Corebridge Financial (CRBG) came out with quarterly earnings of $1.38 per share, beating the Zacks Consensus Estimate of $1.17 per share. This compares to earnings of $1.05 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 17.95%. A quarter ago, it was expected that this financial services company would post earnings of $1.10 per share when it actually produced earnings of $1.13, delivering a surprise of 2.73%.Over the last four ...

FOR IMMEDIATE RELEASE Corebridge Financial Announces Third Quarter 2024 Results 1 1 1 • Net loss of $1.2 billion, or $2.02 per share, largely a result of realized losses primarily driven by the Fortitude Re funds withheld embedded derivative • Adjusted after-tax operating income of $810 million and operating EPS of $1.38 per share • Premiums and deposits of $9.6 billion • Aggregate core sources of income increased 4% over the prior year quarter with growth across base spread income, fee income and underwrit ...

Corebridge Financial, Inc. (CRBG) recently launched its new retirement product, Corebridge MarketLock Annuity, through its American General Life Insurance subsidiary. This new product makes CRBG the only insurer among the top three companies to offer fixed annuities, variable annuities, index annuities and now registered index-linked annuities (RILA). MarketLock contains a unique accumulation strategy coupled with other popular RILA investment strategies in demand by finance professionals. This move bodes w ...

Richard Drury A Former AIG Spinoff & Diversified Financial Firm As we get past the middle of this trading week, and analysts keep an eye on the latest inflation figures, in today's article I'm revisiting a financial-sector stock I covered back in October 2023, Corebridge Financial, Inc. (NYSE:CRBG). In my original article I took a neutral stance and called it a hold, and since then, the share price has climbed +37% as of today's article writing. My neutral stance at the time was driven by concern over YoY d ...

NEW YORK, Aug. 06, 2024 (GLOBE NEWSWIRE) -- Flourish, a platform that provides innovative access to financial products that help registered investment advisors ("RIAs") improve their clients' financial outcomes, today announced its partnership with Corebridge Financial, one of the largest providers of retirement solutions and insurance products in the United States. Through the partnership, the American Pathway Advisory multi-year guaranteed annuity (MYGA) that Corebridge launched earlier this year will be ...

Core Insights - Flourish has partnered with Corebridge Financial to enhance its annuities offerings for registered investment advisors (RIAs) [1][4] - The partnership introduces the American Pathway Advisory multi-year guaranteed annuity (MYGA) to the Flourish Annuities platform, providing RIAs with more options for guaranteed returns and principal protection [2][4] Partnership Details - The American Pathway Advisory MYGA allows consumers to lock in growth for three, five, or seven years, offering flexibility with innovative renewal options and no withdrawal charges [2][4] - This partnership aims to help RIAs maintain consistent allocations to guaranteed rates within client portfolios [2] Market Demand and Features - Since its launch in January 2024, Flourish Annuities has attracted interest from over 200 RIA firms, highlighting its operational efficiency and simplified processes [3] - Key features of the Flourish Annuities platform include an outsourced insurance desk, a digital application process, and a vetted marketplace of fee-based annuities [3] Industry Impact - The addition of Corebridge Financial expands the marketplace for RIAs, providing them with more MYGA options to enhance client portfolios [4] - Flourish supports over 800 RIAs managing more than $1.5 trillion in combined assets, indicating strong trust in its platform [4][6] Company Background - Flourish manages over $5 billion in assets under custody and is wholly owned by Massachusetts Mutual Life Insurance Company [6] - Corebridge Financial, with over $390 billion in assets under management and administration, is a leading provider of retirement solutions and insurance products in the U.S. [7]

Financial Data and Key Metrics Changes - Corebridge reported operating earnings per share of $1.13, a 9% increase year-over-year [5] - The run-rate operating EPS grew 12% over the same period, adjusting for alternative investment returns [15] - The company generated $11.7 billion in premiums and deposits, a 17% increase year-over-year, marking the highest level in over a decade [5][6] - Adjusted pretax operating income for the second quarter was $859 million [15] - Year-to-date run rate ROE of 13% has grown over 200 basis points since the IPO [15] Business Line Data and Key Metrics Changes - Individual Retirement produced quarterly sales of $6.8 billion, up 68% year-over-year, driven by fixed annuity products [9] - Group Retirement saw out-of-plan sales increase, now comprising 37% of total premiums and deposits, with advisory and brokerage assets under administration growing by 12% [10] - Life Insurance reported sales growth of 13% year-over-year, benefiting from automated underwriting practices [10] - Institutional Markets issued $1.8 billion in GICs, reflecting favorable conditions [11] Market Data and Key Metrics Changes - Assets under management and administration grew 6% year-over-year to $394 billion [16] - General account assets increased by 8% due to higher new business volume [16] - The investment portfolio delivered net investment income of $2.7 billion, a 10% improvement year-over-year [16] Company Strategy and Development Direction - Corebridge is focused on capitalizing on significant addressable markets driven by demographic trends and the need for retirement solutions [7] - The company is committed to returning capital to shareholders, having returned $575 million through dividends and share repurchases in the quarter [6] - The Bermuda strategy is viewed as an extension of the capital management toolkit, allowing for more efficient capital deployment [26][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the execution of their strategy, highlighting strong customer demand and operational improvements [8][14] - The company anticipates continued growth in earnings and cash flows while maintaining financial flexibility [13] - Management noted that while fixed annuity sales were strong, future performance may vary based on market conditions [28][49] Other Important Information - Corebridge's financial position remains strong, with a liquidity of $1.9 billion at the holding company level [23] - The company has a payout ratio of 70% year-to-date, aligning with its target [24] - The sale of the UK life business generated $550 million in net proceeds, which will be distributed to shareholders [24] Q&A Session Summary Question: Insights on Bermuda strategy and capital efficiencies - Management views Bermuda as a capital management tool, allowing for flow reinsurance and portfolio reinsurance opportunities [26] Question: Outlook for fixed annuity sales - Strong demand for fixed and indexed annuities is expected to continue, driven by customer needs and market conditions [27] Question: Potential for raising free cash flow conversion targets - Management sees Bermuda as enhancing financial flexibility and contributing to higher distributable cash flows over time [30] Question: Strategic opportunities with Nippon Life as a shareholder - Management anticipates engaging with Nippon Life for potential strategic opportunities once regulatory approvals are finalized [32] Question: Drivers of fixed annuity sales growth - The increase in sales was attributed to strong distribution partnerships and operational improvements rather than new products [47][49] Question: Expectations for pension risk transfer market - The pipeline for pension risk transfer remains strong, with management focusing on full plan terminations [58]

Financial Performance - Total revenues for Q2 2024 were $3,710 million, a decrease of 35.5% compared to $5,757 million in Q2 2023[9]. - Net income attributable to Corebridge was $365 million in Q2 2024, down 52.7% from $771 million in Q2 2023[9]. - Comprehensive income attributable to Corebridge was a loss of $4 million in Q2 2024, compared to a loss of $344 million in Q2 2023[10]. - Net income for the six months ended June 30, 2024, was $1,168 million, compared to $298 million in 2023, representing a significant increase[13]. - Total adjusted revenues for Q2 2024 reached $4,176 million, a decrease from $5,757 million in Q2 2023, reflecting a decline of approximately 27.5%[28]. - Adjusted pre-tax operating income for Q2 2024 was $859 million, compared to $836 million in Q2 2023, representing a growth of 2.8%[28]. - The company reported a net (gain) on divestitures of $(241) million for Q2 2024, compared to $(59) million in Q2 2023, indicating a significant increase in losses[28]. Assets and Liabilities - Total assets increased to $382,492 million as of June 30, 2024, compared to $379,270 million at the end of 2023, reflecting a growth of approximately 0.58%[7]. - Total liabilities increased to $370,680 million in Q2 2024, compared to $366,635 million in Q4 2023, marking a rise of approximately 1.03%[8]. - Total liabilities measured at fair value amount to $16,372 million, with derivative liabilities totaling $184 million[31]. - Total assets measured at fair value on a recurring basis amount to $270,501 million as of June 30, 2024[31]. - Total bonds available-for-sale are valued at $167,320 million, with corporate debt contributing $101,245 million[31]. - Policyholder contract deposits increased to $20,103 million in the first half of 2024, compared to $15,920 million in the same period of 2023[13]. Investments and Earnings - Total investments increased to $236,054 million as of June 30, 2024, compared to $232,628 million at the end of 2023, reflecting a growth of approximately 1.8%[7]. - Net investment income for Q2 2024 was $2,988 million, an increase of 10.1% from $2,714 million in Q2 2023[9]. - Net investment income for the six months ended June 30, 2024, was $5,345 million, compared to $4,815 million for the same period in 2023, reflecting a growth of approximately 11%[29]. - Interest credited to policyholder account balances for Q2 2024 was $1,274 million, an increase from $1,078 million in Q2 2023, representing an increase of 18.2%[28]. Equity and Retained Earnings - Corebridge's retained earnings rose to $18,536 million in June 2024, up from $17,572 million at the end of 2023, representing an increase of about 5.5%[7]. - The total shareholders' equity at the end of the period was $11,812 million, down from $12,465 million at the end of June 30, 2023, indicating a decline of 5.2%[12]. - Corebridge's total equity attributable to shareholders decreased from $11,555 million at the beginning of the year to $10,996 million by June 30, 2024, a decline of 4.8%[12]. Market and Operational Strategy - The company has emphasized its focus on improving operational efficiency and enhancing its product offerings in the upcoming quarters[4]. - Corebridge is actively exploring market expansion opportunities and potential acquisitions to drive future growth[4]. - The company anticipates continued challenges from economic conditions and market volatility, which may impact future performance[4]. - The company is focused on managing risks associated with interest rates and credit spreads, which may impact future financial performance[4]. - The company faces significant competition and regulatory challenges, particularly related to technological changes and compliance costs, which may impact future performance[6]. Cash Flow and Dividends - Cash and cash equivalents increased to $637 million in Q2 2024 from $612 million in Q4 2023, reflecting a growth of approximately 4.09%[7]. - Dividends paid on common stock decreased to $282 million in the first half of 2024 from $700 million in the same period of 2023[13]. - Net cash provided by operating activities was $589 million, a decrease from $1,572 million in the prior year[13]. - The company reported a net cash used in investing activities of $3,964 million, compared to $890 million in the previous year[13]. Regulatory and Accounting Changes - The company is assessing the impact of new accounting standards related to income taxes and segment reporting, effective for public companies in 2024[21]. - Corebridge operates through five reportable segments: Individual Retirement, Group Retirement, Life Insurance, Institutional Markets, and Corporate and Other[22]. - Adjusted pre-tax operating income (APTOI) is evaluated by excluding certain items from income from operations before income tax, enhancing transparency to underlying economics[22].

Corebridge Financial (CRBG) came out with quarterly earnings of $1.13 per share, beating the Zacks Consensus Estimate of $1.10 per share. This compares to earnings of $1.04 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 2.73%. A quarter ago, it was expected that this financial services company would post earnings of $1.05 per share when it actually produced earnings of $1.10, delivering a surprise of 4.76%. Over the last fou ...

[Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) [Second Quarter 2024 Highlights](index=1&type=section&id=Second%20Quarter%202024%20Highlights) The company reported strong Q2 2024 results with 9% operating EPS growth, record premiums, and significant shareholder returns Q2 2024 Key Performance Indicators | Metric | Value | Source | | :--- | :--- | :--- | | Net Income | $365 million | Per Share: $0.59 | | Adjusted After-Tax Operating Income | $692 million | Per Share: $1.13 | | Premiums and Deposits | $11.7 billion | Highest in over a decade | | Shareholder Return | $575 million | $436M share repurchases, $139M dividends | | Holding Company Liquidity | $1.9 billion | - | - Aggregate core sources of income, including base spread income, fee income, and underwriting margin, **increased by 5%** compared to the prior year quarter[1](index=1&type=chunk) - The company has repurchased approximately **$940 million in shares** year-to-date through July 31, 2024[1](index=1&type=chunk) [Consolidated Results](index=2&type=section&id=Consolidated%20Results) Consolidated APTOI grew 3% to $859 million and premiums surged 17%, though GAAP net income declined due to net realized losses Consolidated Financial Results (Q2 2024 vs. Q2 2023) | Metric ($ in millions, except per share) | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Net Income | $365 | $771 | | Income per Common Share | $0.59 | $1.18 | | Adjusted After-Tax Operating Income | $692 | $679 | | Operating EPS | $1.13 | $1.04 | | Adjusted Pre-Tax Operating Income (APTOI) | $859 | $836 | | Premiums and Deposits | $11,679 | $9,941 | | Net Investment Income | $2,988 | $2,714 | - The decrease in net income was largely driven by **higher net realized losses**, primarily from asset optimization activities[5](index=5&type=chunk) - Excluding variable investment income, **APTOI grew 9%** over the prior year quarter, reflecting higher core income sources and expense efficiencies[6](index=6&type=chunk) - Premiums and deposits **grew 17% YoY**, or 37% excluding transactional activity, mainly driven by fixed annuities[7](index=7&type=chunk) [Capital and Liquidity Highlights](index=3&type=section&id=Capital%20and%20Liquidity%20Highlights) The company maintained a strong capital position with $1.9 billion in liquidity and returned $575 million to shareholders - **Holding Company Liquidity:** **$1.9 billion**[7](index=7&type=chunk) - **Financial Leverage Ratio:** **28.4%**[7](index=7&type=chunk) - **Shareholder Returns (Q2):** **$575 million** ($436M share repurchases, $139M dividends)[7](index=7&type=chunk) - **Quarterly Dividend:** Declared **$0.23 per share**, payable on September 30, 2024[7](index=7&type=chunk) [Business Segment Performance](index=3&type=section&id=Business%20Segment%20Performance) [Individual Retirement](index=3&type=section&id=Individual%20Retirement) APTOI increased 8% to $621 million, driven by a 68% surge in premiums and deposits from strong fixed annuity sales Individual Retirement Financials (Q2 2024 vs. Q2 2023) | Metric ($ in millions) | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Premiums and deposits | $6,787 | $4,045 | | Spread income | $723 | $684 | | Fee income | $308 | $280 | | Adjusted pre-tax operating income | $621 | $574 | - Premiums and deposits surged by **$2.7 billion (68%) YoY**, driven by growth in fixed annuity deposits[8](index=8&type=chunk) - **APTOI increased by 8%** due to higher base spread income from new business and higher fee income, partially offset by higher deferred acquisition costs[8](index=8&type=chunk) [Group Retirement](index=4&type=section&id=Group%20Retirement) APTOI was stable, decreasing 1% to $195 million, as higher fee income and efficiencies offset lower spread income Group Retirement Financials (Q2 2024 vs. Q2 2023) | Metric ($ in millions) | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Premiums and deposits | $1,998 | $1,923 | | Spread income | $191 | $213 | | Fee income | $191 | $178 | | Adjusted pre-tax operating income | $195 | $197 | - Premiums and deposits **increased by 4%** due to growth in in-plan deposits[9](index=9&type=chunk) - **APTOI decreased by 1%** as lower spread income was partially offset by higher fee income and expense efficiencies[9](index=9&type=chunk) [Life Insurance](index=4&type=section&id=Life%20Insurance) APTOI grew 25% to $95 million, driven by favorable mortality experience and expense efficiencies Life Insurance Financials (Q2 2024 vs. Q2 2023) | Metric ($ in millions) | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Premiums and deposits | $846 | $1,063 | | Underwriting margin | $309 | $361 | | Adjusted pre-tax operating income | $95 | $76 | - Excluding the impact of divested businesses, **underwriting margin increased 4%** over the prior year quarter, driven by favorable mortality[10](index=10&type=chunk) - **APTOI increased by 25%** due to more favorable mortality experience and expense efficiencies[10](index=10&type=chunk) [Institutional Markets](index=5&type=section&id=Institutional%20Markets) APTOI decreased 24% to $96 million due to lower variable investment income and a 30% decline in PRT-driven deposits Institutional Markets Financials (Q2 2024 vs. Q2 2023) | Metric ($ in millions) | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Premiums and deposits | $2,048 | $2,910 | | Spread income | $88 | $117 | | Adjusted pre-tax operating income | $96 | $126 | - The **30% decrease in premiums and deposits** was driven by lower premiums from pension risk transfer transactions[12](index=12&type=chunk) - **APTOI decreased by 24%** primarily due to lower variable investment income[12](index=12&type=chunk) [Corporate and Other](index=5&type=section&id=Corporate%20%26%20Other) The segment's adjusted pre-tax operating loss increased to $148 million due to non-recurring gains in the prior year Corporate and Other Financials (Q2 2024 vs. Q2 2023) | Metric ($ in millions) | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Adjusted pre-tax operating income (loss) | $(148) | $(137) | - The increased loss was primarily due to non-recurring gains in asset management in the prior year, partially offset by lower corporate expenses driven by the Corebridge Forward modernization program[13](index=13&type=chunk) [Appendix: Non-GAAP Measures and Reconciliations](index=8&type=section&id=Appendix%3A%20Non-GAAP%20Measures%20and%20Reconciliations) [Non-GAAP Financial Measures](index=8&type=section&id=Non-GAAP%20Financial%20Measures) This section defines key non-GAAP measures like APTOI and Adjusted Book Value to clarify operational performance - **Adjusted Pre-Tax Operating Income (APTOI):** Excludes items such as Fortitude Re related adjustments, most net realized gains/losses, and changes in the fair value of Market Risk Benefits (MRBs) to provide a view of ongoing operational performance[22](index=22&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) - **Adjusted Book Value:** Excludes Accumulated Other Comprehensive Income (AOCI) and adjusts for Fortitude Re related unrealized gains/losses to eliminate asymmetrical impacts from fair value changes in the available-for-sale securities portfolio[28](index=28&type=chunk) - **Adjusted Return on Average Equity (Adjusted ROAE):** Calculated by dividing AATOI by average Adjusted Book Value to evaluate recurring profitability and business trends, removing fair value asymmetries[29](index=29&type=chunk) [Key Operating Metrics and Key Terms](index=13&type=section&id=Key%20Operating%20Metrics%20and%20Key%20Terms) This section defines key operational metrics like AUMA and core income sources to measure business scale and profitability - **Assets Under Management and Administration (AUMA):** The sum of Assets Under Management (AUM) and Assets Under Administration (AUA), representing the total assets related to the company's life and annuity products, as well as third-party assets administered[32](index=32&type=chunk) - **Core sources of income:** Defined as the sum of base spread income, fee income, and underwriting margin, excluding variable investment income, representing the fundamental earnings power of the business[33](index=33&type=chunk) - **Premiums and deposits:** A non-GAAP measure that includes premiums on traditional life insurance and deposits on investment-type contracts, used to understand customer demand and sales performance[31](index=31&type=chunk) [Reconciliations](index=15&type=section&id=Reconciliations) This section provides detailed tables reconciling GAAP financial measures to their non-GAAP counterparts [Reconciliation of Net Income to Adjusted Operating Income](index=15&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Operating%20Income) This table reconciles GAAP net income of $365 million to non-GAAP AATOI of $692 million for Q2 2024 Income Reconciliation Summary (Q2 2024, in millions) | Metric | Value | | :--- | :--- | | Pre-tax income (GAAP) | $456 | | **Adjusted pre-tax operating income (APTOI)** | **$859** | | Net income attributable to Corebridge (GAAP) | $365 | | **Adjusted after-tax operating income (AATOI)** | **$692** | [Adjusted Pre-Tax Operating Income (APTOI) by Segment](index=16&type=section&id=Adjusted%20Pre-Tax%20Operating%20Income%20(APTOI)%20by%20Segment) This table details the APTOI for each business segment, with Individual Retirement being the largest contributor APTOI by Segment (Q2 2024, in millions) | Segment | APTOI | | :--- | :--- | | Individual Retirement | $621 | | Group Retirement | $195 | | Life Insurance | $95 | | Institutional Markets | $96 | | Corporate & Other | $(148) | | **Total Corebridge** | **$859** | [Spread, Fee, and Underwriting Margin](index=18&type=section&id=Spread%2C%20Fee%2C%20and%20Underwriting%20Margin) These tables break down primary income sources, totaling $1.0B in spread, $514M in fees, and $329M in margin Total Income Sources (Q2 2024 vs Q2 2023, in millions) | Income Source | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Spread income | $1,002 | $1,014 | | Fee income | $514 | $474 | | Underwriting margin | $329 | $381 | [Earnings Per Share (EPS) Reconciliation](index=19&type=section&id=Earnings%20Per%20Share%20(EPS)%20Reconciliation) This table reconciles GAAP EPS of $0.59 to non-GAAP Operating EPS of $1.13 for Q2 2024 EPS Reconciliation (Q2 2024) | Metric | Per Share Value | | :--- | :--- | | Income per common share (GAAP) | $0.59 | | **Operating EPS (Non-GAAP)** | **$1.13** | [Adjusted Book Value Reconciliation](index=20&type=section&id=Adjusted%20Book%20Value%20Reconciliation) This table reconciles GAAP book value per share of $18.32 to an adjusted value of $37.95 as of June 30, 2024 Book Value Reconciliation (as of June 30, 2024) | Metric | Per Share Value | | :--- | :--- | | Book value per common share (GAAP) | $18.32 | | **Adjusted book value per common share (Non-GAAP)** | **$37.95** | [Adjusted Return on Average Equity (ROAE) Reconciliation](index=21&type=section&id=Adjusted%20Return%20on%20Average%20Equity%20(ROAE)%20Reconciliation) This table reconciles the annualized GAAP ROAE of 12.9% to the non-GAAP Adjusted ROAE of 12.0% for Q2 2024 ROAE Reconciliation (Q2 2024, Annualized) | Metric | Value | | :--- | :--- | | Return on Average Equity (GAAP) | 12.9% | | **Adjusted ROAE (Non-GAAP)** | **12.0%** | [Net Investment Income Reconciliation](index=21&type=section&id=Net%20Investment%20Income%20Reconciliation) This table reconciles GAAP Net Investment Income of $2.99 billion to the APTOI basis amount of $2.72 billion Net Investment Income Reconciliation (Q2 2024, in millions) | Metric | Value | | :--- | :--- | | Net investment income (net income basis) | $2,988 | | **Net investment income (APTOI basis)** | **$2,716** | [Premiums and Deposits](index=22&type=section&id=Premiums%20and%20Deposits) This table details the $11.7 billion in total premiums and deposits by business segment for Q2 2024 Premiums and Deposits by Segment (Q2 2024, in millions) | Segment | Premiums and Deposits | | :--- | :--- | | Individual Retirement | $6,787 | | Group Retirement | $1,998 | | Life Insurance | $846 | | Institutional Markets | $2,048 | | **Total** | **$11,679** | [Other Information](index=5&type=section&id=Other%20Information) [Conference Call Information](index=5&type=section&id=Conference%20Call%20Information) The company will host a conference call on August 1, 2024, to review the Q2 2024 financial results - A conference call to review Q2 2024 results is scheduled for **Thursday, August 1, 2024, at 10:00 a.m. EDT**[14](index=14&type=chunk) [Cautionary Statement Regarding Forward-Looking Information](index=6&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Information) This section outlines forward-looking statements and associated risks, including interest rates and economic conditions - The report contains forward-looking statements that are not guarantees of future performance and are subject to risks and uncertainties[17](index=17&type=chunk) - Key risks include: changes in interest rates and credit spreads, economic slowdowns, reinsurance counterparty performance, competition, and challenges related to being a recently separated public company[18](index=18&type=chunk)[19](index=19&type=chunk)