Shares of Corebridge (NYSE: CRBG ) have been a moderate performer over the past year, gaining about 8%. The stock continues to trade at a significant discount, given complex liabilities and ongoing share sales from AIG ( AIG ). That said, theOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me ...

We recently published Wall Street Analysts Like These 10 Stocks. Corebridge Financial Inc (NYSE:CRBG) is one of the stocks analysts were recently talking about. Bill Nygren, Oakmark Funds partner and CIO, said in a recent program on CNBC that Corebridge Financial Inc (NYSE:CRBG) is among the top non-tech stocks on his list. The analyst likes the stock’s valuation and said it’s trading at just six times expected earnings. “We’re we’re not going to dispute it’s a competitive space, but we’re not arguing it ...

Group 1: Market Overview - The Nasdaq has reached all-time highs, marking its eighth consecutive session of gains, driven by strength in technology and the "Mag-7" companies [1] - There is a growing concentration in the S&P 500, which is perceived as a low-risk investment but is heavily weighted towards technology mega-caps [2] Group 2: Investment Opportunities - The company is focusing on investments in firms with lower expectations, resulting in price-to-earnings (P/E) multiples that are less than half of the S&P 500 average, with some holdings at single-digit P/E ratios [3] - Specific companies highlighted include Corbridge Financial, trading at approximately six times expected earnings, and Delta Airlines at about seven times expected earnings [4] Group 3: Corbridge Financial - Corbridge Financial operates in the retirement services sector and is noted for its share repurchase strategy, which could significantly enhance earnings per share over the next 5 to 7 years [6] - The competitive landscape is acknowledged, but the current valuation suggests potential for growth without requiring high earnings multiples [5] Group 4: Delta Airlines - Delta Airlines is favored due to its strong management and balance sheet compared to other major airlines, alongside robust demand for travel, which allows for increased ticket prices [9] - The current pricing environment is seen as favorable for major airlines, enabling them to restore normal margins [9] Group 5: Merck - Merck is recognized for its strong vaccine franchises and animal health business, which are expected to remain profitable [11] - The company is also exploring combinations of Keytruda with other drugs to target specific cancers, with a reasonable chance of success in its pipeline [12]

Question-and-Answer SessionKevin, so it's been about 3 years since the IPO of Corebridge. Can you discuss the progress that the company has made over that time frame and how you feel the company's position going forward?Kevin HoganPresident, CEO & Director Yes, absolutely. Thanks. And first of all, I appreciate the opportunity to be here. Nice to see everyone. It's hard to believe, in 2 weeks, we'll celebrate the 3-year anniversary of our IPO. And I'm very proud of and very pleased with the performance of o ...

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Corebridge performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: View all Key Company Metrics for Corebridge here>>> Shares of Corebridge have returned -3.6% over the past month versus the Zacks S&P 500 composite's +0.6% change. The ...

Core Financial Performance - Corebridge Financial (CRBG) reported quarterly earnings of $1.36 per share, exceeding the Zacks Consensus Estimate of $1.15 per share, and up from $1.13 per share a year ago, representing an earnings surprise of +18.26% [1] - The company posted revenues of $4.42 billion for the quarter ended June 2025, which missed the Zacks Consensus Estimate by 6.7%, compared to year-ago revenues of $4.18 billion [2] - Over the last four quarters, Corebridge has surpassed consensus EPS estimates four times but has not beaten consensus revenue estimates [2] Stock Performance and Outlook - Corebridge shares have increased by approximately 15.2% since the beginning of the year, outperforming the S&P 500's gain of 6.1% [3] - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.29 on revenues of $4.96 billion, and for the current fiscal year, it is $4.84 on revenues of $19.29 billion [7] Industry Context - The Zacks Industry Rank indicates that the Insurance - Multi line sector is currently in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Corebridge's stock performance [5][6]

[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) Corebridge Financial achieved strong Q2 2025 results, driving shareholder value through strategic actions and robust sales [CEO Statement](index=1&type=section&id=CEO%20Statement) Corebridge Financial delivered strong Q2 2025 results, focusing on shareholder value through strategic actions like the variable annuity reinsurance transaction. The company is positioned for organic growth from a lower-risk baseline, with strong sales in Individual Retirement and new RILA products - Corebridge delivered strong financial results in Q2 2025, with a focus on driving shareholder value[2](index=2&type=chunk) - The company closed the AGL portion (approx. **90% of value**) of a transformative variable annuity reinsurance transaction, reducing risk and improving earnings quality[4](index=4&type=chunk) - Individual Retirement sales exceeded last year's record, and the new RILA product surpassed **$1 billion** in cumulative sales within nine months[5](index=5&type=chunk) [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) Corebridge Financial reported a net loss of $660 million for Q2 2025, primarily due to higher realized losses. However, adjusted after-tax operating income increased to $750 million, and operating EPS rose to $1.36. The company returned $442 million to shareholders through dividends and share repurchases Q2 2025 Key Financial Highlights | Metric | Q2 2025 | Q2 2024 | | :-------------------------------- | :------ | :------ | | Net loss | $(660) million | $365 million | | Net loss per share | $(1.20) | $0.59 | | Adjusted after-tax operating income | $750 million | $692 million | | Operating EPS | $1.36 | $1.13 | | Premiums and deposits | $10.8 billion | $11.7 billion | | Holding company liquidity | $1.3 billion | N/A | | Capital returned to shareholders | $442 million | N/A | | Share repurchases | $311 million | N/A | | Payout ratio (H1'25) | 64% | N/A | - Adjusted pre-tax operating income (APTOI) increased **10%** year-over-year[3](index=3&type=chunk) - Adjusted return on average equity (ROAE) was up **230 basis points** year-over-year[3](index=3&type=chunk) [Consolidated Financial Results](index=2&type=section&id=Consolidated%20Financial%20Results) Corebridge Financial reported a net loss of $660 million in Q2 2025, while adjusted pre-tax operating income increased by 10% to $942 million, despite a decrease in premiums and deposits [Key Financial Metrics](index=2&type=section&id=Key%20Financial%20Metrics) Corebridge reported a net loss of $660 million in Q2 2025, a significant decrease from a $365 million gain in Q2 2024, primarily due to higher realized losses this quarter compared to a gain from a UK business divestiture in the prior year. Adjusted pre-tax operating income (APTOI) increased by 10% to $942 million Consolidated Financial Results (Q2 2025 vs Q2 2024) | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | Change (%) | | :--------------------------------------- | :------------------- | :------------------- | :--------- | | Net income (loss) attributable to shareholders | $(660) | $365 | -280.8% | | Income (loss) per common share | $(1.20) | $0.59 | -303.4% | | Adjusted after-tax operating income | $750 | $692 | 8.4% | | Operating EPS | $1.36 | $1.13 | 20.4% | | Adjusted pre-tax operating income (APTOI) | $942 | $859 | 9.7% | | Net investment income | $3,338 | $2,988 | 11.7% | | Adjusted return on average equity | 14.3% | 12.0% | +230 bps | - Net loss of **$660 million** in Q2 2025, compared to a gain of **$365 million** in Q2 2024, largely due to higher realized losses this quarter versus a gain on UK business divestiture in the prior year[7](index=7&type=chunk) - APTOI increased **10%** year-over-year to **$942 million**; excluding variable investment income, APTOI decreased **8%** due to short-term interest rate impacts[8](index=8&type=chunk) [Core Sources of Income & Premiums and Deposits](index=3&type=section&id=Core%20Sources%20of%20Income%20%26%20Premiums%20and%20Deposits) Core sources of income decreased by 2% to $1.8 billion, mainly due to the impact of short-term interest rates, partially offset by higher underwriting margin. Premiums and deposits saw a 7% decrease to $10.8 billion from a strong prior year, but were flat year-over-year when excluding transactional activity Core Sources of Income & Premiums and Deposits (Q2 2025 vs Q2 2024) | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | Change (%) | | :---------------------- | :------------------- | :------------------- | :--------- | | Core sources of income | $1,761 | $1,791 | -1.7% | | Premiums and deposits | $10,833 | $11,679 | -7.3% | - Core sources of income decreased **2%** due to cumulative short-term rate impact, partially offset by higher underwriting margin[10](index=10&type=chunk) - Excluding transactional activity (pension risk transfer, GICs, Group Retirement plan acquisitions), premiums and deposits were flat year-over-year[10](index=10&type=chunk) [Capital and Liquidity](index=3&type=section&id=Capital%20and%20Liquidity) Corebridge maintained a strong Life Fleet RBC ratio and $1.3 billion in liquidity, returning $442 million to shareholders in Q2 2025 [Capital and Liquidity Highlights](index=3&type=section&id=Capital%20and%20Liquidity%20Highlights) Corebridge maintained a Life Fleet RBC ratio above target and reported $1.3 billion in holding company liquidity. The financial leverage ratio stood at 30.8%. The company returned $442 million to shareholders in Q2 2025, including $311 million in share repurchases and $131 million in dividends, and declared a quarterly dividend of $0.24 per share - Life Fleet RBC ratio remained above target[13](index=13&type=chunk) Capital and Liquidity Metrics (as of June 30, 2025) | Metric | Value | | :------------------------ | :------------ | | Holding company liquidity | $1.3 billion | | Financial leverage ratio | 30.8% | | Capital returned to shareholders | $442 million | | Share repurchases | $311 million | | Dividends | $131 million | | Quarterly dividend declared | $0.24 per share | [Business Segment Results](index=3&type=section&id=Business%20Segment%20Results) Individual Retirement and Life Insurance segments showed growth, while Group Retirement and Institutional Markets experienced declines in premiums and deposits [Individual Retirement](index=3&type=section&id=Individual%20Retirement) The Individual Retirement segment saw a 1% increase in premiums and deposits, driven by higher fixed index annuity and RILA deposits. Core sources of income decreased by 3% due to short-term interest rate impacts on spread income and a modest decline in variable annuity fee income. Adjusted pre-tax operating income (APTOI) remained relatively flat Individual Retirement Segment Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | Change (%) | | :-------------------------- | :------------------- | :------------------- | :--------- | | Premiums and deposits | $6,854 | $6,787 | 1.0% | | Core sources of income | $973 | $1,000 | -2.7% | | Adjusted pre-tax operating income | $623 | $621 | 0.3% | | Base spread income | $670 | $692 | -3.1% | | Variable investment income | $79 | $31 | 154.8% | - Premiums and deposits increased **1%** primarily due to higher fixed index annuity and RILA deposits[12](index=12&type=chunk) - Core sources of income decreased **3%** due to short-term interest rate impacts on spread income and a modest decline in variable annuity fee income[12](index=12&type=chunk) [Group Retirement](index=4&type=section&id=Group%20Retirement) The Group Retirement segment experienced a 1% decrease in premiums and deposits, mainly due to lower out-of-plan annuity deposits. Core sources of income declined by 9% due to lower base spread income from general account net outflows. Adjusted pre-tax operating income (APTOI) decreased by 7% Group Retirement Segment Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | Change (%) | | :-------------------------- | :------------------- | :------------------- | :--------- | | Premiums and deposits | $1,976 | $1,998 | -1.1% | | Core sources of income | $337 | $371 | -9.2% | | Adjusted pre-tax operating income | $182 | $195 | -6.7% | | Base spread income | $147 | $180 | -18.3% | | Variable investment income | $24 | $11 | 118.2% | - Premiums and deposits decreased **1%** primarily due to lower out-of-plan annuity deposits[17](index=17&type=chunk) - Core sources of income decreased **9%** due to lower base spread income from general account net outflows[17](index=17&type=chunk) [Life Insurance](index=4&type=section&id=Life%20Insurance) The Life Insurance segment reported a 3% increase in premiums and deposits, driven by growth in traditional life sales. Underwriting margin excluding variable investment income increased by 12%, attributed to pricing discipline, favorable mortality experience, and improved investment yields. Adjusted pre-tax operating income (APTOI) significantly increased by 40% Life Insurance Segment Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | Change (%) | | :--------------------------------------- | :------------------- | :------------------- | :--------- | | Premiums and deposits | $868 | $846 | 2.6% | | Underwriting margin | $344 | $309 | 11.3% | | Underwriting margin excluding VII | $338 | $302 | 11.9% | | Adjusted pre-tax operating income (APTOI) | $133 | $95 | 40.0% | - Premiums and deposits increased **3%** driven by growth in traditional life sales[16](index=16&type=chunk) - Underwriting margin excluding VII increased **12%** due to pricing discipline, favorable mortality, and improved investment yields[19](index=19&type=chunk) [Institutional Markets](index=5&type=section&id=Institutional%20Markets) The Institutional Markets segment experienced a 45% decrease in premiums and deposits, primarily due to lower guaranteed investment contract deposits. However, total sources of income increased by 64% driven by higher variable investment income. Adjusted pre-tax operating income (APTOI) surged by 80%, also largely due to higher variable investment income Institutional Markets Segment Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | Change (%) | | :--------------------------------------- | :------------------- | :------------------- | :--------- | | Premiums and deposits | $1,135 | $2,048 | -44.6% | | Total sources of income | $202 | $123 | 64.2% | | Adjusted pre-tax operating income (APTOI) | $173 | $96 | 80.2% | | Variable investment income | $88 | $5 | 1660.0% | - Premiums and deposits decreased **45%** primarily due to lower deposits from guaranteed investment contracts[20](index=20&type=chunk) - Total sources of income increased **64%** and APTOI increased **80%**, both primarily due to higher variable investment income[20](index=20&type=chunk) [Corporate and Other](index=6&type=section&id=Corporate%20and%20Other) The Corporate and Other segment reported an increased adjusted pre-tax operating loss of $169 million, primarily due to higher interest expense [Corporate and Other Financials](index=6&type=section&id=Corporate%20and%20Other%20Financials) The Corporate and Other segment reported an adjusted pre-tax operating loss of $169 million, an increase from $148 million in the prior year quarter. This larger loss was primarily driven by higher interest expense on financial debt due to refinancing a portion of debt at a higher rate Corporate and Other Financials (Q2 2025 vs Q2 2024) | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | Change ($ millions) | | :----------------------------- | :------------------- | :------------------- | :------------------ | | Corporate expenses | $(32) | $(37) | 5 | | Interest on financial debt | $(114) | $(107) | -7 | | Adjusted pre-tax operating (loss) | $(169) | $(148) | -21 | - Adjusted pre-tax operating loss increased by **$21 million**, primarily due to higher interest expense on financial debt from refinancing at a higher rate[21](index=21&type=chunk) [Company Information](index=6&type=section&id=Company%20Information) This section provides details on the Q2 2025 conference call, an overview of Corebridge Financial, and contact information [Conference Call Details](index=6&type=section&id=Conference%20Call%20Details) Corebridge Financial will host a conference call on August 5, 2025, at 10:00 a.m. EDT to discuss the Q2 2025 results. The call will be accessible via a live webcast in the Investors section of corebridgefinancial.com, where a replay and supplemental data will also be available - Conference call to review Q2 2025 results on August 5, 2025, at 10:00 a.m. EDT[22](index=22&type=chunk) - Access to live webcast and replay, along with supplemental financial data and investor presentation, available in the Investors section of corebridgefinancial.com[22](index=22&type=chunk) [About Corebridge Financial](index=6&type=section&id=About%20Corebridge%20Financial) Corebridge Financial, Inc. is a major provider of retirement solutions and insurance products in the U.S., managing over $415 billion in assets as of June 30, 2025. The company partners with financial professionals and institutions to help individuals achieve financial security - Corebridge Financial is one of the largest providers of retirement solutions and insurance products in the United States[23](index=23&type=chunk) - Manages over **$415 billion** in assets under management and administration as of June 30, 2025[23](index=23&type=chunk) [Contacts](index=6&type=section&id=Contacts) Contact information for Investor Relations and Media Relations is provided for inquiries regarding Corebridge Financial - Investor Relations contact: Işıl Müderrisoğlu at investorrelations@corebridgefinancial.com[24](index=24&type=chunk) - Media Relations contact: Matt Ward at media.contact@corebridgefinancial.com[24](index=24&type=chunk) [Legal & Non-GAAP Disclosures](index=7&type=section&id=Legal%20%26%20Non-GAAP%20Disclosures) This section outlines cautionary statements regarding forward-looking information and defines various non-GAAP financial measures used by Corebridge Financial [Cautionary Statement Regarding Forward-Looking Information](index=7&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Information) This section warns that the press release contains forward-looking statements, which are not guarantees of future performance and involve significant risks and uncertainties. These risks include changes in interest rates, economic conditions, insurance claims, reinsurance availability, and regulatory changes, among others. The company disclaims any obligation to update these statements unless required by law - Forward-looking statements are not guarantees of future performance and involve risks and uncertainties[27](index=27&type=chunk) - Key risks include changes in interest rates, deteriorating economic conditions, unpredictability of insurance claims, and reinsurance availability[27](index=27&type=chunk)[29](index=29&type=chunk) - Other risks involve the failure to complete transactions, limited access to subsidiary funds, inability to refinance debt, and maintaining sufficient collateral[27](index=27&type=chunk)[29](index=29&type=chunk) - Operational risks include reliance on third parties, technology system failures, data confidentiality, ineffective risk management, and intense competition, including from AI[27](index=27&type=chunk)[29](index=29&type=chunk) - The company undertakes no obligation to update or revise any forward-looking statement, except as required by law[28](index=28&type=chunk) [Non-GAAP Financial Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) This section defines various non-GAAP financial measures used by Corebridge Financial, such as Adjusted Pre-Tax Operating Income (APTOI), Adjusted After-Tax Operating Income (AATOI), Adjusted Book Value, and Operating EPS. These measures are presented to provide a deeper understanding of profitability drivers and are considered supplementary to GAAP measures, not substitutes - Non-GAAP financial measures are used to provide a deeper understanding of profitability drivers, results of operations, financial condition, and liquidity[30](index=30&type=chunk) - These measures are supplementary to GAAP results and should not be viewed as substitutes[30](index=30&type=chunk) [Adjusted Pre-Tax Operating Income (APTOI)](index=9&type=section&id=Adjusted%20Pre-Tax%20Operating%20Income%20(APTOI)) APTOI is a non-GAAP measure derived by excluding specific items like realized gains/losses and fair value changes of Market Risk Benefits from pre-tax income - APTOI is derived by excluding specific items from income (loss) before income tax expense, such as Fortitude Re related adjustments, most net realized gains (losses) on investments, and changes in the fair value of Market Risk Benefits (MRBs)[31](index=31&type=chunk)[32](index=32&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) - Excludes net investment income and net realized gains/losses on Fortitude Re funds withheld assets, and changes in the embedded derivative[32](index=32&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) - Excludes most net realized gains/losses, except for real estate dispositions and earned income on certain derivative instruments[32](index=32&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) - Excludes changes in the fair value of MRBs (GMWBs/GMDBs) and related hedges[32](index=32&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) [Adjusted After-Tax Operating Income (AATOI)](index=10&type=section&id=Adjusted%20After-Tax%20Operating%20Income%20(AATOI)) AATOI is derived by excluding tax-effected APTOI adjustments and specific tax items from net income attributable to Corebridge - AATOI is derived by excluding the tax-effected APTOI adjustments and specific tax items from net income attributable to Corebridge[37](index=37&type=chunk) - Excludes reclassifications of disproportionate tax effects from AOCI and other tax adjustments related to legacy matters[40](index=40&type=chunk) - Excludes deferred income tax valuation allowance releases and charges[40](index=40&type=chunk) [Adjusted Book Value](index=10&type=section&id=Adjusted%20Book%20Value) Adjusted Book Value excludes AOCI and adjusts for cumulative unrealized gains and losses related to Fortitude Re funds withheld assets - Adjusted Book Value excludes Accumulated Other Comprehensive Income (AOCI) and adjusts for cumulative unrealized gains and losses related to Fortitude Re's funds withheld assets[37](index=37&type=chunk) - This measure eliminates asymmetrical impacts from fair value changes of available-for-sale securities and credit non-performance risk recorded through OCI, and economically transferred Fortitude Re fair value movements[37](index=37&type=chunk) [Adjusted Return on Average Equity (Adjusted ROAE)](index=10&type=section&id=Adjusted%20Return%20on%20Average%20Equity%20(Adjusted%20ROAE)) Adjusted ROAE is calculated by dividing AATOI by average Adjusted Book Value, used to evaluate recurring profitability and business trends - Adjusted ROAE is calculated by dividing AATOI by average Adjusted Book Value, used to evaluate recurring profitability and business trends[38](index=38&type=chunk) - Similar to Adjusted Book Value, it eliminates asymmetrical impacts from fair value changes of available-for-sale securities and credit non-performance risk, and Fortitude Re fair value movements[38](index=38&type=chunk) [Adjusted Revenues](index=10&type=section&id=Adjusted%20Revenues) Adjusted revenues exclude net realized gains/losses, non-operating litigation settlements, and fair value changes of securities hedging guaranteed living benefits - Adjusted revenues exclude net realized gains (losses) (except real estate dispositions), income from non-operating litigation settlements, and changes in fair value of securities used to hedge guaranteed living benefits[39](index=39&type=chunk) [Net Investment Income (APTOI Basis)](index=11&type=section&id=Net%20Investment%20Income%20(APTOI%20Basis)) Net investment income (APTOI basis) is the sum of base portfolio income and variable investment income, providing insight into main drivers - Net investment income (APTOI basis) is the sum of base portfolio income and variable investment income, providing insight into main drivers of investment income[41](index=41&type=chunk) [Operating Earnings per Common Share (Operating EPS)](index=11&type=section&id=Operating%20Earnings%20per%20Common%20Share%20(Operating%20EPS)) Operating EPS is calculated by dividing Adjusted After-Tax Operating Income (AATOI) by weighted average diluted shares - Operating EPS is calculated by dividing AATOI by weighted average diluted shares[42](index=42&type=chunk) [Premiums and Deposits](index=11&type=section&id=Premiums%20and%20Deposits) Premiums and deposits is a non-GAAP measure reflecting customer demand, product trends, and sales performance across various insurance and annuity products - Premiums and deposits is a non-GAAP measure including direct and assumed premiums on traditional life insurance and payout annuities, plus deposits on universal life insurance, investment-type annuity contracts, and GICs[43](index=43&type=chunk) - This measure is useful for understanding customer demand, product trends, and sales performance[43](index=43&type=chunk) [Key Operating Metrics and Terms](index=11&type=section&id=Key%20Operating%20Metrics%20and%20Terms) This section defines key operating metrics and financial terms used in Corebridge Financial's reporting, such as AUMA, core sources of income, and RBC ratio - **Assets Under Management and Administration (AUMA):** Cumulative amount of AUM (general and separate accounts) and AUA (Group Retirement mutual funds and other third-party assets)[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) - **Core sources of income:** Sum of base spread income, fee income, and underwriting margin, excluding variable investment income, across segments[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) - **Fee income:** Policy fees plus advisory fees plus other fee income[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) - **Spread income:** Net investment income less interest credited to policyholder account balances, exclusive of amortization of deferred sales inducement assets[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) - **Underwriting margin:** For Life Insurance, includes premiums, policy fees, other income, net investment income, less interest credited and policyholder benefits. For Institutional Markets, similar for Corporate Markets products[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) - **Financial leverage ratio:** Ratio of financial debt to the sum of financial debt plus Adjusted Book Value plus non-redeemable noncontrolling interests[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) - **Life Fleet RBC Ratio:** Risk-based capital ratio for American General Life Insurance Company, The United States Life Insurance Company, and The Variable Annuity Life Insurance Company[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) - **Net Investment Income:** Comprises Base portfolio income (interest, dividends, foreclosed real estate income) and Variable investment income (call/tender income, market value changes, alternative investments)[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) [Reconciliations and Supplemental Data](index=13&type=section&id=Reconciliations%20and%20Supplemental%20Data) This section provides detailed reconciliations from GAAP to non-GAAP financial measures and supplemental data for various income components and investment returns [GAAP to Non-GAAP Reconciliation](index=13&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) This table provides a detailed reconciliation from GAAP pre-tax income (loss) and net income (loss) to adjusted pre-tax operating income (loss) and adjusted after-tax operating income (loss) for Q2 2025 and Q2 2024. Key adjustments include Fortitude Re related items, reclassification of tax effects, deferred income tax valuation allowances, changes in fair value of market risk benefits, net realized gains/losses, and restructuring costs Reconciliation of GAAP to Adjusted Operating Income (Q2 2025 vs Q2 2024) | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | | :---------------------------------------------------------------- | :------------------- | :------------------- | | Pre-tax income (loss) attributable to Corebridge | $(608) | $456 | | Net income (loss) attributable to Corebridge | $(660) | $365 | | Fortitude Re related items (subtotal) | $(62) | $(268) | | Changes in fair value of market risk benefits, net | $(279) | $25 | | Net realized (gains) losses | $1,758 | $748 | | Restructuring and other costs | $129 | $85 | | Total adjustments | $1,550 | $403 | | Adjusted pre-tax operating income attributable to Corebridge | $942 | $859 | | Adjusted after-tax operating income attributable to Corebridge | $750 | $692 | [Adjusted Pre-Tax Operating Income by Segment](index=14&type=section&id=Adjusted%20Pre-Tax%20Operating%20Income%20by%20Segment) This table breaks down adjusted pre-tax operating income (APTOI) by segment for Q2 2025 and Q2 2024, showing contributions from premiums, policy fees, net investment income, and various expenses. Individual Retirement and Institutional Markets saw increases in APTOI, while Group Retirement and Corporate & Other experienced decreases Adjusted Pre-Tax Operating Income by Segment (Q2 2025 vs Q2 2024) | Segment | Q2 2025 APTOI ($ millions) | Q2 2024 APTOI ($ millions) | Change ($ millions) | | :------------------ | :------------------------- | :------------------------- | :------------------ | | Individual Retirement | $623 | $621 | $2 | | Group Retirement | $182 | $195 | $(13) | | Life Insurance | $133 | $95 | $38 | | Institutional Markets | $173 | $96 | $77 | | Corporate & Other | $(168) | $(148) | $(20) | | Total Corebridge | $942 | $859 | $83 | [Spread Income, Fee Income and Underwriting Margin Summary](index=15&type=section&id=Spread%20Income%2C%20Fee%20Income%20and%20Underwriting%20Margin%20Summary) This table summarizes the components of Corebridge's core sources of income across its business segments. Total spread income increased, while total fee income and underwriting margin also saw increases year-over-year Summary of Income Components by Segment (Q2 2025 vs Q2 2024) | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | Change ($ millions) | | :------------------ | :------------------- | :------------------- | :------------------ | | **Individual Retirement** | | | | | Spread income | $749 | $723 | $26 | | Fee income | $303 | $308 | $(5) | | **Group Retirement** | | | | | Spread income | $171 | $191 | $(20) | | Fee income | $190 | $191 | $(1) | | **Life Insurance** | | | | | Underwriting margin | $344 | $309 | $35 | | **Institutional Markets** | | | | | Spread income | $173 | $88 | $85 | | Fee income | $16 | $15 | $1 | | Underwriting margin | $13 | $20 | $(7) | | **Total** | | | | | Spread income | $1,093 | $1,002 | $91 | | Fee income | $509 | $514 | $(5) | | Underwriting margin | $357 | $329 | $28 | | Total | $1,959 | $1,845 | $114 | [Life Insurance Underwriting Margin Detail](index=15&type=section&id=Life%20Insurance%20Underwriting%20Margin%20Detail) This table provides a detailed breakdown of the Life Insurance segment's underwriting margin, showing increases in premiums and net investment income contributing to a higher overall margin in Q2 2025 compared to Q2 2024 Life Insurance Underwriting Margin (Q2 2025 vs Q2 2024) | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | | :-------------------------------- | :------------------- | :------------------- | | Premiums | $377 | $331 | | Policy fees | $366 | $366 | | Net investment income | $335 | $322 | | Policyholder benefits | $(650) | $(627) | | Interest credited to policyholder account balances | $(84) | $(84) | | Underwriting margin | $344 | $309 | [Institutional Markets Income Detail](index=16&type=section&id=Institutional%20Markets%20Income%20Detail) This table details the spread income, fee income, and underwriting margin for the Institutional Markets segment. Spread income significantly increased, while underwriting margin decreased, reflecting shifts in product performance within the segment Institutional Markets Income Detail (Q2 2025 vs Q2 2024) | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | | :-------------------------- | :------------------- | :------------------- | | **Spread income** | | | | Premiums | $34 | $175 | | Net investment income | $617 | $451 | | Policyholder benefits | $(262) | $(378) | | Interest credited to policyholder account balances | $(216) | $(160) | | Spread income | $173 | $88 | | **Fee income** | | | | SVW fees | $16 | $15 | | Fee income | $16 | $15 | | **Underwriting margin** | | | | Underwriting margin | $13 | $20 | [Operating EPS Reconciliation](index=17&type=section&id=Operating%20EPS%20Reconciliation) This table reconciles GAAP EPS to Operating EPS, showing the adjustments made to net income to arrive at adjusted after-tax operating income, which is then used to calculate Operating EPS. Operating EPS increased from $1.13 in Q2 2024 to $1.36 in Q2 2025 Operating EPS Reconciliation (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :---------------------------------------------------- | :------ | :------ | | Net income (loss) attributable to Corebridge shareholders | $(660) | $365 | | Adjusted after-tax operating income attributable to shareholders | $750 | $692 | | Weighted average common shares outstanding - diluted (operating) | 551.3 | 612.6 | | Operating earnings per common share | $1.36 | $1.13 | [Adjusted Book Value Reconciliation](index=17&type=section&id=Adjusted%20Book%20Value%20Reconciliation) This table reconciles total Corebridge shareholders' equity to Adjusted Book Value, primarily by excluding Accumulated Other Comprehensive Income (AOCI) and adjusting for Fortitude Re funds withheld assets. Adjusted Book Value decreased from $22,783 million in Q2 2024 to $20,348 million in Q2 2025 Adjusted Book Value Reconciliation (as of June 30) | Metric | June 30, 2025 ($ millions) | June 30, 2024 ($ millions) | | :---------------------------------------------------------------- | :------------------------- | :------------------------- | | Total Corebridge shareholders' equity | $12,302 | $10,996 | | Less: Accumulated other comprehensive income (AOCI) | $(10,633) | $(14,508) | | Add: Cumulative unrealized gains and losses related to Fortitude Re funds withheld assets | $(2,587) | $(2,721) | | Total adjusted book value | $20,348 | $22,783 | | Adjusted book value per common share | $37.46 | $37.95 | [Adjusted ROAE Reconciliation](index=18&type=section&id=Adjusted%20ROAE%20Reconciliation) This table reconciles Return on Average Equity (ROAE) to Adjusted ROAE. Adjusted ROAE increased to 14.3% in Q2 2025 from 12.0% in Q2 2024, reflecting improved recurring profitability Adjusted ROAE Reconciliation (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :---------------------------------------------------------------- | :------ | :------ | | Actual or annualized net income (loss) attributable to shareholders | $(2,640) | $1,460 | | Actual or annualized adjusted after-tax operating income attributable to shareholders | $3,000 | $2,768 | | Average Corebridge Shareholders' equity | $12,141 | $11,286 | | Average Adjusted Book Value | $20,912 | $23,001 | | Return on Average Equity | (21.7)% | 12.9% | | Adjusted ROAE | 14.3% | 12.0% | [Net Investment Income (APTOI Basis) Reconciliation](index=18&type=section&id=Net%20Investment%20Income%20(APTOI%20Basis)%20Reconciliation) This table reconciles net investment income on a GAAP basis to an APTOI basis, showing adjustments for Fortitude Re funds withheld assets, changes in fair value of securities hedging guaranteed living benefits, and other items. Net investment income (APTOI basis) increased to $3,050 million in Q2 2025 Net Investment Income Reconciliation (Q2 2025 vs Q2 2024) | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | | :---------------------------------------------------- | :------------------- | :------------------- | | Net investment income (net income basis) | $3,338 | $2,988 | | Net investment (income) on Fortitude Re funds withheld assets | $(343) | $(325) | | Change in fair value of securities used to hedge guaranteed living benefits | $(14) | $(13) | | Derivative income recorded in net realized gains (losses) | $77 | $77 | | Net investment income (APTOI basis) | $3,050 | $2,716 | [Alternative Investment Returns](index=18&type=section&id=Alternative%20Investment%20Returns) This table presents alternative investment returns versus long-term return expectations by segment. Total Corebridge alternative investments showed a positive return of $41 million above expectations in Q2 2025, a significant improvement from a negative $59 million in Q2 2024 Alternative Investment Returns vs. Expectations (Q2 2025 vs Q2 2024) | Segment | Q2 2025 ($ millions) | Q2 2024 ($ millions) | | :-------------------------- | :------------------- | :------------------- | | Individual Retirement | $13 | $(12) | | Group Retirement | $(6) | $(7) | | Life Insurance | $1 | $(3) | | Institutional Markets | $33 | $(37) | | Total Corebridge | $41 | $(59) | [Premiums and Deposits Detail](index=19&type=section&id=Premiums%20and%20Deposits%20Detail) This table provides a detailed breakdown of premiums and deposits by segment. Total premiums and deposits decreased to $10,833 million in Q2 2025 from $11,679 million in Q2 2024, with significant declines in Institutional Markets Premiums and Deposits by Segment (Q2 2025 vs Q2 2024) | Segment | Q2 2025 ($ millions) | Q2 2024 ($ millions) | | :------------------ | :------------------- | :------------------- | | Individual Retirement | $6,854 | $6,787 | | Group Retirement | $1,976 | $1,998 | | Life Insurance | $868 | $846 | | Institutional Markets | $1,135 | $2,048 | | Total | $10,833 | $11,679 |

Core Insights - Corebridge Financial, Inc. (CRBG) has entered into a reinsurance agreement with CS Life Re, a subsidiary of Venerable Holdings, Inc., to reinsure its entire block of variable annuities valued at $2.8 billion, expected to yield approximately $2.1 billion in net distributable proceeds after taxes [1][9] Transaction Details - The reinsurance transaction covers the entire in-force book of variable annuity contracts within the Individual Retirement segment, which had an account value (AV) of $51 billion as of March 31, 2025. This includes $5 billion of General Account assets and $46 billion of Separate Account assets [2] - The deal also involves the divestiture of SAAMCo, an investment adviser for Corebridge's variable annuity products, with the AGL transaction expected to close in Q3 2025 and the USL transaction and SAAMCo sale in Q4 2025 [3] Financial Impact - The transaction implies a valuation multiple of approximately 9-10 times Corebridge's expected operating earnings for 2026 and 2027. Although a decrease in adjusted after-tax operating income of around $300 million is anticipated in 2026, this impact is expected to lessen in subsequent years [4] - The transaction is projected to enhance the company's Life Fleet Risk-Based Capital ratio by over 50 points, prior to the effects of the share repurchase program [4] Strategic Motive - The reinsurance agreement allows Corebridge to exit a legacy business line characterized by volatile GAAP earnings and potential tail risk exposure, thereby reshaping its portfolio and enhancing shareholder value [5] Shareholder Returns - The majority of the proceeds from the transaction will be returned to shareholders through share repurchases, with a $2 billion increase in the existing share repurchase authorization approved by the board [6][7] Stock Performance - Corebridge shares have increased by 20.2% over the past year, outperforming the industry growth of 10.7% [8]

Core Viewpoint - The article discusses the implications of rising national debt and suggests investing in life and retirement insurance companies as a protective measure against potential economic challenges posed by this debt [1][4]. Rising Debt and Economic Impact - The U.S. national debt has significantly increased, with a corresponding rise in the debt-to-GDP ratio, particularly during recessionary periods such as the 2008-2009 financial crisis and the pandemic [2]. - The response to rising debt has historically been increased spending and debt issuance, raising concerns about the sustainability of this approach [3]. Interest Rate Projections - Higher debt levels suggest that more debt issuance will occur, which could lead to rising long-term interest rates, potentially exceeding market expectations [6][7]. - The current market appears complacent regarding long-term interest rates, not pricing in significant risks associated with rising debt levels [7]. Investment Opportunities in Insurance Sector - In a rising interest rate environment, life and retirement insurers like Prudential Financial, MetLife, and Corebridge Financial may perform well, as they can invest in higher-yielding assets [8]. - These insurers typically hold a significant portion of their assets in low-risk investments, which will be affected by rising rates but will also allow them to purchase new assets at higher rates [10]. Asset Composition of Insurers - Prudential Financial holds 54.9% of its general account assets in publicly available fixed maturities, while MetLife has 31.6% in investment-grade corporate debt [12][13]. - Corebridge Financial has a substantial 97% of its assets in fixed income or short-term investments, positioning these companies favorably in a higher interest rate scenario [13]. Strategic Investment Considerations - While the debt issue is concerning, predicting interest rates remains challenging; however, investing in the insurance sector may be a prudent strategy for those worried about future public debt servicing costs [14].

Core Points - Corebridge Financial, Inc. (CRBG) shares increased by 7.6% following the release of first-quarter 2025 results, which showed better-than-expected earnings driven by higher investment income and reduced expenses, despite declines in Life Insurance and institutional market premiums and deposits [1][2] - The company reported operating earnings per share of $1.16, exceeding the Zacks Consensus Estimate by 0.9%, and reflecting a 5.5% year-over-year increase [2] - Adjusted revenues fell 19% year over year to $4.7 billion, missing the consensus estimate by 9.2% [2] Operational Performance - Premiums and deposits totaled $9.3 billion, down 12% year over year, with a 6% decline when excluding transactional activity and international business sales, primarily due to lower fixed annuity deposits [3] - Net investment income rose by 10.6% year over year to $2.9 billion, attributed to increased base portfolio income and variable investment income [3] - Total benefits and expenses decreased by 7.6% year over year to $4.5 billion, driven by lower policyholder benefits and general operating expenses [4] Segment Performance - **Individual Retirement**: Premiums and deposits were $4.7 billion, down 3% year over year, while fee income increased by 0.3% to $308 million [5] - **Group Retirement**: Premiums and deposits fell 11% year over year to $1.8 billion, with fee income improving by 2.6% to $195 million [7] - **Life Insurance**: Premiums and deposits decreased by 22% year over year to $856 million, but adjusted pre-tax operating income doubled to $108 million due to improved underwriting margins [8] - **Institutional Markets**: Premiums and deposits dropped 25% year over year to $1.9 billion, with fee income declining by 6.3% to $15 million [9] Financial Position - As of March 31, 2025, Corebridge had a cash balance of $393 million, down from $806 million at the end of 2024, while total investments increased to $250.2 billion from $243.8 billion [12] - Total assets rose to $390 billion from $389.4 billion at the end of 2024, with total equity increasing by 4.1% to $12.8 billion [13] Shareholder Returns - In the first quarter, Corebridge repurchased common shares worth $321 million and paid quarterly dividends totaling $133 million [14]