Corebridge Financial Announces First Quarter 2024 Results

Rhea-AI Summary

Corebridge Financial, Inc. (NYSE: CRBG) reported impressive first quarter results for 2024, with net income of $878 million, or $1.41 per share. Adjusted after-tax operating income was $688 million and operating EPS was $1.10 per share. Premiums and deposits reached $10.6 billion, with a base portfolio income growth of 18%. The company completed the Corebridge Forward modernization program ahead of schedule, generating $400 million in run rate savings. Additionally, the sale of the UK life insurance business to Aviva plc was finalized on April 8, 2024. The Board of Directors authorized a $2 billion increase to the share repurchase program, returning $386 million to shareholders this quarter. With a focus on profitable growth and disciplined expense management, Corebridge demonstrates resilience and strategic foresight in delivering shareholder value.

Positive

• Impressive net income of $878 million and $1.41 per share, showcasing strong financial performance for the first quarter of 2024.

• Achieved $688 million in adjusted after-tax operating income and operating EPS of $1.10 per share, indicating steady cash flow generation.

• Premiums and deposits amounted to $10.6 billion, with base portfolio income growing by 18% compared to the previous year quarter.

• Successful completion of the Corebridge Forward modernization program ahead of schedule, resulting in $400 million in run rate savings by April 30, 2024.

• Completion of the sale of the UK life insurance business to Aviva plc on April 8, 2024, enhancing strategic focus and operational efficiency.

Negative

• The net loss attributable to common shareholders in the previous year quarter was $459 million, reflecting potential volatility in financial performance.

• A decrease in underwriting margin for the Life Insurance segment, primarily driven by the sale of Laya Healthcare and reinsurance-related items, may pose challenges for revenue growth.

• Variable investment income declined by $26 million, or 93%, impacting the overall net investment income on an APTOI basis despite an 8% increase in net investment income.

• Corporate and Other segment reported a $151 million adjusted pre-tax operating loss, highlighting potential areas for operational improvement and cost optimization.

Insights

Financial Analyst

Corebridge Financial's reported net income leap from a previous year loss to $878 million indicates operational robustness and a more favorable investment climate. Their EPS growth to $1.41, combined with the 18% base portfolio income expansion, suggests they've effectively capitalized on the rising interest rate environment to generate higher investment yields. This is underlined by the significant 50 basis points base yield expansion, showcasing improved profitability on investment activities.

The sale of their UK life insurance business also appears strategically sound, potentially leading to a more focused operational roadmap and a balance sheet boost from the $550 million net proceeds. The decision to add $2 billion to the share repurchase program is a vote of confidence in Corebridge's financial health and could be accretive to shareholders by potentially increasing EPS and improving stock valuation through the reduction of outstanding shares.

Market Research Analyst

The uptick in premiums and deposits to $10.6 billion, although modest, is a positive sign of Corebridge's sales momentum and product competitiveness in the retirement product marketplace. With an aging U.S. demographic, the demand for annuity products is projected to grow, suggesting Corebridge's focus aligns with market trends. Additionally, the completion of the Corebridge Forward modernization program can be seen as an effort to streamline operations, achieving $400 million in savings and reducing general operating expenses by 10%, which could translate to improved margins over the long term.

Risk Management Analyst

From a risk management standpoint, the stable financial leverage ratio of 28.1% and the maintenance of the Life Fleet RBC Ratio above target levels signal a prudent approach to financial structuring and a potential buffer against volatility. Such diligence provides reassurance regarding Corebridge's risk management practices and its ability to sustain capital adequacy even amidst market fluctuations. The consistent dividend declarations further provide a perception of reliability and a tangible return to investors.

• Net income of $878 million, or $1.41 per share
• Adjusted after-tax operating income¹ of $688 million and operating EPS¹ of $1.10 per share
• Premiums and deposits¹ of $10.6 billion
• Base portfolio income² for insurance operating businesses grew 18% and base yield² expanded 50 basis points compared to the prior year quarter
• Completed modernization program Corebridge Forward ahead of plan, achieving or contracting on $400 million of run rate savings through April 30, 2024
• Completed sale of UK life insurance business to Aviva plc on April 8, 2024
• Board of Directors authorized $2 billion increase to share repurchase program
• Returned $386 million to shareholders, including $243 million of share repurchases, with a total of approximately $370 million shares repurchased this year through May 2, 2024

HOUSTON--(BUSINESS WIRE)-- Corebridge Financial, Inc. ("Corebridge" or the "Company") (NYSE: CRBG) today reported financial results for the first quarter ended March 31, 2024.

Kevin Hogan, President and Chief Executive Officer of Corebridge, said, "Corebridge had a very strong start to 2024 with operating earnings per share increasing 13% year over year to $1.10. These results demonstrate how our diversified business model delivers multiple sources of income leading to consistent cash flow generation and attractive shareholder returns.

"We grew our earnings by pursuing profitable organic growth with focused execution, and leveraging our broad product suite and distribution platform to help meet the needs of an aging U.S. population. We see a growing generation of advisors who are becoming more aware of the value of annuities in helping their clients prepare for retirement. This, together with the larger macroeconomic environment, helped Corebridge deliver $10.6 billion of premiums and deposits this quarter and $50 billion over the last five quarters, at attractive margins. At the same time, through overall expense discipline and the implementation of our modernization program Corebridge Forward, we reduced general operating expenses by 10% year over year.

"This week, our Board of Directors approved an increase of $2 billion to our existing share repurchase program, reflecting their ongoing confidence in our financial position and strategic direction. Our strong balance sheet is the result of a long-term commitment to measured growth, prudent risk management and disciplined asset and liability management. Looking ahead, we will continue to move with pace and purpose to grow the business, serve our customers and create long-term value for shareholders."

CONSOLIDATED RESULTS

			Three Months Ended March 31,
($ in millions, except per share data)				2024				2023
Net income (loss) attributable to common shareholders			$	878			$	(459	)
Income (loss) per common share attributable to common shareholders			$	1.41			$	(0.70	)
Weighted average shares outstanding - diluted				624.9				650.8
Adjusted after-tax operating income			$	688			$	632
Operating EPS			$	1.10			$	0.97
Weighted average shares outstanding - operating				624.9				652.8
Book value per common share			$	18.81			$	17.83
Adjusted book value per common share1			$	37.73			$	35.88
Total common shares outstanding				615.4				648.1
Pre-tax income (loss)			$	1,016			$	(669	)
Adjusted pre-tax operating income1			$	837			$	724
Premiums and deposits			$	10,595			$	10,341
Net investment income			$	2,924			$	2,695
Net investment income (APTOI basis)1			$	2,629			$	2,335
Base portfolio income - insurance operating businesses			$	2,645			$	2,249
Variable investment income2 - insurance operating businesses			$	2			$	28
Corporate and other3			$	(18	)		$	58
Return on average equity				30.1	%			(17.5	%)
Adjusted return on average equity1				11.9	%			10.8	%

Net income was $878 million compared to a net loss of $459 million in the prior year quarter. The change largely was driven by realized losses in the first quarter of 2023 for the Fortitude Re funds withheld embedded derivative and higher net investment income in the first quarter of 2024.

Adjusted pre-tax operating income ("APTOI") was $837 million, a 16% increase over the prior year quarter. Excluding variable investment income, APTOI grew 20% over the same period, primarily the result of higher base spread income², higher fee income² and lower expenses, partially offset by lower underwriting margin² driven by the sale of Laya Healthcare and one-time reinsurance-related items in the Life Insurance segment.

Premiums and deposits were $10.6 billion, a 2% increase over the prior year quarter. Excluding transactional activity (i.e., pension risk transfer, guaranteed investment contracts and Group Retirement plan acquisitions), premiums and deposits grew 3% over the same period primarily driven by growth in our spread-based products.

Net investment income was $2.9 billion, an 8% increase over the prior year quarter, and net investment income on an APTOI basis was $2.6 billion, a 13% increase over the same period. This improvement was due to higher base portfolio income, which grew $396 million, or 18%, over the prior year quarter. This increase was partially offset by variable investment income, which declined $26 million, or 93%, over the same period.

CAPITAL AND LIQUIDITY HIGHLIGHTS

• Holding company liquidity of $1.7 billion as of March 31, 2024
• Financial leverage ratio of 28.1%
• Life Fleet RBC Ratio remained above target
• Board of Directors authorized $2 billion increase to share repurchase program
• Returned $386 million to shareholders comprised of $243 million of share repurchases and $143 million of dividends
• Declared quarterly dividend of $0.23 per share of common stock on May 2, 2024, payable on June 28, 2024, to shareholders of record at the close of business on June 14, 2024

BUSINESS RESULTS

Individual Retirement		Three Months Ended March 31,
($ in millions)		2024			2023
Premiums and deposits		$	4,861		$	4,883
Spread income		$	713		$	623
Base spread income		$	709		$	618
Variable investment income		$	4		$	5
Fee income		$	307		$	277
Adjusted pre-tax operating income		$	622		$	534

• Premiums and deposits were consistent with the prior year quarter due to higher fixed annuity deposits offset by lower fixed index and variable annuity deposits
• Base net investment spread² of 2.44% expanded 13 basis points over the prior year quarter
• APTOI increased $88 million, or 16%, over the prior year quarter primarily due to higher base spread income and higher fee income

Group Retirement		Three Months Ended March 31,
($ in millions)		2024			2023
Premiums and deposits		$	2,054		$	2,246
Spread income		$	200		$	213
Base spread income		$	199		$	204
Variable investment income		$	1		$	9
Fee income		$	190		$	176
Adjusted pre-tax operating income		$	200		$	186

• Premiums and deposits decreased $192 million, or 9%, from the prior year quarter due to lower plan acquisitions and out-of-plan variable annuity deposits, partially offset by higher in-plan deposits along with higher out-of-plan fixed annuity and fixed index annuity deposits
• Base net investment spread of 1.53% expanded 1 basis point over the prior year quarter
• APTOI increased $14 million, or 8%, over the prior year quarter primarily due to higher fee income and lower expenses

Life Insurance		Three Months Ended March 31,
($ in millions)			2024			2023
Premiums and deposits		$	1,094			$	1,049
Underwriting margin		$	297			$	356
Underwriting margin excluding variable investment income		$	298			$	356
Variable investment income		$	(1	)		$	—
Adjusted pre-tax operating income		$	54			$	82

• Underwriting margin excluding variable investment income decreased 16% from prior year quarter primarily due to the 2023 sale of Laya Healthcare and one-time reinsurance-related items
• APTOI decreased $28 million, or 34%, from the prior quarter primarily due to one-time reinsurance-related items, partially offset by higher base portfolio income and lower expenses
• Sale of UK life insurance business closed on April 8, 2024, for net proceeds of $550 million

Institutional Markets		Three Months Ended March 31,
($ in millions)			2024			2023
Premiums and deposits		$	2,586			$	2,163
Spread income		$	106			$	82
Base spread income		$	108			$	68
Variable investment income		$	(2	)		$	14
Fee income		$	16			$	16
Underwriting margin		$	18			$	17
Underwriting margin excluding variable investment income		$	18			$	17
Variable investment income		$	—			$	—
Adjusted pre-tax operating income		$	112			$	85

• Premiums and deposits increased $423 million, or 20%, over the prior year quarter driven by increased premiums from pension risk transfer transactions and higher deposits from guaranteed investment contracts
• APTOI increased $27 million, or 32%, over the prior year quarter primarily due to higher spread income

Corporate and Other		Three Months Ended March 31,
($ in millions)			2024				2023
Corporate expenses		$	(39	)		$	(48	)
Interest on financial debt		$	(107	)		$	(108	)
Asset management		$	14			$	—
Consolidated investment entities		$	(1	)		$	—
Other		$	(18	)		$	(7	)
Adjusted pre-tax operating income (loss)		$	(151	)		$	(163	)

• APTOI increased $12 million over the prior year quarter primarily due to lower corporate expenses driven by Corebridge Forward, our modernization program delivering both expense reduction and increased efficiency

_____________________________

1 This release refers to financial measures not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their most directly comparable GAAP measures can be found in "Non-GAAP Financial Measures" below

2 This release refers to key operating metrics and key terms. Information about these metrics and terms can be found in "Key Operating Metrics and Key Terms" below

3 Includes consolidations and eliminations

CONFERENCE CALL

Corebridge will host a conference call on Friday, May 3, 2024, at 8:30 a.m. EDT to review these results. The call is open to the public and can be accessed via a live listen-only webcast in the Investors section of corebridgefinancial.com. A replay will be available after the call at the same location.

Supplemental financial data and our investor presentation are available in the Investors section of corebridgefinancial.com.

About Corebridge Financial

Corebridge Financial, Inc. makes it possible for more people to take action in their financial lives. With more than $390 billion in assets under management and administration as of March 31, 2024, Corebridge Financial is one of the largest providers of retirement solutions and insurance products in the United States. We proudly partner with financial professionals and institutions to help individuals plan, save for and achieve secure financial futures. For more information, visit corebridgefinancial.com and follow us on LinkedIn and YouTube. These references with additional information about Corebridge have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.

In the discussion below, “we,” “us” and “our” refer to Corebridge and its consolidated subsidiaries, unless the context refers solely to Corebridge as a corporate entity.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Certain statements in this press release and other publicly available documents may include statements of historical or present fact, which, to the extent they are not statements of historical or present fact, constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as “expects,” “believes,” “anticipates,” “intends,” “seeks,” “aims,” “plans,” “assumes,” “estimates,” “projects,” “is optimistic,” “targets," “should,” “would,” “could,” “may,” “will,” “shall” or variations of such words are generally part of forward-looking statements. Also, forward-looking statements include, without limitation, all matters that are not historical facts. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Corebridge. There can be no assurance that future developments affecting Corebridge will be those anticipated by management.

Any forward-looking statements included herein are not a guarantee of future performance and involve risks and uncertainties, and there are certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected or implied in such forward-looking statements, including, among others, risks related to:

• changes in interest rates and changes to credit spreads, the deterioration of economic conditions, an economic slowdown or recession, changes in market conditions, weakening in capital markets, volatility in equity markets, inflationary pressures, pressures on the commercial real estate market, uncertainty regarding a potential U.S. federal government shutdown, and geopolitical tensions, including the ongoing armed conflicts between Ukraine and Russia and in the Middle East;
• unpredictability of the amount and timing of insurance liability claims;
• uncertainty and unpredictability related to our reinsurance agreements with Fortitude Reinsurance Company Ltd and its performance of its obligations under these agreements;
• our investment portfolio and concentration of investments, including risks related to realization of gross unrealized losses on fixed maturity securities and changes in investment valuations;
• liquidity, capital and credit, including risks related to our ability to access funds from our subsidiaries, our ability to obtain financing on favorable terms or at all, our ability to incur indebtedness, our potential inability to refinance all or a portion of our existing indebtedness, the illiquidity of some of our investments, a downgrade in the insurer financial strength ratings of our insurance company subsidiaries or our credit ratings, and non-performance by counterparties;
• the failure of third parties that we rely upon to provide and adequately perform certain business, operations, investment advisory, functional support and administrative services on our behalf, the availability of our critical technology systems, our risk management policies becoming ineffective, significant legal, governmental or regulatory proceedings, or our business strategy becoming ineffective;
• our ability to compete effectively in a heavily regulated industry, in light of new domestic or international laws and regulations or new interpretations of current laws and regulations;
• estimates and assumptions, including risks related to estimates or assumptions used in the preparation of our financial statements differing materially from actual experience, the effectiveness of our productivity improvement initiatives and impairments of goodwill;
• the intense competition we face in each of our business lines and the technological changes, including the use of artificial intelligence, that may present new and intensified challenges to our business;
• our inability to attract and retain key employees and highly skilled people needed to support our business;
• our arrangements with Blackstone ISG-1 Advisors L.L.C. (“Blackstone IM”), BlackRock Financial Management, Inc. or any other asset manager we retain, including their historical performance not being indicative of the future results of our investment portfolio and the exclusivity of certain arrangements with Blackstone IM;
• our separation from AIG, including risks related to the replacement or replication of functions in a timely manner or at all and the loss of benefits from AIG’s global contracts, our inability to file a single U.S. consolidated income federal income tax return for a five-year period, challenges related to being a public company and limitations on our ability to use deferred tax assets to offset future taxable income; and
• other factors discussed in “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2023, as well as our Quarterly Reports on Form 10-Q.

Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law. You are advised, however, to consult any further disclosures we make on related subjects in our filings with the Securities and Exchange Commission ("SEC").

NON-GAAP FINANCIAL MEASURES

Throughout this release, we present our financial condition and results of operations in the way we believe will be most meaningful and representative of our business results. Some of the measurements we use are ‘‘non-GAAP financial measures’’ under SEC rules and regulations. We believe presentation of these non-GAAP financial measures allows for a deeper understanding of the profitability drivers of our business, results of operations, financial condition and liquidity. These measures should be considered supplementary to our results of operations and financial condition that are presented in accordance with GAAP and should not be viewed as a substitute for GAAP measures. The non-GAAP financial measures we present may not be comparable to similarly named measures reported by other companies.

Adjusted pre-tax operating income (“APTOI”) is derived by excluding the items set forth below from income from operations before income tax. These items generally fall into one or more of the following broad categories: legacy matters having no relevance to our current businesses or operating performance; adjustments to enhance transparency to the underlying economics of transactions; and recording adjustments to APTOI that we believe to be common in our industry. We believe the adjustments to pre-tax income are useful for gaining an understanding of our overall results of operations.

APTOI excludes the impact of the following items:

FORTITUDE RE RELATED ADJUSTMENTS:

The modified coinsurance (“modco”) reinsurance agreements with Fortitude Re transfer the economics of the invested assets supporting the reinsurance agreements to Fortitude Re. Accordingly, the net investment income on Fortitude Re funds withheld assets and the net realized gains (losses) on Fortitude Re funds withheld assets are excluded from APTOI. Similarly, changes in the Fortitude Re funds withheld embedded derivative are also excluded from APTOI.

The ongoing results associated with the reinsurance agreement with Fortitude Re have been excluded from APTOI as these are not indicative of our ongoing business operations.

INVESTMENT RELATED ADJUSTMENTS:

APTOI excludes “Net realized gains (losses)”, except for gains (losses) related to the disposition of real estate investments. Net realized gains (losses), except for gains (losses) related to the disposition of real estate investments, are excluded as the timing of sales on invested assets or changes in allowances depend largely on market credit cycles and can vary considerably across periods. In addition, changes in interest rates may create opportunistic scenarios to buy or sell invested assets. Our derivative results, including those used to economically hedge insurance liabilities or are recognized as embedded derivatives at fair value are also included in Net realized gains (losses) and are similarly excluded from APTOI except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedges or for asset replication. Earned income on such economic hedges is reclassified from Net realized gains and losses to specific APTOI line items based on the economic risk being hedged (e.g., Net investment income and Interest credited to policyholder account balances).

MARKET RISK BENEFIT ADJUSTMENTS (“MRBs”):

Certain of our variable annuity, fixed annuity and fixed index annuity contracts contain guaranteed minimum withdrawal benefits (“GMWBs”) and/or guaranteed minimum death benefits (“GMDBs”) which are accounted for as MRBs. Changes in the fair value of these MRBs (excluding changes related to our own credit risk), including certain rider fees attributed to the MRBs, along with changes in the fair value of derivatives used to hedge MRBs are recorded through “Change in the fair value of MRBs, net” and are excluded from APTOI.

Changes in the fair value of securities used to economically hedge MRBs are excluded from APTOI.

OTHER ADJUSTMENTS:

Other adjustments represent all other adjustments that are excluded from APTOI and includes the net pre-tax operating income (losses) from noncontrolling interests related to consolidated investment entities. The excluded adjustments include, as applicable:

• restructuring and other costs related to initiatives designed to reduce operating expenses, improve efficiency and simplify our organization;
• non-recurring costs associated with the implementation of non-ordinary course legal or regulatory changes or changes to accounting principles;
• separation costs;
• non-operating litigation reserves and settlements;
• loss (gain) on extinguishment of debt, if any;
• losses from the impairment of goodwill, if any; and
• income and loss from divested or run-off business, if any.

Adjusted after-tax operating income attributable to our common shareholders (“Adjusted After-tax Operating Income” or “AATOI”) is derived by excluding the tax effected APTOI adjustments described above, as well as the following tax items from net income attributable to us:

• reclassifications of disproportionate tax effects from AOCI, changes in uncertain tax positions and other tax items related to legacy matters having no relevance to our current businesses or operating performance; and
• deferred income tax valuation allowance releases and charges.

Adjusted Book Value is derived by excluding AOCI, adjusted for the cumulative unrealized gains and losses related to Fortitude Re’s funds withheld assets. We believe this measure is useful to investors as it eliminates the asymmetrical impact resulting from changes in fair value of our available-for-sale securities portfolio for which there is largely no offsetting impact for certain related insurance liabilities that are not recorded at fair value with changes in fair value recorded through OCI. It also eliminates asymmetrical impacts where our own credit non-performance risk is recorded through OCI. In addition, we adjust for the cumulative unrealized gains and losses related to Fortitude Re’s funds withheld assets since these fair value movements are economically transferred to Fortitude Re.

Adjusted Book Value per Common Share is computed as adjusted book value divided by total common shares outstanding.

Adjusted Return on Average Equity (“Adjusted ROAE”) is derived by dividing AATOI by average Adjusted Book Value and is used by management to evaluate our recurring profitability and evaluate trends in our business. We believe this measure is useful to investors as it eliminates the asymmetrical impact resulting from changes in fair value of our available-for-sale securities portfolio for which there is largely no offsetting impact for certain related insurance liabilities that are not recorded at fair value with changes in fair value recorded through OCI. It also eliminates asymmetrical impacts where our own credit non-performance risk is recorded through OCI. In addition, we adjust for the cumulative unrealized gains and losses related to Fortitude Re’s funds withheld assets since these fair value movements are economically transferred to Fortitude Re.

Adjusted revenues exclude Net realized gains (losses) except for gains (losses) related to the disposition of real estate investments, income from non-operating litigation settlements (included in Other income for GAAP purposes) and changes in fair value of securities used to hedge guaranteed living benefits (included in Net investment income for GAAP purposes).

Assets Under Management and Administration

• Assets Under Management ("AUM") include assets in the general and separate accounts of our subsidiaries that support liabilities and surplus related to our life and annuity insurance products.
• Assets Under Administration ("AUA") include Group Retirement mutual fund assets and other third-party assets that we sell or administer and the notional value of Stable Value Wrap ("SVW") contracts.
• Assets Under Management and Administration ("AUMA") is the cumulative amount of AUM and AUA.

Net investment income (APTOI basis) is the sum of base portfolio income and variable investment income.

Operating Earnings per Common Share ("Operating EPS") is derived by dividing AATOI by weighted average diluted shares.

Premiums and deposits is a non-GAAP financial measure that includes direct and assumed premiums received and earned on traditional life insurance policies and life-contingent payout annuities, as well as deposits received on universal life insurance, investment-type annuity contracts and GICs. We believe the measure of premiums and deposits is useful in understanding customer demand for our products, evolving product trends and our sales performance period over period.

KEY OPERATING METRICS AND KEY TERMS

Base net investment spread means base yield less cost of funds, excluding the amortization of deferred sales inducement assets.

Base spread income means base portfolio income less interest credited to policyholder account balances, excluding the amortization of deferred sales inducement assets.

Base yield means the returns from base portfolio income including accretion and impacts from holding cash and short-term investments.

Cost of funds means the interest credited to policyholders excluding the amortization of deferred sales inducement assets.

Fee and Spread Income and Underwriting Margin

• Fee income is defined as policy fees plus advisory fees plus other fee income. For our Institutional Markets segment, its SVW products generate fee income.
• Spread income is defined as net investment income less interest credited to policyholder account balances, exclusive of amortization of deferred sales inducement assets. Spread income is comprised of both base spread income and variable investment income. For our Institutional Markets segment, its structured settlements, PRT and GIC products generate spread income, which includes premiums, net investment income, less interest credited and policyholder benefits and excludes the annual assumption update.
• Underwriting margin for our Life Insurance segment includes premiums, policy fees, other income, net investment income, less interest credited to policyholder account balances and policyholder benefits and excludes the annual assumption update. For our Institutional Markets segment, its Corporate Markets products generate underwriting margin, which includes premiums, net investment income, policy and advisory fee income, less interest credited and policyholder benefits and excludes the annual assumption update.

Financial leverage ratio means the ratio of financial debt to the sum of financial debt plus Adjusted Book Value plus non-redeemable noncontrolling interests.

Life Fleet RBC Ratio

• Life Fleet means American General Life Insurance Company (“AGL”), The United States Life Insurance Company in the City of New York (“USL”) and The Variable Annuity Life Insurance Company (“VALIC”).
• Life Fleet RBC Ratio is the risk-based capital (“RBC”) ratio for the Life Fleet RBC ratios are quoted using the Company Action Level.

Net Investment Income

• Base portfolio income includes interest, dividends and foreclosed real estate income, net of investment expenses and non-qualifying (economic) hedges.
• Variable investment income includes call and tender income, commercial mortgage loan prepayments, changes in market value of investments accounted for under the fair value option, interest received on defaulted investments (other than foreclosed real estate), income from alternative investments and other miscellaneous investment income, including income of certain partnership entities that are required to be consolidated. Alternative investments include private equity funds which are generally reported on a one-quarter lag.

RECONCILIATIONS

The following tables present a reconciliation of pre-tax income (loss)/net income (loss) attributable to Corebridge to adjusted pre-tax operating income (loss)/adjusted after-tax operating income (loss) attributable to Corebridge:

Three Months Ended March 31,	2024												2023
(in millions)	Pre-tax			Total Tax (Benefit) Charge			Non- controlling Interests			After Tax			Pre-tax			Total Tax (Benefit) Charge			Non- controlling Interests			After Tax
Pre-tax income/net income, including noncontrolling interests	$	1,016		$	189		$	—		$	827		$	(669	)	$	(216	)	$	—		$	(453	)
Noncontrolling interests		—			—			51			51			—			—			(6	)		(6	)
Pre-tax income/net income attributable to Corebridge		1,016			189			51			878			(669	)		(216	)		(6	)		(459	)
Fortitude Re related items
Net investment (income) on Fortitude Re funds withheld assets		(332	)		(71	)		—			(261	)		(394	)		(87	)		—			(307	)
Net realized (gains) losses on Fortitude Re funds withheld assets		164			35			—			129			(20	)		(4	)		—			(16	)
Net realized (gains) losses on Fortitude Re funds withheld embedded derivative		(22	)		(5	)		—			(17	)		1,025			227			—			798
Subtotal Fortitude Re related items		(190	)		(41	)		—			(149	)		611			136			—			475
Other reconciling Items:
Reclassification of disproportionate tax effects from AOCI and other tax adjustments		—			26			—			(26	)		—			21			—			(21	)
Deferred income tax valuation allowance (releases) charges		—			(17	)		—			17			—			(16	)		—			16
Change in fair value of market risk benefits, net		(369	)		(77	)		—			(292	)		196			41			—			155
Changes in fair value of securities used to hedge guaranteed living benefits		1			—			—			1			3			1			—			2
Changes in benefit reserves related to net realized gains (losses)		(3	)		(1	)		—			(2	)		(5	)		(1	)		—			(4	)
Net realized (gains) losses(1)		222			47			—			175			508			107			—			401
Separation costs		67			14			—			53			52			11			—			41
Restructuring and other costs		47			10			—			37			27			6			—			21
Non-recurring costs related to regulatory or accounting changes		—			—			—			—			4			1			—			3
Net (gain) loss on divestiture		(5	)		(1	)		—			(4	)		3			1			—			2
Noncontrolling interests		51			—			(51	)		—			(6	)		—			6			—
Subtotal: Non-Fortitude Re reconciling items		11			1			(51	)		(41	)		782			172			6			616
Total adjustments		(179	)		(40	)		(51	)		(190	)		1,393			308			6			1,091
Adjusted pre-tax operating income (loss)/Adjusted after-tax operating income (loss) attributable to Corebridge	$	837		$	149		$	—		$	688		$	724		$	92		$	—		$	632
(1) Includes all net realized gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedging or for asset replication. Additionally, gains (losses) related to the disposition of real estate investments are also excluded from this adjustment

The following table presents Corebridge’s adjusted pre-tax operating income by segment:

(in millions)	Individual Retirement		Group Retirement		Life Insurance		Institutional Markets		Corporate & Other			Eliminations			Total Corebridge
Three Months Ended March 31, 2024
Premiums	$	41	$	5	$	434	$	1,796	$	19		$	—		$	2,295
Policy fees		191		107		368		48		—			—			714
Net investment income		1,339		495		326		487		(10	)		(8	)		2,629
Net realized gains (losses)(1)		—		—		—		—		(8	)		—			(8	)
Advisory fee and other income		116		83		—		1		23			—			223
Total adjusted revenues		1,687		690		1,128		2,332		24			(8	)		5,853
Policyholder benefits		36		3		748		2,023		—			—			2,810
Interest credited to policyholder account balances		639		298		83		169		—			—			1,189
Amortization of deferred policy acquisition costs		149		21		94		3		—			—			267
Non-deferrable insurance commissions		90		29		19		5		—			—			143
Advisory fee expenses		35		33		—		—		—			—			68
General operating expenses		116		106		130		20		86			—			458
Interest expense		—		—		—		—		137			(5	)		132
Total benefits and expenses		1,065		490		1,074		2,220		223			(5	)		5,067
Noncontrolling interests		—		—		—		—		51			—			51
Adjusted pre-tax operating income (loss)	$	622	$	200	$	54	$	112	$	(148	)	$	(3	)	$	837

(in millions)	Individual Retirement		Group Retirement		Life Insurance		Institutional Markets		Corporate & Other			Eliminations			Total Corebridge
Three Months Ended March 31, 2023
Premiums	$	78	$	6	$	425	$	1,575	$	20		$	—		$	2,104
Policy fees		174		100		375		49		—			—			698
Net investment income		1,128		500		317		332		68			(10	)		2,335
Net realized gains (losses)(1)		—		—		—		—		4			—			4
Advisory fee and other income		103		76		29		—		14			—			222
Total adjusted revenues		1,483		682		1,146		1,956		106			(10	)		5,363
Policyholder benefits		65		9		708		1,718		—			—			2,500
Interest credited to policyholder account balances		519		291		82		123		—			—			1,015
Amortization of deferred policy acquisition costs		137		21		96		2		—			—			256
Non-deferrable insurance commissions		86		28		17		5		—			—			136
Advisory fee expenses		34		29		2		—		—			—			65
General operating expenses		108		118		159		23		91			—			499
Interest expense		—		—		—		—		172			(10	)		162
Total benefits and expenses		949		496		1,064		1,871		263			(10	)		4,633
Noncontrolling interests		—		—		—		—		(6	)		—			(6	)
Adjusted pre-tax operating income (loss)	$	534	$	186	$	82	$	85	$	(163	)	$	—		$	724
(1) Net realized gains (losses) includes the gains (losses) related to the disposition of real estate investments

The following table presents a summary of Corebridge's spread income, fee income and underwriting margin:

	Three Months Ended March 31,
(in millions)	2024			2023
Individual Retirement
Spread income	$	713		$	623
Fee income		307			277
Total Individual Retirement		1,020			900
Group Retirement
Spread income		200			213
Fee income		190			176
Total Group Retirement		390			389
Life Insurance
Underwriting margin		297			356
Total Life Insurance		297			356
Institutional Markets
Spread income		106			82
Fee income		16			16
Underwriting margin		18			17
Total Institutional Markets		140			115
Total
Spread income		1,019			918
Fee income		513			469
Underwriting margin		315			373
Total	$	1,847		$	1,760

The following table presents Life Insurance underwriting margin:

	Three Months Ended March 31,
(in millions)		2024				2023
Premiums	$	434			$	425
Policy fees		368				375
Net investment income		326				317
Other income		—				29
Policyholder benefits		(748	)			(708	)
Interest credited to policyholder account balances		(83	)			(82	)
Underwriting margin	$	297			$	356

The following table presents Institutional Markets spread income, fee income and underwriting margin:

	Three Months Ended March 31,
(in millions)		2024				2023
Premiums	$	1,805			$	1,583
Net investment income		449				298
Policyholder benefits		(2,006	)			(1,702	)
Interest credited to policyholder account balances		(142	)			(97	)
Spread income(1)	$	106			$	82
SVW fees		16				16
Fee income	$	16			$	16
Premiums		(9	)			(8	)
Policy fees (excluding SVW)		32				33
Net investment income		38				34
Other income		1				—
Policyholder benefits		(17	)			(16	)
Interest credited to policyholder account balances		(27	)			(26	)
Underwriting margin(2)	$	18			$	17
(1) Represents spread income from Pension Risk Transfer, Guaranteed Investment Contracts and Structured Settlement products
(2) Represents underwriting margin from Corporate Markets products, including COLI-BOLI, private placement variable universal life insurance and private placement variable annuity products

The following table presents Operating EPS:

	Three Months Ended March 31,
(in millions, except per common share data)		2024				2023
GAAP Basis
Numerator for EPS
Net income (loss)	$	827			$	(453	)
Less: Net income (loss) attributable to noncontrolling interests		(51	)			6
Net income (loss) attributable to Corebridge common shareholders	$	878			$	(459	)
Denominator for EPS
Weighted average common shares outstanding - basic(1)		624.0				650.8
Dilutive common shares(2)		0.9				—
Weighted average common shares outstanding - diluted		624.9				650.8
Income per common share attributable to Corebridge common shareholders
Common stock - basic	$	1.41			$	(0.70	)
Common stock - diluted	$	1.41			$	(0.70	)
Operating Basis
Adjusted after-tax operating income attributable to Corebridge shareholders	$	688			$	632
Weighted average common shares outstanding - diluted		624.9				652.8
Operating earnings per common share	$	1.10			$	0.97
(1) Includes vested shares under our share-based employee compensation plans
(2) Potential dilutive common shares include our share-based employee compensation plans

The following table presents the reconciliation of Adjusted Book Value:

At Period End	March 31, 2024				December 31, 2023				March 31, 2023
(in millions, except per share data)
Total Corebridge shareholders' equity (a)	$	11,576			$	11,766			$	11,555
Less: Accumulated other comprehensive income (AOCI)		(14,139	)			(13,458	)			(14,067	)
Add: Cumulative unrealized gains and losses related to Fortitude Re funds withheld assets		(2,497	)			(2,332	)			(2,365	)
Total adjusted book value (b)	$	23,218			$	22,892			$	23,257
Total common shares outstanding (c)(1)		615.4				621.7				648.1
Book value per common share (a/c)	$	18.81			$	18.93			$	17.83
Adjusted book value per common share (b/c)	$	37.73			$	36.82			$	35.88
(1) Total common shares outstanding are presented net of treasury stock

The following table presents the reconciliation of Adjusted ROAE:

	Three Months Ended March 31,
(in millions, unless otherwise noted)		2024				2023
Actual or annualized net income (loss) attributable to Corebridge shareholders (a)	$	3,512			$	(1,836	)
Actual or annualized adjusted after-tax operating income attributable to Corebridge shareholders (b)		2,752				2,528
Average Corebridge Shareholders’ equity (c)		11,671				10,468
Less: Average AOCI		(13,799	)			(15,465	)
Add: Average cumulative unrealized gains and losses related to Fortitude Re funds withheld assets		(2,415	)			(2,586	)
Average Adjusted Book Value (d)	$	23,055			$	23,347

Return on Average Equity (a/c)	30.1	%		(17.5	)%
Adjusted ROAE (b/d)	11.9	%		10.8	%

The following table presents a reconciliation of net investment income (net income basis) to net investment income (APTOI basis):

	Three Months Ended March 31,
(in millions)		2024				2023
Net investment income (net income basis)	$	2,924			$	2,695
Net investment (income) on Fortitude Re funds withheld assets		(332	)			(394	)
Change in fair value of securities used to hedge guaranteed living benefits		(18	)			(13	)
Other adjustments		(6	)			(10	)
Derivative income recorded in net realized gains (losses)		61				57
Total adjustments		(295	)			(360	)
Net investment income (APTOI basis)	$	2,629			$	2,335

The following table presents the premiums and deposits:

	Three Months Ended March 31,
(in millions)		2024				2023
Individual Retirement
Premiums	$	41			$	78
Deposits		4,822				4,807
Other(1)		(2	)			(2	)
Premiums and deposits		4,861				4,883
Group Retirement
Premiums		5				6
Deposits		2,049				2,240
Premiums and deposits(2)(3)		2,054				2,246
Life Insurance
Premiums		434				425
Deposits		393				398
Other(1)		267				226
Premiums and deposits		1,094				1,049
Institutional Markets
Premiums		1,796				1,575
Deposits		781				581
Other(1)		9				7
Premiums and deposits		2,586				2,163
Total
Premiums		2,276				2,084
Deposits		8,045				8,026
Other(1)		274				231
Premiums and deposits	$	10,595			$	10,341
(1) Other principally consists of ceded premiums, in order to reflect gross premiums and deposits
(2) Includes premiums and deposits related to in-plan mutual funds of $791 million and $1,011 million for the three months ended March 31, 2024 and March 31, 2023, respectively
(3) Excludes client deposits into advisory and brokerage accounts of $730 million and $542 million for the three months ended March 31, 2024 and March 31, 2023, respectively

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240501602059/en/

Işıl Müderrisoğlu (Investors): investorrelations@corebridgefinancial.com

Matt Ward (Media): media.contact@corebridgefinancial.com

Source: Corebridge Financial

FAQ

What is Corebridge Financial's stock symbol?

Corebridge Financial's stock symbol is CRBG on the NYSE.

What were Corebridge Financial's net income and operating EPS for the first quarter of 2024?

Corebridge Financial reported a net income of $878 million and operating EPS of $1.10 per share for the first quarter of 2024.

When did Corebridge Financial complete the sale of its UK life insurance business?

Corebridge Financial completed the sale of its UK life insurance business on April 8, 2024, to Aviva plc.

How much did Corebridge Financial return to shareholders through share repurchases this year?

Corebridge Financial returned approximately $370 million to shareholders through share repurchases this year.

What was the Board of Directors' decision regarding the share repurchase program?

The Board of Directors authorized a $2 billion increase to the share repurchase program, reflecting confidence in the company's financial position.

Where can investors access supplemental financial data and the investor presentation?

Supplemental financial data and the investor presentation are available in the Investors section of corebridgefinancial.com.