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Corebridge Financial Announces Fourth Quarter and Full Year 2023 Results

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Corebridge Financial, Inc. (CRBG) reports strong financial performance in Q4 and full year 2023 with significant increases in premiums, deposits, base spread income, and adjusted after-tax operating income. Despite a net loss in Q4, the company returned $2.2 billion to shareholders in 2023, demonstrating resilience and commitment to value creation.
Positive
  • Significant increases in premiums and deposits of $10.5 billion in Q4 and $39.9 billion in full year 2023, marking a 20% and 26% growth respectively over the prior year.
  • Base spread income saw a 21% increase in Q4 and a 30% increase in full year 2023 compared to the previous year.
  • Adjusted after-tax operating income reached $661 million in Q4 and $2.6 billion in full year 2023, showing a 12% growth year-over-year.
  • Net loss of $1.3 billion in Q4 and net income of $1.1 billion in full year 2023, with adjusted operating EPS of $1.04 in Q4 and $4.10 for the year.
  • Returned $1.1 billion to shareholders in Q4 and $2.2 billion in 2023, maintaining a strong balance sheet and capital return strategy.
  • Maintained a robust financial position with a Life Fleet RBC Ratio above 400% and declared a quarterly dividend of $0.23 per share of common stock.
  • Focused on creating long-term value for shareholders through strategic investments, disciplined risk management, and financial flexibility.
  • Positioned for continued success in 2024 with a diversified business model, broad distribution platform, and commitment to capital return.
Negative
  • None.

Insights

The reported financial results indicate a complex picture for Corebridge Financial, Inc. The 20% increase in quarterly premiums and deposits and the 21% rise in base spread income suggest a strong operational performance. However, the net loss of $1.3 billion for the quarter, contrasted with a net income of $1.1 billion for the full year, points to significant one-off items impacting the quarterly results, such as the realized losses from the Fortitude Re funds withheld embedded derivative.

The increase in base yield by 45 basis points over the prior year quarter is a positive signal, indicating improved investment income on insurance products. Yet, the discrepancy between the net loss for the quarter and the full-year net income warrants a deeper look into the volatility of certain investments and the robustness of the company's hedging strategies.

The capital return to shareholders, including share repurchases and dividends, totaling $2.2 billion for the year, reflects a strong commitment to shareholder value. However, the 84% payout ratio is significantly high and could raise questions about the sustainability of such returns, especially in light of the quarterly net loss.

Corebridge's diversified portfolio and the 26% year-over-year increase in premiums and deposits indicates successful market penetration and product uptake. The growth in sales of spread-based products by 60% is particularly impressive and suggests that Corebridge's product offerings are well-aligned with current market demands. This could be due to favorable market conditions or effective sales strategies, or a combination of both.

Despite the positive sales and revenue figures, the market may react cautiously to the reported net loss. Investors typically scrutinize such discrepancies to understand the underlying reasons. The Life Fleet RBC Ratio remaining above 400% is a reassuring factor, indicating that the company maintains a solid capital position to cover its insurance risks.

Looking forward, the company's strategic moves, such as the sale of international operations, signal a focus on optimizing its portfolio for risk-adjusted returns. These strategic decisions could have significant implications for Corebridge's future growth trajectory and market positioning.

From a legal and regulatory perspective, the maintenance of a Life Fleet RBC Ratio above 400% is noteworthy. This ratio is a measure of an insurance company's capital adequacy, as required by state insurance regulators to ensure solvency. Corebridge's ability to keep this ratio well above the minimum requirement, even after significant capital return activities, speaks to its strong regulatory compliance and financial health.

Additionally, the completion of the sale of Laya Healthcare and the announced sales of other international operations may involve complex legal processes and regulatory approvals. These transactions can have significant legal implications, including the transfer of contracts, regulatory compliance in different jurisdictions and potential impact on the company's legal risk profile.

Fourth Quarter

  • Premiums and deposits1 of $10.5 billion, a 20% increase over the prior year quarter
  • Base spread income2 of $987 million, a 21% increase over the prior year quarter
  • Base yield2 rose 45 basis points over the prior year quarter
  • Net loss of $1.3 billion, or $2.07 per share
  • Adjusted after-tax operating income1 of $661 million and operating EPS1 of $1.04 per share
  • Returned $1.1 billion to shareholders, including $252 million of share repurchases and $876 million of quarterly and special dividends

Full Year

  • Premiums and deposits of $39.9 billion, a 26% increase over the prior year
  • Base spread income of $3.7 billion, a 30% increase over the prior year
  • Base yield improved 61 basis points over the prior year
  • Net income of $1.1 billion, or $1.71 per share
  • Adjusted after-tax operating income of $2.6 billion and operating EPS of $4.10 per share
  • Insurance companies distributed $2.0 billion in 2023 while maintaining Life Fleet RBC Ratio2 above 400%
  • Returned $2.2 billion to shareholders resulting in an 84% payout ratio

HOUSTON--(BUSINESS WIRE)-- Corebridge Financial, Inc. ("Corebridge" or the "Company") (NYSE: CRBG) today reported financial results for the fourth quarter and full year ended December 31, 2023.

Kevin Hogan, President and Chief Executive Officer of Corebridge, said, “Corebridge reported full year adjusted after-tax operating income of $2.6 billion, a 12% increase, executing on our strategic and operational priorities while capitalizing on market opportunities. We increased annual sales across our diversified portfolio of spread-based products by 60% and total company premiums and deposits by 26% year over year. We also grew general account assets by 5% to $220 billion, and improved base spread income by 30% in 2023, contributing to healthy margins across our high-quality businesses.

“Corebridge maintains a robust financial position and continues to generate consistent cash flows, supporting a strong balance sheet and meaningful capital return. Over the last five years, our insurance companies have distributed over $2 billion per year while maintaining a Life Fleet RBC Ratio over 400%, demonstrating the resilience of our business franchise through market cycles. Additionally, we returned $2.2 billion of capital to shareholders in 2023 with $1.1 billion in the fourth quarter alone.

“Corebridge is positioned for continued success in 2024, supported by our diversified business model, broad distribution platform, disciplined risk management, strategic investment partnerships and financial flexibility. We remain focused on creating long-term value for shareholders, evidenced by the announced sales of our international operations, and are confident in our ability to deliver attractive levels of capital return. We will continue to look across our portfolio to allocate resources where the available risk-adjusted returns are highest and where customer needs are greatest.“

CONSOLIDATED RESULTS

 

 

Three Months Ended
December 31,

 

Twelve Months Ended
December 31,

($ in millions, except per share data)

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net income (loss) attributable to common shareholders

 

$

(1,309

)

 

$

(207

)

 

$

1,104

 

 

$

8,159

 

Income (loss) per common share attributable to common shareholders

 

$

(2.07

)

 

$

(0.32

)

 

$

1.71

 

 

$

12.60

 

Weighted average shares outstanding - diluted

 

 

633.0

 

 

 

648.7

 

 

 

645.2

 

 

 

647.4

 

Adjusted after-tax operating income

 

$

661

 

 

$

610

 

 

$

2,647

 

 

$

2,371

 

Operating EPS

 

$

1.04

 

 

$

0.93

 

 

$

4.10

 

 

$

3.66

 

Weighted average shares outstanding - operating

 

 

635.3

 

 

 

653.1

 

 

 

645.2

 

 

 

647.4

 

Book value per common share

 

$

18.93

 

 

$

14.54

 

 

$

18.93

 

 

$

14.54

 

Adjusted book value per common share1

 

$

36.82

 

 

$

36.34

 

 

$

36.82

 

 

$

36.34

 

Total common shares outstanding

 

 

621.7

 

 

 

645.0

 

 

 

621.7

 

 

 

645.0

 

Pre-tax income (loss)

 

$

(1,763

)

 

$

(307

)

 

$

940

 

 

$

10,491

 

Adjusted pre-tax operating income1

 

$

820

 

 

$

704

 

 

$

3,193

 

 

$

2,854

 

Premiums and deposits

 

$

10,472

 

 

$

8,694

 

 

$

39,887

 

 

$

31,623

 

Net investment income

 

$

3,012

 

 

$

2,555

 

 

$

11,078

 

 

$

9,576

 

Net investment income (APTOI basis)1

 

$

2,568

 

 

$

2,307

 

 

$

9,839

 

 

$

8,758

 

Base portfolio income2 - insurance operating businesses

 

$

2,564

 

 

$

2,200

 

 

$

9,607

 

 

$

7,884

 

Variable investment income2 - insurance operating businesses

 

$

4

 

 

$

23

 

 

$

165

 

 

$

442

 

Corporate and other3

 

$

 

 

$

84

 

 

$

67

 

 

$

432

 

 

 

 

 

 

 

 

 

 

Return on average equity

 

 

(52.0

%)

 

 

(9.2

%)

 

 

10.7

%

 

 

52.6

%

Adjusted return on average equity1

 

 

11.2

%

 

 

10.4

%

 

 

11.3

%

 

 

10.4

%

 

Fourth Quarter

Net loss was $1.3 billion, compared to $207 million in the prior year quarter. The change largely was driven by realized losses recorded for the Fortitude Re funds withheld embedded derivative, partially offset by higher net investment income.

Adjusted pre-tax operating income ("APTOI") was $820 million, a 16% increase over the prior year quarter due to higher net investment income, partially offset by lower variable investment income. Excluding variable investment income, APTOI grew 20% over the same period, primarily the result of higher base spread income and expense efficiencies, partially offset by lower underwriting margin.

Premiums and deposits were $10.5 billion, a 20% 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 21% over the same period. These results mainly reflect higher fixed annuity and fixed index annuity deposits, partially offset by lower variable annuity deposits in Individual Retirement and Group Retirement.

Net investment income was $3.0 billion, an 18% increase over the prior year quarter, and net investment income on an APTOI basis was $2.6 billion, an 11% increase over the same period. This improvement was due in large part to higher base portfolio income, which grew $364 million, or 17%, over the prior year quarter. This increase in net investment income was partially offset by variable investment income which declined $19 million, or 83%, over the same period.

Full Year

Net income was $1.1 billion, compared to $8.2 billion in the prior year. The change largely was driven by realized losses recorded for the Fortitude Re funds withheld embedded derivative, partially offset by higher net investment income and changes in the fair value of market risk benefits.

APTOI was $3.2 billion, a 12% increase over the prior year due to higher net investment income, partially offset by lower variable investment income. Excluding variable investment income, APTOI grew 26% over the same period, the result of higher base spread income and expense efficiencies, partially offset by lower fee income and higher interest expense on financial debt arising from the Company's new capital structure.

Premiums and deposits were $39.9 billion, a 26% increase over the prior year. Excluding transactional activity, premiums and deposits grew 14% over the same period. These results mainly reflect higher fixed annuity and fixed index annuity deposits, partially offset by lower variable annuity deposits in Individual Retirement and Group Retirement.

Net investment income was $11.1 billion, a 16% increase over the prior year, and net investment income on an APTOI basis was $9.8 billion, a 12% increase over the same period. This improvement was due in large part to higher base portfolio income, which grew $1.7 billion, or 22%, over the prior year. This increase in net investment income was partially offset by variable investment income which declined $277 million, or 63%, over the same period.

CAPITAL AND LIQUIDITY HIGHLIGHTS

  • Holding company liquidity of $1.6 billion as of December 31, 2023, exceeding the next 12-month needs
  • Financial leverage ratio of 28.3%
  • Life Fleet RBC Ratio remains above 400%
  • Returned $1.1 billion to shareholders in the fourth quarter comprised of $252 million of share repurchases, $145 million of dividends and a $731 million special dividend
  • Returned $2.2 billion to shareholders in 2023 comprised of $498 million of share repurchases, $589 million of dividends and $1.1 billion in special dividends
  • Declared quarterly dividend of $0.23 per share of common stock on February 14, 2024, payable on March 29, 2024, to shareholders of record at the close of business on March 15, 2024

BUSINESS RESULTS

Individual Retirement

 

Three Months Ended
December 31,

($ in millions)

 

2023

 

2022

Premiums and deposits

 

$

5,282

 

$

3,827

Spread income

 

$

715

 

$

574

Base spread income

 

$

704

 

$

552

Variable investment income

 

$

11

 

$

22

Fee income2

 

$

288

 

$

283

Adjusted pre-tax operating income

 

$

628

 

$

465

 
  • Premiums and deposits increased $1.5 billion, or 38%, over the prior year quarter driven by growth of fixed annuity and fixed index annuity deposits, partially offset by lower variable annuity deposits. Net flows increased $562 million, or 268%, over the fourth quarter of 2022 primarily from strong fixed annuity flows
  • Base net investment spread2 of 2.51% for the fourth quarter of 2023 expanded 37 basis points over the prior year quarter and 4 basis points over the sequential quarter
  • APTOI increased $163 million, or 35%, over the prior year quarter primarily due to higher base spread income and reduced expenses
 

Group Retirement

 

Three Months Ended
December 31,

($ in millions)

 

2023

 

2022

Premiums and deposits

 

$

2,083

 

$

2,243

Spread income

 

$

193

 

$

210

Base spread income

 

$

189

 

$

209

Variable investment income

 

$

4

 

$

1

Fee income

 

$

181

 

$

169

Adjusted pre-tax operating income

 

$

179

 

$

172

 
  • Premiums and deposits decreased $160 million, or 7%, from the prior year quarter due to lower plan acquisitions and out-of-plan variable annuity deposits, partially offset by higher out-of-plan fixed annuity and fixed index annuity deposits
  • Base net investment spread of 1.44% for the fourth quarter of 2023 compressed 15 basis points from the prior year quarter and 8 basis points from the sequential quarter
  • APTOI increased $7 million, or 4%, over the prior year quarter primarily due to higher fee income and reduced expenses, partially offset by lower base spread income
 

Life Insurance

 

Three Months Ended
December 31,

($ in millions)

 

2023

 

2022

Premiums and deposits

 

$

1,103

 

 

$

1,073

Underwriting margin2

 

$

341

 

 

$

430

Underwriting margin excluding variable investment income

 

$

343

 

 

$

425

Variable investment income

 

$

(2

)

 

$

5

Adjusted pre-tax operating income

 

$

79

 

 

$

142

 
  • APTOI decreased $63 million, or 44%, primarily due to unfavorable Universal Life mortality arising from a higher frequency of smaller claims as well as net non-recurring items which favorably impacted results in the prior year quarter
  • Universal Life full year mortality experience was in line with expectations
  • Sale of Laya Healthcare closed on October 31, 2023 for gross proceeds of $731 million
 

Institutional Markets

 

Three Months Ended
December 31,

($ in millions)

 

2023

 

2022

Premiums and deposits

 

$

2,004

 

 

$

1,551

 

Spread income

 

$

86

 

 

$

51

 

Base spread income

 

$

94

 

 

$

57

 

Variable investment income

 

$

(8

)

 

$

(6

)

Fee income

 

$

16

 

 

$

16

 

Underwriting margin

 

$

20

 

 

$

17

 

Underwriting margin excluding variable investment income

 

$

21

 

 

$

17

 

Variable investment income

 

$

(1

)

 

$

 

Adjusted pre-tax operating income

 

$

93

 

 

$

60

 

 
  • Premiums and deposits increased $453 million, or 29%, over the prior year quarter driven by higher pension risk transfer transactions, which were $1.9 billion for the fourth quarter of 2023 compared to $1.3 billion for the fourth quarter of 2022
  • APTOI increased $33 million, or 55%, over the prior year quarter primarily due to higher base spread income
 

Corporate and Other

 

Three Months Ended
December 31,

($ in millions)

 

2023

 

2022

Corporate expenses

 

$

(36

)

 

$

(46

)

Interest on financial debt

 

$

(107

)

 

$

(103

)

Asset management

 

$

 

 

$

15

 

Consolidated investment entities

 

$

(2

)

 

$

2

 

Other

 

$

(14

)

 

$

(3

)

Adjusted pre-tax operating income (loss)

 

$

(159

)

 

$

(135

)

 
  • APTOI decreased $24 million from the prior year quarter primarily due to non-recurring gains on the sale of legacy investments which favorably impacted results in 4Q22, partially offset by lower expenses in 4Q23
 
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 Thursday, February 15, 2024, at 8:30 a.m. EST 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 $380 billion in assets under management and administration as of December 31, 2023, 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,” “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 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 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 (which will be filed with the Securities and Exchange Commission (“SEC”)) 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 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 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).

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

Normalized distributions are defined as dividends paid by the Life Fleet subsidiaries as well as the international insurance subsidiaries, less non-recurring dividends, plus dividend capacity that would have been available to Corebridge absent strategies that resulted in utilization of tax attributes. We believe that presenting normalized distributions is useful in understanding a significant component of our liquidity as a stand-alone company.

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.

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.

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, affordable housing 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 December 31,

2023

2022

(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

$

(1,763

)

$

(432

)

$

 

$

(1,331

)

$

(307

)

$

(139

)

$

 

$

(168

)

Noncontrolling interests

 

 

 

 

 

22

 

 

22

 

 

 

 

 

 

(39

)

 

(39

)

Pre-tax income/net income attributable to Corebridge

 

(1,763

)

 

(432

)

 

22

 

 

(1,309

)

 

(307

)

 

(139

)

 

(39

)

 

(207

)

Fortitude Re related items

 

 

 

 

 

 

 

 

Net investment income on Fortitude Re funds withheld assets

 

(471

)

 

(91

)

 

 

 

(380

)

 

(274

)

 

(57

)

 

 

 

(217

)

Net realized (gains) losses on Fortitude Re funds withheld assets

 

(114

)

 

(27

)

 

 

 

(87

)

 

125

 

 

26

 

 

 

 

99

 

Net realized losses on Fortitude Re funds withheld embedded derivative

 

1,911

 

 

408

 

 

 

 

1,503

 

 

347

 

 

69

 

 

 

 

278

 

Subtotal Fortitude Re related items

 

1,326

 

 

290

 

 

 

 

1,036

 

 

198

 

 

38

 

 

 

 

160

 

Other reconciling Items:

 

 

 

 

 

 

 

 

Reclassification of disproportionate tax effects from AOCI and other tax adjustments

 

 

 

15

 

 

 

 

(15

)

 

 

 

5

 

 

 

 

(5

)

Deferred income tax valuation allowance (releases) charges

 

 

 

(17

)

 

 

 

17

 

 

 

 

(6

)

 

 

 

6

 

Change in fair value of market risk benefits, net

 

478

 

 

101

 

 

 

 

377

 

 

(245

)

 

(50

)

 

 

 

(195

)

Changes in fair value of securities used to hedge guaranteed living benefits

 

5

 

 

1

 

 

 

 

4

 

 

(1

)

 

 

 

 

 

(1

)

Changes in benefit reserves related to net realized gains (losses)

 

 

 

 

 

 

 

 

 

(4

)

 

(1

)

 

 

 

(3

)

Net realized (gains) losses(1)

 

1,253

 

 

268

 

 

 

 

985

 

 

1,019

 

 

214

 

 

 

 

805

 

Non-operating litigation reserves and settlements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separation costs

 

59

 

 

12

 

 

 

 

47

 

 

54

 

 

26

 

 

 

 

28

 

Restructuring and other costs

 

60

 

 

12

 

 

 

 

48

 

 

22

 

 

5

 

 

 

 

17

 

Non-recurring costs related to regulatory or accounting changes

 

1

 

 

 

 

 

 

1

 

 

7

 

 

2

 

 

 

 

5

 

Net (gain) loss on divestiture

 

(621

)

 

(91

)

 

 

 

(530

)

 

 

 

 

 

 

 

 

Pension expense - non operating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interests

 

22

 

 

 

 

(22

)

 

 

 

(39

)

 

 

 

39

 

 

 

Subtotal: Non-Fortitude Re reconciling items

 

1,257

 

 

301

 

 

(22

)

 

934

 

 

813

 

 

195

 

 

39

 

 

657

 

Total adjustments

 

2,583

 

 

591

 

 

(22

)

 

1,970

 

 

1,011

 

 

233

 

 

39

 

 

817

 

Adjusted pre-tax operating income (loss)/Adjusted after-tax operating income (loss) attributable to Corebridge common shareholders

$

820

 

$

159

 

$

 

$

661

 

$

704

 

$

94

 

$

 

$

610

 

 
 

Twelve Months Ended December 31,

2023

2022

(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

$

940

 

$

(96

)

$

 

$

1,036

 

$

10,491

 

$

2,012

 

$

 

$

8,479

 

Noncontrolling interests

 

 

 

 

 

68

 

 

68

 

 

 

 

 

 

(320

)

 

(320

)

Pre-tax income/net income attributable to Corebridge

 

940

 

 

(96

)

 

68

 

 

1,104

 

 

10,491

 

 

2,012

 

 

(320

)

 

8,159

 

Fortitude Re related items

 

 

 

 

 

 

 

 

Net investment income on Fortitude Re funds withheld assets

 

(1,368

)

 

(291

)

 

 

 

(1,077

)

 

(891

)

 

(187

)

 

 

 

(704

)

Net realized (gains) losses on Fortitude Re funds withheld assets

 

224

 

 

48

 

 

 

 

176

 

 

397

 

 

83

 

 

 

 

314

 

Net realized losses on Fortitude Re funds withheld embedded derivative

 

1,734

 

 

369

 

 

 

 

1,365

 

 

(6,347

)

 

(1,370

)

 

 

 

(4,977

)

Subtotal Fortitude Re related items

 

590

 

 

126

 

 

 

 

464

 

 

(6,841

)

 

(1,474

)

 

 

 

(5,367

)

Other reconciling Items:

 

 

 

 

 

 

 

 

Reclassification of disproportionate tax effects from AOCI and other tax adjustments

 

 

 

89

 

 

 

 

(89

)

 

 

 

95

 

 

 

 

(95

)

Deferred income tax valuation allowance (releases) charges

 

 

 

(11

)

 

 

 

11

 

 

 

 

(157

)

 

 

 

157

 

Change in fair value of market risk benefits, net

 

(6

)

 

(1

)

 

 

 

(5

)

 

(958

)

 

(199

)

 

 

 

(759

)

Changes in fair value of securities used to hedge guaranteed living benefits

 

16

 

 

3

 

 

 

 

13

 

 

(30

)

 

(6

)

 

 

 

(24

)

Changes in benefit reserves related to net realized gains (losses)

 

(6

)

 

(1

)

 

 

 

(5

)

 

(15

)

 

(3

)

 

 

 

(12

)

Net realized (gains) losses(1)

 

1,792

 

 

381

 

 

 

 

1,411

 

 

211

 

 

44

 

 

 

 

167

 

Non-operating litigation reserves and settlements

 

 

 

 

 

 

 

 

 

(25

)

 

(5

)

 

 

 

(20

)

Separation costs

 

245

 

 

51

 

 

 

 

194

 

 

180

 

 

142

 

 

 

 

38

 

Restructuring and other costs

 

197

 

 

41

 

 

 

 

156

 

 

147

 

 

31

 

 

 

 

116

 

Non-recurring costs related to regulatory or accounting changes

 

18

 

 

4

 

 

 

 

14

 

 

12

 

 

3

 

 

 

 

9

 

Net (gain) loss on divestiture

 

(676

)

 

(43

)

 

 

 

(633

)

 

1

 

 

 

 

 

 

1

 

Pension expense - non operating

 

15

 

 

3

 

 

 

 

12

 

 

1

 

 

 

 

 

 

1

 

Noncontrolling interests

 

68

 

 

 

 

(68

)

 

 

 

(320

)

 

 

 

320

 

 

 

Subtotal: Non-Fortitude Re reconciling items

 

1,663

 

 

516

 

 

(68

)

 

1,079

 

 

(796

)

 

(55

)

 

320

 

 

(421

)

Total adjustments

 

2,253

 

 

642

 

 

(68

)

 

1,543

 

 

(7,637

)

 

(1,529

)

 

320

 

 

(5,788

)

Adjusted pre-tax operating income (loss)/Adjusted after-tax operating income (loss) attributable to Corebridge common shareholders

$

3,193

 

$

546

 

$

 

$

2,647

 

$

2,854

 

$

483

 

$

 

$

2,371

 

(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 December 31, 2023

 

 

 

 

 

 

 

Premiums

$

40

$

4

$

459

$

1,921

$

19

 

$

 

$

2,443

 

Policy fees

 

180

 

102

 

371

 

50

 

 

 

 

 

703

 

Net investment income

 

1,316

 

488

 

325

 

439

 

7

 

 

(7

)

 

2,568

 

Net realized gains (losses)(1)

 

 

 

 

 

(2

)

 

 

 

(2

)

Advisory fee and other income

 

108

 

79

 

9

 

1

 

14

 

 

 

 

211

 

Total adjusted revenues

 

1,644

 

673

 

1,164

 

2,411

 

38

 

 

(7

)

 

5,923

 

Policyholder benefits

 

39

 

4

 

736

 

2,110

 

 

 

 

 

2,889

 

Interest credited to policyholder account balances

 

615

 

299

 

87

 

179

 

 

 

 

 

1,180

 

Amortization of deferred policy acquisition costs

 

147

 

20

 

90

 

3

 

 

 

 

 

260

 

Non-deferrable insurance commissions

 

85

 

34

 

28

 

5

 

1

 

 

 

 

153

 

Advisory fee expenses

 

36

 

31

 

 

 

 

 

 

 

67

 

General operating expenses

 

94

 

106

 

144

 

21

 

78

 

 

 

 

443

 

Interest expense

 

 

 

 

 

136

 

 

(3

)

 

133

 

Total benefits and expenses

 

1,016

 

494

 

1,085

 

2,318

 

215

 

 

(3

)

 

5,125

 

Noncontrolling interests

 

 

 

 

 

22

 

 

 

 

22

 

Adjusted pre-tax operating income (loss)

$

628

$

179

$

79

$

93

$

(155

)

$

(4

)

$

820

 

 
 

(in millions)

Individual
Retirement

Group
Retirement

Life
Insurance

Institutional
Markets

Corporate &
Other

Eliminations

Total
Corebridge

Three Months Ended December 31, 2022

 

 

 

 

 

 

 

Premiums

$

63

$

3

$

582

$

1,375

$

20

 

$

 

$

2,043

 

Policy fees

 

178

 

96

 

397

 

49

 

 

 

 

 

720

 

Net investment income

 

1,064

 

494

 

376

 

289

 

112

 

 

(28

)

 

2,307

 

Net realized gains (losses)(1)

 

 

 

 

 

27

 

 

 

 

27

 

Advisory fee and other income

 

105

 

73

 

27

 

1

 

20

 

 

 

 

226

 

Total adjusted revenues

 

1,410

 

666

 

1,382

 

1,714

 

179

 

 

(28

)

 

5,323

 

Policyholder benefits

 

73

 

7

 

866

 

1,524

 

 

 

 

 

2,470

 

Interest credited to policyholder account balances

 

504

 

288

 

86

 

105

 

 

 

 

 

983

 

Amortization of deferred policy acquisition costs

 

139

 

21

 

100

 

2

 

 

 

 

 

262

 

Non-deferrable insurance commissions

 

86

 

34

 

10

 

5

 

 

 

 

 

135

 

Advisory fee expenses

 

35

 

29

 

1

 

 

 

 

 

 

65

 

General operating expenses

 

108

 

115

 

177

 

18

 

87

 

 

(4

)

 

501

 

Interest expense

 

 

 

 

 

186

 

 

(22

)

 

164

 

Total benefits and expenses

 

945

 

494

 

1,240

 

1,654

 

273

 

 

(26

)

 

4,580

 

Noncontrolling interests

 

 

 

 

 

(39

)

 

 

 

(39

)

Adjusted pre-tax operating income (loss)

$

465

$

172

$

142

$

60

$

(133

)

$

(2

)

$

704

 

 

(in millions)

Individual
Retirement

Group
Retirement

Life
Insurance

Institutional
Markets

Corporate &
Other

Eliminations

Total
Corebridge

Twelve Months Ended December 31, 2023

 

 

 

 

 

 

 

Premiums

$

213

$

20

$

1,776

$

5,607

$

78

 

$

 

$

7,694

 

Policy fees

 

708

 

406

 

1,488

 

195

 

 

 

 

 

2,797

 

Net investment income

 

4,908

 

1,996

 

1,282

 

1,586

 

92

 

 

(25

)

 

9,839

 

Net realized gains (losses)(1)

 

 

 

 

 

(2

)

 

 

 

(2

)

Advisory fee and other income

 

426

 

309

 

93

 

2

 

54

 

 

 

 

884

 

Total adjusted revenues

 

6,255

 

2,731

 

4,639

 

7,390

 

222

 

 

(25

)

 

21,212

 

Policyholder benefits

 

204

 

31

 

2,838

 

6,298

 

(3

)

 

 

 

9,368

 

Interest credited to policyholder account balances

 

2,269

 

1,182

 

340

 

600

 

 

 

 

 

4,391

 

Amortization of deferred policy acquisition costs

 

572

 

82

 

379

 

9

 

 

 

 

 

1,042

 

Non-deferrable insurance commissions

 

355

 

124

 

88

 

19

 

2

 

 

 

 

588

 

Advisory fee expenses

 

141

 

118

 

2

 

 

 

 

 

 

261

 

General operating expenses

 

402

 

440

 

619

 

85

 

339

 

 

 

 

1,885

 

Interest expense

 

 

 

 

 

569

 

 

(17

)

 

552

 

Total benefits and expenses

 

3,943

 

1,977

 

4,266

 

7,011

 

907

 

 

(17

)

 

18,087

 

Noncontrolling interests

 

 

 

 

 

68

 

 

 

 

68

 

Adjusted pre-tax operating income (loss)

$

2,312

$

754

$

373

$

379

$

(617

)

$

(8

)

$

3,193

 

 
 

(in millions)

Individual
Retirement

Group
Retirement

Life
Insurance

Institutional
Markets

Corporate &
Other

Eliminations

Total
Corebridge

Twelve Months Ended December 31, 2022

 

 

 

 

 

 

 

Premiums

$

235

$

19

$

1,864

$

2,913

$

82

 

$

 

$

5,113

 

Policy fees

 

741

 

415

 

1,564

 

194

 

 

 

 

 

2,914

 

Net investment income

 

3,888

 

2,000

 

1,389

 

1,049

 

473

 

 

(41

)

 

8,758

 

Net realized gains (losses)(1)

 

 

 

 

 

170

 

 

 

 

170

 

Advisory fee and other income

 

451

 

305

 

121

 

2

 

121

 

 

 

 

1,000

 

Total adjusted revenues

 

5,315

 

2,739

 

4,938

 

4,158

 

846

 

 

(41

)

 

17,955

 

Policyholder benefits

 

285

 

35

 

3,010

 

3,404

 

 

 

 

 

6,734

 

Interest credited to policyholder account balances

 

1,916

 

1,147

 

342

 

320

 

 

 

 

 

3,725

 

Amortization of deferred policy acquisition costs

 

523

 

80

 

410

 

7

 

 

 

 

 

1,020

 

Non-deferrable insurance commissions

 

351

 

123

 

72

 

20

 

2

 

 

 

 

568

 

Advisory fee expenses

 

141

 

124

 

1

 

 

 

 

 

 

266

 

General operating expenses

 

426

 

447

 

656

 

73

 

384

 

 

(2

)

 

1,984

 

Interest expense

 

 

 

 

 

535

 

 

(51

)

 

484

 

Total benefits and expenses

 

3,642

 

1,956

 

4,491

 

3,824

 

921

 

 

(53

)

 

14,781

 

Noncontrolling interests

 

 

 

 

 

(320

)

 

 

 

(320

)

Adjusted pre-tax operating income (loss)

$

1,673

$

783

$

447

$

334

$

(395

)

$

12

 

$

2,854

 

(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
December 31,

Twelve Months Ended
December 31,

(in millions)

2023

 

2022

2023

 

2022

Individual Retirement

 

 

 

 

 

 

Spread income

$

715

 

$

574

$

2,694

 

$

2,027

Fee income

 

288

 

 

283

 

1,134

 

 

1,192

Total Individual Retirement

 

1,003

 

 

857

 

3,828

 

3,219

Group Retirement

 

 

 

 

 

 

Spread income

 

193

 

 

210

 

828

 

 

867

Fee income

 

181

 

 

169

 

715

 

 

720

Total Group Retirement

 

374

 

 

379

 

1,543

 

1,587

Life Insurance

 

 

 

 

 

 

Underwriting margin

 

341

 

 

430

 

1,442

 

 

1,561

Total Life Insurance

 

341

 

 

430

 

1,442

 

 

1,561

Institutional Markets

 

 

 

 

 

 

Spread income

 

86

 

 

51

 

355

 

 

285

Fee income

 

16

 

 

16

 

64

 

 

63

Underwriting margin

 

20

 

 

17

 

71

 

 

77

Total Institutional Markets

 

122

 

 

84

 

490

 

 

425

Total

 

 

 

 

 

 

Spread income

 

994

 

 

835

 

3,877

 

 

3,179

Fee income

 

485

 

 

468

 

1,913

 

 

1,975

Underwriting margin

 

361

 

 

447

 

1,513

 

 

1,638

Total

$

1,840

 

$

1,750

$

7,303

 

$

6,792

 
 

The following table presents Life Insurance underwriting margin:

 

Three Months Ended
December 31,

Twelve Months Ended
December 31,

(in millions)

 

2023

 

 

 

2022

 

 

2023

 

 

 

2022

 

Premiums

$

459

 

 

$

582

 

$

1,776

 

 

$

1,864

 

Policy fees

 

371

 

 

 

397

 

 

1,488

 

 

 

1,564

 

Net investment income

 

325

 

 

 

376

 

 

1,282

 

 

 

1,389

 

Other income

 

9

 

 

 

27

 

 

93

 

 

 

121

 

Policyholder benefits

 

(736

)

 

 

(866

)

 

(2,838

)

 

 

(3,010

)

Interest credited to policyholder account balances

 

(87

)

 

 

(86

)

 

(340

)

 

 

(342

)

Less: Impact of annual actuarial assumption update

 

 

 

 

 

 

(19

)

 

 

(25

)

Underwriting margin

$

341

 

 

$

430

 

$

1,442

 

 

$

1,561

 

 
 

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

 

Three Months Ended
December 31,

Twelve Months Ended
December 31,

(in millions)

 

2023

 

 

 

2022

 

 

2023

 

 

 

2022

 

Premiums

$

1,929

 

 

$

1,384

 

$

5,642

 

 

$

2,950

 

Net investment income

 

404

 

 

 

253

 

 

1,446

 

 

 

901

 

Policyholder benefits

 

(2,096

)

 

 

(1,508

)

 

(6,243

)

 

 

(3,352

)

Interest credited to policyholder account balances

 

(151

)

 

 

(78

)

 

(490

)

 

 

(213

)

Less: Impact of annual actuarial assumption update

 

 

 

 

 

 

 

 

 

(1

)

Spread income(1)

$

86

 

 

$

51

 

$

355

 

 

$

285

 

SVW fees

 

16

 

 

 

16

 

 

64

 

 

 

63

 

Fee income

$

16

 

 

$

16

 

$

64

 

 

$

63

 

Premiums

 

(8

)

 

 

(9

)

 

(35

)

 

 

(37

)

Policy fees (excluding SVW)

 

34

 

 

 

33

 

 

131

 

 

 

131

 

Net investment income

 

35

 

 

 

35

 

 

140

 

 

 

143

 

Other income

 

1

 

 

 

1

 

 

2

 

 

 

2

 

Policyholder benefits

 

(14

)

 

 

(16

)

 

(55

)

 

 

(52

)

Interest credited to policyholder account balances

 

(28

)

 

 

(27

)

 

(110

)

 

 

(107

)

Less: Impact of annual actuarial assumption update

 

 

 

 

 

 

(2

)

 

 

(3

)

Underwriting margin(2)

$

20

 

 

$

17

 

$

71

 

 

$

77

 

(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 the reconciliation of dividends to normalized distributions:

At Period End

 

 

December 31,
2023

 

December 31,
2022

(in millions)

 

 

 

 

 

Subsidiary dividends paid

 

 

$

2,027

 

$

1,821

Less: Non-recurring dividends

 

 

 

 

 

Tax sharing payments related to utilization of tax attributes

 

 

 

 

 

401

Normalized distributions

 

 

$

2,027

 

$

2,222

 

 

 

 

 

 

 

The following table presents Operating EPS:

 

Three Months Ended
December 31,

Twelve Months Ended
December 31,

(in millions, except per common share data)

 

2023

 

 

 

2022

 

 

2023

 

 

2022

GAAP Basis

 

 

 

 

 

 

Numerator for EPS

 

 

 

 

 

 

Net income (loss)

$

(1,331

)

 

$

(168

)

$

1,036

 

 

$

8,479

Less: Net income (loss) attributable to noncontrolling interests

 

(22

)

 

 

39

 

 

(68

)

 

 

320

Net income (loss) attributable to Corebridge common shareholders

$

(1,309

)

 

$

(207

)

$

1,104

 

 

$

8,159

 

 

 

 

 

 

 

Denominator for EPS

 

 

 

 

 

 

Weighted average common shares outstanding - basic(1)

 

633.0

 

 

 

648.7

 

 

643.3

 

 

 

646.1

Dilutive common shares(2)

 

 

 

 

 

 

1.9

 

 

 

1.3

Weighted average common shares outstanding - diluted

 

633.0

 

 

 

648.7

 

 

645.2

 

 

 

647.4

 

 

 

 

 

 

 

Income per common share attributable to Corebridge common shareholders

 

 

 

 

 

 

Common stock - basic

$

(2.07

)

 

$

(0.32

)

$

1.72

 

 

$

12.63

Common stock - diluted

$

(2.07

)

 

$

(0.32

)

$

1.71

 

 

$

12.60

 

 

 

 

 

 

 

Operating Basis

 

 

 

 

 

 

Adjusted after-tax operating income attributable to Corebridge shareholders

$

661

 

 

$

610

 

$

2,647

 

 

$

2,371

Weighted average common shares outstanding - diluted

 

635.3

 

 

 

653.1

 

 

645.2

 

 

 

647.4

Operating earnings per common share

$

1.04

 

 

$

0.93

 

$

4.10

 

 

$

3.66

(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

December 31,
2023

 

September 30,
2023

 

December 31,
2022

(in millions, except per share data)

 

 

 

 

 

Total Corebridge shareholders' equity (a)

$

11,766

 

 

$

8,366

 

 

$

9,380

 

Less: Accumulated other comprehensive income (AOCI)

 

(13,458

)

 

 

(19,294

)

 

 

(16,863

)

Add: Cumulative unrealized gains and losses related to Fortitude Re funds withheld assets

 

(2,332

)

 

 

(3,439

)

 

 

(2,806

)

Total adjusted book value (b)

$

22,892

 

 

$

24,221

 

 

$

23,437

 

Total common shares outstanding (c)(1)

 

621.7

 

 

 

633.5

 

 

 

645.0

 

Book value per common share (a/c)

$

18.93

 

 

$

13.21

 

 

$

14.54

 

Adjusted book value per common share (b/c)

$

36.82

 

 

$

38.23

 

 

$

36.34

 

(1)

Total common shares outstanding are presented net of treasury stock

 
 

The following table presents the reconciliation of Adjusted ROAE:

 

Three Months Ended
December 31,

Twelve Months Ended
December 31,

(in millions, unless otherwise noted)

 

2023

 

 

 

2022

 

 

2023

 

 

 

2022

 

Actual or annualized net income (loss) attributable to Corebridge shareholders (a)

$

(5,236

)

 

$

(828

)

$

1,104

 

 

$

8,159

 

Actual or annualized adjusted after-tax operating income attributable to Corebridge shareholders (b)

 

2,644

 

 

 

2,440

 

 

2,647

 

 

 

2,371

 

Average Corebridge Shareholders’ equity (c)

 

10,066

 

 

 

8,988

 

 

10,326

 

 

 

15,497

 

Less: Average AOCI

 

(16,376

)

 

 

(17,409

)

 

(15,773

)

 

 

(8,143

)

Add: Average cumulative unrealized gains and losses related to Fortitude Re funds withheld assets

 

(2,886

)

 

 

(2,879

)

 

(2,702

)

 

 

(919

)

Average Adjusted Book Value (d)

$

23,556

 

 

$

23,518

 

$

23,397

 

 

$

22,721

 

Return on Average Equity (a/c)

 

(52.0

)%

 

(9.2

)%

 

10.7

%

 

52.6

%

Adjusted ROAE (b/d)

 

11.2

%

 

10.4

%

 

11.3

%

 

10.4

%

 
 

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

 

Three Months Ended
December 31,

Twelve Months Ended
December 31,

(in millions)

 

2023

 

 

 

2022

 

 

2023

 

 

 

2022

 

Net investment income (net income basis)

$

3,012

 

 

$

2,555

 

$

11,078

 

 

$

9,576

 

Net investment (income) on Fortitude Re funds withheld assets

 

(471

)

 

 

(274

)

 

(1,368

)

 

 

(891

)

Change in fair value of securities used to hedge guaranteed living benefits

 

(14

)

 

 

(16

)

 

(55

)

 

 

(56

)

Other adjustments

 

(6

)

 

 

(13

)

 

(28

)

 

 

(50

)

Derivative income recorded in net realized gains (losses)

 

47

 

 

 

55

 

 

212

 

 

 

179

 

Total adjustments

 

(444

)

 

 

(248

)

 

(1,239

)

 

 

(818

)

Net investment income (APTOI basis)(1)

$

2,568

 

 

$

2,307

 

$

9,839

 

 

$

8,758

 

(1)

Includes net investment income (loss) from Corporate and Other of $0 million and $84 million for the three months ended December 31, 2023 and December 31, 2022, respectively, as well as $92 million and $473 million for the twelve months ended December 31, 2023 and December 31, 2022, respectively

 
 

The following table presents the premiums and deposits:

 

Three Months Ended
December 31,

Twelve Months Ended
December 31,

(in millions)

 

2023

 

 

2022

 

2023

 

 

 

2022

 

Individual Retirement

 

 

 

 

 

 

Premiums

$

40

 

 

$

63

$

213

 

 

$

235

 

Deposits

 

5,245

 

 

 

3,764

 

17,971

 

 

 

14,900

 

Other(1)

 

(3

)

 

 

 

(13

)

 

 

(15

)

Premiums and deposits

 

5,282

 

 

 

3,827

 

18,171

 

 

 

15,120

 

Group Retirement

 

 

 

 

 

 

Premiums

 

4

 

 

 

3

 

20

 

 

 

19

 

Deposits

 

2,079

 

 

 

2,240

 

8,063

 

 

 

7,923

 

Premiums and deposits(2)(3)

 

2,083

 

 

 

2,243

 

8,083

 

 

 

7,942

 

Life Insurance

 

 

 

 

 

 

Premiums

 

459

 

 

 

582

 

1,776

 

 

 

1,864

 

Deposits

 

408

 

 

 

411

 

1,583

 

 

 

1,601

 

Other(1)

 

236

 

 

 

80

 

941

 

 

 

771

 

Premiums and deposits

 

1,103

 

 

 

1,073

 

4,300

 

 

 

4,236

 

Institutional Markets

 

 

 

 

 

 

Premiums

 

1,921

 

 

 

1,375

 

5,607

 

 

 

2,913

 

Deposits

 

75

 

 

 

169

 

3,695

 

 

 

1,382

 

Other(1)

 

8

 

 

 

7

 

31

 

 

 

30

 

Premiums and deposits

 

2,004

 

 

 

1,551

 

9,333

 

 

 

4,325

 

Total

 

 

 

 

 

 

Premiums

 

2,424

 

 

 

2,023

 

7,616

 

 

 

5,031

 

Deposits

 

7,807

 

 

 

6,584

 

31,312

 

 

 

25,806

 

Other(1)

 

241

 

 

 

87

 

959

 

 

 

786

 

Premiums and deposits

$

10,472

 

 

$

8,694

$

39,887

 

 

$

31,623

 

(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 $741 million and $973 million for the three months ended December 31, 2023 and December 31, 2022, respectively, as well as $3,245 million and $3,476 million for the twelve months ended December 31, 2023 and December 31, 2022, respectively

(3)

Excludes client deposits into advisory and brokerage accounts of $603 million and $414 million for the three months ended December 31, 2023 and December 31, 2022, respectively, as well as $2,381 million and $2,058 million for the twelve months ended December 31, 2023 and December 31, 2022, respectively

 

Işıl Müderrisoğlu (Investors): investorrelations@corebridgefinancial.com

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

Source: Corebridge Financial

FAQ

What was Corebridge Financial's (CRBG) net loss in Q4 2023?

Corebridge Financial reported a net loss of $1.3 billion, or $2.07 per share in Q4 2023.

How much did Corebridge Financial (CRBG) return to shareholders in 2023?

Corebridge Financial returned $2.2 billion to shareholders in 2023.

What was the adjusted after-tax operating income for Corebridge Financial (CRBG) in full year 2023?

Corebridge Financial reported an adjusted after-tax operating income of $2.6 billion for full year 2023.

What was the growth percentage in premiums and deposits for Corebridge Financial (CRBG) in Q4 2023?

Corebridge Financial saw a 20% increase in premiums and deposits, reaching $10.5 billion in Q4 2023.

What is the Life Fleet RBC Ratio for Corebridge Financial (CRBG)?

Corebridge Financial maintains a Life Fleet RBC Ratio above 400%.

What was Corebridge Financial's (CRBG) base spread income growth in full year 2023 compared to the previous year?

Corebridge Financial's base spread income grew by 30% in full year 2023 compared to the previous year.

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