Group 1 - Corebridge Financial's shares have increased by 35% over the past year, driven by solid financial results and capital returns to shareholders [1] - The successful divestment by AIG has positively impacted Corebridge Financial [1] Group 2 - The article emphasizes the importance of macro views and stock-specific turnaround stories for achieving outsized returns with a favorable risk/reward profile [1]

Core Insights - The market cycle has revealed distinct winners and losers, particularly highlighting the peak of speculative stocks in March 2021, which included microcaps and small tech firms [1] Group 1: Market Trends - The peak of speculative stocks occurred four years ago, with significant highs in March 2021 [1] - Areas such as microcaps and small tech firms, often associated with Cathie Wood's investment strategies, were notably affected during this peak [1] Group 2: Investment Strategies - The article emphasizes the importance of thematic investing and understanding macro drivers of various asset classes, including stocks, bonds, commodities, currencies, and crypto [1]

Core Points - Corebridge Financial, Inc. (CRBG) reported a 5.9% decline in shares following the release of fourth-quarter 2024 results on February 12, 2025, despite beating earnings expectations [1] - The quarterly earnings were positively impacted by higher investment income and improved Life Insurance performance, but negatively affected by a decline in Life Insurance premiums and deposits, as well as lower guaranteed investment contract deposits [1] Financial Performance - CRBG's fourth-quarter 2024 operating earnings per share were $1.23, exceeding the Zacks Consensus Estimate by 3.4%, and reflecting an 18.3% year-over-year increase [2] - Adjusted revenues fell 15.2% year over year to $5 billion, missing the consensus mark by 16.7% [2] - Premiums and deposits totaled $9.9 billion, down 6% year over year, with a more significant decline of 8% when excluding transactional activity and international business sales [3] Investment Income and Expenses - Net investment income rose 12.1% year over year to $2.9 billion, driven by increased base portfolio income [3] - Total benefits and expenses decreased 20.1% year over year to $4.1 billion, attributed to lower policyholder benefits and general operating expenses [4] - Adjusted pre-tax operating income increased 7.1% year over year to $878 million, with an adjusted return on average equity of 12.8%, up 160 basis points year over year [4] Segment Performance - Individual Retirement segment reported premiums and deposits of $5 billion, down 5% year over year, while fee income increased 9.4% to $315 million [5] - Group Retirement premiums and deposits fell 22% year over year to $1.6 billion, with fee income improving 12.2% to $203 million [7] - Life Insurance premiums and deposits decreased 20% year over year to $879 million, but adjusted pre-tax operating income surged 97% to $156 million, exceeding the consensus estimate [8] - Institutional Markets saw premiums and deposits rise 18% year over year to $2.4 billion, with adjusted pre-tax operating income increasing 43% to $133 million [9] Financial Position - As of December 31, 2024, Corebridge had a cash balance of $806 million, up 31.7% from the end of 2023, and total investments of $243.8 billion, an increase of 4.8% [11] - Total assets rose 2.7% to $389.4 billion, while total equity declined 2.4% to $12.3 billion [11] - Adjusted book value per share was $39.80, reflecting an 8.1% year-over-year increase [12] Share Repurchase and Dividends - In the fourth quarter, Corebridge repurchased common shares worth $398 million and paid quarterly dividends of $129 million [14] - The company increased its share repurchase authorization by $2 billion and raised the dividend to 24 cents per share [14]

Fourth Quarter and Full Year 2024 Financial Results Presentation February 13, 2025 Corebridge value proposition Diversified business model Strong balance sheet We are well positioned to continue creating shareholder value as demonstrated by growth in our earnings, cash generation and capital return Disciplined execution shareholder value icon tbd icon tbd icon tbd 2 Successfully delivered on financial targets set at initial public offering Profitability Capital return Balance sheet 13.2% Adjusted run rate R ...

Corebridge Financial, Inc. (NYSE:CRBG) Q4 2024 Earnings Conference Call February 13, 2025 10:00 AM ET Company Participants Isil Muderrisoglu - Head, Investor and Rating Agency Relations Kevin Hogan - President and CEO Elias Habayeb - CFO Conference Call Participants Cave Montazeri - Deutsche Bank Alex Scott - Barclays Ryan Krueger - KBW Elyse Greenspan - Wells Fargo Joel Hurwitz - Dowling & Partners Suneet Kamath - Jefferies Jack Matten - BMO John Barnidge - Piper Sandler Tom Gallagher - Evercore ISI Wes Ca ...

Financial Performance - For the year ended December 31, 2024, the company generated spread income of $4.0 billion, fee income of $2.1 billion, and underwriting margin of $1.4 billion, representing a balanced mix of 53%, 28%, and 19% respectively among these income sources[16]. - Total spread income for 2024 reached $2,868 million, representing a 69.6% increase from $2,694 million in 2023, while fee income was $1,251 million, accounting for 30.4% of total income[33]. - Total revenue for Group Retirement in 2024 was $1,512 million, a decrease of 2.0% from $1,543 million in 2023[57]. - Fee income increased to $785 million in 2024, representing 51.9% of total revenue, up from 46.3% in 2023[57][58]. - Net base spread income decreased to $671 million in 2024, accounting for 44.4% of total spread income, down from 50.5% in 2023[57]. Sales and Market Performance - Total individual annuity sales for the year ended December 31, 2024, amounted to $22.2 billion[21]. - Individual Retirement premiums and deposits totaled $22,174 million in 2024, a significant increase from $18,171 million in 2023, with banks contributing 43.1% of the total[37]. - The company has a distribution network of approximately 490 third-party firms, enhancing its market reach and service capabilities[35]. - Approximately 1.5 million in-plan participants did not have an out-of-plan product as of December 31, 2024, indicating a significant pipeline for potential client engagement[62]. - The company retained approximately 22% of rollovers out of retirement plans in an out-of-plan IRA in 2024[62]. Product Development and Innovation - The company launched the Corebridge MarketLock® Annuity, a registered index linked annuity (RILA) contract, in October 2024[26]. - Recent product innovations include a registered index linked annuity with a market lock feature, enhancing the risk-return profile for clients[43]. - Group Retirement's proprietary annuities include fixed, fixed index, and variable annuities, designed to meet diverse client needs[67]. - The company plans to transition away from capital-intensive and highly interest-sensitive products towards protection-oriented products such as GIWL, SIWL, IUL, and Term[95]. Strategic Partnerships and Investments - The company’s strategic partnership with Blackstone is expected to enhance risk-adjusted returns and grow both retail and institutional product lines[20]. - The partnership with Blackstone is expected to enhance investment capabilities, allowing the company to compete effectively in a changing market environment[41]. - The partnership with Blackstone is expected to unlock new opportunities in the Institutional Markets, enhancing the ability to source specialized assets[116]. - The company completed the sale of its subsidiary Laya Healthcare Limited to AXA S.A. on October 31, 2023, and AIG Life Limited to Aviva plc on April 8, 2024, to focus on core businesses[74]. Risk Management and Financial Stability - The company’s strong balance sheet is supported by a high-quality liability profile and effective risk management practices[19]. - The risk management strategy focuses on long-term value, resulting in a well-diversified annuity business with minimal exposure to unprofitable legacy lines[46]. - As of December 31, 2024, 87% of the variable annuity GMDB account value provides for a return of premium or locks in a maximum anniversary value, with only 4% exposed to legacy GMDB options[30]. - The company has deprioritized Guaranteed Universal Life (GUL) products, which are not expected to be a significant contributor to the portfolio in the near term[82]. Market Trends and Opportunities - The aging U.S. population and reduced access to private pensions are expected to drive demand for retirement savings and income products, presenting growth opportunities[40]. - The company aims to deepen distribution relationships and expand product penetration through strategic account management and customized wholesaling[42]. - The company aims to increase penetration in core markets, particularly targeting tax-exempt and public sector employees in K-12 and higher education[68]. Technology and Digitization - Significant investments in technology and digitization are expected to enhance client experience and drive participant enrollment[70]. - The company aims to streamline underwriting processes through digitization and automation, enhancing customer experience while maintaining risk management[94]. - The company is implementing BlackRock's "Aladdin" investment management technology platform to enhance investment management capabilities[150]. Corporate Social Responsibility - The company emphasizes a culture of inclusion and belonging, focusing on attracting and developing talent from diverse demographics[181]. - In 2024, employees volunteered nearly 9,000 hours and made personal donations to causes important to them[187]. - The company offers 16 hours of paid Volunteer Time Off to empower employees to engage in community service[187]. - The company partners with organizations to deliver financial education programs, reaching broad populations[185].

Core Financial Performance - Corebridge Financial reported $5.02 billion in revenue for Q4 2024, a year-over-year decline of 7.4% [1] - The EPS for the same period was $1.23, compared to $1.04 a year ago, indicating a positive year-over-year change [1] - The reported revenue fell short of the Zacks Consensus Estimate of $6.02 billion, resulting in a surprise of -16.74% [1] - The company delivered an EPS surprise of +3.36%, with the consensus EPS estimate being $1.19 [1] Key Metrics Comparison - Premiums were reported at $1.14 billion, significantly below the $2.03 billion average estimate from five analysts [4] - Policy fees were $738 million, slightly below the estimated $738.72 million [4] - Net investment income totaled $2.88 billion, slightly above the average estimate of $2.84 billion [4] - Advisory fee and other income was $210 million, below the average estimate of $223.68 million [4] Revenue Breakdown - Revenue from Institutional Markets was $1.36 billion, compared to the average estimate of $1.84 billion [4] - Corporate & Other revenue was $105 million, exceeding the estimated $50.17 million [4] - Individual Retirement-Premiums revenue was $30 million, below the average estimate of $36.65 million [4] - Individual Retirement-Policy fees were $201 million, slightly above the estimated $199.35 million [4] - Group Retirement-Premiums revenue was $2 million, significantly below the average estimate of $6.04 million [4] Stock Performance - Corebridge shares returned +11.1% over the past month, outperforming the Zacks S&P 500 composite's +4.3% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3]

Corebridge Financial Overview - Corebridge Financial (CRBG) reported quarterly earnings of $1.23 per share, exceeding the Zacks Consensus Estimate of $1.19 per share, and up from $1.04 per share a year ago, representing an earnings surprise of 3.36% [1] - The company posted revenues of $5.02 billion for the quarter ended December 2024, which fell short of the Zacks Consensus Estimate by 16.74%, compared to $5.92 billion in the same quarter last year [2] - Corebridge has surpassed consensus EPS estimates in all four of the last quarters, but has only topped consensus revenue estimates once during the same period [2] Stock Performance and Outlook - Corebridge shares have increased approximately 10.8% since the beginning of the year, outperforming the S&P 500's gain of 3.2% [3] - The future performance of the stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.27 on revenues of $5.64 billion, and for the current fiscal year, it is $5.50 on revenues of $23.02 billion [7] Industry Context - The Zacks Industry Rank places the Insurance - Multi line sector in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - Another company in the same industry, MBIA (MBI), is expected to report a quarterly loss of $0.11 per share, with revenues projected to decline by 38.9% year-over-year [9]

Financial Performance - Corebridge Financial reported full year premiums and deposits of $41.7 billion, an 18% increase year over year[3]. - The company achieved net income of $2.2 billion for the fourth quarter, compared to a loss of $1.3 billion in the prior year quarter[6]. - Adjusted after-tax operating income (APTOI) for the full year was $3.6 billion, a 13% increase over the prior year[11]. - Total adjusted revenues for Corebridge in Q4 2024 reached $5,016 million, compared to $5,923 million in Q4 2023, reflecting a decrease of approximately 15.3%[60]. - Adjusted pre-tax operating income attributable to Corebridge for the twelve months ended December 31, 2024, was $3,605 million, an increase from $3,193 million in 2023, representing a growth of about 12.9%[58]. - Net investment income for Corebridge in Q4 2024 was $2,879 million, up from $2,568 million in Q4 2023, marking an increase of approximately 12.1%[60]. - Total adjusted revenues for the twelve months ended December 31, 2024, were $19,578 million, an increase from $21,212 million in 2023, reflecting a decrease of approximately 7.7%[63]. - Net investment income for the twelve months ended December 31, 2024, was $11,058 million, compared to $9,839 million in 2023, showing an increase of about 12.3%[63]. Shareholder Returns - The Board of Directors increased the share repurchase authorization by $2 billion and raised the quarterly dividend to $0.24 per share[4]. - The company returned $2.3 billion to shareholders in 2024, including $1.8 billion in share repurchases[18]. - Net income attributable to Corebridge common shareholders for Q4 2024 was $2,171 million, compared to a loss of $1,309 million in Q4 2023[71]. - Operating earnings per common share for Q4 2024 increased to $1.23, up from $1.04 in Q4 2023, representing a growth of 18.3%[71]. Premiums and Deposits - Premiums and deposits for the fourth quarter were $9.9 billion, a 6% decrease from the prior year quarter[9]. - Premiums and deposits in the Institutional Markets segment increased by $361 million, or 18%, over the prior year quarter[26]. - The company generated $1,140 million in premiums for Q4 2024, a decrease from $2,443 million in Q4 2023, representing a decline of approximately 53.3%[60]. - Premiums for the twelve months ended December 31, 2024, totaled $4,600 million, compared to $7,694 million in 2023, indicating a decline of about 40.1%[63]. - Individual Retirement deposits for Q4 2024 were $4,970 million, a decrease from $5,245 million in Q4 2023[74]. - Life Insurance premiums for Q4 2024 were $366 million, down from $459 million in Q4 2023[74]. - Institutional Markets premiums for Q4 2024 were $723 million, significantly lower than $1,921 million in Q4 2023[74]. Expenses and Benefits - Policyholder benefits for Q4 2024 totaled $1,627 million, compared to $2,889 million in Q4 2023, indicating a significant reduction of approximately 43.6%[60]. - Total benefits and expenses for the twelve months ended December 31, 2024, were $16,007 million, compared to $18,087 million in 2023, indicating a decrease of about 11.5%[63]. - Corebridge's total benefits and expenses for Q4 2024 were $4,094 million, down from $5,125 million in Q4 2023, reflecting a decrease of about 20.1%[60]. - Policyholder benefits for the twelve months ended December 31, 2024, were $6,641 million, an increase from $9,368 million in 2023, reflecting a decrease of approximately 29.2%[63]. Capital and Liquidity - Holding company liquidity stood at $2.2 billion as of December 31, 2024, reflecting proceeds from debt issuances[15]. - The life fleet RBC ratio was reported at 420-430%, remaining above target[15]. - Total adjusted book value as of December 31, 2024, was $22,345 million, an increase from $21,434 million as of September 30, 2024[71]. - Corebridge's financial leverage ratio is defined as the ratio of financial debt to the sum of financial debt plus Adjusted Book Value plus non-redeemable noncontrolling interests, providing insight into the company's capital structure[53]. Strategic Initiatives - Corebridge Financial's strategy includes partnerships with financial professionals and institutions to enhance customer financial planning and security[29]. - The company emphasizes the importance of non-GAAP financial measures to provide a clearer understanding of its profitability and operational results[35]. - Premiums and deposits, a non-GAAP measure, reflect customer demand for products and sales performance over time[47]. - The company faces various risks, including changes in interest rates, economic conditions, and competition, which could impact future performance[33]. Conference and Reporting - The company will host a conference call on February 13, 2025, to review financial results, which will be accessible to the public[28].

Corebridge Financial Overview - Corebridge Financial, Inc. (CRBG) reported a 2.4% decline in shares following the release of third-quarter 2024 results, primarily due to elevated expenses, a decrease in Life Insurance premiums and deposits, and lower guaranteed investment contract deposits [1] - The Group Retirement segment experienced a drop in spread income, impacting profitability, although this was partially mitigated by strong fixed annuity deposits and improved investment income [1] Financial Performance - CRBG's operating earnings per share for Q3 2024 were $1.38, exceeding the Zacks Consensus Estimate by 18% and reflecting a 31% year-over-year increase [2] - Adjusted revenues rose 11.1% year over year to $4.5 billion, but fell short of the consensus estimate by 20.8% [2] Operational Highlights - Premiums and deposits totaled $9.6 billion, marking a 5% year-over-year growth, with a 20% increase when excluding transactional activity, driven by rising fixed annuity deposits [4] - Net investment income increased by 24% year over year to $3.3 billion, attributed to higher base portfolio income [4] - Total benefits and expenses rose 6.2% year over year to $3.5 billion, influenced by higher policyholder benefits and advisory fee expenses [5] Segment Performance - **Individual Retirement**: Premiums and deposits surged 40% year over year to $5.5 billion, with fee income increasing 11.1% to $321 million [8] - **Group Retirement**: Premiums and deposits grew 7% year over year to $2 billion, but spread income fell 15.8% to $176 million, leading to a 2% decline in adjusted pre-tax operating income to $188 million [10] - **Life Insurance**: Premiums and deposits decreased by 21.1% to $856 million, while adjusted pre-tax operating income rose 15% to $156 million, surpassing the consensus estimate [11] - **Institutional Markets**: Premiums and deposits plummeted 44% year over year to $1.3 billion, but adjusted pre-tax operating income more than doubled to $154 million, beating the consensus mark [12] - **Corporate and Other**: The segment reported an adjusted pre-tax operating loss of $124 million, an improvement from the previous year's loss of $166 million [13] Financial Position - As of September 30, 2024, Corebridge had a cash balance of $530 million, down 13.4% from the end of 2023, while total investments increased by 7.7% to $250.4 billion [14] - Total assets rose 5.3% to $399.4 billion, and total equity improved by 14.3% to $14.4 billion [15][17] - Long-term debt increased by 8.2% to $9.9 billion, and adjusted book value per share was $37.32, a decrease of 2.4% year over year [16][18] Shareholder Returns - In Q3 2024, Corebridge repurchased 25.9 million common shares for $715 million and paid out quarterly dividends totaling $133 million [19]