Corebridge Financial, Inc. (NYSE:CRBG) Q2 2024 Results Conference Call August 1, 2024 10:00 AM ET Company Participants Isil Muderrisoglu - Head of Investor and Rating Agency Relations Kevin Hogan - President and Chief Executive Officer Elias Habayeb - Chief Financial Officer Conference Call Participants Elyse Greenspan - Wells Fargo Ryan Kruger - KBW John Barnidge - Piper Sandler Suneet Kamath - Jefferies Tom Gallagher - Evercore Wes Carmichael - Autonomous Research Joel Hurwitz - Dowling & Partners Mike Wa ...

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)

Zacks Rank & Price Performance Corebridge currently carries a Zacks Rank #3 (Hold). The stock has gained 59.9% in the year-to-date period compared with the industry's 22.2% growth. The Zacks Finance sector and the S&P 500 Composite have increased 21.3% and 27.8%, respectively, in the same time frame. Corebridge Financial, Inc. (CRBG) is supported by rising premiums attributable to a diversified product suite and new business growth. Rising fee income and investment income also bode well. Partnerships, stron ...

TABLE OF CONTENTS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-41504 Corebridge Financial, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of i ...

11 The following tables present a reconciliation of pre-tax income (loss)/net income (loss) attributable to Corebridge to adjusted pre-tax operating income (loss)/adjusted after-tax operating income (loss) attributable to Corebridge: FOR IMMEDIATE RELEASE | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------------------------------------------------------|-------|-----------------------|------------------|----------------|-----------------------|---------------------|--------------|------- ...

The market expects Corebridge Financial (CRBG) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on May 3, 2024, might help the stock move higher if these key numbers ...

Corebridge Financial, Inc. (CRBG) is aided by rising premiums attributable to a diversified product suite and new business growth. Partnerships, strong segmental contribution and solid cash-generating abilities are additional tailwinds for the stock.Zacks Rank & Price PerformanceCorebridge currently carries a Zacks Rank #3 (Hold).The stock has gained 25.6% in the year-to-date period compared with the industry’s 6.8% growth. The Zacks Finance sector and the S&P 500 Composite have increased 4.1% and 9.4%, res ...

Corebridge Financial (CRBG) closed at $27.54 in the latest trading session, marking a +0.04% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.14% for the day. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq gained 0.17%.Heading into today, shares of the financial services company had gained 9.12% over the past month, outpacing the Finance sector's gain of 4.92% and the S&P 500's gain of 5.34% in that time.Market participants will be closely following the ...