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Life Health > Annuities > Fixed Annuities

Equitable Joins S&P MidCap 400 Index

By Allison Bell

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Equitable Holdings uses S&P Dow Jones investment indexes in its products, and now its own stock will show up in a key S&P Dow Jones index.

S&P Dow Jones Indices has announced plans to put Equitable’s stock in the S&P MidCap 400 Index, an index for midsize stocks, starting Dec. 18.

Mark Pearson, the CEO of Equitable, said in a comment about the listing that he believes it will increase the company’s visibility.

“We see significant opportunity ahead for growth, underscored by favorable demographic trends, as we continue to meet our clients’ needs for advice, retirement income and asset management,” Pearson said.

What it means: What makes Equitable’s stock more visible could make life insurance companies, life insurance and annuities more visible, both to stock investors and to clients thinking about how to allocate their retirement nest eggs.

Equitable Holdings: Equitable is the New York-based parent of AllianceBernstein, an asset manager, and of the Equitable insurance business.

Equitable was founded in 1859 and later spent decades as part of AXA S.A. of Paris.

The company split off from AXA five years ago and put its stock on the New York Stock Exchange, under the symbol “EQH.”

The value of all Equitable stock on the market, or market capitalization level, is now about $10.7 billion, up from $8.8 billion at the end of 2018.

The S&P MidCap 400 Index: Companies on the S&P MidCap 400 Index must have market caps ranging from $5.2 billion and $14.5 billion and meet other listing criteria.

Equitable will be moving to the index to replace Vestis, a uniform and workplace supply company that’s shifting to the S&P SmallCap 600.

Some of the other life and health insurers and reinsurers included in the midcap index are Brighthouse Financial, CNO Financial, Fidelity National Financial, Primerica, Reinsurance Group of America, Unum and Voya.

Robin Raju, Equitable’s chief financial officer, said having a listing in an index like the S&P MidCap 400 Index can have a concrete effect on a company’s visibility and credibility, increasing exposure to potential new investors.

An index listing “sets the groundwork for future growth and a positive perception of one’s company, providing liquidity opportunities,” Raju said.

Credit: New York Stock Exchange

Allison Bell

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