13,240
Non-accruing Loans	16	0
Non-accruing Loans with No Allowance	0	0
Interest Income on Non-accruing Loans	0	0
Past Due
Financing Receivable, before Allowance for Credit Loss [Abstract]
Total	27	274
30-59 Days
Financing Receivable, before Allowance for Credit Loss [Abstract]
Total	1	238
60-89 Days
Financing Receivable, before Allowance for Credit Loss [Abstract]
Total	1	7
90 Days Or Greater
Financing Receivable, before Allowance for Credit Loss [Abstract]
Total	25	29
Current
Financing Receivable, before Allowance for Credit Loss [Abstract]
Total	14,052	12,966
Commercial Mortgage Loans
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	2,157	1,615
Fiscal year before current fiscal year	1,570	814
Two years before current fiscal year	819	1,267
Three years before current fiscal year	1,253	1,204
Four years before current fiscal year	1,065	2,580
Prior	4,587	3,028
Total	11,451	10,508
Total	11,451	10,508
Non-accruing Loans	0	0
Non-accruing Loans with No Allowance	0	0
Interest Income on Non-accruing Loans	0	0
Commercial Mortgage Loans | Past Due
Financing Receivable, before Allowance for Credit Loss [Abstract]
Total	0	162
Commercial Mortgage Loans | 30-59 Days
Financing Receivable, before Allowance for Credit Loss [Abstract]
Total	0	162
Commercial Mortgage Loans | 60-89 Days
Financing Receivable, before Allowance for Credit Loss [Abstract]
Total	0	0
Commercial Mortgage Loans | 90 Days Or Greater
Financing Receivable, before Allowance for Credit Loss [Abstract]
Total	0	0
Commercial Mortgage Loans | Current
Financing Receivable, before Allowance for Credit Loss [Abstract]
Total	11,451	10,346
Commercial Mortgage Loans | Greater than 2.0x
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	1,143	1,230
Fiscal year before current fiscal year	1,243	492
Two years before current fiscal year	210	772
Three years before current fiscal year	772	268
Four years before current fiscal year	485	1,959
Prior	2,235	1,230
Total	6,088	5,951
Commercial Mortgage Loans | 1.8x to 2.0x
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	185	227
Fiscal year before current fiscal year	135	83
Two years before current fiscal year	250	118
Three years before current fiscal year	46	378
Four years before current fiscal year	161	184
Prior	372	329
Total	1,149	1,319
Commercial Mortgage Loans | 1.5x to 1.8x
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	275	98
Fiscal year before current fiscal year	97	138
Two years before current fiscal year	284	187
Three years before current fiscal year	211	479
Four years before current fiscal year	166	437
Prior	919	616
Total	1,952	1,955
Commercial Mortgage Loans | 1.2x to 1.5x
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	264	60
Fiscal year before current fiscal year	95	57
Two years before current fiscal year	75	154
Three years before current fiscal year	101	79
Four years before current fiscal year	253	0
Prior	701	658
Total	1,489	1,008
Commercial Mortgage Loans | 1.0x to 1.2x
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	290	0
Fiscal year before current fiscal year	0	44
Two years before current fiscal year	0	0
Three years before current fiscal year	88	0
Four years before current fiscal year	0	0
Prior	287	123
Total	665	167
Commercial Mortgage Loans | Less than 1.0x
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	36
Three years before current fiscal year	35	0
Four years before current fiscal year	0	0
Prior	73	72
Total	108	108
Commercial Mortgage Loans | 0% - 50%
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	184	324
Four years before current fiscal year	293	187
Prior	1,009	505
Total	1,486	1,016
Commercial Mortgage Loans | 50% - 70%
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	1,967	1,294
Fiscal year before current fiscal year	1,334	357
Two years before current fiscal year	407	803
Three years before current fiscal year	619	656
Four years before current fiscal year	491	2,190
Prior	2,533	1,697
Total	7,351	6,997
Commercial Mortgage Loans | 70% - 90%
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	190	321
Fiscal year before current fiscal year	236	457
Two years before current fiscal year	412	452
Three years before current fiscal year	415	219
Four years before current fiscal year	276	203
Prior	972	538
Total	2,501	2,190
Commercial Mortgage Loans | 90% plus
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	12
Three years before current fiscal year	35	5
Four years before current fiscal year	5	0
Prior	73	288
Total	113	305
Agricultural Mortgage Loans
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	380	495
Fiscal year before current fiscal year	480	264
Two years before current fiscal year	230	333
Three years before current fiscal year	255	259
Four years before current fiscal year	206	360
Prior	1,093	1,021
Total	2,644	2,732
Total	2,628	2,732
Non-accruing Loans	16	0
Non-accruing Loans with No Allowance	0	0
Interest Income on Non-accruing Loans	0	0
Agricultural Mortgage Loans | Past Due
Financing Receivable, before Allowance for Credit Loss [Abstract]
Total	27	112
Agricultural Mortgage Loans | 30-59 Days
Financing Receivable, before Allowance for Credit Loss [Abstract]
Total	1	76
Agricultural Mortgage Loans | 60-89 Days
Financing Receivable, before Allowance for Credit Loss [Abstract]
Total	1	7
Agricultural Mortgage Loans | 90 Days Or Greater
Financing Receivable, before Allowance for Credit Loss [Abstract]
Total	25	29
Agricultural Mortgage Loans | Current
Financing Receivable, before Allowance for Credit Loss [Abstract]
Total	2,601	2,620
Agricultural Mortgage Loans | Greater than 2.0x
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	49	67
Fiscal year before current fiscal year	64	26
Two years before current fiscal year	25	36
Three years before current fiscal year	22	38
Four years before current fiscal year	24	71
Prior	210	167
Total	394	405
Agricultural Mortgage Loans | 1.8x to 2.0x
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	52	38
Fiscal year before current fiscal year	37	35
Two years before current fiscal year	25	14
Three years before current fiscal year	14	15
Four years before current fiscal year	14	20
Prior	70	82
Total	212	204
Agricultural Mortgage Loans | 1.5x to 1.8x
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	43	117
Fiscal year before current fiscal year	113	38
Two years before current fiscal year	28	41
Three years before current fiscal year	22	45
Four years before current fiscal year	41	52
Prior	193	209
Total	440	502
Agricultural Mortgage Loans | 1.2x to 1.5x
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	161	183
Fiscal year before current fiscal year	179	120
Two years before current fiscal year	112	141
Three years before current fiscal year	116	90
Four years before current fiscal year	72	142
Prior	355	313
Total	995	989
Agricultural Mortgage Loans | 1.0x to 1.2x
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	75	86
Fiscal year before current fiscal year	83	35
Two years before current fiscal year	31	93
Three years before current fiscal year	77	70
Four years before current fiscal year	54	57
Prior	226	233
Total	546	574
Agricultural Mortgage Loans | Less than 1.0x
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	0	4
Fiscal year before current fiscal year	4	10
Two years before current fiscal year	9	8
Three years before current fiscal year	4	1
Four years before current fiscal year	1	18
Prior	39	17
Total	57	58
Agricultural Mortgage Loans | 0% - 50%
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	180	218
Fiscal year before current fiscal year	212	135
Two years before current fiscal year	128	169
Three years before current fiscal year	129	157
Four years before current fiscal year	119	236
Prior	738	652
Total	1,506	1,567
Agricultural Mortgage Loans | 50% - 70%
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	200	277
Fiscal year before current fiscal year	268	129
Two years before current fiscal year	102	161
Three years before current fiscal year	126	102
Four years before current fiscal year	87	124
Prior	338	351
Total	1,121	1,144
Agricultural Mortgage Loans | 70% - 90%
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	3
Three years before current fiscal year	0	0
Four years before current fiscal year	0	0
Prior	17	18
Total	17	21
Agricultural Mortgage Loans | 90% plus
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	0
Prior	0	0
Total	0	0
Mortgages Loan
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	2,537	2,110
Fiscal year before current fiscal year	2,050	1,078
Two years before current fiscal year	1,049	1,600
Three years before current fiscal year	1,508	1,463
Four years before current fiscal year	1,271	2,940
Prior	5,680	4,049
Total	14,095	13,240
Mortgages Loan | Greater than 2.0x
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	1,192	1,297
Fiscal year before current fiscal year	1,307	518
Two years before current fiscal year	235	808
Three years before current fiscal year	794	306
Four years before current fiscal year	509	2,030
Prior	2,445	1,397
Total	6,482	6,356
Mortgages Loan | 1.8x to 2.0x
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	237	265
Fiscal year before current fiscal year	172	118
Two years before current fiscal year	275	132
Three years before current fiscal year	60	393
Four years before current fiscal year	175	204
Prior	442	411
Total	1,361	1,523
Mortgages Loan | 1.5x to 1.8x
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	318	215
Fiscal year before current fiscal year	210	176
Two years before current fiscal year	312	228
Three years before current fiscal year	233	524
Four years before current fiscal year	207	489
Prior	1,112	825
Total	2,392	2,457
Mortgages Loan | 1.2x to 1.5x
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	425	243
Fiscal year before current fiscal year	274	177
Two years before current fiscal year	187	295
Three years before current fiscal year	217	169
Four years before current fiscal year	325	142
Prior	1,056	971
Total	2,484	1,997
Mortgages Loan | 1.0x to 1.2x
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	365	86
Fiscal year before current fiscal year	83	79
Two years before current fiscal year	31	93
Three years before current fiscal year	165	70
Four years before current fiscal year	54	57
Prior	513	356
Total	1,211	741
Mortgages Loan | Less than 1.0x
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	0	4
Fiscal year before current fiscal year	4	10
Two years before current fiscal year	9	44
Three years before current fiscal year	39	1
Four years before current fiscal year	1	18
Prior	112	89
Total	165	166
Mortgages Loan | 0% - 50%
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	180	218
Fiscal year before current fiscal year	212	135
Two years before current fiscal year	128	169
Three years before current fiscal year	313	481
Four years before current fiscal year	412	423
Prior	1,747	1,157
Total	2,992	2,583
Mortgages Loan | 50% - 70%
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	2,167	1,571
Fiscal year before current fiscal year	1,602	486
Two years before current fiscal year	509	964
Three years before current fiscal year	745	758
Four years before current fiscal year	578	2,314
Prior	2,871	2,048
Total	8,472	8,141
Mortgages Loan | 70% - 90%
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	190	321
Fiscal year before current fiscal year	236	457
Two years before current fiscal year	412	455
Three years before current fiscal year	415	219
Four years before current fiscal year	276	203
Prior	989	556
Total	2,518	2,211
Mortgages Loan | 90% plus
Financing Receivable, before Allowance for Credit Loss [Abstract]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	12
Three years before current fiscal year	35	5
Four years before current fiscal year	5	0
Prior	73	288
Total	$ 113	$ 305

XML

INVESTMENTS - Equity Securities (Details) $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($)
Investments, Debt and Equity Securities [Abstract]
Net investment gains (losses) recognized during the period on securities held at the end of the period	$ (19)
Net investment gains (losses) recognized on equity securities sold during the period	45
Unrealized and realized gains (losses) on equity securities	$ 26

XML

INVESTMENTS - Trading Securities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Net investment gains (losses) recognized during the period on securities held at the end of the period	$ (274)	$ 128	$ 487
Net investment gains (losses) recognized on securities sold during the period	248	42	15
Unrealized and realized gains (losses) on trading securities	(26)	170	502
Interest and dividend income from trading securities	99	217	294
Net investment income (loss) from trading securities	$ 73	$ 387	$ 796

XML

INVESTMENTS - Fixed Maturities (Details) $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($)
Investments, Debt and Equity Securities [Abstract]
Net investment gains (losses) recognized during the period on securities held at the end of the period	$ 12
Net investment gains (losses) recognized on securities sold during the period	4
Unrealized and realized gains (losses) from fixed maturities	16
Interest and dividend income from fixed maturities	19
Net investment income (loss) from fixed maturities	$ 35

XML

INVESTMENTS - Net Investment Income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Net Investment Income [Line Items]
Investment income	$ 3,923	$ 3,549	$ 3,772
Investment expenses	(77)	(72)	(73)
Net investment income (loss)	3,846	3,477	3,699
Fixed maturities
Net Investment Income [Line Items]
Investment income	2,440	2,341	2,060
Mortgage loans on real estate
Net Investment Income [Line Items]
Investment income	546	516	541
Other equity investments
Net Investment Income [Line Items]
Investment income	609	67	140
Policy loans
Net Investment Income [Line Items]
Investment income	203	204	211
Trading securities
Net Investment Income [Line Items]
Investment income	73	387	796
Other investment income
Net Investment Income [Line Items]
Investment income	17	33	24
Fixed maturities, at fair value using the fair value option
Net Investment Income [Line Items]
Investment income	$ 35	$ 1	$ 0

XML

INVESTMENTS - Investment Gains (Losses), Net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Net Investment Income [Line Items]
Investment gains (losses), net	$ 868	$ 744	$ 73
Fixed maturities
Net Investment Income [Line Items]
Investment gains (losses), net	847	828	205
Mortgage loans on real estate
Net Investment Income [Line Items]
Investment gains (losses), net	19	(45)	(1)
Other equity investments
Net Investment Income [Line Items]
Investment gains (losses), net	0	30	2
Other investment income
Net Investment Income [Line Items]
Investment gains (losses), net	$ 2	$ (69)	$ (133)

XML

DERIVATIVES - Derivatives by Category (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Designated for hedge accounting | Cash flow hedge
Derivatives, Fair Value [Line Items]
Notional Amount	$ 1,876	$ 957
Derivative Assets	7	0
Derivative Liabilities	437	219
Not designated for hedge accounting
Derivatives, Fair Value [Line Items]
Notional Amount	80,365	106,131
Derivative Assets	12,351	9,244
Derivative Liabilities	11,293	8,095
Currency Swaps | Designated for hedge accounting | Cash flow hedge
Derivatives, Fair Value [Line Items]
Notional Amount	921	0
Derivative Assets	7	0
Derivative Liabilities	42	0
Currency Swaps | Not designated for hedge accounting
Derivatives, Fair Value [Line Items]
Notional Amount	541	411
Derivative Assets	1	9
Derivative Liabilities	0	9
Swaps | Designated for hedge accounting | Cash flow hedge
Derivatives, Fair Value [Line Items]
Notional Amount	955	957
Derivative Assets	0	0
Derivative Liabilities	395	219
Swaps | Not designated for hedge accounting
Derivatives, Fair Value [Line Items]
Notional Amount	1,889	22,877
Derivative Assets	0	553
Derivative Liabilities	46	437
Futures | Not designated for hedge accounting
Derivatives, Fair Value [Line Items]
Notional Amount	2,640	4,881
Derivative Assets	0	0
Derivative Liabilities	1	2
Swaps | Not designated for hedge accounting
Derivatives, Fair Value [Line Items]
Notional Amount	13,378	22,456
Derivative Assets	6	6
Derivative Liabilities	4	2
Options | Not designated for hedge accounting
Derivatives, Fair Value [Line Items]
Notional Amount	48,489	35,848
Derivative Assets	12,024	8,396
Derivative Liabilities	5,065	3,726
Futures | Not designated for hedge accounting
Derivatives, Fair Value [Line Items]
Notional Amount	12,575	18,571
Derivative Assets	0	0
Derivative Liabilities	0	0
Swaptions | Not designated for hedge accounting
Derivatives, Fair Value [Line Items]
Notional Amount	0	0
Derivative Assets	0	0
Derivative Liabilities	0	0
Credit default swaps | Not designated for hedge accounting
Derivatives, Fair Value [Line Items]
Notional Amount	774	1,087
Derivative Assets	9	19
Derivative Liabilities	10	14
Currency forwards | Not designated for hedge accounting
Derivatives, Fair Value [Line Items]
Notional Amount	79	0
Derivative Assets	8	0
Derivative Liabilities	7	0
Margin | Not designated for hedge accounting
Derivatives, Fair Value [Line Items]
Notional Amount	0	0
Derivative Assets	125	49
Derivative Liabilities	0	66
Collateral | Not designated for hedge accounting
Derivatives, Fair Value [Line Items]
Notional Amount	0	0
Derivative Assets	178	212
Derivative Liabilities	6,160	3,839
Amounts due from reinsurers
Derivatives, Fair Value [Line Items]
Notional Amount	0	0
Derivative Assets	5,813	0
Derivative Liabilities	0	0
GMIB Reinsurance Contracts
Derivatives, Fair Value [Line Items]
Notional Amount	0	0
Derivative Assets	1,848	2,488
Derivative Liabilities	0	0
GMxB Derivative Features’ Liability
Derivatives, Fair Value [Line Items]
Notional Amount	0	0
Derivative Assets	0	0
Derivative Liabilities	8,525	11,131
SCS, SIO, MSO and IUL Indexed Features
Derivatives, Fair Value [Line Items]
Notional Amount	0	0
Derivative Assets	0	0
Derivative Liabilities	6,773	4,509
Embedded derivatives
Derivatives, Fair Value [Line Items]
Notional Amount	0	0
Derivative Assets	7,661	2,488
Derivative Liabilities	15,298	15,640
Derivative instruments including embedded derivative
Derivatives, Fair Value [Line Items]
Notional Amount	82,241	107,088
Derivative Assets	20,019	11,732
Derivative Liabilities	$ 27,028	$ 23,954

XML

DERIVATIVES - Financial Statement Impact of Derivatives By Category (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	$ (4,465)	$ (1,722)	$ (4,012)
Interest credited to policyholders’ account balances	(1,219)	(1,222)	(1,263)
Amounts due from reinsurers
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	517	0	0
Interest credited to policyholders’ account balances	0	0	0
AOCI	0	0	0
GMIB Reinsurance Contracts
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	(625)	417	433
Interest credited to policyholders’ account balances	0	0	0
AOCI	0	0	0
GMxB Derivative Features’ Liability
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	2,841	(2,253)	(2,442)
Interest credited to policyholders’ account balances	0	0	0
AOCI	0	0	0
Settlement fee	45
SCS, SIO, MSO and IUL Indexed Features
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	(3,835)	(1,738)	(2,642)
Interest credited to policyholders’ account balances	0	0	0
AOCI	0	0	0
Embedded derivatives
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	(1,102)	(3,574)	(4,651)
Interest credited to policyholders’ account balances	0	0	0
AOCI	0	0	0
Derivative instruments including embedded derivative
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	(4,510)	(1,722)	(4,012)
Interest credited to policyholders’ account balances	(45)	0	0
AOCI	(82)	(87)	(28)
Not designated for hedge accounting
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	(3,337)	1,861	635
Interest credited to policyholders’ account balances	0	0	0
AOCI	0	0	0
Not designated for hedge accounting | Currency Swaps
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	3	(4)	(9)
Interest credited to policyholders’ account balances	0	0	0
AOCI	0	0	0
Not designated for hedge accounting | Swaps
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	(2,317)	2,832	2,033
Interest credited to policyholders’ account balances	0	0	0
AOCI	0	0	0
Not designated for hedge accounting | Futures
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	(567)	(1,011)	(1,311)
Interest credited to policyholders’ account balances	0	0	0
AOCI	0	0	0
Not designated for hedge accounting | Swaps
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	(3,614)	(3,368)	(2,426)
Interest credited to policyholders’ account balances	0	0	0
AOCI	0	0	0
Not designated for hedge accounting | Options
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	3,886	1,663	2,229
Interest credited to policyholders’ account balances	0	0	0
AOCI	0	0	0
Not designated for hedge accounting | Futures
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	(728)	1,740	145
Interest credited to policyholders’ account balances	0	0	0
AOCI	0	0	0
Not designated for hedge accounting | Swaptions
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	0	9	(35)
Interest credited to policyholders’ account balances	0	0	0
AOCI	0	0	0
Not designated for hedge accounting | Credit default swaps
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	(2)	0	9
Interest credited to policyholders’ account balances	0	0	0
AOCI	0	0	0
Not designated for hedge accounting | Currency forwards
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	2	0	0
Interest credited to policyholders’ account balances	0	0	0
AOCI	0	0	0
Not designated for hedge accounting | Margin
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	0	0	0
Interest credited to policyholders’ account balances	0	0	0
AOCI	0	0	0
Not designated for hedge accounting | Collateral
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	0	0	0
Interest credited to policyholders’ account balances	0	0	0
AOCI	0	0	0
Cash flow hedge | Designated for hedge accounting
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	(71)	(9)	4
Interest credited to policyholders’ account balances	(45)	0	0
AOCI	(82)	(87)	(28)
Cash flow hedge | Designated for hedge accounting | Currency Swaps
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	(2)	0	0
Interest credited to policyholders’ account balances	(45)	0	0
AOCI	5	0	0
Cash flow hedge | Designated for hedge accounting | Swaps
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	(69)	(9)	4
Interest credited to policyholders’ account balances	0	0	0
AOCI	$ (87)	$ (87)	$ (28)

XML

DERIVATIVES - Rollforward for Cash Flows Hedges in AOCI (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance, beginning of period	$ 15,576
Ending Balance, December 31	11,519	$ 15,576
Cash flow hedges recognized in AOCI
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance, beginning of period	(126)	(38)	$ (10)
Amount recorded in AOCI	(218)	(108)	(45)
Amount reclassified from AOCI to income	136	20	17
Ending Balance, December 31	(208)	(126)	(38)
Cash flow hedges recognized in AOCI | Currency Swaps
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Amount recorded in AOCI	(35)	0	0
Amount reclassified from AOCI to income	40	0	0
Cash flow hedges recognized in AOCI | Interest Swaps
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Amount recorded in AOCI	(183)	(108)	(45)
Amount reclassified from AOCI to income	$ 96	$ 20	$ 17

XML

DERIVATIVES - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Derivative [Line Items]
Cash and securities collateral for derivative contract	$ 6,200	$ 3,800
Cash and securities collateral	178	212
S&P 500, Russell 1000, NASDAQ 100 and Emerging Market Indices
Derivative [Line Items]
Initial margin requirement	109	307
Us Treasury Notes Ultra Long Bonds And Euro Dollar
Derivative [Line Items]
Initial margin requirement	200	264
Euro Stoxx, FTSE100, Topix, ASX200 and EAFE Indices
Derivative [Line Items]
Initial margin requirement	$ 16	$ 35

XML

DERIVATIVES - Offsetting of Financial Assets and Liabilities and Derivative Instruments (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Derivatives
Assets
Gross Amount Recognized	$ 12,358	$ 9,244
Gross Amount Offset in the Balance Sheets	10,756	8,249
Net Amount Presented in the Balance Sheets	1,602	995
Gross Amount not Offset in the Balance Sheets	(961)	(53)
Net Amount	641	942
Liabilities
Gross Amount Recognized	10,770	8,261
Gross Amount Offset in the Balance Sheets	10,756	8,249
Net Amount Presented in the Balance Sheets	14	12
Gross Amount not Offset in the Balance Sheets	0	0
Net Amount	14	12
Other financial assets
Assets
Gross Amount Recognized	1,989	1,733
Gross Amount Offset in the Balance Sheets	0	0
Net Amount Presented in the Balance Sheets	1,989	1,733
Gross Amount not Offset in the Balance Sheets	0	0
Net Amount	1,989	1,733
Other invested assets
Assets
Gross Amount Recognized	14,347	10,977
Gross Amount Offset in the Balance Sheets	10,756	8,249
Net Amount Presented in the Balance Sheets	3,591	2,728
Gross Amount not Offset in the Balance Sheets	(961)	(53)
Net Amount	2,630	2,675
Other financial liabilities
Liabilities
Gross Amount Recognized	3,919	3,674
Gross Amount Offset in the Balance Sheets	0	0
Net Amount Presented in the Balance Sheets	3,919	3,674
Gross Amount not Offset in the Balance Sheets	0	0
Net Amount	3,919	3,674
Other liabilities
Liabilities
Gross Amount Recognized	14,689	11,935
Gross Amount Offset in the Balance Sheets	10,756	8,249
Net Amount Presented in the Balance Sheets	3,933	3,686
Gross Amount not Offset in the Balance Sheets	0	0
Net Amount	$ 3,933	$ 3,686

XML

GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Jun. 20, 2014
Goodwill [Line Items]
Impairment loss	$ 0	$ 0
Alliance Bernstein
Goodwill [Line Items]
Amortization of intangible assets	21,000,000	37,000,000	$ 44,000,000
Gross carrying amount of AllianceBernstein related intangible assets	932,000,000	926,000,000
Accumulated amortization of these intangible assets	809,000,000	786,000,000
Amortization expense, year one	20,000,000
Amortization expense, year two	18,000,000
Amortization expense, year three	18,000,000
Amortization expense, year four	17,000,000
Amortization expense, year five	$ 15,000,000
Alliance Bernstein | CPH Capital
Goodwill [Line Items]
Ownership percentage acquired	100.00%		100.00%	81.70%
Investment Management | Alliance Bernstein
Goodwill [Line Items]
Amortization of intangible assets	$ 4,600,000,000	$ 4,600,000,000

XML

CLOSED BLOCK - Closed Block Summarized Financial Information (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Closed Block Liabilities:
Future policy benefits, policyholders’ account balances and other	$ 5,928	$ 6,201
Policyholder dividend obligation	0	160	$ 2	$ 0
Other liabilities	39	39
Total Closed Block liabilities	5,967	6,400
Assets Designated to the Closed Block:
Fixed maturities AFS, at fair value (amortized cost of $3,185 and $3,359) (allowance for credit losses of $0 and $0)	3,390	3,718
Mortgage loans on real estate (net of allowance for credit losses of $4 and $6)	1,771	1,773
Policy loans	602	648
Cash and other invested assets	63	28
Other assets	90	169
Total assets designated to the Closed Block	5,916	6,336
Excess of Closed Block liabilities over assets designated to the Closed Block	51	64
Amounts included in AOCI:
Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $0 and $160; and net of income tax: $(43) and $(42)	172	167
Maximum future earnings to be recognized from Closed Block assets and liabilities	223	231
Fixed maturity available for sale, amortized cost	3,185	3,359
Fixed maturities available-for-sale, allowance for credit losses	0	0
Mortgage loans, credit losses	4	6
Policyholder dividend obligation	0	160	$ 2	$ 0
Closed block operations, income taxes	$ (43)	$ (42)

XML

CLOSED BLOCK - Closed Block Revenues and Expenses (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenues:
Premiums and other income	$ 144	$ 157	$ 182
Net investment income (loss)	237	251	278
Investment gains (losses), net	4	0	(1)
Total revenues	385	408	459
Benefits and Other Deductions:
Policyholders’ benefits and dividends	372	399	439
Other operating costs and expenses	3	1	2
Total benefits and other deductions	375	400	441
Net income (loss), before income taxes	10	8	18
Income tax (expense) benefit	(2)	(2)	(2)
Net income (loss)	$ 8	$ 6	$ 16

XML

CLOSED BLOCK - Reconciliation of Policyholder Dividend Obligation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Movement in Closed Block Dividend Obligation [Roll Forward]
Beginning balance	$ 160	$ 2	$ 0
Unrealized investment gains (losses)	(160)	158	2
Ending balance	$ 0	$ 160	$ 2

XML

DAC AND POLICYHOLDER BONUS INTEREST CREDITS - Changes in Deferred Acquisition Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Balance, beginning of year	$ 4,243	$ 5,837	$ 6,705
Balance, beginning of year	4,243	5,840
Capitalization of commissions, sales and issue expenses	875	669	754
Amortization:
Impact of assumptions updates and model changes	58	(1,109)	46
All other	(451)	(504)	(643)
Total amortization	(393)	(1,613)	(597)
Change in unrealized investment gains and losses	766	(654)	(994)
Reclassified to assets HFS	0	1	(31)
Balance, end of year	5,491	4,243	5,837
Balance, end of year		4,243	5,840
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred policy acquisition costs	$ 5,491	4,243	5,837
Accounting Standards Update 2016-13
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Balance, beginning of year		$ 3
Amortization:
Balance, end of year			3
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred policy acquisition costs			$ 3

XML

DAC AND POLICYHOLDER BONUS INTEREST CREDITS - Changes in Deferred Asset for Policyholder Bonus Interest Credits (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Changes in the deferred asset for contractholder bonus interest credits
Balance, beginning of year	$ 404	$ 430	$ 448
Amortization charged to income	(31)	(26)	(18)
Balance, end of year	$ 373	$ 404	$ 430

XML

FAIR VALUE DISCLOSURES - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Millions		Dec. 31, 2021	Dec. 31, 2020
Investments:
Fixed maturities, AFS at fair value		$ 78,216	$ 81,638
Fixed maturities, at fair value using the fair value option	[1]	1,641	389
Amounts due from reinsurer		5,813	0
Liabilities:
Notes issued by consolidated variable interest entities, at fair value using the fair value option	[1]	1,191	313
Short-term debt		92	0
Accrued interest payable for notes issued by consolidated variable interest entity		6	1
Carrying Value | Other liabilities
Investments:
Other equity investments		33
Carrying Value | CLO Warehouse Debt
Liabilities:
Short-term debt		92
U.S. government, agencies and authorities
Investments:
Fixed maturities, AFS at fair value		15,385	16,118
State and Political Subdivisions
Investments:
Fixed maturities, AFS at fair value		662	635
Foreign governments
Investments:
Fixed maturities, AFS at fair value		1,152	1,103
Residential mortgage-backed
Investments:
Fixed maturities, AFS at fair value		98	143
Asset-backed
Investments:
Fixed maturities, AFS at fair value		5,934	3,611
Commercial mortgage-backed
Investments:
Fixed maturities, AFS at fair value		2,421	1,203
Redeemable Preferred Stock
Investments:
Fixed maturities, AFS at fair value		53	666
Recurring
Investments:
Fixed maturities, AFS at fair value		78,216	81,638
Fixed maturities, at fair value using the fair value option		1,641	389
Other equity investments		784	84
Trading securities, at fair value		631	5,553
Other invested assets:		7,141	4,994
Cash equivalents		3,568	4,606
Segregated securities		1,504	1,753
Amounts due from reinsurer		5,813
GMIB reinsurance contracts asset		1,848	2,488
Separate Accounts assets		146,697	135,373
Total Assets		247,843	236,878
Liabilities:
Notes issued by consolidated variable interest entities, at fair value using the fair value option		1,277
Contingent payment arrangements		38	28
Total Liabilities		16,631	15,988
Recurring | Corporate
Investments:
Fixed maturities, AFS at fair value		52,511	58,159
Recurring | U.S. government, agencies and authorities
Investments:
Fixed maturities, AFS at fair value		15,385	16,118
Recurring | State and Political Subdivisions
Investments:
Fixed maturities, AFS at fair value		662	635
Recurring | Foreign governments
Investments:
Fixed maturities, AFS at fair value		1,152	1,103
Recurring | Residential mortgage-backed
Investments:
Fixed maturities, AFS at fair value		98	143
Recurring | Asset-backed
Investments:
Fixed maturities, AFS at fair value		5,934	3,611
Recurring | Commercial mortgage-backed
Investments:
Fixed maturities, AFS at fair value		2,421	1,203
Recurring | Redeemable Preferred Stock
Investments:
Fixed maturities, AFS at fair value		53	666
Recurring | Short-term investments
Investments:
Other invested assets:		30	102
Recurring | Assets of consolidated VIEs/VOEs
Investments:
Other invested assets:		627	318
Recurring | Swaps
Investments:
Other invested assets:		(473)	(99)
Recurring | Credit default swaps
Investments:
Other invested assets:		(1)	5
Recurring | Futures
Investments:
Other invested assets:		(1)	(2)
Recurring | Options
Investments:
Other invested assets:		6,959	4,670
Recurring | Swaptions
Investments:
Other invested assets:			0
Recurring | GMxB derivative features’ liability
Liabilities:
Notes issued by consolidated variable interest entities, at fair value using the fair value option			312
Guarantees		8,525	11,131
Recurring | SCS, SIO, MSO and IUL indexed features’ liability
Liabilities:
Guarantees		6,773	4,509
Recurring | Level 1
Investments:
Fixed maturities, AFS at fair value		0	404
Fixed maturities, at fair value using the fair value option		0	0
Other equity investments		322	13
Trading securities, at fair value		340	441
Other invested assets:		165	72
Cash equivalents		3,275	4,309
Segregated securities		0	0
Amounts due from reinsurer		0
GMIB reinsurance contracts asset		0	0
Separate Accounts assets		144,124	132,698
Total Assets		148,226	137,937
Liabilities:
Notes issued by consolidated variable interest entities, at fair value using the fair value option		0
Contingent payment arrangements		0	0
Total Liabilities		16	2
Recurring | Level 1 | Corporate
Investments:
Fixed maturities, AFS at fair value		0	0
Recurring | Level 1 | U.S. government, agencies and authorities
Investments:
Fixed maturities, AFS at fair value		0	0
Recurring | Level 1 | State and Political Subdivisions
Investments:
Fixed maturities, AFS at fair value		0	0
Recurring | Level 1 | Foreign governments
Investments:
Fixed maturities, AFS at fair value		0	0
Recurring | Level 1 | Residential mortgage-backed
Investments:
Fixed maturities, AFS at fair value		0	0
Recurring | Level 1 | Asset-backed
Investments:
Fixed maturities, AFS at fair value		0	0
Recurring | Level 1 | Commercial mortgage-backed
Investments:
Fixed maturities, AFS at fair value		0	0
Recurring | Level 1 | Redeemable Preferred Stock
Investments:
Fixed maturities, AFS at fair value		0	404
Recurring | Level 1 | Short-term investments
Investments:
Other invested assets:		0	0
Recurring | Level 1 | Assets of consolidated VIEs/VOEs
Investments:
Other invested assets:		166	74
Recurring | Level 1 | Swaps
Investments:
Other invested assets:		0	0
Recurring | Level 1 | Credit default swaps
Investments:
Other invested assets:		0	0
Recurring | Level 1 | Futures
Investments:
Other invested assets:		(1)	(2)
Recurring | Level 1 | Options
Investments:
Other invested assets:		0	0
Recurring | Level 1 | Swaptions
Investments:
Other invested assets:			0
Recurring | Level 1 | GMxB derivative features’ liability
Liabilities:
Notes issued by consolidated variable interest entities, at fair value using the fair value option			0
Guarantees		0	0
Recurring | Level 1 | SCS, SIO, MSO and IUL indexed features’ liability
Liabilities:
Guarantees		0	0
Recurring | Level 2
Investments:
Fixed maturities, AFS at fair value		76,649	79,473
Fixed maturities, at fair value using the fair value option		1,440	309
Other equity investments		457	0
Trading securities, at fair value		226	5,073
Other invested assets:		6,965	4,908
Cash equivalents		293	297
Segregated securities		1,504	1,753
Amounts due from reinsurer		0
GMIB reinsurance contracts asset		0	0
Separate Accounts assets		2,572	2,674
Total Assets		90,106	94,487
Liabilities:
Notes issued by consolidated variable interest entities, at fair value using the fair value option		1,277
Contingent payment arrangements		0	0
Total Liabilities		8,052	4,827
Recurring | Level 2 | Corporate
Investments:
Fixed maturities, AFS at fair value		51,007	56,457
Recurring | Level 2 | U.S. government, agencies and authorities
Investments:
Fixed maturities, AFS at fair value		15,385	16,118
Recurring | Level 2 | State and Political Subdivisions
Investments:
Fixed maturities, AFS at fair value		627	596
Recurring | Level 2 | Foreign governments
Investments:
Fixed maturities, AFS at fair value		1,152	1,103
Recurring | Level 2 | Residential mortgage-backed
Investments:
Fixed maturities, AFS at fair value		98	143
Recurring | Level 2 | Asset-backed
Investments:
Fixed maturities, AFS at fair value		5,926	3,591
Recurring | Level 2 | Commercial mortgage-backed
Investments:
Fixed maturities, AFS at fair value		2,401	1,203
Recurring | Level 2 | Redeemable Preferred Stock
Investments:
Fixed maturities, AFS at fair value		53	262
Recurring | Level 2 | Short-term investments
Investments:
Other invested assets:		30	101
Recurring | Level 2 | Assets of consolidated VIEs/VOEs
Investments:
Other invested assets:		450	231
Recurring | Level 2 | Swaps
Investments:
Other invested assets:		(473)	(99)
Recurring | Level 2 | Credit default swaps
Investments:
Other invested assets:		(1)	5
Recurring | Level 2 | Futures
Investments:
Other invested assets:		0	0
Recurring | Level 2 | Options
Investments:
Other invested assets:		6,959	4,670
Recurring | Level 2 | Swaptions
Investments:
Other invested assets:			0
Recurring | Level 2 | GMxB derivative features’ liability
Liabilities:
Notes issued by consolidated variable interest entities, at fair value using the fair value option			312
Guarantees		0	0
Recurring | Level 2 | SCS, SIO, MSO and IUL indexed features’ liability
Liabilities:
Guarantees		6,773	4,509
Recurring | Level 3
Investments:
Fixed maturities, AFS at fair value		1,567	1,761
Fixed maturities, at fair value using the fair value option		201	80
Other equity investments		5	71
Trading securities, at fair value		65	39
Other invested assets:		11	14
Cash equivalents		0	0
Segregated securities		0	0
Amounts due from reinsurer		5,813
GMIB reinsurance contracts asset		1,848	2,488
Separate Accounts assets		1	1
Total Assets		9,511	4,454
Liabilities:
Notes issued by consolidated variable interest entities, at fair value using the fair value option		0
Contingent payment arrangements		38	28
Total Liabilities		8,563	11,159
Recurring | Level 3 | Corporate
Investments:
Fixed maturities, AFS at fair value		1,504	1,702
Recurring | Level 3 | U.S. government, agencies and authorities
Investments:
Fixed maturities, AFS at fair value		0	0
Recurring | Level 3 | State and Political Subdivisions
Investments:
Fixed maturities, AFS at fair value		35	39
Recurring | Level 3 | Foreign governments
Investments:
Fixed maturities, AFS at fair value		0	0
Recurring | Level 3 | Residential mortgage-backed
Investments:
Fixed maturities, AFS at fair value		0	0
Recurring | Level 3 | Asset-backed
Investments:
Fixed maturities, AFS at fair value		8	20
Recurring | Level 3 | Commercial mortgage-backed
Investments:
Fixed maturities, AFS at fair value		20	0
Recurring | Level 3 | Redeemable Preferred Stock
Investments:
Fixed maturities, AFS at fair value		0	0
Recurring | Level 3 | Short-term investments
Investments:
Other invested assets:		0	1
Recurring | Level 3 | Assets of consolidated VIEs/VOEs
Investments:
Other invested assets:		11	13
Recurring | Level 3 | Swaps
Investments:
Other invested assets:		0	0
Recurring | Level 3 | Credit default swaps
Investments:
Other invested assets:		0	0
Recurring | Level 3 | Futures
Investments:
Other invested assets:		0	0
Recurring | Level 3 | Options
Investments:
Other invested assets:		0	0
Recurring | Level 3 | Swaptions
Investments:
Other invested assets:			0
Recurring | Level 3 | GMxB derivative features’ liability
Liabilities:
Notes issued by consolidated variable interest entities, at fair value using the fair value option			0
Guarantees		8,525	11,131
Recurring | Level 3 | SCS, SIO, MSO and IUL indexed features’ liability
Liabilities:
Guarantees		0	0
Recurring | NAV
Investments:
Separate Accounts assets		404	356
Variable Interest Entity, Primary Beneficiary | Recurring
Liabilities:
Guarantees		18	8
Variable Interest Entity, Primary Beneficiary | Recurring | Level 1
Liabilities:
Guarantees		16	2
Variable Interest Entity, Primary Beneficiary | Recurring | Level 2
Liabilities:
Guarantees		2	6
Variable Interest Entity, Primary Beneficiary | Recurring | Level 3
Liabilities:
Guarantees		$ 0	$ 0

[1] See Note 2 of the Notes to these Consolidated Financial Statements for details of balances with VIEs.

XML

FAIR VALUE DISCLOSURES - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Fair Value Inputs Assets Quantitative Information 1 [Line Items]
Fair value adjustments on GMIB asset	$ 107	$ 102
Fair value adjustments on GMIB liability	15	19
Fair value adjustments on amounts due from reinsurers	210
AFS fixed maturities transferred from Level 3 to Level 2	785	103
AFS fixed maturities transferred from Level 2 to Level 3	$ 27	$ 189
Fair value measurement with unobservable inputs reconciliation recurring basis asset transfers percentage	6.20%	1.70%
Nonrecurring | Level 3
Fair Value Inputs Assets Quantitative Information 1 [Line Items]
Investments, fair value disclosure	$ 635	$ 743

XML

FAIR VALUE DISCLOSURES - Fair Value Measurement Reconciliation for All Levels (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Total gains (losses), realized and unrealized, included in:
Transfers into level 3		$ 27	$ 189
Transfers out of level 3		(785)	(103)
GMxB derivative features’ liability
Total gains (losses), realized and unrealized, included in:
Settlement fee		45
Corporate | Level 3
Total gains (losses), realized and unrealized, included in:
Beginning Balance		1,702	1,257	$ 1,186
Net investment income (loss)		5	4	4
Investment gains (losses), net		(16)	(16)	0
Total realized and unrealized gains (losses)		(11)	(12)	4
Other comprehensive income (loss)		34	(17)	5
Purchases		938	514	274
Sales		(473)	(226)	(122)
Activity related to consolidated VIEs/VOEs		0	0
Transfers into level 3		27	189	14
Transfers out of level 3		(713)	(3)	(104)
Ending Balance	$ 1,504	1,504	1,702	1,257
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period		0	0	0
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period		28	(18)	4
State and Political Subdivisions | Level 3
Total gains (losses), realized and unrealized, included in:
Beginning Balance		39	39	39
Net investment income (loss)		0	0	0
Investment gains (losses), net		0	0	1
Total realized and unrealized gains (losses)		0	0	1
Other comprehensive income (loss)		(2)	2	2
Purchases		0	0	0
Sales		(2)	(2)	(3)
Activity related to consolidated VIEs/VOEs		0
Transfers into level 3		0	0	0
Transfers out of level 3		0	0	0
Ending Balance	35	35	39	39
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period		0	0	0
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period		(2)	2	3
Asset-backed | Level 3
Total gains (losses), realized and unrealized, included in:
Beginning Balance		20	100	519
Net investment income (loss)		0	0	0
Investment gains (losses), net		0	0	0
Total realized and unrealized gains (losses)		0	0	0
Other comprehensive income (loss)		0	0	1
Purchases		6	20	100
Sales		(18)	0	(84)
Activity related to consolidated VIEs/VOEs		0
Transfers into level 3		0	0	0
Transfers out of level 3		0	(100)	(436)
Ending Balance	8	8	20	100
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period		0	0	0
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period		0	0	0
CMBS | Level 3
Total gains (losses), realized and unrealized, included in:
Beginning Balance		0	0	0
Net investment income (loss)		0	0	0
Investment gains (losses), net		0	0	0
Total realized and unrealized gains (losses)		0	0	0
Other comprehensive income (loss)		0	0	0
Purchases		20	0	0
Sales		0	0	0
Activity related to consolidated VIEs/VOEs		0
Transfers into level 3		0	0	0
Transfers out of level 3		0	0	0
Ending Balance	20	20	0	0
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period		0	0	0
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period		0	0	0
Trading Securities, at Fair Value | Level 3
Total gains (losses), realized and unrealized, included in:
Beginning Balance		39	36	64
Net investment income (loss)		0	0	0
Investment gains (losses), net		26	3	6
Total realized and unrealized gains (losses)		26	3	6
Other comprehensive income (loss)		0	0	0
Purchases		0	0	0
Sales		0	0	(5)
Activity related to consolidated VIEs/VOEs		0	0
Transfers into level 3		0	0	0
Transfers out of level 3		0	0	(29)
Ending Balance	65	65	39	36
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period		26	3	6
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period		0	0	0
Fixed maturities, at FVO | Level 3
Total gains (losses), realized and unrealized, included in:
Beginning Balance		80	0	0
Net investment income (loss)		5	0	0
Investment gains (losses), net		0	0	0
Total realized and unrealized gains (losses)		5	0	0
Other comprehensive income (loss)			0	0
Purchases		211	81	0
Sales		(23)	(1)	0
Activity related to consolidated VIEs/VOEs
Transfers into level 3		0	0	0
Transfers out of level 3		(72)	0	0
Ending Balance	201	201	80	0
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period		5	0	0
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period		0	0	0
Other equity investments | Level 3
Total gains (losses), realized and unrealized, included in:
Beginning Balance		84	113	93
Net investment income (loss)		21	(8)	23
Investment gains (losses), net		0	0	0
Non-performance risk				0
Total realized and unrealized gains (losses)		21	(8)	23
Other comprehensive income (loss)		0	0	0
Purchases		8	9	5
Sales		(92)	(26)	(5)
Settlements		0	0	0
Other		0
Change in estimate			0	0
Activity related to consolidated VIEs/VOEs		(4)	(4)	(3)
Transfers into level 3		0	0	0
Transfers out of level 3		(1)	0	0
Ending Balance	16	16	84	113
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period		2	(8)	23
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period		0	0	0
GMIB Reinsurance Contract Asset
Total gains (losses), realized and unrealized, included in:
Non-performance risk		(23)	7
GMIB Reinsurance Contract Asset | Level 3
Total gains (losses), realized and unrealized, included in:
Beginning Balance		2,488	2,139	1,733
Net investment income (loss)		0	0	0
Investment gains (losses), net		(625)	417	433
Non-performance risk				0
Total realized and unrealized gains (losses)		(625)	417	433
Other comprehensive income (loss)		0	0	0
Purchases		43	43	45
Sales		(58)	(79)	(72)
Settlements		0	0	0
Other		0
Change in estimate			(32)	0
Activity related to consolidated VIEs/VOEs		0	0	0
Transfers into level 3		0	0	0
Transfers out of level 3		0	0	0
Ending Balance	1,848	1,848	2,488	2,139
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period		(625)	417	433
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period		0	0	0
Amounts Due from Reinsurers
Total gains (losses), realized and unrealized, included in:
Non-performance risk	(19)	0
Amounts Due from Reinsurers | Level 3
Total gains (losses), realized and unrealized, included in:
Beginning Balance		0	0	0
Net investment income (loss)		0	0	0
Investment gains (losses), net		517	0	0
Non-performance risk				0
Total realized and unrealized gains (losses)		517	0	0
Other comprehensive income (loss)		0	0	0
Purchases		74	0	0
Sales		(35)	0	0
Settlements		0	0	0
Other		5,259
Change in estimate			0	0
Activity related to consolidated VIEs/VOEs		0	0	0
Transfers into level 3			0	0
Transfers out of level 3		0	0	0
Ending Balance	5,815	5,815	0	0
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period		517	74	0
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period		0	0	0
Separate Accounts Assets | Level 3
Total gains (losses), realized and unrealized, included in:
Beginning Balance		1	0	21
Net investment income (loss)		0	0	0
Investment gains (losses), net		0	0	0
Non-performance risk				0
Total realized and unrealized gains (losses)		0	0	0
Other comprehensive income (loss)		0	0	0
Purchases		1	1	0
Sales		0	0	(1)
Settlements		0	0	(2)
Other		0
Change in estimate			0	0
Activity related to consolidated VIEs/VOEs		0	0	0
Transfers into level 3		0	0	0
Transfers out of level 3		(1)	0	(18)
Ending Balance	1	1	1	0
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period		0	1	0
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period		0	0	0
GMxB Derivative Features Liability
Total gains (losses), realized and unrealized, included in:
Non-performance risk		213	(764)
GMxB Derivative Features Liability | Level 3
Total gains (losses), realized and unrealized, included in:
Beginning Balance		(11,131)	(8,502)	(5,674)
Net investment income (loss)		0	0	0
Investment gains (losses), net		2,841	(2,253)	(2,442)
Non-performance risk				0
Total realized and unrealized gains (losses)		2,841	(2,253)	(2,442)
Other comprehensive income (loss)		0	0	0
Purchases		(463)	(451)	(427)
Sales		88	75	41
Settlements		0	0	0
Other		0
Change in estimate			0	0
Activity related to consolidated VIEs/VOEs		0	0	0
Transfers into level 3		0	0	0
Transfers out of level 3		140	0	0
Ending Balance	(8,525)	(8,525)	(11,131)	(8,502)
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period		2,841	(2,253)	(2,442)
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period		0	0	0
Contingent Payment Arrangement | Level 3
Total gains (losses), realized and unrealized, included in:
Beginning Balance		(28)	(23)	(7)
Net investment income (loss)		0	0	0
Investment gains (losses), net		0	0	0
Non-performance risk				0
Total realized and unrealized gains (losses)		0	0	0
Other comprehensive income (loss)		0	0	0
Purchases		(7)	(4)	(17)
Sales		0	0	0
Settlements		0	1	1
Other		0
Change in estimate			1	3
Activity related to consolidated VIEs/VOEs		(3)	(3)	(3)
Transfers into level 3		0	0	0
Transfers out of level 3		0	0	0
Ending Balance	$ (38)	(38)	(28)	(23)
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period		0	(7)	0
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period		$ 0	$ 0	$ 0

XML

FAIR VALUE DISCLOSURES - Quantitative Information about Level 3 (Details) - Level 3 $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Discounted cash flow | Alliance Bernstein
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value		$ 38	$ 28
Discount rate | Discounted cash flow | Minimum | Alliance Bernstein
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.019	0.019
Discount rate | Discounted cash flow | Maximum | Alliance Bernstein
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.104	0.104
Discount rate | Discounted cash flow | Weighted Average | Alliance Bernstein
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.070	0.080
Expected revenue growth rate | Discounted cash flow | Minimum | Alliance Bernstein
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.020	0.007
Expected revenue growth rate | Discounted cash flow | Maximum | Alliance Bernstein
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.839	0.500
Expected revenue growth rate | Discounted cash flow | Weighted Average | Alliance Bernstein
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.119	0.049
Corporate | Matrix pricing model
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value		$ 258	$ 34
Corporate | Market comparable companies
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value		$ 888	$ 1,148
Corporate | Spread over benchmark | Matrix pricing model | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0020	0.0045
Corporate | Spread over benchmark | Matrix pricing model | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0270	0.0195
Corporate | Spread over benchmark | Matrix pricing model | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0144	0.0160
Corporate | EBITDA Multiple | Market comparable companies | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		4.9	3.5
Corporate | EBITDA Multiple | Market comparable companies | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		62.3	33.1
Corporate | EBITDA Multiple | Market comparable companies | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		13.0	10.8
Corporate | Discount rate | Market comparable companies | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.062	0.0560
Corporate | Discount rate | Market comparable companies | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.215	0.2840
Corporate | Discount rate | Market comparable companies | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.091	0.0860
Corporate | Cash flow multiples | Market comparable companies | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.5	1.9
Corporate | Cash flow multiples | Market comparable companies | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		10.0	25.0
Corporate | Cash flow multiples | Market comparable companies | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		5.5	6.8
Corporate | Loan to value | Market comparable companies | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.00031
Corporate | Loan to value | Market comparable companies | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.00634
Corporate | Loan to value | Market comparable companies | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.00308
Trading Securities, at Fair Value | Discounted cash flow
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value		$ 65	$ 39
Measurement input	11 years	11 years
Trading Securities, at Fair Value | Revenue/earnings multiple | Discounted cash flow
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		7.3	8.2
Trading Securities, at Fair Value | Discount factor | Discounted cash flow
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.1000	0.1000
Other equity investments | Market comparable companies
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value		$ 4	$ 2
Other equity investments | Revenue/earnings multiple | Market comparable companies | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		7.8	9.7
Other equity investments | Revenue/earnings multiple | Market comparable companies | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		10.3	26.4
Other equity investments | Revenue/earnings multiple | Market comparable companies | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		9.5	18.5
GMIB reinsurance contracts | Discounted cash flow
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value		$ 1,848
Fair value			$ 2,488
GMIB reinsurance contracts | Lapse rate | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0045	0.006
GMIB reinsurance contracts | Lapse rate | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.2086	0.16
GMIB reinsurance contracts | Lapse rate | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0265	0.0169
GMIB reinsurance contracts | Withdrawal rate | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0027	0
GMIB reinsurance contracts | Withdrawal rate | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0866	0.02
GMIB reinsurance contracts | Withdrawal rate | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0093	0.0091
GMIB reinsurance contracts | Utilization rate | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0004	0
GMIB reinsurance contracts | Utilization rate | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.6044	0.61
GMIB reinsurance contracts | Utilization rate | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0527	0.0582
GMIB reinsurance contracts | Non-performance risk | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0057	0.0043
GMIB reinsurance contracts | Non-performance risk | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0093	0.0085
GMIB reinsurance contracts | Non-performance risk | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0060	0.0050
GMIB reinsurance contracts | Volatility rate - Equity | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.11	0.07
GMIB reinsurance contracts | Volatility rate - Equity | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.31	0.32
GMIB reinsurance contracts | Volatility rate - Equity | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.24	0.24
GMIB reinsurance contracts | Mortality rate | Discounted cash flow | Ages 0 - 40 | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0001	0.0001
GMIB reinsurance contracts | Mortality rate | Discounted cash flow | Ages 0 - 40 | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0017	0.0018
GMIB reinsurance contracts | Mortality rate | Discounted cash flow | Ages 0 - 40 | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0279	0.0280
GMIB reinsurance contracts | Mortality rate | Discounted cash flow | Ages 41 - 60 | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0006	0.0007
GMIB reinsurance contracts | Mortality rate | Discounted cash flow | Ages 41 - 60 | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0053	0.0054
GMIB reinsurance contracts | Mortality rate | Discounted cash flow | Ages 41 - 60 | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0279	0.0280
GMIB reinsurance contracts | Mortality rate | Discounted cash flow | Ages 61 - 115 | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0031	0.000042
GMIB reinsurance contracts | Mortality rate | Discounted cash flow | Ages 61 - 115 | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.4000	0.004220
GMIB reinsurance contracts | Mortality rate | Discounted cash flow | Ages 61 - 115 | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0279	0.0280
Amounts due from reinsurers | Discounted cash flow
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value		$ 5,813
Amounts due from reinsurers | Lapse rate | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0045
Amounts due from reinsurers | Lapse rate | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.2086
Amounts due from reinsurers | Lapse rate | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0170
Amounts due from reinsurers | Withdrawal rate | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0027
Amounts due from reinsurers | Withdrawal rate | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0866
Amounts due from reinsurers | Withdrawal rate | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0118
Amounts due from reinsurers | Utilization rate | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0004
Amounts due from reinsurers | Utilization rate | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.6044
Amounts due from reinsurers | Utilization rate | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0720
Amounts due from reinsurers | Non-performance risk | Discounted cash flow
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0037
Amounts due from reinsurers | Non-performance risk | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0037
Amounts due from reinsurers | Volatility rate - Equity | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.11
Amounts due from reinsurers | Volatility rate - Equity | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.31
Amounts due from reinsurers | Volatility rate - Equity | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.24
Amounts due from reinsurers | Mortality rate | Discounted cash flow | Ages 0 - 40 | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0001
Amounts due from reinsurers | Mortality rate | Discounted cash flow | Ages 0 - 40 | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0017
Amounts due from reinsurers | Mortality rate | Discounted cash flow | Ages 0 - 40 | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0217
Amounts due from reinsurers | Mortality rate | Discounted cash flow | Ages 41 - 60 | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0006
Amounts due from reinsurers | Mortality rate | Discounted cash flow | Ages 41 - 60 | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0053
Amounts due from reinsurers | Mortality rate | Discounted cash flow | Ages 41 - 60 | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0217
Amounts due from reinsurers | Mortality rate | Discounted cash flow | Ages 61 - 115 | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0031
Amounts due from reinsurers | Mortality rate | Discounted cash flow | Ages 61 - 115 | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.4000
Amounts due from reinsurers | Mortality rate | Discounted cash flow | Ages 61 - 115 | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0217
GMIBNLG | Discounted cash flow
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value		$ 8,503	$ 10,713
GMIBNLG | Lapse rate | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0104	0.00011
GMIBNLG | Lapse rate | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.2357	0.257
GMIBNLG | Lapse rate | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0355	0.0319
GMIBNLG | Withdrawal rate | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0027	0.00004
GMIBNLG | Withdrawal rate | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0866	0.02
GMIBNLG | Withdrawal rate | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0104	0.0093
GMIBNLG | Non-performance risk | Discounted cash flow
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0111	0.00960
GMIBNLG | Non-performance risk | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0111
GMIBNLG | Mortality rate | Discounted cash flow | Ages 0 - 40 | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0001	0.00000001
GMIBNLG | Mortality rate | Discounted cash flow | Ages 0 - 40 | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0019	0.0019
GMIBNLG | Mortality rate | Discounted cash flow | Ages 0 - 40 | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0162	0.0156
GMIBNLG | Mortality rate | Discounted cash flow | Ages 41 - 60 | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0007	0.0006
GMIBNLG | Mortality rate | Discounted cash flow | Ages 41 - 60 | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0057	0.0053
GMIBNLG | Mortality rate | Discounted cash flow | Ages 41 - 60 | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0162	0.0156
GMIBNLG | Mortality rate | Discounted cash flow | Ages 61 - 115 | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0044	0.000041
GMIBNLG | Mortality rate | Discounted cash flow | Ages 61 - 115 | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.4360	0.4139
GMIBNLG | Mortality rate | Discounted cash flow | Ages 61 - 115 | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0162	0.0156
GMIBNLG | Annuitization rate | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0003	0
GMIBNLG | Annuitization rate | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		1.0000	1
GMIBNLG | Annuitization rate | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0524	0.0551
Assumed GMIB Reinsurance Contracts | Discounted cash flow
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value			$ 195
Assumed GMIB Reinsurance Contracts | Lapse rate | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input			0.00011
Assumed GMIB Reinsurance Contracts | Lapse rate | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input			0.111
Assumed GMIB Reinsurance Contracts | Lapse rate | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input			0.0169
Assumed GMIB Reinsurance Contracts | Withdrawal rate | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input			0.00006
Assumed GMIB Reinsurance Contracts | Withdrawal rate | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input			0.222
Assumed GMIB Reinsurance Contracts | Withdrawal rate | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input			0.0091
Assumed GMIB Reinsurance Contracts | Withdrawal rate | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input			0.00011
Assumed GMIB Reinsurance Contracts | Withdrawal rate | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input			1
Assumed GMIB Reinsurance Contracts | Withdrawal rate | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input			0.0091
Assumed GMIB Reinsurance Contracts | Utilization rate | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input			0
Assumed GMIB Reinsurance Contracts | Utilization rate | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input			0.30
Assumed GMIB Reinsurance Contracts | Utilization rate | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input			0.0582
Assumed GMIB Reinsurance Contracts | Non-performance risk | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input			0.0060
Assumed GMIB Reinsurance Contracts | Non-performance risk | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input			0.0133
Assumed GMIB Reinsurance Contracts | Non-performance risk | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input			0.0099
Assumed GMIB Reinsurance Contracts | Volatility rate - Equity | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input			0.07
Assumed GMIB Reinsurance Contracts | Volatility rate - Equity | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input			0.32
Assumed GMIB Reinsurance Contracts | Volatility rate - Equity | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input			0.24
GWBL/GMWB | Discounted cash flow
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value		$ 99	$ 190
GWBL/GMWB | Lapse rate | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0060	0.00008
GWBL/GMWB | Lapse rate | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.2086	0.16
GWBL/GMWB | Lapse rate | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0265	0.00000169
GWBL/GMWB | Withdrawal rate | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0000	0
GWBL/GMWB | Withdrawal rate | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0800	0.08
GWBL/GMWB | Withdrawal rate | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0093	0.00000091
GWBL/GMWB | Utilization rate | Discounted cash flow
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		1	1
GWBL/GMWB | Utilization rate | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input			0.24
GWBL/GMWB | Non-performance risk | Discounted cash flow
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input			0.00960
GWBL/GMWB | Non-performance risk | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0111
GWBL/GMWB | Volatility rate - Equity | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.11	0.07
GWBL/GMWB | Volatility rate - Equity | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.31	0.32
GWBL/GMWB | Volatility rate - Equity | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.24
GIB | Discounted cash flow
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value		$ (75)	$ 31
GIB | Lapse rate | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0060	0.008
GIB | Lapse rate | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.2086	0.156
GIB | Lapse rate | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0265	0.0169
GIB | Withdrawal rate | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0013	0
GIB | Withdrawal rate | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0866	0.02
GIB | Withdrawal rate | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0093	0.0091
GIB | Utilization rate | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0004	0
GIB | Utilization rate | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		1.0000	1
GIB | Utilization rate | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0527	0.0582
GIB | Non-performance risk | Discounted cash flow
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0111	0.00960
GIB | Volatility rate - Equity | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.11	0.07
GIB | Volatility rate - Equity | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.31	0.32
GIB | Volatility rate - Equity | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.24	0.24
GMAB | Discounted cash flow
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value		$ (3)	$ 2
GMAB | Lapse rate | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0060	0.00008
GMAB | Lapse rate | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.2086	0.16
GMAB | Lapse rate | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0265	0.0169
GMAB | Non-performance risk | Discounted cash flow
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.0111	0.00960
GMAB | Volatility rate - Equity | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.11	0.07
GMAB | Volatility rate - Equity | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.31	0.32
GMAB | Volatility rate - Equity | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.24	0.24

XML

FAIR VALUE DISCLOSURES - Carrying Values and Fair Values of Financial Instruments (Details) - USD ($) $ in Millions		Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Consolidated Amounts [Abstract]
Mortgage loans on real estate	[1]	$ 14,033	$ 13,159
Policy loans		4,024	4,118
Policyholders liabilities: Investment contracts		79,357	66,820	$ 58,879
Short-term and long-term debt		3,931	4,115
Separate Accounts liabilities		147,306	135,950
Short-term debt		92	0
Carrying Value
Consolidated Amounts [Abstract]
Mortgage loans on real estate		14,033	13,159
Policy loans		4,024	4,118
Policyholders liabilities: Investment contracts		2,035	2,198
FHLB funding agreements		6,647	6,897
FABN funding agreements		6,689	1,939
Short-term and long-term debt		3,839	4,115
Separate Accounts liabilities		11,620	10,081
Carrying Value | CLO Warehouse Debt
Consolidated Amounts [Abstract]
Short-term debt		92
Measured at Fair Value
Consolidated Amounts [Abstract]
Mortgage loans on real estate		14,308	13,491
Policy loans		5,050	5,352
Policyholders liabilities: Investment contracts		2,103	2,416
FHLB funding agreements		6,679	6,990
FABN funding agreements		6,626	1,971
Short-term and long-term debt		4,544	5,065
Separate Accounts liabilities		11,620	10,081
Measured at Fair Value | Level 1
Consolidated Amounts [Abstract]
Mortgage loans on real estate		0	0
Policy loans		0	0
Policyholders liabilities: Investment contracts		0	0
FHLB funding agreements		0	0
FABN funding agreements		0	0
Short-term and long-term debt		0	0
Separate Accounts liabilities		0	0
Measured at Fair Value | Level 2
Consolidated Amounts [Abstract]
Mortgage loans on real estate		0	0
Policy loans		0	0
Policyholders liabilities: Investment contracts		0	0
FHLB funding agreements		6,679	6,990
FABN funding agreements		6,626	1,971
Short-term and long-term debt		4,544	5,065
Separate Accounts liabilities		0	0
Measured at Fair Value | Level 3
Consolidated Amounts [Abstract]
Mortgage loans on real estate		14,308	13,491
Policy loans		5,050	5,352
Policyholders liabilities: Investment contracts		2,103	2,416
FHLB funding agreements		0	0
FABN funding agreements		0	0
Short-term and long-term debt		0	0
Separate Accounts liabilities		$ 11,620	$ 10,081

[1] See Note 2 of the Notes to these Consolidated Financial Statements for details of balances with VIEs.

XML

INSURANCE LIABILITIES - Rollforward of Liability and Reinsurance Ceded (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
GMDB Direct
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Opening Balance	$ 4,951	$ 5,097	$ 4,780	$ 4,662
Paid guarantee benefits	(461)	(495)	(438)
Other changes in reserves	315	812	556
Impact of the Venerable Transaction	0
Closing Balance	4,951	5,097	4,780	4,662
GMDB Assumed
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Opening Balance	0	72	76	82
Paid guarantee benefits	(12)	(22)	(21)
Other changes in reserves	14	18	15
Impact of the Venerable Transaction	(74)
Closing Balance	0	72	76	82
GMDB Ceded
Guaranteed Minimum Death Benefit Reinsurance Ceded [Roll Forward]
Opening Balance	(88)	(104)	(113)
Paid guarantee benefits	113	15	14
Other changes in reserve	(65)	1	(5)
Impact of the Venerable Transaction	(2,176)
Ending Balance	(2,216)	(88)	(104)
GMIB Direct
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Opening Balance	5,892	6,026	4,673	3,746
Paid guarantee benefits	(377)	(293)	(256)
Other changes in reserves	243	1,646	1,183
Impact of the Venerable Transaction	0
Closing Balance	5,892	6,026	4,673	3,746
GMIB Assumed
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Opening Balance	0	196	187	184
Paid guarantee benefits	(49)	15	7
Other changes in reserves	(7)	(6)	(4)
Impact of the Venerable Transaction	(140)
Closing Balance	0	196	187	$ 184
GMIB Ceded
Guaranteed Minimum Death Benefit Reinsurance Ceded [Roll Forward]
Opening Balance	(2,488)	(2,139)	(1,733)
Paid guarantee benefits	58	79	72
Other changes in reserve	603	(428)	(478)
Impact of the Venerable Transaction	(2,141)
Ending Balance	$ (3,968)	$ (2,488)	$ (2,139)

XML

INSURANCE LIABILITIES - Variable Annuity Contracts with GMDB and GMIB Features and Buybacks (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
GMDB
Net Amount at Risk by Product and Guarantee [Line Items]
Separate Accounts	$ 107,577	$ 100,520
GMIB
Net Amount at Risk by Product and Guarantee [Line Items]
Separate Accounts	63,276	$ 61,186
Direct Variable Annuity | GMDB
Net Amount at Risk by Product and Guarantee [Line Items]
General Account	16,479
Separate Accounts	107,577
Total Account Values	124,056
NAR, gross	17,185
NAR, net of amounts reinsured	$ 8,997
Average attained age of contract holders (in years)	55 years 7 months 6 days
Percentage of policyholders over age 70	20.70%
Direct Variable Annuity | GMDB | Minimum
Net Amount at Risk by Product and Guarantee [Line Items]
Range of contractually specified interest rates (as a percent)	3.00%
Direct Variable Annuity | GMDB | Maximum
Net Amount at Risk by Product and Guarantee [Line Items]
Range of contractually specified interest rates (as a percent)	6.50%
Direct Variable Annuity | GMDB | Return of Premium
Net Amount at Risk by Product and Guarantee [Line Items]
General Account	$ 16,188
Separate Accounts	59,819
Total Account Values	76,007
NAR, gross	90
NAR, net of amounts reinsured	$ 86
Average attained age of contract holders (in years)	51 years 6 months
Percentage of policyholders over age 70	11.70%
Direct Variable Annuity | GMDB | Ratchet
Net Amount at Risk by Product and Guarantee [Line Items]
General Account	$ 84
Separate Accounts	9,860
Total Account Values	9,944
NAR, gross	30
NAR, net of amounts reinsured	$ 26
Average attained age of contract holders (in years)	69 years
Percentage of policyholders over age 70	51.10%
Direct Variable Annuity | GMDB | Roll-Up
Net Amount at Risk by Product and Guarantee [Line Items]
General Account	$ 51
Separate Accounts	3,412
Total Account Values	3,463
NAR, gross	1,333
NAR, net of amounts reinsured	$ 937
Average attained age of contract holders (in years)	75 years 6 months
Percentage of policyholders over age 70	72.60%
Direct Variable Annuity | GMDB | Roll-Up | Minimum
Net Amount at Risk by Product and Guarantee [Line Items]
Range of contractually specified interest rates (as a percent)	3.00%
Direct Variable Annuity | GMDB | Roll-Up | Maximum
Net Amount at Risk by Product and Guarantee [Line Items]
Range of contractually specified interest rates (as a percent)	6.00%
Direct Variable Annuity | GMDB | Combo
Net Amount at Risk by Product and Guarantee [Line Items]
General Account	$ 156
Separate Accounts	34,486
Total Account Values	34,642
NAR, gross	15,732
NAR, net of amounts reinsured	$ 7,948
Average attained age of contract holders (in years)	71 years 1 month 6 days
Percentage of policyholders over age 70	57.50%
Direct Variable Annuity | GMDB | Combo | Minimum
Net Amount at Risk by Product and Guarantee [Line Items]
Range of contractually specified interest rates (as a percent)	3.00%
Direct Variable Annuity | GMDB | Combo | Maximum
Net Amount at Risk by Product and Guarantee [Line Items]
Range of contractually specified interest rates (as a percent)	6.50%
Direct Variable Annuity | GMIB
Net Amount at Risk by Product and Guarantee [Line Items]
General Account	$ 218
Separate Accounts	63,276
Total Account Values	63,494
NAR, gross	9,725
NAR, net of amounts reinsured	$ 3,910
Average attained age of contract holders (in years)	68 years 7 months 6 days
Weighted average years remaining until annuitization (in years)	2 years 8 months 12 days
Direct Variable Annuity | GMIB | Minimum
Net Amount at Risk by Product and Guarantee [Line Items]
Range of contractually specified interest rates (as a percent)	3.00%
Direct Variable Annuity | GMIB | Maximum
Net Amount at Risk by Product and Guarantee [Line Items]
Range of contractually specified interest rates (as a percent)	6.50%
Direct Variable Annuity | GMIB | Return of Premium
Net Amount at Risk by Product and Guarantee [Line Items]
General Account	$ 0
Separate Accounts	0
Total Account Values	0
NAR, gross	0
NAR, net of amounts reinsured	0
Direct Variable Annuity | GMIB | Ratchet
Net Amount at Risk by Product and Guarantee [Line Items]
General Account	0
Separate Accounts	0
Total Account Values	0
NAR, gross	0
NAR, net of amounts reinsured	0
Direct Variable Annuity | GMIB | Roll-Up
Net Amount at Risk by Product and Guarantee [Line Items]
General Account	16
Separate Accounts	26,443
Total Account Values	26,459
NAR, gross	632
NAR, net of amounts reinsured	$ 202
Average attained age of contract holders (in years)	65 years
Weighted average years remaining until annuitization (in years)	6 years
Direct Variable Annuity | GMIB | Roll-Up | Minimum
Net Amount at Risk by Product and Guarantee [Line Items]
Range of contractually specified interest rates (as a percent)	3.00%
Direct Variable Annuity | GMIB | Roll-Up | Maximum
Net Amount at Risk by Product and Guarantee [Line Items]
Range of contractually specified interest rates (as a percent)	6.00%
Direct Variable Annuity | GMIB | Combo
Net Amount at Risk by Product and Guarantee [Line Items]
General Account	$ 202
Separate Accounts	36,833
Total Account Values	37,035
NAR, gross	9,093
NAR, net of amounts reinsured	$ 3,708
Average attained age of contract holders (in years)	70 years 9 months 18 days
Weighted average years remaining until annuitization (in years)	7 months 6 days
Direct Variable Annuity | GMIB | Combo | Minimum
Net Amount at Risk by Product and Guarantee [Line Items]
Range of contractually specified interest rates (as a percent)	3.00%
Direct Variable Annuity | GMIB | Combo | Maximum
Net Amount at Risk by Product and Guarantee [Line Items]
Range of contractually specified interest rates (as a percent)	6.50%

XML

INSURANCE LIABILITIES - Separate Account Investments, Hedging Programs and Variable and Interest-Sensitive Live Insurance Policies (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
GMDB
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
Separate Accounts	$ 107,577	$ 100,520
GMIB
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
Separate Accounts	63,276	61,186
Direct Liabilities For Guarantees
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Opening Balance	1,022	898	$ 813
Paid guarantee benefits	(84)	(39)	(20)
Other changes in reserves	158	163	127
Transfer to liabilities held-for-sale	0	0	(22)
Closing Balance	1,096	1,022	$ 898
Equity | GMDB
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
Separate Accounts	52,771	46,850
Equity | GMIB
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
Separate Accounts	20,015	18,771
Fixed income | GMDB
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
Separate Accounts	5,391	5,506
Fixed income | GMIB
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
Separate Accounts	2,507	2,701
Balanced | GMDB
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
Separate Accounts	48,390	47,053
Balanced | GMIB
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
Separate Accounts	40,491	39,439
Other | GMDB
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
Separate Accounts	1,025	1,111
Other | GMIB
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
Separate Accounts	$ 263	$ 275

XML

LEASES - Narrative (Details) ft² in Thousands, $ in Millions	1 Months Ended	9 Months Ended
	Dec. 31, 2021 USD ($) ft²	Sep. 30, 2021 ft²	Dec. 31, 2020 USD ($) ft²	Apr. 30, 2019 USD ($) ft²
Lessee, Lease, Description [Line Items]
Operating lease liabilities | $	$ 768		$ 855
New York City
Lessee, Lease, Description [Line Items]
Area of property (in sq. ft.)		89	130
Lease term			15 years
Area of property, option to decrease (in sq. ft.)		41
Syracuse, NY
Lessee, Lease, Description [Line Items]
Area of property (in sq. ft.)	143
Lease term, additional	5 years
Alliance Bernstein (AB) | New York City
Lessee, Lease, Description [Line Items]
Area of property (in sq. ft.)				190
Lease term				20 years
Operating lease liabilities | $				$ 448
Area of property, option to decrease, exercised (in sq. ft.)			166
Operating lease, liability, option exercised | $			$ 393
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	15 years

XML

LEASES - Balance Sheet Classification (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease assets [Extensible Enumeration]	Other assets	Other assets
Operating lease assets	$ 637	$ 691
Operating lease liabilities [Extensible Enumeration]	Other liabilities	Other liabilities
Operating lease liabilities	$ 768	$ 855

XML

LEASES - Lease Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating lease cost	$ 173	$ 169	$ 186
Variable operating lease cost	49	49	50
Sublease income	(55)	(56)	(72)
Short-term lease expense	0	0	2
Net lease cost	$ 167	$ 162	$ 166

XML

LEASES - Lease Maturities (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Operating Leases:
2022	$ 197
2023	183
2024	131
2025	60
2026	54
Thereafter	211
Total lease payments	836
Less: Interest	(68)
Present value of lease liabilities	$ 768	$ 855

XML

LEASES - Supplemental Lease Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Weighted-average remaining operating lease term	7 years	6 years
Weighted-average discount rate for operating leases	2.80%	3.07%
Operating cash flows from operating leases	$ 209	$ 210	$ 222
Right-of-use assets obtained in exchange for lease obligations	$ 109	$ 156	$ 50

XML

REINSURANCE - Effects of Reinsurance (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Premiums
Direct premiums	$ 970	$ 929	$ 1,068
Reinsurance assumed	189	222	220
Reinsurance ceded	(199)	(154)	(141)
Premiums	960	997	1,147
Direct charges and fee income	4,250	4,149	4,197
Reinsurance ceded	(613)	(414)	(419)
Policy charges and fee income	3,637	3,735	3,778
Direct policyholders’ benefits	3,843	5,826	4,711
Reinsurance assumed	238	241	240
Reinsurance ceded	(863)	(741)	(566)
Policyholders’ benefits	3,218	5,326	4,385
Direct interest credited to policyholders’ account balances	1,271	1,252	1,322
Reinsurance ceded	(52)	(30)	(59)
Interest credited to policyholders’ account balances	$ 1,219	$ 1,222	$ 1,263

XML

REINSURANCE - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Reinsurance, per life, single lives, amount retained	$ 25
Reinsurance, per life, joint lives, amount retained	$ 30
Reinsurance retention policy, percentage of excess reinsured	100.00%
GMDB | Third-party
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Exposure reinsured percentage	47.60%	2.60%
GMIB | Third-party
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Exposure reinsured percentage	59.80%	13.40%

XML

REINSURANCE - Ceded Reinsurance (Details) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Estimated net fair values of ceded GMIB reinsurance contracts, considered derivatives		$ 1,848	$ 2,488
Estimated net fair values of ceded GMIB NLG ceded reserves to Venerable		5,813	0
Reinsurance Recoverable for Paid Claims and Claims Adjustments	[1]	14,679	4,566
Amount due to reinsurers		1,381	1,381
Increase (decrease) in the fair value of the reinsurance contracts		(640)	349	$ 407
Group Life And Health Insurance
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Reinsurance recoverables related to insurance contracts		40	48
Reinsurance assumed reserves		798	788
Group Life And Health Insurance | GMIB
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Reinsurance assumed reserves		0	195
Venerable Insurance and Annuity Company
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Amount due to reinsurers		27
Venerable Insurance and Annuity Company | A -
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Reinsurance recoverables related to insurance contracts		10,291
Zurich Life Insurance Company, Ltd. | AA-
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Reinsurance recoverables related to insurance contracts		1,318	1,421
Protective Life Insurance Company
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Amount due to reinsurers		111	116
Protective Life Insurance Company | AA-
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Reinsurance recoverables related to insurance contracts		1,153	1,184
RGA Reinsurance Company
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Amount due to reinsurers		1,212	1,135
RGA Reinsurance Company | AA-
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Reinsurance recoverables related to insurance contracts		$ 1,138	$ 1,143

[1] Represents the fair value of the ceded reserves to Venerable. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction and Note 8 of the Notes to these Consolidated Financial Statements .

XML

SHORT-TERM AND LONG-TERM DEBT - Summary of Short and Long-term Debt (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Apr. 20, 2018
Debt Instrument [Line Items]
Total short-term debt	$ 92	$ 0
Total long-term debt	3,839	4,115
Short-term and long-term debt	$ 3,931	4,115
Senior Notes | Senior Notes (5.0%, due 2048)
Debt Instrument [Line Items]
Debt instrument, stated percentage	5.00%		5.00%
Total long-term debt	$ 1,481	1,481
Senior Notes | Senior Notes (4.35%, due 2028)
Debt Instrument [Line Items]
Debt instrument, stated percentage	4.35%		4.35%
Total long-term debt	$ 1,490	1,489
Senior Notes | Senior Notes (3.9%, due 2023)
Debt Instrument [Line Items]
Debt instrument, stated percentage	3.90%		3.90%
Total long-term debt	$ 519	$ 796
Senior Debentures, (7.0%, due 2028)
Debt Instrument [Line Items]
Debt instrument, stated percentage	7.00%	7.00%
Total long-term debt	$ 349	$ 349
CLO Warehouse Debt
Debt Instrument [Line Items]
Total short-term debt	$ 92	$ 0

XML

SHORT-TERM AND LONG-TERM DEBT - Short-term Debt Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Revolving credit facility
Short-term Debt [Line Items]
Line of credit facility, maximum borrowing capacity	$ 17,000,000
Commercial paper | AB commercial paper
Short-term Debt [Line Items]
Short-term debt including accrued interest	0	$ 0
Average outstanding balance	$ 157,000,000	$ 83,000,000
Weighted average interest rate over period	0.20%	0.40%
Line of credit | AB revolving credit facility | Revolving credit facility
Short-term Debt [Line Items]
Line of credit facility, maximum borrowing capacity	$ 200,000,000
Letters of credit outstanding	0	$ 0
Average outstanding amount	$ 13,000,000	$ 17,000,000
Interest rate	1.10%	1.60%

XML

SHORT-TERM AND LONG-TERM DEBT - Long-term Debt Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Apr. 20, 2018
Debt Instrument [Line Items]
Long-term debt	$ 3,839,000,000	$ 4,115,000,000
Senior Notes | Senior Notes (3.9%, due 2023)
Debt Instrument [Line Items]
Debt issued			$ 800,000,000
Debt instrument, stated percentage	3.90%		3.90%
Repayments of long-term debt	$ 280,000,000
Long-term debt	$ 519,000,000	796,000,000
Senior Notes | Senior Notes (4.35%, due 2028)
Debt Instrument [Line Items]
Debt instrument, stated percentage	4.35%		4.35%
Debt instrument, face amount			$ 1,500,000,000
Long-term debt	$ 1,490,000,000	1,489,000,000
Senior Notes | Senior Notes (5.0%, due 2048)
Debt Instrument [Line Items]
Debt instrument, stated percentage	5.00%		5.00%
Debt instrument, face amount			$ 1,500,000,000
Long-term debt	$ 1,481,000,000	$ 1,481,000,000
Senior Debentures, (7.0%, due 2028)
Debt Instrument [Line Items]
Debt instrument, stated percentage	7.00%	7.00%
Long-term debt	$ 349,000,000	$ 349,000,000

XML

SHORT-TERM AND LONG-TERM DEBT - Credit Facility Narrative (Details)	1 Months Ended	12 Months Ended
	Feb. 28, 2018 USD ($)	Dec. 31, 2021 USD ($) uncommittedLineOfCredit financialInstitution	Dec. 31, 2020 USD ($)	Oct. 11, 2021 USD ($)	Sep. 28, 2021 USD ($)	Jun. 30, 2021 USD ($)
Revolving credit facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity		$ 17,000,000
Holdings Revolving Credit Facility | Revolving credit facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 2,500,000,000					$ 1,500,000,000
Debt instrument, term	5 years
Holdings Revolving Credit Facility | Letter of credit
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 1,500,000,000	1,500,000,000
Remaining capacity		0
Bilateral Letter Of Credit Facilities | Letter of credit
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 1,900,000,000
AB Committed Unsecured Senior Revolving Credit Facility | Revolving credit facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity		800,000,000
Incremental borrowing base		200,000,000
AB Uncommitted Line of Credit | Line of credit
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity				$ 50,000,000	$ 100,000,000
Letters of credit outstanding		$ 0	$ 0
SCB Line of Credit
Line of Credit Facility [Line Items]
Number of uncommitted line of credit | uncommittedLineOfCredit		3
Number of financial institutions | financialInstitution		3
SCB Line of Credit | Revolving credit facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity		$ 165,000,000
Letters of credit outstanding		$ 0	0
Number of uncommitted line of credit | uncommittedLineOfCredit		2
Average outstanding amount		$ 47,000	$ 1,000,000
Interest rate		0.90%	1.60%

XML

RELATED PARTY TRANSACTIONS - Investment Management and Service Fees Related to AB (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Related Party Transaction [Line Items]
Investment management and service fees	$ 5,395	$ 4,608	$ 4,380
Alliance Bernstein
Related Party Transaction [Line Items]
Investment management and service fees	1,645	1,368	1,276
Distribution revenues	637	516	441
Other revenues - shareholder servicing fees	86	79	75
Other revenues - other	8	8	7
Total	$ 2,376	$ 1,971	$ 1,799

XML

RELATED PARTY TRANSACTIONS - Schedule of Related Party Transactions (Details) - Equitable Affiliates - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Related Party Transaction [Line Items]
Revenue from Related Parties	$ 840	$ 724	$ 732
Related Party Transaction, Expenses from Transactions with Related Party	2	2	2
Investment management and administrative services provided to EQAT, EQ Premier VIP Trust, 1290 Funds and Other AXA Trusts
Related Party Transaction [Line Items]
Revenue from Related Parties	840	724	732
Investment management services provided by AXA Strategic Ventures Corporation
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	$ 2	$ 2	$ 2

XML

RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Related Party Transactions [Abstract]
Capital contributions to foundation	$ 0	$ 0	$ 25,000,000

XML

EMPLOYEE BENEFIT PLANS - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Life insurance, corporate or bank owned, amount	$ 1,010,000,000.00	$ 992,000,000
Unfunded Plan
Defined Benefit Plan Disclosure [Line Items]
PBO in excess of plan assets	93,000,000	436,000,000
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Contributions	$ 0	$ 0
Defined benefit plan, actual plan asset allocations (as a percent)	100.00%	100.00%
Pension Benefits | Qualified plan
Defined Benefit Plan Disclosure [Line Items]
Benefits paid	$ 198,000,000	$ 203,000,000
Pension Benefits | Qualified plan | Level 1
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, actual plan asset allocations (as a percent)	23.40%	25.70%
Pension Benefits | Qualified plan | Level 2
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, actual plan asset allocations (as a percent)	55.40%	54.80%
Pension Benefits | Qualified plan | Level 3
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, actual plan asset allocations (as a percent)	0.00%	0.00%
Pension Benefits | Alliance Bernstein
Defined Benefit Plan Disclosure [Line Items]
Contributions	$ 4,000,000
Post-retirement Plans
Defined Benefit Plan Disclosure [Line Items]
Benefits paid	28,000,000	$ 24,000,000
Post-retirement Plans | Executive Survivor Benefits Plan
Defined Benefit Plan Disclosure [Line Items]
Benefit cap	25,000,000
Post-employment Benefits
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, liability	3,000,000	3,000,000
AXA Equitable 401(k) Plan
Defined Benefit Plan Disclosure [Line Items]
Expenses recognized	64,000,000	49,000,000	$ 55,000,000
AXA Equitable Life QP - Pre-1987 | Qualified plan
Defined Benefit Plan Disclosure [Line Items]
Benefits paid	$ 4,000,000	$ 5,000,000

XML

EMPLOYEE BENEFIT PLANS - Net Periodic Benefit Cost (Credit) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 6	$ 6	$ 8
Interest cost	46	77	104
Expected return on assets	(154)	(147)	(152)
Actuarial (gain) loss	1	1	1
Net amortization	99	103	94
Impact of settlement	6	7	0
Net Periodic Pension Expense	4	47	55
Post-retirement Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	2	2	1
Interest cost	8	13	18
Net amortization	9	9	6
Net Periodic Pension Expense	19	24	25
Post-employment Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	1	1	1
Interest cost	0	0	0
Net amortization	0	(5)	0
Net (gain) loss	0	0	(1)
Net Periodic Pension Expense	$ 1	$ (4)	$ 1

XML

EMPLOYEE BENEFIT PLANS - Change in Benefit Obligation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Projected benefit obligation, beginning of year	$ 3,180,000,000
Projected benefit obligation, end of year	2,900,000,000	$ 3,180,000,000
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Pension plan assets at fair value, beginning of year	2,744,000,000
Pension plan assets at fair value, end of year	2,808,000,000	2,744,000,000
Pension Benefits
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Service cost	6,000,000	6,000,000	$ 8,000,000
Interest cost	46,000,000	77,000,000	104,000,000
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Pension plan assets at fair value, beginning of year	2,744,000,000	2,552,000,000
Actual return on plan assets	259,000,000	373,000,000
Contributions	0	0
Benefits paid	(165,000,000)	(165,000,000)
Annuity purchases	(30,000,000)	(16,000,000)
Pension plan assets at fair value, end of year	2,808,000,000	2,744,000,000	2,552,000,000
PBO	2,900,000,000	3,180,000,000
Excess of PBO over pension plan assets, end of year	92,000,000	436,000,000
Post-retirement Plans
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Projected benefit obligation, beginning of year	516,000,000	517,000,000
Service cost	2,000,000	2,000,000	1,000,000
Interest cost	8,000,000	13,000,000	18,000,000
Actuarial (gains)/losses	(32,000,000)	38,000,000
Benefits paid	(28,000,000)	(24,000,000)
Contributions and benefits paid	(28,000,000)	(24,000,000)
Plan amendments and curtailments	0	(30,000,000)
Projected benefit obligation, end of year	466,000,000	516,000,000	517,000,000
Qualified plan | Pension Benefits
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Projected benefit obligation, beginning of year	3,180,000,000	3,056,000,000
Service cost	0	0
Interest cost	45,000,000	77,000,000
Actuarial (gains)/losses	(95,000,000)	272,000,000
Benefits paid	(198,000,000)	(203,000,000)
Plan amendments and curtailments	0	0
Settlements	(32,000,000)	(22,000,000)
Projected benefit obligation, end of year	2,900,000,000	3,180,000,000	$ 3,056,000,000
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Pension plan assets at fair value, beginning of year	2,750,000,000
Pension plan assets at fair value, end of year	$ 2,805,000,000	$ 2,750,000,000

XML

EMPLOYEE BENEFIT PLANS - Fair Value of Plan Assets (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Postemployment Benefits [Abstract]
Projected benefit obligation	$ 2,900	$ 3,180
Accumulated benefit obligation	2,900	3,180
Fair value of plan assets	$ 2,808	$ 2,744

XML

EMPLOYEE BENEFIT PLANS - Unrecognized Net Actuarial (Gain) Loss (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Unrecognized net actuarial (gain) loss	$ 620	$ 895
Unrecognized prior service cost (credit)	(1)	(1)
Unrecognized net transition obligation (asset)	0	0
Total	619	894
Post-retirement Plans
Defined Benefit Plan Disclosure [Line Items]
Unrecognized net actuarial (gain) loss	135	186
Unrecognized prior service cost (credit)	(26)	(29)
Total	$ 109	$ 157

XML

EMPLOYEE BENEFIT PLANS - Asset Allocations (Details) - Pension Benefits	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, actual plan asset allocations (as a percent)	100.00%	100.00%
Fixed maturities
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, actual plan asset allocations (as a percent)	47.20%	47.20%
Equity securities
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, actual plan asset allocations (as a percent)	29.70%	32.10%
Equity real estate
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, actual plan asset allocations (as a percent)	16.50%	14.70%
Cash and short-term investments
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, actual plan asset allocations (as a percent)	2.50%	1.70%
Other
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, actual plan asset allocations (as a percent)	4.10%	4.30%

XML

EMPLOYEE BENEFIT PLANS - Fair Value and Level 3 (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	$ 2,808	$ 2,744
NAV
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	594	535
Pension Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	2,808	2,744	$ 2,552
Qualified plan | Public corporate
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	842	831
Qualified plan | Public corporate | Level 1
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	0
Qualified plan | Public corporate | Level 2
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	842	831
Qualified plan | Public corporate | Level 3
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	0
Qualified plan | U.S. government, agencies and authorities
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	426	412
Qualified plan | U.S. government, agencies and authorities | Level 1
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	0
Qualified plan | U.S. government, agencies and authorities | Level 2
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	426	412
Qualified plan | U.S. government, agencies and authorities | Level 3
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	0
Qualified plan | State and Political Subdivisions
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	16	16
Qualified plan | State and Political Subdivisions | Level 1
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	0
Qualified plan | State and Political Subdivisions | Level 2
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	16	16
Qualified plan | State and Political Subdivisions | Level 3
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	0
Qualified plan | Foreign governments
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	18	14
Qualified plan | Foreign governments | Level 1
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	0
Qualified plan | Foreign governments | Level 2
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	18	14
Qualified plan | Foreign governments | Level 3
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	0
Qualified plan | Commercial mortgage-backed
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	1
Qualified plan | Commercial mortgage-backed | Level 1
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	0
Qualified plan | Commercial mortgage-backed | Level 2
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	1
Qualified plan | Commercial mortgage-backed | Level 3
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	0
Qualified plan | Pension Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	2,805	2,750
Qualified plan | Pension Benefits | Level 1
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	657	708
Qualified plan | Pension Benefits | Level 2
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	1,555	1,506
Qualified plan | Pension Benefits | Level 3
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	0
Qualified plan | Pension Benefits | Level 3 | Private Real Estate Investment Trusts
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation
Beginning Balance	0	0	0
Actual return on plan assets — Sales/Settlements	0	0	0
Ending Balance	0	0	0
Qualified plan | Pension Benefits | Level 3 | Other Equity Investments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation
Beginning Balance	0	0	0
Actual return on plan assets — Sales/Settlements	0	0	0
Ending Balance	0	0	0
Qualified plan | Pension Benefits | Level 3 | Fixed maturities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation
Beginning Balance	0	1	2
Actual return on plan assets — Sales/Settlements	(1)	(1)	(1)
Ending Balance	(1)	0	$ 1
Qualified plan | Pension Benefits | Fair Value, Inputs, Level 1, 2 and 3
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	2,212	2,214
Qualified plan | Pension Benefits | NAV
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	593	536
Qualified plan | Pension Benefits | Common equity, REITs and preferred equity
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	684	735
Qualified plan | Pension Benefits | Common equity, REITs and preferred equity | Level 1
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	576	622
Qualified plan | Pension Benefits | Common equity, REITs and preferred equity | Level 2
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	108	113
Qualified plan | Pension Benefits | Common equity, REITs and preferred equity | Level 3
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	0
Qualified plan | Pension Benefits | Mutual funds
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	62	63
Qualified plan | Pension Benefits | Mutual funds | Level 1
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	62	63
Qualified plan | Pension Benefits | Mutual funds | Level 2
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	0
Qualified plan | Pension Benefits | Mutual funds | Level 3
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	0
Qualified plan | Pension Benefits | Collective Trust
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	99	98
Qualified plan | Pension Benefits | Collective Trust | Level 1
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	0
Qualified plan | Pension Benefits | Collective Trust | Level 2
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	99	98
Qualified plan | Pension Benefits | Collective Trust | Level 3
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	0
Qualified plan | Pension Benefits | Derivatives, net
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0
Qualified plan | Pension Benefits | Derivatives, net | Level 1
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0
Qualified plan | Pension Benefits | Derivatives, net | Level 2
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0
Qualified plan | Pension Benefits | Derivatives, net | Level 3
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0
Qualified plan | Pension Benefits | Cash and cash equivalents
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	19	23
Qualified plan | Pension Benefits | Cash and cash equivalents | Level 1
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	19	23
Qualified plan | Pension Benefits | Cash and cash equivalents | Level 2
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	0
Qualified plan | Pension Benefits | Cash and cash equivalents | Level 3
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	0
Qualified plan | Pension Benefits | Short-term investments
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	46	21
Qualified plan | Pension Benefits | Short-term investments | Level 1
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	0
Qualified plan | Pension Benefits | Short-term investments | Level 2
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	46	21
Qualified plan | Pension Benefits | Short-term investments | Level 3
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	$ 0	$ 0

XML

EMPLOYEE BENEFIT PLANS - Practical Expedient Disclosures (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 2,808	$ 2,744
NAV
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	594	535
Equity method investments	109	110
Private Equity Funds | NAV
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	72	69
Unfunded Commitments	19	21
Private Real Estate Investment Fund | NAV
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	457	397
Unfunded Commitments	0	0
Hedge Funds | NAV
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	65	69
Unfunded Commitments	$ 5	$ 4

XML

EMPLOYEE BENEFIT PLANS - Assumptions (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract]
Rates of compensation increase: Benefit obligation (as a percent)	5.97%	5.99%
Rates of compensation increase: Periodic cost (as a percent)	6.33%	6.32%
Expected long-term rates of return on pension plan assets (periodic cost) (as a percent)	6.25%	6.25%
Following year	5.10%	5.60%
Ultimate rate to which cost increase is assumed to decline	4.00%	4.00%
Equitable Financial QP
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract]
Benefits obligations (aggregate methodology) (as a percent)	2.55%	2.11%
Equitable Excess Retirement Plan
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract]
Benefits obligations (aggregate methodology) (as a percent)	2.47%	1.99%
MONY Life Retirement Income Security Plan for Employees
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract]
Benefits obligations (aggregate methodology) (as a percent)	2.78%	2.43%
AB Qualified Retirement Plan
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract]
Periodic cost (as a percent)	2.55%	3.35%
Cash balance interest crediting rate for pre-April 1, 2012 accruals
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract]
Periodic cost (as a percent)	4.00%	4.00%
Cash balance interest crediting rate for post-April 1, 2012 accruals
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract]
Periodic cost (as a percent)	0.50%	2.25%
Minimum
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract]
Periodic cost (as a percent)	1.18%	0.51%
Minimum | Post-retirement Plans
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract]
Benefits obligations (aggregate methodology) (as a percent)	2.43%	1.97%
Periodic cost (as a percent)	2.34%	2.80%
Minimum | Other defined benefit plans
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract]
Periodic cost (as a percent)	2.05%	1.46%
Maximum
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract]
Periodic cost (as a percent)	2.78%	2.43%
Maximum | Post-retirement Plans
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract]
Benefits obligations (aggregate methodology) (as a percent)	2.72%	2.38%
Periodic cost (as a percent)	2.52%	3.16%
Maximum | Other defined benefit plans
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract]
Periodic cost (as a percent)	2.78%	2.43%

XML

EMPLOYEE BENEFIT PLANS - Future Obligations (Details) $ in Millions	Dec. 31, 2021 USD ($)
Net Estimate Payment
2022	$ 0
2023	0
2024	0
2025	0
2026	0
Years 2027 — 2030	0
Pension Benefits
Defined Benefit Plan, Expected Future Benefit Payment [Abstract]
2022	211,168
2023	250,713
2024	200,447
2025	196,067
2026	186,582
Years 2027 — 2030	2,453,131
Life Insurance
Defined Benefit Plan, Expected Future Benefit Payment [Abstract]
2022	0
2023	0
2024	0
2025	0
2026	0
Years 2027 — 2030	0
Health
Defined Benefit Plan, Expected Future Benefit Payment [Abstract]
2022	0
2023	0
2024	0
2025	0
2026	0
Years 2027 — 2030	0
Estimated Medicare Part D Subsidy
2022	0
2023	0
2024	0
2025	0
2026	0
Years 2027 — 2030	$ 0

XML

SHARE-BASED COMPENSATION PROGRAMS - Compensation Expenses (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation expenses	$ 274	$ 252	$ 276
Income Tax Benefit	58	52	62
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation expenses	17	11	29
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation expenses	0	7	4
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation expenses	$ 257	$ 234	$ 243

XML

SHARE-BASED COMPENSATION PROGRAMS - Narrative (Details) - USD ($) $ in Thousands		12 Months Ended
	May 09, 2018	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)		1,630,277
Stock Options | Vesting trach one
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		33.33%
Stock Options | Vesting tranche two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		33.33%
Stock Options | Vesting tranche three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		33.33%
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)		1,153,932
ROE Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of award type		50.00%
TSR Performance Share Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of award type		50.00%
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost not yet recognized		$ 74
Compensation cost, recognition period		2 months 12 days
Omnibus Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Holding unit-based awards authorized for grant (in shares)		22,000,000
Annual Awards | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		3 years
Annual Awards | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		3 years
Annual Awards | Performance Shares | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Potential shares earned, percentage		0.00%
Annual Awards | Performance Shares | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Potential shares earned, percentage		200.00%
2018 Transaction Incentive Grant Awards | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	722,000
2018 Transaction Incentive Grant Awards | Restricted Stock Units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Growth rate	130.00%
2018 Transaction Incentive Grant Awards | Restricted Stock Units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Growth rate	150.00%
2018 Transaction Incentive Grant Awards | RSU Service Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	2 years
Vesting percentage	50.00%
2018 Transaction Incentive Grant Awards | RSU Performance Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	50.00%
2018 Transaction Incentive Grant Awards | RSU Performance Units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	2 years
2018 Transaction Incentive Grant Awards | RSU Performance Units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	5 years
2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Holding unit-based awards authorized for grant (in shares)		60,000,000
2017 Plan | Newly Issued AB Holding Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Holding unit-based awards authorized for grant (in shares)		30,000,000
Shares available for grant (in shares)		31,900,000
Plan 2017 Subject to Other Holding Unit Awards | Newly Issued AB Holding Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant (in shares)		28,100,000
Parent | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost, recognition period		1 year 10 months 24 days
Unvested restricted shares and holding units (in shares)		3,000,000
Compensation cost not yet recognized		$ 41,000
Parent | Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)		0
Compensation cost, recognition period		1 year 6 months
Unvested restricted shares and holding units (in shares)		2,000,000
Compensation cost not yet recognized		$ 19,000
Parent | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost not yet recognized		$ 1,000
Compensation cost, recognition period		1 year 21 days
Parent | AB Holding
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost, recognition period		6 years 2 months 12 days
Unvested restricted shares and holding units (in shares)		18,000,000
Compensation cost not yet recognized		$ 137,000
Alliance Bernstein
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares repurchased (in shares)		5,600,000	5,400,000	6,000,000
Payments for repurchase of other equity		$ 262,000	$ 149,000	$ 173,000
Open market purchases (in shares)		2,600,000	3,100,000	2,900,000
Open-market purchases, value		$ 117,900	$ 74,000	$ 82,700
Shares issued in period (in shares)		100,000	5,000	500,000
Proceeds from options exercised		$ 3,000	$ 147	$ 12,000
Alliance Bernstein | Employees and Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued in period (in shares)		7,000,000	5,700,000	7,700,000

XML

SHARE-BASED COMPENSATION PROGRAMS - Stock Option Activity (Details) - 12 months ended Dec. 31, 2021 - Parent € / shares in Units, $ / shares in Units, € in Thousands, $ in Thousands	USD ($) $ / shares shares	USD ($) € / shares $ / shares shares	EUR (€) € / shares shares
EQH Shares
Number Outstanding
Options, number outstanding, beginning balance (in shares)	3,428,000	3,428,000
Options granted (in shares)	0	0
Options exercised (in shares)	(1,204,000)	(1,204,000)
Options forfeited, net (in shares)	(184,000)	(184,000)
Options expired (in shares)	0	0
Options, number outstanding, ending balance (in shares)	2,040,000	2,040,000
Weighted Average Exercise Price
Options, weighted average exercise price, beginning balance (in dollars/euros per share) | $ / shares	$ 21.14
Options granted, weighted average exercise price (in dollars/euros per share) | $ / shares	0
Options exercised, weighted average exercise price (in dollars/euros per share) | $ / shares	21.20
Options forfeited, net, weighted average exercise price (in dollars/euros per share) | $ / shares	21.91
Options expired, weighted average exercise price (in dollars/euros per share) | $ / shares	0
Options, weighted average exercise price, ending balance (in dollars/euros per share) | $ / shares	$ 21.69
Options outstanding, aggregate intrinsic value | $	$ 6,305	$ 6,305
Weighted average remaining contractual term (in years)	7 years 8 months 15 days	7 years 8 months 15 days
Options exercisable (in shares)	843,000	843,000	843,000
Options exercisable, weighted average exercise price (in dollars/euros per share) | $ / shares	$ 21.58	$ 21.58
Options excercisable, aggregate intrinsic value | $	$ 2,700	$ 2,700
Weighted average remaining contractual term (in years)	7 years 6 months 21 days	7 years 6 months 21 days
AB Holding Units
Number Outstanding
Options, number outstanding, beginning balance (in shares)	148,985,000	148,985,000
Options granted (in shares)	0	0
Options exercised (in shares)	(143,211,000)	(143,211,000)
Options forfeited, net (in shares)	0	0
Options expired (in shares)	0	0
Options, number outstanding, ending balance (in shares)	5,774,000	5,774,000
Weighted Average Exercise Price
Options, weighted average exercise price, beginning balance (in dollars/euros per share) | $ / shares	$ 23,610
Options granted, weighted average exercise price (in dollars/euros per share) | $ / shares	0
Options exercised, weighted average exercise price (in dollars/euros per share) | $ / shares	23,750
Options forfeited, net, weighted average exercise price (in dollars/euros per share) | $ / shares	0
Options expired, weighted average exercise price (in dollars/euros per share) | $ / shares	0
Options, weighted average exercise price, ending balance (in dollars/euros per share) | $ / shares	$ 20,120
Options outstanding, aggregate intrinsic value | $	$ 165,829	$ 165,829
Weighted average remaining contractual term (in years)	3 months 29 days	3 months 29 days
Options exercisable (in shares)	5,774,000	5,774,000	5,774,000
Options exercisable, weighted average exercise price (in dollars/euros per share) | $ / shares	$ 20,120	$ 20,120
Options excercisable, aggregate intrinsic value | $	$ 165,829	$ 165,829
Weighted average remaining contractual term (in years)	3 months 29 days	3 months 29 days
AXA Ordinary Shares
Number Outstanding
Options, number outstanding, beginning balance (in shares)	1,726,000	1,726,000
Options granted (in shares)	0	0
Options exercised (in shares)	(743,000)	(743,000)
Options forfeited, net (in shares)	(109,000)	(109,000)
Options expired (in shares)	0	0
Options, number outstanding, ending balance (in shares)	874,000	874,000
Weighted Average Exercise Price
Options, weighted average exercise price, beginning balance (in dollars/euros per share) | € / shares		$ 21.01
Options granted, weighted average exercise price (in dollars/euros per share) | € / shares		0
Options exercised, weighted average exercise price (in dollars/euros per share) | € / shares		19.19
Options forfeited, net, weighted average exercise price (in dollars/euros per share) | € / shares		22.34
Options expired, weighted average exercise price (in dollars/euros per share) | € / shares		0
Options, weighted average exercise price, ending balance (in dollars/euros per share) | € / shares		$ 22.39
Options outstanding, aggregate intrinsic value | €			€ (2,370)
Weighted average remaining contractual term (in years)	4 years 8 months 8 days	4 years 8 months 8 days
Options exercisable (in shares)	758,000	758,000	758,000
Options exercisable, weighted average exercise price (in dollars/euros per share) | € / shares			€ 22.38
Options excercisable, aggregate intrinsic value | €			€ (2,049)
Weighted average remaining contractual term (in years)	4 years 5 months 23 days	4 years 5 months 23 days

XML

SHARE-BASED COMPENSATION PROGRAMS - Fair Value Stock Option Assumptions (Details) - Parent - EQH Shares - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%	2.59%	2.77%
Expected volatility	0.00%	26.00%	25.70%
Risk-free interest rates	0.00%	1.19%	2.49%
Expected life in years	0 years	6 years	5 years 10 months 24 days
Weighted average fair value per option at grant date (in dollars per share)	$ 0	$ 4.37	$ 3.82
Stock options granted (in shares)	0

XML

SHARE-BASED COMPENSATION PROGRAMS - Restricted and Performance Stock Activity (Details)	12 Months Ended
	Dec. 31, 2021 $ / shares shares
Restricted Stock Units
Awards
Unvested, Beginning Balance (in shares) | shares	3,666,611
Granted (in shares) | shares	1,630,277
Forfeited (in shares) | shares	(194,262)
Vested (in shares) | shares	(1,873,893)
Unvested, Ending Balance (in shares) | shares	3,228,733
Weighted-Average Grant Date  Fair Value
Unvested, Beginning Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares	$ 21.15
Granted (in dollars per share) | $ / shares	28.01
Forfeited (in dollars per share) | $ / shares	24.43
Vested (in dollars per share) | $ / shares	20.81
Unvested, Ending Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares	$ 24.61
Performance Shares
Awards
Unvested, Beginning Balance (in shares) | shares	676,688
Granted (in shares) | shares	1,153,932
Forfeited (in shares) | shares	(200,814)
Vested (in shares) | shares	(168,132)
Other (in shares) | shares	0
Unvested, Ending Balance (in shares) | shares	1,461,674
Weighted-Average Grant Date  Fair Value
Unvested, Beginning Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares	$ 22.14
Granted (in dollars per share) | $ / shares	29.91
Forfeited (in dollars per share) | $ / shares	28.28
Vested (in dollars per share) | $ / shares	23.17
Other (in dollars per share) | $ / shares	0
Unvested, Ending Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares	$ 28.58
Performance Shares | Parent
Awards
Unvested, Beginning Balance (in shares) | shares	2,806,126
Granted (in shares) | shares	0
Forfeited (in shares) | shares	(7,939)
Vested (in shares) | shares	(1,410,020)
Other (in shares) | shares	(1,325,420)
Unvested, Ending Balance (in shares) | shares	62,747
Weighted-Average Grant Date  Fair Value
Unvested, Beginning Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares	$ 21.86
Granted (in dollars per share) | $ / shares	0
Forfeited (in dollars per share) | $ / shares	27.18
Vested (in dollars per share) | $ / shares	23.94
Other (in dollars per share) | $ / shares	19.64
Unvested, Ending Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares	$ 21.28

XML

INCOME TAXES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Dec. 31, 2020	Jun. 30, 2019	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Contingency [Line Items]
Domestic operating income (loss)			$ (392)	$ (1,300)	$ (2,200)
Foreign operating income (loss)			223	169	131
Income tax expense (benefit)			(145)	(744)	(593)
Tax settlement benefit	$ 398
Recently drafted regulation		$ 63
Federal operating loss credit carryforward	13		2,700	13
Undistributed earnings of foreign subsidiaries			30
Additional taxes if undistributed earnings were remitted			8
Income tax penalties and interest accrued	$ 36		50	36
Unrecognized tax benefits, tax penalties and interest expense			14	(60)	21
Foreign Tax Authority
Income Tax Contingency [Line Items]
Income tax expense (benefit)			$ 59	$ 45	$ 34

XML

INCOME TAXES - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Current (expense) benefit	$ (129)	$ (5)	$ (71)
Deferred (expense) benefit	274	749	664
Income tax (expense) benefit	$ 145	$ 744	$ 593

XML

INCOME TAXES - Reconciliation of Tax Rate Amounts (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Expected income tax (expense) benefit	$ 36	$ 229	$ 433
Noncontrolling interest	69	50	51
Non-taxable investment income	80	92	74
Tax audit interest	(14)	(8)	(24)
State income taxes	(47)	(38)	(21)
Tax settlements/uncertain tax position release	0	398	63
Tax credits	28	21	0
Other	(7)	0	17
Income tax (expense) benefit	$ 145	$ 744	$ 593

XML

INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Assets
Compensation and related benefits	$ 273	$ 297
Net operating loss and credits	699	88
Reserves and reinsurance	2,281	1,528
Investments		461
Total	3,253	2,374
Liabilities
DAC	874	638
Unrealized investment gains/losses	965	1,790
Investments	794
Other	76	170
Total	$ 2,709	$ 2,598

XML

INCOME TAXES - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Beginning balance	$ 316	$ 501	$ 539
Additions for tax positions of prior years	11	241	25
Reductions for tax positions of prior years	(4)	(382)	(63)
Additions for tax positions of current year	0	0	0
Settlements with tax authorities	0	(44)	0
Ending balance	323	316	501
Unrecognized tax benefits that, if recognized, would impact the effective rate	$ 67	$ 77	$ 369

XML

COMMITMENTS AND CONTINGENT LIABILITIES - Narrative (Details) shares in Millions	1 Months Ended	12 Months Ended
	Apr. 30, 2019 USD ($) shares	Dec. 31, 2021 USD ($) saleAndDisclosurePractice	May 31, 2021 USD ($)	Feb. 29, 2016 USD ($) federalAction legalAction
Loss Contingencies [Line Items]
Unaccrued amounts of reasonably possible range of losses		$ 250,000,000
Number of sales and disclosure practices under investigation | saleAndDisclosurePractice		457
Federal home loan bank stock		$ 311,000,000
Carrying value of collateral pledged for federal home loan bank		12,500,000,000
Commitments by the Company to provide equity financing		1,300,000,000
Face amount of mortgage loans		863,000,000
Revolving credit facility
Loss Contingencies [Line Items]
Line of credit facility, maximum borrowing capacity		17,000,000
Trust Notes
Loss Contingencies [Line Items]
Line of credit facility, maximum borrowing capacity			$ 10,000,000,000
Equitable Financial
Loss Contingencies [Line Items]
Number of federal actions | federalAction				5
Equitable Financial | New York
Loss Contingencies [Line Items]
Number of actions | legalAction				2
Brach Family Foundation Litigation
Loss Contingencies [Line Items]
Liability for future policy benefits, face value of policy				$ 1,000,000
Sales and Disclosure Practices
Loss Contingencies [Line Items]
Civil monetary penalty		$ 50,000,000
Pre-Capitalized Trust Securities, Redeemable February 15, 2029
Loss Contingencies [Line Items]
Shares issued (in shares) | shares	0.6
Proceeds from offering	$ 600,000,000
Sale of stock, funding arrangement, period to issue senior notes to trust	10 years
Sale of stock, semi-annual facility fee, rate	2.125%
Pre-Capitalized Trust Securities, Redeemable February 15, 2049
Loss Contingencies [Line Items]
Shares issued (in shares) | shares	0.4
Proceeds from offering	$ 400,000,000
Sale of stock, funding arrangement, period to issue senior notes to trust	30 years
Sale of stock, semi-annual facility fee, rate	2.715%

XML

COMMITMENTS AND CONTINGENT LIABILITIES - Funding Agreements (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Federal Home Loan Bank (FHLB)
Restructuring Reserve [Roll Forward]
Outstanding Balance, period start	$ 6,890
Issued During the Period	60,257
Repaid During the Period	60,504
Long-term Agreements Maturing Within One Year	0
Long-term Agreements Maturing Within Five Years	0
Outstanding Balance, period end	6,643
Difference related to remaining amortization	4	$ 7
Funding Agreement-Backed Notes Program (FABN)
Restructuring Reserve [Roll Forward]
Outstanding Balance, period start	1,950
Issued During the Period	4,809
Repaid During the Period	0
Long-term Agreements Maturing Within One Year	0
Long-term Agreements Maturing Within Five Years	0
Foreign Currency Transaction Adjustment	(40)
Outstanding Balance, period end	6,719
Difference related to remaining amortization	70	$ 11
Due in one year or less | Federal Home Loan Bank (FHLB)
Restructuring Reserve [Roll Forward]
Outstanding Balance, period start	5,634
Issued During the Period	59,846
Repaid During the Period	60,504
Long-term Agreements Maturing Within One Year	377
Long-term Agreements Maturing Within Five Years	0
Outstanding Balance, period end	5,353
Due in one year or less | Funding Agreement-Backed Notes Program (FABN)
Restructuring Reserve [Roll Forward]
Outstanding Balance, period start	0
Issued During the Period	0
Repaid During the Period	0
Long-term Agreements Maturing Within One Year	0
Long-term Agreements Maturing Within Five Years	0
Foreign Currency Transaction Adjustment	0
Outstanding Balance, period end	0
Due in years two through five | Federal Home Loan Bank (FHLB)
Restructuring Reserve [Roll Forward]
Outstanding Balance, period start	722
Issued During the Period	411
Repaid During the Period	0
Long-term Agreements Maturing Within One Year	(377)
Long-term Agreements Maturing Within Five Years	534
Outstanding Balance, period end	1,290
Due in years two through five | Funding Agreement-Backed Notes Program (FABN)
Restructuring Reserve [Roll Forward]
Outstanding Balance, period start	1,150
Issued During the Period	3,450
Repaid During the Period	0
Long-term Agreements Maturing Within One Year	0
Long-term Agreements Maturing Within Five Years	0
Foreign Currency Transaction Adjustment	0
Outstanding Balance, period end	4,600
Due in more than five years | Federal Home Loan Bank (FHLB)
Restructuring Reserve [Roll Forward]
Outstanding Balance, period start	534
Issued During the Period	0
Repaid During the Period	0
Long-term Agreements Maturing Within One Year	0
Long-term Agreements Maturing Within Five Years	(534)
Outstanding Balance, period end	0
Due in more than five years | Funding Agreement-Backed Notes Program (FABN)
Restructuring Reserve [Roll Forward]
Outstanding Balance, period start	800
Issued During the Period	1,359
Repaid During the Period	0
Long-term Agreements Maturing Within One Year	0
Long-term Agreements Maturing Within Five Years	0
Foreign Currency Transaction Adjustment	(40)
Outstanding Balance, period end	2,119
Total long-term funding agreements | Federal Home Loan Bank (FHLB)
Restructuring Reserve [Roll Forward]
Outstanding Balance, period start	1,256
Issued During the Period	411
Repaid During the Period	0
Long-term Agreements Maturing Within One Year	(377)
Long-term Agreements Maturing Within Five Years	0
Outstanding Balance, period end	1,290
Total long-term funding agreements | Funding Agreement-Backed Notes Program (FABN)
Restructuring Reserve [Roll Forward]
Outstanding Balance, period start	1,950
Issued During the Period	4,809
Repaid During the Period	0
Long-term Agreements Maturing Within One Year	0
Long-term Agreements Maturing Within Five Years	0
Foreign Currency Transaction Adjustment	(40)
Outstanding Balance, period end	$ 6,719

XML

INSURANCE GROUP STATUTORY FINANCIAL INFORMATION - Statutory Financials (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Insurance Group Statutory Financial Information [Abstract]
Combined statutory net income (loss)	$ (936)	$ 396	$ 3,821
Combined surplus, capital stock and AVR	6,864	7,475
Combined securities on deposits n accordance with various government and state regulations	$ 65	$ 75

XML

INSURANCE GROUP STATUTORY FINANCIAL INFORMATION - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Jun. 30, 2021	Feb. 28, 2018
Statutory Accounting Practices [Abstract]
Shareholder dividends		$ 0	$ 2,100,000,000	$ 1,000,000,000
Statutory accounting practices, statutory surplus, increase		1,400,000,000
Statutory accounting practices, statutory net income, increase		$ 1,400,000,000
Statutory accounting practices, hedging losses amortization period		5 years
Statutory accounting practices, statutory unassigned surplus, balance					$ 0
Forecast
Statutory Accounting Practices [Abstract]
Shareholder dividends	$ 865,000,000
EQ AZ Life Re
Statutory Accounting Practices [Abstract]
Other restricted assets		$ 12,400,000,000
Revolving credit facility
Statutory Accounting Practices [Abstract]
Line of credit facility, maximum borrowing capacity		17,000,000
Holdings Revolving Credit Facility | Revolving credit facility
Statutory Accounting Practices [Abstract]
Line of credit facility, maximum borrowing capacity					$ 1,500,000,000	$ 2,500,000,000
Holdings Revolving Credit Facility | Revolving credit facility | EQ AZ Life Re
Statutory Accounting Practices [Abstract]
Line of credit facility, maximum borrowing capacity		$ 1,900,000,000

XML

BUSINESS SEGMENT INFORMATION - Narrative (Details)	12 Months Ended
	Dec. 31, 2021 segment
Segment Reporting [Abstract]
Number of reportable segments	4

XML

BUSINESS SEGMENT INFORMATION - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Net income (loss) attributable to Holdings		$ (439)	$ (648)	$ (1,764)
Adjustments related to:
Non-GAAP Operating Earnings		2,825	2,302	2,357
Legal expense		207
Interest expense		244	200	221
Adjustments
Segment Reporting Information [Line Items]
Net income (loss) attributable to Holdings		(439)	(648)	(1,764)
Adjustments related to:
Variable annuity product features		4,145	3,912	4,863
Investment (gains) losses, net		(867)	(744)	(73)
Net actuarial (gains) losses related to pension and other postretirement benefit obligations		120	109	99
Other adjustments		717	952	395
Income tax expense (benefit) related to above adjustments		(864)	(888)	(1,097)
Non-recurring tax items		13	(391)	(66)
COVID impact on variable annuity product features due to assumption updates	$ 1,500
Other COVID-19 impact			35
Other assumption updates due to COVID-19	$ 1,000
Other COVID-19 impact			86
Separation costs		82	108	222
COVID-19 impact on income tax (benefit)			(554)
Adjustments | Non-GMxB related derivative
Adjustments related to:
Gain (loss) on fair value hedges recognized in earnings		65	(404)	36
Operating Segments | Individual Retirement
Adjustments related to:
Non-GAAP Operating Earnings		1,444	1,536	1,598
Operating Segments | Group Retirement
Adjustments related to:
Non-GAAP Operating Earnings		631	491	390
Operating Segments | Investment Management and Research
Adjustments related to:
Non-GAAP Operating Earnings		564	432	381
Operating Segments | Protection Solutions
Adjustments related to:
Non-GAAP Operating Earnings		317	146	336
Corporate and Other
Adjustments related to:
Non-GAAP Operating Earnings		(131)	(303)	(348)
Interest expense		$ 241	$ 218	$ 228

XML

BUSINESS SEGMENT INFORMATION - Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Total revenues	$ 11,036	$ 12,415	$ 9,619
Adjustments related to:
Investment expenses	77	72	73
Operating Segments | Individual Retirement
Segment Reporting Information [Line Items]
Total revenues	3,785	4,311	4,325
Operating Segments | Group Retirement
Segment Reporting Information [Line Items]
Total revenues	1,372	1,148	1,077
Operating Segments | Investment Management and Research
Segment Reporting Information [Line Items]
Total revenues	4,430	3,703	3,479
Operating Segments | Protection Solutions
Segment Reporting Information [Line Items]
Total revenues	3,358	3,144	3,366
Corporate and Other
Segment Reporting Information [Line Items]
Total revenues	1,563	1,207	1,228
Adjustments
Adjustments related to:
Variable annuity product features	(4,268)	(2,284)	(3,935)
Investment gains (losses), net	867	744	73
Other adjustments to segment revenues	(71)	442	6
Assumption updates due to COVID-19		46
Other COVID-19 related impact		(30)
Intersegment Eliminations
Adjustments related to:
Investment expenses	128	71	76
Intersegment Eliminations | Investment management and other fees
Adjustments related to:
Revenues	$ 126	$ 113	$ 104

XML

BUSINESS SEGMENT INFORMATION - Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Total assets	$ 292,262	$ 275,397
Operating Segments | Individual Retirement
Segment Reporting Information [Line Items]
Total assets	143,663	135,764
Operating Segments | Group Retirement
Segment Reporting Information [Line Items]
Total assets	55,368	51,466
Operating Segments | Investment Management and Research
Segment Reporting Information [Line Items]
Total assets	11,602	11,179
Operating Segments | Protection Solutions
Segment Reporting Information [Line Items]
Total assets	50,686	48,568
Corporate and Other
Segment Reporting Information [Line Items]
Total assets	$ 30,943	$ 28,420

XML

EQUITY - Preferred Stock Activity (Details) - shares	Dec. 31, 2021	Dec. 31, 2020
Class of Stock [Line Items]
Preferred stock, shares authorized (in shares)	64,000	52,000
Preferred stock, shares issued (in shares)	64,000	52,000
Preferred stock, shares outstanding (in shares)	64,000	52,000
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized (in shares)	32,000	32,000
Preferred stock, shares issued (in shares)	32,000	32,000
Preferred stock, shares outstanding (in shares)	32,000	32,000
Series B Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized (in shares)	20,000	20,000
Preferred stock, shares issued (in shares)	20,000	20,000
Preferred stock, shares outstanding (in shares)	20,000	20,000
Series C Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares authorized (in shares)	12,000	0
Preferred stock, shares issued (in shares)	12,000	0
Preferred stock, shares outstanding (in shares)	12,000	0

XML

EQUITY - Preferred Stock (Details)					2 Months Ended
	Dec. 15, 2025	Dec. 24, 2024 $ / shares	Jan. 08, 2021 USD ($) $ / shares shares	Aug. 11, 2020 USD ($) $ / shares shares	Dec. 31, 2019 USD ($) $ / shares shares	Dec. 15, 2024 $ / shares	Dec. 31, 2021 USD ($) $ / shares	Dec. 31, 2020 USD ($) $ / shares
Class of Stock [Line Items]
Preferred stock par value (in dollars per share) | $ / shares							$ 1	$ 1
Preferred stock, liquidation preference							$ 25,000	$ 25,000
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Depositary stock, shares issued (in shares) | shares					32,000,000
Conversion to preferred stock from depositary stock					0.001
Preferred stock par value (in dollars per share) | $ / shares					$ 1.00
Preferred stock, liquidation preference					$ 25,000
Proceeds from offering					775,000,000
Sale of stock, consideration received per transaction					$ 800,000,000
Preferred stock, dividend rate, percentage					5.25%
Payments of stock issuance costs					$ 25,000,000
Series A Preferred Stock [Member] | Forecast
Class of Stock [Line Items]
Preferred stock, redemption price per share (in dollars per share) | $ / shares		$ 25,500				$ 25,000
Preferred stock, redemption price, rating agency period		90 days
Preferred stock, additional events, redemption price per share (in dollars per share) | $ / shares		$ 25,000
Series B Preferred Stock [Member]
Class of Stock [Line Items]
Depositary stock, shares issued (in shares) | shares				500,000
Conversion to preferred stock from depositary stock				0.04
Preferred stock par value (in dollars per share) | $ / shares				$ 1.00
Preferred stock, liquidation preference				$ 25,000
Proceeds from offering				494,000,000
Sale of stock, consideration received per transaction				$ 500,000,000
Preferred stock, dividend rate, percentage				4.95%
Payments of stock issuance costs				$ 6,000,000
Preferred stock, redemption price per share (in dollars per share) | $ / shares				$ 25,000
Preferred stock, redemption price, rating agency period				90 days
Preferred stock, dividend rate, reassessment period				5 years
Preferred stock, redemption price, rating agency per share (in dollars per share) | $ / shares				$ 25,500
Preferred stock, redemption price, regulatory capital per share (in dollars per share) | $ / shares				$ 25,000
Series B Preferred Stock [Member] | Forecast
Class of Stock [Line Items]
Preferred stock, basis spread, percentage	4.736%
Series C Preferred Stock
Class of Stock [Line Items]
Depositary stock, shares issued (in shares) | shares			12,000,000
Conversion to preferred stock from depositary stock			0.001
Preferred stock par value (in dollars per share) | $ / shares			$ 1.00
Preferred stock, liquidation preference			$ 25,000
Proceeds from offering			293,000,000
Sale of stock, consideration received per transaction			$ 300,000,000
Preferred stock, dividend rate, percentage			4.30%

XML

EQUITY - Dividends Declared (Details) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Class of Stock [Line Items]
Cash dividends declared per common share (in dollars per share)	$ 0.71	$ 0.66	$ 0.58
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Cash dividends declared per preferred stock (in dollars per share)	1,313	1,378	0
Series B Preferred Stock [Member]
Class of Stock [Line Items]
Cash dividends declared per preferred stock (in dollars per share)	1,238	426	0
Series C Preferred Stock
Class of Stock [Line Items]
Cash dividends declared per preferred stock (in dollars per share)	$ 1,006	$ 0	$ 0

XML

EQUITY - Share Repurchase (Details) - USD ($)			1 Months Ended					3 Months Ended			12 Months Ended
	Dec. 22, 2021	Jan. 01, 2019	Jan. 31, 2022	Nov. 30, 2021	Sep. 30, 2021	May 31, 2021	Mar. 31, 2021	Sep. 30, 2021	Mar. 31, 2021	Mar. 31, 2019	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Feb. 09, 2022	Jul. 02, 2021	Jun. 30, 2021	Feb. 17, 2021	Jan. 31, 2021	Oct. 23, 2020	Feb. 26, 2020	Nov. 06, 2019
Class of Stock [Line Items]
Share repurchase plan, authorized amount																	$ 1,000,000,000			$ 600,000,000	$ 400,000,000
Share repurchase program, number of shares authorized to be repurchased (in shares)											1,000,000,000
Share repurchase program, remaining authorized repurchase amount											$ 5,000,000
Payments for repurchase of common shares											$ 1,637,000,000	$ 430,000,000	$ 1,350,000,000
Treasury stock reissued (in shares)											2,300,000	743,000	387,000
Retirement of common stock (in shares)											32,000,000	0	8,100,000
Subsequent Event
Class of Stock [Line Items]
Share repurchase plan, authorized amount														$ 1,200,000,000
Accelerated Share Repurchase Agreement
Class of Stock [Line Items]
Shares repurchased (in shares)											51,900,000	23,700,000	65,600,000
Payments for repurchase of common shares											$ 1,600,000,000	$ 430,000,000	$ 1,300,000,000
Accelerated Share Repurchase Agreement, January 2019
Class of Stock [Line Items]
Share repurchase plan, authorized amount		$ 150,000,000
Accelerated share repurchases, settlement payment		$ 150,000,000
Shares repurchased (in shares)		7,000,000								1,000,000
Accelerated share repurchases, average purchase price (in dollars per share)										$ 18.51
Accelerated Share Repurchase Agreement, January 2021
Class of Stock [Line Items]
Share repurchase plan, authorized amount																		$ 170,000,000
Shares repurchased (in shares)									6,300,000
Accelerated Share Repurchase Agreement, March 2021
Class of Stock [Line Items]
Share repurchase plan, authorized amount							$ 200,000,000		$ 200,000,000
Accelerated share repurchases, settlement payment							$ 200,000,000		$ 200,000,000
Shares repurchased (in shares)						1,100,000	4,900,000
Accelerated Share Repurchase Agreement, June 2021
Class of Stock [Line Items]
Share repurchase plan, authorized amount																$ 300,000,000
Accelerated share repurchases, settlement payment															$ 300,000,000
Shares repurchased (in shares)								9,900,000
Accelerated Share Repurchase Agreement, September 2021
Class of Stock [Line Items]
Share repurchase plan, authorized amount					$ 200,000,000			$ 200,000,000
Accelerated share repurchases, settlement payment					$ 200,000,000			$ 200,000,000
Shares repurchased (in shares)				600,000	5,600,000
Accelerated Share Repurchase Agreement, December 22, 2021
Class of Stock [Line Items]
Share repurchase plan, authorized amount	$ 140,000,000
Accelerated share repurchases, settlement payment	$ 140,000,000
Shares repurchased (in shares)	3,400,000
Accelerated Share Repurchase Agreement, December 22, 2021 | Subsequent Event
Class of Stock [Line Items]
Shares repurchased (in shares)			700,000
Venerable
Class of Stock [Line Items]
Share repurchase program, additional authorized amount											$ 500,000,000								$ 500,000,000

XML

EQUITY - Cumulative Gains (Losses) (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Equity [Abstract]
Unrealized gains (losses) on investments	$ 2,684	$ 4,797
Defined benefit pension plans	(669)	(935)
Foreign currency translation adjustments	(45)	(34)
Total accumulated other comprehensive income (loss)	1,970	3,828
Less: Accumulated other comprehensive income (loss) attributable to noncontrolling interest	(34)	(35)
Accumulated other comprehensive income (loss) attributable to Holdings	$ 2,004	$ 3,863

XML

EQUITY - Components of OCI, Net of Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Equity [Abstract]
Net unrealized gains (losses) arising during the period	$ (2,467)	$ 4,887	$ 3,301
(Gains) losses reclassified into net income (loss) during the period	(698)	(653)	(161)
Net unrealized gains (losses) on investments	(3,165)	4,234	3,140
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other	1,052	(1,278)	(882)
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(562), $786, and $595)	(2,113)	2,956	2,258
Change in defined benefit plans:
Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost	266	48	(15)
Change in defined benefit plans (net of deferred income tax expense (benefit) of $68, $14, and $10)	266	48	(15)
Foreign currency translation adjustments:
Foreign currency translation gains (losses) arising during the period	(11)	22	5
(Gains) losses reclassified into net income (loss) during the period	0	0	0
Foreign currency translation adjustment	(11)	22	5
Total other comprehensive income (loss), net of income taxes	(1,858)	3,026	2,248
Less: Other comprehensive income (loss) attributable to noncontrolling interest	1	7	(4)
Other comprehensive income (loss) attributable to Holdings	(1,859)	3,019	2,252
Reclassification adjustment	186	(174)	(43)
AFS Securities, OCI, tax	(562)	786	595
Defined benefit plan, OCI, tax	$ 68	$ 14	$ 10

XML

EARNINGS PER COMMON SHARE - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Earnings Per Share [Abstract]
Weighted average number of shares outstanding - basic (in shares)	417.4	450.4	493.6
Effect of dilutive securities common shares, employee stock awards (in shares)	0.0	0.0	0.0
Diluted (in shares)	417.4	450.4	493.6
Net income (loss)	$ (24)	$ (349)	$ (1,467)
Less: Net income (loss) attributable to the noncontrolling interest	415	299	297
Net income (loss) attributable to Holdings	(439)	(648)	(1,764)
Less: Preferred stock dividends	79	53	0
Net income (loss) available to Holdings’ common shareholders	(518)	(701)	(1,764)
Net income (loss) available to Holdings’ common shareholders	$ (518)	$ (701)	$ (1,764)
Net income (loss) attributable to Holdings per common share:
Basic (in dollars per share)	$ (1.24)	$ (1.56)	$ (3.57)
Diluted (in dollars per share)	$ (1.24)	$ (1.56)	$ (3.57)
Effect of dilutive securities (in shares)	3.8	1.7	0.8

XML

EARNINGS PER COMMON SHARE - Narrative (Details) - shares shares in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Earnings Per Share [Abstract]
Antidilutive securities (in shares)	8.2	10.0	6.2

XML

REDEEMABLE NONCONTROLLING INTEREST - Summary of Redeemable Noncontrolling Interest (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021		Dec. 31, 2020		Dec. 31, 2019
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Balance, beginning of period	$ 143	[1],[2]	$ 365		$ 187
Net earnings (loss) attributable to redeemable noncontrolling interests	5		(3)		34
Purchase/change of redeemable noncontrolling interests	320		(219)		144
Balance, end of period	$ 468	[1],[2]	$ 143	[1],[2]	$ 365

[1] See Note 2 of the Notes to these Consolidated Financial Statements for details of balances with VIEs.

[2] See Note 22 of the Notes to these Consolidated Financial Statements for details of redeemable noncontrolling interest.

XML

HELD-FOR-SALE - Narrative (Details) - USD ($) $ in Millions		12 Months Ended
	Jun. 01, 2021	Dec. 31, 2021	Dec. 31, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets held-for-sale		$ 0	$ 470
Liabilities held-for-sale		0	322
Corporate Solutions Life Reinsurance Company (CS Life) | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Investment impairment			15
Gain on disposal	$ 1
Investment impairment, recovered		$ 15
Assets held-for-sale			470
Liabilities held-for-sale			$ 322

XML

HELD-FOR-SALE - Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Assets:
Total assets held-for-sale	$ 0	$ 470
Liabilities:
Total liabilities held-for-sale	$ 0	322
Corporate Solutions Life Reinsurance Company (CS Life) | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations
Assets:
Fixed maturity securities		235
Trading securities, at fair value		189
Other invested assets		1
Cash and cash equivalents		39
Other assets		25
Assets held-for-sale		489
Less: Loss accrual		(19)
Total assets held-for-sale		470
Liabilities:
Future policy benefits and other policyholders’ liabilities		320
Broker-dealer related payables		0
Other liabilities		2
Total liabilities held-for-sale		$ 322

XML

SUBSEQUENT EVENTS - Narrative (Details) - USD ($)	Feb. 09, 2022	Feb. 17, 2021	Feb. 26, 2020	Nov. 06, 2019
Subsequent Event [Line Items]
Share repurchase plan, authorized amount		$ 1,000,000,000	$ 600,000,000	$ 400,000,000
Subsequent Event
Subsequent Event [Line Items]
Share repurchase plan, authorized amount	$ 1,200,000,000

XML

SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES (Details) $ in Millions	Dec. 31, 2021 USD ($)
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Cost	$ 99,997
Fair Value	106,412
Carrying Value	105,111
U.S. government, agencies and authorities
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Cost	13,056
Fair Value	15,385
Carrying Value	15,385
State and Political Subdivisions
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Cost	586
Fair Value	662
Carrying Value	662
Foreign governments
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Cost	1,124
Fair Value	1,152
Carrying Value	1,152
Public utilities
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Cost	6,493
Fair Value	6,807
Carrying Value	6,807
All other corporate bonds
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Cost	43,679
Fair Value	45,704
Carrying Value	45,704
Residential mortgage-backed
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Cost	90
Fair Value	98
Carrying Value	98
Asset-backed
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Cost	5,933
Fair Value	5,934
Carrying Value	5,934
Commercial mortgage-backed
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Cost	2,427
Fair Value	2,421
Carrying Value	2,421
Redeemable Preferred Stock
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Cost	41
Fair Value	53
Carrying Value	53
Fixed maturities, AFS
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Cost	73,429
Fair Value	78,216
Carrying Value	78,216
Fixed maturities, at fair value using the fair value option
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Cost	1,637
Fair Value	1,641
Carrying Value	1,641
Mortgage loans on real estate
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Cost	14,095
Fair Value	14,308
Carrying Value	14,033
Policy loans
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Cost	4,024
Fair Value	5,050
Carrying Value	4,024
Other equity investments
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Cost	2,662
Fair Value	2,975
Carrying Value	2,975
Trading securities
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Cost	559
Fair Value	631
Carrying Value	631
Other invested assets
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Cost	3,591
Fair Value	3,591
Carrying Value	$ 3,591

XML

SCHEDULE II - PARENT COMPANY - Balance Sheet (Details) - USD ($)		Dec. 31, 2021	Dec. 31, 2020
ASSETS
Fixed maturities, AFS at fair value		$ 78,216,000,000	$ 81,638,000,000
Other equity investments	[1]	2,975,000,000	1,502,000,000
Total investments		105,111,000,000	109,087,000,000
Cash and cash equivalents	[1]	5,188,000,000	6,179,000,000
Goodwill and other intangible assets, net		4,728,000,000	4,737,000,000
Other assets	[1]	3,613,000,000	3,701,000,000
Total Assets		292,262,000,000	275,397,000,000
LIABILITIES
Short-term and long-term debt		3,931,000,000	4,115,000,000
Total Liabilities		278,699,000,000	258,077,000,000
Equity attributable to Holdings:
Common stock, $0.01 par value, 2,000,000,000 shares authorized; 520,918,331 and 552,896,328 shares issued, respectively; 391,290,224 and 440,776,011 shares outstanding, respectively		4,000,000	5,000,000
Additional paid-in capital		1,919,000,000	1,985,000,000
Treasury stock, at cost, 129,628,107 and 112,120,317 shares, respectively		(2,850,000,000)	(2,245,000,000)
Retained earnings		8,880,000,000	10,699,000,000
Accumulated other comprehensive income (loss)		2,004,000,000	3,863,000,000
Total equity attributable to Holdings		11,519,000,000	15,576,000,000
Total Liabilities, Redeemable Noncontrolling Interest and Equity		292,262,000,000	275,397,000,000
Fixed maturities available-for-sale, amortized cost		$ 73,429,000,000	$ 72,867,000,000
Preferred stock par value (in dollars per share)		$ 1	$ 1
Preferred stock, liquidation preference		$ 25,000	$ 25,000
Common stock par value (in dollars per share)		$ 0.01	$ 0.01
Common stock authorized (in shares)		2,000,000,000	2,000,000,000
Common stock issued (in shares)		520,918,331	552,896,328
Common stock outstanding (in shares)		391,290,224	440,776,011
Treasury stock (in shares)		129,628,107	112,120,317
Parent
ASSETS
Investment in consolidated subsidiaries		$ 13,128,000,000	$ 15,603,000,000
Fixed maturities, AFS at fair value		874,000,000	1,116,000,000
Other equity investments		92,000,000	66,000,000
Total investments		14,094,000,000	16,785,000,000
Cash and cash equivalents		867,000,000	1,972,000,000
Goodwill and other intangible assets, net		1,255,000,000	1,245,000,000
Loans to affiliates		755,000,000	675,000,000
Current and deferred income taxes assets		600,000,000	209,000,000
Other assets		547,000,000	903,000,000
Total Assets		18,118,000,000	21,789,000,000
LIABILITIES
Short-term and long-term debt		3,839,000,000	4,115,000,000
Employee benefits liabilities		853,000,000	1,177,000,000
Loans from affiliates		1,900,000,000	900,000,000
Accrued liabilities		7,000,000	21,000,000
Total Liabilities		6,599,000,000	6,213,000,000
Equity attributable to Holdings:
Preferred stock and additional paid-in capital, par value $1.00 per share; $25,000 liquidation preference		1,562,000,000	1,269,000,000
Common stock, $0.01 par value, 2,000,000,000 shares authorized; 520,918,331 and 552,896,328 shares issued, respectively; 391,290,224 and 440,776,011 shares outstanding, respectively		4,000,000	5,000,000
Additional paid-in capital		1,919,000,000	1,985,000,000
Treasury stock, at cost, 129,628,107 and 112,120,317 shares, respectively		(2,850,000,000)	(2,245,000,000)
Retained earnings		8,880,000,000	10,699,000,000
Accumulated other comprehensive income (loss)		2,004,000,000	3,863,000,000
Total equity attributable to Holdings		11,519,000,000	15,576,000,000
Total Liabilities, Redeemable Noncontrolling Interest and Equity		18,118,000,000	21,789,000,000
Fixed maturities available-for-sale, amortized cost		$ 884,000,000	$ 183,000,000
Preferred stock par value (in dollars per share)		$ 1	$ 1
Preferred stock, liquidation preference		$ 25,000	$ 25,000
Common stock par value (in dollars per share)		$ 0.01	$ 0.01
Common stock authorized (in shares)		2,000,000,000	2,000,000,000
Common stock issued (in shares)		520,918,331	552,896,328
Common stock outstanding (in shares)		391,290,224	440,776,011
Treasury stock (in shares)		129,628,107	112,120,317

[1] See Note 2 of the Notes to these Consolidated Financial Statements for details of balances with VIEs.

XML

SCHEDULE II - PARENT COMPANY - Statement of Income (Loss) and Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
REVENUES
Investment gains (losses), net	$ 863	$ 872	$ 206
Other income	795	576	554
Total revenues	11,036	12,415	9,619
EXPENSES
Interest expense	244	200	221
Other operating costs and expenses	2,109	1,700	1,890
Income (loss) from continuing operations, before income taxes	(169)	(1,093)	(2,060)
Income tax (expense) benefit	145	744	593
Net income (loss)	(24)	(349)	(1,467)
Less: Preferred stock dividends	79	53	0
Net income (loss) available to Holdings’ common shareholders	(518)	(701)	(1,764)
Net income (loss) available to Holdings’ common shareholders	(518)	(701)	(1,764)
Other comprehensive income (loss)	(1,858)	3,026	2,248
Comprehensive income (loss) attributable to Holdings	(2,298)	2,371	488
Parent
REVENUES
Equity in income (losses) from continuing operations of consolidated subsidiaries	(152)	(668)	(1,592)
Net investment income (loss)	26	26	29
Investment gains (losses), net	(12)	0	(1)
Other income	0	0	12
Total revenues	(138)	(642)	(1,552)
EXPENSES
Interest expense	241	229	237
Other operating costs and expenses	58	40	83
Total expenses	299	269	320
Income (loss) from continuing operations, before income taxes	(437)	(911)	(1,872)
Income tax (expense) benefit	(2)	263	108
Net income (loss)	(439)	(648)	(1,764)
Less: Preferred stock dividends	79	53	0
Net income (loss) available to Holdings’ common shareholders	(518)	(701)	(1,764)
Net income (loss) available to Holdings’ common shareholders	(518)	(701)	(1,764)
Other comprehensive income (loss)	(1,859)	3,019	2,252
Comprehensive income (loss) attributable to Holdings	$ (2,377)	$ 2,318	$ 488

XML

SCHEDULE II - PARENT COMPANY - Statement of Cash Flows (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Condensed Financial Statements, Captions [Line Items]
Net income (loss)	$ (24)	$ (349)	$ (1,467)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Non-cash long term incentive compensation expense	226	210	278
Equity (income) loss from limited partnerships	(553)	(83)	(92)
Other, net	476	(209)	(164)
Net cash provided by (used in) operating activities	(756)	(61)	(216)
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale	34,434	18,986	13,327
Short term investments	87	1,497	2,643
Payment for the purchase/origination of:
Fixed maturities, available for sale	(43,344)	(28,197)	(29,610)
Short term investments	(18)	(1,098)	(2,776)
Other	(2,553)	(1,167)	(430)
Net cash provided by (used in) investing activities	(12,689)	(7,823)	(8,496)
Cash flows from financing activities:
Issuance of preferred stock	293	494	775
Shareholder dividends paid	(296)	(297)	(285)
Preferred dividends paid	(79)	(53)	0
Purchase of treasury shares	(1,637)	(430)	(1,350)
Other, net	(47)	48	20
Net cash provided by (used in) financing activities	12,511	9,674	8,705
Change in cash and cash equivalents	(952)	1,813	1
Cash and cash equivalents, beginning of year	6,179	4,405	4,469
Cash and cash equivalents, end of year	5,188	6,179	4,405
Parent
Condensed Financial Statements, Captions [Line Items]
Net income (loss)	(439)	(648)	(1,764)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity in net (earnings) loss of subsidiaries	152	668	1,592
Non-cash long term incentive compensation expense	15	27	69
Amortization and depreciation	60	40	33
Equity (income) loss from limited partnerships	(19)	(8)	1
Current and deferred taxes	(151)	(250)	202
Dividends from subsidiaries	792	2,877	1,341
Other, net	14	(135)	(76)
Net cash provided by (used in) operating activities	424	2,571	1,398
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale	210	131	105
Short term investments	0	0	80
Payment for the purchase/origination of:
Fixed maturities, available for sale	0	(1,011)	0
Short term investments	0	0	0
Other	(7)	(21)	(14)
Net issuance on credit facilities to affiliates	(80)	(115)	(560)
Repayments of loans to affiliates	0	0	572
Proceeds from the sale of subsidiary	215	0	0
Increase in cash and cash equivalents from merger of AXA Tech	0	0	11
Net cash provided by (used in) investing activities	338	(1,016)	194
Cash flows from financing activities:
Issuance of preferred stock	293	494	775
Repayment of long-term debt	(280)	0	(300)
Proceeds from loans from affiliates	1,000	0	900
Repayment of loans from affiliates	0	(300)	(300)
Shareholder dividends paid	(296)	(297)	(285)
Preferred dividends paid	(79)	(53)	0
Purchase of treasury shares	(1,637)	(430)	(1,350)
Capital contribution to subsidiaries	(815)	(350)	(86)
Other, net	(53)	0	0
Net cash provided by (used in) financing activities	(1,867)	(936)	(646)
Change in cash and cash equivalents	(1,105)	619	946
Cash and cash equivalents, beginning of year	1,972	1,353	407
Cash and cash equivalents, end of year	867	1,972	1,353
Non-cash transactions from investing and financing activities:
Dividend of AB Units from subsidiary	23	0	0
Other assets	0	0	4
Other liabilities	$ 0	$ 0	$ (16)

XML

SCHEDULE II - PARENT COMPANY - Narrative (Details) - Parent - USD ($)	1 Months Ended					12 Months Ended
	Jun. 30, 2021	Dec. 31, 2019	Nov. 30, 2019	Dec. 31, 2018	Apr. 30, 2018	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Nov. 04, 2019
Condensed Financial Statements, Captions [Line Items]
Loans from affiliates						$ 1,900,000,000	$ 900,000,000
Proceeds from loans from affiliates						1,000,000,000	0	$ 900,000,000
Repayment of loans from affiliates						0	300,000,000	300,000,000
Interest expense, related party						30,000,000	32,000,000	$ 26,000,000
EQH Facility
Condensed Financial Statements, Captions [Line Items]
Line of credit facility, maximum borrowing capacity										$ 900,000,000
Letters of credit						755,000,000	$ 675,000,000
Term loan, 10 year, 3.23 percent
Condensed Financial Statements, Captions [Line Items]
Related party transaction, rate (as a percent)	3.23%
Proceeds from loans from affiliates	$ 1,000,000,000
Debt, term	10 years
EQH-AEL internal debt (one-month LIBOR 1.33%, due 2024)
Condensed Financial Statements, Captions [Line Items]
Proceeds from loans from affiliates			$ 900,000,000
Repayment of loans from affiliates						$ 900,000,000
EQH-AEL internal debt (one-month LIBOR 1.33%, due 2024) | LIBOR
Condensed Financial Statements, Captions [Line Items]
Related party transaction, rate (as a percent)			1.33%
EQH-AEL internal debt (3.69%, due 2021)
Condensed Financial Statements, Captions [Line Items]
Related party transaction, rate (as a percent)					3.69%
Proceeds from loans from affiliates					$ 800,000,000
Repayment of loans from affiliates		$ 300,000,000		$ 200,000,000
Equitable Financial
Condensed Financial Statements, Captions [Line Items]
Loans from affiliates				$ 572,000,000					$ 572,000,000
Related party transaction, rate (as a percent)									3.75%

XML

SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]
Deferred policy acquisition costs	$ 5,491	$ 4,243	$ 5,837
Policyholders’ account balances	79,357	66,820	58,879
Future policy benefits and other policyholders' liabilities	36,717	39,881	34,635
Policy charges and premium revenue	4,597	4,732	4,925
Net derivative gains (losses)	(4,465)	(1,722)	(4,012)
Net investment income (loss)	3,846	3,477	3,699
Policyholders’ benefits and interest credited	4,437	6,548	5,648
Amortization of deferred policy acquisition costs	393	1,613	597
All other operating expense	6,375	5,347	5,434
Corporate and Other
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]
Deferred policy acquisition costs	10	15	13
Policyholders’ account balances	12,825	8,381	6,362
Future policy benefits and other policyholders' liabilities	8,967	9,629	10,071
Policy charges and premium revenue	343	390	413
Net derivative gains (losses)	46	(98)	(102)
Net investment income (loss)	747	519	562
Policyholders’ benefits and interest credited	744	785	851
Amortization of deferred policy acquisition costs	2	(1)	5
All other operating expense	1,178	978	1,046
Individual Retirement | Operating Segments
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]
Deferred policy acquisition costs	3,639	3,178	3,285
Policyholders’ account balances	38,456	30,736	26,359
Future policy benefits and other policyholders' liabilities	22,904	25,212	20,401
Policy charges and premium revenue	1,867	2,034	2,085
Net derivative gains (losses)	(4,386)	(1,999)	(3,850)
Net investment income (loss)	1,221	1,337	1,478
Policyholders’ benefits and interest credited	912	3,086	2,321
Amortization of deferred policy acquisition costs	294	321	283
All other operating expense	814	724	785
Group Retirement | Operating Segments
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]
Deferred policy acquisition costs	776	632	659
Policyholders’ account balances	13,049	12,828	12,068
Future policy benefits and other policyholders' liabilities	3	9	7
Policy charges and premium revenue	371	295	279
Net derivative gains (losses)	(29)	(2)	6
Net investment income (loss)	751	644	593
Policyholders’ benefits and interest credited	303	305	304
Amortization of deferred policy acquisition costs	2	73	35
All other operating expense	362	284	318
Investment Management and Research | Operating Segments
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]
Deferred policy acquisition costs	0	0	0
Policyholders’ account balances	0	0	0
Future policy benefits and other policyholders' liabilities	0	0	0
Policy charges and premium revenue	0	0	0
Net derivative gains (losses)	(13)	(36)	(38)
Net investment income (loss)	25	36	99
Policyholders’ benefits and interest credited	0	0	0
Amortization of deferred policy acquisition costs	0	0	0
All other operating expense	3,241	2,815	2,709
Protection Solutions | Operating Segments
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]
Deferred policy acquisition costs	1,066	418	1,880
Policyholders’ account balances	15,027	14,875	14,090
Future policy benefits and other policyholders' liabilities	4,843	5,031	4,156
Policy charges and premium revenue	2,016	2,013	2,148
Net derivative gains (losses)	(83)	413	(28)
Net investment income (loss)	1,102	941	967
Policyholders’ benefits and interest credited	2,478	2,372	2,172
Amortization of deferred policy acquisition costs	95	1,220	274
All other operating expense	$ 780	$ 546	$ 576

XML

SCHEDULE IV - REINSURANCE (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Life insurance in-force
Gross Amount	$ 484,082	$ 473,514	$ 492,780
Ceded to Other Companies	185,203	94,231	65,427
Assumed from Other Companies	31,971	33,098	32,365
Net Amount	330,850	412,381	459,718
Premiums
Gross Amount	970	929	1,068
Ceded to Other Companies	199	154	141
Assumed from Other Companies	189	222	220
Premiums	$ 960	$ 997	$ 1,147
Percentage of Amount Assumed to Net	9.70%	8.00%	7.00%
Percentage of Amount Assumed to Net	19.70%	22.30%	19.20%
Life insurance and annuities
Premiums
Gross Amount	$ 802	$ 805	$ 971
Ceded to Other Companies	155	113	101
Assumed from Other Companies	181	213	211
Premiums	$ 828	$ 905	$ 1,081
Percentage of Amount Assumed to Net	21.90%	23.50%	19.50%
Accident and health
Premiums
Gross Amount	$ 168	$ 124	$ 97
Ceded to Other Companies	44	41	40
Assumed from Other Companies	8	9	9
Premiums	$ 132	$ 92	$ 66
Percentage of Amount Assumed to Net	6.10%	9.80%	13.60%