Equitable Holdings Inc.: Takeaways from Our Meetings With Management

研报英文原文证据摘录

Equitable Holdings Inc.: Takeaways from Our Meetings With Management

n 52 Week range USD 56.61-35.20

objectives with minimal disruption from restructuring costs over the next few years. Bringing

these elements together, we see a good argument for upside to both growth and margins for the

combined Equitable/Corebridge entity. This is particularly notable given the stock continues to

trade at an attractive valuation relative to both earnings and cash flow.

Merits of the Transaction: Investor discussions were heavily focused on the strategic merits of

the recently announced merger, which management framed around several items: scale,

expense synergies, revenue synergies, capital diversification, and tax benefits. Among these, Source: IDC Link to Barclays Live for interactive charting

scale was emphasized as an important long-term driver. While the U.S. individual annuity

market is supported by favorable demographic tailwinds, competition has intensified with the

rise of private equity-backed insurers. Management believes that as the market consolidates, North America Insurance/Life

Alex Scott, CFAscale will be a defining factor in determining which players capture disproportionate share of

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growth. Expense synergies are another key component of the transaction and a near-term

alex.scott@barclays.com

execution priority. Management stressed that realizing these cost savings is essential to BCI, US

translating scale into a structurally lower unit cost base. At the same time, they were clear that

Justin Lee, CFAthe transaction is not solely about cost takeout. Revenue synergies, both those already

+1 212 526 0912

identified and those expected to emerge over time, are viewed as a meaningful source of

justin.lee@barclays.com

BCI, US

Barclays Capital Inc.