ebridge Financial(CRBG) - 2025 Q4 - Annual Report

Financial Performance - For the year ended December 31, 2025, the company generated total spread income of $2.665 billion, representing 89.6% of total income, with base spread income at $2.536 billion[31]. - The company recorded $20.6 billion in total individual annuity premiums and deposits for the year ended December 31, 2025[22]. - Fee income for the year ended December 31, 2025, was $310 million, accounting for 10.4% of total income[31]. - Institutional Markets generated a total income of $717 million in 2025, reflecting an increase of 20.1% from $597 million in 2024[125]. - Spread income for Institutional Markets reached $587 million in 2025, representing 81.8% of total income, up from $454 million (76.0%) in 2024[125]. - Fee income was $65 million in 2025, accounting for 9.1% of total income, slightly down from $62 million (10.4%) in 2024[125]. - The life insurance underwriting margin for 2023 was $1,442 million, with a slight decrease expected to $1,368 million in 2024[80]. Business Segments - The diversified business model includes Individual Retirement (52% of Adjusted Pre-Tax Operating Income), Group Retirement (20%), Life Insurance (12%), and Institutional Markets (16%) for the year ended December 31, 2025[17]. - Group Retirement's total revenue for 2025 was $1,485 million, with fee income contributing $802 million (54.0%) and spread income at $683 million (46.0%)[54]. - The core in-plan business targets tax-exempt and public sector institutions, while the out-of-plan business focuses on IRAs, expected to be the largest and fastest-growing segment of U.S. retirement assets[62]. Market Opportunities - The aging U.S. population and reduced access to private pensions are expected to drive demand for retirement savings and income products, positioning the company well for growth[41]. - The life insurance market presents growth opportunities, with nearly half of American adults lacking coverage, indicating a significant protection gap[86]. - The company anticipates continued demand for institutional products, driven by the shift away from defined benefit plans and the growth in retirement assets[112]. Risk Management - The company’s risk management policies and procedures are designed to mitigate exposure to market risks associated with its products[14]. - The company limits exposure on any single life to no greater than $3.5 million for Term and $10 million for UL issued in 2022 and later[105]. - The company emphasizes credit risk management, monitoring concentrations and requiring mitigants such as third-party guarantees and reinsurance[165]. Strategic Partnerships - The company’s strategic partnerships with Blackstone and BlackRock enhance access to diverse asset classes and optimize investment management[21]. - The company has a long-term asset management relationship with Blackstone, initially managing $50 billion, expected to increase to $92.5 billion by Q3 2027[166]. - The company entered into investment management agreements with BlackRock in April 2022, with BlackRock managing approximately $91.9 billion in book value of assets as of December 31, 2025[171]. Technology and Innovation - Investments in technology and digital solutions have improved client experience and satisfaction across the Group Retirement platform[61]. - Significant investments in technology and digitization are underway to enhance client experiences and drive participant enrollment, with tools being developed for plan sponsors to improve engagement[67]. - The company is focused on enhancing underwriting efficiency through automated decision-making processes, particularly with Accelerated Underwriting (AU) for Term insurance products up to $1 million and IUL products up to $2 million[102]. Regulatory Environment - The NAIC adopted the Group Capital Calculation (GCC) and Liquidity Stress Test (LST) amendments to the Holding Company Models, effective January 1, 2026, to enhance regulatory oversight of large life insurers[200]. - The NAIC's Risk-Based Capital Model Law allows states to take regulatory action based on RBC ratio calculations, with actions ranging from requiring a recovery plan to mandatory regulatory takeover[203]. - The NAIC adopted a model bulletin on the Use of Artificial Intelligence Systems by Insurers in December 2023, reflecting the evolving regulatory landscape regarding AI in insurance practices[208]. Employee Engagement - The company has over 4,800 employees as of December 31, 2025, with a focus on attracting and retaining high-quality talent[172]. - The company offers a performance-driven compensation structure, including base salary and incentive programs, to remain competitive in attracting skilled talent[174]. - The company supports community engagement through volunteer programs, with employees volunteering over 12,000 hours in 2025[183].