Risk Factors Update Summary

• Added Market Risk Benefits disclosure including GMIB, GMDB, GMWB, GMAB, and ROP DB benefits.
• Weighted-average common shares outstanding decreased significantly from 377 to 350 million. This change might impact earnings per share calculations.
• Net investment income increased by $746 million due to higher assets, yields, and income from seed capital investments.
• Policyholders' benefits increased by $132 million mainly due to equity market depreciation and higher mortality.
• Added information on the valuation of MRBs and reinsurance contracts to mitigate market fluctuations.
• Added requirement for the Guarantor to maintain Adjusted Consolidated Net Worth of at least $8,187,000,000 plus 50% of Net Proceeds of Equity Issuances after March 31, 2021.
• Added sensitivity analysis for MRBs to changes in interest rates and equity returns.
• Projected benefit obligation decreased from $3,180 million in 2022 to $2,900 million in 2023.
• The Company recorded an increase in net income by $159 million during 2020 due to corrections in the Treasury Inflation-Protected Securities hedging income.
• Amortization of DAC decreased by $174 million mainly due to losses in the Individual Retirement segment.
• Increase in total borrowings from $4.081 billion in 2022 to $4.074 billion in 2023.
• The maximum aggregate principal amount under the FABCP program is $3.0 billion for Equitable Financial and $1.0 billion for Equitable America.
• Disclosed potential government shutdown or default on the federal debt, impacting market volatility.
• Net income attributable to Holdings decreased by $851 million to $1.8 billion for the year ended December 31, 2023.
• Net derivative income attributable to noncontrolling interest increased by $100 million mainly due to gains.
• The company recognized additional credit losses on impaired securities, increasing from $9 million to $12 million.
• Increase in reinsurance ceded from ($716) million in 2022 to ($691) million in 2023.
• Investment yields were added as a new risk factor, reflecting a shift from lower alternative investment income. This change might result in a significant impact on income generation.
• Net derivative losses decreased by $4 million, mainly due to lower losses from TIPS hedging. This change might reduce the company's exposure to market risks.
• Equitable Financial and Equitable America established a FABCP program with $948 million and $0 million outstanding.
• Compensation, benefits, and operating expenses decreased by $133 million, offset by higher pension costs.
• Non-GAAP Operating Earnings decreased by $816 million to $32 billion for the year ended December 31, 2023.
• Net derivative gains increased by $742 million due to improved sales momentum and GMxB margin.
• Addition of conditions for LC issuance, including reduction notice and no default occurrence.
• Revenues decreased from $14 billion to $10 billion, a significant drop of $4 billion.
• New provision limiting Non-Operating Indebtedness to $500,000,000, excluding specified exceptions, and allowing up to $1,000,000,000 in surplus notes.
• Pension plan assets at fair value increased from $2,808 million in 2022 to $2,805 million in 2023.
• Added designated hedge accounting for derivatives: Currency swaps ($71M), Interest swaps ($69M), Total designated for hedge accounting ($71M).
• Increase in commercial paper outstanding from $0 in 2022 to $254 million in 2023.
• The Company made changes to its fixed maturities AFS, with an increase in total net assets from $506 million to $626 million.
• The company added detailed definitions for terms like "Material Adverse Effect" and "Material Subsidiary."
• The Company had a net decrease in income from operations of $5 million and a decrease in net income by $4 million due to assumption changes during 2023.
• Increased net derivative gains by $6.3 billion due to equity market appreciation in 2023.
• Addition of a Subsidiary Joinder Agreement with EQ AZ Life RE Company as a Subsidiary Account Party.
• Addition of detailed definitions for "Alternate Base Rate," "Benchmark," and related terms.
• Introduced fair value change related to the Company's own credit risk in Market Risk Benefits.
• The number of performance shares increased from 71 to 73 and RSUs decreased from 132 to 124.
• Introduced GMIB Lapse floor sensitivity analysis for MRBs.
• Addition of detailed tax definitions and indemnification clauses related to Taxes and Other Taxes.
• Net income attributable to Holdings' common shareholders increased from $222 million to $2,073 million. This is a substantial increase.
• Noted potential impacts of catastrophes or pandemics on sales and financial markets.
• Added information on Level 3 fair value measurements for investments, with significant unobservable inputs. This could impact valuations.
• Added uncertainty regarding the federal debt limit and potential U.S. government default.
• Added risks related to workforce interruptions due to disasters, affecting business operations.
• Total investments at fair value increased from $2,117 million in 2022 to $2,106 million in 2023.
• Impairments on securities to fair value increased from $52 million to $67 million.
• Included Nonperformance Risk Adjustment details and sensitivity to changes in credit spreads.
• Policyholders' benefits decreased from $2,754 million to $2,716 million, a reduction of $38 million.
• Added covenant for the Guarantor to maintain a Total Indebtedness to Total Capitalization Ratio not exceeding 0.35 to 1.00.
• Included the establishment of risk margins based on market conditions and assumptions like mortality and nonperformance risk.
• Net periodic pension expense decreased from $24 million in 2022 to $17 million in 2023.
• The Company updated its interest rate assumption, resulting in a loss of $206 million in net income.
• A new provision requires the Guarantor to designate additional Material Subsidiaries if total assets fall below 80%.
• The Company experienced a net increase in income from operations of $2.6 billion due to assumption updates during 2022.
• Compensation, benefits, and operating expenses decreased by $81 million due to lower fund expenses.
• Quantitative details on future policyholder behavior assumptions were included, affecting liability calculations.
• Policyholders' benefits increased by $167 million mainly due to growth in Employee Benefits.
• Mentioned Hamas's attack on Israel and conflicts, increasing market volatility.
• Inclusion of specific requirements for effectiveness, such as signed agreements and financial officer certification.
• Added not designated for hedge accounting: Equity contracts: Futures ($567M), Options ($3M), Interest rate contracts: Futures ($728M), Swaps ($2,317M).
• Total investments increased from $100.8 billion to $102.2 billion. This change might indicate a shift in investment strategy.
• Holdings authorized a new $1.3 billion share repurchase program, with $158 million remaining capacity.
• Compensation, benefits, and operating costs increased by $39 million due to higher interest expense and compensation.
• Changes in the Long-Term Incentive Compensation Program affecting vesting dates from 2026 to 2027.
• Fee-type revenue increased by $20 million, driven by higher premiums from growth in Employee Benefits and Life. This change may indicate a shift in revenue sources and business focus.
• Increase in sublease income from ($53) in 2022 to ($53) in 2023.
• Inclusion of specific requirements for documentation to avoid withholding tax and FATCA compliance.
• Financial Statement Schedules decreased from 232 to 243, and Data decreased from 1252 to 1192.
• Interest credited to policyholders' account balances increased by $9 million due to higher interest rates. This change may affect policyholder returns and company profitability.
• Reduction in current portion of long-term debt from $520 million in 2022 to $0 in 2023.
• Operating earnings of the Wealth Management segment increased by $58 million, driven by higher interest income and distribution fees. This change reflects improved segment performance and revenue growth.
• Inclusion of specific provisions for "Benchmark Replacement" and "Benchmark Transition Event."
• Income tax expense decreased by $644 million to $1.5 billion due to a partial valuation allowance release.
• Added risks related to cybersecurity breaches and data protection compliance.
• Disclosure of financial information requirements, including balance sheets and statements for specific periods.
• Added changes in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period ($2M).
• Schedule IV - Reinsurance increased from 2383 to 2503 for the year ended December 31, 2023.
• Increase in investment performance from $3.152 billion in 2022 to $2.654 billion in 2023.
• The definition of "Material Unpaid Derivative Product Indebtedness" was expanded to include early terminations due to defaults.
• Compensation and benefits decreased from $199 million to $328 million, a decrease of $129 million.
• Increase in reinsurance assumed from $180 million in 2022 to $174 million in 2023.
• Disclosed risks related to regulatory changes and market volatility due to upcoming U.S. presidential election.
• Introduction of a Clawback and Forfeiture Policy for recoupment of Incentive Compensation and Variable Compensation.
• Authorization for LC Issuer to set off and apply deposits against obligations in case of default.
• Fee-type revenue decreased by $836 million primarily due to lower fees and deferred gains.
• Changes in interest rates and cash flow assumptions impacted the balance and duration of additional insurance liabilities.
• Commissions and distribution-related payments increased by $20 million, mainly due to growth in Life and Employee Benefits. This change could impact overall revenue and expenses.
• Net unrealized investment gains (losses) on AFS fixed maturities decreased from $(6,999) million to $(9,606) million.
• Clarification on "Benchmark Replacement Adjustment" and "Benchmark Replacement Conforming Changes."
• Unrecognized net actuarial gains increased from $744 million in 2022 to $759 million in 2023.
• Income tax expense decreased by $16 million primarily due to lower pre-tax earnings. This change could impact the company's tax liabilities and overall financial performance.
• The Company saw a decrease in net income by $4 million due to assumption changes during 2023.
• The Company had a net increase in income from operations of $400 million and an increase in net income by $316 million due to assumption updates during 2021.
• Deferred policy acquisition costs decreased from $3.6 billion to $3.2 billion. This change might impact profitability.
• The company introduced definitions for terms like "Net Proceeds" and "Non-Operating Indebtedness."
• Equity in net other comprehensive income increased from $2.9 billion to $3.0 billion. This change might reflect market fluctuations.
• Material changes in the balance and weighted average durations of market risk benefits for GMxB features.
• The number of shares registered increased from 2022 to 2024.
• The LC Issuer now has the right to make Benchmark Replacement Conforming Changes without further consent.
• Net cash provided by operating activities increased from $1.8 billion to $2.4 billion. This change might indicate improved cash flow efficiency.
• The number of shares under the 2019 Omnibus Incentive Plan decreased from 2022 to 2024.
• Details on the revenue, interest, and weighted average interest rates related to additional insurance liabilities were provided.
• The LC Issuer may modify the definition of "Interest Period" for Benchmark settings if certain tenors become unavailable.
• Total equity attributable to Holdings increased from $8.4 billion to $11.6 billion. This change might indicate improved financial health.
• The number of shares under the 2021 Form 10-K decreased from 2021 to 2023.
• The LC Issuer has the discretion to liquidate investments in the Collateral Account during an Event of Default.
• The number of shares under the 2021 Form 10-K decreased from 2021 to 2023.