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EQH Equitable

Filed: 6 May 21, 9:03am
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
———————————————
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 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
————————————————
eqh-20210331_g1.jpg
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 classTrading symbolName of each exchange on which registered
Common StockEQHNew York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series AEQH PR ANew York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series CEQH PR CNew York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
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 filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging 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. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No
As of May 4, 2021, 428,272,746 shares of the registrant’s Common Stock, $0.01 par value, were outstanding.


TABLE OF CONTENTS
 Page
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.



NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATION
Certain of the statements included or incorporated by reference in this Quarterly Report on Form 10-Q 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.
Forward-looking statements should be read in conjunction with the other cautionary statements, risks, uncertainties and other factors identified in Holdings’ Annual Report on Form 10-K for the year ended December 31, 2020, as amended or supplemented in our subsequently filed Quarterly Reports on Form 10-Q, including in the section entitled “Risk Factors,” and elsewhere in this Quarterly Report on Form 10-Q. You should read this Form 10-Q completely and with the understanding the actual future results may be materially different from expectations. 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”, in our Annual Report on Form 10-K 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” in our Annual Report on Form 10-K to better understand the risks and uncertainties inherent in our business and underlying any forward-looking statements.
Throughout this Quarterly Report on Form 10-Q we use certain defined terms and abbreviations, which are summarized in the “Glossary” and “Acronyms” sections.
2

Part I FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements

3

EQUITABLE HOLDINGS, INC.
Consolidated Balance Sheets
March 31, 2021 (Unaudited) and December 31, 2020
March 31,December 31,
20212020
(in millions, except share data)
ASSETS
Investments:
Fixed maturities available-for-sale, at fair value (amortized cost of $73,734 and $72,867) (allowance for credit losses of $19 and $13)$77,161 $81,638 
Fixed maturities, at fair value using the fair value option (1)844 389 
Mortgage loans on real estate (net of allowance for credit losses of $74 and $81)13,280 13,159 
Policy loans4,091 4,118 
Other equity investments (1)2,387 1,502 
Trading securities, at fair value4,821 5,553 
Other invested assets (1)2,913 2,728 
Total investments105,497 109,087 
Cash and cash equivalents (1)6,795 6,179 
Cash and securities segregated, at fair value1,413 1,753 
Broker-dealer related receivables2,361 2,223 
Deferred policy acquisition costs4,943 4,243 
Goodwill and other intangible assets, net4,744 4,737 
Amounts due from reinsurers (allowance for credit losses of $5 and $5)4,526 4,566 
GMIB reinsurance contract asset, at fair value1,907 2,488 
Current and deferred income taxes509 
Other assets (1)3,859 3,701 
Assets held-for-sale483 470 
Separate Accounts assets139,795 135,950 
Total Assets$276,832 $275,397 
LIABILITIES
Policyholders’ account balances$73,303 $66,820 
Future policy benefits and other policyholders' liabilities35,922 39,881 
Broker-dealer related payables2,283 1,443 
Customer related payables3,179 3,417 
Amounts due to reinsurers1,340 1,381 
Short-term and long-term debt4,022 4,115 
Current and deferred income taxes0 749 
Notes issued by consolidated variable interest entities, at fair value using the fair value option (1)323 313 
Other liabilities (1)3,990 3,686 
Liabilities held-for-sale270 322 
Separate Accounts liabilities139,795 135,950 
Total Liabilities$264,427 $258,077 
Redeemable noncontrolling interest (1) (2)$137 $143 
Commitments and contingent liabilities (Note 12)00
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; 541,662,121 and 552,896,328 shares issued, respectively; 428,451,410 and 440,776,011 shares outstanding, respectively5 
Additional paid-in capital1,928 1,985 
Treasury stock, at cost, 113,210,711 and 112,120,317 shares, respectively(2,300)(2,245)
Retained earnings8,758 10,699 
Accumulated other comprehensive income (loss)740 3,863 
Total equity attributable to Holdings10,693 15,576 
Noncontrolling interest1,575 1,601 
Total Equity12,268 17,177 
Total Liabilities, Redeemable Noncontrolling Interest and Equity$276,832 $275,397 
____________
(1) See Note 2 for details of balances with VIEs.
(2) See Note 11 for details of redeemable noncontrolling interest.
See Notes to Consolidated Financial Statements (Unaudited).
4

EQUITABLE HOLDINGS, INC.
Consolidated Statements of Income (Loss)
For the Three Months Ended March 31, 2021 and 2020 (Unaudited)

Three Months Ended March 31,
20212020
(in millions, except per share data)
REVENUES
Policy charges and fee income$949 $996 
Premiums258 289 
Net derivative gains (losses)(2,546)9,400 
Net investment income (loss)884 629 
Investment gains (losses), net:
Credit losses on Available for Sale debt securities and loans1 (12)
Other investment gains (losses), net183 16 
Total investment gains (losses), net184 
Investment management and service fees1,257 1,136 
Other income167 155 
Total revenues1,153 12,609 
BENEFITS AND OTHER DEDUCTIONS
Policyholders’ benefits939 2,776 
Interest credited to policyholders’ account balances291 317 
Compensation and benefits580 526 
Commissions and distribution-related payments382 338 
Interest expense74 52 
Amortization of deferred policy acquisition costs87 1,303 
Other operating costs and expenses608 438 
Total benefits and other deductions2,961 5,750 
Income (loss) from continuing operations, before income taxes(1,808)6,859 
Income tax (expense) benefit408 (1,434)
Net income (loss)(1,400)5,425 
Less: Net income (loss) attributable to the noncontrolling interest88 37 
Net income (loss) attributable to Holdings$(1,488)$5,388 
Less: Preferred stock dividends13 13 
Net income (loss) available to Holdings’ common shareholders$(1,501)$5,375 
EARNINGS PER COMMON SHARE
Net income (loss) applicable to Holdings’ common shareholders per common share:
Basic$(3.46)$11.66 
Diluted$(3.46)$11.60 
Weighted average common shares outstanding (in millions):
Basic434.2 461.0 
Diluted434.2 463.5 


See Notes to Consolidated Financial Statements (Unaudited).
5


EQUITABLE HOLDINGS, INC.
Consolidated Statements of Comprehensive Income (Loss)
For the Three Months Ended March 31, 2021 and 2020 (Unaudited)
Three Months Ended March 31,
20212020
(in millions)
COMPREHENSIVE INCOME (LOSS)
Net income (loss)$(1,400)$5,425 
Other comprehensive income (loss) net of income taxes:
Change in unrealized gains (losses), net of reclassification adjustment(3,153)1,430 
Changes in defined benefit plan related items not yet recognized in periodic benefit cost, net of reclassification adjustment33 28 
Foreign currency translation adjustment(6)(21)
Total other comprehensive income (loss), net of income taxes(3,126)1,437 
Comprehensive income (loss)(4,526)6,862 
Less: Comprehensive income (loss) attributable to the noncontrolling interest85 29 
Comprehensive income (loss) attributable to Holdings$(4,611)$6,833 
See Notes to Consolidated Financial Statements (Unaudited).
6

EQUITABLE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF EQUITY
For the Three Months Ended March 31, 2021 and 2020 (Unaudited)
Three Months Ended March 31,
Equity Attributable to Holdings
Preferred Stock and Additional Paid-In CapitalCommon StockAdditional Paid-in CapitalTreasury StockRetained EarningsAccumulated Other Comprehensive Income (Loss)Total Holdings EquityNon-controlling InterestTotal 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  19 45   64 7 71 
Purchase of treasury stock  (10)(420)  (430) (430)
Reissuance of treasury stock   (46) (46) (46)
Retirement of common stock   320 (320) 0  0 
Repurchase of AB Holding units       (13)(13)
Dividends paid to noncontrolling interest       (108)(108)
Dividends on common stock (cash dividends declared per common share of $0.17)    (74) (74) (74)
Dividends on preferred stock    (13) (13) (13)
Issuance of preferred stock293      293  293 
Net income (loss)    (1,488) (1,488)88 (1,400)
Other comprehensive income (loss)     (3,123)(3,123)(3)(3,126)
Other  (66)   (66)3 (63)
March 31, 2021$1,562 $5 $1,928 $(2,300)$8,758 $740 $10,693 $1,575 $12,268 
January 1, 2020$775 $$1,920 $(1,832)$11,744 $844 $13,456 $1,591 $15,047 
Cumulative effect of adoption of ASU 2016-03, Current Expected Credit Loss— — — — (30)— (30)— (30)
Stock compensation— — 14 13 — — 27 30 
Purchase of treasury stock— — — (206)— — (206)— (206)
Reissuance of treasury stock— — — — (13)— (13)— (13)
Repurchase of AB Holding units— — — — — (6)
Dividends paid to noncontrolling interest— — — — — — — (93)(93)
Dividends on common stock (cash dividends declared per common share of $0.15)— — — — (69)— (69)— (69)
Dividends on preferred stock— — — — (13)— (13)— (13)
Net income (loss)— — — — 5,388 — 5,388 67 5,455 
Other comprehensive income (loss)— — — — — 1,445 1,445 (8)1,437 
Other— — (10)— — — (10)(10)
March 31, 2020$775 $$1,930 $(2,025)$17,007 $2,289 $19,981 $1,554 $21,535 


See Notes to Consolidated Financial Statements (Unaudited).
7


EQUITABLE HOLDINGS, INC.
Consolidated Statements of Cash Flows
Three Months Ended March 31, 2021 and 2020 (Unaudited)
Three Months Ended March 31,
20212020
(in millions)
Cash flows from operating activities:
Net income (loss)$(1,400)$5,425 
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Interest credited to policyholders’ account balances291 317 
Policy charges and fee income(949)(996)
Net derivative (gains) losses2,546 (9,400)
Credit losses on AFS debt securities and loans(1)12 
Investment (gains) losses, net(182)(65)
(Gains) losses on businesses HFS(1)49 
Realized and unrealized (gains) losses on trading securities41 170 
Non-cash long term incentive compensation expense41 
Amortization and depreciation153 1,330 
Equity (income) loss from limited partnerships(107)22 
Changes in:
Net broker-dealer and customer related receivables/payables(328)881 
Reinsurance recoverable(79)(113)
Segregated cash and securities, net341 (918)
Capitalization of deferred policy acquisition costs(186)(185)
Future policy benefits60 1,925 
Current and deferred income taxes(429)1,420 
Other, net175 (449)
Net cash provided by (used in) operating activities$(14)$(570)
Cash flows from investing activities:
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale$9,257 $2,762 
Fixed maturities, at fair value using the fair value option109 
Mortgage loans on real estate245 120 
Trading account securities799 510 
Short term investments18 718 
Other775 147 
Payment for the purchase/origination of:
Fixed maturities, available-for-sale(10,240)(4,993)
Fixed maturities, at fair value using the fair value option(322)
Mortgage loans on real estate(352)(181)
Trading account securities(70)(166)
Short term investments(5)(359)
Other(1,157)(194)
Cash settlements related to derivative instruments(2,973)5,581 
Investment in capitalized software, leasehold improvements and EDP equipment(23)(14)
Other, net188 216 
Net cash provided by (used in) investing activities$(3,751)$4,147 
Cash flows from financing activities:
Policyholders’ account balances:
Deposits$7,236 $2,507 



See Notes to Consolidated Financial Statements (Unaudited).
8


EQUITABLE HOLDINGS, INC.
Consolidated Statements of Cash Flows
Three Months Ended March 31, 2021 and 2020 (Unaudited)
Three Months Ended March 31,
20212020
(in millions)
Withdrawals(1,467)(1,099)
Transfers (to) from Separate Accounts497 513 
Change in short-term financings185 105 
Change in collateralized pledged assets(1,392)43 
Change in collateralized pledged liabilities96 646 
(Decrease) increase in overdrafts payable1 85 
Repayment of long-term debt(280)
Proceeds from notes issued by consolidated VIEs11 
Dividends paid on common stock(74)(69)
Dividends paid on preferred stock(13)(13)
Issuance of preferred stock293 
Purchases of AB Holding Units to fund long-term incentive compensation plan awards(36)(18)
Purchase of treasury shares(430)(205)
Purchases (redemptions) of noncontrolling interests of consolidated
company-sponsored investment funds
(7)(74)
Distribution to noncontrolling interest of consolidated subsidiaries(108)(93)
Other, net(76)(6)
Net cash provided by (used in) financing activities$4,436 $2,322 
Effect of exchange rate changes on cash and cash equivalents$(2)$(13)
Change in cash and cash equivalents669 5,886 
Cash and cash equivalents, beginning of year6,179 4,405 
Change in cash of businesses held-for-sale(53)24 
Cash and cash equivalents, end of year$6,795 $10,315 
Non-cash transactions:
Right-of-use assets obtained in exchange for lease obligations$26 $14 







See Notes to Consolidated Financial Statements (Unaudited).
9

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 4 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 March 31, 2021 and December 31, 2020, the Company’s economic interest in AB was approximately 64% and 65%, respectively.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 October 27, 2020, the Company entered into a Master Transaction Agreement with Venerable Insurance and Annuity Company, an insurance company domiciled in Iowa, pursuant to which, among other things, VIAC will acquire all of the shares of the capital stock of CS Life, a wholly owned subsidiary of the Company. The transaction is expected to close in the second quarter of 2021 and is subject to conditions specified in the Agreement, including the receipt of required regulatory approvals. Prior to the closing, CS Life will affect the recapture of all of the business that is currently ceded to CS Life RE Company, an insurance company domiciled in Arizona and wholly owned subsidiary of CS Life, and sell 100% of the common stock of CS Life RE to an affiliate. The assets and liabilities of CS Life, including those assets and liabilities associated with CS Life RE that are expected to be recaptured into CS Life immediately prior the closing, were reported as HFS in the Company’s consolidated balance sheets as of December 31, 2020. See Note 15 of the Notes to the Consolidated Financial Statements.
Immediately following the sale of CS Life, CS Life and Equitable Financial will enter into a coinsurance and modified coinsurance agreement (the “Reinsurance Agreement”), pursuant to which Equitable Financial will cede to CS Life, on a combined coinsurance and modified coinsurance basis, legacy variable annuity policies sold by Equitable Financial in 2006-2008 (the “Block”). The Block is comprised of non-New York “Accumulator” policies containing fixed rate GMIB and/or GMDB guarantees. CS Life will deposit assets supporting the general account liabilities relating to the Block into a trust account for the benefit of Equitable Financial to secure its obligations to Equitable Financial under the Reinsurance Agreement. Equitable Financial will reinsure the separate accounts relating to the Block on a modified coinsurance basis. Venerable Holdings Inc. (“VHI”)will provide a parental company guarantee of CS Life’s
10

EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
obligation to Equitable Financial under the Reinsurance Agreement. In addition, the investment of assets in the trust account will be subject to investment guidelines and the requirements of the trust will be strengthened upon certain triggers related to capital adequacy. The Reinsurance Agreement also contains additional counterparty risk management and mitigation provisions.
2)     SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Principles of Consolidation
The unaudited interim consolidated financial statements (the “consolidated financial statements”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to the Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”).
In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature, with the exception of the Company’s update of its interest rate assumption and adoption of new economic scenario generator as further described below in Assumption Updates and Model Changes. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.
The accompanying unaudited 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 variable interest entities (“VIEs”) that meet the requirements for consolidation.
All significant intercompany transactions and balances have been eliminated in consolidation. The terms “first quarter 2021” and “first quarter 2020” refer to the three months ended March 31, 2021 and 2020, respectively. The terms “first three months of 2021” and “first three months of 2020” refer to the three months ended March 31, 2021 and 2020, respectively.
Certain prior year amounts have been reclassified to conform to the current year’s presentation.

Adoption of New Accounting Pronouncements
DescriptionEffect 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 is 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

11

EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
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
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:


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.The Company is currently evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements, however the adoption of the ASU is expected to have a significant impact on the Company’s consolidated financial condition, results of operations, cash flows and required disclosures, as well as processes and controls.
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. Interest rates used to discount the liability will need to be updated quarterly using an upper medium grade (low credit risk) fixed-income instrument yield.
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. The ASU requires MRBs to be measured at fair value with changes in value attributable to changes in instrument-specific credit risk recognized in OCI.
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. Deferred costs will be required to be written off for unexpected contract terminations but will not be subject to impairment testing.
4. Expanded footnote disclosures. The ASU requires additional disclosures including disaggregated roll-forwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, MRBs, separate account liabilities and deferred acquisition costs. Companies will also be required to disclose information about significant inputs, judgements, assumptions and methods used in measurement.
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.

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.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.

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
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.
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 March 31, 2021 and December 31, 2020, the carrying value of COLI was $992 million and $992 million, respectively, and is reported in Other invested assets in the consolidated balance sheets.
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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
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 CLO.
As of March 31, 2021 and December 31, 2020, respectively, Equitable Financial holds $41 million and $38 million of equity interests in the CLO. The Company consolidated the CLO as of March 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 CLO loan manager. The assets of the CLO are legally isolated from the Company’s creditors and can only be used to settle obligations of the CLO. The liabilities of the CLO are non-recourse to the Company and the Company has no obligation to satisfy the liabilities of the CLO. As of March 31, 2021, Equitable Financial holds $81 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 has determined it will consolidate the SPE as of March 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 $844 million and $389 million notes issued by consolidated variable interest entities, at fair value using the fair value option with total liabilities of $323 million and $313 million at March 31, 2021 and December 31, 2020, respectively. The unpaid outstanding principal balance of the notes and short-term borrowing is $547 million and $362 million at March 31, 2021 and December 31, 2020,
Consolidated Limited Partnerships
As of March 31, 2021 and December 31, 2020, the Company consolidated 1 private equity limited partnership for which it was identified as the primary beneficiary under the VIE model. Included in other invested assets in the Company’s consolidated balance sheets at March 31, 2021 and December 31, 2020 are total assets of $10 million and $12 million, respectively related to this VIE.
Consolidated AB-Sponsored Investment Funds
Included in the Company’s consolidated balance sheet as of March 31, 2021 and December 31, 2020 are assets of $290 million and $284 million, liabilities of $14 million and $8 million, and redeemable noncontrolling interests of $64 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 March 31, 2021 and December 31, 2020 are assets of $78 million and $68 million, liabilities of $29 million and $23 million, and redeemable
14

EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
noncontrolling interests of $24 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 March 31, 2021 and December 31, 2020, respectively, the Company held approximately $1.5 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 $173.1 billion and $165.9 billion as of March 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 $1.5 billion and $1.4 billion and approximately $1.3 billion and $1.2 billion of unfunded commitments as of March 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 March 31, 2021 and December 31, 2020, the net assets of investment products sponsored by AB that are non-consolidated VIEs are approximately $70.9 billion and $73.4 billion, respectively. The Company’s maximum exposure to loss from its direct involvement with these VIEs is its investment of $7 million as of March 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
There were no assumption changes in the first quarter of 2021.
The net impact of the assumption update in the first quarter of 2020 was 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’
15

EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
account balances of $6 million, and an increase in amortization of DAC of $1.1 billion. This resulted in a decrease in income (loss) from operations, before income taxes of $2.5 billion and a decrease in net income (loss) of $2.0 billion.
Model Changes
There were no model changes in the first quarter of 2021.
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.

Revision of Prior Period Financial Statements
The Company identified certain errors in its previously issued financial statements primarily related to the calculation of actuarially determined insurance contract assets and liabilities. The impact of these errors to the current and the prior periods consolidated financial statements was not considered to be material. In order to improve the consistency and comparability of the financial statements, management revised the consolidated financial statements to include the revisions discussed herein. See Note 16 to the Notes to Consolidated Financial Statements for details of the revisions.
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 March 31, 2021 was $545 million. There was 0 accrued interest written off for AFS fixed maturities for the three months ended March 31, 2021.
The following tables provide information relating to the Company’s fixed maturities classified as AFS.
AFS Fixed Maturities by Classification
 Amortized CostAllowance for Credit LossesGross Unrealized GainsGross Unrealized LossesFair Value
  (in millions)
March 31, 2021 (4)
Fixed Maturities:
Corporate (1)$50,988 $19 $2,775 $652 $53,092 
U.S. Treasury, government and agency14,817 0 1,362 175 16,004 
States and political subdivisions569 0 78 7 640 
Foreign governments1,065 0 47 38 1,074 
Residential mortgage-backed (2)119 0 11 0 130 
Asset-backed (3)4,653 0 28 2 4,679 
Commercial mortgage-backed1,482 0 26 18 1,490 
Redeemable preferred stock (5)41 0 11 0 52 
Total at March 31, 2021$73,734 $19 $4,338 $892 $77,161 
December 31, 2020 (4)
Fixed Maturities:
Corporate (1)$53,160 $13 $5,104 $92 $58,159 
U.S. Treasury, government and agency12,675 3,448 16,118 
States and political subdivisions535 100 635 
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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
 Amortized CostAllowance for Credit LossesGross Unrealized GainsGross Unrealized LossesFair Value
  (in millions)
Foreign governments1,011 98 1,103 
Residential mortgage-backed (2)130 13 143 
Asset-backed (3)3,587 29 3,611 
Commercial mortgage-backed1,148 55 1,203 
Redeemable preferred stock621 48 666 
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 Significant Accounting Policies – Investments).
The contractual maturities of AFS fixed maturities as of March 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)
March 31, 2021
Contractual maturities:
Due in one year or less$2,645 $2,665 
Due in years two through five16,460 17,279 
Due in years six through ten19,385 20,464 
Due after ten years28,930 30,402 
Subtotal67,420 70,810 
Residential mortgage-backed119 130 
Asset-backed4,653 4,679 
Commercial mortgage-backed1,482 1,490 
Redeemable preferred stock41 52 
Total at March 31, 2021$73,715 $77,161 

The following table shows proceeds from sales, gross gains (losses) from sales and credit losses for AFS fixed maturities for the three months ended March 31, 2021 and 2020:
Proceeds from Sales, Gross Gains (Losses) from Sales and Credit Losses for AFS Fixed Maturities

 Three Months Ended March 31,
 20212020
 (in millions)
Proceeds from sales$7,209 $1,820 
Gross gains on sales$291 $70 
Gross losses on sales$(116)$(6)
Credit losses$(6)$(2)


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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued

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
Three Months Ended March 31,
20212020
(in millions)
Balance, beginning of period$32 $21 
Previously recognized impairments on securities that matured, paid, prepaid or sold0 
Recognized impairments on securities impaired to fair value this period (1)0 
Credit losses recognized this period on securities for which credit losses were not previously recognized2 
Additional credit losses this period on securities previously impaired4 
Increases due to passage of time on previously recorded credit losses0 
Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior)0 
Balance at March 31,$38 $23 
______________
(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 InvestmentsDACPolicyholders’ LiabilitiesDeferred 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(5,129)   (5,129)
Reclassification adjustment:
Included in Net income (loss)(175)   (175)
Excluded from Net income (loss)0    0 
Other (1)(33)   (33)
Impact of net unrealized investment gains (losses)0 599 757 836 2,192 
Net unrealized investment gains (losses) excluding credit losses3,474 (949)(308)(466)1,751 
Net unrealized investment gains (losses) with credit losses(8)2 1 1 (4)
Balance, March 31, 2021$3,466 $(947)$(307)$(465)$1,747 
Balance, January 1, 2020$3,453 $(894)$(189)$(497)$1,873 
Net investment gains (losses) arising during the period1,922 — — — 1,922 
Reclassification adjustment:
Included in Net income (loss)(62)— — — (62)
Excluded from Net income (loss)— — — 
Impact of net unrealized investment gains (losses)(28)(165)(351)(544)
Net unrealized investment gains (losses) excluding credit losses5,313 (922)(354)(848)3,189 

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
Net Unrealized Gains (Losses) on InvestmentsDACPolicyholders’ LiabilitiesDeferred Income Tax Asset (Liability)AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
(in millions)
Net unrealized investment gains (losses) with credit losses(7)(4)
Balance, March 31, 2020$5,306 $(921)$(353)$(847)$3,185 
______________
(1) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 Significant Accounting Policies – Investments).
The following tables disclose the fair values and gross unrealized losses of the 1,663 issues as of March 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 Months12 Months or LongerTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
(in millions)
March 31, 2021: (1)
Fixed Maturities:
Corporate$12,951 $611 $468 $30 $13,419 $641 
U.S. Treasury, government and agency5,043 175 0 0 5,043 175 
States and political subdivisions117 7 0 0 117 7 
Foreign governments424 35 29 4 453 39 
Asset-backed649 2 17 0 666 2 
Commercial mortgage-backed778 18 0 0 778 18 
Redeemable preferred stock (2)0 0 0 0 0 0 
Total at March 31, 2021$19,962 $848 $514 $34 $20,476 $882 
December 31, 2020: (1)
Fixed Maturities:
Corporate$2,990 $53 $337 $33 $3,327 $86 
U.S. Treasury, government and agency885 885 
Foreign governments153 21 174 
Asset-backed809 76 885 
Redeemable preferred stock53 11 64 
Total at December 31, 2020$4,890 $65 $445 $40 $5,335 $105 
______________
(1)Excludes amounts reclassified as HFS.
(2)Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 Significant Accounting Policies – Investments).
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 0.7% of total corporate securities. The largest exposures to a single issuer of corporate securities held as of March 31, 2021 and December 31, 2020 were $368 million and $391 million, respectively, representing 3.0% and 2.3% of the consolidated equity of the Company.

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
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 March 31, 2021 and December 31, 2020, respectively, approximately $2.6 billion and $2.5 billion, or 3.6% and 3.4%, of the $73.7 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 $49 million and $49 million as of March 31, 2021 and December 31, 2020, respectively.
As of March 31, 2021 and December 31, 2020, respectively, the $34 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, the Company concluded that an adjustment to allowance for credit losses for these securities was not warranted at either March 31, 2021 or December 31, 2020. As of March 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 March 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 March 31, 2021 was $30 million and $29 million, respectively. There was 0 accrued interest written off for commercial and agricultural mortgage loans for the three months ended March 31, 2021.
As of March 31, 2021, the Company had 0 loans for which foreclosure was probable included within the individually assessed mortgage loans, and accordingly had 0 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 three months ended March 31, 2021 and 2020 were as follows:
Three Months Ended March 31,
20212020
(in millions)
Allowance for credit losses on mortgage loans:
Commercial mortgages:
Balance, beginning of period$77 $33 
Current-period provision for expected credit losses(7)11 
Write-offs charged against the allowance0 
Recoveries of amounts previously written off0 (1)
Net change in allowance(7)10 
Balance, end of period$70 $43 
Agricultural mortgages:
Balance, beginning of period$4 $
Current-period provision for expected credit losses0 
Write-offs charged against the allowance0 
Recoveries of amounts previously written off0 
Net change in allowance0 
Balance, end of period$4 $
Total allowance for credit losses$74 $46 



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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued

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 March 31, 2021 and December 31, 2020.

LTV Ratios (1)
March 31, 2021
Amortized Cost Basis by Origination Year
20212020201920182017PriorTotal
(in millions)
Mortgage loans:
Commercial:
0% - 50%$0 $0 $0 $0 $324 $789 $1,113 
50% - 70%313 1,294 364 803 657 3,681 7,112 
70% - 90%0 321 456 452 220 668 2,117 
90% plus0 0 0 12 5 290 307 
Total commercial$313 $1,615 $820 $1,267 $1,206 $5,428 $10,649 
Agricultural:
0% - 50%$51 $218 $131 $152 $140 $853 $1,545 
50% - 70%41 275 120 158 101 444 1,139 
70% - 90%0 0 0 3 0 18 21 
90% plus0 0 0 0 0 0 0 
Total agricultural$92 $493 $251 $313 $241 $1,315 $2,705 
Total mortgage loans:
0% - 50%$51 $218 $131 $152 $464 $1,642 $2,658 
50% - 70%354 1,569 484 961 758 4,125 8,251 
70% - 90%0 321 456 455 220 686 2,138 
90% plus0 0 0 12 5 290 307 
Total mortgage loans$405 $2,108 $1,071 $1,580 $1,447 $6,743 $13,354 

















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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued



Debt Service Coverage Ratios (2)
March 31, 2021
Amortized Cost Basis by Origination Year
20212020201920182017PriorTotal
(in millions)
Mortgage loans:
Commercial:
Greater than 2.0x$226 $1,230 $492 $772 $268 $3,336 $6,324 
1.8x to 2.0x0 227 90 118 378 438 1,251 
1.5x to 1.8x0 98 138 187 424 758 1,605 
1.2x to 1.5x0 60 56 154 81 699 1,050 
1.0x to 1.2x87 0 44 0 0 124 255 
Less than 1.0x0 0 0 36 55 73 164 
Total commercial$313 $1,615 $820 $1,267 $1,206 $5,428 $10,649 
Agricultural:
Greater than 2.0x$11 $67 $26 $24 $34 $233 $395 
1.8x to 2.0x19 37 31 24 15 94 220 
1.5x to 1.8x25 117 33 39 43 249 506 
1.2x to 1.5x22 182 118 124 82 428 956 
1.0x to 1.2x15 86 34 91 66 267 559 
Less than 1.0x0 4 9 11 1 44 69 
Total agricultural$92 $493 $251 $313 $241 $1,315 $2,705 
Total mortgage loans:
Greater than 2.0x$237 $1,297 $518 $796 $302 $3,569 $6,719 
1.8x to 2.0x19 264 121 142 393 532 1,471 
1.5x to 1.8x25 215 171 226 467 1,007 2,111 
1.2x to 1.5x22 242 174 278 163 1,127 2,006 
1.0x to 1.2x102 86 78 91 66 391 814 
Less than 1.0x0 4 9 47 56 117 233 
Total mortgage loans$405 $2,108 $1,071 $1,580 $1,447 $6,743 $13,354 
______________
(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.














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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued



LTV Ratios (1)
December 31, 2020
Amortized Cost Basis by Origination Year
20202019201820172016PriorTotal
(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% plus12 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%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% plus12 288 305 
Total mortgage loans$2,110 $1,078 $1,600 $1,463 $2,940 $4,049 $13,240 



23

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued

Debt Service Coverage Ratios (2)
December 31, 2020
Amortized Cost Basis by Origination Year
20202019201820172016PriorTotal
(in millions)
Mortgage loans:
Commercial:
Greater than 2.0x$1,230 $492 $772 $268 $1,959 $1,230 $5,951 
1.8x to 2.0x227 83 118 378 184 329 1,319 
1.5x to 1.8x98 138 187 479 437 616 1,955 
1.2x to 1.5x60 57 154 79 658 1,008 
1.0x to 1.2x44 123 167 
Less than 1.0x36 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 2.0x38 35 14 15 20 82 204 
1.5x to 1.8x117 38 41 45 52 209 502 
1.2x to 1.5x183 120 141 90 142 313 989 
1.0x to 1.2x86 35 93 70 57 233 574 
Less than 1.0x10 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 2.0x265 118 132 393 204 411 1,523 
1.5x to 1.8x215 176 228 524 489 825 2,457 
1.2x to 1.5x243 177 295 169 142 971 1,997 
1.0x to 1.2x86 79 93 70 57 356 741 
Less than 1.0x10 44 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.
The following tables provide information relating to the LTV and DSC ratios for commercial and agricultural mortgage loans as of March 31, 2021 and December 31, 2020. The values used in these ratio calculations were developed as part of the periodic review of the commercial and agricultural mortgage loan portfolio, which includes an evaluation of the underlying collateral value

24

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued




Mortgage Loans by LTV and DSC Ratios
 DSC Ratio (2) (3)
LTV Ratio (1) (3):Greater than 2.0x1.8x to
2.0x
1.5x to
1.8x
1.2x to
1.5x
1.0x to
1.2x
Less than
1.0x
Total
 (in millions)
March 31, 2021:
Mortgage loans:
Commercial:
0% - 50%$953 $0 $160 $0 $0 $0 $1,113 
50% - 70%4,370 877 1,156 597 112 0 7,112 
70% - 90%844 374 289 376 143 91 2,117 
90% plus157 0 0 77 0 73 307 
Total commercial$6,324 $1,251 $1,605 $1,050 $255 $164 $10,649 
Agricultural:
0% - 50%$297 $99 $301 $510 $300 $38 $1,545 
50% - 70%98 119 205 446 259 12 1,139 
70% - 90%0 2 0 0 0 19 21 
90% plus0 0 0 0 0 0 0 
Total agricultural$395 $220 $506 $956 $559 $69 $2,705 
Total mortgage loans:
0% - 50%$1,250 $99 $461 $510 $300 $38 $2,658 
50% - 70%4,468 996 1,361 1,043 371 12 8,251 
70% - 90%844 376 289 376 143 110 2,138 
90% plus157 0 0 77 0 73 307 
Total mortgage loans$6,719 $1,471 $2,111 $2,006 $814 $233 $13,354 

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
 DSC Ratio (2) (3)
LTV Ratio (1) (3):Greater than 2.0x1.8x to
2.0x
1.5x to
1.8x
1.2x to
1.5x
1.0x to
1.2x
Less than
1.0x
Total
 (in millions)
December 31, 2020:
Mortgage loans:
Commercial:
0% - 50%$856 $$160 $$$$1,016 
50% - 70%4,095 870 1,452 555 25 6,997 
70% - 90%844 449 343 376 142 36 2,190 
90% plus156 77 72 305 
Total commercial$5,951 $1,319 $1,955 $1,008 $167 $108 $10,508 
Agricultural:
0% - 50%$297 $108 $291 $520 $317 $34 $1,567 
50% - 70%108 94 211 450 257 24 1,144 
70% - 90%19 21 
90% plus
Total agricultural$405 $204 $502 $989 $574 $58 $2,732 
Total mortgage loans:
0% - 50%$1,153 $108 $451 $520 $317 $34 $2,583 
50% - 70%4,203 964 1,663 1,005 282 24 8,141 
70% - 90%844 451 343 395 142 36 2,211 
90% plus156 77 72 305 
Total mortgage loans$6,356 $1,523 $2,457 $1,997 $741 $166 $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.
(3)Amounts presented at amortized cost basis.
Past-Due and Nonaccrual Mortgage Loan Status
The following table provides information relating to the aging analysis of past-due mortgage loans as of March 31, 2021 and December 31, 2020, respectively.
Age Analysis of Past Due Mortgage Loans (1)
Accruing LoansNon-accruing LoansTotal LoansNon-accruing Loans with No AllowanceInterest Income on Non-accruing Loans
Past DueCurrentTotal
30-59 Days60-89 Days90 Days or MoreTotal
(in millions)
March 31, 2021:
Mortgage loans:
Commercial$0 $0 $0 $0 $10,649 $10,649 $0 $10,649 $0 $0 
Agricultural10 4 80 94 2,611 2,705 0 2,705 0 0 
Total$10 $4 $80 $94 $13,260 $13,354 $0 $13,354 $0 $0 

26

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
December 31, 2020:
Mortgage loans:
Commercial$162 $$$162 $10,346 $10,508 $$10,508 $$
Agricultural76 29 112 2,620 2,732 2,732 
Total$238 $$29 $274 $12,966 $13,240 $$13,240 $$
_______________
(1) Amounts presented at amortized cost basis.
As of March 31, 2021 and December 31, 2020, the carrying values of problem mortgage loans that had been classified as non-accrual loans were $0 million and $0 million, respectively.
Troubled Debt Restructuring
There were no mortgage loan on real estate or fixed maturities accounted for as a TDR during the three months ended March 31, 2021 and 2020.
Equity Securities
The table below presents a breakdown of unrealized and realized gains and (losses) on equity securities during the three months ended March 31, 2021.
Unrealized and Realized Gains (Losses) from Equity Securities (1)
Three Months Ended March 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 securities sold during the period(6)
Unrealized and realized gains (losses) on equity securities$13 
______________
(1) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 Significant Accounting Policies – Investments)
Trading Securities
As of March 31, 2021 and December 31, 2020, respectively, the fair value of the Company’s trading securities was $4.8 billion and $5.6 billion. As of March 31, 2021 and December 31, 2020, respectively, trading securities included the General Account’s investment in Separate Accounts which had carrying values of $42 million and $44 million.
The table below shows a breakdown of net investment income (loss) from trading securities during the three months ended March 31, 2021 and 2020.
Net Investment Income (Loss) from Trading Securities
Three Months Ended March 31,
20212020
(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period$(70)$(186)
Net investment gains (losses) recognized on securities sold during the period29 
Unrealized and realized gains (losses) on trading securities(41)(182)
Interest and dividend income from trading securities38 51 
Net investment income (loss) from trading securities$(3)$(131)


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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), 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, 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.
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.

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Table of Contents
EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
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 to Hedge ULSG Policy
The Company implemented a hedge program using fixed income total return swaps to mitigate the interest rate exposure in the ULSG policy statutory liability.
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.
The tables below present quantitative disclosures about the Company’s derivative instruments, including those embedded in other contracts required to be accounted for as derivative instruments.

29

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
Derivative Instruments by Category
March 31, 2021Three Months Ended March 31, 2021
  Fair Value
  Notional Amount Derivative Assets Derivative LiabilitiesNet Derivative Gains (Losses) (2)
(in millions)
Derivative instruments:
Freestanding derivatives (1):
Equity contracts:
Futures$5,397 $2 $1 $(288)
Swaps19,308 5 3 (1,271)
Options43,207 9,764 4,246 1,145 
Interest rate contracts:
Swaps13,980 3 2,144 (2,915)
Futures15,096 0 0 (949)
Swaptions0 0 0 0 
Credit contracts:
Credit default swaps1,129 18 12 0 
Other freestanding contracts:
Foreign currency contracts576 9 9 1 
Margin0 58 0 0 
Collateral0 1,605 3,882 0 
Embedded derivatives:
GMIB reinsurance contracts (3)0 1,907 0 (578)
GMxB derivative features liability (4) (6) (7)0 0 7,824 3,408 
SCS, SIO, MSO and IUL indexed features (5)0 0 5,297 (1,145)
Total derivative instruments$98,693 $13,371 $23,418 
Net derivative gains (losses)$(2,592)
______________
(1)Reported in other invested assets in the consolidated balance sheets.
(2)Reported in net derivative gains (losses) in the consolidated statements of income (loss).
(3)Reported in GMIB reinsurance contract asset in the consolidated balance sheets.
(4)Reported in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets.
(5)Reported in policyholders’ account balances in the consolidated balance sheets.
(6)Includes amounts reclassified as HFS.
(7)Excludes a $46 million settlement fee on CS Life reinsurance contract.

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
Derivative Instruments by Category
December 31, 2020Three Months Ended March 31, 2020
  Fair Value
  Notional AmountDerivative AssetsDerivative
Liabilities
Net Derivative
Gains (Losses) (2)
(in millions)
Derivative instruments:
Freestanding derivatives (1):
Equity contracts:
Futures$4,881 $$$220 
Swaps22,456 3,778 
Options35,848 8,396 3,726 (3,851)
Interest rate contracts:
Swaps23,834 553 656 3,578 
Futures18,571 1,988 
Swaptions
Credit contracts:
Credit default swaps1,087 19 14 (1)
Other freestanding contracts:
Foreign currency contracts411 (2)
Margin49 66 
Collateral212 3,839 
Embedded derivatives:
GMIB reinsurance contracts (3)2,488 726 
GMxB derivative features liability (4) (6)11,131 (1,199)
SCS, SIO, MSO and IUL indexed features (5)4,509 4,154 
Total derivative instruments$107,088 $11,732 $23,954 
Net derivative gains (losses)$9,400 
______________
(1)Reported in other invested assets in the consolidated balance sheets.
(2)Reported in net derivative gains (losses) in the consolidated statements of income (loss).
(3)Reported in GMIB reinsurance contract asset in the consolidated balance sheets.
(4)Reported in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets.
(5)Reported in policyholders’ account balances in the consolidated balance sheets.
(6)Includes amounts reclassified as HFS.
Equity-Based and Treasury Futures Contracts Margin
All outstanding equity-based and treasury futures contracts as of March 31, 2021 and December 31, 2020 are exchange-traded and net settled daily in cash. As of March 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 $248 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 $125 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 $29 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

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
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 March 31, 2021 and December 31, 2020, respectively, the Company held $3.9 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 $1.6 billion and $212 million as of March 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 March 31, 2021 and December 31, 2020:
Offsetting of Financial Assets and Liabilities and Derivative Instruments

As of March 31, 2021
Gross Amount RecognizedGross Amount Offset in the Balance SheetsNet Amount Presented in the Balance SheetsGross Amount not Offset in the Balance Sheets (3)Net Amount
(in millions)
Assets:
Derivative assets (1)$11,463 $10,272 $1,191 $0 $1,191 
Other financial assets1,722 0 1,722 0 1,722 
Other invested assets$13,185 $10,272 $2,913 $0 $2,913 
Liabilities:
Derivative liabilities (2)$10,296 $10,272 $24 $0 $24 
Other financial liabilities3,966 0 3,966 0 3,966 
Other liabilities$14,262 $10,272 $3,990 $0 $3,990 
______________
(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 RecognizedGross Amount Offset in the Balance SheetsNet Amount Presented in the Balance SheetsGross 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 instruments1,733 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 $$12 
Other financial liabilities3,674 3,674 3,674 
Other liabilities$11,935 $8,249 $3,686 $$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)    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.

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
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 New York State Department of Financial Services (the “NYDFS”). Closed Block assets and liabilities are carried on the same basis as similar assets and liabilities held in the General Account. For more information on the Closed Block, see Note 6 to the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2020.
Summarized financial information for the Company’s Closed Block is as follows:
 March 31, 2021December 31, 2020
(in millions)
Closed Block Liabilities:
Future policy benefits, policyholders’ account balances and other$6,133 $6,201 
Policyholder dividend obligation28 160 
Other liabilities63 39 
Total Closed Block liabilities6,224 6,400 
Assets Designated to the Closed Block:
Fixed maturities AFS, at fair value (amortized cost of $3,381 and $3,359) (allowance for credit losses of $0)3,623 3,718 
Mortgage loans on real estate (net of allowance for credit losses of $6 and $6)1,761 1,773 
Policy loans636 648 
Cash and other invested assets19 28 
Other assets128 169 
Total assets designated to the Closed Block6,167 6,336 
Excess of Closed Block liabilities over assets designated to the Closed Block57 64 
Amounts included in AOCI:
Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $28 and $160; and net of income tax: $(45) and $(42)179 167 
Maximum future earnings to be recognized from Closed Block assets and liabilities$236 $231 

The Company’s Closed Block revenues and expenses were as follows:
Three Months Ended March 31,
20212020
(in millions)
Revenues:
Premiums and other income$39 $42 
Net investment income (loss)60 66 
Investment gains (losses), net0 
Total revenues99 108 
Benefits and Other Deductions:
Policyholders’ benefits and dividends106 103 
Other operating costs and expenses1 
Total benefits and other deductions107 103 
Net income (loss), before income taxes(8)
Income tax (expense) benefit(1)
Net income (loss)$(9)$


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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
A reconciliation of the Company’s policyholder dividend obligation follows:
Three Months Ended March 31,
20212020
(in millions)
Balance, beginning of year$160 $
Unrealized investment gains (losses)(132)
Balance, end of year$28 $

6)    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.

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
The amounts for the ceded IB are reflected in the consolidated balance sheets in GMIB reinsurance contract asset, at fair value.
Change in Liability for Variable Annuity Contracts with GMDB and GMIB Features and No NLG Feature
Three Months Ended March 31, 2021 and 2020
GMDBGMIB
DirectAssumedCededDirectAssumedCeded
(in millions)
Balance, January 1, 2021$5,097 $72 $(88)$6,026 $196 $(2,488)
Paid guarantee benefits(133)(6)3 (92)(52)14 
Other changes in reserve122 6 1 32 0 567 
Balance, March 31, 2021$5,086 $72 $(84)$5,966 $144 $(1,907)
Balance, January 1, 2020$4,780 $76 $(104)$4,673 $187 $(2,139)
Paid guarantee benefits(111)(6)(74)(1)20 
Other changes in reserve377 (11)1,675 33 (706)
Balance, March 31, 2020$5,046 $72 $(110)$6,274 $219 $(2,825)

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 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 7 Fair Value Disclosures.
Account Values and Net Amount at Risk
Account Values and NAR for direct and assumed variable annuity contracts in force with GMDB and GMIB features as of March 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.


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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued

Direct Variable Annuity Contracts with GMDB and GMIB Features
as of March 31, 2021
Guarantee Type
Return of PremiumRatchetRoll-UpComboTotal
(in millions, except age and interest rate)
Variable annuity contracts with GMDB features
Account Values invested in:
General Account$15,647 $86 $53 $164 $15,950 
Separate Accounts55,738 9,713 3,350 34,329 103,130 
Total Account Values$71,385 $9,799 $3,403 $34,493 $119,080 
NAR, gross$96 $35 $1,509 $16,402 $18,042 
NAR, net of amounts reinsured$96 $33 $1,057 $16,402 $17,588 
Average attained age of policyholders (in years)51.4 68.5 75.0 70.4 55.3 
Percentage of policyholders over age 7011.4 %49.1 %70.8 %55.0 %20.4 %
Range of contractually specified interest ratesN/AN/A3% - 6%3% - 6.5%3% - 6.5%
Variable annuity contracts with GMIB features
Account Values invested in:
General Account$0 $0 $16 $212 $228 
Separate Accounts0 0 25,457 36,802 62,259 
Total Account Values$0 $0 $25,473 $37,014 $62,487 
NAR, gross$0 $0 $680 $8,598 $9,278 
NAR, net of amounts reinsured$0 $0 $219 $7,835 $8,054 
Average attained age of policyholders (in years)N/AN/A64.4 70.3 68.1 
Weighted average years remaining until annuitizationN/AN/A5.6 0.6 2.4 
Range of contractually specified interest ratesN/AN/A3% - 6%3% - 6.5%3% - 6.5%

Assumed Variable Annuity Contracts with GMDB and GMIB Features
as of March 31, 2021
Guarantee Type
Return of PremiumRatchetRoll-UpComboTotal
(in millions, except age and interest rates)
Variable annuity contracts with GMDB features
Reinsured Account Values$975 $5,294 $261 $1,164 $7,694 
Net Amount at Risk assumed$3 $202 $12 $103 $320 
Average attained age of policyholders (in years)68 73 78 76 73 
Percentage of policyholders over age 7045.7 %66.0 %80.4 %77.2 %65.6 %
Range of contractually specified interest rates (1)N/AN/A3%-10%5%-10%3%-10%

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
Guarantee Type
Return of PremiumRatchetRoll-UpComboTotal
(in millions, except age and interest rates)
Variable annuity contracts with GMIB features
Reinsured Account Values$966 $45 $229 $1,198 $2,438 
Net Amount at Risk assumed$1 $0 $19 $222 $242 
Average attained age of policyholders (in years)72 75 72 70 71 
Percentage of policyholders over age 7065.0 %63.5 %61.3 %55.0 %59.7 %
Range of contractually specified interest rates   N/A   N/A3.3%-6.5%6%-6%3.3%-6.5%
______________
(1)In general, for policies with the highest contractual interest rate shown (10%), the rate applied only for the first 10 years after issue, which has now elapsed.
For more information about the reinsurance programs of the Company’s GMDB and GMIB exposure, see “Reinsurance” in Note 11 of the 2020 Form 10-K.
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
 March 31, 2021December 31, 2020
Mutual Fund TypeGMDBGMIBGMDBGMIB
 (in millions)
Equity$48,656 $19,246 $46,850 $18,771 
Fixed income5,362 2,584 5,506 2,701 
Balanced48,016 40,157 47,053 39,439 
Other1,096 272 1,111 275 
Total$103,130 $62,259 $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.

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
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)
Three Months Ended March 31,
20212020
(in millions)
Beginning balance$1,022 $898 
Paid guarantee benefits(15)(13)
Other changes in reserves43 39 
Ending balance$1,050 $924 
_____________
(1)There were no amounts of reinsurance ceded in any period presented.
7)    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,

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
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. As of March 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 15 of the Notes to 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 March 31, 2021 (1)
Level 1Level 2Level 3Total
 (in millions)
Assets
Investments
Fixed maturities, AFS:
Corporate (2)$0 $51,837 $1,255 $53,092 
U.S. Treasury, government and agency0 16,004 0 16,004 
States and political subdivisions0 602 38 640 
Foreign governments0 1,074 0 1,074 
Residential mortgage-backed (3)0 130 0 130 
Asset-backed (4)0 4,614 65 4,679 
Commercial mortgage-backed0 1,486 4 1,490 
Redeemable preferred stock0 52 0 52 
Total fixed maturities, AFS0 75,799 1,362 77,161 
Fixed maturities, at fair value using the fair value option0 703 141 844 
Other equity investments402 394 74 870 
Trading securities300 4,482 39 4,821 
Other invested assets:
Short-term investments0 87 0 87 
Assets of consolidated VIEs/VOEs53 260 11 324 
Swaps0 (2,139)0 (2,139)
Credit default swaps0 6 0 6 
Futures1 0 0 1 
Options0 5,518 0 5,518 
Total other invested assets54 3,732 11 3,797 
Cash equivalents4,308 1,054 0 5,362 
Segregated securities0 1,413 0 1,413 
GMIB reinsurance contracts asset0 0 1,907 1,907 
Separate Accounts assets (5)136,830 2,398 0 139,228 

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
Level 1Level 2Level 3Total
 (in millions)
Total Assets$141,894 $89,975 $3,534 $235,403 
Liabilities
Notes issued by consolidated VIE’s, at fair value using the fair value option (6)$0 $506 $0 $506 
GMxB derivative features’ liability0 0 7,824 7,824 
SCS, SIO, MSO and IUL indexed features’ liability0 5,297 0 5,297 
Liabilities of consolidated VIEs and VOEs14 6 0 20 
Contingent payment arrangements0 0 36 36 
Total Liabilities$14 $5,809 $7,860 $13,683 
______________
(1)Excludes amounts reclassified as HFS except GMxB derivative features’ liability, which is inclusive of 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, credit risk transfer securities and other asset types.
(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. As of March 31, 2021, the fair value of such investments was $365 million.
(6)Includes CLO short-term debt of $185 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 $2 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.


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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
Fair Value Measurements as of December 31, 2020 (1)
Level 1Level 2Level 3Total
 (in millions)
Assets
Investments
Fixed maturities, AFS:
Corporate (2)$$56,457 $1,702 $58,159 
U.S. Treasury, government and agency16,118 16,118 
States and political subdivisions596 39 635 
Foreign governments1,103 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 stock404 262 666 
Total fixed maturities, AFS404 79,473 1,761 81,638 
Fixed maturities, at fair value using the fair value option309 80 389 
Other equity investments13 71 84 
Trading securities441 5,073 39 5,553 
Other invested assets:

Short-term investments101 102 
Assets of consolidated VIEs/VOEs74 231 13 318 
Swaps(99)(99)
Credit default swaps
Futures(2)(2)
Options4,670 4,670 
Swaptions
Total other invested assets72 4,908 14 4,994 
Cash equivalents4,309 297 4,606 
Segregated securities1,753 1,753 
GMIB reinsurance contracts asset2,488 2,488 
Separate Accounts assets (5)132,698 2,674 135,373 
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’ liability11,131 11,131 
SCS, SIO, MSO and IUL indexed features’ liability4,509 4,509 
Liabilities of consolidated VIEs and VOEs
Contingent payment arrangements28 28 
Total Liabilities$$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.

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued

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 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

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
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 accounted for 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. 
The valuations of the GMIB reinsurance contract asset 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 and GMxB derivative features liability positions, respectively, after taking into account the effects of collateral arrangements. Incremental adjustment to the swap curve for non-

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
performance risk is made to the fair values of the GMIB reinsurance contract asset and liabilities 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, 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 Company reduced the fair value of its GMIB reinsurance contract asset by $91 million and $102 million as of March 31, 2021 and December 31, 2020, respectively, to recognize incremental counterparty non-performance risk and reduced the fair value of its GMIB reinsurance contract liabilities by $15 million and $19 million as of March 31, 2021 and December 31, 2020, respectively, to recognize its own incremental 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 three months ended March 31, 2021, AFS fixed maturities with fair values of $549 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, AFS fixed maturities with fair value of $2 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 4.5% of total equity as of March 31, 2021.
During the three months ended March 31, 2020, AFS fixed maturities with fair values of $126 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, AFS fixed maturities with fair value of $0 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 0.6% of total equity as of March 31, 2020.
The tables below present reconciliations for all Level 3 assets and liabilities for the three months ended March 31, 2021 and 2020, respectively.

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
Level 3 Instruments - Fair Value Measurements
CorporateState and
Political
Subdivisions
Asset-backedRedeemable Preferred StockCMBSFixed maturities, at FVO (2)
(in millions)
Balance, January 1, 2021$1,702 $39 $20 $0 $0 $80 
Total gains and (losses), realized and unrealized, included in:
Net income (loss) as:
Net investment income (loss)1 0 0 0 0 3 
Investment gains (losses), net(6)0 0 0 0 0 
Subtotal(5)0 0 0 0 3 
Other comprehensive income (loss)9 (1)0 0 0 0
Purchases165 0 50 0 4 88 
Sales(69)0 (5)0 0 (8)
Transfers into Level 3 (1)2 0 0 0 0 7 
Transfers out of Level 3 (1)(549)0 0 0 0 (28)
Balance, March 31, 2021$1,255 $38 $65 $0 $4 $142 
Balance, January 1, 2020$1,257 $39 $100 $$$
Total gains and (losses), realized and unrealized, included in:
Net income (loss) as:
Net investment income (loss)
Investment gains (losses), net(2)
Subtotal(1)
Other comprehensive income (loss)(61)(3)(8)
Purchases61 48 
Sales(45)
Transfers into Level 3 (1)
Transfers out of Level 3 (1)(26)(100)
Balance, March 31, 2020$1,185 $36 $40 $$$
_____________
(1)Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values.
(2) Fixed maturities, at fair value using the fair value option.

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
Other Equity InvestmentsGMIB Reinsurance
 Contract Asset
Separate Accounts AssetsGMxB Derivative Features LiabilityContingent Payment Arrangement
(in millions)
Balance, January 1, 2021$124 $2,488 $1 $(11,131)$(28)
Realized and unrealized gains (losses), included in Net income (loss) as:
Investment gains (losses), net1 0 0 0 0 
Net derivative gains (losses) (1) (7)0 (578)0 3,408 0 
Total realized and unrealized gains (losses)1 (578)0 3,408 0 
Other comprehensive income (loss)0 0 0 0 0 
Purchases (2)2 11 0 (119)(7)
Sales (3)(2)(14)0 18 0 
Settlements (4)0 0 0 0 0 
Change in estimate (5)0 0 0 0 0 
Activity related to consolidated VIEs/VOEs(2)0 0 0 (1)
Transfers into Level 3 (6)0 0 0 0 0 
Transfers out of Level 3 (6)0 0 (1)0 0 
Balance, March 31, 2021$123 $1,907 $0 $(7,824)$(36)
Balance, January 1, 2020$150 $2,139 $$(8,502)$(23)
Realized and unrealized gains (losses), included in Net income (loss) as:
Investment gains (losses), net
Net derivative gains (losses)726 (1,199)
Total realized and unrealized gains (losses)726 (1,199)
Other comprehensive income (loss)(7)
Purchases (2)10 (111)
Sales (3)(11)(20)14 
Settlements (4)
Change in estimate(32)
Activity related to consolidated VIEs/VOEs(1)(1)
Transfers into Level 3 (6)
Transfers out of Level 3 (6)
Balance, March 31, 2020$140 $2,823 $$(9,798)$(24)
______________
(1)The Company’s non-performance risk impact of $79 million for the GMxB Derivative Features Liability and $(15) million for the GMIB Reinsurance Contract Asset during the three months ended March 31, 2021, respectively, is recorded through Net derivative gains (losses).
(2)For the GMIB reinsurance contract asset, and GMxB derivative features liability, represents attributed fee.
(3)For the GMIB reinsurance contract asset, 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)For the GMIB reinsurance contract asset, represents a transfer from amounts due from reinsurers.
(6)Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values.
(7)GMxB Derivative Features Liability excludes a $46 million settlement fee on CS Life reinsurance contract.
The table below details changes in unrealized gains (losses) for the three months ended March 31, 2021 and 2020 by category for Level 3 assets and liabilities still held as of March 31, 2021 and 2020, respectively.

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
Change in Unrealized Gains (Losses) for Level 3 Instruments
 Net Income (Loss) 
 Net Derivative Gains (Losses)OCI
(in millions)
Held at March 31, 2021:
Change in unrealized gains (losses):
Fixed maturities, AFS
Corporate$0 $9 
State and political subdivisions0 (1)
Asset-backed0 0 
Total fixed maturities, AFS8 
GMIB reinsurance contracts(578)0 
Separate Account assets0 0 
GMxB derivative features liability3,408 0 
Total$2,830 $8 
Held at March 31, 2020:
Change in unrealized gains (losses):
Fixed maturities, AFS
Corporate$$(61)
State and political subdivisions(2)
Asset-backed(8)
Total fixed maturities, AFS(71)
GMIB reinsurance contracts726 
Separate Account assets
GMxB derivative features liability(1,199)
Total$(473)$(71)



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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), 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 March 31, 2021 and December 31, 2020, respectively.
Quantitative Information about Level 3 Fair Value Measurements as of March 31, 2021
Fair
Value
Valuation
Technique
Significant
Unobservable Input
RangeWeighted Average (2)
 (in millions)
Assets:
Investments:
Fixed maturities, AFS:
Corporate$40 Matrix pricing modelSpread over Benchmark20 - 245 bps150 bps
771 Market comparable 
companies
EBITDA multiples
Discount rate
Cash flow multiples
4.0x - 32.3x
6.0% - 16.7%
1.6x -25.0x
11.4x
8.5%
6.7x
Other equity investments2 Market comparable companiesRevenue multiple9.6x - 17.2x16.0x
39 Discounted Cash FlowEarnings multiple
Discount factor
Discount years
8.2x
10.0%
11
GMIB reinsurance contract asset1,907 Discounted cash flowLapse rates
Withdrawal Rates
GMIB Utilization Rates
Non-performance risk
Volatility rates - Equity
Mortality: Ages 0-40
Ages 41-60
Ages 61-115
0.6%-16%
0%-2%
0%-61%
52 - 88 bps
11%-28%
0.01%-0.18%
0.07%-0.54%
0.42%-42.20%
1.93%
0.89%
5.27%
56 bps
23.8%
2.94%
(same for all ages)
(same for all ages)
Liabilities:
AB Contingent Consideration Payable36 Discounted cash flowExpected revenue growth rates
Discount rate
2.0 % - 135.6 %
1.9 % - 20.0 %
9.0 %
10.8 %

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
Fair
Value
Valuation
Technique
Significant
Unobservable Input
RangeWeighted Average (2)
GMIBNLG7,625 Discounted cash flowNon-performance risk
Lapse rates
Withdrawal rates
Annuitization rates
Mortality rates (1):
Ages 0 - 40
Ages 41 - 60
Ages 61 - 115
102.0 bps
1.1%-25.7%
0.4%-2%
0%-100%

0.01%-0.19%
0.06%-0.53%
0.41%-41.39%

3.44%
0.95%
5.18%

1.66%
(same for all ages)
(same for all ages)
Assumed GMIB Reinsurance Contracts143 Discounted cash flowLapse rates
Withdrawal Rates (Age 0-85)
Withdrawal Rates (Age 86+)
GMIB Utilization Rates
Non-performance risk (bps)
Volatility rates - Equity
1.1% - 11.1%
0.6% - 22.2%
1.1% - 100%
0% - 30%
66 - 129
11%-28%
1.93%
0.89%
(same for all ages)
5.27%
99 bps
24%
GWBL/GMWB134 Discounted cash flow
Lapse rates
Withdrawal Rates
Utilization Rates

Volatility rates - Equity
Non-performance risk

0.8%-16%
0%-8%
100% once starting
11%-28%
102.0 bps

1.93%
0.89%


24%

GIB(76)Discounted cash flowLapse rates
Withdrawal Rates
Utilization Rates
Volatility rates - Equity
Non-performance risk
0.8%-15.6%
0%-2%
0%-100%
11%-28%
102.0 bps
1.93%
0.89%
5.27%
24%

GMAB(2)Discounted cash flow      Lapse rates
Volatility rates - Equity
Non-performance risk

0.8%-16%
11%-28%
102.0 bps

1.93%
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
RangeWeighted Average
 (in millions)
Assets:
Investments:
Fixed maturities, AFS:
Corporate$34 Matrix pricing modelSpread over benchmark45 - 195 bps160 bps
1,148 Market comparable companiesEBITDA multiples
Discount rate
Cash flow multiples
3.5x - 33.1x
5.6% - 28.4%
1.9x -25.0x
10.8x
8.6%
6.8x
Other equity investmentsMarket comparable companiesRevenue multiple9.7x - 26.4x18.5x
39 Discounted cash flowEarnings multiple
Discounts factor
Discount years
8.2x
10.0%
11

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
Fair
Value
Valuation
Technique
Significant
Unobservable Input
RangeWeighted Average
GMIB reinsurance contract asset2,488 Discounted cash flowNon-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 Payable28 Discounted cash flowExpected revenue growth rates
Discount rate
0.7 % - 50.0 %
1.9 % - 10.4 %
4.9 %
 8.0 %
GMIBNLG10,713 Discounted cash flowNon-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 Contracts195 Discounted cash flowNon-performance risk
Lapse rates
Withdrawal rates (Age 0 - 85)
Withdrawal rates (Age 86+)
Utilization rates
Volatility rates - Equity
60 - 133
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/GMWB190 Discounted cash flowNon-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%
GIB31 Discounted cash flowNon-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%
GMABDiscounted cash flowNon-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.
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 March 31, 2021 and December 31, 2020, respectively, are approximately $774 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

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
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 March 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 March 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 and GMxB Derivative Features Liability
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 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 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, while decreases in withdrawal rates and volatility rates would tend to decrease the GMIBNLG liability.
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
The carrying values and fair values as of March 31, 2021 and December 31, 2020 for financial instruments not otherwise disclosed in Note 3 and Note 4 are presented in the table below.

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
Carrying Values and Fair Values for Financial Instruments Not Otherwise Disclosed
 Carrying
Value
Fair Value
 Level 1Level 2Level 3Total
(in millions)
March 31, 2021:
Mortgage loans on real estate$13,280 $0 $0 $13,532 $13,532 
Policy loans (1)$4,091 $0 $0 $5,117 $5,117 
Policyholders’ liabilities: Investment contracts (1)$2,160 $0 $0 $2,280 $2,280 
FHLB funding agreements$10,223 $0 $10,284 $0 $10,284 
FABN funding agreements$3,132 $0 $3,087 $0 $3,087 
Short-term and long-term debt (2)$3,837 $0 $4,493 $0 $4,493 
Separate Accounts liabilities$10,658 $0 $0 $10,658 $10,658 
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 $185 million, which is inclusive as fair valued within Notes issued by consolidated VIE’s, at fair value using the fair value option.
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.

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
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 for further description of the Company’s accounting policy related to its investment in COLI policies.
8)    EMPLOYEE BENEFIT PLANS
Pension Plans
Holdings and Equitable Financial Retirement Plans
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 and would recognize such liability in the event Holdings does not perform.
AB Retirement Plans
AB 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.
Net Periodic Pension Expense
Components of net periodic pension expense for the Company’s plans were as follows:
Three Months Ended March 31,
20212020
 
Service cost$2 $
Interest cost14 23 
Expected return on assets(38)(37)
Prior Period Svc Cost Amortization(1)
Actuarial (gain) loss1 
Net amortization29 27 
Impact of settlement0 
Net Periodic Pension Expense$7 $15 

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
9)    INCOME TAXES
Income tax expense for the three months ended March 31, 2021 and 2020 was computed using an estimated annual effective tax rate (“ETR”), with discrete items recognized in the period in which they occur. The estimated ETR is revised, as necessary, at the end of successive interim reporting periods.
10)    EQUITY
Preferred Stock
Preferred stock authorized, issued and outstanding was as follows:
March 31, 2021December 31, 2020
SeriesShares AuthorizedShares
 Issued
Shares OutstandingShares AuthorizedShares
 Issued
Shares Outstanding
Series A32,000 32,000 32,000 32,000 32,000 32,000 
Series B20,000 20,000 20,000 20,000 20,000 20,000 
Series C12,000 12,000 12,000 
Total64,000 64,000 64,000 52,000 52,000 52,000 

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:
Three months ended March 31,
20212020
Series A dividends declared$328 $394 
Series B dividends declared$0 $
Series C dividends declared$200 $
Common Stock
Dividends declared per share of common stock were as follows for the periods indicated:
Three Months Ended March 31,
20212020
Dividends declared$0.17 $0.15 

Share Repurchase
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

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Notes to Consolidated Financial Statements (Unaudited), Continued
derivative, accelerated repurchase and other negotiated transactions and through prearranged trading plans complying with Rule 10b5-1(c) under the Exchange Act. As of March 31, 2021, Holdings had authorized capacity of approximately $701 million remaining in its share repurchase program, which is exclusive of the $500 million related to the Venerable Transaction.
Holdings repurchased a total of 14.5 million shares of its common stock at an average price of $29.71 per share through both open market repurchases and an ASR during the three months ended March 31, 2021.
During the three months ended March 31, 2021, Holdings repurchased 3.2 million shares of its common stock through open market repurchases.
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 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 is scheduled to terminate during the second quarter of 2021, at which time additional shares may be delivered or returned depending on the daily volume-weighted average
price of Holdings’ common stock.
Accumulated Other Comprehensive Income (Loss)
AOCI represents cumulative gains (losses) on items that are not reflected in net income (loss). The balances as of March 31, 2021 and December 31, 2020 follow:
 March 31,December 31,
 20212020
 (in millions)
Unrealized gains (losses) on investments$1,644 $4,797 
Defined benefit pension plans(902)(935)
Foreign currency translation adjustments(40)(34)
Total accumulated other comprehensive income (loss)702 3,828 
Less: Accumulated other comprehensive income (loss) attributable to noncontrolling interest(38)(35)
Accumulated other comprehensive income (loss) attributable to Holdings$740 $3,863 


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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
The components of OCI, net of taxes for the three months ended March 31, 2021 and 2020 follow:
Three Months Ended March 31,
 20212020
 (in millions)
Change in net unrealized gains (losses) on investments:
Net unrealized gains (losses) arising during the period$(4,059)$1,513 
(Gains) losses reclassified into net income (loss) during the period (1)(164)(47)
Net unrealized gains (losses) on investments(4,223)1,466 
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other1,070 (36)
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $838 and $380)(3,153)1,430 
Change in defined benefit plans:
Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost33 28 
Change in defined benefit plans (net of deferred income tax expense (benefit) of $9 and $7)33 28 
Foreign currency translation adjustments:
Foreign currency translation gains (losses) arising during the period(6)(21)
Foreign currency translation adjustment(6)(21)
Total other comprehensive income (loss), net of income taxes(3,126)1,437 
Less: Other comprehensive income (loss) attributable to noncontrolling interest(3)(8)
Other comprehensive income (loss) attributable to Holdings$(3,123)$1,445 
_______________
(1)See “Reclassification adjustments” in Note 3. Reclassification amounts presented net of income tax expense (benefit) of $44 million, and $12 million for the three months ended March 31, 2021 and 2020, respectively
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.
11)    REDEEMABLE NONCONTROLLING INTEREST
The changes in the components of redeemable noncontrolling interests are presented in the table that follows:
Three Months Ended March 31,
 20212020
(in millions)
Balance, beginning of period$143 $365 
Net earnings (loss) attributable to redeemable noncontrolling interests0 (30)
Purchase/change of redeemable noncontrolling interests(6)(78)
Balance, end of period$137 $257 


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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
12)    COMMITMENTS AND CONTINGENT LIABILITIES
Litigation
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.
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.
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 possible 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 March 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 $150 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, Judicial Division of New Haven 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 November 2015, the Connecticut Federal District Court transferred this action to the United States District Court for the Southern District
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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
of New York. In March 2017, the Southern District of New York granted Equitable Financial’s motion to dismiss the complaint. In April 2017, the plaintiff filed a notice of appeal. In April 2018, the United States Court of Appeals for the Second Circuit reversed the trial court’s decision with instructions to remand the case to Connecticut state court. In September 2018, the Second Circuit issued its mandate, following Equitable Financial’s notification to the court that it would not file a petition for writ of certiorari. The case was transferred in December 2018 to the Connecticut Superior Court, Judicial District of Stamford. In December 2018, Equitable Financial sought dismissal of the complaint by filing a motion to strike, which the court granted in August 2019. Plaintiff filed an Amended Class Action Complaint in September 2019. Equitable Financial filed a motion for entry of judgment in October 2019. On August 3, 2020, the court granted Equitable Financial’s motion for entry of judgment. In August 2020, Plaintiff filed a notice of appeal. We are vigorously defending this matter.
In February 2016, a lawsuit was filed in the United States District Court for 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 2007, 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 current consolidated amended class action complaint alleges the following claims: breach of contract; misrepresentations by Equitable Financial 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 granting in part Brach Plaintiffs’ motion for class certification. The court certified 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 5 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. NaN actions are also pending against Equitable Financial in New York state court. Equitable Financial is vigorously defending each of these matters.
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 the 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).
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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
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 $472 million and pledged collateral with a carrying value of $6.7 billion as of March 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. The table below summarizes the Company’s activity of funding agreements with the FHLB.
Change in FHLB Funding Agreements during the Three Months Ended March 31, 2021
Outstanding Balance at December 31, 2020Issued During the PeriodRepaid During the PeriodLong-term Agreements Maturing Within One YearLong-term Agreements Maturing Within Five YearsOutstanding Balance at March 31, 2021
(in millions)
Short-term funding agreements:
Due in one year or less$5,634 $16,050 $12,724 $173 $0 $9,133 
Long-term funding agreements:
Due in years two through five722 0 0 (173)0 549 
Due in more than five years534 0 0 0 0 534 
Total long-term funding agreements1,256 0 0 (173)0 1,083 
Total funding agreements (1)$6,890 $16,050 $12,724 $0 $0 $10,216 
_____________
(1)The $6 million and $7 million difference between the funding agreements carrying value shown in fair value table for March 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, Equitable Financial may issue funding agreements 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 and maturity payment terms to the applicable Trust notes. The maximum aggregate principal amount of Trust notes permitted to be outstanding at any one time is $5 billion. Funding agreements issued to the Trust are reported in policyholders’ account balances in the consolidated balance sheets. The table below summarizes the Equitable Financial’s activity of funding agreements under the FABN.

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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
Change in FABN Funding Agreements during the Three Months Ended March 31, 2021
Outstanding Balance at December 31, 2020Issued During the PeriodRepaid During the PeriodLong-term Agreements Maturing Within One YearLong-term Agreements Maturing Within Five YearsOutstanding Balance at March 31,
2021
(in millions)
Short-term funding agreements:
Due in one year or less$0 $0 $0 $0 $0 $0 
Long-term funding agreements:
Due in years two through five1,150 450 0 0 0 1,600 
Due in more than five years800 750 0 0 0 1,550 
Total long-term funding agreements1,950 1,200 0 0 0 3,150 
Total funding agreements (1)$1,950 $1,200 $0 $0 $0 $3,150 
_____________
(1)The $18 million and $11 million difference between the funding agreements notional value shown and carrying value table as of March 31, 2021 and December 31, 2020, respectively, reflects the remaining amortization of the issuance cost of the funding agreements.
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. 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 and the third-party GMxB variable annuity business retroceded to CS Life RE. As of March 31, 2021, the Company had $150 million and $205 million of undrawn letters of credit issued out of the $1.5 billion sub-limit for CS Life and Equitable Financial, respectively, as beneficiaries.
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. These facilities support the life insurance business reinsured by EQ AZ Life Re. While the facilities with JP Morgan Chase Bank, N.A. and Citibank Europe PLC mature on February 16, 2023, the one with HSBC matures on February 2024 and the rest of the facilities mature on February 16, 2026.
Guarantees and Other Commitments
The Company provides certain guarantees or commitments to affiliates and others. As of March 31, 2021, these arrangements include commitments by the Company to provide equity financing of $1.3 billion (including $193 million with affiliates) 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 March 31, 2021. The Company had $456 million of commitments under existing mortgage loan agreements as of March 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.
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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
13)    BUSINESS SEGMENT INFORMATION
The Company has 4 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 related to 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 three months ended March 31, 2021 and 2020.
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EQUITABLE HOLDINGS, INC.
Notes to Consolidated Financial Statements (Unaudited), Continued
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 three months ended March 31, 2021 and 2020, respectively:
 Three Months Ended March 31,
 20212020
(in millions)
Net income (loss) attributable to Holdings$(1,488)$5,388 
Adjustments related to:
Variable annuity product features (1)2,267 (6,869)
Investment (gains) losses(183)(4)
Net actuarial (gains) losses related to pension and other postretirement benefit obligations