Corebridge Stock Down Despite Q4 Earnings Beat, Revenues Down Y/Y

Core Points - Corebridge Financial, Inc. (CRBG) reported a 5.9% decline in shares following the release of fourth-quarter 2024 results on February 12, 2025, despite beating earnings expectations [1] - The quarterly earnings were positively impacted by higher investment income and improved Life Insurance performance, but negatively affected by a decline in Life Insurance premiums and deposits, as well as lower guaranteed investment contract deposits [1] Financial Performance - CRBG's fourth-quarter 2024 operating earnings per share were $1.23, exceeding the Zacks Consensus Estimate by 3.4%, and reflecting an 18.3% year-over-year increase [2] - Adjusted revenues fell 15.2% year over year to $5 billion, missing the consensus mark by 16.7% [2] - Premiums and deposits totaled $9.9 billion, down 6% year over year, with a more significant decline of 8% when excluding transactional activity and international business sales [3] Investment Income and Expenses - Net investment income rose 12.1% year over year to $2.9 billion, driven by increased base portfolio income [3] - Total benefits and expenses decreased 20.1% year over year to $4.1 billion, attributed to lower policyholder benefits and general operating expenses [4] - Adjusted pre-tax operating income increased 7.1% year over year to $878 million, with an adjusted return on average equity of 12.8%, up 160 basis points year over year [4] Segment Performance - Individual Retirement segment reported premiums and deposits of $5 billion, down 5% year over year, while fee income increased 9.4% to $315 million [5] - Group Retirement premiums and deposits fell 22% year over year to $1.6 billion, with fee income improving 12.2% to $203 million [7] - Life Insurance premiums and deposits decreased 20% year over year to $879 million, but adjusted pre-tax operating income surged 97% to $156 million, exceeding the consensus estimate [8] - Institutional Markets saw premiums and deposits rise 18% year over year to $2.4 billion, with adjusted pre-tax operating income increasing 43% to $133 million [9] Financial Position - As of December 31, 2024, Corebridge had a cash balance of $806 million, up 31.7% from the end of 2023, and total investments of $243.8 billion, an increase of 4.8% [11] - Total assets rose 2.7% to $389.4 billion, while total equity declined 2.4% to $12.3 billion [11] - Adjusted book value per share was $39.80, reflecting an 8.1% year-over-year increase [12] Share Repurchase and Dividends - In the fourth quarter, Corebridge repurchased common shares worth $398 million and paid quarterly dividends of $129 million [14] - The company increased its share repurchase authorization by $2 billion and raised the dividend to 24 cents per share [14]