- 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
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
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Işıl Müderrisoğlu (Investors):
investorrelations@corebridgefinancial.com Matt Ward (Media):
media.contact@corebridgefinancial.com
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