ebridge Financial(CRBG)2025-02-13 20:40Financial Performance - For the year ended December 31, 2024, the company generated spread income of 2.1 billion, and underwriting margin of 2,868 million, representing a 69.6% increase from 1,251 million, accounting for 30.4% of total income[33]. - Total revenue for Group Retirement in 2024 was 1,543 million in 2023[57]. - Fee income increased to 671 million in 2024, accounting for 44.4% of total spread income, down from 50.5% in 2023[57]. Sales and Market Performance - Total individual annuity sales for the year ended December 31, 2024, amounted to 22,174 million in 2024, a significant increase from $18,171 million in 2023, with banks contributing 43.1% of the total[37]. - The company has a distribution network of approximately 490 third-party firms, enhancing its market reach and service capabilities[35]. - Approximately 1.5 million in-plan participants did not have an out-of-plan product as of December 31, 2024, indicating a significant pipeline for potential client engagement[62]. - The company retained approximately 22% of rollovers out of retirement plans in an out-of-plan IRA in 2024[62]. Product Development and Innovation - The company launched the Corebridge MarketLock® Annuity, a registered index linked annuity (RILA) contract, in October 2024[26]. - Recent product innovations include a registered index linked annuity with a market lock feature, enhancing the risk-return profile for clients[43]. - Group Retirement's proprietary annuities include fixed, fixed index, and variable annuities, designed to meet diverse client needs[67]. - The company plans to transition away from capital-intensive and highly interest-sensitive products towards protection-oriented products such as GIWL, SIWL, IUL, and Term[95]. Strategic Partnerships and Investments - The company’s strategic partnership with Blackstone is expected to enhance risk-adjusted returns and grow both retail and institutional product lines[20]. - The partnership with Blackstone is expected to enhance investment capabilities, allowing the company to compete effectively in a changing market environment[41]. - The partnership with Blackstone is expected to unlock new opportunities in the Institutional Markets, enhancing the ability to source specialized assets[116]. - The company completed the sale of its subsidiary Laya Healthcare Limited to AXA S.A. on October 31, 2023, and AIG Life Limited to Aviva plc on April 8, 2024, to focus on core businesses[74]. Risk Management and Financial Stability - The company’s strong balance sheet is supported by a high-quality liability profile and effective risk management practices[19]. - The risk management strategy focuses on long-term value, resulting in a well-diversified annuity business with minimal exposure to unprofitable legacy lines[46]. - As of December 31, 2024, 87% of the variable annuity GMDB account value provides for a return of premium or locks in a maximum anniversary value, with only 4% exposed to legacy GMDB options[30]. - The company has deprioritized Guaranteed Universal Life (GUL) products, which are not expected to be a significant contributor to the portfolio in the near term[82]. Market Trends and Opportunities - The aging U.S. population and reduced access to private pensions are expected to drive demand for retirement savings and income products, presenting growth opportunities[40]. - The company aims to deepen distribution relationships and expand product penetration through strategic account management and customized wholesaling[42]. - The company aims to increase penetration in core markets, particularly targeting tax-exempt and public sector employees in K-12 and higher education[68]. Technology and Digitization - Significant investments in technology and digitization are expected to enhance client experience and drive participant enrollment[70]. - The company aims to streamline underwriting processes through digitization and automation, enhancing customer experience while maintaining risk management[94]. - The company is implementing BlackRock's "Aladdin" investment management technology platform to enhance investment management capabilities[150]. Corporate Social Responsibility - The company emphasizes a culture of inclusion and belonging, focusing on attracting and developing talent from diverse demographics[181]. - In 2024, employees volunteered nearly 9,000 hours and made personal donations to causes important to them[187]. - The company offers 16 hours of paid Volunteer Time Off to empower employees to engage in community service[187]. - The company partners with organizations to deliver financial education programs, reaching broad populations[185].