Equitable Holdings (EQH, Financial) (EQH - $30.45 – NYSE) is a leading provider of life insurance, annuities, and retirementplans. rough its majority ownership in AllianceBernstein (AB - $xx – NYSE) it also has a sizable presence in the asset management industry. Despite reporting strong rst quarter earnings and closing the sale of a portion of an old variable annuity block, shares underperformed in the quarter. We think that this was mostly due to the fall in interest rates in the second half of the quarter. Over time, lower rates hurt the earnings of life insurers as they reduce reinvestment rates in the companies’ investment portfolios. While EQH is arguably less sensitive to this impact, it shows up in the stocks well before it shows up in earnings.
From Keeley Asset Management Corp (Trades, Portfolio)'s Small-Mid Cap Value Fund second-quarter 2021 letter.
