Financial Performance - Corebridge reported net income of $144 million, or $0.27 per share, compared to a loss of $1.2 billion in the prior year quarter[8]. - Adjusted pre-tax operating income (APTOI) was $654 million, a 29% decrease from the prior year quarter, largely due to the annual actuarial assumption update[10]. - Corebridge reported an adjusted pre-tax operating income of $654 million for Q3 2025, a decrease from $921 million in Q3 2024, reflecting a decline of approximately 29%[52]. - Total adjusted revenues for Corebridge reached $5.626 billion in Q3 2025, compared to $4.193 billion in Q3 2024, representing an increase of about 34%[52]. - The net income attributable to Corebridge common shareholders was $144 million in Q3 2025, a significant recovery from a net loss of $1.184 billion in Q3 2024[57]. - Operating earnings per common share for Q3 2025 were $0.96, down from $1.23 in Q3 2024, indicating a decrease of approximately 22%[57]. - Corebridge's total benefits and expenses for Q3 2025 were $4.979 billion, an increase from $3.275 billion in Q3 2024, representing a rise of about 52%[52]. Premiums and Deposits - Premiums and deposits reached $12.3 billion, a 34% increase year-over-year, driven by higher fixed index annuity and RILA deposits[12]. - Total premiums for Q3 2025 amounted to $1.939 billion, up from $595 million in Q3 2024, marking a substantial increase[52]. - Total premiums and deposits for the three months ended September 30, 2025, reached $12,290 million, an increase from $9,160 million in 2024[63]. - Individual Retirement deposits increased to $5,501 million in Q3 2025, up from $5,051 million in Q3 2024[63]. - Institutional Markets premiums surged to $1,547 million in Q3 2025, compared to $208 million in Q3 2024[63]. - Life Insurance premiums rose to $366 million in Q3 2025, compared to $352 million in Q3 2024[63]. Shareholder Returns - The company returned $509 million to shareholders, including $381 million in share repurchases, representing an 80% year-to-date payout ratio[7]. - Total common shares outstanding as of September 30, 2025, are 532.1 million, down from 574.4 million a year earlier[58]. - Book value per common share increased to $25.45 as of September 30, 2025, from $22.65 on June 30, 2025[58]. Investment and Financial Health - Holding company liquidity stood at $1.8 billion as of September 30, 2025, bolstered by proceeds from the VA reinsurance transaction[13]. - The company has a high-quality investment portfolio and minimal legacy liabilities, enhancing its financial flexibility[5]. - Corebridge Financial manages over $380 billion in assets as of September 30, 2025, positioning it as one of the largest providers of retirement solutions and insurance products in the U.S.[22]. - The financial leverage ratio, which measures financial debt relative to adjusted book value, is a key indicator of the company's financial health[48]. - Average Corebridge shareholders' equity for Q3 2025 is $12,922 million, up from $12,302 million in Q3 2024[59]. Risks and Operational Performance - The company faces risks related to changes in interest rates, economic conditions, and geopolitical tensions, which could materially affect performance[26]. - The company reported a significant reliance on third-party service providers, which may impact operational performance[28]. - The company is exposed to credit risk due to potential defaults by counterparties, which could impact financial stability[26]. - Adjusted pre-tax operating income (APTOI) excludes certain items such as net realized gains and losses, providing a clearer view of ongoing business operations[30]. - The company emphasizes the importance of non-GAAP financial measures to better understand profitability drivers and financial condition[29]. Segment Performance - The Life Insurance segment saw premiums and deposits decrease by $15 million, or 2%, from the prior year quarter[16]. - Institutional Markets experienced a significant increase in premiums and deposits, up $2.9 billion, or 230%, over the prior year quarter[19]. - The underwriting margin for Life Insurance decreased to $327 million in Q3 2025 from $392 million in Q3 2024, a decline of about 17%[55]. - The Institutional Markets segment reported a spread income of $139 million in Q3 2025, slightly up from $133 million in Q3 2024[56]. - Corebridge's net investment income for Q3 2025 was $2.980 billion, compared to $2.767 billion in Q3 2024, reflecting an increase of approximately 8%[52]. - Net investment income (APTOI basis) for the three months ended September 30, 2025, is $2,980 million, compared to $2,767 million in 2024[59]. - Total adjusted book value as of September 30, 2025, is $20,236 million, a slight decrease from $20,348 million on June 30, 2025[58]. - Adjusted ROAE for the three months ended September 30, 2025, is 10.3%, down from 13.1% in the same period of 2024[59].

Corebridge Financial Overview - Wall Street anticipates a year-over-year decline in earnings for Corebridge Financial (CRBG) despite higher revenues, with earnings expected to be $1.09 per share, reflecting a -21% change, while revenues are projected at $4.62 billion, up 2% from the previous year [3][12] - The earnings report is scheduled for November 3, and actual results that exceed expectations could lead to a stock price increase, while missing estimates may result in a decline [2][12] Estimate Revisions and Earnings ESP - The consensus EPS estimate has been revised down by 2.62% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][12] - Corebridge's Earnings ESP stands at -1.63%, suggesting that the Most Accurate Estimate is lower than the Zacks Consensus Estimate, complicating predictions of an earnings beat [12] Earnings History and Market Sentiment - Corebridge has a history of beating consensus EPS estimates, having surpassed expectations in the last four quarters, including a +18.26% surprise in the most recent quarter [13][14] - Despite this positive history, the current combination of a negative Earnings ESP and a Zacks Rank of 3 makes it challenging to predict a beat for the upcoming report [12][17] Industry Context - In comparison, SiriusPoint (SPNT), another player in the Zacks Insurance - Multi line industry, is expected to report earnings of $0.51 per share, indicating no change year-over-year, with revenues projected at $727.2 million, up 29.4% [18][19] - SiriusPoint's consensus EPS estimate has been revised down by 4.1% over the last 30 days, and it currently holds an Earnings ESP of 0%, making predictions of an earnings beat similarly uncertain [19][20]

Core Thesis - Corebridge Financial, Inc. (CRGB) is viewed positively due to its strong market position as a major U.S. provider of life insurance and retirement solutions, with a share price of $32.42 as of October 7th and attractive valuation metrics, including a trailing P/E of 8.64 and a forward P/E of 5.99 [1][2] Business Overview - CRGB was spun out of AIG in 2022 and operates four main business lines: individual retirement (69% of operating income), group retirement (21%), life insurance (13%), and institutional markets (14%) [2] - The company generates income by selling future income streams and death benefits, primarily investing premiums in fixed-income securities, resulting in a net investment income of $12.2 billion on a $400 billion balance sheet in 2024, yielding a spread of approximately 3% [2] Financial Performance - Total premiums amounted to $4.6 billion, with additional fees of $3.0 billion, against policy benefits of $6.6 billion, credited interest of $5.2 billion, and overhead of $2.1 billion, leading to a net income of $2.2 billion and a 10% return on adjusted book value of $22.2 billion [3] - The company has repurchased $1.7 billion of shares, representing about 10% of its current market cap of $17.5 billion, while the stock trades at 8x earnings and 0.88x book value, partly due to residual AIG overhang [3] Capital Management and Strategy - CRGB has transferred $23.8 billion of liabilities to Fortitude Re in Bermuda, which has allowed for increased capital availability for dividends and buybacks while retaining assets managed by Blackstone and BlackRock [4] - The investment portfolio includes $179.7 billion in bonds, $54.3 billion in mortgages and loans, and $22.1 billion in private credit, with plans to scale Blackstone-managed assets to $92.5 billion by 2027, indicating a balance between growth and associated risks [4] Market Sentiment - The bullish sentiment on CRGB is reinforced by its ongoing $2 billion buyback program and favorable demographics, supporting projected long-term EPS growth of 10-15% [3][5] - However, the strategy of increasing exposure to private credit and offshore reinsurance introduces potential leverage, counterparty, and default risks [4][5]

Corebridge Performance - Corebridge (NYSE: CRBG) has shown moderate performance over the past year, with a gain of approximately 8% [1] - The stock is trading at a significant discount due to complex liabilities and ongoing share sales from AIG [1] Analyst Insights - The analyst has over fifteen years of experience in making contrarian bets based on macro views and stock-specific turnaround stories [1] - The focus is on achieving outsized returns with a favorable risk/reward profile [1]

Corebridge Financial Inc Overview - Corebridge Financial Inc (NYSE:CRBG) is highlighted as a top non-tech stock by Bill Nygren, CIO of Oakmark Funds, due to its attractive valuation, trading at six times expected earnings [1] - The company is a life insurance and retirement solutions provider, previously a unit of AIG, and went public in September 2022 [3] Financial Performance and Investment Thesis - Corebridge has been a strong performer in the current "higher for longer" interest rate environment, benefiting from increased spread income [3] - The investment thesis suggests that Corebridge can improve its competitive position and efficiency as a standalone entity, enhancing its return on equity (ROE) [3] - The company yields 3.2% on its dividend and has a double-digit free cash flow yield, indicating strong cash generation capabilities [3] Shareholder Returns - Corebridge has returned capital to shareholders through regular dividends and two special dividends in 2023 totaling $1.78, which represents 7.6% of the stock price at the end of the March quarter [3] - The strategy of share repurchase is emphasized, with potential for significant earnings per share growth if the stock price remains stable [2]

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]

Core Company Progress - The company has successfully executed its strategies since the IPO, achieving a 12% to 14% Return on Equity (ROE) target for 2024 [1] - The company has maintained a payout ratio of 60% to 65%, excluding transactions, demonstrating effective financial management [1] - The company has upheld a strong balance sheet with a Risk-Based Capital (RBC) ratio of 400%, while also growing the business [1] Strategic Elements - The company is focusing on organic growth as one of the four key elements of its strategy [2]

Corebridge Financial Performance Summary - Corebridge Financial reported revenue of $4.42 billion for the quarter ended June 2025, reflecting a year-over-year increase of 5.8% [1] - Earnings per share (EPS) for the quarter was $1.36, up from $1.13 in the same quarter last year, resulting in an EPS surprise of +18.26% compared to the consensus estimate of $1.15 [1] - The reported revenue fell short of the Zacks Consensus Estimate of $4.74 billion by -6.7% [1] Key Metrics Analysis - Net investment income totaled $3.05 billion, exceeding the average estimate of $2.85 billion from five analysts [4] - Policy fees amounted to $721 million, surpassing the average estimate of $707.49 million from five analysts [4] - Premiums reported were $464 million, significantly below the average estimate of $1.06 billion from five analysts [4] - Advisory fee and other income reached $196 million, slightly below the average estimate of $208.25 million from four analysts [4] - In the Institutional Markets segment, net investment income was $654 million, exceeding the average estimate of $585.57 million from three analysts [4] - Individual Retirement segment showed net investment income of $1.59 billion, above the average estimate of $1.47 billion from three analysts [4] Stock Performance and Market Position - Corebridge shares have returned -3.6% over the past month, while the Zacks S&P 500 composite has increased by +0.6% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

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 |