AXA Equitable Holdings Inc. is now getting about 60% of its variable annuity sales from the sale of contracts that offer no guaranteed minimum living benefits or guaranteed minimum death benefits.
Executives from the New York-based insurer talked about the evolution of the company’s annuity business today during a conference call the company held to brief securities analysts on its earnings for the second quarter.
AXA S.A. of Paris acquired AXA Equitable, and took its stock off the New York Stock Exchange, in 1991. AXA Equitable returned to the New York Stock Exchange May 10, after AXA sold a large portion of its stock in the company to the public through an initial public offering (IPO).
AXA Equitable held a conference call with analysts in June, to go over earnings for the first quarter, but this was the earnings call for the quarter that included the IPO.
Mark Pearson, AXA Equitable’s president, told analysts the company is doing well, and believes it is well-positioned to handle any changes in variable annuity reserving standards that may come out of the National Association of Insurance Commissioners.
Individual retirement unit earnings were strong in the second quarter, thanks to higher account values, better variable annuity margins and efforts to hold down expenses, Pearson said.
“Sales momentum also picked up in the second quarter, stemming from new distribution partnerships,” Pearson said. “And the overall sales mix remained good.”
AXA Equitable is reporting $255 million in net income for the second quarter on $3 billion in revenue, compared with $608 million in net income on $3.9 billion in revenue for the second quarter of 2017.